Intrepid Potash, Inc. (Intrepid) (NYSE:IPI) today reported its
results for the second quarter of 2020.
Key Takeaways for Q2 2020
- Cash flow from operations of $8.8 million
- Net loss of $8.9 million, or $0.07 per share
- Adjusted net loss(1) of $8.6 million, or $0.07 per share
- Adjusted EBITDA(1) of $0.6 million
Recent Developments
- Voluntarily repaid remaining $15 million of outstanding
principal on Series C Senior Notes on July 17, 2020, leapfrogging
our Series B Notes that mature in April 2023. This payment reduced
our effective interest rate and provides us with considerable more
flexibility with our remaining lenders. After the payment, we had
$14 million in cash on hand, $15 million outstanding on our senior
notes, and $30 million in borrowings under our revolving credit
facility with $44 million available to borrow.
- On July 28, 2020, our shareholders voted to grant the Board of
Directors authority to effect a reverse split of our common stock
at a ratio between 1-for-3 and 1-for-15. Our board plans to convene
on August 10, 2020, to discuss a possible split.
"Our second quarter results were clearly affected by the
COVID-19 pandemic as oilfield activity and water sales decreased
significantly from the first quarter of 2020. This overshadowed a
strong finish to the spring application season and good 2020
evaporation rates at our potash facilities," said Bob Jornayvaz,
Intrepid's Executive Chairman, President, and CEO. "We have good
pond levels at our solar facilities and our magnesium chloride
production is back at normal rates in Wendover. Well completion
activity resumed in the Delaware Basin in recent weeks although we
still expect a gradual climb back to our first quarter water sales
rate. Given the uncertainty, we continue to thoughtfully manage our
balance sheet with good availability remaining under our revolving
credit facility at very favorable rates and the potential to expand
that facility in the future. The early repayment of our Series C
Notes not only lowers our effective interest rate, but paves the
way for a simpler debt structure that will allow us to more
effectively pursue our strategy. We have also used our entire
Paycheck Protection Program loan to pay eligible payroll expenses
and expect the loan will be forgiven later in the year."
Jornayvaz continued, "The underlying resource of the Delaware
Basin hasn't changed and we are still optimistic about the
long-term potential of an area that is full of well-financed and
long-term focused operators. While we must remain prudent in our
capital decisions, we are not shying away from what we believe are
generational opportunities to expand our oilfield solutions assets
in southeast New Mexico."
Consolidated Results
We generated a second quarter 2020 net loss of $8.9
million, or $0.07 per share and a negative gross margin of $0.6
million. Decreased earnings compared to the prior year were the
result of lower water sales that were negatively impacted by the
COVID-19 pandemic as oil demand decreased significantly leading to
decreased oil and gas activity, reduced average net realized sales
price(1) for potash, and increased production costs for potash and
Trio®. We also recorded a $1.9 million lower of cost or net
realizable inventory adjustment on our Trio® product in the second
quarter due to a summer-fill price announcement in June 2020, which
lowered the list price of Trio® $15-$20 per ton for deliveries
through the third quarter.
First half 2020 net loss increased to $16.3 million, or $0.13
per share, while gross margin decreased to $5.0 million when
compared to the prior year period. In addition to the second
quarter results discussed above, first half net loss was further
impacted by the first quarter accrual of a $10 million settlement
payment agreed upon at our March settlement hearing relating to the
Mosaic litigation and partially offset by a first quarter gain of
$4.7 million on the restricted sale of 320 acres of fee land at the
Intrepid South property.
We expect the economic disruptions caused by the COVID-19
pandemic will continue to have a material effect on revenue growth
and overall profitability, particularly for our oilfield solutions
segment, in future reporting periods.
Segment Highlights
Potash
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands, except per ton data) |
Sales |
|
$ |
24,526 |
|
|
$ |
35,547 |
|
|
$ |
58,317 |
|
|
$ |
69,877 |
|
Gross margin |
|
$ |
2,015 |
|
|
$ |
8,228 |
|
|
$ |
6,349 |
|
|
$ |
17,592 |
|
|
|
|
|
|
|
|
|
|
Potash sales volumes (in
tons) |
|
74 |
|
|
95 |
|
|
173 |
|
|
183 |
|
Potash production volumes (in
tons) |
|
4 |
|
|
56 |
|
|
140 |
|
|
167 |
|
|
|
|
|
|
|
|
|
|
Average potash net realized
sales price per ton(1) |
|
$ |
256 |
|
|
$ |
299 |
|
|
$ |
256 |
|
|
$ |
294 |
|
Gross margin decreased compared to the same periods in 2019, due
to the decrease in average net realized sales price per ton,
increased per ton production costs, and a decrease in potash and
byproduct sales.
Sales in the second quarter of 2020 decreased compared to the
same period in 2019, due to a 22% decrease in sales volume, a 14%
decrease in average net realized sales price per ton, and a $0.6
million decrease in byproduct sales. Agricultural sales were down
in the second quarter compared to the prior year, due to good early
season weather which moved the spring season to earlier in the
year. First half agricultural volumes were similar to the prior
year. Second quarter and first half industrial potash sales were
negatively impacted by the COVID-19 pandemic as oil demand
decreased significantly leading to decreased oil and gas
activity.
Average net realized sales price per ton was lower due to price
decreases announced in the summer of 2019 and under the winter-fill
program announced in January 2020. Intrepid also sold fewer tons
into the industrial market which generally carries higher pricing.
Potash segment byproduct sales decreased as reduced oil and gas
activity resulted in decreased byproduct water and brine sales.
Salt sales decreased compared to 2019 as salt availability improved
in certain regions of the country in the first half of 2020 which
reduced our sales footprint. In June 2020, a summer-fill program
was announced by our competitors that lowered the price $40 per ton
and $30 per ton in the corn belt and western United States,
respectively, from current list prices. This is in effect a
decrease of $20 per ton and $10 per ton for the corn belt and
western United States, respectively, when compared to the
winter-fill pricing from the first quarter of 2020. We expect to
sell at the summer-fill pricing levels through at least the third
quarter.
Cost of goods sold decreased in the second quarter of 2020,
compared to the same period in 2019, due to a 22% decrease in sales
volume offset by higher per-ton production costs across our
facilities as a result of the below average evaporation in 2019.
First half cost of goods sold were similar to the prior year due to
the same factors.
Potash production decreased compared to the second quarter and
first half of 2019 as we finished the 2020 spring production season
earlier than the previous year due to reduced pond inventory as a
result of below average evaporation rates in the summer of
2019.
Trio®
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands, except per ton data) |
Sales |
|
$ |
19,251 |
|
|
|
$ |
21,435 |
|
|
$ |
41,832 |
|
|
|
$ |
39,245 |
|
Gross (deficit) margin |
|
$ |
(3,225 |
) |
|
|
$ |
1,454 |
|
|
$ |
(6,780 |
) |
|
|
$ |
2,186 |
|
|
|
|
|
|
|
|
|
|
Trio® sales volume (in
tons) |
|
64 |
|
|
|
71 |
|
|
140 |
|
|
|
127 |
|
Trio® production volume (in
tons) |
|
50 |
|
|
|
66 |
|
|
100 |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
Average Trio® net realized
sales price per ton(1) |
|
$ |
208 |
|
|
|
$ |
196 |
|
|
$ |
200 |
|
|
|
$ |
200 |
|
Trio® generated a negative gross margin of $3.2 million and $6.8
million in the second quarter and first half of 2020, respectively.
Margins were lower compared to the prior year due to increased
production costs, lower domestic pricing, and reduced byproducts
sales.
Sales decreased 10% in the second quarter as compared to the
same period in 2019 due to a 10% decrease in Trio® sales volume.
International Trio® sales volumes decreased significantly in the
second quarter of 2020 compared to the second quarter of 2019 due
to our focus on domestic sales and the timing of shipments to
international customers.
Cost of goods sold increased 13% and 34% in the second quarter
and first six months of 2020, respectively, compared to the same
periods in 2019. Increases in both periods were due to increased
losses in the pelletization process and reduced fine langbeinite
recovery levels in order to manage inventory levels. In addition, a
higher percentage of tons sold in the prior year had been written
down in prior quarters through lower of cost or net realizable
value adjustments which resulted in lower per ton costs of product
sold. During the first six months of 2020, we also sold a higher
percentage of premium Trio® which carries a higher per-ton cost
than other Trio® products.
We recorded a $1.9 million lower of cost or net realizable value
inventory adjustment in the second quarter of 2020 due to the
summer-fill price announced by our competitor in June 2020 which
lowered the list price on Trio® by $15-$20 per ton. We expect to
sell at these reduced prices through at least the third quarter of
2020.
Production volume decreased 24% and 22% in the second quarter
and first six months of 2020, respectively, compared to the same
periods in 2019, as we used fewer tons of work-in-process inventory
to convert to premium Trio®, we decreased our fine langbeinite
recovery to manage inventory levels, and we experienced increased
losses in our pelletization process.
Oilfield Solutions
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands) |
Sales |
|
$ |
2,747 |
|
|
$ |
5,641 |
|
|
$ |
10,488 |
|
|
$ |
12,263 |
|
Gross margin |
|
$ |
611 |
|
|
$ |
3,489 |
|
|
$ |
5,455 |
|
|
$ |
6,561 |
|
Sales decreased $2.9 million in the second quarter of 2020,
compared to 2019, due to reduced sales of water and other oilfield
products and services as the COVID-19 pandemic pressured oil prices
and reduced oil and gas completion activity. First half 2020 sales
decreased compared to 2019 primarily due to a decrease in demand
for our high-speed mixing service.
The COVID-19 pandemic and subsequent decrease in oil and gas
activity has led to reduced demand for water and our high-speed
mixing service. We expect this will continue to decrease water
sales in the second half of 2020, when compared to prior year
periods, although the unprecedented conditions resulting from
COVID-19 make forecasting future demand difficult.
Liquidity
Cash provided by operations was $8.8 million during the second
quarter of 2020. Cash used in investing activities was $8.4
million, which included a $3.5 million equity investment in W.D.
Von Gonten Laboratories, an industry leader in drilling and
completion chemistry and a strong supporter of the use of potassium
chloride in oil and gas drilling and completion activities. As of
June 30, 2020, we had $34.6 million in cash and cash
equivalents.
On July 17, 2020, we made an early voluntary repayment on our
Series C Senior Notes in the amount of $17.1 million, which
included $15.0 million in remaining principal, a reduced make-whole
payment, and accrued interest. Our Series B Notes were unchanged
and still mature in April 2023. This payment reduces our effective
interest rate, and provides us with considerable more flexibility
with our remaining lenders to pursue our strategy. After the
payment, we had $14 million in cash on hand, $15 million
outstanding on our senior notes, $10 million outstanding from the
Paycheck Protection Program, and $30 million in borrowings under
our revolving credit facility with $44 million available to
borrow.
Reverse Stock Split Announcement
As announced previously, on July 28, 2020 our shareholders voted
to grant the Board of Directors authority to effect a reverse split
of our common stock at a ratio between 1-for-3 and 1-for-15. We
plan to convene our Board to discuss a possible split on August 10,
2020. In accordance with the approved proposals, the exact ratio
and effective date of the split, if the Board elects to pursue one,
will be set within the approved range at the sole discretion of the
Board without further approval or authorization of Intrepid's
stockholders.
Notes
1 Adjusted net (loss) income, 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
A teleconference to discuss the quarter is scheduled for August
4, 2020, at 12:00 p.m. ET. The dial-in number is 1-800-319-4610 for
U.S. and Canada, and is +1-631-891-4304 for other countries. The
call will also be streamed on the Intrepid website,
intrepidpotash.com.
An audio recording of the conference call will be available at
intrepidpotash.com and by dialing 1-800-319-6413 for U.S. and
Canada, or +1-631-883-6842 for other countries. The replay will
require the input of the conference identification number 4965.
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 the impact of the COVID-19 pandemic on the company. 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 Intrepid's products
and services;
- challenges to Intrepid's water rights;
- Intrepid's ability to successfully identify and implement any
opportunities to grow its business whether through expanded sales
of water, Trio®, byproducts, and other non-potassium related
products or other revenue diversification activities;
- Intrepid’s ability to integrate the Intrepid South assets into
its existing business and achieve the expected benefits of the
acquisition;
- Intrepid's ability to sell Trio® internationally and manage
risks associated with international sales, including pricing
pressure and freight costs;
- the costs of, and Intrepid's 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;
- Intrepid's ability to prevail in outstanding legal proceedings
against it;
- Intrepid's ability to comply with the terms of its senior notes
and its revolving credit facility, including the underlying
covenants, to avoid a default under those agreements;
- 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;
- Intrepid's 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;
- Intrepid's inability to fund necessary capital
investments;
- the impact of the COVID-19 pandemic on Intrepid's business,
operations, liquidity, financial condition, and results of
operations;
- Intrepid's ability to regain compliance with the continued
listing criteria of the New York Stock Exchange ("NYSE"); and
- the other risks, uncertainties, and assumptions described in
Intrepid's periodic filings with the Securities and Exchange
Commission, including in "Risk Factors" in Intrepid's Annual Report
on Form 10-K for the year ended December 31, 2019, as updated by
subsequent Quarterly Reports on Form 10-Q.
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 duty to update or revise publicly any forward-looking statements
to conform the statements to actual results or to reflect new
information or future events.
Contact:Matt Preston, Vice President -
FinancePhone: 303-996-3048Email:
matt.preston@intrepidpotash.com
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2020 AND 2019 (In thousands,
except per share amounts)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Sales |
|
$ |
46,450 |
|
|
|
$ |
62,512 |
|
|
|
$ |
110,434 |
|
|
|
$ |
120,066 |
|
|
Less: |
|
|
|
|
|
|
|
|
Freight costs |
|
8,735 |
|
|
|
11,293 |
|
|
|
20,595 |
|
|
|
21,749 |
|
|
Warehousing and handling costs |
|
2,065 |
|
|
|
2,230 |
|
|
|
4,969 |
|
|
|
4,466 |
|
|
Cost of goods sold |
|
34,008 |
|
|
|
35,818 |
|
|
|
77,055 |
|
|
|
67,512 |
|
|
Lower of cost or net realizable value inventory adjustments |
|
2,241 |
|
|
|
— |
|
|
|
2,791 |
|
|
|
— |
|
|
Gross (Deficit)
Margin |
|
(599 |
) |
|
|
13,171 |
|
|
|
5,024 |
|
|
|
26,339 |
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative |
|
6,673 |
|
|
|
6,355 |
|
|
|
13,272 |
|
|
|
12,162 |
|
|
Accretion of asset retirement
obligation |
|
434 |
|
|
|
417 |
|
|
|
869 |
|
|
|
834 |
|
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
10,075 |
|
|
|
— |
|
|
Loss (gain) on sale of
asset |
|
234 |
|
|
|
20 |
|
|
|
(4,462 |
) |
|
|
39 |
|
|
Other operating expense
(income) |
|
269 |
|
|
|
(38 |
) |
|
|
258 |
|
|
|
463 |
|
|
Operating (Loss)
Income |
|
(8,209 |
) |
|
|
6,417 |
|
|
|
(14,988 |
) |
|
|
12,841 |
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(635 |
) |
|
|
(806 |
) |
|
|
(1,427 |
) |
|
|
(1,409 |
) |
|
Interest income |
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
— |
|
|
Other (expense) income |
|
(28 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
334 |
|
|
(Loss) Income Before
Income Taxes |
|
(8,872 |
) |
|
|
5,611 |
|
|
|
(16,311 |
) |
|
|
11,766 |
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Benefit |
|
— |
|
|
|
— |
|
|
|
42 |
|
|
|
— |
|
|
Net (Loss)
Income |
|
$ |
(8,872 |
) |
|
|
$ |
5,611 |
|
|
|
$ |
(16,269 |
) |
|
|
$ |
11,766 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
129,786 |
|
|
|
128,896 |
|
|
|
129,679 |
|
|
|
128,813 |
|
|
Diluted |
|
129,786 |
|
|
|
131,043 |
|
|
|
129,679 |
|
|
|
130,985 |
|
|
Earnings Per Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.07 |
) |
|
|
$ |
0.04 |
|
|
|
$ |
(0.13 |
) |
|
|
$ |
0.09 |
|
|
Diluted |
|
$ |
(0.07 |
) |
|
|
$ |
0.04 |
|
|
|
$ |
(0.13 |
) |
|
|
$ |
0.09 |
|
|
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)AS OF JUNE 30, 2020 AND DECEMBER 31,
2019(In thousands, except share and per share
amounts)
|
|
June 30, |
|
December 31, |
|
|
2020 |
|
2019 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
34,552 |
|
|
|
$ |
20,603 |
|
|
Accounts receivable: |
|
|
|
|
Trade, net |
|
19,256 |
|
|
|
23,749 |
|
|
Other receivables, net |
|
1,982 |
|
|
|
1,247 |
|
|
Inventory, net |
|
81,041 |
|
|
|
94,220 |
|
|
Prepaid expenses and other
current assets |
|
4,100 |
|
|
|
5,524 |
|
|
Total current assets |
|
140,931 |
|
|
|
145,343 |
|
|
|
|
|
|
|
Property, plant, equipment,
and mineral properties, net |
|
368,008 |
|
|
|
378,509 |
|
|
Water rights |
|
19,184 |
|
|
|
19,184 |
|
|
Long-term parts inventory,
net |
|
28,603 |
|
|
|
27,569 |
|
|
Other assets, net |
|
11,102 |
|
|
|
7,834 |
|
|
Total
Assets |
|
$ |
567,828 |
|
|
|
$ |
578,439 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Accounts payable |
|
$ |
8,228 |
|
|
|
$ |
9,992 |
|
|
Income taxes payable |
|
49 |
|
|
|
50 |
|
|
Accrued liabilities |
|
12,184 |
|
|
|
13,740 |
|
|
Accrued employee compensation
and benefits |
|
6,353 |
|
|
|
4,464 |
|
|
Advances on credit
facility |
|
— |
|
|
|
19,817 |
|
|
Current portion of long-term
debt, net |
|
24,872 |
|
|
|
20,000 |
|
|
Other current liabilities |
|
24,044 |
|
|
|
19,382 |
|
|
Total current liabilities |
|
75,730 |
|
|
|
87,445 |
|
|
|
|
|
|
|
Advances on credit
facility |
|
29,817 |
|
|
|
— |
|
|
Long-term debt, net |
|
14,909 |
|
|
|
29,753 |
|
|
Asset retirement
obligation |
|
23,003 |
|
|
|
22,140 |
|
|
Operating lease
liabilities |
|
3,098 |
|
|
|
4,025 |
|
|
Other non-current
liabilities |
|
1,063 |
|
|
|
420 |
|
|
Total
Liabilities |
|
147,620 |
|
|
|
143,783 |
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
Common stock, $0.001 par
value; 400,000,000 shares authorized; |
|
|
|
|
130,061,248 and 129,553,517 shares outstanding |
|
|
|
|
at June 30, 2020, and December 31, 2019, respectively |
|
130 |
|
|
|
130 |
|
|
Additional paid-in
capital |
|
654,784 |
|
|
|
652,963 |
|
|
Retained deficit |
|
(234,706 |
) |
|
|
(218,437 |
) |
|
Total Stockholders'
Equity |
|
420,208 |
|
|
|
434,656 |
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
567,828 |
|
|
|
$ |
578,439 |
|
|
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2020 AND 2019(In
thousands)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Cash Flows from
Operating Activities: |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(8,872 |
) |
|
|
$ |
5,611 |
|
|
|
$ |
(16,269 |
) |
|
|
$ |
11,766 |
|
|
Adjustments to reconcile net
(loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Allowance for doubtful accounts |
|
— |
|
|
|
— |
|
|
|
275 |
|
|
|
— |
|
|
Depreciation, depletion and amortization |
|
8,043 |
|
|
|
8,073 |
|
|
|
17,629 |
|
|
|
16,819 |
|
|
Accretion of asset retirement obligation |
|
434 |
|
|
|
417 |
|
|
|
869 |
|
|
|
834 |
|
|
Amortization of deferred financing costs |
|
75 |
|
|
|
69 |
|
|
|
161 |
|
|
|
137 |
|
|
Amortization of intangible assets |
|
81 |
|
|
|
— |
|
|
|
161 |
|
|
|
— |
|
|
Stock-based compensation |
|
963 |
|
|
|
1,231 |
|
|
|
1,995 |
|
|
|
2,262 |
|
|
Litigation settlement |
|
(10,075 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Lower of cost or net realizable value inventory adjustments |
|
2,241 |
|
|
|
— |
|
|
|
2,791 |
|
|
|
— |
|
|
Loss (gain) on disposal of assets |
|
234 |
|
|
|
20 |
|
|
|
(4,462 |
) |
|
|
39 |
|
|
Allowance for parts inventory obsolescence |
|
492 |
|
|
|
— |
|
|
|
492 |
|
|
|
4 |
|
|
Other |
|
(116 |
) |
|
|
— |
|
|
|
(116 |
) |
|
|
— |
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable, net |
|
12,606 |
|
|
|
3,664 |
|
|
|
4,218 |
|
|
|
607 |
|
|
Other receivables, net |
|
(427 |
) |
|
|
(770 |
) |
|
|
(735 |
) |
|
|
(1,132 |
) |
|
Inventory, net |
|
3,885 |
|
|
|
4,181 |
|
|
|
8,861 |
|
|
|
90 |
|
|
Prepaid expenses and other current assets |
|
573 |
|
|
|
1,088 |
|
|
|
1,430 |
|
|
|
1,191 |
|
|
Accounts payable, accrued liabilities, and accrued employee
compensation and benefits |
|
(6,591 |
) |
|
|
(1,852 |
) |
|
|
1,528 |
|
|
|
603 |
|
|
Income tax payable |
|
(1 |
) |
|
|
(98 |
) |
|
|
(1 |
) |
|
|
(98 |
) |
|
Operating lease liabilities |
|
(498 |
) |
|
|
(491 |
) |
|
|
(1,050 |
) |
|
|
(970 |
) |
|
Other liabilities |
|
5,730 |
|
|
|
2,474 |
|
|
|
5,771 |
|
|
|
(414 |
) |
|
Net cash provided by operating activities |
|
8,777 |
|
|
|
23,617 |
|
|
|
23,548 |
|
|
|
31,738 |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant, equipment, mineral properties and
other assets |
|
(4,935 |
) |
|
|
(51,559 |
) |
|
|
(10,645 |
) |
|
|
(55,517 |
) |
|
Additions to intangible assets |
|
— |
|
|
|
(13,581 |
) |
|
|
— |
|
|
|
(13,581 |
) |
|
Long-term investment |
|
(3,500 |
) |
|
|
— |
|
|
|
(3,500 |
) |
|
|
— |
|
|
Proceeds from sale of assets |
|
— |
|
|
|
68 |
|
|
|
4,786 |
|
|
|
68 |
|
|
Deposit on asset purchase |
|
— |
|
|
|
3,250 |
|
|
|
— |
|
|
|
— |
|
|
Net cash used in investing activities |
|
(8,435 |
) |
|
|
(61,822 |
) |
|
|
(9,359 |
) |
|
|
(69,030 |
) |
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Repayments of long-term debt |
|
(20,000 |
) |
|
|
— |
|
|
|
(20,000 |
) |
|
|
— |
|
|
Proceeds from short-term borrowings on credit facility |
|
— |
|
|
|
30,000 |
|
|
|
10,000 |
|
|
|
30,000 |
|
|
Repayments of short-term borrowings on credit facility |
|
— |
|
|
|
(10,000 |
) |
|
|
— |
|
|
|
(10,000 |
) |
|
Capitalized debt fees |
|
(36 |
) |
|
|
— |
|
|
|
(36 |
) |
|
|
— |
|
|
Employee tax withholding paid for restricted stock upon
vesting |
|
(125 |
) |
|
|
(166 |
) |
|
|
(174 |
) |
|
|
(278 |
) |
|
Proceeds from loan under CARES Act |
|
10,000 |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
Proceeds from exercise of stock options |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
Net cash (used in) provided by financing activities |
|
(10,161 |
) |
|
|
19,834 |
|
|
|
(210 |
) |
|
|
19,731 |
|
|
|
|
|
|
|
|
|
|
|
Net Change in Cash,
Cash Equivalents and Restricted Cash |
|
(9,819 |
) |
|
|
(18,371 |
) |
|
|
13,979 |
|
|
|
(17,561 |
) |
|
Cash, Cash Equivalents
and Restricted Cash, beginning of period |
|
45,037 |
|
|
|
34,514 |
|
|
|
21,239 |
|
|
|
33,704 |
|
|
Cash, Cash Equivalents
and Restricted Cash, end of period |
|
$ |
35,218 |
|
|
|
$ |
16,143 |
|
|
|
$ |
35,218 |
|
|
|
$ |
16,143 |
|
|
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 (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. We consider these non-GAAP financial measures
to be useful because they allow for period-to-period comparisons of
its operating results excluding items that we believe are not
indicative of its fundamental ongoing operations.
Reconciliation of Net (Loss) Income to Adjusted Net (Loss)
Income:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(in thousands) |
Net (Loss) Income |
$ |
(8,872 |
) |
|
|
$ |
5,611 |
|
|
$ |
(16,269 |
) |
|
|
$ |
11,766 |
|
Adjustments |
|
|
|
|
|
|
|
Litigation
Settlement |
— |
|
|
|
— |
|
|
10,075 |
|
|
|
— |
|
Loss (gain) on sale of
asset |
234 |
|
|
|
— |
|
|
(4,462 |
) |
|
|
— |
|
Total adjustments |
234 |
|
|
|
— |
|
|
5,613 |
|
|
|
— |
|
Adjusted Net (Loss)
Income |
$ |
(8,638 |
) |
|
|
$ |
5,611 |
|
|
$ |
(10,656 |
) |
|
|
$ |
11,766 |
|
Reconciliation of Net (Loss) Income per Share to Adjusted Net
(Loss) Income per Share:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net (Loss) Income Per Diluted
Share |
$ |
(0.07 |
) |
|
|
$ |
0.04 |
|
|
$ |
(0.13 |
) |
|
|
$ |
0.09 |
|
Adjustments |
|
|
|
|
|
|
|
Litigation
settlement |
— |
|
|
|
— |
|
|
0.08 |
|
|
|
— |
|
Loss (gain) on sale of
asset |
— |
|
|
|
— |
|
|
(0.03 |
) |
|
|
— |
|
Total adjustments |
— |
|
|
|
— |
|
|
0.05 |
|
|
|
— |
|
Adjusted Net (Loss) Income Per
Diluted Share |
$ |
(0.07 |
) |
|
|
$ |
0.04 |
|
|
$ |
(0.08 |
) |
|
|
$ |
0.09 |
|
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 June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands) |
Net (Loss) Income |
|
$ |
(8,872 |
) |
|
|
$ |
5,611 |
|
|
$ |
(16,269 |
) |
|
|
$ |
11,766 |
|
Litigation
settlement |
|
— |
|
|
|
— |
|
|
10,075 |
|
|
|
— |
|
Loss (gain) on sale of
asset |
|
234 |
|
|
|
— |
|
|
(4,462 |
) |
|
|
— |
|
Interest expense |
|
635 |
|
|
|
806 |
|
|
1,427 |
|
|
|
1,409 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
(42 |
) |
|
|
— |
|
Depreciation,
depletion, and amortization |
|
8,043 |
|
|
|
8,073 |
|
|
17,629 |
|
|
|
16,819 |
|
Amortization of
intangible assets |
|
81 |
|
|
|
— |
|
|
161 |
|
|
|
— |
|
Accretion of asset
retirement obligation |
|
434 |
|
|
|
417 |
|
|
869 |
|
|
|
834 |
|
Total adjustments |
|
9,427 |
|
|
|
9,296 |
|
|
25,657 |
|
|
|
19,062 |
|
Adjusted EBITDA |
|
$ |
555 |
|
|
|
$ |
14,907 |
|
|
$ |
9,388 |
|
|
|
$ |
30,828 |
|
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 June 30, |
|
|
|
2020 |
|
2019 |
|
(in thousands, except per ton
amounts) |
|
Potash |
|
Trio® |
|
Potash |
|
Trio® |
|
Total Segment Sales |
|
$ |
24,526 |
|
|
$ |
19,251 |
|
|
$ |
35,547 |
|
|
$ |
21,435 |
|
|
Less: Segment byproduct
sales |
|
2,977 |
|
|
419 |
|
|
3,527 |
|
|
1,073 |
|
|
Freight costs |
|
2,600 |
|
|
5,523 |
|
|
3,604 |
|
|
6,471 |
|
|
Subtotal |
|
$ |
18,949 |
|
|
$ |
13,309 |
|
|
$ |
28,416 |
|
|
$ |
13,891 |
|
|
|
|
|
|
|
|
|
|
|
|
Divided by: |
|
|
|
|
|
|
|
|
|
Tons sold |
|
74 |
|
|
64 |
|
|
95 |
|
|
71 |
|
|
Average net realized
sales price per ton |
|
$ |
256 |
|
|
$ |
208 |
|
|
$ |
299 |
|
|
$ |
196 |
|
|
|
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
(in thousands, except per ton
amounts) |
|
Potash |
|
Trio® |
|
Potash |
|
Trio® |
Total Segment Sales |
|
$ |
58,317 |
|
|
$ |
41,832 |
|
|
$ |
69,877 |
|
|
$ |
39,245 |
|
Less: Segment byproduct
sales |
|
6,950 |
|
|
1,799 |
|
|
9,312 |
|
|
2,332 |
|
Freight costs |
|
7,140 |
|
|
12,057 |
|
|
6,847 |
|
|
11,507 |
|
Subtotal |
|
$ |
44,227 |
|
|
$ |
27,976 |
|
|
$ |
53,718 |
|
|
$ |
25,406 |
|
|
|
|
|
|
|
|
|
|
Divided by: |
|
|
|
|
|
|
|
|
Tons sold |
|
173 |
|
|
140 |
|
|
183 |
|
|
127 |
|
Average net realized
sales price per ton |
|
$ |
256 |
|
|
$ |
200 |
|
|
$ |
294 |
|
|
$ |
200 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30, 2020 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
21,549 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(74 |
) |
|
|
$ |
21,475 |
|
Trio® |
|
— |
|
|
18,832 |
|
|
— |
|
|
— |
|
|
|
18,832 |
|
Water |
|
112 |
|
|
404 |
|
|
2,029 |
|
|
— |
|
|
|
2,545 |
|
Salt |
|
1,701 |
|
|
15 |
|
|
— |
|
|
— |
|
|
|
1,716 |
|
Magnesium Chloride |
|
952 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
952 |
|
Brine Water |
|
212 |
|
|
— |
|
|
161 |
|
|
— |
|
|
|
373 |
|
Other |
|
— |
|
|
— |
|
|
557 |
|
|
— |
|
|
|
557 |
|
Total Revenue |
|
$ |
24,526 |
|
|
$ |
19,251 |
|
|
$ |
2,747 |
|
|
$ |
(74 |
) |
|
|
$ |
46,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30, 2020 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
51,367 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(203 |
) |
|
|
$ |
51,164 |
|
Trio® |
|
— |
|
|
40,033 |
|
|
— |
|
|
— |
|
|
|
40,033 |
|
Water |
|
695 |
|
|
1,651 |
|
|
8,690 |
|
|
— |
|
|
|
11,036 |
|
Salt |
|
3,797 |
|
|
148 |
|
|
— |
|
|
— |
|
|
|
3,945 |
|
Magnesium Chloride |
|
1,711 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,711 |
|
Brine Water |
|
747 |
|
|
— |
|
|
192 |
|
|
— |
|
|
|
939 |
|
Other |
|
— |
|
|
— |
|
|
1,606 |
|
|
— |
|
|
|
1,606 |
|
Total Revenue |
|
$ |
58,317 |
|
|
$ |
41,832 |
|
|
$ |
10,488 |
|
|
$ |
(203 |
) |
|
|
$ |
110,434 |
|
|
|
Three Months
Ended June 30, 2019 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
32,020 |
|
|
$ |
— |
|
|
$ |
218 |
|
|
$ |
(111 |
) |
|
|
$ |
32,127 |
|
Trio® |
|
— |
|
|
20,362 |
|
|
— |
|
|
— |
|
|
|
20,362 |
|
Water |
|
457 |
|
|
938 |
|
|
4,270 |
|
|
— |
|
|
|
5,665 |
|
Salt |
|
2,368 |
|
|
135 |
|
|
— |
|
|
— |
|
|
|
2,503 |
|
Magnesium Chloride |
|
206 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
206 |
|
Brine Water |
|
496 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
496 |
|
Other |
|
— |
|
|
— |
|
|
1,153 |
|
|
— |
|
|
|
1,153 |
|
Total Revenue |
|
$ |
35,547 |
|
|
$ |
21,435 |
|
|
$ |
5,641 |
|
|
$ |
(111 |
) |
|
|
$ |
62,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
60,565 |
|
|
$ |
— |
|
|
$ |
2,040 |
|
|
$ |
(1,319 |
) |
|
|
$ |
61,286 |
|
Trio® |
|
— |
|
|
36,913 |
|
|
— |
|
|
— |
|
|
|
36,913 |
|
Water |
|
797 |
|
|
1,879 |
|
|
8,375 |
|
|
— |
|
|
|
11,051 |
|
Salt |
|
5,369 |
|
|
453 |
|
|
— |
|
|
— |
|
|
|
5,822 |
|
Magnesium Chloride |
|
1,946 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,946 |
|
Brine Water |
|
1,200 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,200 |
|
Other |
|
— |
|
|
— |
|
|
1,848 |
|
|
— |
|
|
|
1,848 |
|
Total Revenue |
|
$ |
69,877 |
|
|
$ |
39,245 |
|
|
$ |
12,263 |
|
|
$ |
(1,319 |
) |
|
|
$ |
120,066 |
|
Three Months Ended
June 30, 2020 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
24,526 |
|
|
$ |
19,251 |
|
|
|
$ |
2,747 |
|
|
$ |
(74 |
) |
|
|
$ |
46,450 |
|
|
Less: Freight costs |
|
3,286 |
|
|
5,523 |
|
|
|
— |
|
|
(74 |
) |
|
|
8,735 |
|
|
Warehousing and
handling costs |
|
1,204 |
|
|
861 |
|
|
|
— |
|
|
— |
|
|
|
2,065 |
|
|
Cost of goods sold |
|
17,650 |
|
|
14,222 |
|
|
|
2,136 |
|
|
— |
|
|
|
34,008 |
|
|
Lower of cost or net
realizable value inventory adjustments |
|
371 |
|
|
1,870 |
|
|
|
— |
|
|
— |
|
|
|
2,241 |
|
|
Gross Margin (Deficit) |
|
$ |
2,015 |
|
|
$ |
(3,225 |
) |
|
|
$ |
611 |
|
|
$ |
— |
|
|
|
$ |
(599 |
) |
|
Depreciation, depletion, and
amortization incurred1 |
|
$ |
5,742 |
|
|
$ |
1,516 |
|
|
|
$ |
657 |
|
|
$ |
209 |
|
|
|
$ |
8,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30, 2020 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
58,317 |
|
|
$ |
41,832 |
|
|
|
$ |
10,488 |
|
|
$ |
(203 |
) |
|
|
$ |
110,434 |
|
|
Less: Freight costs |
|
8,727 |
|
|
12,071 |
|
|
|
— |
|
|
(203 |
) |
|
|
20,595 |
|
|
Warehousing and
handling costs |
|
2,500 |
|
|
2,469 |
|
|
|
— |
|
|
— |
|
|
|
4,969 |
|
|
Cost of goods sold |
|
40,370 |
|
|
31,652 |
|
|
|
5,033 |
|
|
— |
|
|
|
77,055 |
|
|
Lower of cost or net
realizable value inventory adjustments |
|
371 |
|
|
2,420 |
|
|
|
— |
|
|
— |
|
|
|
2,791 |
|
|
Gross Margin (Deficit) |
|
$ |
6,349 |
|
|
$ |
(6,780 |
) |
|
|
$ |
5,455 |
|
|
$ |
— |
|
|
|
$ |
5,024 |
|
|
Depreciation, depletion, and
amortization incurred1 |
|
$ |
13,054 |
|
|
$ |
3,025 |
|
|
|
$ |
1,289 |
|
|
$ |
422 |
|
|
|
$ |
17,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
35,547 |
|
|
$ |
21,435 |
|
|
|
$ |
5,641 |
|
|
$ |
(111 |
) |
|
|
$ |
62,512 |
|
|
Less: Freight costs |
|
4,742 |
|
|
6,471 |
|
|
|
80 |
|
|
— |
|
|
|
11,293 |
|
|
Warehousing and
handling costs |
|
1,319 |
|
|
911 |
|
|
|
— |
|
|
— |
|
|
|
2,230 |
|
|
Cost of goods sold |
|
21,258 |
|
|
12,599 |
|
|
|
2,072 |
|
|
(111 |
) |
|
|
35,818 |
|
|
Gross Margin |
|
$ |
8,228 |
|
|
$ |
1,454 |
|
|
|
$ |
3,489 |
|
|
$ |
— |
|
|
|
$ |
13,171 |
|
|
Depreciation, depletion, and
amortization incurred1 |
|
$ |
6,120 |
|
|
$ |
1,520 |
|
|
|
$ |
232 |
|
|
$ |
201 |
|
|
|
$ |
8,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30, 2019 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
69,877 |
|
|
$ |
39,245 |
|
|
|
$ |
12,263 |
|
|
$ |
(1,319 |
) |
|
|
$ |
120,066 |
|
|
Less: Freight costs |
|
9,382 |
|
|
11,506 |
|
|
|
861 |
|
|
— |
|
|
|
21,749 |
|
|
Warehousing and
handling costs |
|
2,586 |
|
|
1,880 |
|
|
|
— |
|
|
— |
|
|
|
4,466 |
|
|
Cost of goods sold |
|
40,317 |
|
|
23,673 |
|
|
|
4,841 |
|
|
(1,319 |
) |
|
|
67,512 |
|
|
Gross Margin |
|
$ |
17,592 |
|
|
$ |
2,186 |
|
|
|
$ |
6,561 |
|
|
$ |
— |
|
|
|
$ |
26,339 |
|
|
Depreciation, depletion and
amortization incurred1 |
|
$ |
12,915 |
|
|
$ |
3,078 |
|
|
|
$ |
423 |
|
|
$ |
403 |
|
|
|
$ |
16,819 |
|
|
(1) Depreciation, depletion, and amortization incurred for
potash and Trio® excludes depreciation, depletion, and amortization
amounts absorbed in or relieved from inventory.
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