Compass Minerals International (CMP) 2 May 182018 Q1 Earnings call transcript

Good day and welcome to the Compass Minerals First Quarter Earnings Conference. Today's conference is being recorded. At this time, I would like to turn the conference over to Theresa Womble. Please go ahead Ma’am.

Thank you, Anny. on all to morning the call. Good CEO, will review our the of Fran and Malecha; Standen, Jamie remainder year. CFO, our the our for and outlook Today first results quarter

that them, risks of I statements on of made let to undertakes reflect involve future discussion Before XXXX, are to uncertainties Company developments. contain within Securities based XX-K could the today statements today's to our X, Compass differ meaning materially. forward-looking be caused call forms our actual and statements The cause results of Litigation the those no and over The Reform may me obligation you Act date, that by factors identify turn May recent remind or XX-Q. and differences a today's events of we to Private as the most number update expectations Minerals and forward-looking to XXXX. including The any

are which at average also remarks operating may our and feel are these business provide our understanding conditions. Relations presentation Lastly provide measures of financial We and section earnings earnings of reconciliations both contain disclosures a in our Investor website release of of which full we important on in our non-GAAP our to Compassminerals.com.

turn will call I the Fran. Now, over to

well. growth business Theresa, of North salt specialty XXXX our support activity in quarter first weather in sales winter better deicing as each and Thank Stronger Increased drove good of nutrition in year-over-year Revenue for our from our America business plant nutrients you, in resulting increase over markets. across consolidated morning. demand both Brazil in special growth and our XX% business segments sales revenue.

segment operations quarter. prior earnings, strong nutrition margins salt our results. flow plant net from producer our resulted to Despite growth a compared weakness in operating we in this segment However, in operating year did increased our and in North particularly decline cash our XX% operating the in costs, earnings and and America generate

underlying to strategic we markets, flow, to expect able of improve As we the fundamentals initiatives, undertaken. cash be more many deliver have throughout our given

salt and a specifically mild winter are fundamentals market to our are to America. in see improving. more deicing at of Looking salt North segment, typical portion believe business After pleased two return winters, the we we highly

Our also sales in the where from for first orders UK expected in strong to from was the the our be the throughout benefited a robust strong quarter are contribution demand customers. replenishment summer

snow spring we While our the North events discuss many the in snow don't typically in American of April activity, continue markets.

in continuous new that track. this maximums bid volumes. due year dynamic have into the events of last that’s the but of some were price year due In This expected fact, one Goderich average seeking ceiling XX our and a volume our sales these times production a in with four upward Overall, quarter fall the more mining, fact supportive in increase cities continuous been indicate April pleased the winter than up pressure. contract bid is customers season we constrained throughout offset data in is of the the our the bit take ramping we been quarter Overall in to April, that North to There by first caveat haulage balance of mine are growth to we at and current we their expectations a stronger developments think and many America. might of that are system.

salt feel of the good we for equation side business. about the very So demand the

the the capabilities, are we Friday. production strike Goderich terms on at facing of our challenge was which our mine, In of announced

the to we and that our our the operational union offer their representing been made recognizes have environment. to mine's since early in workers I we believe stated have also excellent in As current that have importance with March we an organization, announcement, while negotiations

Specifically, our haulage. with continuous investment and continuous the of and transformation mine mining

our clearly union been the to While we with contingency very pleased management I have decided employees strike, and plans. are supervisors disappointed, are executing our

As being Jamie of few financial forward is a maintain salt had the discuss was underground, situation the over hoisted. our for miners of our earnings the of outlook salt will expect running unchanged. team volumes Saturday, moving sales original also in and the to details continuous full-year

need collective be our with eventually also Goderich an We getting will important where bargaining reached expect the component employees with our we that we to employees production. of agreement

we progress recently us have will on important help encountered. equipment have that the made new optical quality the In we addition, address issues sorting salt

see of fertilizers to sales we markets, results. American has were continue some areas, North agricultural even our Turning quarter volumes though plant the weather to year in in steady improvement above in application nutrition, prior delayed our

the for by improved the compared were to quarter for and sales competition costs in increased. In cost the in and year, America, was sales to that depreciation partially pressured carryover prior distributors to earnings increased us, Our due selling higher farmers inventory. direct channel sales segment production to strong cost although has some increase South

We how continue are will to higher agricultural products, several to the There increased which values deliver market unknowns to develop tariffs continue proprietary trade. questions focus XXXX on in value given and throughout growers. our around terms of

America. benefit support their value our with products teams and American North be in have constraints South continues to serve pleased geographic to to these our market. we meaningful and demonstrate in strong the tariff end and we is developed proven for serve We in America, likely during investment America period producers us remain that from This see the and will South U.S. why we sales to any on America yet Regardless, North products have the marketplace. are ergonomics Brazil on as any Brazilian product well between feel commercial this in North balance our that the impact markets

Brazil very and developed in leverage to specialty results North in specialty place they in extremely our ahead our the America confident quarter, our quarter increasingly we plant have advanced fact products expectations. eventually earnings ability of is this nutrition were a grow business to which In have team year and in typically beyond. low in I’m the the

and our to the we that to from offset investments flow While operations. demonstrated benefits some ability has cost, short-term cash quarter actions challenge Minerals generate this Compass solid have of reduce the have

increasingly in growth plant confident our salt ability in are our We on businesses. objectives and deliver our nutrition to

Given the developments positive we are those across seeing businesses.

value XXXX executing to and investments. strategic flow As to have and cash debt creating allocation execute flow sheet cash on to market to shareholders to deliver we disciplined as investments conditions We on and our continue we balance continue increased get delivering as beyond. we improve value our and down expect from increases. approach intend we value focuses approach free the free as returning directly paying into capital This improving made,

our Before Jamie financial in turning of to XXXX review outlook. details results will callers, questions of our rest from our

Fran. Thanks

the reduce end generation times of jump good ratio allows a measured I to the was and the as in than increase our million under discussions, as quarter was working of We cash leverage EBITDA. during to our of the reminder X.X trade market flow quarter. operations $XXX cash million, Before capital results. the million conditions. to from I from lenders by pay ratio us of We our debt. this This capability free cash our more Overall, more down $XXX prior-year used $XXX quarter segment improvements normal would operations XX% generated flow leverage up into first to like discuss of which our from approximately

Now stronger to main segment, discuss let's our turn and Slide the salt which flow driver the X was generation. behind cash

offset boosted on and to to XX% Fran the our that favor declined increase industrial volumes. Average prior of season year-over-year sales by primarily this deicing which in selling As our due Highway price. salt was total a XX% decline consumer in increased In a compared certainly partially sales weather lower two mix X% Highway shifting a the prices segment X% Highway winter sales, volumes, noted, seasons more deicing deicing sales. selling for average have segment active revenue and in

Looking as throughout factors. due unchanged earnings consumer XXXX. prices quarter at prior the Highway categories, compared two industrial the XX% year two primary year-over-year, quarter a Operating result XXXX for from up salt and for pricing X% pricing first while to the price of essentially were our selling to increases introduced was deicing declined primary

our increased new we will that are on higher stemming inflationary First, from rates cost experiencing our costs bids front pressures on contracts these America. Highway fuel fourth we costs. for and in The we as as is quarter this our call discussed consider good freight logistics we North increases on news complete deicing

deliver locations. to As many these the customers include bid salt cost prices know, to of the you

during salt related Goderich These second factor logistics We primarily last of call. increase of production costs associated a our additional lower as as to earnings mine, recognized which earnings was mine serve to the at The the related mine in incident primary depressed the fall year. million well quarter at the cost this levels fourth outlined our include Goderich Blanche with of previously Great as Cote from short-term costs the Lakes. unit we using customers this ceiling result XX costs to quarter about which cost

remaining the year. shipping incremental only distribution were logistics Our of throughout the approximately is remainder should impact above estimate year. of these logical million the costs prior three and the underlying costs about excluded short-term which of X% incurred be they We there

When to business winter winter We $XX on have the sales nutrition plant winter the a $X winter would from earnings $X average weather We for fourth estimate and disclosure impact variations on had the I weather average positive the from earnings. North we our a segment. comment salt weather variations revenue season. inventory quarter before like impact last quarter's XXXX. operating to to provided this impact cost carryover our from million estimated with turning depleted on higher one negligible of between also $XX combined million negative fully salt make and million America the and around impact, salt on million that

by the and prior-year were SOP location. with Operating selling uptick we products. primarily an increased where plant X only when both caused discuss this generated versus our selling in we last Slide SOP KCL North our declined growth pond-based included the from tons increased we to prices produced revenue modestly some depreciation prices quarter in turning sold mix. Ogden quarter, sales from declined first results to quarter X% primarily to micronutrient due We volumes of Now results. production SOP year-over-year America due Average year as lower by driven and earnings sales nutrition costs for micronutrient that

the XXXX first agriculture that we was of fourth Our our increased both of pricing and being our X% SOP America currency about quarter reduced was orders solution mentioned. more increased XXXX. pickup nutrition In per plant on shipped products increased average warehouse logistics were due expectations ahead stable. higher than earnings lower price from sales while chemical of revenue selling customers, In ton own selling this local were internal of year customer driven the in more That channel the to and of quarter product EBITDA segment, versus by as however, directly distribution however, XX%. said, South fact costs $XXX cost. Fran results the revenue prior part into $XX had to Operating which prior-year and our volumes our was

addition, we been water in would the in ahead had operating business XXXX the fact first production have one from temporary solutions In results. that EBITDA chemical quarter that the I and like to a competitors treatment would benefited mention also market outage. of our earnings of

Slide by one-time about you our primarily on This second segments we that a the adjustment. we enjoyed focusing X.X purchase last prior-year results outlook On price If year from boosted benefit discuss the our million. quarter. for business exclude our XX, benefit

Our or and likely which higher will Highway keep in of to events deicing push volumes at expected above benefit snow continuation the is salt prior results. year business April, revenue from sales

expected operating the first-quarter high-cost results carryover to margin from Our of is improve to due from impacts inventory. absence

at volume Goderich. the remains guidance despite full-year unchanged strike ongoing Our

plan representatives We weeks. prolonged, the focused is on the to contingency If This producing have to implemented employees strike we next to use salt management needed customers. a serve safely the several very short-term our plan includes a to thorough for bring to produce continued being maintain levels. forward that with employees to we union optimize That to allows new in supports in a negotiations contract order contract said, to operations. reach plan and our workers production mining our look us

we uncertain, plan is cost strike full-year expectations. our of our unlikely earnings reduce to contingency the of length the the that estimate is While

season XXXX demand. our ongoing Plant of ramp-up not North volume expected we weather reason match for first-quarter created likely decline are expected continuous from our factors the to levels. although to primary quarter we into be sales are year pressured America North the of by results. to so impacting be up be in modest quarter. shortened America. our sales operating and application this to outlook system, similar The increases to This currently do fertilizers, this income situation potential expecting flexing outlined the first plus Many for operating quarter continue production deicing the to remains nutrition anticipate I in these a is haulage mining are our prior the the segment revenue Given margin first is somewhat gradual This similar unchanged. to are have results, expected has a in second challenging in

to better I be like unchanged. to we beginning expected this prices, that a and is With to soybean fertilizer outlook fairly expect of Lastly, Plant strong in the mention America similar year. would what demand remain nutrition year. full-year strengthening volumes South at our Brazil dollar this we segment U.S. in the

for but our we agriculture better this so year experiencing channel. distribution as seasonally are sales The sales our second weaker we in is in presentation, noted far quarter

also Slide million capital here are are that to the our our interest of million. we have XXX full-year less have view corporate the we of of the expense impacting prior million interest rate XXX oppose outlined are Noted updated our cost than expenditures prior anticipated debt. XXX increased higher several XX. range floating We which as items, our rates for Also, which reducing to is reflects on of to

already we to delivering diligently and every we are We investments of monitoring optimizing deployed. make on on capital our the dollar capital spending certain have returns focusing are

to cash largely very $XX payments million. be million by Given $XX XXXX our to later this approximately tax flow price XX million we In about of dividend flow the approximately free settlement be normalized we factors, are will expect free settlement XXXX. expect cash in approximately refund conclusion, be this the commercialization session. before Q&A normalized This supply sheet. offset the the will the excludes optimistic of that, enhanced finally, these transferred begin a over year, investments In of we in dynamics tax make which we And efforts. call on appropriate to year nutrition, and strengthening people demand to and to shaping Amy driving which salt. out With balance plant the in business we turn make favorable to are our continue focused I remain and waste

with Stifel. will Vincent Thank Please sir. our And Instructions] you [Operator go take ahead, sir. first from question Anderson

anticipated possibility impact. full-year strike your to the your has able guidance improved of elsewhere guidance range are offset you despite business the So in maintain enough outlook or the was the already to strike at the strike the

Vincent Fran. this is

the for mentioned have in month. negotiating we the roughly last with As our we union the been remarks, a agreement

we using So coming anticipating our weren’t strike Jamie there we in go third-party produce other think plans strike situation of guidance, at we business tons contractors. into our we the but year improvements that we parts expecting I and as the established to as management time, and expect and a mentioned the through are as

we are forecasting. but winter, on production side has I in our think the good tempering terms helpful, by the so improvement this of our been that's So a enthusiasm

clarify sense. could Okay and I if earlier makes And you quickly that it. said missed you

have in tons it not mining would ramp-up if the units or for following the bid captured the You of otherwise the additional season strike. continues

normal this that circumstances greater. ramp-up our production look I in forward is our we been to here, think would expect our are mentioned, we we in prudent I have and because would forecasting situation we as strike been ability are as in

Right.

like strike had don't don't ramp the up depending planned to we bid how beyond given We and conservative goes what and commitment So we being levels. season already produce. circumstances the those can we like on feel are we feel

to are by are of the it if no for this of doesn't kind point for guidance you a or you business strike there accordingly. if high-end of participate. in held works return or timing can Is break year back there that is you the on And any instance, June

July, August. will a just usually through you be will because as the depend stragglers and We may end with has go on few season timing that begun through That bid. up bid mentioned, our and

the based to additional and/or bid to keep mind our actually would at it of we it season meet are in in be season is down what on the So all that sales some winter our then that time. commitments ability gets timing and when and make

So agreement front factors all hopeful of with managing possible. an normal we us as kind employees will with conditions working those our that be in are and and business, the reach of we as union more to back soon

the some Are one Great hired and in ask new commercializing with on the just Ag. still thanks. North trained your there necessary terms I one point. associated on rollout work If year? product have upfront through those products more this do of quick at platform, people this could you progress all costs American

we the I have both place pretty the R&D marketing much in and think side and the team sales side. on on

additional expect any to cost our the or cost wouldn't create and in to I significant deliver So change products produce and marketplace. these

Great. Thank you.

Thank you.

take next Connoli] ahead. And Instructions] Stevens. our [Mark [Operator question (Ph) with go Please we from will

regulatory a Fran of the and us the issues [photochemical] Thank into help is the product process the how processes and (Ph) give to going bringing cost other can you. us that in the sort U.S. understand you sense rollout. and of involved

approved registration initiate I most process those in mean that gone North have business mean that the have to I Yes they been and products through they of America.

now… think I So

Is that finished?

run ongoing product to to the to market Yes, that and I are we get through America, and of registered kind them requirements in think North products we on them an in brought have able so ability mentioned do that our basis. those sell those XX about and in we be

forward? we what will So customer get and continue and to to to logistics the just down production managing that going do that’s demands really our meet

Okay.

versus change that going market significantly Second your photochemical. integrate sales rest the Ag and North as question, mix of much America to current you the California of are how is

don’t sales our We or geography. state region out break or by

heavier are our crops to and almonds in there. like weight are California, We drivers business especially SOP the

would continue specialty our more both we I in diversity strategy the I mentioned, but onset. would geographically as part been grows, get terms also that’s So expect from of North crops really and America, geography of products across as the

Okay. And what Thank really that’s for. looking I you. was

you. Thank

next Jackson. next is Sachs ahead will Markets. Bob to with BMO that [Operator We Capital And Instructions]. will Joel Mr. we have hear our from Koort. Goldman move go question we Please from Jackson

this Bob. Dylan for is Hi on Campbell

you in guys segment, of seems of first growth it strong kind but back assumes the guidance very type notice it you growth quarter? Can during guidance digit second quarter the Going to then mid-single rate like saying revenue second strong at growth salt was the snow me delivered pretty April of quarter, of that the I only quarter-over-quarter season. your XX% despite to bridge your that help in implied or for that midpoint

Sure.

and because heavier change operating so and C&I quarter. the interesting, fourth typically considering So third of third second in profitability the and natural are margins makes versus quarters C&I weighting and is second Highway because the of the in in first are than better the a

going of in impact that is it's the versus C&I of by it's mix fact primarily driven unusual So and and up itself actually Highway.

So which and we would that's that are help kind quarter tons, I selling drive helping profitable, higher that. more is you of bridge more which Highway how is

at magnified from you by thank Got cost freight the the and markets? freight seen higher Goderich the risk in it, currently all mine [tightness] (Ph) were the any

move? had illogical about that the to we you really, Not talking are freight

the just Yes, cost. logistics average

is natural there so of modes inflation occurring all rate transportation. Yes, across

bulk not but of impacted, of the indirectly cost rate. nature, of the the it illogical actual kind to freight purely was related the is it So

you. Thank it. Got

Thank you.

Mr. have is BMO do from And your line Jackson markets. we capital open. Jackson, Mr. again

what interest on concern the just the spec. you that in meetings that minors are is of aren’t Goderich of some selling products continuous that think going So maybe some in

products right there fixed get been not the to dealing it you are now it, might that optical spec has with resolved? able on. any how those orders, are you are So products How are currently it with what and

this Well I think, Fran. is

the driven incurring we spec than the not had over that in geology we product experienced mine couple caused in the mining are of but the but of past is communicating of past. there truck off ever minors, the here have and by just the we more mine, been more have or quarters are area including quality know we have we by at the continuous issues As you that the

that and occurred So to that, we did have shutdown mine, equipment at in March. and annual we which and deal screening as projects into our put we the sorting with initiated finish operations

location and into forward now mainly that would meet So can quality chemical some those and highways going specs confidence customers those we U.S. deal - deliver able those screen issues outer demand we are and depending more that those or and effectively refines customers to cases the with our on to underground to some in our different of products customer be on Canada regions the are depending we different just in spec and our within countries. or

Okay.

is competitors maxing the also quarter been just [XX/XX contract setups higher the customers how of their some this pricing. talking about of government it the So are kind tonnage and (Ph), are optional XX/XX] or

So are or - but high. bid channel average produced low, seasons where are inventories inventories

be to down, on you volumes bid interesting expect can you dynamic, would it’s because a been similar year-over-year elaborate So that? or

I can not us, competitors. for our for speak

that about I see average our think the we inventories above talked that. and I for we think reason have don't

constraints winter. Some simply being production our also but Goderich, of good that at

of think more of area up. our we being the last consistent geography you years in being last the couple levels the geography, bit two outside to a that that to would I West from above So expect about slightly winter I mild that's years serve. certainly and go this average, East and and think the in if stronger also eastern

question. one Just more

few labor a the is true, ramp before You screen In to and full issues, have to the to in something stuff optical talk sorting the able do the only strike we been completed to up after days that optical at you that union sorting sorting [indiscernible] March. the what have wait that Is or hit. the is of went team talked some about see about screening see the the Goderich optical in back.

it’s in basically equipment which of put our operating. and March, during that covered we line in the annual mentioned, month I shutdown As

Thank you.

You welcome. are

with Crespi. Shaw next Chris will hear We form ahead. Please go Monness,

ask clarification the from earlier. I you I guess and an wanted Good in you morning have know the volumes bid everybody. or guess - sort In strike something missed regards answer. I the and upcoming part I of I adjusted just of might to season questions to guess I XXXX if strike wasn’t to if you only have limited bid. going that can how is correctly? strike sure more, are impact that volume persists. levels, the ability I the but Did I answering of you hear mean I bidding sort

I would mean think the upcoming are beginning. the about I just which way we bid season,

just of normal through we of are So includes market that to the in and levels. certainly our we heart and how both see strategy that’s inventory supply the plus so year starting running bids our the production process our and assess

of and I commitments on kind would of be seem, of the see say expectation always we the and and should higher given season either kind distribution we kind happening. process normal and the make across into we to above would that the That you would just have I our what patience given We proceed bidding incurred, mentioned and we process beginning the end low winter bid on expect adjustments was continue I east mine. will average our based are the or region that of through in as just is a that at the call more that that especially north

your you strike. the based on constraint on bidding foresee know You don’t any really real

fact to situation in I given up it, our and think strike we in ramp his this the remarks, producing the are as is that if production our demand there. mentioned ability Jamie through

was prudent would here do we if or to that what being given able don’t be We guidance situation. that on are do our think normally and we demand do the that will there

winter. demand depends bids winter also is might that ultimately through stronger be determine some season the I go that some our our in it to we later Q&A production if that that of as and if will will there ability the on our is what on will demand the end and maybe ability then the more it So as limit and capture mentioned be

in you And to did this is of I some like chance production. with any that sort there there is any guess offset mean of I Louisiana past,

into to always the we our because that’s South, in and we the think year. production our mine last increased if will layer have this line winter year I will compared Louisiana you Most this move of situation I expect that in line stronger was that further markets serve, would the us last see that we North the that in. for are year we we year might given than but North

Great. for Thanks answer. the

Thank you.

Credit from Please go Chris ahead. Suisse we have And Parkinson.

up Hi for at XXXX. Goderich, development in of Chris. to million [indiscernible] savings outlook this of ramped reconsider are for the there you good caused kind morning or you in kind question as I think you still the this of out think of recent if there what incremental everyone. you that's of are in of put for you planning outline versus memory wondering have expecting to savings something we with I'm on This consistent lines kind cost XXXX guidance for quick year? along had I the the whether a again $XX have your earlier terms just that think you guys I expected previously if achieve is serves

within continue so to do prepared up guidance ramp mentioned equipment. as our remarks, the we Yes, the in CMCH

and So to a now. different situation. plan continue dynamic to materialize. as savings If expect back that’s circumstance is It's process, we right contract year, to. than see do a know, the that It current go those a of to ramp-up volumes most in then increase we those management the workers, but preferring those the half equipment bring as second and run expect savings, of to $XX occur we it million in have union through the say to see that which and comes I'm you difficult would we

Right.

I kind sense. have wondering to you Okay guidance just the on some relative lagging having there. back of the cost terms got and about inventory still XQ the that kinds DNA the impact for to you bulk kind know the key there. good the nutrition margins of to through just the think plant be question kind guys when plant business should of margin then just higher cost that what the half. thinking the kind expecting about outlook of your I’m as nutrition for of wondering And in of there, makes you on in you of addition in business those the Are half it business, drivers we be another margins should first what are is higher the of in higher inventory or implies

Yes, sure.

we here. there utilizing and deteriorate an which will overtime incremental that as impact continue well. it capacity requires our the grow business So decline That is start being said, will costs from rather to as that KCL,

So feel getting very ultimately higher basis, EBITDA we business which EBITDA where mid-XXs margin on up year is XX. good significantly an about this and margins last finished into the we than

So feels similar drive and as sales into we to that out forward, can operating the grow this continue volumes and we and EBITDA area year then XXs. margin utilize XXXX the into that leverage mid to our

I Jamie. that. thanks appreciate it. Got

And hear go from Capital from KeyBanc Markets we will [indiscernible]. ahead. Please

how normal much about know pricing season, the will you should you talk remind think how the cost be talked just sort bid Good Can morning. us of Highway you deicing given higher or to year. that maybe pricing a maybe in you about compared this pressures

at dig on the this earlier, here just expectations pricing. As I seasons we bidding pricing about our and aren’t talking we time, mentioned around

until the have bid with pricing the the talking talked we next but consistent view won't to we and our our past on inventories, actually about think season practice. call, be I market which in about winter

that or fair Okay, meaningfully pull of it’s about a… talked be higher, the anyway pricing that the assume is the you higher forward then there to because in marketplace volumes that in is XQ would expectations but

that and X% are mentioned freight remarks made demand core set supply like We inflation that's in was the up we dynamics us. not unique the that up that season. remarks I to in for my have and about

So those are price we we the don't remarks making data on points specifically. given have you, that really

to will pricing, color quarter second this don't We any that a status have just call, but give we add our on on update more earnings time.

channel get and the can seasonal plant then half similar you South you talk that And you just would Fair year are with Okay. typical the enough. that that your saw in of levels increased you normally expect about profitability you this you benefit nutrition one to last slide second that America, profitability as that competition a year. color more at deck little if in weigh around seeing distribution on just you expect out called and all the in

we think higher in first that volume, half tend those last direct to more last that the sales sales in the are farmers. of the of see go more and value of the of products on Brazil, in year that point I to than more half half

we continue are making sales a are sign South because a that I pricing, there, the of growing pricing of I we we in the so currency and important people throughout happen. how that to rest reflects are expect we So growing the there sales think in year are us, reflection because growers. commodity think expect more our is think much areas that in really and the products strong that to that and of Brazil America, I environment of and year positive, the and that's to down the positive a year-over-year a it's our And in

Great. you. That’s helpful. Thank

Thank you.

Stephens. Connoli Mark with from question Follow-up

more just one you Thank Fran.

in do the direct more mentioned sort growing up are or expect you the same? move Brazil, sales that less to more of You sides two or proportion

growth The are do well. in through - will direct higher distribution, higher goes direct and really to channels we growers I is think value the higher products it's percentage certainly the in both that But growth overtime. pick-up and those as more but which utilize side a

Superb. Thank you.

Thank you.

like I this time, session. additional the That our remarks. conference concludes turn At closing for speakers to question-and-answer to back or today's would

and any you. your question. Once Relations department the again, interest follow-up Amy, in you to we Feel free the with contact us all today. appreciate Investor Compass for Thank Thank Minerals. you, joining thank

conference. you concludes today's for your This participation. Thank

disconnect. now You may