Company Records Significant Insurance Settlement Gain
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Oct. 27, 2014--
Compass Minerals (NYSE: CMP) announces the following results of its
third-quarter 2014 operations:
-
Net earnings rose to $87.9 million, or $2.60 per diluted share, from
$15.4 million, or $0.46 per diluted share, in the third quarter of
2013. These results include a gain from the final insurance settlement
related to a 2011 tornado that struck the company’s operations in
Goderich, Ontario. Excluding this special item, net earnings in the
current quarter were $27.3 million, or $0.81 per diluted share.
-
Higher sales volumes and improved average selling prices in both the
salt and plant nutrition segments lifted total sales to $240.5 million
from $184.7 million in the prior year.
-
Operating earnings totaled $123.0 million compared to $23.1 million in
the 2013 quarter. The 2014 result includes a pre-tax gain of $83.3
million from the Goderich tornado insurance settlement.
-
Adjusted EBITDA* rose to $59.7 million from $41.1 million in the third
quarter of 2013 primarily as a result of higher year-over-year price
realization and sales volumes.
“A rebound in pre-season deicing demand coupled with improved pricing
drove strong salt segment results this quarter, while our plant
nutrition business continues to benefit from strong demand for its
differentiated products,” said Fran Malecha, Compass Minerals president
and CEO. “Additionally, the gain we reported from the Goderich tornado
insurance settlement marks a full recovery of the insurable losses we
incurred. Our attention continues to be on executing the initiatives
which will further increase our profitability as well as our ability to
respond to market opportunities and weather variability.”
*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
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Sales
|
|
$
|
240.5
|
|
|
$
|
184.7
|
|
|
$
|
849.1
|
|
|
$
|
742.2
|
|
|
Sales less shipping and handling costs (product sales)
|
|
$
|
183.0
|
|
|
$
|
140.3
|
|
|
$
|
616.1
|
|
|
$
|
542.2
|
|
|
Operating earnings(a)
|
|
$
|
123.0
|
|
|
$
|
23.1
|
|
|
$
|
203.4
|
|
|
$
|
105.3
|
|
|
Operating margin(a)
|
|
|
51
|
%
|
|
|
13
|
%
|
|
|
24
|
%
|
|
|
14
|
%
|
|
Net earnings
|
|
$
|
87.9
|
|
|
$
|
15.4
|
|
|
$
|
137.4
|
|
|
$
|
72.4
|
|
|
Net earnings, excluding special items(b)
|
|
$
|
27.3
|
|
|
$
|
15.4
|
|
|
$
|
81.9
|
|
|
$
|
72.4
|
|
|
Diluted earnings per share
|
|
$
|
2.60
|
|
|
$
|
0.46
|
|
|
$
|
4.07
|
|
|
$
|
2.15
|
|
|
Diluted earnings per share, excluding special items(b)
|
|
$
|
0.81
|
|
|
$
|
0.46
|
|
|
$
|
2.27
|
|
|
$
|
2.15
|
|
|
EBITDA(a)(b)
|
|
$
|
146.1
|
|
|
$
|
41.2
|
|
|
$
|
259.7
|
|
|
$
|
161.9
|
|
|
Adjusted EBITDA(b)
|
|
$
|
59.7
|
|
|
$
|
41.1
|
|
|
$
|
177.3
|
|
|
$
|
158.7
|
|
|
(a)
|
|
The three and nine months ended September 30, 2014 includes a
pre-tax gain of $83.3 million from an insurance settlement
relating to damage sustained by the company as a result of a
tornado that struck the company’s rock salt mine and
evaporated-salt plant in Goderich, Ontario, in 2011.
|
|
(b)
|
|
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 $32.8 million, or 23 percent, from
third-quarter 2013 results due to improved average selling prices and
higher sales volumes when compared to the prior-year period. The average
selling price for highway deicing products jumped 20 percent from
prior-year results, while consumer and industrial sales prices rose 8
percent. Healthy pre-season restocking orders of deicing products pushed
sales volumes up 12 percent for consumer and industrial products and
five percent for highway deicing products. Strong North American demand
for highway deicing salt was partially offset by lower year-over-year
sales of rock salt to chemical customers and reduced demand in the U.K.
following a very mild winter in that region.
Salt segment EBITDA increased $91.5 million to $128.1 million in the
third quarter of 2014. This result includes an $82.3 million gain from
insurance proceeds resulting from the 2011 Goderich tornado. Excluding
this benefit, salt segment EBITDA was $45.8 million, which was 25
percent higher than the 2013 results.
|
|
|
Salt Segment Performance
(in millions, except for
sales volumes and prices per short ton)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Sales
|
|
$
|
175.4
|
|
|
$
|
142.6
|
|
|
$
|
647.3
|
|
|
$
|
597.4
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
123.8
|
|
|
$
|
102.4
|
|
|
$
|
435.6
|
|
|
$
|
412.4
|
|
|
Operating earnings*
|
|
$
|
116.7
|
|
|
$
|
25.4
|
|
|
$
|
187.0
|
|
|
$
|
106.5
|
|
|
Operating margin*
|
|
|
67
|
%
|
|
|
18
|
%
|
|
|
29
|
%
|
|
|
18
|
%
|
|
Adjusted Segment EBITDA
|
|
$
|
45.8
|
|
|
$
|
36.6
|
|
|
$
|
138.2
|
|
|
$
|
139.2
|
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
1,460
|
|
|
|
1,392
|
|
|
|
7,192
|
|
|
|
6,907
|
|
|
Consumer and industrial
|
|
|
612
|
|
|
|
544
|
|
|
|
1,823
|
|
|
|
1,581
|
|
|
Total salt
|
|
|
2,072
|
|
|
|
1,936
|
|
|
|
9,015
|
|
|
|
8,488
|
|
|
Average sales prices (per ton):
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
$
|
57.19
|
|
|
$
|
47.83
|
|
|
$
|
53.24
|
|
|
$
|
53.77
|
|
|
Consumer and industrial
|
|
$
|
150.16
|
|
|
$
|
139.61
|
|
|
$
|
145.04
|
|
|
$
|
142.94
|
|
|
Total salt
|
|
$
|
84.65
|
|
|
$
|
73.64
|
|
|
$
|
71.80
|
|
|
$
|
70.38
|
|
|
*The three and nine months ended September 30, 2014 include an
$82.3 million gain from an insurance settlement relating to damage
sustained by the company as a result of a tornado that struck the
company’s rock salt mine and evaporated-salt plant in Goderich,
Ontario, in 2011.
|
|
|
PLANT NUTRITION SEGMENT
Plant nutrition segment sales rose to $62.7 million, which was a 60
percent improvement from the 2013 quarter. Demand for the company’s
sulfate of potash products improved significantly from the prior-year
period when the company’s sales volumes were suppressed because growers
delayed purchases due to price uncertainty throughout much of the
broader fertilizer market. Average selling prices for the company’s
plant nutrition products improved $90 per ton from the 2013 quarter due
to increased sulfate of potash prices and the inclusion of higher-priced
Wolf Trax® micronutrient products.
Plant nutrition segment EBITDA surged 69 percent from 2013 results to
$26.1 million. The increase was driven by improved average selling
prices and volumes partially offset by higher year-over-year per-unit
product costs and higher sales and marketing expenses.
|
|
|
Specialty Fertilizer Segment Performance
(in
millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Sales
|
|
$
|
62.7
|
|
|
$
|
39.1
|
|
|
$
|
194.4
|
|
|
$
|
137.2
|
|
|
Sales less shipping and handling (product sales)
|
|
$
|
56.8
|
|
|
$
|
34.9
|
|
|
$
|
173.1
|
|
|
$
|
122.2
|
|
|
Operating earnings
|
|
$
|
19.0
|
|
|
$
|
9.6
|
|
|
$
|
53.2
|
|
|
$
|
39.0
|
|
|
Operating margin
|
|
|
30
|
%
|
|
|
25
|
%
|
|
|
27
|
%
|
|
|
28
|
%
|
|
Segment EBITDA
|
|
$
|
26.1
|
|
|
$
|
15.4
|
|
|
$
|
73.2
|
|
|
$
|
56.6
|
|
|
Sales volume (in thousands of tons)
|
|
|
86
|
|
|
|
61
|
|
|
|
291
|
|
|
|
217
|
|
|
Average sales price (per ton)
|
|
$
|
736
|
|
|
$
|
646
|
|
|
$
|
669
|
|
|
$
|
631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
Selling, general and administrative expenses were $26.8 million, a $4.1
million increase from prior-year results. This increase was driven by
the higher sales and marketing expenses associated with the
micronutrient business as well as greater variable compensation costs in
the 2014 period.
Other income in the 2014 quarter increased $3.0 million from the
prior-year period primarily as a result of foreign exchange gains.
Cash flow from operations was $129.7 million for the nine months ending
September 2014 compared to $142.1 million for the 2013 period.
OUTLOOK
The company’s current outlook remains consistent with prior guidance for
both the salt and plant nutrition businesses.
Assuming average winter weather events, the company anticipates total
salt segment sales volumes of four million tons for the fourth quarter
of 2014. Average selling price for all salt products in the fourth
quarter is expected to increase approximately 15 percent from 2013
results. The expected price improvement is principally driven by the
results of the recently completed bidding process for 2014-2015 North
American highway deicing contracts. On average, contract pricing for
Compass Minerals’ awarded bids increased approximately 25 percent from
the 2013 bid season.
Operating margin percentage for the salt segment is expected to expand
to between 26 and 28 percent in the fourth quarter, as improved pricing
and lower production costs should more than offset the impact of
purchased salt and the higher logistics costs which are impacting
manufacturers throughout North America.
The company expects positive market fundamentals for specialty plant
nutrients to continue for the remainder of 2014. The company anticipates
fourth-quarter plant nutrition segment sales volumes of sulfate of
potash and micronutrients to total 90,000 to 100,000 tons at average
selling prices between $725 and $750 per ton. With consistent operating
rates and the continued use of potassium chloride to supplement
pond-based production, the company expects to generate an operating
margin between 28 and 30 percent in the fourth quarter of 2014.
A summary of Compass Minerals’ third-quarter performance and current
outlook is available on the company’s website at www.CompassMinerals.com/Presentations.
Conference Call
The company will discuss its results on a conference call tomorrow
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
1500717. 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 1500717. 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 and adjusted EBITDA is
meaningful to investors because it provides insight with respect to the
ongoing operating results of the company. The 2014 special items include
charges associated with early redemption of the company’s senior notes
due in 2019 in the June quarter and a gain in the September quarter from
an insurance settlement resulting from the tornado that struck the
company’s salt mine and evaporated salt plant in Goderich, Ontario, in
August 2011.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on the company's current expectations and involve
risks and uncertainties that could cause the company's actual results to
differ materially. The differences could be caused by a number of
factors including those factors identified in the "Risk Factors"
sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. The
company undertakes no obligation to update any forward-looking
statements made in this press release to reflect future events or
developments.
|
|
|
Reconciliation for EBITDA and Adjusted EBITDA (unaudited)
(in
millions)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Net earnings
|
|
$
|
87.9
|
|
|
$
|
15.4
|
|
|
$
|
137.4
|
|
|
$
|
72.4
|
|
|
Interest expense
|
|
|
5.5
|
|
|
|
4.4
|
|
|
|
14.4
|
|
|
|
13.2
|
|
|
Income tax expense
|
|
|
32.7
|
|
|
|
3.4
|
|
|
|
50.7
|
|
|
|
22.9
|
|
|
Depreciation, depletion and amortization
|
|
|
20.0
|
|
|
|
18.0
|
|
|
|
57.2
|
|
|
|
53.4
|
|
|
EBITDA
|
|
$
|
146.1
|
|
|
$
|
41.2
|
|
|
$
|
259.7
|
|
|
$
|
161.9
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
Gain from insurance settlement(1)
|
|
|
(83.3
|
)
|
|
|
−
|
|
|
|
(83.3
|
)
|
|
|
−
|
|
|
Other (income) expense(2)
|
|
|
(3.1
|
)
|
|
|
(0.1
|
)
|
|
|
0.9
|
|
|
|
(3.2
|
)
|
|
Adjusted EBITDA
|
|
$
|
59.7
|
|
|
$
|
41.1
|
|
|
$
|
177.3
|
|
|
$
|
158.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
In the three and nine months ended September 30, 2014, the company
recorded an $83.3 million gain from an insurance settlement relating
to damage sustained by the company as a result of a tornado that
struck the company’s rock salt mine and evaporated-salt plant in
Goderich, Ontario, in 2011.
|
|
(2)
|
|
In June 2014, the company redeemed early $100 million in senior
notes for pre-tax costs of $6.9 million.
|
|
|
|
Reconciliation for Net Earnings, Excluding Special Items
(unaudited)
(in millions)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
2014
|
|
|
|
2013
|
|
Net earnings
|
|
$
|
87.9
|
|
|
$
|
15.4
|
|
$
|
137.4
|
|
|
$
|
72.4
|
|
Gain from insurance settlement, net of taxes (1)
|
|
|
(60.6
|
)
|
|
|
−
|
|
|
(60.6
|
)
|
|
|
−
|
|
Costs of early debt redemption, net of taxes(2)
|
|
|
−
|
|
|
|
−
|
|
|
5.1
|
|
|
|
−
|
|
Net earnings, excluding special items
|
|
$
|
27.3
|
|
|
$
|
15.4
|
|
$
|
81.9
|
|
|
$
|
72.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
In the three and nine months ended September 30, 2014, the company
recorded an $83.3 million gain ($60.6 million after applicable
income taxes) from an insurance settlement relating to damage
sustained by the company as a result of a tornado that struck the
company’s rock salt mine and evaporated-salt plant in Goderich,
Ontario, in 2011.
|
|
(2)
|
|
|
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 and Adjusted EBITDA
(unaudited)
(in millions)
|
|
|
|
Three months ended
September 30
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
2014
|
|
|
|
2013
|
|
Segment Operating Earnings
|
|
$
|
116.7
|
|
|
$
|
25.4
|
|
$
|
187.0
|
|
|
$
|
106.5
|
|
Depreciation, depletion and amortization
|
|
|
11.4
|
|
|
|
11.2
|
|
|
33.5
|
|
|
|
32.7
|
|
Segment EBITDA
|
|
$
|
128.1
|
|
|
$
|
36.6
|
|
$
|
220.5
|
|
|
$
|
139.2
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
Gain from insurance settlement (1)
|
|
|
(82.3
|
)
|
|
|
−
|
|
|
(82.3
|
)
|
|
|
−
|
|
Adjusted Segment EBITDA
|
|
$
|
45.8
|
|
|
$
|
36.6
|
|
$
|
138.2
|
|
|
$
|
139.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
In the three and nine months ended September 30, 2014, the company
reported a gain from an insurance settlement relating to damage
sustained by the company as a result of a tornado that struck the
company’s rock salt mine and evaporated-salt plant in Goderich,
Ontario.
|
|
|
|
Reconciliation for Plant Nutrition Segment EBITDA (unaudited)
(in
millions)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Segment Operating Earnings
|
|
$
|
19.0
|
|
$
|
9.6
|
|
$
|
53.2
|
|
$
|
39.0
|
|
Depreciation, depletion and amortization
|
|
|
7.1
|
|
|
5.8
|
|
|
20.0
|
|
|
17.6
|
|
Segment EBITDA
|
|
$
|
26.1
|
|
$
|
15.4
|
|
$
|
73.2
|
|
$
|
56.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
(in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
240.5
|
|
|
|
$
|
184.7
|
|
|
|
$
|
849.1
|
|
|
$
|
742.2
|
|
|
Shipping and handling cost
|
|
|
|
57.5
|
|
|
|
|
44.4
|
|
|
|
|
233.0
|
|
|
|
200.0
|
|
|
Product cost
|
|
|
|
33.2
|
|
|
|
|
94.5
|
|
|
|
|
336.5
|
|
|
|
363.2
|
|
|
Gross profit
|
|
|
|
149.8
|
|
|
|
|
45.8
|
|
|
|
|
279.6
|
|
|
|
179.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
26.8
|
|
|
|
|
22.7
|
|
|
|
|
76.2
|
|
|
|
73.7
|
|
|
Operating earnings
|
|
|
|
123.0
|
|
|
|
|
23.1
|
|
|
|
|
203.4
|
|
|
|
105.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
5.5
|
|
|
|
|
4.4
|
|
|
|
|
14.4
|
|
|
|
13.2
|
|
|
Other, net
|
|
|
|
(3.1
|
)
|
|
|
|
(0.1
|
)
|
|
|
|
0.9
|
|
|
|
(3.2
|
)
|
|
Earnings before income taxes
|
|
|
|
120.6
|
|
|
|
|
18.8
|
|
|
|
|
188.1
|
|
|
|
95.3
|
|
|
Income tax expense
|
|
|
|
32.7
|
|
|
|
|
3.4
|
|
|
|
|
50.7
|
|
|
|
22.9
|
|
|
Net earnings
|
|
|
$
|
87.9
|
|
|
|
$
|
15.4
|
|
|
|
$
|
137.4
|
|
|
$
|
72.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per share
|
|
|
$
|
2.60
|
|
|
|
$
|
0.46
|
|
|
|
$
|
4.07
|
|
|
$
|
2.15
|
|
|
Diluted net earnings per share
|
|
|
$
|
2.60
|
|
|
|
$
|
0.46
|
|
|
|
$
|
4.07
|
|
|
$
|
2.15
|
|
|
Cash dividends per share
|
|
|
$
|
0.60
|
|
|
|
$
|
0.545
|
|
|
|
$
|
1.80
|
|
|
$
|
1.635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (in thousands): (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
33,575
|
|
|
|
|
33,469
|
|
|
|
|
33,542
|
|
|
|
33,378
|
|
|
Diluted
|
|
|
|
33,601
|
|
|
|
|
33,484
|
|
|
|
|
33,566
|
|
|
|
33,402
|
|
|
(1)
|
|
Excludes participating securities. Participating securities include
options, PSUs and RSUs that receive non-forfeitable dividends. Net
earnings were allocated to 209,000 and 214,000 participating
securities for the three and nine months ended September 30, 2014,
respectively, and 275,000 and 305,000 participating securities for
the three and nine months ended September 30, 2013.
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
Cash and cash equivalents
|
|
|
$
|
220.0
|
|
|
$
|
159.6
|
|
Receivables, net
|
|
|
|
145.3
|
|
|
|
211.9
|
|
Inventories
|
|
|
|
217.8
|
|
|
|
180.7
|
|
Other current assets
|
|
|
|
27.8
|
|
|
|
25.2
|
|
Property, plant and equipment, net
|
|
|
|
691.3
|
|
|
|
677.3
|
|
Intangible and other noncurrent assets
|
|
|
|
244.3
|
|
|
|
150.1
|
|
Total assets
|
|
|
$
|
1,546.5
|
|
|
$
|
1,404.8
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
Current portion of long-term debt
|
|
|
$
|
3.9
|
|
|
$
|
3.9
|
|
Other current liabilities
|
|
|
|
166.3
|
|
|
|
253.7
|
|
Long-term debt, net of current portion
|
|
|
|
623.5
|
|
|
|
474.7
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
|
136.8
|
|
|
|
118.3
|
|
Total stockholders' equity
|
|
|
|
616.0
|
|
|
|
554.2
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,546.5
|
|
|
$
|
1,404.8
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
Net cash provided by operating activities
|
|
|
$
|
129.7
|
|
|
|
$
|
142.1
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(83.5
|
)
|
|
|
|
(83.1
|
)
|
|
|
Acquisition of a business
|
|
|
|
(86.5
|
)
|
|
|
|
-
|
|
|
|
Insurance receipts for investment purposes, Goderich tornado
|
|
|
|
19.4
|
|
|
|
|
11.9
|
|
|
|
Other, net
|
|
|
|
3.1
|
|
|
|
|
2.5
|
|
|
Net cash used in investing activities
|
|
|
|
(147.5
|
)
|
|
|
|
(68.7
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
|
250.0
|
|
|
|
|
-
|
|
|
|
Principal payments on long-term debt
|
|
|
|
(101.4
|
)
|
|
|
|
(2.9
|
)
|
|
|
Premium and other payments to refinance debt
|
|
|
|
(5.5
|
)
|
|
|
|
-
|
|
|
|
Deferred financing costs
|
|
|
|
(4.1
|
)
|
|
|
|
-
|
|
|
|
Dividends paid
|
|
|
|
(60.6
|
)
|
|
|
|
(54.9
|
)
|
|
|
Proceeds received from stock option exercises
|
|
|
|
6.1
|
|
|
|
|
10.6
|
|
|
|
Excess tax benefits (deficiencies) from equity compensation awards
|
|
|
|
(0.2
|
)
|
|
|
|
0.7
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
84.3
|
|
|
|
|
(46.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(6.1
|
)
|
|
|
|
(3.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
60.4
|
|
|
|
|
23.8
|
|
|
Cash and cash equivalents, beginning of the year
|
|
|
|
159.6
|
|
|
|
|
100.1
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
220.0
|
|
|
|
$
|
123.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
SEGMENT INFORMATION (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014
|
|
|
Salt
|
|
|
Plant
Nutrition
|
|
|
Corporate
and Other(a)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
175.4
|
|
|
$
|
62.7
|
|
|
$
|
2.4
|
|
|
|
$
|
240.5
|
|
Intersegment sales
|
|
|
|
0.3
|
|
|
|
1.5
|
|
|
|
(1.8
|
)
|
|
|
|
–
|
|
Shipping and handling cost
|
|
|
|
51.6
|
|
|
|
5.9
|
|
|
|
–
|
|
|
|
|
57.5
|
|
Operating earnings (loss)(b)
|
|
|
|
116.7
|
|
|
|
19.0
|
|
|
|
(12.7
|
)
|
|
|
|
123.0
|
|
Depreciation, depletion and amortization
|
|
|
|
11.4
|
|
|
|
7.1
|
|
|
|
1.5
|
|
|
|
|
20.0
|
|
Total assets (as of end of period)
|
|
|
|
970.1
|
|
|
|
517.7
|
|
|
|
58.7
|
|
|
|
|
1,546.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
|
Salt
|
|
|
Plant
Nutrition
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014
|
|
|
Salt
|
|
|
Plant
Nutrition
|
|
|
Corporate
and Other(a)
|
|
|
Total
|
|
Sales to external customers
|
|
|
$
|
647.3
|
|
|
$
|
194.4
|
|
|
$
|
7.4
|
|
|
|
$
|
849.1
|
|
Intersegment sales
|
|
|
|
0.7
|
|
|
|
4.7
|
|
|
|
(5.4
|
)
|
|
|
|
–
|
|
Shipping and handling cost
|
|
|
|
211.7
|
|
|
|
21.3
|
|
|
|
–
|
|
|
|
|
233.0
|
|
Operating earnings (loss) (b)
|
|
|
|
187.0
|
|
|
|
53.2
|
|
|
|
(36.8
|
)
|
|
|
|
203.4
|
|
Depreciation, depletion and amortization
|
|
|
|
33.5
|
|
|
|
20.0
|
|
|
|
3.7
|
|
|
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2013
|
|
|
Salt
|
|
|
Plant
Nutrition
|
|
|
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
|
|
(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.
|
|
(b)
|
|
The salt segment and corporate and other include a gain of $82.3
million and $1.0 million, respectively, in the three and nine
months ended September 30, 2014 resulting from an insurance
settlement related to a tornado at its salt facilities in
Goderich, Ontario in August 2011.
|
|
|
|
|
Source: Compass Minerals
Compass Minerals
Rodney L. Underdown, 913-344-9395
Chief
Financial Officer
or
Theresa Womble, 913-344-9362
Director
of Investor Relations