Company Announces Eleventh Consecutive Dividend Increase
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Feb. 10, 2014--
Compass Minerals (NYSE: CMP) reports the following results of its
fourth-quarter and full-year 2013 operations:
-
Net earnings increased 94 percent to $58.4 million, or $1.73 per
diluted share, from $30.1 million, or $0.90 per diluted share, in the
fourth quarter of 2012. Full-year net earnings were up 47 percent to
$130.8 million, or $3.88 per diluted share, compared to $88.9 million,
or $2.65 per diluted share, in 2012.
-
Net earnings in the fourth quarter of 2013 include a net benefit from
special items of $2.9 million, while net earnings in 2012 included
unfavorable special items totaling $4.2 million. Excluding these
special items from all periods, net earnings for the 2013 quarter were
$55.5 million, or $1.65 per diluted share, compared to $34.3 million,
or $1.02 per diluted share, in the 2012 period. For the full year,
2013 net earnings excluding special items were $127.9 million, or
$3.80 per diluted share, and $104.4 million, or $3.11 per diluted
share, in 2012.
-
Fourth quarter sales increased 45 percent year-over-year to $387.4
million as severe winter weather drove a 56 percent improvement in
salt segment sales, while specialty fertilizer sales rose 8 percent.
-
Operating income increased 90 percent to $80.3 million in the quarter
and rose 39 percent to $185.6 million for the full year as increased
salt sales volumes and improved salt segment per-unit operating costs
more than offset the impact of higher specialty fertilizer per-unit
costs, net of special items.
-
Adjusted EBITDA* totaled $99.9 million for the quarter compared to
$59.5 million in the 2012 period and was $258.6 million for the full
year compared to $197.7 million in 2012.
-
Cash flow from operations rose to $238.3 million from $151.7 million
in 2012.
-
Compass Minerals’ board of directors has increased the company’s
quarterly dividend by 10 percent to $0.60 per share effective with its
dividend payable March 14, 2014, to shareholders of record as of the
close of business on February 28, 2014.
*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.
“We ended 2013 with strong demand in both of our segments, which
demonstrated the solid fundamentals that underpin our salt and specialty
fertilizer businesses. We are entering 2014 with momentum as the strong
winter we’ve experienced thus far in our core service territories should
establish a more favorable supply-demand balance for the salt industry
after two consecutive mild winters. And, our value-driven marketing
strategy continues to support robust profitability for our specialty
fertilizer products,” said Fran Malecha, Compass Minerals’ president and
CEO. “The decision by the board of directors to increase our dividend
another 10 percent further demonstrates our commitment to return value
directly to our shareholders.”
|
|
|
Financial Results
|
|
(in millions except per-share data)
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
387.4
|
|
|
$
|
267.1
|
|
|
$
|
1,129.6
|
|
|
$
|
941.9
|
|
|
Sales less shipping and handling (product sales)
|
|
|
285.7
|
|
|
|
206.3
|
|
|
|
827.9
|
|
|
|
703.8
|
|
|
Operating earnings
|
|
|
80.3
|
|
|
|
42.2
|
|
|
|
185.6
|
|
|
|
133.2
|
|
|
Operating margin
|
|
|
21
|
%
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
14
|
%
|
|
Net earnings
|
|
|
58.4
|
|
|
|
30.1
|
|
|
|
130.8
|
|
|
|
88.9
|
|
|
Net earnings, excluding special items*
|
|
|
55.5
|
|
|
|
34.3
|
|
|
|
127.9
|
|
|
|
104.4
|
|
|
Diluted earnings per share
|
|
|
1.73
|
|
|
|
0.90
|
|
|
|
3.88
|
|
|
|
2.65
|
|
|
Diluted earnings per share, excluding special items*
|
|
|
1.65
|
|
|
|
1.02
|
|
|
|
3.80
|
|
|
|
3.11
|
|
|
EBITDA*
|
|
|
103.1
|
|
|
|
60.2
|
|
|
|
265.0
|
|
|
|
194.0
|
|
|
Adjusted EBITDA*
|
|
|
99.9
|
|
|
|
59.5
|
|
|
|
258.6
|
|
|
|
197.7
|
|
*These are non-GAAP financial measures. Reconciliations to GAAP
measures of performance are provided in tables following this release.
SALT SEGMENT
Salt segment sales rose to $323.1 million from last year’s
weather-depressed result of $206.7 million. Strong winter weather in
most of the company’s key service territories produced a 79 percent
increase in highway deicing sales volumes. The average selling price in
the highway deicing business was essentially flat as the impact of lower
highway deicing contract pricing was mostly offset by an improved
product mix. Increased demand for packaged deicing products drove a 26
percent increase in consumer and industrial sales volumes while the
average selling price was similar to prior-year results.
Salt segment EBITDA grew to $87.2 million in the fourth quarter from
$58.1 million in 2012. The 2013 results include $4.7 million of
estimated costs from a ruling against the company related to a 2010
labor matter. The 2012 quarter included $3.1 million of estimated losses
resulting from the 2011 Goderich, Ontario, tornado. Excluding these
special items, 2013 segment EBITDA was $91.9 million compared to $61.2
million in the 2012 quarter.
|
|
|
Salt Segment Performance
|
|
(in millions except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
323.1
|
|
|
$
|
206.7
|
|
|
$
|
920.5
|
|
|
$
|
703.4
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
227.4
|
|
|
$
|
152.5
|
|
|
$
|
639.8
|
|
|
$
|
491.5
|
|
|
Operating earnings
|
|
$
|
74.8
|
|
|
$
|
47.9
|
|
|
$
|
181.3
|
|
|
$
|
126.0
|
|
|
Operating margin
|
|
|
23
|
%
|
|
|
23
|
%
|
|
|
20
|
%
|
|
|
18
|
%
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
4,037
|
|
|
|
2,255
|
|
|
|
10,944
|
|
|
|
7,530
|
|
|
Consumer and industrial
|
|
|
740
|
|
|
|
585
|
|
|
|
2,321
|
|
|
|
2,095
|
|
|
Total salt
|
|
|
4,777
|
|
|
|
2,840
|
|
|
|
13,265
|
|
|
|
9,625
|
|
|
Average sales price (per ton):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
$
|
52.20
|
|
|
$
|
52.56
|
|
|
$
|
53.19
|
|
|
$
|
53.11
|
|
|
Consumer and industrial
|
|
$
|
151.86
|
|
|
$
|
150.95
|
|
|
$
|
145.78
|
|
|
$
|
144.87
|
|
|
Total salt
|
|
$
|
67.63
|
|
|
$
|
72.81
|
|
|
$
|
69.39
|
|
|
$
|
73.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Winter Weather Effect
The company’s core North American service regions recorded 81 snow
events in the fourth quarter, which was more than twice the number
experienced in the mild December 2012 quarter. The company estimates
that variances from average winter weather increased the company’s
fourth-quarter salt sales by $45 million to $50 million and its salt
operating earnings by $10 million to $15 million.
Above-average winter weather increased full-year 2013 salt sales by an
estimated $65 million to $75 million and salt operating earnings by an
estimated $18 million to $22 million.
|
|
|
Estimated Effect of Weather on Salt Segment Performance
|
|
(in millions)
|
|
|
|
Three months ended
December 31,
|
|
|
Calendar year,*
|
|
Favorable (unfavorable) to
average weather:
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$45 to $50
|
|
|
($60) to ($70)
|
|
|
$65 to $75
|
|
|
($145) to ($155)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
|
$10 to $15
|
|
|
($15) to ($20)
|
|
|
$18 to $22
|
|
|
($45) to ($50)
|
* The three months ended March 31, plus the three months ended
December 31.
SPECIALTY FERTILIZER SEGMENT
Specialty fertilizer sales increased to $61.4 million from $56.6 million
in the 2012 quarter driven primarily by a 9 percent year-over-year
increase in sales volumes. The average selling price for specialty
fertilizer remained steady with the prior-year quarter at $626 per ton.
Sequentially, the average selling price declined $20 per ton due to a
less favorable regional sales mix than in the third quarter of 2013.
Segment EBITDA was $25.9 million compared to $16.5 million in the 2012
quarter. The current-quarter results include a $9.0 million benefit from
settling insurance claims related to brine loss at the company’s solar
pond operations in 2010. Excluding that benefit, current-quarter EBITDA
was $16.9 million as the impact of higher sales volumes were mostly
offset by higher per-unit costs.
|
|
|
Specialty Fertilizer Segment Performance
|
|
(in millions except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Sales
|
|
$
|
61.4
|
|
|
$
|
56.6
|
|
|
$
|
198.6
|
|
|
$
|
226.2
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
55.4
|
|
|
$
|
50.0
|
|
|
$
|
177.6
|
|
|
$
|
200.0
|
|
|
Operating earnings
|
|
$
|
19.7
|
|
|
$
|
10.7
|
|
|
$
|
58.7
|
|
|
$
|
58.4
|
|
|
Operating margin
|
|
|
32
|
%
|
|
|
19
|
%
|
|
|
30
|
%
|
|
|
26
|
%
|
|
Sales volume (in thousands of tons)
|
|
|
98
|
|
|
|
90
|
|
|
|
315
|
|
|
|
367
|
|
|
Average sales price (per ton)
|
|
$
|
626
|
|
|
$
|
626
|
|
|
$
|
630
|
|
|
$
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
Other income increased to $3.2 million from $0.7 million primarily due
to increased foreign exchange gains in the 2013 quarter.
Cash flow from operations for the year ending December 31, 2013, totaled
$238.3 million. The $86.6 million increase from prior-year results was
driven principally by higher earnings and a reduction of salt inventory.
OUTLOOK
Winter weather events have been tracking above average though January,
and the company currently expects its first-quarter highway deicing salt
sales volumes to be approximately 4.4 million tons. The average selling
price for highway deicing products is expected to be approximately 5
percent lower than in the 2013 quarter primarily due to lower highway
deicing contract prices. Winter weather is also expected to improve
first-quarter demand for packaged deicing products and to lift
first-quarter consumer and industrial sales volumes approximately 5
percent above last year’s result of 535,000 tons.
The company expects steady demand for specialty fertilizer to continue
in 2014, yielding sales volumes of approximately 180,000 tons in the
first six months and between 350,000 tons and 375,000 tons for the full
year. The company expects an average selling price of approximately $620
per ton and an operating margin of approximately 27 percent for the
first half of 2014.
Conference Call
Compass Minerals will discuss its results on a conference call tomorrow
morning, Tuesday, February 11, at 10:00 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
5831125. 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. The replay can also be accessed by phone for
seven days at (888) 203-1112, conference ID 5831125. Outside of the U.S.
and Canada, callers may dial (719) 457-0820.
An updated summary of the company’s performance is included in a
presentation available on the company’s website at www.compassminerals.com/presentation.
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.
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. The 2013 special items include
estimated costs from a ruling against the company regarding a 2010 labor
matter as well as proceeds from the settlement of an insurance claim
related to loss of brine at the company’s solar pond operations in
Ogden, Utah, also in 2010. 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
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Net earnings
|
|
$
|
58.4
|
|
|
$
|
30.1
|
|
|
$
|
130.8
|
|
|
$
|
88.9
|
|
|
Income tax expense
|
|
|
20.4
|
|
|
|
8.3
|
|
|
|
43.3
|
|
|
|
22.4
|
|
|
Interest expense
|
|
|
4.7
|
|
|
|
4.5
|
|
|
|
17.9
|
|
|
|
18.2
|
|
|
Depreciation, depletion and amortization
|
|
|
19.6
|
|
|
|
17.3
|
|
|
|
73.0
|
|
|
|
64.5
|
|
|
EBITDA
|
|
$
|
103.1
|
|
|
$
|
60.2
|
|
|
$
|
265.0
|
|
|
$
|
194.0
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Other (income)/expense(1)
|
|
|
(3.2
|
)
|
|
|
(0.7
|
)
|
|
|
(6.4
|
)
|
|
|
3.7
|
|
|
Adjusted EBITDA
|
|
$
|
99.9
|
|
|
$
|
59.5
|
|
|
$
|
258.6
|
|
|
$
|
197.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Primarily includes interest income and foreign exchange gains and
losses. The 12 months ended December 31, 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
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Net earnings
|
|
$
|
58.4
|
|
|
$
|
30.1
|
|
|
$
|
130.8
|
|
|
$
|
88.9
|
|
|
Estimated losses incurred from tornado, net of taxes and recoveries(1)
|
|
|
−
|
|
|
|
2.2
|
|
|
|
−
|
|
|
|
14.8
|
|
|
Costs to refinance debt, net of taxes(2)
|
|
|
−
|
|
|
|
−
|
|
|
|
−
|
|
|
|
1.7
|
|
|
Tax benefit from income tax audit(3)
|
|
|
−
|
|
|
|
−
|
|
|
|
−
|
|
|
|
(3.0
|
)
|
|
CEO transition costs, net of taxes (4)
|
|
|
−
|
|
|
|
2.0
|
|
|
|
−
|
|
|
|
2.0
|
|
|
Settlement of insurance claim, net of taxes (5)
|
|
|
(5.7
|
)
|
|
|
−
|
|
|
|
(5.7
|
)
|
|
|
−
|
|
|
Estimated costs of legal ruling, net of taxes(6)
|
|
|
2.8
|
|
|
|
−
|
|
|
|
2.8
|
|
|
|
−
|
|
|
Net earnings, excluding special items
|
|
$
|
55.5
|
|
|
$
|
34.3
|
|
|
$
|
127.9
|
|
|
$
|
104.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. Estimated pre-tax losses of $3.1
million and $21.4 million ($2.2 million and $14.8 million after
applicable income taxes) for the three and 12 months ended December
31, 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 (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, net of taxes).
|
|
(3)
|
|
In the second quarter of 2012, the company settled a tax audit which
resulted in a $3.0 million income tax benefit.
|
|
(4)
|
|
In the fourth quarter of 2012, the company recorded costs of $3.3
million ($2.0 million, net of taxes) associated with the retirement
of its CEO.
|
|
(5)
|
|
In the fourth quarter of 2013, the company received $9.0 million
($5.7 million, net of taxes) from an insurance settlement resulting
from a 2010 mineral-brine loss at the company’s Ogden, Utah,
solar-pond facility.
|
|
(6)
|
|
In the fourth quarter of 2013, the company recorded a reserve of
$4.7 million ($2.8 million, net of taxes) related to a ruling
against the company from a 2010 labor matter.
|
|
|
|
|
|
|
|
Reconciliation for Salt Segment EBITDA and Pro Forma EBITDA
(unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
Reported GAAP Segment Operating Earnings
|
|
$
|
74.8
|
|
$
|
47.9
|
|
Depreciation, depletion and amortization
|
|
|
12.4
|
|
|
10.2
|
|
Segment EBITDA
|
|
$
|
87.2
|
|
$
|
58.1
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
Estimated costs of legal ruling (1)
|
|
|
4.7
|
|
|
−
|
|
Estimated losses incurred from tornado, net of recoveries (2)
|
|
|
−
|
|
|
3.1
|
|
Pro Forma Segment EBITDA
|
|
$
|
91.9
|
|
$
|
61.2
|
|
|
|
|
|
|
|
(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. Estimated pre-tax losses of $3.1
million for the three ended December 31, 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 (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 the fourth quarter of 2013, the company recorded a reserve of
$4.7 million related to a ruling against the company from a 2010
labor matter.
|
|
|
|
|
|
|
|
Reconciliation for Specialty Fertilizer Segment EBITDA and Pro
Forma EBITDA (unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
Reported GAAP Segment Operating Earnings
|
|
$
|
19.7
|
|
|
$
|
10.7
|
|
|
Depreciation, depletion and amortization
|
|
|
6.2
|
|
|
|
5.8
|
|
|
Segment EBITDA
|
|
$
|
25.9
|
|
|
$
|
16.5
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
Settlement of insurance claim (1)
|
|
|
(9.0
|
)
|
|
|
−
|
|
|
Pro Forma Segment EBITDA
|
|
$
|
16.9
|
|
|
$
|
16.5
|
|
|
|
|
|
|
|
|
|
(1)
|
|
In the fourth quarter of 2013, the company received $9.0 million
from an insurance settlement resulting from a 2010 mineral-brine
loss at the company’s Ogden, Utah, solar-pond facility.
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
(in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
387.4
|
|
|
$
|
267.1
|
|
|
$
|
1,129.6
|
|
|
$
|
941.9
|
|
|
Shipping and handling cost
|
|
|
101.7
|
|
|
|
60.8
|
|
|
|
301.7
|
|
|
|
238.1
|
|
|
Product cost
|
|
|
178.7
|
|
|
|
136.7
|
|
|
|
541.9
|
|
|
|
476.7
|
|
|
Gross profit
|
|
|
107.0
|
|
|
|
69.6
|
|
|
|
286.0
|
|
|
|
227.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
26.7
|
|
|
|
27.4
|
|
|
|
100.4
|
|
|
|
93.9
|
|
|
Operating earnings
|
|
|
80.3
|
|
|
|
42.2
|
|
|
|
185.6
|
|
|
|
133.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4.7
|
|
|
|
4.5
|
|
|
|
17.9
|
|
|
|
18.2
|
|
|
Other, net
|
|
|
(3.2
|
)
|
|
|
(0.7
|
)
|
|
|
(6.4
|
)
|
|
|
3.7
|
|
|
Earnings before income taxes
|
|
|
78.8
|
|
|
|
38.4
|
|
|
|
174.1
|
|
|
|
111.3
|
|
|
Income tax expense
|
|
|
20.4
|
|
|
|
8.3
|
|
|
|
43.3
|
|
|
|
22.4
|
|
|
Net earnings
|
|
$
|
58.4
|
|
|
$
|
30.1
|
|
|
$
|
130.8
|
|
|
$
|
88.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per common share
|
|
$
|
1.73
|
|
|
$
|
0.90
|
|
|
$
|
3.89
|
|
|
$
|
2.65
|
|
|
Diluted net earnings per common share
|
|
$
|
1.73
|
|
|
$
|
0.90
|
|
|
$
|
3.88
|
|
|
$
|
2.65
|
|
|
Cash dividends per share
|
|
$
|
0.545
|
|
|
$
|
0.495
|
|
|
$
|
2.18
|
|
|
$
|
1.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (in thousands): (1)
|
|
|
Basic
|
|
|
33,477
|
|
|
|
33,195
|
|
|
|
33,403
|
|
|
|
33,109
|
|
|
Diluted
|
|
|
33,487
|
|
|
|
33,225
|
|
|
|
33,420
|
|
|
|
33,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The company calculates earnings per share using the two-class method
to account for its stock awards that receive non-forfeitable
dividends. As a result, the above basic and diluted weighted shares
outstanding do not include 227,000 and 250,000 participating
securities in the three-month and 12-month periods ending December
31, 2013, respectively, and 358,000 and 409,000 participating
securities in the three-month and 12-month periods ending December
31, 2012, respectively.
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
159.6
|
|
$
|
100.1
|
|
Receivables, net
|
|
|
211.9
|
|
|
143.7
|
|
Inventories
|
|
|
180.7
|
|
|
229.7
|
|
Other current assets
|
|
|
25.2
|
|
|
33.4
|
|
Property, plant and equipment, net
|
|
|
677.3
|
|
|
645.2
|
|
Intangible and other noncurrent assets
|
|
|
150.1
|
|
|
148.5
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,404.8
|
|
$
|
1,300.6
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current portion of long-term debt
|
|
$
|
3.9
|
|
$
|
3.9
|
|
Other current liabilities
|
|
|
253.7
|
|
|
195.4
|
|
Long-term debt, net of current portion
|
|
|
474.7
|
|
|
478.4
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
118.3
|
|
|
119.4
|
|
Total stockholders' equity
|
|
|
554.2
|
|
|
503.5
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,404.8
|
|
$
|
1,300.6
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
238.3
|
|
|
$
|
151.7
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(122.7
|
)
|
|
|
(130.9
|
)
|
|
Insurance advances for investment purposes, Goderich tornado
|
|
|
14.2
|
|
|
|
8.7
|
|
|
Other, net
|
|
|
2.4
|
|
|
|
(1.4
|
)
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(106.1
|
)
|
|
|
(123.6
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from the issuance of long-term debt
|
|
|
−
|
|
|
|
387.0
|
|
|
Principal payments on long-term debt
|
|
|
(3.9
|
)
|
|
|
(387.7
|
)
|
|
Fees and premiums paid to redeem and refinance debt
|
|
|
−
|
|
|
|
(1.8
|
)
|
|
Deferred financing costs
|
|
|
(0.6
|
)
|
|
|
(2.2
|
)
|
|
Dividends paid
|
|
|
(73.1
|
)
|
|
|
(66.3
|
)
|
|
Proceeds received from stock option exercises
|
|
|
10.6
|
|
|
|
7.4
|
|
|
Excess tax benefits from equity compensation awards
|
|
|
0.6
|
|
|
|
1.7
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(66.4
|
)
|
|
|
(61.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(6.3
|
)
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
59.5
|
|
|
|
(30.2
|
)
|
|
Cash and cash equivalents, beginning of the year
|
|
|
100.1
|
|
|
|
130.3
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
159.6
|
|
|
$
|
100.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
SEGMENT INFORMATION (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
|
Corporate
|
|
|
|
|
Three Months Ended December 31, 2013
|
|
|
Salt(a)
|
|
|
Fertilizer(b)
|
|
|
and Other(c,d)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
323.1
|
|
|
$
|
61.4
|
|
|
$
|
2.9
|
|
|
|
$
|
387.4
|
|
Intersegment sales
|
|
|
|
0.3
|
|
|
|
2.7
|
|
|
|
(3.0
|
)
|
|
|
|
-
|
|
Shipping and handling cost
|
|
|
|
95.7
|
|
|
|
6.0
|
|
|
|
-
|
|
|
|
|
101.7
|
|
Operating earnings (loss)
|
|
|
|
74.8
|
|
|
|
19.7
|
|
|
|
(14.2
|
)
|
|
|
|
80.3
|
|
Depreciation, depletion and amortization
|
|
|
|
12.4
|
|
|
|
6.2
|
|
|
|
1.0
|
|
|
|
|
19.6
|
|
Total assets
|
|
|
|
942.2
|
|
|
|
386.8
|
|
|
|
75.8
|
|
|
|
|
1,404.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
|
Corporate
|
|
|
|
|
Three Months Ended December 31, 2012
|
|
|
Salt
|
|
|
Fertilizer
|
|
|
and Other(c)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
206.7
|
|
|
$
|
56.6
|
|
|
$
|
3.8
|
|
|
|
$
|
267.1
|
|
Intersegment sales
|
|
|
|
0.2
|
|
|
|
2.6
|
|
|
|
(2.8
|
)
|
|
|
|
-
|
|
Shipping and handling cost
|
|
|
|
54.2
|
|
|
|
6.6
|
|
|
|
-
|
|
|
|
|
60.8
|
|
Operating earnings (loss)
|
|
|
|
47.9
|
|
|
|
10.7
|
|
|
|
(16.4
|
)
|
|
|
|
42.2
|
|
Depreciation, depletion and amortization
|
|
|
|
10.2
|
|
|
|
5.8
|
|
|
|
1.3
|
|
|
|
|
17.3
|
|
Total assets
|
|
|
|
809.3
|
|
|
|
412.3
|
|
|
|
79.0
|
|
|
|
|
1,300.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
|
Corporate
|
|
|
|
|
Twelve Months Ended December 31, 2013
|
|
|
Salt(a)
|
|
|
Fertilizer(b)
|
|
|
and Other(c)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
920.5
|
|
|
$
|
198.6
|
|
|
$
|
10.5
|
|
|
|
$
|
1,129.6
|
|
Intersegment sales
|
|
|
|
0.9
|
|
|
|
7.2
|
|
|
|
(8.1
|
)
|
|
|
|
-
|
|
Shipping and handling cost
|
|
|
|
280.7
|
|
|
|
21.0
|
|
|
|
-
|
|
|
|
|
301.7
|
|
Operating earnings (loss)
|
|
|
|
181.3
|
|
|
|
58.7
|
|
|
|
(54.4
|
)
|
|
|
|
185.6
|
|
Depreciation, depletion and amortization
|
|
|
|
45.1
|
|
|
|
23.8
|
|
|
|
4.1
|
|
|
|
|
73.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
|
Corporate
|
|
|
|
|
Twelve Months Ended December 31, 2012
|
|
|
Salt
|
|
|
Fertilizer
|
|
|
and Other(c,d)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
703.4
|
|
|
$
|
226.2
|
|
|
$
|
12.3
|
|
|
|
$
|
941.9
|
|
Intersegment sales
|
|
|
|
0.8
|
|
|
|
6.8
|
|
|
|
(7.6
|
)
|
|
|
|
-
|
|
Shipping and handling cost
|
|
|
|
211.9
|
|
|
|
26.2
|
|
|
|
-
|
|
|
|
|
238.1
|
|
Operating earnings (loss)
|
|
|
|
126.0
|
|
|
|
58.4
|
|
|
|
(51.2
|
)
|
|
|
|
133.2
|
|
Depreciation, depletion and amortization
|
|
|
|
38.9
|
|
|
|
21.4
|
|
|
|
4.2
|
|
|
|
|
64.5
|
|
|
|
a)
|
|
In the fourth quarter of 2013, the company recorded a reserve of
$4.7 million ($2.8 million, net of taxes) related to a ruling
against the company from a 2010 labor issue.
|
|
b)
|
|
In the fourth quarter of 2013, the company received $9.0 million
($5.7 million, net of taxes) from an insurance settlement resulting
from a 2010 mineral-brine loss at the company’s Ogden, Utah,
solar-pond facility.
|
|
c)
|
|
“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.
|
|
d)
|
|
In the fourth quarter of 2012, the company recorded costs of $3.3
million ($2.0 million, net of taxes) associated with the retirement
of its CEO.
|
Source: Compass Minerals
Compass Minerals
Peggy Landon, 913-344-9315
Director of
Corporate Communications
And Investor Relations
or
Theresa
Womble, 913-344-9362
Manager of Investor Relations