Compass Minerals Intl Inc · NYSE:CMP
Compass Minerals Intl — Compass Minerals — Stifel 2024 Cross Sector Insight Conference
27 slides from Compass Minerals Intl's conference presentation, Jun 5, 2024
Slide 1: June 2024 IR Conference Events
June 2024 IR Conference Events // June 5 & 6, 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 future valuations, cash generation, production and inventory levels, cost structure, capital intensity and allocation, debt levels, balance sheet
Slide 3: Strategic Focus
Strategic Focus
Slide 4: Path to Valuation Recovery
Path to Valuation Recovery Intense Focus Intensified Cost & Strengthen Balance Return Capital to on Cash Generation Capital Discipline Sheet Shareholders • Increase cash available • Improve cost structure • Reduce absolute debt • When deleveraging for debt reduction across the organization levels ta
Slide 5: Cash Flow-Enhancing Actions
Cash Flow-Enhancing Actions Immediate: Discontinue Dividend Payments • Board of directors has determined it is in the best interest of shareholders to cease paying a quarterly dividend, freeing approximately $25 million annually Underway: Curtail Production to Monetize Inventory • Production has bee
Slide 6: Company Overview
Company Overview © Compass Minerals 2024 6
Slide 7: Why Compass Minerals?
Why Compass Minerals? Resilient, durable, and competitively advantaged core businesses MAXIMIZE Advantaged assets and a Management team with SHAREHOLDER leading supplier of salt decades of experience products in North America VALUE optimizing mining and and the U.K. manufacturing operations Protassi
Slide 8: Essential Minerals Leader
Essential Minerals Leader $1,205M Compass Minerals is a leading global provider of essential minerals focused on safely delivering where and TOTAL SALES when it matters to help solve nature’s challenges for customers and communities. Every day, Compass Minerals produces what’s essential through the
Slide 9: Core Assets, Products and Markets
Core Assets, Products and Markets Proven world-class assets that would be impossible to replicate today ASSET FOOTPRINT CORE COMPETENCIES PRODUCTS MARKETS Goderich Mine Underground Extraction Rock Salt Deicing Cote Blanche Mine Chemical Salt Industrial Applications Winsford Mine Packaged Deicing Ogd
Slide 10: Salt Segment: Well-Positioned in a Unique Industry
Salt Segment: Well-Positioned in a Unique Industry Fundamental Characteristics Steady Price Improvement Despite Winter Variability Average Selling Price ($ per ton) Resilient, recession-resistant demand profile $90 $89 $75 Attractive Adj. EBITDA margins $60 $45 Advantaged assets yield competitive st
Slide 11: Plant Nutrition Segment: Strong Foothold in Key Areas
Plant Nutrition Segment: Strong Foothold in Key Areas Fundamental Characteristics HIGH Crop Chloride Sensitivity LOW Largest producer of SOP in western hemisphere • Typically supply ~70% of North American SOP demand Tree Nuts Avocado Potatoes Citrus Lettuce Alfalfa Attractive Adj. EBITDA margins Str
Slide 12: Fire-Retardant Business Update
Fire-Retardant Business Update 2Q24 Recap: Challenges with Magnesium Chloride-based Fire Retardants and Related Impacts • In March of 2024 Compass Minerals was informed of obstacles impacting the utilization of magnesium chloride-based fire retardants in aerial firefighting • No U.S. Forest Service
Slide 13: 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 $278 $1,000 $789 $200 $227 $219 $800 $181 $600 $100 $400 $200 $75 $3 $8 $10 $0 $- 1 2020 2021 2022 2023
Slide 14: Our ESG Strategy Informs Our Decisions and Business Practices
Our ESG Strategy Informs Our Decisions and Business Practices FISCAL 2023 HIGHLIGHTS Access at https://www.compassminerals.com/sustainability- report/compass-minerals-esg-report/ The use by Compass Minerals of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trad
Slide 15: 2024 Outlook and Guidance
2024 Outlook and Guidance 15
Slide 16: Salt Outlook and Guidance
Salt Outlook and Guidance Long-Term Attributes Near-Term Initiatives • Resilient, recession-resistant demand profile • Immediately curtail production at Goderich mine to drive inventory down in coming deicing season • Difficult to replicate asset base with important logistical advantages • Advance G
Slide 17: 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 18: Consolidated Guidance Summary
Consolidated Guidance Summary 2024 Adj. EBITDA Range (in millions) Salt $200 $210 Plant Nutrition 15 30 Fortress1 2 3 Lithium ~(5) ~(5) Other2 (52) (47) Corporate (55) (49) TOTAL $160 $191 2024 Capital Expenditure Range (in millions) Sustaining $80 $90 Lithium3 ~30 ~30 Fortress 5 10 TOTAL $115 $130
Slide 19: Appendix
Appendix
Slide 20: Special Items
Special Items Special Items Impacting Three Months Ended March 31, 2024 (unaudited, in millions, except per share data) Item Description Segment Line Item Amount Tax Effect1 After Tax EPS Impact Other operating Restructuring charges Corporate and Other expense $2.1 $--- $2.1 $0.05 Restructuring char
Slide 21: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Operating Earnings (unaudited, in millions) Three months ended Six months ended March 31, March 31, 2024 2023 2024 2023 Operating (loss) earnings $ (45.8) $ 47.9 $ (101.1) $ 75.8 Restructuring charges1 3.1 3.3 5.6 3.3 Loss on impairm
Slide 22: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Net Earnings (Loss) (unaudited, in millions) Three months ended Six months ended March 31, March 31, 2024 2023 2024 2023 Net loss $ (48.0) $ (21.6) $ (123.1) $ (21.9) Restructuring charges1 3.1 3.3 5.6 3.3 Loss on impairments2 108.1
Slide 23: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Six months ended March 31, March 31, 2024 2023 2024 2023 Net loss $ (48.0) $ (21.6) $ (123.1) $ (21.9) Interest expense 17.1 14.2 32.9 28.1 Income tax (benefit) expense (1
Slide 24: Salt Segment Performance
Salt Segment Performance Salt Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Six months ended March 31, March 31, 2024 2023 2024 2023 Sales $ 310.4 $ 360.5 $ 584.7 $ 668.6 Operating earnings $ 66.4 $ 73.1 $ 116.9 $ 120.2 Operating margin 21.4%
Slide 25: Salt Reconciliation of Non-GAAP Information
Salt Reconciliation of Non-GAAP Information Reconciliation for Salt Segment Adjusted Operating Earnings (unaudited, in millions) Three months ended Six months ended March 31, March 31, 2024 2023 2024 2023 Reported GAAP segment operating earnings $ 66.4 $ 73.1 $ 116.9 $ 120.2 Restructuring charges1 0
Slide 26: 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 Six months ended March 31, March 31, 2024 2023 2024 2023 Sales $ 50.1 $ 47.7 $ 99.8 $ 89.3 Operating (loss) earnings $ (53.4) $ (0.7) $ (55.7) $
Slide 27: Plant Nutrition Reconciliation of Non-GAAP Information
Plant Nutrition Reconciliation of Non-GAAP Information Reconciliation for Plant Nutrition Segment Adjusted Operating Earnings (unaudited, in millions) Three months ended Six months ended March 31, March 31, 2024 2023 2024 2023 Reported GAAP segment operating (loss) earnings $ (53.4) $ (0.7) $ (55.7)
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