NYSE$CMP

Compass Minerals International Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Compass Minerals' Q3 2023 performance was marked by improved profitability in the Salt business, strategic advancements in the lithium project, and initial commercial sales from Fortress.

Compass Minerals reported a net income of $39.9 million, driven by a $42.7 million tax benefit. The company saw improvements in Salt business operating earnings and adjusted EBITDA, while the Plant Nutrition business experienced declines. Fortress North America achieved its first commercial sales, and the lithium project continued to progress with a binding supply agreement with Ford.

  • Total company operating loss improved to $0.6 million.
  • Net income from continuing operations reached $39.9 million due to a tax benefit.
  • Adjusted EBITDA from continuing operations was essentially flat year over year at $28.6 million.
  • Salt operating earnings and adjusted EBITDA increased by 75% and 31%, respectively.

Headline financials

Total Revenue

$208M

Previous: $215M-3.3%
EPS (adj)

$1.01

Previous: -$0.16+731.2%
Free Cash Flow

$39.9M

Previous: -$7.9M+605.1%
Net Income

$39.9M

Previous: -$7.9M+605.1%
Operating Income

-$600K

Previous: -$3.5M+82.9%
Gross Profit

$34.6M

Previous: $33.9M+2.1%
Cash & Equivalents

$58M

Previous: $47.2M+22.9%
Total Assets

$1.73B

Previous: $1.58B+9.9%
Stock-Based Comp

$3.5M

Previous: $3.9M-10.3%

Revenue & EPS history

Compass Minerals · Revenue · Quarterly

$208M

Q3 2023-3.3%vs Q3 2022
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 updated commentary regarding its fiscal 2023 financial outlook and initial commentary regarding the North American highway deicing bidding process for fiscal 2024.

Tailwinds

  • Average contract selling price for the coming season is expected to be approximately 3% higher than prices in fiscal 2023.
  • Committed bid volumes are expected to be down approximately 5% compared to fiscal 2023, which is better than typical results following a below-average winter.
  • The midpoint of its full-year adjusted EBITDA guidance is just slightly below the midpoint of its original guidance, largely reflecting favorable mix in highway deicing sales and strong C&I pricing throughout the year.
  • Corporate and other expense, net is expected to be within a range of $65 million to $70 million. This line item includes the contribution from Fortress of operating profit and EBITDA in the low double-digit millions of dollars in fiscal 2023.
  • Projected total capital expenditures for fiscal 2023 are now expected to be in a range of $130 million to $150 million, comprising lithium development capital spending in the range of $40 million to $50 million and unchanged sustaining capital in the range of $90 million to $100 million for the fiscal year.

Headwinds

  • Despite below-average winter deicing activity within the company's core North American markets this year.
  • Lingering effects from extraordinary weather events in key markets earlier in the year adversely impacted sales volumes in the Plant Nutrition segment in the quarter.
  • Highway deicing sales volumes (thousands of tons) are expected to be between 9,000 and 9,400.
  • Consumer and industrial sales volumes (thousands of tons) are expected to be between 2,000 and 2,150.
  • Total salt sales volumes (thousands of tons) are expected to be between 11,000 and 11,550.

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 Q3 2023

Historical avgQ3 2023

-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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