Compass Minerals International, Inc. Announces Fourth Quarter and Yearend 2003 Results.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 Kan, river, China: see Gan. .--(BUSINESS WIRE)--Feb. 12, 2004 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. International, Inc. (NYSE NYSE See: New York Stock Exchange :CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information ), 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. , reported the following results: -- Fourth-quarter 2003 net income available for common stock was $15.9 million, or $0.50 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Exclusive of non-recurring items, net income available for common stock was $18.2 million, or $0.57 per diluted share. -- Full-year 2003 net income available for common stock was $34.2 million, or $1.01 per diluted share. Exclusive of non-recurring items, net income available for common stock was $28.3 million, or $0.83 per diluted share. -- Sales for the quarter were $202.1 million. Sales include revenues from the sale of products, or "product sales," as well as pass-through pass-through n. 1. An opening between two rooms, especially a shelved space between a kitchen and dining room that is used for passing food. 2. A route through which something is permitted to pass. 3. shipping and handling fees charged to customers to reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. us for shipping and handling costs incurred on their behalf. Fourth-quarter product sales were $146.1 million in 2003. -- Full-year 2003 sales were $600.6 million and product sales were $435.3 million.
Results Comparisons
(in thousands except for EPS)
======================================================================
4Q 2003 4Q 2002 FY 2003 FY 2002
----------------------------------------------------------------------
Net income available for common
stock $15.9 $15.9 $34.2 $8.3
----------------------------------------------------------------------
Net income available for common
stock excluding non-recurring
items 18.2 16.9 28.3 15.9
----------------------------------------------------------------------
Fully diluted EPS 0.50 0.44 1.01 0.23
----------------------------------------------------------------------
Fully diluted EPS, excluding
non-recurring items 0.57 0.47 0.83 0.45
----------------------------------------------------------------------
Adjusted EBITDA 53.5 51.4 140.1 122.4
----------------------------------------------------------------------
"Our strong fourth-quarter and full-year sales were driven by volume increases in both our 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 and general trade businesses," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. E. Ducey Ducey is a commune in the Manche département of the Basse-Normandie region of Northern France , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Compass Minerals International. "Our general trade business benefited from increased demand for consumer deicing salt due to the above-average winter weather on the East Coast. The fourth-quarter increase in our highway deicing business was principally the result of a year-over-year increase in volume commitments secured by our sales force during the bid season. With brisk Brisk as a proper name may refer to:
The Company's board of directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly cash dividend of $0.1875 per share on its outstanding common stock, payable on March 15, 2004 to stockholders of record as of the close of business on March 1, 2004. Earnings Call Compass Minerals International, Inc. will discuss its fourth-quarter and 2003 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. financial results on a conference call on February February: see month. 12, 2004 at 10 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The call will be broadcast on the company's Web site at www.CompassMinerals.com and can be accessed by calling 877-228-7138. Outside of the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , callers should dial 706-643-0377. Slides for the presentation will be available on the Compass Minerals Web site immediately before the call. Replays of the call will be available on the company's Web site for two weeks. The replay can also be accessed by phone for seven days at 800-642-1687, Conference ID 5081653. Outside of the U.S. and Canada, callers should dial 706-645-9291. About Compass Minerals Based in the Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). metropolitan area, Compass is the largest producer of highway deicing salt in 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. and the United Kingdom and operates the largest rock salt mines in these regions. The company is also the third largest producer of general trade salt in North America and the second largest in the United Kingdom, serving major retailers, agricultural cooperatives An Agricultural cooperative is a cooperative where farmers pool their resources in certain areas. There are two primary types of agricultural cooperatives:
Non-GAAP Measures The Company's calculation of net income available for common stock excluding non-recurring items, "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 " (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) and should not be viewed as an alternative to GAAP measures of performance. Furthermore, such measures may not be comparable to the calculation of these measures by other companies. Management believes that these non-GAAP measures can assist investors in understanding our cost structure, cash flows and financial position. Management further believes it would be helpful to provide an analysis that describes our ability to satisfy our debt service, capital expenditures and working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. in terms of EBITDA and Adjusted EBITDA. The Company's financial covenants and ratios in our senior credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and indentures are also tied to measures that are calculated by adjusting EBITDA as described below. Excluding non-recurring items from net income available for common stock is meaningful to investors because it provides insight with respect to ongoing operating results of the Company. Certain statements in this press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. There can be 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 the Company's products, actions of the Company's competitors and the additional factors and risks contained in the Company's registration statement on Form S-1 filed with the Securities and Exchange Commission on December December: see month. 11, 2003.
Adjusted EBITDA Reconciliation
======================================================================
4Q 2003 4Q 2002 FY 2003 FY 2002
----------------------------------------------------------------------
Net income $15.9 $18.6 $27.2 $18.9
Income tax expense 7.4 12.1 8.4 11.4
Interest expense 15.8 10.6 56.3 42.4
Depreciation and amortization 10.9 8.4 42.1 37.1
--------------------------------
EBITDA 50.0 49.7 134.0 109.8
Adjustments to income from operations:
Restructuring and other charges 2.4 0.9 2.4 7.7
Other (income) expense (1) 1.1 0.8 3.7 4.9
--------------------------------
Adjusted EBITDA 53.5 51.4 140.1 122.4
================================
---------------
(1) "Other (income) expense" primarily includes losses on early
retirements of debt ($5.3 million in FY2002), costs related to
amending our senior credit facilities ($1.4 million in FY2003),
gain related to early extinguishment of debt ($1.9 million in
FY2003), interest income, and non-cash foreign exchange gains and
losses in all periods.
Net Income Available for Common Stock,
Excluding Non-recurring Items Reconciliation
======================================================================
4Q 2003 4Q 2002 FY 2003 FY 2002
-----------------------------------
Net income available for
common stock $15.9 $15.9 $34.2 $8.3
Plus (less) non-recurring items:
Transition costs, net of tax (a) --- 1.0 --- 7.6
Initial public offering costs, net
of tax (b) 2.3 --- 2.3 ---
Gain on redemption of preferred
stock (c) --- --- (8.2) ---
-----------------------------------
Net income available for common
stock, excluding non-recurring
items 18.2 16.9 28.3 15.9
===================================
-----------------
(a) In 2002, restructuring and other charges represent transition
costs that are non-recurring in nature and relate to charges
required to establish us as a self-sustaining entity. We incurred
$1.0 million and $7.7 million (approximately $1.0 million and $7.6
million, net of tax) of transition costs in the fourth-quarter and
full-year 2002, respectively, consisting primarily of one-time
compensation costs, costs to develop stand-alone tax and inventory
strategies, and costs associated with determining the post-closing
purchase price adjustment. No such costs were incurred in 2003.
(b) In fourth-quarter 2003, we incurred $2.4 million ($2.3 million,
net of tax) of costs directly related to the completion of our
initial public offering. The shares of common stock sold were
shares previously held by stockholders and we did not receive any
proceeds from the sale of shares. Therefore, the costs related
to the initial public offering were recorded as other charges on
our statement of operations.
(c) We recorded an $8.2 million gain on redemption of preferred stock
resulting from the repurchase of 14,704 shares of mandatorily
redeemable preferred stock in June 2003. The gain was treated as
an increase to net income available for common stock. No such
redemptions occurred in 2002.
COMPASS MINERALS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited - in millions, except share data)
4Q 2003 4Q 2002 FY 2003 FY 2002
------------------------------------------------
Sales $202.1 $165.7 $600.6 $502.6
Cost of sales -
shipping and handling 56.0 46.3 165.3 137.5
Cost of sales -
products 88.8 65.9 288.3 239.2
------------------------------------------------
Gross profit 57.3 53.5 147.0 125.9
Selling, general and
administrative expenses 14.7 10.5 49.0 40.6
Restructuring and
other charges 2.4 0.9 2.4 7.7
------------------------------------------------
Operating earnings 40.2 42.1 95.6 77.6
Other (income) expense:
Interest expense 15.8 10.6 56.3 42.4
Other, net 1.1 0.8 3.7 4.9
------------------------------------------------
Income before income taxes 23.3 30.7 35.6 30.3
Income tax expense 7.4 12.1 8.4 11.4
------------------------------------------------
Net income 15.9 18.6 27.2 18.9
Dividends on redeemable
preferred stock --- 2.7 1.2 10.6
Gain on redemption of
preferred stock --- --- (8.2) ---
------------------------------------------------
Net income available
for common stock 15.9 15.9 34.2 8.3
================================================
Net income per share, basic 0.53 0.45 1.05 0.24
Net income per share,
diluted 0.50 0.44 1.01 0.23
Basic weighted-average
shares outstanding 30,173,200 35,103,830 32,492,792 35,039,110
Diluted weighted-average
shares outstanding 32,074,416 36,064,684 33,983,983 35,474,539
Sales Volumes
(in thousands of tons)
======================================================================
4Q 2003 4Q 2002 FY 2003 FY 2002
--------------------------------------
Highway Deicing 3,308 2,699 9,663 7,965
General Trade 885 860 2,927 2,786
Specialty potash fertilizers 68 61 251 242
COMPASS MINERALS INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
December 31, 2003 and 2002
(condensed and unaudited - in millions)
2003 2002
-------------------
Cash and cash equivalents $2.6 $11.9
Receivables, net 117.4 94.5
Inventories 96.7 96.5
Other current assets 3.7 0.7
Property, plant and equipment, net 262.0 263.4
Intangible assets - mineral interests and other, net 172.7 149.8
Other non-current assets 31.4 27.3
-------------------
Total assets $686.5 $644.1
===================
Current liabilities 114.0 102.6
Long-term debt, net of current portion 602.5 503.3
Notes due to related parties, including accrued
interest --- 3.3
Deferred income taxes 95.7 99.2
Other noncurrent liabilities 18.4 25.3
Redeemable preferred stock --- 19.1
Total stockholders' equity (deficit) (144.1) (108.7)
-------------------
Total liabilities and stockholders' equity
(deficit) $686.5 $644.1
===================
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