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Mar 31, 2023
Compass Minerals Q2 2023 Earnings Report
Compass Minerals' financial performance improved, driven by strong pricing despite lower sales volumes in both the Salt and Plant Nutrition segments, and strategic actions were taken to reduce costs and enhance debt maturity profile.
Key Takeaways
Compass Minerals reported improved fiscal 2023 second-quarter results, with operating earnings up 140% year over year and a narrowed net loss. The company is focused on strategic priorities including growth in adjacent markets and maximizing profitability in core businesses.
Total company operating earnings improved 140% year over year to $47.9 million.
Net loss narrowed to $21.6 million versus $29.0 million over the corresponding period.
Adjusted EBITDA from continuing operations increased to $77.4 million from $64.8 million last year.
Acquisition of remaining 55% of Fortress North America (Fortress) expected to be immediately accretive in fiscal 2023.
Forward Guidance
The company has provided updated commentary regarding its fiscal 2023 financial outlook. The performance guidance for the Salt segment across various weather scenarios remains unchanged from the company's prior guidance. The company’s full-year outlook for Plant Nutrition remains unchanged from its prior guidance range.
Positive Outlook
- Salt Segment Mild Winter Revenue (in millions): $990 - $1,065
- Salt Segment Mild Winter Adjusted EBITDA (in millions): $215 - $255
- Salt Segment Strong Winter Revenue (in millions): $1,125
- Salt Segment Strong Winter Adjusted EBITDA (in millions): $275
- Plant Nutrition Segment Revenue (in millions): $155 - $225
Challenges Ahead
- Salt Segment Mild Winter Highway deicing sales volumes (thousands of tons): 9,350 - 10,050
- Salt Segment Mild Winter Consumer and industrial sales volumes (thousands of tons): 2,000 - 2,150
- Salt Segment Mild Winter Total salt sales volumes (thousands of tons): 11,350 - 12,200
Historical Earnings Impact
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Avg. Return Before/After Earnings
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