Compass Minerals International Inc. (CMP, Financial) filed Quarterly Report for the period ended 2009-09-30.
Compass Minerals is the largest producer of rock or highway deicing salt in North America and the United Kingdom and operates the largest highway deicing salt mines in these regions. The company is also the third largest producer of general trade salt in North America and the second largest in the United Kingdom serving major retailers agricultural cooperatives and food producers. In addition Compass is the largest producer of sulfate of potash in North America which is used in the production of specialty fertilizers. Compass Minerals International Inc. has a market cap of $2.05 billion; its shares were traded at around $62.76 with a P/E ratio of 11.1 and P/S ratio of 1.8. The dividend yield of Compass Minerals International Inc. stocks is 2.2%.
Sales for the nine months ended September 30, 2009 of $650.9 million decreased $128.5 million, or 16% compared to $779.4 million for the nine months ended September 30, 2008. Salt segment sales of $542.7 million for the nine months ended September 30, 2009 decreased $52.6 million from $595.3 million for the same period in 2008 while specialty fertilizer sales of $100.5 million for the nine months ended September 30, 2009 decreased $74.6 million from $175.1 million for the same period in 2008. Shipping and handling costs were $169.5 million during the first nine months of 2009, a decrease of $66.6 million compared to $236.1 million for the same period in 2008. The decrease in shipping and handling costs primarily reflects the lower sales volumes for the nine months ended September 30, 2009 when compared to same period of 2008, and the impact of lower per unit fuel and transportation costs.
Other expense of $6.3 million for the nine months ended September 30, 2009 primarily includes a $5.0 million charge related to the refinancing of the 12% senior subordinated discount notes, including tender and other fees of $4.1 million and the write-off of deferred financing fees of $0.9 million. Other expense of $5.5 million for the nine months ended September 30, 2008 primarily consists of a call premium of $4.2 million and a write-off of $0.9 million related to the early extinguishment of $70.0 million of the Company s 12% senior subordinated discount notes. Both periods also include foreign currency exchange losses.
Cash and cash equivalents of $13.2 million as of September 30, 2009 decreased $21.4 million from December 31, 2008. Our operating cash flows were $68.5 million in the first nine months of 2009. We used a portion of those cash flows and our cash on hand at the beginning of the year to fund capital expenditures of $53.6 million and to pay dividends on our common stock of $35.3 million. During 2009, we also refinanced our 12% Senior Subordinated Notes and repaid the December 31, 2008 balance of our revolving credit facility of $8.6 million.
As of September 30, 2009, we had $491.7 million of principal indebtedness including $97.5 million of 8% Senior Notes and $394.2 million of term loan borrowings under our senior secured credit agreement. Our senior secured credit agreement also includes a revolving credit facility which provides borrowing capacity up to an aggregate amount of $125.0 million. No amounts were borrowed under our revolving credit facility as of September 30, 2009. Our availability under the revolving credit facility was $115.2 million, net of $9.8 million of outstanding letters of credit as of September 30, 2009.
Financing activities during the 2009 nine-month period used $42.3 million of cash flows, primarily to make payments of $8.6 million to reduce our outstanding debt and $35.3 million for dividends to stockholders. During 2008, we used $140.4 million in financing activities primarily to make $111.3 million of payments to reduce our outstanding debt and $33.2 million of dividend payments.
Read the The complete ReportCMP is in the portfolios of John Keeley of Keeley Fund Management.
Compass Minerals is the largest producer of rock or highway deicing salt in North America and the United Kingdom and operates the largest highway deicing salt mines in these regions. The company is also the third largest producer of general trade salt in North America and the second largest in the United Kingdom serving major retailers agricultural cooperatives and food producers. In addition Compass is the largest producer of sulfate of potash in North America which is used in the production of specialty fertilizers. Compass Minerals International Inc. has a market cap of $2.05 billion; its shares were traded at around $62.76 with a P/E ratio of 11.1 and P/S ratio of 1.8. The dividend yield of Compass Minerals International Inc. stocks is 2.2%.
Highlight of Business Operations:
Sales for the third quarter of 2009 of $182.3 million decreased $55.1 million, or 23% compared to $237.4 million for the same quarter of 2008. Salt segment sales of $155.5 million for the third quarter of 2009 decreased $5.7 million from $161.2 million in the third quarter of 2008 while specialty fertilizer sales of $23.9 million decreased $49.5 million from $73.4 million in the third quarter of 2008. Sales primarily include revenues from the sale of our products which, in most instances, includes delivery to our customers, and revenues from our records management business. Product sales include sales as defined above less shipping and handling costs incurred to deliver salt and specialty fertilizer products to our customers. Shipping and handling costs decreased $21.8 million from $62.8 million in third quarter of 2008 to $41.0 million in the third quarter of 2009 due, in part, to lower sales volumes during the third quarter of 2009 when compared to the same period of 2008. In addition, the lower price of fuel and transportation services and product mix changes in the third quarter of 2009 have decreased our average per unit cost of shipping and handling products to our salt customers by approximately 20%.Sales for the nine months ended September 30, 2009 of $650.9 million decreased $128.5 million, or 16% compared to $779.4 million for the nine months ended September 30, 2008. Salt segment sales of $542.7 million for the nine months ended September 30, 2009 decreased $52.6 million from $595.3 million for the same period in 2008 while specialty fertilizer sales of $100.5 million for the nine months ended September 30, 2009 decreased $74.6 million from $175.1 million for the same period in 2008. Shipping and handling costs were $169.5 million during the first nine months of 2009, a decrease of $66.6 million compared to $236.1 million for the same period in 2008. The decrease in shipping and handling costs primarily reflects the lower sales volumes for the nine months ended September 30, 2009 when compared to same period of 2008, and the impact of lower per unit fuel and transportation costs.
Other expense of $6.3 million for the nine months ended September 30, 2009 primarily includes a $5.0 million charge related to the refinancing of the 12% senior subordinated discount notes, including tender and other fees of $4.1 million and the write-off of deferred financing fees of $0.9 million. Other expense of $5.5 million for the nine months ended September 30, 2008 primarily consists of a call premium of $4.2 million and a write-off of $0.9 million related to the early extinguishment of $70.0 million of the Company s 12% senior subordinated discount notes. Both periods also include foreign currency exchange losses.
Cash and cash equivalents of $13.2 million as of September 30, 2009 decreased $21.4 million from December 31, 2008. Our operating cash flows were $68.5 million in the first nine months of 2009. We used a portion of those cash flows and our cash on hand at the beginning of the year to fund capital expenditures of $53.6 million and to pay dividends on our common stock of $35.3 million. During 2009, we also refinanced our 12% Senior Subordinated Notes and repaid the December 31, 2008 balance of our revolving credit facility of $8.6 million.
As of September 30, 2009, we had $491.7 million of principal indebtedness including $97.5 million of 8% Senior Notes and $394.2 million of term loan borrowings under our senior secured credit agreement. Our senior secured credit agreement also includes a revolving credit facility which provides borrowing capacity up to an aggregate amount of $125.0 million. No amounts were borrowed under our revolving credit facility as of September 30, 2009. Our availability under the revolving credit facility was $115.2 million, net of $9.8 million of outstanding letters of credit as of September 30, 2009.
Financing activities during the 2009 nine-month period used $42.3 million of cash flows, primarily to make payments of $8.6 million to reduce our outstanding debt and $35.3 million for dividends to stockholders. During 2008, we used $140.4 million in financing activities primarily to make $111.3 million of payments to reduce our outstanding debt and $33.2 million of dividend payments.
Read the The complete ReportCMP is in the portfolios of John Keeley of Keeley Fund Management.
