Compass Minerals, Overland Park, Kan., said on Aug. 4 it is postponing its second-quarter results after corrections to its interim inventory valuation methodology resulted in the identification of a historical understatement of first-quarter operating income.
For 2021, this correction resulted in shifting approximately $12 million of previously reported Salt segment operating expenses from the first quarter of 2021 to subsequent quarters. It said the understatement is completely offset in subsequent quarters, with no impact to FY results.
The adjustments to the statement of operations will be reflected in the quarterly information presented as an amended Annual Report on Form 10-K for the year ended Dec. 31, 2020, and an amended Quarterly Report on Form 10-Q for the period ended March 31, 2021. It also intends to restate other immaterial prior-period items.
Compass had originally planned to release second-quarter results on Aug. 4 and have an earnings call on Aug. 5.
The company is rescheduling its quarterly earnings conference call, and it intends to file its Quarterly Report on Form 10-Q for the period ended on June 30, 2021, on Aug. 9, 2021, or as promptly as possible thereafter.
Compass anticipates reporting a material weakness in internal control over financial reporting with respect to interim inventory controls related to interim financial reporting. The company is remediating controls around its interim inventory accounting process. It said these controls will be tested for effectiveness in future periods.