CHS Inc. 8% Cumulative Redeemable Prefe (CHSCP, Financial) filed Quarterly Report for the period ended 2009-11-30.
Chs Inc. 8% Cumulative Redeemable Prefe has a market cap of $303.71 million; its shares were traded at around $27.67 . The dividend yield of Chs Inc. 8% Cumulative Redeemable Prefe stocks is 7.23%.
Our Energy segment revenues, after elimination of intersegment revenues, of $2.2 billion decreased by $283.2 million (12%) during the three months ended November 30, 2009 compared to the three months ended November 30, 2008. During the three months ended November 30, 2009 and 2008, our Energy segment recorded revenues from our Ag Business segment of $81.2 million and $84.0 million, respectively. The net decrease in revenues of $283.2 million is comprised of a net decrease of $211.4 million related to lower prices on refined fuels, propane and renewable fuels marketing products, in addition to $71.8 million related to a net decrease in sales volume. Refined fuels revenues decreased $374.9 million (21%), of which $326.4 million was related to a net average selling price decrease, while $48.5 million was attributable to decreased volumes, compared to the same period in the previous year. The sales price of refined fuels decreased $0.47 per gallon (19%), and volumes decreased 3% when comparing the three months ended November 30, 2009 with the same period a year ago. Propane revenues decreased $22.1 million (8%), of which $82.7 million was due to a decrease in the net average selling price, partially offset by $60.6 million related to an increase in volumes, when compared to the same period in the previous year. The average selling price of propane decreased $0.36 per gallon (25%), while sales volume increased 23% in comparison to the same period of the prior year. The increase in propane volumes primarily reflects increased demand including an improved crop drying season and an earlier home heating season. Renewable fuels marketing revenues increased $110.5 million (71%), mostly from a 76% increase in volumes, partially offset by a decrease in the average selling price of $0.06 per gallon (3%), when compared with the same three-month period in the previous year.
Our Ag Business segment revenues, after elimination of intersegment revenues, of $3.7 billion, decreased $1.2 billion (24%) during the three months ended November 30, 2009 compared to the three months ended November 30, 2008. Grain revenues in our Ag Business segment totaled $3.0 billion and $3.8 billion during the three months ended November 30, 2009 and 2008, respectively. Of the grain revenues decrease of $731.6 million (19%), $1.1 billion is attributable to decreased average grain selling prices, partially offset by $417.8 million, which is due to an 11% increase in volumes during the three months ended November 30, 2009 compared to the same period last fiscal year. The average sales price of all grain and oilseed commodities sold reflected a decrease of $2.31 per bushel (27%) over the same three-month period in fiscal 2009. The average month-end market price per bushel of spring wheat and corn decreased approximately $1.45 and $0.42, respectively, while the price per bushel of soybeans increased $0.37 when compared to the three months ended November 30, 2008.
Interest, net. Net interest of $16.2 million for the three months ended November 30, 2009 decreased $4.0 million (20%) compared to the same period in fiscal 2009. Interest expense for the three months ended November 30, 2009 and 2008 was $18.3 million and $22.4 million, respectively. The decrease in interest expense of $4.1 million (18%) primarily relates to reduced interest expense due to the principal payments on our long-term debt in the past 12 months. In addition, the average level of short-term borrowings decreased $145.3 million (40%) during the three months ended November 30, 2009 compared to the same period in fiscal 2009, mostly due to significantly reduced working capital needs resulting from lower commodity prices. For the three months ended November 30, 2009 and 2008, we capitalized interest of $1.5 million and $0.9 million, respectively, primarily related to construction projects at both refineries in our Energy segment. Interest income, generated primarily from marketable securities, was $0.5 million and $1.3 million for the three months ended November 30, 2009 and 2008, respectively. The net decrease in interest income of $0.8 million (59%) was mostly at NCRA within our Energy segment, which primarily relates to marketable securities with interest yields lower than a year ago.
Our operating activities used net cash of $28.6 million during the three months ended November 30, 2009. Net income of $122.5 million and net non-cash expenses and cash distributions from equity investments of $66.1 million were exceeded by an increase in net operating assets and liabilities of $217.2 million. The primary components of net non-cash expenses and cash distributions from equity investments included depreciation and amortization, including major repair costs, of $54.6 million and deferred taxes of $19.0 million, partially offset by income from equity investments, net of redemptions from those investments, of $6.9 million. The increase in net operating assets and liabilities was caused primarily by an increase in commodity prices reflected in increased receivables and inventories along with a decrease in customer credit balances, partially offset by increases in accounts payable and accrued expenses as well as customer advance payments on November 30, 2009, when compared to August 31, 2009. On November 30, 2009, the per bushel market prices of two of our three primary grain commodities, corn and spring wheat, increased by $0.77 (23%) and $0.33 (6%), respectively, while soybeans had a slight decrease of $0.40 (4%), when compared to the prices on August 31, 2009. In general, crude oil market prices increased $7 (10%) per barrel on November 30, 2009 compared to August 31, 2009. On November 30, 2009, fertilizer commodity prices affecting our wholesale crop nutrients and country operations retail businesses generally had little or no change, depending on the specific products, compared to prices on August 31, 2009. An increase in grain inventory quantities in our Ag Business segment of 52.3 million bushels (57%) also contributed to the increase in net operating assets and liabilities when comparing inventories at November 30, 2009 to August 31, 2009.
Our operating activities provided net cash of $997.3 million during the three months ended November 30, 2008. Net income of $159.4 million, net non-cash expenses and cash distributions from equity investments of $119.8 million and a decrease in net operating assets and liabilities of $718.1 million provided the cash flows from operating activities. The primary components of net non-cash expenses and cash distributions from equity investments included depreciation and amortization, including major repair costs, of $55.2 million, loss on investments of $55.0 million and redemptions from equity investments, net of income from those investments of $18.7 million. Loss on investments was previously discussed in Results of Operations, and primarily includes the impairment of our VeraSun investment, partially offset by the gain on the sale of our NYMEX Holdings common stock. The decrease in net operating assets and liabilities was caused primarily by a decline in commodity prices reflected in decreased receivables and inventories, and an increase in derivative liabilities, partially offset by a decrease in accounts payable and accrued expenses on November 30, 2008, when compared to August 31, 2008. On November 30, 2008, the per bushel market prices of our three primary grain commodities, corn, soybeans and spring wheat, decreased by $2.19 (39%), $4.49 (34%) and $2.62 (30%), respectively, when compared to the prices on August 31, 2008. CruRead the The complete Report
Chs Inc. 8% Cumulative Redeemable Prefe has a market cap of $303.71 million; its shares were traded at around $27.67 . The dividend yield of Chs Inc. 8% Cumulative Redeemable Prefe stocks is 7.23%.
Highlight of Business Operations:
Our Ag Business segment generated income before income taxes of $91.7 million for the three months ended November 30, 2009 compared to $19.8 million in the three months ended November 30, 2008, an increase in earnings of $71.9 million. Earnings from our wholesale crop nutrients business improved $39.5 million for the first three months of fiscal 2010 compared with the same period in fiscal 2009. The market prices for crop nutrients products fell significantly during the first three months of our fiscal 2009 as fertilizer prices, an input to grain production, followed some of the declining grain prices. Late fall of calendar 2008 rains impeded the application of fertilizer during that time period, and as a result, we had a higher quantity of inventories on hand at the end of our first fiscal quarter 2009 than is typical at that time of year. Because there are no future contracts or other derivatives that can be used to hedge fertilizer inventories and contracts effectively, a long inventory position with falling prices creates losses. Depreciation in fertilizer prices continued throughout the second and third quarters of our fiscal 2009 which had the affect of dramatically reducing gross margins on this product. To reflect our wholesale crop nutrients inventories at net-realizable values, we recorded lower-of-cost or market adjustments of approximately $56.8 million during the three months ended November 30, 2008. Improved performance by Agriliance, an agronomy joint venture in which we hold a 50% interest, partially offset by reduced earnings from a Canadian agronomy equity investment, resulted in a $2.2 million net increase in earnings from these investments, net of allocated internal expenses. Our grain marketing earnings increased by $23.0 million during the three months ended November 30, 2009 compared with the same three-month period in fiscal 2009, primarily as a result of higher grain volumes, partially offset by slightly reduced earnings from our joint ventures. Our country operations earnings increased $7.2 million during the three months ended November 30, 2009 compared to the same period in the prior year, primarily as a result of higher grain volumes, in addition to overall increased margins mostly from acquisitions and improved crop nutrient margins.Our Energy segment revenues, after elimination of intersegment revenues, of $2.2 billion decreased by $283.2 million (12%) during the three months ended November 30, 2009 compared to the three months ended November 30, 2008. During the three months ended November 30, 2009 and 2008, our Energy segment recorded revenues from our Ag Business segment of $81.2 million and $84.0 million, respectively. The net decrease in revenues of $283.2 million is comprised of a net decrease of $211.4 million related to lower prices on refined fuels, propane and renewable fuels marketing products, in addition to $71.8 million related to a net decrease in sales volume. Refined fuels revenues decreased $374.9 million (21%), of which $326.4 million was related to a net average selling price decrease, while $48.5 million was attributable to decreased volumes, compared to the same period in the previous year. The sales price of refined fuels decreased $0.47 per gallon (19%), and volumes decreased 3% when comparing the three months ended November 30, 2009 with the same period a year ago. Propane revenues decreased $22.1 million (8%), of which $82.7 million was due to a decrease in the net average selling price, partially offset by $60.6 million related to an increase in volumes, when compared to the same period in the previous year. The average selling price of propane decreased $0.36 per gallon (25%), while sales volume increased 23% in comparison to the same period of the prior year. The increase in propane volumes primarily reflects increased demand including an improved crop drying season and an earlier home heating season. Renewable fuels marketing revenues increased $110.5 million (71%), mostly from a 76% increase in volumes, partially offset by a decrease in the average selling price of $0.06 per gallon (3%), when compared with the same three-month period in the previous year.
Our Ag Business segment revenues, after elimination of intersegment revenues, of $3.7 billion, decreased $1.2 billion (24%) during the three months ended November 30, 2009 compared to the three months ended November 30, 2008. Grain revenues in our Ag Business segment totaled $3.0 billion and $3.8 billion during the three months ended November 30, 2009 and 2008, respectively. Of the grain revenues decrease of $731.6 million (19%), $1.1 billion is attributable to decreased average grain selling prices, partially offset by $417.8 million, which is due to an 11% increase in volumes during the three months ended November 30, 2009 compared to the same period last fiscal year. The average sales price of all grain and oilseed commodities sold reflected a decrease of $2.31 per bushel (27%) over the same three-month period in fiscal 2009. The average month-end market price per bushel of spring wheat and corn decreased approximately $1.45 and $0.42, respectively, while the price per bushel of soybeans increased $0.37 when compared to the three months ended November 30, 2008.
Interest, net. Net interest of $16.2 million for the three months ended November 30, 2009 decreased $4.0 million (20%) compared to the same period in fiscal 2009. Interest expense for the three months ended November 30, 2009 and 2008 was $18.3 million and $22.4 million, respectively. The decrease in interest expense of $4.1 million (18%) primarily relates to reduced interest expense due to the principal payments on our long-term debt in the past 12 months. In addition, the average level of short-term borrowings decreased $145.3 million (40%) during the three months ended November 30, 2009 compared to the same period in fiscal 2009, mostly due to significantly reduced working capital needs resulting from lower commodity prices. For the three months ended November 30, 2009 and 2008, we capitalized interest of $1.5 million and $0.9 million, respectively, primarily related to construction projects at both refineries in our Energy segment. Interest income, generated primarily from marketable securities, was $0.5 million and $1.3 million for the three months ended November 30, 2009 and 2008, respectively. The net decrease in interest income of $0.8 million (59%) was mostly at NCRA within our Energy segment, which primarily relates to marketable securities with interest yields lower than a year ago.
Our operating activities used net cash of $28.6 million during the three months ended November 30, 2009. Net income of $122.5 million and net non-cash expenses and cash distributions from equity investments of $66.1 million were exceeded by an increase in net operating assets and liabilities of $217.2 million. The primary components of net non-cash expenses and cash distributions from equity investments included depreciation and amortization, including major repair costs, of $54.6 million and deferred taxes of $19.0 million, partially offset by income from equity investments, net of redemptions from those investments, of $6.9 million. The increase in net operating assets and liabilities was caused primarily by an increase in commodity prices reflected in increased receivables and inventories along with a decrease in customer credit balances, partially offset by increases in accounts payable and accrued expenses as well as customer advance payments on November 30, 2009, when compared to August 31, 2009. On November 30, 2009, the per bushel market prices of two of our three primary grain commodities, corn and spring wheat, increased by $0.77 (23%) and $0.33 (6%), respectively, while soybeans had a slight decrease of $0.40 (4%), when compared to the prices on August 31, 2009. In general, crude oil market prices increased $7 (10%) per barrel on November 30, 2009 compared to August 31, 2009. On November 30, 2009, fertilizer commodity prices affecting our wholesale crop nutrients and country operations retail businesses generally had little or no change, depending on the specific products, compared to prices on August 31, 2009. An increase in grain inventory quantities in our Ag Business segment of 52.3 million bushels (57%) also contributed to the increase in net operating assets and liabilities when comparing inventories at November 30, 2009 to August 31, 2009.
Our operating activities provided net cash of $997.3 million during the three months ended November 30, 2008. Net income of $159.4 million, net non-cash expenses and cash distributions from equity investments of $119.8 million and a decrease in net operating assets and liabilities of $718.1 million provided the cash flows from operating activities. The primary components of net non-cash expenses and cash distributions from equity investments included depreciation and amortization, including major repair costs, of $55.2 million, loss on investments of $55.0 million and redemptions from equity investments, net of income from those investments of $18.7 million. Loss on investments was previously discussed in Results of Operations, and primarily includes the impairment of our VeraSun investment, partially offset by the gain on the sale of our NYMEX Holdings common stock. The decrease in net operating assets and liabilities was caused primarily by a decline in commodity prices reflected in decreased receivables and inventories, and an increase in derivative liabilities, partially offset by a decrease in accounts payable and accrued expenses on November 30, 2008, when compared to August 31, 2008. On November 30, 2008, the per bushel market prices of our three primary grain commodities, corn, soybeans and spring wheat, decreased by $2.19 (39%), $4.49 (34%) and $2.62 (30%), respectively, when compared to the prices on August 31, 2008. CruRead the The complete Report
