Compass Minerals, Overland Park, Kan., reported net income from continuing operations of $32.9 million ($0.96 per diluted share) on sales of $426 million, compared to the year-ago $33.9 million ($0.99 per share) and $346.9 million, respectively. Continuing businesses include its Salt and Plant Nutrition segments (formerly Plant Nutrition North America). Operating earnings were $63.6 million, up from $45.4 million Adjusted EBITDA was $97.3 million, up from $75.1 million.
Discontinued businesses, which have been or are being sold, include the North America micronutrient business and the South American plant nutrient business. Including these businesses, Compass had a net loss of $223.6 million ($6.60 per share), compared to year-ago income of $27.6 million ($0.80 per share).
“On the heels of a challenging year, we are pleased to have come out of the gate in 2021 with a very productive first quarter, while concurrently making meaningful progress executing on our strategic priorities,” said Kevin Crutchfield, President and CEO. “Our relentless focus on optimization has translated into improved per-unit operating costs within our Salt segment. In addition, continued solid demand for our Protassium+ product underpins our position as the North American SOP market leader.
“We also continue to focus on strengthening our balance sheet, which is expected to be aided by the proceeds from the sale agreement for our South America specialty plant nutrition business and the completed sale of certain North America micronutrient assets,” he added. “Our intent moving forward is to concentrate on our advantaged core assets and selectively pursue strategic opportunities for growth.”
Plant Nutrition first-quarter revenue totaled $54.2 million, down 4 percent from prior-year results. Sales volumes and average selling prices each decreased approximately 2 percent compared to first-quarter 2020 results. This was partially offset by a 9 percent improvement in per-unit logistics costs, primarily driven by a significantly higher mix of direct customer shipments compared to the same period a year ago.
First-quarter operating earnings declined $2.2 million from the first quarter of 2020 to $4.4 million, which reflects higher operating costs per ton, while EBITDA totaled $13.2 million compared to $16.4 million in the prior-year period.
On May 4, 2021, the company successfully closed its previously announced North America micronutrient sale to Koch Agronomic Services, Wichita, for approximately $60 million, subject to a closing working capital adjustment.
Company-wide, Compass gives guidance of full-year adjusted EBITDA of $270-$295 million.
Compass expects Plant Nutrition to see a modest year-over-year decrease in second-quarter sales volumes, with slightly higher average SOP selling prices compared to the year-ago period. It puts second-quarter segment EBITDA between $8-$13 million and revenue $40-$50 million. Full-year volumes are put at 350-380,000 st.
The company expects second-quarter Salt segment revenue to benefit from a mix-driven average selling price improvement, partially offsetting anticipated higher year-over-year logistics costs and sales mix related per-unit operating costs. Second-quarter segment EBITDA is put at $37-$47 million and revenue $110-$135 million. Full-year volumes are expected at 11.5-12.3 million.
| Plant Nutrition | 1Q-21 | 1Q-20 |
| Sales ($/M) | 54.2 | 56.4 |
| Operating Earnings ($/M) | 4.4 | 6.6 |
| EBITDA ($/M) | 13.2 | 16.4 |
| Sales Volumes (000 st) | 94 | 96 |
| Avg Sales Price ($/st) | 579 | 590 |
| Salt | 1Q-21 | 1Q-20 |
| Sales ($/M) | 369 | 287.8 |
| Operating Earnings ($/M) | 80.1 | 56.9 |
| EBITDA ($/M) | 98.1 | 71.5 |
| Sales Volumes (000 st) | 5,028 | 3,573 |
| Avg Sales Price ($/st) | 73.38 | 80.53 |