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NOVEMBER
7, 2002 OVERLAND PARK, KS, November 7, 2002 - Compass Minerals Group, Inc., a leading producer and marketer of salt and specialty potash, today reported its financial results for the three months ended September 30, 2002. Operating earnings were $3.5 million, and consolidated EBITDA was $16.0 million on net sales of $69.7 million for the September 2002 quarter. Consolidated EBITDA increased $6.1 million when compared to pro forma consolidated EBITDA of the prior year. For the nine months ended September 30, 2002, operating earnings and consolidated EBITDA were $35.5 million and $71.0 million, respectively, on net sales of $245.7 million. In the prior year period, operating earnings were $47.8 million and pro forma consolidated EBITDA was $70.6 million on net sales of $265.9 million. Compass Minerals Group was a wholly-owned subsidiary of IMC Global Inc. through November 27, 2001, when a controlling interest was acquired by an affiliate of Apollo Management, L.P. in a recapitalization transaction. "I am pleased with the Company's performance during the third quarter of 2002. Throughout the quarter we experienced sustained improvement in our non-deicing product lines," said Michael E. Ducey, President and Chief Executive Officer of Compass. Mr. Ducey added, "These improvements, combined with lower overall operating costs provided a marked increase in consolidated EBITDA for the third quarter as compared to prior year." "We continued to successfully implement our previously announced cost reduction and capital spending programs. These programs remain on plan for the year. As a result, we voluntarily repaid another $10.0 million of our bank term loan in the third quarter. This makes a total of $30.0 million of voluntary repayments for the year." concluded Mr. Ducey. The higher consolidated EBITDA for the three months ended September 30, 2002 compared to the consolidated pro forma EBITDA for the three months ended September 30, 2001 was primarily due to higher prices in the North American highway deicing products and General Trade salt product lines, combined with higher volumes in the sulfate of potash product line, and improved operating costs. These improvements were partially offset by lower highway deicing volumes. The improvements in the third quarter helped push consolidated EBITDA for the nine months ended September 30, 2002 just higher than consolidated pro forma EBITDA for the nine months ended September 30, 2001 notwithstanding the lower winter weather related salt sales volumes in the March 2002 quarter. Net sales for the nine months ended September 30, 2002 were $245.7 million, a 7.6% decrease from prior year net sales, due to the milder winter weather in both the U.K. and North America. However, this has been completely offset by an increase in prices of all North American product lines and lower operating costs. Compass Minerals Group is the second largest North American producer of salt, the largest producer of salt in the United Kingdom and the largest North American producer of sulfate of potash, a specialty fertilizer. Compass Minerals Group is 80.1% owned by Apollo Management L.P. and Company management, with the remainder owned by IMC Global Inc. Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the statements. The Company can give no assurance that such expectations will prove to be correct. Factors that could cause the Company's results to differ materially from current expectations include: general economic and business conditions, industry trends, weather, raw material costs and availability, changes in demand for its products, actions of its competitors and the additional factors and risks contained in the Company's S-4 dated April 23, 2002. Furthermore, we do not claim or represent that the pro forma information presented is indicative of the results that would have been reported had the transactions actually occurred January 1, 2001 nor is it indicative of our future results. There can be no assurance that the assumptions used in the preparation of the pro forma financial information provided below will prove to be correct. The Company's performance, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA), is used by management as an approximate measure of cash flow generation. The Company's calculation of EBITDA may not be comparable to the calculation of EBITDA by other companies, and it is a non-GAAP financial measure. Compass Minerals Group Consolidated and Combined Operating Results ### |
