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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Intrepid Potash Inc | NYSE:IPI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 20.02 | 0 | 09:05:47 |
|
x
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the Quarterly Period Ended March 31, 2018
|
|
or
|
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the transition period from ______ to ______
|
Delaware
|
26-1501877
|
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
707 17th Street, Suite 4200, Denver, Colorado
|
80202
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
¨
|
Accelerated filer
x
|
Non
-
accelerated filer
¨
(Do not check if a smaller reporting company) |
Smaller reporting company
¨
|
Emerging growth company
¨
|
|
|
|
Page
|
|
|
March 31,
|
|
December 31,
|
||||
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
6,085
|
|
|
$
|
1,068
|
|
Accounts receivable:
|
|
|
|
|
||||
Trade, net
|
|
29,605
|
|
|
17,777
|
|
||
Other receivables, net
|
|
969
|
|
|
762
|
|
||
Refundable income taxes
|
|
—
|
|
|
2,663
|
|
||
Inventory, net
|
|
75,916
|
|
|
83,126
|
|
||
Prepaid expenses and other current assets
|
|
5,175
|
|
|
6,088
|
|
||
Total current assets
|
|
117,750
|
|
|
111,484
|
|
||
|
|
|
|
|
||||
Property, plant, equipment, and mineral properties, net
|
|
359,362
|
|
|
364,542
|
|
||
Long-term parts inventory, net
|
|
31,106
|
|
|
30,611
|
|
||
Other assets, net
|
|
3,804
|
|
|
3,955
|
|
||
Total Assets
|
|
$
|
512,022
|
|
|
$
|
510,592
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Accounts payable:
|
|
|
|
|
||||
Trade
|
|
$
|
8,262
|
|
|
$
|
11,103
|
|
Related parties
|
|
31
|
|
|
28
|
|
||
Income taxes payable
|
|
180
|
|
|
—
|
|
||
Accrued liabilities
|
|
8,618
|
|
|
8,074
|
|
||
Accrued employee compensation and benefits
|
|
3,579
|
|
|
4,317
|
|
||
Advances on credit facility
|
|
1,500
|
|
|
3,900
|
|
||
Current portion of long-term debt
|
|
10,000
|
|
|
10,000
|
|
||
Other current liabilities
|
|
3,746
|
|
|
65
|
|
||
Total current liabilities
|
|
35,916
|
|
|
37,487
|
|
||
|
|
|
|
|
||||
Long-term debt, net
|
|
49,470
|
|
|
49,437
|
|
||
Asset retirement obligation
|
|
21,893
|
|
|
21,476
|
|
||
Other non-current liabilities
|
|
—
|
|
|
102
|
|
||
Total Liabilities
|
|
107,279
|
|
|
108,502
|
|
||
Commitments and Contingencies
|
|
|
|
|
||||
Common stock, $0.001 par value; 400,000,000 shares authorized;
|
|
|
|
|
||||
127,688,437 and 127,646,530 shares outstanding
|
|
|
|
|
||||
at March 31, 2018, and December 31, 2017, respectively
|
|
128
|
|
|
128
|
|
||
Additional paid-in capital
|
|
646,709
|
|
|
645,813
|
|
||
Retained deficit
|
|
(242,094
|
)
|
|
(243,851
|
)
|
||
Total Stockholders' Equity
|
|
404,743
|
|
|
402,090
|
|
||
Total Liabilities and Stockholders' Equity
|
|
$
|
512,022
|
|
|
$
|
510,592
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Sales
|
|
$
|
53,195
|
|
|
$
|
48,655
|
|
Less:
|
|
|
|
|
||||
Freight costs
|
|
9,734
|
|
|
8,721
|
|
||
Warehousing and handling costs
|
|
2,276
|
|
|
2,770
|
|
||
Cost of goods sold
|
|
33,280
|
|
|
35,873
|
|
||
Lower-of-cost-or-market inventory adjustments
|
|
705
|
|
|
3,824
|
|
||
Gross Margin (Deficit)
|
|
7,200
|
|
|
(2,533
|
)
|
||
|
|
|
|
|
||||
Selling and administrative
|
|
3,970
|
|
|
4,404
|
|
||
Accretion of asset retirement obligation
|
|
417
|
|
|
389
|
|
||
Care and maintenance expense
|
|
128
|
|
|
692
|
|
||
Other operating expense
|
|
168
|
|
|
1,650
|
|
||
Operating Income (Loss)
|
|
2,517
|
|
|
(9,668
|
)
|
||
|
|
|
|
|
||||
Other Income (Expense)
|
|
|
|
|
||||
Interest expense, net
|
|
(878
|
)
|
|
(4,421
|
)
|
||
Interest income
|
|
98
|
|
|
3
|
|
||
Other income
|
|
20
|
|
|
413
|
|
||
Income (Loss) Before Income Taxes
|
|
1,757
|
|
|
(13,673
|
)
|
||
|
|
|
|
|
||||
Income Tax Expense
|
|
—
|
|
|
(5
|
)
|
||
Net Income (Loss)
|
|
$
|
1,757
|
|
|
$
|
(13,678
|
)
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding:
|
|
|
|
|
||||
Basic
|
|
127,661,458
|
|
|
81,992,071
|
|
||
Diluted
|
|
130,764.998
|
|
|
81,992.071
|
|
||
Earnings (Loss) Per Share:
|
|
|
|
|
||||
Basic
|
|
$
|
0.01
|
|
|
$
|
(0.17
|
)
|
Diluted
|
|
$
|
0.01
|
|
|
$
|
(0.17
|
)
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Deficit
|
|
Total Stockholders' Equity
|
|||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||
Balance, December 31, 2017
|
|
127,646,530
|
|
|
$
|
128
|
|
|
$
|
645,813
|
|
|
$
|
(243,851
|
)
|
|
$
|
402,090
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,757
|
|
|
1,757
|
|
||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
947
|
|
|
—
|
|
|
947
|
|
||||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting
|
|
30,708
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(62
|
)
|
||||
Exercise of stock options
|
|
11,199
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
March 31, 2018
|
|
127,688,437
|
|
|
$
|
128
|
|
|
$
|
646,709
|
|
|
$
|
(242,094
|
)
|
|
$
|
404,743
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Cash Flows from Operating Activities:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
1,757
|
|
|
$
|
(13,678
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
||||
Depreciation, depletion, and accretion
|
|
8,932
|
|
|
9,323
|
|
||
Amortization of deferred financing costs
|
|
183
|
|
|
821
|
|
||
Stock-based compensation
|
|
947
|
|
|
989
|
|
||
Lower-of-cost-or-market inventory adjustments
|
|
705
|
|
|
3,824
|
|
||
(Gain) loss on disposal of assets
|
|
(34
|
)
|
|
1,559
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Trade accounts receivable, net
|
|
(11,828
|
)
|
|
(8,776
|
)
|
||
Other receivables, net
|
|
(207
|
)
|
|
(399
|
)
|
||
Refundable income taxes
|
|
2,844
|
|
|
(4
|
)
|
||
Inventory, net
|
|
6,009
|
|
|
1,643
|
|
||
Prepaid expenses and other current assets
|
|
914
|
|
|
3,872
|
|
||
Accounts payable, accrued liabilities, and accrued employee
compensation and benefits |
|
1
|
|
|
(64
|
)
|
||
Other liabilities
|
|
3,681
|
|
|
(819
|
)
|
||
Net cash provided by (used in) operating activities
|
|
13,904
|
|
|
(1,709
|
)
|
||
|
|
|
|
|
||||
Cash Flows from Investing Activities:
|
|
|
|
|
||||
Additions to property, plant, equipment, and mineral properties
|
|
(6,470
|
)
|
|
(2,423
|
)
|
||
Proceeds from sale of property, plant, equipment, and mineral properties
|
|
34
|
|
|
5,553
|
|
||
Net cash (used in) provided by investing activities
|
|
(6,436
|
)
|
|
3,130
|
|
||
|
|
|
|
|
||||
Cash Flows from Financing Activities:
|
|
|
|
|
||||
Issuance of common stock, net of transaction costs
|
|
—
|
|
|
57,468
|
|
||
Repayments of long-term debt
|
|
—
|
|
|
(46,000
|
)
|
||
Proceeds from short-term borrowings on credit facility
|
|
13,500
|
|
|
—
|
|
||
Repayments of short-term borrowings on credit facility
|
|
(15,900
|
)
|
|
—
|
|
||
Employee tax withholding paid for restricted stock upon vesting
|
|
(62
|
)
|
|
(109
|
)
|
||
Proceeds from exercise of stock options
|
|
11
|
|
|
—
|
|
||
Net cash (used in) provided by financing activities
|
|
(2,451
|
)
|
|
11,359
|
|
||
|
|
|
|
|
||||
Net Change in Cash, Cash Equivalents and Restricted Cash
|
|
5,017
|
|
|
12,780
|
|
||
Cash, Cash Equivalents and Restricted Cash, beginning of period
|
|
1,549
|
|
|
8,470
|
|
||
Cash, Cash Equivalents and Restricted Cash, end of period
|
|
$
|
6,566
|
|
|
$
|
21,250
|
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
|
||||
Net cash paid (refunded) during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
95
|
|
|
$
|
2,467
|
|
Income taxes
|
|
$
|
(2,843
|
)
|
|
$
|
10
|
|
Accrued purchases for property, plant, equipment, and mineral properties
|
|
$
|
933
|
|
|
$
|
214
|
|
Note 1
|
— COMPANY BACKGROUND
|
Note 2
|
— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
|
March 31, 2018
|
||||
Product (amounts in thousands)
|
|
Revenue
|
|
Timing of revenue recognition
|
||
Potash
|
|
$
|
27,064
|
|
|
Point in time
|
Trio
|
|
21,237
|
|
|
Point in time
|
|
Water
|
|
4,894
|
|
|
Point in time
|
|
Total
|
|
$
|
53,195
|
|
|
|
|
|
|
|
|
||
|
|
March 31, 2017
|
||||
Product (amounts in thousands)
|
|
Revenue
|
|
Timing of revenue recognition
|
||
Potash
|
|
$
|
27,220
|
|
|
Point in time
|
Trio
|
|
21,112
|
|
|
Point in time
|
|
Water
|
|
323
|
|
|
Point in time
|
|
Total
|
|
$
|
48,655
|
|
|
|
Note 3
|
— EARNINGS (LOSS) PER SHARE
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Net income (loss)
|
|
$
|
1,757
|
|
|
$
|
(13,678
|
)
|
|
|
|
|
|
||||
Basic weighted average common shares outstanding
|
|
127,661
|
|
|
81,992
|
|
||
Add: Dilutive effect of restricted stock
|
|
2,184
|
|
|
—
|
|
||
Add: Dilutive effect of stock options
|
|
920
|
|
|
—
|
|
||
Diluted weighted average common shares outstanding
|
|
130,765
|
|
|
81,992
|
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
Basic
|
|
$
|
0.01
|
|
|
$
|
(0.17
|
)
|
Diluted
|
|
$
|
0.01
|
|
|
$
|
(0.17
|
)
|
|
|
Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||
Anti-dilutive effect of restricted stock
|
|
—
|
|
|
3,399
|
|
Anti-dilutive effect of stock options outstanding
|
|
545
|
|
|
1,866
|
|
Anti-dilutive effect of performance units
|
|
—
|
|
|
63
|
|
|
|
March 31, 2018
|
|
March 31, 2017
|
||||
Cash and cash equivalents
|
|
$
|
6,085
|
|
|
$
|
20,770
|
|
Restricted cash included in other long-term assets
|
|
481
|
|
|
480
|
|
||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows
|
|
$
|
6,566
|
|
|
$
|
21,250
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Finished goods product inventory
|
|
$
|
51,872
|
|
|
$
|
54,577
|
|
In-process mineral inventory
|
|
15,837
|
|
|
19,822
|
|
||
Total product inventory
|
|
67,709
|
|
|
74,399
|
|
||
Current parts inventory, net
|
|
8,207
|
|
|
8,727
|
|
||
Total current inventory, net
|
|
75,916
|
|
|
83,126
|
|
||
Long-term parts inventory, net
|
|
31,106
|
|
|
30,611
|
|
||
Total inventory, net
|
|
$
|
107,022
|
|
|
$
|
113,737
|
|
Note 6
|
— PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Buildings and plant
|
|
$
|
80,343
|
|
|
$
|
79,757
|
|
Machinery and equipment
|
|
236,605
|
|
|
234,861
|
|
||
Vehicles
|
|
5,121
|
|
|
4,835
|
|
||
Office equipment and improvements
|
|
13,516
|
|
|
12,637
|
|
||
Ponds and land improvements
|
|
57,986
|
|
|
56,194
|
|
||
Total depreciable assets
|
|
$
|
393,571
|
|
|
$
|
388,284
|
|
Accumulated depreciation
|
|
(148,255
|
)
|
|
(141,818
|
)
|
||
Total depreciable assets, net
|
|
$
|
245,316
|
|
|
$
|
246,466
|
|
|
|
|
|
|
||||
Mineral properties and development costs
|
|
$
|
138,880
|
|
|
$
|
138,841
|
|
Accumulated depletion
|
|
(28,436
|
)
|
|
(26,840
|
)
|
||
Total depletable assets, net
|
|
$
|
110,444
|
|
|
$
|
112,001
|
|
|
|
|
|
|
||||
Land
|
|
$
|
519
|
|
|
$
|
519
|
|
Construction in progress
|
|
$
|
3,083
|
|
|
$
|
5,556
|
|
Total property, plant, equipment, and mineral properties, net
|
|
$
|
359,362
|
|
|
$
|
364,542
|
|
Note 7
|
— DEBT
|
•
|
$24 million
of Senior Notes, Series A, due April 16, 2020
|
•
|
$18 million
of Senior Notes, Series B, due April 14, 2023
|
•
|
$18 million
of Senior Notes, Series C, due April 16, 2025
|
•
|
For the twelve months ended March 31, 2018, we were required to maintain a minimum adjusted EBITDA of negative
$7.5 million
. We met this covenant with adjusted EBITDA of
$37.0 million
for the trailing twelve months ended March 31, 2018.
|
•
|
For the quarters ending June 30, 2018, and September 30, 2018, we are required to maintain a minimum fixed charge coverage amount of negative
$15 million
and negative
$10 million
, respectively. Thereafter, we are required to maintain a minimum fixed charge coverage ratio that starts at
0.25
to 1.0 for the quarter ending December 31, 2018, and increases to
1.3
to 1.0 for each quarter ending on or after September 30, 2019. As of March 31, 2018, our fixed charge coverage amount was
$15.7 million
, and our fixed charge coverage ratio was
3.78
to 1.0.
|
•
|
We are required to maintain a maximum leverage ratio that starts at
11.5
to 1.0 for the quarter ending June 30, 2018, and decreases each quarter until it reaches
3.5
to 1.0 for each quarter ending on or after September 30, 2019. As of March 31, 2018, our leverage ratio was
1.66
to 1.0.
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Senior Notes
|
$
|
60,000
|
|
|
$
|
60,000
|
|
Less current portion of long-term debt
|
(10,000
|
)
|
|
(10,000
|
)
|
||
Less deferred financing costs
|
(530
|
)
|
|
(563
|
)
|
||
Long-term debt, net
|
$
|
49,470
|
|
|
$
|
49,437
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Interest on Notes and credit facility
|
|
$
|
749
|
|
|
$
|
2,836
|
|
Make-whole payments
|
|
—
|
|
|
794
|
|
||
Amortization of deferred financing costs
|
|
183
|
|
|
821
|
|
||
Gross interest expense
|
|
932
|
|
|
4,451
|
|
||
Less capitalized interest
|
|
(54
|
)
|
|
(30
|
)
|
||
Interest expense, net
|
|
$
|
878
|
|
|
$
|
4,421
|
|
Note 8
|
— FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE
|
Note 9
|
— ASSET RETIREMENT OBLIGATION
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Asset retirement obligation, at beginning of period
|
|
$
|
21,476
|
|
|
$
|
19,976
|
|
Accretion of discount
|
|
417
|
|
|
389
|
|
||
Total asset retirement obligation, at end of period
|
|
$
|
21,893
|
|
|
$
|
20,365
|
|
Note 10
|
— COMMON STOCK
|
Note 11
|
— COMPENSATION PLANS
|
|
|
|
|
|
|
Outstanding as of March 31, 2018
|
|
Restricted Stock
|
|
3,403,056
|
|
|
|
|
|
Non-qualified Stock Options
|
|
3,594,592
|
|
Note 12
|
— INCOME TAXES
|
Note 13
|
— COMMITMENTS AND CONTINGENCIES
|
Note 14
|
— FAIR VALUE
|
Note 15
|
— BUSINESS SEGMENTS
|
Three Months Ended March 31, 2018
|
|
Potash
|
|
Trio
®
|
|
Other
|
|
Consolidated
|
||||||||
Sales
|
|
$
|
27,064
|
|
|
$
|
21,237
|
|
|
$
|
4,894
|
|
|
$
|
53,195
|
|
Less: Freight costs
|
|
3,458
|
|
|
6,276
|
|
|
—
|
|
|
9,734
|
|
||||
Warehousing and handling costs
|
|
1,154
|
|
|
1,118
|
|
|
4
|
|
|
2,276
|
|
||||
Cost of goods sold
|
|
17,476
|
|
|
15,216
|
|
|
588
|
|
|
33,280
|
|
||||
Lower-of-cost-or-market inventory
adjustments |
|
—
|
|
|
705
|
|
|
—
|
|
|
705
|
|
||||
Gross Margin (Deficit)
|
|
$
|
4,976
|
|
|
$
|
(2,078
|
)
|
|
$
|
4,302
|
|
|
$
|
7,200
|
|
Depreciation, depletion and accretion incurred
1
|
|
$
|
7,138
|
|
|
$
|
1,690
|
|
|
$
|
104
|
|
|
$
|
8,932
|
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31, 2017
|
|
Potash
|
|
Trio
®
|
|
Other
|
|
Consolidated
|
||||||||
Sales
|
|
$
|
27,220
|
|
|
$
|
21,112
|
|
|
$
|
323
|
|
|
$
|
48,655
|
|
Less: Freight costs
|
|
2,959
|
|
|
5,762
|
|
|
—
|
|
|
8,721
|
|
||||
Warehousing and handling costs
|
|
1,512
|
|
|
1,258
|
|
|
—
|
|
|
2,770
|
|
||||
Cost of goods sold
|
|
20,421
|
|
|
15,452
|
|
|
—
|
|
|
35,873
|
|
||||
Lower-of-cost-or-market inventory
adjustments |
|
—
|
|
|
3,824
|
|
|
—
|
|
|
3,824
|
|
||||
Gross Margin (Deficit)
|
|
$
|
2,328
|
|
|
$
|
(5,184
|
)
|
|
$
|
323
|
|
|
$
|
(2,533
|
)
|
Depreciation, depletion and accretion incurred
1
|
|
$
|
7,563
|
|
|
$
|
1,699
|
|
|
$
|
61
|
|
|
$
|
9,323
|
|
Note 16
|
— RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
|
•
|
changes in the price, demand, or supply of our products;
|
•
|
our ability to successfully identify and implement any opportunities to expand sales of water, by-products, and other non-potassium related products or other revenue diversification activities;
|
•
|
challenges to our water rights;
|
•
|
our ability to comply with the terms of our senior notes and revolving credit facility, including the underlying covenants, to avoid a default under those agreements;
|
•
|
our ability to expand Trio
®
sales internationally and manage risks associated with international sales, including pricing pressure and freight costs;
|
•
|
our ability to successfully identify and consummate profitable growth opportunities;
|
•
|
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;
|
•
|
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 Intrepid's 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 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; 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, 2017
, as updated by this report.
|
(in thousands, except per ton amounts)
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Sales
|
|
$
|
53,195
|
|
|
$
|
48,655
|
|
Less:
|
|
|
|
|
||||
Freight costs
|
|
9,734
|
|
|
8,721
|
|
||
Warehousing and handling costs
|
|
2,276
|
|
|
2,770
|
|
||
Cost of goods sold
|
|
33,280
|
|
|
35,873
|
|
||
Lower-of-cost-or-market inventory adjustments
|
|
705
|
|
|
3,824
|
|
||
Gross Margin (Deficit)
|
|
$
|
7,200
|
|
|
$
|
(2,533
|
)
|
Net Income (Loss)
|
|
$
|
1,757
|
|
|
$
|
(13,678
|
)
|
Production volume:
|
|
|
||||
Potash
|
|
125
|
|
|
118
|
|
Langbeinite
|
|
47
|
|
|
71
|
|
Sales volume:
|
|
|
|
|
||
Potash
|
|
97
|
|
|
101
|
|
Trio
®
|
|
77
|
|
|
76
|
|
Average Net Realized Sales Price per Ton
1
|
|
|
||||||
Potash
|
|
$
|
243
|
|
|
$
|
240
|
|
Trio
®
|
|
$
|
194
|
|
|
$
|
202
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Interest on Notes and credit facility
|
|
$
|
749
|
|
|
$
|
2,836
|
|
Make-whole payments
|
|
—
|
|
|
794
|
|
||
Amortization of deferred financing costs
|
|
183
|
|
|
821
|
|
||
Gross interest expense
|
|
932
|
|
|
4,451
|
|
||
Less capitalized interest
|
|
(54
|
)
|
|
(30
|
)
|
||
Interest expense, net
|
|
$
|
878
|
|
|
$
|
4,421
|
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per ton amounts)
|
|
2018
|
|
2017
|
||||
Sales
|
|
$
|
27,064
|
|
|
$
|
27,220
|
|
Less: Freight costs
|
|
3,458
|
|
|
2,959
|
|
||
Warehousing and handling costs
|
|
1,154
|
|
|
1,512
|
|
||
Cost of goods sold
|
|
17,476
|
|
|
20,421
|
|
||
Lower-of-cost-or-market inventory
adjustments |
|
—
|
|
|
—
|
|
||
Gross Margin
|
|
$
|
4,976
|
|
|
$
|
2,328
|
|
Depreciation, depletion and accretion incurred
1
|
|
$
|
7,138
|
|
|
$
|
7,563
|
|
Sales volumes (in tons)
|
|
97
|
|
|
101
|
|
||
Production volumes (in tons)
|
|
125
|
|
|
118
|
|
Average Net Realized Sales Price per Ton
2
|
|
$
|
243
|
|
|
$
|
240
|
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per ton amounts)
|
|
2018
|
|
2017
|
||||
Sales
|
|
$
|
21,237
|
|
|
$
|
21,112
|
|
Less: Freight costs
|
|
6,276
|
|
|
5,762
|
|
||
Warehousing and handling costs
|
|
1,118
|
|
|
1,258
|
|
||
Cost of goods sold
|
|
15,216
|
|
|
15,452
|
|
||
Lower-of-cost-or-market inventory
adjustments |
|
705
|
|
|
3,824
|
|
||
Gross Deficit
|
|
$
|
(2,078
|
)
|
|
$
|
(5,184
|
)
|
Depreciation, depletion and accretion incurred
1
|
|
$
|
1,690
|
|
|
$
|
1,699
|
|
Sales volumes (in tons)
|
|
77
|
|
|
76
|
|
||
Production volumes (in tons)
|
|
47
|
|
|
71
|
|
Average Net Realized Sales Price per Ton
2
|
|
$
|
194
|
|
|
$
|
202
|
|
|
|
United States
|
|
Export
|
For the three months ended March 31, 2018
|
|
77%
|
|
23%
|
|
|
|
|
|
For the three months ended March 31, 2017
|
|
67%
|
|
33%
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Cash flows provided by (used in) operating activities
|
|
$
|
13,904
|
|
|
$
|
(1,709
|
)
|
Cash flows (used in) provided by investing activities
|
|
$
|
(6,436
|
)
|
|
$
|
3,130
|
|
Cash flows (used in) provided by financing activities
|
|
$
|
(2,451
|
)
|
|
$
|
11,359
|
|
•
|
$24 million
of Senior Notes, Series A, due April 16, 2020
|
•
|
$18 million
of Senior Notes, Series B, due April 14, 2023
|
•
|
$18 million
of Senior Notes, Series C, due April 16, 2025
|
•
|
For the twelve months ended March 31, 2018, we were required to maintain a minimum adjusted EBITDA of negative
$7.5 million
. We met this covenant with adjusted EBITDA of
$37.0 million
for the trailing twelve months ended March 31, 2018.
|
•
|
For the quarters ending June 30, 2018, and September 30, 2018, we are required to maintain a minimum fixed charge coverage amount of negative
$15 million
and negative
$10 million
, respectively. Thereafter, we are required to maintain a minimum fixed charge coverage ratio that starts at
0.25
to 1.0 for the quarter ending December 31, 2018, and increases to
1.3
to 1.0 for each quarter ending on or after September 30, 2019. As of March 31, 2018, our fixed charge coverage amount was
$15.7 million
, and our fixed charge coverage ratio was
3.78
to 1.0,
|
•
|
We are required to maintain a maximum leverage ratio that starts at
11.5
to 1.0 for the quarter ending June 30, 2018, and decreases each quarter until it reaches
3.5
to 1.0 for each quarter ending on or after September 30, 2019. As of March 31, 2018, our leverage ratio was
1.66
to 1.0.
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Senior Notes
|
$
|
60,000
|
|
|
$
|
60,000
|
|
Less current portion of long-term debt
|
(10,000
|
)
|
|
(10,000
|
)
|
||
Less deferred financing costs
|
(530
|
)
|
|
(563
|
)
|
||
Long-term debt, net
|
$
|
49,470
|
|
|
$
|
49,437
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||
(in thousands, except per ton amounts)
|
|
Potash
|
|
Trio
®
|
|
Total
|
|
Potash
|
|
Trio
®
|
|
Total
|
||||||||||||
Sales
|
|
$
|
27,064
|
|
|
$
|
21,237
|
|
|
$
|
48,301
|
|
|
$
|
27,220
|
|
|
$
|
21,112
|
|
|
$
|
48,332
|
|
Freight costs
|
|
3,458
|
|
|
6,276
|
|
|
9,734
|
|
|
2,959
|
|
|
5,762
|
|
|
8,721
|
|
||||||
Subtotal
|
|
$
|
23,606
|
|
|
$
|
14,961
|
|
|
$
|
38,567
|
|
|
$
|
24,261
|
|
|
$
|
15,350
|
|
|
$
|
39,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tons sold
|
|
97
|
|
|
77
|
|
|
|
|
101
|
|
|
76
|
|
|
|
||||||||
Average net realized sales price per ton
|
|
$
|
243
|
|
|
$
|
194
|
|
|
|
|
$
|
240
|
|
|
$
|
202
|
|
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Issuer Purchases of Equity Securities
|
||||||||
Period
|
|
(a)
Total Number of Shares Purchased 1 |
|
(b)
Average Price Paid Per Share |
|
(c)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
(d)
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plan or Programs |
January 1, 2018, through January 31, 2018
|
|
—
|
|
—
|
|
—
|
|
N/A
|
February 1, 2018, through February 28, 2018
|
|
15,900
|
|
$3.87
|
|
—
|
|
N/A
|
March 1, 2018, through March 31, 2018
|
|
—
|
|
—
|
|
—
|
|
N/A
|
Total
|
|
15,900
|
|
$3.87
|
|
—
|
|
N/A
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit No.
|
|
Description
|
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a), as amended.*
|
|
|
|
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a), as amended.*
|
|
|
|
|
|
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
|
|
|
|
|
|
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
|
|
|
|
|
|
Mine Safety Disclosure Exhibit.*
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.*
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema.*
|
|
|
|
101.CAL
|
|
XBRL Extension Calculation Linkbase.*
|
|
|
|
101.LAB
|
|
XBRL Extension Label Linkbase.*
|
|
|
|
101.PRE
|
|
XBRL Extension Presentation Linkbase.*
|
|
|
|
101.DEF
|
|
XBRL Extension Definition Linkbase.*
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
|
|
INTREPID POTASH, INC.
(Registrant) |
|
|
|
Dated: April 24, 2018
|
|
/s/ Robert P. Jornayvaz III
|
|
|
Robert P. Jornayvaz III - Executive Chairman of the Board, President, and Chief Executive Officer
(Principal Executive Officer and Duly Authorized Officer) |
|
|
|
Dated: April 24, 2018
|
|
/s/ Joseph G. Montoya
|
|
|
Joseph G. Montoya - Vice President and Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer)
|
1 Year Intrepid Potash Chart |
1 Month Intrepid Potash Chart |
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