NYSE$CMP

Compass Minerals International Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Compass Minerals' first quarter of fiscal year 2024 was affected by mild weather and the termination of the lithium project, while the company is refocusing on core Salt and Plant Nutrition businesses to improve cash flow and returns.

Compass Minerals reported a net loss of $75.1 million for the first quarter of fiscal year 2024, impacted by a $77.3 million expense related to the termination of its lithium project. Despite weak winter weather, the Salt business saw a 7% increase in operating earnings and an 8% increase in adjusted EBITDA. Plant Nutrition sales volumes increased by 67%, but lower average sales prices affected profitability.

  • Adjusted EBITDA was $59.4 million with similar margins year over year.
  • Salt business operating earnings increased 7% year-over-year, with adjusted EBITDA per ton improving by 33% to $23.01.
  • Plant Nutrition sales volumes increased 67% year over year due to normalized demand in core West Coast markets.
  • 2024 capital expenditure guidance reduced by 6% at midpoint, reflecting a move to reduce capital intensity and improve returns.

Headline financials

Total Revenue

$342M

Previous: $352M-3.0%
EPS

-$1.83

Previous: $0.00
Adj. Operating Income

$24.8M

No prior period
Adjusted EBITDA

$62.2M

No prior period
Salt Operating Income

$50.9M

No prior period
Salt Adj. EBITDA

$66.1M

No prior period
Plant Nutrition Adj. EBITDA

$7.2M

No prior period
Capital Expenditures

-$35.3M

No prior period
Free Cash Flow

-$75.1M

Previous: -$300K-24933.3%
Net Income

-$75.1M

Previous: -$300K-24933.3%
Operating Income

-$55.3M

Previous: $27.9M-298.2%
Gross Profit

$70.6M

Previous: $70M+0.9%
Cash & Equivalents

$38.3M

Previous: $146M-73.8%
Total Assets

$1.81B

Previous: $1.76B+2.3%
Stock-Based Comp

$11.9M

Previous: $10.6M+12.3%

Revenue & EPS history

Compass Minerals · Revenue · Quarterly

$342M

Q1 2024-3%vs Q1 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Compass Minerals · $156M total across 1 segment · Q3 2022

  • Salt Segment
    $156M

Forward guidance

Compass Minerals provided its 2024 outlook for the Salt, Plant Nutrition and Corporate segments. Salt guidance is dependent on winter weather conditions and will be revisited after the deicing season. Plant Nutrition guidance was adjusted to reflect revised market and operational conditions. Corporate guidance includes Fortress contribution and lithium-related costs.

Tailwinds

  • Management continues to expect Salt financial results will fall within the provided range.
  • Total capital expenditures for the company in 2024 are expected to be within a range of $120 million to $130 million, down $7 million from prior expectations.
  • The company expects the full year impact for Lithium to be approximately $5 million.
  • FR-105 HV achieved fully qualified status on the USFS's Qualified Product List.
  • The company will revisit guidance for the Salt business following the completion of the highway deicing season.

Headwinds

  • Plant Nutrition guidance is being adjusted to reflect revised market and operational conditions that could impact the business.
  • Muriate of potash (MOP) prices continue to be under pressure in the market, which as a potential substitute impacts the pricing of the company's sulfate of potash (SOP).
  • Continuing weakness in fertilizer pricing is resulting in buyers deferring purchases in anticipation of lower prices, which adds risk to the company's sales outlook.
  • First-quarter pond-based production tracked toward the lower end of the company's initial projections.
  • Changes to the calendar 2024 solicitation package by the USFS resulted in a delay in the contracting process.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+0.5%

Avg return

30 days after

40%

27 / 67 earnings

Positive

+26.5%

Q2 2025

Best reaction

-20.5%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+6.8%+10.8%+11.7%
Q1 2026-14.8%-13.0%-7.8%
Q4 2025-14.4%-15.9%+8.9%
Q2 2025+26.5%+38.7%+39.8%
Q1 2025-5.8%-7.3%-17.5%
Q4 2024-2.1%-18.4%+2.9%
Q3 2024+17.9%+23.1%+48.1%
Q2 2024+2.0%-6.1%+3.0%
Q1 2024-5.3%+1.6%-6.9%
Q4 2023-8.4%-1.7%+1.2%
Q3 2023-5.2%-12.0%-25.1%
Q2 2023+0.3%+8.2%+14.5%
Q1 2023-14.3%-15.1%-20.0%
Q4 2022+9.6%+13.4%+1.6%
Q3 2022+1.5%+7.7%+5.2%
Q2 2022-20.5%-28.6%-26.6%
Q1 2022-4.3%-4.7%+9.6%
Q4 2021-4.3%-4.7%+9.6%
Q2 2021-1.6%-5.3%-3.4%
Q1 2021-0.3%+0.5%-2.3%
Q4 2020-3.1%+2.3%+4.3%
Q3 2020-7.0%-0.1%+5.8%
Q2 2020+9.1%+11.6%+9.8%
Q1 2020+1.1%+2.7%+12.1%
Q4 2019+10.2%+7.3%-26.7%
Q3 2019-7.4%-4.2%-6.8%
Q2 2019-5.2%-1.0%-3.0%
Q1 2019-4.1%-2.5%-9.9%
Q4 2018+1.8%+4.5%-0.8%
Q3 2018+8.6%+8.6%+5.8%
Q2 2018-4.6%-7.5%-9.9%
Q1 2018+3.1%+3.2%-2.8%
Q4 2017-2.6%-9.7%-10.5%
Q3 2017-1.0%-0.8%+4.2%
Q2 2017-2.3%-5.8%+0.0%
Q1 2017+1.4%+6.2%+1.2%
Q4 2016-1.8%-1.4%-9.9%
Q3 2016-1.5%-0.3%+10.1%
Q2 2016-0.1%-3.3%+2.1%
Q1 2016+2.4%
Q4 2015-1.1%
Q3 2015-3.2%
Q2 2015+1.2%
Q1 2015+3.6%
Q4 2014+1.0%
Q3 2014+0.6%
Q2 2014-5.7%
Q1 2014+5.2%
Q4 2013-2.6%
Q3 2013-2.2%
Q2 2013-18.1%
Q1 2013+6.4%
Q4 2012+1.6%
Q3 2012+2.4%
Q2 2012-2.4%
Q1 2012+1.7%
Q4 2011+1.2%
Q3 2011-5.5%
Q2 2011-7.2%
Q4 2010-7.2%
Q1 2010+4.0%
Q1 2011+2.3%
Q2 2010-4.2%
Q4 2008-4.2%
Q3 2010-0.7%
Q4 2009-0.7%
Q3 2009-0.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro