Second-Quarter Highlights:
-
Net income up 200 percent from 2014 adjusted results
-
Operating earnings increased 79 percent
-
Salt segment earnings set second-quarter record
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Jul. 27, 2015--
Second-quarter earnings for Compass Minerals (NYSE: CMP), a leading
producer of essential minerals, improved significantly from 2014
results, while revenue was essentially flat.
“Our salt business demonstrated very strong performance this quarter
with record-setting earnings, while our plant nutrition business
continues to perform as expected,” said Fran Malecha, Compass Minerals’
president and CEO. “I am pleased with the strong commercial and
operational performance across both businesses, which should ensure we
can serve more customers effectively and efficiently through the fall
growing season and the upcoming winter.”
Net income in the second quarter increased to $13.2 million, or $0.39
per diluted share, from a loss of $0.7 million, or $0.02 per diluted
share, in the second quarter of 2014. The prior-year results included
costs related to early debt redemption of approximately $6.9 million,
pre-tax. Excluding these costs, net income in 2014 was $4.4 million, or
$0.13 per diluted share.
Salt segment operating earnings increased 210 percent year-over-year to
$21.1 million, primarily driven by improved pricing. Plant nutrition
operating earnings were $16.8 million, modestly down from $17.9 million
in the prior year, due to higher sulfate of potash production costs when
compared to the prior year.
Consolidated operating earnings rose 79 percent to $24.0 million from
$13.4 million in the 2014 second quarter. Adjusted EBITDA* increased 34
percent to $43.1 million.
|
|
|
|
Compass Minerals Financial Results
(in millions, except for earnings per share)
|
|
|
|
|
Three months ended
June 30,
|
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
|
Sales
|
|
$
|
183.7
|
|
|
|
|
$
|
186.6
|
|
|
|
|
$
|
576.7
|
|
|
|
|
$
|
608.6
|
|
|
|
Sales less shipping and handling (product sales)
|
|
|
142.9
|
|
|
|
|
|
141.8
|
|
|
|
|
|
434.0
|
|
|
|
|
|
433.1
|
|
|
|
Operating earnings
|
|
|
24.0
|
|
|
|
|
|
13.4
|
|
|
|
|
|
108.7
|
|
|
|
|
|
80.4
|
|
|
|
Operating margin
|
|
|
13.1
|
%
|
|
|
|
|
7.2
|
%
|
|
|
|
|
18.8
|
%
|
|
|
|
|
13.2
|
%
|
|
|
Net earnings (loss)
|
|
|
13.2
|
|
|
|
|
|
(0.7
|
)
|
|
|
|
|
73.8
|
|
|
|
|
|
49.5
|
|
|
|
Net earnings, excluding special items*
|
|
|
13.2
|
|
|
|
|
|
4.4
|
|
|
|
|
|
73.8
|
|
|
|
|
|
54.6
|
|
|
|
Diluted earnings per share (loss)
|
|
|
0.39
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
2.18
|
|
|
|
|
|
1.47
|
|
|
|
Diluted per-share earnings, excluding special items*
|
|
|
0.39
|
|
|
|
|
|
0.13
|
|
|
|
|
|
2.18
|
|
|
|
|
|
1.62
|
|
|
|
EBITDA*
|
|
|
44.3
|
|
|
|
|
|
25.1
|
|
|
|
|
|
151.6
|
|
|
|
|
|
113.6
|
|
|
|
Adjusted EBITDA*
|
|
|
43.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
146.9
|
|
|
|
|
|
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
Salt segment revenue declined 2 percent to $116.3 million from $118.7
million in the prior year. A 5 percent decrease in segment sales volumes
was largely offset by higher average selling prices for highway deicing
and consumer and industrial products.
Salt segment EBITDA increased to $32.0 million, 83 percent above 2014
results, and the segment’s EBITDA margin expanded from 15 percent to 28
percent. These improvements were driven primarily by stronger average
selling prices and a more profitable product sales mix compared to the
prior-year period.
Highway Deicing Bid Season Update
Compass Minerals estimates that it is 80 percent complete with the
2015-2016 North American highway deicing bid season. Tendered volumes in
the company’s served area are lower this season than last year when
tendered volumes were well-above average. Despite this reduction, the
company expects to increase committed volumes above last year’s level.
The company’s average awarded bid price has declined approximately 6
percent compared to a 25 percent increase achieved during the prior bid
season.
|
|
|
|
Salt Segment Performance
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
Sales
|
|
|
$
|
116.3
|
|
|
|
$
|
118.7
|
|
|
|
$
|
433.0
|
|
|
|
$
|
471.9
|
|
|
|
Sales less shipping and handling (product sales)
|
|
|
$
|
81.2
|
|
|
|
$
|
81.7
|
|
|
|
$
|
303.4
|
|
|
|
$
|
311.8
|
|
|
|
Operating earnings
|
|
|
$
|
21.1
|
|
|
|
$
|
6.8
|
|
|
|
$
|
98.1
|
|
|
|
$
|
70.3
|
|
|
|
Operating margin
|
|
|
|
18.1
|
%
|
|
|
|
5.7
|
%
|
|
|
|
22.7
|
%
|
|
|
|
14.9
|
%
|
|
|
EBITDA*
|
|
|
$
|
32.0
|
|
|
|
$
|
17.5
|
|
|
|
$
|
119.9
|
|
|
|
$
|
92.4
|
|
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
|
1,011
|
|
|
|
|
990
|
|
|
|
|
4,858
|
|
|
|
|
5,732
|
|
|
|
Consumer and industrial
|
|
|
|
466
|
|
|
|
|
557
|
|
|
|
|
973
|
|
|
|
|
1,211
|
|
|
|
Total salt
|
|
|
|
1,477
|
|
|
|
|
1,547
|
|
|
|
|
5,831
|
|
|
|
|
6,943
|
|
|
|
Average sales price (per ton):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highway deicing
|
|
|
$
|
51.28
|
|
|
|
$
|
44.93
|
|
|
|
$
|
60.55
|
|
|
|
$
|
52.23
|
|
|
|
Consumer and industrial
|
|
|
$
|
138.19
|
|
|
|
$
|
133.27
|
|
|
|
$
|
142.66
|
|
|
|
$
|
142.46
|
|
|
|
Total salt
|
|
|
$
|
78.72
|
|
|
|
$
|
76.73
|
|
|
|
$
|
74.26
|
|
|
|
$
|
67.97
|
|
|
*This is a non-GAAP financial measure. Reconciliations to GAAP
measures of performance are provided in tables following this release.
PLANT NUTRITION SEGMENT
Plant nutrition segment revenue totaled $64.1 million which was $1.5
million lower than prior year results. While average selling prices for
plant nutrition products increased 13 percent from 2014, increased
import competition from Europe and weather-related reductions in sulfate
of potash demand in some east coast markets resulted in a 13 percent
year-over-year decline in total sales volume.
Plant nutrition EBITDA for the quarter was $23.9 million compared to
$24.8 million in the 2014 period. Improved per-ton logistics costs
partially offset the earnings impact of lower sales volumes and higher
per-unit costs resulting from the planned increase in use of sourced
potassium feedstock following last year’s poor solar evaporation season.
|
|
|
|
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,
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
Sales
|
|
|
$
|
64.1
|
|
|
|
$
|
65.6
|
|
|
|
$
|
137.7
|
|
|
|
$
|
131.7
|
|
|
|
Sales less shipping and handling (product sales)
|
|
|
$
|
58.4
|
|
|
|
$
|
57.8
|
|
|
|
$
|
124.6
|
|
|
|
$
|
116.3
|
|
|
|
Operating earnings
|
|
|
$
|
16.8
|
|
|
|
$
|
17.9
|
|
|
|
$
|
37.6
|
|
|
|
$
|
34.2
|
|
|
|
Operating margin
|
|
|
|
26.2
|
%
|
|
|
|
27.3
|
%
|
|
|
|
27.3
|
%
|
|
|
|
26.0
|
%
|
|
|
EBITDA*
|
|
|
$
|
23.9
|
|
|
|
$
|
24.8
|
|
|
|
$
|
51.7
|
|
|
|
$
|
47.1
|
|
|
|
Sales volume (in thousands of tons)
|
|
|
|
85
|
|
|
|
|
98
|
|
|
|
|
182
|
|
|
|
|
205
|
|
|
|
Average sales price (per ton)
|
|
|
$
|
756
|
|
|
|
$
|
670
|
|
|
|
$
|
757
|
|
|
|
$
|
641
|
|
|
*This is a non-GAAP financial measure. Reconciliations to GAAP
measures of performance are provided in tables following this release.
OTHER FINANCIAL HIGHLIGHTS
Selling, general and administrative expenses increased 10 percent from
2014 results primarily due to higher incentive compensation.
Other income in the current quarter was $1.2 million compared to other
expense in the prior year of $7.1 million, which included $6.9 million
in costs associated with the early redemption of $100 million in 8
percent senior notes due in 2019.
Income tax expense totaled $6.7 million, which resulted in an effective
rate of 34 percent. The increased rate in the quarter reflects a
discrete tax expense related to a change in Canadian tax law. For the
full year, the company continues to expect an effective tax rate between
27 percent and 28 percent.
OUTLOOK
The company’s second-half and full-year outlook is summarized in the
table below.
For the remainder of the year, the company expects year-over-year
earnings improvement in the salt segment, despite lower highway deicing
bid prices. Assuming average winter weather, increased highway deicing
commitments in North America and lower salt costs are expected to keep
salt segment operating earnings above prior-year results for the second
half of 2015.
In the plant nutrition business, demand for sulfate of potash continues
to be healthy at current price levels, although the strength of the U.S.
dollar and historically low ocean freight rates are increasing
competition in North America. Compass Minerals remains well-positioned
to serve the domestic market due to the strength of the Protassium+™
sulfate of potash brand, supported by strong customer relationships and
ample product strategically positioned in key markets.
The company reiterates its full-year EPS guidance of $5.10 to $5.60 per
diluted share.
|
|
|
|
2015 OUTLOOK:
FULL YEAR EPS - $5.10 to $5.60
|
|
|
Salt Segment
|
|
2H15
|
|
FY15
|
|
|
Volumes
|
|
6.2 million to 7.2 million tons
|
|
12 million to 13 million tons
|
|
|
Average Selling Price (per ton)
|
|
$76 to $80
|
|
|
|
|
Operating Earnings Margin
|
|
27% to 29%
|
|
|
|
|
Plant Nutrition Segment
|
|
|
|
|
|
|
Volumes
|
|
200,000 to 230,000 tons
|
|
380,000 to 410,000 tons
|
|
|
Average Selling Price (per ton)
|
|
$730 to $750
|
|
|
|
|
Operating Earnings Margin
|
|
22% to 24%
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
Corporate and Other Expense
|
|
|
|
~$52 million
|
|
|
Interest Expense
|
|
|
|
~$23 million
|
|
|
Capital Expenditures
|
|
|
|
$225 to $250 million
|
|
|
Effective Tax Rate
|
|
|
|
27% to 28%
|
|
|
|
|
|
|
|
|
Conference Call
Compass Minerals will discuss its results on a conference call tomorrow
morning, Tuesday, July 28, 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
1706826. 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 1706826. 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
Compass Minerals is a leading provider of essential minerals that
provide solutions to nature’s challenges, including salt for winter
roadway safety and other consumer, industrial and agricultural uses, and
specialty plant nutrients 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 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.
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, 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 Net Earnings, Excluding Special Items
(unaudited)
(in millions)
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Net earnings (loss)
|
|
|
|
$
|
13.2
|
|
|
|
$
|
(0.7
|
)
|
|
|
|
$
|
73.8
|
|
|
|
$
|
49.5
|
|
|
Costs of early debt redemption, net of taxes(1)
|
|
|
|
|
-
|
|
|
|
|
5.1
|
|
|
|
|
|
-
|
|
|
|
|
5.1
|
|
|
Net earnings, excluding special items
|
|
|
|
$
|
13.2
|
|
|
|
$
|
4.4
|
|
|
|
|
$
|
73.8
|
|
|
|
$
|
54.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 EBITDA and Adjusted EBITDA (unaudited)
(in millions)
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
Net earnings (loss)
|
|
|
$
|
13.2
|
|
|
|
$
|
(0.7
|
)
|
|
|
$
|
73.8
|
|
|
|
$
|
49.5
|
|
Interest expense
|
|
|
|
5.3
|
|
|
|
|
4.5
|
|
|
|
|
10.7
|
|
|
|
|
8.9
|
|
Income tax expense
|
|
|
|
6.7
|
|
|
|
|
2.5
|
|
|
|
|
28.9
|
|
|
|
|
18.0
|
|
Depreciation, depletion and amortization
|
|
|
|
19.1
|
|
|
|
|
18.8
|
|
|
|
|
38.2
|
|
|
|
|
37.2
|
|
EBITDA
|
|
|
$
|
44.3
|
|
|
|
$
|
25.1
|
|
|
|
$
|
151.6
|
|
|
|
$
|
113.6
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense(1)
|
|
|
|
(1.2
|
)
|
|
|
|
7.1
|
|
|
|
|
(4.7
|
)
|
|
|
|
4.0
|
|
Adjusted EBITDA
|
|
|
$
|
43.1
|
|
|
|
$
|
32.2
|
|
|
|
$
|
146.9
|
|
|
|
$
|
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 Salt Segment EBITDA (unaudited)
(in millions)
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Operating Earnings
|
|
|
$ 21.1
|
|
|
$ 6.8
|
|
|
$ 98.1
|
|
|
$ 70.3
|
|
Depreciation, depletion and amortization
|
|
|
10.9
|
|
|
10.7
|
|
|
21.8
|
|
|
22.1
|
|
Segment EBITDA
|
|
|
$ 32.0
|
|
|
$ 17.5
|
|
|
$ 119.9
|
|
|
$ 92.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation for Plant Nutrition Segment EBITDA (unaudited)
(in millions)
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Operating Earnings
|
|
|
$
|
16.8
|
|
|
$
|
17.9
|
|
|
$
|
37.6
|
|
|
$
|
34.2
|
|
Depreciation, depletion and amortization
|
|
|
|
7.1
|
|
|
|
6.9
|
|
|
|
14.1
|
|
|
|
12.9
|
|
Segment EBITDA
|
|
|
$
|
23.9
|
|
|
$
|
24.8
|
|
|
$
|
51.7
|
|
|
$
|
47.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
183.7
|
|
|
|
$
|
186.6
|
|
|
|
$
|
576.7
|
|
|
|
$
|
608.6
|
|
Shipping and handling cost
|
|
|
|
40.8
|
|
|
|
|
44.8
|
|
|
|
|
142.7
|
|
|
|
|
175.5
|
|
Product cost
|
|
|
|
92.3
|
|
|
|
|
104.3
|
|
|
|
|
270.2
|
|
|
|
|
303.3
|
|
Gross profit
|
|
|
|
50.6
|
|
|
|
|
37.5
|
|
|
|
|
163.8
|
|
|
|
|
129.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
26.6
|
|
|
|
|
24.1
|
|
|
|
|
55.1
|
|
|
|
|
49.4
|
|
Operating earnings
|
|
|
|
24.0
|
|
|
|
|
13.4
|
|
|
|
|
108.7
|
|
|
|
|
80.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
5.3
|
|
|
|
|
4.5
|
|
|
|
|
10.7
|
|
|
|
|
8.9
|
|
Other, net
|
|
|
|
(1.2
|
)
|
|
|
|
7.1
|
|
|
|
|
(4.7
|
)
|
|
|
|
4.0
|
|
Earnings before income taxes
|
|
|
|
19.9
|
|
|
|
|
1.8
|
|
|
|
|
102.7
|
|
|
|
|
67.5
|
|
Income tax expense
|
|
|
|
6.7
|
|
|
|
|
2.5
|
|
|
|
|
28.9
|
|
|
|
|
18.0
|
|
Net earnings (loss)
|
|
|
$
|
13.2
|
|
|
|
$
|
(0.7
|
)
|
|
|
$
|
73.8
|
|
|
|
$
|
49.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per common share (loss)
|
|
|
$
|
0.39
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
2.18
|
|
|
|
$
|
1.47
|
|
Diluted net earnings per common share (loss)
|
|
|
$
|
0.39
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
2.18
|
|
|
|
$
|
1.47
|
|
Cash dividends per share
|
|
|
$
|
0.66
|
|
|
|
$
|
0.60
|
|
|
|
$
|
1.32
|
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding (in thousands): (1)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
33,682
|
|
|
|
|
33,549
|
|
|
|
|
33,654
|
|
|
|
|
33,526
|
|
Diluted
|
|
|
|
33,701
|
|
|
|
|
33,549
|
|
|
|
|
33,675
|
|
|
|
|
33,546
|
|
(1)
|
|
Excludes participating securities. Participating securities include
options, PSUs and RSUs that receive non-forfeitable dividends.
Weighted participating securities included 192,000 and 204,000 for
the three and six months ended June 30, 2015, respectively, and
213,000 and 216,000 for the three and six months ended June 30,
2014, respectively.
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
233.7
|
|
$
|
266.8
|
|
Receivables, net
|
|
|
|
|
90.5
|
|
|
213.0
|
|
Inventories
|
|
|
|
|
224.3
|
|
|
199.0
|
|
Other current assets
|
|
|
|
|
22.5
|
|
|
23.9
|
|
Property, plant and equipment, net
|
|
|
|
|
736.5
|
|
|
700.9
|
|
Intangible and other noncurrent assets
|
|
|
|
|
222.8
|
|
|
233.6
|
|
Total assets
|
|
|
|
$
|
1,530.3
|
|
$
|
1,637.2
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
3.9
|
|
$
|
3.9
|
|
Other current liabilities
|
|
|
|
|
136.2
|
|
|
233.8
|
|
Long-term debt, net of current portion
|
|
|
|
|
620.6
|
|
|
622.5
|
|
Deferred income taxes and other noncurrent liabilities
|
|
|
|
|
118.8
|
|
|
123.4
|
|
Total stockholders' equity
|
|
|
|
|
650.8
|
|
|
653.6
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
1,530.3
|
|
$
|
1,637.2
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Net cash provided by operating activities
|
|
$
|
112.2
|
|
|
|
$
|
161.8
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(89.8
|
)
|
|
|
|
(49.0
|
)
|
|
|
Acquisition of a business
|
|
|
-
|
|
|
|
|
(86.1
|
)
|
|
|
Insurance advances for investment purposes, Goderich tornado
|
|
|
-
|
|
|
|
|
8.7
|
|
|
|
Other, net
|
|
|
(0.5
|
)
|
|
|
|
3.1
|
|
|
Net cash used in investing activities
|
|
|
(90.3
|
)
|
|
|
|
(123.3
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
-
|
|
|
|
|
250.0
|
|
|
|
Principal payments on long-term debt
|
|
|
(1.9
|
)
|
|
|
|
(100.4
|
)
|
|
|
Premium and other payments to refinance debt
|
|
|
-
|
|
|
|
|
(5.5
|
)
|
|
|
Deferred financing costs
|
|
|
-
|
|
|
|
|
(3.1
|
)
|
|
|
Dividends paid
|
|
|
(44.6
|
)
|
|
|
|
(40.4
|
)
|
|
|
Proceeds received from stock option exercises
|
|
|
2.1
|
|
|
|
|
4.4
|
|
|
|
Excess tax benefit (deficiency) from equity compensation awards
|
|
|
0.1
|
|
|
|
|
(0.3
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
(44.3
|
)
|
|
|
|
104.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(10.7
|
)
|
|
|
|
1.2
|
|
|
Net change in cash and cash equivalents
|
|
|
(33.1
|
)
|
|
|
|
144.4
|
|
|
Cash and cash equivalents, beginning of the period
|
|
|
266.8
|
|
|
|
|
159.6
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
233.7
|
|
|
|
$
|
304.0
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
SEGMENT
INFORMATION (unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2015
|
|
|
Salt
|
|
|
Plant Nutrition
|
|
|
|
Corporate and Other(1)
|
|
|
Total
|
|
|
Sales to external customers
|
|
|
$
|
116.3
|
|
|
$
|
64.1
|
|
|
|
$
|
3.3
|
|
|
|
$
|
183.7
|
|
|
Intersegment sales
|
|
|
|
0.1
|
|
|
|
2.8
|
|
|
|
|
(2.9
|
)
|
|
|
|
−
|
|
|
Shipping and handling cost
|
|
|
|
35.1
|
|
|
|
5.7
|
|
|
|
|
−
|
|
|
|
|
40.8
|
|
|
Operating earnings (loss)
|
|
|
|
21.1
|
|
|
|
16.8
|
|
|
|
|
(13.9
|
)
|
|
|
|
24.0
|
|
|
Depreciation, depletion and amortization
|
|
|
|
10.9
|
|
|
|
7.1
|
|
|
|
|
1.1
|
|
|
|
|
19.1
|
|
|
Total assets (as of end of period)
|
|
|
|
905.6
|
|
|
|
563.0
|
|
|
|
|
61.7
|
|
|
|
|
1,530.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2014
|
|
|
Salt
|
|
|
Plant Nutrition
|
|
|
|
Corporate and Other(1)
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2015
|
|
|
Salt
|
|
|
Plant Nutrition
|
|
|
|
Corporate and Other(1)
|
|
|
Total
|
|
|
Sales to external customers
|
|
|
$
|
433.0
|
|
|
$
|
137.7
|
|
|
|
$
|
6.0
|
|
|
|
$
|
576.7
|
|
|
Intersegment sales
|
|
|
|
0.1
|
|
|
|
3.5
|
|
|
|
|
(3.6
|
)
|
|
|
|
−
|
|
|
Shipping and handling cost
|
|
|
|
129.6
|
|
|
|
13.1
|
|
|
|
|
−
|
|
|
|
|
142.7
|
|
|
Operating earnings (loss)
|
|
|
|
98.1
|
|
|
|
37.6
|
|
|
|
|
(27.0
|
)
|
|
|
|
108.7
|
|
|
Depreciation, depletion and amortization
|
|
|
|
21.8
|
|
|
|
14.1
|
|
|
|
|
2.3
|
|
|
|
|
38.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014
|
|
|
Salt
|
|
|
Plant Nutrition
|
|
|
|
Corporate and Other(1)
|
|
|
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
|
|
|
(1)
|
|
Corporate and Other includes corporate entities, records management
operations and other incidental operations and eliminations.
Operating earnings (loss) for corporate and other includes indirect
corporate overhead including costs for general corporate governance
and oversight, as well as costs for the human resources, information
technology and finance functions.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20150727006114/en/
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