We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 | |
---|---|---|---|---|---|---|---|---|
-0.10 | -0.50% | 20.02 | 20.46 | 19.97 | 20.13 | 111,885 | 01:00:00 |
|
x
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the Quarterly Period Ended March 31, 2019
|
|
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.) |
1001 17
th
Street, Suite 1050, Denver, Colorado
|
80202
|
(Address of principal executive offices)
|
(Zip Code)
|
|
(Former address, if changed since last report)
|
Title of each class
|
Trading symbol
|
Name of each exchange on which registered
|
Common Stock, par value $0.001 per share
|
IPI
|
New York Stock Exchange
|
Large accelerated filer
¨
|
Accelerated filer
x
|
Non
-
accelerated filer
¨
|
Smaller reporting company
¨
|
Emerging growth company
¨
|
|
|
|
Page
|
|
|
March 31,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
34,032
|
|
|
$
|
33,222
|
|
Accounts receivable:
|
|
|
|
|
||||
Trade, net
|
|
28,217
|
|
|
25,161
|
|
||
Other receivables, net
|
|
959
|
|
|
597
|
|
||
Inventory, net
|
|
86,270
|
|
|
82,046
|
|
||
Prepaid expenses and other current assets
|
|
7,480
|
|
|
4,332
|
|
||
Total current assets
|
|
156,958
|
|
|
145,358
|
|
||
|
|
|
|
|
||||
Property, plant, equipment, and mineral properties, net
|
|
347,670
|
|
|
346,209
|
|
||
Long-term parts inventory, net
|
|
29,895
|
|
|
30,031
|
|
||
Other assets, net
|
|
3,594
|
|
|
3,633
|
|
||
Total Assets
|
|
$
|
538,117
|
|
|
$
|
525,231
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Accounts payable:
|
|
|
|
|
||||
Trade
|
|
$
|
12,017
|
|
|
$
|
9,107
|
|
Related parties
|
|
28
|
|
|
28
|
|
||
Income taxes payable
|
|
914
|
|
|
914
|
|
||
Accrued liabilities
|
|
8,535
|
|
|
8,717
|
|
||
Accrued employee compensation and benefits
|
|
4,204
|
|
|
4,124
|
|
||
Other current liabilities
|
|
10,725
|
|
|
11,891
|
|
||
Total current liabilities
|
|
36,423
|
|
|
34,781
|
|
||
|
|
|
|
|
||||
Long-term debt, net
|
|
49,670
|
|
|
49,642
|
|
||
Asset retirement obligation
|
|
23,492
|
|
|
23,125
|
|
||
Operating lease liabilities
|
|
3,766
|
|
|
—
|
|
||
Other non-current liabilities
|
|
420
|
|
|
420
|
|
||
Total Liabilities
|
|
113,771
|
|
|
107,968
|
|
||
Commitments and Contingencies
|
|
|
|
|
||||
Common stock, $0.001 par value; 400,000,000 shares authorized;
|
|
|
|
|
||||
128,781,031 and 128,716,595 shares outstanding
|
|
|
|
|
||||
at March 31, 2019, and December 31, 2018, respectively
|
|
129
|
|
|
129
|
|
||
Additional paid-in capital
|
|
650,130
|
|
|
649,202
|
|
||
Retained deficit
|
|
(225,913
|
)
|
|
(232,068
|
)
|
||
Total Stockholders' Equity
|
|
424,346
|
|
|
417,263
|
|
||
Total Liabilities and Stockholders' Equity
|
|
$
|
538,117
|
|
|
$
|
525,231
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Sales
|
|
$
|
57,554
|
|
|
$
|
57,320
|
|
Less:
|
|
|
|
|
||||
Freight costs
|
|
10,456
|
|
|
10,483
|
|
||
Warehousing and handling costs
|
|
2,236
|
|
|
2,273
|
|
||
Cost of goods sold
|
|
31,694
|
|
|
36,659
|
|
||
Lower of cost or net realizable value inventory adjustments
|
|
—
|
|
|
705
|
|
||
Gross Margin
|
|
13,168
|
|
|
7,200
|
|
||
|
|
|
|
|
||||
Selling and administrative
|
|
5,807
|
|
|
3,970
|
|
||
Accretion of asset retirement obligation
|
|
417
|
|
|
417
|
|
||
Care and maintenance expense
|
|
149
|
|
|
128
|
|
||
Other operating expense
|
|
371
|
|
|
168
|
|
||
Operating Income
|
|
6,424
|
|
|
2,517
|
|
||
|
|
|
|
|
||||
Other Income (Expense)
|
|
|
|
|
||||
Interest expense, net
|
|
(603
|
)
|
|
(878
|
)
|
||
Interest income
|
|
—
|
|
|
98
|
|
||
Other income
|
|
334
|
|
|
20
|
|
||
Income Before Income Taxes
|
|
6,155
|
|
|
1,757
|
|
||
|
|
|
|
|
||||
Income Tax Expense
|
|
—
|
|
|
—
|
|
||
Net Income
|
|
$
|
6,155
|
|
|
$
|
1,757
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding:
|
|
|
|
|
||||
Basic
|
|
128,730
|
|
|
127,661
|
|
||
Diluted
|
|
130,880
|
|
|
130,765
|
|
||
Earnings Per Share:
|
|
|
|
|
||||
Basic
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
|
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 common stock used to fund employee income tax withholding due upon vesting
|
|
30,708
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(62
|
)
|
Exercise of stock options
|
|
11,199
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
Balance, March 31, 2018
|
|
127,688,437
|
|
|
128
|
|
|
646,709
|
|
|
(242,094
|
)
|
|
404,743
|
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Deficit
|
|
Total Stockholders' Equity
|
|||||||||||
|
|
Shares
|
|
Amount
|
|||||||||||||||
Balance, December 31, 2018
|
|
128,716,595
|
|
|
$
|
129
|
|
|
$
|
649,202
|
|
|
$
|
(232,068
|
)
|
|
$
|
417,263
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,155
|
|
|
6,155
|
|
||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
1,031
|
|
|
—
|
|
|
1,031
|
|
||||
Vesting of restricted common stock, net of common stock used to fund employee income tax withholding due upon vesting
|
|
55,249
|
|
|
—
|
|
|
(112
|
)
|
|
—
|
|
|
(112
|
)
|
||||
Exercise of stock options
|
|
9,187
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||
Balance, March 31, 2019
|
|
128,781,031
|
|
|
$
|
129
|
|
|
$
|
650,130
|
|
|
$
|
(225,913
|
)
|
|
$
|
424,346
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities:
|
|
|
|
|
||||
Net income
|
|
$
|
6,155
|
|
|
$
|
1,757
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
|
8,746
|
|
|
8,515
|
|
||
Accretion of asset retirement obligation
|
|
417
|
|
|
417
|
|
||
Amortization of deferred financing costs
|
|
68
|
|
|
183
|
|
||
Stock-based compensation
|
|
1,031
|
|
|
947
|
|
||
Lower of cost or net realizable value inventory adjustments
|
|
—
|
|
|
705
|
|
||
Loss on disposal of assets
|
|
19
|
|
|
(34
|
)
|
||
Allowance for parts inventory obsolescence
|
|
4
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Trade accounts receivable, net
|
|
(3,057
|
)
|
|
(11,828
|
)
|
||
Other receivables, net
|
|
(362
|
)
|
|
(207
|
)
|
||
Refundable income taxes
|
|
—
|
|
|
2,844
|
|
||
Inventory, net
|
|
(4,091
|
)
|
|
6,009
|
|
||
Prepaid expenses and other current assets
|
|
103
|
|
|
914
|
|
||
Accounts payable, accrued liabilities, and accrued employee
compensation and benefits |
|
2,455
|
|
|
1
|
|
||
Operating lease liabilities
|
|
(479
|
)
|
|
—
|
|
||
Other liabilities
|
|
(2,888
|
)
|
|
3,681
|
|
||
Net cash provided by operating activities
|
|
8,121
|
|
|
13,904
|
|
||
|
|
|
|
|
||||
Cash Flows from Investing Activities:
|
|
|
|
|
||||
Additions to property, plant, equipment, and mineral properties
|
|
(3,958
|
)
|
|
(6,470
|
)
|
||
Deposit on asset purchase
|
|
(3,250
|
)
|
|
—
|
|
||
Proceeds from sale of property, plant, equipment, and mineral properties
|
|
—
|
|
|
34
|
|
||
Net cash used in investing activities
|
|
(7,208
|
)
|
|
(6,436
|
)
|
||
|
|
|
|
|
||||
Cash Flows from Financing Activities:
|
|
|
|
|
||||
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
|
|
(112
|
)
|
|
(62
|
)
|
||
Proceeds from exercise of stock options
|
|
9
|
|
|
11
|
|
||
Net cash used in financing activities
|
|
(103
|
)
|
|
(2,451
|
)
|
||
|
|
|
|
|
||||
Net Change in Cash, Cash Equivalents and Restricted Cash
|
|
810
|
|
|
5,017
|
|
||
Cash, Cash Equivalents and Restricted Cash, beginning of period
|
|
33,704
|
|
|
1,549
|
|
||
Cash, Cash Equivalents and Restricted Cash, end of period
|
|
$
|
34,514
|
|
|
$
|
6,566
|
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
|
||||
Net cash paid (refunded) during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
49
|
|
|
$
|
95
|
|
Income taxes
|
|
$
|
—
|
|
|
$
|
(2,843
|
)
|
Accrued purchases for property, plant, equipment, and mineral properties
|
|
$
|
1,435
|
|
|
$
|
933
|
|
Right-of-use assets exchanged for new operating lease liabilities
|
|
$
|
5,916
|
|
|
$
|
—
|
|
Note 1
|
— COMPANY BACKGROUND
|
Note 2
|
— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Note 3
|
— EARNINGS PER SHARE
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Net income
|
|
$
|
6,155
|
|
|
$
|
1,757
|
|
|
|
|
|
|
||||
Basic weighted-average common shares outstanding
|
|
128,730
|
|
|
127,661
|
|
||
Add: Dilutive effect of restricted stock
|
|
2,033
|
|
|
2,184
|
|
||
Add: Dilutive effect of stock options
|
|
117
|
|
|
920
|
|
||
Diluted weighted-average common shares outstanding
|
|
130,880
|
|
|
130,765
|
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
Basic
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
|
Three Months Ended March 31,
|
||||
|
|
2019
|
|
2018
|
||
Anti-dilutive effect of restricted stock
|
|
79
|
|
|
—
|
|
|
|
|
|
|
||
Anti-dilutive effect of stock options outstanding
|
|
1,701
|
|
|
545
|
|
|
|
March 31, 2019
|
|
March 31, 2018
|
||||
Cash and cash equivalents
|
|
$
|
34,032
|
|
|
$
|
6,085
|
|
Restricted cash included in other long-term assets
|
|
482
|
|
|
481
|
|
||
Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows
|
|
$
|
34,514
|
|
|
$
|
6,566
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Finished goods product inventory
|
|
$
|
56,695
|
|
|
$
|
48,370
|
|
In-process mineral inventory
|
|
19,729
|
|
|
24,325
|
|
||
Total product inventory
|
|
76,424
|
|
|
72,695
|
|
||
Current parts inventory, net
|
|
9,846
|
|
|
9,351
|
|
||
Total current inventory, net
|
|
86,270
|
|
|
82,046
|
|
||
Long-term parts inventory, net
|
|
29,895
|
|
|
30,031
|
|
||
Total inventory, net
|
|
$
|
116,165
|
|
|
$
|
112,077
|
|
Note 6
|
— PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Land
|
|
$
|
519
|
|
|
$
|
519
|
|
Ponds and land improvements
|
|
59,007
|
|
|
58,961
|
|
||
Mineral properties and development costs
|
|
139,443
|
|
|
139,418
|
|
||
Buildings and plant
|
|
81,483
|
|
|
81,429
|
|
||
Machinery and equipment
|
|
243,941
|
|
|
241,977
|
|
||
Vehicles
|
|
5,807
|
|
|
5,669
|
|
||
Office equipment and improvements
|
|
13,945
|
|
|
13,779
|
|
||
Operating lease ROU assets
|
|
5,916
|
|
|
—
|
|
||
Construction in progress
|
|
4,190
|
|
|
2,822
|
|
||
Total property, plant, equipment, and mineral properties, gross
|
|
$
|
554,251
|
|
|
$
|
544,574
|
|
Less: accumulated depreciation, depletion, and amortization
|
|
(206,581
|
)
|
|
(198,365
|
)
|
||
Total property, plant, equipment, and mineral properties, net
|
|
$
|
347,670
|
|
|
$
|
346,209
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Depreciation
|
|
$
|
6,855
|
|
|
$
|
6,919
|
|
Depletion
|
|
1,418
|
|
|
1,596
|
|
||
Amortization of right of use assets
|
|
473
|
|
|
—
|
|
||
Total incurred
|
|
$
|
8,746
|
|
|
$
|
8,515
|
|
Note 7
|
— LEASES
|
Leases
|
|
Classification on the Balance Sheet
|
|
Balance as of
March 31, 2019 |
||
Assets
|
|
|
|
|
||
Operating lease ROU assets, net
|
|
Property, plant, equipment, and mineral properties, net
|
|
$
|
5,443
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
||
Current operating lease liabilities
|
|
Other current liabilities
|
|
$
|
1,851
|
|
Non-current operating lease liabilities
|
|
Operating lease liabilities
|
|
$
|
3,766
|
|
|
|
For the Three Months Ended March 31, 2019
|
||
The components of lease expense were as follows:
|
|
|
||
Operating lease expense
|
|
$
|
573
|
|
Short-term lease expense
|
|
28
|
|
|
Total lease expense
|
|
$
|
601
|
|
|
|
Operating Leases
|
||
2019 (excluding the three months ended March 31, 2019)
|
|
$
|
1,635
|
|
2020
|
|
1,906
|
|
|
2021
|
|
1,551
|
|
|
2022
|
|
996
|
|
|
2023
|
|
73
|
|
|
Thereafter
|
|
—
|
|
|
Total future minimum lease payments
|
|
$
|
6,161
|
|
Less - amount representing interest
|
|
544
|
|
|
Present value of future minimum lease payments
|
|
$
|
5,617
|
|
Less - current lease obligations
|
|
1,851
|
|
|
Long-term lease obligations
|
|
$
|
3,766
|
|
Years Ending December 31,
|
|
Operating Leases
|
||
2019
|
|
$
|
2,266
|
|
2020
|
|
1,874
|
|
|
2021
|
|
1,602
|
|
|
2022
|
|
1,083
|
|
|
2023
|
|
172
|
|
|
Thereafter
|
|
1,343
|
|
|
Total
|
|
$
|
8,340
|
|
Note 8
|
— DEBT
|
•
|
$20 million
of Senior Notes, Series A, due April 16, 2020
|
•
|
$15 million
of Senior Notes, Series B, due April 14, 2023
|
•
|
$15 million
of Senior Notes, Series C, due April 16, 2025
|
•
|
We were required to maintain a minimum fixed charge coverage ratio of
0.75
to 1.0 for the four quarters ended March 31, 2019. Our fixed charge coverage ratio as of March 31, 2019, was
14.2
to 1.0, therefore we were in compliance with this covenant. Going forward we are required to maintain a minimum fixed charge coverage ratio of
1.0
to 1.0 for the four quarters ending June 30, 2019, and
1.3
to 1.0 for each four-quarter period ending on or after September 30, 2019.
|
•
|
For the quarter ended March 31, 2019, we were allowed a maximum leverage ratio of
5.5
to 1.0. Our leverage ratio was
0.9
to 1.0 for the quarter ending March 31, 2019, therefore we were in compliance with this covenant. Going forward we are allowed a maximum leverage ratio of
4.5
to 1.0 for the quarter ending June 30, 2019, and
3.5
to 1.0 for each quarter ending on or after September 30, 2019.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Notes
|
$
|
50,000
|
|
|
$
|
50,000
|
|
Less deferred financing costs
|
(330
|
)
|
|
(358
|
)
|
||
Long-term debt, net
|
$
|
49,670
|
|
|
$
|
49,642
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Interest on Notes and credit facility
|
|
$
|
573
|
|
|
$
|
749
|
|
Amortization of deferred financing costs
|
|
68
|
|
|
183
|
|
||
Gross interest expense
|
|
641
|
|
|
932
|
|
||
Less capitalized interest
|
|
(38
|
)
|
|
(54
|
)
|
||
Interest expense, net
|
|
$
|
603
|
|
|
$
|
878
|
|
Note 9
|
— FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE
|
Note 10
|
— ASSET RETIREMENT OBLIGATION
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Asset retirement obligation, at beginning of period
|
|
$
|
23,125
|
|
|
$
|
21,476
|
|
Accretion of discount
|
|
417
|
|
|
417
|
|
||
Total asset retirement obligation, at end of period
|
|
$
|
23,542
|
|
|
$
|
21,893
|
|
Note 11
|
— REVENUE
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Beginning balance
|
|
$
|
11,678
|
|
|
$
|
—
|
|
Additions
|
|
—
|
|
|
3,879
|
|
||
Recognized as revenue during period
|
|
(3,161
|
)
|
|
(192
|
)
|
||
Ending balance
|
|
$
|
8,517
|
|
|
$
|
3,687
|
|
|
|
For the Three Months Ended March 31, 2019
|
||||||||||||||||||
Product
|
|
Potash Segment
|
|
Trio
®
Segment
|
|
Oilfield Solutions Segment
|
|
Intersegment Eliminations
|
|
Total
|
||||||||||
Potash
|
|
$
|
28,545
|
|
|
$
|
—
|
|
|
$
|
1,822
|
|
|
$
|
(1,208
|
)
|
|
$
|
29,159
|
|
Trio
®
|
|
—
|
|
|
16,550
|
|
|
—
|
|
|
—
|
|
|
16,550
|
|
|||||
Water
|
|
340
|
|
|
942
|
|
|
4,104
|
|
|
—
|
|
|
5,386
|
|
|||||
Salt
|
|
3,001
|
|
|
317
|
|
|
—
|
|
|
—
|
|
|
3,318
|
|
|||||
Magnesium Chloride
|
|
1,740
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,740
|
|
|||||
Brines
|
|
704
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
704
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
697
|
|
|
—
|
|
|
697
|
|
|||||
Total Revenue
|
|
$
|
34,330
|
|
|
$
|
17,809
|
|
|
$
|
6,623
|
|
|
$
|
(1,208
|
)
|
|
$
|
57,554
|
|
|
|
For the Three Months Ended March 31, 2018
|
||||||||||||||||||
Product
|
|
Potash Segment
|
|
Trio
®
Segment
|
|
Oilfield Solutions Segment
|
|
Intersegment Eliminations
|
|
Total
|
||||||||||
Potash
|
|
$
|
27,064
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27,064
|
|
Trio
®
|
|
—
|
|
|
21,237
|
|
|
—
|
|
|
—
|
|
|
21,237
|
|
|||||
Water
|
|
170
|
|
|
505
|
|
|
4,849
|
|
|
—
|
|
|
5,524
|
|
|||||
Salt
|
|
1,733
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
1,811
|
|
|||||
Magnesium Chloride
|
|
1,405
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,405
|
|
|||||
Brines
|
|
234
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
234
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
45
|
|
|||||
Total Revenue
|
|
$
|
30,606
|
|
|
$
|
21,820
|
|
|
$
|
4,894
|
|
|
$
|
—
|
|
|
$
|
57,320
|
|
Note 12
|
— COMPENSATION PLANS
|
|
|
|
|
|
|
Outstanding as of March 31, 2019
|
|
Restricted Shares
|
|
2,261,749
|
|
|
|
|
|
Non-qualified Stock Options
|
|
3,231,327
|
|
Note 13
|
— INCOME TAXES
|
Note 14
|
— COMMITMENTS AND CONTINGENCIES
|
Note 15
|
— FAIR VALUE
|
Note 16
|
— BUSINESS SEGMENTS
|
Three Months Ended
March 31, 2019
|
|
Potash
|
|
Trio
®
|
|
Oilfield Solutions
|
|
Other
|
|
Consolidated
|
||||||||||
Sales
|
|
$
|
34,330
|
|
|
$
|
17,809
|
|
|
$
|
6,623
|
|
|
$
|
(1,208
|
)
|
|
$
|
57,554
|
|
Less: Freight costs
|
|
4,640
|
|
|
5,035
|
|
|
781
|
|
|
—
|
|
|
10,456
|
|
|||||
Warehousing and handling
costs |
|
1,267
|
|
|
969
|
|
|
—
|
|
|
—
|
|
|
2,236
|
|
|||||
Cost of goods sold
|
|
19,059
|
|
|
11,074
|
|
|
2,769
|
|
|
(1,208
|
)
|
|
31,694
|
|
|||||
Gross Margin
|
|
$
|
9,364
|
|
|
$
|
731
|
|
|
$
|
3,073
|
|
|
$
|
—
|
|
|
$
|
13,168
|
|
Depreciation, depletion, and amortization incurred
1
|
|
$
|
6,795
|
|
|
$
|
1,558
|
|
|
$
|
190
|
|
|
$
|
203
|
|
|
$
|
8,746
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended
March 31, 2018
|
|
Potash
|
|
Trio
®
|
|
Oilfield Solutions
|
|
Other
|
|
Consolidated
|
||||||||||
Sales
|
|
$
|
30,606
|
|
|
$
|
21,820
|
|
|
$
|
4,894
|
|
|
$
|
—
|
|
|
$
|
57,320
|
|
Less: Freight costs
|
|
4,206
|
|
|
6,277
|
|
|
—
|
|
|
—
|
|
|
10,483
|
|
|||||
Warehousing and handling
costs |
|
1,155
|
|
|
1,118
|
|
|
—
|
|
|
—
|
|
|
2,273
|
|
|||||
Cost of goods sold
|
|
20,269
|
|
|
15,798
|
|
|
592
|
|
|
—
|
|
|
36,659
|
|
|||||
Lower of cost or net
realizable value inventory adjustments |
|
—
|
|
|
705
|
|
|
—
|
|
|
—
|
|
|
705
|
|
|||||
Gross Margin (Deficit)
|
|
$
|
4,976
|
|
|
$
|
(2,078
|
)
|
|
$
|
4,302
|
|
|
$
|
—
|
|
|
$
|
7,200
|
|
Depreciation, depletion, and amortization incurred
1
|
|
$
|
6,778
|
|
|
$
|
1,633
|
|
|
$
|
64
|
|
|
$
|
40
|
|
|
$
|
8,515
|
|
Note 17
|
— SUBSEQUENT EVENT
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
|
•
|
changes in the price, demand, or supply of our products and services;
|
•
|
our ability to successfully identify and implement any opportunities to grow our business whether through expanded sales of Trio
®
, water, byproducts, and other non-potassium related products or other revenue diversification activities;
|
•
|
challenges to our water rights;
|
•
|
our ability to integrate the Dinwiddie Jal Ranch assets into our existing business and achieve the expected benefits of the acquisition;
|
•
|
our ability to comply with the terms of our senior notes and our revolving credit facility, including the underlying covenants, to avoid a default under those agreements;
|
•
|
our ability to sell Trio
®
internationally and manage risks associated with international sales, including pricing pressure and freight costs;
|
•
|
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 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 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, 2018
, as updated by this report.
|
(in thousands, except per ton amounts)
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Sales
1
|
|
$
|
57,554
|
|
|
$
|
57,320
|
|
|
|
|
|
|
||||
Cost of goods sold
|
|
$
|
31,694
|
|
|
$
|
36,659
|
|
|
|
|
|
|
||||
Gross Margin
|
|
$
|
13,168
|
|
|
$
|
7,200
|
|
|
|
|
|
|
||||
Selling and administrative
|
|
5,807
|
|
|
3,970
|
|
||
|
|
|
|
|
||||
Net Income
|
|
$
|
6,155
|
|
|
$
|
1,757
|
|
|
|
|
|
|
||||
Average net realized sales price per ton
2
|
|
|
|
|
||||
Potash
|
|
$
|
288
|
|
|
$
|
243
|
|
Trio
®
|
|
$
|
206
|
|
|
$
|
194
|
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per ton amounts)
|
|
2019
|
|
2018
|
||||
Sales
1
|
|
$
|
34,330
|
|
|
$
|
30,606
|
|
Less: Freight costs
|
|
4,640
|
|
|
4,206
|
|
||
Warehousing and handling
costs |
|
1,267
|
|
|
1,155
|
|
||
Cost of goods sold
|
|
19,059
|
|
|
20,269
|
|
||
Gross Margin
|
|
$
|
9,364
|
|
|
$
|
4,976
|
|
Depreciation, depletion, and amortization incurred
2
|
|
$
|
6,795
|
|
|
$
|
6,778
|
|
|
|
|
|
|
||||
Potash sales volumes (in tons)
|
|
88
|
|
|
97
|
|
||
Potash production volumes (in tons)
|
|
110
|
|
|
125
|
|
||
|
|
|
|
|
||||
Average potash net realized sales price per ton
3
|
|
$
|
288
|
|
|
$
|
243
|
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per ton amounts)
|
|
2019
|
|
2018
|
||||
Sales
1
|
|
$
|
17,809
|
|
|
$
|
21,820
|
|
Less: Freight costs
|
|
5,035
|
|
|
6,277
|
|
||
Warehousing and handling costs
|
|
969
|
|
|
1,118
|
|
||
Cost of goods sold
|
|
11,074
|
|
|
15,798
|
|
||
Lower of cost or net
realizable value inventory adjustments |
|
—
|
|
|
705
|
|
||
Gross Margin (Deficit)
|
|
$
|
731
|
|
|
$
|
(2,078
|
)
|
Depreciation, depletion, and amortization incurred
2
|
|
$
|
1,558
|
|
|
$
|
1,633
|
|
|
|
|
|
|
||||
Sales volumes (in tons)
|
|
56
|
|
|
77
|
|
||
Production volumes (in tons)
|
|
63
|
|
|
47
|
|
||
|
|
|
|
|
||||
Average Trio
®
net realized sales price per ton
3
|
|
206
|
|
|
194
|
|
|
|
United States
|
|
Export
|
For the Three Months Ended March 31, 2019
|
|
72%
|
|
28%
|
|
|
|
|
|
For the Three Months Ended March 31, 2018
|
|
77%
|
|
23%
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per ton amounts)
|
|
2019
|
|
2018
|
||||
Sales
|
|
$
|
6,623
|
|
|
$
|
4,894
|
|
Less: Freight costs
|
|
781
|
|
|
—
|
|
||
Cost of goods sold
|
|
2,769
|
|
|
592
|
|
||
Gross Margin
|
|
$
|
3,073
|
|
|
$
|
4,302
|
|
Depreciation, depletion, and amortization incurred
|
|
$
|
190
|
|
|
$
|
64
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash flows provided by operating activities
|
|
$
|
8,121
|
|
|
$
|
13,904
|
|
Cash flows used in investing activities
|
|
$
|
(7,208
|
)
|
|
$
|
(6,436
|
)
|
Cash flows used in financing activities
|
|
$
|
(103
|
)
|
|
$
|
(2,451
|
)
|
•
|
$20 million
of Senior Notes, Series A, due April 16, 2020
|
•
|
$15 million
of Senior Notes, Series B, due April 14, 2023
|
•
|
$15 million
of Senior Notes, Series C, due April 16, 2025
|
•
|
We were required to maintain a minimum fixed charge coverage ratio of
0.75
to 1.0 for the four quarters ended March 31, 2019. Our fixed charge coverage ratio as of March 31, 2019, was
14.2
to 1.0, therefore we were in compliance with this covenant. Going forward we are required to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 for the four quarters ending June 30, 2019, and
1.3
to 1.0 for each four-quarter period ending on or after September 30, 2019.
|
•
|
For the quarter ended March 31, 2019, we were allowed a maximum leverage ratio of
5.5
to 1.0. Our leverage ratio was
0.9
to 1.0 for the quarter ending March 31, 2019, therefore we were in compliance with this covenant. Going forward we are allowed a maximum leverage ratio of 4.5 to 1.0 for the quarter ending June 30, 2019, and
3.5
to 1.0 for each quarter ending on or after September 30, 2019.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Notes
|
$
|
50,000
|
|
|
$
|
50,000
|
|
Less deferred financing costs
|
(330
|
)
|
|
(358
|
)
|
||
Long-term debt, net
|
$
|
49,670
|
|
|
$
|
49,642
|
|
|
|
Three Months Ended March 31, 2019
|
||||||
(in thousands, except per ton amounts)
|
|
Potash
|
|
Trio
®
|
||||
Total Segment Sales
|
|
$
|
34,330
|
|
|
$
|
17,809
|
|
Less: Segment byproduct sales
|
|
5,785
|
|
|
1,259
|
|
||
Freight costs
|
|
3,242
|
|
|
5,035
|
|
||
Subtotal
|
|
$
|
25,303
|
|
|
$
|
11,515
|
|
|
|
|
|
|
||||
Divided by:
|
|
|
|
|
||||
Tons sold (in thousands)
|
|
88
|
|
|
56
|
|
||
Average net realized sales price per ton
|
|
$
|
288
|
|
|
$
|
206
|
|
|
|
Three Months Ended March 31, 2018
|
||||||
(in thousands, except per ton amounts)
|
|
Potash
|
|
Trio
®
|
||||
Total Segment Sales
|
|
$
|
30,606
|
|
|
$
|
21,820
|
|
Less: Segment byproduct sales
|
|
3,542
|
|
|
583
|
|
||
Freight costs
|
|
3,458
|
|
|
6,276
|
|
||
Subtotal
|
|
$
|
23,606
|
|
|
$
|
14,961
|
|
|
|
|
|
|
||||
Divided by:
|
|
|
|
|
||||
Tons sold (in thousands)
|
|
97
|
|
|
77
|
|
||
Average net realized sales price per ton
|
|
$
|
243
|
|
|
$
|
194
|
|
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, 2019, through January 31, 2019
|
|
–
|
|
—
|
|
–
|
|
N/A
|
February 1, 2019, through February 28, 2019
|
|
—
|
|
—
|
|
–
|
|
N/A
|
March 1, 2019, through March 31, 2019
|
|
28,971
|
|
$3.86
|
|
–
|
|
N/A
|
Total
|
|
28,971
|
|
$3.86
|
|
—
|
|
N/A
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit No.
|
|
Description
|
|
Purchase and Sale Agreement, dated February 5, 2019, by and between Dinwiddie Cattle Company, LLC, Sherbrooke Partners, LLC and Intrepid Potash - New Mexico, LLC.*
|
|
|
|
|
|
Amendment to Purchase and Sale Agreement, dated March 28, 2019, by and between Dinwiddie Cattle Company, LLC, Sherbrooke Partners, LLC, and Intrepid Potash - New Mexico, LLC.*
|
|
|
|
|
|
Fourth Amendment to Employment Agreement, dated as of March 12, 2019, by and between Intrepid Potash, Inc. and Robert P. Jornayvaz III (incorporated by reference to Intrepid Potash, Inc.'s Form 8-K (File No. 001-34025) filed on March 15, 2019)+
|
|
|
|
|
|
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.
|
+
|
Management contract or compensatory plan or arrangement
|
|
|
INTREPID POTASH, INC.
(Registrant) |
|
|
|
Dated: May 7, 2019
|
|
/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: May 7, 2019
|
|
/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 |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions