Delaware (State or other jurisdiction of incorporation) | 36-3972986 (I.R.S. Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Exhibit Description | |
99.1 | ||
COMPASS MINERALS INTERNATIONAL, INC. | ||
Date: February 13, 2018 | By: | /s/ James D. Standen |
Name: James D. Standen | ||
Title: Chief Financial Officer |
Exhibit 99.1 |
• | Solid demand drove year-over-year increases in revenue for Plant Nutrition business |
• | Salt results pressured by a late start to winter |
• | One-time tax charges reduced fourth-quarter 2017 results to a loss of $0.13 per diluted share; excluding the tax charges, earnings per diluted share were $1.66 |
• | Produquímica fully integrated, contributed approximately $375 million in revenue and $49 million in operating earnings |
• | Most major capital investment projects to drive long-term growth completed |
• | Achieved $12 million in on-going savings from cost reduction program |
Compass Minerals Financial Results (in millions, except for earnings per share) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales | $ | 457.9 | $ | 443.2 | $ | 1,364.4 | $ | 1,138.0 | |||||||
Operating earnings | $ | 80.4 | $ | 65.3 | $ | 159.2 | $ | 174.6 | |||||||
Operating margin | 17.6 | % | 14.7 | % | 11.7 | % | 15.3 | % | |||||||
Adjusted operating earnings(1) | $ | 80.4 | $ | 76.8 | $ | 163.5 | $ | 186.1 | |||||||
Adjusted operating margin(1) | 17.6 | % | 17.3 | % | 12.0 | % | 16.4 | % | |||||||
Net (loss) earnings | $ | (4.4 | ) | $ | 97.6 | $ | 42.7 | $ | 162.7 | ||||||
Net earnings, excluding special items(1) | $ | 56.2 | $ | 46.1 | $ | 93.3 | $ | 111.2 | |||||||
Diluted (loss) earnings per share | $ | (0.13 | ) | $ | 2.87 | $ | 1.25 | $ | 4.79 | ||||||
Diluted earnings per share, excluding special items(1) | $ | 1.66 | $ | 1.35 | $ | 2.75 | $ | 3.27 | |||||||
EBITDA(1) | $ | 109.8 | $ | 153.0 | $ | 277.8 | $ | 321.7 | |||||||
Adjusted EBITDA(1) | $ | 113.7 | $ | 104.7 | $ | 286.5 | $ | 275.0 |
(1) | Adjusted operating earnings; net earnings, excluding special items; diluted earnings per share, excluding special items; EBITDA (earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA are non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in tables at the end of this press release. |
Salt Segment Performance (in millions, except for sales volumes and prices per short ton) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales | $ | 260.7 | $ | 265.0 | $ | 769.2 | $ | 811.9 | |||||||
Operating earnings | $ | 59.4 | $ | 64.6 | $ | 138.0 | $ | 200.6 | |||||||
Operating margin | 22.8 | % | 24.4 | % | 17.9 | % | 24.7 | % | |||||||
Adjusted operating earnings(1) | $ | 59.4 | $ | 64.6 | $ | 140.0 | $ | 200.6 | |||||||
Adjusted operating margin(1) | 22.8 | % | 24.4 | % | 18.2 | % | 24.7 | % | |||||||
EBITDA(1) | $ | 75.3 | $ | 77.1 | $ | 193.0 | $ | 247.3 | |||||||
EBITDA(1) margin | 28.9 | % | 29.1 | % | 25.1 | % | 30.5 | % | |||||||
Adjusted EBITDA(1) | $ | 75.3 | $ | 77.1 | $ | 195.0 | $ | 247.3 | |||||||
Adjusted EBITDA(1) margin | 28.9 | % | 29.1 | % | 25.4 | % | 30.5 | % | |||||||
Sales volumes (in thousands of tons): | |||||||||||||||
Highway deicing | 2,969 | 3,022 | 8,565 | 8,966 | |||||||||||
Consumer and industrial | 623 | 689 | 2,035 | 2,147 | |||||||||||
Total salt | 3,592 | 3,711 | 10,600 | 11,113 | |||||||||||
Average sales prices (per ton): | |||||||||||||||
Highway deicing | $ | 53.25 | $ | 51.94 | $ | 53.13 | $ | 54.73 | |||||||
Consumer and industrial | $ | 164.55 | $ | 156.81 | $ | 154.34 | $ | 149.63 | |||||||
Total salt | $ | 72.57 | $ | 71.42 | $ | 72.56 | $ | 73.06 |
(1) | Adjusted operating earnings, EBITDA and adjusted EBITDA are non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in tables at the end of this press release. |
Estimated Effect of Winter Weather on Salt Segment Performance (dollars in millions) | |||||||
Three months ended December 31, | Calendar year(1) | ||||||
2017 | 2016 | 2017 | 2016 | ||||
Favorable (unfavorable) to average weather: Sales | ($20) to ($25) | negligible | ($50) to ($60) | ($70) to ($80) | |||
Operating earnings | ($6) to ($10) | negligible | ($20) to ($25) | ($35) to ($40) |
(1) | Includes estimated impact for the three months ended March 31 and the three months ended December 31. |
Plant Nutrition North America Segment Performance (dollars in millions, except for prices per short ton) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales | $ | 70.0 | $ | 62.6 | $ | 210.0 | $ | 203.0 | |||||||
Operating earnings | $ | 10.2 | $ | 8.0 | $ | 27.7 | $ | 21.1 | |||||||
Operating margin | 14.6 | % | 12.8 | % | 13.2 | % | 10.4 | % | |||||||
Adjusted operating earnings(1) | $ | 10.2 | $ | 11.1 | $ | 28.9 | $ | 24.2 | |||||||
Adjusted operating(1) margin | 14.6 | % | 17.7 | % | 13.8 | % | 11.9 | % | |||||||
EBITDA(1) | $ | 20.4 | $ | 16.8 | $ | 64.6 | $ | 54.5 | |||||||
EBITDA(1) margin | 29.1 | % | 26.8 | % | 30.8 | % | 26.8 | % | |||||||
Adjusted EBITDA(1) | $ | 20.4 | $ | 19.9 | $ | 65.8 | $ | 57.6 | |||||||
Adjusted EBITDA(1) margin | 29.1 | % | 31.8 | % | 31.3 | % | 28.4 | % | |||||||
Sales volumes (in thousands of tons) | 105 | 95 | 327 | 313 | |||||||||||
Average sales price (per ton) | $ | 666 | $ | 657 | $ | 642 | $ | 648 |
(1) | Adjusted operating earnings, EBITDA and adjusted EBITDA are non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in tables at the end of this press release. |
Plant Nutrition South America Segment Performance (dollars in millions, except for prices per short ton) | |||||||||||
Three months ended December 31, | Full Year | ||||||||||
2017 | 2016 | 2017 | |||||||||
Sales | $ | 124.4 | $ | 113.5 | $ | 375.0 | |||||
Operating earnings | $ | 25.1 | $ | 8.0 | $ | 49.1 | |||||
Operating margin | 20.2 | % | 7.0 | % | 13.1 | % | |||||
Adjusted operating earnings(1) | $ | 25.1 | $ | 16.4 | $ | 49.1 | |||||
Adjusted operating(1) margin | 20.2 | % | 14.4 | % | 13.1 | % | |||||
EBITDA(1) | $ | 29.7 | $ | 13.3 | $ | 72.5 | |||||
EBITDA(1) margin | 23.9 | % | 11.7 | % | 19.3 | % | |||||
Adjusted EBITDA(1) | $ | 29.7 | $ | 21.7 | $ | 72.5 | |||||
Adjusted EBITDA(1) margin | 23.9 | % | 19.1 | % | 19.3 | % | |||||
Sales volumes (in thousands of tons) | |||||||||||
Agriculture | 130 | 122 | 432 | ||||||||
Chemical solutions | 75 | 72 | 289 | ||||||||
Total sales volumes | 205 | 194 | 721 | ||||||||
Average sales prices (per ton): | |||||||||||
Agriculture | $ | 753 | $ | 713 | $ | 632 | |||||
Chemical Solutions | $ | 347 | $ | 372 | $ | 351 | |||||
Total Plant Nutrition South America | $ | 605 | $ | 587 | $ | 520 |
(1) | Adjusted operating earnings, EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in tables at the end of this press release. |
2018 OUTLOOK: FULL YEAR EPS - $2.75 to $3.25 | ||||
1H18 | FY18 | |||
Salt Segment | ||||
Volume | 11.8 million to 12.6 million tons | |||
Revenue | $400 million to $440 million | |||
Operating earnings margin | 11% to 13% | |||
Plant Nutrition North America Segment | ||||
Volume | 320,000 to 350,000 tons | |||
Revenue | $90 million to $110 million | |||
Operating earnings margin | 10% to 12% | |||
Plant Nutrition South America Segment | ||||
Volume | 700,000 to 900,000 tons | |||
Revenue | $125 million to $150 million | |||
Operating earnings margin | 1% to 3% | |||
Corporate | ||||
Corporate and other expense | ~$60 million | |||
Interest expense | ~$53 million | |||
Depreciation, depletion and amortization | ~$137 million | |||
Capital expenditures | $100 million to $110 million | |||
Effective tax rate | ~26% |
Investor Contact | Media Contact |
Theresa L. Womble | Tara Hefner |
Director of Investor Relations | Manager of Corporate Affairs |
+1.913.344.9362 | +1.913.344.9319 |
womblet@compassminerals.com | MediaRelations@compassminerals.com |
Special Items Impacting the Three Months ended December 31, 2017 (unaudited, in millions, except share data) | ||||||||||||||
Item description | Segment | Line item | Amount | Tax effect | After tax | EPS impact | ||||||||
One-time expense from U.S. & Canadian tax settlement | Corporate & other | Income tax expense | $ | (13.8 | ) | $ | — | $ | (13.8 | ) | $ | (0.41 | ) | |
Net estimated impact of new U.S. tax law(1) | Corporate & other | Income tax expense | (46.8 | ) | — | (46.8 | ) | (1.38 | ) | |||||
Totals | $ | (60.6 | ) | $ | — | $ | (60.6 | ) | $ | (1.79 | ) |
(1) | On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act, which significantly changes U.S. corporate income tax laws by reducing the U.S. corporate income tax rate to 21% beginning in 2018 and imposes a one-time mandatory tax on previously deferred foreign earnings. As a result of this new tax legislation, the company recorded a provisional net charge of $46.8 million during the fourth quarter of 2017. |
Special Items Impacting the Twelve Months ended December 31, 2017 (unaudited, in millions, except share data) | ||||||||||||||
Item description | Segment | Line item | Amount | Tax effect | After tax | EPS impact | ||||||||
One-time expense from U.S. & Canadian tax settlement | Corporate & other | Income tax expense | $ | (13.8 | ) | $ | — | $ | (13.8 | ) | $ | (0.41 | ) | |
Net estimated impact of new U.S. tax law(1) | Corporate & other | Income tax expense | (46.8 | ) | — | (46.8 | ) | (1.38 | ) | |||||
Tax benefit of releasing certain deferred tax asset valuation allowances | Corporate & other | Income tax expense | 13.0 | — | 13.0 | 0.38 | ||||||||
Restructuring charges | Corporate & other | SG&A | (1.1 | ) | 0.4 | (0.7 | ) | (0.02 | ) | |||||
Restructuring charges | Salt | COGS and SG&A | (2.0 | ) | 0.7 | (1.3 | ) | (0.04 | ) | |||||
Restructuring charges | Plant Nutrition North America | COGS and SG&A | (1.2 | ) | 0.2 | (1.0 | ) | (0.03 | ) | |||||
Totals | $ | (51.9 | ) | $ | 1.3 | $ | (50.6 | ) | $ | (1.50 | ) |
(1) | On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act, which significantly changes U.S. corporate income tax laws by reducing the U.S. corporate income tax rate to 21% beginning in 2018 and imposes a one-time mandatory tax on previously deferred foreign earnings. As a result of this new tax legislation, the company recorded a provisional net charge of $46.8 million during the fourth quarter of 2017. |
Special Items Impacting the Three and Twelve Months ended December 31, 2016 (unaudited, in millions, except share data) | ||||||||||||||
Item description | Segment | Line item | Amount | Tax effect | After tax | EPS impact | ||||||||
Gain from remeasurement of equity method investment | Corporate & other | Separately stated | $ | 59.3 | $ | — | $ | 59.3 | $ | 1.75 | ||||
Business acquisition-related items(1) | Plant Nutrition South America | Product cost | (8.4 | ) | 2.8 | (5.6 | ) | (0.16 | ) | |||||
Indefinite-lived intangible asset impairment | Plant Nutrition North America | SG&A | (3.1 | ) | 0.9 | (2.2 | ) | (0.07 | ) | |||||
Totals | $ | 47.8 | $ | 3.7 | $ | 51.5 | $ | 1.52 |
(1) | Primarily includes additional expense recognized from the sale of finished goods inventory, which had its cost basis increased to fair value as a result of the acquisition of Produquímica. |
Reconciliation for Adjusted Operating Earnings (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating earnings | $ | 80.4 | $ | 65.3 | $ | 159.2 | $ | 174.6 | |||||||
Restructuring charges | — | — | 4.3 | — | |||||||||||
Business acquisition-related items(1) | — | 8.4 | — | 8.4 | |||||||||||
Indefinite-lived intangible asset impairment | — | 3.1 | — | 3.1 | |||||||||||
Adjusted operating earnings | $ | 80.4 | $ | 76.8 | $ | 163.5 | $ | 186.1 | |||||||
Sales | 457.9 | 443.2 | 1,364.4 | 1,138.0 | |||||||||||
Adjusted operating margin | 17.6 | % | 17.3 | % | 12.0 | % | 16.4 | % |
(1) | Primarily includes additional expense recognized from the sale of finished goods inventory, which had its cost basis increased to fair value as a result of the acquisition of Produquímica. |
Reconciliation for Net Earnings, Excluding Special Items (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net (loss) earnings | $ | (4.4 | ) | $ | 97.6 | $ | 42.7 | $ | 162.7 | ||||||
One-time expense from U.S. & Canadian tax settlement | 13.8 | — | 13.8 | — | |||||||||||
Net estimated impact of new U.S. tax law(1) | 46.8 | — | 46.8 | — | |||||||||||
Tax benefit of releasing certain deferred tax asset valuation allowances | — | — | (13.0 | ) | — | ||||||||||
Restructuring charges, net of tax | — | — | 3.0 | — | |||||||||||
Gain from remeasurement of equity method investment | — | (59.3 | ) | — | (59.3 | ) | |||||||||
Business acquisition-related items, net of tax(2) | — | 5.6 | — | 5.6 | |||||||||||
Indefinite-lived intangible asset impairment, net of tax | — | 2.2 | — | 2.2 | |||||||||||
Net earnings, excluding special items | $ | 56.2 | $ | 46.1 | $ | 93.3 | $ | 111.2 |
(1) | On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act, which significantly changes U.S. corporate income tax laws by reducing the U.S. corporate income tax rate to 21% beginning in 2018 and imposes a one-time mandatory tax on previously deferred foreign earnings. As a result of this new tax legislation, the company recorded a provisional net charge of $46.8 million during the fourth quarter of 2017. |
(2) | Primarily includes additional expense recognized from the sale of finished goods inventory, which had its cost basis increased to fair value as a result of the acquisition of Produquímica. |
Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net (loss) earnings | $ | (4.4 | ) | $ | 97.6 | $ | 42.7 | $ | 162.7 | ||||||
Interest expense | 13.4 | 17.3 | 52.9 | 34.1 | |||||||||||
Income tax expense | 67.7 | 10.5 | 60.0 | 34.6 | |||||||||||
Depreciation, depletion and amortization | 33.1 | 27.6 | 122.2 | 90.3 | |||||||||||
EBITDA | $ | 109.8 | $ | 153.0 | $ | 277.8 | $ | 321.7 | |||||||
Adjustments to EBITDA: | |||||||||||||||
Restructuring charges | — | — | 4.3 | — | |||||||||||
Gain from remeasurement of equity method investment | — | (59.3 | ) | — | (59.3 | ) | |||||||||
Business acquisition-related items(1) | — | 8.4 | — | 8.4 | |||||||||||
Indefinite-lived intangible asset impairment | — | 3.1 | — | 3.1 | |||||||||||
Other expense (income), net (2) | 3.9 | (0.5 | ) | 4.4 | 1.1 | ||||||||||
Adjusted EBITDA | $ | 113.7 | $ | 104.7 | $ | 286.5 | $ | 275.0 |
(1) | Primarily includes additional expense recognized from the sale of finished goods inventory, which had its cost basis increased to fair value as a result of the acquisition of Produquímica. |
(2) | Primarily includes interest income and foreign exchange gains and losses. The 12 months ended December 31, 2016, include a charge of $3.0 million related to the refinancing of the company's debt. |
Reconciliation for Salt Segment Adjusted Operating Earnings (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reported GAAP segment operating earnings | $ | 59.4 | $ | 64.6 | $ | 138.0 | $ | 200.6 | |||||||
Restructuring charges | — | — | 2.0 | — | |||||||||||
Segment adjusted operating earnings | $ | 59.4 | $ | 64.6 | $ | 140.0 | $ | 200.6 | |||||||
Segment sales | 260.7 | 265.0 | 769.2 | 811.9 | |||||||||||
Segment adjusted operating margin | 22.8 | % | 24.4 | % | 18.2 | % | 24.7 | % |
Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reported GAAP segment operating earnings | $ | 59.4 | $ | 64.6 | $ | 138.0 | $ | 200.6 | |||||||
Depreciation, depletion and amortization | 15.9 | 12.5 | 55.0 | 46.7 | |||||||||||
Segment EBITDA | $ | 75.3 | $ | 77.1 | $ | 193.0 | $ | 247.3 | |||||||
Restructuring charges | — | — | 2.0 | — | |||||||||||
Segment adjusted EBITDA | $ | 75.3 | $ | 77.1 | $ | 195.0 | $ | 247.3 | |||||||
Segment sales | 260.7 | 265.0 | 769.2 | 811.9 | |||||||||||
Segment adjusted EBITDA margin | 28.9 | % | 29.1 | % | 25.4 | % | 30.5 | % |
Reconciliation for Plant Nutrition North America Segment Adjusted Operating Earnings (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reported GAAP segment operating earnings | $ | 10.2 | $ | 8.0 | $ | 27.7 | $ | 21.1 | |||||||
Restructuring charges | — | — | 1.2 | — | |||||||||||
Indefinite-lived intangible asset impairment | — | 3.1 | — | 3.1 | |||||||||||
Segment adjusted operating earnings | $ | 10.2 | $ | 11.1 | $ | 28.9 | $ | 24.2 | |||||||
Segment sales | 70.0 | 62.6 | 210.0 | 203.0 | |||||||||||
Segment adjusted operating margin | 14.6 | % | 17.7 | % | 13.8 | % | 11.9 | % |
Reconciliation for Plant Nutrition North America Segment EBITDA and Adjusted EBITDA (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reported GAAP segment operating earnings | $ | 10.2 | $ | 8.0 | $ | 27.7 | $ | 21.1 | |||||||
Depreciation, depletion and amortization | 10.2 | 8.8 | 36.9 | 33.4 | |||||||||||
Segment EBITDA | $ | 20.4 | $ | 16.8 | $ | 64.6 | $ | 54.5 | |||||||
Restructuring charges | — | — | 1.2 | — | |||||||||||
Indefinite-lived intangible asset impairment | — | 3.1 | — | 3.1 | |||||||||||
Segment adjusted EBITDA | $ | 20.4 | $ | 19.9 | $ | 65.8 | $ | 57.6 | |||||||
Segment sales | 70.0 | 62.6 | 210.0 | 203.0 | |||||||||||
Segment adjusted EBITDA margin | 29.1 | % | 31.8 | % | 31.3 | % | 28.4 | % |
Reconciliation for Plant Nutrition South America Segment Adjusted Operating Earnings (unaudited, in millions) | |||||||||||
Three months ended December 31, | Full Year | ||||||||||
2017 | 2016 | 2017 | |||||||||
Reported GAAP segment operating earnings | $ | 25.1 | $ | 8.0 | $ | 49.1 | |||||
Business acquisition-related items(1) | — | 8.4 | — | ||||||||
Segment adjusted operating earnings | $ | 25.1 | $ | 16.4 | $ | 49.1 | |||||
Segment sales | 124.4 | 113.5 | 375.0 | ||||||||
Segment adjusted operating margin | 20.2 | % | 14.4 | % | 13.1 | % |
(1) | Primarily includes additional expense recognized from the sale of finished goods inventory, which had its cost basis increased to fair value as a result of the acquisition of Produquímica. |
Reconciliation for Plant Nutrition South America Segment EBITDA and Adjusted EBITDA (unaudited, in millions) | |||||||||||
Three months ended December 31, | Full Year | ||||||||||
2017 | 2016 | 2017 | |||||||||
Reported GAAP segment operating earnings | $ | 25.1 | $ | 8.0 | $ | 49.1 | |||||
Depreciation, depletion and amortization | 4.4 | 5.0 | 22.6 | ||||||||
Earnings in equity method investee | 0.2 | 0.3 | 0.8 | ||||||||
Segment EBITDA | $ | 29.7 | $ | 13.3 | $ | 72.5 | |||||
Business acquisition-related items(1) | — | 8.4 | — | ||||||||
Adjusted segment EBITDA | $ | 29.7 | $ | 21.7 | $ | 72.5 | |||||
Segment sales | 124.4 | 113.5 | 375.0 | ||||||||
Adjusted segment EBITDA margin | 23.9 | % | 19.1 | % | 19.3 | % |
(1) | Primarily includes additional expense recognized from the sale of finished goods inventory, which had its cost basis increased to fair value as a result of the acquisition of Produquímica. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales | $ | 457.9 | $ | 443.2 | $ | 1,364.4 | $ | 1,138.0 | |||||||
Shipping and handling cost | 87.7 | 80.0 | 267.5 | 244.9 | |||||||||||
Product cost | 246.2 | 252.8 | 770.3 | 593.6 | |||||||||||
Gross profit | 124.0 | 110.4 | 326.6 | 299.5 | |||||||||||
Selling, general and administrative expenses | 43.6 | 45.1 | 167.4 | 124.9 | |||||||||||
Operating earnings | 80.4 | 65.3 | 159.2 | 174.6 | |||||||||||
Other expense/(income): | |||||||||||||||
Interest expense | 13.4 | 17.3 | 52.9 | 34.1 | |||||||||||
Net (earnings) loss from equity investee | (0.2 | ) | (0.3 | ) | (0.8 | ) | 1.4 | ||||||||
Gain from remeasurement of equity method investment | — | (59.3 | ) | — | (59.3 | ) | |||||||||
Other, net | 3.9 | (0.5 | ) | 4.4 | 1.1 | ||||||||||
Earnings before income taxes | 63.3 | 108.1 | 102.7 | 197.3 | |||||||||||
Income tax expense | 67.7 | 10.5 | 60.0 | 34.6 | |||||||||||
Net (loss) earnings | $ | (4.4 | ) | $ | 97.6 | $ | 42.7 | $ | 162.7 | ||||||
Basic net (loss) earnings per common share | $ | (0.13 | ) | $ | 2.88 | $ | 1.25 | $ | 4.79 | ||||||
Diluted net (loss) earnings per common share | $ | (0.13 | ) | $ | 2.87 | $ | 1.25 | $ | 4.79 | ||||||
Cash dividends per share | $ | 0.720 | $ | 0.695 | $ | 2.88 | $ | 2.78 | |||||||
Weighted-average common shares outstanding (in thousands):(1) | |||||||||||||||
Basic | 33,828 | 33,788 | 33,819 | 33,776 | |||||||||||
Diluted | 33,828 | 33,793 | 33,820 | 33,780 |
(1) | Excludes weighted participating securities such as RSUs and PSUs that receive non-forfeitable dividends, which consist of 168,000 and 166,000 weighted participating securities for the three and 12 months ended December 31, 2017, respectively, and 165,000 and 164,000 weighted participating securities for the three and 12 months ended December 31, 2016, respectively. |
December 31, | December 31, | ||||||
2017 | 2016 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 36.6 | $ | 77.4 | |||
Receivables, net | 344.5 | 320.9 | |||||
Inventories | 289.9 | 280.6 | |||||
Other current assets | 66.5 | 36.1 | |||||
Property, plant and equipment, net | 1,138.1 | 1,092.3 | |||||
Intangible and other noncurrent assets | 695.4 | 659.2 | |||||
Total assets | $ | 2,571.0 | $ | 2,466.5 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current portion of long-term debt | $ | 32.1 | $ | 130.2 | |||
Other current liabilities | 235.9 | 241.8 | |||||
Long-term debt, net of current portion | 1,330.4 | 1,194.8 | |||||
Deferred income taxes and other noncurrent liabilities | 278.0 | 182.6 | |||||
Total stockholders' equity | 694.6 | 717.1 | |||||
Total liabilities and stockholders' equity | $ | 2,571.0 | $ | 2,466.5 |
COMPASS MINERALS INTERNATIONAL, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited, in millions) | |||||||
Twelve Months Ended | |||||||
December 31, | |||||||
2017 | 2016 | ||||||
Net cash provided by operating activities | $ | 146.9 | $ | 167.3 | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (114.1 | ) | (182.2 | ) | |||
Investment in equity method investee | — | (4.7 | ) | ||||
Acquisition of a business | — | (277.7 | ) | ||||
Other, net | (4.9 | ) | (3.2 | ) | |||
Net cash used in investing activities | (119.0 | ) | (467.8 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility borrowings | 295.8 | 384.3 | |||||
Principal payments on revolving credit facility borrowings | (232.0 | ) | (283.4 | ) | |||
Proceeds from the issuance of long-term debt | 98.7 | 850.9 | |||||
Principal payments on long-term debt | (123.8 | ) | (535.1 | ) | |||
Dividends paid | (97.5 | ) | (94.1 | ) | |||
Acquisition-related contingent consideration payment | (14.7 | ) | — | ||||
Premium and other payments to refinance debt | (0.2 | ) | (2.8 | ) | |||
Deferred financing costs | (0.7 | ) | (5.7 | ) | |||
Proceeds received from stock option exercises | 0.3 | 0.7 | |||||
Excess tax deficiencies from equity compensation awards | — | (0.2 | ) | ||||
Other | 0.7 | — | |||||
Net cash (used in) provided by financing activities | (73.4 | ) | 314.6 | ||||
Effect of exchange rate changes on cash and cash equivalents | 4.7 | 4.9 | |||||
Net change in cash and cash equivalents | (40.8 | ) | 19.0 | ||||
Cash and cash equivalents, beginning of the year | 77.4 | 58.4 | |||||
Cash and cash equivalents, end of period | $ | 36.6 | $ | 77.4 |
Three months ended December 31, 2017 | Salt | Plant Nutrition North America | Plant Nutrition South America | Corporate and Other(1) | Total | ||||||||||
Sales to external customers | $ | 260.7 | $ | 70.0 | $ | 124.4 | $ | 2.8 | $ | 457.9 | |||||
Intersegment sales | — | 2.1 | — | (2.1 | ) | — | |||||||||
Shipping and handling cost | 73.0 | 9.7 | 5.0 | — | 87.7 | ||||||||||
Operating earnings (loss) | 59.4 | 10.2 | 25.1 | (14.3 | ) | 80.4 | |||||||||
Depreciation, depletion and amortization | 15.9 | 10.2 | 4.4 | 2.6 | 33.1 | ||||||||||
Total assets | 1,030.6 | 601.1 | 808.0 | 131.3 | 2,571.0 | ||||||||||
Three months ended December 31, 2016 | Salt | Plant Nutrition North America | Plant Nutrition South America | Corporate and Other(1) | Total | ||||||||||
Sales to external customers | $ | 265.0 | $ | 62.6 | $ | 113.5 | $ | 2.1 | $ | 443.2 | |||||
Intersegment sales | — | 2.5 | — | (2.5 | ) | — | |||||||||
Shipping and handling cost | 66.8 | 7.8 | 5.4 | — | 80.0 | ||||||||||
Operating earnings (loss) | 64.6 | 8.0 | 8.0 | (15.3 | ) | 65.3 | |||||||||
Depreciation, depletion and amortization | 12.5 | 8.8 | 5.0 | 1.3 | 27.6 | ||||||||||
Total assets | 980.3 | 592.3 | 844.9 | 49.0 | 2,466.5 | ||||||||||
Twelve months ended December 31, 2017 | Salt | Plant Nutrition North America | Plant Nutrition South America | Corporate and Other(1) | Total | ||||||||||
Sales to external customers | $ | 769.2 | $ | 210.0 | $ | 375.0 | $ | 10.2 | $ | 1,364.4 | |||||
Intersegment sales | — | 6.5 | — | (6.5 | ) | — | |||||||||
Shipping and handling cost | 220.6 | 28.1 | 18.8 | — | 267.5 | ||||||||||
Operating earnings (loss)(2) | 138.0 | 27.7 | 49.1 | (55.6 | ) | 159.2 | |||||||||
Depreciation, depletion and amortization | 55.0 | 36.9 | 22.6 | 7.7 | 122.2 | ||||||||||
Twelve months ended December 31, 2016 | Salt | Plant Nutrition North America | Plant Nutrition South America | Corporate and Other(1) | Total | ||||||||||
Sales to external customers | $ | 811.9 | $ | 203.0 | $ | 113.5 | $ | 9.6 | $ | 1,138.0 | |||||
Intersegment sales | — | 5.2 | — | (5.2 | ) | — | |||||||||
Shipping and handling cost | 214.5 | 25.0 | 5.4 | — | 244.9 | ||||||||||
Operating earnings (loss) | 200.6 | 21.1 | 7.4 | (54.5 | ) | 174.6 | |||||||||
Depreciation, depletion and amortization | 46.7 | 33.4 | 5.0 | 5.2 | 90.3 |
(1) | Corporate and other includes corporate entities, records management operations and other incidental operations and eliminations. Operating earnings (loss) for corporate and other includes indirect corporate overhead including costs for general corporate governance and oversight, as well as costs for the human resources, information technology, legal and finance functions. |
(2) | Operating results for the 12 months ended December 31, 2017, include $4.3 million of restructuring charges. |
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