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 | |
COMPASS MINERALS INTERNATIONAL, INC. | ||
Date: February 11, 2019 | By: | /s/ James D. Standen |
Name: James D. Standen | ||
Title: Chief Financial Officer |
Exhibit 99.1 |
• | Solid year-over-year revenue growth of 6 percent driven by increases in Salt and Plant Nutrition North America sales |
• | Operating income down 15 percent compared to fourth quarter 2017, driven primarily by foreign exchange translation and CEO transition costs |
• | Net income totaled $51.0 million or $1.50 per diluted share |
• | Revenue growth achieved by all segments |
• | Strong full-year, local currency results for Plant Nutrition South America with revenue and operating earnings growth of 22 percent compared to prior year |
• | Cash flow from operations of approximately $191 million, up 30 percent from prior year |
Compass Minerals Financial Results (in millions, except for earnings per share) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sales | $ | 486.5 | $ | 457.9 | $ | 1,493.6 | $ | 1,364.4 | |||||||
Operating earnings | $ | 68.3 | $ | 80.4 | $ | 130.3 | $ | 159.2 | |||||||
Operating margin | 14.0 | % | 17.6 | % | 8.7 | % | 11.7 | % | |||||||
Adjusted operating earnings(1) | $ | 73.4 | $ | 80.4 | $ | 135.4 | $ | 163.5 | |||||||
Adjusted operating margin(1) | 15.1 | % | 17.6 | % | 9.1 | % | 12.0 | % | |||||||
Net earnings (loss) | $ | 51.0 | $ | (4.4 | ) | $ | 68.8 | $ | 42.7 | ||||||
Net earnings, excluding special items(1) | $ | 48.0 | $ | 56.2 | $ | 65.8 | $ | 93.3 | |||||||
Diluted earnings (loss) per share | $ | 1.50 | $ | (0.13 | ) | $ | 2.02 | $ | 1.25 | ||||||
Diluted earnings per share, excluding special items(1) | $ | 1.41 | $ | 1.66 | $ | 1.93 | $ | 2.75 | |||||||
EBITDA(1) | $ | 110.1 | $ | 109.8 | $ | 277.0 | $ | 277.8 | |||||||
Adjusted EBITDA(1) | $ | 106.8 | $ | 113.7 | $ | 273.3 | $ | 286.5 |
(1) | Adjusted operating earnings; adjusted operating margin; 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. |
Estimated Effect of Winter Weather on Salt Segment Performance (dollars in millions) | |||||||
Three months ended December 31, | Calendar year(1) | ||||||
2018 | 2017 | 2018 | 2017 | ||||
Favorable (unfavorable) to average weather: Sales | ($16) to ($18) | ($20) to ($25) | Negligible | ($50) to ($60) | |||
Operating earnings | ($6) to ($8) | ($6) to ($10) | Negligible | ($20) to ($25) |
(1) | Includes estimated impact for the three months ended March 31 and the three months ended December 31. |
2019 OUTLOOK FULL YEAR EBITDA: $310 million to $350 million | ||||
1H19 | FY19 | |||
Salt Segment | ||||
Volume | 10 million to 10.5 million tons | |||
Revenue | $350 million to $380 million | |||
EBITDA | $65 million to $80 million | |||
Plant Nutrition North America Segment | ||||
Volume | 350,000 to 400,000 tons | |||
Revenue | $100 million to $115 million | |||
EBITDA | $30 million to $40 million | |||
Plant Nutrition South America Segment | ||||
Volume | 800,000 to 900,000 tons | |||
Revenue | $150 million to $170 million | |||
EBITDA | $10 million to $20 million | |||
Corporate | ||||
Corporate and other expense (excluding depreciation) | $50 million to $55 million | |||
Interest expense | $65 million to $67 million | |||
Depreciation, depletion and amortization | $140 million to $145 million | |||
Capital expenditures | $95 million to $105 million | |||
Effective tax rate | 27% to 28% |
Investor Contact | Media Contact |
Theresa L. Womble | Tara Hefner |
Director of Investor Relations | Director of Corporate Affairs |
+1.913.344.9362 | +1.913.344.9319 |
womblet@compassminerals.com | MediaRelations@compassminerals.com |
Special Items Impacting the Three and Twelve Months ended December 31, 2018 (unaudited, in millions, except share data) | ||||||||||||||
Item description | Segment | Line item | Amount | Tax effect | After tax | EPS impact | ||||||||
CEO transition costs(1) | Corporate & other | SG&A | $ | (5.1 | ) | $ | 1.3 | $ | (3.8 | ) | $ | (0.11 | ) | |
Tax on repatriated monies | Corporate & other | Income tax expense | (3.4 | ) | — | (3.4 | ) | (0.10 | ) | |||||
Tax benefit of releasing certain deferred tax asset valuation allowances | Corporate & other | Income tax expense | 7.2 | — | 7.2 | 0.21 | ||||||||
Net impact of new U.S. tax law on 2017 | Corporate & other | Income tax expense | 3.0 | — | 3.0 | 0.09 | ||||||||
Totals | $ | 1.7 | $ | 1.3 | $ | 3.0 | $ | 0.09 |
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 tax legislation, the company recorded a provisional net charge of $46.8 million during the fourth quarter of 2017. |
Reconciliation for Adjusted Operating Earnings (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Operating earnings | $ | 68.3 | $ | 80.4 | $ | 130.3 | $ | 159.2 | |||||||
CEO transition costs(1) | 5.1 | — | 5.1 | — | |||||||||||
Restructuring charges | — | — | — | 4.3 | |||||||||||
Adjusted operating earnings | $ | 73.4 | $ | 80.4 | $ | 135.4 | $ | 163.5 | |||||||
Sales | 486.5 | 457.9 | 1,493.6 | 1,364.4 | |||||||||||
Adjusted operating margin | 15.1 | % | 17.6 | % | 9.1 | % | 12.0 | % |
Reconciliation for Net Earnings, Excluding Special Items (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net earnings (loss) | $ | 51.0 | $ | (4.4 | ) | $ | 68.8 | $ | 42.7 | ||||||
CEO transition costs, net of tax(1) | 3.8 | — | 3.8 | — | |||||||||||
One-time expense from U.S. & Canadian tax settlement | — | 13.8 | — | 13.8 | |||||||||||
Net impact of new U.S. tax law on 2017(2) | (3.0 | ) | 46.8 | (3.0 | ) | 46.8 | |||||||||
Tax benefit of releasing certain deferred tax asset valuation allowances | (7.2 | ) | — | (7.2 | ) | (13.0 | ) | ||||||||
Tax on repatriated monies | 3.4 | — | 3.4 | — | |||||||||||
Restructuring charges, net of tax | — | — | — | 3.0 | |||||||||||
Net earnings, excluding special items | $ | 48.0 | $ | 56.2 | $ | 65.8 | $ | 93.3 |
(2) | 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 tax legislation, the company recorded a provisional net charge of $46.8 million during the fourth quarter of 2017. In the fourth quarter of 2018, the company finalized the impact of this tax legislation on its 2017 results. |
Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net earnings (loss) | $ | 51.0 | $ | (4.4 | ) | $ | 68.8 | $ | 42.7 | ||||||
Interest expense | 18.0 | 13.4 | 62.5 | 52.9 | |||||||||||
Income tax expense | 7.8 | 67.7 | 8.8 | 60.0 | |||||||||||
Depreciation, depletion and amortization | 33.3 | 33.1 | 136.9 | 122.2 | |||||||||||
EBITDA | $ | 110.1 | $ | 109.8 | $ | 277.0 | $ | 277.8 | |||||||
Adjustments to EBITDA: | |||||||||||||||
Restructuring charges | — | — | — | 4.3 | |||||||||||
CEO transition costs(1) | 5.1 | — | 5.1 | — | |||||||||||
Other (income) expense, net (2) | (8.4 | ) | 3.9 | (8.8 | ) | 4.4 | |||||||||
Adjusted EBITDA | $ | 106.8 | $ | 113.7 | $ | 273.3 | $ | 286.5 |
(1) | The company incurred certain severance costs related to the transition of Mr. Malecha from his role as Chief Executive Officer and the appointment of Mr. Grant to Interim Chief Executive Officer. These costs related primarily to separation payments and benefits, including the accelerated vesting of certain equity awards. |
(2) | Primarily includes interest income and foreign exchange gains and losses. |
Salt Segment Performance (dollars in millions, except for sales volumes and prices per short ton) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sales | $ | 284.1 | $ | 260.7 | $ | 858.1 | $ | 769.2 | |||||||
Operating earnings | $ | 57.0 | $ | 59.4 | $ | 115.7 | $ | 138.0 | |||||||
Operating margin | 20.1 | % | 22.8 | % | 13.5 | % | 17.9 | % | |||||||
Adjusted operating earnings(1) | $ | 57.0 | $ | 59.4 | $ | 115.7 | $ | 140.0 | |||||||
Adjusted operating margin(1) | 20.1 | % | 22.8 | % | 13.5 | % | 18.2 | % | |||||||
EBITDA(1) | $ | 70.7 | $ | 75.3 | $ | 171.9 | $ | 193.0 | |||||||
EBITDA(1) margin | 24.9 | % | 28.9 | % | 20.0 | % | 25.1 | % | |||||||
Adjusted EBITDA(1) | $ | 70.7 | $ | 75.3 | $ | 171.9 | $ | 195.0 | |||||||
Adjusted EBITDA(1) margin | 24.9 | % | 28.9 | % | 20.0 | % | 25.4 | % | |||||||
Sales volumes (in thousands of tons): | |||||||||||||||
Highway deicing | 2,832 | 2,969 | 9,597 | 8,565 | |||||||||||
Consumer and industrial | 651 | 623 | 2,030 | 2,035 | |||||||||||
Total salt | 3,483 | 3,592 | 11,627 | 10,600 | |||||||||||
Average sales prices (per ton): | |||||||||||||||
Highway deicing | $ | 60.76 | $ | 53.25 | $ | 55.44 | $ | 53.13 | |||||||
Consumer and industrial | $ | 172.08 | $ | 164.55 | $ | 160.65 | $ | 154.34 | |||||||
Total salt | $ | 81.57 | $ | 72.57 | $ | 73.80 | $ | 72.56 |
(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. |
Reconciliation for Salt Segment Adjusted Operating Earnings (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported GAAP segment operating earnings | $ | 57.0 | $ | 59.4 | $ | 115.7 | $ | 138.0 | |||||||
Restructuring charges | — | — | — | 2.0 | |||||||||||
Segment adjusted operating earnings | $ | 57.0 | $ | 59.4 | $ | 115.7 | $ | 140.0 | |||||||
Segment sales | 284.1 | 260.7 | 858.1 | 769.2 | |||||||||||
Segment adjusted operating margin | 20.1 | % | 22.8 | % | 13.5 | % | 18.2 | % |
Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported GAAP segment operating earnings | $ | 57.0 | $ | 59.4 | $ | 115.7 | $ | 138.0 | |||||||
Depreciation, depletion and amortization | 13.7 | 15.9 | 56.2 | 55.0 | |||||||||||
Segment EBITDA | $ | 70.7 | $ | 75.3 | $ | 171.9 | $ | 193.0 | |||||||
Restructuring charges | — | — | — | 2.0 | |||||||||||
Segment adjusted EBITDA | $ | 70.7 | $ | 75.3 | $ | 171.9 | $ | 195.0 | |||||||
Segment sales | 284.1 | 260.7 | 858.1 | 769.2 | |||||||||||
Segment adjusted EBITDA margin | 24.9 | % | 28.9 | % | 20.0 | % | 25.4 | % |
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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sales | $ | 86.8 | $ | 70.0 | $ | 233.2 | $ | 210.0 | |||||||
Operating earnings | $ | 13.9 | $ | 10.2 | $ | 25.3 | $ | 27.7 | |||||||
Operating margin | 16.0 | % | 14.6 | % | 10.8 | % | 13.2 | % | |||||||
Adjusted operating earnings(1) | $ | 13.9 | $ | 10.2 | $ | 25.3 | $ | 28.9 | |||||||
Adjusted operating(1) margin | 16.0 | % | 14.6 | % | 10.8 | % | 13.8 | % | |||||||
EBITDA(1) | $ | 25.4 | $ | 20.4 | $ | 73.9 | $ | 64.6 | |||||||
EBITDA(1) margin | 29.3 | % | 29.1 | % | 31.7 | % | 30.8 | % | |||||||
Adjusted EBITDA(1) | $ | 25.4 | $ | 20.4 | $ | 73.9 | $ | 65.8 | |||||||
Adjusted EBITDA(1) margin | 29.3 | % | 29.1 | % | 31.7 | % | 31.3 | % | |||||||
Sales volumes (in thousands of tons) | 131 | 105 | 362 | 327 | |||||||||||
Average sales price (per ton) | $ | 662 | $ | 666 | $ | 645 | $ | 642 |
(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. |
Reconciliation for Plant Nutrition North America Segment Adjusted Operating Earnings (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported GAAP segment operating earnings | $ | 13.9 | $ | 10.2 | $ | 25.3 | $ | 27.7 | |||||||
Restructuring charges | — | — | — | 1.2 | |||||||||||
Segment adjusted operating earnings | $ | 13.9 | $ | 10.2 | $ | 25.3 | $ | 28.9 | |||||||
Segment sales | 86.8 | 70.0 | 233.2 | 210.0 | |||||||||||
Segment adjusted operating margin | 16.0 | % | 14.6 | % | 10.8 | % | 13.8 | % |
Reconciliation for Plant Nutrition North America Segment EBITDA and Adjusted EBITDA (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported GAAP segment operating earnings | $ | 13.9 | $ | 10.2 | $ | 25.3 | $ | 27.7 | |||||||
Depreciation, depletion and amortization | 11.5 | 10.2 | 48.6 | 36.9 | |||||||||||
Segment EBITDA | $ | 25.4 | $ | 20.4 | $ | 73.9 | $ | 64.6 | |||||||
Restructuring charges | — | — | — | 1.2 | |||||||||||
Segment adjusted EBITDA | $ | 25.4 | $ | 20.4 | $ | 73.9 | $ | 65.8 | |||||||
Segment sales | 86.8 | 70.0 | 233.2 | 210.0 | |||||||||||
Segment adjusted EBITDA margin | 29.3 | % | 29.1 | % | 31.7 | % | 31.3 | % |
Plant Nutrition South America Segment Performance (dollars in millions, except for prices per short ton) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sales | $ | 113.2 | $ | 124.4 | $ | 391.8 | $ | 375.0 | |||||||
Operating earnings | $ | 16.0 | $ | 25.1 | $ | 48.7 | $ | 49.1 | |||||||
Operating margin | 14.1 | % | 20.2 | % | 12.4 | % | 13.1 | % | |||||||
EBITDA(1) | $ | 21.8 | $ | 29.7 | $ | 71.9 | $ | 72.5 | |||||||
EBITDA(1) margin | 19.3 | % | 23.9 | % | 18.4 | % | 19.3 | % | |||||||
Sales volumes (in thousands of tons) | |||||||||||||||
Agriculture | 130 | 130 | 461 | 432 | |||||||||||
Chemical solutions | 78 | 75 | 300 | 289 | |||||||||||
Total sales volumes | 208 | 205 | 761 | 721 | |||||||||||
Average sales prices (per ton): | |||||||||||||||
Agriculture | $ | 700 | $ | 753 | $ | 644 | $ | 632 | |||||||
Chemical Solutions | $ | 283 | $ | 347 | $ | 316 | $ | 351 | |||||||
Total Plant Nutrition South America | $ | 543 | $ | 605 | $ | 515 | $ | 520 |
Reconciliation for Plant Nutrition South America Segment EBITDA (unaudited, in millions) | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported GAAP segment operating earnings | $ | 16.0 | $ | 25.1 | $ | 48.7 | $ | 49.1 | |||||||
Depreciation, depletion and amortization | 5.7 | 4.4 | 22.2 | 22.6 | |||||||||||
Earnings in equity method investee | 0.1 | 0.2 | 1.0 | 0.8 | |||||||||||
Segment EBITDA | $ | 21.8 | $ | 29.7 | $ | 71.9 | $ | 72.5 | |||||||
Segment sales | 113.2 | 124.4 | 391.8 | 375.0 | |||||||||||
Segment EBITDA margin | 19.3 | % | 23.9 | % | 18.4 | % | 19.3 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sales | $ | 486.5 | $ | 457.9 | $ | 1,493.6 | $ | 1,364.4 | |||||||
Shipping and handling cost | 98.2 | 87.7 | 320.0 | 267.5 | |||||||||||
Product cost | 273.7 | 246.2 | 879.7 | 770.3 | |||||||||||
Gross profit | 114.6 | 124.0 | 293.9 | 326.6 | |||||||||||
Selling, general and administrative expenses | 46.3 | 43.6 | 163.6 | 167.4 | |||||||||||
Operating earnings | 68.3 | 80.4 | 130.3 | 159.2 | |||||||||||
Other expense/(income): | |||||||||||||||
Interest expense | 18.0 | 13.4 | 62.5 | 52.9 | |||||||||||
Net earnings from equity investee | (0.1 | ) | (0.2 | ) | (1.0 | ) | (0.8 | ) | |||||||
Other, net | (8.4 | ) | 3.9 | (8.8 | ) | 4.4 | |||||||||
Earnings before income taxes | 58.8 | 63.3 | 77.6 | 102.7 | |||||||||||
Income tax expense | 7.8 | 67.7 | 8.8 | 60.0 | |||||||||||
Net earnings (loss) | $ | 51.0 | $ | (4.4 | ) | $ | 68.8 | $ | 42.7 | ||||||
Basic net earnings (loss) per common share | $ | 1.50 | $ | (0.13 | ) | $ | 2.02 | $ | 1.25 | ||||||
Diluted net earnings (loss) per common share | $ | 1.50 | $ | (0.13 | ) | $ | 2.02 | $ | 1.25 | ||||||
Cash dividends per share | $ | 0.72 | $ | 0.72 | $ | 2.88 | $ | 2.88 | |||||||
Weighted-average common shares outstanding (in thousands):(1) | |||||||||||||||
Basic | 33,853 | 33,828 | 33,848 | 33,819 | |||||||||||
Diluted | 33,853 | 33,828 | 33,848 | 33,820 |
(1) | Excludes weighted participating securities such as RSUs and PSUs that receive non-forfeitable dividends, which consist of 195,000 and 186,000 weighted participating securities for the three and 12 months ended December 31, 2018, respectively, and 168,000 and 166,000 weighted participating securities for the three and 12 months ended December 31, 2017, respectively. |
December 31, | December 31, | ||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 27.0 | $ | 36.6 | |||
Receivables, net | 311.6 | 344.5 | |||||
Inventories | 266.6 | 289.9 | |||||
Other current assets | 116.0 | 66.5 | |||||
Property, plant and equipment, net | 1,052.0 | 1,138.1 | |||||
Intangible and other noncurrent assets | 594.7 | 695.4 | |||||
Total assets | $ | 2,367.9 | $ | 2,571.0 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current portion of long-term debt | $ | 43.5 | $ | 32.1 | |||
Other current liabilities | 239.8 | 235.9 | |||||
Long-term debt, net of current portion | 1,321.2 | 1,330.4 | |||||
Deferred income taxes and other noncurrent liabilities | 223.2 | 278.0 | |||||
Total stockholders' equity | 540.2 | 694.6 | |||||
Total liabilities and stockholders' equity | $ | 2,367.9 | $ | 2,571.0 |
COMPASS MINERALS INTERNATIONAL, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited, in millions) | |||||||
Twelve Months Ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Net cash provided by operating activities | $ | 190.7 | $ | 146.9 | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (96.8 | ) | (114.1 | ) | |||
Other, net | (2.8 | ) | (4.9 | ) | |||
Net cash used in investing activities | (99.6 | ) | (119.0 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility borrowings | 457.4 | 295.8 | |||||
Principal payments on revolving credit facility borrowings | (429.1 | ) | (232.0 | ) | |||
Proceeds from the issuance of long-term debt | 54.3 | 98.7 | |||||
Principal payments on long-term debt | (68.1 | ) | (123.8 | ) | |||
Dividends paid | (97.7 | ) | (97.5 | ) | |||
Acquisition-related contingent consideration payment | — | (14.7 | ) | ||||
Premium and other payments to refinance debt | — | (0.2 | ) | ||||
Deferred financing costs | (1.7 | ) | (0.7 | ) | |||
Proceeds received from stock option exercises | — | 0.3 | |||||
Other | (1.0 | ) | 0.7 | ||||
Net cash used in financing activities | (85.9 | ) | (73.4 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (14.8 | ) | 4.7 | ||||
Net change in cash and cash equivalents | (9.6 | ) | (40.8 | ) | |||
Cash and cash equivalents, beginning of the year | 36.6 | 77.4 | |||||
Cash and cash equivalents, end of period | $ | 27.0 | $ | 36.6 |
Three months ended December 31, 2018 | Salt | Plant Nutrition North America | Plant Nutrition South America | Corporate and Other(1) | Total | ||||||||||
Sales to external customers | $ | 284.1 | $ | 86.8 | $ | 113.2 | $ | 2.4 | $ | 486.5 | |||||
Intersegment sales | — | 2.1 | 0.8 | (2.9 | ) | — | |||||||||
Shipping and handling cost | 82.3 | 11.4 | 4.5 | — | 98.2 | ||||||||||
Operating earnings (loss)(2) | 57.0 | 13.9 | 16.0 | (18.6 | ) | 68.3 | |||||||||
Depreciation, depletion and amortization | 13.7 | 11.5 | 5.7 | 2.4 | 33.3 | ||||||||||
Total assets | 948.9 | 589.3 | 709.9 | 119.8 | 2,367.9 | ||||||||||
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 | ||||||||||
Twelve months ended December 31, 2018 | Salt | Plant Nutrition North America | Plant Nutrition South America | Corporate and Other(1) | Total | ||||||||||
Sales to external customers | $ | 858.1 | $ | 233.2 | $ | 391.8 | $ | 10.5 | $ | 1,493.6 | |||||
Intersegment sales | — | 5.6 | 3.4 | (9.0 | ) | — | |||||||||
Shipping and handling cost | 272.4 | 29.0 | 18.6 | — | 320.0 | ||||||||||
Operating earnings (loss)(2) | 115.7 | 25.3 | 48.7 | (59.4 | ) | 130.3 | |||||||||
Depreciation, depletion and amortization | 56.2 | 48.6 | 22.2 | 9.9 | 136.9 | ||||||||||
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 |
(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) | Corporate operating results for the three and twelve months ended December 31, 2018 include CEO transition costs of $5.1 million. Operating results for the twelve months ended December 31, 2017 includes $4.3 million of restructuring charges. |
,*^/#4'ZN/Z5$>N6'_!3;X+7IP?%RP\X_>V4X_DAK:L/^"@?P9U(
MKY?Q T5=QP/-\R+_ -"45XJG_!%CP&J -XH\3,V.3B$9_P#':MQ?\$8OARD0
M#:YXH=@.6\V(9_#97FU<#P-]C$UO_ 5_\BCVL/FWBHOXF"PK_P"WY+\IL]XL
M/VQOA/J6WR_B-X+7<,CS=7@A_P#0V%;-C^T)X!U-=UMXX\(7 P&S%K-LW!Z'
MAZ^>8?\ @C=\+TB"OJ'BF1N[?:D7/X;*N0?\$>/A*D*K))XJD;NW]H*N?P\N
MO-JX'A/_ )=XJM_X+3_5'N8?-?$+_E[@,/\ *M)?^VR/I:Q\^)^IPY _L*!4L=P.,&XF*@CCJBO^
M-?'GCO\ X/#?%=S=M_PC'P7\/6,&?E&J:U-=/CW,:1C-!7*S]WJ*_ G1O^#P
M;XE1WZ'4/A#X'FMOXEM]0NHY#]&8L/TKZ&^ '_!W/\)_&=W#:?$+X>^+/!,D
MA"M>6$\>K6B^[#$