PresentationWelcome to the Compass Group 2026 First Quarter Trading Update Conference Call, hosted by Dominic Blakemore, Group Chief Executive Officer. This call is being recorded [Operator Instructions] I will now turn the call over to Dominic Blakemore for his opening remarks. Please go ahead.Dominic BlakemoreGroup CEO & Director Thank you. Welcome to our Q1 trading update. As usual, Petros is alongside me. We've had a strong start to the year, delivering organic revenue growth above 7%. Growth moderated ...

Core Insights - Compass Minerals reported strong first-quarter results for fiscal 2026, driven by robust winter weather in the Salt segment and improved pricing and cost structure in the Plant Nutrition segment [2][3]. Financial Performance - Revenue for the first quarter of 2026 was $396.1 million, up 29% from $307.2 million in the prior year [5]. - Operating income increased significantly to $36.6 million from $0.5 million year over year [5]. - Net income for the quarter was $18.6 million, a turnaround from a net loss of $23.6 million in the previous year [6]. - Adjusted EBITDA reached $65.3 million, reflecting a 103% increase year over year [6]. Segment Performance Salt Segment - Salt revenue increased by 37% year over year to $331.5 million, driven by a 43% increase in highway deicing sales volumes and a 14% increase in consumer and industrial sales [8]. - Operating earnings in the Salt segment rose by 67% to $49.1 million, with adjusted EBITDA increasing by 41% to $67.2 million [9][34]. Plant Nutrition Segment - Plant Nutrition revenue totaled $60.8 million, down 1% year over year due to a 13% decrease in sales volume, although the average sales price increased by 14% to approximately $687 per ton [10][11]. - Operating earnings improved to $5.4 million from a loss of $3.1 million in the prior year, with adjusted EBITDA rising to $12.8 million from $4.4 million [11][38]. Debt and Cash Flow - The company reduced total net debt by 10% year over year, amounting to $836.9 million as of December 31, 2025 [6][15]. - Net cash used in operating activities was $37.0 million for the quarter, compared to $4.1 million in the prior year, influenced by changes in working capital [12]. - Net cash provided by financing activities was $47.1 million, including net borrowings of $50.7 million [14]. Outlook - The company increased its full-year adjusted EBITDA guidance by 2% at the midpoint, now projected to be between $208 million and $240 million, factoring in the impact of the Wynyard sulfate of potash operation sale [3][6]. - The updated fiscal 2026 outlook includes projected salt sales volumes of 9,900 to 10,450 thousand tons and Plant Nutrition sales volumes of 255 to 275 thousand tons [18][19].

Core Viewpoint - Compass Gold Corporation has announced a private placement offering to raise between approximately $4 million and $5 million through the sale of units priced at $0.19 each [1][3]. Group 1: Offering Details - The offering consists of a minimum of 21,052,630 and a maximum of 26,315,800 units, each unit comprising one common share and one common share purchase warrant [1][2]. - Each warrant allows the holder to purchase one common share at a price of C$0.25 within three years following the closing date [2]. - The offering is expected to close around February 12, 2026, subject to regulatory approvals and the execution of a definitive agency agreement [5]. Group 2: Use of Proceeds - Net proceeds from the offering will be allocated for the evaluation and establishment of a gold processing facility at the Massala prospect, drilling, completion of a metallurgical study, bulk sampling, and general corporate purposes [3]. Group 3: Additional Offering Options - The company has granted the agent an option to sell up to an additional 3,947,370 units at the same offering price, potentially raising an additional gross amount of approximately $750,000 [4]. Group 4: Regulatory Compliance - The units will be offered in compliance with National Instrument 45-106, allowing for sales to purchasers in Canada and other jurisdictions without a hold period under applicable Canadian securities laws [6]. Group 5: Company Background - Compass Gold is a public company incorporated in Ontario, holding gold exploration permits in Mali, with a total land holding of 900 square kilometers [9]. - The company's exploration activities are focused on the Sikasso Property, located in a region with several multi-million-ounce gold projects [9].

Core Viewpoint - Compass Minerals is set to release its first-quarter fiscal 2026 results on February 4, 2026, after market close, with a follow-up conference call scheduled for February 5, 2026, at 9:30 a.m. ET [1] Group 1 - The conference call will be accessible via webcast and phone, requiring a conference ID number for participation [2] - An audio replay of the conference call will be available on the company's website following the event [2] Group 2 - Compass Minerals is a leading global provider of essential minerals, focusing on delivering products that address nature's challenges for customers and communities [3] - The company's salt products are crucial for maintaining safe roadways during winter and have various applications in consumer, industrial, chemical, and agricultural sectors [3] - Compass Minerals' plant nutrition products enhance crop quality and yield while promoting sustainable agriculture [3] - The company operates 12 production and packaging facilities and employs over 1,800 individuals across the U.S., Canada, and the U.K. [3]

Core Viewpoint - Compass, Inc. has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for Compass reflects an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - Over the past three months, the Zacks Consensus Estimate for Compass has increased by 214%, indicating a significant upward revision in earnings expectations [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - Compass's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Core Viewpoint - Compass shares increased following the completion of its all-stock merger with Anywhere Real Estate, indicating positive investor sentiment towards the integration of the combined brokerage platform and new financing strategies [1][3]. Company Performance - Compass's stock price rose by 4.73% to close at $12.84, with a market capitalization of $6.9 billion. The trading volume reached 47.1 million shares, significantly above the three-month average of 14.4 million shares [2][5]. - Since its IPO in 2021, Compass has experienced a 36% decline in stock value, highlighting the challenges faced by the company in the competitive real estate brokerage market [2]. Market Context - The S&P 500 and Nasdaq Composite indices saw increases of 0.64% and 0.81%, respectively, while competitor Zillow Group's stock fell by 2.01%, reflecting varied investor reactions within the real estate sector [4]. - The market is currently assessing growth prospects and integration risks among industry competitors, with Compass's merger prompting a reevaluation of its business structure [5][4]. Investment Implications - The merger is seen as a pivotal moment for Compass, as it transforms the company into a newly structured platform, raising questions about whether the increased scale can lead to improved economic performance in an industry that typically requires substantial investment to attract and retain agents [5][6]. - The capital structure post-merger includes $850 million in convertible senior notes due in 2031, providing Compass with operational flexibility during the integration process [6][7]. Operational Focus - The success of Compass will depend on its ability to retain agents, manage costs, and effectively integrate technology, which are critical factors for long-term returns rather than merely the size of the combined platform [7].

Core Viewpoint - Compass, Inc. has completed an all-stock merger with Anywhere Real Estate Inc., aiming to empower real estate professionals through a unified technology platform [1][2]. Company Overview - Compass is a leading tech-enabled real estate services company, recognized as the largest residential real estate brokerage in the U.S. by sales volume [3]. - Founded in 2012 and headquartered in New York City, Compass offers an end-to-end platform designed to support residential real estate agents in delivering exceptional service [3]. - The platform includes a suite of cloud-based software for various functions such as customer relationship management, marketing, and brokerage services, tailored specifically for the real estate industry [3]. - Compass's network includes Christie's International Real Estate, which has over 100 independently owned brokerage affiliates across 50 countries and territories [3]. Leadership and Vision - Robert Reffkin, as Chairman and CEO, will lead the integration of the two companies under Compass International Holdings, emphasizing a vision to empower real estate professionals [2]. - The merger is positioned not merely as a transaction but as a collaboration of respected brands and professionals on a modern technology platform aimed at enhancing efficiency and client service [2].

Core Viewpoint - Compass, Inc. has experienced a significant increase in its stock price, driven by strong agent recruitment, transaction growth, and advancements in AI technology, which enhance productivity and client relationships [2][3]. Group 1: Stock Performance - Compass, Inc. shares rose by 9.3% to close at $11.84, with trading volume significantly higher than usual, contrasting with a 0.1% loss over the past four weeks [1]. - The stock currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [4]. Group 2: Financial Expectations - The company is projected to report a quarterly loss of $0.06 per share, reflecting a year-over-year improvement of 25%, with expected revenues of $1.64 billion, marking a 19.1% increase from the previous year [3]. - The consensus EPS estimate for Compass has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4]. Group 3: Industry Context - Compass operates within the Zacks Internet - Software industry, where another company, PubMatic, Inc., has seen a decline in stock performance, closing 1.8% lower at $8.67 [4]. - PubMatic's EPS estimate has remained unchanged at $0.16, representing a significant year-over-year decline of 61%, and it currently holds a Zacks Rank of 3 (Hold) [5].

Core Viewpoint - Compass, Inc. has announced the pricing of an offering of $850 million in convertible senior notes due 2031, which is a $100 million increase from the previously announced size of the offering [1] Group 1: Offering Details - The offering includes an option for initial purchasers to buy an additional $150 million of the notes within a 13-day period starting from the issuance date [1] - The notes will be senior unsecured obligations guaranteed by the Company's subsidiaries that also guarantee its existing revolving credit facility [2] - The notes will bear an interest rate of 0.25% per annum and will mature on April 15, 2031, unless converted or repurchased earlier [3] Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, including repayment of certain existing indebtedness of Anywhere Real Estate Inc. if the merger is completed [2] - The proceeds will also fund the net cost of entering into capped call transactions related to the offering [2] Group 3: Conversion and Redemption - The initial conversion rate for the notes is 62.5626 shares of Class A common stock per $1,000 principal amount, equating to an initial conversion price of approximately $15.98 per share, representing a 35% conversion premium over the last reported sale price [3] - The notes will be convertible under certain conditions prior to January 15, 2031, and thereafter at any time until the maturity date [4] - The Company has the option to redeem the notes in whole or in part starting from April 20, 2029, under certain conditions [4] Group 4: Capped Call Transactions - The Company has entered into capped call transactions with initial purchasers, covering the number of shares underlying the notes, with an initial cap price of $23.68 per share, a 100% premium over the last reported sale price [5] - These capped call transactions may influence the market price of the Class A common stock and the notes [6] Group 5: Company Overview - Compass is a leading tech-enabled real estate services company and the largest residential real estate brokerage in the U.S. by sales volume, providing an end-to-end platform for real estate agents [8]

Core Viewpoint - Compass Diversified (CODI) plans to report its financial results for the third quarter ended September 30, 2025, on January 14, 2026, after market close, and will hold a conference call to discuss these results and the business outlook [1]. Financial Reporting - The financial results will cover the third quarter and year-to-date performance [1]. - A live webcast of the conference call will be available on the Investor Relations section of CODI's website, with participants encouraged to log in 15 minutes early [2]. Investor Relations - For inquiries, investors can contact Compass Diversified via email at irinquiry@compassdiversified.com [4].