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Jun 30, 2024
Compass Minerals Q3 2024 Earnings Report
Compass Minerals' core businesses showed strong results, but overall performance was impacted by historical accounting matters.
Key Takeaways
Compass Minerals reported preliminary fiscal year 2024 third-quarter results, highlighting strong performance in the core Salt and Plant Nutrition businesses. Revenue was $202.9 million, with an operating income of $5.9 million. However, the company reported a net loss of $43.6 million, impacted by ongoing financial restatements.
Preliminary adjusted EBITDA was $32.8 million, including a $0.9 million non-cash gain from the decrease of the Fortress contingent liability.
The Salt segment demonstrated strong performance with adjusted EBITDA per ton of $28.05.
The midpoint of Salt business adjusted EBITDA guidance increased $15 million for 2024.
The average sales price for sulfate of potash increased for the second consecutive quarter to $691.27 per ton.
Compass Minerals
Compass Minerals
Compass Minerals Revenue by Segment
Revenue by Segment
Salt Segment Revenue
CapyFin.comPlant Nutrition Revenue
CapyFin.com Forward Guidance
Compass Minerals provided preliminary updated guidance for 2024, with improved expectations for Salt segment adjusted EBITDA and revised guidance for the Plant Nutrition segment.
Positive Outlook
- Salt segment revenue is expected to be between $900 million and $910 million.
- Salt segment adjusted EBITDA is projected to be between $215 million and $225 million.
- The company anticipates lower costs related to the curtailment of the Goderich mine.
- The company is working toward reducing salt inventory levels and accelerating conversion of excess inventory to cash.
- Approximately 70% of the company's North American highway deicing bidding process for the upcoming winter season has been completed.
Challenges Ahead
- The company expects its average contract selling price for the coming season to be approximately 2% lower than prices in fiscal 2024.
- Market bid volumes are expected to be down approximately 7% to 10% compared to fiscal 2024.
- Plant Nutrition revenue is expected to be between $175 million and $185 million.
- Plant Nutrition adjusted EBITDA is projected to be between $21 million and $26 million.
- The revised Plant Nutrition guidance reflects lower sales volumes and increased costs, partially offset by higher realized pricing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income