Compass Minerals Intl Inc · NYSE:CMP
Compass Minerals Intl — Compass Minerals — Q1 2024 Earnings Presentation
24 slides from Compass Minerals Intl's earnings presentation, Feb 7, 2024
Slide 1: Fiscal 2024 First-Quarter Business Update
Fiscal 2024 First-Quarter Business Update // Feb. 7, 2024
Slide 2: Forward-Looking Statements and Other Disclaimers
Forward-Looking Statements and Other Disclaimers This presentation may contain forward-looking statements, including, without limitation, statements about expected efforts to accelerate growth and enhance value; Fortress North America's expected revenue, operating profit, and adjusted EBITDA; the te
Slide 3: First-Quarter Fiscal 2024 Overview
First-Quarter Fiscal 2024 Overview • Announced reorientation of the company’s strategic priorities, including: o Termination of lithium project, providing clarity on Compass Minerals’ strategic direction o Renewed focus on generating higher cash flow and returns on capital from core Salt and Plant N
Slide 4: Strategic Focus Areas for Fiscal 2024
Strategic Focus Areas for Fiscal 2024 ZERO HARM SALT SOP PROFITABILITY PRODUCTION Build on strong safety performance in our Maintain disciplined Execute on strategies to continued drive toward pricing strategy and a deliver more reliable, zero harm across each of focus on geographically sustainable
Slide 5: First-Quarter Fiscal 2024 Results
First-Quarter Fiscal 2024 Results
Slide 6: First-Quarter Fiscal 2024 Consolidated Results
First-Quarter Fiscal 2024 Consolidated Results 1Q24 Consolidated Results (y/y change) Commentary Revenue (y/y change) -3% • 1Q24 adjusted EBITDA1 reflects positive improvements from Salt Adjusted EBITDA1 (y/y change) -4% and Fortress, offset by weaker performance in Plant Nutrition Adjusted EBITDA1
Slide 7: First-Quarter Fiscal 2024 Salt Results
First-Quarter Fiscal 2024 Salt Results ($ in millions) 1Q24 1Q23 %Δ Sales Volumes (in thousands of short tons) Revenue $274.3 $308.1 -11.0% Adj. EBITDA1 $65.7 $61.0 +7.7% 2,901 Adj. EBITDA1 margin 24.0% 19.8% +4.2 pts 2,266 589 620 Average price per ton $96/ton $88/ton 10% 1Q24 Highlights • Salt rev
Slide 8: First-Quarter Fiscal 2024 Plant Nutrition Results
First-Quarter Fiscal 2024 Plant Nutrition Results ($ in millions) 1Q24 1Q23 %Δ Revenue $49.7 $41.6 19.5% Sales Volumes (in thousands of short tons) Adj. EBITDA1 $6.1 $19.3 -68.4% 75 Adj. EBITDA1 margin 12.3% 46.4% -34.1pts Average price per ton $660/ton $924/ton -29% 45 1Q24 Highlights • Sales volum
Slide 9: Strategic Opportunities Update
Strategic Opportunities Update Fortress • Compass Minerals continues to negotiate with U.S. Forest Service (USFS) on calendar 2024 contract, which has been delayed due to changes made by USFS to the solicitation package • Company expects to have agreement finalized prior to deployment for upcoming f
Slide 10: Charting a Prudent Financial Path Forward
Charting a Prudent Financial Path Forward Liquidity and Net Debt Debt Maturity Profile2 (in millions) (in millions) Liquidity Net Debt $400 $1,800 $1,600 $300 $1,400 $317 Liquidity Net Debt $1,200 $246 $1,000 $817 $200 $227 $219 $800 $181 $600 $100 $400 $200 $77 $5 $10 $10 $0 $- 1 2020 2021 2022 202
Slide 11: 2024 Outlook and Guidance
2024 Outlook and Guidance
Slide 12: Salt Outlook and Guidance
Salt Outlook and Guidance Long-Term Attributes Near-Term Initiatives • Resilient, recession-resistant demand profile • Maintain disciplined pricing strategy and focus on geographically advantageous markets • Difficult to replicate asset base with important logistical advantages • Advance Goderich Mi
Slide 13: Plant Nutrition Outlook and Guidance
Plant Nutrition Outlook and Guidance Fiscal 2024 Plant Nutrition Guidance Long-Term Attributes 2024 Range • Largest producer of SOP in the Western Hemisphere FY24 Volumes (thousands of tons) 280 310 • Unique solar evaporation asset in Ogden, Utah, provides competitive advantages FY24 Revenue (in mil
Slide 14: Consolidated Guidance Summary
Consolidated Guidance Summary 2024 Adj. EBITDA (in millions) Salt $230 $270 Plant Nutrition 15 35 Fortress1 ~13 ~13 Lithium ~(5) ~(5) Other2 (73) (68) Corporate (65) (60) TOTAL $180 $245 2024 Capital Expenditures (in millions) Sustaining $80 $90 Lithium3 ~30 ~30 Fortress ~10 ~10 TOTAL $120 $130 Othe
Slide 15: Appendix
Appendix
Slide 16: Special Items
Special Items Special Items Impacting Three Months Ended Dec. 31, 2023 (unaudited, in millions, except per share data) Item Description Segment Line Item Amount Tax Effect1 After Tax EPS Impact Restructuring charges Corporate and Other Other operating $2.5 --- $2.5 $0.06 expense Asset impairment Cor
Slide 17: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Operating Earnings (unaudited, in millions) Three months ended Dec. 31, 2023 2022 Operating (loss) earnings $ (55.3) $ 27.9 Restructuring charges1 2.5 --- Loss on impairment of long-lived assets, net1 74.8 --- Accrued loss and legal
Slide 18: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Net Earnings (unaudited, in millions) Three months ended Dec. 31, 2023 2022 Net loss $ $ (0.3) (75.1) Restructuring charges1 2.5 --- Loss on impairment of long-lived assets, net1 74.8 --- Accrued loss and legal costs related to SEC i
Slide 19: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Dec. 31, 2023 2022 Net loss $ (75.1) $ (0.3) Interest expense 15.8 13.9 Income tax expense 1.8 11.9 Depreciation, depletion and amortization 25.5 23.9 EBITDA $ (32.0) $ 49
Slide 20: Salt Segment Performance
Salt Segment Performance Salt Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Dec. 31, 2023 2022 Sales $ 274.3 $ 308.1 Operating earnings $ 50.5 $ 47.1 Operating margin 18.4% 15.3% EBITDA1 $ 65.7 $ 61.0 EBITDA1 margin 24.0% 19.8% Sales volumes
Slide 21: Salt Reconciliation of Non-GAAP Information
Salt Reconciliation of Non-GAAP Information Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Dec. 31, 2023 2022 Reported GAAP segment operating earnings $ 50.5 $ 47.1 Depreciation, depletion and amortization 15.2 13.9 Segment EBITDA $ 65.7 $ 61.0
Slide 22: Plant Nutrition Segment Performance
Plant Nutrition Segment Performance Plant Nutrition Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Dec. 31, 2023 2022 Sales $ 49.7 $ 41.6 Operating (loss) earnings $ (2.3) $ 11.0 Operating margin (4.6)% 26.4% EBITDA1 $ 6.1 $ 19.3 EBITDA1 margi
Slide 23: Plant Nutrition Reconciliation of Non-GAAP Information
Plant Nutrition Reconciliation of Non-GAAP Information Reconciliation for Plant Nutrition Segment EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Dec. 31, 2023 2022 Reported GAAP segment operating (loss) earnings $ (2.3) $ 11.0 Depreciation, depletion and amortization 8.4 8.3
Slide 24: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Historical EBITDA and Margins (by calendar year) (unaudited, in millions) 2023 2022 2021 2020 Three months ended Three months ended Three months ended Three months ended Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30