Robust Cash Flow Generated
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Jul. 29, 2013--
Compass Minerals (NYSE: CMP) reports the following results of its
second-quarter 2013 operations:
-
Net earnings increased to $10.6 million, or $0.32 per diluted share,
from $9.5 million, or $0.28 per diluted share, in the second quarter
of 2012. Excluding special items, second-quarter 2012 net earnings
were $10.3 million, or $0.31 per diluted share.
-
Sales of $173.8 million were 3 percent lower year over year as
increased salt sales were offset by a decline in specialty fertilizer
sales resulting from the company’s constrained supply of sulfate of
potash.
-
Operating earnings of $14.7 million were $0.8 million lower year over
year as improved salt earnings were offset by an increase in selling,
general and administrative expenses, including a $1.7 million
restructuring charge associated with streamlining the company’s
management structure.
-
Adjusted EBITDA* increased to $32.8 million from $31.3 million in the
second quarter of 2012.
-
Cash flow from operations for the six months ended June 30, 2013,
increased 52 percent to $175.8 million from $115.5 million in the 2012
period.
*Earnings before interest, taxes, depreciation and amortization. This is
a non-GAAP financial measure. Reconciliations to GAAP measures of
performance are provided in tables at the end of this release.
“Compass Minerals generated strong cash flow from operations through the
first six months of the year demonstrating the solid underlying
fundamentals of both its specialty fertilizer and salt businesses,” said
Fran Malecha, Compass Minerals president and CEO. “I believe our ongoing
cost-reduction efforts, such as the steps we took this quarter to
streamline management, and a return to more-normal operating rates will
provide EBITDA margin expansion throughout the remainder of 2013. We
will pursue every opportunity to fine-tune our operations to extract
even greater value from our assets.”
|
|
|
Compass Minerals Financial Results
|
|
(in millions, except for earnings per share)
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
173.8
|
|
|
$
|
178.5
|
|
|
|
$
|
557.5
|
|
|
$
|
493.8
|
|
|
Sales less shipping and handling (product sales)
|
|
|
133.5
|
|
|
|
135.6
|
|
|
|
|
401.9
|
|
|
|
357.4
|
|
|
Operating earnings
|
|
|
14.7
|
|
|
|
15.5
|
|
|
|
|
82.2
|
|
|
|
76.9
|
|
|
Operating margin
|
|
|
8.5
|
%
|
|
|
8.7
|
%
|
|
|
|
14.7
|
%
|
|
|
15.6
|
%
|
|
Net earnings
|
|
|
10.6
|
|
|
|
9.5
|
|
|
|
|
57.0
|
|
|
|
49.4
|
|
|
Net earnings, excluding special items*
|
|
|
10.6
|
|
|
|
10.3
|
|
|
|
|
57.0
|
|
|
|
59.8
|
|
|
Diluted earnings per share
|
|
|
0.32
|
|
|
|
0.28
|
|
|
|
|
1.69
|
|
|
|
1.47
|
|
|
Diluted per-share earnings, excluding special items*
|
|
|
0.32
|
|
|
|
0.31
|
|
|
|
|
1.69
|
|
|
|
1.78
|
|
|
EBITDA*
|
|
|
35.5
|
|
|
|
28.2
|
|
|
|
|
120.7
|
|
|
|
103.7
|
|
|
Adjusted EBITDA*
|
|
|
32.8
|
|
|
|
31.3
|
|
|
|
|
117.6
|
|
|
|
108.4
|
|
|
*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 segment sales increased 6 percent to $127.3 million from
$119.9 million in the prior-year quarter. Highway deicing sales volumes
were 5 percent higher year over year due to late winter weather in North
America and early summer restocking in the U.K., partially offset by a
decline in rock salt sales to chemical customers. Average selling prices
for the highway deicing business increased 5 percent as a result of a
year-over-year reduction in the proportion of lower-priced rock salt
sales to chemical customers. Consumer and industrial sales volumes and
average selling price both climbed 2 percent from 2012 results as demand
remained relatively stable for these products.
Operating earnings in the salt segment increased to $15.7 million from
$12.9 million in the 2012 period, while segment EBITDA improved $4.2
million to $26.8 million. Excluding estimated effects from a tornado
that struck the company’s Goderich, Ontario, operations in August 2011,
second-quarter 2012 segment operating earnings and EBITDA would have
been $15.7 million and $25.4 million, respectively.
Highway Deicing Bids
Bidding for North American highway deicing contracts for the 2013-2014
winter is approximately 60 percent complete. Following two
milder-than-normal winter seasons, awarded bid prices have continued to
be pressured by supply-demand imbalances. Compass Minerals’ awarded
prices to date have declined approximately 2 percent from the 2012 bid
season. The highway deicing bid volumes requested by transportation
departments have increased substantially year over year but have not yet
returned to pre-2012 levels. Bid volumes were unusually depressed in the
2012 bid season as a result of high customer carry-over inventories
following the historically mild 2011-2012 winter.
|
|
|
Salt Segment Performance
|
|
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
127.3
|
|
|
$
|
119.9
|
|
|
|
$
|
454.8
|
|
|
$
|
374.2
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
91.6
|
|
|
$
|
83.1
|
|
|
|
$
|
310.0
|
|
|
$
|
251.4
|
|
|
Operating earnings
|
|
$
|
15.7
|
|
|
$
|
12.9
|
|
|
|
$
|
81.1
|
|
|
$
|
65.3
|
|
|
Operating margin
|
|
|
12.3
|
%
|
|
|
10.8
|
%
|
|
|
|
17.8
|
%
|
|
|
17.5
|
%
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
1,157
|
|
|
|
1,101
|
|
|
|
|
5,515
|
|
|
|
4,205
|
|
|
Consumer and industrial
|
|
|
502
|
|
|
|
493
|
|
|
|
|
1,037
|
|
|
|
999
|
|
|
Total salt
|
|
|
1,659
|
|
|
|
1,594
|
|
|
|
|
6,552
|
|
|
|
5,204
|
|
|
Average sales price (per ton):
|
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
$
|
47.59
|
|
|
$
|
45.39
|
|
|
|
$
|
55.27
|
|
|
$
|
54.94
|
|
|
Consumer and industrial
|
|
$
|
143.96
|
|
|
$
|
141.72
|
|
|
|
$
|
144.69
|
|
|
$
|
143.29
|
|
|
Total salt
|
|
$
|
76.77
|
|
|
$
|
75.20
|
|
|
|
$
|
69.42
|
|
|
$
|
71.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPECIALTY FERTILIZER SEGMENT
Specialty fertilizer sales were $44.1 million, down 22 percent from the
second quarter of 2012. Sulfate of potash supply constraints resulted in
a 22,000 ton reduction in sales volumes year over year. The company
continued to focus its limited supply of specialty potash on its most
valuable markets. As a result, average selling price rose to $638 per
ton from $612 per ton in the prior-year period and $615 in the first
quarter.
EBITDA for the segment increased to $19.9 million from $19.1 million in
the prior-year quarter through improvements in per-unit production costs
and higher average selling prices, partially offset by lower sales
volumes.
|
|
|
Specialty Fertilizer Segment Performance
|
|
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
44.1
|
|
|
$
|
56.2
|
|
|
|
$
|
98.1
|
|
|
$
|
114.7
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
39.5
|
|
|
$
|
50.1
|
|
|
|
$
|
87.3
|
|
|
$
|
101.1
|
|
|
Operating earnings
|
|
$
|
14.0
|
|
|
$
|
13.9
|
|
|
|
$
|
29.4
|
|
|
$
|
34.6
|
|
|
Operating margin
|
|
|
31.8
|
%
|
|
|
24.7
|
%
|
|
|
|
30.0
|
%
|
|
|
30.2
|
%
|
|
Sales volume (in thousands of tons)
|
|
|
69
|
|
|
|
91
|
|
|
|
|
157
|
|
|
|
187
|
|
|
Average sales price (per ton)
|
|
$
|
638
|
|
|
$
|
612
|
|
|
|
$
|
625
|
|
|
$
|
612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
Selling, general and administrative expenses were temporarily inflated
by several factors including a $1.7 million restructuring charge related
to a reorganization of the company’s management structure.
Other income of $2.7 million primarily reflects foreign exchange gains
compared to other expense of $3.1 million in the prior year period,
which included a $2.8 million charge for debt refinancing costs.
Year to date, the company has generated $60 million greater cash flow
from operations than in the six months ended June 30, 2012, as more
typical winter weather beginning in February resulted in a significant
year-over-year decrease in salt inventories.
OUTLOOK
The company anticipates improved operating rates at most of its
production facilities, which is expected to reduce per-unit product
costs and increase operating margins in both of its segments.
If weather is average this coming winter, salt sales volumes in the
second half of 2013 would improve over 2012 results. In addition,
average weather should produce more typical sales mixes in both the
highway deicing and consumer and industrial businesses and, in turn,
should increase second-half 2013 average selling prices above prior-year
results.
The company expects second-half 2013 specialty fertilizer segment sales
volumes and average selling prices to be similar to first-half results.
The company also expects cost improvements to continue through the
remainder of 2013.
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 tomorrow
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
9738789. Outside of the U.S. and Canada, callers may dial (913)
643-4075. 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 9738789. 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 earnings. The company also uses EBITDA and adjusted EBITDA to
assess its operating performance and return on capital 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 earnings, 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 potential inconsistencies in the method of calculation.
The calculations of EBITDA and adjusted EBITDA as used by management are
set forth in the following tables.
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
|
|
|
Six months ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Net earnings
|
|
$
|
10.6
|
|
|
$
|
9.5
|
|
|
|
$
|
57.0
|
|
|
$
|
49.4
|
|
|
Interest expense
|
|
|
4.4
|
|
|
|
4.5
|
|
|
|
|
8.8
|
|
|
|
9.5
|
|
|
Income tax (benefit) expense
|
|
|
2.4
|
|
|
|
(1.6
|
)
|
|
|
|
19.5
|
|
|
|
13.3
|
|
|
Depreciation, depletion and amortization
|
|
|
18.1
|
|
|
|
15.8
|
|
|
|
|
35.4
|
|
|
|
31.5
|
|
|
EBITDA
|
|
$
|
35.5
|
|
|
$
|
28.2
|
|
|
|
$
|
120.7
|
|
|
$
|
103.7
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense(1)
|
|
|
(2.7
|
)
|
|
|
3.1
|
|
|
|
|
(3.1
|
)
|
|
|
4.7
|
|
|
Adjusted EBITDA
|
|
$
|
32.8
|
|
|
$
|
31.3
|
|
|
|
$
|
117.6
|
|
|
$
|
108.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 term loans.
|
|
|
|
|
|
|
|
Reconciliation for Net Earnings, Excluding Special Items
(unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Net earnings
|
|
$
|
10.6
|
|
|
$
|
9.5
|
|
|
|
$
|
57.0
|
|
|
$
|
49.4
|
|
|
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
|
|
$
|
10.6
|
|
|
$
|
10.3
|
|
|
|
$
|
57.0
|
|
|
$
|
59.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
In August 2011, the company’s rock salt mine and evaporated-salt
plant in Goderich, Ontario, 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 (U.S. 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 U.S. 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.
|
|
|
|
|
|
|
|
Reconciliation for Salt Segment EBITDA and Pro Forma EBITDA
(unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
|
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
Reported GAAP Operating Earnings
|
|
$
|
15.7
|
|
$
|
12.9
|
|
Depreciation, depletion and amortization
|
|
|
11.1
|
|
|
9.7
|
|
EBITDA
|
|
$
|
26.8
|
|
$
|
22.6
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
Estimated losses incurred from tornado, net of
recoveries(1)
|
|
|
−
|
|
|
2.8
|
|
Pro Forma EBITDA
|
|
$
|
26.8
|
|
$
|
25.4
|
|
|
|
|
|
|
|
|
|
(1)
|
|
In August 2011, the company’s rock salt mine and evaporated-salt
plant in Goderich, Ontario, 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 $2.8
million for the three months ended June 30, 2012 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 (U.S. 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 U.S. GAAP.
|
|
|
|
|
|
|
|
Reconciliation for Specialty Fertilizer Segment EBITDA (unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
|
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
Reported GAAP Operating Earnings
|
|
$
|
14.0
|
|
$
|
13.9
|
|
Depreciation, depletion and amortization
|
|
|
5.9
|
|
|
5.2
|
|
EBITDA
|
|
$
|
19.9
|
|
$
|
19.1
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
(in millions, except share and per-share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
173.8
|
|
|
$
|
178.5
|
|
|
|
$
|
557.5
|
|
|
$
|
493.8
|
|
|
Shipping and handling cost
|
|
|
40.3
|
|
|
|
42.9
|
|
|
|
|
155.6
|
|
|
|
136.4
|
|
|
Product cost
|
|
|
91.6
|
|
|
|
97.1
|
|
|
|
|
268.7
|
|
|
|
236.1
|
|
|
Gross profit
|
|
|
41.9
|
|
|
|
38.5
|
|
|
|
|
133.2
|
|
|
|
121.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
27.2
|
|
|
|
23.0
|
|
|
|
|
51.0
|
|
|
|
44.4
|
|
|
Operating earnings
|
|
|
14.7
|
|
|
|
15.5
|
|
|
|
|
82.2
|
|
|
|
76.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4.4
|
|
|
|
4.5
|
|
|
|
|
8.8
|
|
|
|
9.5
|
|
|
Other, net
|
|
|
(2.7
|
)
|
|
|
3.1
|
|
|
|
|
(3.1
|
)
|
|
|
4.7
|
|
|
Earnings before income taxes
|
|
|
13.0
|
|
|
|
7.9
|
|
|
|
|
76.5
|
|
|
|
62.7
|
|
|
Income tax (benefit) expense
|
|
|
2.4
|
|
|
|
(1.6
|
)
|
|
|
|
19.5
|
|
|
|
13.3
|
|
|
Net earnings
|
|
$
|
10.6
|
|
|
$
|
9.5
|
|
|
|
$
|
57.0
|
|
|
$
|
49.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per common share
|
|
$
|
0.32
|
|
|
$
|
0.28
|
|
|
|
$
|
1.69
|
|
|
$
|
1.47
|
|
|
Diluted net earnings per common share
|
|
$
|
0.32
|
|
|
$
|
0.28
|
|
|
|
$
|
1.69
|
|
|
$
|
1.47
|
|
|
Cash dividends per share
|
|
$
|
0.545
|
|
|
$
|
0.495
|
|
|
|
$
|
1.09
|
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding (in thousands):(1)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,380
|
|
|
|
33,093
|
|
|
|
|
33,332
|
|
|
|
33,064
|
|
|
Diluted
|
|
|
33,411
|
|
|
|
33,118
|
|
|
|
|
33,362
|
|
|
|
33,088
|
|
|
|
|
|
|
|
(1)
|
|
Excludes participating securities. Participating securities include
options, PSUs and RSUs that receive non-forfeitable dividends. Net
earnings were allocated to 317,000 and 320,000 participating
securities in the three and six months ended June 30, 2013 and
429,000 participating securities for both the three and six months
ended June 30, 2012.
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash equivalents
|
|
$
|
196.4
|
|
$
|
100.1
|
|
Receivables, net
|
|
|
72.9
|
|
|
143.7
|
|
Inventories
|
|
|
184.9
|
|
|
229.7
|
|
Other current assets
|
|
|
26.9
|
|
|
33.4
|
|
Property, plant and equipment, net
|
|
|
654.6
|
|
|
645.2
|
|
Intangible and other noncurrent assets
|
|
|
149.2
|
|
|
148.5
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,284.9
|
|
$
|
1,300.6
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current portion of long-term debt
|
|
$
|
3.9
|
|
$
|
3.9
|
|
Other current liabilities
|
|
|
175.7
|
|
|
195.4
|
|
Long-term debt, net of current portion
|
|
|
476.6
|
|
|
478.4
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
121.7
|
|
|
119.4
|
|
Total stockholders' equity
|
|
|
507.0
|
|
|
503.5
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,284.9
|
|
$
|
1,300.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2013
|
|
2012
|
|
Net cash provided by operating activities
|
|
$
|
175.8
|
|
|
$
|
115.5
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(55.5
|
)
|
|
|
(64.4
|
)
|
|
Insurance advances for investment purposes, Goderich tornado
|
|
|
11.9
|
|
|
|
−
|
|
|
Other, net
|
|
|
2.4
|
|
|
|
(0.7
|
)
|
|
Net cash used in investing activities
|
|
|
(41.2
|
)
|
|
|
(65.1
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Principal payments on long-term debt
|
|
|
(1.9
|
)
|
|
|
(385.7
|
)
|
|
Issuance of long-term debt
|
|
|
−
|
|
|
|
387.0
|
|
|
Fees paid to refinance long-term debt
|
|
|
−
|
|
|
|
(1.8
|
)
|
|
Deferred financing costs
|
|
|
−
|
|
|
|
(2.0
|
)
|
|
Dividends paid
|
|
|
(36.5
|
)
|
|
|
(33.2
|
)
|
|
Proceeds received from stock option exercises
|
|
|
7.6
|
|
|
|
1.5
|
|
|
Excess tax benefits from equity compensation awards
|
|
|
0.6
|
|
|
|
0.8
|
|
|
Net cash used in financing activities
|
|
|
(30.2
|
)
|
|
|
(33.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(8.1
|
)
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
96.3
|
|
|
|
17.3
|
|
|
Cash and cash equivalents, beginning of the period
|
|
|
100.1
|
|
|
|
130.3
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
196.4
|
|
|
$
|
147.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
SEGMENT INFORMATION (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
|
Corporate
|
|
|
|
|
Three Months Ended June 30, 2013
|
|
|
Salt
|
|
|
Fertilizer
|
|
|
and Other(a)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
127.3
|
|
|
$
|
44.1
|
|
|
$
|
2.4
|
|
|
|
$
|
173.8
|
|
Intersegment sales
|
|
|
|
0.3
|
|
|
|
2.7
|
|
|
|
(3.0
|
)
|
|
|
|
−
|
|
Shipping and handling cost
|
|
|
|
35.7
|
|
|
|
4.6
|
|
|
|
−
|
|
|
|
|
40.3
|
|
Operating earnings (loss)
|
|
|
|
15.7
|
|
|
|
14.0
|
|
|
|
(15.0
|
)
|
|
|
|
14.7
|
|
Depreciation, depletion and amortization
|
|
|
|
11.1
|
|
|
|
5.9
|
|
|
|
1.1
|
|
|
|
|
18.1
|
|
Total assets (as of end of period)
|
|
|
|
818.8
|
|
|
|
389.5
|
|
|
|
76.6
|
|
|
|
|
1,284.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
Six Months Ended June 30, 2013
|
|
|
Salt
|
|
|
Fertilizer
|
|
|
and Other(a)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
454.8
|
|
|
$
|
98.1
|
|
|
$
|
4.6
|
|
|
|
$
|
557.5
|
|
Intersegment sales
|
|
|
|
0.5
|
|
|
|
2.9
|
|
|
|
(3.4
|
)
|
|
|
|
−
|
|
Shipping and handling cost
|
|
|
|
144.8
|
|
|
|
10.8
|
|
|
|
−
|
|
|
|
|
155.6
|
|
Operating earnings (loss)
|
|
|
|
81.1
|
|
|
|
29.4
|
|
|
|
(28.3
|
)
|
|
|
|
82.2
|
|
Depreciation, depletion and amortization
|
|
|
|
21.5
|
|
|
|
11.8
|
|
|
|
2.1
|
|
|
|
|
35.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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