Compass Minerals Reports Second-Quarter 2021 Results and Robust Cash Flow from Operations
Compass Minerals shared financial results for the second quarter of 2021 today, including consolidated revenue of $199.4 million that is up 14% year-over-year.
Additionally, the company’s year-to-date cash flow from operations of $255.4 million is an increase of approximately 16% compared to the first six months of 2020.
“Following a very strong first-quarter, we maintained solid momentum in the second quarter, both in top-line performance and strategic execution,” said Kevin S. Crutchfield, president and CEO. “We are pleased to have closed the South America agriculture business sale, enabling us to significantly lower our outstanding debt levels, reduce our working capital requirements and increase our liquidity. With renewed balance sheet flexibility, we remain focused on fully leveraging our advantaged asset base and expanding our essential minerals business to maximize shareholder value. Last month, we announced that we have identified an approximately 2.4 million metric ton sustainable lithium resource and are evaluating multiple paths forward for this exciting resource.”
Other second-quarter 2021 results discussed include:
- Salt segment operating earnings declined $3.3 million for the second quarter of 2021 compared to the second quarter of 2020 due to elevated shipping and handling expense, although are up $20.5 million year-to-date or approximately 23% compared to the prior period
- Plant Nutrition segment operating earnings declined $5.6 million for the second quarter of 2021 compared to the second quarter of 2020, primarily due to previously discussed SOP feedstock inconsistencies
- Average sales price strengthened for the company’s Protassium+® SOP product to approximately $610 per ton, an increase of 6% versus first-quarter 2021 pricing
- Previously disclosed change in interim inventory valuation method shifted approximately $12 million of Salt segment product cost from first-quarter 2021 to subsequent quarters, with approximately $11 million of this cost included in second-quarter 2021 results
- In July 2021, the company reduced its long-term debt by approximately $400 million (including from discontinued operations) to approximately $864 million, significantly reducing the company’s leverage ratio, following the completed sale of its South America specialty plant nutrition business
- New nine-month 2021 outlook for adjusted EBITDA from continuing operations is anticipated to be $175 million to $185 million, which reflects only three quarterly reporting periods due to the previously disclosed change in fiscal year-end to Sept. 30
You can find additional details in the press release and the Second-Quarter 2021 Business Update presentation posted in the Investor Relations section.