Healthy Plant Nutrition Demand Continues; Salt Business Poised for
Margin Expansion
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Jul. 28, 2014--
Compass Minerals (NYSE:CMP) reports the following results of its
second-quarter 2014 operations:
-
Sales increased to $186.6 million from $173.8 million in the second
quarter of 2013, as a 49 percent increase in sales from the recently
expanded and renamed plant nutrition segment more than offset a 7
percent decline in salt segment sales.
-
Operating earnings were $13.4 million compared to $14.7 million in the
prior-year quarter, as increased earnings from the plant nutrition
segment were offset by lower salt segment earnings.
-
Adjusted EBITDA* totaled $32.2 million compared to $32.8 million in
the prior year.
-
Costs related to early debt redemption and an increase in the
company’s expected full-year tax rate resulted in a net loss of $0.7
million, or $0.02 per diluted share. Excluding the debt redemption
costs, net earnings were $4.4 million, or $0.13 per diluted share. In
the second quarter of 2013, net earnings were $10.6 million, or $0.32
per diluted share.
-
The North American highway deicing bidding for the 2014-2015 winter
season is approximately three-fourths complete. To date, average
awarded prices have increased more than 20 percent from last year’s
bid awards.
*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.
“Strength in demand for our premium plant nutrition products continued
throughout the second quarter and pushed Compass Minerals’ total
revenues higher, despite seasonal weakness in our salt segment,” said
Fran Malecha, Compass Minerals president and CEO. “Attractive market
conditions for both our salt business and our expanded plant nutrition
business support our expectations of margin expansion and increased
earnings in the second half of the year. In addition, we expect that our
strategies targeting improvement and growth will build on this positive
momentum to create even greater shareholder value.”
|
|
|
Compass Minerals Financial Results
|
|
(in millions, except for earnings per share)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Sales
|
|
$
|
186.6
|
|
|
$
|
173.8
|
|
|
$
|
608.6
|
|
|
$
|
557.5
|
|
|
Sales less shipping and handling (product sales)
|
|
|
141.8
|
|
|
|
133.5
|
|
|
|
433.1
|
|
|
|
401.9
|
|
|
Operating earnings
|
|
|
13.4
|
|
|
|
14.7
|
|
|
|
80.4
|
|
|
|
82.2
|
|
|
Operating margin
|
|
|
7.2
|
%
|
|
|
8.5
|
%
|
|
|
13.2
|
%
|
|
|
14.7
|
%
|
|
Net earnings (loss)
|
|
|
(0.7
|
)
|
|
|
10.6
|
|
|
|
49.5
|
|
|
|
57.0
|
|
|
Net earnings, excluding special items*
|
|
|
4.4
|
|
|
|
10.6
|
|
|
|
54.6
|
|
|
|
57.0
|
|
|
Diluted earnings per share (loss)
|
|
|
(0.02
|
)
|
|
|
0.32
|
|
|
|
1.47
|
|
|
|
1.69
|
|
|
Diluted per-share earnings, excluding special items*
|
|
|
0.13
|
|
|
|
0.32
|
|
|
|
1.62
|
|
|
|
1.69
|
|
|
EBITDA*
|
|
|
25.1
|
|
|
|
35.5
|
|
|
|
113.6
|
|
|
|
120.7
|
|
|
Adjusted EBITDA*
|
|
|
32.2
|
|
|
|
32.8
|
|
|
|
117.6
|
|
|
|
117.6
|
|
*These are non-GAAP financial measures. Reconciliations to GAAP
measures of performance are provided in tables at the end of this
release.
SALT SEGMENT
Total salt sales declined to $118.7 million from $127.3 million in the
second quarter of 2013. Highway deicing sales volumes dropped 14 percent
from prior-year results, which were elevated in the 2013 period by
strong summer restocking of deicing salt in the U.K. following a severe
winter in that region. Average selling prices for highway deicing salt
were 6 percent lower primarily due to an increase in the proportion of
rock salt to chemical customers this quarter compared to last year and
the impact of lower prices from last year’s bid season. Consumer and
industrial sales volumes increased 11 percent, while changes in product
sales mix pushed average selling prices down 7 percent.
Salt segment EBITDA in the second quarter declined $9.3 million from the
prior year to $17.5 million, due to the margin effects from fewer total
sales tons. A less favorable sales mix and increased per-unit shipping
and handling costs compressed the EBITDA margin percentage to 14.7
percent from 21.1 percent in the second quarter of 2013.
Highway Deicing Bid Season Update
The bidding process in North America for 2014-2015 highway deicing
contracts is approximately 75 percent complete. Compass Minerals’
average awarded prices to date have increased more than 20 percent from
the 2013 bid season. Thus far in the bid season, the volumes requested
by customers have rebounded above historic levels indicating that excess
customer inventories have been depleted.
|
|
|
Salt Segment Performance
|
|
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Sales
|
|
$
|
118.7
|
|
|
$
|
127.3
|
|
|
$
|
471.9
|
|
|
$
|
454.8
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
81.7
|
|
|
$
|
91.6
|
|
|
$
|
311.8
|
|
|
$
|
310.0
|
|
|
Operating earnings
|
|
$
|
6.8
|
|
|
$
|
15.7
|
|
|
$
|
70.3
|
|
|
$
|
81.1
|
|
|
Operating margin
|
|
|
5.7
|
%
|
|
|
12.3
|
%
|
|
|
14.9
|
%
|
|
|
17.8
|
%
|
|
EBITDA
|
|
$
|
17.5
|
|
|
$
|
26.8
|
|
|
$
|
92.4
|
|
|
$
|
102.6
|
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
990
|
|
|
|
1,157
|
|
|
|
5,732
|
|
|
|
5,515
|
|
|
Consumer and industrial
|
|
|
557
|
|
|
|
502
|
|
|
|
1,211
|
|
|
|
1,037
|
|
|
Total salt
|
|
|
1,547
|
|
|
|
1,659
|
|
|
|
6,943
|
|
|
|
6,552
|
|
|
Average sales price (per ton):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
$
|
44.93
|
|
|
$
|
47.59
|
|
|
$
|
52.23
|
|
|
$
|
55.27
|
|
|
Consumer and industrial
|
|
$
|
133.27
|
|
|
$
|
143.96
|
|
|
$
|
142.46
|
|
|
$
|
144.69
|
|
|
Total salt
|
|
$
|
76.73
|
|
|
$
|
76.77
|
|
|
$
|
67.97
|
|
|
$
|
69.42
|
|
|
|
|
|
|
|
|
|
|
|
PLANT NUTRITION SEGMENT
Plant nutrition segment sales increased $21.5 million from $44.1 million
in the second quarter of 2013. Strong demand for sulfate of potash and
the addition of Wolf Trax® micronutrient sales lifted sales
volumes 42 percent above 2013 results. The average selling price for the
segment’s total portfolio of products was $670 per ton, compared to $638
in the second quarter of 2013. This 5 percent price improvement reflects
the inclusion of Wolf Trax product sales, which are sold at higher
prices than sulfate of potash. The average selling price for
sulfate-of-potash-only products was essentially unchanged from
prior-year results.
Plant nutrition segment EBITDA grew 25 percent year-over-year to $24.8
million as the benefits of higher sales volumes were partially offset by
increased shipping and handling costs and higher average per-unit costs.
The increase in unit costs stems from the inclusion of Wolf Trax
products and the company’s strategic decision to continue converting
purchased potassium chloride to augment sulfate of potash production at
the company’s Ogden, Utah facility. Although this unique production
process is at a higher unit cost than solar-pond-only production, the
current economics of the process are attractive and have allowed the
company to serve increased demand.
|
|
|
Plant Nutrition Segment Performance
|
|
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Sales
|
|
$
|
65.6
|
|
|
$
|
44.1
|
|
|
$
|
131.7
|
|
|
$
|
98.1
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
57.8
|
|
|
$
|
39.5
|
|
|
$
|
116.3
|
|
|
$
|
87.3
|
|
|
Operating earnings
|
|
$
|
17.9
|
|
|
$
|
14.0
|
|
|
$
|
34.2
|
|
|
$
|
29.4
|
|
|
Operating margin
|
|
|
27.3
|
%
|
|
|
31.8
|
%
|
|
|
26.0
|
%
|
|
|
30.0
|
%
|
|
EBITDA
|
|
$
|
24.8
|
|
|
$
|
19.9
|
|
|
$
|
47.1
|
|
|
$
|
41.2
|
|
|
Sales volume (in thousands of tons)
|
|
|
98
|
|
|
|
69
|
|
|
|
205
|
|
|
|
157
|
|
|
Average sales price (per ton)
|
|
$
|
670
|
|
|
$
|
638
|
|
|
$
|
641
|
|
|
$
|
625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
The company reported other expenses of $7.1 million compared to other
income of $2.7 million in the second quarter of 2013. Other expenses
included $6.9 million of costs resulting from the early redemption of
debt in 2014, while the 2013 quarter included $2.5 million in foreign
exchange gains. During the 2014 quarter, the company closed a debt
offering of $250 million in 4.875 percent senior notes due in 2024 and
used a portion of the proceeds to redeem the company’s $100 million 8
percent senior notes due in 2019.
Selling, general and administrative expenses declined $3.1 million in
the second quarter of 2014 from $27.2 million in 2013. The prior year
results included $1.7 million in charges related to corporate
restructuring.
In the second quarter, the company made refinements in its expected
full-year 2014 effective income tax rate, which resulted in higher
income tax expense.
Cash flow from operations for the six months ended June 30, 2014 was
$161.8 million, down $14.0 million from the same period last year.
OUTLOOK
The company expects, with average winter weather, that total salt sales
volumes for the second half of 2014 will be in the range of 6.0 to 6.5
million tons and that the average selling price will increase
approximately 12% from 2013 results. Improved pricing combined with
better asset utilization is expected to boost the salt segment’s
operating margin percent. Some of this benefit will be muted by the
purchase of imported salt. These purchases will increase per-unit salt
costs, but also ensure the company can meet additional customer demand.
The company currently anticipates a salt segment operating margin
between 24 percent and 26 percent for the second half of 2014 compared
to 21.5 percent in 2013. This outlook excludes a gain that the company
expects to report in the third quarter from an insurance claim related
to the 2011 tornado that struck the company’s facilities in Goderich,
Ontario. The company estimates that the recorded gain will exceed $80
million.
The company expects plant nutrition product sales will reach 175,000
tons to 185,000 tons in the second half of 2014, and the blended average
selling price for these products is expected to be between $725 and $750
per ton. For the second half of the year, the company expects to
generate an operating margin between 28 percent and 30 percent for the
segment, similar to prior-year’s result of 29 percent, which included
the one-time benefit of $9.0 million from an insurance settlement.
A summary of the company’s performance and 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 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
1558028. 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 1558028. Outside of the U.S. and Canada, callers may dial
(719) 457-0820.
About Compass Minerals
Compass Minerals is a leading provider of essential minerals that
address nature’s challenges, including salt for winter roadway safety
and other consumer, industrial and agricultural uses, and specialty
plant nutrition minerals that improve the quality and yield of crops.
The company produces its minerals at locations throughout the U.S. and
Canada and in the U.K. For more information about Compass Minerals and
its products, please visit www.compassminerals.com.
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 EBITDA and adjusted EBITDA are non-GAAP financial
measures used to evaluate the operating performance of the company’s
core business operations. Our 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 the potential inconsistencies
in the method of calculation. The calculations of EBITDA and adjusted
EBITDA as used by management are 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
early redemption of the company’s senior notes due in 2019. 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 identified in the “Risk Factors” sections of
Compass Minerals’ annual and quarterly reports on forms 10-K and 10-Q.
The company undertakes no obligation to update any forward-looking
statements made in this press release to reflect future events or
developments.
|
|
|
Reconciliation for EBITDA and Adjusted EBITDA (unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Net earnings (loss)
|
|
$
|
(0.7
|
)
|
|
$
|
10.6
|
|
|
$
|
49.5
|
|
$
|
57.0
|
|
|
Interest expense
|
|
|
4.5
|
|
|
|
4.4
|
|
|
|
8.9
|
|
|
8.8
|
|
|
Income tax expense
|
|
|
2.5
|
|
|
|
2.4
|
|
|
|
18.0
|
|
|
19.5
|
|
|
Depreciation, depletion and amortization
|
|
|
18.8
|
|
|
|
18.1
|
|
|
|
37.2
|
|
|
35.4
|
|
|
EBITDA
|
|
$
|
25.1
|
|
|
$
|
35.5
|
|
|
$
|
113.6
|
|
$
|
120.7
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
Other (income) expense(1)
|
|
|
7.1
|
|
|
|
(2.7
|
)
|
|
|
4.0
|
|
|
(3.1
|
)
|
|
Adjusted EBITDA
|
|
$
|
32.2
|
|
|
$
|
32.8
|
|
|
$
|
117.6
|
|
$
|
117.6
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Primarily includes interest income and foreign exchange gains and
losses. The three and six months ended June 30, 2014, include a
charge of $6.9 million related to redeeming and issues notes.
|
|
|
|
Reconciliation for Net Earnings, Excluding Special Items
(unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net earnings (loss)
|
|
$
|
(0.7
|
)
|
|
$
|
10.6
|
|
$
|
49.5
|
|
$
|
57.0
|
|
Costs of early debt redemption, net of taxes(1)
|
|
|
5.1
|
|
|
|
−
|
|
|
5.1
|
|
|
−
|
|
Net earnings, excluding special items
|
|
$
|
4.4
|
|
|
$
|
10.6
|
|
$
|
54.6
|
|
$
|
57.0
|
|
|
|
|
|
|
|
|
|
|
(1) In June 2014, the company redeemed early $100 million in senior
notes for pre-tax costs of $6.9 million ($5.1 million after applicable
income taxes).
|
|
|
Reconciliation for Salt Segment EBITDA (unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Reported GAAP Operating Earnings
|
|
$
|
6.8
|
|
$
|
15.7
|
|
$
|
70.3
|
|
$
|
81.1
|
|
Depreciation, depletion and amortization
|
|
|
10.7
|
|
|
11.1
|
|
|
22.1
|
|
|
21.5
|
|
Segment EBITDA
|
|
$
|
17.5
|
|
$
|
26.8
|
|
$
|
92.4
|
|
$
|
102.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation for Plant Nutrition Segment EBITDA (unaudited)
|
|
(in millions)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Reported GAAP Operating Earnings
|
|
$
|
17.9
|
|
$
|
14.0
|
|
$
|
34.2
|
|
$
|
29.4
|
|
Depreciation, depletion and amortization
|
|
|
6.9
|
|
|
5.9
|
|
|
12.9
|
|
|
11.8
|
|
Segment EBITDA
|
|
$
|
24.8
|
|
$
|
19.9
|
|
$
|
47.1
|
|
$
|
41.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
(in millions, except share and per-share data)
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
186.6
|
|
|
$
|
173.8
|
|
|
$
|
608.6
|
|
$
|
557.5
|
|
|
Shipping and handling cost
|
|
|
44.8
|
|
|
|
40.3
|
|
|
|
175.5
|
|
|
155.6
|
|
|
Product cost
|
|
|
104.3
|
|
|
|
91.6
|
|
|
|
303.3
|
|
|
268.7
|
|
|
Gross profit
|
|
|
37.5
|
|
|
|
41.9
|
|
|
|
129.8
|
|
|
133.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
24.1
|
|
|
|
27.2
|
|
|
|
49.4
|
|
|
51.0
|
|
|
Operating earnings
|
|
|
13.4
|
|
|
|
14.7
|
|
|
|
80.4
|
|
|
82.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4.5
|
|
|
|
4.4
|
|
|
|
8.9
|
|
|
8.8
|
|
|
Other, net
|
|
|
7.1
|
|
|
|
(2.7
|
)
|
|
|
4.0
|
|
|
(3.1
|
)
|
|
Earnings before income taxes
|
|
|
1.8
|
|
|
|
13.0
|
|
|
|
67.5
|
|
|
76.5
|
|
|
Income tax expense
|
|
|
2.5
|
|
|
|
2.4
|
|
|
|
18.0
|
|
|
19.5
|
|
|
Net earnings (loss)
|
|
$
|
(0.7
|
)
|
|
$
|
10.6
|
|
|
$
|
49.5
|
|
$
|
57.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per common share (loss)
|
|
$
|
(0.02
|
)
|
|
$
|
0.32
|
|
|
$
|
1.47
|
|
$
|
1.69
|
|
|
Diluted net earnings per common share (loss)
|
|
$
|
(0.02
|
)
|
|
$
|
0.32
|
|
|
$
|
1.47
|
|
$
|
1.69
|
|
|
Cash dividends per share
|
|
$
|
0.60
|
|
|
$
|
0.545
|
|
|
$
|
1.20
|
|
$
|
1.09
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding (in thousands): (1)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,549
|
|
|
|
33,380
|
|
|
|
33,526
|
|
|
33,332
|
|
|
Diluted
|
|
|
33,549
|
|
|
|
33,411
|
|
|
|
33,546
|
|
|
33,362
|
|
|
(1)
|
|
Excludes participating securities. Participating securities include
options, PSUs and RSUs that receive non-forfeitable dividends.
Weighted participating securities included 213,000 and 216,000 for
the three and six months ended June 30, 2014, respectively, and
317,000 and 320,000 for the three and six months ended June 30,
2013, respectively.
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
ASSETS
|
|
|
|
Cash and cash equivalents
|
|
$
|
304.0
|
|
$
|
159.6
|
|
Receivables, net
|
|
|
100.7
|
|
|
211.9
|
|
Inventories
|
|
|
159.8
|
|
|
180.7
|
|
Other current assets
|
|
|
34.5
|
|
|
25.2
|
|
Property, plant and equipment, net
|
|
|
691.9
|
|
|
677.3
|
|
Intangible and other noncurrent assets
|
|
|
250.3
|
|
|
150.1
|
|
Total assets
|
|
$
|
1,541.2
|
|
$
|
1,404.8
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current portion of long-term debt
|
|
$
|
3.9
|
|
$
|
3.9
|
|
Other current liabilities
|
|
|
208.5
|
|
|
253.7
|
|
Long-term debt, net of current portion
|
|
|
624.4
|
|
|
474.7
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
130.2
|
|
|
118.3
|
|
Total stockholders' equity
|
|
|
574.2
|
|
|
554.2
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,541.2
|
|
$
|
1,404.8
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Net cash provided by operating activities
|
|
$
|
161.8
|
|
|
$
|
175.8
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(49.0
|
)
|
|
|
(55.5
|
)
|
|
Acquisition of a business
|
|
|
(86.1
|
)
|
|
|
−
|
|
|
Insurance advances for investment purposes, Goderich tornado
|
|
|
8.7
|
|
|
|
11.9
|
|
|
Other, net
|
|
|
3.1
|
|
|
|
2.4
|
|
|
Net cash used in investing activities
|
|
|
(123.3
|
)
|
|
|
(41.2
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
250.0
|
|
|
|
−
|
|
|
Principal payments on long-term debt
|
|
|
(100.4
|
)
|
|
|
(1.9
|
)
|
|
Premium and other payments to refinance debt
|
|
|
(5.5
|
)
|
|
|
−
|
|
|
Deferred financing costs
|
|
|
(3.1
|
)
|
|
|
−
|
|
|
Dividends paid
|
|
|
(40.4
|
)
|
|
|
(36.5
|
)
|
|
Proceeds received from stock option exercises
|
|
|
4.4
|
|
|
|
7.6
|
|
|
Excess tax benefit (deficiency) from equity compensation awards
|
|
|
(0.3
|
)
|
|
|
0.6
|
|
|
Net cash provided by (used in) financing activities
|
|
|
104.7
|
|
|
|
(30.2
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
1.2
|
|
|
|
(8.1
|
)
|
|
Net change in cash and cash equivalents
|
|
|
144.4
|
|
|
|
96.3
|
|
|
Cash and cash equivalents, beginning of the period
|
|
|
159.6
|
|
|
|
100.1
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
304.0
|
|
|
$
|
196.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
SEGMENT INFORMATION (unaudited)
|
|
(in millions)
|
|
|
|
Three Months Ended June 30, 2014
|
|
Salt
|
|
Plant Nutrition
|
|
Corporate and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
118.7
|
|
$
|
65.6
|
|
$
|
2.3
|
|
|
$
|
186.6
|
|
Intersegment sales
|
|
|
0.2
|
|
|
2.7
|
|
|
(2.9
|
)
|
|
|
−
|
|
Shipping and handling cost
|
|
|
37.0
|
|
|
7.8
|
|
|
−
|
|
|
|
44.8
|
|
Operating earnings (loss)
|
|
|
6.8
|
|
|
17.9
|
|
|
(11.3
|
)
|
|
|
13.4
|
|
Depreciation, depletion and amortization
|
|
|
10.7
|
|
|
6.9
|
|
|
1.2
|
|
|
|
18.8
|
|
Total assets (as of end of period)
|
|
|
955.4
|
|
|
517.7
|
|
|
68.1
|
|
|
|
1,541.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013
|
|
Salt
|
|
Plant Nutrition
|
|
Corporate 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014
|
|
Salt
|
|
Plant Nutrition
|
|
Corporate and Other(a)
|
|
Total
|
|
Sales to external customers
|
|
$
|
471.9
|
|
$
|
131.7
|
|
$
|
5.0
|
|
|
$
|
608.6
|
|
Intersegment sales
|
|
|
0.4
|
|
|
3.2
|
|
|
(3.6
|
)
|
|
|
−
|
|
Shipping and handling cost
|
|
|
160.1
|
|
|
15.4
|
|
|
−
|
|
|
|
175.5
|
|
Operating earnings (loss)
|
|
|
70.3
|
|
|
34.2
|
|
|
(24.1
|
)
|
|
|
80.4
|
|
Depreciation, depletion and amortization
|
|
|
22.1
|
|
|
12.9
|
|
|
2.2
|
|
|
|
37.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2013
|
|
Salt
|
|
Plant Nutrition
|
|
Corporate 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
|
|
(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
Theresa Womble, 913-344-9362
Director
of Investor Relations