NYSE$CMP

Compass Minerals International Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fiscal fourth-quarter and full-year 2023 results, with a focus on Salt profitability restoration and Fortress achievements, while addressing challenges in the lithium project.

Compass Minerals reported a 6% year-over-year decline in consolidated revenue for Q4 2023, totaling $233.6 million. Operating earnings decreased to $3.9 million, and adjusted EBITDA fell by 9% to $33.0 million. The Salt business showed improved profitability, offsetting weaker Plant Nutrition sales. For the full fiscal year, consolidated revenue was down 3% to $1.2 billion, but operating earnings increased to $79.1 million, and adjusted EBITDA rose to $200.8 million due to improved Salt business profitability.

  • Net income reached $15.5 million for fiscal 2023, a significant improvement from the previous year's net loss of $37.3 million.
  • Total company adjusted EBITDA increased by 7% year-over-year, despite reduced sales volumes in both the Salt and Plant Nutrition segments.
  • The Salt business restored full-year fiscal 2023 profitability, achieving an adjusted EBITDA per ton exceeding $20.
  • Compass Minerals acquired the remaining 55% ownership of Fortress North America and commenced initial commercial sales during the 2023 fire season.

Headline financials

Total Revenue

$234M

Previous: $249M-6.3%
EPS (adj)

-$0.06

Previous: $0.01-700.0%
Capital Expenditures

-$70.5M

No prior period
Free Cash Flow

-$90.7M

No prior period
Net Income

-$2.5M

Previous: -$4.9M+49.0%
Operating Income

$3.9M

Previous: $7.5M-48.0%
Gross Profit

$44.1M

Previous: $38.4M+14.8%
Cash & Equivalents

$38.7M

Previous: $46.1M-16.1%
Total Assets

$1.82B

Previous: $1.65B+10.0%
Stock-Based Comp

$3.4M

Previous: $4M-15.0%

Revenue & EPS history

Compass Minerals · Revenue · Quarterly

$234M

Q4 2023-6.3%vs Q4 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 its financial outlook for fiscal year 2024, anticipating increased Salt sales volumes, normalized Plant Nutrition demand, and ongoing development in the Fire Retardant business.

Tailwinds

  • Salt sales volumes are expected to increase 3% to 5% in fiscal 2024, assuming average winter weather conditions.
  • The company completed a better-than-expected 2023-2024 bid season, with North American highway deicing prices up 3% despite a 5% decrease in committed volumes.
  • Meaningful increase in Plant Nutrition sales volumes expected for the full year as demand in California reverts to normal levels.
  • Fortress is expected to contribute approximately $12 million of adjusted EBITDA related to its initial Compass Minerals
  • Lithium-related period expenses are projected to be in the range of $5 million and $10 million for fiscal 2024.

Headwinds

  • Lower Plant Nutrition profitability is expected year-over-year, driven by lower sulfate of potash (SOP) pricing despite strong sales volume rebound.
  • Pricing is projected to decline year-over-year as global potassium prices have normalized below the elevated levels in calendar 2022 and early 2023.
  • Cash unit costs are projected to decline year-over-year but remain above historical levels due to fewer low-cost, pond-based tons.
  • The final agreement with the USFS is not expected to be finalized until late December 2023 or early January 2024.
  • Total capital expenditures for the company in fiscal 2024 are expected to be within a range of $125 million to $140 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 Q4 2023

Historical avgQ4 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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