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Compass Minerals (NYSE: CMP) reports the following results of its first-quarter operations:
Net earnings were $50.2 million, or $1.49 per diluted share, an 8 percent increase from first-quarter 2013 results.
Sales increased to $422.0 million from $383.7 million in the prior-year period. Continued severe winter weather in North America boosted salt segment sales by 8 percent, while steady demand lifted specialty fertilizer segment sales by 22 percent.
First-quarter operating earnings were $67.0 million compared to $67.5 million in the 2013 quarter primarily as the benefit from higher sales volumes was suppressed by lower North American highway deicing prices that were established during last summer’s bid process.
Adjusted EBITDA* was $85.4 million compared to $84.8 million in the prior-year quarter.
The company generated $160.7 million in cash flow from operations, a $31.9 million increase from the 2013 quarter’s results.
“Severe winter weather in North America drove salt sales volumes to their highest quarterly level since 2008, and our specialty fertilizer segment generated record first-quarter revenue from robust early spring demand for our sulfate of potash products,” said Fran Malecha, Compass Minerals president and CEO. “These improved market conditions have created positive momentum for both businesses for the remainder of 2014.”
*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.
Compass MineralsFinancial Results(dollars in millions, except for earnings per share)
Three months ended March 31,
Sales less shipping and handling costs (product sales)
Diluted earnings per share
*These are non-GAAP financial measures. Reconciliations to GAAP measures of performance are provided in tables following this release.SALT SEGMENT
Widespread, severe winter weather throughout North America in the current quarter generated an 8 percent increase in salt segment sales from first-quarter 2013 results. Highway deicing sales volumes increased 9 percent as very strong North American winter demand was partially offset by mild weather in the U.K. The average selling price for highway deicing salt declined 6 percent, reflecting lower pricing from the prior-year’s North American bid season. Consumer and industrial salt sales volumes spiked 22 percent, and the average selling price for these products climbed 3 percent due to an improved contribution from higher-priced consumer and professional deicing products.