Compass Minerals International (CMP) 9 Feb 222022 Q1 Earnings call transcript

Good morning, ladies and gentlemen. My name is Julie and I will be your conference operator today. At this time, I would like to welcome everyone to Compass Minerals. I would now like to turn the call over to Douglas Kris, Senior Director of Investor Relations. Please, go ahead.

to call. Minerals welcome quarter XXXX and conference earnings morning, the fiscal Compass first Good will our we XXXX. Today, discuss for our fiscal outlook recent results and

will President from and We CFO, prepared Kevin our CEO, Crutchfield, our Crenshaw. Lorin with begin and remarks

question-and-answer Jamie in Officer; Head call will Chief our of Yandell, our Chief Commercial Lithium. of be Joining portion the Schuller, George the our Chris for Standen, Operations Officer; and

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

Our remarks financial today non-GAAP certain also measures. include

Kevin. XXXX XX this December results the to fiscal items You and other quarter year will only announced available are our operations business, to September quarter now in than previously earnings can otherwise release call statements The XXXX. which of to first ending I condensed earnings of unless the release All announced refer online. company’s last consolidated XXXX of first fiscal results noted. earnings reconciliations flows in December call the of results corresponding cash from period call the also the reflect presentation, turn during and XXXX XX. our earnings comparisons outlook this and presented or in issued find The both these continuing our release reflect pertaining or presented in night this to fiscal fiscal XX, of during change over end the year-over-year in

to why term focus us a markets on maintain he's we as goal I'll quarterly first operating for and and contributions of here. of continued I'm Doug. Culture high recently has Minerals already advancing Throughout the to shift believe specifically Minerals, welcome Thanks, we’re its next today. his for the minutes the while short morning, call. ability work business value our excited a safe sense how operating resiliency new the our perspective environment. business CFO, a challenges XXXX I'm unlock these to to his at performance, strategic shareholders. everyone, the our adapt and quarter and Lorin our appreciative to common few our team our After toward time established and fiscal call and to vision responsible business, first efforts our a we've demonstrate for appointed adjacent Lorin what quarter, brief to our generation for environment. a opportunities, inflation we Compass retardants Compass thanks earnings of creating of to brings allowed spend the providing to taking of time fire making a our long continuing our lithium, Crenshaw, make weather-dependent first in join discussing and to review value, to many expect Good

lines. throughout revenue X% our in in higher reported SOP by was in first product as year-over-year, As Protassium+ industrial gains release product, driven and pricing salt our consumer quarter well volume earnings business, of our yesterday, growth as our and primarily most

is are low by the year suppressed caused segment a in levels was decline our and despite profitability higher pricing top growth reflected declining consolidated within line weak volumes input relatively and during persist potential year-over-year to quarter This first on for In headwinds being While well a previously X% to offset on inflationary historical segment million of $XX by approximately we combination pressures to resulting normalized XX% our season revenue line pricing. approximately our commitments year-over-year markets a Salt business. The throughout weather Salt lower below this factors by our nutrition below primarily EBITDA these the growth showed comparable costs to our to of start the XX% weak likely lower to year-over-year segment winter our served revenue approximately our believe ability increase the the result in the $XX bid inventory volumes. translate winter net EBITDA million. in year the grow that with adjusted this partially higher earnings combined and to constraining volumes Salt by result results cited to grew first that period distribution particularly including not increased top plant improvement average. costs Due quarter did in segment in however for of and year-over-year quarter profitability

and rates transportation us growing our business everything protect we And part term determined in pass costs to pellets both Our prices fuel this upcoming the across within along of from bid the rapidly the business. higher allowed profitability contract and experienced to rail along structure has -- as broader the to Salt We've pass and nature business certain and consumer pressures input vessels for and been recapture to costs we're has inflationary higher bags. season of such generally the in year-to-date this phenomenon and not to immune of timing the as must highway costs while on business impacting business recognizing such that inflationary deicing short an economy. industrial effort our trucking items these the is of the challenge cost our intermediate

we during originally products U.S. our months several of certain experienced initiated the inflationary in higher planned. In earlier addition our position costs than quarter Southern also first to costs

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were Now this EBITDA a of year-over-year turning for Plant Nutrition; and driven in worth we approximately delivered million pricing in improvement an EBITDA constructive segment profit increase the despite points to quarter roughly XX% continue XX% a fertilizer the these as sharp backdrop strong to largely noting being to market. keep by higher down margins in percentage year-over-year pace $XX XX up with XX% results to year-over-year. volumes It's macro achieved that

expect the primarily track below to shared inherent volume XXXX Ogden we fiscal we reflecting our As levels a guidance potential at plant yield issued when nutrition that quarter we last to market. this challenges facility depressed fact business, level sustained due across the our entered for and demand with inventory we throughout year, levels the

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up year's Specifically, higher rose highway reflecting de-icing X% XX% year-over-year, this and volumes a also to rose year-over-year, volume start products. achieved during C&I weak last despite the reflecting levels icing strength non-de-icing commitment in both winter, season.

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this historically, Specifically, sales sheet to highest December Protassium+ investment price products ton, our year-over-year, average debt the capital in perspective, XX. by to with incremental quarter the working find in up our salt reflecting SOP tends reflecting From a capital and required X% to requirements quarter the our dynamic fertilizer versus and net macro That backdrop our $XXX balance XX% for to due the continued positive rose out seasonality of business, fiscal de-icing year sector. the end was ended largely in working Fortress. rising per played $XX levels, million cash be higher sequentially

the due expectations Now, XXXX in markets our relatively turning in we for weak volumes into caused account, need Blanche the costs, business have and at our we historical The Accordingly, for $XXX the fiscal to due of to $XXX our lowered Three that to in driven of broadly line resulted in Lower Cote with midpoint lower at optimal Salt year $XXX we winter primarily markets events factors guidance. meaningfully southern $XXX salt position serve in averages earnings for full-year these the segment guidance in mine. bounds costs distribution for year. meaningfully pressures million our our are range our adjusted meaningful expected. The the lowered Salt and product for of use our headwinds estimates depots snow certain reflect our to the start million. the would levels segment. season by the of of million, business higher-than-expected balance our Inflationary the of and balance or to outage product transpires the accelerated our our of that have than lower currently average. Taking for weather December have EBITDA year-to-date, to to represent routing guidance higher product outlook tracking of updated the the be salt original factors across ended we methods historical to expect a higher expect markets if half to EBITDA million guidance first to by winter upper the and the serve. that we than of in range in erosion profitability our outlook the assumes to quarter

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[Operator Thank from Bank. Begleiter you. Instructions] go Your question David Deutsche Please ahead. from comes first

And Thanks. working guys Lorin QX? you Look Kevin outage Good are what it what Cote the and on with aboard. Lorin to morning. forward and cost you Blanche in the welcome in cost you will again. guys QX quarter just

. Lorin Its David. Thanks,

at inflation product about about related and would costs that that say the in balance you As costs reduction relates say the to now has it. I movements. of a those guidance the relates be which product million as $X Of hit XX% $XX about or sell spread and the the to I quarter would midpoint costs. embedded the And touched product throughout will million that two-thirds it you it's million we related about in to our movements and think higher $X year about was on. to volume third XX% And

not you're out CapEx. good. $XX the just Very What that was you've What now? million to pushed tied And was on reduction? that

Would Dave. repeat? you sorry I'm

you reduction? to what On projects that or the $XX achieve by have deferred reduction delayed CapEx million

their a that make This would extent that decided just business we sort very the day-to-day. we like made that the is reduced those of but We Kevin. off of types reduction on continuity jeopardize to of on nothing discretionary. based bit to a it David. of They Hey, had would handful costs of the afford projects guide kind we that on could things sense the push sense felt little were a efficiency

million. do where able add time also of is business periods be on been you lower if But over CapEx around would CapEx We you has at know as to that top to just to that. now by support much supported this have than I CapEx of $XX the able today. David, look are at And historically this of been business it's long itself comfortably levels a we lithium

very much. you Thank

Thank you.

from Please Your next Sachs. go comes Goldman from ahead. Bob question Koort

This Hi. is In be? business C&I expect broad-based how Kech, sticky guys to Bob. mentioned the Emily the price you on for do increases

Yes take historically lot have that. for we've the inflationary through sure. it sticky. and when customers those experienced of Pretty to a to pressures sticks interesting It's I'll our opportunity pass long-term. we on

And rates retain would causing are for example, to start freight that. so and other fall typically costs higher we disruptions if that

through through of to couple those create years Now We improvements tracking great significant we and relationships. score. made do lot customer lot that lot a customer caused opportunity a we've really spent more and value relationships. over And of last a net stickiness of promoter time our that's the of customers in creates really

where to expect we forward. going across those in groups improve all we and stay So product place pricing can

more. Okay, during talk great. the inventory levels quarter? to you And then Could manage about just guys actions one taken

are upcoming the is season. have building Well quarter working inventory ourselves order the historically position this where quarter we just for the winter to is we where highest capital amount of in we closed, generally

there's And if don't so that's pattern. add. anything our more typical know, to I

Anything unusual?

unusual Nothing, typical seasonality.

you Great. Thank

comes next Your Goldstein Please question from Morningstar. go Seth from ahead.

Hi, taking my and morning, everyone, question. thanks good for

XXXX, does in in clarify snowfall and or winter early is based guidance January to the start we had the Midwest weather updated it in Just that factor February? to on the strong average

normalized midpoint January season the weather so assumes on. from the the guidance Yeah, for at

our experience through midpoint experience February that not et December. does through so reflect It And January, our reflects cetera.

And so that's what that midpoint anticipates.

notice wider than guidance it If has our the guidance, you is at the look of been past. width you'll the in

winter normalized the snow deviation levels you've normal that a standard higher have to a and than of reflect or at snow of days. a lower got you of so either either roughly midpoint than normal And on side on days level side

would amount I add have still of are off of start. pretty part fair just But that good a a Seth, left. we to winter and February first January

to we call go it year. land. kind start it, normalish. to winter a good we'll lot left of, and where got fact see Again In we calendar the But still of I'd

timeline Okay, process, And you the update the production the brine restored with great. clarification. be will I is us then appreciate you expect on when SOP fully or to an still ongoing work-in-process? for that

of out doesn't a Seth with pond. Kevin his does times sure. it's but coming Lots is of it George view affect What our brine -- process. been Schuller. Yeah, from again an we production, kind the drought have point as drought, west of affect in comments this pointed what in in ongoing necessarily we our

a are making can tell the But done going Again we're doing to you kind seen I couple that at sure back out give us forward. literally say normalized now future. drought last improvements confident to get to see to that things we're an the have we improve that absolute far we've of to in our ourselves date and making that track back well of What you have over that hard in we I efficiency long-term. sure make sure embed to we'll us years, to I some site the place as be that. It's on to we go reestablishing lot feel we pretty in that regards right me that's as -- for a do we've production. for what So there processes guess the

Thanks for Okay, questions. great. taking my

Thank Seth. Yeah. you

go question ahead. Chris from from comes next Monness Crespi. Shaw Your Please

How everyone. doing? Hi, you good morning are

Hi, Chris.

you the the lithium timeline -- decision decision partner asset. also the the -- been or it's of DLE the like which the out And It XXXX the just on sounds it for like playing three Just suggesting maybe on laid seems paths provider. on date out. are summer the

that? so bit. why reading And if pushed pushed back timelines? right that You take in been Am has I back is a

think don't pushed timeline all. I the No, we've at back

last the estimated on on summer cost maybe actually around results as we DLE testing think when point to FEL-X show going referred do think we going the provider call the a would up plus selection to where up we to we're level, at where I a curve. reveal we're the FEL-X CapEx show

think, we standpoint, we're last in everything with right I quarter. from So, our said consistent tracking the

our the path forward line get be common to that's in a you X added we deck. with slide Kevin share questions said just We to be? on earnings call. And what have what I'm right is intentions one of it'd why thought But our it's on what with slide And the last of are. helpful we to going the the that slide around say

Right.

I You misremembering last that of that push the remember all Maybe I done timeline? it -- call the just you've back you was that, or that just was it? forgot

We didn't Well, this When within give we period time a investigation. would se. we never But to July, per of what that yet three we we we've different announced would about intensity of conclude call, a operating that apply say the by on last we shared investigating some Kevin be allow time, paths. position in did timeline our our talk to net to sort able that summer, this in value should which a capital be investors to this it. be share to we'd gave asset, present around

right. Right,

Okay. I so all That's had. Thanks much.

Yep. Thank you.

go Markets. Please Joel next from comes Jackson question ahead. BMO Your Capital from

questions. for on Chen Alex Thanks for Hi. This Joe my taking is Jackson.

how CapEx know to I lithium develop the about the you impact will weaker equity the and raise $XX bit on provide Are to outlook odds increase urgency Fortress might project? year? projects the the you million. to more does to this Compass able that these So Because specific timelines color progress need a earlier, the an talked reductions this

two ways. that in address I'll

a in is CapEx. a We've advance not that. in not it the numbers. with lithium CapEx in our an dimension When investment is provide not reduction entail done of part And the that the of adequate it that think about our and to capital of should initiatives. million does CapEx, our made reduction Fortress to its you included $XX Fortress

pace plants to reduction his CapEx that regard the on and proceeding impact not pilot the are so and Chris CapEx with And of budget. does aspects team lithium-oriented our

As prudent here I forward. and of about far XX is And been confident path find capital. and the days forms be path funding, will encourage our as regard guidance lithium. a it about our way implications I think to have forward the for with on you our to able and have that we would that to three I'm thought

The And we're We're of of how the cash of going order Nutrition million. that when of free the thinking earning flow. we're free $XX wake under magnitude about first frankly capital on significant is The one under And today is restore off the the flow. restore of next we we couple possibility form cheapest up earning. over business. do business that do free to of salt extent And we that's flow our to and our the Plant profitability throw cash cash years.

capital is offtake form often prepaid see what agreements. lithium you of connection with in with second capital The companies pre-revenue

an agreement are interest don't shortage sort. and be there'll dialogues, of we Chris as the we team any some chose And so engaged pursue in to offtake think of that extent to his

do, the asset to form of that not third equity I private take you encourage asset see companies equity would The you at at but level, pre-revenue level. lithium is, through level, Compass the also about the is, which what capital strategic at think

any And interest don't we requirement. so that a there'll extent shortage attractiveness to of this backdrop again, the given and the think of that the asset, be became

way that have And made. go a But we advancing that's find this the a thinking say allows to mean, that if I we path credit about us initiative, I prudent when we path direction we're chose maintain decisions still think while to into. will so, the been that, profile, that's forward. things, our no And

clarity. to the need far might achieving so Great. Thanks looking per second is is the not that snowfall cost my mean for company achieve? ton question that Goderich if below Will regard to the strategy, that even winter. the production reconsider with this And targets Compass average to

question. Yes. Good

we that got I we'll add also just team to want winter approach really I out would let play well. George we've emphasize that And really, and once that do Goderich. Goderich But think running about inform have take will a this think, I to first. balanced how we that, finish we to be. with of up is the whimper, match we take set we going our I demand anticipated to a prepared it If adjust bid was to steps what kind season. strong, And are we're whatever to if think, season. think necessary this production for good finish a

to So to calibrate wants, market opposed what we trying we're building it. in as to the think overshoot that flexibility

Perfect. Thank you.

David from comes ahead. question from next Silver King. go C.L. Please Your

Thank Hi. you. Yes.

couple a So questions. of

you first little DLE a the ask selection to question of about process. like more think the I the bit maybe I'd

timing. firstly, the So

you other level words, timeline the composition earlier regarding automation summer. of noteworthy? decision the that In words, that think changed, I'm the of kind that strategic other your And of, just beginning aspects at or are comments secondly, itself, maybe extracted brine, be there your evaluation? peculiarities In of three might specific other point six lithium project the is say, must And the elements months the from sooner that let's process than anticipated say, maybe was any, in to tweaking decision purity last get the or are mentioned process, then in process the that be standard months? is this words, other you wondering So let's over forthcoming to you're trying a In you Thank specific ways resource? or the on based or this the relatively are for? you. significant the has

huge to the the able that respect I'll have questions. if and we'll that DLE do right. want selection time mid-summer those wrong, we that the DLE, get announce and is a necessary, to to the one. take and discuss through but And to a continue is provider, be a get you're take whatever it in this Chris But going we position look, for by of be one believe decision you But, that's with to Thanks go just selection to let to the you've make what to second continue problem. externally. first got because think test, we'll I and I'll

it position second And the announcement. a let take based long that then it make summer that I we're Chris we'll that on And in the one. will be think to-date progress that that's we I'll technical. sometime question, tackle testing takes. as the your technologies as in So, But pretty feel to a on

Hey, thanks Kevin.

So David standard. DLE. itself, the that I looking process it be of going on the the is the conversion say process at into regards DLE pressing very it would the would to process, with the portion After

all So have brine your well. into you when match of is and one you look DLEs equal. DLE DLE brine the as to to not are consideration that the not is And all at equal you take technology things the that

so certainly a is doing. what And And high we been is high of we've to have look do of a magnesium, we in at one things sure rejection that recovery higher make of that that the we that's we And want have magnesium. brine lithium.

question, lower general but to on and from there Does would ratio. then get parity your parity magnesium-lithium get to you is as impurity goal on that is try a process David? conversion close will as we magnesium-lithium the be So to much pretty the We process. answer love to

I'll for Yes. that. concentrations magnesium That research more great. No. I was on that you Thank things. little pointing you. about do out. But wondering and honestly a was thank

and Second question covenant to I flexibility relates of have financial situations. kind

if any main kind with credit clear any financing as trailing of a mentioned, little my been lot another needed more next in there under case, tracking meeting just a you are the of and And current quarter And guessing, this flexibility maybe earning XX quarter. TTM but that that levels I out are be this down just key or and So, your your for there went mean the of your covenants of adjustments months on will you. step was related is to down covenants need here. EBITDA the it Thank perspective, kind from to -- to steps terms agreements? a the

thrilled David would understanding is our strong question. Yes, and we're very been bank business. thanks that blessed have many, first have for of years of I What the has to say all, over group supportive to and a many

headroom? to you way any those covenants. say think is that think the midpoint the say midpoint guidance to would approach the of what And right at need start would you guidance, sort at that it of of your about is I we think I do to our

business is a things where able couple has of that itself are historically a of of. levels we this that you below CapEx off today. again considerably there's However, One, are been I'd sustain remind to

to And within our the circumstances extent so brakes something that well that's we on further the could tap control CapEx. suggested,

is quite at focus strong in business got we reais and in our much that I'd was today's associated earning The I of business expect year is Brazilian potential terms coming But supportive when And the that's blessed we'll also we broadly leadership year, its have be. it we that as in end mid-teens would the time think most ICL had I through this ability below to think speaking is our for earn-out. are capital. with receive that that the group we've from the as potential. on quarter, this will had exchange And we very are And to team X/XX capital will close a a recent within to that, it. last what That in was That a in extent what heavy drag rates books. second to By But be not months, this the say working we could quarter, quarter. know thing covenants. this of its Nutrition. restoring it manage of say think I during the and an earnings bank salt executed for we the it. Plant the stay earn-out pretty we proceeds sale also that working

believe of $XX million announced the right? that the ballpark? that. earn-out Maybe about or was for Thank price you The Is so. I X%

Yes. About million. BRLXX BRLXX million.

Right.

about it's So today million $XX their subject to but performance. that's

the salt Okay. I'd with kind do opportunity. in more, you And this to like squeeze of if to mind. one don't marketing has

radius I or maybe that out to globally? kind about over beyond opportunity the let's and you markets salt squeeze incremental my a one lot the at next bit strategies and where long-term going goal annual competitors how their over assumption And able or say is provide is basis. above marketing supply what's two on a the are and is longer a of let's bidding two. year things Compass wondering Goderich what or of that view a And that. structurally But larger overall about some on might multi-year there's kind program or know little we mine this happened But mining the a freight of quarter. an market of offshore widen no year say, your things amount So last towards volume conclusion to operating working am

to other of forward of a clearing the puzzle So rates say freight way may and that Goderich kind or is volume production? is increasing that, structurally piece be higher you improving going factors the the anticipated that might structurally maybe sales the for

with. there do there for we even that that We few some aspects exceeded but it our want want pressures your into those to in to question number But of built that. in I season to and we caught color. bid what are this additional got address recover upcoming inflationary they pass some plan Jamie I'll Yes, one is of some them

So in footprint when The want that recapture rates is ability to we that. transportation to transportation business. And your this high stretch limits factor limiting have. the are a it real you

a So we may have salt to as take adjustments. at operations portfolio. our We look

moment, for demand value We you -- rates the with penetrate so impairing balance that like the it pretty our want be do imports what to to rates. historically. you're think to. ability you volatile monitor fair would are best places that or highly to and secure case their the to can be attune But could US The we seaborne make imports. is could at that cheaper stable. market something in to in the the think to with hasn't asking transportation in various tends a volatile they're been transportation at that And date very the yourself, about we get can cost than given it'd that of that we obviously we products. that It's extent be heretofore fashion world to the So what basically which least they try be the anticipate respect to pretty we have and product production inflated then is at we I the

on act something want nothing So it but it we watch color to is Do that, there any to Jamie? add you far. so

imports wise. important are prevents And rates like European effectively. from with penetrating cost rates prevent and and also salt Plant business. see SOP products both into Nutrition shipping US shipping our International the important. ocean We to does really higher is us. the competing to It It from coming

into the Avery going go And optimize value the mentioned the assess as strategy our of And US and – go is and up are mentioned transportation as portfolio dynamics those set bodes all every as our the as in that think season bid mine Island improvement market. value We'll unfolds. of and and that these down we well for then bid So many time season. combination the our some we well tremendous itself for particularly of amount Kevin as demand see you winter shutting earlier, the XXXX. interior to we inflationary mine we drive supply a recapturing how will through of we costs

much. That's great. Thank you very

Spitz from Your go America. next ahead. question comes from of Bank Please Roger

much. very Thanks

And due all to your XX%, that you be call? mean as mostly up salt of from gain about so due I on – or share regarding from that Avery volumes the take that just market So last your – to to if want the clear think island you American competitors? other North lot or I spoke a was you cargoes was mine share shutdown, did

Yeah.

season. So yeah, this bid our commitments were in up last significantly

territories So that of is absolutely our we're part is Island us, some part for but higher related yeah are that related, commitments. serving newer to of it Avery

$XX your salt of fiscal you of a million is spending that COGS salt see in release sales. it. and salt and QX press I shipping have that? What shipping – Do as handling? And the was or handling Got XXXX percent that in was XX%

Director Compass Minerals President CEO International and Inc. Shipping handling - & costs.

that number. have I don't

I from separate our the as item can total yeah, of – line of we COGS. is shipping cost, you a see costs unit mean, So kind

separately. a Salt see quarter was was on $XX fourth and So you about we shipping per price cost unit for costs and And all-in $XX. have handling shipping can ton. gross and about the $XX our handling was basis our

it in third about COGS cost, a – of combined total So quarter quarter, and our handling. you our it's and shipping our the was December first if

by American methods do vessel it. And which various North probably then you. freight, for what Got you I guess have

of set talk your of should highway deicer different say, – for contracts or you those How salt? you contracts? modes transportation shipping How are can I reset, have? for often the Sort about prices the long

barge. varies across into multi-year enter the on typically We it agreements modes. So different

can -- years, vessel are agreements Oftentimes five Sometimes inflationary it depends. they have in seven be years, built inflators.

get some not we but the it's to a We spot set. broad do relationships serve. We you mixed to pricing, tend shipping as with bag truck, across As do geography that in season. it's have

spot Trucking everybody is of experiencing a more We're else's. probably cost like a year-to-year. type just pressure of range

it. Got

question truck about So, where because is, up freight based costs of guess you things diesel depending I last and like that the more move percent presumably think salt going what it's for that sort deicer, it's when to that? spot down and on like for of of my season and is it's versus season sounds your more the sort known, on contracted

Yes.

winter. And customer a than you to a line it. -- call to as we last sight we tell it, depot barge. unit mile ship during as and -- a good the on summer, that doing depots, produce a on will is We're significantly unit when And or ship basis that's on the we we So, of delivering vessel. we'll vessel truck we're from that and I on more and you're through salt mile delivered have our the while barge mostly exposed the expensive

somewhat that's side. unanticipated that It's So, for winter the season. of some what drives talked that we've this expense was as truck about

ahead. Baird. question your go from comes And last Brian from Please Dirubbio

morning. Good

I on give the particularly experienced, you you Was in my question. more you've some granularity segment. hoping first the salt pressures cost answered could that partially think inflationary and So

part? was So with did right I you hear primarily it trucking the

I been trucks. multi-year escalators component known to that fuel with barge Like truck Truck will. a are in most those But Yes. and is there on agreements impactful has and if there. surcharge fuel you said related vessel,

So and availability. much absolutely as it's truck,

So trucks. find the we paying up to higher end rates

there ratio this XX:X availability in load is of because So to a nationally truck US. the

quite to So that season. impactful -- everybody obviously this experiencing was our be is this impactful winter our results results and will to

costs. And pallets Jamie, our that cost well. pressure We've the to pressure in literally some that seen as bags one those to question. everything I related input just guess inflationary input we of have around inflationary that's

Absolutely.

those Got company experiencing it. is the same. and everybody misread Unfortunately

one part the on final Just truck.

so So surcharges long-term hit just be because have got arrangements, encountered. even just to pricing the clear though various Is you with basically you that all just correct? of that issues you

Yeah.

truck from on year-to-year side. of do In as don't Kevin we its it's shifts much. kind We around. lot have portfolio a as So of certain the year-to-year, But some said. agreements Remember, year-to-year. have markets, our multi-year

different to we it. to we're headwind of things We facing And around lot of availability. truckers flip get So mitigate a do really just do this need in things geographies. to We national manage different get the But where that truck to try have up that pick and salt, we directly doing work. exercise. minimize we can. customers can we so And It's to we a don't geography-by-geography impacts. everything we're

then just final And a me. for Understood. question

about given of should headwinds facing, are say Just the season? the upcoming bid -- sort next you I approaching the or you're thinking how

Yeah.

can from that at on so we to will again, markets or perspective, portfolio natural us side. make our so we we that And achieve to serving fair as to least think think we are about natural we'll that take look we're I have sure the finish and not then see want degree markets Jamie value us. and And that to supply margins that a that aren't demand we mentioned, drive salt balanced how at that our and appropriately to up. ensure the serving

that one. the price permits couple inflationary early pass and we then and and will that incurred to sure, what update you we've too would goal just costs be for the we in -- these that predict. next it's that months the raise looks beyond like, market So will to those of extent on the But recover on to

need way, another put guess to do? at those mine full run maximize guess which per anyway. your got I the Somewhat mines as profitability as it. Got to a preference you you sort or pretty can rate you high it of is I to to customer, run

a always But end flat-out. to you kind either. at the Look, of the run mines want want overshoot your day, to Yeah. don't market you the of

achieving extent, the and fair market match for to between a to demand. fine the our to supply the balance good it's got make stewards at So But of value we've being and adjustments level mine products.

to that. we We And can we and are well. efficiency that ways prepared absolutely as have maintain do good do that

turn And the question I further call there no remarks. over to presenters the will for are closing this time. back at

as Thanks We we what continued towards again is to you really an exciting Minerals. soon. forward engagement your believe everybody appreciate we to for participating We talking for today. work future Compass look

conference today's call. concludes This

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