March 24, 2022 21:45 ET | Source: Itafos Itafos
“We made great progress in reshaping the fundamentals of our company during 2021, which resulted in record operational and financial performance, including full year revenues of $413.2 million, adjusted EBITDA of $143.4 million and world class safety metrics. We are looking to continue to build upon the foundation laid in 2021 with further improved financial and operational performance in 2022, aided by rising prices and solid volume demand in the markets in which we participate,” said G. David Delaney, CEO of Itafos.
“Our full-year guidance for 2022 reflects the continued strength of the business and our expectations of increasingly strong fundamentals in the agriculture and phosphate fertilizer markets. In 2022, we will continue to focus on our key priorities of deleveraging the balance sheet with cash flows from the business, extending Conda’s current mine life through permitting and development of H1/NDR and evaluating strategic alternatives for our non-North American assets.”
HOUSTON, March 24, 2022 (GLOBE NEWSWIRE) -- Itafos Inc. (TSX-V: IFOS) (the “Company”) reported today its Q4 and full year (“FY”) 2021 financial and operational highlights. The Company’s financial statements, management’s discussion and analysis and annual information form for the year ended December 31, 2021 are available under the Company’s profile at www.sedar.com and on the Company’s website at www.itafos.com. All figures are in thousands of US Dollars except as otherwise noted.
Q4 and FY 2021 Market Highlights
DAP NOLA prices averaged $715/st in Q4 2021 compared to $368/st in Q4 2020, up 94% year-over-year driven by strong agriculture and phosphate fertilizer market supply and demand dynamics. Similarly, DAP NOLA prices averaged $602/st in FY 2021 compared to $312/st in FY 2020, up 93% year-over-year. Specific factors driving the year-over-year improvements in DAP NOLA were as follows:
The Company’s revenues, adjusted EBITDA, net income, basic earnings per share and free cash flow were all up in Q4 2021 compared to Q4 2020 as follows:
The Company’s total capex spend in Q4 2021 was $6.3 million compared to $3.9 million in Q4 2020 with the increase reflecting activities related to the initiative to produce and sell HFSA at Conda, timing of maintenance projects at Conda and the sulfuric acid restart at Arraias.
The Company’s revenues, adjusted EBITDA, net income, basic earnings per share and free cash flow were all up in FY 2021 compared to FY 2020 as follows:
The Company’s total capex spend in FY 2021 was $34.8 million compared to $15.2 million in FY 2020 with the increase reflecting the completion of a full scope plant turnaround at Conda during June 2021 (compared to a reduced scope turnaround in 2020), activities related to the initiative to produce and sell HFSA at Conda and the sulfuric acid restart at Arraias.
On August 25, 2021, the Company announced that it closed a three-year $205 million secured term loan (the “Term Loan”). The proceeds of the Term Loan were used to repay the Company’s existing secured term credit facility (the “Credit Facility”) and to pay related transaction costs and fees. In connection with the closing of the Term Loan, the Company also completed an amendment to its existing secured working capital facility at Conda (the “Conda ABL”) to increase the commitment amount from $20 million to $40 million and extend the term, among other modifications as detailed below. Also in connection with the closing of the Term Loan, the Company completed an amendment to its existing unsecured and subordinated promissory note (the “Promissory Note”) to cancel the remaining availability and extend the term, among other modifications.
December 31, 2021 Net Debt and Liquidity Highlights
As at December 31, 2021, the Company had net debt of $217.7 million compared to $233.9 million at the end of 2020 with the decrease primarily due to higher cash and cash equivalents. The Company’s net debt as at December 31, 2021 was comprised of $31.6 million in cash and $249.3 million in debt (gross of deferred financing costs).
As at December 31, 2021, the Company had liquidity of $37.4 million comprised of $31.6 million in cash and $5.9 million in Conda ABL undrawn borrowing capacity.
Also during FY 2021, the Company:
Subsequent to December 31, 2021, the Company:
The Company expects the current strength in the global agriculture and phosphate fertilizer fundamentals to continue in 2022. Accordingly, the Company expects continued strength in pricing and volume fundamentals in the phosphate fertilizer markets during H1 2022, followed by a moderate softening of prices during H2 2022.
Specific factors the Company expects to influence the continued strength in the global phosphate fertilizer markets during H1 2022 are as follows:
Specific factors the Company expects to influence the moderate softening of the global phosphate fertilizer markets during H2 2022 are as follows:
The Company expects sulfur and sulfuric acid prices to remain at high levels globally due to solid demand from phosphates and metals consumers. The Company expects ammonia prices to also remain at high levels during H1 2022 (due to supply disruption from Ukraine and production shutdowns linked to higher natural gas prices in Europe), followed by a moderate softening during H2 2022.
The Company’s guidance for 2022 is as follows:
In developing its guidance for 2022, the Company considered the following:
The assumptions considered by the Company in preparing its guidance for 2022 are as follows:
The Company continues to focus on the following key objectives to drive long-term value and shareholder returns:
The Company is a phosphate and specialty fertilizer company. The Company’s businesses and projects are as follows:
The Company is a Delaware corporation that is headquartered in Houston, TX. The Company’s shares trade on the TSX Venture Exchange (“TSX-V”) under the ticker symbol “IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is an affiliate of Castlelake, L.P., a global private investment firm.
For more information, or to join the Company’s mailing list to receive notification of future news releases, please visit the Company’s website at www.itafos.com.
The Company considers both IFRS and certain non-IFRS measures to assess performance. Non-IFRS measures are a numerical measure of a company’s performance, that either include or exclude amounts that are not normally included or excluded from the most directly comparable IFRS measures. In evaluating non-IFRS measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under IFRS and that the methodology applied by the Company in calculating such non-IFRS measures may differ among companies and analysts. The Company believes the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others in order to evaluate the Company’s operational and financial performance. These non-IFRS financial measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS.
Non-IFRS measures included in this news release are defined as follows:
Reconciliations of non-IFRS measures to the most directly comparable IFRS measures are included in the Company’s management’s discussion and analysis available under the Company’s profile at www.sedar.com and on the Company’s website at www.itafos.com.
Other defined terms included in this news release are as follows:
Certain information contained in this news release constitutes forward-looking information. All information other than information of historical fact is forward-looking information. Statements that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future include, but are not limited to, statements regarding estimates and/or assumptions in respect of the Company’s financial and business outlook are forward-looking information. The use of any of the words “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. No assurance can be given that this information will prove to be correct and such forward-looking information included in this news release should not be unduly relied upon.
Forward-looking information is subject to a number of risks and other factors that could cause actual results and events to vary materially from that anticipated by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to, the duration and spread of the COVID-19 pandemic and its severity; uncertainties of estimates of capital and operating costs and production estimates; the ability of the Company to meet its financial obligations and minimum commitments, fund capital expenditures and comply with covenants contained in the agreements that govern indebtedness; fluctuations in foreign exchange or interest rates and stock market volatility; the continued supply of sulfuric acid to Conda from its primary supplier and those risk factors set out in the Company’s annual information form and other disclosure documents available under the Company’s profile at www.sedar.com and on the Company’s website at www.itafos.com. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions are not exhaustive. The forward-looking information included in this news release is expressly qualified by this cautionary statement and is made as of the date of this news release. The Company undertakes no obligation to publicly update or revise any forward-looking information except as required by applicable securities laws.
This news release contains future oriented financial information and financial outlook information (together, “FOFI”) about the Company’s prospective results of operations, including statements regarding expected adjusted EBITDA, net income, basic earnings per share, maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management’s expectations regarding anticipated activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgements; however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook information speaks only as of the date on which it is made and the Company undertakes no obligation to publicly update or revise any financial outlook information except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information, please contact:
Itafos Investor Relations investor@itafos.com www.itafos.com