Compass Minerals (NYSE: CMP), a leading global provider of
essential minerals, today reported final fiscal 2024 third-quarter
results.
Unless otherwise noted, it should be assumed that time periods
referenced below are on a fiscal-year basis.
REPORTING UPDATE
On Oct. 29, 2024, Compass Minerals filed a Form 10-K/A and a
Form 10-Q/A correcting financial statements covering (i) unaudited
financial statements included in its Quarterly Report on Form 10-Q
for the quarterly period ended June 30, 2023, (ii) audited
financial statements included in its Annual Report on Form 10-K for
the period ended Sept. 30, 2023, (iii) unaudited financial
statements included in its Quarterly Report on Form 10-Q for the
quarterly period ended Dec. 31, 2023, and (iv) unaudited financial
statements included in its Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2024. With the completion of those
restatements, the company has filed its Form 10-Q for the quarterly
period ended June 30, 2024.
The final results for the third quarter of 2024 are consistent
in all material respects with the preliminary results disclosed on
Sept. 17, 2024. A complete set of press release financial
highlights follows for the quarter ended June 30, 2024, including
comparative quarterly and year-to-date amounts.
The company is currently in the process of finalizing financial
results for 2024 and completing its budget for 2025. As a result of
this timing, management believes that it would be unable to comment
on most items of current interest to the investment community and
therefore the company will forego its conference call to discuss
the results for the third quarter of 2024. The company expects to
resume the regular cadence of quarterly earnings calls beginning
with the reporting of results for the fourth quarter of 2024.
About Compass Minerals
Compass Minerals (NYSE: CMP) is a leading global provider of
essential minerals focused on safely delivering where and when it
matters to help solve nature’s challenges for customers and
communities. The company’s salt products help keep roadways safe
during winter weather and are used in numerous other consumer,
industrial, chemical and agricultural applications. Its plant
nutrition products help improve the quality and yield of crops,
while supporting sustainable agriculture. Additionally, it is
working to develop a long-term fire-retardant business. Compass
Minerals operates 12 production and packaging facilities with
nearly 2,000 employees throughout the U.S., Canada and the U.K.
Visit compassminerals.com for more information about the company
and its products.
Forward-Looking Statements and Other
Disclaimers
This press release may contain forward-looking statements,
including, without limitation, statements about timing of future
earnings calls. Forward-looking statements are those that predict
or describe future events or trends and that do not relate solely
to historical matters. The company uses 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
without limitation (i) weather conditions, (ii) inflation, the cost
and availability of transportation for the distribution of the
company’s products and foreign exchange rates, (iii) pressure on
prices and impact from competitive products, (iv) any inability by
the company to successfully implement its strategic priorities or
its cost-saving or enterprise optimization initiatives, and (v) the
risk that the company may not realize the expected financial or
other benefits from its ownership of Fortress North America. For
further information on these and other risks and uncertainties that
may affect the company’s business, see the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the company’s Amended Annual
Report on Form 10-K/A for the period ended Sept. 30, 2023, its
Amended Quarterly Reports on Form 10-Q/A for the quarters ended
Dec. 31, 2023 and Mar. 31, 2024, and its Quarterly Report on Form
10-Q for the quarter ended June 30, 2024 filed with the SEC, as
well as the company's other SEC filings. The company undertakes no
obligation to update any forward-looking statements made in this
press release to reflect future events or developments, except as
required by law. 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
In addition to using U.S. generally accepted accounting
principles (“GAAP”) financial measures, management uses a variety
of non-GAAP financial measures described below 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.
Management uses EBITDA, EBITDA adjusted for items which
management believes are not indicative of the company’s ongoing
operating performance (“Adjusted EBITDA”) and EBITDA margin 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
earnings. Management also uses adjusted operating earnings,
adjusted operating margin, adjusted net earnings, and adjusted net
earnings per diluted share, which eliminate the impact of certain
items that management does not consider indicative of underlying
operating performance. The presentation of these measures should
not be construed as an inference that future results will be
unaffected by unusual or non-recurring items. Management believes
these non-GAAP financial measures provide management and investors
with additional information that is helpful when evaluating
underlying performance. EBITDA and Adjusted EBITDA exclude interest
expense, income taxes and depreciation, depletion and amortization,
each of which are an essential element of the company’s cost
structure and cannot be eliminated. In addition, Adjusted EBITDA
and Adjusted EBITDA margin exclude certain cash and non-cash items,
including stock-based compensation, impairment charges and certain
restructuring charges. Consequently, any measure that excludes
these elements has material limitations. The non-GAAP financial
measures used by management should not be considered in isolation
or as a substitute for net earnings, operating earnings, cash flows
or other financial data prepared in accordance with GAAP or as a
measure of overall profitability or liquidity. These measures are
not necessarily comparable to similarly titled measures of other
companies due to potential inconsistencies in the method of
calculation. The calculation of non-GAAP financial measures as used
by management is set forth in the following tables. All margin
numbers are defined as the relevant measure divided by sales. The
company does not provide a reconciliation of forward-looking
non-GAAP financial measures to the most directly comparable
financial measures calculated and reported in accordance with GAAP,
as the company is unable to estimate significant non-recurring,
unusual items and/or distinct non-core initiatives without
unreasonable effort. The amounts and timing of these items are
uncertain and could be material to the company’s results.
Adjusted operating earnings, adjusted operating earnings margin,
adjusted net earnings (loss), and adjusted net earnings (loss) per
diluted share are presented as supplemental measures of the
company’s performance. Management believes these measures provide
management and investors with additional information that is
helpful when evaluating underlying performance and comparing
results on a year-over-year normalized basis. These measures
eliminate the impact of certain items that management does not
consider indicative of underlying operating performance. These
adjustments are itemized below. Adjusted net earnings (loss) per
diluted share is adjusted net earnings (loss) divided by weighted
average diluted shares outstanding. You are encouraged to evaluate
the adjustments itemized above and the reasons management considers
them appropriate for supplemental analysis. In evaluating these
measures you should be aware that in the future the company may
incur expenses that are the same as or similar to some of the
adjustments presented below.
Special Items Impacting the
Three Months Ended June 30, 2024
(unaudited, in millions, except
per share data)
Item Description
Segment
Line Item
Amount
Tax Effect(1)
After Tax
EPS Impact
Restructuring charges(2)
Corporate and Other
Other operating expense
$
1.5
$
—
$
1.5
$
0.04
Total
$
1.5
$
—
$
1.5
$
0.04
Special Items Impacting the
Nine Months Ended June 30, 2024
(unaudited, in millions, except
per share data)
Item Description
Segment
Line Item
Amount
Tax Effect(1)
After Tax
EPS Impact
Restructuring charges(2)
Corporate and Other
Other operating expense
$
16.2
$
—
$
16.2
$
0.39
Restructuring charges(2)
Salt
COGS and Other operating expense
0.4
—
0.4
0.01
Restructuring charges(2)
Plant Nutrition
COGS and Other operating expense
0.6
—
0.6
0.01
Impairments
Corporate and Other
COGS and Loss on impairments
124.8
—
124.8
3.02
Goodwill impairment
Plant Nutrition
Loss on impairments
51.0
—
51.0
1.23
Total
$
193.0
$
—
$
193.0
$
4.66
(1)
There were no substantial income tax benefits related to these
items given the U.S. valuation allowances on deferred tax assets.
(2)
Restructuring charges do not include certain reductions in
stock-based compensation associated with forfeitures stemming from
the restructuring activities.
Reconciliation for Adjusted
Operating Earnings
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Operating earnings (loss)
$
5.9
$
(0.6
)
$
(87.0
)
$
75.2
Restructuring charges(1)
1.5
2.2
17.2
5.5
Loss on impairments(2)
—
—
175.8
—
Accrued loss and legal costs related to
SEC investigation(3)
—
—
—
(0.1
)
Adjusted operating earnings
$
7.4
$
1.6
$
106.0
$
80.6
Sales
202.9
207.6
908.6
971.1
Operating margin
2.9
%
(0.3
)%
(9.6
)%
7.7
%
Adjusted operating margin
3.6
%
0.8
%
11.7
%
8.3
%
(1)
The company incurred severance and related charges for reductions
in workforce and changes to executive leadership and additional
restructuring costs related to the termination of the Company’s
lithium development project.
(2)
The company recognized impairments of goodwill, long-lived assets
and inventory related to Fortress; and goodwill related to Plant
Nutrition for the nine months ended June 30, 2024. The company also
recognized the impairment of long-lived assets related to the
termination of the lithium development project for the nine months
ended June 30, 2024. Impairments of long-lived assets and goodwill
are included in loss on impairments, while the impairment of
inventory is included in product cost, both on the Consolidated
Statements of Operations.
(3)
The company recognized reimbursements related to the settled SEC
investigation.
Reconciliation for Adjusted
Net (Loss) Earnings
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Net (loss) earnings
$
(43.6
)
$
36.4
$
(157.8
)
$
14.5
Restructuring charges(1)
1.5
2.1
17.2
5.4
Loss on impairments(2)
—
—
175.8
—
Accrued loss and legal costs related to
SEC investigation(3)
—
—
—
(0.1
)
Adjusted net (loss) earnings
$
(42.1
)
$
38.5
$
35.2
$
19.8
Net (loss) earnings per diluted share
$
(1.05
)
$
0.88
$
(3.83
)
$
0.35
Adjusted net (loss) earnings per diluted
share
$
(1.01
)
$
0.93
$
0.83
$
0.48
Weighted-average common shares outstanding
(in thousands):
Diluted
41,342
41,142
41,284
40,663
(1)
The company incurred severance and related charges for reductions
in workforce and changes to executive leadership and additional
restructuring costs related to the termination of the Company’s
lithium development project. Charges for the three and nine months
ended June 30, 2024 were $1.5 million and $17.2 million,
respectively. Charges for the three and nine months ended June 30,
2023 were $2.2 million and $5.5 million ($2.1 million and $5.4
million net of tax), respectively.
(2)
The company recognized impairments of goodwill, long-lived assets
and inventory related to Fortress; and goodwill related to Plant
Nutrition for the three and nine months ended June 30, 2024. The
company also recognized the impairment of long-lived assets related
to the termination of the lithium development project for the nine
months ended June 30, 2024.
(3)
The company recognized reimbursements related to the settled SEC
investigation.
Reconciliation for EBITDA and
Adjusted EBITDA
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Net (loss) earnings
$
(43.6
)
$
36.4
$
(157.8
)
$
14.5
Interest expense
17.2
14.3
50.4
42.4
Income tax expense (benefit)
32.7
(42.8
)
20.4
24.2
Depreciation, depletion and
amortization
26.1
24.3
78.4
72.7
EBITDA
32.4
32.2
(8.6
)
153.8
Adjustments to EBITDA:
Stock-based compensation - non-cash
(0.7
)
3.5
6.3
17.2
Interest income
(0.2
)
(1.7
)
(0.8
)
(4.7
)
(Gain) loss on foreign exchange
(0.5
)
2.3
(1.1
)
4.6
Gain from remeasurement of equity method
investment
—
(12.6
)
—
(12.6
)
Restructuring charges(1)
1.5
2.2
17.2
5.9
Loss on impairments(2)
—
—
175.8
—
Accrued loss and legal costs related to
SEC investigation(3)
—
—
—
(0.1
)
Other expense, net
0.3
2.7
1.9
3.7
Adjusted EBITDA
$
32.8
$
28.6
$
190.7
$
167.8
(1)
The company incurred severance and related charges for reductions
in workforce and changes to executive leadership and additional
restructuring costs related to the termination of the Company’s
lithium development project.
(2)
The company recognized impairments of goodwill, long-lived assets
and inventory related to Fortress; and goodwill related to Plant
Nutrition for the three and nine months ended June 30, 2024. The
company also recognized the impairment of long-lived assets related
to the termination of the lithium development project for the nine
months ended June 30, 2024.
(3)
The company recognized reimbursements related to the settled SEC
investigation.
Salt Segment
Performance
(unaudited, in millions, except
for sales volumes and prices per short ton)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Sales
$
160.6
$
155.5
$
745.3
$
824.1
Operating earnings
$
25.9
$
21.7
$
142.6
$
141.9
Operating margin
16.1
%
14.0
%
19.1
%
17.2
%
Adjusted operating earnings(1)
$
25.9
$
22.2
$
143.0
$
143.4
Adjusted operating margin(1)
16.1
%
14.3
%
19.2
%
17.4
%
EBITDA(1)
$
41.6
$
35.9
$
189.7
$
184.8
EBITDA(1) margin
25.9
%
23.1
%
25.5
%
22.4
%
Adjusted EBITDA(1)
$
41.6
$
36.4
$
190.1
$
186.3
Adjusted EBITDA(1) margin
25.9
%
23.4
%
25.5
%
22.6
%
Sales volumes (in thousands of tons):
Highway deicing
1,090
1,070
6,401
7,886
Consumer and industrial
393
421
1,403
1,529
Total Salt..
1,483
1,491
7,804
9,415
Average prices (per ton):
Highway deicing
$
77.20
$
73.86
$
73.60
$
68.86
Consumer and industrial
$
194.35
$
181.66
$
195.37
$
183.81
Total Salt
$
108.27
$
104.28
$
95.50
$
87.53
(1)
Non-GAAP financial measure. Reconciliations follow in these tables.
Reconciliation for Salt
Segment Adjusted Operating Earnings
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Reported GAAP segment operating
earnings
$
25.9
$
21.7
$
142.6
$
141.9
Restructuring charges(1)
—
0.5
0.4
1.5
Segment adjusted operating earnings
$
25.9
$
22.2
$
143.0
$
143.4
Segment sales
160.6
155.5
745.3
824.1
Segment operating margin
16.1
%
14.0
%
19.1
%
17.2
%
Segment adjusted operating margin
16.1
%
14.3
%
19.2
%
17.4
%
(1)
The company incurred severance and related charges related to a
reduction of its workforce.
Reconciliation for Salt
Segment EBITDA and Adjusted EBITDA
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Reported GAAP segment operating
earnings
$
25.9
$
21.7
$
142.6
$
141.9
Depreciation, depletion and
amortization
15.7
14.2
47.1
42.9
Segment EBITDA
$
41.6
$
35.9
$
189.7
$
184.8
Restructuring charges(1)
—
0.5
0.4
1.5
Segment adjusted EBITDA
$
41.6
$
36.4
$
190.1
$
186.3
Segment sales
160.6
155.5
745.3
824.1
Segment EBITDA margin
25.9
%
23.1
%
25.5
%
22.4
%
Segment adjusted EBITDA margin
25.9
%
23.4
%
25.5
%
22.6
%
(1)
The company incurred severance and related charges related to a
reduction of its workforce.
Plant Nutrition Segment
Performance
(unaudited, dollars in millions,
except for sales volumes and prices per short ton)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Sales
$
38.8
$
47.5
$
138.6
$
136.8
Operating (loss) earnings
$
(1.4
)
$
2.5
$
(56.7
)
$
12.8
Operating margin
(3.6
)%
5.3
%
(40.9
)%
9.4
%
Adjusted operating (loss) earnings(1)
$
(1.4
)
$
3.5
$
(5.1
)
$
14.2
Adjusted operating margin(1)
(3.6
)%
7.4
%
(3.7
)%
10.4
%
EBITDA(1)
$
7.2
$
10.7
$
(31.0
)
$
37.4
EBITDA(1) margin
18.6
%
22.5
%
(22.4
)%
27.3
%
Adjusted EBITDA(1)
$
7.2
$
11.7
$
20.6
$
38.8
Adjusted EBITDA(1) margin
18.6
%
24.6
%
14.9
%
28.4
%
Sales volumes (in thousands of tons)
56
63
205
168
Average price (per ton)
$
691.27
$
751.58
$
676.11
$
813.56
(1)
Non-GAAP financial measure. Reconciliations follow in these tables.
Reconciliation for Plant
Nutrition Segment Adjusted Operating (Loss) Earnings
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Reported GAAP segment operating (loss)
earnings
$
(1.4
)
$
2.5
$
(56.7
)
$
12.8
Restructuring charges(1)
—
1.0
0.6
1.4
Loss on goodwill impairment(2)
—
—
51.0
—
Segment adjusted operating (loss)
earnings
$
(1.4
)
$
3.5
$
(5.1
)
$
14.2
Segment sales
38.8
47.5
138.6
136.8
Segment operating margin
(3.6
)%
5.3
%
(40.9
)%
9.4
%
Segment adjusted operating margin
(3.6
)%
7.4
%
(3.7
)%
10.4
%
(1)
The company incurred severance and related charges related to a
reduction of its workforce.
(2)
The company recognized a goodwill impairment during the nine months
ended June 30, 2024.
Reconciliation for Plant
Nutrition Segment EBITDA and Adjusted EBITDA
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Reported GAAP segment operating (loss)
earnings
$
(1.4
)
$
2.5
$
(56.7
)
$
12.8
Depreciation, depletion and
amortization
8.6
8.2
25.7
24.6
Segment EBITDA
$
7.2
$
10.7
$
(31.0
)
$
37.4
Restructuring charges(1)
—
1.0
0.6
1.4
Loss on goodwill impairment(2)
—
—
51.0
—
Segment adjusted EBITDA
$
7.2
$
11.7
$
20.6
$
38.8
Segment sales
38.8
47.5
138.6
136.8
Segment EBITDA margin
18.6
%
22.5
%
(22.4
)%
27.3
%
Segment adjusted EBITDA margin
18.6
%
24.6
%
14.9
%
28.4
%
(1)
The company incurred severance and related charges related to a
reduction of its workforce.
(2)
The company recognized a goodwill impairment during the nine months
ended June 30, 2024.
COMPASS MINERALS
INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited, in millions,
except share and per-share data)
Three Months Ended June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Sales.
$
202.9
$
207.6
$
908.6
$
971.1
Shipping and handling cost
53.2
53.8
255.1
291.3
Product cost
117.1
119.2
478.0
490.0
Gross profit
32.6
34.6
175.5
189.8
Selling, general and administrative
expenses
27.5
33.0
106.5
109.2
Loss on impairments
—
—
173.4
—
Other operating (income) expense
(0.8
)
2.2
(17.4
)
5.4
Operating earnings (loss)
5.9
(0.6
)
(87.0
)
75.2
Other (income) expense:
Interest income
(0.2
)
(1.7
)
(0.8
)
(4.7
)
Interest expense
17.2
14.3
50.4
42.4
(Gain) loss on foreign exchange
(0.5
)
2.3
(1.1
)
4.6
Net loss in equity investee
—
0.8
—
3.1
Gain from remeasurement of equity method
investment
—
(12.6
)
—
(12.6
)
Other expense, net
0.3
2.7
1.9
3.7
(Loss) earnings before income taxes
(10.9
)
(6.4
)
(137.4
)
38.7
Income tax expense (benefit)
32.7
(42.8
)
20.4
24.2
Net (loss) earnings
$
(43.6
)
$
36.4
$
(157.8
)
$
14.5
Basic net (loss) earnings per common
share
$
(1.05
)
$
0.88
$
(3.83
)
$
0.35
Diluted net (loss) earnings per common
share
$
(1.05
)
$
0.88
$
(3.83
)
$
0.35
Weighted-average common shares outstanding
(in thousands):(1)
Basic
41,342
41,142
41,284
40,663
Diluted
41,342
41,142
41,284
40,663
(1)
Weighted participating securities include RSUs and PSUs that
receive non-forfeitable dividends and consist of 632,000 and
698,000 weighted participating securities for the three and nine
months ended June 30, 2024, respectively, and 453,000 and 469,000
weighted participating securities for the three and nine months
ended June 30, 2023, respectively.
COMPASS MINERALS
INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
June 30,
Sept. 30,
2024
2023
ASSETS
Cash and cash equivalents
$
12.8
$
38.7
Receivables, net
92.3
129.3
Inventories
407.5
399.5
Other current assets
34.4
33.4
Property, plant and equipment, net
787.9
852.5
Intangible and other noncurrent assets
260.3
363.5
Total assets
$
1,595.2
$
1,816.9
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current portion of long-term debt
$
6.3
$
5.0
Other current liabilities
182.1
269.6
Long-term debt, net of current portion
868.8
800.3
Deferred income taxes and other noncurrent
liabilities
185.9
221.0
Total stockholders' equity
352.1
521.0
Total liabilities and stockholders'
equity
$
1,595.2
$
1,816.9
COMPASS MINERALS
INTERNATIONAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Nine Months Ended June
30,
2024
2023
Net cash provided by operating
activities
$
27.1
$
126.9
Cash flows from investing activities:
Capital expenditures
(93.3
)
(84.5
)
Acquisition of business, net of cash
acquired
—
(18.9
)
Other, net
(1.7
)
(2.5
)
Net cash used in investing activities
(95.0
)
(105.9
)
Cash flows from financing activities:
Proceeds from revolving credit facility
borrowings
359.6
66.7
Principal payments on revolving credit
facility borrowings
(289.2
)
(218.2
)
Proceeds from issuance of long-term
debt
69.4
237.5
Principal payments on long-term debt
(70.3
)
(311.7
)
Payments for contingent consideration
(9.1
)
—
Net proceeds from private placement of
common stock
—
240.7
Dividends paid
(12.7
)
(18.7
)
Deferred financing costs
(2.1
)
(3.9
)
Shares withheld to satisfy employee tax
obligations
(2.0
)
(1.6
)
Other, net
(1.4
)
(0.9
)
Net cash provided by (used in) financing
activities
42.2
(10.1
)
Effect of exchange rate changes on cash
and cash equivalents
(0.2
)
1.0
Net change in cash and cash
equivalents
(25.9
)
11.9
Cash and cash equivalents, beginning of
the year
38.7
46.1
Cash and cash equivalents, end of
period
$
12.8
$
58.0
COMPASS MINERALS
INTERNATIONAL, INC.
SEGMENT INFORMATION
(unaudited, in
millions)
Three Months Ended June 30,
2024
Salt
Plant Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
160.6
$
38.8
$
3.5
$
202.9
Intersegment sales
—
2.8
(2.8
)
—
Shipping and handling cost
48.2
5.0
—
53.2
Operating earnings (loss)(2)(3)
25.9
(1.4
)
(18.6
)
5.9
Depreciation, depletion and
amortization
15.7
8.6
1.8
26.1
Total assets (as of end of period)
1,013.3
408.1
173.8
1,595.2
Three Months Ended June 30,
2023
Salt
Plant Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
155.5
$
47.5
$
4.6
$
207.6
Intersegment sales
—
2.8
(2.8
)
—
Shipping and handling cost
48.2
5.6
—
53.8
Operating earnings (loss)(3)
21.7
2.5
(24.8
)
(0.6
)
Depreciation, depletion and
amortization
14.2
8.2
1.9
24.3
Total assets (as of end of period)
970.1
477.1
286.3
1,733.5
Nine Months Ended June 30, 2024
Salt
Plant Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
745.3
$
138.6
$
24.7
$
908.6
Intersegment sales
—
6.6
(6.6
)
—
Shipping and handling cost
235.9
18.6
0.6
255.1
Operating earnings (loss)(2)(3)(4)
142.6
(56.7
)
(172.9
)
(87.0
)
Depreciation, depletion and
amortization
47.1
25.7
5.6
78.4
Nine Months Ended June 30, 2023
Salt
Plant Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
824.1
$
136.8
$
10.2
$
971.1
Intersegment sales
—
7.1
(7.1
)
—
Shipping and handling cost
274.9
16.4
—
291.3
Operating earnings (loss)(2)(3)
141.9
12.8
(79.5
)
75.2
Depreciation, depletion and
amortization
42.9
24.6
5.2
72.7
(1)
Corporate and other includes corporate entities, records management
operations, the Fortress fire retardant business, equity method
investments, lithium costs 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, lithium-related expenditures,
as well as costs for the human resources, information technology,
legal and finance functions.
(2)
Corporate operating results were impacted by net gains of $0.9
million and $23.1 million related to the decline in the valuation
of the Fortress contingent consideration for the three and nine
months ended June 30, 2024, respectively. Corporate operating
results also include net reimbursements related to the settled SEC
investigation of $0.1 million for the nine months ended June 30,
2023.
(3)
The company continued to take steps to align its cost structure to
its current business needs. These initiatives impacted Corporate
operating results and resulted in net severance and related charges
for reductions in workforce and changes to executive leadership and
additional restructuring costs related to the termination of the
Company’s lithium development project of $1.5 million and $17.2
million for the three and nine months ended June 30, 2024,
respectively, and $2.2 million and $5.5 million for the three and
nine months ended June 30, 2023, respectively.
(4)
The company recognized impairments of goodwill, long-lived assets
and inventory related to Fortress; and goodwill related to Plant
Nutrition of $175.8 million during the nine months ended June 30,
2024, which impacted operating results. The company also recognized
the impairment of long-lived assets related to the termination of
the lithium development project for the nine months ended June 30,
2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030134038/en/
Investor Contact Brent Collins Vice President, Treasurer
& Investor Relations +1.913.344.9111
InvestorRelations@compassminerals.com
Media Contact Rick Axthelm Chief Public Affairs and
Sustainability Officer +1.913.344.9198
MediaRelations@compassminerals.com
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