Compass Minerals Group, Inc. Announces Second-Quarter 2002 Results/Investor Conference Call.Business Editors OVERLAND PARK Overland Park, city (1990 pop. 111,790), Johnson co., NE Kans., a residential suburb of Kansas City; inc. 1960. There is printing and publishing, and the manufacture of apparel, aircraft parts, cement, prepared foods, salt, chemicals, marine accessories, and signs. , Kan.--(BUSINESS WIRE)--Aug. 8, 2002 Compass Minerals Compass Minerals International (NYSE: CMP) is the second-leading salt producer in the United States and largest in the United Kingdom. Most of the salt produced is sold for highway de-icing. Group, Inc., a leading producer and marketer of salt and specialty potash potash: see potassium carbonate. potash Name used for various inorganic compounds of potassium, chiefly the carbonate (K2CO3), a white crystalline material formerly obtained from wood ashes. , today reported its financial results for the three months ended June 30, 2002. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before were $4.5 million, and consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $15.8 million for the June 2002 quarter. Consolidated EBITDA increased $2.3 million when compared to pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma consolidated EBITDA of the prior year. For the six months ended June 30, 2002, operating earnings and consolidated EBITDA were $32.0 million and $54.9 million, respectively, on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $176.0 million. In the prior-year period operating earnings were $45.0 million and pro forma consolidated EBITDA was $60.7 million. Compass Minerals Group was a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of IMC (Internet Mail Consortium, Santa Cruz, CA, www.imc.org) An industry trade association founded in 1996 by Paul Hoffman and Dave Crocker that promotes Internet e-mail standards and features. Global Inc. through November 27, 2001, when a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail was acquired by an affiliate of Apollo Management Apollo Management L.P. is a private equity L.P. firm, founded in 1990 by Leon Black (Apollo Advisors). Based in New York, it also has offices in Los Angeles and London. It has invested over $16 billion in companies inside and outside the of the United States. , L.P. in a recapitalization transaction. "Our non-deicing salt product lines have continued to show improvement year over year, as demonstrated in the June quarter," said Michael E. Ducey, President and Chief Executive Officer of Compass. "Our business has done a remarkable job of implementing the cost reduction programs we planned following the mild 2001/2002 winter season," Ducey continued, "and since our refinancing in April we have voluntarily repaid $20.0 million of the $150 million bank term loan, and have announced our intentions to voluntarily repay an additional $10 million of the bank term loan this month." The higher consolidated EBITDA for the three months ended June 30, 2002, was primarily due to higher prices and improving the product mix to higher value products in the General Trade salt product line. The lower consolidated EBITDA for the six months ended June 30, 2002, was driven almost entirely by winter weather related product sales in the March quarter. Annual highway deicing De-icing is the process of removing ice from a surface. Anti-icing is the process of preventing ice from forming on a surface. Deicing can be accomplished by mechanical methods (scraping), through the application of heat, by use of chemicals designed to lower sales volumes were lower in 2002 than in 2001 in both the U.K. and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . This was partially offset by an increase in prices of all product lines, primarily in North America. Net sales for the six months ended June 30, 2002, were $176.0 million, a 12.9% decrease from prior year pro forma net sales. Compass Minerals Group will be hosting an investor conference call on August 12 at 10:00 a.m. ET. The public is cordially invited to listen and participate by dialing the following toll-free number: 800/388-8975. Outside the U.S. dial: 973/694-2225. If you are unable to listen to the call at that time, the replay will be available 24 hours per day from 1:00 p.m. ET, August 12, 2002, to 11:59 p.m. ET, August 19, 2002, by dialing the following toll-free number: 800/428-6051. Outside the U.S. dial: 973/709-2089. (Replay code: 255661) Compass Minerals Group is the second-largest North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. producer of salt, the largest producer of salt in the United Kingdom and the largest North American producer of sulfate sulfate, chemical compound containing the sulfate (SO4) radical. Sulfates are salts or esters of sulfuric acid, H2SO4, formed by replacing one or both of the hydrogens with a metal (e.g., sodium) or a radical (e.g., ammonium or ethyl). of potash, a specialty fertilizer. Compass Minerals Group is 80.1% owned by Apollo Management L.P. and Company management, with the remainder owned by IMC Global Inc. Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the Company's current expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the statements. The Company can give no assurance that such expectations will prove to be correct. Factors that could cause the Company's results to differ materially from current expectations include: general economic and business conditions, industry trends, weather, raw material costs and availability, changes in demand for its products, actions of its competitors and the additional factors and risks contained in the Company's S-4 dated April 23, 2002. Furthermore, we do not claim or represent that the pro forma information presented is indicative of the results that would have been reported had the transactions actually occurred January 1, 2001 nor is it indicative of our future results. There can be no assurance that the assumptions used in the preparation of the pro forma financial information provided below will prove to be correct.
Compass Minerals Group
Consolidated and Combined Operating Results
(U.S. Dollars, in Millions)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2001 2001
2002 Pro Forma(2) 2002 Pro Forma(2)
-----------------------------------------
Net sales $ 62.1 $ 62.6 $ 176.0 $ 202.0
Cost of sales 45.7 46.6 120.0 136.0
--------- --------- --------- ---------
Gross profit 16.4 16.0 56.0 66.0
SG&A 9.7 10.7 19.3 21.0
Transition and other charges 2.2 -- 4.7 --
--------- --------- --------- ---------
Operating earnings $ 4.5 $ 5.3 $ 32.0 $ 45.0
========= ========= ========= =========
Consolidated EBITDA (1) $ 15.8 $ 13.5 $ 54.9 $ 60.7
========= ========= ========= =========
(1) Consolidated EBITDA approximates "Consolidated EBITDA" as defined
in both the indenture and our credit agreement for determining our
compliance with covenants contained in those agreements.
(2) Consolidated Pro Forma results represent results based on
adjustments described in the Unaudited Pro Forma Combined
Financial Information included in the Company's S-4 dated
April 23, 2002, applied to the three and six months ended
June 30, 2001. The unaudited pro forma adjustments, as described
in the notes in the Offering Circular, are based on available
information and upon certain assumptions that management believes
are reasonable.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion