OVERLAND PARK, Kan.--(BUSINESS WIRE)--Oct. 29, 2012--
Compass Minerals (NYSE: CMP) reports the following results of its
third-quarter 2012 operations:
-
Net earnings totaled $9.4 million, or $0.28 per diluted share,
compared to $34.6 million, or $1.03 per diluted share, in the third
quarter of 2011.
-
These results included losses from a tornado that struck the company’s
salt operations in Goderich, ON, in August 2011. When excluding the
estimated effects of the tornado, net earnings were $10.3 million, or
$0.31 per diluted share.
-
Sales were $181.0 million, down from $229.1 million in the third
quarter of 2011. A 7 percent increase in specialty fertilizer sales
was more than offset by a 30 percent decline in salt segment sales
resulting from significantly lower pre-season demand for deicing
products following the historically mild 2011-2012 winter season.
-
Operating income was $14.1 million, a decline of $34.5 million from
prior-year results, principally driven by the lower salt sales volumes
and short-term increases on per-unit production costs.
-
Cash flow from operations for the nine months ended September 30,
2012, was $132.2 million compared to $200.8 million in the year-ago
period.
“All in all, this quarter unfolded much as we anticipated. These results
reflect the continued impact of the unusual, weather-related challenges
we faced in 2011 and early 2012. A return of typical winter weather
should result in more-normal sales of deicing products, and we expect
sulfate of potash demand to remain stable at attractive prices for the
remainder of the year,” said Angelo Brisimitzakis, Compass Minerals
president and CEO. “We have also taken steps this quarter to further
strengthen our existing salt business for the long term. At our Goderich
mine we have begun installing more-efficient continuous mining
technology, improved our labor agreement there, and we entered an
agreement with the town of Goderich to expand and enhance the Goderich
port. All of these serve to maximize the value of our most strategically
advantaged asset.”
|
|
|
Compass Minerals Financial Results
(in millions, except for earnings per share)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Sales
|
|
$
|
181.0
|
|
|
$
|
229.1
|
|
|
$
|
674.8
|
|
|
$
|
799.6
|
|
|
Sales less shipping and handling costs(product sales)
|
|
|
140.1
|
|
|
|
173.0
|
|
|
|
497.5
|
|
|
|
584.7
|
|
|
Operating earnings
|
|
|
14.1
|
|
|
|
48.6
|
|
|
|
91.0
|
|
|
|
155.3
|
|
|
Operating margin
|
|
|
8
|
%
|
|
|
21
|
%
|
|
|
13
|
%
|
|
|
19
|
%
|
|
Net earnings
|
|
|
9.4
|
|
|
|
34.6
|
|
|
|
58.8
|
|
|
|
105.1
|
|
|
Net earnings, excluding special items*
|
|
|
10.3
|
|
|
|
34.6
|
|
|
|
70.1
|
|
|
|
105.1
|
|
|
Diluted earnings per share
|
|
|
0.28
|
|
|
|
1.03
|
|
|
|
1.75
|
|
|
|
3.14
|
|
|
Diluted earnings per share, excluding special items*
|
|
|
0.31
|
|
|
|
1.03
|
|
|
|
2.09
|
|
|
|
3.14
|
|
|
EBITDA*
|
|
|
30.1
|
|
|
|
66.3
|
|
|
|
133.8
|
|
|
|
205.6
|
|
|
Adjusted EBITDA*
|
|
|
29.8
|
|
|
|
64.6
|
|
|
|
138.2
|
|
|
|
204.1
|
|
*These are non-GAAP financial measures. Reconciliations to
GAAP measures of performance are provided in tables at the end of this
release.
SALT SEGMENT
The effects of the historically mild 2011-2012 winter season continued
to pressure salt segment results this quarter as the company’s highway,
consumer and professional deicing customers required significantly less
salt than normal to build their initial inventories for the upcoming
winter season. Highway deicing sales volumes were down 45 percent from
the prior-year period, and the average selling price declined 2 percent
due to the increased proportion of lower-priced sales to chemical
customers compared to the year-ago quarter. Consumer and industrial
sales volumes and average selling price both declined 6 percent,
primarily driven by lower sales of higher-priced, packaged deicing
products.
Salt-segment operating earnings were $12.8 million compared to $40.5
million in the prior year. Excluding estimated tornado-related losses,
which include salt purchased from third parties and the costs of
inefficient production and logistics, salt segment operating earnings
were $13.9 million. The salt operating margin declined in the quarter as
a result of lower operating rates at the company’s North American rock
salt mines, due to both planned and unplanned shutdowns. These included
a six-week strike at the company’s Goderich mine, which added
approximately $1 million of costs in the quarter, and a temporary
shutdown for maintenance at its Cote Blanche mine. These shutdowns
allowed the company to adjust salt inventory levels to better match
expected demand and eliminated the need for a previously scheduled
shutdown in the fourth quarter.
|
|
|
Salt Segment Performance
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Sales
|
|
$
|
122.5
|
|
|
$
|
175.5
|
|
|
$
|
496.7
|
|
|
$
|
635.2
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
87.6
|
|
|
$
|
124.9
|
|
|
$
|
339.0
|
|
|
$
|
439.7
|
|
|
Operating earnings
|
|
$
|
12.8
|
|
|
$
|
40.5
|
|
|
$
|
78.1
|
|
|
$
|
131.3
|
|
|
Operating margin
|
|
|
10
|
%
|
|
|
23
|
%
|
|
|
16
|
%
|
|
|
21
|
%
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
1,070
|
|
|
|
1,937
|
|
|
|
5,275
|
|
|
|
7,511
|
|
|
Consumer and industrial
|
|
|
511
|
|
|
|
543
|
|
|
|
1,510
|
|
|
|
1,610
|
|
|
Total salt
|
|
|
1,581
|
|
|
|
2,480
|
|
|
|
6,785
|
|
|
|
9,121
|
|
|
Average sales prices (per ton):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
$
|
47.12
|
|
|
$
|
48.32
|
|
|
$
|
53.35
|
|
|
$
|
52.10
|
|
|
Consumer and industrial
|
|
$
|
141.01
|
|
|
$
|
150.80
|
|
|
$
|
142.52
|
|
|
$
|
151.50
|
|
|
Total salt
|
|
$
|
77.45
|
|
|
$
|
70.76
|
|
|
$
|
73.19
|
|
|
$
|
69.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPECIALTY FERTILIZER SEGMENT
Healthy demand for specialty fertilizer products continued this quarter
and pushed sales up 7 percent to $54.9 million, the highest
third-quarter specialty fertilizer sales since 2008. Sales volumes
climbed 11 percent, while a modest year-over-year increase in the
proportion of lower-priced export sales reduced the average selling
price by 3 percent. Sequentially, average selling prices and total sales
volumes were essentially flat.
Specialty fertilizer operating earnings continued to be muted by
increased production costs related to sourcing higher-cost potassium
mineral feedstock following the unfavorable solar-evaporation season at
the Great Salt Lake in 2011.
|
|
|
Specialty Fertilizer Segment Performance
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Sales
|
|
$
|
54.9
|
|
|
$
|
51.1
|
|
|
$
|
169.6
|
|
|
$
|
156.0
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
48.9
|
|
|
$
|
45.6
|
|
|
$
|
150.0
|
|
|
$
|
136.6
|
|
|
Operating earnings
|
|
$
|
13.1
|
|
|
$
|
19.4
|
|
|
$
|
47.7
|
|
|
$
|
57.4
|
|
|
Operating margin
|
|
|
24
|
%
|
|
|
38
|
%
|
|
|
28
|
%
|
|
|
37
|
%
|
|
Sales volume (in thousands of tons)
|
|
|
90
|
|
|
|
81
|
|
|
|
277
|
|
|
|
259
|
|
|
Average sales price (per ton)
|
|
$
|
615
|
|
|
$
|
631
|
|
|
$
|
613
|
|
|
$
|
603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
Interest expense declined 16 percent from the 2011 quarter reflecting
lower interest rates following the company’s refinancing of long-term
debt in the second quarter of 2012. Other income declined $1.4 million
due to foreign exchange losses compared to foreign exchange gains in the
2011 quarter. Cash flow from operations for the nine-month period
declined 34 percent from the 2011 period as a result of lower earnings
and higher deicing salt inventory levels due to lower demand.
OUTLOOK
The company has essentially completed its bidding for 2012-2013 North
American highway deicing contracts. The average pricing on contracts
awarded to Compass Minerals is approximately 2 percent lower than
year-ago prices. Awarded volumes also moved lower due to customers’
higher-than-typical carry-over inventories and unmet purchase
commitments from the prior season. Based on its bid commitments, the
company expects its highway deicing business to sell approximately 7
million tons of salt during the 2012-2013 winter season, if winter
weather is typical. This would be well above the prior-season’s results
and modestly below the company’s 10-year average of approximately 7.6
million tons.
The company expects to sell approximately 90,000 tons of specialty
fertilizer in the fourth-quarter of 2012 at attractive and stable
prices. The recently completed solar evaporation season at the Great
Salt Lake has yielded a better-than-normal deposit of mineral feedstock
for 2013 production.
The company anticipates 2013 sulfate of potash sales volumes to be
similar to 2012 volumes with elevated per-unit production costs
persisting into the first quarter of 2013. These cost pressures are
expected to diminish throughout the remainder of 2013 as higher-cost
inventories are depleted. In addition, the company has just completed
its solar-pond-sealing investment at the Great Salt Lake, which is
designed to yield more sulfate of potash feedstock per acre of
evaporation pond.
“I’m quite optimistic about the future for Compass Minerals,” said Dr.
Brisimitzakis. “The fundamentals of our resilient salt business remain
intact, and our strategic investment in world-class salt reserves in
Chile may provide a pathway to new salt markets while strengthening
existing ones. Also, the company’s multi-phased sulfate of potash
capacity expansion at the Great Salt Lake provides long-term
opportunities for Compass Minerals’ specialty fertilizer segment to
continue its profitable growth.”
A summary of Compass Minerals’ third-quarter performance and current
outlook 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
8404867. 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 8404867. 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
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net earnings
|
|
$
|
9.4
|
|
|
$
|
34.6
|
|
|
$
|
58.8
|
|
$
|
105.1
|
|
|
Interest expense
|
|
|
4.2
|
|
|
|
5.0
|
|
|
|
13.7
|
|
|
15.9
|
|
|
Income tax expense
|
|
|
0.8
|
|
|
|
10.7
|
|
|
|
14.1
|
|
|
35.8
|
|
|
Depreciation, depletion and amortization
|
|
|
15.7
|
|
|
|
16.0
|
|
|
|
47.2
|
|
|
48.8
|
|
|
EBITDA
|
|
$
|
30.1
|
|
|
$
|
66.3
|
|
|
$
|
133.8
|
|
$
|
205.6
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
Other (income) expense(1)
|
|
|
(0.3
|
)
|
|
|
(1.7
|
)
|
|
|
4.4
|
|
|
(1.5
|
)
|
|
Adjusted EBITDA
|
|
$
|
29.8
|
|
|
$
|
64.6
|
|
|
$
|
138.2
|
|
$
|
204.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Principally includes interest income and foreign exchange gains and
losses in all periods. The nine months ended September 30, 2012
include a charge of $2.8 million related to the refinancing of term
loans.
|
|
|
|
Reconciliation for Net Earnings, Excluding Special Items
(unaudited)
(in millions)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net earnings
|
|
$
|
9.4
|
|
$
|
34.6
|
|
$
|
58.8
|
|
|
$
|
105.1
|
|
Estimated losses incurred from tornado, net of taxes and recoveries(1)
|
|
|
0.9
|
|
|
−
|
|
|
12.6
|
|
|
|
−
|
|
Costs to refinance debt, net of taxes(2)
|
|
|
−
|
|
|
−
|
|
|
1.7
|
|
|
|
−
|
|
Tax benefit from income tax audit(3)
|
|
|
−
|
|
|
−
|
|
|
(3.0
|
)
|
|
|
−
|
|
Net earnings, excluding special items
|
|
$
|
10.3
|
|
$
|
34.6
|
|
$
|
70.1
|
|
|
$
|
105.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $1.2 million and $18.3
million of pre-tax losses ($0.9 million and $12.6 million after
applicable income taxes) for the three and nine months ended
September 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 data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
181.0
|
|
|
$
|
229.1
|
|
|
$
|
674.8
|
|
$
|
799.6
|
|
|
Shipping and handling cost
|
|
|
40.9
|
|
|
|
56.1
|
|
|
|
177.3
|
|
|
214.9
|
|
|
Product cost
|
|
|
103.9
|
|
|
|
102.0
|
|
|
|
340.0
|
|
|
361.8
|
|
|
Gross profit
|
|
|
36.2
|
|
|
|
71.0
|
|
|
|
157.5
|
|
|
222.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
22.1
|
|
|
|
22.4
|
|
|
|
66.5
|
|
|
67.6
|
|
|
Operating earnings
|
|
|
14.1
|
|
|
|
48.6
|
|
|
|
91.0
|
|
|
155.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4.2
|
|
|
|
5.0
|
|
|
|
13.7
|
|
|
15.9
|
|
|
Other, net
|
|
|
(0.3
|
)
|
|
|
(1.7
|
)
|
|
|
4.4
|
|
|
(1.5
|
)
|
|
Earnings before income taxes
|
|
|
10.2
|
|
|
|
45.3
|
|
|
|
72.9
|
|
|
140.9
|
|
|
Income tax expense
|
|
|
0.8
|
|
|
|
10.7
|
|
|
|
14.1
|
|
|
35.8
|
|
|
Net earnings
|
|
$
|
9.4
|
|
|
$
|
34.6
|
|
|
$
|
58.8
|
|
$
|
105.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per share
|
|
$
|
0.28
|
|
|
$
|
1.04
|
|
|
$
|
1.76
|
|
$
|
3.14
|
|
|
Diluted net earnings per share
|
|
$
|
0.28
|
|
|
$
|
1.03
|
|
|
$
|
1.75
|
|
$
|
3.14
|
|
|
Cash dividends per share
|
|
$
|
0.495
|
|
|
$
|
0.45
|
|
|
$
|
1.485
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (in thousands): (1)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,110
|
|
|
|
32,906
|
|
|
|
33,080
|
|
|
32,877
|
|
|
Diluted
|
|
|
33,138
|
|
|
|
32,931
|
|
|
|
33,105
|
|
|
32,907
|
|
|
|
(1)
|
|
Excludes participating securities. Participating securities include
options, PSUs and RSUs that receive non-forfeitable dividends. Net
earnings were allocated to 419,000 and 426,000 participating
securities for the three and nine months ended September 30, 2012,
respectively, and 532,000 and 545,000 participating securities for
the three and nine months ended September 30, 2011.
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
ASSETS
|
|
Cash and cash equivalents
|
|
$
|
116.4
|
|
$
|
130.3
|
|
Receivables, net
|
|
|
110.0
|
|
|
158.8
|
|
Inventories
|
|
|
227.3
|
|
|
207.2
|
|
Other current assets
|
|
|
17.2
|
|
|
19.5
|
|
Property, plant and equipment, net
|
|
|
640.3
|
|
|
573.4
|
|
Intangible and other noncurrent assets
|
|
|
126.8
|
|
|
116.3
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,238.0
|
|
$
|
1,205.5
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
Current portion of long-term debt
|
|
$
|
3.9
|
|
$
|
156.0
|
|
Other current liabilities
|
|
|
157.9
|
|
|
170.8
|
|
Long-term debt, net of current portion
|
|
|
479.3
|
|
|
326.7
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
107.3
|
|
|
105.4
|
|
Total stockholders' equity
|
|
|
489.6
|
|
|
446.6
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,238.0
|
|
$
|
1,205.5
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
2012
|
|
2011
|
|
Net cash provided by operating activities
|
|
$
|
132.2
|
|
|
$
|
200.8
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(98.9
|
)
|
|
|
(66.5
|
)
|
|
Insurance advances for investment purposes, Goderich tornado
|
|
|
-
|
|
|
|
4.1
|
|
|
Acquisition of a business, net
|
|
|
-
|
|
|
|
(58.1
|
)
|
|
Other, net
|
|
|
(1.0
|
)
|
|
|
0.7
|
|
|
Net cash used in investing activities
|
|
|
(99.9
|
)
|
|
|
(119.8
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Principal payments on long-term debt
|
|
|
(386.7
|
)
|
|
|
(3.2
|
)
|
|
Issuance of long-term debt
|
|
|
387.0
|
|
|
|
-
|
|
|
Fees paid to refinance long-term debt
|
|
|
(1.8
|
)
|
|
|
-
|
|
|
Deferred financing costs
|
|
|
(2.2
|
)
|
|
|
-
|
|
|
Dividends paid
|
|
|
(49.7
|
)
|
|
|
(45.1
|
)
|
|
Proceeds received from stock option exercises
|
|
|
1.6
|
|
|
|
1.9
|
|
|
Excess tax benefits from equity compensation awards
|
|
|
0.9
|
|
|
|
1.9
|
|
|
Net cash used in financing activities
|
|
|
(50.9
|
)
|
|
|
(44.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
4.7
|
|
|
|
(4.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
(13.9
|
)
|
|
|
32.3
|
|
|
Cash and cash equivalents, beginning of the year
|
|
|
130.3
|
|
|
|
91.1
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
116.4
|
|
|
$
|
123.4
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
SEGMENT INFORMATION (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Three Months Ended September 30, 2012
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
122.5
|
|
$
|
54.9
|
|
$
|
3.6
|
|
|
$
|
181.0
|
|
Intersegment sales
|
|
|
0.2
|
|
|
1.1
|
|
|
(1.3
|
)
|
|
|
–
|
|
Shipping and handling cost
|
|
|
34.9
|
|
|
6.0
|
|
|
–
|
|
|
|
40.9
|
|
Operating earnings (loss)
|
|
|
12.8
|
|
|
13.1
|
|
|
(11.8
|
)
|
|
|
14.1
|
|
Depreciation, depletion and amortization
|
|
|
9.4
|
|
|
5.2
|
|
|
1.1
|
|
|
|
15.7
|
|
Total assets (as of end of period)
|
|
|
749.7
|
|
|
403.6
|
|
|
84.7
|
|
|
|
1,238.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Three Months Ended September 30, 2011
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
175.5
|
|
$
|
51.1
|
|
$
|
2.5
|
|
|
$
|
229.1
|
|
Intersegment sales
|
|
|
0.2
|
|
|
1.2
|
|
|
(1.4
|
)
|
|
|
–
|
|
Shipping and handling cost
|
|
|
50.6
|
|
|
5.5
|
|
|
–
|
|
|
|
56.1
|
|
Operating earnings (loss)
|
|
|
40.5
|
|
|
19.4
|
|
|
(11.3
|
)
|
|
|
48.6
|
|
Depreciation, depletion and amortization
|
|
|
10.0
|
|
|
5.0
|
|
|
1.0
|
|
|
|
16.0
|
|
Total assets (as of end of period)
|
|
|
688.6
|
|
|
369.9
|
|
|
66.6
|
|
|
|
1,125.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Nine Months Ended September 30, 2012
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
496.7
|
|
$
|
169.6
|
|
$
|
8.5
|
|
|
$
|
674.8
|
|
Intersegment sales
|
|
|
0.6
|
|
|
4.2
|
|
|
(4.8
|
)
|
|
|
–
|
|
Shipping and handling cost
|
|
|
157.7
|
|
|
19.6
|
|
|
–
|
|
|
|
177.3
|
|
Operating earnings (loss)
|
|
|
78.1
|
|
|
47.7
|
|
|
(34.8
|
)
|
|
|
91.0
|
|
Depreciation, depletion and amortization
|
|
|
28.7
|
|
|
15.6
|
|
|
2.9
|
|
|
|
47.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
Corporate
|
|
|
|
Nine Months Ended September 30, 2011
|
|
Salt
|
|
Fertilizer
|
|
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
635.2
|
|
$
|
156.0
|
|
$
|
8.4
|
|
|
$
|
799.6
|
|
Intersegment sales
|
|
|
0.7
|
|
|
3.8
|
|
|
(4.5
|
)
|
|
|
–
|
|
Shipping and handling cost
|
|
|
195.5
|
|
|
19.4
|
|
|
–
|
|
|
|
214.9
|
|
Operating earnings (loss)
|
|
|
131.3
|
|
|
57.4
|
|
|
(33.4
|
)
|
|
|
155.3
|
|
Depreciation, depletion and amortization
|
|
|
30.4
|
|
|
15.0
|
|
|
3.4
|
|
|
|
48.8
|
|
|
(a)
|
|
“Corporate and Other” includes corporate entities, the records
management business, other incidental business operations 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