NYSE$CMP

Compass Minerals International Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Compass Minerals' Q2 2024 financial performance was impacted by mild winter and challenges in the fire-retardant business, leading to decisive measures for cash flow and debt reduction.

Compass Minerals reported a decrease in revenue and operating earnings for Q2 2024, impacted by mild winter weather and challenges in the fire-retardant business. The company is implementing measures to improve cash flow and reduce debt, including suspending dividend payments and curbing production levels.

  • Adjusted EBITDA increased 13% year over year to $87.3 million, including a non-cash gain of $24.3 million related to the Fortress contingent liability.
  • The Salt segment experienced a 9% decrease in operating earnings and a 7% decrease in adjusted EBITDA, driven by a 21% reduction in sales volumes.
  • Plant Nutrition sales volumes increased 23% year over year to 74 thousand tons, reflecting normalized demand in core West Coast markets.
  • A quarterly loss on impairments of $106.6 million was recognized, primarily related to write-downs of goodwill and intangible assets in the Fortress business and a goodwill impairment in the Plant Nutrition segment.

Headline financials

Total Revenue

$364M

Previous: $411M-11.5%
EPS

-$1.16

Previous: -$0.46-152.2%
Adj. Operating Income

$73.8M

No prior period
Adjusted EBITDA

$95.7M

Previous: $77.4M+23.6%
Salt Operating Income

$65.8M

No prior period
Salt Adj. EBITDA

$82.4M

No prior period
Plant Nutrition Adj. EBITDA

$7.3M

No prior period
Capital Expenditures

-$30M

No prior period
Free Cash Flow

-$48M

Previous: -$21.6M-122.2%
Net Income

-$48M

Previous: -$21.6M-122.2%
Operating Income

-$45.8M

Previous: $47.9M-195.6%
Gross Profit

$72.9M

Previous: $85.2M-14.4%
Cash & Equivalents

$40M

Previous: $250M-84.0%
Total Assets

$1.65B

Previous: $1.78B-7.4%
Stock-Based Comp

-$4.9M

Previous: $3.1M-258.1%

Revenue & EPS history

Compass Minerals · Revenue · Quarterly

$364M

Q2 2024-11.5%vs Q2 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 updated its 2024 outlook, narrowing the Salt segment guidance and reducing the top end of the adjusted EBITDA range for the Plant Nutrition segment. The company expects incremental costs from curtailing production at Goderich mine to adversely impact adjusted EBITDA.

Tailwinds

  • Highway deicing sales volumes are expected to be between 7,300 and 7,400 thousands of tons.
  • Consumer and industrial sales volumes are projected to be between 1,900 and 2,000 thousands of tons.
  • Total salt sales volumes are anticipated to be between 9,200 and 9,400 thousands of tons.
  • Salt segment revenue is expected to be in the range of $900 million to $920 million.
  • Plant Nutrition sales volumes are projected to be between 280 and 310 thousands of tons.

Headwinds

  • Salt segment adjusted EBITDA is expected to be in the range of $200 million to $210 million.
  • Plant Nutrition revenue is projected to be in the range of $170 million to $205 million.
  • Plant Nutrition adjusted EBITDA is expected to be in the range of $15 million to $30 million.
  • Corporate adjusted EBITDA is projected to be in the range of ($55) million to ($49) million.
  • Total capital expenditures for the company in 2024 are now expected to be within a range of $115 million to $130 million.

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 Q2 2024

Historical avgQ2 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%

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