UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

          (Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d)

Of the Securities Exchange Act of 1934

For Quarter Ended December 31, 2001

 

OR

 

[ ] Transition Report Pursuant to Section 13 or 15(d)

Of the Securities Exchange Act of 1934

For Quarter Ended December 31, 2001

Commission File Number 001-12217

 

MISSISSIPPI CHEMICAL CORPORATION

 

Organized in the State of Mississippi

Tax Identification No. 64-0292638

P. O. Box 388, Yazoo City, Mississippi 39194

Telephone No. 662+746-4131

 

               Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [x]    No [ ]

               The number of shares outstanding of each of the issuer's classes of common stock, as of December 31, 2001.

Class
Number of Shares
Common Stock, $0.01 par value
26,131,917
MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

INDEX

 
   
Page 

Number
PART I. 
FINANCIAL INFORMATION:
  
Item 1.
Financial Statements       
Consolidated Statements of Income
3  
     Three months ended December 31, 2001 and 2000    
     and Six months ended December 31, 2001 and 2000       
Consolidated Balance Sheets
4 - 5  
     December 31, 2001 and June 30, 2001       
Consolidated Statements of Shareholders' Equity
6  
     Fiscal Year ended June 30, 2001 and   
     Six months ended December 31, 2001       
Consolidated Statements of Cash Flows
7  
     Six months ended December 31, 2001 and 2000       
Notes to Consolidated Financial Statements
8 - 17     
Item 2.
Management's Discussion and Analysis of Results    
of Operations and Financial Condition
18 - 30     
Item 3.
Quantitative and Qualitative Disclosure About    
Market Risk
31        
PART II. 
OTHER INFORMATION:      
Item 4.
Submission of Matters to a Vote of Security Holders
32     
Item 6.
Exhibits and Reports on Form 8-K
32     
Signatures 
32
 

PART I.
FINANCIAL INFORMATION

ITEM 1.
FINANCIAL STATEMENTS.
<TABLE>

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
 
Three months ended

December 31, 
Six months ended

December 31, 
2001 
2000 
2001 
2000 
(In thousands, except per share data)
<c>   <c>   <c>   <c>  
Revenues:
 
 
 
 
 
 
 

   Net sales
$116,014  
$136,314  
$223,858  
$256,368         
Operating expenses:       
   Cost of products sold
107,541  
135,118  
214,235  
257,680 
   Selling, general and 
        administrative
6,485  
7,264  
13,633  
16,036 
   Other
    1,233  
    2,945  
    7,851  
    6,382  
 115,259  
 145,327  
 235,719  
 280,098         
Operating income (loss)
755  
(9,013) 
(11,861) 
(23,730)        
Other (expense) income:       
   Interest, net
(6,964) 
(7,111) 
(14,650) 
(14,269)
   Other
      679  
      922  
    3,880  
    2,380         
Loss before income taxes
(5,530) 
(15,202) 
(22,631) 
(35,619)        
Income tax benefit
   (4,360) 
   (5,991) 
  (13,411) 
  (14,162)        
Net loss
$  (1,170) 
$  (9,211) 
$  (9,220) 
$ (21,457)        Loss per share - basic and       
   diluted (see Note 2)
$   (0.04) 
$   (0.35) 
$   (0.35) 
$   (0.82)
</TABLE>

<FN>

The accompanying notes are an integral part of these consolidated financial statements.

</FN>

<TABLE>

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

ASSETS

 
  
December 31, 
June 30,  
2001 
2001  
(In thousands, except per share data)
 <c> <c>
Current assets:    
   Cash and cash equivalents 
$    2,040  
$  11,797 
   Accounts receivable, net 
44,296  
54,196      
   Inventories:    
     Finished products 
44,585  
44,502 
     Raw materials and supplies 
5,789  
6,230 
     Replacement parts 
    35,008  
     36,380 
          Total inventories 
85,382  
87,112      
   Prepaid expenses and other current assets 
5,547  
2,364 
   Deferred income taxes 
       5,140  
       7,280      
          Total current assets 
142,405  
162,749      
Investments in affiliates 
102,202  
96,064      
Other assets 
5,378  
6,304      
Property, plant and equipment, at cost 
836,698  
841,080 
  less accumulated depreciation, depletion 
      and amortization 
  (442,745) 
 (430,788)
          Net property, plant and equipment 
393,953  
410,292      
Goodwill, net of accumulated amortization 
   102,731  
   104,198        
$ 746,669  
$ 779,607      
</TABLE>

<FN>

The accompanying notes are an integral part of these consolidated financial statements.

</FN>

<TABLE>

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Continued)

LIABILITIES AND SHAREHOLDERS' EQUITY

 
  
December 31, 
June 30,  
2001 
2001  
(In thousands, except per share data)
 <c> <c>
Current liabilities:    
   Long-term debt due within one year 
$157,514  
$    -      
   Accounts payable 
40,571  
38,167 
   Accrued liabilities 
     8,808  
    10,797 
         Total current liabilities 
206,893  
48,964      
Long-term debt 
214,189  
386,285      
Other long-term liabilities and deferred credits 
11,049  
10,922      
Deferred income taxes 
30,205  
43,679      
Shareholders' equity:    
   Common stock ($.01 par, authorized 100,000
        shares; issued 27,976) 
280  
280 
   Additional paid-in capital 
305,901  
305,901 
   Retained earnings 
9,743  
18,963 
   Accumulated other comprehensive loss 
(2,012) 
(5,808)
   Treasury stock, at cost (1,844 shares) 
    (29,579) 
   (29,579)
       Total shareholders' equity 
   284,333  
  289,757        
$ 746,669  
$ 779,607 
</TABLE>

 

<FN>

The accompanying notes are an integral part of these consolidated financial statements.

</FN>

<TABLE>

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

DECEMBER 31, 2001

(Unaudited)
 
 

 

Common

Stock
Additional 

Paid-In

Capital
 

Retained

Earnings
Accumulated

Other

Comprehensive

Income (Loss)
 

Treasury

Stock
 

 

Total
(In thousands, except per share data)     
<c><c><c><c><c><c>
Balances, July 1, 2000
$     280
$  305,901
$114,996 
$        -        
$(29,579)
$391,598 
  Comprehensive loss:      
     Cumulative net

 

 

 

 

 

 
       unrealized gain on             hedges, net of tax of             $2,482
-    
-      
-      
4,149 
-       
4,149 
     Net loss
-    
-      
(95,249)
-       
-       
(95,249)
     Net change in 
             unrealized gain on      
       hedges, net of tax      
       benefit of $5,966
       -    
        -      
      -       
        (9,957)
      -       
     (9,957)       
          Comprehensive loss
-    
-      
(95,249)
(5,808)
-       
(101,057)       
     Cash dividends paid      
       ($0.03 per share)
       -    
        -      
       (784)
        -      
      -       
        (784)       
Balances, June 30, 2001
280
305,901
18,963 
(5,808) 
(29,579)
289,757 
  Comprehensive loss:      
     Net loss
-    
-   
(9,220)
-    
-    
(9,220)
     Net change in 
              unrealized loss on      
        hedges, net of tax       
        expense of $2,277
      -    
        -   
       -      
       3,796  
      -    
    3,796        
          Comprehensive loss
      -  
        -   
   (9,220)
        3,796 
      -    
   (5,424)       Balances,      
  December 31, 2001
$      280
$  305,901
$    9,743
$     (2,012)
$(29,579)
$284,333        
</TABLE>

<FN>

The accompanying notes are an integral part of these consolidated financial statements.

</FN>

<TABLE>

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)
  
Six months ended December 31,  
2001 
2000  
(In thousands)
 <c> <c>
Cash flows from operating activities:    
  Net loss 
$    (9,220) 
$   (21,457)
  Reconciliation of net loss to net cash provided by 
        operating activities:     
       Net change in operating assets and liabilities 
11,645   
2,643 
       Depreciation, depletion and amortization 
22,334  
23,702 
       Change in deferred loss on hedging activities,  
 
    
             net of tax 
619  
11,234 
       Deferred income taxes 
(13,240) 
(7,422)
       Equity earnings in unconsolidated affiliates 
(7,318) 
(5,277)
       Other 
      (3,160) 
         (76)     
Net cash provided by operating activities 
      1,660  
      3,347      
Cash flows from investing activities:    
  Purchases of property, plant and equipment 
(5,126) 
(10,997)
  Proceeds from sale of assets 
5,018  
12,581 
  Other 
       3,300  
        750      
Net cash provided by investing activities 
       3,192  
      2,334      
Cash flows from financing activities:    
  Debt proceeds 
115,345  
198,342 
  Debt payments 
(129,954) 
(203,151)