Good morning, and welcome to the Compass Minerals Third Quarter Earnings Conference Call. All participants will begin in a listen-only mode. A question-and-answer session will follow the presentation by management. Today's call is being recorded and replays will be available on the company's Investor Relations website. I'll now turn the call over to Theresa Womble, Director of Investor Relations. Please go ahead.

Good morning, and welcome to our call today to discuss our third quarter 2020 results and rest of year 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 George Schuller, our Chief Operations Officer. Before we get started, I'll remind everyone that the remarks we make today represent our view of our financial and operational outlook as of today's date, November 5, 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 online. With that housekeeping out of the way, I will now turn the call over to Kevin.

Thank you, Theresa, and good morning to everyone. I know this is a busy earnings day for many of you, so thanks for taking the time to join our third quarter 2020 earnings call. As we published in our earnings release last night, our third quarter 2020 results were below prior-year levels. There are several reasons for that delta, primarily related to delayed ordering of plant nutrition products in our North and South American markets. Those timing issues were driven by very dry weather in both Brazil and key North American markets as well as extreme wildfires in the western part of United States. We also reported an unfavorable non-cash inventory adjustment related to an error in bulk stockpile measurement at our Ogden, Utah SOP facility which Jamie will discuss in more detail shortly. Because we expect these third quarter market disruptions to be short-term, I'll focus my remarks instead on our year-to-day performance. On a consolidated basis, operating earnings for the year-to-date period increased 19% and EBITDA rose 10% compared to 2019 results. In addition, we generated over $188 million of cash flow from operations, which is a 93% increase from 2019. These are very strong results given the fact that we experienced a mild winter in all of our deicing markets in the first quarter as well as the operational challenges stemming from the global pandemic beginning in March. We also highlight in our presentation the excellent trajectory we are on in terms of the safety of our employees. As many of you have heard me say before, our number one priority as a management team is ensuring our employees go home at the end of their shift as healthy as when they arrived. Our focus on this Zero Harm culture has been as critical to our ability…

Thanks, Kevin, and good morning, everyone. I'll start on slide 9 with some comments on our consolidated results which were challenged by several factors as Kevin discussed. First, sales volumes were lower in each of our segments versus the third quarter of 2019. However, we're actually performing quite well on a year-to-date basis due to a number of timing issues across all three segments which pulled sales into the first-half of 2020. Salt segment sales volumes are down just 9% on a year-to-date basis which is more than explained by the weak winter weather we experienced during the first quarter of 2020. As a reminder, first quarter 2020 snow events were 24% below the 10-year average and 30% below 2019 levels. This weak weather caused customers to take their minimums in the second quarter and therefore put pressure on our third quarter early fill orders. On a year-to-date basis, Plant Nutrition North America sales volumes are up 20% versus the 2019 period, which you may recall was very challenging due to the excessive rainfall in our served markets. Our Plant Nutrition South America segment generated a 5% year-over-year increase in sales volume on a year-to-date basis as strong and early demand for plant nutrients in the first-half of the year offset third quarter sluggishness. Our third quarter Salt operating results helped offset the lower year-over-year third quarter operating earnings and EBITDA results in both of our Plant Nutrition businesses. Lower year-over-year third quarter sales volumes in both Plant Nutrition segments and an inventory adjustment charge in the Plant Nutrition North America segment were the primary drivers of the decline. Despite the challenges we faced, we delivered double-digit consolidated earnings growth as well as strong free cash flow of $126 million through the first nine months of 2020. We discussed our…

Our first question comes from the line of Mark Connelly with Stephens. Go ahead please, your line is open.

Thank you. Kevin, you've made a ton of changes since you arrived at Compass, particularly at Goderich but also in Ag (00:26:42). So I was hoping you could talk a little bit more about the progress you're making with Goderich because you've got a lot of different efforts there. I'm wondering if you could help us understand where those stand? And on a related note, we've now seen two smaller US salt businesses agree to change hands at prices that are far higher than what people are paying for Compass. Is there anything about those assets that suggests they're more valuable than your Salt franchise?

Hey, Mark, good morning. Thanks for the questions. I'll talk at a high-level a little bit about Goderich and I'll look at George to see if he wants to add anything to it. But I think just from an overall standpoint, we feel really good about where things stand at Goderich; the continuation of the development of the long-term plan, long-term mine plan continues kind of on schedule. We're working on our East built-for-purpose roadways to get that western area opened up and develop some new mining rooms. We've got the new CM-46 (00:27:44) on site now. It will be taken underground in pieces, parts and put together and should be operational I think by – certainly by the end of the year, maybe even sometime in December. So we feel really good about how things are going at Goderich. It's producing much more consistently as the evidence notes in the material this morning. Volumes are much more consistent, they're much higher than where they have been. We're seeing the cost effect of that and I think I would be – (00:28:17) not to talk about how pleased we are with respect to the safety effort up there and the relationship that we have with the local union on site. Things are going overall pretty well. We still have a long ways to go. We're not at all satisfied with where we are. We still have a long ways to go but overall very pleased. And I'll look at George to see if he wants to add anything to that before I hit your second question.

Yeah. Thanks, Kevin and thanks, Mark. I guess just maybe a couple of things as Kevin hit most of the highlights. Again, it is really around optimization as well around our mechanized mining and what we're doing with some of our maintenance practices. Again, it's taking a long-term look where we used to be a drill-and-blast operation where we went to mechanized mining and really trying to find those opportunities. As Kevin highlighted, we started with safety as a foundation. Clearly, our workforce, our leadership team there is really making some really; I would call it, giant steps. We've got a good experienced workforce there, so there's a lot of things that; compaction steps being opened as we start to go into the fourth quarter as well. Basically how we look at our ship rotations, those types of things. But you can probably tell from my tone and I'm pretty upbeat on where we had been and where we are and where we're going to continue to go. So, thank you Kevin.

Yeah.

George, are you done with your compaction project or...

Yeah. Sorry – sorry about that, Mark. We're not quite complete. I mean we actually have it in, we're operating and what we're doing now is I guess, I'd call it, optimizing. So we're probably if I was going to tell you at about 90%. That's probably where we are, just an optimization. So it's kind of tweaking a little bit to make sure that we get the right-sizing, the right material going through. But I'm feeling pretty good about where it's at and where it's going to continue to go. Thank you.

Sure. Thank you.

On your second question, Mark. We've obviously watched the shift in the Salt landscape pretty closely and followed the last process pretty closely. And obviously the Kissner consortium is a very well-seasoned and very well-respected group and they were clearly in it to win it. And when you look at the valuation at a headline level, it certainly – it looks rich and I think it does point out the difference in the way the public sector views quality Salt assets versus the way the public sector values them. But I also think that they probably made some (00:30:49) I guess I'm just speculating but made some adjustments for the weather and I think they see some pretty significant cost-out synergies. So I don't think they view that they pay the kind of headline multiple that everybody else is talking about. But you're right. It does point out a pretty significant difference in the way private markets view quality Salt assets versus the way public markets view them. And I guess my view is all boats lift on a rising tide and I think as we continue to put runs on the board here that we'll see that multiple valuation improve on the Compass equity as well.

Thank you, Kevin.

Thank you, Mark.

Our next question comes from the line of Vincent Anderson with Stifel. Go ahead please, your line is open. Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: Yeah. Thanks and good morning. Nice job at Goderich again this quarter, just trying to true-up my estimates. With the quarter up 53% year-over-year, where does that kind of leave your run rate relative to your near-term targets?

Just particularly about Goderich mine Vincent, is that what you're asking? Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: Yes, sir.

Yeah. Yeah. So, we've still got a little bit of room to run. We're very pleased with the rates we are producing. It's hard to put it as a percentage of where we think that asset can be because there's a lot of upside from here still. But I would say – I'd say, we have significant upside but we're very, very well-positioned in terms of productivity and production versus where we had been historically.

Yeah. And I would add to that too once we get this new unit underground and installed, we'll see another appreciable bump in production, consistency, reliability. And as a – you're all probably getting tired of me saying this but I think by the time we get done with Goderich, we'll run out of market before we run out of capability at Goderich, and then it will just be then a function of fine-tuning Goderich and then calibrating it with the supply-demand balance and not trying to force tons into a market that really didn't want them. So that would be a high-class problem, first-world problem when we get to that point and we're excited on the trajectory that we're on. Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: Perfect. And you kind of addressed this earlier and forgive me if I just didn't catch it right, but when you think about what you saw on the last legs of this bid season, did you pull up on the amount of tons you were trying to place or did pricing just kind of start to come down at the tail end as maybe people you took share from earlier in the bid season were scrambling to place volumes?

Yeah. Look, I'd characterize it and let Brad comment on this too, but I'd characterize it as, as the season went on we maintained our discipline, looked at it from a cost production standpoint of what we thought the price might go for and there were just some things that we elected not to pursue. We bid what we thought it was worth. We did win; sometimes the best deals that you do with the ones that you don't and we were okay with that. So we still were able to call back about 4% market share which is down a little bit from where we thought we'd be. But we ended up – I think we're pretty happy with where we ended up. Brad, would you add anything to that?

No, Kevin. I think you nailed it. Just one other comment there Vincent, we certainly expect the Salt segment to be up in the fourth quarter on revenues versus prior year. And as Kevin said, overall I think we're very pleased with the bid season. We have been able to place more of those low-cost Goderich tons that both Kevin, George and Jamie were referencing. Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: All right Thank you.

Our next question comes from the line of Chris Parkinson with Credit Suisse. Go ahead please, your line is open. Christopher Parkinson - Credit Suisse Securities (USA) LLC: Thank you. So there've been a couple of smaller deals announced in Brazil in both Ag and just plant nutrition; a few let's say comparable substrates. Can you just give us an update on your thought process of the eventual sales of the Brazilian assets, just how should we be thinking about that currently? Thank you.

Yeah. Thanks for the question. Yeah, we noted those as well and we think that bodes well for us and we're just assessing the situation and thinking through carefully when we want to restart the process. That's probably in the not too distant future but we think those transactions bode well for our process when we do reengage and reinitiate, so we're monitoring that very closely and we'll have something to say about that certainly on the next call, if not before. Christopher Parkinson - Credit Suisse Securities (USA) LLC: And just a quick follow-up, just – can you just offer a little bit more color on the general outlook? I know you mentioned it in your prepared remarks but just on freight costs, how should we be thinking about this for 2021 across your different verticals on the US? Thank you.

Yeah. Sure. Let me take that one, Kevin. So as we think about freight the rest of the year, obviously fuel – where is fuel going to be. If it stays below $40, we've got some benefit coming in the fourth quarter this year. As we get into next year, let's talk about Salt. I think we've got – we should be flattish in the first-half of 2021. And then we think, based on some of our enterprise-wide optimization efforts, we'll continue to work those and get some relief in the back-half along with some contractual things we're working through with certain of our suppliers. In Plant Nutrition North America, I think you could expect to see some general inflationary pressure as it relates to freight. Of course, we always have shifts by quarter depending on whether we're shipping more to the east or more to our southwest markets. And then in Brazil, again it's just inflationary pressure and we do see quite a bit of noise down there quarter-to-quarter in the freight line alone just due to customer pickup versus delivery. That can vary. So it's more of a net sales, net price analysis that we do down there. But we would expect again just basic inflationary pressures. Although I would say we're doing a lot of work on the logistics side to give us some upside there or cost improvement in logistics. Christopher Parkinson - Credit Suisse Securities (USA) LLC: Thank you.

Our next question comes from the line of Joel Jackson with BMO Capital Markets. Go ahead please. Your line is open.

Hi. This is Bria Murphy on for Joel. Thanks for taking my questions. With lower awarded bid season volume assumptions and assuming normal weather, what do you expect Salt cost per ton improvements to be in 2021?

So, on a normalized basis, the bid commitments don't have a huge impact on that. We would envision having – obviously the price impact in the first quarter of the year, continued improvement at Goderich. We're not quite ready to put an actual cost per ton out there yet but our goal is to drive into this low-30% EBITDA margins in 2021 and to do that we're going to need to see some significant Salt cost improvement. So until we – we'll talk more about this specifically on our – in February when we talk about the full-year 2020 and give you a full-year guidance for 2021. But it would be a couple of dollars high-level is what I would expect across the entire Salt segment.

Thanks. That's helpful. And then just you mentioned negative COVID-19 impacts from lost sales and incremental operating costs. I think there were about $7 million through Q3, have you made any offsetting COVID-19-related savings. And if you have, are these sustainable looking into 2021?

We've got a number of things that have offset some of those costs, thinking about T&E and just constrained spending through SG&A but we think of many of those costs being offset by our enterprise-wide optimization efforts. So within that number, we've seen a little bit of benefit in our business on the sanitation and the chemical side down in Brazil, but it's not that significant. Most of our offsets there have been just our own internal improvements through procurement, logistics, operations and commercial.

Thank you.

Our next question comes from the line of Mark Connelly with Stephens. Go ahead please, your line is open.

Yeah. I wanted to come back to Brazil for a second. Obviously, with late planting it certainly feels like the sales should have been just pushed back but there's also a compression in the season and does that raise the risk that you end up with a shift to more foliar and would that be a significant margin implication?

Hey, Mark this is Brad Griffith. I think when we look at the drought conditions in Mato Grosso and Paraná state specifically, delaying planting, it has delayed soybean planting by three to four weeks roughly.

Right.

I think, by and large, our portfolio is not impacted by that whatsoever. We are driving sales significantly there. In fact, our B2C volumes, that's our direct-to-farm volumes are up 33% third quarter to-date; revenue is up 37.5% third quarter to-date. So, I don't see any compression impacting soybeans. If anything, there may be a bit of a move on safrinha corn, some of that could be a bit compressed. Our team has been working diligently with producers and some of our online retail distribution customers in preparation for that. So, our intention is to maximize the sales opportunity with several of our products like Poly Blend (00:42:05) and Concorde specifically for the corn crop. So we're ready.

Okay. And just one more question. SOP prices were down which makes sense because commodity SOP was down too. Are you comfortable with the current SOP premium and does the fire challenge in California put downward pressure on SOP prices as you look at 4Q?

Yeah. Good questions, Mark. So, as I think about SOP pricing, you've got to look at a number of factors. First of all, pricing for us in the third quarter was impacted probably two-thirds by non-Canadian and non-US, what we would call export, so products that we're pushing outside of Canada and the US, and also by just dynamic pricing to defend our market share versus imports. It's also important to note that because the granulated volumes were lower for the reasons that Kevin had mentioned earlier, we sold a bit more standard as a percentage in the third quarter than we sequentially did last year. So, all of this those things combined have put a little bit of downward pressure on us. Now, to answer the second part of your question I think it's important to note European producers continue to see strong demand in South America, the Middle East and South Asia, these markets that they have traditionally served, okay? And as you said the MOP, the SOP premium in the EU has held consistent as it has in the States in that $200 to $225 range. So I think we feel good about it. The euro has recently strengthened to the US dollar and freight rates are moving back up which could bode well for pricing in the US as imports look to potentially price higher if they expect to gain entry into the US. Does that help?

Super helpful. Thank you.

Your next question comes from the line of David Silver with C.L. King. Go ahead please, your line is open. David Silver - C.L. King & Associates, Inc.: Yeah. Hi. Thank you. So apologies in advance, I did have to step away at a certain point, so apologies if I'm making you repeat yourself. I had a couple of questions I guess on the SOP market or the SOP unit. First of all, with the variance in the stockpile that led to the $7.4 million charge, back-of-the envelope I'm looking at and if I use a $500 accounting cost per ton, that's close to 15,000 tons, is that kind of the ballpark? And then maybe if you could just comment on over what timeframe maybe that build-up of missing inventory or missed measurement occurred, that would be helpful. And then second also on SOP, if I could just get a little bit of color from your perspective on just how disruptive the wildfires have been regarding some of you're – the agricultural regions. I mean if I think of the SOP going to fruit, vegetables and tree nuts, I mean I'm thinking the fruit and vegetable crops are not in an area – not generally in areas where I would think the fires could get at them directly. Tree nuts or something like that might be a different story. So how much of the disruption might be temporary versus something that really does damage to the trees or the other growth elements of the products that use the SOP? Thank you.

Thanks, David. Let me – I'll take the first part of that and then maybe Brad you take the second part, but you're in the right ballpark, maybe a little bit low on the tonnage you mentioned. As it relates to the time period, this goes back to our expansion at the site. Remember, how we've upgraded that facility to be able to make 325,000 plus the pond-based tons back in 2016. We did that work 2017 with some commissioning. We ran it really hard to test all the systems. So it goes back to that timeframe of when this accumulation of the inventory-linked leakage or shrinkage if you will has occurred. Brad, you want to hit on the...?

Yeah. I'd be happy to. Hey, David, so on the wildfires it's a really good question. That is the underlying driver for what delayed the almond harvest, so this kind of a lack of those sunlight and the drying time and the ripening of the nuts, if you will. When those things were shaken, they sat on the ground probably a little bit longer than any producer would have wanted them to. We're not seeing a tremendous amount of damage. This is still a record crop. Okay. I think that's the important thing to note. These producers are exceptionally resilient. They have still delivered a record harvest profit in terms of volume. So I don't expect – to answer your question, I don't expect any sort of demand destruction at all with harvest being delayed, call it, four weeks, it has pushed the fertilizer application window back a bit. Our customers – our distribution and retail customers in California have been extremely confident that they believe they'll be able to meet that narrowed window, if you will, in terms of helping these producers get the appropriate fertility to replenish the soil from what was a record harvest. I think that's great. You're right on fruits and vegetables; we don't see any real issues there whatsoever; melons and berries. If you think about Napa, Napa has been impacted. I think a lot of the chardonnay grapes came out on time. No impact there. But some of the reds (00:48:47) have been impacted by smoke taint. Anything that was hanging out there while this smoke happened has been impacted and that's going to be destructive for certain wineries and orchards in that part of the world. But again the use of SOP is much smaller than what we see in tree nuts.…

Yeah, I'll – let me hit the last part of your question first. Yeah. We got a new player in there but again what I'd refer back to is these are – a seasoned team that's been in this business for a long time and we've seen nothing that suggests that they're operating to make debt payments or interest payments or anything like that. Nothing but rational behavior, and I think with the bigger transaction that they've just announced they're focused on – okay, yeah they probably are going to lever up but they're focused on margin enhancements because when you look at our margins even before the improvements, we're in the process of making relative to the assets that they acquired, our margins are substantially better. So I think they're going to be focused on that margin enhancement. And one way to do that is not to sell cheap. So I think they're going to behave very rationally in the marketplace. So, no worries and I wouldn't attribute anything to that as being a phenomena in the marketplace we saw. I mean – look, what we did was as these bids came out, we provided feedback that we thought was fair value for our product. And if we win, we're happy. If we lose we're okay with it. So – yeah, I got a little competitive there at the end but I don't have any and don't make any apologies for passing on business that we don't think makes any sense for us. So I'd rather have the 4% of where we ended up rather than that incremental additional 4% at a lesser price. That gives us the opportunity to continue growing our margins after that low 30% – low to mid 30% range that we've been talking about all along. David Silver - C.L. King & Associates, Inc.: I really appreciate the color. Thanks very much.

Thank you.

Our next question comes from the line of Vincent Anderson with Stifel. Go ahead please, your line is open. Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: Yeah. Thanks for (00:52:52) me. I just had one more for Brad. I just wanted to check in on the new Ag product commercialization effort. Maybe, broadly speaking, if you could talk about how marketing to maybe some of the larger cooperatives differs from trying onto the shelves of the more established retailers and just any general progress you've made on that front heading into next year?

Hey, Vincent. Thanks. Good questions. So let me see if I can get after them. So, first of all, let's start with the micronutrients. We've had a solid year-to-date. Our revenues, they are up 26% third quarter to-date. There continues to be good customer enthusiasm for fertilizer additive products like our Wolf Trax DDP and some of the newer nutritional brands like Rocket Seeds that you're referencing. I'm also excited to report that we are launching three new specialty products under the trademark Hydro Bullet in specialty – with specialty and row crop utility. So we're going to begin shipping those now for the 2021 USA crop season for on-farm trials. The products there Vincent, we have Hydro Bullet Bloom, which is the micronutrients and seaweed extracts that are intended to mitigate reproductive stress in the plant. We have Hydro Bullet Battalion; these are all liquid products by the way, foliar products. Hydro Bullet Battalion which is an amino acid-based liquid fertilizer and that is for abiotic stress prophylaxis. So, call it (00:54:31), heat, cold tolerance et cetera; and Hydro Bullet Big Iron. This one we're really excited about as well. It's an IP protected novel delivery technology for iron. And as you know iron is an imperative element for chlorophyll production and vegetative growth. So we're excited to bring those too to market as well. We continue to work in our innovation here in Kansas City and also in South America on a number of projects, both on the salt side of the business and on the plant nutrition side of the business and we're making good progress on a prioritized set of those projects. So we expect to continue to be able to report new innovation across our portfolio in the future. And on the marketing side Vincent with (00:55:24), I think we've had – we continue to have good success with our customers. We've become a much more reliable supplier on the SOP side of the shop and also on the micronutrients in terms of having products where and when it's needed and really working closely with our distribution customers to educate and also to facilitate sales to the end-user farmer customer. So I feel good about the progress we've been making. We wouldn't be seeing these double-digit gains if it wasn't beginning to hold water. So thanks for the question. Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: Yeah. Thank you. Actually, just one quick point of clarification actually, the 2021 season you said field tests, are those commercial field tests or university?

Commercial. Yeah. So it will be (00:56:17), but I think it was important to note is that farmers aren't going to automatically switch a 3,500 acre farm and put 100% of your foliar product on 3,500 acres. That's very rare. Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: Sure.

So they'll typically give you the worst 50 acres on the farm and see how it performs relative to what has been their standard. And when our products show up well on some of those tough acres, it really reinvigorates their confidence to put it on a much larger portion of their land. So that's what we're doing next year, 2021. We're going to take on the challenges and hopefully perform and exceed expectations. Vincent Alwardt Anderson - Stifel, Nicolaus & Co., Inc.: All right. Well, thank you very much for that.

And ladies and gentlemen, that concludes the Q&A portion of today's call. I'd like to turn the call back over to Kevin Crutchfield for some closing remarks.

Yeah. I just want to conclude with a couple of things. I know today is a really busy day, so thanks for taking time out to tune in. I continue to be very, very excited about what I see here; accomplishing the things that we have in progress. I couldn't be more pleased without the direction we've got in the Salt franchise going. We've made a lot of improvements so far but we've got that much to go again and remain very excited about that. And then on the plant nutrition side, the back-half of the year or the back quarter of the year, the demand is there. It's just going to be a compressed season but I have every belief that our team will be able to deliver and we'll end up the year in a good spot. And then last but not least for those of you not already aware, I'm sad but also excited to report that Theresa is moving on to a bigger and what looks like to be a very significant opportunity, so this will be her last earnings call with us and I would be remiss if I didn't take just a few minutes to thank her for her – over a decade of great – great service to Compass Minerals. We're going to miss her but it looks like a great opportunity. So we never want to hold anyone back and we're very excited about her new opportunity but we'll certainly miss her. But I did want to take a few minutes to thank her for her service on this call. And I'm sure many of you will want to reach out and say goodbye as well because she's changing sectors on us but anyway congratulations, Theresa.

Thank you very much.

Congratulations.

So that concludes our earnings call today. Thank you very much for your participation and we'll keep you updated in the future. Have a good day everybody.

Ladies and gentlemen, this does conclude today's conference call. We do thank you for your participation. You may now disconnect.