Intrepid Announces Third Quarter 2024 Results

Intrepid Potash, Inc. ("Intrepid", "the Company", "we", "us", or "our") (NYSE:IPI) today reported its results for the third quarter of 2024.

Key Highlights for Third Quarter 2024

Financial & Operational

• Total sales of $57.5 million, which compares to $54.5 million in the third quarter of 2023.
• Net loss of $1.8 million (or $0.14 per diluted share), which compares to a net loss of $7.2 million (or $0.56 per diluted share) in the third quarter of 2023.
• Gross margin of $7.7 million, which compares to $0.5 million in the third quarter of 2023.
• Cash flow used in operations of $4.3 million, which compares to cash flow used in operations of $0.3 million in the third quarter of 2023.
• Adjusted EBITDA(1) of $10.0 million, which compares to $2.2 million in the third quarter of 2023.
• Potash and Trio® sales volumes of 54 thousand and 45 thousand tons, respectively, which compares to 46 thousand and 52 thousand tons, respectively, in the third quarter of 2023.
• Potash and Trio® average net realized sales prices(1) of $356 and $312 per ton, respectively, which compares to $433 and $298 per ton, respectively, in the third quarter of 2023.

Management & Board of Directors Update

• On October 4, 2024, we announced that Bob Jornayvaz stepped down as Chief Executive Officer and as a Director of the Board following his extended medical leave of absence. Intrepid’s Chief Financial Officer, Matt Preston, continues to serve as acting principal executive officer as the Board's search to identify a successor Chief Executive Officer remains ongoing.

Capital Expenditures

• Capital expenditures were $9.6 million in the third quarter of 2024, bringing our total capital expenditures to $32.6 million for the first nine months of 2024. We now expect our 2024 capital expenditures will be in the range of $37 million to $40 million, which compares to our previous guidance range of $40 million to $50 million.

Delivering on Key Strategic Priority

• Over the past two years, our key strategic priority has been to revitalize our potash assets to reverse the declining production trend. This involved numerous projects at our HB, Moab, and Wendover facilities, with the key goals being twofold: first, help maximize our brine availability; and second, increase our residence time to develop higher-grade brine. Successfully accomplishing both goals leads to higher potash production, which drives top-line growth through increased sales volumes, but more importantly, also leads to a significant improvement in our unit economics. As part of the potash asset revitalization process, we are pleased to announce that in the third quarter of 2024 we successfully completed our largest project, Phase Two of the HB Brine Injection Pipeline. Moreover, our total company potash production has started to inflect higher, with the improvement in our unit economics evident in our third quarter results.

Project & Operational Updates

• HB Solar Solution Mine in Carlsbad, New Mexico
  • Phase Two of the HB Brine Injection Pipeline Project ("Phase Two"): Phase Two, the in-line pigging system to help ensure consistent flow rates, was successfully commissioned in the third quarter of 2024, and is fully operational with respect to all brine injection wells. We expect our brine injection rates will increase to 2,000 to 2,500 gallons per minute with the completion of Phase Two, the highest rate in company history, which will improve the brine availability and residence time in the HB cavern system.
  • AMAX Cavern: In the third quarter of 2024, we started the permitting process to drill a test well into the AMAX Cavern at HB in order to measure the brine chemistry. AMAX is the largest cavern in the HB cavern system and is expected to serve as an expansion area to the original HB caverns which have been in service for over ten years. We expect to finish the sample well permitting process in the first quarter of 2025 with test well drilling taking place shortly thereafter.
• Brine Recovery Mine in Wendover, Utah
  • Primary Pond 7 ("PP7"): PP7 is expected to increase the brine evaporative area at Wendover and help us meet our goals of maximizing brine availability and improving our brine grade and production. PP7 has been commissioned and we expect to see production improvements during the 2025/2026 harvest season.
• East Underground Trio® Mine
  • Driving Operational & Cost Efficiencies: Owing to efficiencies from the two continuous miners placed into service in 2023 and the operation of our fine langbeinite recovery system, we continue to see improvements in our production rates and cost structure compared to the prior year. For the first nine months of 2024, our Trio® cost of goods sold per ton was approximately $280, which compares to approximately $328 per ton in the prior year period. For 2024, we forecast that our cash production cost savings at East will be at the higher end of the $8 million to $10 million range we previously provided.

Liquidity

• During the third quarter of 2024, cash flow used in operations was $4.3 million, while cash used in investing activities was $9.1 million. As of October 31, 2024, Intrepid had approximately $34.9 million in cash and cash equivalents and no outstanding borrowings on our revolving credit facility.
• Intrepid maintains an investment account of fixed income securities that had a balance of approximately $2.0 million as of October 31, 2024.

Consolidated Results, Management Commentary, & Outlook

In the third quarter of 2024, Intrepid generated sales of $57.5 million, a 6% increase from third quarter 2023 sales of $54.5 million. Consolidated gross margin totaled $7.7 million, while net loss totaled $1.8 million, or a net loss of $0.14 per diluted share, which compares to our third quarter 2023 net loss of $7.2 million, or $0.56 per diluted share. The Company delivered adjusted EBITDA(1) of $10.0 million, a $7.8 million increase from the same prior year period. Our third quarter 2024 average net realized sales prices(1) for potash and Trio® averaged $356 and $312 per ton, respectively, which compares to $433 and $298 per ton, respectively, in the third quarter of 2023.

Matt Preston, Intrepid's Chief Financial Officer and acting principal executive officer commented: "In the third quarter, Intrepid delivered solid financial performance with our net loss narrowing to $1.8 million and our adjusted EBITDA totaling $10.0 million, with several factors contributing to the better results compared to last year. Our margins in potash and Trio® benefited from improving unit economics due to increased production and cost improvements, higher sales volumes in potash, and solid pricing in Trio®. In oilfield solutions, owing to the completion of a large frac on Intrepid South, we had the best quarterly sales in company history, while our segment gross margins more than doubled compared to the prior year.

In the third quarter, we also successfully commissioned Phase Two of the Brine Injection Pipeline at HB. This was the largest capital project we undertook as part of our recent potash asset revitalization process, and Phase Two will help us meet our key goals of maximizing brine availability and underground residence time at HB. Overall, we're starting to see our investments pay off and Intrepid has now had two quarters in a row of higher potash production compared to the same prior year periods, with this trend expected to continue into the fourth quarter.

Lastly, we again want to thank Bob for his immeasurable contributions to Intrepid over the last two decades and wish him well in his recovery."

Segment Highlights

Potash

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

(in thousands, except per ton data)

Sales

 

$

28,356

 

$

27,602

 

$

95,966

 

$

127,363

Gross margin

 

$

4,066

 

$

3,411

 

$

12,952

 

$

30,716

 

 

 

 

 

 

 

 

 

Potash sales volumes (in tons)

 

 

54

 

 

46

 

 

183

 

 

213

Potash production volumes (in tons)

 

 

51

 

 

43

 

 

178

 

 

145

 

 

 

 

 

 

 

 

 

Average potash net realized sales price per ton(1)

 

$

356

 

$

433

 

$

387

 

$

474

Our total sales in the potash segment increased $0.8 million in the third quarter of 2024, compared to the same period in 2023, as potash segment byproduct sales increased $1.0 million, partially offset by a $0.3 million decrease in potash sales. Our potash segment byproducts increased due to an increase in brine sales as we sold more barrels of brine at a higher average price during the third quarter of 2024, compared to the same period in 2023, due to continued solid oilfield activity in the Permian Basin.

Our potash sales decreased in the third quarter of 2024, compared to the same period in 2023, as our average net realized sales price per ton decreased 18%, although this was mostly offset by a 17% increase in sales volumes. Our sales volumes increased owing to higher potash production that started in the second quarter of 2024, resulting in more available tons of potash to sell going into the summer months.

Despite lower pricing in the third quarter of 2024, our potash segment gross margin increased by $0.7 million to $4.1 million, which was driven by higher sales volumes, an improvement in our cost of goods sold per ton, and a smaller lower of cost or net realizable value inventory adjustment compared to the prior year.

Trio®

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

(in thousands, except per ton data)

Sales

 

$

18,928

 

$

22,030

 

 

$

81,938

 

$

81,052

 

Gross margin (deficit)

 

$

604

 

$

(4,290

)

 

$

1,647

 

$

(1,617

)

 

 

 

 

 

 

 

 

 

Trio® sales volume (in tons)

 

 

45

 

 

52

 

 

 

200

 

 

179

 

Trio® production volume (in tons)

 

 

62

 

 

52

 

 

 

184

 

 

159

 

 

 

 

 

 

 

 

 

 

Average Trio® net realized sales price per ton(1)

 

$

312

 

$

298

 

 

$

305

 

$

329

 

Trio® segment sales decreased 14% during the third quarter of 2024, compared to the same period in 2023, which was primarily driven by a $1.7 million decrease in Trio® sales and a $1.4 million decrease in Trio® segment byproduct sales. Trio® sales decreased primarily due to a 13% decrease in tons sold, partially offset by a 5% increase in our average net realized sales price per ton.

Our Trio® segment byproduct sales decreased $1.4 million in the third quarter of 2024, compared to the same period in 2023, due to a decrease in Trio® segment byproduct water sales, as we increased the volume of water used for injection at our HB plant, and accordingly, we did not sell any byproduct water.

Our Trio® cost of goods sold decreased 31% in the third quarter of 2024, compared to the same period in 2023. Our cost of goods sold was positively impacted by decreases in certain production costs, such as contract labor and benefits expense, which resulted from the March 2024 decision to move to a reduced operating schedule at our East facility and restart of our fine langbeinite recovery process. Moreover, we produced more tons of Trio® in the third quarter of 2024, compared to the same period in 2023 - lowering our per ton production costs - and we also sold 13% fewer tons.

Our Trio® segment generated gross margin of $0.6 million in the third quarter of 2024, which compares to a gross deficit of $4.3 million in the same prior year period, with the increase primarily attributable to the higher average net realized sales price and improvement in our cost of goods sold.

Oilfield Solutions

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

(in thousands)

Sales

 

$

10,324

 

$

4,904

 

$

21,186

 

$

14,265

Gross margin

 

$

3,062

 

$

1,370

 

$

7,191

 

$

3,126

Our oilfield solutions segment sales increased $5.4 million in the third quarter of 2024, compared to the same period in 2023, due to a $6.8 million increase in water sales, partially offset by a $1.3 million decrease in sales of other oilfield solutions products and services. Our water sales increased due to the completion of a large frac at Intrepid South. Our sales of other oilfield solutions products and services decreased during the third quarter of 2024, compared to the same period in 2023, as we recorded less revenues from surface use and easement agreements. Surface use and easement revenues fluctuate based on the timing of recognizing revenue from the various performance obligations contained in the underlying agreements.

Our cost of goods sold increased $3.7 million, or 105%, in the third quarter of 2024, compared to the same period in 2023, as we purchased more third-party water for resale related to the large frac at Intrepid South.

Gross margin for the third quarter of 2024 increased $1.7 million compared to the same period in 2023, due to the factors discussed above.

Notes

1 Adjusted net (loss) income, adjusted net (loss) income per diluted share, adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) and average net realized sales price per ton are non-GAAP financial measures. See the non-GAAP reconciliations set forth later in this press release for additional information.

Unless expressly stated otherwise or the context otherwise requires, references to tons in this press release refer to short tons. One short ton equals 2,000 pounds. One metric tonne, which many international competitors use, equals 1,000 kilograms or 2,204.62 pounds.

Conference Call Information

Intrepid will host a conference call on Tuesday, November 5, 2024, at 12:00 p.m. Eastern Time to discuss the results and other operating and financial matters and answer investor questions.

Management invites you to listen to the conference call by using the toll-free dial-in number 1 [phone] or International dial-in number 1 [phone]; please use conference ID 1179359. The call will also be streamed on the Intrepid website, intrepidpotash.com. A recording of the conference call will be available approximately two hours after the completion of the call by dialing 1 [phone] for toll-free, 1 [phone] for International, or at intrepidpotash.com. The replay of the call will require the input of the replay access code 1179359. The recording will be available through November 12, 2024.

About Intrepid

Intrepid is a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed, and the oil and gas industry. Intrepid is the only U.S. producer of muriate of potash, which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, Intrepid produces a specialty fertilizer, Trio®, which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. Intrepid also provides water, magnesium chloride, brine, and various oilfield products and services. Intrepid serves diverse customers in markets where a logistical advantage exists and is a leader in the use of solar evaporation for potash production, resulting in lower cost and more environmentally friendly production. Intrepid's mineral production comes from three solar solution potash facilities and one conventional underground Trio® mine.

Intrepid routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Relations tab. Investors and other interested parties are encouraged to enroll at intrepidpotash.com, to receive automatic email alerts for new postings.

Forward-looking Statements

This document contains forward-looking statements - that is, statements about future, not past, events. The forward-looking statements in this document relate to, among other things, statements about Intrepid's future financial performance, cash flow from operations expectations, water sales, production costs, acquisition expectations and operating plans, its market outlook, and statements regarding management matters. These statements are based on assumptions that Intrepid believes are reasonable. Forward-looking statements by their nature address matters that are uncertain. The particular uncertainties that could cause Intrepid's actual results to be materially different from its forward-looking statements include the following:

• changes in the price, demand, or supply of our products and services;
• challenges and legal proceedings related to our water rights;
• our ability to successfully identify and implement any opportunities to grow our business whether through expanded sales of water, Trio®, byproducts, and other non-potassium related products or other revenue diversification activities;
• the costs of, and our ability to successfully execute, any strategic projects;
• declines or changes in agricultural production or fertilizer application rates;
• declines in the use of potassium-related products or water by oil and gas companies in their drilling operations;
• our ability to prevail in outstanding legal proceedings against us;
• our ability to comply with the terms of our revolving credit facility, including the underlying covenants;
• further write-downs of the carrying value of assets, including inventories;
• circumstances that disrupt or limit production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems;
• changes in reserve estimates;
• currency fluctuations;
• adverse changes in economic conditions or credit markets;
• the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes;
• adverse weather events, including events affecting precipitation and evaporation rates at our solar solution mines;
• increased labor costs or difficulties in hiring and retaining qualified employees and contractors, including workers with mining, mineral processing, or construction expertise;
• changes in management and the board of directors, and our reliance on key personnel, including our ability to identify, recruit, and retain key personnel;
• changes in the prices of raw materials, including chemicals, natural gas, and power;
• our ability to obtain and maintain any necessary governmental permits or leases relating to current or future operations;
• interruptions in rail or truck transportation services, or fluctuations in the costs of these services;
• our inability to fund necessary capital investments;
• global inflationary pressures and supply chain challenges;
• the impact of global health issues, and other global disruptions on our business, operations, liquidity, financial condition and results of operations; and
• the other risks, uncertainties, and assumptions described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023, and in other reports we file with the SEC.

In addition, new risks emerge from time to time. It is not possible for Intrepid to predict all risks that may cause actual results to differ materially from those contained in any forward-looking statements Intrepid may make. All information in this document speaks as of the date of this release. New information or events after that date may cause our forward-looking statements in this document to change. We undertake no obligation to update or revise publicly any forward-looking statements to conform the statements to actual results or to reflect new information or future events.

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(In thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Sales

 

$

57,549

 

 

$

54,465

 

 

$

198,891

 

 

$

222,420

 

Less:

 

 

 

 

 

 

 

 

Freight costs

 

 

8,022

 

 

 

7,909

 

 

 

30,275

 

 

 

30,015

 

Warehousing and handling costs

 

 

3,058

 

 

 

2,731

 

 

 

8,733

 

 

 

8,265

 

Cost of goods sold

 

 

38,266

 

 

 

39,921

 

 

 

135,767

 

 

 

148,502

 

Lower of cost or net realizable value inventory adjustments

 

 

471

 

 

 

3,413

 

 

 

2,326

 

 

 

3,413

 

Gross Margin

 

 

7,732

 

 

 

491

 

 

 

21,790

 

 

 

32,225

 

 

 

 

 

 

 

 

 

 

Selling and administrative

 

 

9,154

 

 

 

7,685

 

 

 

25,448

 

 

 

24,491

 

Accretion of asset retirement obligation

 

 

623

 

 

 

535

 

 

 

1,867

 

 

 

1,605

 

Impairment of long-lived assets

 

 

874

 

 

 

521

 

 

 

3,082

 

 

 

521

 

Loss on sale of assets

 

 

134

 

 

 

59

 

 

 

626

 

 

 

252

 

Other operating income

 

 

(1,370

)

 

 

(522

)

 

 

(4,029

)

 

 

(1,252

)

Other operating expense

 

 

540

 

 

 

1,379

 

 

 

2,953

 

 

 

3,132

 

Operating (Loss) Income

 

 

(2,223

)

 

 

(9,166

)

 

 

(8,157

)

 

 

3,476

 

 

 

 

 

 

 

 

 

 

Other Income

 

 

 

 

 

 

 

 

Equity in loss of unconsolidated entities

 

 

(289

)

 

 

(54

)

 

 

(256

)

 

 

(292

)

Interest income

 

 

536

 

 

 

88

 

 

 

1,327

 

 

 

249

 

Other income

 

 

136

 

 

 

19

 

 

 

204

 

 

 

75

 

(Loss) Income Before Income Taxes

 

 

(1,840

)

 

 

(9,113

)

 

 

(6,882

)

 

 

3,508

 

 

 

 

 

 

 

 

 

 

Income Tax Benefit (Expense)

 

 

7

 

 

 

1,917

 

 

 

1,086

 

 

 

(1,893

)

Net (Loss) Income

 

$

(1,833

)

 

$

(7,196

)

 

$

(5,796

)

 

$

1,615

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

12,908

 

 

 

12,789

 

 

 

12,871

 

 

 

12,750

 

Diluted

 

 

12,908

 

 

 

12,789

 

 

 

12,871

 

 

 

12,876

 

(Loss) Earnings Per Share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.14

)

 

$

(0.56

)

 

$

(0.45

)

 

$

0.13

 

Diluted

 

$

(0.14

)

 

$

(0.56

)

 

$

(0.45

)

 

$

0.13

 

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

(In thousands, except share and per share amounts)

 

 

 

September 30,

 

December 31,

 

 

2024

 

2023

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

38,034

 

 

$

4,071

 

Short-term investments

 

 

1,979

 

 

 

2,970

 

Accounts receivable:

 

 

 

 

Trade, net

 

 

32,223

 

 

 

22,077

 

Other receivables, net

 

 

2,659

 

 

 

1,470

 

Inventory, net

 

 

109,578

 

 

 

114,252

 

Prepaid expenses and other current assets

 

 

5,783

 

 

 

7,200

 

Total current assets

 

 

190,256

 

 

 

152,040

 

 

 

 

 

 

Property, plant, equipment, and mineral properties, net

 

 

354,898

 

 

 

358,249

 

Water rights

 

 

19,184

 

 

 

19,184

 

Long-term parts inventory, net

 

 

32,385

 

 

 

30,231

 

Long-term investments

 

 

4,699

 

 

 

6,627

 

Other assets, net

 

 

9,395

 

 

 

8,016

 

Non-current deferred tax asset, net

 

 

195,402

 

 

 

194,223

 

Total Assets

 

$

806,219

 

 

$

768,570

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

8,917

 

 

$

12,848

 

Accrued liabilities

 

 

14,733

 

 

 

14,061

 

Accrued employee compensation and benefits

 

 

11,810

 

 

 

7,254

 

Other current liabilities

 

 

7,730

 

 

 

12,401

 

Total current liabilities

 

 

43,190

 

 

 

46,564

 

 

 

 

 

 

Advances on credit facility

 

 

—

 

 

 

4,000

 

Asset retirement obligation, net of current portion

 

 

31,944

 

 

 

30,077

 

Operating lease liabilities

 

 

855

 

 

 

741

 

Finance lease liabilities

 

 

2,082

 

 

 

1,451

 

Deferred other income, long-term

 

 

46,053

 

 

 

—

 

Other non-current liabilities

 

 

1,502

 

 

 

1,309

 

Total Liabilities

 

 

125,626

 

 

 

84,142

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

Common stock, $0.001 par value; 40,000,000 shares authorized;

 

 

 

 

12,908,078 and 12,807,316 shares outstanding

 

 

 

 

at September 30, 2024, and December 31, 2023, respectively

 

 

14

 

 

 

13

 

Additional paid-in capital

 

 

667,597

 

 

 

665,637

 

Retained earnings

 

 

34,994

 

 

 

40,790

 

Less treasury stock, at cost

 

 

(22,012

)

 

 

(22,012

)

Total Stockholders' Equity

 

 

680,593

 

 

 

684,428

 

Total Liabilities and Stockholders' Equity

 

$

806,219

 

 

$

768,570

 

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(In thousands)

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(1,833

)

 

$

(7,196

)

 

$

(5,796

)

 

$

1,615

 

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

9,033

 

 

 

10,122

 

 

 

26,931

 

 

 

28,305

 

Accretion of asset retirement obligation

 

 

623

 

 

 

535

 

 

 

1,867

 

 

 

1,605

 

Amortization of deferred financing costs

 

 

75

 

 

 

75

 

 

 

226

 

 

 

226

 

Amortization of intangible assets

 

 

82

 

 

 

80

 

 

 

246

 

 

 

241

 

Stock-based compensation

 

 

178

 

 

 

1,522

 

 

 

2,735

 

 

 

5,071

 

Lower of cost or net realizable value inventory adjustments

 

 

471

 

 

 

3,413

 

 

 

2,326

 

 

 

3,413

 

Impairment of long-lived assets

 

 

874

 

 

 

521

 

 

 

3,082

 

 

 

521

 

Loss on disposal of assets

 

 

134

 

 

 

59

 

 

 

626

 

 

 

252

 

Allowance for doubtful accounts

 

 

—

 

 

 

110

 

 

 

—

 

 

 

110

 

Allowance for parts inventory obsolescence

 

 

171

 

 

 

140

 

 

 

643

 

 

 

140

 

Unrealized loss on equity investment

 

 

101

 

 

 

—

 

 

 

101

 

 

 

—

 

Equity in loss of unconsolidated entities

 

 

289

 

 

 

54

 

 

 

256

 

 

 

292

 

Distribution of earnings from unconsolidated entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

452

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Trade accounts receivable, net

 

 

(10,605

)

 

 

(381

)

 

 

(10,146

)

 

 

2,536

 

Other receivables, net

 

 

(995

)

 

 

(700

)

 

 

(1,245

)

 

 

(1,659

)

Inventory, net

 

 

(9,774

)

 

 

(8,384

)

 

 

(448

)

 

 

2,379

 

Prepaid expenses and other current assets

 

 

(2,501

)

 

 

(1,804

)

 

 

(226

)

 

 

(898

)

Deferred tax assets, net

 

 

(65

)

 

 

(1,920

)

 

 

(1,179

)

 

 

1,756

 

Accounts payable, accrued liabilities, and accrued employee

compensation and benefits

 

 

10,901

 

 

 

2,916

 

 

 

4,009

 

 

 

(5,216

)

Operating lease liabilities

 

 

(334

)

 

 

(409

)

 

 

(1,074

)

 

 

(1,218

)

Deferred other income

 

 

(564

)

 

 

—

 

 

 

43,308

 

 

 

—

 

Other liabilities

 

 

(603

)

 

 

924

 

 

 

(1,306

)

 

 

(1,298

)

Net cash (used) provided by operating activities

 

 

(4,342

)

 

 

(323

)

 

 

64,936

 

 

 

38,625

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Additions to property, plant, equipment, mineral properties and other assets

 

 

(9,609

)

 

 

(16,550

)

 

 

(32,583

)

 

 

(58,484

)

Purchase of investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,415

)

Proceeds from sale of assets

 

 

5

 

 

 

36

 

 

 

4,656

 

 

 

125

 

Proceeds from redemptions/maturities of investments

 

 

500

 

 

 

500

 

 

 

2,000

 

 

 

4,500

 

Other investing, net

 

 

—

 

 

 

160

 

 

 

416

 

 

 

668

 

Net cash used in investing activities

 

 

(9,104

)

 

 

(15,854

)

 

 

(25,511

)

 

 

(54,606

)

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Payments of financing lease

 

 

(180

)

 

 

(189

)

 

 

(680

)

 

 

(399

)

Proceeds from short-term borrowings on credit facility

 

 

—

 

 

 

2,000

 

 

 

—

 

 

 

7,000

 

Repayments of short-term borrowings on credit facility

 

 

—

 

 

 

—

 

 

 

(4,000

)

 

 

(5,000

)

Employee tax withholding paid for restricted stock upon vesting

 

 

—

 

 

 

—

 

 

 

(775

)

 

 

(1,337

)

Net cash (used in) provided by financing activities

 

 

(180

)

 

 

1,811

 

 

 

(5,455

)

 

 

264

 

 

 

 

 

 

 

 

 

 

Net Change in Cash, Cash Equivalents and Restricted Cash

 

 

(13,626

)

 

 

(14,366

)

 

 

33,970

 

 

 

(15,717

)

Cash, Cash Equivalents and Restricted Cash, beginning of period

 

 

52,247

 

 

 

17,733

 

 

 

4,651

 

 

 

19,084

 

Cash, Cash Equivalents and Restricted Cash, end of period

 

$

38,621

 

 

$

3,367

 

 

$

38,621

 

 

$

3,367

 

INTREPID POTASH, INC. UNAUDITED NON-GAAP RECONCILIATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (In thousands)

To supplement Intrepid's consolidated financial statements, which are prepared and presented in accordance with GAAP, Intrepid uses several non-GAAP financial measures to monitor and evaluate its performance. These non-GAAP financial measures include adjusted net (loss) income, adjusted net (loss) income per diluted share, adjusted EBITDA, and average net realized sales price per ton. These non-GAAP financial measures should not be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Intrepid believes these non-GAAP financial measures provide useful information to investors for analysis of its business. Intrepid uses these non-GAAP financial measures as one of its tools in comparing period-over-period performance on a consistent basis and when planning, forecasting, and analyzing future periods. Intrepid believes these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions.

Adjusted Net (Loss) Income and Adjusted Net (Loss) Income Per Diluted Share

Adjusted net (loss) income and adjusted net (loss) income per diluted share are calculated as net (loss) income or net (loss) income per diluted share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of its operating results excluding items that Intrepid believes are not indicative of its fundamental ongoing operations.

Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

(in thousands)

Net (Loss) Income

$

(1,833

)

 

$

(7,196

)

 

$

(5,796

)

 

$

1,615

 

Adjustments

 

 

 

 

 

 

 

Impairment of long-lived assets

 

874

 

 

 

521

 

 

 

3,082

 

 

 

521

 

Loss on sale of assets

 

134

 

 

 

59

 

 

 

626

 

 

 

252

 

CEO separation costs, net

 

1,050

 

 

 

—

 

 

 

1,050

 

 

 

—

 

Calculated income tax effect(1)

 

(535

)

 

 

(151

)

 

 

(1,237

)

 

 

(201

)

Total adjustments

 

1,523

 

 

 

429

 

 

 

3,521

 

 

 

572

 

Adjusted Net (Loss) Income

$

(310

)

 

$

(6,767

)

 

$

(2,275

)

 

$

2,187

 

Reconciliation of Net (Loss) Income per Share to Adjusted Net (Loss) Income per Share:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Net (Loss) Income Per Diluted Share

$

(0.14

)

 

$

(0.56

)

 

$

(0.45

)

 

$

0.13

 

Adjustments

 

 

 

 

 

 

 

Impairment of long-lived assets

 

0.07

 

 

 

0.04

 

 

 

0.24

 

 

 

0.04

 

Loss on sale of assets

 

0.01

 

 

 

—

 

 

 

0.05

 

 

 

0.02

 

CEO separation costs, net

 

0.08

 

 

 

—

 

 

 

0.08

 

 

 

—

 

Calculated income tax effect(1)

 

(0.04

)

 

 

(0.01

)

 

 

(0.10

)

 

 

(0.02

)

Total adjustments

 

0.12

 

 

 

0.03

 

 

 

0.27

 

 

 

0.04

 

Adjusted Net (Loss) Income Per Diluted Share

$

(0.02

)

 

$

(0.53

)

 

$

(0.18

)

 

$

0.17

 

(1) Assumes an annual effective tax rate of 26% for 2024 and 2023.

Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) is calculated as net (loss) income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers adjusted EBITDA to be useful, and believe it to be useful for investors, because the measure reflects Intrepid's operating performance before the effects of certain non-cash items and other items that Intrepid believes are not indicative of its core operations. Intrepid uses adjusted EBITDA to assess operating performance.

Reconciliation of Net (Loss) Income to Adjusted EBITDA:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

(in thousands)

Net (Loss) Income

 

$

(1,833

)

 

$

(7,196

)

 

$

(5,796

)

 

$

1,615

Impairment of long-lived assets

 

 

874

 

 

 

521

 

 

 

3,082

 

 

 

521

Loss on sale of assets

 

 

134

 

 

 

59

 

 

 

626

 

 

 

252

CEO separation costs, net

 

 

1,050

 

 

 

—

 

 

 

1,050

 

 

 

—

Income tax (benefit) expense

 

 

(7

)

 

 

(1,917

)

 

 

(1,086

)

 

 

1,893

Depreciation, depletion, and amortization

 

 

9,033

 

 

 

10,122

 

 

 

26,931

 

 

 

28,305

Amortization of intangible assets

 

 

82

 

 

 

80

 

 

 

246

 

 

 

241

Accretion of asset retirement obligation

 

 

623

 

 

 

535

 

 

 

1,867

 

 

 

1,605

Total adjustments

 

 

11,789

 

 

 

9,400

 

 

 

32,716

 

 

 

32,817

Adjusted EBITDA

 

$

9,956

 

 

$

2,204

 

 

$

26,920

 

 

$

34,432

Average Potash and Trio® Net Realized Sales Price per Ton

Average net realized sales price per ton for potash is calculated as potash segment sales less potash segment byproduct sales and potash freight costs and then dividing that difference by the number of tons of potash sold in the period. Likewise, average net realized sales price per ton for Trio® is calculated as Trio® segment sales less Trio® segment byproduct sales and Trio® freight costs and then dividing that difference by Trio® tons sold. Intrepid considers average net realized sales price per ton to be useful, and believe it to be useful for investors, because it shows Intrepid's potash and Trio® average per ton pricing without the effect of certain transportation and delivery costs. When Intrepid arranges transportation and delivery for a customer, it includes in revenue and in freight costs the costs associated with transportation and delivery. However, some of Intrepid's customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in Intrepid's revenue and freight costs. Intrepid uses average net realized sales price per ton as a key performance indicator to analyze potash and Trio® sales and price trends.

Reconciliation of Sales to Average Net Realized Sales Price per Ton:

 

 

Three Months Ended September 30,

 

 

2024

 

2023

(in thousands, except per ton amounts)

 

Potash

 

Trio®

 

Potash

 

Trio®

Total Segment Sales

 

$

28,356

 

$

18,928

 

$

27,602

 

$

22,030

Less: Segment byproduct sales

 

 

6,664

 

 

41

 

 

5,622

 

 

1,425

Freight costs

 

 

2,488

 

 

4,864

 

 

2,057

 

 

5,086

Subtotal

 

$

19,204

 

$

14,023

 

$

19,923

 

$

15,519

 

 

 

 

 

 

 

 

 

Divided by:

 

 

 

 

 

 

 

 

Tons sold

 

 

54

 

 

45

 

 

46

 

 

52

Average net realized sales price per ton

 

$

356

 

$

312

 

$

433

 

$

298

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2024

 

2023

(in thousands, except per ton amounts)

 

Potash

 

Trio®

 

Potash

 

Trio®

Total Segment Sales

 

$

95,966

 

$

81,938

 

$

127,363

 

$

81,052

Less: Segment byproduct sales

 

 

17,724

 

 

354

 

 

17,122

 

 

4,165

Freight costs

 

 

7,505

 

 

20,498

 

 

9,321

 

 

18,038

Subtotal

 

$

70,737

 

$

61,086

 

$

100,920

 

$

58,849

 

 

 

 

 

 

 

 

 

Divided by:

 

 

 

 

 

 

 

 

Tons sold

 

 

183

 

 

200

 

 

213

 

 

179

Average net realized sales price per ton

 

$

387

 

$

305

 

$

474

 

$

329

 

 

 

 

 

 

 

 

 

INTREPID POTASH, INC.

DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(In thousands)

 

Three Months Ended September 30, 2024

Product

 

Potash Segment

 

Trio® Segment

 

Oilfield Solutions Segment

 

Intersegment Eliminations

 

Total

Potash

 

$

21,692

 

$

—

 

$

—

 

$

(59

)

 

$

21,633

Trio®

 

 

—

 

 

18,887

 

 

—

 

 

—

 

 

 

18,887

Water

 

 

—

 

 

—

 

 

7,918

 

 

—

 

 

 

7,918

Salt

 

 

2,720

 

 

41

 

 

—

 

 

—

 

 

 

2,761

Magnesium Chloride

 

 

2,116

 

 

—

 

 

—

 

 

—

 

 

 

2,116

Brine Water

 

 

1,808

 

 

—

 

 

943

 

 

—

 

 

 

2,751

Other

 

 

20

 

 

—

 

 

1,463

 

 

—

 

 

 

1,483

Total Revenue

 

$

28,356

 

$

18,928

 

$

10,324

 

$

(59

)

 

$

57,549

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

Product

 

Potash Segment

 

Trio® Segment

 

Oilfield Solutions Segment

 

Intersegment Eliminations

 

Total

Potash

 

$

78,242

 

$

—

 

$

—

 

$

(199

)

 

$

78,043

Trio®

 

 

—

 

 

81,584

 

 

—

 

 

—

 

 

 

81,584

Water

 

 

—

 

 

—

 

 

12,659

 

 

—

 

 

 

12,659

Salt

 

 

9,199

 

 

354

 

 

—

 

 

—

 

 

 

9,553

Magnesium Chloride

 

 

3,467

 

 

—

 

 

—

 

 

—

 

 

 

3,467

Brine Water

 

 

4,975

 

 

—

 

 

3,236

 

 

—

 

 

 

8,211

Other

 

 

83

 

 

—

 

 

5,291

 

 

—

 

 

 

5,374

Total Revenue

 

$

95,966

 

$

81,938

 

$

21,186

 

$

(199

)

 

$

198,891

 

 

Three Months Ended September 30, 2023

Product

 

Potash Segment

 

Trio® Segment

 

Oilfield Solutions Segment

 

Intersegment Eliminations

 

Total

Potash

 

$

21,980

 

$

—

 

$

—

 

$

(71

)

 

$

21,909

Trio®

 

 

—

 

 

20,605

 

 

—

 

 

—

 

 

 

20,605

Water

 

 

48

 

 

1,368

 

 

1,133

 

 

—

 

 

 

2,549

Salt

 

 

2,676

 

 

57

 

 

—

 

 

—

 

 

 

2,733

Magnesium Chloride

 

 

2,035

 

 

—

 

 

—

 

 

—

 

 

 

2,035

Brine Water

 

 

863

 

 

—

 

 

1,030

 

 

—

 

 

 

1,893

Other

 

 

—

 

 

—

 

 

2,741

 

 

—

 

 

 

2,741

Total Revenue

 

$

27,602

 

$

22,030

 

$

4,904

 

$

(71

)

 

$

54,465

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

Product

 

Potash Segment

 

Trio® Segment

 

Oilfield Solutions Segment

 

Intersegment Eliminations

 

Total

Potash

 

$

110,241

 

$

—

 

$

—

 

$

(260

)

 

$

109,981

Trio®

 

 

—

 

 

76,887

 

 

—

 

 

—

 

 

 

76,887

Water

 

 

228

 

 

3,890

 

 

5,320

 

 

—

 

 

 

9,438

Salt

 

 

8,997

 

 

275

 

 

—

 

 

—

 

 

 

9,272

Magnesium Chloride

 

 

4,839

 

 

—

 

 

—

 

 

—

 

 

 

4,839

Brine Water

 

 

3,058

 

 

—

 

 

2,853

 

 

—

 

 

 

5,911

Other

 

 

—

 

 

—

 

 

6,092

 

 

—

 

 

 

6,092

Total Revenue

 

$

127,363

 

$

81,052

 

$

14,265

 

$

(260

)

 

$

222,420

Three Months Ended

September 30, 2024

 

Potash

 

Trio®

 

Oilfield Solutions

 

Other

 

Consolidated

Sales

 

$

28,356

 

$

18,928

 

 

$

10,324

 

$

(59

)

 

$

57,549

Less: Freight costs

 

 

3,217

 

 

4,864

 

 

 

—

 

 

(59

)

 

 

8,022

Warehousing and handling

costs

 

 

1,819

 

 

1,239

 

 

 

—

 

 

—

 

 

 

3,058

Cost of goods sold

 

 

18,783

 

 

12,221

 

 

 

7,262

 

 

—

 

 

 

38,266

Lower of cost or net

realizable value inventory

adjustments

 

 

471

 

 

—

 

 

 

—

 

 

—

 

 

 

471

Gross Margin

 

$

4,066

 

$

604

 

 

$

3,062

 

$

—

 

 

$

7,732

Depreciation, depletion, and amortization incurred1

 

$

6,670

 

$

864

 

 

$

1,134

 

$

447

 

 

$

9,115

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

Potash

 

Trio®

 

Oilfield Solutions

 

Other

 

Consolidated

Sales

 

$

95,966

 

$

81,938

 

 

$

21,186

 

$

(199

)

 

$

198,891

Less: Freight costs

 

 

9,976

 

 

20,498

 

 

 

—

 

 

(199

)

 

 

30,275

Warehousing and handling

costs

 

 

4,889

 

 

3,844

 

 

 

—

 

 

—

 

 

 

8,733

Cost of goods sold

 

 

65,823

 

 

55,949

 

 

 

13,995

 

 

—

 

 

 

135,767

Lower of cost or net

realizable value inventory

adjustments

 

 

2,326

 

 

—

 

 

 

—

 

 

—

 

 

 

2,326

Gross Margin

 

$

12,952

 

$

1,647

 

 

$

7,191

 

$

—

 

 

$

21,790

Depreciation, depletion, and amortization incurred1

 

$

19,819

 

$

2,599

 

 

$

3,400

 

$

1,359

 

 

$

27,177

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30, 2023

 

Potash

 

Trio®

 

Oilfield Solutions

 

Other

 

Consolidated

Sales

 

$

27,602

 

$

22,030

 

 

$

4,904

 

$

(71

)

 

$

54,465

Less: Freight costs

 

 

2,894

 

 

5,086

 

 

 

—

 

 

(71

)

 

 

7,909

Warehousing and handling

costs

 

 

1,541

 

 

1,190

 

 

 

—

 

 

—

 

 

 

2,731

Cost of goods sold

 

 

18,673

 

 

17,714

 

 

 

3,534

 

 

—

 

 

 

39,921

Lower of cost or net

realizable value inventory

adjustments

 

 

1,083

 

 

2,330

 

 

 

—

 

 

—

 

 

 

3,413

Gross Margin (Deficit)

 

$

3,411

 

$

(4,290

)

 

$

1,370

 

$

—

 

 

$

491

Depreciation, depletion, and amortization incurred1

 

$

7,272

 

$

1,754

 

 

$

950

 

$

226

 

 

$

10,202

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

Potash

 

Trio®

 

Oilfield Solutions

 

Other

 

Consolidated

Sales

 

$

127,363

 

$

81,052

 

 

$

14,265

 

$

(260

)

 

$

222,420

Less: Freight costs

 

 

12,237

 

 

18,038

 

 

 

—

 

 

(260

)

 

 

30,015

Warehousing and handling

costs

 

 

4,630

 

 

3,635

 

 

 

—

 

 

—

 

 

 

8,265

Cost of goods sold

 

 

78,697

 

 

58,666

 

 

 

11,139

 

 

—

 

 

 

148,502

Lower of cost or net

realizable value inventory

adjustments

 

 

1,083

 

 

2,330

 

 

 

—

 

 

—

 

 

 

3,413

Gross Margin (Deficit)

 

$

30,716

 

$

(1,617

)

 

$

3,126

 

$

—

 

 

$

32,225

Depreciation, depletion and amortization incurred1

 

$

20,753

 

$

4,365

 

 

$

2,772

 

$

656

 

 

$

28,546

(1) Depreciation, depletion, and amortization incurred for potash and Trio® excludes depreciation, depletion, and amortization amounts absorbed in or relieved from inventory.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104870543/en/

Evan Mapes, CFA, Investor Relations Manager Phone: [phone] Email: [e-mail]