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Compass Minerals (NYSE:CMP) reports the following results of its second-quarter 2014 operations:
Sales increased to $186.6 million from $173.8 million in the second quarter of 2013, as a 49 percent increase in sales from the recently expanded and renamed plant nutrition segment more than offset a 7 percent decline in salt segment sales.
Operating earnings were $13.4 million compared to $14.7 million in the prior-year quarter, as increased earnings from the plant nutrition segment were offset by lower salt segment earnings.
Adjusted EBITDA* totaled $32.2 million compared to $32.8 million in the prior year.
Costs related to early debt redemption and an increase in the company’s expected full-year tax rate resulted in a net loss of $0.7 million, or $0.02 per diluted share. Excluding the debt redemption costs, net earnings were $4.4 million, or $0.13 per diluted share. In the second quarter of 2013, net earnings were $10.6 million, or $0.32 per diluted share.
The North American highway deicing bidding for the 2014-2015 winter season is approximately three-fourths complete. To date, average awarded prices have increased more than 20 percent from last year’s bid awards.
*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.
“Strength in demand for our premium plant nutrition products continued throughout the second quarter and pushed Compass Minerals’ total revenues higher, despite seasonal weakness in our salt segment,” said Fran Malecha, Compass Minerals president and CEO. “Attractive market conditions for both our salt business and our expanded plant nutrition business support our expectations of margin expansion and increased earnings in the second half of the year. In addition, we expect that our strategies targeting improvement and growth will build on this positive momentum to create even greater shareholder value.”
Compass Minerals Financial Results
(in millions, except for earnings per share)
Three months endedJune 30,
Six months endedJune 30,
Sales less shipping and handling (product sales)
Net earnings (loss)
Net earnings, excluding special items*
Diluted earnings per share (loss)
Diluted per-share earnings, excluding special items*
*These are non-GAAP financial measures. Reconciliations to GAAP measures of performance are provided in tables at the end of this release.SALT SEGMENT
Total salt sales declined to $118.7 million from $127.3 million in the second quarter of 2013. Highway deicing sales volumes dropped 14 percent from prior-year results, which were elevated in the 2013 period by strong summer restocking of deicing salt in the U.K. following a severe winter in that region. Average selling prices for highway deicing salt were 6 percent lower primarily due to an increase in the proportion of rock salt to chemical customers this quarter compared to last year and the impact of lower prices from last year’s bid season. Consumer and industrial sales volumes increased 11 percent, while changes in product sales mix pushed average selling prices down 7 percent.