Compass Minerals (NYSE: CMP), a leading global provider of
essential minerals, today reported fiscal 2022 second-quarter
results.
Fiscal 2022 Second-Quarter and Recent
Highlights
- Achieved revenue of $449 million, an increase of 5% year over
year; profitability tempered by higher distribution and production
costs
- Plant Nutrition pricing increased year over year, reflecting
global fertilizer supply-demand conditions
- Announced substantial expansion of anticipated annual lithium
production capacity to approximately 30 to 40 kMT lithium carbonate
equivalent (LCE) from prior range of approximately 20 to 25 kMT
LCE
- Completed the sale of the company's South America chemicals
business in April 2022 for cash proceeds of approximately $51
million; proceeds applied toward debt reduction
- Also in April 2022, received the maximum earnout payment of
approximately $18.5 million associated with the July 2021 sale of
the company's South America specialty plant nutrition business;
proceeds applied toward debt reduction
All amounts in this press release represent results from
continuing operations, except for amounts pertaining to the
condensed consolidated statements of cash flows which include
results from South America and North American micronutrient
discontinued operations, unless otherwise noted.
Results
(From continuing operations; in
millions, except per share data)
Three Months Ended
March 31, 2022
Six Months Ended March
31, 2022
Revenue
$
448.5
$
780.0
Operating earnings
20.0
40.4
Adjusted EBITDA1
64.8
123.2
Net loss
(29.0
)
(21.1
)
Net loss per diluted share
(0.85
)
(0.62
)
Adjusted net earnings1
11.6
24.6
Adjusted net earnings1 per diluted
share
0.33
0.71
1 Non-GAAP financial measure.
Reconciliations to the most directly comparable GAAP financial
measure are provided in tables at the end of this press
release.
“Compass Minerals delivered year-over-year revenue growth during
the quarter, in large part enabled by our expanded Salt commitments
and strong Plant Nutrition pricing. Unfortunately, intensifying
inflationary pressures – particularly related to escalating fuel
surcharges – and ongoing SOP production challenges continued to
compress profitability to levels below what I believe is our
normalized earnings potential,” said Kevin S. Crutchfield,
president and CEO. “We are focused on mitigating the impact of
these challenges to the extent possible through continued pricing
actions, executing a successful North America highway salt bid
season, balancing production volumes with expected demand to
improve margin capture, and targeted productivity initiatives.
Despite these persistent cost headwinds, we continue to advance our
position as a premier essential minerals company through our
efforts to expand into select, high-value adjacent markets to
create long-term value for our shareholders.”
Fiscal 2022 second-quarter consolidated revenue grew 5% year
over year, driven primarily by an increase in highway deicing sales
volumes of 6%, an 8% improvement in consumer and industrial
(C&I) sales volumes, and higher Plant Nutrition and C&I
pricing. Consolidated operating earnings for the fiscal 2022 second
quarter decreased $56.0 million to $20.0 million year over year,
primarily driven by higher distribution and production costs, and
includes an accrued contingent loss and legal costs related to the
SEC investigation. Adjusted EBITDA was lower by $47.7 million over
the same period, to $64.8 million, primarily due to higher
distribution and production costs.
Salt Segment Summary
Salt segment fiscal 2022 second-quarter revenue totaled $391.3
million, up 6% year over year, reflecting a 6% increase in sales
volumes primarily driven by higher North America highway bid season
commitments. Both the highway deicing and C&I businesses
delivered volume growth during the period, amid average snow events
in the company's primary North American markets. Salt segment
average sales price was flat year over year with a 3% decline in
highway deicing average sales price partially offset by a 9%
increase in C&I average sales price. Broad-based price
increases were implemented across most C&I product categories,
primarily in response to the high-inflation environment.
Salt segment operating earnings in the fiscal 2022 second
quarter decreased $42.3 million to $49.3 million year over year,
while EBITDA declined $44.1 million to $65.5 million over the same
period. Salt segment operating margin was 13% in the fiscal 2022
second quarter, down from 25% in the prior year, and EBITDA margin
decreased to 17% from 30% over the same period, primarily due to
higher distribution and production costs and lower highway deicing
pricing.
Winter Weather Effect
As previously announced, Compass Minerals reported 114 snow
events1 during the fiscal 2022 second quarter in the 11 cities the
company tracks, compared to 100 snow events during the prior-year
comparable period and the ten-year average of 104 events. The
company's estimates of the impact of these variations from average
winter weather on fiscal 2022 second-quarter and first-half sales
and operating earnings are detailed below.
1 The number of snow events reported may not directly correlate
to Compass Minerals’ results due to a variety of factors, including
the relative significance to the company of the cities represented,
customer inventory levels and the timing of snow events. The snow
event data referenced should be used only as an indicator of the
year-to-year variations in winter weather conditions in these
cities.
Estimated Effect of Winter
Weather on Salt Segment Performance
(dollars in millions)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Favorable (unfavorable) to average
weather:
Sales
$(1) to $(5)
$28 to $33
$(27) to $(31)
$(32) to $(37)
Operating earnings
$(0) to $(3)
$11 to $14
$(5) to $(11)
$(11) to $(13)
Plant Nutrition Segment
Summary
Plant Nutrition segment fiscal 2022 second-quarter revenue
totaled $54.3 million, up 1% year over year, driven by a 28%
increase in average sales price and largely offset by lower sales
volumes. Fiscal 2022 second-quarter operating earnings decreased
$0.9 million year over year to $4.4 million, while EBITDA totaled
$13.2 million compared to $14.1 million in the prior-year period,
as favorable pricing was offset by higher per-unit costs and lower
production volumes. Fiscal 2022 second-quarter operating margin was
8% compared to 10% in the prior year and EBITDA margin was 24%
compared to 26% in the prior year.
Cash Flow
Net cash provided from operating activities amounted to $145.9
million for the six months ended March 31, 2022, down $41.0 million
year over year.
Net cash used in investing activities was $88.4 million for the
six months ended March 31, 2022, up $49.2 million year over year,
primarily driven by payments related to the previously announced
acquisition of an additional ownership interest in Fortress North
America, a next-generation fire retardant company, and a $3.3
million increase in capital spending during the period compared to
the prior-year period.
Net cash used by financing activities was $25.9 million for the
six months ended March 31, 2022, down $92.3 million year over year,
reflecting a combination of lower cash flows from operations and
higher investment activities, partially offset by a reduction in
dividends paid.
The company ended the quarter with $312.2 million of liquidity,
which includes $55.0 million in cash and cash equivalents and
$257.2 million of availability under its $300 million revolving
credit facility.
Outlook
The company has lowered its estimate of fiscal 2022 consolidated
adjusted EBITDA to a range of $170 million to $200 million from its
previously announced range of $200 million to $235 million, largely
due to escalating fuel surcharges across all transportation modes
in its Salt segment and continued SOP production yield challenges.
These impacts are expected to only be partially offset by higher
pricing in Plant Nutrition and targeted productivity
initiatives.
FISCAL 2022 Guidance (for
continuing operations):
2H FY22
FY22
Consolidated
Adjusted EBITDA
$170 million to $200 million
Salt Segment
Volume
12.2 million to 12.7 million
tons
Revenue
$300 million to $340 million
EBITDA
$60 million to $75 million
Plant Nutrition Segment
Volume
270,000 to 290,000 tons
Revenue
$95 million to $110 million
EBITDA
$25 million to $35 million
Corporate
Corporate and other expense1
$65 million to $70 million
Interest expense
$55 million to $60 million
Depreciation, depletion and
amortization
$110 million to $115 million
Capital expenditures
$100 million to $110 million
Effective tax rate2
~30%
1 Excludes depreciation, amortization and
stock-based compensation.
2 Excludes tax expense from valuation
allowance.
Conference Call
Compass Minerals will discuss its results on a conference call
tomorrow morning, Friday, May 6, at 8:30 a.m. ET. To access the
conference call, interested parties should visit the company’s
website at compassminerals.com or dial 1-888-550-5768. Callers must
provide the conference ID number 3632674. Outside of the U.S. and
Canada, callers may dial 1-646-960-0469. An audio replay of the
call will be available on the company’s website.
A corporate presentation with fiscal 2022 second-quarter
performance results will also be available at
investors.compassminerals.com.
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, the company
is pursuing development of a sustainable lithium brine resource to
support the North American battery market and is a minority owner
of Fortress North America, a next-generation fire retardant
company. 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 within
the meaning of the Private Securities Litigation Reform Act of
1995, including, without limitation, statements about the company's
lithium production capacity; earnings potential; ability to
mitigate challenges; bid season; productivity initiatives; efforts
to expand and create value; fuel surcharges; production challenges;
ability to improve margin capture; pricing; and the company’s
outlook for the second half of fiscal 2022 and fiscal 2022,
including its expectations regarding adjusted EBITDA, volume,
revenue, EBITDA, corporate and other expense, interest expense,
depreciation, depletion and amortization, capital expenditures and
tax rates. 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. 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, (v) the risk that the
company may not realize the expected financial or other benefits
from the proposed development of its lithium mineral resource or
its investment in Fortress North America, and (vi) impacts of the
COVID-19 pandemic. 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 Transition Report on Form 10-KT for the transition period
ended Sept. 30, 2021 and its Quarterly Reports on Form 10-Q for the
quarters ended Dec. 31, 2021 and March 31, 2022 filed or to be
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.
The company has completed an initial assessment to define the
lithium resource at Compass Minerals’ existing operations in
accordance with applicable SEC regulations, including Subpart 1300.
Pursuant to Subpart 1300, mineral resources are not mineral
reserves and do not have demonstrated economic viability. The
company’s mineral resource estimates, including estimates of the
lithium resource, are based on many factors, including assumptions
regarding extraction rates and duration of mining operations, and
the quality of in-place resources. For example, the process
technology for commercial extraction of lithium from brines with
low lithium and high impurity (primarily magnesium) is still
developing. Accordingly, there is no certainty that all or any part
of the lithium mineral resource identified by the company’s initial
assessment will be converted into an economically extractable
mineral reserve.
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 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. 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 or
unusual items without unreasonable effort. The amounts and timing
of these items are uncertain and could be material to the company’s
results.
Reconciliation for Adjusted
Net Earnings
(unaudited, in millions)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Net (loss) earnings from continuing
operations
$
(29.0
)
$
41.9
$
(21.1
)
$
56.6
Executive transition costs, net of
tax(1)
0.4
—
3.2
—
Accrued loss and legal costs related to
SEC investigation, net of tax(2)
12.2
2.0
14.5
3.2
Deferred tax valuation allowance(3)
28.0
—
.
28.0
—
Adjusted net earnings from continuing
operations
$
11.6
$
43.9
$
24.6
$
59.8
Net (loss) earnings from continuing
operations per diluted share
$
(0.85
)
$
1.21
$
(0.62
)
$
1.64
Adjusted net earnings from continuing
operations per diluted share
$
0.33
$
1.27
$
0.71
$
1.73
Weighted-average common shares outstanding
(in thousands):
Diluted
34,113
34,012
34,100
33,994
(1) The company incurred severance and
other costs related to executive transition of $0.5 million and
$3.8 million ($0.4 million and $3.2 million net of tax) for the
three and six months ended March 31, 2022, respectively.
(2) The company booked a contingent loss
accrual and incurred costs related to the ongoing SEC investigation
of $13.6 million and $2.8 million ($12.2 million and $2.0 million
net of tax) in the three months ended March 31, 2022 and 2021,
respectively, and $16.7 million and $4.4 million ($14.5 million and
$3.2 million net of tax) for the six months ended March 31, 2022
and 2021, respectively.
(3) The company recognized a valuation
allowance for certain deferred tax assets due to their uncertainty
of being realized.
Reconciliation for Adjusted
Operating Earnings
(unaudited, in millions)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Operating earnings
$
20.0
$
76.0
$
40.4
$
104.1
Executive transition costs(1)
0.5
—
3.8
—
Accrued loss and legal costs related to
SEC investigation(2)
13.6
2.8
16.7
4.4
Adjusted operating earnings
$
34.1
$
78.8
$
60.9
$
108.5
Sales
448.5
425.5
780.0
734.7
Operating margin
4.5
%
17.9
%
5.2
%
14.2
%
Adjusted operating margin
7.6
%
18.5
%
7.8
%
14.8
%
(1) The company incurred severance and
other costs related to executive transition.
(2) The company recorded a contingent loss
accrual and incurred costs related to the ongoing SEC
investigation.
Reconciliation for EBITDA and
Adjusted EBITDA
(unaudited, in millions)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Net (loss) earnings from continuing
operations
$
(29.0
)
$
41.9
$
(21.1
)
$
56.6
Interest expense
13.9
15.7
27.8
31.2
Income tax expense
30.4
16.0
29.2
7.6
Depreciation, depletion and
amortization
27.9
29.9
56.2
60.0
EBITDA from continuing operations
43.2
103.5
92.1
155.4
Adjustments to EBITDA from continuing
operations:
Stock-based compensation - non cash
4.5
3.8
7.7
5.9
Loss on foreign exchange
3.0
2.1
2.6
8.3
Executive transition costs(1)
0.5
—
4.3
—
Accrued loss and legal costs related to
SEC investigation(2)
13.6
2.8
16.7
4.4
Other expense (income), net
—
0.3
(0.2
)
0.5
Adjusted EBITDA from continuing
operations
64.8
112.5
123.2
174.5
Adjusted EBITDA from discontinued
operations
7.3
10.7
15.9
36.4
Adjusted EBITDA including discontinued
operations
$
72.1
$
123.2
$
139.1
$
210.9
(1) The company incurred severance and
other costs related to executive transition.
(2) The company recorded a contingent loss
accrual and incurred costs related to the ongoing SEC
investigation.
Salt Segment
Performance
(unaudited, in millions, except
for sales volumes and prices per short ton)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Sales
$
391.3
$
369.0
$
665.2
$
597.5
Operating earnings
$
49.3
$
91.6
$
88.7
$
136.1
Operating margin
12.6
%
24.8
%
13.3
%
22.8
%
EBITDA(1)
$
65.5
$
109.6
$
121.1
$
171.5
EBITDA(1) margin
16.7
%
29.7
%
18.2
%
28.7
%
Sales volumes (in thousands of tons):
Highway deicing
4,815
4,550
7,622
6,754
Consumer and industrial
516
478
1,149
1,057
Total salt
5,331
5,028
8,771
7,811
Average sales prices (per ton):
Highway deicing
$
62.31
$
64.00
$
60.85
$
62.44
Consumer and industrial
$
176.86
$
162.70
$
175.28
$
166.32
Total salt
$
73.39
$
73.38
$
75.84
$
76.49
(1) Non-GAAP financial measure.
Reconciliations follow in these tables.
Reconciliation for Salt
Segment EBITDA
(unaudited, in millions)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Reported GAAP segment operating
earnings
$
49.3
$
91.6
$
88.7
$
136.1
Depreciation, depletion and
amortization
16.2
18.0
32.4
35.4
Segment EBITDA
$
65.5
$
109.6
$
121.1
$
171.5
Segment sales
391.3
369.0
665.2
597.5
Segment EBITDA margin
16.7
%
29.7
%
18.2
%
28.7
%
Plant Nutrition Segment
Performance
(unaudited, dollars in millions,
except for prices per short ton)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Sales
$
54.3
$
53.7
$
108.9
$
131.9
Operating earnings
$
4.4
$
5.3
$
13.9
$
8.6
Operating margin
8.1
%
9.9
%
12.8
%
6.5
%
EBITDA(1)
$
13.2
$
14.1
$
31.5
$
26.4
EBITDA(1) margin
24.3
%
26.3
%
28.9
%
20.0
%
Sales volumes (in thousands of tons)
74
94
157
237
Average sales price (per ton)
$
736
$
573
$
696
$
558
(1) Non-GAAP financial measure.
Reconciliations follow in these tables
.
Reconciliation for Plant
Nutrition Segment EBITDA
(unaudited, in millions)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Reported GAAP segment operating
earnings
$
4.4
$
5.3
$
13.9
$
8.6
Depreciation, depletion and
amortization
8.8
8.8
17.6
17.8
Segment EBITDA
$
13.2
$
14.1
$
31.5
$
26.4
Segment sales
54.3
53.7
108.9
131.9
Segment EBITDA margin
24.3
%
26.3
%
28.9
%
20.0
%
COMPASS MINERALS
INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited, in millions,
except share and per-share data)
Three Months Ended
March 31,
Six Months Ended
March 31,
2022
2021
2022
2021
Sales
$
448.5
$
425.5
$
780.0
$
734.7
Shipping and handling cost
160.1
123.1
255.8
198.8
Product cost
223.8
194.0
399.7
369.0
Gross profit
64.6
108.4
124.5
166.9
Selling, general and administrative
expenses
44.6
32.4
84.1
62.8
Operating earnings
20.0
76.0
40.4
104.1
Other expense:
Interest expense
13.9
15.7
27.8
31.2
Loss on foreign exchange
3.0
2.1
2.6
8.3
Other expense, net
1.7
0.3
1.9
0.4
Earnings from continuing operations before
income taxes
1.4
57.9
8.1
64.2
Income tax expense from continuing
operations
30.4
16.0
29.2
7.6
Net (loss) earnings from continuing
operations
(29.0
)
41.9
$
(21.1
)
$
56.6
Net earnings (loss) from discontinued
operations
16.9
(256.3
)
11.4
(242.9
)
Net loss
$
(12.1
)
$
(214.4
)
$
(9.7
)
$
(186.3
)
Basic net (loss) earnings from continuing
operations per common share
$
(0.85
)
$
1.22
$
(0.62
)
$
1.64
Basic net earnings (loss) from
discontinued operations per common share
0.49
(7.54
)
0.33
(7.15
)
Basic net loss per common share
$
(0.36
)
$
(6.32
)
$
(0.29
)
$
(5.50
)
Diluted net (loss) earnings from
continuing operations per common share
$
(0.85
)
$
1.21
$
(0.62
)
$
1.64
Diluted net earnings (loss) from
discontinued operations per common share
0.49
(7.54
)
0.33
(7.15
)
Diluted net loss per common share
$
(0.36
)
$
(6.32
)
$
(0.29
)
$
(5.50
)
Weighted-average common shares outstanding
(in thousands):(1)
Basic
34,103
33,974
34,081
33,966
Diluted
34,113
34,012
34,100
33,994
- Weighted participating securities include RSUs and PSUs that
receive non-forfeitable dividends and consist of 407,000 and
419,000 weighted participating securities for the three and six
months ended March 31, 2022, respectively, and 445,000 and 411,000
weighted participating securities for the three and six months
ended March 31, 2021, respectively.
COMPASS MINERALS
INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
March 31,
Sept. 30,
2022
2021
ASSETS
Cash and cash equivalents.
$
44.9
$
18.1
Receivables, net
197.3
132.8
Inventories
210.7
321.7
Current assets held for sale
11.0
9.9
Other current assets
58.3
48.9
Property, plant and equipment, net
821.1
830.5
Intangible and other noncurrent assets
303.9
269.0
Total assets
$
1,647.2
$
1,630.9
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current portion of long-term debt
$
—
$
—
Current liabilities held for sale
12.5
9.6
Other current liabilities
211.7
185.8
Long-term debt, net of current portion
922.2
935.4
Deferred income taxes and other noncurrent
liabilities
214.3
207.0
Total stockholders' equity
286.5
293.1
Total liabilities and stockholders'
equity
$
1,647.2
$
1,630.9
COMPASS MINERALS
INTERNATIONAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Six Months Ended March
31,
2022
2021
Net cash provided by operating
activities(1)
$
145.9
$
186.9
Cash flows from investing activities:
Capital expenditures(2)
(43.5
)
(40.2
)
Equity method investments
(46.3
)
(2.8
)
Other, net
1.4
3.8
Net cash used in investing activities
(88.4
)
(39.2
)
Cash flows from financing activities:
Proceeds from revolving credit facility
borrowings
221.3
162.0
Principal payments on revolving credit
facility borrowings
(280.7
)
(262.2
)
Proceeds from issuance of long-term
debt
50.8
119.5
Principal payments on long-term debt
(5.9
)
(87.6
)
Dividends paid
(10.5
)
(49.0
)
Deferred financing costs
—
(0.1
)
Proceeds from stock option exercised
0.2
0.2
Shares withheld to satisfy employee tax
obligations
(0.5
)
(0.1
)
Other, net
(0.6
)
(0.9
)
Net cash used in financing activities
(25.9
)
(118.2
)
Effect of exchange rate changes on cash
and cash equivalents
2.4
—
Net change in cash and cash
equivalents
34.0
29.5
Cash and cash equivalents, beginning of
the year
21.0
34.1
Cash and cash equivalents, end of
period
55.0
63.6
Less: cash and cash equivalents
included in current assets held for sale
(10.1
)
(20.8
)
Cash and cash equivalents of continuing
operations, end of period
$
44.9
$
42.8
- Includes cash flows provided by (used in) discontinued
operations of $5.3 million and $(5.4) million in 2022 and 2021,
respectively.
- Includes capital expenditures of $1.2 million and $5.3 million
related to discontinued operations in 2022 and 2021,
respectively.
COMPASS MINERALS
INTERNATIONAL, INC.
SEGMENT INFORMATION
(unaudited, in
millions)
Three Months Ended March 31,
2022
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
391.3
$
54.3
$
2.9
$
448.5
Intersegment sales
—
0.7
(0.7
)
—
Shipping and handling cost
153.4
6.7
—
160.1
Operating earnings (loss)(2)
49.3
4.4
(33.7
)
20.0
Depreciation, depletion and
amortization
16.2
8.8
2.9
27.9
Total assets (as of end of period)
925.4
444.4
266.4
1,636.2
Three Months Ended March 31,
2021
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
369.0
$
53.7
$
2.8
$
425.5
Intersegment sales
—
0.5
(0.5
)
—
Shipping and handling cost
115.4
7.7
—
123.1
Operating earnings (loss)(2)
91.6
5.3
(20.9
)
76.0
Depreciation, depletion and
amortization
18.0
8.8
3.1
29.9
Total assets (as of end of period)
901.4
481.9
191.4
1,574.7
Six Months Ended March 31, 2022
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
665.2
$
108.9
$
5.9
$
780.0
Intersegment sales
—
3.1
(3.1
)
—
Shipping and handling cost
241.8
14.0
—
255.8
Operating earnings (loss)(2)
88.7
13.9
(62.2
)
40.4
Depreciation, depletion and
amortization
32.4
17.6
6.2
56.2
Six Months Ended March 31, 2021
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
597.5
$
131.9
$
5.3
$
734.7
Intersegment sales
—
2.9
(2.9
)
—
Shipping and handling cost
179.3
19.5
—
198.8
Operating earnings (loss)(2)
136.1
8.6
(40.6
)
104.1
Depreciation, depletion and
amortization
35.4
17.8
6.8
60.0
(1) Corporate and other includes corporate
entities, records management operations, equity method investments
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 for the
three and six months ended March 31, 2022 include executive
transition costs of $0.5 million and $3.8 million, respectively,
and a contingent loss accrual and costs related to the ongoing SEC
investigation of $13.6 million and $16.7 million, respectively.
Corporate operating results include costs related to the ongoing
SEC investigation of $2.8 million and $4.4 million for the three
and six months ended March 31, 2021, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505006066/en/
Investor Contact Douglas Kris Senior Director of Investor
Relations +1.917.797.4967 krisd@compassminerals.com
Media Contact Rick Axthelm Chief Public Affairs and
Sustainability Officer +1.913.344.9198
MediaRelations@compassminerals.com
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