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AUGUST 8, 2002 OVERLAND PARK, KS, August 8, 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 June 30, 2002. Operating earnings were $4.5 million, and consolidated EBITDA was $15.8 million for the June 2002 quarter. Consolidated EBITDA increased $2.3 million when compared to pro forma consolidated EBITDA of the prior year. For the six months ended June 30, 2002, operating earnings and consolidated EBITDA were $32.0 million and $54.9 million, respectively, on net sales of $176.0 million. In the prior year period operating earnings were $45.0 million and pro forma consolidated EBITDA was $60.7 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. "Our non-deicing salt product lines have continued to show improvement year over year, as demonstrated in the June quarter," said Michael E. Ducey, President and Chief Executive Officer of Compass. "Our business has done a remarkable job of implementing the cost reduction programs we planned following the mild 2001/2002 winter season," Ducey continued, "and since our refinancing in April we have voluntarily repaid $20.0 million of the $150 million bank term loan, and have announced our intentions to voluntarily repay an additional $10 million of the bank term loan this month." The higher consolidated EBITDA for the three months ended June 30, 2002 was primarily due to higher prices and improving the product mix to higher value products in the General Trade salt product line. The lower consolidated EBITDA for the six months ended June 30, 2002 was driven almost entirely by winter weather related product sales in the March quarter. Annual highway deicing sales volumes were lower in 2002 than in 2001 in both the U.K. and North America. This was partially offset by an increase in prices of all product lines, primarily in North America. Net sales for the six months ended June 30, 2002 were $176.0 million, a 12.9% decrease from prior year pro forma net sales. 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. Compass Minerals Group Combined and Consolidated Operating Results ### |
