Strong salt performance despite mild weather partially offsets
agriculture sector weakness
First-Quarter Highlights:
-
Salt segment operating earnings increased 7 percent year-over-year,
partially offsetting a 75 percent year-over-year decline in plant
nutrition segment operating earnings
-
Seventh consecutive quarter of year-over-year salt segment operating
earnings margin improvement, adjusted for special items
-
Restructuring plan, previously announced, underway to reduce costs and
streamline structure
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Apr. 25, 2016--
In the 2016 OUTLOOK table, the "Operating earnings margin" for the "Salt
Segment" should read "13% to 14.5%" (instead of "16.5% to 18%").
The corrected release reads:
COMPASS MINERALS POSTS SOLID FIRST-QUARTER EARNINGS
Strong salt performance despite mild weather partially offsets
agriculture sector weakness
First-Quarter Highlights:
-
Salt segment operating earnings increased 7 percent year-over-year,
partially offsetting a 75 percent year-over-year decline in plant
nutrition segment operating earnings
-
Seventh consecutive quarter of year-over-year salt segment operating
earnings margin improvement, adjusted for special items
-
Restructuring plan, previously announced, underway to reduce costs and
streamline structure
Compass Minerals (NYSE: CMP), a leading producer of essential minerals,
announced a decline in first quarter earnings as a result of continued
mild winter weather and agricultural market weakness.
“Our strong 2015-2016 highway deicing bid season results helped mitigate
the headwinds from mild winter weather in our salt business, while the
sluggish agriculture market continued to impact our plant nutrition
business this quarter,” said Fran Malecha, Compass Minerals’ president
and CEO. “We are making progress with our initiatives to reduce costs,
streamline the organization and build better businesses based on our
strong assets. Following this down cycle, I believe Compass Minerals
will be even better positioned to deliver increasing value for
shareholders.”
First-quarter net income declined to $49.7 million, or $1.46 per diluted
share, from $60.6 million, or $1.79 per diluted share, in the first
quarter of 2015.
Revenue in the first quarter totaled $345.7 million, which was 12
percent below 2015 first-quarter results, as both of the company’s
business segments reported lower sales volumes and average selling
prices.
Salt segment EBITDA* increased 6 percent compared to the first quarter
of 2015 as improved margins more than offset the sales volume impact of
mild winter weather. These results represent the seventh consecutive
quarter of year-over-year salt segment EBITDA* margin improvement.
Weak demand in the agriculture market combined with expected, higher
per-unit costs resulted in a 53 percent reduction in plant nutrition
segment EBITDA* compared to the first quarter of 2015.
The company’s consolidated operating earnings of $74.3 million were
$10.4 million below first-quarter 2015 results, a decline of 12 percent.
|
|
|
|
Compass Minerals Financial Results
(in millions, except for earnings per share)
|
|
|
|
Three months ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
Sales
|
|
$
|
345.7
|
|
|
$
|
393.0
|
|
|
Sales less shipping and handling costs (product sales)
|
|
|
256.3
|
|
|
|
291.1
|
|
|
Operating earnings
|
|
|
74.3
|
|
|
|
84.7
|
|
|
Operating margin
|
|
|
21.5
|
%
|
|
|
21.6
|
%
|
|
Net earnings
|
|
$
|
49.7
|
|
|
$
|
60.6
|
|
|
Diluted earnings per share
|
|
|
1.46
|
|
|
|
1.79
|
|
|
EBITDA*
|
|
|
95.4
|
|
|
|
107.3
|
|
|
Adjusted EBITDA*
|
|
|
94.6
|
|
|
|
103.8
|
|
|
* 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.
|
|
|
|
|
|
|
|
|
SALT SEGMENT
Mild winter weather throughout North America and the U.K. resulted in an
8 percent year-over-year decline in salt segment total revenue. First
quarter highway deicing sales volumes were 3 percent lower than
first-quarter 2015 sales volumes, which was more than explained by a
substantial decline in U.K. sales volumes. Consumer and industrial sales
volumes decreased 5 percent compared to the first quarter of 2015. As
expected, average selling price for highway deicing products declined 6
percent in the 2016 quarter from 2015 results while the average price
for consumer and industrial products was essentially unchanged.
Salt segment operating earnings increased 7 percent compared to the
first quarter of 2015, despite lower sales volumes and average selling
price. This increase resulted in an operating margin of 28.3 percent in
the quarter compared to 24.3 percent in the first quarter of 2015. The
improvements this quarter were driven primarily by year-over-year
benefits in consumer and industrial logistics costs and a strong highway
deicing bid season, which produced increased commitment volumes in
freight-logical geographies. In addition, prior-year salt operating
earnings were negatively impacted by short-term costs associated with
imported salt usage and unplanned, weather-driven downtime in the
company’s Goderich, Ontario rock salt mine.
|
|
|
Salt Segment Performance
(in millions, except for sales volumes and prices per short ton)
|
|
|
|
Three months ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
Sales
|
|
$
|
292.1
|
|
|
$
|
316.7
|
|
|
Sales less shipping and handling (product sales)
|
|
209.1
|
|
|
222.2
|
|
|
Operating earnings
|
|
82.7
|
|
|
77.0
|
|
|
Operating margin
|
|
28.3
|
%
|
|
24.3
|
%
|
|
Segment EBITDA*
|
|
$
|
93.4
|
|
|
$
|
87.9
|
|
|
Segment EBITDA* margin
|
|
32.0
|
%
|
|
27.8
|
%
|
|
Sales volumes (in thousands of tons):
|
|
|
|
|
|
Highway deicing
|
|
3,724
|
|
|
3,847
|
|
|
Consumer and industrial
|
|
482
|
|
|
507
|
|
|
Total salt
|
|
4,206
|
|
|
4,354
|
|
|
Average sales prices (per ton):
|
|
|
|
|
|
Highway deicing
|
|
$
|
59.51
|
|
|
$
|
62.99
|
|
|
Consumer and industrial
|
|
146.12
|
|
|
146.77
|
|
|
Total salt
|
|
69.45
|
|
|
72.74
|
|
|
*These are non-GAAP financial measures. Reconciliations to GAAP
measures of performance are provided in tables
following
this release.
|
|
|
Winter Weather Effect
Winter weather in the regions we serve was very mild for the full season
as snow activity remained limited and warmer temperatures continued in
the first quarter of 2016. As a result, the company estimates the
variations from average winter weather negatively impacted sales and
earnings for the quarter and the full season.
|
|
|
Estimated Effect of Winter Weather on Salt Segment Performance
(dollars in millions)
|
|
|
|
Three months ended
March 31,
|
|
Winter season ended
March 31,*
|
|
|
|
2016
|
|
2015
|
|
2015-2016
|
|
2014-2015
|
|
Favorable (unfavorable) to average weather:
|
|
|
|
|
|
|
|
|
|
Sales
|
|
($70) to ($80)
|
|
($33) to ($37)
|
|
($145) to ($165)
|
|
negligible
|
|
Operating earnings
|
|
($35) to ($40)
|
|
($14) to ($18)
|
|
($70) to ($80)
|
|
negligible
|
|
*“Winter season” is the six-month period ended March 31.
|
|
|
PLANT NUTRITION SEGMENT
Plant nutrition segment revenue in the first quarter of 2016 declined
$22.5 million from first-quarter 2015 results. The company sold 74,000
tons of plant nutrition products in the 2016 first quarter, which was 24
percent below year-ago sales volume. Average selling prices were 9
percent lower than in the first quarter of 2015. While these results
were below prior-year levels, they were in line with company
expectations.
First-quarter 2016 plant nutrition segment EBITDA* declined 53 percent
to $13.2 million from $27.8 million in the 2015 first quarter. The 2016
results include a $1.9 million gain from disposition of property at our
Ogden, UT facility. Lower selling prices for sulfate of potash combined
with higher per-unit costs reduced EBITDA* margin to 25.8 percent, down
from 37.8 percent in the first quarter of 2015. Production costs
remained elevated due to high-cost, carry-over inventory from 2015.
|
|
|
Plant Nutrition Segment Performance
(dollars in millions, except for prices per short ton)
|
|
|
|
Three months ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
Sales
|
|
$
|
51.1
|
|
|
$
|
73.6
|
|
|
Sales excluding shipping and handling (product sales)
|
|
|
44.7
|
|
|
|
66.2
|
|
|
Operating earnings
|
|
|
5.3
|
|
|
|
20.8
|
|
|
Operating margin
|
|
|
10.4
|
%
|
|
|
28.3
|
%
|
|
Segment EBITDA*
|
|
$
|
13.2
|
|
|
$
|
27.8
|
|
|
Segment EBITDA margin*
|
|
|
25.8
|
%
|
|
|
37.8
|
%
|
|
|
|
|
|
|
|
Sales volumes (in thousands of tons)
|
|
|
74
|
|
|
|
97
|
|
|
Average sales price (per ton)
|
|
$
|
689
|
|
|
$
|
759
|
|
|
*These are non-GAAP financial measures. Reconciliations to GAAP
measures of performance are provided in tables following this
release.
|
|
|
OTHER FINANCIAL HIGHLIGHTS
The company generated $92.6 million in cash flow from operations in the
current quarter, compared to $122.4 million in the same period of 2015.
Lower gains from foreign exchange reduced other income in the first
quarter of 2016 to $0.8 million from $3.5 million in the first quarter
of 2015.
As announced in February 2016, the company has initiated a restructuring
to reduce ongoing costs. This resulted in a charge of $3.2 million in
the first quarter of 2016 related to the elimination of approximately
150 positions. A significant portion of the reductions are due to the
company's investment in continuous mining at its Goderich location. In
total these actions are expected to result in ongoing, annualized
savings of approximately $15 million by the end of 2017.
In April, the company completed the refinancing of its secured credit
facilities. The new secured facilities, which include a $400 million
term loan and a $300 million revolver, carry an interest rate of LIBOR
plus 1.5 percent based on the company's current leverage. These new
credit facilities are expected to lower interest expense going forward.
OUTLOOK
A summary of the company’s second-quarter and full-year outlook is
summarized in the table below. Full-year guidance remains unchanged from
the company’s April 7, 2016 update.
The company expects the upcoming highway deicing bid season in North
America will be influenced by the mild weather of the 2015-2016 winter
season. The company continues to expect a modest recovery in full-year
plant nutrition sales volumes compared to 2015 results and improving
production costs throughout the year.
|
|
|
2016 OUTLOOK:
FULL YEAR EPS - $3.25 to $3.65
|
|
Salt Segment
|
|
2Q16
|
|
FY16
|
|
Volumes
|
|
1.3 million to 1.7 million tons
|
|
11.0 million to 11.8 million tons
|
|
Average selling price (per ton)
|
|
$76 to $78
|
|
|
|
Operating earnings margin
|
|
13% to 14.5%
|
|
|
|
Plant Nutrition Segment
|
|
|
|
|
|
Volumes
|
|
90,000 to 100,000 tons
|
|
320,000 to 360,000 tons
|
|
Average selling price (per ton)
|
|
$640 to $660
|
|
|
|
Operating earnings margin
|
|
13.5% to 15.5%
|
|
|
|
Corporate
|
|
|
|
|
|
Corporate and other expense
|
|
|
|
~$56 million
|
|
Interest expense
|
|
|
|
~$25 million
|
|
Capital expenditures
|
|
|
|
$175 million to $190 million
|
|
Effective tax rate
|
|
|
|
~28%
|
|
|
|
|
|
|
Conference Call
Compass Minerals will discuss its results on a conference call tomorrow
morning, Tuesday, April 26, 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
9383614. 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.
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 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.
Certain statements in this press release, including without
limitation the company’s or management’s beliefs, expectations or
opinions and statements about the company’s ability to reduce costs,
streamline the organization, build better businesses and deliver value
for shareholders and its outlook for the second quarter of 2016 and
full-year 2016, including expectations about the highway deicing bid
season, production costs, earnings per share (“EPS”), volumes, average
selling prices, operating earnings margin, corporate and other expense,
interest expense, capital expenditures and tax rates, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are those that
predict or describe future events or trends and that do not relate
solely to historical matters. 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. These risks,
uncertainties and factors include, but are not limited to: (i) weather
conditions, (ii) pressure on prices and impact from competitive
products, (iii) any inability by the company to fund necessary capital
expenditures, (iv) foreign exchange rates, and (v) the cost and
availability of transportation for the distribution of the company’s
products. For further information on these and other risks and
uncertainties that may affect the company’s business, see the “Risk
Factors” sections of the company’s Annual Report on Form 10-K for the
year ended December 31, 2015. 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.
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. The company’s resource allocation, financing
methods, cost of capital and income tax positions are managed at a
corporate level, apart from the activities of the operating segments. In
addition, 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 are 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 tables below.
|
|
|
Reconciliation for EBITDA and Adjusted EBITDA (unaudited)
(in millions)
|
|
|
|
Three months ended
March 31,
|
|
Three months ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
Net earnings
|
|
$
|
49.7
|
|
|
$
|
60.6
|
|
|
Interest expense
|
|
5.8
|
|
|
5.4
|
|
|
Income tax expense
|
|
20.0
|
|
|
22.2
|
|
|
Depreciation, depletion and amortization
|
|
19.9
|
|
|
19.1
|
|
|
EBITDA
|
|
$
|
95.4
|
|
|
$
|
107.3
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
Other income, net (1)
|
|
(0.8
|
)
|
|
(3.5
|
)
|
|
Adjusted EBITDA
|
|
$
|
94.6
|
|
|
$
|
103.8
|
|
|
|
|
|
|
|
|
(1) Primarily includes interest income and foreign exchange gains
and losses.
|
|
|
|
|
|
|
Reconciliation for Salt Segment EBITDA (unaudited)
(in millions)
|
|
|
|
Three months ended
March 31,
|
|
Three months ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
Segment operating earnings
|
|
$
|
82.7
|
|
$
|
77.0
|
|
Depreciation, depletion and amortization
|
|
10.7
|
|
10.9
|
|
Segment EBITDA
|
|
$
|
93.4
|
|
$
|
87.9
|
|
|
|
|
|
|
|
|
|
|
Reconciliation for Plant Nutrition Segment EBITDA (unaudited)
(in millions)
|
|
|
|
Three months ended
March 31,
|
|
Three months ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
Segment operating earnings
|
|
$
|
5.3
|
|
$
|
20.8
|
|
Depreciation, depletion and amortization
|
|
7.9
|
|
7.0
|
|
Segment EBITDA
|
|
$
|
13.2
|
|
$
|
27.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation for Salt Segment Adjusted Quarterly Operating
Earnings (unaudited)
(in millions)
|
|
|
|
Three months ended
March 31,
|
|
Three months ended
Dec. 31,
|
|
Three months ended
Sept. 30,
|
|
Three months ended
June 30,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
Segment Sales
|
|
$
|
292.1
|
|
|
$
|
236.1
|
|
|
$
|
179.9
|
|
|
$
|
116.3
|
|
|
Segment operating earnings
|
|
|
82.7
|
|
|
72.1
|
|
|
45.0
|
|
|
21.1
|
|
|
Gain from insurance settlement(a)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted segment operating earnings
|
|
$
|
82.7
|
|
|
$
|
72.1
|
|
|
$
|
45.0
|
|
|
$
|
21.1
|
|
|
Adjusted segment operating earnings margin
|
|
|
28.3
|
%
|
|
30.5
|
%
|
|
25.0
|
%
|
|
18.1
|
%
|
|
Depreciation, depletion and amortization
|
|
|
10.7
|
|
|
11.0
|
|
|
11.1
|
|
|
10.9
|
|
|
Adjusted segment EBITDA
|
|
$
|
93.4
|
|
|
$
|
83.1
|
|
|
$
|
56.1
|
|
|
$
|
32.0
|
|
|
Adjusted segment EBITDA margin
|
|
|
32.0
|
%
|
|
35.2
|
%
|
|
31.2
|
%
|
|
27.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Three months ended
Dec. 31,
|
|
Three months ended
Sept. 30,
|
|
Three months ended
June 30,
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Segment Sales
|
|
$
|
316.7
|
|
|
$
|
355.3
|
|
|
$
|
175.4
|
|
|
$
|
118.7
|
|
|
Reported GAAP segment operating earnings
|
|
|
77.0
|
|
|
104.4
|
|
|
116.7
|
|
|
6.8
|
|
|
Gain from insurance settlement(a)
|
|
|
—
|
|
|
—
|
|
|
(82.3
|
)
|
|
—
|
|
|
Adjusted segment operating earnings
|
|
$
|
77.0
|
|
|
$
|
104.4
|
|
|
$
|
34.4
|
|
|
$
|
6.8
|
|
|
Adjusted segment operating earnings margin
|
|
|
24.3
|
%
|
|
29.4
|
%
|
|
19.6
|
%
|
|
5.7
|
%
|
|
Depreciation, depletion and amortization
|
|
|
10.9
|
|
|
11.3
|
|
|
11.4
|
|
|
10.7
|
|
|
Adjusted segment EBITDA
|
|
$
|
87.9
|
|
|
$
|
115.7
|
|
|
$
|
45.8
|
|
|
$
|
17.5
|
|
|
Adjusted segment EBITDA margin
|
|
|
27.8
|
%
|
|
32.6
|
%
|
|
26.1
|
%
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Three months ended
Dec. 31,
|
|
Three months ended
Sept. 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
Segment Sales
|
|
$
|
353.2
|
|
|
$
|
323.1
|
|
|
$
|
142.6
|
|
|
|
|
Reported GAAP segment operating earnings
|
|
|
63.5
|
|
|
74.8
|
|
|
25.4
|
|
|
|
|
Gain from insurance settlement(a)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Estimated costs of legal ruling(b)
|
|
|
—
|
|
|
4.7
|
|
|
—
|
|
|
|
|
Adjusted segment operating earnings
|
|
$
|
63.5
|
|
|
$
|
79.5
|
|
|
$
|
25.4
|
|
|
|
|
Adjusted segment operating earnings margin
|
|
|
18.0
|
%
|
|
24.6
|
%
|
|
17.8
|
%
|
|
|
|
Depreciation, depletion and amortization
|
|
|
11.4
|
|
|
12.4
|
|
|
11.2
|
|
|
|
|
Adjusted segment EBITDA
|
|
$
|
74.9
|
|
|
$
|
91.9
|
|
|
$
|
36.6
|
|
|
|
|
Adjusted segment EBITDA margin
|
|
|
21.2
|
%
|
|
28.4
|
%
|
|
25.7
|
%
|
|
|
|
(a) In the third quarter of 2014, the company recorded an
$83.3 million gain ($60.6 million, net of 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.
|
|
(b) 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.
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited)
(in millions,
except share and per-share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
Sales
|
|
|
$
|
345.7
|
|
|
|
$
|
393.0
|
|
|
Shipping and handling cost
|
|
|
|
89.4
|
|
|
|
|
101.9
|
|
|
Product cost
|
|
|
|
153.7
|
|
|
|
|
177.9
|
|
|
Gross profit
|
|
|
|
102.6
|
|
|
|
|
113.2
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
28.3
|
|
|
|
|
28.5
|
|
|
Operating earnings
|
|
|
|
74.3
|
|
|
|
|
84.7
|
|
|
|
|
|
|
|
|
|
|
Other (income)/expense:
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
5.8
|
|
|
|
|
5.4
|
|
|
Earnings in equity investee
|
|
|
|
(0.4
|
)
|
|
|
|
—
|
|
|
Other, net
|
|
|
|
(0.8
|
)
|
|
|
|
(3.5
|
)
|
|
Earnings before income taxes
|
|
|
|
69.7
|
|
|
|
|
82.8
|
|
|
Income tax expense
|
|
|
|
20.0
|
|
|
|
|
22.2
|
|
|
Net earnings
|
|
|
$
|
49.7
|
|
|
|
$
|
60.6
|
|
|
Basic net earnings per common share
|
|
|
$
|
1.47
|
|
|
|
$
|
1.79
|
|
|
Diluted net earnings per common share
|
|
|
$
|
1.46
|
|
|
|
$
|
1.79
|
|
|
Cash dividends per share
|
|
|
$
|
0.695
|
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (in thousands):(1)
|
|
|
|
|
|
|
|
Basic
|
|
|
|
33,746
|
|
|
|
|
33,626
|
|
|
Diluted
|
|
|
|
33,748
|
|
|
|
|
33,649
|
|
|
|
(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 143,000 and 216,000 of participating
securities for the three months ended March 31, 2016 and 2015,
respectively.
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
Cash and cash equivalents
|
|
$
|
85.2
|
|
$
|
58.4
|
|
Receivables, net
|
|
134.8
|
|
147.8
|
|
Inventories
|
|
211.1
|
|
275.3
|
|
Other current assets
|
|
28.7
|
|
30.8
|
|
Property, plant and equipment, net
|
|
865.1
|
|
800.7
|
|
Intangible and other noncurrent assets
|
|
327.0
|
|
311.8
|
|
Total assets
|
|
$
|
1,651.9
|
|
$
|
1,624.8
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current portion of long-term debt
|
|
$
|
4.9
|
|
$
|
4.9
|
|
Other current liabilities
|
|
131.2
|
|
165.9
|
|
Long-term debt, net of current portion
|
|
712.5
|
|
718.0
|
|
Deferred income taxes and other noncurrent liabilities
|
|
101.1
|
|
96.3
|
|
Total stockholders' equity
|
|
702.2
|
|
639.7
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,651.9
|
|
$
|
1,624.8
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(in millions)
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
Net cash provided by operating activities
|
|
$
|
92.6
|
|
|
$
|
122.4
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
(43.8
|
)
|
|
(41.7
|
)
|
|
Other, net
|
|
(0.7
|
)
|
|
—
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(44.5
|
)
|
|
(41.7
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from revolving credit facility borrowings
|
|
31.0
|
|
|
—
|
|
|
Principal payments on revolving credit facility borrowings
|
|
(35.5
|
)
|
|
—
|
|
|
Principal payments on long-term debt
|
|
(1.2
|
)
|
|
(0.9
|
)
|
|
Dividends paid
|
|
(23.5
|
)
|
|
(22.4
|
)
|
|
Proceeds received from stock option exercises
|
|
0.6
|
|
|
2.1
|
|
|
Excess tax benefit (deficiency) from equity compensation awards
|
|
(0.1
|
)
|
|
0.1
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
(28.7
|
)
|
|
(21.1
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
7.4
|
|
|
(12.6
|
)
|
|
Net change in cash and cash equivalents
|
|
26.8
|
|
|
47.0
|
|
|
Cash and cash equivalents, beginning of the year
|
|
58.4
|
|
|
266.8
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
85.2
|
|
|
$
|
313.8
|
|
|
|
|
|
|
|
|
|
|
|
COMPASS MINERALS INTERNATIONAL, INC.
SEGMENT
INFORMATION (unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2016
|
|
Salt
|
|
Plant
Nutrition(1)
|
|
Corporate
and Other (2)
|
|
Total
|
|
Sales to external customers
|
|
$
|
292.1
|
|
$
|
51.1
|
|
$
|
2.5
|
|
|
$
|
345.7
|
|
Intersegment sales
|
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
|
—
|
|
Shipping and handling cost
|
|
|
83.0
|
|
|
6.4
|
|
|
−
|
|
|
|
89.4
|
|
Operating earnings (loss)
|
|
|
82.7
|
|
|
5.3
|
|
|
(13.7
|
)
|
|
|
74.3
|
|
Depreciation, depletion and amortization
|
|
|
10.7
|
|
|
7.9
|
|
|
1.3
|
|
|
|
19.9
|
|
Total assets
|
|
|
893.1
|
|
|
704.8
|
|
|
54.0
|
|
|
|
1,651.9
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2015
|
|
Salt
|
|
Plant
Nutrition
|
|
Corporate
and Other (2)
|
|
Total
|
|
Sales to external customers
|
|
$
|
316.7
|
|
$
|
73.6
|
|
$
|
2.7
|
|
|
$
|
393.0
|
|
Intersegment sales
|
|
|
—
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
|
—
|
|
Shipping and handling cost
|
|
|
94.5
|
|
|
7.4
|
|
|
−
|
|
|
|
101.9
|
|
Operating earnings (loss)
|
|
|
77.0
|
|
|
20.8
|
|
|
(13.1
|
)
|
|
|
84.7
|
|
Depreciation, depletion and amortization
|
|
|
10.9
|
|
|
7.0
|
|
|
1.2
|
|
|
|
19.1
|
|
Total assets
|
|
|
949.6
|
|
|
543.3
|
|
|
53.8
|
|
|
|
1,546.7
|
|
(1)
|
|
Plant nutrition segment assets include the investment in
Produquímica Indústria e Comércio S.A.
|
|
(2)
|
|
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.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160425006384/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
PressRelations@compassminerals.com