Compass Minerals Reports Third-Quarter Results

Compass Minerals (NYSE: CMP) reports the following results of its third-quarter 2013 operations:
  • Net earnings improved 64 percent to $15.4 million, or $0.46 per diluted share, from $9.4 million, or $0.28 per diluted share, in the third quarter of 2012. Excluding special items, the prior-period results were $10.3 million, or $0.31 per diluted share.
  • Sales were $184.7 million compared to $181.0 million in the 2012 third quarter. A 16 percent increase in salt sales was partially offset by a 29 percent decline in specialty fertilizer sales as growers delayed purchasing fertilizer due to recent developments in fertilizer markets.
  • Operating income climbed 64 percent to $23.1 million from $14.1 million in the third quarter of 2012. This improvement was driven primarily by higher salt sales volumes and lower per-unit salt costs.
  • Cash flow from operations for the nine months ended September 30, 2013, was $142.1 million, increasing from $132.2 million in the 2012 period.
  • Adjusted EBITDA* increased to $41.1 million from $29.8 million in the prior-year period and the Adjusted EBITDA margin expanded to 22 percent from 16 percent.

“Our performance this quarter demonstrates the benefits of our balanced portfolio of minerals,” said Fran Malecha, Compass Minerals president and CEO. “Our salt segment sales are improving as we expected, and we are seeing improved margins as a result of more typical demand. Meanwhile our marketing of the benefits of sulfate of potash over standard potash to growers of specialty crops continues to sustain our premium specialty fertilizer pricing in North America.”

*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 Minerals Financial Results

(in millions, except for earnings per share)
  Three months ended   Nine months ended
September 30, September 30,
2013   2012 2013   2012
Sales $184.7 $181.0 $742.2 $674.8
Sales less shipping and handling costs (product sales) 140.3 140.1 542.2 497.5
Operating earnings 23.1 14.1 105.3 91.0
Operating margin 13% 8% 14% 13%
Net earnings 15.4 9.4 72.4 58.8
Net earnings, excluding special items* 15.4 10.3 72.4 70.1
Diluted earnings per share 0.46 0.28 2.15 1.75
Diluted earnings per share, excluding special items* 0.46 0.31 2.15 2.09
EBITDA* 41.2 30.1 161.9 133.8
Adjusted EBITDA*   41.1   29.8   158.7   138.2

*These are non-GAAP financial measures. Reconciliations to GAAP measures of performance are provided in tables at the end of this release.

SALT SEGMENT

Sales of salt products increased to $142.6 million from $122.5 million in the third quarter of 2012. A year-over-year increase in pre-season highway deicing restocking resulted in a 30 percent increase in sales volumes and a more favorable product mix that produced a 2 percent improvement in average selling price. Consumer and industrial sales volumes improved 6 percent year-over-year, while average selling price dropped 1 percent.

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