OVERLAND PARK, Kan.--(BUSINESS WIRE)--Jul. 30, 2012--
Compass Minerals (NYSE: CMP) reports the following results of its
second-quarter 2012 operations:
-
Net earnings were $9.5 million, or $0.28 per diluted share, compared
with $14.0 million, or $0.42 per diluted share, in the 2011 period.
-
Excluding special items from the current-period results, net earnings
were $10.3 million, or $0.31 per diluted share. These special items
include losses resulting from the tornado that struck the company’s
salt operations in Goderich, ON, in August of 2011 and the cost to
refinance the company’s term loans, partially offset by an income tax
benefit.
-
Sales were essentially flat year over year at $178.5 million versus
$179.9 million in the second quarter of 2011, as a 14 percent gain in
specialty fertilizer sales was more than offset by a 6 percent decline
in salt sales.
-
Operating earnings declined to $15.5 million from $22.1 million in the
prior-year quarter driven by increased sulfate of potash unit
production costs related to sourcing higher-cost potassium mineral
feedstock as a result of unfavorable solar-evaporation weather at the
Great Salt Lake in 2011 and the estimated impact of the 2011 tornado
on salt costs.
-
For the six months ended June 30, 2012, cash flow from operations was
$115.5 million, down from $194.1 million in the prior-year period.
“Our results this quarter continued to be pressured by the trailing
effects of 2011 and early-2012 weather. However, we expect the sulfate
of potash market to remain stable this year, and our highway deicing bid
results to date suggest that a return to more-typical winter weather
throughout our served markets would generate year-over-year salt
earnings improvement in the fourth quarter and significant improvements
by this time next year,” said Angelo Brisimitzakis, Compass Minerals
president and CEO.
|
|
|
Compass Minerals Financial Results
(in millions, except for earnings per share)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Sales
|
|
$
|
178.5
|
|
|
$
|
179.9
|
|
|
$
|
493.8
|
|
|
$
|
570.5
|
|
|
Sales less shipping and handling (product sales)
|
|
|
135.6
|
|
|
|
135.8
|
|
|
|
357.4
|
|
|
|
411.7
|
|
|
Operating earnings
|
|
|
15.5
|
|
|
|
22.1
|
|
|
|
76.9
|
|
|
|
106.7
|
|
|
Operating margin
|
|
|
8.7
|
%
|
|
|
12.3
|
%
|
|
|
15.6
|
%
|
|
|
18.7
|
%
|
|
Net earnings
|
|
|
9.5
|
|
|
|
14.0
|
|
|
|
49.4
|
|
|
|
70.5
|
|
|
Net earnings, excluding special items*
|
|
|
10.3
|
|
|
|
14.0
|
|
|
|
59.8
|
|
|
|
70.5
|
|
|
Diluted earnings per share
|
|
|
0.28
|
|
|
|
0.42
|
|
|
|
1.47
|
|
|
|
2.11
|
|
|
Diluted per-share earnings, excluding special items*
|
|
|
0.31
|
|
|
|
0.42
|
|
|
|
1.78
|
|
|
|
2.11
|
|
|
EBITDA*
|
|
|
28.2
|
|
|
|
38.9
|
|
|
|
103.7
|
|
|
|
139.3
|
|
|
Adjusted EBITDA*
|
|
|
31.3
|
|
|
|
38.5
|
|
|
|
108.4
|
|
|
|
139.5
|
|
*These are non-GAAP financial measures. Reconciliations to
GAAP measures of performance are provided in tables at the end of this
release.
SALT SEGMENT
Salt sales were $119.9 million compared to $127.3 million in the second
quarter of 2011, reflecting a 5 percent gain in average selling prices
offset by a 10 percent decline in salt volumes. Highway deicing sales
volumes declined 15 percent primarily due to low restocking demand in
the U.K. compared with unusually robust demand the prior-year quarter
and because of lower sales to North American chemical customers. The
volume decline was partially offset by a 5 percent improvement in the
average selling price of highway deicing products. Consumer and
industrial demand improved 2 percent, in line with historical growth
rates, and average prices declined 4 percent.
Salt operating earnings were $12.9 million, down from $13.6 million in
the 2011 quarter. The company estimates that its second-quarter salt
operating earnings would have been $15.7 million if not for higher unit
production costs caused by the 2011 tornado, including salt purchased
from third parties and the lingering effects of inefficient production
and logistics costs.
Highway Deicing Bids
The process of bidding for North American highway deicing contracts for
the 2012-2013 winter is more than 50 percent complete. To date, the
average price on bids awarded to Compass Minerals has been approximately
flat.
In light of the extremely mild 2011-2012 winter, the company has agreed
to allow some customers to extend to December 2012 the deadline by which
they must fulfill their minimum purchase commitments from the 2011-2012
winter. Thus, salt sales during the 2012-2013 winter will comprise
purchases under contracts awarded in the current bid season plus
purchases under prior contracts from the 2011-2012 winter. With a return
to more-typical winter weather throughout the company’s served markets,
highway deicing sales volumes for the fourth quarter of 2012 and the
first quarter of 2013 combined (the 2012-2013 winter season) are likely
to be similar to the 10-year average at approximately 7.5 million tons.
By comparison, the company’s highway deicing sales volume in the
2011-2012 winter totaled only 5.8 million tons.
|
|
|
Salt Segment Performance
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Sales
|
|
$
|
119.9
|
|
|
$
|
127.3
|
|
|
$
|
374.2
|
|
|
$
|
459.7
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
83.1
|
|
|
$
|
89.3
|
|
|
$
|
251.4
|
|
|
$
|
314.8
|
|
|
Operating earnings
|
|
$
|
12.9
|
|
|
$
|
13.6
|
|
|
$
|
65.3
|
|
|
$
|
90.8
|
|
|
Operating margin
|
|
|
10.8
|
%
|
|
|
10.7
|
%
|
|
|
17.5
|
%
|
|
|
19.8
|
%
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
1,101
|
|
|
|
1,296
|
|
|
|
4,205
|
|
|
|
5,574
|
|
|
Consumer and industrial
|
|
|
493
|
|
|
|
483
|
|
|
|
999
|
|
|
|
1,067
|
|
|
Total salt
|
|
|
1,594
|
|
|
|
1,779
|
|
|
|
5,204
|
|
|
|
6,641
|
|
|
Average sales price (per ton):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
$
|
45.39
|
|
|
$
|
43.28
|
|
|
$
|
54.94
|
|
|
$
|
53.42
|
|
|
Consumer and industrial
|
|
$
|
141.72
|
|
|
$
|
147.58
|
|
|
$
|
143.29
|
|
|
$
|
151.86
|
|
|
Total salt
|
|
$
|
75.20
|
|
|
$
|
71.58
|
|
|
$
|
71.90
|
|
|
$
|
69.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPECIALTY FERTILIZER SEGMENT
Specialty fertilizer sales set a second-quarter record of $56.2 million,
improving 14 percent from the prior year. Sales prices improved 2
percent year over year, and sales volumes were up 10 percent from the
2011 period when demand was reduced by the impact of unfavorable weather
in key produce-growing regions.
As expected, the effects of the poor 2011 solar evaporation season at
the Great Salt Lake increased per-unit production costs at the company’s
operations in Utah and drove operating earnings down 26 percent to $13.9
million from $18.7 million in the prior-year quarter.
|
|
|
Specialty Fertilizer Segment Performance
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Sales
|
|
$
|
56.2
|
|
|
$
|
49.5
|
|
|
$
|
114.7
|
|
|
$
|
104.9
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
50.1
|
|
|
$
|
43.4
|
|
|
$
|
101.1
|
|
|
$
|
91.0
|
|
|
Operating earnings
|
|
$
|
13.9
|
|
|
$
|
18.7
|
|
|
$
|
34.6
|
|
|
$
|
38.0
|
|
|
Operating margin
|
|
|
24.7
|
%
|
|
|
37.8
|
%
|
|
|
30.2
|
%
|
|
|
36.2
|
%
|
|
Sales volume (in thousands of tons)
|
|
|
91
|
|
|
|
83
|
|
|
|
187
|
|
|
|
178
|
|
|
Average sales price (per ton)
|
|
$
|
612
|
|
|
$
|
600
|
|
|
$
|
612
|
|
|
$
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
The company refinanced its term loans into a single $387 million term
loan in May, which extended the company’s average bank debt maturity by
more than two and a half years and helped reduce interest expense to
$4.5 million from $5.2 million in the 2011 quarter. The lower rate on
the new loan will reduce the company’s interest expense by approximately
$2 million per year. Other expense of $3.1 million includes a charge of
$2.8 million related to the refinancing of the term loans. In the second
quarter of 2012, the company completed a tax audit which resulted in a
$3.0 million reduction to income tax expense. Cash flow from operations
was $115.5 million compared to $194.1 million in the first six months of
2011 primarily due to reduced earnings, partially offset by $18.0
million of insurance recoveries related to the Goderich tornado.
OUTLOOK
Compass Minerals’ highway deicing customers typically begin filling
their storage facilities in the third quarter in anticipation of winter
weather. However, many customers throughout North America and the U.K.
will not need to purchase these pre-season volumes due to
larger-than-average carryover inventories following the unusually mild
2011-2012 winter. Therefore, the company expects its third-quarter 2012
highway deicing sales volume to be approximately one million tons,
significantly below the record sales volume of 1.9 million tons in the
2011 period.
Compass Minerals also has carried over unusually large inventories of
highway deicing salt from last winter and has reduced production at its
North American mines to bring inventories into alignment. The reduced
mine utilization rates will cause per-unit salt costs to remain inflated
through at least the end of the 2012-2013 winter season.
Sulfate of potash sales volumes and prices are projected to remain
stable, so third-quarter specialty fertilizer results should be similar
to the segment’s second-quarter results. The company expects to sell
through its high-cost SOP inventory in early 2013, which should
materially reduce per-unit costs thereafter.
“Our third-quarter results will continue to reflect last year's varied
weather-related challenges, but we believe we’re turning the corner on
this difficult period,” said Dr. Brisimitzakis. “Our highway, consumer
and commercial deicing customers have high carryover inventories, which
will reduce our third-quarter salt sales volumes and average prices.
However, with a return to more typical winter weather throughout our
served markets, we plan to re-establish our highway deicing sales
volumes this winter. The weather at the Great Salt Lake has already been
more cooperative this summer, with hot and dry conditions that bode well
for a good deposit of raw minerals in our solar-evaporation ponds this
year. By early 2013, we expect to sell through our high-cost salt and
SOP inventories and to restore our traditionally strong operating
margins.”
A summary of the company’s performance is available on the company’s
website at www.CompassMinerals.com/Presentation.
Conference Call
The company will discuss its results on a conference call this morning
at 9:00 a.m. ET. To access the conference call, interested parties
should visit the company’s website at www.CompassMinerals.com
or dial (877) 614-0009. Callers must provide the conference ID number
4530488. Outside of the U.S. and Canada, callers may dial (913)
643-4075. Replays of the call will be available on the company’s website
for two weeks. An audio replay will be available on the company’s
website for two weeks or may be accessed by phone for seven days at
(888) 203-1112, conference ID 4530488. Outside of the U.S. and Canada,
callers may dial (719) 457-0820.
About Compass Minerals
Based in the Kansas City metropolitan area, Compass Minerals is a
leading producer of minerals, including salt, sulfate of potash
specialty fertilizer and magnesium chloride. The company provides
highway deicing salt to customers in North America and the United
Kingdom and specialty fertilizer to growers worldwide. Compass Minerals
also produces consumer deicing and water conditioning products,
ingredients used in consumer and commercial foods, and other
mineral-based products for consumer, agricultural and industrial
applications. Compass Minerals also provides records management services
to businesses throughout the U.K.
Non-GAAP Measures
Management uses a variety of measures to evaluate the company’s
performance. While the consolidated financial statements provide an
understanding of the company’s overall results of operations, financial
condition and cash flows, management analyzes components of the
consolidated financial statements to identify certain trends and
evaluate specific performance areas. In addition to using U.S. generally
accepted accounting principles (“GAAP”) financial measures, management
uses EBITDA and EBITDA adjusted for items which management believes are
not indicative of the company’s ongoing operating performance (“adjusted
EBITDA”), both non-GAAP financial measures, to evaluate the operating
performance of the company’s core business operations because its
resource allocation, financing methods and cost of capital, and income
tax positions are managed at a corporate level, apart from the
activities of the operating segments, and the operating facilities are
located in different taxing jurisdictions, which can cause considerable
variation in net income. The company also uses EBITDA and adjusted
EBITDA to assess its operating performance and return on capital against
other companies, and to evaluate potential acquisitions or other capital
projects. EBITDA and adjusted EBITDA are not calculated under GAAP and
should not be considered in isolation or as a substitute for net income,
cash flows or other financial data prepared in accordance with GAAP or
as a measure of overall profitability or liquidity. EBITDA and adjusted
EBITDA exclude interest expense, income taxes and depreciation and
amortization, each of which is an essential element of the company’s
cost structure and cannot be eliminated. Consequently, any measure that
excludes these elements has material limitations. While EBITDA and
adjusted EBITDA are frequently used as measures of operating
performance, these terms are not necessarily comparable to similarly
titled measures of other companies due to the potential inconsistencies
in the method of calculation. The calculation of EBITDA and adjusted
EBITDA as used by management is set forth in the following table.
Excluding special items from net earnings is meaningful to investors
because it provides insight with respect to the ongoing operating
results of the company. Special items reflect charges associated with
the refinancing of the company’s term loans, the release of tax reserves
and the estimated effects of the tornado that struck the company’s salt
mine in Goderich, Ontario, in August 2011. Those effects include lost
sales volumes, higher net per-unit production costs and higher net costs
to serve customers, including purchased products and logistical
inefficiencies, in 2012. Management’s calculations of these measures are
set forth in the following tables.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on the company's current expectations and involve
risks and uncertainties that could cause the company's actual results to
differ materially. The differences could be caused by a number of
factors including those factors identified in the "Risk Factors"
sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. The
company undertakes no obligation to update any forward-looking
statements made in this press release to reflect future events or
developments.
|
|
|
Reconciliation for EBITDA and Adjusted EBITDA (unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net earnings
|
|
$
|
9.5
|
|
|
$
|
14.0
|
|
|
$
|
49.4
|
|
$
|
70.5
|
|
Income tax (benefit) expense
|
|
|
(1.6
|
)
|
|
|
3.3
|
|
|
|
13.3
|
|
|
25.1
|
|
Interest expense
|
|
|
4.5
|
|
|
|
5.2
|
|
|
|
9.5
|
|
|
10.9
|
|
Depreciation, depletion and amortization
|
|
|
15.8
|
|
|
|
16.4
|
|
|
|
31.5
|
|
|
32.8
|
|
EBITDA
|
|
$
|
28.2
|
|
|
$
|
38.9
|
|
|
$
|
103.7
|
|
$
|
139.3
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
Other (income) expense(1)
|
|
|
3.1
|
|
|
|
(0.4
|
)
|
|
|
4.7
|
|
|
0.2
|
|
Adjusted EBITDA
|
|
$
|
31.3
|
|
|
$
|
38.5
|
|
|
$
|
108.4
|
|
$
|
139.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Primarily includes interest income and foreign exchange gains
and losses. The three and six months ended June 30, 2012, include a
charge of $2.8 million related to the refinancing of the term loans.
|
|
|
|
|
|
Reconciliation for Net Earnings, Excluding Special Items
(unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net earnings
|
|
$
|
9.5
|
|
|
$
|
14.0
|
|
$
|
49.4
|
|
|
$
|
70.5
|
|
Estimated losses incurred from tornado, net of taxes
and
recoveries(1)
|
|
|
2.1
|
|
|
|
−
|
|
|
11.7
|
|
|
|
−
|
|
Costs to refinance debt, net of taxes(2)
|
|
|
1.7
|
|
|
|
−
|
|
|
1.7
|
|
|
|
−
|
|
Tax benefit from income tax audit(3)
|
|
|
(3.0
|
)
|
|
|
−
|
|
|
(3.0
|
)
|
|
|
−
|
|
Net earnings, excluding special items
|
|
$
|
10.3
|
|
|
$
|
14.0
|
|
$
|
59.8
|
|
|
$
|
70.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In August 2011, the company’s rock salt mine and
evaporated-salt plant in Goderich, ON, sustained damage from a
tornado. The amount reported is management’s estimate of the
impact on the period’s net earnings from losses caused by the
tornado that have not yet been recovered through insurance. The
estimate of $2.9 million and $17.1 million of pre-tax losses ($2.1
million and $11.7 million after applicable income taxes) for the
three and six months ended June 30, 2012, respectively, primarily
includes lost sales volumes, higher per-unit production costs and
higher costs to serve customers – including purchased products and
logistical inefficiencies – realized in the period. These losses
may be recovered in future periods through the company’s business
interruption insurance, but actual recoveries could be different
than the estimate noted above. Under U.S. generally accepted
accounting principles (US GAAP), expected business interruption
insurance recoveries that relate to lost sales and other types of
losses not covered by property and casualty insurance are not
recognized until the insurance claim has been settled, at which
time they would be recognized as reductions in costs. This
estimate does not include property and casualty losses –
consisting of direct cleanup costs and impairments of property,
plant and equipment – that were offset by insurance recoveries
recognized in the period pursuant to US GAAP.
|
|
|
|
(2) In May 2012, we amended and restated our senior secured credit
facility and refinanced our term loans into a single term loan for
pre-tax costs of $2.8 million ($1.7 million after applicable
income taxes).
|
|
|
|
(3) In the second quarter of 2012, the company settled a tax audit
which resulted in a $3.0 million income tax benefit.
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited)
(in millions,
except share and per-share data)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
178.5
|
|
|
$
|
179.9
|
|
|
$
|
493.8
|
|
$
|
570.5
|
|
Shipping and handling cost
|
|
|
42.9
|
|
|
|
44.1
|
|
|
|
136.4
|
|
|
158.8
|
|
Product cost
|
|
|
97.1
|
|
|
|
91.5
|
|
|
|
236.1
|
|
|
259.8
|
|
Gross profit
|
|
|
38.5
|
|
|
|
44.3
|
|
|
|
121.3
|
|
|
151.9
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
23.0
|
|
|
|
22.2
|
|
|
|
44.4
|
|
|
45.2
|
|
Operating earnings
|
|
|
15.5
|
|
|
|
22.1
|
|
|
|
76.9
|
|
|
106.7
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4.5
|
|
|
|
5.2
|
|
|
|
9.5
|
|
|
10.9
|
|
Other, net
|
|
|
3.1
|
|
|
|
(0.4
|
)
|
|
|
4.7
|
|
|
0.2
|
|
Earnings before income taxes
|
|
|
7.9
|
|
|
|
17.3
|
|
|
|
62.7
|
|
|
95.6
|
|
Income tax (benefit) expense
|
|
|
(1.6
|
)
|
|
|
3.3
|
|
|
|
13.3
|
|
|
25.1
|
|
Net earnings
|
|
$
|
9.5
|
|
|
$
|
14.0
|
|
|
$
|
49.4
|
|
$
|
70.5
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per common share
|
|
$
|
0.28
|
|
|
$
|
0.42
|
|
|
$
|
1.47
|
|
$
|
2.11
|
|
Diluted net earnings per common share
|
|
$
|
0.28
|
|
|
$
|
0.42
|
|
|
$
|
1.47
|
|
$
|
2.11
|
|
Cash dividends per share
|
|
$
|
0.495
|
|
|
$
|
0.45
|
|
|
$
|
0.99
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding (in thousands): (1)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,093
|
|
|
|
32,889
|
|
|
|
33,064
|
|
|
32,862
|
|
Diluted
|
|
|
33,118
|
|
|
|
32,922
|
|
|
|
33,088
|
|
|
32,894
|
|
|
|
(1) Excludes participating securities. Participating securities
include options, PSUs and RSUs that receive non-forfeitable
dividends. Net earnings were allocated to 429,000 participating
securities for both the three and six months ended June 30, 2012 and
545,000 and 551,000 participating securities for the three and six
months ended June 30, 2011.
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash equivalents
|
|
$
|
147.6
|
|
$
|
130.3
|
|
Receivables, net
|
|
|
85.0
|
|
|
158.8
|
|
Inventories
|
|
|
215.2
|
|
|
207.2
|
|
Other current assets
|
|
|
14.9
|
|
|
19.5
|
|
Property, plant and equipment, net
|
|
|
606.5
|
|
|
573.4
|
|
Intangible and other noncurrent assets
|
|
|
122.8
|
|
|
116.3
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,192.0
|
|
$
|
1,205.5
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current portion of long-term debt
|
|
$
|
3.9
|
|
$
|
156.0
|
|
Other current liabilities
|
|
|
131.2
|
|
|
170.8
|
|
Long-term debt, net of current portion
|
|
|
480.2
|
|
|
326.7
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
103.3
|
|
|
105.4
|
|
Total stockholders' equity
|
|
|
473.4
|
|
|
446.6
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,192.0
|
|
$
|
1,205.5
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2012
|
|
2011
|
|
Net cash provided by operating activities
|
|
$
|
115.5
|
|
|
$
|
194.1
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(64.4
|
)
|
|
|
(43.7
|
)
|
|
Acquisition of a business, net
|
|
|
−
|
|
|
|
(58.1
|
)
|
|
Other, net
|
|
|
(0.7
|
)
|
|
|
1.0
|
|
|
Net cash used in investing activities
|
|
|
(65.1
|
)
|
|
|
(100.8
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Principal payments on long-term debt
|
|
|
(385.7
|
)
|
|
|
(2.1
|
)
|
|
Issuance of long-term debt
|
|
|
387.0
|
|
|
|
−
|
|
|
Fees paid to refinance long-term debt
|
|
|
(1.8
|
)
|
|
|
−
|
|
|
Deferred financing costs
|
|
|
(2.0
|
)
|
|
|
−
|
|
|
Dividends paid
|
|
|
(33.2
|
)
|
|
|
(30.1
|
)
|
|
Proceeds received from stock option exercises
|
|
|
1.5
|
|
|
|
1.9
|
|
|
Excess tax benefits from equity compensation awards
|
|
|
0.8
|
|
|
|
1.7
|
|
|
Other, net
|
|
|
−
|
|
|
|
(0.1
|
)
|
|
Net cash used in financing activities
|
|
|
(33.4
|
)
|
|
|
(28.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
0.3
|
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
17.3
|
|
|
|
66.9
|
|
|
Cash and cash equivalents, beginning of the period
|
|
|
130.3
|
|
|
|
91.1
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
147.6
|
|
|
$
|
158.0
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
SEGMENT
INFORMATION (unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Three Months Ended June 30, 2012
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
119.9
|
|
$
|
56.2
|
|
$
|
2.4
|
|
|
$
|
178.5
|
|
Intersegment sales
|
|
|
0.2
|
|
|
2.7
|
|
|
(2.9
|
)
|
|
|
−
|
|
Shipping and handling cost
|
|
|
36.8
|
|
|
6.1
|
|
|
−
|
|
|
|
42.9
|
|
Operating earnings (loss)
|
|
|
12.9
|
|
|
13.9
|
|
|
(11.3
|
)
|
|
|
15.5
|
|
Depreciation, depletion and amortization
|
|
|
9.7
|
|
|
5.2
|
|
|
0.9
|
|
|
|
15.8
|
|
Total assets (as of end of period)
|
|
|
726.4
|
|
|
389.1
|
|
|
76.5
|
|
|
|
1,192.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Three Months Ended June 30, 2011
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
127.3
|
|
$
|
49.5
|
|
$
|
3.1
|
|
|
$
|
179.9
|
|
Intersegment sales
|
|
|
0.3
|
|
|
2.5
|
|
|
(2.8
|
)
|
|
|
−
|
|
Shipping and handling cost
|
|
|
38.0
|
|
|
6.1
|
|
|
−
|
|
|
|
44.1
|
|
Operating earnings (loss)
|
|
|
13.6
|
|
|
18.7
|
|
|
(10.2
|
)
|
|
|
22.1
|
|
Depreciation, depletion and amortization
|
|
|
10.1
|
|
|
5.1
|
|
|
1.2
|
|
|
|
16.4
|
|
Total assets (as of end of period)
|
|
|
696.1
|
|
|
359.9
|
|
|
73.8
|
|
|
|
1,129.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Six Months Ended June 30, 2012
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
374.2
|
|
$
|
114.7
|
|
$
|
4.9
|
|
|
$
|
493.8
|
|
Intersegment sales
|
|
|
0.4
|
|
|
3.1
|
|
|
(3.5
|
)
|
|
|
−
|
|
Shipping and handling cost
|
|
|
122.8
|
|
|
13.6
|
|
|
−
|
|
|
|
136.4
|
|
Operating earnings (loss)
|
|
|
65.3
|
|
|
34.6
|
|
|
(23.0
|
)
|
|
|
76.9
|
|
Depreciation, depletion and amortization
|
|
|
19.3
|
|
|
10.4
|
|
|
1.8
|
|
|
|
31.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Six Months Ended June 30, 2011
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
459.7
|
|
$
|
104.9
|
|
$
|
5.9
|
|
|
$
|
570.5
|
|
Intersegment sales
|
|
|
0.5
|
|
|
2.6
|
|
|
(3.1
|
)
|
|
|
−
|
|
Shipping and handling cost
|
|
|
144.9
|
|
|
13.9
|
|
|
−
|
|
|
|
158.8
|
|
Operating earnings (loss)
|
|
|
90.8
|
|
|
38.0
|
|
|
(22.1
|
)
|
|
|
106.7
|
|
Depreciation, depletion and amortization
|
|
|
20.4
|
|
|
10.0
|
|
|
2.4
|
|
|
|
32.8
|
|
|
|
(a) “Corporate and Other” includes corporate entities, the records
management business and eliminations. Corporate assets include
deferred tax assets, deferred financing fees, investments related
to the non-qualified retirement plan and other assets not
allocated to the operating segments.
|
Source: Compass Minerals
Compass Minerals
Rodney L. Underdown, 913-344-9395
Chief
Financial Officer
or
Peggy Landon, 913-344-9315
Director
of Investor Relations and Corporate Communications