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Compass Minerals International (CMP)

Participants
Theresa Womble Investor Relations
Kevin Crutchfield Chief Executive Officer
Jamie Standen Chief Financial Officer
Vincent Anderson Stifel Nicholaus
Mark Connolly Stephens Inc
Christopher Parkinson Credit Suisse
Joel Jackson BMO Capital Markets
Jeffrey Zekauskas JP Morgan
Seth Goldstein Morningstar
Call transcript
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Operator

Good day and welcome to the Compass Minerals’ Second Quarter Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the call over to Theresa Womble. Please go ahead.

Theresa Womble

Thank you. the Kevin Minerals' our and second for rest CEO, will Jamie our our the Compass review quarter of morning Crutchfield; CFO and Standen outlook This XXXX. XXXX results

expectation cause over These Before I that discussion on statements Litigation of are the as Company's date could and X, contain may uncertainties materially. and reform differ them, XXXX, most XX-K for meaning Company's the risks me Statements the actual Private of remind based today's a of within to Forward-Looking involve the Company's Please turn full today's August you Forms to let to results disclosure Act call that the Securities of refer the XXXX. risks. these recent

update reflect today to statements The developments. no any future or Company to obligation made events forward-looking undertakes

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

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

the turn will to over I Now, Kevin. call

Kevin Crutchfield

morning, everyone. Good

our my let forward. brief earnings I First, how am on I be call. path at some of and share say will I Compass of participating about and After thoughts glad here a our some have review Minerals results, of to financial me first operational early the

First, quarter review quick a of second our results.

year operating we growth X% adjusted slightly, total XX% generated to growth earnings compared Company quarter. declined revenue prior While of EBITDA of the and

the sales driven sales in the deicing due came the costs within salt our impact of additional on exclude incurred results the in consumer as well salt logistics improvements to Mississippi highway impact earnings an industrial in and flooding costs. those business the by uptick Most EBITDA severe The of from along business. increased we River. Despite business salt as unusual our prices from growth

the increased due prices Nutrition products. in of We our agricultural South and the earnings America volumes Plant also sales to segment, increased

we approximately have production Goderich than XX% business, Looking costs. at produced lower salt XX% unit specifically improving make more Mine, a to the mine our continued to at that year-to-date, has per the more salt progress report year last towards I'm happy at

of our The availability mining a system. in and the to performance which strong result and the visits is outcome to ongoing skill mine, operating rate. my levels multiple employees direct our improvements I'm is continuous of improvements of increased maintaining higher From the in equipment with new the leading equipment, seeing utilization

market important tons and strong produced allowing increase position in North take advantage us greater our bid improving internally The highway in to for America. a are deicing season of

XXXX for is Our highway approximately and bidding deicing XX% winter the season completed. XXXX

we to that average at Given year approximately above increase price the prior price than given year, results X% expect thus bid bid our our last more a an XX% average by This results. increased XX%. is volumes far, result committed bid is strong

year. the operational for of margin These season to over to EBITDA strong growth addition meaningful expected results drive help business second the better performance expansion, this good are in and half

The Our SOP key remains of throughout business micronutrient North Plant in particularly spring and the during quarter, slow markets. in many our sales America. rainy Nutrition somewhat in lost second the resulted weather

last have year, level quite our South In America, volumes versus we the grown expected. but at not

impacted were negatively year's Given that by Brazilian results the last trucker strike.

nutrient in growers terms Brazil purchases. of the among uncertainty some sense their of timing also We

had which view, to in the That crop including as to multiple both Brazil. play uncertainty in well an farmer in North of the China have America, factors evolving soybean role important related trade economics is conditions U.S., as

we market. to would our in the are Brazil, warehouse demand. the stocked serve the that to looks our we throughout which a operationally of are and another more well however, North serve In about like, year window cautious narrow our is rest customers In both and reason to we South bit than are networks America, strong customers be

I As impressed and months I know, competitive our some Compass in to of most with spent people, most of the getting been of businesses. cases, you uniqueness Minerals know the have and our have asset joined operations May, quality, the position last in three and portfolio.

with appreciate broader also of with attractive a in have to businesses, our strong who And work economic the I generation, capacity and every our of transpiring to cycle. attributes at regardless their and jobs. strong core go very dedication the is for flow I'm the what which markets impressed sense purpose day people cash

been the significant attributes, the positive a with execution, of about already ability on business to the focus improve Given these its increase investments have optimistic to overtime, that and made margin. significantly these laser assets, coupled I'm

still these to days thorough have and review we While are of our some me, changes early every already for of important began are make structure, a undergoing we how operate. in aspect

and achieve with of review to all and this effort Our operations part wide excellence. renewed a on to structure, organizational optimization, enterprise decision are an focus to technical move coupled a functional

stronger us shifts investments these needed to be believe what shareholder to will might I efforts we returns us have value. strategic the that determine made on deliver allow and achieve help greater

the have at our In as other have results operations and the Mine discussed from executing team well. we the meantime, our by is delivering improvements Goderich I examples that existing important critical. made

tropical Blanche that was recent impacted landfall by storm the in salt directly Cote Our July. in mine made Louisiana

harm's On out that robust having Blanche in and securing flawlessly plan to the our as first preparedness way the would team and such executing approached. Cote and score, assets. I place a it storm comment for emergency folks comprehensive of our like Keeping

the like this after swift All impact would direct damage. amount expect to and operations due for team. taking our we their a full-year however, hit on of Cote to from restart our them production recovery don't a efforts enduring storm Blanche efforts fair commend at Secondly, basically site told the the also to of any I

driven this in our better quality the cash $XXX on plant to and production per turn costs been production Our current driving year have team results in SOP Ogden range. has we where also at year,

the In into we entered new deliver America to positioned introduced be Rocket also partnerships the Seeds more Nutrition should mean well business, North growth over and improves products. the next the we agricultural development year. achievements for new as innovative Plant of These like market have products

attractive capabilities, our fundamentals execution conditions for and start and in expect stronger salt solid these culminate XXXX. a to a business, agricultural With we to in the XXXX market, better in strong finish market factors developing

details rest Jamie. outlook the Jamie our will segment the through Now, for year. of walk results of and the

Jamie Standen

Kevin. you Thank

First delivered XX% the more deicing increase earnings prior in volumes in sales selling in and looking results XX% operating We lower average XX% highway compared costs on X. offset Slide a prices at year. quarter, a as than salt our salt the higher found decline to second

in unexpected This and these in those are logistics flooding release, $X.X costs As in our and on earnings third fees. already along unusual mentioned delays the results to resulted times the related make in sales quarter. Mississippi transit spring million starting this by negative included experienced a River. extreme Kevin to increased demerged also impact volumes, although up had shipment The the we our sales flooding

which bid the lower impacted mild also from winter the has demand. were UK, deicing reduced year's last negatively volumes volumes as as restocking season, commitment by well sales in Salt

by and this sales. However, stronger some industrial was offset decline consumer of

XXXX highway price relatively products prior much consumer compared sales benefit higher. quarter and highway selling in higher the to a from also improvement deicing have year. this higher is the to price although result deicing compared Remember, industrial was a prices very and a them positive selling quarter a mix of as cost of to average Average products, X% these in produce a X%

discussed, products base above also results. Per In year. prices addition increased per about costs X% we to quarter from rates salt for costs second unit costs and logistics and were the handling shipping cash unusual fuel XXXX

Excluding last costs would which cash been mix mine. is the rates Goderich impact, year's results at year-over-year Cote a mine higher operating production product the of and XX% per have our versus lower, Blanche improved at reflection unit

higher Second year Nutrition Sales continue America results prior declined feel quarter are of discussed prices the were slightly the to average impact than which spring Plant while wet Side results. on X%, weather. selling volumes North X,

mitigating rain wet and South was continuing weather throughout where to the our commercial terms May a into SOP did With Northwest, impact impactful. shifting great and markets Eastern Eastern the Pacific our less job California team by

sales weaker grow for impacted economics grower believe quarter. crops second micronutrients the also in our We

because Operating results. percentage earnings for is a while have XX% earnings EBITDA this low year-over-year the had quarter, small changes quarter about declined increased on modestly impacts large

Our earnings expected the were lower sales than weather negatively previously impacted for regions acted discuss. by

teams fully our markets more increased staff shipping also and our R&D compared support And increased commercial handling costs SG&A shipping future have distant year. products to and to year-over-year growth. to due last to to our We

where Utah, the the compared prior the year this there. costs was driven the costs side, to facility the pond by SOP lower to we beginning in down SOP made quarter production produce positive continued which benefits at at are for X% mainly Utah year, On our from better were see we based investments of plant. only to really have

the stronger we higher to Turning results X, and These on XX% currency Plant you revenue Slide in volumes America the increase segments as reported selling results local quarter a slide. average see South on prices. second in our X% Nutrition were for XX% can on lower

volumes products drivers growth sales of prices. revenue agriculture local key better selling improved The were and

strike as in lift Brazil mentioned Kevin. that prior May volume versus truckers year was by to the of due Some the on fact were last

by driven sales volumes This Operating prices costs. by earnings material was improved EBITDA primarily the input and business. higher offset agricultural raw higher and also in partially

in moving larger of Canadian to were was million versus loss again increase dollar. quarter, an the driver FX few a primary was first to an other our U.S. to prior impacted year strengthening the earnings Net outlook, the related by which results. expense, Before Similar note. X.X dollar on the than items corporate

interest our credit a world borrowings revolving increased on We also incurred higher due facility. expense to

our can Slide second which found half Turning XX. to be on outlook,

the increased additional We commitment to industrial sales, as improved expect within results and volumes as category. and bid to deliver growth due particularly consumer segment package well deicing deicing salt prices highway

Plant are from we spring, increased however, to increased are In second America, Micronutrients applications North level. from inventories customer demand at the expected remain prices to the the sales additional reduced in XXXX half stable. following expect SOP headwinds facing benefit Nutrition while

Nutrition and second we Plant along the half business, continue the with earnings in America in full-year South sales growth of our year. revenue expect In to volumes growth

growth We are degree South bit a on America. cautious of the in

make have for several on China planting time Brazilian from taking Asian reduced be They where see policy decisions the currency. to swine concerns, yields to to land this soybean appear uncertainty addition to U.S. factors. soy based season are due regarding the and in to their waiting demand domestic flu Growers you

and year, corn. reduce during impact products value soy also demand our There are the still So balance while last as soybean which attractive, value on the economics as general. our may corn These somewhat for not they higher acreage applied robust spectrum of the of are year. can are may margins changes products shifts as be in our some between lower

are on we have maintaining I view the full-year, on expectations the based EBITDA growth original For just our outlined.

to $XXX continue cash to XXXX. flow We full-year the expect million of about free generate for

also year debt-to-EBITDA. times with below four to We the our expect leverage ratio end

push to expected fall inputs. which very As SOP Kevin traders North thus nicely make America, and patiently America, the mentioned, for we for And us fertilizer ready taking upcoming Nutrition in investments Plant we sets which in serve deployed positions our far, growers stand our In start we up in are bid pleased should to demand. inventories South corn with and waiting winter. results are the soy, fully have to

allocation amplified an sourcing generation. focus margins capital wide cash flow and and plus factors further on both will enterprise disciplined internal enhance These strategic

operators Now, ask will to I start session. Q&A the the

Operator

Instructions] [Operator you. We Stifel. Thank question our Anderson Vincent first from will take with

Vincent Anderson

in where wanted a regards Has capacity rates? aboard detail. more not you when and so little will importing at you stop utilization since Kevin. can I salt, welcome last changed bit morning all the place think at for us be least to with to you you go Goderich Good updated targeted timeline if to back at a

Kevin Crutchfield

questions context folks to and maybe about Vince even continuum. you. to mind of might the Maybe And in it just is had Goderich the on answer Good talk that. their morning this a hit thank other best way

to CMCH You got are units we continue. in there place better seeing the you know And four see, trend year-over-year I results. as can that would have we and expect

at - we of side, more the with equipment side get preventative we these comfortable and phase maintenance things to cooperation utilization. on availability are production system keep more in the between things running the of some and the and As levels lots maintenance on collaboration doing appropriate salt

So that of one. kind is number

into this We year. we would got for the I unit have anything next development plan up, late this that. past. talked to that new two allow in have think units time and see it a We a one about have showing this we the have will built new But towards up don't in we the full show that will the past, us year or off unit older plan of pull benefit referenced that of mine the on year

improve you So across expansion. with you burden margin the margin import the through are we going produced continue that, we for things obviously than will every I would at salt we lessen Goderich, achieve to do is that, expect as Because and ton experienced of internally it tons. experience to imported can less tons purchasing

which grow absorption at believe every levels increase also will have I further volumes that Goderich our driving which In fixed addition, will costs intent Goderich, expansion. as will, and margin down improve costs, we we

place we been XX longer next XX, a XX can at plan think from you mine XX, associated know setup for and maintaining the and and near-term XX, mine term the the mine is setup, years. that the least that reference in creating works plan. new without then mining is migrating So ourselves that get targets, ourselves towards old maintenance any the with up years And set I the game game we reduce old discussed is care to districts so specific costs

working But But underway. two, going to that get years we three towards. is that are what is to take

So your was to that really and responsive it. is to long a I question, that hope answer

Vincent Anderson

season of you pace Would in some XX% the helpful, normal, bid balance that is No, because I with the is line usual know, it or the you XX% your to Sticking XX% it. at that you higher I your fill completed this year. XX% is the broader through above book faster with of to point, than certainly about that characterize chose appreciate competitors? think maybe than salt,

Kevin Crutchfield

people pretty up most of couple zip somewhere XX% of being code the in Well of we out was of that at the XX%. in RFPs are in what makes really aggressively, in anyway, year, we terms inventories, learning come think time had delta, probably a normally this we the because function I as big I'm you and I think it's know in that came a of depleted wins,

really that you it's Midwest. function I that couple a wins the a essentially up Jamie, did think have took of upper reference? difference. big we I And think in is of the

Jamie Standen

Exactly right.

Vincent Anderson

early try year any Have pretty fourth to pressures to a more demand yields? comeback, Thanks. higher one can in we your micronutrients and I'm going crop here. given and healthy have been sneak quarter there where indications that prices the started on

Jamie Standen

some to headwinds we I in help. yet. the will sure mentioned not quite and half are higher just think second depletion of inventories those customer we certainly here continue, expected prices But crop

point. how going We say see and are hard to that unfolds. to this at have It's to Exactly. wait

Vincent Anderson

Fair enough. Thank you.

Operator

from Mark question with comes next Our Connolly Stephens.

Mark Connolly

But you questions. two assume the that hadn't are of yet We a and lot business you just that spoke I of we that made hear Ag the you with your Thanks, have management business. Kevin, time of since last, from fit. organizational most spending people changes. the when the time, investors time spent side some Ag on important lot on And doesn't salt. a

can your So Ag on thoughts does you early how it? business still share the

Kevin Crutchfield

operations more Yes, Yes, will we good with to a enterprise and changes and towards an aspects bifurcation and did question. some from between standpoint. organization commercial we make as functional continue a that structure make important treating changes of evolve wide we the

But some morning. sourcing allocate get into in how is as strategy internally, value then, think here capital to mentioned this prepared we And centralizing remarks, Jamie his we strategic not there. there and

as to it conducting call lot bottom, a our to diagnostics, or see I order whatever business businesses, potential we first want of are kind of top you here. MRI think we internal our of

that results and And think the in two, performance in staying I our handful is near-term focused next the quarters. of on for the and one, improving three, jobs,

board these in runs So are to on. stages of of. to put that start very what improvements some that are And on the we going focused is the we early we really as be through

a business with where will discussion Management here. well gets when more Board we from think as strategic the of Team, we evolve as the that and into go I And healthier on healthier, is as

touch does Ag or doesn't don't to I fit fit. So on want view that somebody's

I some without because the know on goes us of I one. had performance one really think we past misses the business, in you job improving focused and saying for it have getting is that that is the think job

Mark Connolly

Helpful. And just second capital. on question working is

is quarter pretty bill thing. bigger this I'm had sure inventories, good which You a higher a with

how So think show that the Goderich assume to again as progress? we going is to be should build capital second working continues bigger half, about a year-over-year we should

Jamie Standen

Yes, I one. will that take

bit a end of build. our can capital all with working Last salt we we business, to year see as quarter will typically would our first midway inventories consumed lower kind then have significantly year. this than of wanted You you year the had And from salt with. through the cash we more in XXXX ended recall, consumed

year prefer higher would to we finish the levels. So with

to But expect to see be can bigger you difference. million in know, the so million $XX bigger, $XX a working a year-over-year terms half. of could bit huge And capital not second in it you

Mark Connolly

you, Thank helpful. Jamie. Super

Operator

Suisse. Christopher take was will from We question Credit our Parkinson

Christopher Parkinson

Great, thank you.

be when bit segment You at the intermediary back this variables. level the outlooks annualized just normalized and how cash a environments, and conversion maintenance take a growth CapEx current a over just thinking hit long-term, to on in about look should you investors and the step little key

are you. be XX about insights on how additional Thank would very Slide any and thinking just you that So just helpful.

Jamie Standen

Sure.

prepared capital the on internal focus mentioned So remarks, we allocation. in the

year. this We have that above below several Trying last XXX. CapEx running for year years, XXX high down get been to

our business attention bit rigor that we lower, more and to to going think of maintenance capital drive a specifically. to with are I So look

are now. million right on is what range of CapEx we So, that $XX of focused you know

in going Cash be that are to a production imported as bit level as possibility. XXXX, a talked about $XXX free using taxes XX% like any. that is of that million before. what we is think XXXX then tax cash on do we to expect salt, our little say good that been increased are not a look we million and to they are out expected you to we in that reduction get real rate And, numbers but hit levels, of to very to further $XXX have similar flow about And going based to position

Christopher Parkinson

the the Great. you And us long-term about think FX just where competitive current QSR even you can Is the just intermediate you the after excluding to just salt of in update are do looks and on your need that you U.S. markets landscape market, that when maximizing roughly you to and better comments like and can you to how season. year there be shaping your next is it kind strategy the in third-party key year in stuff up that, salt? in think

Kevin Crutchfield

Yes, for of Goderich into think the growing one. good I years and last few import one well all is basically us job now and like performing it job question. hasn't getting the over I salt of and well level we mean, is knows performed it everybody have that kind that

wasn't to ultimate possible. toughest very focus make to to a you the we depots, on look sure even are before, is customer. part that would to from ultimate we our the want at how the most be that miles, when not try it the here efficient network, doing to depot are the so around minimize but cost taking we a That renewed and try then our or and close and And focus it there phase logistics we that around the salt way optimize to last there in salt move that at look our

a additional are that kind there our excited there about really ton and handful some a on made in are a of well. on the good a it is having super there, think to now side, we things there take just logistic there of of been up be we is can there pent going for up and while going honed kind again, get is, times Goderich that back as potential in So improvements of But about already, prospects to to I'm place. that feel moment,

their later plan look equipment, think And getting getting units bigger productive few units these in I are to year continue exceed into this have you next improvement But will are the like years, about is over place next now. there. over there next more then geometries, the and and see new much will substantial prospects what than up excited I'm super new and now in we of that year correct think the we what few terms quarters, capacities this mine I

I'm be excited next teed things So think about over the able really how I quarters. are how will Thank execute we and we getting to up few you.

Christopher Parkinson

you. Thank

Operator

Capital question Jackson comes next Our BMO from Markets. Joel with

Joel Jackson

break growth of I to everyone. competitors word came go to sort a year-over-year a morning or trending market on is much Goderich talk year-over-year. above in you being between little maybe some season, adjustments good down how produce this able of maybe XX% up Can of Thanks. to back more volume that inventory Hi, that want about maybe having to channel. production to from just issues more

Jamie Standen

you Yes, start and that Kevin. in I can will chime then

really July themselves. of have picked to time surprising constraints tons some period, tons if us, tons not - competitor a slug we are I'm geographies different to shifting may or some nice Kevin a back sure wouldn't but like mentioned, bit we we quite competitors June, which up never talk supply behavior, some will some about was So

running are know, in we well down you But Cote we are very Blanche.

mine. opportunity adjust North it So call either given serve of out us has we tons South to can that where line a the we our

to of So with are is, facility advantage that like running it we that. able take

last would of a higher gosh then the the increase. of a what our to think be part I ability Goderich, big significant of piece? production unserved. business is so levels of is of that of it piece other that out lot A certainly went year And kind

nice at of back prices grand so scheme take of to back, take us speak amount So really in market things. that to share significant enabled the tons

taking there. it our so lot think a Blanche unserved to we hard the But back, with happening Cote picking or I up pieces are is that and is speak, what there competitors. market and to of So say

Kevin Crutchfield

I I don't going did have we of I lot guess entails to bid I as to on worked situations there. happy we hit with the well it. Yes. no was run just some out a into what points is Jamie that, I right we going really mean, for us say, think mean and on about it and are surprising

as like and mentioned, And, give they loss steady between handled well. now and have kudos But to to that very the that that would will the Blanche Cote on Took the end Jamie a been I of year make through team, I up mean very they a storm producer year. they tons.

of And, moving on but we of we will be kind behind are Mississippi course a up, our we we backed think fine salt, being with throughout of the course the year. little think the

as nice of I and into have we some So tailwinds strong think half XXXX up a going are for really back XXXX well. teed

Joel Jackson

appose year have for given of products commentary give you Could you comment on cropping products your takes the I some products. Brazil, of on Maybe corn the for second caution lot same of of in beans, puts of forecast broader that lot specialty of commodity, not that Ag you and of the that. fertilizers Thank see macro as sell some about a set you you to your the half back appreciate sensitivities some you more products. some sensitivity are that. sell and and Brazil, maybe to the niche Thanks. Brazilian commentary and on Can maybe grower in of commodity the a so we products in that the products,

Kevin Crutchfield

technology But a but in lot well. and a soy Joel. have into edge high is South go our products, leading we good corn question. of products Thanks, That remember, Sure. do products, as America

biggest risks is we that is remarks corn. like So in soy the the around mentioned prepared shift

The committed as the than wait their are more year-to-date. to would XX% have typically there is real have their with grains right farmers they XX% behind about traders issue I sell think down grains commodity they they now is

so big were the aren't positions taking So for quickly companies they as year waiting they as trading that. are last

is third to quarter. So can quarter do fourth what sales that from shift

So margin to the a If cautious see little soy. there. do that related and some don't make premium a squeeze, of corn much money corn us we can is give that why side as because little are as tons on being we products, just bit planted we we

they other they is season, too a piece the long is, order bit transition applied tons miss coming for The which quickly. would the lighter full-year soil the in to the if which deliver boost little would the can and wait if that up In nutrient is matter quarter. which plants, nutrients we of little expect that bit on side profitability a to fourth to case,

is South and share do down have and in the yes, soy other But So we we main driver down products coffee that some there. America. the citrus lion's of what sell is into

try we to focus what that to on. try So is

some the relates even it we taking our But are flush In on had things and are see think soy prices. flu, out distribution. they trade, to quarter South business, front. did global I demand significant the good we the second volume sold As BXB in China though product into itself, even swine distributors see activity ingredients how waiting customers, there, with down particularly on also to are their the

Joel Jackson

Thanks.

Operator

Instructions] [Operator our next We question Zekauskas Jeffrey Morgan. will take JP with from

Jeffrey Zekauskas

that, for million it opportunity the XXXX? remark But And $XXX cash is Taking in Thanks XXXX XXXX. much. their $XXX about did maybe you the why in call. out why level capture look say that XXXX. for free how less million a very to flow possible cash Kim, you flow. of Why made to you course rule free of do

Kevin Crutchfield

on will be we say that. I'd Jeff, path a to Thanks,

XXX in XXXX. So out I XXX would expect to

XXX that how of end bottom So, of we is see to XXX it. kind

production, would the ton of take can’t we as as we quickly the season. like, of As we in because marketplace back bid the timing ramp-up

incremental we purchase out bid generates and can did so it a production tons, incremental these bit. tons, flow to have pushes our tons, capacity replace you it So those increasing just keep which more cash

be halfway should in XXX we this would to to up XXXX talking toward are timeframe, year, of about be we kind I just be And XXX normalized. able fully year, clear, to that to the So million XXX. move then up that say we next would

Jeffrey Zekauskas

many How of sell? you tons do salt purchased roughly

Kevin Crutchfield

we of So about million salt. don't we purchased we $XX on don't that think talk we are it, specifically, spending but approximately

Jeffrey Zekauskas

still any strike trying over Okay. factors calendar or Are I from the other that constraints XXXX serve to you that guess, capacity in left year? have are any the there

Kevin Crutchfield

I like I XXXX, No, in XXXX our bid down. we took think mean, season commitments just the how

of own You was supply constraints. internal know our because that

continued have we that to Now production see recover.

the confident bid We have taken very season rates our our are all serve current we can given XXXX those production we that of facilities. and tons back, at XXXX

don't being I to your see able Jeff? we issue around that question Was what did. So serve any

Jeffrey Zekauskas

Yes.

Just very quick things. two

of occur do you You or that all I of think there extra the a natural normal business small and part because flooding run operations? item. nonrecurring do sorts salt treated are of agricultural would when that? that an logistics things these shouldn't be costs a in Why you

Jamie Standen

closed terms Well, think Jeff. upper Company been that Mississippi ever haven't in happened. I June seen it unique - the the that have was we XXth. before something until particularly block has of since That ever was was don't at that I

item an that extremely is as and we non-recurring unusual. So truly that view

in rain seen more about years. talking XXX in than have they the are You Midwest

that definition So us by to unusual. is that

Jeffrey Zekauskas

strides press what it be specific in be the operational Okay. you results. that release is this in to your lastly, And Can important performance, you made drive reflected is which beginning about accomplished said to quarter then you quarter? Kevin you this

Kevin Crutchfield

the XX%. a I particular can I be on the Goderich see XX% to it in back to in year-over-year you half get would the year. basis think I that up time number expect being we by of larger, And Well mean

of it as I mentioned, continuum. a I'm, as So as think a as

will predictive taken things we occurring But close collaboration are think failures is more preventative of coming. I folks level, mentioned like And think mine needs care we the to complicated the seeing is be and very over might of, side. that the and sort more to the at on move and what maintenance earlier, be side to the understand and doing what unplanned - I overtime, we machinery, between less anticipate towards production this it these

better and getting how and sort running that and take just and I are the more of to of is care more thing. comfortable units function think that with the is bottom-line, a it equipment of So people

think of one. in a itself that big I is and So

And to then I down, $XXX have in and the important I costs see been that would zip we past. ton will code. the continue SOP of we think the point pretty being balance to what compared to year in additionally, milestone is through that That

examples. So point I those two as things would

Jeffrey Zekauskas

Okay, you much. great. Thank so

Operator

Seth comes next Morningstar. question Goldstein Our from with

Seth Goldstein

taking for question. you thank Hi my

in up XXXX When costs do expect up unit the Assuming to that the or show Is production large see expected. XXXX? to out the salt results? in production as late finance improvement continues ramp we in

Jamie Standen

for So, salt you start it will to tons. in a of XXXX basis some blended all cost on see

below itself to make we will get continued down And throughout show the We will $XX in improvements the XXXX XXXX. really part. in XXXX for start then up most

salt So in in we then dollar and XXXX of view lower and another change XXXX. couple a then step out costs

Seth Goldstein

remember changed to started selling how basis. I business. XX% evolve a the North exposure crop at corn, looking exposure once the Ag of North crop how North the soy, thank Okay, entire crops. American sales and America you only overtime micronutrients row And then from that are right was But American will and SOP you.

Jamie Standen

Well, I about would continue into shift, Don't of think a in best number our goes piece. crops growing most potatoes to into I'm in America. into seen in SOP the - SOP North that Pacific our it it SOP crops. terms of not source Northwest. haven't specifically lot row I the of crops, specialty so crop for the will does But go of of potassium be XX% we is as that specialty say think sure A

will continue and see our you grow like is to our that R&D you that new products business, in earlier force really grow driving diversification that micronutrient we to continue built start As sales to we continue out mentioned to remarks, and business. our team our prepared have to

products, micronutrients crops throughout many those So those to the of row going are Midwest. on

time that some shift up you a take So just significant significant to going before to see there. build it's a

Seth Goldstein

Okay, great. Thank you.

Operator

with Stifel. Vincent We question from a have follow-up Anderson

Vincent Anderson

through I X% of increase attribute to follow-ups, portion passing quick just price what salt roughly would Yes, two bid in logistics had you inflation? the your

Kevin Crutchfield

say. would I

would we I a of The So factors won There a mix say is tons versus year. a there small than lot But is a portion, last there. probably it. in of impact. less quarter

Vincent Anderson

the down you. interest soda come and a prices, brass outage an for caustic Brazil you That just Latin pick-up rise And with seen then your in is the American helpful, in buyers thank potential have for chlor-alkali Brazilian facility?

Kevin Crutchfield

to that. So on we comment really wont

you comment I terms we think Specifically, enjoy don't of have M&A. of know, margins the any business, we that profit continue in and the really to but that

Vincent Anderson

you. Thank Alright.

Operator

for additional I'd turn it this to And at time. no we further to conference the remarks. back Womble Theresa have closing any or appears questions like

Theresa Womble

call Thank And you Lauren. all joining for you, our thank today.

If any follow-up department. to free you feel investor have relations reach questions, the

our on a great day. information the website. find can You Have

Operator

your We that for participation. And thank you conference. today's does conclude

You disconnect. not may