Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenue of $448 million, a net loss of $42 million, or $1.22 per diluted share, and an adjusted net loss of $39 million, or $1.14 per diluted share [16] - Adjusted EBITDA was $59 million, resulting in an adjusted EBITDA margin of 13% [16] - Comparable store sales decreased by 4% year-over-year, with a sequential improvement noted in October, where sales were down approximately 1% [15][16] Business Line Data and Key Metrics Changes - The company saw positive same-store sales for food and beverage during the quarter, with October being the best month of the year for same-store food sales [8][16] - The Eat & Play Combo promotion has shown significant traction, with guest attachment improving to a double-digit percentage since the beginning of the year [9] Market Data and Key Metrics Changes - The company opened one domestic D&B store and three new domestic Main Event stores in Q3, bringing the total new store openings year-to-date to nine [18] - The company expects to open four more international franchise locations over the next six months, with agreements secured for over 35 additional stores in the coming years [18] Company Strategy and Development Direction - The company is focused on a "back-to-basics" plan, which includes enhancing marketing strategies, improving food and beverage offerings, and revamping game offerings [4][5] - A new remodel program is underway, with three remodels under construction and plans for six new remodels in the next five months [12][19] - The leadership team has been strengthened with the addition of key executives to enhance capabilities and drive growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to improve operating results and drive value creation for guests and shareholders [4] - The company is optimistic about the upcoming 2026 game lineup, which is expected to resonate well with customers [10][11] - Management noted that they are seeing healthy spending and increased time spent by guests in the Midway [25] Other Important Information - The company generated $58 million in operating cash flow during Q3 and ended the quarter with $14 million in cash and $442 million in total liquidity [16][17] - The company is committed to generating free cash flow while investing in new store growth and high ROI initiatives [17] Q&A Session Summary Question: What marketing messages are resonating with consumers? - Management noted that smart value offers, rather than discounts, are resonating well with consumers, leading to increased traction for their value messaging [21] Question: How are consumers spending in the Midway? - Management indicated that guests are spending more and spending more time in the Midway, reflecting healthy consumer engagement [25] Question: Are refinements to the marketing media mix sufficient to change consumer perception? - Management acknowledged strong brand awareness and emphasized the need for data-driven media planning to convert reach into real customers [30] Question: What are the learnings from the remodel prototype? - Management confirmed that remodels are still showing a positive impact of approximately 700 basis points and emphasized the importance of investing in areas that directly enhance guest experience [32] Question: How did entertainment comps perform throughout the quarter? - Management reported sequential improvement in entertainment comps, indicating a positive trend moving forward [36]

Core Viewpoint - Compass Minerals executed a back-to-basics strategy in fiscal 2025, focusing on improving the performance of its core Salt and Plant Nutrition businesses, resulting in a leaner and more resilient company [2]. Fiscal Fourth-Quarter and Full-Year 2025 Summary - The company reported a net loss of $7.2 million for Q4 2025, an improvement from a net loss of $48.3 million in the same period last year [6]. - Total adjusted EBITDA for Q4 2025 was $41.6 million, up from $15.6 million year-over-year [6]. - For the full fiscal year 2025, the reported net loss was $79.8 million compared to a loss of $206.1 million in fiscal 2024 [6]. - Total adjusted EBITDA for the year was $198.8 million, down 4% year-over-year, but increased 4% when adjusted for the impact of contingent consideration [6]. Salt Business Recap - Q4 2025 revenue for the Salt segment was $181.6 million, a 12% increase year-over-year, driven by a 13% increase in sales volumes [8]. - For the full year, Salt segment revenue rose 13% to $1,022.5 million, with a 20% increase in highway deicing sales volumes [9]. - The Salt segment's adjusted EBITDA per ton declined to approximately $20.20, an 18% decrease from fiscal 2024 levels [9]. Plant Nutrition Business Recap - Q4 2025 revenue for the Plant Nutrition segment was $41.8 million, flat year-over-year, with a 9% decrease in sales volumes but an 8% increase in price [10]. - For the full fiscal year, Plant Nutrition revenue grew 14% to $206.3 million, driven by a 19% increase in sales volumes [11]. Cash Flow and Financial Position - Net cash provided by operating activities was $197.7 million for fiscal 2025, significantly up from $14.4 million in the prior year [12]. - Net cash used in investing activities was $50.0 million, down $66.1 million year-over-year [13]. - The company ended the fiscal year with $59.7 million in cash and cash equivalents and $304.9 million available under its revolving credit facility, totaling $364.6 million in liquidity [15]. Fiscal 2026 Outlook - Guidance for total adjusted EBITDA in 2026 is projected to be between $200 million and $240 million [6]. - Salt segment adjusted EBITDA is expected to range from $225 million to $255 million, with improved margins anticipated due to stronger pricing and lower per-ton costs [6]. - Plant Nutrition segment adjusted EBITDA is forecasted to be between $31 million and $36 million, with a focus on restoring the pond complex at the Ogden facility [19].