Compass Minerals Reports Fiscal 2023 Third-Quarter Results
Compass Minerals reported its fiscal 2023 third-quarter results today that highlight progress executing against strategic priorities aimed to accelerate the company’s growth.
Additionally, the company announced total company operating loss improved to $0.6 million for the quarter compared to a loss of $3.5 million in the prior-year quarter.
“The third quarter demonstrates tangible progress toward executing upon several strategic priorities that we believe over time will accelerate our growth and enhance the value of the enterprise,” said Kevin S. Crutchfield, president and CEO. “We are pleased with the results across our businesses, most notably the continued improvement in profitability per ton in our Salt business. In addition, we are forging ahead on important elements of our lithium project, including the completion of a binding supply agreement with Ford and the advancement of the commercial-scale demonstration DLE unit in Ogden. This quarter we also saw Fortress release its first commercial product, with outstanding feedback regarding efficacy and delivery performance.”
Other third-quarter and recent highlights reported by the company include:
- Quarterly net income from continuing operations of $39.9 million versus a net loss of $10.7 million over the corresponding period last year, driven by a $42.7 million tax benefit in the current quarter reflecting the impact of the recent acquisition of Fortress North America (Fortress) and recent changes in Canadian tax law
- Adjusted EBITDA from continuing operations essentially flat year over year at $28.6 million on improved adjusted EBITDA margins
- Reported year-over-year increases in Salt operating earnings and adjusted EBITDA of 75% and 31%, respectively, with a nearly 50% improvement in adjusted EBITDA per ton to $24.41 compared to the corresponding period last year; year-over-year increases in highway deicing and consumer and industrial average pricing allowed the company to recoup substantial inflationary cost increases incurred over the last year
- Acquired remaining 55% of Fortress not previously owned, a next-generation fire-retardant company, and achieved its first commercial sales during the quarter
- Announced binding, multiyear supply agreement with Ford Motor Company (Ford) to deliver up to 40% of planned phase-one battery-grade lithium carbonate from Compass Minerals’ Ogden, Utah lithium brine development for an initial five-year term
- Extended debt maturity profile via refinancing of outstanding $250 million 4.875% Senior Notes due July 2024 with $75 million expansion of revolver to $375 million and a $200 million Term Loan A issuance
View the full release and Fiscal 2023 Third-Quarter Business Update here.