Compass Minerals (NYSE: CMP), a leading global provider of
essential minerals, today reported fiscal 2022 third-quarter
results.
Fiscal 2022 Third-Quarter and Recent
Highlights
- Achieved revenue of $215 million, an 8% year-over-year
increase
- Increased Plant Nutrition pricing by 36% year over year, and
12% sequentially to $827 per ton, reflecting continued strength in
global fertilizer supply-demand conditions
- Reduced Total Case Incident Rate1, or TCIR, by over half, to a
rate of 0.95 for the nine months ended June 30, 2022, reflecting an
approximate 58% improvement year over year and the continuation of
an excellent safety performance to date
- Amended credit facility to provide financial flexibility and
bridge the timing gap between the fiscal 2022 inflationary dynamic
that has led to Salt EBITDA margin compression to date and the
anticipated fiscal 2023 post-bidding season Salt EBITDA margin
recovery
- Announced the signing of non-binding memorandums of
understanding to supply LG Energy Solution and Ford Motor Company
with a battery-grade lithium product from the company’s lithium
brine development project
- Paid down debt with the combined net proceeds from the
previously announced sale of the company's South America chemicals
business in April 2022 and receipt of the maximum earnout
associated with the July 2021 sale of its South America specialty
plant nutrition business
- Bolstered board of directors with the appointment of Richard P.
Dealy and Melissa M. Miller, deepening the board's operational,
financial, and human capital management expertise and
experience
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.
1 Rate of work-related injuries per 100 full time workers during
a one-year period.
Results
(From continuing operations; in
millions, except per share data)
Three Months Ended June
30, 2022
Nine Months Ended June
30, 2022
Revenue
$
214.7
$
994.7
Operating (loss) earnings
(3.5
)
36.9
Adjusted EBITDA2
28.9
152.1
Net loss
(10.7
)
(31.8
)
Net loss per diluted share
(0.32
)
(0.94
)
Adjusted net (loss) earnings2
(5.2
)
19.4
Adjusted net (loss) earnings2 per diluted
share
(0.16
)
0.56
2 Non-GAAP financial measure. Reconciliations to the most
directly comparable GAAP financial measure are provided in tables
at the end of this press release.
“We achieved third-quarter revenue growth of 8% year over year,
enabled by targeted pricing actions across our product portfolio
and higher Salt segment sales volumes," said Kevin S. Crutchfield,
president and CEO. "While this represented an improvement in our
top-line performance, profitability levels came in significantly
below our earnings potential – particularly within our Salt segment
– as we continued to be impacted by increased production and
distribution unit costs. With the North America highway salt bid
season well underway, we have successfully begun the process of
restoring the Salt segment’s profitability through a value-based
strategy aimed at optimizing geography and mix while passing
through substantial inflationary costs incurred year to date. We
also continue to advance our strategy to expand our essential
minerals portfolio into new and attractive, adjacent markets –
namely lithium and next-generation fire retardants."
Fiscal 2022 third-quarter consolidated revenue grew 8% year over
year, driven by higher Salt segment average price and sales
volumes. Consolidated operating earnings declined $4.4 million to
an operating loss of $3.5 million for the fiscal 2022 third
quarter, while adjusted EBITDA also declined from $33.3 million to
$28.9 million over the same period, primarily driven by higher Salt
segment production and distribution costs.
Salt Segment Summary
Salt segment fiscal 2022 third-quarter revenue totaled $156.2
million, up 10% year over year, reflecting an 8% increase in
average price and a 2% increase in sales volumes. The increase in
Salt segment average price reflected 7% higher highway deicing
pricing due to product and regional mix and 9% higher C&I
pricing driven by broad-based price increases across most C&I
product categories, primarily in response to the high-inflation
environment.
Salt segment operating earnings in the fiscal 2022 third quarter
declined $6.8 million to $12.4 million year over year, and EBITDA
declined $9.1 million to $27.7 million over the same period,
primarily due to higher production and distribution costs. Salt
segment operating margin was 8% in the fiscal 2022 third quarter,
down from 13% in the prior year, and EBITDA margin decreased to 18%
from 26% over the same period, also primarily due to higher
production and distribution costs.
Bid Season
Approximately 75% of the company's North American highway
deicing bidding process for the 2022-2023 winter season has been
completed. Based on season-to-date bidding activity, the company
expects its average contract price for the upcoming winter season
to rise by approximately 14%. As a result of its prioritization of
a value-over-volume strategic focus, the company expects an
approximate 13% decrease in total committed bid volumes compared to
the prior season, depending on how the balance of this bidding
season transpires.
Plant Nutrition Segment
Summary
Plant Nutrition segment fiscal 2022 third-quarter revenue
totaled $55.6 million, up 3% year over year, driven by a 36%
increase in average price, mostly offset by lower sales volumes.
Fiscal 2022 third-quarter operating earnings increased $9.9 million
year over year to $10.6 million, while EBITDA totaled $19.4 million
compared to $9.8 million in the prior-year period, as favorable
pricing offset higher per-unit costs and lower sales volumes.
Fiscal 2022 third-quarter operating margin was 19% compared to 1%
in the prior year and EBITDA margin was 35% compared to 18% in the
prior year.
Cash Flow
Net cash provided from operating activities amounted to $148.9
million for the nine months ended June 30, 2022, down $48.2 million
year over year.
Net cash used in investing activities was $53.1 million for the
nine months ended June 30, 2022, up $48.0 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 $7.9
million increase in capital spending compared to the prior-year
period.
Net cash used for financing activities was $69.8 million for the
nine months ended June 30, 2022, down $105.6 million year over
year, principally reflecting lower cash flows from operations and
higher investment activities, partially offset by a reduction in
dividends paid.
The company ended the quarter with $240.4 million of liquidity,
which includes $47.2 million in cash and cash equivalents and
$193.2 million of availability under its $300 million revolving
credit facility.
Outlook
The company is narrowing its fiscal 2022 consolidated adjusted
EBITDA estimate to a range of $175 million to $195 million from its
prior range of $170 million to $200 million. This adjustment
results in maintaining guidance at the midpoint, while reflecting a
narrower range of expected potential financial outcomes over the
balance of the year, with three quarters of the fiscal year having
transpired. Within the Salt segment, year-to-date margin
compression due to higher costs compared to the prior-year period
is expected to continue through the balance of the fiscal year, as
the company continues its efforts to restore segment profitability
as part of the ongoing North America highway deicing bidding
season. Plant Nutrition segment financial results for the balance
of the fiscal year are expected to continue to be primarily
influenced by production performance and pricing dynamics.
FISCAL 2022 Guidance (for
continuing operations):
2H FY22
FY22
Consolidated
Adjusted EBITDA
$175 million to $195 million
Salt Segment
Volume
12.3 million to 12.6 million
tons
Revenue
$320 million to $340 million
EBITDA
$55 million to $65 million
Plant Nutrition Segment
Volume
270,000 to 280,000 tons
Revenue
$98 million to $108 million
EBITDA
$37 million to $43 million
Corporate
Corporate and other expense1
~$70 million
Interest expense
~$56 million
Depreciation, depletion and
amortization
~$110 million
Capital expenditures
~$100 million
Effective tax rate2
~35%
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, Aug. 5, 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 third-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 Salt
profitability recovery; the company's lithium brine development
project; earnings potential; ability to optimize mix and pass
through inflationary costs; strategy; efforts to expand the
company's minerals portfolio; bid season, including expected
pricing and volumes; Plant Nutrition production performance and
pricing dynamics; 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, March 31, 2022 and June 30,
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 (Loss) Earnings
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2022
2021
2022
2021
Net (loss) earnings from continuing
operations
$
(10.7
)
$
(16.4
)
$
(31.8
)
$
40.2
Executive transition costs, net of
tax(1)
—
—
3.2
—
Accrued loss and legal costs related to
SEC investigation, net of tax(2)
3.1
0.3
17.6
3.5
Deferred tax valuation allowance(3)
2.4
—
30.4
—
Adjusted net (loss) earnings from
continuing operations
$
(5.2
)
$
(16.1
)
$
19.4
$
43.7
Net (loss) earnings from continuing
operations per diluted share
$
(0.32
)
$
(0.49
)
$
(0.94
)
$
1.15
Adjusted net (loss) earnings from
continuing operations per diluted share
$
(0.16
)
$
(0.48
)
$
0.56
$
1.25
Weighted-average common shares outstanding
(in thousands):
Diluted
34,154
34,078
34,110
34,022
(1)
The company incurred severance and other
costs related to executive transition of $3.8 million ($3.2 million
net of tax) for the nine months ended June 30, 2022.
(2)
The company recorded a contingent loss
accrual and recognized costs, net of reimbursements, related to the
ongoing SEC investigation of $2.8 million and $0.3 million ($3.1
million and $0.3 million net of tax) in the three months ended June
30, 2022 and 2021, respectively. The company recorded a contingent
loss accrual and incurred net costs related to the ongoing SEC
investigation of $19.5 million and $4.7 million ($17.6 million and
$3.5 million net of tax) for the nine months ended June 30, 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 (Loss) Earnings
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2022
2021
2022
2021
Operating (loss) earnings
$
(3.5
)
$
0.9
$
36.9
$
105.0
Executive transition costs(1)
—
—
3.8
—
Accrued loss and legal costs related to
SEC investigation(2)
2.8
0.3
19.5
4.7
Adjusted operating (loss) earnings
$
(0.7
)
$
1.2
$
60.2
$
109.7
Sales
214.7
199.4
994.7
934.1
Operating margin
(1.6
) %
0.5
%
3.7
%
11.2
%
Adjusted operating margin
(0.3
) %
0.6
%
6.1
%
11.7
%
(1)
The company incurred severance and other
costs related to executive transition.
(2)
The company recorded a contingent loss
accrual during the three and nine months ended June 30, 2022, and
recognized costs, net of reimbursements, related to the ongoing SEC
investigation during the three and nine months ended June 30, 2022
and 2021.
Reconciliation for EBITDA and
Adjusted EBITDA
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2022
2021
2022
2021
Net (loss) earnings from continuing
operations
$
(10.7
)
$
(16.4
)
$
(31.8
)
$
40.2
Interest expense
13.4
15.0
41.2
46.2
Income tax (benefit) expense
(1.1
)
1.7
28.1
9.3
Depreciation, depletion and
amortization
27.0
30.0
83.2
90.0
EBITDA from continuing operations
28.6
30.3
120.7
185.7
Adjustments to EBITDA from continuing
operations:
Stock-based compensation - non cash
3.9
2.3
11.6
8.2
(Gain) loss on foreign exchange
(6.1
)
1.1
(3.5
)
9.4
Executive transition costs(1)
—
—
4.3
—
Accrued loss and legal costs related to
SEC investigation(2)
2.8
0.3
19.5
4.7
Other income, net
(0.3
)
(0.7
)
(0.5
)
(0.2
)
Adjusted EBITDA from continuing
operations
28.9
33.3
152.1
207.8
Adjusted EBITDA from discontinued
operations
3.1
8.5
19.0
44.9
Adjusted EBITDA including discontinued
operations
$
32.0
$
41.8
$
171.1
$
252.7
(1)
The company incurred severance and other
costs related to executive transition.
(2)
The company recorded a contingent loss
accrual during the three and nine months ended June 30, 2022, and
recognized costs, net of reimbursements, related to the ongoing SEC
investigation during the three and nine months ended June 30, 2022
and 2021.
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,
2022
2021
2022
2021
Sales
$
156.2
$
142.6
$
821.4
$
740.1
Operating earnings
$
12.4
$
19.2
$
101.1
$
155.3
Operating margin
7.9
%
13.5
%
12.3
%
21.0
%
EBITDA(1)
$
27.7
$
36.8
$
148.8
$
208.3
EBITDA(1) margin
17.7
%
25.8
%
18.1
%
28.1
%
Sales volumes (in thousands of tons):
Highway deicing
1,232
1,212
8,854
7,966
Consumer and industrial
451
445
1,600
1,502
Total Salt
1,683
1,657
10,454
9,468
Average prices (per ton):
Highway deicing
$
63.73
$
59.42
$
61.25
$
61.98
Consumer and industrial
$
172.41
$
158.78
$
174.47
$
164.08
Total Salt
$
92.83
$
86.12
$
78.58
$
78.17
(1)
Non-GAAP financial measure.
Reconciliations follow in these tables.
Reconciliation for Salt
Segment EBITDA
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2022
2021
2022
2021
Reported GAAP segment operating
earnings
$
12.4
$
19.2
$
101.1
$
155.3
Depreciation, depletion and
amortization
15.3
17.6
47.7
53.0
Segment EBITDA
$
27.7
$
36.8
$
148.8
$
208.3
Segment sales
156.2
142.6
821.4
740.1
Segment EBITDA margin
17.7
%
25.8
%
18.1
%
28.1
%
Plant Nutrition Segment
Performance
(unaudited, dollars in millions,
except for prices per short ton)
Three Months Ended June
30,
Nine Months Ended June
30,
2022
2021
2022
2021
Sales
$
55.6
$
53.8
$
164.5
$
185.7
Operating earnings
$
10.6
$
0.7
$
24.5
$
9.3
Operating margin
19.1
%
1.3
%
14.9
%
5.0
%
EBITDA(1)
$
19.4
$
9.8
$
50.9
$
36.2
EBITDA(1) margin
34.9
%
18.2
%
30.9
%
19.5
%
Sales volumes (in thousands of tons)
67
88
224
325
Average price (per ton)
$
827
$
610
$
735
$
572
(1) Non-GAAP financial measure.
Reconciliations follow in these tables.
Reconciliation for Plant
Nutrition Segment EBITDA
(unaudited, in millions)
Three Months Ended June
30,
Nine Months Ended June
30,
2022
2021
2022
2021
Reported GAAP segment operating
earnings
$
10.6
$
0.7
$
24.5
$
9.3
Depreciation, depletion and
amortization
8.8
9.1
26.4
26.9
Segment EBITDA
$
19.4
$
9.8
$
50.9
$
36.2
Segment sales
55.6
53.8
164.5
185.7
Segment EBITDA margin
34.9
%
18.2
%
30.9
%
19.5
%
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,
2022
2021
2022
2021
Sales
$
214.7
$
199.4
$
994.7
$
934.1
Shipping and handling cost
58.7
51.6
314.5
250.4
Product cost
122.1
117.6
521.8
486.6
Gross profit
33.9
30.2
158.4
197.1
Selling, general and administrative
expenses
37.4
29.3
121.5
92.1
Operating (loss) earnings
(3.5
)
0.9
36.9
105.0
Other expense:
Interest expense
13.4
15.0
41.2
46.2
(Gain) loss on foreign exchange
(6.1
)
1.1
(3.5
)
9.4
Other expense (income), net
1.0
(0.5
)
2.9
(0.1
)
(Loss) earnings from continuing operations
before income taxes
(11.8
)
(14.7
)
(3.7
)
49.5
Income tax (benefit) expense from
continuing operations
(1.1
)
1.7
28.1
9.3
Net (loss) earnings from continuing
operations
(10.7
)
(16.4
)
$
(31.8
)
$
40.2
Net earnings (loss) from discontinued
operations
2.8
73.5
14.2
(169.4
)
Net (loss) earnings
$
(7.9
)
$
57.1
$
(17.6
)
$
(129.2
)
Basic net (loss) earnings from continuing
operations per common share
$
(0.32
)
$
(0.49
)
$
(0.94
)
$
1.15
Basic net earnings (loss) from
discontinued operations per common share
0.08
2.13
0.42
(4.98
)
Basic net (loss) earnings per common
share
$
(0.23
)
$
1.64
$
(0.52
)
$
(3.83
)
Diluted net (loss) earnings from
continuing operations per common share
$
(0.32
)
$
(0.49
)
$
(0.94
)
$
1.15
Diluted net earnings (loss) from
discontinued operations per common share
0.08
2.12
0.42
(4.98
)
Diluted net (loss) earnings per common
share
$
(0.23
)
$
1.63
$
(0.52
)
$
(3.83
)
Weighted-average common shares outstanding
(in thousands):(1)
Basic
34,154
34,020
34,105
33,984
Diluted
34,154
34,078
34,110
34,022
(1)
Weighted participating securities include RSUs and PSUs that
receive non-forfeitable dividends and consist of 372,000 and
423,000 weighted participating securities for the three and nine
months ended June 30, 2022, respectively, and 432,000 and 418,000
weighted participating securities for the three and nine months
ended June 30, 2021, respectively.
COMPASS MINERALS
INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
June 30,
Sept. 30,
2022
2021
ASSETS
Cash and cash equivalents
$
47.2
$
18.1
Receivables, net
108.6
132.8
Inventories
268.9
321.7
Current assets held for sale
—
9.9
Other current assets
54.6
48.9
Property, plant and equipment, net
802.5
830.5
Intangible and other noncurrent assets
295.2
269.0
Total assets
$
1,577.0
$
1,630.9
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current portion of long-term debt
$
—
$
—
Current liabilities held for sale
—
9.6
Other current liabilities
189.4
185.8
Long-term debt, net of current portion
885.9
935.4
Deferred income taxes and other noncurrent
liabilities
200.8
207.0
Total stockholders' equity
300.9
293.1
Total liabilities and stockholders'
equity
$
1,577.0
$
1,630.9
COMPASS MINERALS
INTERNATIONAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Nine Months Ended June
30,
2022
2021
Net cash provided by operating
activities(1)
$
148.9
$
197.1
Cash flows from investing activities:
Capital expenditures(2)
(68.9
)
(61.0
)
Proceeds from sale of business
61.2
56.7
Investment in equity method investee
(46.3
)
(4.5
)
Other, net
0.9
3.7
Net cash used in investing activities
(53.1
)
(5.1
)
Cash flows from financing activities:
Proceeds from revolving credit facility
borrowings
346.3
345.8
Principal payments on revolving credit
facility borrowings
(341.7
)
(411.0
)
Proceeds from issuance of long-term
debt
50.8
120.3
Principal payments on long-term debt
(106.6
)
(155.6
)
Dividends paid
(15.7
)
(73.6
)
Deferred financing costs
(0.4
)
(0.1
)
Proceeds from stock option exercised
0.3
1.4
Shares withheld to satisfy employee tax
obligations
(1.9
)
(1.3
)
Other, net
(0.9
)
(1.3
)
Net cash used in financing activities
(69.8
)
(175.4
)
Effect of exchange rate changes on cash
and cash equivalents
0.2
2.9
Net change in cash and cash
equivalents
26.2
19.5
Cash and cash equivalents, beginning of
the year
21.0
34.1
Cash and cash equivalents, end of
period
47.2
53.6
Less: cash and cash equivalents
included in current assets held for sale
—
(27.3
)
Cash and cash equivalents of continuing
operations, end of period
$
47.2
$
26.3
(1)
Includes cash flows provided by (used in)
discontinued operations of $9.4 million and $(53.8) million in 2022
and 2021, respectively.
(2)
Includes capital expenditures of $1.6 million and $9.2 million
related to discontinued operations in 2022 and 2021,
respectively.
COMPASS MINERALS
INTERNATIONAL, INC.
SEGMENT INFORMATION
(unaudited, in
millions)
Three Months Ended June 30,
2022
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
156.2
$
55.6
$
2.9
$
214.7
Intersegment sales
—
1.9
(1.9
)
—
Shipping and handling cost
52.2
6.5
—
58.7
Operating earnings (loss)(2)
12.4
10.6
(26.5
)
(3.5
)
Depreciation, depletion and
amortization
15.3
8.8
2.9
27.0
Total assets (as of end of period)
980.6
441.2
155.2
1,577.0
Three Months Ended June 30,
2021
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
142.6
$
53.8
$
3.0
$
199.4
Intersegment sales
—
2.5
(2.5
)
—
Shipping and handling cost
44.3
7.3
—
51.6
Operating earnings (loss)(2)
19.2
0.7
(19.0
)
0.9
Depreciation, depletion and
amortization
17.6
9.1
3.3
30.0
Total assets (as of end of period)
986.5
456.6
98.5
1,541.6
Nine Months Ended June 30, 2022
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
821.4
$
164.5
$
8.8
$
994.7
Intersegment sales
—
5.0
(5.0
)
—
Shipping and handling cost
294.0
20.5
—
314.5
Operating earnings (loss)(2)
101.1
24.5
(88.7
)
36.9
Depreciation, depletion and
amortization
47.7
26.4
9.1
83.2
Nine Months Ended June 30, 2021
Salt
Plant
Nutrition
Corporate &
Other(1)
Total
Sales to external customers
$
740.1
$
185.7
$
8.3
$
934.1
Intersegment sales
—
5.4
(5.4
)
—
Shipping and handling cost
223.6
26.8
—
250.4
Operating earnings (loss)(2)
155.3
9.3
(59.6
)
105.0
Depreciation, depletion and
amortization
53.0
26.9
10.1
90.0
(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 include a
contingent loss accrual and costs, net of reimbursements, related
to the ongoing SEC investigation of $2.8 million for the three
months ended June 30, 2022. The nine months ended June 30, 2022
results include executive transition costs of $3.8 million and a
contingent loss accrual and net costs related to the ongoing SEC
investigation of $19.5 million. Corporate operating results also
include costs related to the ongoing SEC investigation of $0.3
million and $4.7 million for the three and nine months ended June
30, 2021, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220804005749/en/
Investor Contact Valerie Tymosko Interim Senior Director
of Investor Relations +1.913.344.9496
InvestorRelations@compassminerals.com
Media Contact Rick Axthelm Chief Public Affairs and
Sustainability Officer +1.913.344.9198
MediaRelations@compassminerals.com
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