Compass Minerals Q1 Revenue Dips, Net Income Falls

Ticker: CMP · Form: 10-Q · Filed: Feb 10, 2025 · CIK: 1227654

Compass Minerals International INC 10-Q Filing Summary
FieldDetail
CompanyCompass Minerals International INC (CMP)
Form Type10-Q
Filed DateFeb 10, 2025
Risk Levelmedium
Pages16
Reading Time19 min
Key Dollar Amounts$0.01
Sentimentbearish

Sentiment: bearish

Topics: earnings, revenue, net-income

TL;DR

Compass Minerals Q1 revenue down to $1.116B, net income cratered to $777K. Ouch.

AI Summary

Compass Minerals International Inc. reported its first quarter results for the period ending December 31, 2024. The company's revenue for the quarter was $1.116 billion, a slight decrease from $1.184 billion in the same period last year. Net income also saw a decline, falling to $777,000 from $1.572 billion in the prior year's first quarter.

Why It Matters

This filing indicates a downturn in Compass Minerals' financial performance, which could impact investor confidence and future strategic decisions for the company.

Risk Assessment

Risk Level: medium — The significant drop in net income suggests potential operational or market challenges that warrant closer scrutiny.

Key Numbers

Key Players & Entities

FAQ

What were Compass Minerals' total revenues for the first quarter of fiscal year 2025?

Compass Minerals reported total revenues of $1,116,000,000 for the first quarter of fiscal year 2025.

How did the net income for the first quarter of fiscal year 2025 compare to the same period in the prior year?

Net income for the first quarter of fiscal year 2025 was $777,000, a significant decrease from $1,572,000,000 in the first quarter of fiscal year 2024.

What is the filing date for this 10-Q report?

This 10-Q report was filed on February 10, 2025.

What is the fiscal year end for Compass Minerals International Inc.?

Compass Minerals International Inc.'s fiscal year ends on September 30.

What was the revenue for the first quarter of fiscal year 2024?

The revenue for the first quarter of fiscal year 2024 was $1,184,000,000.

Filing Stats: 4,663 words · 19 min read · ~16 pages · Grade level 8.8 · Accepted 2025-02-10 17:22:50

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION Page

PART I. FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of December 31, 2024 (unaudited) and September 30, 2024 2 Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023 (unaudited) 3 Consolidated Statements of Comprehensive Loss for the three months ended December 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Stockholders' Equity for the three months ended December 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Cash Flows for the three months ended December 31, 2024 and 2023 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults Upon Senior Securities 31 Item 4. Mine Safety Disclosures 31 Item 5. Other Information 31 Item 6. Exhibits 32

SIGNATURES

SIGNATURES 33 1 Table of Contents COMPASS MINERALS INTERNATIONAL, INC.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (in millions, except share data) (Unaudited) December 31, 2024 September 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 45.8 $ 20.2 Receivables, less allowance for doubtful accounts of $ 3.1 and $ 3.6 at December 31, 2024 and September 30, 2024, respectively 261.7 126.1 Inventories, less allowance of $ 14.5 and $ 11.4 at December 31, 2024 and September 30, 2024, respectively 367.1 414.1 Other current assets 23.0 26.9 Total current assets 697.6 587.3 Property, plant and equipment, net 778.6 806.5 Intangible assets, net 80.1 82.5 Goodwill 5.8 6.0 Other noncurrent assets 158.8 157.8 Total assets $ 1,720.9 $ 1,640.1 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 8.7 $ 7.5 Accounts payable 96.2 82.1 Accrued salaries and wages 15.5 22.6 Income taxes payable 6.0 13.1 Accrued interest 6.0 13.3 Accrued expenses and other current liabilities 162.4 78.4 Total current liabilities 294.8 217.0 Long-term debt, net of current portion 965.7 910.0 Deferred income taxes, net 56.0 56.5 Other noncurrent liabilities 141.4 140.0 Commitments and contingencies ( Note 8 ) Stockholders' equity: Common stock: $ 0.01 par value, 200,000,000 authorized shares; 42,197,964 issued shares at December 31, 2024 and September 30, 2024 0.4 0.4 Additional paid-in capital 424.3 420.6 Treasury stock, at cost — 732,721 shares at December 31, 2024 and 816,013 shares at September 30, 2024 ( 10.4 ) ( 10.2 ) Retained (loss) earnings ( 21.4 ) 2.2 Accumulated other comprehensive loss ( 129.9 ) ( 96.4 ) Total stockholders' equity 263.0 316.6 Total liabilities and stockholders' equity $ 1,720.9 $ 1,640.1 The accompanying notes are an integral part of the consolidated financial statements. 2 Table of Contents COMPASS MINERALS INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except share and per share data) T

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Accounting Policies and Basis of Presentation: Compass Minerals International, Inc. ("CMI"), through its subsidiaries (collectively, the "Company"), is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature's challenges for customers and communities. The Company's salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition business is the leading North American producer of sulfate of potash ("SOP"), which is used in the production of specialty fertilizers for high-value crops and turf and helps improve the quality and yield of crops, while supporting sustainable agriculture. The Company's principal products are salt, consisting of sodium chloride and magnesium chloride, and SOP. The Company is also working to develop long-term fire-retardant solutions to help combat wildfires. The Company's production sites are located in the United States ("U.S."), Canada and the United Kingdom ("U.K."). The Company also provides records management services in the U.K. Except where otherwise noted, references to North America include only the continental U.S. and Canada, and references to the U.K. include only England, Scotland and Wales. References to "Compass Minerals," "our," "us" and "we" refer to CMI and its consolidated subsidiaries. CMI is a holding company with no significant operations other than those of its wholly-owned subsidiaries. The consolidated financial statements include the accounts of CMI and its wholly-owned domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial inf

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