Compass Minerals International, Inc. has recently released its 10-K report, providing a detailed look into its operations and financial performance. The company operates through two segments, Salt and Plant Nutrition, providing essential minerals such as sodium chloride and magnesium chloride, as well as specialty fertilizers and fire retardant products. As of September 30, 2024, Compass Minerals operates 12 production and packaging facilities with nearly 1,900 personnel throughout the U.S., Canada, and the U.K.
In the fiscal year ended September 30, 2024, Compass Minerals reported a decrease in total sales by 7%, amounting to $87.3 million, primarily driven by lower Salt segment sales, partially offset by higher sales in the Plant Nutrition segment and sales from the Fortress fire retardant business. The company reported an operating loss of $116.8 million, a significant decrease from operating earnings of $77.4 million in the prior fiscal year, mainly due to impairments related to the previous lithium development project, the Fortress business, and the Plant Nutrition segment. The diluted net loss per share was $4.99, a decrease from net earnings of $0.25 per common share in the prior fiscal year period.
Adjusted EBITDA increased by 4%, or $7.2 million, benefiting from a $22.1 million net gain recorded in the current fiscal year related to the decline in the valuation of the Fortress contingent consideration. However, the gross profit decreased by 16%, or $37.0 million, with a decrease in gross margin from 19% to 17%. The Salt segment's gross profit decreased by $9.1 million, primarily due to lower sales volumes and higher per-unit product costs, while the Plant Nutrition segment's gross profit decreased by $28.4 million due to lower average sales prices.
Compass Minerals also reported a significant loss on impairments of $191.0 million in the fiscal year ended September 30, 2024, including goodwill impairments related to the Plant Nutrition segment and the Fortress operations, as well as other long-lived asset and inventory impairments. The company recognized an impairment loss of $74.8 million related to the termination of the lithium development and a $17.6 million impairment related to water rights in the Plant Nutrition segment.
In terms of expenses and income, SG&A decreased by $12.4 million, primarily due to lower corporate expenses and lower compensation expenses due to restructuring. Interest expense increased by $14.0 million, primarily due to higher debt levels in the current fiscal year period.
The market has reacted to these announcements by moving the company's shares 0.5% to a price of $12.67. Check out the company's full 10-K submission here.
