Compass Minerals International, Inc. Announces Record Fourth-Quarter and Year-End Results.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. . -- 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 ) reported the following results today: --The company set new records for quarterly and full-year sales from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . Fourth-quarter sales were $283.1 million, up 28 percent from the year-ago quarter, and full-year sales increased 16 percent over the prior year to $742.3 million. Continuing operations exclude the results of the company's British general trade plant which was sold on December December: see month. 30, 2005. That plant's results are reported as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in the statement of operations See Income statement. . --Fourth-quarter net earnings from continuing operations were $9.3 million, or $0.29 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, compared to $18.9 million, or $0.59 per diluted share, in the 2004 period. Excluding special items from both years, fourth-quarter net earnings from continuing operations increased 53 percent over the prior-year quarter to $33.9 million, or $1.05 per diluted share. --Compass's 2005 net earnings from continuing operations were $26.8 million, or $0.84 per diluted share, compared with $47.8 million, or $1.50 per diluted share, in 2004. When special items are excluded from both years, 2005 net earnings from continuing operations increased 27 percent over the prior year to $52.0 million, or $1.62 per diluted share. --EBITDA from continuing operations declined by $4.3 million from 2004 to 2005, while 2005 adjusted 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 from continuing operations improved by $20.7 million, or 13 percent, over the prior year. --The company refinanced its 10-percent senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes with a bank credit facility and incurred expenses of $33.2 million in connection with the transaction. "We posted solid growth in both of our segments in addition to the 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. sales boost that the December snows gave us," 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. "We also took advantage of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rates to restructure some of our debt, and we monetized an underperforming asset underperforming asset An asset that earns a lower rate of return than it would be capable of earning if it were properly used. A firm with underperforming assets is a prime target for takeover. Compare nonperforming asset. in the fourth quarter so that we can make better use of our shareholders' money. In short, our disciplined focus on growing the fundamental value of the company yielded strong 2005 results, which led the board to increase our quarterly dividend by 11 percent to $0.305 per share."
Financial Results for Continuing Operations(a)
(in millions except for EPS)
======================================================================
Three months Twelve months
ended Dec. 31, ended Dec. 31,
--------------------------------
2005 2004 2005 2004
--------------------------------
Sales $283.1 $221.2 $742.3 $639.9
Sales less shipping and handling
(product sales) 195.0 157.8 515.1 457.4
Net earnings from continuing
operations 9.3 18.9 26.8 47.8
Net earnings from continuing
operations, excluding special items 33.9 22.1 52.0 40.9
Diluted per-share earnings from
continuing operations 0.29 0.59 0.84 1.50
Diluted per-share earnings from
continuing operations, excluding
special items 1.05 0.68 1.62 1.28
EBITDA 43.1 51.5 144.2 148.5
Adjusted EBITDA 77.4 60.2 182.9 162.2
(a) All periods exclude the effects of discontinued operations
Heavy December snows in the Great Lakes region The Great Lakes region can refer to:
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 salt volumes increased 28 percent and prices increased an average of nine percent over fourth-quarter 2004 levels. Robust consumer-deicing salt sales and growth in the company's water conditioning salt products helped boost general trade salt volumes by 11 percent over the 2004 quarter, and previously announced price increases contributed to a quarter-over-quarter average price improvement of seven percent. For the full year, salt sales improved 16 percent over 2004 levels as a result of price improvements; severe winter weather in the first and fourth quarters, which benefited both highway deicing and general trade sales; and growth in the company's water-conditioning product lines. Compass estimates that heavier-than-normal December snowfalls contributed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $35 million to $45 million to fourth-quarter 2005 revenues and approximately $8 million to $12 million to fourth-quarter 2005 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 . For the full year, the company estimates that revenues benefited by approximately $60 million to $70 million from more-severe-than-average winter weather and operating earnings benefited by approximately $12 million to $18 million. Fourth-quarter 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 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. (SOP) revenues were up 10 percent over the prior-year quarter, though volumes were six percent lower year-over-year because of a shift of international sales from the fourth quarter to the third quarter of 2005. Full-year SOP sales improved 17 percent over 2004 primarily through price improvements. In December 2005, the company announced a $20 per ton price increase which took effect on February February: see month. 1, 2006.
Selected Sales Data
======================================================================
Three months Twelve months
ended Dec. 31, ended Dec. 31,
--------------------------------
2005 2004 2005 2004
--------------------------------
Sales Volumes (in thousands of tons):
Highway deicing 4,579 3,589 11,537 10,333
General trade(a) 840 758 2,529 2,404
Specialty potash 103 110 396 386
Average Sales Price (per ton):
Highway deicing $35.15 $32.31 $33.07 $30.85
General trade(a) 111.44 104.62 102.08 97.17
Specialty potash 278.64 235.29 259.56 226.88
----------------------------------------------------------------------
(a) Excludes discontinued operations
Shipping and handling costs were 31 percent of gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. in the fourth quarter and full year of 2005 compared with 29 percent of gross sales in the fourth quarter and full year of 2004. The year-over-year change reflects rising fuel costs and capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. which spurred increased transportation rates. Compass hedges its natural gas purchases, which helps protect the company from short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in gas prices. However, natural gas costs in the fourth quarter of 2005 were up approximately $1.6 million over the fourth quarter of 2004. Despite higher natural gas and input costs throughout the year, the company's cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold remained constant as a percent of gross sales year-over-year reflecting improved pricing throughout the company's product lines, economies of scale and savings generated by the company's Operational Excellence efficiency-improvement initiatives. Selling, general and administrative expenses declined by $2.2 million in the fourth quarter when compared to the fourth quarter of 2004 due to lower variable employee compensation costs, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and advertising expenses. For the year, SG&A costs were $1.3 million higher as a result of changes in foreign currency exchange rates and increased professional services costs. Accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the on the company's discount notes drove an interest expense increase of $0.9 million quarter-over-quarter and $2.6 million year-over-year. In December 2005, Compass incurred Other Expense of $33.2 million for its tender for $323.0 million principal amount of the company's 10-percent senior subordinated notes. Approximately $2 million principal amount of notes remains outstanding. The tender offer was financed with new senior secured credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities totaling $475.0 million. The facilities consist of a $350.0 million term loan due in 2012 and a $125.0 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility due in 2010. Other Expense also reflects interest income and foreign exchange losses. "We are continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. focused on enhancing our financial flexibility, and we made significant progress in 2005. In the fourth quarter, we completed a tender offer and refinancing Refinancing An extension and/or increase in amount of existing debt. that substantially eliminated one of our three high-interest Adj. 1. high-interest - (used of loans) charging a relatively large percentage of the amount borrowed low-interest - (used of loans) charging a relatively small percentage of the amount borrowed bond issuances and replaced it with lower-interest debt, which we can pre-pay at the company's discretion," said Mr. Ducey. Debt as of December 31, 2005, was $615.9 million compared to $583.1 million at December 31, 2004, and debt net of cash was $568.8 million at December 31, 2005, compared to $573.4 million in 2004. In 2005, the company's fourth-quarter income tax expense included a $4.1 million charge for its plan to repatriate repatriate To bring home assets that are currently held in a foreign country. Domestic corporations are frequently taxed on the profits that they repatriate, a factor inducing the firms to leave overseas the profits earned there. foreign funds in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Jobs Creation Act of 2004. Compass recorded a $3.7 million gain, net of tax, on the December 30, 2005, sale of its British general trade salt plant. Proceeds from the sale totaled $36.2 million. The company plans to contribute approximately $4 million of the proceeds to the pension plan of its British subsidiary. The remaining proceeds will be used for general corporate purposes, including debt reduction. Capital expenditures in 2005 were $4.9 million above the prior year due to the previously announced expansion of the company's magnesium chloride magnesium chloride Warning - High-alert drug! Chloromag, Mag 64, Mag Delay, Slo-Mag Pharmacologic class: Mineral Therapeutic class: production capacity at the Great Salt Lake and the installation of a new mill at its Goderich mine. Those projects are expected to be completed by mid-year 2006. Earnings Call Compass Minerals International will discuss its fourth-quarter and full-year 2005 financial results on a conference call tomorrow, February 14, at 10:00 a.m. ET. To access the conference call, interested parties should visit the company's website at www.CompassMinerals.com or dial 877-228-7138. Callers must provide the conference ID number 4435645. 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 may dial 706-643-0377. Replays of the call will be available on the company's website for two weeks. The replay can also be accessed by phone for seven days at 800-642-1687, conference ID 4435645. Outside of the U.S. and Canada, callers may dial 706-645-9291. About Compass Minerals International 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 second-leading salt producer in North America and the largest in the United Kingdom. The company operates eight production facilities, including the largest rock salt mine in the world in Goderich, Ontario Goderich (pronounced either God-rich or God-er-ich) is a town in the Canadian province of Ontario and is the county seat of Huron County. The town was founded by William "Tiger" Dunlop in 1827. . The company's product lines include salt for highway deicing, consumer deicing, water conditioning, consumer and industrial food preparation, agriculture and industrial applications. In addition, Compass is North America's leading producer of sulfate of potash, which is used in the production of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. fertilizers for high-value crops and turf turf: see lawn. turf In horticulture, the surface layer of soil with its matted, dense vegetation, usually grasses grown for ornamental or recreational use. , and magnesium chloride, which is a premium deicing and dust control agent. Non-GAAP Measures Management uses a variety of measures to evaluate the company's performance. In addition to using GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measures, such as gross profit, net earnings and cash flows generated by operating activities, management uses EBITDA, a non-GAAP financial measure, to evaluate the performance of our core business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . To effectively manage our resource allocation resource allocation Managed care The constellation of activities and decisions which form the basis for prioritizing health care needs , cost of capital and income tax positions, we evaluate the operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon on the basis of EBITDA. EBITDA is not calculated under GAAP and should not be considered in isolation or as a substitute for net earnings, cash flows or other financial data prepared in accordance with GAAP or as a measure of our overall profitability or liquidity. EBITDA excludes interest expense, income taxes and depreciation and amortization, each of which is an essential element of our cost structure and cannot be eliminated. Our borrowings are a significant component of our capital structure and interest expense is a continuing cost of debt. We are also required to pay income taxes. We have a significant investment in capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) , and depreciation and amortization reflect the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of those assets in order to generate revenues. Consequently, any measure that excludes these elements has material limitations. EBITDA does, however, include other cash and non-cash items which management believes are not indicative indicative: see mood. of the ongoing operating performance of our core business operations. Management excludes these items to calculate adjusted EBITDA. While EBITDA and adjusted EBITDA are frequently used as measures of operating performance, these terms are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the methods of calculation. Excluding special items from net earnings is meaningful to investors because it provides insight with respect to ongoing operating results of the company. Special items include costs to tender for our high-yield bonds High-yield bond See: Junk bond high-yield bond See junk bond. , termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of a management agreement and public offering costs, all net of tax; as well as charges to income tax expense for repatriating funds and the partial release of a tax reserve. Management's calculations of these measures are set forth in the tables below.
Reconciliation for EBITDA and Adjusted
EBITDA from Continuing Operations
(in millions)
======================================================================
Three months Twelve months
ended Dec. 31, ended Dec. 31,
--------------------------------
2005 2004 2005 2004
--------------------------------
Net earnings from continuing
operations $9.3 $18.9 $26.8 $47.8
Income tax expense 7.6 7.6 15.8 4.2
Interest expense 15.9 15.0 61.6 59.0
Depreciation, depletion and
amortization related to
continuing operations 10.3 10.0 40.0 37.5
--------------------------------
EBITDA $43.1 $51.5 $144.2 $148.5
Adjustments to earnings from
continuing operations:
Other charges(a) --- 4.9 --- 5.9
Other (income) expense, net(b) 34.3 3.8 38.7 7.8
--------------------------------
Adjusted EBITDA $77.4 $60.2 $182.9 $162.2
(a) Costs in the fourth quarter and full year of 2004 for secondary
offerings of our common stock by stockholders filed with the SEC
on Forms S-1 and S-3 and for Apollo Management LP's termination of
a management consulting agreement.
(b) Tender costs for our senior subordinated notes in the fourth
quarter of 2005 and interest income and foreign exchange gains and
losses in all periods.
Reconciliation for Net Earnings from Continuing
Operations, Excluding Special Items
(in millions)
======================================================================
Three months Twelve months
ended Dec. 31, ended Dec. 31,
--------------------------------
2005 2004 2005 2004
--------------------------------
Net earnings from continuing
operations $9.3 $18.9 $26.8 $47.8
Plus (less) special items:
Tender costs for senior subordinated
notes, net of tax(a) 20.5 --- 20.5 ---
Release of tax reserve, net of
other tax adjustments(b) --- --- (4.8) (11.1)
Charge to income tax expense for
repatriation of funds(c) 4.1 --- 9.5 ---
Termination of management consulting
agreement, net of tax(d) --- 2.8 --- 2.8
Stock offering costs(e) --- 0.4 --- 1.4
--------------------------------
Net earnings from continuing
operations, excluding special items $33.9 $22.1 $52.0 $40.9
(a) In the fourth quarter of 2005, we recorded costs of $33.2 million,
pre-tax, associated with the tender of $323.0 million principal
amount of the company's 10-percent senior subordinated notes
(b) In 2005, taxing authorities developed a framework to treat cross-
border transactions between the U.S. and Canada more consistently,
so we reversed previously recorded income tax reserves of $4.8
million, net of other income tax adjustments. We recorded a non-
cash benefit to earnings of $11.1 million in the third quarter of
2004 due to the release of part of the company's valuation
allowance for deferred tax assets.
(c) We recorded a $4.1 million charge to income tax expense in the
fourth quarter of 2005 for a planned repatriation of foreign funds
in accordance with the American Jobs Creation Act of 2004. We
recorded a $5.4 million charge to income tax expense due to a one-
time repatriation of funds from the U.K. in the first quarter of
2005.
(d) Pre-tax costs of $4.5 million were incurred when Apollo Management
LP terminated its management consulting agreement with the
company.
(e) We incurred costs of $0.4 million in the fourth quarter of 2004
and $1.4 million in the full year for secondary offerings of our
common stock by stockholders filed with the SEC on Forms S-1 and
S-3. The shares sold in each public offering were previously held
by stockholders and the company received no proceeds from the
sales.
COMPASS MINERALS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in millions, except share data)
Three months ended Twelve months ended
December 31, December 31,
----------------------------------------------------------------------
2005 2004 2005 2004
----------------------------------------------------------------------
Sales $283.1 $221.2 $742.3 $639.9
Cost of sales -
shipping and handling 88.1 63.4 227.2 182.5
Cost of sales -
products 112.5 90.0 315.8 277.6
----------- ----------- ----------- -----------
Gross profit 82.5 67.8 199.3 179.8
Selling, general and
administrative
expenses 15.4 17.6 56.4 55.1
Other charges --- 4.9 --- 5.9
----------- ----------- ----------- -----------
Operating earnings 67.1 45.3 142.9 118.8
Other (income)
expense:
Interest expense 15.9 15.0 61.6 59.0
Other, net 34.3 3.8 38.7 7.8
----------- ----------- ----------- -----------
Earnings from
continuing operations
before income taxes 16.9 26.5 42.6 52.0
Income tax expense 7.6 7.6 15.8 4.2
----------- ----------- ----------- -----------
Net earnings from
continuing operations 9.3 18.9 26.8 47.8
Net earnings from
discontinued
operations, net
of income taxes 0.4 1.0 0.4 2.0
Gain from the sale of
discontinued
operations, net
of income taxes 3.7 --- 3.7 ---
----------- ----------- ----------- -----------
Net earnings $13.4 $19.9 $30.9 $49.8
=========== =========== =========== ===========
Basic net earnings per
share:
Continuing
operations $0.29 $0.61 $0.85 $1.56
Discontinued
operations 0.13 0.04 0.13 0.07
Basic net earnings per
share 0.42 0.65 0.98 1.63
Diluted net earnings
per share:
Continuing
operations $0.29 $0.59 $0.84 $1.50
Discontinued
operations 0.13 0.03 0.13 0.07
Diluted net earnings
per share 0.42 0.62 0.97 1.57
Cash dividends per
share $0.275 $0.250 $1.10 $0.9375
Basic weighted-average
shares outstanding 31,786,518 30,875,070 31,487,975 30,604,597
Diluted weighted-
average shares
outstanding 32,180,463 32,300,692 32,049,632 31,816,202
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)
December 31, December 31,
2005 2004
------------ ------------
ASSETS
Cash and cash equivalents $47.1 $9.7
Receivables, net 183.0 143.0
Inventories 81.5 96.3
Other current assets 22.8 17.0
Property, plant and equipment, net 366.1 402.9
Intangible assets, net 22.5 23.6
Other non-current assets 27.3 31.4
------------ ------------
Total assets $750.3 $723.9
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities $139.4 $134.9
Long-term debt, net of current portion 612.4 582.7
Deferred income taxes and other noncurrent
liabilities 77.6 94.7
Total stockholders' equity (deficit) (79.1) (88.4)
------------ ------------
Total liabilities and stockholders'
equity (deficit) $750.3 $723.9
============ ============
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in millions)
Twelve months ended
December 31,
---------------------
2005 2004
---------- ----------
Net cash provided by operating activities $87.9 $99.7
---------- ----------
Cash flows from investing activities:
Capital expenditures (31.8) (26.9)
Proceeds from sale of discontinued operations 36.2 ---
Other (3.6) 0.9
---------- ----------
Net cash provided by (used in) investing
activities 0.8 (26.0)
---------- ----------
Cash flows from financing activities:
Proceeds from the issuance of long-term debt 350.0 ---
Principal payments on long-term debt (360.7) (40.6)
Revolver activity 20.0 (3.0)
Tender premium and fees paid to redeem debt (26.5) ---
Dividends paid (34.7) (28.7)
Proceeds from stock option exercises 1.5 1.2
Deferred financing costs (3.4) (0.1)
---------- ----------
Net cash used in financing activities (53.8) (71.2)
---------- ----------
Effect of exchange rate changes on cash
and cash equivalents 2.5 4.6
---------- ----------
Net increase in cash and cash equivalents 37.4 7.1
Cash and cash equivalents, beginning of period 9.7 2.6
---------- ----------
Cash and cash equivalents, end of period $47.1 $9.7
========== ==========
COMPASS MINERALS INTERNATIONAL, INC.
CONSOLIDATED QUARTERLY STATEMENTS OF OPERATIONS
(NET OF DISCONTINUED OPERATIONS) (unaudited)
(in millions, except share data, sales tons and average sales price)
Three months ended
-----------------------------------------------
3/31/05 6/30/05 9/30/05 12/31/05
-----------------------------------------------
Sales $254.0 $97.7 $107.5 283.1
Cost of sales -
shipping and handling 83.0 25.5 30.6 88.1
Cost of sales -
products 99.5 51.1 52.7 112.5
-----------------------------------------------
Gross profit 71.5 21.1 24.2 82.5
Selling, general and
administrative
expenses 15.0 12.5 13.5 15.4
-----------------------------------------------
Operating earnings 56.5 8.6 10.7 67.1
Other (income) expense:
Interest expense 15.0 15.3 15.4 15.9
Other, net 0.2 0.8 3.4 34.3
-----------------------------------------------
Earnings (loss) from
continuing operations
before income taxes 41.3 (7.5) (8.1) 16.9
Income tax expense
(benefit) 18.8 (7.3) (3.3) 7.6
-----------------------------------------------
Net earnings (loss)
from continuing
operations 22.5 (0.2) (4.8) 9.3
Net earnings (loss)
from discontinued
operations, net of
income taxes 0.1 (0.5) 0.4 0.4
Gain from the sale of
discontinued
operations, net of
income taxes - - - 3.7
-----------------------------------------------
Net earnings (loss) $22.6 $(0.7) $(4.4) 13.4
===============================================
Basic net earnings
(loss) per share:
Continuing operations $0.72 $(0.02) $(0.15) $0.29
Discontinued operations 0.01 (0.01) 0.01 0.13
-----------------------------------------------
Basic net earnings
(loss) per share $0.73 $(0.03) $(0.14) $0.42
===============================================
Diluted net earnings
(loss) per share:
Continuing operations $0.70 $(0.02) $(0.15) $0.29
Discontinued operations - (0.01) 0.01 0.13
-----------------------------------------------
Diluted net earnings
(loss) per share $0.70 $(0.03) $(0.14) $0.42
===============================================
Basic weighted-average
shares outstanding 31,140,713 31,430,900 31,593,768 31,786,518
Diluted weighted-
average shares
outstanding 32,323,129 31,430,900 31,593,768 32,180,463
General Trade Sales
Volumes (in thousands
of tons) 626 510 552 840
General Trade Average
Sales Price (per ton) $99.93 $94.09 $97.73 $111.44
COMPASS MINERALS INTERNATIONAL, INC.
SEGMENT INFORMATION (unaudited)
(in millions)
Quarter Results
----------------------------------------------------------------------
Three months ended Dec. 31, 2005 Salt Potash Other(d) Total
----------------------------------------------------------------------
Sales to external customers(a) $254.6 $28.5 $--- $283.1
Intersegment sales --- 3.9 (3.9) ---
Cost of sales - shipping and handling
costs(a) 84.2 3.9 --- 88.1
Operating earnings (loss)(a) 64.8 9.7 (7.4) 67.1
Depreciation, depletion and
amortization(b) 9.3 2.1 --- 11.4
Total assets 585.9 134.4 30.0 750.3
Three months ended Dec. 31, 2004 Salt Potash Other(d) Total
----------------------------------------------------------------------
Sales to external customers(a) 195.3 $25.9 $--- 221.2
Intersegment sales --- 3.9 (3.9) ---
Cost of sales - shipping and handling
costs(a) 59.4 4.0 --- 63.4
Operating earnings (loss)(a) 47.4 6.5 (8.6) 45.3
Depreciation, depletion and
amortization(b) 8.8 2.1 --- 10.9
Total assets 555.1 134.9 33.9 723.9
Full-Year Results
----------------------------------------------------------------------
Twelve months ended Dec. 31, 2005 Salt Potash Other(d) Total
----------------------------------------------------------------------
Sales to external customers(a) $639.6 $102.7 $--- $742.3
Intersegment sales --- 11.0 (11.0) ---
Cost of sales - shipping and
handling costs(a) 212.4 14.8 --- 227.2
Operating earnings (loss)(a) 138.0 30.2 (25.3) 142.9
Depreciation, depletion and
amortization(c) 35.2 8.4 --- 43.6
Twelve months ended Dec. 31, 2004 Salt Potash Other(d) Total
----------------------------------------------------------------------
Sales to external customers(a) $552.3 $87.6 $--- $639.9
Intersegment sales --- 11.3 (11.3) ---
Cost of sales - shipping and
handling costs(a) 168.7 13.8 --- 182.5
Operating earnings (loss)(a) 123.5 20.7 (25.4) 118.8
Depreciation, depletion and
amortization(c) 33.2 8.1 --- 41.3
(a) Excludes the effects of discontinued operations
(b) Includes $0.9 million of expense related to discontinued
operations for both 2005 and 2004
(c) Includes $3.6 million and $3.8 million of expense related to
discontinued operations for 2005 and 2004, respectively
(d) Includes corporate entities and eliminations
COMPASS MINERALS INTERNATIONAL, INC.
SUPPLEMENTAL SEGMENT INFORMATION (unaudited)
(in millions)
2005 Quarter Results
----------------------------------------------------------------------
Three months ended March 31, 2005 Salt Potash Other(c) Total
----------------------------------------------------------------------
Sales to external customers(a) $229.2 $24.8 $--- $254.0
Intersegment sales --- 2.0 (2.0) ---
Cost of sales - shipping and
handling costs(a) 79.0 4.0 --- 83.0
Operating earnings (loss)(a) 57.7 5.1 (6.3) 56.5
Depreciation, depletion and
amortization(b) 9.0 2.2 --- 11.2
Three months ended June 30, 2005 Salt Potash Other(c) Total
----------------------------------------------------------------------
Sales to external customers(a) $70.4 $27.3 $--- $97.7
Intersegment sales --- 2.8 (2.8) ---
Cost of sales - shipping and
handling costs(a) 21.5 4.0 --- 25.5
Operating earnings (loss)(a) 5.0 9.0 (5.4) 8.6
Depreciation, depletion and
amortization(b) 8.2 2.1 --- 10.3
Three months ended Sept. 30, 2005 Salt Potash Other(c) Total
----------------------------------------------------------------------
Sales to external customers(a) $85.4 $22.1 $--- $107.5
Intersegment sales --- 2.3 (2.3) ---
Cost of sales - shipping and
handling costs(a) 27.7 2.9 --- 30.6
Operating earnings (loss)(a) 10.5 6.4 (6.2) 10.7
Depreciation, depletion and
amortization(b) 8.7 2.0 --- 10.7
Three months ended Dec. 31, 2005 Salt Potash Other(c) Total
----------------------------------------------------------------------
Sales to external customers(a) $254.6 $28.5 $--- $283.1
Intersegment sales --- 3.9 (3.9) ---
Cost of sales - shipping and
handling costs(a) 84.2 3.9 --- 88.1
Operating earnings (loss)(a) 64.8 9.7 (7.4) 67.1
Depreciation, depletion and
amortization(b) 9.3 2.1 --- 11.4
(a) Excludes the effects of discontinued operations
(b) Includes $0.9 million of expense for each quarter in 2005
related to discontinued operations
(c) Includes corporate entities and eliminations
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. The differences could be caused by a number of factors including those factors identified in Compass Minerals International's annual report on form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 16, 2005. The Company will not update any forward-looking statements made in this press release to reflect future events or developments. |
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