Compass Minerals announced certain actions it is undertaking to improve cash generation and accelerate debt reduction, including the board of directors determining not to declare dividends for the foreseeable future.

“Our results this quarter as well as our full-year outlook were directly and meaningfully impacted by one of the mildest winters experienced in over 25 years and by unexpected obstacles to the advancement of our fire-retardant business,” said Edward C. Dowling, Jr., president and CEO. “Accordingly, we are announcing a series of new and ongoing actions to address these challenges, including the indefinite suspension of dividend payments, adoption of operational changes to enhance flexibility and right size our highway deicing inventory and production profile, and advancement of SG&A cost saving measures including a recent reduction in our corporate workforce. These actions are in line with our previously announced focus on improving cash flow generation and returns on capital in the Salt and Plant Nutrition businesses, and accelerating debt reduction. While difficult decisions to make, each action was carefully considered and determined to be the best path forward to unlock the intrinsic value of our company amid a difficult landscape. I believe that we are positioning the company to realize the significant potential inherent in the unique assets of our core business.”

Other highlights reported by the company include:

• Adjusted EBITDA increased 13% year over year to $87.3 million, which includes a non-cash gain of $24.3 million related to the decline in the valuation of the Fortress contingent liability
• The Salt segment reported a 9% and 7% decrease year over year in both operating earnings and adjusted EBITDA, respectively, led by 21% lower sales volume; per-unit profitability improved with adjusted EBITDA per ton increasing 19% to $23.95
• Plant Nutrition sales volumes increased 23% year over year to 74,000 tons, reflecting the normalization of demand in core West Coast markets
• Reported other operating income of $21.2 million during the quarter, which primarily reflects the decline in the valuation of the contingent consideration liability associated with the Fortress acquisition given recent challenges facing the magnesium chloride-based product line in the fire-retardant business

The full release and Fiscal 2024 Second-Quarter Business Update is available here.