Compass Minerals Reports Fourth-Quarter 2012 Earnings

  Compass Minerals Reports Fourth-Quarter 2012 Earnings

Business Wire

OVERLAND PARK, Kan. -- February 6, 2013

Compass Minerals (NYSE: CMP) reports the following results of its
fourth-quarter 2012 operations:

  *Net earnings for the quarter were $30.1 million, or $0.90 per diluted
    share, compared to $43.9million, or $1.31 per diluted share, in the
    fourth quarter of 2011.
  *Full-year net earnings were $88.9 million, or $2.65 per diluted share,
    compared to $149.0million, or $4.45 per diluted share, in the prior year.
  *These results include estimated losses in both 2012 and 2011 related to
    the effects of a tornado that struck the company’s salt operations in
    Goderich, Ontario, in August 2011, as well as CEO transition expenses in
    the fourth quarter of 2012. Excluding these special items, net earnings
    were $34.3million, or $1.02 per diluted share, in the 2012 fourth quarter
    versus $55.3million, or $1.65per diluted share, in the 2011 quarter. For
    the full year, net earnings excluding special items were $104.4 million,
    or $3.11 per diluted share, in 2012 and $160.4million, or $4.79 per
    diluted share, in 2011.
  *Fourth-quarter sales decreased $39.0 million from the fourth quarter of
    2011 to $267.1million due to the effects of mild winter weather in North
    America that continued to limit deicing salt sales, partially offset by
    higher sales of specialty fertilizer products.
  *Operating income was $42.2 million, down from $60.0 million in the
    prior-year period, primarily resulting from lower salt sales volumes and
    higher specialty fertilizer per-unit product costs.
  *Cash flow from operations for 2012 was $151.7 million compared to $252.3
    million in 2011.

“Strong and steady demand for Compass Minerals’ specialty fertilizer products
has helped offset some of the short-term softness in the company’s salt
business caused by the mild winter weather,” said Fran Malecha, Compass
Minerals’ new president and CEO, who joined the company in mid-January. “I
attribute this company’s strength and resilience to its great people and
valuable assets. Those are the fundamentals for success in any business. I’m
impressed by Compass Minerals’ potential and excited to be a part of its
bright future.”


Financial Results

(in millions except per-share data)
                               Three months ended      Twelve months ended
                                                    
                               December 31,            December 31,
                               2012       2011        2012       2011
Sales                          $ 267.1     $ 306.1     $ 941.9     $ 1,105.7
Sales less shipping and          206.3       227.2       703.8       811.9
handling (product sales)
Operating earnings               42.2        60.0        133.2       215.3
Operating margin                 16    %     20    %     14    %     19      %
Net earnings                     30.1        43.9        88.9        149.0
Net earnings, excluding          34.3        55.3        104.4       160.4
special items*
Diluted earnings per share       0.90        1.31        2.65        4.45
Diluted earnings per share,      1.02        1.65        3.11        4.79
excluding special items*
EBITDA*                          60.2        77.4        194.0       283.0
Adjusted EBITDA*               59.5     75.9     197.7    280.0   

*These are non-GAAP financial measures. Reconciliations to GAAP measures of
performance are provided in tables following this release.

SALT SEGMENT

Salt segment sales declined to $206.7 million from $250.1 million in the 2011
quarter as demand for highway, consumer and commercial deicing products was
curtailed by a combination of mild winter weather throughout much of North
America and higher-than-typical customer inventories carried over from last
winter. Demand for all other types of salt was substantially the same as in
the 2011 quarter. Highway deicing sales volume declined 17 percent from the
2011 quarter while the business unit’s average selling price remained
consistent year over year. Lower demand for consumer and commercial deicing
products drove a 13 percent decline in consumer and industrial sales volume
and generated an unfavorable product mix shift that decreased the business
unit’s average selling price by 4 percent year over year.

Operating earnings in the salt segment were $47.9 million compared to $53.4
million in the prior-year quarter primarily due to reduced deicing sales and
the effect of lower sales volumes on per-unit product costs, partially offset
by lower estimated losses from the effects of the 2011 tornado in Goderich,
Ontario. Excluding tornado-related losses from both years, the company
estimates that salt segment operating earnings in the 2012 quarter would have
been approximately $51.0million compared to $69.8million in the 2011 period.

The company estimates that tornado-related losses totaled approximately $21.4
million for the full 2012 year and $16.4 million in 2011. The company does not
expect to report any material estimated losses related to the effects of the
tornado in 2013.


Salt Segment Performance

(in millions except for sales volumes and prices per short ton)
                             Three months ended        Twelve months ended
                                                    
                             December 31,              December 31,
                             2012        2011         2012        2011
Sales                        $ 206.7      $ 250.1      $ 703.4      $ 885.3
Sales less shipping and      $ 152.5      $ 177.1      $ 491.5      $ 616.8
handling (product sales)
Operating earnings           $ 47.9       $ 53.4       $ 126.0      $ 184.7
Operating margin               23     %     21     %     18     %     21     %
Sales volumes (in
thousands of tons):
Highway deicing                2,255        2,724        7,530        10,235
Consumer and industrial       585        675        2,095      2,285  
Total salt                     2,840        3,399        9,625        12,520
Average sales price (per
ton):
Highway deicing              $ 52.56      $ 52.86      $ 53.11      $ 52.30
Consumer and industrial      $ 150.95     $ 156.97     $ 144.87     $ 153.12
Total salt                  $ 72.81    $ 73.56    $ 73.08    $ 70.71  
                                                                             

Winter Weather Effect

Weather in the fourth quarter of 2012 was very mild in Compass Minerals’ North
American service area until the final two weeks of the quarter, and the
company estimates this milder-than-average weather reduced the company’s
fourth-quarter salt sales by $60million to $70million and its salt operating
earnings by $15 million to $20 million. Variations from average winter weather
reduced full-year salt sales by an estimated $145 million to $155 million and
salt operating earnings by $45 million to $50 million.


Estimated Effect of Weather on Salt Segment Performance
(in millions)
                                    Three months ended
                                                        Calendar year,*
                                    December 31,
Favorable (unfavorable) to          2012      2011       2012       2011
average weather:
                                                                      
Sales                               ($60) to   ($55) to   ($145) to   ($55) to
                                    ($70)      ($65)      ($155)      ($65)
                                                                      
Operating earnings                 ($15) to  ($15) to  ($45) to   ($15) to
                                    ($20)      ($20)      ($50)       ($20)

* The three months ended March 31, plus the three months ended December 31.

The full-year winter weather effect reflects the impact of exceptionally mild
winter weather throughout the company’s primary North American service area.
Based on data from eleven representative cities, the company’s core North
American service regions posted the third fewest snowfall events in recent
history. Only the calendar years of 1998 and 2006 recorded fewer snowevents.

SPECIALTY FERTILIZER SEGMENT

Specialty fertilizer sales were $56.6 million, a 6 percent increase from the
$53.6 million reported in the fourth quarter of 2011. This year-over-year
growth was driven by a 6 percent improvement in sales volume partially offset
by a 1 percent decline in average selling price.

Because of the poor 2011 solar-evaporation season at the Great Salt Lake, the
company supplemented its solar-pond-based feedstock with purchased
potassium-based mineral feedstock throughout 2012. These sourced minerals
continued to elevate per-unit production costs in the fourth quarter and
pressured operating earnings.


Specialty Fertilizer Segment Performance

(in millions except for sales volumes and prices per short ton)
                                   Three months ended    Twelve months ended
                                                      
                                   December 31,          December 31,
                                   2012      2011       2012       2011
Sales                              $ 56.6     $ 53.6     $ 226.2     $ 209.6
Sales less shipping and handling   $ 50.0     $ 47.7     $ 200.0     $ 184.3
(product sales)
Operating earnings                 $ 10.7     $ 19.6     $ 58.4      $ 77.0
Operating margin                     19   %     37   %     26    %     37    %
Sales volume (in thousands of        90         85         367         344
tons)
Average sales price (per ton)     $ 626    $ 631    $ 616     $ 610   
                                                                             

OTHER FINANCIAL HIGHLIGHTS

Selling, general and administrative expense includes transition costs of $3.3
million associated with the retirement of the company’s CEO. Interest expense
in the quarter declined 12 percent to $4.5 million as a result of refinancing
of the company’s long-term debt at a lower interest rate in the second quarter
of 2012. Other income declined to $0.7 million from $1.5million in the
prior-year quarter primarily because of year-over-year differences in foreign
exchange gains.

Cash flow from operations was $151.7 million for 2012 compared to
$252.3million in 2011 due to lower earnings and higher deicing salt
inventories. The company recorded capital expenditures of $32.0 million in the
quarter and $130.9 million for the full year.

OUTLOOK

For the first few weeks of 2013, snow events in the company’s core North
American service areas have been below average. If winter weather generates
average highway deicing demand for the remainder of the first quarter of 2013,
the company expects highway deicing sales volume to be approximately 3.3
million tons. Consumer and industrial sales volumes and average selling prices
are expected to be similar to the first quarter of 2012. Per-unit salt costs
are expected to remain at elevated levels due to operating inefficiencies
resulting in large part from the mild winter season.

The company expects its specialty fertilizer sales volume to be approximately
175,000 tons in the first half of 2013, with 80,000 to 90,000 of those tons
sold in the first quarter at an average selling price of approximately $600
per ton. Specialty fertilizer per-unit costs are projected to decline
sequentially by approximately $75 per ton in the first quarter of 2013, then
to approach $325 per ton for the remainder of the year.

“While we face near-term challenges, primarily weather-related, I believe the
way forward is to sharpen our strategies, not change them,” Mr. Malecha said.
“I look forward to working with our employees and the board of directors to
make Compass Minerals an even stronger company.”

Conference Call

Compass Minerals will discuss its results on a conference call this morning,
Wednesday, February 6, at 9:00 a.m. ET. To access the conference call,
interested parties should visit the company’s website at
www.CompassMinerals.com or dial (877) 614-0009. Callers must provide the
conference ID number 2032647. Outside of the U.S. and Canada, callers may dial
(913)643-4075. Replays of the call will be available on the company’s website
for two weeks. The replay can also be accessed by phone for seven days at
(888) 203-1112, conference ID 2032647. Outside of the U.S. and Canada, callers
may dial (719) 457-0820.

An updated summary of the company’s performance is included in a presentation
available on the company’s website at www.compassminerals.com/presentation.

About Compass Minerals

Based in the Kansas City metropolitan area, Compass Minerals is a leading
producer of minerals, including salt, sulfate of potash specialty fertilizer
and magnesium chloride. The company provides highway deicing salt to customers
in North America and the United Kingdom and specialty fertilizer to growers
worldwide. Compass Minerals also produces consumer deicing and water
conditioning products, ingredients used in consumer and commercial foods, and
other mineral-based products for consumer, agricultural and industrial
applications. Compass Minerals also provides records management services to
businesses throughout the U.K.

Non-GAAP Measures

Management uses a variety of measures to evaluate the company’s performance.
While the consolidated financial statements provide an understanding of the
company’s overall results of operations, financial condition and cash flows,
management analyzes components of the consolidated financial statements to
identify certain trends and evaluate specific performance areas. In addition
to using U.S. generally accepted accounting principles (“GAAP”) financial
measures, management uses EBITDA and EBITDA adjusted for items which
management believes are not indicative of the company’s ongoing operating
performance (“adjusted EBITDA”), both non-GAAP financial measures, to evaluate
the operating performance of the company’s core business operations because
its resource allocation, financing methods and cost of capital, and income tax
positions, which are managed at a corporate level, apart from the activities
of the operating segments, and the operating facilities are located in
different taxing jurisdictions, which can cause considerable variation in net
earnings. The company also uses EBITDA and adjusted EBITDA to assess its
operating performance and return on capital, and to evaluate potential
acquisitions or other capital projects. EBITDA and adjusted EBITDA are not
calculated under GAAP and should not be considered in isolation or as a
substitute for net earnings, cash flows or other financial data prepared in
accordance with GAAP or as a measure of overall profitability or liquidity.
EBITDA and adjusted EBITDA exclude interest expense, income taxes and
depreciation and amortization, each of which is an essential element of the
company’s cost structure and cannot be eliminated. Consequently, any measure
that excludes these elements has material limitations.While EBITDA and
adjusted EBITDA are frequently used as measures of operating performance,
these terms are not necessarily comparable to similarly titled measures of
other companies due to the potential inconsistencies in the method of
calculation. The calculations of EBITDA and adjusted EBITDA as used by
management are set forth in the following table.

Excluding special items from net earnings is meaningful to investors because
it provides insight with respect to the ongoing operating results of the
company. Special items reflect CEO transition costs, charges associated with
the refinancing of the company’s term loans, the release of tax reserves and
the estimated effects of the tornado that struck the company’s salt mine and
evaporation plant in Goderich, Ontario, in August 2011. Those effects include
lost sales volumes, higher net per-unit production costs and higher net costs
to serve customers, including purchased products and logistical
inefficiencies, in 2011 and 2012. Management’s calculations of these measures
are set forth in the following tables.

This press release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on the company's current expectations and involve risks and
uncertainties that could cause the company's actual results to differ
materially. The differences could be caused by a number of factors including
those factors identified in the "Risk Factors" sections of our Annual and
Quarterly Reports on Forms 10-K and 10-Q. The company undertakes no obligation
to update any forward-looking statements made in this press release to reflect
future events or developments.


Reconciliation for EBITDA and Adjusted EBITDA (unaudited)
(in millions)
                         Three months ended            Twelve months ended
                                                   
                         December 31,                  December 31,
                         2012          2011           2012         2011
Net earnings             $  30.1        $  43.9        $  88.9       $ 149.0
Income tax expense          8.3            12.5           22.4         48.3
Interest expense            4.5            5.1            18.2         21.0
Depreciation,
depletion and              17.3         15.9         64.5       64.7  
amortization
EBITDA                   $  60.2        $  77.4        $  194.0      $ 283.0
Adjustments to
EBITDA:
Other                      (0.7  )       (1.5  )       3.7        (3.0  )
(income)/expense^(1)
Adjusted EBITDA          $  59.5       $  75.9       $  197.7     $ 280.0 

^(1) Primarily includes interest income and foreign exchange gains and losses.
The twelve months ended December 31, 2012 include a charge of $2.8 million
related to the refinancing of term loans.


Reconciliation for Net Earnings, Excluding Special Items (unaudited)

(in millions)
                         Three months ended            Twelve months ended

                         December 31,                  December 31,
                         2012           2011           2012          2011
Net earnings             $  30.1        $  43.9        $  88.9       $ 149.0
Estimated losses
incurred from               2.2            11.4           14.8         11.4
tornado, net of taxes
and recoveries^(1)
Costs to refinance
debt, net of                −              −              1.7          −
taxes^(2)
Tax benefit from            −              −              (3.0   )     −
income tax audit^(3)
CEO transition             2.0          −            2.0        −     
costs^(4)
Net earnings,
excluding special        $  34.3       $  55.3       $  104.4     $ 160.4 
items


       In August 2011, the company’s rock salt mine and evaporated-salt plant
       in Goderich, ON, sustained damage from a tornado. The amount reported
       is management’s estimate of the impact on the period’s net earnings
       from losses caused by the tornado that have not yet been recovered
       through insurance. Estimated pre-tax losses of $3.1 million and $21.4
       million ($2.2 million and $14.8 million after applicable income taxes)
       for the three and twelve months ended December 31, 2012, respectively,
       and $16.4 million ($11.4 million after applicable taxes) in the three
       and twelve months ended December 31, 2011, primarily includes lost
       sales volumes, higher per-unit production costs and higher costs to
       serve customers – including purchased products and logistical
^(1)  inefficiencies – realized in the period. These losses may be recovered
       in future periods through the company’s business interruption
       insurance, but actual recoveries could be different than the estimate
       noted above. Under U.S. generally accepted accounting principles (US
       GAAP), expected business interruption insurance recoveries that relate
       to lost sales and other types of losses not covered by property and
       casualty insurance are not recognized until the insurance claim has
       been settled, at which time they would be recognized as reductions in
       costs. This estimate does not include property and casualty losses –
       consisting of direct cleanup costs and impairments of property, plant
       and equipment – that were offset by insurance recoveries recognized in
       the period pursuant to US GAAP.
       In May 2012, we amended and restated our senior secured credit facility
^(2)   and refinanced our term loans into a single term loan for pre-tax costs
       of $2.8 million ($1.7 million after applicable income taxes).
^(3)   In the second quarter of 2012, the company settled a tax audit which
       resulted in a $3.0 million income tax benefit.
       In the fourth quarter of 2012, the company recorded costs associated
^(4)   with the retirement of its CEO of $3.3 million ($2.0 million after
       applicable income taxes).


Reconciliation for Pro Forma Salt Segment Operating Earnings (unaudited)

(in millions)
                                      Three months ended   Twelve months ended
                                                        
                                      December 31,         December 31,
                                      2012      2011      2012       2011
Salt segment operating earnings       $ 47.9     $ 53.4    $ 126.0     $ 184.7
Estimated losses incurred from        3.1        16.4      21.4        16.4
tornado ^(1)
Pro forma salt segment earnings       $ 51.0     $ 69.8    $ 147.4     $ 201.1


       In August 2011, the company’s rock salt mine and evaporated-salt plant
       in Goderich, ON, sustained damage from a tornado. The amount reported
       is management’s estimate of the impact on the period’s net earnings
       from losses caused by the tornado that have not yet been recovered
       through insurance. Estimated pre-tax losses of $3.1 million and $21.4
       million for the three and twelve months ended December 31, 2012,
       respectively, and $16.4 million for the three and twelve months ended
       December 31, 2011, primarily includes lost sales volumes, higher
       per-unit production costs and higher costs to serve customers –
       including purchased products and logistical inefficiencies – realized
^(1)  in the period. These losses may be recovered in future periods through
       the company’s business interruption insurance, but actual recoveries
       could be different than the estimate noted above. Under U.S. generally
       accepted accounting principles (US GAAP), expected business
       interruption insurance recoveries that relate to lost sales and other
       types of losses not covered by property and casualty insurance are not
       recognized until the insurance claim has been settled, at which time
       they would be recognized as reductions in costs. This estimate does not
       include property and casualty losses – consisting of direct cleanup
       costs and impairments of property, plant and equipment – that were
       offset by insurance recoveries recognized in the period pursuant to US
       GAAP.

                            
COMPASS MINERALS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in millions, except share data)
                                                               
                              Three Months Ended        Twelve Months Ended
                              December 31,              December 31,
                              2012         2011         2012       2011
                                                                   
Sales                         $ 267.1      $ 306.1      $ 941.9    $ 1,105.7
Shipping and handling cost      60.8         78.9         238.1      293.8
Product cost                   136.7      140.3      476.7     502.1   
Gross profit                    69.6         86.9         227.1      309.8
                                                                   
Selling, general and           27.4       26.9       93.9      94.5    
administrative expenses
Operating earnings              42.2         60.0         133.2      215.3
                                                                   
Other (income) expense:
Interest expense                4.5          5.1          18.2       21.0
Other, net                     (0.7   )    (1.5   )    3.7       (3.0    )
Earnings before income          38.4         56.4         111.3      197.3
taxes
Income tax expense             8.3        12.5       22.4      48.3    
Net earnings                  $ 30.1      $ 43.9      $ 88.9     $ 149.0   
                                                                   
Basic net earnings per        $ 0.90       $ 1.31       $ 2.65     $ 4.46
common share
Diluted net earnings per      $ 0.90       $ 1.31       $ 2.65     $ 4.45
common share
Cash dividends per share      $ 0.495      $ 0.45       $ 1.98     $ 1.80
                                                                   
Weighted-average common
shares outstanding (in
thousands): ^ (1)
Basic                           33,195       32,991       33,109     32,906
Diluted                         33,225       33,013       33,135     32,934
                                                                   

       The company calculates earnings per share using the two-class method to
       account for its stock awards that receive non-forfeitable dividends. As
       a result, the above basic and diluted weighted shares outstanding do
^(1)  not include 352,000 and 402,000 participating securities in the
       three-month and twelve-month periods ending December 31, 2012,
       respectively, and 454,000 and 522,000 participating securities in the
       three-month and twelve-month periods ending December 31, 2011,
       respectively.

                                                 
COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)
                                                                
                                                   December 31,   December 31,
                                                   2012           2011
                                                                  
ASSETS
                                                   
Cash and cash equivalents                          $   100.1      $   130.3
Receivables, net                                       143.7          152.5
Inventories                                            229.7          207.2
Other current assets                                   33.4           25.8
Property, plant and equipment, net                     645.2          573.4
Intangible and other noncurrent assets                148.5         116.3
                                                                      
Total assets                                       $   1,300.6    $   1,205.5
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                   
Current portion of long-term debt                  $   3.9        $   156.0
Other current liabilities                              195.4          170.8
Long-term debt, net of current portion                 478.4          326.7
Deferred income taxes and other noncurrent             119.4          105.4
liabilities
Total stockholders' equity                            503.5         446.6
                                                                      
Total liabilities and stockholders' equity         $   1,300.6    $   1,205.5
                                                                      

COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in millions)
                                                                 
                                                       Twelve Months Ended
                                                       December 31,
                                                       2012         2011
Net cash provided by operating activities              $ 151.7     $ 252.3  
                                                                    
Cash flows from investing activities:
Capital expenditures                                     (130.9 )     (107.4 )
Insurance advances for investment purposes, Goderich     8.7          12.6
tornado
Acquisition of a business                                -            (58.1  )
Other, net                                              (1.4   )    0.5    
                                                                    
Net cash used in investing activities                   (123.6 )    (152.4 )
                                                                    
Cash flows from financing activities:
Proceeds from the issuance of long-term debt             387.0        –
Principal payments on long-term debt                     (387.7 )     (4.2   )
Fees and premiums paid to redeem and refinance debt      (1.8   )     –
Deferred financing costs                                 (2.2   )     –
Dividends paid                                           (66.3  )     (60.1  )
Proceeds received from stock option exercises            7.4          5.1
Excess tax benefits from equity compensation awards     1.7        3.5    
                                                                    
Net cash used in financing activities                   (61.9  )    (55.7  )
                                                                             
Effect of exchange rate changes on cash and cash        3.6        (5.0   )
equivalents
                                                                             
Net change in cash and cash equivalents                  (30.2  )     39.2
Cash and cash equivalents, beginning of the year        130.3      91.1   
                                                                    
Cash and cash equivalents, end of period               $ 100.1     $ 130.3  
                                                                             

COMPASS MINERALS INTERNATIONAL, INC.
SEGMENT INFORMATION (unaudited)
(in millions)
                                                                
                                       Specialty    Corporate
Three Months Ended          Salt     Fertilizer  and Other^(a,   Total
December 31, 2012                                   b)
Sales to external            $ 206.7   $ 56.6       $ 3.8            $ 267.1
customers
Intersegment sales           0.2       2.6          (2.8)            -
Shipping and handling cost   54.2      6.6          -                60.8
Operating earnings (loss)    47.9      10.7         (16.4)           42.2
Depreciation, depletion      10.2      5.8          1.3              17.3
and amortization
Total assets                 809.3     412.3        79.0             1,300.6
                                                                     
                                       Specialty    Corporate
Three Months Ended          Salt     Fertilizer  and Other^(a)   Total
December 31, 2011
Sales to external            $ 250.1   $ 53.6       $ 2.4            $ 306.1
customers
Intersegment sales           0.1       2.6          (2.7)            –
Shipping and handling cost   73.0      5.9          –                78.9
Operating earnings (loss)    53.4      19.6         (13.0)           60.0
Depreciation, depletion      9.8       5.2          0.9              15.9
and amortization
Total assets                 758.8     378.2        68.5             1,205.5
                                                                     
                                                                     
                                       Specialty    Corporate
Twelve Months Ended         Salt     Fertilizer  and Other^(a,   Total
December 31, 2012                                   b)
Sales to external            $ 703.4   $ 226.2      $ 12.3           $ 941.9
customers
Intersegment sales           0.8       6.8          (7.6)            -
Shipping and handling cost   211.9     26.2         -                238.1
Operating earnings (loss)    126.0     58.4         (51.2)           133.2
Depreciation, depletion      38.9      21.4         4.2              64.5
and amortization
                                                                     
                                       Specialty    Corporate
Twelve Months Ended         Salt     Fertilizer  and Other^(a)   Total
December 31, 2011
Sales to external            $ 885.3   $ 209.6      $ 10.8           $ 1,105.7
customers
Intersegment sales           0.8       6.4          (7.2)            –
Shipping and handling cost   268.5     25.3         –                293.8
Operating earnings (loss)    184.7     77.0         (46.4)           215.3
Depreciation, depletion      40.2      20.2         4.3              64.7
and amortization

       “Corporate and Other” includes corporate entities, the records
       management business, other incidental business operations and
^(a)  eliminations. Corporate assets include deferred tax assets, deferred
       financing fees, investments related to the non-qualified retirement
       plan and other assets not allocated to the operating segments.
^(b)   In the fourth quarter of 2012, the company recorded costs associated
       with the retirement of its CEO of $3.3 million.
       

Contact:

Compass Minerals
Rodney L. Underdown, 913-344-9395
Chief Financial Officer
or
Peggy Landon, 913-344-9315
Director of Investor Relations and Corporate Communications
 
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