Fourth-Quarter Highlights:
-
Total sales up 12 percent
-
Net income up 38 percent from 2013 to $80.5 million, or $2.38 per
diluted share
-
Adjusted EBITDA* increased 34 percent
-
Record fourth-quarter salt segment operating earnings and record
quarterly sales for plant nutrition segment
Full-Year Highlights:
-
Total sales up 14 percent
-
Net income of $217.9 million, or $6.44 per diluted share; excluding
special items net income of $162.4 million, or $4.79 per diluted share
-
Adjusted EBITDA up 20 percent
-
Cash flow from operations of $242.9 million
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Feb. 9, 2015--
Compass Minerals (NYSE: CMP), a leading producer of essential minerals,
reported significantly improved fourth-quarter and full-year earnings
today. In addition, the company announced that its board of directors
has approved a 10 percent increase in the quarterly dividend for 2015,
the 12th consecutive year of increased dividends.
“Early snow and robust pre-season demand overcame mild December weather
to produce strong fourth-quarter results for our salt business, while
our plant nutrition business continues to reap the benefits of our
value-driven marketing strategy,” said Fran Malecha, Compass Minerals’
president and CEO. “We believe that the steps we’ve taken to capitalize
on the weather-driven strength in our salt business and to expand our
plant nutrition business position us for continued success in 2015.”
Fourth-quarter net income increased 38 percent to $80.5 million, or
$2.38 per diluted share, from $58.4 million, or $1.73 per diluted share,
in the fourth quarter of 2013. The 2013 period includes a net benefit
from special items of $2.9 million. Excluding these special items, the
company earned net income of $ 55.5 million, or $1.65 per diluted share,
in 2013.
For the full year, net income totaled $217.9 million, or $6.44 per
diluted share, compared to $130.8 million, or $3.88 per diluted share,
in 2013. The current year result includes an after-tax benefit of $60.6
million received in the third quarter from an insurance settlement
related to the 2011 tornado that struck the company’s facilities in
Goderich, Ontario. Excluding special items, 2014 net earnings were
$162.4 million, or $4.79 per diluted share, compared to $127.9 million,
or $3.80 per diluted share, in 2013.
Total sales in the fourth quarter rose 12 percent year-over-year to
$433.4 million, driven by a 10 percent increase in salt sales and a 23
percent surge in plant nutrition sales. Strong price performance in both
segments and higher year-over-year sales volumes of plant nutrition
products lifted full-year sales 14 percent to $1.3 billion from $1.1
billion in 2013.
Fourth-quarter operating earnings were $107.6 million, which was a 34
percent increase from 2013 results. The earnings improvement was
primarily driven by a year-over-year increase in average selling prices
for deicing salt and plant nutrition products partially offset by higher
per-unit salt costs and increased logistics costs. Full-year 2014
operating earnings were $311.0 million, which includes the $83.3 million
Goderich tornado insurance benefit, compared to $185.6 million in 2013.
*Earnings before interest, taxes, depreciation and amortization,
adjusted for special items. This is a non-GAAP financial measure.
Reconciliations to GAAP measures of performance are provided in tables
at the end of this release.
|
|
|
Financial Results
(in millions except per-share data)
|
|
|
|
|
Three months ended
December 31,
|
|
|
Twelve months ended
December 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Sales
|
|
|
$ 433.4
|
|
$ 387.4
|
|
|
$ 1,282.5
|
|
$ 1,129.6
|
|
Operating earnings(1)
|
|
|
107.6
|
|
80.3
|
|
|
311.0
|
|
185.6
|
|
Operating margin(1)
|
|
|
25%
|
|
21%
|
|
|
24%
|
|
16%
|
|
Net earnings
|
|
|
80.5
|
|
58.4
|
|
|
217.9
|
|
130.8
|
|
Net earnings, excluding special items(2)
|
|
|
80.5
|
|
55.5
|
|
|
162.4
|
|
127.9
|
|
Diluted earnings per share
|
|
|
2.38
|
|
1.73
|
|
|
6.44
|
|
3.88
|
|
Diluted earnings per share, excluding special items(2)
|
|
|
2.38
|
|
1.65
|
|
|
4.79
|
|
3.80
|
|
EBITDA(1) (2)
|
|
|
130.2
|
|
103.1
|
|
|
389.9
|
|
265.0
|
|
Adjusted EBITDA(2)
|
|
|
128.4
|
|
95.6
|
|
|
305.7
|
|
254.3
|
(1) The 12 months ended December 31, 2014, include 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.
(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
Quarterly salt segment sales increased 10 percent from last year’s
fourth quarter, despite milder winter weather. This increase was
primarily driven by a 26 percent increase in highway deicing prices and
a 6 percent increase in consumer and industrial prices. Early snowfall
in November and customers’ needs to replenish inventories following the
severe 2013-2014 winter offset milder-than-average winter weather during
the fourth quarter.
Improved pricing across all salt products more than offset the impact of
purchased rock salt and higher freight costs. This boosted the segment’s
adjusted EBITDA to a record level. For the quarter, segment adjusted
EBITDA totaled $115.7 million, a 26 percent increase over the prior-year
result of $91.9 million.
|
|
|
Salt Segment Performance
(in millions except for sales volumes and prices per ton)
|
|
|
|
|
Three months ended
December 31,
|
|
|
Twelve months ended
December 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Sales
|
|
|
$
|
355.3
|
|
$
|
323.1
|
|
|
$
|
1,002.6
|
|
$
|
920.5
|
|
Operating earnings(1)
|
|
|
|
104.4
|
|
|
74.8
|
|
|
|
291.4
|
|
|
181.3
|
|
Operating margin(1)
|
|
|
|
29%
|
|
|
23%
|
|
|
|
29%
|
|
|
20%
|
|
Adjusted segment EBITDA
|
|
|
$
|
115.7
|
|
$
|
91.9
|
|
|
$
|
253.9
|
|
$
|
231.1
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
|
3,502
|
|
|
4,037
|
|
|
|
10,694
|
|
|
10,944
|
|
Consumer and industrial
|
|
|
|
773
|
|
|
740
|
|
|
|
2,596
|
|
|
2,321
|
|
Total salt
|
|
|
|
4,275
|
|
|
4,777
|
|
|
|
13,290
|
|
|
13,265
|
|
Average sales price (per ton):
|
|
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
$
|
65.86
|
|
$
|
52.20
|
|
|
$
|
57.37
|
|
$
|
53.19
|
|
Consumer and industrial
|
|
|
|
161.31
|
|
|
151.86
|
|
|
|
149.89
|
|
|
145.78
|
|
Total salt
|
|
|
|
83.13
|
|
|
67.63
|
|
|
|
75.44
|
|
|
69.39
|
(1) The 12 months ended December 31, 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.
Winter Weather Effect
Early snow in November and very robust restocking demand for highway and
consumer and professional deicing products produced salt sales and
earnings that were above what would have been expected in an
average-winter-weather fourth quarter. Thus, while only 35
fourth-quarter snow events were recorded in the company’s core North
American service areas, compared with a 10-year average of 47.5 events,
the company estimates a positive sales and operating earnings impact
from average-winter-weather variances.
|
|
|
Estimated Effect of Weather on Salt Segment Performance
(in millions)
|
|
|
|
|
Three months ended
December 31,
|
|
|
|
Calendar year,*
|
|
Favorable (unfavorable) to average weather:
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Sales
|
|
|
$35 to $40
|
|
|
$45 to $50
|
|
|
|
$75 to $90
|
|
|
$65 to $75
|
|
Operating earnings
|
|
|
$10 to $15
|
|
|
$10 to $15
|
|
|
|
$20 to $25
|
|
|
$18 to $22
|
* The three months ended March 31, plus the three months ended
December 31.
PLANT NUTRITION SEGMENT
Strong sulfate of potash prices and the addition of Wolf Trax®
micronutrient sales lifted fourth-quarter plant nutrition segment sales
23 percent from prior-year results to $75.8 million. Average selling
prices for the portfolio of plant nutrition products increased 15
percent from the 2013 quarter, and sales volumes increased 7 percent.
Plant nutrition segment adjusted EBITDA for the quarter totaled $28.9
million compared to $16.9 million in the fourth quarter of 2013. Price
improvements and more efficient production from the company’s Ogden,
Utah, plant expanded the segment’s adjusted EBITDA margin percentage to
38 percent from 28 percent in the 2013 period.
|
|
|
Plant Nutrition Segment Performance
(in millions except for sales volumes and prices per short ton)
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
|
Twelve months ended
December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
2013
|
|
Sales
|
|
|
|
$
|
75.8
|
|
|
$
|
61.4
|
|
|
|
$
|
270.2
|
|
|
$
|
198.6
|
|
Operating earnings
|
|
|
|
|
21.6
|
|
|
|
19.7
|
|
|
|
$
|
74.8
|
|
|
$
|
58.7
|
|
Operating margin
|
|
|
|
|
28%
|
|
|
|
32%
|
|
|
|
|
28%
|
|
|
|
30%
|
|
Adjusted segment EBITDA
|
|
|
|
$
|
28.9
|
|
|
$
|
16.9
|
|
|
|
$
|
102.1
|
|
|
$
|
73.5
|
|
Sales volume (in thousands of tons)
|
|
|
|
|
105
|
|
|
|
98
|
|
|
|
|
396
|
|
|
|
315
|
|
Average sales price (per ton)
|
|
|
|
$
|
719
|
|
|
$
|
626
|
|
|
|
$
|
682
|
|
|
$
|
630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL HIGHLIGHTS
Selling, general and administrative expense increased 28 percent from
2013 fourth-quarter results, and was more than explained by the addition
of Wolf Trax and a revenue-driven increase in variable compensation. For
the full-year, selling, general and administrative costs as a percent of
total sales were 8.6 percent, down from 8.9 percent in 2013.
Interest expense in the quarter rose $1.0 million from the prior-year
due to an increase in long-term borrowings. Fourth-quarter income tax
expense of $23.2 million includes the one-time benefit of approximately
$3.7 million from the release of a provision for uncertain tax positions
driven by the expiry of its statute of limitations.
DIVIDEND INCREASE
Compass Minerals board of directors has approved a 10 percent increase
in the company’s quarterly dividend to $0.66 per share, effective with
its dividend payable March 13, 2015, to shareholders of record as of the
close of business on February 27, 2015. This marks the 12th
consecutive annual increase in the company’s dividend.
OUTLOOK
In an effort to increase transparency for investors and other market
participants, the company has decided to initiate full-year earnings
guidance, which will be updated quarterly.
|
|
|
2015 OUTLOOK:
FULL YEAR EPS - $5.10 to $5.60
|
|
Salt Segment
|
|
|
|
1H15
|
|
|
|
FY15
|
|
Volumes
|
|
|
|
5.5 million to 6.0 million tons
|
|
|
|
12.0 million to 13.0 million tons
|
|
Average Selling Price (per ton)
|
|
|
|
$74 to $78
|
|
|
|
|
|
Operating Earnings Margin
|
|
|
|
23% to 24%
|
|
|
|
|
|
Plant Nutrition Segment
|
|
|
|
|
|
|
|
|
|
Volumes
|
|
|
|
180,000 to 200,000 tons
|
|
|
|
390,000 to 420,000 tons
|
|
Average Selling Price (per ton)
|
|
|
|
$750 to $780
|
|
|
|
|
|
Operating Earnings Margin
|
|
|
|
23% to 25%
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
Corporate and Other Expense
|
|
|
|
|
|
|
|
~$50 million
|
|
Interest Expense
|
|
|
|
|
|
|
|
~$24 million
|
|
Capital Expenditures
|
|
|
|
|
|
|
|
~$250 million
|
|
Effective Tax Rate
|
|
|
|
|
|
|
|
27% to 28%
|
|
|
|
|
|
|
|
|
|
|
Above average winter weather in the Great Lakes service area in January
has essentially offset mild weather in other key service regions. Thus
the company’s current sales volume expectation assumes average winter
weather for the first quarter and the full year. In addition to
significantly improved highway deicing contract pricing, the company
expects first-half 2015 operating earnings for the salt segment to
benefit from lower fuel costs, partially offset by freight rate
inflation.
Demand for the Compass Minerals portfolio of plant nutrition products is
expected to remain strong in 2015. Plant nutrition average selling
prices are expected to benefit from a $50 per-ton price increase on
sulfate of potash products, effective January 1, 2015, as well as the
addition of Wolf Trax micronutrient prices. Current constraints on
low-cost, pond-based production are expected to pressure the segment’s
operating margin throughout 2015, partially muting the earnings benefit
from improved pricing.
Conference Call
Compass Minerals will discuss its results on a conference call tomorrow
morning, Tuesday, Feb. 10, 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
7159160. 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 7159160. 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 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. The 2014 special items include charges associated with early
redemption of the company’s senior notes due in 2019 in the second
quarter and a gain in the third 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. 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. We use
words such as “may,” “would,” “could,” “should,” “will,”
“likely,” “expect,” “anticipate,” “believe,” “intend,” “plan,”
“forecast,” “outlook,” “project," “estimate” and similar expressions
suggesting future outcomes or events to identify forward-looking
statements or forward-looking information. 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 weather
conditions, pressure on prices and impact from competitive products, any
inability by us to fund necessary capital expenditures, foreign exchange
rates, and the cost and availability of transportation for the
distribution of our products. For further information on these and other
risks and uncertainties that may affect our business, see the “Risk
Factors” sections of our Annual Report on Form 10-K for the year ended
December 31, 2013 and when filed, our Annual Report on Form 10-K for the
year ended December 31, 2014. The company undertakes no obligation to
update any forward-looking statements made in this press release to
reflect future events or developments. Because it is not possible to
predict or identify all such factors, this list cannot be considered a
complete set of all potential risks or uncertainties.
|
|
|
Reconciliation for EBITDA and Adjusted EBITDA (unaudited)
(in millions)
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
2014
|
|
|
2013
|
|
Net earnings
|
$
|
80.5
|
|
$
|
58.4
|
|
$ 217.9
|
|
$
|
130.8
|
|
Interest expense
|
|
5.7
|
|
|
4.7
|
|
20.1
|
|
|
17.9
|
|
Income tax expense
|
|
23.2
|
|
|
20.4
|
|
73.9
|
|
|
43.3
|
|
Depreciation, depletion and amortization
|
|
20.8
|
|
|
19.6
|
|
78.0
|
|
|
73.0
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
130.2
|
|
$
|
103.1
|
|
$ 389.9
|
|
$
|
265.0
|
|
Gain from insurance settlement(1)
|
|
−
|
|
|
(9.0)
|
|
(83.3)
|
|
|
(9.0)
|
|
Estimated costs of a legal ruling(2)
|
|
−
|
|
|
4.7
|
|
−
|
|
|
4.7
|
|
Other (income) expense(3)
|
|
(1.8)
|
|
|
(3.2)
|
|
(0.9)
|
|
|
(6.4)
|
|
Adjusted EBITDA
|
$
|
128.4
|
|
$
|
95.6
|
|
$ 305.7
|
|
$
|
254.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the third quarter of 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. 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.
(2) 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.
(3) Primarily includes interest income and foreign exchange gains
and losses. 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
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
2014
|
|
|
2013
|
|
Net earnings
|
$
|
80.5
|
|
$
|
58.4
|
|
$ 217.9
|
|
$
|
130.8
|
|
Gain from insurance settlements, net of taxes(1)
|
|
−
|
|
|
(5.7)
|
|
(60.6)
|
|
|
(5.7)
|
|
Costs to refinance debt, net of taxes(2)
|
|
−
|
|
|
−
|
|
5.1
|
|
|
−
|
|
Estimated costs of legal ruling, net of taxes(3)
|
|
−
|
|
|
2.8
|
|
−
|
|
|
2.8
|
|
Net earnings, excluding special items
|
$
|
80.5
|
|
$
|
55.5
|
|
$ 162.4
|
|
$
|
127.9
|
|
|
|
|
|
|
|
|
|
|
(1) In the third quarter of 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. 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.
(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).
(3) 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 Adjusted EBITDA
(unaudited)
(in millions)
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
|
Twelve months ended
December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
2013
|
|
Segment operating earnings
|
|
|
|
$
|
104.4
|
|
|
$
|
74.8
|
|
|
|
$
|
291.4
|
|
|
$
|
181.3
|
|
Depreciation, depletion and amortization
|
|
|
|
|
11.3
|
|
|
|
12.4
|
|
|
|
|
44.8
|
|
|
|
45.1
|
|
Segment EBITDA
|
|
|
|
$
|
115.7
|
|
|
$
|
87.2
|
|
|
|
$
|
336.2
|
|
|
$
|
226.4
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated costs of legal ruling(1)
|
|
|
|
|
−
|
|
|
|
4.7
|
|
|
|
|
−
|
|
|
|
4.7
|
|
Gain from insurance settlement(2)
|
|
|
|
|
−
|
|
|
|
−
|
|
|
|
|
(82.3)
|
|
|
|
−
|
|
Adjusted Segment EBITDA
|
|
|
|
$
|
115.7
|
|
|
$
|
91.9
|
|
|
|
$
|
253.9
|
|
|
$
|
231.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
(2) In the third quarter of 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 and Adjusted
EBITDA(unaudited)
(in millions)
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
|
Twelve months ended
December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
2013
|
|
Segment operating earnings
|
|
|
|
$
|
21.6
|
|
|
$
|
19.7
|
|
|
|
$
|
74.8
|
|
|
$
|
58.7
|
|
Depreciation, depletion and amortization
|
|
|
|
|
7.3
|
|
|
|
6.2
|
|
|
|
|
27.3
|
|
|
|
23.8
|
|
Segment EBITDA
|
|
|
|
$
|
28.9
|
|
|
$
|
25.9
|
|
|
|
$
|
102.1
|
|
|
$
|
82.5
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from insurance settlement(1)
|
|
|
|
|
−
|
|
|
|
(9.0)
|
|
|
|
|
−
|
|
|
|
(9.0)
|
|
Adjusted segment EBITDA
|
|
|
|
$
|
28.9
|
|
|
$
|
16.9
|
|
|
|
$
|
102.1
|
|
|
$
|
73.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the fourth quarter of 2013, the company received $9.0 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,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
433.4
|
|
|
$
|
387.4
|
|
|
|
|
$
|
1,282.5
|
|
|
$
|
1,129.6
|
|
|
Shipping and handling cost
|
|
|
104.7
|
|
|
|
101.7
|
|
|
|
|
|
337.7
|
|
|
|
301.7
|
|
|
Product cost
|
|
|
186.9
|
|
|
|
178.7
|
|
|
|
|
|
523.4
|
|
|
|
541.9
|
|
|
Gross profit
|
|
|
141.8
|
|
|
|
107.0
|
|
|
|
|
|
421.4
|
|
|
|
286.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
34.2
|
|
|
|
26.7
|
|
|
|
|
|
110.4
|
|
|
|
100.4
|
|
|
Operating earnings
|
|
|
107.6
|
|
|
|
80.3
|
|
|
|
|
|
311.0
|
|
|
|
185.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
5.7
|
|
|
|
4.7
|
|
|
|
|
|
20.1
|
|
|
|
17.9
|
|
|
Other, net
|
|
|
(1.8
|
)
|
|
|
(3.2
|
)
|
|
|
|
|
(0.9
|
)
|
|
|
(6.4
|
)
|
|
Earnings before income taxes
|
|
|
103.7
|
|
|
|
78.8
|
|
|
|
|
|
291.8
|
|
|
|
174.1
|
|
|
Income tax expense
|
|
|
23.2
|
|
|
|
20.4
|
|
|
|
|
|
73.9
|
|
|
|
43.3
|
|
|
Net earnings
|
|
$
|
80.5
|
|
|
$
|
58.4
|
|
|
|
|
$
|
217.9
|
|
|
$
|
130.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings, per common share
|
|
$
|
2.38
|
|
|
$
|
1.73
|
|
|
|
|
$
|
6.45
|
|
|
$
|
3.89
|
|
|
Diluted net earnings, per common share
|
|
$
|
2.38
|
|
|
$
|
1.73
|
|
|
|
|
$
|
6.44
|
|
|
$
|
3.88
|
|
|
Cash dividends per share
|
|
$
|
0.60
|
|
|
$
|
0.545
|
|
|
|
|
$
|
2.40
|
|
|
$
|
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (in thousands)(1):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,600
|
|
|
|
33,477
|
|
|
|
|
|
33,557
|
|
|
|
33,403
|
|
|
Diluted
|
|
|
33,617
|
|
|
|
33,487
|
|
|
|
|
|
33,581
|
|
|
|
33,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 221,000 and 227,000 participating securities in the
three-month and 12-month periods ending December 31, 2014, respectively,
and 227,000 and 250,000 participating securities in the three-month and
12-month periods ending December 31, 2013, respectively.
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
266.8
|
|
|
|
$
|
159.6
|
|
Receivables, net
|
|
|
|
|
213.0
|
|
|
|
|
211.9
|
|
Inventories
|
|
|
|
|
199.0
|
|
|
|
|
180.7
|
|
Other current assets
|
|
|
|
|
23.9
|
|
|
|
|
25.2
|
|
Property, plant and equipment, net
|
|
|
|
|
700.9
|
|
|
|
|
677.3
|
|
Intangible and other noncurrent assets
|
|
|
|
|
233.6
|
|
|
|
|
150.1
|
|
Total assets
|
|
|
|
$
|
1,637.2
|
|
|
|
$
|
1,404.8
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
3.9
|
|
|
|
$
|
3.9
|
|
Other current liabilities
|
|
|
|
|
233.8
|
|
|
|
|
253.7
|
|
Long-term debt, net of current portion
|
|
|
|
|
622.5
|
|
|
|
|
474.7
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
|
|
123.4
|
|
|
|
|
118.3
|
|
Total stockholders' equity
|
|
|
|
|
653.6
|
|
|
|
|
554.2
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
1,637.2
|
|
|
|
$
|
1,404.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
242.9
|
|
|
|
|
$
|
238.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(125.2
|
)
|
|
|
|
|
(122.7
|
)
|
|
Acquisition of a business
|
|
|
|
|
(86.5
|
)
|
|
|
|
|
−
|
|
|
Insurance receipts for investment purposes, Goderich tornado
|
|
|
|
|
19.4
|
|
|
|
|
|
14.2
|
|
|
Other, net
|
|
|
|
|
3.1
|
|
|
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
(189.2
|
)
|
|
|
|
|
(106.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
|
|
250.0
|
|
|
|
|
|
−
|
|
|
Principal payments on long-term debt
|
|
|
|
|
(102.4
|
)
|
|
|
|
|
(3.9
|
)
|
|
Premium and other payments to refinance debt
|
|
|
|
|
(5.5
|
)
|
|
|
|
|
−
|
|
|
Deferred financing costs
|
|
|
|
|
(4.1
|
)
|
|
|
|
|
(0.6
|
)
|
|
Dividends paid
|
|
|
|
|
(80.7
|
)
|
|
|
|
|
(73.1
|
)
|
|
Proceeds received from stock option exercises
|
|
|
|
|
7.5
|
|
|
|
|
|
10.6
|
|
Excess tax benefits (deficiencies) from equity
compensation
awards
|
|
|
|
|
(0.2
|
)
|
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
64.6
|
|
|
|
|
|
(66.4
|
)
|
|
Effect of exchange rate changes on cash and
cash equivalents
|
|
|
|
|
(11.1
|
)
|
|
|
|
|
(6.3
|
)
|
|
Net change in cash and cash equivalents
|
|
|
|
|
107.2
|
|
|
|
|
|
59.5
|
|
|
Cash and cash equivalents, beginning of the year
|
|
|
|
|
159.6
|
|
|
|
|
|
100.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
266.8
|
|
|
|
|
$
|
159.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
SEGMENT INFORMATION (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2014
|
Salt(1)
|
|
Plant
Nutrition
|
|
Corporate
and Other(1,3)
|
|
Total
|
|
Sales to external customers
|
$
|
355.3
|
|
$
|
75.8
|
|
$
|
2.3
|
|
|
$
|
433.4
|
|
Intersegment sales
|
|
0.2
|
|
|
2.4
|
|
|
(2.6
|
)
|
|
|
-
|
|
Shipping and handling cost
|
|
97.6
|
|
|
7.1
|
|
|
-
|
|
|
|
104.7
|
|
Operating earnings (loss)
|
|
104.4
|
|
|
21.6
|
|
|
(18.4
|
)
|
|
|
107.6
|
|
Depreciation, depletion and amortization
|
|
11.3
|
|
|
7.3
|
|
|
2.2
|
|
|
|
20.8
|
|
Total assets (as of end of period)
|
|
1,045.2
|
|
|
536.2
|
|
|
55.8
|
|
|
|
1,637.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2013
|
Salt(1)
|
|
Plant
Nutrition(2)
|
|
Corporate
and Other(3)
|
|
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 (as of end of period)
|
|
942.2
|
|
|
386.8
|
|
|
75.8
|
|
|
|
1,404.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2014
|
Salt(1)
|
|
Plant
Nutrition
|
|
Corporate
and Other(1,3)
|
|
Total
|
|
Sales to external customers
|
$
|
1,002.6
|
|
$
|
270.2
|
|
$
|
9.7
|
|
|
$
|
1,282.5
|
|
Intersegment sales
|
|
0.9
|
|
|
7.1
|
|
|
(8.0
|
)
|
|
|
-
|
|
Shipping and handling cost
|
|
309.3
|
|
|
28.4
|
|
|
-
|
|
|
|
337.7
|
|
Operating earnings (loss)
|
|
291.4
|
|
|
74.8
|
|
|
(55.2
|
)
|
|
|
311.0
|
|
Depreciation, depletion and amortization
|
|
44.8
|
|
|
27.3
|
|
|
5.9
|
|
|
|
78.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2013
|
Salt(1)
|
|
Plant
Nutrition(2)
|
|
Corporate
and Other(3)
|
|
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
|
|
|
|
(1) The salt segment and corporate and other include a gain of
$82.3 million and $1.0 million, respectively, in the three and 12
months ended December 30, 2014, resulting from an insurance
settlement related to a tornado at its salt facilities in
Goderich, Ontario, in August 2011. 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.
(2) 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.
(3) “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.
|
|
|
Source: Compass Minerals
Compass Minerals
Investor Contact:
Theresa L.
Womble, +1-913-344-9362
Director of Investor Relations
womblet@compassminerals.com
or
Media
Contact:
Tara Hart, +1-913-344-9319
External
Communications Manager
MediaRelations@compassminerals.com