Improvements in Salt Segment Drive Higher Earnings
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Oct. 28, 2013--
Compass Minerals (NYSE: CMP) reports the following results of its
third-quarter 2013 operations:
-
Net earnings improved 64 percent to $15.4 million, or $0.46 per
diluted share, from $9.4 million, or $0.28 per diluted share, in the
third quarter of 2012. Excluding special items, the prior-period
results were $10.3 million, or $0.31 per diluted share.
-
Sales were $184.7 million compared to $181.0 million in the 2012 third
quarter. A 16 percent increase in salt sales was partially offset by a
29 percent decline in specialty fertilizer sales as growers delayed
purchasing fertilizer due to recent developments in fertilizer markets.
-
Operating income climbed 64 percent to $23.1 million from $14.1
million in the third quarter of 2012. This improvement was driven
primarily by higher salt sales volumes and lower per-unit salt costs.
-
Cash flow from operations for the nine months ended September 30,
2013, was $142.1 million, increasing from $132.2 million in the 2012
period.
-
Adjusted EBITDA* increased to $41.1 million from $29.8 million in the
prior-year period and the Adjusted EBITDA margin expanded to 22
percent from 16 percent.
“Our performance this quarter demonstrates the benefits of our balanced
portfolio of minerals,” said Fran Malecha, Compass Minerals president
and CEO. “Our salt segment sales are improving as we expected, and we
are seeing improved margins as a result of more typical demand.
Meanwhile our marketing of the benefits of sulfate of potash over
standard potash to growers of specialty crops continues to sustain our
premium specialty fertilizer pricing in North America.”
*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 Financial Results
|
|
(in millions, except for earnings per share)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Sales
|
|
$184.7
|
|
$181.0
|
|
$742.2
|
|
$674.8
|
|
Sales less shipping and handling costs (product sales)
|
|
140.3
|
|
140.1
|
|
542.2
|
|
497.5
|
|
Operating earnings
|
|
23.1
|
|
14.1
|
|
105.3
|
|
91.0
|
|
Operating margin
|
|
13%
|
|
8%
|
|
14%
|
|
13%
|
|
Net earnings
|
|
15.4
|
|
9.4
|
|
72.4
|
|
58.8
|
|
Net earnings, excluding special items*
|
|
15.4
|
|
10.3
|
|
72.4
|
|
70.1
|
|
Diluted earnings per share
|
|
0.46
|
|
0.28
|
|
2.15
|
|
1.75
|
|
Diluted earnings per share, excluding special items*
|
|
0.46
|
|
0.31
|
|
2.15
|
|
2.09
|
|
EBITDA*
|
|
41.2
|
|
30.1
|
|
161.9
|
|
133.8
|
|
Adjusted EBITDA*
|
|
41.1
|
|
29.8
|
|
158.7
|
|
138.2
|
*These are non-GAAP financial measures. Reconciliations to
GAAP measures of performance are provided in tables at the end of this
release.
SALT SEGMENT
Sales of salt products increased to $142.6 million from $122.5 million
in the third quarter of 2012. A year-over-year increase in pre-season
highway deicing restocking resulted in a 30 percent increase in sales
volumes and a more favorable product mix that produced a 2 percent
improvement in average selling price. Consumer and industrial sales
volumes improved 6 percent year-over-year, while average selling price
dropped 1 percent.
Salt segment EBITDA rose 65 percent in the third quarter of 2013 to
$36.6 million from $22.2 million in the third quarter of 2012. Excluding
the estimated effects of the 2011 Goderich tornado from the 2012
results, salt segment EBITDA would have been $23.1 million in the
prior-year quarter. The year-over-year improvement resulted from higher
sales volumes as well as lower per-unit costs due to better asset
utilization.
Highway Deicing Bids
The North American highway deicing bid season for the 2013-2014 winter
is complete. Following the market-wide reduction in North American
highway bid volumes last season, this year’s bid volumes have recovered
approximately 50 percent of that reduction. Average prices on contracts
awarded to the company in its traditional highway deicing markets have
declined approximately 3 percent from prices awarded last year,
reflecting the negative effects of two consecutive mild winters. The
company has also secured lower-value highway deicing sales opportunities
with non-traditional deicing customers. These additional volume
commitments are expected to increase earnings through margin
improvements and better mine utilization rates.
|
|
|
Salt Segment Performance
|
|
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
142.6
|
|
$
|
122.5
|
|
$
|
597.4
|
|
$
|
496.7
|
|
Sales less shipping and handling (product sales)
|
|
$
|
102.4
|
|
$
|
87.6
|
|
$
|
412.4
|
|
$
|
339.0
|
|
Operating earnings
|
|
$
|
25.4
|
|
$
|
12.8
|
|
$
|
106.5
|
|
$
|
78.1
|
|
Operating margin
|
|
|
18%
|
|
|
10%
|
|
|
18%
|
|
|
16%
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
1,392
|
|
|
1,070
|
|
|
6,907
|
|
|
5,275
|
|
Consumer and industrial
|
|
|
544
|
|
|
511
|
|
|
1,581
|
|
|
1,510
|
|
Total salt
|
|
|
1,936
|
|
|
1,581
|
|
|
8,488
|
|
|
6,785
|
|
Average sales prices (per ton):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
$
|
47.83
|
|
$
|
47.12
|
|
$
|
53.77
|
|
$
|
53.35
|
|
Consumer and industrial
|
|
$
|
139.61
|
|
$
|
141.01
|
|
$
|
142.94
|
|
$
|
142.52
|
|
Total salt
|
|
$
|
73.64
|
|
$
|
77.45
|
|
$
|
70.38
|
|
$
|
73.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPECIALTY FERTILIZER SEGMENT
Specialty fertilizer sales declined 29 percent to $39.1 million from
$54.9 million in the third quarter of 2012. Sales volumes contracted 32
percent to 61,000 tons from 90,000 tons in the 2012 quarter as growers
have delayed purchasing sulfate of potash (SOP) for the fall application
season due to price uncertainty throughout much of the North American
fertilizer market. However, strategies to differentiate the company’s
SOP products from standard potash and to sell product primarily to the
highest value North American markets continued to drive average selling
prices higher. In the third quarter of 2013, the average selling price
increased 5 percent to $646 from $615 in the 2012 period.
Specialty fertilizer segment EBITDA fell to $15.4 million from $18.3
million in the prior-year period due to lower sales volumes and higher
per-unit costs. The higher costs were due in part to the company’s
purchase of potassium chloride in the spot market to boost production of
SOP at its Ogden, Utah, facility when unplanned interruptions reduced
production from pond-based feedstock. These purchases also ensure that
SOP inventory will be properly positioned in key North American markets
for what is expected to be a compressed fall application season. While
supplementing SOP production with potassium chloride does increase
per-unit costs, it is profitable at the current premium that SOP is able
to achieve in the North American market.
|
|
|
Specialty Fertilizer Segment Performance
|
|
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
39.1
|
|
$
|
54.9
|
|
$
|
137.2
|
|
$
|
169.6
|
|
Sales less shipping and handling (product sales)
|
|
$
|
34.9
|
|
$
|
48.9
|
|
$
|
122.2
|
|
$
|
150.0
|
|
Operating earnings
|
|
$
|
9.6
|
|
$
|
13.1
|
|
$
|
39.0
|
|
$
|
47.7
|
|
Operating margin
|
|
|
25%
|
|
|
24%
|
|
|
28%
|
|
|
28%
|
|
Sales volume (in thousands of tons)
|
|
|
61
|
|
|
90
|
|
|
217
|
|
|
277
|
|
Average sales price (per ton)
|
|
$
|
646
|
|
$
|
615
|
|
$
|
631
|
|
$
|
613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
Selling, general and administrative expenses were $22.7 million in the
third quarter, which was 3 percent higher than prior year results.
Interest expense in the quarter totaled $4.4 million compared to $4.2
million in the third quarter of 2013.
OUTLOOK
The company continues to expect operating margins to expand in the
fourth quarter through improved operating rates in both business
segments.
Assuming typical winter weather, the company anticipates salt segment
sales volumes of 4 million tons for the fourth quarter. Average selling
price for all salt products is expected to be approximately 3 percent
lower than 2012 results.
Growers of specialty crops have begun to return to the market for the
fall application season. As a result the company expects to generate
specialty fertilizer sales volumes of approximately 90,000 to 100,000
tons at average selling prices of approximately $625 per ton in the
fourth quarter of 2013.
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 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
1212892. 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 1212892. 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 and its
operating segments 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 overall and operating
segment 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. The 2012 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
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Net earnings
|
|
$
|
15.4
|
|
|
$
|
9.4
|
|
|
$
|
72.4
|
|
|
$
|
58.8
|
|
|
Interest expense
|
|
|
4.4
|
|
|
|
4.2
|
|
|
|
13.2
|
|
|
|
13.7
|
|
|
Income tax expense
|
|
|
3.4
|
|
|
|
0.8
|
|
|
|
22.9
|
|
|
|
14.1
|
|
|
Depreciation, depletion and amortization
|
|
|
18.0
|
|
|
|
15.7
|
|
|
|
53.4
|
|
|
|
47.2
|
|
|
EBITDA
|
|
$
|
41.2
|
|
|
$
|
30.1
|
|
|
$
|
161.9
|
|
|
$
|
133.8
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense(1)
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
(3.2
|
)
|
|
|
4.4
|
|
|
Adjusted EBITDA
|
|
$
|
41.1
|
|
|
$
|
29.8
|
|
|
$
|
158.7
|
|
|
$
|
138.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Net earnings
|
|
$
|
15.4
|
|
|
$
|
9.4
|
|
|
$
|
72.4
|
|
|
$
|
58.8
|
|
|
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
|
|
$
|
15.4
|
|
|
$
|
10.3
|
|
|
$
|
72.4
|
|
|
$
|
70.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $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 (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
|
|
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
Reported GAAP Segment Operating Earnings
|
|
$
|
25.4
|
|
$
|
12.8
|
|
Depreciation, depletion and amortization
|
|
|
11.2
|
|
|
9.4
|
|
Segment EBITDA
|
|
$
|
36.6
|
|
$
|
22.2
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
Estimated losses incurred from tornado, net of
recoveries (1)
|
|
|
−
|
|
|
0.9
|
|
Pro Forma Segment EBITDA
|
|
$
|
36.6
|
|
$
|
23.1
|
|
|
|
|
|
|
|
|
|
(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 $0.9
million for the three months ended September 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
|
|
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
Reported GAAP Segment Operating Earnings
|
|
$
|
9.6
|
|
$
|
13.1
|
|
Depreciation, depletion and amortization
|
|
|
5.8
|
|
|
5.2
|
|
Segment EBITDA
|
|
$
|
15.4
|
|
$
|
18.3
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
(in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
184.7
|
|
|
$
|
181.0
|
|
|
$
|
742.2
|
|
|
$
|
674.8
|
|
|
Shipping and handling cost
|
|
|
44.4
|
|
|
|
40.9
|
|
|
|
200.0
|
|
|
|
177.3
|
|
|
Product cost
|
|
|
94.5
|
|
|
|
103.9
|
|
|
|
363.2
|
|
|
|
340.0
|
|
|
Gross profit
|
|
|
45.8
|
|
|
|
36.2
|
|
|
|
179.0
|
|
|
|
157.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
22.7
|
|
|
|
22.1
|
|
|
|
73.7
|
|
|
|
66.5
|
|
|
Operating earnings
|
|
|
23.1
|
|
|
|
14.1
|
|
|
|
105.3
|
|
|
|
91.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4.4
|
|
|
|
4.2
|
|
|
|
13.2
|
|
|
|
13.7
|
|
|
Other, net
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
(3.2
|
)
|
|
|
4.4
|
|
|
Earnings before income taxes
|
|
|
18.8
|
|
|
|
10.2
|
|
|
|
95.3
|
|
|
|
72.9
|
|
|
Income tax expense
|
|
|
3.4
|
|
|
|
0.8
|
|
|
|
22.9
|
|
|
|
14.1
|
|
|
Net earnings
|
|
$
|
15.4
|
|
|
$
|
9.4
|
|
|
$
|
72.4
|
|
|
$
|
58.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per share
|
|
$
|
0.46
|
|
|
$
|
0.28
|
|
|
$
|
2.15
|
|
|
$
|
1.76
|
|
|
Diluted net earnings per share
|
|
$
|
0.46
|
|
|
$
|
0.28
|
|
|
$
|
2.15
|
|
|
$
|
1.75
|
|
|
Cash dividends per share
|
|
$
|
0.545
|
|
|
$
|
0.495
|
|
|
$
|
1.635
|
|
|
$
|
1.485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (in thousands): (1)
|
|
|
Basic
|
|
|
33,469
|
|
|
|
33,110
|
|
|
|
33,378
|
|
|
|
33,080
|
|
|
Diluted
|
|
|
33,484
|
|
|
|
33,138
|
|
|
|
33,402
|
|
|
|
33,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Excludes participating securities. Participating securities include
options, PSUs and RSUs that receive non-forfeitable dividends. Net
earnings were allocated to 275,000 and 305,000 participating
securities for the three and nine months ended September 30, 2013,
respectively, and 419,000 and 426,000 participating securities for
the three and nine months ended September 30, 2012.
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash equivalents
|
|
$
|
123.9
|
|
$
|
100.1
|
|
Receivables, net
|
|
|
96.9
|
|
|
143.7
|
|
Inventories
|
|
|
236.3
|
|
|
229.7
|
|
Other current assets
|
|
|
32.3
|
|
|
33.4
|
|
Property, plant and equipment, net
|
|
|
670.7
|
|
|
645.2
|
|
Intangible and other noncurrent assets
|
|
|
152.2
|
|
|
148.5
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,312.3
|
|
$
|
1,300.6
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current portion of long-term debt
|
|
$
|
3.9
|
|
$
|
3.9
|
|
Other current liabilities
|
|
|
186.7
|
|
|
195.4
|
|
Long-term debt, net of current portion
|
|
|
475.6
|
|
|
478.4
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
120.8
|
|
|
119.4
|
|
Total stockholders' equity
|
|
|
525.3
|
|
|
503.5
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,312.3
|
|
$
|
1,300.6
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
142.1
|
|
|
$
|
132.2
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(83.1
|
)
|
|
|
(98.9
|
)
|
|
Insurance advances for investment purposes, Goderich tornado
|
|
|
11.9
|
|
|
|
-
|
|
|
Other, net
|
|
|
2.5
|
|
|
|
(1.0
|
)
|
|
Net cash used in investing activities
|
|
|
(68.7
|
)
|
|
|
(99.9
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Principal payments on long-term debt
|
|
|
(2.9
|
)
|
|
|
(386.7
|
)
|
|
Issuance of long-term debt
|
|
|
-
|
|
|
|
387.0
|
|
|
Fees paid to refinance long-term debt
|
|
|
-
|
|
|
|
(1.8
|
)
|
|
Deferred financing costs
|
|
|
-
|
|
|
|
(2.2
|
)
|
|
Dividends paid
|
|
|
(54.9
|
)
|
|
|
(49.7
|
)
|
|
Proceeds received from stock option exercises
|
|
|
10.6
|
|
|
|
1.6
|
|
|
Excess tax benefits from equity compensation awards
|
|
|
0.7
|
|
|
|
0.9
|
|
|
Net cash used in financing activities
|
|
|
(46.5
|
)
|
|
|
(50.9
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(3.1
|
)
|
|
|
4.7
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
23.8
|
|
|
|
(13.9
|
)
|
|
Cash and cash equivalents, beginning of the year
|
|
|
100.1
|
|
|
|
130.3
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
123.9
|
|
|
$
|
116.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
SEGMENT INFORMATION (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
Salt
|
|
Specialty
Fertilizer
|
|
Corporate
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
142.6
|
|
$
|
39.1
|
|
$
|
3.0
|
|
|
$
|
184.7
|
|
Intersegment sales
|
|
|
0.1
|
|
|
1.6
|
|
|
(1.7
|
)
|
|
|
–
|
|
Shipping and handling cost
|
|
|
40.2
|
|
|
4.2
|
|
|
–
|
|
|
|
44.4
|
|
Operating earnings (loss)
|
|
|
25.4
|
|
|
9.6
|
|
|
(11.9
|
)
|
|
|
23.1
|
|
Depreciation, depletion and amortization
|
|
|
11.2
|
|
|
5.8
|
|
|
1.0
|
|
|
|
18.0
|
|
Total assets (as of end of period)
|
|
|
842.0
|
|
|
393.0
|
|
|
77.3
|
|
|
|
1,312.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2012
|
|
Salt
|
|
Specialty
Fertilizer
|
|
Corporate
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2013
|
|
Salt
|
|
Specialty
Fertilizer
|
|
Corporate
and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
597.4
|
|
$
|
137.2
|
|
$
|
7.6
|
|
|
$
|
742.2
|
|
Intersegment sales
|
|
|
0.6
|
|
|
4.5
|
|
|
(5.1
|
)
|
|
|
–
|
|
Shipping and handling cost
|
|
|
185.0
|
|
|
15.0
|
|
|
–
|
|
|
|
200.0
|
|
Operating earnings (loss)
|
|
|
106.5
|
|
|
39.0
|
|
|
(40.2
|
)
|
|
|
105.3
|
|
Depreciation, depletion and amortization
|
|
|
32.7
|
|
|
17.6
|
|
|
3.1
|
|
|
|
53.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2012
|
|
Salt
|
|
Specialty
Fertilizer
|
|
Corporate
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
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