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Compass Minerals International (CMP)

Participants
Theresa Womble Director, Investor Relations
Dick Grant Chairman, Interim President and Chief Executive Officer
Jamie Standen Chief Financial Officer
Graeme Welds Credit Suisse
Vincent Anderson Stifel
Joel Jackson BMO Capital Markets
Dylan Campbell Goldman Sachs
Mark Connelly Stephens
Katie Zhang JP Morgan
David Begleiter Deutsche Bank
Call transcript
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Operator

Good day, everyone. And welcome today's Compass Minerals' Four Quarter Earnings Conference. Today's conference is being recorded. At this time for opening remarks, I'd like to turn things over to Theresa Womble. Please go ahead, ma'am.

Theresa Womble

morning. good and you Thank Today, our will Year CFO, Standen Grand Results. CEO, Compass Minerals' Dick review Full our Fourth Jamie Interim Quarter XXXX and

We XXXX. outlook discussion will for also be our

uncertainties them, they most as Before the on and statements the for and today's may XX, or developments. Reform actual the forward-looking XX-K I contain to risks are to Act these could of that company's obligation the any refer XX-Q no February of remind of update results within cause XXXX, meaning Securities today call to based discussion Please reflect materially. the turn forward-looking statements risks. future today's to to Private undertakes you made The date, let involve a and recent over events differ full of that disclosure expectations the me company company's company's Litigation These XXXX. Forms statements

disclosures, remarks important financial Our feel a operating our business include provide understanding conditions. are to also of and our non-GAAP which we full

find reconciliations of in of in or website section release both Investor can earnings compassminerals.com. the these of at presentation, at earnings which our our of our measures Relations are any available You

over call I'll turn Dick. Now, the to

Dick Grant

inputs performance provide have Compass their Good the to detail the since share throughout making various full and earnings Slide year Minerals. morning. strategic progress are our will my with results while of on results quarterly My today outlook. I financial and on presentation, please greater I Beginning more will development. of our am becoming very focus XXXX X improving our Jamie to the on in you opportunity comments first Interim CEO believe we

release, we each businesses of compared XXXX. full in seen a result revenue to reported growth healthy in of our you've sales increased As our X% as year earnings

to highlight levels, improvement consolidated there today. translation, production like to areas that are increases of many from did decline salt due While and I'd earnings largely XXXX cost currency

which XX% Additionally, even $XXX in from a was XXXX. in faced delivered with from cash almost XXXX, the we increase challenges we a operations, million flow

well upgrading investments Plant now spring First, Ogden, revenue our the year our was In EBITDA had enhancing where season. in their the our full last segment a growth we in performance underpinned for starting In very low-cost better XX%. and are This our year over years and SOP XXXX. the our at ended Utah deliver delivered Nutrition total, growth for of business North The processes by the we strongly the inventories as to planting outcomes performed customers we've business began America, XX% of operating few record our home-based SOP facility, outcomes made ponds our production. year planned.

production maximum enhancement for bode we They commitment be at into near the to supplier margin achieved demonstrate XXXX. also these production move I future our site. choice believe well in achievements North Canadian our for also SOP We America. SOP to as our of customers

we growth EBITDA the XX% in a grow in Overall, Brazil business. to XXXX. of and XX% of predicted critical products. that revenue In most this also business delivered enjoyed and the of of our of growing to Brazil attractiveness is our XX% increase direct in outcomes XXXX, due EBITDA local a when business Brazil acquired economics year-over-year favorable including demonstrated Our growth throughout growth portfolio delivering the strong the currency fully segment

year was we at as Moving strike through to system. ramp-up continuous of our a and Goderich mine Salt a business, our mining difficult worked on XXXX our the

winter. could and our compared $X million which year the lack disappointing to average end have Lakes had in to we $X UK, in in earnings of market quarter hiked in addition, Great snow the this estimated fourth business due both in events America million December In to our to North by the the

aimed our At continued consumer tonnage to both weeks of progress January haulage seen lowest safety North rights in mine America significant business of last in snow highway events patterns in impact industrial improvement America surface. and in mining Goderich the continuous the and several we although half demand the have make at key hoisted we the de-icing both salt our our in increasing to our first pickup the both rock from portion business. in system the pattern continued weather tonnage These of and UK, production North mine, The and slight UK. and in a and

have quarter. produced data our volume quarter miners. last snow I converted in of trend with mined the the our in Goderich share results of As you the output fourth that in XXXX we use January can best has January indicated we improving third full continuous since And in producing exceeded continued the being released monthly month, with volume the in

investment We relining will for shaft also are completion our nearing the hoisting which of secure future. our capacity

reviewed remains issues change with improvement. from continuous maintain the and also on site. of process plans top for our was with the existing momentum I cooperation During change of to and included additional mining the and management experts previous in in support an and Goderich our team. I January, planned positive our for felt end by the continuous the encouraged year. This by Goderich a open potential employees at focus this my the an a a in exchange visit mine to Completing management miner input external late union haulage with compared visits of to on leadership

full UK been plants or mining continuous and Our in decade mine than near American more at XXXX. evaporation using have we North rates a salt for operating where operated our

value operational second every this our these the and bid increases maximizing and of of team available strong focused for America in XXXX in season, XXXX. highway the North sales in price highway XXXX business on deicing our the achievements, ton half resulted deicing to addition for In

of permanent Lastly, our progressing committee a directors independent CEO search identifying is in CEO.

detail XXXX improvements to and focus in commercial and hand over value And and of Standen Jamie? the will So more combination to our beyond. cover outlook. I for to leading creation the with production that in looking for XXXX profit inputs our company, the our XXXX CFO, Jamie improvement I forward on see results significant

Jamie Standen

Thanks, Dick.

Before discussing quarterly to like I would results, recap our our consolidated segment results.

fourth growth revenue Nutrition we revenue Nutrition North to to by CEO million XX% $X.X America generated results. $X and in Plant of operating negative South impacting costs the and and America primarily of due FX X% offset quarter, transition impacts Plant lower a of increases FX million. Salt earnings both For mainly our due Consolidated EBITDA were headwind

fourth our addition, quarter In several results tax items. included

the the benefit income release on the items of First, to we valuation finalization tax Tax deferred XXXX Reform impact expense. US tax of of related tax asset our had allowances two and

a $XXX We also the tax earnings. had foreign to repatriation expense of of item approximately related million

up losses expected transfer aren't due settlements ended Reform US finalization some on higher impacts Our price XXXX year full as Tax to on that our tax-deductible. XXXX inter-company of well tax FX than the earnings rate as

the better consumer price deicing shipping improved price a contracts volumes. results from in increase resulted America XXXX-XXXX increase Turning discussed also increased XX% price in to which in business the supplier previously compared results results in to our XX% and achieve prior per These modestly decline our for improvements year This presentation, quarter partially and offset decline salt average season. the These declined by volumes strong million. it improvements costs to to costs a segment to by through on segment were due Fourth quarter significantly were our $XX EBITDA product to of Salt costs. sales costs. important and due a X our industrial slide in partially revenue when prices able we handling lower achieved to update the offset elevated X% highway reliable We've been X% an pricing in being X% and discussed. ton fourth Average on offset were where business selling North to increase on sales and per-unit operating a matters. focus Salt increased price XX% the all-in quarter a

the impacts our lingering impacts from of the As strike face ramp-up continuous the headwinds mining and the mentioned, Dick continue results Goderich haulage. and salt of to on related

impacts in North the season, sales strike totaled impact the approximately quarter, earnings purchasing our million. offshore American $XX committed deicing reducing cost In rates, salt to Highway costs fourth illogical to operating addition related volumes unit operating due and In Goderich include logistics. higher the bid lower

Slide more and of our adjusted to nutrition volumes, along the than offset with increased slide, logistics versus on unit impact increase increase production strong quarterly as XX% was declined North increase the a America, decline slide EBITDA due we driven. was year-over-year was and X% despite The begin X, as and XXXX selling revenue Turning quarter in revenue. product of in increase offset generated in lower handling a of volume plant which which or our million XX% costs a XX% in sales primarily by Salt We well. volumes from full-year costs the In we X. we slight costs by results our average improved in note strike saw Goderich per-unit sales on to $XX.X discussion driven average This SOP plant XX%, XXXX. increased revenue related decline the results. XXXX issues sales on the selling up shipping price, price fourth growth mix nutrition

selling the of when to the the This result, XXXX million. quarter were $XXX prices a for average is SOP result fourth year-over-year the XX% rose EBITDA $XX.X a As quarterly quarter since ton. only segments strongest segment first

Nutrition depreciation at productivity. For new increase final our was due of in plant XX% Adjusted and the EBITDA, to America segment in SOP an fell volume a commissioning impacting operating increase essentially revenue segment. Plant Ogden driven. earnings in XX% the the efficiency by This step-up XX% adjusted increase full-year, North equipment our to and generated all reported the increase again

growers delayed the Moving demonstrate sales to strength up input Recall that to for real stabilize prior to Brazil continues with segment they our That seasonality. Brazilian to up our nutrition year we This year the plant waited ended as saw commodity last quarter. more and typical from decisions pushing XX, in modestly into sales South for year prices unusual volumes Slide an purchase results. volumes amount of fourth fertilizer weaken. America

we addition, slightly farmers a These higher products lower for in applied our saw the have demand margin quarter the than as products micronutrient In full soil our for profile safrinha products. corn soil year crop. planned

rebound a business to growth in in experienced demand volume Our specialty chemicals due products. chlorine for X% Brazil

end local sales volume driving growth America continued local growth and company agriculture grower from for currency XXXX results strong products at solutions most marketing the product year which as and products. a Full EBITDA proposition in mix, growth. specifically for the and Brazil currency. price South revenue XX% in sales reinvested of favorable of well in as less a results, attractive were SG&A decline primarily in as chemical segment decline reflecting X% and profits generated of main improvements this XXXX. from Looking price for Again, increases the resources the did our for combination margin products very future essential of are improvements drivers to value the were economics X%

in continue We see channel. sales to grower growth our strong direct-to-

outlook, rationale guidance to like Before explain EPS XXXX of diving I'd into our guidance. to instead shifting EBITDA our for

continues cash focus taxes, cash on prudent working execution, to through be ultimately minimizing to Our strong free capital operational our shareholder cash capital interest value. flow and maximizing drive spending and

will EPS. expectations guidance Going consolidated outlook on in as well that will segment forward, along we focusing mind, with EBITDA sales XX. I will impact components with the this guidance key at interim page and to volume corporate on level. the around continue the as revenue full-year provide we be start guidance full-year With

increase expect recovery driven of in XXXX plant a in the growth steady nutrition consolidated EBITDA and our primarily our businesses. by sizable in business salt We

year. see we half second improving generate In XXXX gains by In South we least America double-digit margin and along North XX% expected to continue to with $XXX expect growth Nutrition improvement to recapturing EBITDA to from throughout volume and of shed some we Plant salt-segment Goderich, this These we begin $XXX of the between expect EBITDA factors million EBITDA full production commitment to total, levels. result lift the growth. volumes some depressed winter. As we at the America, for million XXXX and are low at efficiency expect steady in

outlook. on Before outlook, half discuss our to to moving tax I'd first XXXX full-year our like discuss

Now XXXX be rate our of assessment Tax that XX%. and we and for expect XX% understand finalized the of we US Reform have impacts, to tax our between all

to finalize and refunds payments pushing tax also are settlement XXXX. We in our

to in Canada from we to refund planning are and We the tax the expect quarter of $XX a mention at receive second that end make uncertainty to payment like QX XXXX. Washington slip million possible current revenue given the $XX XXXX. a would this IRS that to in it of million XXXX, I could in refund is

Slide on our the fact half this and to driver experiencing first to key still our Turning quarter. a have is second consolidated XX. balanced of results lower we we split from first production. more year expect A between overall mine This XXXX impacts the are that Goderich outlook

winter average and thus North assuming lower than prior the our levels business, volumes experienced far salt for in the are weather depressed to Our we've weather UK. expected year commitment deicing American Highway mild our given be

we result, second a half to year's the quarter. As result, last the expect EBITDA with earnings more similar to consolidated but be first waited of to

Given in Plant first we EBITDA confident well dip covenants results Nutrition expect executed quarter the between America, given FX late million of in quarter South credit impact as as on consolidated quarter that agreement be on debt will earnings, the translated $XX for last our within the salt first negative we first the pressure $XX amendment the Despite million. earnings, year. we and our we expected well XXXX remain our

our begin and comment to dividend. our we session, commitment flow the I Before cash would our Q&A outlook free like on to

you manage our years. in capital capital to the continuous our Utah and Goderich. capability in at over recent on expect high of As SOP on achieving our we Slide include increase return consider we facility investments as always $XXX we our the XX, improvement focus and returns would mining What This operations. productive systems operate around expansion levels, we to major completed million on see the we've investments can expenditures

focused returns delivering We we on are investments in place. have already on keenly

a XXXX As note we funded generated level which free of also flow generate slide, similar $XXX last we million payment flow dividend cash this year. We of free on expect XXXX. nearly cash our currently in to

So we maintain market level. and can XXXX believe conditions Plant normalized our Nutrition operations of view current mine. we we the given With increase further be these continuing for Goderich our levels attractive manageable market its and free in we businesses, dividend expectations attractive businesses, for continues to production and improving at flow dynamics at Salt our cash our our as expect

reduction. to As expect our free on we levels continue increase, direct our debt and our focus to shareholders increase cash flow returns

operator Now to like Q&A I'd hand it to the the back begin to session.

Operator

[Operator Suisse. today W from Christopher Instructions] Parkinson hear Credit will with first

GraemeWelds

Hi, good everyone. morning, for This on is Welds Chris. Graham

and that. to evolution the expect of to timeline op have there? the about year. where XXXX that salt I believe at op your on year will get question last we along the we rates operating give obviously you a suggested rates like with operates that what the within your from us Goderich the our results guys Thanks. go. they're rates XQ am on still could of through curious look how target improvement your --what had question previously mid kind if I at segment Just as that margins would able by thoughts achieve impacted here And because you trend see being documentation Goderich lower be that by

DickGrant

This will we move the great plan improvement the year, year incremental throughout in a get put half position monthly us Basically second is which into as this we into of for on a XXXX. have and Dick.

in very We month approach particular rate This process in we about at order after have time. are than term. the delivering sustainable taking certain and to consistent long over that a months being consistent a is measured production more this a

So that's where headed. we're

We track are that. on with

previous remarks, in in in the continuous QX months targets produced hit mining. have those my in in opening than better said, we more I and months on As we things new January and were any

are through that second which the seeing will getting underway year and those the half think production to and beyond. through us So it's is -- sustain encouraging of we rates I progress that

JamieStanden

part I'll answer And of second the question there, yes, just, the Graham.

second plus half margins EBITDA year, see into come levels results. then because the EBITDA there. of yes, into the mid and move as described half we forward the the those value into production to the the were get as be depressed in first through So, of we would in half. we going which on we -- prepared the will see forward then of in And that we beyond EBITDA really XXXX of higher as year as you'll focused what start the the second margin to as we move you'll XX% margins consistent increase expect the production really -XXs we and be And financials investment the get remarks

Operator

go Stifel. next with We'll to Vincent Anderson

VincentAnderson

squeeze to with second a more out Yes, may bit stick good detail be little taking morning. want I today. of we my for Thanks where question. are for Goderich

designed labor So, you around are turn continuous the are and one, March Have contracted necessary? running your how are mine? be? the are continuously of still the or running begun they to can goals at mining they what units And as many this yet year for reducing

DickGrant

the basically of mining Vincent, units all I are mean operating.

of a improving moved schedule operate of how we units. of those We those have have recently our the maintenance units. we one plant And forward that on is things

certain have maintenance machines So maintenance. of better maintenance to six because means because know, is unplanned down days is down of in that hours all planned what deliberately taking the down because we we planned XX order than on get that hours as

coming we as so production through combined got that consistent seeing we rates, the we're these is fleet an And operation. out production units of of what work

December put see we is beginning we together. now being so were days good are in and beginning of back days. November strings is to that And right having hit in now to and What poor good days

and much maintenance with production think is beginning into units. get to So a more through that consistent the rates planned we're show I encouraged all that us

VincentAnderson

strength below bit vegetable the and strength And of it's MOP, then. ceiling a prices SOP here SOP over move nut I to the fruit, Thanks, the despite despite it to approach rapidly. this little stayed in helpful. volume that rather in kind now strategy safe managed level? price you're say a at to market grow taking your maybe right But prices. volumes to you go to Is maximizing than of quite

DickGrant

put I us I source. how cost is to yields low out allowed with to of well quarter. it our our -based pond started And --we've more is our we which think this them is I that production better think much serve get customers

as at season. Now we've is that the rain in was went XXXX there moment much a the pre on too fair for some in price But should in the up of prices halting is opportunities of it of move spring MOP bit through, -- if for our that at product. stocking there amount had well. to little And which preparation I and --there use go us continues the in California of think be comes to end

JamieStanden

Yes and I'll on to that. just add

functionally find and think to in price from MOP tons lower we're conversion and can sometimes have SOP customers. the certainly other crops home the I finding to regarding the getting can balance a total which can and have bit place highest and all to price, the volumes opportunities we're SOP on value value extracting there. upside we a higher limit little on And those

correct your markets. the that necessarily those find in highest as and new value additional some in is we So place customers tons, all aren't point

Operator

Capital BMO hear will Markets from And from Joel Jackson.

JoelJackson

Hi, questions. I morning. good call. couple a for doing the Thanks had

understand your I So to for salt year. volume a guidance about first want the question, more little

color. to volume. a did You of --you guiding It give bit are lowest the salt is

XX to midpoint that a the years. you had let's If salt public call Compass it lower company, ever the get volume as

also not belief of for the the the I as So low you'll for have are that winter, embedding QX into understand because that like. winter for this fully you --like below this you would -- average guess Goderich have running commitments that next into are but I you commitments you after embedding

DickGrant

last basically the actually decision previous also our is the half first you And salt relates this that said you XXXX. correctly in in really half but with at Yes, Unfortunately predictions shortfall this compared of Joel, if summer year, bid the issue in is salt quarter, to volume XXXX volumes as lower both to which affects of first our volumes, second years and coming for Dick. short most term the look

In fact, volumes. those that's main the their driver behind

is said second in which in a the the as about that along. based that rates our see it a gives half And our first rates production us which of And volume volumes commitment we've of rates this shortfall we're the more year, so at as lower first more improving. normal on of we comes is situation about But less Goderich winter. lower we quarter half returning the second the of predicting the when production to much half normal XXXX year course through sales and look

the of half more year production so reasons year rate make much be can normal in in XXXX. shortfall why because we of of So from that's up second this in is a of sort and confident and are we and the last that rate sales the one commitments

JamieStanden

just XXXX, have than And tons that some we XX be I I down number think I third commitments million a actual add less that, the the mentioned that that. an as that quarter XX%. there reasons Joel, But to we on call, back of were expected so don't basis were drove forget in on

scheme year. of So strong that the was a the about right be last U. it XXXX the round to K. comparison tons quarter in talk the could it to what relates Also highway. I is quarter is when grand as particularly numbers first exacerbating that things year-over-year in first million

about tons. So X.X a million that's

looks quarter first that. because of weak particularly the So

levels, quarter as will through spread we season summer the summer, recapture next in we which we be QX, fourth produce this portion be as lost the XXXX. So --this able our then and over lower go XXXX bid good and will QX, commitment a through to of expected if

JoelJackson

you're helpful redo and terms or the Are one to part machine very your was the versus going how of maintenance. are also the machine more currently? you're seam? now working guidance, of machines back the now thing. seam are you on The Goderich. continuous you you adjusting or into the when you coming that the same cutting same That a you of continuous how to then year going mining same --have of And are new that face and down, go have the with be and Like machine attacking back part machine doing had actual end miner the have later time was attacking good, in more a One to taking you guys. go exact helpful. upper you services you're to been question. bringing lower this the I'm year, is -- with That

DickGrant

order extra Joel, we we've a get the operating particular giving you upside just give our been demands. an on just machine better learning up us come speakers] we the to machines. get operators we fundamentally along if as pretty actually want meet to Does management they're a we delivered. to similar we actual stay ensuring moment them operate with that to about were respect we supplier a trying get can what that exactly fleet that looking that And way plus consistently, for, the we And we through over with work. winter period some off how and right we about in way customer get improving larger production the and feel in I that with for our working miners and that think machines. -- to whether way of the turn as to at are the but out and With we really are we've the we of capacity production able experience whether whether working doing of to the finalize current have But going [Multi time thinking been whole up that size get the operate we size a have we're this this time the the these we are see and or machine, larger heavy are gained to

JoelJackson

we decide down overcome of some will a possible the you fleet the road of larger it challenges is well, machines continuous Is where up end new Yes, possibility a to maybe had? here? that you the get to could miners,

DickGrant

progressive a major years a made change including if we should I last machines these rebuild. that think in it. would be mean I very operation ten

consistent before for would as I the them see want time. we would replacement, rather we come wouldn't than us moving those certainly-- it replace machines replacement. larger for if what machine its think will we straight machines so that But then just machine to is a you better to scrap gives one decide a upgraded with up one And output

sort the and pattern mine of that's So thought specialist been teams through. have the that management local working

Operator

from next Robert hear Goldman Sachs. will with Koort We

DylanCampbell

Bob. Goderich. levels? regional Good on on when type pricing represent question morning. in the can its towards then much does fuller from How anticipate again of we last you guess strength my market? first This for of move I is headwinds production of I And any Dylan Goderich You more Campbell now pricing this guess saw a that season?

JamieStanden

So at we out the river which North a the combination we which American Blanche things Cote the system through market and. is as mine our serve look of And Great Lakes of Goderich.

up it on in comment I in terms but is Lakes, the what share their Great have specific of is a don't So it significant.

relates served the expectations last --as said pricing and up to being ramp through bidding through our the summer and last as we based that A lot served we of bidding or our is However, that not and sustainable. fall, passed on quite the opportunities in the went very a contained strike pressure, seasoning being season. prices win either it business at are that -- late on particularly we few high

So production room fall. we --price of and as raids recapture bring to there's us pressure, go pricing process pressure to significant start through business, next have plenty normalize that think we for downward as our that back to up we not

DylanCampbell

I at guys type I you guess but year for there it forecast on into or spending some And going did Is referencing XXXX. there? XXXX more that appears spending, helpful. start CapEx of changed your past it to that's remember it, more something you Got flattish see type Goderich is capital investment slides of that forward or impact in pull you'd CapEx, any looking of in decline

JamieStanden

and we capital we and $XXX bit can sure the equipment our been is which scheduled include million yes, procuring on reliable there. sure really miners also spending had that higher to So We're is as Dick well previously as maintain than include make mentioned, but be machine these thinking, Ogden assets. that to that maintenance impact significant a out focused another a

that So CapEx of MOB. mean it might for $XX bit million our range higher little than is a sort

XXX Absolutely not, XXX. the but new somewhere the is it So and XX number? the in it's probably between

Operator

from will Stephens Connelly. from And Inc hear we Mark

MarkConnelly

you. Thank

ask to on one more. just but more questions Sorry salt

winter commitments much about we got might that inventories be if out your that does do you've this you're normal on, where to the how inventories end? where part With here your have fall going season, imply what and at the of manage lower a able from to

DickGrant

year of weeks to moment, a ships ships pretty around the the much ice polar build a and this demand far. for is that. coming far Lakes number shipping lucky from of week able we've so get bit despite we've been and the got the The so our yet. customers. this vertex bit been out Goderich points replenishing Great And plant be the it a called few in we've able our up looks so a we've going met Basically to Lakes in in of slower like keep stocking our this a normal little at we're Great And couple and of all year to

as a I position that us reasonable far go. So think put as our in stocks

going obviously is But with normal -- Right Goderich all forecasts. our the --we're as of our a I -- it get and we I of don't we're our shipping a And we to on think much going if get we right now now could as couple comments an in out the any that upside demands we're meet out for to the can. ships we've weeks, to last salt for this to can road issue February, there rest for carries which the optimistic But quarter, had winter. about are market it's of mean than a at by winter even And supply. I Canadian the able weather projections normal have we be what think originally of replenished. points we so our got customers. building we're planned distribution right the at of more and the

JamieStanden

Right.

normal built us production last are whether some that had our will guidance. the lost we then So rates that's enable second on end be plant of as the and ending season, recapture we so would to commitment -- will and some have they summer, our into depending those the inventories at half if of we

MarkConnelly

your relative South America, year. that guide good confident confidence give Can us a coming you sense looks to just quite helpful. this quickly And Very numbers on volume of where from? is

JamieStanden

Yes.

prepared saw in I is direct-to-grower that growth in his think a XX% And earnings -- in area remarks, north segment. that of mentioned focus. we of major Dick

EBITDA that continue in I SG&A full Dollars, growth South sales based US in low that digits on in We into that continue guided would rate. America. to marketing and resources -teens reinvest year rates we single translates to growth to mid continue the see we and translation --that in

improvements treatment So as year-over-year we sales expect chemical side demand in we've side, volumes the to South see then on continued seen stronger in adding We're the just the on water America. and growth people. micronutrient

acres. We are covering and driving higher adoption new

Operator

Morgan. with J.P. We will next to Zekauskas move Jeff

KatieZhang

on Zhang my for Katie Hi, This good question. Jeff. is Thanks for morning. taking

in XXXX just touch. And what the XXXX? may? Could flow for bit what previously your XXXX in like outlook but delta in think free a and follow-up target about XXXX your if $XX million, by little I it then million have you cash delivered looks a drove took on down was Goderich, I $XX So your a you outlook? changed I And you talk for generation about

JamieStanden

quarter. difference when XXXX fourth were And We there. to noise the working there advantage of capital I think sure. about able in XXXX, Yes we some that improvements in is particularly the had tax -- really we take some in

got which we've reached settlement are is and fourth going now XXXX second are year. $XX is the we million the to of the uncertain. going The come come $XX million $XX that these a to to payout additional million due, then going in refund transfer remember we're and As in that finalized in got XXXX mentioned, do and quarter of refund to payments documentation pull can we end due kind everything We're pricing or quarter. I payments in of expecting wise some, the

or a in get $XX range, up well flow probably comes over probably if it. but free So the $XXX if it'll that get million. don't we working million cash be we

free drivers that's cash the in flow XXXX. of one So for major

KatieZhang

million then still impact talked XXXX really negative production about million helpful. expectation? $XX That's previously shortfall from And having to a Okay. possibly $XX Is you your Goderich. it the at

JamieStanden

their we in we're to earlier, lower that cost carrying QXthat million when together lower solvents you quarter consider $XX that year, commitments and production about a that carrying that impacting occurred, million of that talked higher commitments got, we've all about the close in so It's cost. --we're into is in Yes, guidance. are inventory of first all up plus very or $XX embedded of in so purchase combination and the lower logical Dick shipping

KatieZhang

about I'm the it's then? if thinking the than something So impact, XXXX $XX million higher probably

JamieStanden

million, $XX at of then first that carries up other other any we quarter. our the don't production than producing and current implication year, see other and rates our ramp --that we're the carries in don't through at that the $XX as any right it's million its cost see rates No, --I in kind I

Operator

Deutsche We'll hear next from David Begleiter Bank. from

DavidBegleiter

I Thank a be term. there in for that Jamie salt year salt? we EBITDA that in achieve you could EBITDA margin that longer for XXXX but mid-XXs reference margin type the XXXX, you. do I won't be mid-XXs know

JamieStanden

Yes.

we that that will XXXX that's in would XX think above --we beyond and certainly expect I mid-XXs. the be up when hitting to creep

DavidBegleiter

is your does when in Maybe very I optimized? this level and Very a state? mining get fully the good optimize, and just to we January think high operation through fully never get steady continuous all we when know when production do that was learnings it's become but you

DickGrant

should is we of second be get talking talking about and --we mean half we This --as about ramp through Dick. more we basically XXXX, the I into should that how up rates. production get probably think I the plant as the stop

be the we my time season. think by in normalized I we position So mind, XXXX in should a should XXXX, to get we

us the and forward. are of of And driving and through XXXX So But and I this got to shutdown. through the We've on at more XXXX we've second the of on how salt half End ourselves see got looking to make into Q&A I our it. the situation talking less this think business up top progress. about that's progress get overall about build we Goderich

Operator

for time, you at to back all like closing I remarks. it would to And this turn

Theresa Womble

questions, This you if joining. website. using the everybody. relations you, and any our And contact on is thank please Thank Have contact for information Theresa up department follow a the you investor have great day.

Operator

you joining Again conclude for today's that will us. Thank all conference.