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Compass Minerals Intl Inc (CMP+0.94%) has filed its Form 10-K filing for the fiscal year ended September 30, 2024.
The filing details the company's operations in the Salt and Plant Nutrition segments, highlighting a decrease in total sales to $1,117.4 million from $1,204.7 million in the previous year. This decline is attributed to lower sales volumes in the Salt segment, partially offset by increased sales in the Plant Nutrition segment.
Operating loss for the year was reported at $116.8 million, a significant decrease from an operating income of $77.4 million in the prior year. This was primarily due to impairments related to the company's lithium development project, the Fortress business, and the Plant Nutrition segment.
The Salt segment experienced a 10% decrease in sales to $907.8 million, driven by an 18% reduction in sales volumes, though average sales prices increased by 9%. The Plant Nutrition segment saw a 5% increase in sales to $181.0 million, despite a 16% decrease in average sales prices.
Net loss for the year was $206.1 million, compared to net earnings of $10.5 million in the previous year. This resulted in a diluted net loss per share of $4.99, down from earnings of $0.25 per share last year.
The company reported Adjusted EBITDA of $206.3 million, a 4% increase from $199.1 million in the previous fiscal year. This was aided by a $22.1 million gain related to the Fortress contingent consideration.
Compass Minerals has identified multiple material weaknesses in its internal controls over financial reporting. These weaknesses are related to the risk assessment process, information and communication processes, and process-level controls.
The filing also discusses the company's strategic decision to terminate its lithium development project and the resulting $74.8 million impairment charge. Additionally, the company recorded impairments of $51.0 million in the Plant Nutrition segment and $32.0 million related to the Fortress business.
Looking forward, Compass Minerals expects Salt segment sales volumes to increase by approximately 9% in fiscal year 2025, with adjusted EBITDA projected to range from $225 million to $250 million.
The company also anticipates Plant Nutrition segment sales volumes to improve to a range of 285,000 to 305,000 tons in fiscal year 2025, with adjusted EBITDA expected between $14 million and $20 million.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Compass Minerals Intl Inc annual 10-K report dated December 16, 2024. To report an error, please email earnings@qz.com.