Compass Minerals (NYSE: CMP) has reported its preliminary fiscal 2024 third-quarter results, which are subject to change until the filing of the company’s Form 10-Q for the quarter ended June 30, 2024.
The company reported preliminary revenue of $202.9 million for the quarter ended June 30, 2024. Operating earnings were $5.9 million, adjusted operating earnings were $7.4 million, and adjusted EBITDA was $32.8 million. The net loss for the quarter was $43.6 million, with a net loss per diluted share of $1.05. Adjusted net loss was $42.1 million, with an adjusted net loss per diluted share of $1.01.
The salt segment showed strong performance with a preliminary adjusted EBITDA of $41.6 million, and an adjusted EBITDA per ton of $28.05. The preliminary operating earnings margin and adjusted EBITDA margin for the salt segment were 16.1% and 25.9%, respectively.
In the plant nutrition business, preliminary operating loss totaled $1.4 million, and adjusted EBITDA was $7.2 million. Preliminary revenue for the plant nutrition segment totaled $38.8 million, with sales volumes of 56 thousand tons and an average segment sales price for the quarter of $691.27 per ton.
Compass Minerals ended the quarter with $220.8 million of liquidity, comprised of $12.8 million in cash and cash equivalents, and $208.0 million of availability under its $375 million revolving credit facility.
The company provided preliminary updated guidance for 2024, with the adjusted EBITDA from the salt segment expected to be in the range of $215 million to $225 million, and the adjusted EBITDA from the plant nutrition segment expected to be in the range of $21 million to $26 million. The corporate segment is expected to have an adjusted EBITDA in the range of ($41) million to ($35) million.
Total capital expenditures for the company in 2024 are expected to be within a range of $115 million to $130 million. The company's projections also include other assumptions such as depreciation, depletion and amortization in the range of $100 million to $110 million, net interest expense in the range of $65 million to $70 million, and an effective income tax rate (excluding valuation allowance and impairments) in the range of (25%) to (20%).
Compass Minerals operates 12 production and packaging facilities with nearly 2,000 employees throughout the U.S., Canada, and the U.K. As a result of these announcements, the company's shares have moved 23.6% on the market, and are now trading at a price of $11.38. For more information, read the company's full 8-K submission here.
