// February 10, 2025 Fiscal 2025 First-Quarter Business Update Forward-Looking Statements and Other Disclaimers This presentation may contain forward-looking statements, including, without limitation, statements about reduction of salt inventory volumes, improvement in Plant Nutrition costs, cash generation capability, the future of Fortress, including ongoing discussions with the USFS, the company's ability to meet or exceed its plan for January or the remainder of fiscal 2025, SOP prices, and the company' ...

Compass Minerals (CMP) came out with a quarterly loss of $0.55 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1,000%. A quarter ago, it was expected that this minerals producer would post a loss of $0.46 per share when it actually produced a loss of $0.77, delivering a surprise of -67.39%.Over the last four quarters, the comp ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and related disclosures for the period ended December 31, 2024 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Compass Minerals International, Inc. for the period ended December 31, 2024, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes on accounting policies, segment information, debt, and contingencies [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, including assets, liabilities, and equity, as of December 31, 2024, and September 30, 2024 Consolidated Balance Sheet Highlights (in millions) | Metric | Dec 31, 2024 (millions) | Sep 30, 2024 (millions) | Change (millions) | | :--------------------------------- | :---------------------- | :---------------------- | :---------------- | | Cash and cash equivalents | $45.8 | $20.2 | +$25.6 | | Receivables, net | $261.7 | $126.1 | +$135.6 | | Inventories, net | $367.1 | $414.1 | -$47.0 | | Total current assets | $697.6 | $587.3 | +$110.3 | | Property, plant and equipment, net | $778.6 | $806.5 | -$27.9 | | Total assets | $1,720.9 | $1,640.1 | +$80.8 | | Total current liabilities | $294.8 | $217.0 | +$77.8 | | Long-term debt, net | $965.7 | $910.0 | +$55.7 | | Total liabilities | $1,457.9 | $1,326.5 | +$131.4 | | Total stockholders' equity | $263.0 | $316.6 | -$53.6 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's revenues, costs, and net loss for the three months ended December 31, 2024, and 2023 Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended Dec 31, 2024 (millions) | Three Months Ended Dec 31, 2023 (millions) | Change (millions) | YoY Change (%) | | :--------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | :------------- | | Sales | $307.2 | $341.7 | -$34.5 | -10.1% | | Gross profit | $34.3 | $71.1 | -$36.8 | -51.8% | | Operating earnings (loss) | $0.5 | $(53.6) | +$54.1 | N/A | | Loss before income taxes | $(13.9) | $(71.7) | +$57.8 | N/A | | Net loss | $(23.6) | $(75.3) | +$51.7 | N/A | | Basic net loss per common share | $(0.57) | $(1.83) | +$1.26 | N/A | | Diluted net loss per common share | $(0.57) | $(1.83) | +$1.26 | N/A | [Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the net loss and other comprehensive income or loss items for the three months ended December 31, 2024, and 2023 Consolidated Statements of Comprehensive Loss Highlights (in millions) | Metric | Three Months Ended Dec 31, 2024 (millions) | Three Months Ended Dec 31, 2023 (millions) | Change (millions) | | :--------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | | Net loss | $(23.6) | $(75.3) | +$51.7 | | Cumulative translation adjustment | $(33.3) | $14.6 | -$47.9 | | Comprehensive loss | $(57.1) | $(62.3) | +$5.2 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines the changes in the company's stockholders' equity for the periods presented Consolidated Statements of Stockholders' Equity Highlights (in millions) | Metric | Dec 31, 2024 (millions) | Sep 30, 2024 (millions) | Dec 31, 2023 (millions) | Sep 30, 2023 (millions) | | :--------------------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Total Stockholders' Equity | $263.0 | $316.6 | $463.4 | $521.0 | | Comprehensive loss (QTD) | $(57.1) | N/A | $(62.3) | N/A | | Stock-based compensation (QTD) | $3.9 | N/A | $11.9 | N/A | | Dividends on common stock (QTD) | — | N/A | $(6.4) | N/A | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities for the three months ended December 31, 2024, and 2023 Consolidated Statements of Cash Flows Highlights (in millions) | Metric | Three Months Ended Dec 31, 2024 (millions) | Three Months Ended Dec 31, 2023 (millions) | Change (millions) | | :--------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | | Net cash used in operating activities | $(4.1) | $(52.3) | +$48.2 | | Net cash used in investing activities | $(22.2) | $(49.3) | +$27.1 | | Net cash provided by financing activities | $53.1 | $100.9 | -$47.8 | | Net change in cash and cash equivalents | $25.6 | $(0.4) | +$26.0 | | Cash and cash equivalents, end of period | $45.8 | $38.3 | +$7.5 | | Capital expenditures | $(21.8) | $(48.6) | +$26.8 | | Dividends paid | — | $(6.4) | +$6.4 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [1. Accounting Policies and Basis of Presentation](index=9&type=section&id=1.%20Accounting%20Policies%20and%20Basis%20of%20Presentation) This section describes the company's business, significant accounting policies, and the basis for financial statement presentation - Compass Minerals is a global provider of essential minerals (salt, SOP) and is developing fire-retardant solutions, with production sites in the U.S., Canada, and the U.K.[21](index=21&type=chunk) - The company experiences substantial seasonality in sales across its Salt (deicing), Plant Nutrition, and fire retardant businesses, with peak periods varying by product line[24](index=24&type=chunk) - Management is currently evaluating new FASB Accounting Standards Updates (ASU 2023-07, 2023-09, 2024-03) related to segment reporting, income tax disclosures, and disaggregated expenses, but has not yet determined their impact on the company's disclosures[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [2. Revenues](index=10&type=section&id=2.%20Revenues) This section details the company's revenue recognition policies and deferred revenue balances - Deferred revenue remained stable at approximately **$3.6 million** as of both December 31, 2024, and September 30, 2024[30](index=30&type=chunk) [3. Inventories](index=10&type=section&id=3.%20Inventories) This section provides a breakdown of the company's inventory by type and changes over the period Inventories (in millions) | Inventory Type | Dec 31, 2024 (millions) | Sep 30, 2024 (millions) | Change (millions) | | :------------- | :---------------------- | :---------------------- | :---------------- | | Finished goods | $286.8 | $336.5 | -$49.7 | | Work in process | $6.4 | $6.4 | $0.0 | | Raw materials and supplies | $73.9 | $71.2 | +$2.7 | | Total inventories | $367.1 | $414.1 | -$47.0 | [4. Property, Plant and Equipment, Net](index=11&type=section&id=4.%20Property,%20Plant%20and%20Equipment,%20Net) This section details the company's fixed assets, including land, buildings, machinery, and mineral interests, net of depreciation Property, Plant and Equipment, Net (in millions) | Asset Category | Dec 31, 2024 (millions) | Sep 30, 2024 (millions) | Change (millions) | | :------------- | :---------------------- | :---------------------- | :---------------- | | Land, buildings and structures, and leasehold improvements | $550.2 | $559.8 | -$9.6 | | Machinery and equipment | $1,120.2 | $1,149.5 | -$29.3 | | Mineral interests | $166.5 | $170.4 | -$3.9 | | Construction in progress | $57.5 | $56.0 | +$1.5 | | Less: accumulated depreciation and depletion | $(1,139.7) | $(1,153.3) | +$13.6 | | Property, plant and equipment, net | $778.6 | $806.5 | -$27.9 | [5. Goodwill and Intangible Assets](index=11&type=section&id=5.%20Goodwill%20and%20Intangible%20Assets) This section discusses the company's goodwill and intangible assets, including changes due to foreign currency translation - Goodwill decreased slightly from **$6.0 million** at September 30, 2024, to **$5.8 million** at December 31, 2024, due to foreign currency translation adjustments[35](index=35&type=chunk) [6. Income Taxes](index=11&type=section&id=6.%20Income%20Taxes) This section outlines the company's income tax provisions, deferred tax assets, valuation allowances, and tax contingencies - An additional valuation allowance of **$9.5 million** was recorded in Q4 2024 due to cumulative U.S. losses, limiting the realization of deferred tax assets[38](index=38&type=chunk) - The company has **$78.4 million** in federal Net Operating Loss (NOL) carryforwards with no expiration date and **$6.6 million** in state NOL carryforwards expiring from 2031[39](index=39&type=chunk) - Canadian provincial tax authorities have issued reassessments totaling **$192.8 million** (including interest) for fiscal years 2002-2019, which the company disputes and has posted **$152.3 million** in performance bonds and paid **$34.6 million** as security[40](index=40&type=chunk)[41](index=41&type=chunk) - Management believes the ultimate resolution of Canadian tax disputes will not have a material impact on its results of operations or financial condition, and adequate reserves have been made[43](index=43&type=chunk) [7. Long-Term Debt](index=12&type=section&id=7.%20Long-Term%20Debt) This section details the company's long-term debt obligations, credit facilities, and compliance with debt covenants Long-Term Debt (in millions) | Debt Type | Dec 31, 2024 (millions) | Sep 30, 2024 (millions) | Change (millions) | | :--------------------------------- | :---------------------- | :---------------------- | :---------------- | | 6.75% Senior Notes due Dec 2027 | $500.0 | $500.0 | $0.0 | | Term Loan due May 2028 | $192.5 | $193.8 | -$1.3 | | Revolving Credit Facility due May 2028 | $229.6 | $190.1 | +$39.5 | | AR Securitization Facility expires Mar 2027 | $58.2 | $38.9 | +$19.3 | | Total debt | $974.4 | $917.5 | +$56.9 | - An amendment to the 2023 Credit Agreement on December 12, 2024, eased leverage ratio restrictions (to **6.5x** through Sep 30, 2025, then stepping down) and decreased revolving commitments from **$375 million** to **$325 million** (stepping down to **$250 million** by July 1, 2026)[45](index=45&type=chunk)[129](index=129&type=chunk) - The company was in compliance with its debt covenants as of December 31, 2024, with a consolidated total net leverage ratio of approximately **5.9x**[47](index=47&type=chunk)[129](index=129&type=chunk) - Available borrowing capacity under the revolving credit facility was **$80.5 million** as of December 31, 2024[47](index=47&type=chunk) [8. Commitments and Contingencies](index=13&type=section&id=8.%20Commitments%20and%20Contingencies) This section discloses the company's legal proceedings, shareholder lawsuits, product recall liabilities, and other contingent matters - A putative securities class action lawsuit, alleging misleading statements, reached an agreement in principle for settlement on February 7, 2024, which the company believes will be covered by insurance[49](index=49&type=chunk) - Two shareholder derivative lawsuits were filed, alleging certain directors and executives breached their fiduciary duties to shareholders[50](index=50&type=chunk) - On October 25, 2024, the company issued a recall for nine production lots of food-grade salt due to foreign material, recognizing **$0.9 million** in costs and recording a **$35.0 million** liability with an estimated **$35.0 million** in insurance recoveries[54](index=54&type=chunk) - Management believes the outcome of pending legal proceedings and claims, including the recall, will not have a material adverse effect on results, cash flows, or financial position, given current information and applicable insurance coverage[52](index=52&type=chunk)[55](index=55&type=chunk) [9. Operating Segments](index=14&type=section&id=9.%20Operating%20Segments) This section presents financial performance data for the Salt and Plant Nutrition operating segments, along with geographic revenue information - The company operates two reportable segments: Salt (road deicing, consumer/industrial salt, records management) and Plant Nutrition (SOP specialty fertilizer)[56](index=56&type=chunk) Salt Segment Performance (Q4 2024 vs Q4 2023) | Metric | QTD 2024 (millions/tons) | QTD 2023 (millions/tons) | Change | | :-------------------------- | :----------------------- | :----------------------- | :----- | | Sales | $242.2 | $274.3 | -$32.1 | | Operating Earnings | $29.4 | $50.9 | -$21.5 | | Total tons sold (thousands) | 2,493 | 2,855 | -362 | | Combined Average Sales Price (per ton) | $97.16 | $96.08 | +$1.08 | Plant Nutrition Segment Performance (Q4 2024 vs Q4 2023) | Metric | QTD 2024 (millions/tons) | QTD 2023 (millions/tons) | Change | | :-------------------------- | :----------------------- | :----------------------- | :----- | | Sales | $61.4 | $49.7 | +$11.7 | | Operating Loss | $(3.1) | $(2.3) | -$0.8 | | Sales Volumes (thousands of tons) | 102 | 75 | +27 | | Average Sales Price (per ton) | $603 | $660 | -$57 | - Corporate and Other operating loss was **$(25.8) million** in Q4 2024, significantly improved from **$(102.2) million** in Q4 2023, which included a **$74.8 million** lithium asset impairment[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) Revenue by Geographic Area (in millions) | Region | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | | :----- | :------------------------------ | :------------------------------ | | United States | $212.7 | $250.9 | | Canada | $79.3 | $77.6 | | United Kingdom | $11.2 | $13.0 | | Other | $4.0 | $0.2 | | Total revenue | $307.2 | $341.7 | [10. Stockholders' Equity and Equity Instruments](index=15&type=section&id=10.%20Stockholders'%20Equity%20and%20Equity%20Instruments) This section details changes in stockholders' equity, stock-based compensation, and accumulated other comprehensive loss - The 2020 Incentive Award Plan was amended in March 2024 to authorize an additional **3,000,000 shares** of Company stock[62](index=62&type=chunk) - Stock-based compensation expense decreased from **$11.9 million** in Q4 2023 to **$3.9 million** in Q4 2024[64](index=64&type=chunk) - Accumulated Other Comprehensive Loss (AOCL) increased from **$(96.4) million** at September 30, 2024, to **$(129.9) million** at December 31, 2024, primarily due to a **$(33.3) million** cumulative translation adjustment[68](index=68&type=chunk) [11. Derivative Financial Instruments](index=17&type=section&id=11.%20Derivative%20Financial%20Instruments) This section describes the company's use of derivative instruments to manage commodity and foreign currency risks - The company uses derivative instruments (natural gas and foreign currency contracts) to mitigate commodity pricing and foreign currency exchange rate risks, not for speculative purposes[71](index=71&type=chunk) - As of December 31, 2024, the company had hedged **2.6 million MMBtus** of forecasted natural gas purchases through September 2026[73](index=73&type=chunk) - Net losses of **$1.7 million** on natural gas derivative instruments are expected to be reclassified from AOCL to earnings over the next twelve months[74](index=74&type=chunk) Fair Value of Derivatives (in millions) | Category | Dec 31, 2024 | Sep 30, 2024 | | :------- | :----------- | :----------- | | Asset Derivatives | $0.6 | $0.6 | | Liability Derivatives | $2.2 | $1.9 | [12. Fair Value Measurements](index=18&type=section&id=12.%20Fair%20Value%20Measurements) This section explains the methodologies used to determine the fair value of financial instruments and contingent consideration - Fair values of financial instruments are determined using quoted prices in active markets (Level 1 inputs) or observable market-corroborated inputs (Level 2 inputs)[77](index=77&type=chunk) - Contingent consideration liabilities related to the Fortress acquisition are valued using Level 3 measurements (probability-weighted discounted cash flow model and Monte Carlo simulation)[83](index=83&type=chunk) - The total fair value of contingent consideration was **$7.9 million** at December 31, 2024, unchanged from September 30, 2024[84](index=84&type=chunk) - The fair value of **6.75% Senior Notes** due December 2027 was **$492.5 million** (principal **$500.0 million**) at December 31, 2024, and the fair value of term loans and revolving credit facility was **$416.8 million** (principal **$422.1 million**)[82](index=82&type=chunk) [13. Earnings per Share](index=20&type=section&id=13.%20Earnings%20per%20Share) This section presents the basic and diluted net loss per common share and discusses dividend policy - Basic and diluted net loss per common share improved to **$(0.57)** in Q4 2024 from **$(1.83)** in Q4 2023[85](index=85&type=chunk) - The Board of Directors determined not to declare dividends for the foreseeable future as of April 22, 2024, to align capital allocation with accelerating cash flow generation and debt reduction[85](index=85&type=chunk) [14. Related Party Transactions](index=20&type=section&id=14.%20Related%20Party%20Transactions) This section discloses sales and receivables from transactions with related parties - SOP sales to certain subsidiaries of Koch Industries, Inc. were approximately **$1.1 million** in Q4 2024, up from **$0.8 million** in Q4 2023[87](index=87&type=chunk) - Receivables from related parties were **$0.6 million** at December 31, 2024[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, liquidity, capital resources, and operational results for the quarter ended December 31, 2024, highlighting key drivers, segment performance, and future outlook [Company Overview](index=22&type=section&id=Company%20Overview) This section provides an overview of Compass Minerals' business, core products, key assets, and recent acquisitions - Compass Minerals is a leading global provider of essential minerals (salt, SOP, magnesium chloride) with **12 production and packaging facilities**[96](index=96&type=chunk) - Key assets include the world's largest rock salt mine in Goderich, Ontario, and the largest SOP and solar salt production site in the Western Hemisphere near Ogden, Utah[98](index=98&type=chunk) - The company acquired Fortress North America, LLC in May 2023, a fire retardant company[97](index=97&type=chunk) [Consolidated Results of Continuing Operations](index=23&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) This section analyzes the company's overall financial performance, including sales, operating earnings, gross profit, and net loss, for the quarter - Total sales decreased **10%** (**$34.5 million**) year-over-year, primarily due to lower Salt segment sales, partially offset by higher Plant Nutrition sales[103](index=103&type=chunk) - Operating earnings improved by **$54.1 million** to **$0.5 million**, mainly due to the absence of a prior-year lithium asset impairment and lower corporate SG&A, despite lower Salt operating earnings[103](index=103&type=chunk) - Adjusted EBITDA decreased **48.4%** (**$30.1 million**) year-over-year[103](index=103&type=chunk) - Diluted net loss per common share improved by **$1.26** to **$(0.57)**[103](index=103&type=chunk) - Gross profit decreased **52%** (**$36.8 million**), with gross margin falling **10 percentage points** to **11%**, impacted by lower Salt sales volumes, higher per-unit product costs, and lower Plant Nutrition average sales prices[109](index=109&type=chunk) - SG&A expenses decreased by **$12.4 million** primarily due to lower corporate incentive compensation, lithium, and Fortress expenses[104](index=104&type=chunk) - Income tax expense increased by **$6.1 million** despite a decrease in pretax book losses, mainly due to the significant Lithium impairment in the prior year for which a full valuation allowance was recorded[110](index=110&type=chunk) [Operating Segment Performance](index=25&type=section&id=Operating%20Segment%20Performance) This section details the financial performance of the Salt and Plant Nutrition segments, including sales, volumes, and operating earnings - **Salt Segment:** Sales decreased **12%** to **$242.2 million**, driven by a **13%** reduction in sales volumes (highway deicing down **12%**, consumer & industrial down **14%**), partially offset by a **1%** increase in average sales prices (consumer & industrial up **6%**). Operating earnings decreased **42%** to **$29.4 million**[115](index=115&type=chunk)[118](index=118&type=chunk) - **Plant Nutrition Segment:** Sales increased **24%** to **$61.4 million**, due to a **36%** increase in sales volumes (return to normalized levels), partially offset by a **9%** decrease in average sales prices due to global supply and demand dynamics. Operating loss increased to **$(3.1) million**[117](index=117&type=chunk)[119](index=119&type=chunk) - Fortress fire retardant business sales were **$14.5 million** in Q4 2023 but no contract was awarded for 2024 or 2025 fire seasons[103](index=103&type=chunk) [Outlook](index=26&type=section&id=Outlook) This section provides the company's fiscal year 2025 projections for sales volumes, pricing, Adjusted EBITDA, and capital expenditures across its segments - **Salt Segment (Fiscal Year 2025):** Sales volumes are expected to increase by approximately **7%** year-over-year (mid-point of **9.4-10.5 million tons**) due to anticipated normalized weather, despite a **9%** decrease in committed North American highway deicing volumes. Pricing is expected to decline slightly due to lower North American highway deicing bid season results. Adjusted EBITDA is projected to range from **$205 million** to **$230 million**[123](index=123&type=chunk) - **Plant Nutrition Segment (Fiscal Year 2025):** Sales volumes are expected to improve to a range of **295,000 to 315,000 tons**. Lower average selling prices are anticipated due to global potash price weakness. Adjusted EBITDA is projected to range from **$17 million** to **$24 million**[123](index=123&type=chunk) - **Capital Expenditures (Fiscal Year 2025):** Expected to be in the **$75 million to $85 million** range[123](index=123&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's current liquidity, cash management, debt obligations, and compliance with credit covenants - As of December 31, 2024, liquidity was approximately **$126.3 million**, comprising **$45.8 million** cash and cash equivalents and **$80.5 million** of availability under the **$325 million** revolving credit facility[121](index=121&type=chunk) - The company intends to indefinitely reinvest undistributed earnings of foreign subsidiaries, with **$16.4 million** of cash held by foreign subsidiaries as of December 31, 2024[122](index=122&type=chunk) - Canadian tax reassessments related to transfer prices could materially impact foreign earnings, though the company expects no material impact on results of operations[123](index=123&type=chunk) - An additional valuation allowance of **$9.5 million** was recorded due to cumulative U.S. losses, impacting deferred tax assets[124](index=124&type=chunk) - Total outstanding indebtedness was **$980.3 million** as of December 31, 2024[125](index=125&type=chunk) - The 2023 Credit Agreement was amended on December 12, 2024, to ease leverage ratio covenants (max **6.5x** through Sep 30, 2025) and reduce revolving commitments. The consolidated total net leverage ratio was approximately **5.9x** as of December 31, 2024, in compliance with covenants[129](index=129&type=chunk) [Capital Allocation](index=27&type=section&id=Capital%20Allocation) This section outlines the company's approach to managing cash flows, dividend policy, and capital expenditures - Cash flows from operations are historically seasonal, with the majority generated during the first half of the calendar year[131](index=131&type=chunk) - The Board of Directors decided on April 22, 2024, not to declare dividends for the foreseeable future to prioritize accelerating cash flow generation and debt reduction[133](index=133&type=chunk) Cash Flow Summary (in millions) | Activity | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | | :--------------------------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $4.1 | $52.3 | | Net cash used in investing activities | $22.2 | $49.3 | | Net cash provided by financing activities | $53.1 | $100.9 | [Product Recall](index=29&type=section&id=Product%20Recall) This section details the food-grade salt recall, associated costs, liabilities, and expected insurance recoveries - On October 25, 2024, the company initiated a recall of nine food-grade salt production lots due to foreign material[135](index=135&type=chunk) - Costs related to the recall were **$0.9 million** in Q4 2024, with a portion believed to be reimbursable by insurance[135](index=135&type=chunk) - A liability of **$35.0 million** and estimated insurance recoveries of **$35.0 million** were recorded for customer claims as of December 31, 2024[136](index=136&type=chunk) - Management does not expect incremental losses from the recall to have a material adverse effect on future results or cash flows[137](index=137&type=chunk) [Reconciliation of Net Earnings (Loss) from Continuing Operations to EBITDA and Adjusted EBITDA](index=30&type=section&id=Reconciliation%20of%20Net%20Earnings%20(Loss)%20from%20Continuing%20Operations%20to%20EBITDA%20and%20Adjusted%20EBITDA) This section provides a reconciliation of net earnings (loss) to EBITDA and Adjusted EBITDA, highlighting key adjustments EBITDA and Adjusted EBITDA Reconciliation (in millions) | Metric | Three Months Ended Dec 31, 2024 (millions) | Three Months Ended Dec 31, 2023 (millions) | Change (millions) | | :--------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | | Net loss | $(23.6) | $(75.3) | +$51.7 | | EBITDA | $29.8 | $(30.3) | +$60.1 | | Stock-based compensation | $3.9 | $11.9 | -$8.0 | | (Gain) loss on foreign exchange | $(5.2) | $1.9 | -$7.1 | | Product recall costs | $0.9 | — | +$0.9 | | Restructuring charges | — | $3.6 | -$3.6 | | Loss on impairments | — | $74.8 | -$74.8 | | Adjusted EBITDA | $32.1 | $62.2 | -$30.1 | [Effects of Currency Fluctuations and Inflation](index=31&type=section&id=Effects%20of%20Currency%20Fluctuations%20and%20Inflation) This section discusses the company's exposure to foreign currency and inflation risks and their potential impact on operations - Operations in Canada and the U.K. expose the company to currency transaction and translation risks, with significant changes in CAD or GBP relative to USD potentially affecting financial condition and debt payment ability[145](index=145&type=chunk) - Inflation has not significantly impacted current operations, but recovering inflation-based cost increases may be challenging due to contract structures and competitive markets[146](index=146&type=chunk) [Seasonality](index=31&type=section&id=Seasonality) This section describes the seasonal nature of the company's Salt, Plant Nutrition, and fire retardant businesses - Salt segment sales and operating income are generally higher in the first and second fiscal quarters (ending December 31 and March 31) due to winter weather[147](index=147&type=chunk) - Plant Nutrition business is seasonal, with inventory building during low demand periods (winter/summer) for peak sales seasons (spring/autumn)[147](index=147&type=chunk)[148](index=148&type=chunk) - Fire retardant business peak demand occurs from June through September[148](index=148&type=chunk) [Climate Change](index=32&type=section&id=Climate%20Change) This section addresses the potential impacts of climate change on product demand, production, and operational disruptions - Potential impacts of climate change include reduced demand for deicing products due to mild winters, affected SOP production at the Ogden facility due to drought/precipitation impacting brine levels, and disruptions from major storm events[149](index=149&type=chunk) - Capital expenditures for climate-related projects are not expected to be material in fiscal 2025[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines the company's exposure to market risks, including interest rate, foreign currency exchange rate, and commodity pricing risks, and the strategies employed to mitigate these exposures, noting no material changes since September 30, 2024 - The company is exposed to interest rate risk, foreign currency exchange rate risk, and commodity pricing risk[150](index=150&type=chunk) - Derivative instruments (natural gas and foreign currency contracts) are used to mitigate commodity pricing and foreign currency exchange rate risks, not for speculative purposes[150](index=150&type=chunk) - Market risk exposure has not materially changed since September 30, 2024[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section discloses that the company's disclosure controls and procedures were ineffective as of December 31, 2024, due to previously identified material weaknesses in internal control over financial reporting, specifically regarding risk assessment and information/communication processes. Management is developing a remediation plan - The CEO and CFO concluded that disclosure controls and procedures were ineffective as of December 31, 2024, due to material weaknesses in internal control over financial reporting[151](index=151&type=chunk) - Material weaknesses include an ineffective risk assessment process (failure to identify/evaluate all relevant risks of material misstatement) and an ineffective information and communication process (failure to ensure reliable and timely financial reporting information)[157](index=157&type=chunk) - Despite the material weaknesses, management performed additional analysis and procedures, concluding that the consolidated financial statements fairly present the financial position, results of operations, and cash flows in conformity with U.S. GAAP[154](index=154&type=chunk) - Management is developing a remediation plan to address these material weaknesses, which will involve implementing and testing new processes and controls[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional required disclosures, including legal proceedings, risk factors, equity sales, defaults, mine safety, and other information [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the legal proceedings and claims detailed in the financial statement notes, reiterating management's belief that their outcomes will not have a material adverse effect on the company's financial condition, except as specifically noted - The company is involved in various legal and administrative proceedings, including tax assessments, disputes with former employees, commercial claims, product liability, personal injury, and workers' compensation claims[163](index=163&type=chunk) - Management believes the outcome of these proceedings will not have a material adverse effect on results, cash flows, or financial condition, except as described in Notes 6 and 8[163](index=163&type=chunk) - No material developments have occurred since September 30, 2024, beyond what is described in Notes 6 and 8 of the Consolidated Financial Statements[163](index=163&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive discussion of risk factors in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - For a discussion of applicable risk factors, refer to Part I, Item 1A, "Risk Factors" in the Annual Report on Form 10-K for the annual period ended September 30, 2024[164](index=164&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds to report[166](index=166&type=chunk) [Item 3. Defaults Upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities to report for the period - No defaults upon senior securities to report[168](index=168&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that information concerning mine safety violations and other regulatory matters is provided in Exhibit 95 of the Quarterly Report - Mine safety disclosures are included in Exhibit 95 to this Quarterly Report on Form 10-Q[167](index=167&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section reports that no directors or officers adopted or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended December 31, 2024 - No directors or officers adopted or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended December 31, 2024[168](index=168&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or furnished with the Form 10-Q, including certifications, mine safety disclosures, and iXBRL financial statements - Lists exhibits filed or furnished with the Form 10-Q, including Section 302 and 1350 certifications, Mine Safety Disclosures, and iXBRL financial statements[169](index=169&type=chunk) [SIGNATURES](index=36&type=section&id=SIGNATURES) This section contains the official signatures, confirming the due authorization and filing of the report [SIGNATURES](index=36&type=section&id=SIGNATURES) This section contains the official signatures, confirming the due authorization and filing of the report - The report was signed by Peter Fjellman, Chief Financial Officer, on February 10, 2025[173](index=173&type=chunk)

[Overview and Management Commentary](index=1&type=section&id=Overview%20and%20Management%20Commentary) This section provides management's strategic commentary, highlighting progress on the 'back-to-basics' strategy, inventory reduction, and cost structure improvements [Management Commentary](index=1&type=section&id=MANAGEMENT%20COMMENTARY) Management highlighted progress on their 'back-to-basics' strategy, focusing on reducing salt inventory, improving Plant Nutrition's cost structure, and enhancing profitability - The company is implementing a **"back-to-basics" strategy** focused on reducing inventory, improving cost structures, and enhancing profitability to unlock intrinsic value[2](index=2&type=chunk)[3](index=3&type=chunk) - North American salt inventory volumes declined **10% year-over-year** through December, despite a slow start to the winter deicing season[3](index=3&type=chunk) - Cost management efforts in the Plant Nutrition segment are taking root, enabling an increase in the segment's **adjusted EBITDA guidance** despite expected price declines[3](index=3&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section details the company's first-quarter financial results, including revenue, adjusted EBITDA, and net loss performance [First-Quarter Financial Results](index=2&type=section&id=QUARTERLY%20FINANCIAL%20RESULTS) Q1 FY2025 saw revenue decline to $307.2 million and adjusted EBITDA drop to $32.1 million, resulting in a net loss of $23.6 million Q1 Fiscal 2025 Financial Highlights (vs. Q1 Fiscal 2024) | Metric (in millions, except per share data) | Q1 FY2025 (ended Dec. 31, 2024) | Q1 FY2024 (ended Dec. 31, 2023) | | :--- | :--- | :--- | | **Revenue** | $307.2 | $341.7 | | **Operating earnings (loss)** | $0.5 | $(53.6) | | **Adjusted EBITDA** | $32.1 | $62.2 | | **Net loss** | $(23.6) | $(75.3) | | **Net loss per diluted share** | $(0.57) | $(1.83) | | **Adjusted net (loss) earnings** | $(22.9) | $3.1 | | **Adjusted net (loss) earnings per diluted share** | $(0.55) | $0.07 | [Segment Analysis](index=2&type=section&id=Segment%20Analysis) This section analyzes the performance of the Salt, Plant Nutrition, and Fortress North America segments, detailing revenue, volume, and strategic initiatives [Salt Business](index=2&type=section&id=SALT%20BUSINESS%20COMMENTARY) Salt segment revenue decreased 12% to $242.2 million due to lower sales volume and higher per-ton costs from curtailed production, despite stable pricing - The company is focused on **reducing North American highway deicing salt inventory**, which led to curtailed production at the Goderich and Cote Blanche mines[5](index=5&type=chunk) Salt Segment Q1 Performance | Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | $242.2M | $274.3M | -12% | | **Sales Volume** | 2,493k tons | 2,855k tons | -13% | | **Operating Earnings** | $29.4M | $50.9M | -42% | | **Adjusted EBITDA** | $47.8M | $66.1M | -28% | | **Avg. Highway Deicing Price** | $69.50/ton | $70.36/ton | -1% | | **Avg. C&I Price** | $205.74/ton | $194.94/ton | +6% | - All-in product costs per ton rose **16% year-over-year** due to lower fixed cost absorption from curtailed production[10](index=10&type=chunk) [Plant Nutrition Business](index=3&type=section&id=PLANT%20NUTRITION%20BUSINESS%20COMMENTARY) Plant Nutrition revenue grew 24% to $61.4 million driven by a 36% volume increase, despite a 9% price decline, with costs per ton decreasing 10% - The company is focused on **improving the segment's cost structure**, with ongoing restoration of the Ogden pond complex expected to enhance SOP raw material consistency and grade[11](index=11&type=chunk) Plant Nutrition Segment Q1 Performance | Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | $61.4M | $49.7M | +24% | | **Sales Volume** | 102k tons | 75k tons | +36% | | **Average Sales Price** | $603/ton | $660/ton | -9% | | **All-in Product Costs/ton** | N/A | N/A | -10% | | **Adjusted EBITDA** | $4.4M | $7.2M | -39% | [Fortress North America](index=3&type=section&id=FORTRESS%20NORTH%20AMERICA%20COMMENTARY) The company is exploring strategic alternatives for Fortress North America and is in discussions with the USFS regarding its Qela fire retardant product - The company is **evaluating various alternatives** for the future of Fortress North America[14](index=14&type=chunk) - Discussions are **ongoing with the U.S. Forest Service (USFS)** for the evaluation and testing of its fire retardant, Qela[14](index=14&type=chunk)[15](index=15&type=chunk) [Cash Flow and Financial Position](index=4&type=section&id=Cash%20Flow%20and%20Financial%20Position) This section outlines the company's cash flow activities and financial position, highlighting improvements in operating cash flow and current liquidity [Cash Flow and Liquidity](index=4&type=section&id=CASH%20FLOW%20AND%20FINANCIAL%20POSITION) Net cash used in operating activities improved to $4.1 million due to inventory reduction, with total liquidity at quarter-end reaching $126.3 million Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(4.1) | $(52.3) | | **Net cash used in investing activities** | $(22.2) | $(49.3) | | **Net cash provided by financing activities** | $53.1 | $108.1 | - The company ended the quarter with **$126.3 million of liquidity**, comprising $45.8 million in cash and $80.5 million of availability under its revolving credit facility[18](index=18&type=chunk) [Fiscal 2025 Outlook](index=4&type=section&id=UPDATED%20FISCAL%202025%20OUTLOOK) This section presents the updated fiscal 2025 outlook, including segment-specific and total company adjusted EBITDA guidance and capital expenditure projections [Segment and Total Company Outlook](index=4&type=section&id=Segment%20and%20Total%20Company%20Outlook) Fiscal 2025 outlook projects total adjusted EBITDA between $152 million and $193 million, with Plant Nutrition guidance increased and capital expenditures reduced to $75-$85 million Fiscal 2025 Segment Guidance (in millions, except volumes) | Segment | Metric | 2025 Range | | :--- | :--- | :--- | | **Salt** | Total Sales Volumes (k tons) | 9,400 - 10,450 | | | Revenue | $900 - $1,000 | | | Adj. EBITDA | $205 - $230 | | **Plant Nutrition** | Sales Volumes (k tons) | 295 - 315 | | | Revenue | $180 - $200 | | | Adj. EBITDA | $17 - $24 | | **Corporate** | Adj. EBITDA | ($70) - ($61) | Fiscal 2025 Total Company Guidance (in millions) | Metric | 2025 Range | | :--- | :--- | | **Total Adj. EBITDA** | $152 - $193 | | **Capital Expenditures** | $75 - $85 | - Capital expenditure guidance was **lowered from a range of $100 million - $110 million to $75 million - $85 million**[26](index=26&type=chunk)[27](index=27&type=chunk) - Guidance **does not include any potential impacts from tariffs** on products imported from the company's Canadian operations[19](index=19&type=chunk) [Financial Statements and Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed non-GAAP reconciliations, consolidated financial statements, and segment-specific financial information for the reporting period [Non-GAAP Reconciliations](index=7&type=section&id=Non-GAAP%20Reconciliations) This section details reconciliations of non-GAAP financial measures to GAAP, highlighting adjustments for product recall costs in Q1 FY2025 and impairment/restructuring charges in Q1 FY2024 - Q1 FY2025 results were adjusted for **$0.9 million in product recall costs**[38](index=38&type=chunk)[43](index=43&type=chunk) - Q1 FY2024 results included adjustments for **$74.8 million in impairments** and **$3.6 million in restructuring charges** related to the termination of the lithium development project[40](index=40&type=chunk)[44](index=44&type=chunk) Consolidated Reconciliation Summary (in millions) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | **Q1 FY25 Operating Earnings** | $0.5 | $0.9 | $1.4 | | **Q1 FY24 Operating Earnings** | $(53.6) | $78.4 | $24.8 | | **Q1 FY25 Net Loss** | $(23.6) | $0.7 | $(22.9) | | **Q1 FY24 Net Loss** | $(75.3) | $78.4 | $3.1 | [Consolidated Financial Statements](index=15&type=section&id=Consolidated%20Financial%20Statements) Unaudited consolidated financial statements show a Q1 net loss of $23.6 million, total assets of $1.72 billion, and improved operating cash flow - The Consolidated Statement of Operations reported a gross profit of **$34.3 million** and a net loss of **$23.6 million** for the three months ended Dec. 31, 2024[60](index=60&type=chunk) - The Condensed Consolidated Balance Sheet shows total assets of **$1,720.9 million** and total liabilities of **$1,457.9 million** as of Dec. 31, 2024[62](index=62&type=chunk) - The Condensed Consolidated Statement of Cash Flows shows net cash used in operating activities of **$4.1 million**, a significant improvement from the **$52.3 million** used in the prior-year period[64](index=64&type=chunk) [Segment Information](index=18&type=section&id=SEGMENT%20INFORMATION) This section provides detailed segment financial data for Q1 FY2025, including sales, operating earnings, and assets for Salt, Plant Nutrition, and Corporate & Other Segment Information for Three Months Ended Dec. 31, 2024 (in millions) | Segment | Sales to External Customers | Operating Earnings (Loss) | Total Assets (as of end of period) | | :--- | :--- | :--- | :--- | | **Salt** | $242.2 | $29.4 | $1,092.4 | | **Plant Nutrition** | $61.4 | $(3.1) | $388.1 | | **Corporate & Other** | $3.6 | $(25.8) | $240.4 | | **Total** | **$307.2** | **$0.5** | **$1,720.9** |

Compass Minerals International, Inc. (NYSE:CMP) Q4 2024 Earnings Conference Call December 17, 2024 10:00 AM ET Company Participants Brent Collins - Vice President of Investor Relations Edward Dowling - President and Chief Executive Officer Jeffrey Cathey - Chief Financial Officer Ben Nichols - Chief Sales Officer Jenny Hood - Chief Supply Chain Officer Conference Call Participants Joel Jackson - BMO Capital Markets David Begleiter - Deutsche Bank David Silver - CL King & Associates Operator Hello, and thank ...

Sales and Market Position - Salt segment sales accounted for 40% of fiscal 2024 Salt segment sales, with consumer and industrial products being a significant contributor[20] - Approximately 75% of highway deicing customers in the U.K. have multi-year contracts, highlighting the company's strong market position[20] - Two-thirds of deicing product sales occur during the North American and European winter months (November through March) on average over the last three years[20] - The Plant Nutrition segment generated nearly all of its sales and earnings through SOP, with 92% of fiscal 2024 sales made to U.S. customers[23] - International sales accounted for 26% of total fiscal 2024 sales, with significant operations in Canada and the UK[81] - The company's fire retardant business relies heavily on one primary customer, the USFS, and any loss of this customer would adversely affect the business[77] - No single customer or group of affiliated customers accounted for more than 10% of the company's sales or receivables during fiscal years 2024, 2023, or 2022[365] Production and Operations - Global SOP capacity is estimated at 10.7 million tons, with 55% located in China, positioning the company as a leading SOP producer in North America[26] - The company's Protassium+ product line is sold in various grades, targeting crop input distributors and dealers, with a focus on agronomic benefits[24] - Approximately 70% of the company's salt production capacity comes from two North American salt mines, with any production interruption potentially affecting contract fulfillment and future contracts[58] - The company's plant nutrition product, SOP, is produced at only two locations, with potential disruptions at these facilities leading to reduced sales and revenue loss[58] - The Ogden facility's production of SOP, sodium chloride, and magnesium chloride is dependent on sufficient lake brine levels in the Great Salt Lake, with drought or lower lake levels potentially disrupting production[55] - The company has made significant capital expenditures, including a shaft relining project and barge dock upgrades, with future capital projects potentially requiring temporary production suspensions[59] - The company's operations depend on environmental and mineral extraction permits, with potential risks from permit revocations or modifications[83] Financial Performance and Debt - The company employed 1,894 employees as of September 30, 2024, with nearly 50% represented by collective bargaining agreements[32] - As of September 30, 2024, the company had $922.8 million of outstanding indebtedness, with significant interest payments and potential risks associated with additional debt or refinancing[65] - The company's ability to make payments on its indebtedness and fund capital expenditures depends on generating future cash flows, which is subject to various external factors beyond its control[67] - The company's total net leverage ratio as of September 30, 2024, was 4.89x, with a default threshold of 6.5x through September 30, 2025, stepping down to 4.5x by December 31, 2026[68] - The company ceased paying cash dividends in fiscal 2024 to prioritize cash flow generation and debt reduction, with future dividends dependent on financial conditions and board discretion[73] - The company's ability to pay dividends is restricted by debt agreements, and future dividends are contingent on earnings and subsidiary distributions[73] - Total assets decreased from $1,816.9 million in 2023 to $1,640.1 million in 2024, a decline of 9.7%[325] - Net loss for 2024 was $206.1 million, compared to a net earnings of $10.5 million in 2023[327] - Sales declined from $1,204.7 million in 2023 to $1,117.4 million in 2024, a decrease of 7.2%[327] - Long-term debt increased from $800.3 million in 2023 to $910.0 million in 2024, a rise of 13.7%[325] - Cash and cash equivalents decreased from $38.7 million in 2023 to $20.2 million in 2024, a drop of 47.8%[325] - Gross profit decreased from $232.0 million in 2023 to $195.0 million in 2024, a decline of 16.0%[327] - Retained earnings dropped significantly from $220.9 million in 2023 to $2.2 million in 2024[325] - Comprehensive loss for 2024 was $197.8 million, compared to a comprehensive income of $21.1 million in 2023[329] - Selling, general and administrative expenses decreased from $150.2 million in 2023 to $137.8 million in 2024, a reduction of 8.3%[327] - Interest expense increased from $55.5 million in 2023 to $69.5 million in 2024, a rise of 25.2%[327] - Comprehensive loss for fiscal year 2024 was $197.8 million, primarily driven by a net loss of $206.1 million and a $191.0 million loss on impairments[333] - Net cash provided by operating activities decreased significantly to $14.4 million in 2024, compared to $106.0 million in 2023 and $120.4 million in 2022[333] - Capital expenditures were $114.2 million in 2024, a decrease from $154.3 million in 2023 and $96.6 million in 2022[333] - The company raised $240.7 million through a private placement of common stock in 2023[331] - Total stockholders' equity decreased from $521.0 million in 2023 to $316.6 million in 2024, mainly due to the comprehensive loss[331] - Dividends paid decreased to $12.6 million in 2024 ($0.30 per share) from $24.9 million in 2023 ($0.60 per share)[331][333] - Depreciation, depletion and amortization expenses increased to $105.0 million in 2024 from $98.6 million in 2023[333] - The company's cash and cash equivalents decreased to $20.2 million at the end of 2024 from $38.7 million at the end of 2023[333] - Stock-based compensation expenses decreased to $8.1 million in 2024 from $20.6 million in 2023[333] Environmental and Regulatory Compliance - The total recordable injury rate (TRIR) for fiscal 2024 was 1.28, reflecting the company's focus on safety and health[33] - The company's environmental, social, and governance goals include safety, employee development, and diversity and inclusion, with specific targets set for fiscal 2025[32] - Environmental capital expenditures for fiscal 2024 were $3.8 million, with an expected $3.6 million for fiscal 2025[40] - Accruals for environmental liabilities as of September 30, 2024, totaled $1.8 million[40] - The company holds numerous environmental and mineral extraction permits, which are subject to renewals and reissuances[41] - The Cote Blanche mine is subject to regulation by the Mine Safety and Health Administration (MSHA) and is considered a "gaseous mine," posing heightened risks of explosion and fire[43] - The company has post-closure reclamation obligations, requiring financial surety bonds to fund reclamation and site cleanup[43] - A binding Voluntary Agreement with the Utah Division of Forestry, Fire and State Lands outlines brine withdrawal caps based on annual lake elevation[43] - The company has incurred and expects to continue to incur costs and liabilities related to environmental remediation activities under CERCLA and similar laws[44] - Compliance with EHS laws and regulations could lead to increased costs, fines, or operational modifications[86] - Environmental liabilities from past and present operations could result in significant remediation costs[87] - The company donated non-production-related water rights totaling approximately 201,000 acre feet annually, resulting in an impairment of approximately $17.6 million[341] - The company holds water rights valued at $0.2 million as of September 30, 2024, down from $17.8 million in 2023[393] Risks and Challenges - Material weaknesses in internal control over financial reporting were identified, potentially leading to financial misstatements and compliance issues[50] - The company's mining operations are subject to significant risks, including environmental hazards, industrial accidents, and natural disasters[51] - Geological conditions at salt mining operations could lead to mine shutdowns, increased costs, and production delays[53] - Weather conditions significantly impact sales, production, and operational results, with prolonged changes potentially leading to material impacts on operations[54] - Nearly 50% of the workforce in the U.S., Canada, and the U.K. is represented by collective bargaining agreements, with potential labor disruptions impacting operations and financial results[63] - Energy costs, primarily natural gas and electricity, represent a substantial part of production costs, with significant price increases or supply interruptions potentially adversely affecting the business[64] - The company faces financial assurance requirements, including performance bonds for tax disputes and site cleanup, which could materially affect its business if not satisfied[72] - Seasonal demand fluctuations for salt, plant nutrition, and fire retardant products can lead to excess inventory, increased storage costs, or inventory write-downs[75] - Anticipated changes in potash prices and customer application rates significantly impact demand and pricing for the company's plant nutrition products[76] - The company's transportation costs, particularly for salt products, are a significant component of total delivered product cost, with potential adverse effects from increased rates or reduced availability[80] - Inflation could result in higher costs for transportation, energy, materials, and labor, potentially decreasing profitability[79] - Exchange rate fluctuations, particularly with Canadian dollars and British pounds, significantly impact financial results due to translation into US dollars[81] - The agricultural sector's demand for products is influenced by crop prices, planted acreage, and crop yields, with SOP demand tied to high-value crops like almonds and citrus[82] - Over-supply of MOP or SOP could lead to price disparities, potentially reducing sales volume and operational results[82] - The company faces ongoing litigation, including a securities class action lawsuit, with potential financial impacts[84][85] - Compliance with anti-corruption laws like the FCPA and UK Bribery Act increases operational costs and risks[90] - Changes in trade laws, tariffs, or state-specific legislation could adversely affect salt sales and financial performance[91] - The company faces significant product liability risks, including potential recalls due to contamination or failure to meet specifications, which could result in substantial financial losses and reputational damage[92] - Intellectual property risks include potential misappropriation, infringement claims, and challenges to patent rights, which could weaken the company's competitive advantage and impact financial performance[93][94] - The company's success depends on the effective implementation of business strategies, including cost savings initiatives and the commercialization of new products like Fortress North America's fire retardants[95] - Labor shortages or the loss of key personnel could lead to higher costs, decreased productivity, and reputational harm, impacting the company's performance[96] - Disruptions or compromises in computer systems and IT infrastructure could adversely affect business operations, financial reporting, and customer relationships[98] - Climate change and related regulations could negatively impact product demand, production costs, and the ability to distribute products, particularly for deicing and plant nutrition products[99] - Acquisitions and investments may not perform as expected, leading to increased debt obligations, integration challenges, and potential loss of key employees[100][102] - Outbreaks of contagious diseases, such as COVID-19, could disrupt operations, supply chains, and customer demand, adversely affecting the company's financial condition[103] - The company is exposed to interest rate risk, with a 100 basis point increase potentially raising interest expenses by $3.8 million on $383.9 million of variable rate debt[284] - Foreign currency fluctuations could impact operating earnings, with a hypothetical 10% unfavorable change in exchange rates estimated to reduce earnings by $0.6 million[285] - The company has hedged 2.3 MMBtus of natural gas purchases, with 2.0 MMBtus expiring within one year, all designated as cash flow hedges[287] - A hypothetical 10% adverse change in natural gas prices would increase product costs by approximately $0.6 million for the fiscal year ended September 30, 2024[287] - The company recorded unrecognized tax benefits of $37.1 million as of September 30, 2024, with a portion related to provincial taxes in Canada[297] - Material weaknesses in internal control over financial reporting were identified as of September 30, 2024, affecting the design and operation of process-level controls[301] - The company may hedge up to approximately 90% of its expected natural gas usage to mitigate price fluctuations[287] - The company does not engage in hedging for speculative investment purposes[287] - The company's internal control over financial reporting was deemed ineffective as of September 30, 2024, due to material weaknesses[314] - The company's audit included increased sample selections and testing of underlying records due to material weaknesses in internal controls[303] - The company's financial statements for the fiscal year ended September 30, 2024, were audited and found to be in conformity with U.S. GAAP[292] - The company's financial reporting processes were affected by ineffective internal controls related to risk assessment and information communication[316] Impairments and Discontinued Operations - The company disposed of its South America chemicals and specialty plant nutrition businesses in fiscal 2021, which were reclassified as discontinued operations[336] - The company recorded an impairment charge of $74.8 million related to the termination of its lithium development project[339] - The company impaired all magnesium chloride-related assets, resulting in a long-lived asset impairment of $15.6 million and an inventory impairment of $2.4 million[341] - The company recognized goodwill impairment charges totaling $83.0 million, with $51.0 million related to the Plant Nutrition segment and $32.0 million related to the Fortress reporting unit[341] - The company donated non-production-related water rights totaling approximately 201,000 acre feet annually, resulting in an impairment of approximately $17.6 million[341] - Total impairments for the fiscal year ended September 30, 2024, amounted to $193.4 million[341] - The company recorded foreign exchange losses of $0.2 million for the fiscal year ended September 30, 2024[346] - The company's revenue arrangements generally consist of a single performance obligation to transfer promised goods or services[348] - The company maintains the majority of its cash in bank deposit accounts with several commercial banks with high credit ratings[349] - The company's inventories are stated at the lower of cost or net realizable value, with finished goods primarily comprised of salt, magnesium chloride, SOP products, and fire retardants[351] - The company's property, plant, and equipment includes mineral interests, with the weighted average amortization period for leased probable mineral reserves being 85 years[353] - The company's probable owned mineral reserves have a weighted average life of 33 years as of September 30, 2024, based on current production estimates[354] - Capitalized computer software costs were $3.0 million and $3.7 million as of September 30, 2024 and 2023, respectively, with amortization expenses of $1.6 million, $3.3 million, and $7.6 million for fiscal years 2024, 2023, and 2022[354] - The company recorded an impairment charge of $74.8 million related to its lithium development for the year ended September 30, 2024[354] - Other noncurrent assets include inventories of spare parts, net of reserve, of $42.2 million and $35.8 million at September 30, 2024 and 2023, respectively[357] - Investments in marketable securities totaled $3.1 million and $2.6 million as of September 30, 2024 and 2023, respectively[358] - The company acquired the remaining 55% interest in Fortress for an initial cash payment of $18.9 million and additional contingent consideration of up to $28 million[368] - The company ceased paying dividends in the second fiscal quarter of 2024[363] - The company's foreign subsidiaries file separate tax returns in their respective jurisdictions[359] - The company's environmental costs were not material at September 30, 2024 or 2023[361] - The company sold its South America specialty plant nutrition business for net cash of approximately $318.4 million, with an additional earnout payment of up to R$88 million Brazilian reais, of which $18.5 million was received on April 7, 2022[369] - The company completed the sale of its North America micronutrient business for approximately $56.7 million in cash proceeds and its investment in Fermavi for R$45 million Brazilian reais, with $2.9 million in cash proceeds and $4.8 million in deferred proceeds receivable[369] - The company sold its South America chemicals business for gross proceeds of approximately $51.5 million, including a post-closing adjustment of $6.4 million, and recognized an incremental loss of $23.1 million from the sale[369] - Discontinued operations for fiscal year 2022 generated sales of $53.6 million, gross profit of $22.4 million, and net earnings of $12.2 million[371] - Proceeds from the sale of businesses in discontinued operations amounted to $61.2 million for fiscal year 2022[371] - Deferred revenue as of September 30, 2024, was approximately $3.6 million, down from $8.5 million in 2023[382] - Operating lease assets as of September 30, 2024, were $50.0 million, down from $54.7 million in 2023[384] - Total lease liabilities as of September 30, 2024, were $68.3 million, up from $63.9 million in 2023[384] - Total lease cost for September 30, 2024 is $40.1 million, with operating lease cost at $20.9 million and finance lease cost at $2.8 million[386] - Total lease payments for the years ending September 30, 2025 to 2029 and after 2029 amount to $79.7 million, with operating leases at $59.1 million and finance leases at $20.6 million[386] - Weighted-average remaining lease term for operating leases is 5.1 years and for finance leases is 7.8 years as of September 30, 2024[386] - Total inventories as of September 30, 2024 are $414.1 million, with finished goods at $336.5 million and raw materials and supplies at $71.2 million[388] - Property, plant and

Exhibit 99.1 FOR IMMEDIATE RELEASE Compass Minerals Reports Final Fiscal 2024 Third-Quarter Results OVERLAND PARK, Kan. (Oct. 29, 2024) - Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported final fiscal 2024 third-quarter results. Unless otherwise noted, it should be assumed that time periods referenced below are on a fiscal-year basis. REPORTING UPDATE On Oct. 29, 2024, Compass Minerals filed a Form 10-K/A and a Form 10-Q/A correcting financial statements covering ...

BAODING, China, Nov. 15, 2024 /PRNewswire/ -- IT Tech Packaging Inc. (NYSE American: ITP) ("IT Tech Packaging" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced its unaudited financial results for the nine and three months ended September 30, 2024.Third Quarter 2024 Unaudited Financial Results For the Three Months Ended September 30,  ($ millions) 2024 2023 % Change  Revenues 25.08 15.77 59.03 %  Regular Corrugating ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to __________________________ Commission File Number 001-31921 Compass Minerals International, Inc. (Exact name of registrant as specified in its ...

Compass Minerals (CMP) came out with a quarterly loss of $1.01 per share versus the Zacks Consensus Estimate of a loss of $0.67. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -50.75%. A quarter ago, it was expected that this minerals producer would post earnings of $0.23 per share when it actually produced earnings of $1.49, delivering a surprise of 547.83%. Over the last four quarters, th ...