Compass Minerals International Inc. (NYSE:CMP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 10:00 am ET

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Compass Minerals International Inc. (NYSE:CMP) Q2 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Good day everyone and welcome to the Compass Minerals Second Quarter Earnings Conference. [Operator Instructions]

At this time, I'd like to turn the call over to Ms. Theresa Womble Director of Investor Relations. Please go ahead ma'am.

Executive
Theresa Womble

Good morning and welcome to our call today to discuss our second quarter results and rest of 2020 outlook. We will begin with prepared remarks from our CEO, Kevin Crutchfield; and our CFO, Jamie Standen. Joining in for the Q&A session are Brad Griffith, our Chief Commercial Officer; as well as our Chief Operations Officer, George Schuller. Before we get started, let me remind everyone that the remarks we make today represent our view of our financial and operational outlook as of today's date August 5th, 2020. These expectations involve risks and uncertainties that could cause the company's actual results to differ materially. A discussion of these risks can be found in our SEC filings located online at investors.compassminerals.com. Our remarks today also include non-GAAP financial measures such as adjusted EBITDA and free cash flow. You can find reconciliations of these items in our earnings release or in our earnings presentation both of which are also available at our Investor Relations website.

With that housekeeping out of the way, I now turn the call over to Kevin.

Executive
Kevin S. Crutchfield

Thanks Theresa and good morning everyone and thanks for participating today. As reported yesterday in our earnings materials, we posted very strong second quarter 2020 results with both operating earnings and EBITDA growth well ahead of expectations. This was achieved through robust year-over-year sales volume growth across all three of our business segments and strong execution within our operations. And year-to-date 2020 cash flow from operations totaled $233.9 million up nearly 110% compared to last year's first half. The strong performance we accomplished in the quarter achieved in the face of COVID-19 pandemic demonstrates not only the essential nature of our products, but also the resilience of the core markets we serve. Of course none of this would have been possible without the deep commitment of our employees to safely serve our customers' needs and execute on our strategic initiatives. And I'd like to take a moment to thank them for all they contribute toward the success of our essential business. From those who work in our underground mines our packaging and processing facilities or who have been working remotely at our customer service or corporate support functions, I've been deeply inspired by the commitment they've shown to our customers and our company.

The ongoing threat of this global pandemic has required careful analysis and implementation of numerous additional protocols across our operating platform to ensure the safety and health of our people. Their well-being remains our paramount concern. Because of the efforts of our employees, we've been able to maintain production across our global operations in order to meet customer demand for our products. While our U.K. mine was idled for a portion of the second quarter due to a combination of lower expected demand due