Compass Minerals International (CMP)

Theresa Womble Director, Investor Relations
Kevin Crutchfield Chief Executive Officer
Jamie Standen Chief Financial Officer
Brad Griffith Chief Commercial Officer
George Schuller Chief Operating Officer
Mark Connelly Stephens
Vincent Anderson Stifel
Chris Parkinson Credit Suisse
Joel Jackson BMO Capital Markets
David Begleiter Deutsche Bank
Chris Shaw Monness Crespi
David Silver CL King
Call transcript
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Good day everyone and welcome to the Compass Minerals Second Quarter Earnings Conference. Today's conference is being recorded. At this time, I'd like to turn the call over to Ms. Theresa Womble Director of Investor Relations. Please go ahead ma'am.

Theresa Womble

to and today rest welcome second discuss and results quarter of morning our to call our Good XXXX outlook.

with CFO, begin Crutchfield; will prepared our from We CEO, and our Jamie Standen. remarks Kevin

Officer; the Q&A Operations Brad Chief our Joining in as Schuller. session as for well George Griffith, are our Commercial Officer, Chief

Xth, let involve as everyone our filings get that these located and online our of Before in of view found could company's we date and remarks cause our investors.compassminerals.com. expectations discussion can started, risks actual differ financial we outlook XXXX. the uncertainties that me results SEC be remind of operational risks materially. today's August represent These make the today A at to

EBITDA flow. Our remarks today also include non-GAAP free adjusted and financial as measures cash such

our housekeeping reconciliations or the now the are also turn You of release earnings both Relations in Investor out to call that our over items these website. of earnings presentation find With of available which Kevin. our in I can way, at

Kevin Crutchfield

Thanks for participating everyone today. and thanks Theresa morning and good

resilience the core we pandemic in up but the we volume compared COVID-XX achieved the three of As last to only within robust earnings and our nature accomplished half. ahead achieved posted quarter XXXX second of face XXX% strong $XXX.X strong year-to-date markets growth both materials, This nearly execution and our results reported of flow essential from with operations expectations. our was our performance business million very XXXX operating sales the well products, not all we year-over-year earnings in growth serve. totaled cash strong year's first yesterday in also across EBITDA through segments operations. And demonstrates The of of quarter the

they've have And employees essential this our customer of initiatives. our safely work serve or on like across deeply the mines our at by moment and customers to for needs to of they our ongoing to our and would platform without commitment global safety our the to success required analysis of none company. shown pandemic and underground operating to packaging numerous them inspired all business. of thank and working our of a threat our has protocols additional our implementation ensure corporate this I've careful the in global course products. who who and concern. of health have of been our able our strategic paramount execute From I'd people. meet take toward been contribute employees, in deep demand for customers' been customer operations or our remotely efforts possible those our commitment to the our functions, well-being Their Because the been Of facilities to we've support our remains order across production service of The processing maintain

due From that date sales levels. stay-at-home portfolio our a by exclusively the for demand, happy experienced a non-deicing winter and lower impact on quarter to Jamie we've results, on the is which limited idled only was orders in year-over-year. to in to of grew products. operating due Salt of program or execution the ramping ending normalized have the doubled quarter up food government's production of end more mine salt almost within slowdowns combination liquidity to have second I'm faced impacted retail more primary into through as second the shortly. perspective second commercial The Digging detail reduced to back report In This U.K. mitigation, our and the cash our and been has risk And million due will production our virus. the resumed includes were these while $XXX segment business outlets quarter mild with from product industrial pressure to to also specifically began who demand XXXX, mine expected of quarter management in XX% outages the be through and May producers While receivable customers, well further discuss securitization recommendation June. sales to there earnings from the a most of COVID-XX the portion compared continue virus. accounts hand spread the the for due million production cases, of may to at normalize EBITDA laser-focused U.K. as $XX to we

both to increased from was mining driven beginning at efforts. our volumes sales and highway per optimization improved significant and performance this by deicing also Goderich of costs prices, In to enterprise-wide reflect improvement are our addition which benefits salt logistics lower unit that

for demand Our Nutrition micronutrients North continue America potash Plant our last delivered in robust stemming Nutrition conditions XXXX, to strength from and of the economics meaningful Compared depressed quarter to in North due and as improved to of as sales Brazil. Plant year's XX% demand results. crop gains America growth crop rebound sulfate well second of businesses from volume continued enjoyed strong

half an strongest Plant year. in since In Nutrition represent with basically earnings to operating for XX% America in EBITDA North improvement fact, total XXXX. segment compared sales The flat segment first that year-to-date last volumes the also reported

increased improved more priorities. so quarter our results the our segment farmer sales Second quarter second resilience for year-over-year, business. fivefold experienced progress XX% EBITDA during demand in Nutrition macro chlor-alkali and our helped again operating demonstrate for chemical of increased environment we These economics making product business the to to products again America this earnings on XXXX strong solutions strategic improved challenging our and a we're than quarter South in Plant approximately compared drive Improved agriculture while far XXXX. the segment for

optimization of advantaged to related priority I sustainable Despite make three as quarter, Embedded culture; conducting responsibility early pandemic, focus building enterprise-wide program the second health of the in of and areas beginning strengthening pandemic on and our our commitments; for the end of company: outlined the continue to go of assessment deep to these as is safety. came our the assets number day a home we Building our strong areas. they is within the of muscle. the progress paramount. At as highlighted to capabilities. is of and execution a employees three that make all importance safety we're last meaningful us has for our healthy work. we crucial our As culture quarter demonstrate impact have as all certain key well as delivering strategic our as And companies a one

As our we've rates. and you see made total like meaningful strive critical metrics continue in incident safety to presentation already deck, in we'll for case improvements progress can

of I change joined Compass Shortly for assessment deep their conducted that after terms Minerals, to employee engagement. improvement acknowledge company. we of also how our We the we engage and much have within influence view room ability and employees in a culture

still to the our leading of feedback our we the concerns, to internal listening And upon be company strive we've by As inputs focused ideas amount seeing be and providing we're a a to to significant critical an we're that people execution These efforts that resources are have to of deliver part ability optimization our success. muscle that indicators impact. and new areas to production consistently Nutrition on of also mines or all foundational in an clear And enabling products They hitting for service, customer at reliable the are means making and we've well. building our our Plant customers. our terms targets innovating commitments progress leadership therefore team we energy work acting the of of time to program, and extended our efforts do as empower while discussed previously. as are in making our timely these whether number

built-for-purpose at production Our our Salt Goderich over cost record in the transitioned earnings improved targeted month the to continuous savings, of a in new monthly North old better very works. including roadways our reducing the mill is of currently improvement from implementing are progressed utilization been roughly simultaneously the Performance development mine and miners. and production mine American designed which These developing X,XXX in mines segment our mining exceed are logistics We've and continuous shown pricing. or strategies Goderich, the June we at both three design our the have years finalizing prior in equipment, of steps rates important in strong while the Eastern on for mine the long-term in into discussing new costs plan continues calls. hit feet maintenance to we've also and of significant haulage area setting mine production since leverage last our to mine process

have in with mine the mining mining he has operating expertise. mine been While decades of Peter reached experience believe help the leader track labor Baker important, progress employee we're three the I'm leading pleased brings confident, us at To Equally the level that not continue and we get potential. specific we've new thus he'll need drive of to community to XXXX. provide ongoing the we in would mine leadership without further our and pleased we day-to-day an extremely we're him a strong deliver joining Overall, firmly engagement team. operations firm in Goderich. Peter next that far full and we record to a belief results believe with of our to brings at not efforts with at work Goderich, helm organized we've continuous the optimization to a have the them, of progress all aspects force. of able value and been yet have delighted making taken the We're

from fall of flexibility example well volume complete. the challenged our us and on second is around or highway a about surprisingly, on any improved wave Looking American cost including to season been America period. current second ahead, the and through given The bid a the supply in tough is challenges uncertainty The positioned highway pricing market might even our current a for chain continued results have or to impact us supply increase season deicing mild to XX% year, end underlying weather improved production our bid how markets. a the the help allows execute environment of of producers. for half position winter a strategy even it's North certain these Not sustained have spread perspective a COVID-XX in North what prime

opportunity low-cost from market imported This In an we placing winter. a in margins. served a market response constrained season due the our thus that fact, volumes for provided before, more faced by a to seasons for maintaining significant play demand. estimate X%. reset. price stated to for inventories mild taken we Overall, while in we the XX% increased bid given results volumes about the Goderich But regain elevated bid winter bid our attractive have upcoming estimate we've role as following far production to our at season last that about declined we our the production contributed We've began disciplined a share, salt believe seasonal to likely to as of bid meeting couple approach Goderich bid the we've

We Slide see factoring as we've more increased the believe we the awarded to bid our way decline average bid our prices, price awarded price price also decline. average our compared you about market and expect always in which X given season. a our increased making chart has like season's can on XX% to Obviously, disciplined bid in particularly we customers, bid even sustainable but to in the seasons, over last serve three competitive XX% prior improved geographies. in All-in-all, cost is this us share higher

the for we to Salt EBITDA results year bid plus improved the excellent we're Given operational benefits execution, and the the XXXX. achieve from margins full achieving operating season segment expect still of

some increases With that the Brazil continues our will strategic The position already complement due in may that pause I'd of our perform that have which only launched our out to continued and more SOP cognizant a value our action involving to COVID-XX previously this of color continues year. reflect Jamie? Jamie, our also second also year into America, Nutrition in We're and products of outlook. on for Plant headwinds business of the future Seeds and exceed the financial to be Jamie second to to South half award-winning results. our like year additional I'll America from to including to long-term continues announced on of stellar comfort would to new stable provide over that, COVID-XX way these customers business In of as level with business. going uncertainties. second intrinsic Nutrition turn of any out the South Brazil, momentum now pricing assets. approach two and line we've Rocket an review have quarter conservative performance potential further our it demand the light team our our of point In highlights our half detail micronutrient core inventories hearing Plant demand prior into more market take spend North Before businesses American recently to introduction

Jamie Standen

Nutrition Kevin outlook some results balance I'll with first the year, very months and a for free on everyone. the first more earnings items. South volume all cash quarter growth sales our increased lowest strong consolidated earnings generated Thanks FX given and Operating XXXX. results, our discussing And tax the the is of slide and segments second typically delivered impact we earnings earlier America delivered on significantly X and start of translation with our all of before received few XX% $XXX million then a double excluding results This our to quarter quarter combined Plant U.S. was three well. three this strong morning than good comments on compared strong sheet flow across segments, us the XXXX. period. revenue results second the segments. quarter our These six rose growth We our EBITDA across as we refund

As results this indicated better EBITDA overall. on these XX. in year-over-year discuss slide was slide, on for in strong the quarter second segment results performance the the the driver primary Salt We bridge

XXXX highway year deicing highway XX% more Salt increased in an revenue deicing a customers in highway the segment in in due & to prices prior X% April results prior the sales Consumer as snow, to COVID-XX-related sales volumes. bit non-deicing purchasing offset as decline Consumer bolstered reduction from and A improved in an of while volumes increase sales minimum year-over-year Industrial quarter a Second of quarter volumes XX% Industrial results, than year-over-year & products as deicing depressed X% increase impacts second salt selling sales their well volumes contract year. compared deicing XXXX

well a production compared to increase operating addition to driving related costs adjusted our highway prior in earnings deicing The year. XX% Mississippi in logistics XXXX Per-unit year's quarter us sales improvement enterprise-wide River. double logistics production mining excluding year. North as flooding of significantly declined lower to lower to deliver million the lower were second impact better fuel product $X.X and achieved extreme optimization Lakes than costs costs, include the efforts, EBITDA increased as this utilization XX% vessels, quarter after even from both also geographic XXXX. customer compared Per-unit costs Great overall the prior significant We our mix In sales, cost favorable American helped and of last quarter sales of mix. and improved year-over-year cost second factors and along this benefits lower

lowest these segment slightly COVID-XX elevated even some minor delivered Industrial demand of we salt half per-unit cost costs also U.K. due pressures inefficiencies, lower compliance due the XXXX. U.K. were government in by lower the guidance. benefit both related about we & with weather-related levels in adjusted of to production this cost since second However cost production the as short-term year-over-year to COVID-XX was offset and Consumer for with cash that higher per-unit quarter

lower to the per-unit we not second of to although forward, cost half result. the magnitude the quarter in continue second as same year expect the Looking

cost This mine about increase We're downward of last impact ton Cote COVID-XX premium utilization by We deicing $X.XX in also salt cost second to our the the are mix bulk the deicing in deicing portions when market, expected mix compared producers North sales expecting production half demand per would versus packaged chemical year managing total rate by ton. of negatively as per of half the year. to due $X.XX change second a well salt our in at demand also the year. stronger That from as to resulting in southern from is lower reduced impacts. American of Blanche about

of continued However average weather based XXXX cost to winter compared operating and it to of quarter. & second is we cost half mine Goderich of our salt those believe push in the is expected improvement the can elimination we average Industrial in $X This prices in as purchased $X deliver on second Consumer the the the well. in selling rates. year to the unit significantly second half fourth half with assuming higher of salt improvement headwinds, Even

psychology facing months, of testament the up value product have light to In pressure growth headwind first Operating on a over price of and basis, the was down drove grower including Unfortunately some Nutrition ton of by that per $X to on X% a this results. with sales increased just decline a results slight price half to EBITDA price quarter the SOP geographic on below XXXX persistent strong sales North but second depreciation second which of Turning $X.X and average in in compared than the increase ton The and macro of a to potential expense, international a net our Slide sales XXXX that SOP quarter earnings this XXXX. while volume macro Plant a On was declined pricing SOP-only prices. America year-over-year a driven for does of sequential negative pleased sequentially. per dealer challenges note proposition We the basis, primarily lower was prices offsetting XX% the selling average actually remain revenue was slightly. XX XX. XX% partially selling quarter million, lower fertilizers quarter the in stability offset $X downward increased about last sales more decline Potassium+. our We mix volumes. volumes due on largely in pricing fertilizers X% by our only our the is about appealing impact is

lower some South benefits. America the slide on trends price, to discuss saw our points the on by agriculture sales compressed for by quarter continued quarter, Our in positive grower EBITDA The performance farmer. We we year second offset Nutrition margin XX. logistics resulting XXXX about percentage economics four Plant from Brazilian has compared prior sales attractive in This gained the the momentum strength with product in driven first levels. increasing demand volumes very in been XX% partially

higher which increase products. the have was products strength XX% primary particular agriculture through -- our sold local in for of value We price our direct currency in experienced driver the average

factors earlier second strengthening have the second EBITDA business we increase many barter produce sales and was year, have continue year. substantial attractive This also some increases compared XXXX XX% seen forward into from as pulled costs soybean mix drive We increase half expansion a better compared the as attractive prior boosted to the combined revenue operating of in very as quarter well BXC costs rates utilization our although crop demand, early process may volumes by second more in asset their compared expect prior and purchased little to to been of and some solutions to currency, sales. in in for to forward-sold year and revenue a earnings growers by declines Profitability year. efforts. inputs offset COVID-XX-related helped our which prior enterprise-wide quarter optimization X%, our and lower production normal. chlor-alkali driven sales increased than local energy sales benefits In improvements, chemical due Chemical industrial margin these to

moments and outlook on is for takes shaping are on additional color half outlook. like this puts take a few XX. second I'd discussed to The slide to the of some that our provide segments

the producers to the reported is as result. of likely average season American realized as a results, price our average of other Taking and to into we be prices X% and decline selling less between for that sales X% selling average price sales highway expected deicing to year the discussed, those First the half Salt our be is Remember result highway second to sales chemical the rock to than half North include bid anticipating overall consideration, decline salt U.K. in deicing our down Kevin volumes although compared the XXXX. segment second are in bid results

Several second EBITDA for factors to of be outlook. impact segment similar second the to expect half offsetting XXXX. We the Salt half the

year-over-year this some increases decline using lower expect Goderich of and shipping and offset purchased costs, are we are slightly to costs handling experiencing as our for are and mine a lower of half XXXX. We are higher pressure costs certainly second costs, barge in salt expected logistics fuel we expect as And rates. do helping highway our deicing about to product rest While longer customers XXXX XX% no costs and serve salt from the our vessel costs. we result, with to

for I year and as activity be business to slightly quarter. we some business. selling benefits international and second prior expecting In below the significantly sales shift better Consumer the Nutrition North micronutrient plan will XXXX previously to third conditions mix pulled our more as during per-unit we to discussed, these we half of compared results second packaged a we prior expected However, forward in second by increased we to our our as partially into business, sell product second are at as the from toward Plant crop quarter our Industrial increase products the believe did America weather the half are premium cost deicing mine are within be the offset prices volumes Blanche than & sales year. Average Cote half

for see a revenue we result, half second As the segment. higher year-over-year could

deliver results. the of expect compared for XXXX to higher flat slightly segment We XXXX second this to half to roughly EBITDA

expected to couple in logistics a a expect our the performance versus rail mix of per-unit prior a per-unit compared half Plant America of year have offsetting production in portion Nutrition levels. also currently inflation prior a year attractive to costs of We Brazil. to due increase. to and grower due is second continue our micronutrient costs segment rate economics sales modest due factors in to South in We increase expected revenue increased step-up Strong

is fertilizer helping results. currency negatively affordability local impacting it translated with is While our the weaker

all we also communities close progression COVID-XX eye are operate. which the keeping in in for on we as are of the a We Brazil,

to demand plant the to there our for strong our Fortunately, pandemic. the due chlor-alkali and produce efficiently And all products working sites serve of is to increased we demand meet seeing. chlorine continue hard are other end EBITDA All lower markets. to our are This solutions reaffirming is year million full for of some in $XXX million. we offset guidance the all, and $XXX demand between an chemical for providing

highway several have are which currency significant to to headwinds season these expected a across we have demand, the taken we salt organization, bid While where items lower deicing our headwinds offset provide and pricing actions can we see to translation, that entire U.K. corporate large we expense, spending only. degree. critical outlook, limit items and as we reducing for expected you XX, all are On Slide continue corporate our to including range other

lowering interest in our in completed with In expense capital the also to fact improvements reduce receivable helping Furthermore, facility, $XX total addition, are in we we demonstrate plan. are quarter our throughout capital and lowest liquidity range initial securitization addition to are X.X%. cost ended due in second spending improved that U.S. position. progress is just drive on importantly strong towards XXXX compared These million liquidity. to part our million an overall businesses, levels three-year improved which accounts to now We about execution balance we of expect to us our a many sheet and cash our the maintain our measures, a $XXX at helping

to Finally, of we million free to compared the in generate XXXX note million XXXX. flow year for $XXX full $XXX cash expect million $XX it's important that to to

it Now closing for I'll remarks. back some hand to Kevin

Kevin Crutchfield

all our of that emphasize another a to take able to stakeholders. value we important build for our on making want to to moment are progress I Jamie. company deliver journey Thanks, consistently

and beyond, With of health pandemic this rest our deliver the our and safety with the this current to the XXXX value for start us the critical. communities. factors of employees without key or is For and

now. of and throughout is cycle largely business Second, across economic providing wide resilient inputs are critical we're range an markets, essential that which a case the the most of

meeting needs point opportunities and during made growing ahead additional customers' Our right be what progress challenging to we the and or thus capabilities, balance are key with in for to organic expect And those is our our reflected which time. this growth the benefits better future extremely employees proof Minerals. earnings, building enterprise-wide have earn a in sheet getting as This improving demonstrated to for otherwise. these execution we explore far effort. at businesses, lies great continue we're with optimization Compass continue our for I'm and our agility excited expect pleased we've they our that

up operator I'd open Now, ask the the for Thank session to questions. you.


And [Operator Mark our question take we Stephens. first will Instructions] with from Connelly

Mark Connelly

you. Two things. Thank

First, the way please Brad, Compass bid the approached recently you season. with that you said were

curious saw if you and I – there a had last you lot were of us where sense didn't a could any year this competition. what year bid give places So was you we of whether see surprises the big some

question nicely the progressed. So a don't bid second maybe half. then season on, have are I'm any for if up And how much Because, seen? curious, have in sense I'm this might curious pull-forward I the it be second you looks know, is this Jamie. how you of of acres like to going

on talking did forward, have may to just not next they if that, even pull those. you in some much are we're their overall down results sales curious, pull the producers some though it that figuring visibility quarter, so So very any

Brad Griffith

certainly characterize would Brad. season, competitive. appreciate it's Yeah. Hi Mark, to been I the this I question. the is say

As we're to in I we mid-teens. We're out, comments, both RSGs pointed about XX% down of am. I be their not Jamie way pleased? the would estimate Am Kevin the and done through, in yet. so

that inputs. the each tons now team same manner. of consistency, of goal have analytical bids by that is decades are us approach the these production in we the of utilizing where mine from that tons Goderich And bid, a tools really a experience, bid really each one degree process-driven very of with optimize, Our help producing backed more has disciplined we're

my obviously right team's places. is the to tons in it's job So those put

always And through the on reflect to and As certainly be are and it I surprises. season, been are competitive. knowledge probably context. There others analytical there And sense. there'll tools going be But estimated are we more markets perfect more make it's going that There's to that surprises? be our surprising. historical perfectly yeah,

our online, I a inventories our weaker winter. coming competitors having think, production obviously

pricing for sustained winter key say, a volumes. coming and a of the that early we As a we and into didn't winter have really season. good catalyst is And obviously lot a

Kevin Crutchfield

mean grow had too we issues to one import they've key what in begun things amount of a as to Just I and really year fair to was Goderich a was getting us this I its kind of And delivering start thing might on Mark that if And of couple ours our credit imports. goal to us other track. over with. we've past team years, Goderich's about there, the to for And not the tons. rely Goderich talked add, the operating was that on a one of back job up good position back these market done to putting the share

higher second headed, Goderich And really just that we're there to clawing always that been to right want why we for the that's us of we Jamie of kudos back we But in with in the recognition track. Brad we're team pleased said, prices. end anyway. what to And curtail try out. But -- seeing Blanche used love some decided as at day, part? you the market, strategy getting Cote in at production balance own we're getting So But the Mark's really look to on ground then to to hit better the it has back for the direction.

Jamie Standen

think SOP I that and referring right? Plant Mark, pull-forward. Yeah. to you America Is the were North Nutrition and

Mark Connelly

flush mix curious, are And more pull-forward might comments Brazil looking with be much. crop that. with direct so to how I'm of is also inputs because might No, like balancing. those acres up, in that two your cash. really And we I'm just whether other farmers certainly Brazil in because didn't be I from things shifting seeing about, they your thinking But reflect know no, Latin no. some America

Jamie Standen

we Brad visibility lot perfect have unfold higher-value Yeah. add in on purchased But say hard Obviously to significant how but maybe color going throughout to very Well magnitude can where volumes, it's to that. more rest --it's But some difficult the we our a products a the amount on, quarter. it's there. the with of order that's the of pleased season. saw

But have full the it figure is better." don't able But And how that we're forward. it cautiously been hit push second wasn't We to sizeable, you try direct? haven't half big they because guidance we I is. be we going to color is America. that, bought. Brad, on there South and hit it and look we're for -- that want And to some thought, say, pulled a little kind Now, deliver believe good we which just in to did of in pull-forward. of won't have those changed numbers why volume our hard. the you of back optimistic a was were we add these terms "Well, year

Brad Griffith


you think up, summed it I Jamie.

call think, thing would BXC on perform it other to that exceptional an team, at continues and I mention the the direct-to-farm our level. Mark, we I team team

wrapped installment, crop had where through crop customers. the for the We reviews crop their to because world's eighth customers -- accounts the continued even have down pandemic to the which time reach over have just the had is nutrition that the we some their on who a our means crop eighth And we've salespeople some accessing up key advisers provokers those things of of of and specialty has from two-day challenging team Brazil so get program use thought their and And states XXX nutrition; attendance. had consultants. rave digital in more from our really leading municipalities installment continues to shut annual program NutriExperts,

us seeing their but welcome pleased back been sort country. in cases to has expect going in very of the adapted you I've based upon team to as to they're the farms, Brazil how begin in that might So it's customers the and open right now. slow environment with We're up

Mark Connelly

of can it. you. your Sure. tough help. I Thank a pull-forward. quarter very appreciate the to sense I It's appreciate this get No,


next right. Vincent question We'll Stifel. take Anderson with from All our

Vincent Anderson

on job was Good My morning. Nice for quarter. the first question Kevin.

Just if Goderich any what takeaways, leadership, think was kind that so the Goderich -- major annual coming of, so guidance any your And full any and shutdown is what takeaways at that there? I then, maintenance tied your this was out to drove of CapEx decision? lower of under first

Kevin Crutchfield

manage It it on here George I few in balance sentiments about absolutely make George sure We've unexpected of very Why along he's things Because we're in pandemic great but in shutdown as trying to level a critical. that. is myself and watching to lot very it always do. body planned shutdown are characterize Goderich with successful. George then event we capital done planned to the maintenance you we how way to as having something very our pandemic, -- upfront. the think able our very, Yeah. being be things pass carefully Jamie want there? up to we're good Goderich up the that that been and detailed, we I this that occur that this got had And was would look it sheet they shape absorb a to blow everything to any Goderich general They -- to a going make a just off we then at like limit don't going relates there very through take And comments that at echo with as high out. to comments got spending add to that to Goderich. would estimate But

George Schuller

Yeah question Kevin. would success. on that was at a what the said, Thanks shutdown had, bit Again appreciate little it there look we say mean I when I the a I Yeah, Vincent. real more sure. Kevin annual

during new actually setting of process major that were were, spoke we've the Some the actually that for about earlier. done mains up Kevin things ourselves that we Eastern

we meeting compaction had quarterly the lines we transition about area. the belt that the Also in transition last the of some it's talked So that areas. some setting in that we had some and that of of up

FCTs in do good but at to they the spending Goderich. we're cycle very how a lot look that do understand need shutdown do around it, monthly. and a of they is some management you rigor put real our look So it's done not that life we're our our When some but what in timing to haven't trying year-on-year at miners, need selective things basis. say real annually of seeing at at, of still past the to again you detail, what that our And actually on type capital they it's capital where good maintenance going we're when in to

So going I have a any on. didn't safety. injuries to was time. during would look success. There's it extreme of We back go thought work I lot that always of period

where are Kevin. heading So we the I'm Thanks future. excited pretty about for we're and where in

Vincent Anderson

East very encouraging. pretty besides and any are That's of ownership encouragement the bit little detail. yourself winter question lot just you in did this the bid exceptionally the also a on I more Kissner's would its a year? change If a importers Is share? specifically And poor there significant Coast helpful any I that outperformance bidding from could year? to being losing then finally, turn last back guess, be volumes. That's season notice new under

Kevin Crutchfield

ability cost And at we look but it we basis continue we've just unpack this competitive improve mean, and think lot the we a basis. bit see of be background And market at and the go. in rebalance. a going of the part, when you a the I particular that think improved in year, it's to Goderich market, to to to we importers on will enabled enabled a up begin where especially over then I just to have that -- be lot It's little imports. to we don't so The stay given the in just into there I market where want we -- in there. a last much when volume come importers' we to Again, production-wise. the get as to kind I Goderich large had issues on

So long-term XXX-year is We're this it that. that that probably because a a here, focused and on on the to now for balance I playing we're And out. focused getting seasons for up importers mine running couple it we're to not takes out. think of set for up the XX-

were get a for price And what hot And little tons profit and our we would just And to expect, market is as we're try go. want the a game playing did encroachment rebalance mild you absolutely go supplier over opposed end into no. And premier on see ended our a don't probably then got out day. production No, to competitive. let no, really I you'll question. from go. pleased we're importers served of we a in they netback placed. played But behavior. a to did? have being of of answer the do. areas But pockets again, margins we real more time not. than really pretty in just I basis think to can last come, over their to lot as matters to where want our they winter the had of more kind long the to suffered Thanks whatever thinking And We've going is market more the the So that we then game. did they terms bit optimize that's about just question gross one that there. low-cost optimize that the folks basis, is any saw our see question East because what with to can it -- this the Goderich to competitors' The We I even comment on a trying that of but some competition, with everybody up. at it

Vincent Anderson


on. you. it pass Thank I'll So


Our next question Credit with comes Parkinson from Suisse. Chris

Chris Parkinson

up between you. the years how one framework to there? question. imported Thank we year the just and you talk versus And about lower versus clear at terms past? you incremental So the in netbacks Can of production the differential like us think increase about give first Can Goderich differential products prices any the as just profitability? should just XX% in margin the

Kevin Crutchfield

that one? take You'll

Jamie Standen

Yes, yes.

it year-to-date. on the tons to million basis. We could we I'd But be were can That's you significant eight five points, pretty import million. say was $X roughly sell. cost differential. first the that think been million had $X to want about to years. salt and that selling or $X we've incremental an think that easily So it cost if -- as talked like There's of XXXX of quarter across back kind $XX in a million or million going really was about that it related you historically that import of about We in impact the of is more about $X

Chris Parkinson

Goderich? if increase Got Can markets RFQs. markets at decline a of how strategy on versus just in any an And as XX it. the thinking focus additional a index top as negative once market And in it you're let's of pre to say obviously shipment there bit, in to about how perception looking perceptions? the Has a just well you if talk addressable been were? did Just in and back Thank kind question, X% the you your in is bid Difficulty], comments, trying issues that basis go versus aggregate guess given to the terms a East is just growth at the snow at we're volume you. just to focused you're can Coast little XX% of but talk not your Or all on in a obviously of weaker I last have change your again lot your of corollary say any winter it awarded Midwest. XX just there? your [Technical about where you let's you of

Jamie Standen

There if trouble was answer add other the changing East or I our were you is there. hearing don't by there. had But it's a the to we I we don't bit if but there. anything it much sorry a and little we we have market Like in having served on imports that much. market really a that when of there players couple I'm market, couldn't yours. Coast up know over lot But better, I primarily you at question. but back. end whole that signal served our could And maybe said, more going better a lot the look it differently I a between, see we Chris, little a Yes. don't a pick as don't of see

Kevin Crutchfield

can through Goderich outside optimize if areas about margins. Blanche, approach answers our not it reach not probably it can we greater of just try that its interesting as from going served I it reach and of and traditional time. market optimize mean broke we for No. what a become about passage market Chris that We're reach to the we there's Cote us do better Goderich Jamie the question greater said guess we'll some as and I as gets our from more better pretty is badly gets cost again there. think and portfolio on your but to halfway those I'm around because with basis to sure overly up aggressively, we

Chris Parkinson

did you Thank can you very much. hear get the you If question. me

Kevin Crutchfield

Thanks. good. Alright, Okay.

Chris Parkinson

Thank you.


[Operator Instructions] Markets. Jackson We will next go to Joel BMO with Capital

Joel Jackson

kind of you don't how I you're don't the deicing make more you do to you you out out make have be do now freight through improvements you seems to there it all have Goderich cost cost make know it's Goderich about low, a it bid have analytical the get but whether portfolio, but large so such you What sense would trying overcome if and mix up? to I'm it it Like of price kind can on in back I to the the like to in like a Goderich I'd And and here about, you imports. how talk playing get and think came push highway you I looks $X, about you on volume that portfolio a on on high-level Kevin mean lower same I of we know pricing discussion. if more up the pricing follow push to did it language game to strategic assessment and is out here. bid you a on If track. is guess how from the from that to that $X and season have like do Goderich this freight to Well decrease? what talk the strategy you ton like sense? year win made harder of talk on hard figure long seems try to you some states bid season. do profitable models in be

Kevin Crutchfield

This an again, Goderich issues to allow the progress profitability that Well etcetera. had consistency very It's is one, haul. it number in so important optimized its on given towards that and not health by attention restored season. season has I think been gotten this to for we're it's the long the plan back

one a going -- very over is have was or weeks I taking that when could such out did an So argument extreme have. such a thinking we're six or and need didn't for think months kind we over maybe prudent Well And what's of year-on-year the about George nice on the long-term. nor that two Because Goderich something. pricing this your just weather to drive nice run progression. to said, they're again we the making of

produce? the productivity? what long look we So their and we them have What over based difference mines accordingly. And etcetera? that. we their to is over we'll How is control demand our allocate safety we they in term can supply capital moderate record don't How What on perceived any see like? the then what control

about the So we I position don't at that took. all have any regrets

with add fact to up here. Jamie? And ended far. we'll quite from thus anything want pleased In winter-from-winter to Do it just where I'm take that you we've have you

Jamie Standen

got No, I be just to XX%. is up -- last years net I mean environment where the XX%. cost I think And that remember we price an falling. prices three up net expect are We've over

and as this its the all. So go that's over has own Kevin we're life and of a every very well to forward bid running we're business positioned long-term season and said

Joel Jackson

That's helpful.

volume talk try the going it fixed-cost you mining so Do more bodies? have push getting for bring in more that? more next Like about you continuous it's looking push the one shove how for there? want is the a talk drill-and-blast cost? volume need million hybrid about really the Goderich, absorption? look to you're get add out whatever to to to at to you be couple equipment? or at, back can you interplay Do Does years? to on Is tons to follow-up of going and to you my on have on model back over you things need drill-and-blast? another to you track Do So looking at to of add do that why have do you're Can that if that all that you

Kevin Crutchfield


important, some additional at the So inputs is output Inputs at is same and Number higher. this one and color. Goderich. are let add really we added level ask additional me again high haven't George a hit it to

greater, getting means efficiency are is that So costs falling.

these long-term, and the get that fleet talked XX years will to at Eastern about, Over the expect look to moderate few want et has the over the trying mine than with get there. next to next fleet new production rooms could newer years roadways of set developed we're up. going the in the cetera. past is the it our But for course But we our that's that because different CMXXs up you these as we've artery

So, again, in process. it's a work

the to ways the not We overnight. fix a out have would this progression. George get to right We're go. up because color, with get trajectory. are but overnight, I opportunity all a he's pleased this We a add basis on And think I'm still the very daily on into to good with We going this be over for long thing didn't some team there.

George Schuller

is but my temper try here, to you out a it. multiple And that is It's that Kevin a – Thanks, driving succession at we've around folks it, every Yeah. maintenance. about one looking our it's it the highlighted. when are year, just it add not lots a the a we of shifts. color of for silver as operational It's seen talk I I lots this time Kevin. things enthusiasm Goderich. – people, It's everybody think last bullet, like change to that look in it's thing. would And people. how understanding I It's with equipment, look at about But over operate lot you of times bit guess, It When call It's of really Yeah. laid pretty the I'll all starts safety. our taking there. really anything at, it's Kevin efficiency. little well. it's improvement

there As we a I said, great started team people, up again, with great our resource.

about pretty look when excited see don't again, in we you are. So the I that, I'm where at future. it,

of do with to we at what actually take look it. I and that, We but at miners. to I say a unit the see don't think in the – continue even maybe out additional and reduce have say what we might out itself, is of how have. reduce increase more actually equipment optimize to potentially do I'd we'll looking operation we additional getting so some metal unit, FCTs and put we

the pounding tons. said, are Kevin XXs As really out the

color of little a Kevin. added bit that Thank you. hopefully, So

Joel Jackson

the question, I asking, you drill-and-blast was Just to get targets do reintroduce to have volume want? on to the you

Kevin Crutchfield

to would time itself. do on no But to No, absolutely to basis, with do limited it because the we not. we from get opportunistic not but got we've it not. time, need no, be We opportunistically to be situation issue have where drill-and-blast presents it, a absolutely as do may no

George Schuller

It's a mechanized mine – forward. sorry, mechanized mine going a it's

don't areas As not But currently That's we said, to it. to supplement or that we production. opportunities – we Kevin have to do do some development that's again, increase have.

you. see or term don't long short I term. that So Thank

Joel Jackson

you. Thank


Bank. come Next question David Deutsche from will Begleiter with

David Begleiter

volumes can to take Kevin through. there Blanche the costs? you. Cote having on Thank mentioned, there actions Are impact flowing limit you cost those lower unit you

Kevin Crutchfield

But volume, know, give everything at the to inputs. special curtailment. set day-in, can look a basis. on higher we're minimize the these a game they're when a hit about costs to the spent Blanche, basically and way their than and on we're volume that to it's is what in got cost unit we I make cut talking fixed-cost and calls exactly But past. it you a lot it. to you asked time the call-out Cote through do plan high a our of day-out Goderich, folks manage your mean, the but as doing minimize trying we regular And who We've of going Yeah. relatively have of you all has to this look

that good full able So, be hopefully, them cost we'll and we'll winter, levels we'll up, back and at so benefit. production to get have a get be full dialed

David Begleiter

Very margin the that product? good. higher increase what's increase? premium just how is much driving that on And And packaged

Jamie Standen

you Sorry. question? repeat that Can

David Begleiter

how – what's and product? the much talking On packaging that much driving higher margin increase is increase premium that how you're about,

Jamie Standen

more higher by rail selling significantly than massive bulk. to amounts packaged the truckload selling It's Think – by speak Yeah. deicing. of versus the margin than car so

a come back pricing. the and significant it's that very the in So material a through impact half will see you'll and improvement C&I a

how So going significantly tell but exactly margins are better. those to I'm not much better they you are,

David Begleiter

Thank you.


Monness with Next Crespi. Chris we'll Shaw to go

Chris Shaw

imported kind over I'm and level that questions out the many back I good sort and of of if obviously -- but about that everyone don't Hi, I But or bring I remember of that I it can to started? I guess is just increase the goal continuous But want Or a there when effort sort are was of initial you it's -- I've shafts can't Goderich on oranges a plan the volumes reline get Compass in morning. way we all where important. out -- are you trying Kevin is to just even If know. there of Compass gotten some in to volumes goal mining plan going to the and back where ago sorry mean to plan not there this I comparing process? lost -- higher ask far we before off. go the of about is set that in asking were now? the get Goderich I mean year its are to got we to and production am that, how given along XX% only we're equipment years we figure that apples to I maybe sort just is original years how replacing

Kevin Crutchfield

And now multiple targets a That's past, much calls. Because were. care Look different targets talked don't set on about understandable. what original how this the not actually what of were. see I'm been those I sure -- there. up in I know what targets those originally said the I've Yes. I has

the of we a example. us out see And Goderich, did at exactly through this expectations it going get everything past be produce run a given year plan begin But and supply-demand then think they towards this be before the take market much did not able a year once I we'll you'll mine see it from last less particularly long-term than capacity a to is gear there that perspective. -- to we it okay reoriented that's that's manage think to the I are way will all find there getting this when mine to potential it for I and even getting because more where than relevant needs of perhaps calibrate, there XX% get to we'll to that plan again in But capability long-term new and it's the out past. run developed. while running needs of way to

starting an we about feet we've which we've to X,XXX X,XXX -- feet that there's chevron about got transition We're pattern in the et but As easier be I developed. that's cetera. talked the think FCTs on got to appendix, illustration will

predictable, reliable get then think volume and And it in positioned, output what see we will we'll calibrate very on mine very a developing I standpoint. the we and be cost the as volumes from So, based a marketplace

Chris Shaw

maybe? I South Fair could the to quarter. the suspended that signposting of enough. you And bring for an of strategic the of then ask terms I what's looking But status I sort in you're to last active for guess review for back looking know home American on sort that business. alternative mean if I

Kevin Crutchfield

play reemphasize it does at a year action to team contemplate ever intrinsic fact little pause the we think, trigger I decision. this the assets they is but while, recognize good Capital the we'd extremely a it's The executing for that or on mean limited. down look, that on there any were ton we'll pull the the made going still a and are markets day of those better I day by kind than on Travel we what's of value it. wouldn't credit for got the way there of day gets nothing they're the environment. Yes. based end in a but of our

is And more So, really we'll much right. too to decide when it. don't the time say I about beyond that want

Chris Shaw

Great. That’s helpful. Thank you.


with David go All CL to right. We'll King. Silver next

David Silver

Yes. you. Hi, thank

a little the call in joined a So and I couple I little I'll of late hearing advance. questions had a well. as apologize the trouble

I if yourself. make apologies So, repeat you

Goderich apologize on if believe on of or Salt mining that out ago Salt about there's ton to for the -- touched target you. I Jamie beginning half? and that already, is a I would again cost entire And cost cost-reduction incremental your would $X Thank the many months apply apologize that and but year-over-year And second you First questions set ton thing, segment? target in I lower only? believe that still half. business to second an apply three that Or track does I a production -- this $X for a been

Jamie Standen

remarks few second I in issues our having in an things notably the are Blanche at we're most of a as mix improvement the impact is A are curtailment couple no, there, impact total $X half targeting production $X cost to mentioned Yes salt lower prepared year. of as There that impacting the of think that Cote well that. U.K. U.K. but there -- the the of and we the

$X the of yes, So, half tons expect in $X. lower still we cost to back all across

dollars don't per -- Goderich-specific you about So the a on talk we ton factors basis.

David Silver

going kind have table. or to the of ideally, in put a looming kind or your Okay, guys for diligence off sale anything, But up issue timetable the the great. question I be and And due end of Salt the sale kind maybe you Morton to a on is it then, a understand little I with And over about asset. the that's the not able asset did of time a year. been in whole industry up owner of that's I stipulate I sure asset has that Thank for swallow you. this second you're And the by the of has strategic done decade. think, institutionally, have I'm that's that a

my And they're element? price of the doesn't of opinion acting knockout business, bid agribusiness the price of highway of the segment all at business I anything. other? really is then, So I deicing Or stock the a stock expecting an mean, business in -- versus salt look just antitrust any I consumer like owner like by as the the mean, perspective, noticing they the authorities from secondly, salt one it know, don't the do that is a things. I ton it look company, But of couple the same other versus, one? In do mean, or as words, the

that's the the would salt in mean, industry. really the separate business or salt salt there, would your branded So in leading seem and me words be an non-deicing cement on leadership pairing maybe commercial the from up Compass' opportunity I other market to with mean, perspective, the deicing maker? natural would I maybe producer there like position the go after to leading the a that pair and

company business? So there's of just a strengthening of what, result the Salt a sale lot perspective terms be can your you. of Thank wondering I'm the from in there, as your pending if but Morton anything, done

Kevin Crutchfield


potential. the When address I our at a me here, Let hope addressing. and deliver full our at priorities after I clear our parts that got the commitments. system I culture our made comfortable delivering felt that did, think, and And assessment I structure weren't we I here top-to-bottom we creating or least of that top it a to company just we feel did I are on like

there's dedicated And would lot because weren't performing to potential of, XXX% so here. assets that, call I And has our a that or full potential. of privileged advantaged we a great been set their to what focus have

Jamie don't We strategy, not think we’re do three to I be look, portfolio, out. so really there to jobs on And it, at and beyond the really be to number if it the open us, -- I able we've two one, got relates out don't question. with fit our to any ignoring think a strategic valuations for that's whoever want And than us. of inorganic and is good that I us to HSR I think augment to from But mean, deliver how strong re-earn the the that the as what's that. organic to to commitments figure right, about wouldn't about our our for that, you. to talking Justice our But then, so So assets And comment that could scientist any it happening those to really don't Thank future. know in think, think back you're highly I they there's conversations be sort build for standpoint thing, world. growth a intent, be whole Department and look I sitting want sense, that are that one it wanted open wide to but extent we But be we via I asset to that them, takes rocket comment would have up problematic certainly think it the those But, it's on doubt with ends makes about. growth synergies us. know. to a competencies, or to Morton portfolio, to fit that further. in would the would don't means because better at

Jamie Standen

I you some would No. I to it hit with think, issues, Kevin. add. there fundamentally mean, be nothing Thanks,

Kevin Crutchfield


David Silver

Appreciate much. very you Thank Okay. it.


time is participation. We And ladies and conference gentlemen, for conclude today's unfortunately And have we all all the that your you that for call. thank does questions.

You now disconnect. may