Intrepid Potash, Inc. (Intrepid) (NYSE:IPI) today reported its
results for the third quarter of 2020.
Key Takeaways for Q3 2020
- Net loss of $10.2 million, or $0.78 per share
- Adjusted EBITDA(1) of $1.5 million
- Water sales of $3.6 million in the third quarter, up 42% from
the second quarter of 2020.
- Good summer evaporation season has current potash pond levels
well above average and up significantly compared to last year
Recent
Developments•
Potash and Trio® pricing has increased $30 per ton and $25 per ton,
respectively, from summer-fill price levels.
"Our third quarter results continue to be affected by the
COVID-19 pandemic as oilfield activity and water sales remain below
prior year levels, but up significantly from the second quarter of
2020," said Bob Jornayvaz, Intrepid's Executive Chairman,
President, and CEO. "Operators are focusing their attention on the
strong underlying resource in the Delaware Basin and are
forecasting continued improvements in demand over the coming
months, which we believe will benefit our bottom line. For potash,
we ended the summer 2020 evaporation season with great pond levels
across our facilities. This will lead to lower per-ton production
costs in the coming quarters and when considered along with the
recent price increases, positions us to generate solid cash flow
during the spring season. We continue to thoughtfully manage our
balance sheet due to the considerable uncertainty still surrounding
the COVID-19 pandemic and remain optimistic about the potential of
our business."
Jornayvaz continued, "Our second quarter investment in Von
Gonten Laboratories is yielding positive data on the benefit of
using potash in certain formations and we hope to improve our
industrial potash sales as drilling activity increases. Heading
into the fourth quarter there are still significant opportunities
available in the Delaware Basin and we are actively pursuing
numerous options to expand our water and oilfield solutions
business."
Reverse Stock Split
On July 28, 2020, we held the special meeting of shareholders to
vote on four proposals that would allow our Board of Directors to
enact a reverse stock split of between 1:3 and 1:15. All proposals
voted on at the special meeting were approved. On August 10, 2020,
the Board of Directors approved an amendment to our Certificate of
Incorporation to effect a reverse stock split of our common stock,
par value $0.001 per share, by a ratio of one-for-ten. The reverse
stock split became effective August 14, 2020. We believe the
reverse stock split was in the best interests of us and our
stockholders by allowing us more flexibility to, among other
things, potentially improve the marketability and liquidity of our
common stock and maintain compliance with the listing requirements
of the NYSE.
Consolidated Results
We generated a third quarter 2020 net loss of $10.2
million, or $0.78 per share and a negative gross margin of $0.3
million. Year-to-date net loss increased to $26.4 million, or $2.04
per share, while gross margin decreased to $4.7 million when
compared to the prior year period. Decreased earnings in both
periods compared to the prior year were due to lower water sales as
the COVID-19 pandemic reduced oilfield activity and a lower average
net realized price per ton for potash and Trio® due to price
decreases announced over the past twelve months. Our year-to-date
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 September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands, except per ton data) |
Sales |
|
$ |
22,187 |
|
|
$ |
29,213 |
|
|
$ |
80,504 |
|
|
$ |
99,090 |
|
Gross margin |
|
$ |
1,353 |
|
|
$ |
4,588 |
|
|
$ |
7,703 |
|
|
$ |
22,180 |
|
|
|
|
|
|
|
|
|
|
Potash sales volumes (in
tons) |
|
66 |
|
|
78 |
|
|
239 |
|
|
261 |
|
Potash production volumes (in
tons) |
|
61 |
|
|
51 |
|
|
202 |
|
|
217 |
|
|
|
|
|
|
|
|
|
|
Average potash net realized
sales price per ton(1) |
|
$ |
238 |
|
|
$ |
266 |
|
|
$ |
251 |
|
|
$ |
285 |
|
Sales in the third quarter of 2020 decreased compared to the
same period in 2019, due to a 15% decrease in sales volume, a 11%
decrease in our average net realized sales price per ton and a $1.4
million decrease in byproduct sales. Agricultural sales volumes
decreased in the third quarter of 2020 compared to the third
quarter of 2019, as we sold fewer tons into the summer-fill program
than during the previous year. We also sold fewer tons into the
industrial market. Our industrial potash sales were negatively
impacted by the COVID-19 pandemic as oil demand decreased
significantly leading to decreased oil and gas activity.
Sales for the nine months ended September 30, 2020 decreased
compared to the same period in 2019, due to a 8% decrease in sales
volume, an 12% decrease in our average net realized sales price per
ton, and a $3.7 million decrease in byproduct sales. Industrial
sales volume decreased 70% as our industrial potash sales were
negatively impacted by the COVID-19 pandemic as oil demand
decreased significantly leading to decreased oil and gas activity.
Agricultural volumes were 5% less than prior year as we sold fewer
tons into the 2020 summer-fill program than the previous year. Our
feed sales were up 28% compared to the prior year.
Byproduct sales decreased for both the three and nine month
periods of 2020, compared to 2019, as reduced oil and gas activity
resulted in decreased byproduct water and brine sales, while
improved availability of salt reduced our sales footprint.
Magnesium chloride sales improved $0.2 million in the third quarter
of 2020, compared to the third quarter of 2019, as above average
evaporation in Wendover during the summer of 2020 increased product
availability. Year-to-date magnesium chloride sales were similar to
the prior year.
Average net realized sales price per ton was lower in both the
three and nine month periods of 2020, compared to 2019, due to
price decreases announced in the summer of 2019, the winter-fill
program announced in January 2020, and the summer-fill program
announced in June 2020, and due to lower industrial sales
volume.
Cost of goods sold decreased for the three and nine month period
of 2020, compared to the same periods in 2019, primarily due to a
15% and 8% decrease in sales volume, respectively.
Production increased 20% compared to the third quarter of 2019
as good evaporation during the summer of 2020 allowed for an
earlier start to the production season at our Wendover facility.
Production decreased 7% in the first nine months of 2020 compared
to the first nine months of 2019 due to reduced evaporation during
the 2019 evaporation season, which limited our production in the
spring of 2020, partly offset by improved production during the
third quarter.
Trio®
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands, except per ton data) |
Sales |
|
$ |
12,890 |
|
|
|
$ |
14,637 |
|
|
|
$ |
54,722 |
|
|
|
$ |
53,881 |
|
Gross (deficit) margin |
|
$ |
(1,348 |
) |
|
|
$ |
(1,108 |
) |
|
|
$ |
(8,129 |
) |
|
|
$ |
1,077 |
|
|
|
|
|
|
|
|
|
|
Trio® sales volume (in
tons) |
|
40 |
|
|
|
46 |
|
|
|
180 |
|
|
|
173 |
|
Trio® production volume (in
tons) |
|
55 |
|
|
|
54 |
|
|
|
155 |
|
|
|
183 |
|
|
|
|
|
|
|
|
|
|
Average Trio® net realized
sales price per ton(1) |
|
$ |
189 |
|
|
|
$ |
204 |
|
|
|
$ |
197 |
|
|
|
$ |
201 |
|
Sales decreased 12% for the three months ended September 30,
2020, as compared to the same period in 2019. The decrease was
primarily due to a 13% decrease in Trio® tons sold and a 7%
decrease in average net realized sales price per ton. Sales volumes
decreased as we continued to sell fewer tons into international
markets as we focus on the higher priced domestic market. Our Trio®
average net realized sales price per ton decreased during the third
quarter of 2020 as compared to the third quarter of 2019 due to
decreased pricing announced during the summer-fill program.
Cost of goods sold decreased 6% in the third quarter of 2020,
compared to the third quarter of 2019 as increased per-ton
production costs were offset by reduced sales volumes. During the
third quarter of 2020, we continued to run at reduced production
rates to manage inventory levels.
In the third quarter of 2020, we recorded a $0.5 million lower
of cost or net realizable value inventory adjustment due to reduced
production rates that increased our per-ton cost of production. In
the third quarter of 2019, we recorded a $1.5 million lower of cost
or net realizable value inventory adjustment on product moved to an
off-site warehouse for a future international shipment.
Sales increased 2% for the nine months ended September 30, 2020,
as compared to the same period in 2019 primarily due to a 4%
increase in volume sold, offset partially by reduced byproduct
sales of water and salt, and a lower average net realized sales
price for Trio®. Increased sales volume was a result of strong
domestic sales in the first half of 2020 offset by a decrease in
international sales volume. Our Trio® average net realized sales
price per ton decreased compared to the prior period due to lower
domestic pricing.
Cost of goods sold increased 22% in the first nine months of
2020, compared to the first nine months of 2019, as sales volume
increased 4% and we operated at reduced rates to manage inventory
levels and experienced increased losses in our pelletization
process, both which led to higher per-ton carrying costs. Also, in
the first nine months of 2019, a higher percentage of our tons sold
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.
We recorded a $2.9 million lower of cost or net realizable value
inventory adjustment in the first nine months of 2020, primarily
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 until midway through the
fourth quarter of 2020.
Production volume decreased 15% compared to the first nine
months of 2019, due to reduced production rates, fewer tons of
work-in-process inventory converted to premium Trio®, and increased
losses in our pelletization process.
Oilfield Solutions
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands) |
Sales |
|
$ |
3,050 |
|
|
|
$ |
7,310 |
|
|
$ |
13,539 |
|
|
$ |
19,574 |
|
Gross (deficit) margin |
|
$ |
(313 |
) |
|
|
$ |
3,469 |
|
|
$ |
5,142 |
|
|
$ |
10,031 |
|
Sales decreased $4.3 million in the third quarter of 2020,
compared to the same period in 2019, mainly due to a $3.5 million
decrease in water sales and a $0.8 million decrease in sales of
other oilfield products and services. Sales decreased $6.0 million
in the first nine months of 2020, compared to the same period in
2019, mainly due to a $3.1 decrease in water sales and a $2.0
million decrease in potash used in our high-speed mixing
service.
Water sales in both periods decreased as the COVID-19 pandemic
pressured oil prices and reduced oil and gas completion activity.
We expect the COVID-19 pandemic and related global economic
conditions will reduce sales of water and other oilfield products
through at least the fourth quarter of 2020. Water that we sell
that was used in the production of potash and Trio® is accounted
for as byproduct water sales in the potash or Trio® segments.
Cost of goods sold decreased 12%, or $0.5 million, in the third
quarter of 2020 compared to the prior year, primarily a result of
reduced water sales, offset by increased per barrel transfer
expense. Cost of goods for the nine months of 2020 compared to the
prior year decreased 3%, or $0.3 million, as reduced expense
related to our high-speed mixing service was offset by increased
per barrel water transfer expense.
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 for most of 2020. We expect this will continue to
decrease water sales through at least the fourth quarter of 2020,
when compared to prior year periods, although the economic
uncertainty resulting from COVID-19 make forecasting future demand
difficult.
Liquidity
Cash used by operations was $5.1 million during the third
quarter of 2020. Cash used in investing activities was $3.4 million
as we continued to reduced capital spending in response to the
COVID-19 pandemic.
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. As of September 30, 2020, we had
$9.3 million in cash and cash equivalents.
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
November 3, 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 5493.
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; 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 NINE
MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (In
thousands, except per share amounts)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Sales |
|
$ |
38,078 |
|
|
|
$ |
51,160 |
|
|
|
$ |
148,512 |
|
|
|
$ |
171,226 |
|
|
Less: |
|
|
|
|
|
|
|
|
Freight costs |
|
7,802 |
|
|
|
8,724 |
|
|
|
28,397 |
|
|
|
30,473 |
|
|
Warehousing and handling costs |
|
2,315 |
|
|
|
2,162 |
|
|
|
7,284 |
|
|
|
6,628 |
|
|
Cost of goods sold |
|
27,045 |
|
|
|
31,863 |
|
|
|
104,100 |
|
|
|
99,375 |
|
|
Lower of cost or net realizable value inventory adjustments |
|
1,224 |
|
|
|
1,462 |
|
|
|
4,015 |
|
|
|
1,462 |
|
|
Gross (Deficit)
Margin |
|
(308 |
) |
|
|
6,949 |
|
|
|
4,716 |
|
|
|
33,288 |
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative |
|
6,750 |
|
|
|
5,548 |
|
|
|
20,022 |
|
|
|
17,710 |
|
|
Accretion of asset retirement
obligation |
|
434 |
|
|
|
513 |
|
|
|
1,303 |
|
|
|
1,347 |
|
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
10,075 |
|
|
|
— |
|
|
Loss (gain) on sale of
assets |
|
21 |
|
|
|
(56 |
) |
|
|
(4,441 |
) |
|
|
(17 |
) |
|
Other operating expense |
|
237 |
|
|
|
329 |
|
|
|
495 |
|
|
|
792 |
|
|
Operating (Loss)
Income |
|
(7,750 |
) |
|
|
615 |
|
|
|
(22,738 |
) |
|
|
13,456 |
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(2,450 |
) |
|
|
(849 |
) |
|
|
(3,877 |
) |
|
|
(2,258 |
) |
|
Interest income |
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
— |
|
|
Other (expense) income |
|
25 |
|
|
|
9 |
|
|
|
13 |
|
|
|
343 |
|
|
(Loss) Income Before
Income Taxes |
|
(10,175 |
) |
|
|
(225 |
) |
|
|
(26,486 |
) |
|
|
11,541 |
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Benefit |
|
— |
|
|
|
8 |
|
|
|
42 |
|
|
|
8 |
|
|
Net (Loss)
Income |
|
$ |
(10,175 |
) |
|
|
$ |
(217 |
) |
|
|
$ |
(26,444 |
) |
|
|
$ |
11,549 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
13,006 |
|
|
|
12,917 |
|
|
|
12,981 |
|
|
|
12,893 |
|
|
Diluted |
|
13,006 |
|
|
|
12,917 |
|
|
|
12,981 |
|
|
|
13,106 |
|
|
Earnings Per Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.78 |
) |
|
|
$ |
(0.02 |
) |
|
|
$ |
(2.04 |
) |
|
|
$ |
0.90 |
|
|
Diluted |
|
$ |
(0.78 |
) |
|
|
$ |
(0.02 |
) |
|
|
$ |
(2.04 |
) |
|
|
$ |
0.88 |
|
|
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)AS OF SEPTEMBER 30, 2020 AND DECEMBER
31, 2019(In thousands, except share and per share
amounts)
|
|
September 30, |
|
December 31, |
|
|
2020 |
|
2019 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
9,258 |
|
|
|
$ |
20,603 |
|
|
Accounts receivable: |
|
|
|
|
Trade, net |
|
23,271 |
|
|
|
23,749 |
|
|
Other receivables, net |
|
2,575 |
|
|
|
1,247 |
|
|
Inventory, net |
|
85,204 |
|
|
|
94,220 |
|
|
Prepaid expenses and other
current assets |
|
5,844 |
|
|
|
5,524 |
|
|
Total current assets |
|
126,152 |
|
|
|
145,343 |
|
|
|
|
|
|
|
Property, plant, equipment,
and mineral properties, net |
|
362,117 |
|
|
|
378,509 |
|
|
Water rights |
|
19,184 |
|
|
|
19,184 |
|
|
Long-term parts inventory,
net |
|
28,978 |
|
|
|
27,569 |
|
|
Other assets, net |
|
10,960 |
|
|
|
7,834 |
|
|
Total
Assets |
|
$ |
547,391 |
|
|
|
$ |
578,439 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Accounts payable |
|
$ |
8,037 |
|
|
|
$ |
9,992 |
|
|
Income taxes payable |
|
— |
|
|
|
50 |
|
|
Accrued liabilities |
|
12,817 |
|
|
|
13,740 |
|
|
Accrued employee compensation
and benefits |
|
5,806 |
|
|
|
4,464 |
|
|
Advances on credit
facility |
|
— |
|
|
|
19,817 |
|
|
Current portion of long-term
debt, net |
|
10,000 |
|
|
|
20,000 |
|
|
Other current liabilities |
|
27,779 |
|
|
|
19,382 |
|
|
Total current liabilities |
|
64,439 |
|
|
|
87,445 |
|
|
|
|
|
|
|
Advances on credit
facility |
|
29,817 |
|
|
|
— |
|
|
Long-term debt, net |
|
14,918 |
|
|
|
29,753 |
|
|
Asset retirement
obligation |
|
23,437 |
|
|
|
22,140 |
|
|
Operating lease
liabilities |
|
2,660 |
|
|
|
4,025 |
|
|
Other non-current
liabilities |
|
1,024 |
|
|
|
420 |
|
|
Total
Liabilities |
|
136,295 |
|
|
|
143,783 |
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
Common stock, $0.001 par
value; 40,000,000 shares authorized; |
|
|
|
|
13,006,427 and 12,955,351 shares outstanding |
|
|
|
|
at September 30, 2020, and December 31, 2019, respectively |
|
13 |
|
|
|
13 |
|
|
Additional paid-in
capital |
|
655,964 |
|
|
|
653,080 |
|
|
Accumulated deficit |
|
(244,881 |
) |
|
|
(218,437 |
) |
|
Total Stockholders'
Equity |
|
411,096 |
|
|
|
434,656 |
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
547,391 |
|
|
|
$ |
578,439 |
|
|
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)FOR THE THREE AND NINE MONTHS
ENDED SEPTEMBER 30, 2020 AND 2019(In
thousands)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Cash Flows from
Operating Activities: |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(10,175 |
) |
|
|
$ |
(217 |
) |
|
|
$ |
(26,444 |
) |
|
|
$ |
11,549 |
|
|
Adjustments to reconcile net
(loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Allowance for doubtful accounts |
|
— |
|
|
|
50 |
|
|
|
275 |
|
|
|
50 |
|
|
Depreciation, depletion and amortization |
|
8,748 |
|
|
|
8,326 |
|
|
|
26,377 |
|
|
|
25,145 |
|
|
Accretion of asset retirement obligation |
|
434 |
|
|
|
513 |
|
|
|
1,303 |
|
|
|
1,347 |
|
|
Amortization of deferred financing costs |
|
196 |
|
|
|
80 |
|
|
|
357 |
|
|
|
217 |
|
|
Amortization of intangible assets |
|
80 |
|
|
|
188 |
|
|
|
241 |
|
|
|
188 |
|
|
Stock-based compensation |
|
986 |
|
|
|
975 |
|
|
|
2,981 |
|
|
|
3,237 |
|
|
Lower of cost or net realizable value inventory adjustments |
|
1,224 |
|
|
|
1,462 |
|
|
|
4,015 |
|
|
|
1,462 |
|
|
Loss (gain) on disposal of assets |
|
21 |
|
|
|
(56 |
) |
|
|
(4,441 |
) |
|
|
(17 |
) |
|
Allowance for parts inventory obsolescence |
|
— |
|
|
|
— |
|
|
|
492 |
|
|
|
4 |
|
|
Other |
|
— |
|
|
|
— |
|
|
|
(116 |
) |
|
|
— |
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable, net |
|
(4,015 |
) |
|
|
(6,633 |
) |
|
|
203 |
|
|
|
(6,026 |
) |
|
Other receivables, net |
|
(593 |
) |
|
|
(247 |
) |
|
|
(1,328 |
) |
|
|
(1,379 |
) |
|
Inventory, net |
|
(5,761 |
) |
|
|
(3,317 |
) |
|
|
3,100 |
|
|
|
(3,227 |
) |
|
Prepaid expenses and other current assets |
|
(1,743 |
) |
|
|
(1,978 |
) |
|
|
(313 |
) |
|
|
(787 |
) |
|
Accounts payable, accrued liabilities, and accrued employee
compensation and benefits |
|
2,543 |
|
|
|
5,218 |
|
|
|
4,071 |
|
|
|
5,821 |
|
|
Income tax payable |
|
(49 |
) |
|
|
(816 |
) |
|
|
(50 |
) |
|
|
(914 |
) |
|
Operating lease liabilities |
|
(645 |
) |
|
|
(504 |
) |
|
|
(1,695 |
) |
|
|
(1,474 |
) |
|
Other liabilities |
|
3,688 |
|
|
|
2,835 |
|
|
|
9,459 |
|
|
|
2,421 |
|
|
Net cash (used in) provided by operating activities |
|
(5,061 |
) |
|
|
5,879 |
|
|
|
18,487 |
|
|
|
37,617 |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant, equipment, mineral properties and
other assets |
|
(3,442 |
) |
|
|
(4,431 |
) |
|
|
(14,087 |
) |
|
|
(59,948 |
) |
|
Additions to intangible assets |
|
— |
|
|
|
(3,292 |
) |
|
|
— |
|
|
|
(16,873 |
) |
|
Long-term investment |
|
— |
|
|
|
— |
|
|
|
(3,500 |
) |
|
|
— |
|
|
Proceeds from sale of assets |
|
— |
|
|
|
— |
|
|
|
4,786 |
|
|
|
68 |
|
|
Net cash used in investing activities |
|
(3,442 |
) |
|
|
(7,723 |
) |
|
|
(12,801 |
) |
|
|
(76,753 |
) |
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Debt prepayment costs |
|
(1,869 |
) |
|
|
— |
|
|
|
(1,869 |
) |
|
|
— |
|
|
Repayments of long-term debt |
|
(15,000 |
) |
|
|
— |
|
|
|
(35,000 |
) |
|
|
— |
|
|
Proceeds from short-term borrowings on credit facility |
|
— |
|
|
|
317 |
|
|
|
10,000 |
|
|
|
30,317 |
|
|
Repayments of short-term borrowings on credit facility |
|
— |
|
|
|
(500 |
) |
|
|
— |
|
|
|
(10,500 |
) |
|
Capitalized debt fees |
|
— |
|
|
|
(457 |
) |
|
|
(36 |
) |
|
|
(457 |
) |
|
Employee tax withholding paid for restricted stock upon
vesting |
|
78 |
|
|
|
— |
|
|
|
(96 |
) |
|
|
(278 |
) |
|
Proceeds from loan under CARES Act |
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
Proceeds from exercise of stock options |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
Net cash (used in) provided by financing activities |
|
(16,791 |
) |
|
|
(640 |
) |
|
|
(17,001 |
) |
|
|
19,091 |
|
|
|
|
|
|
|
|
|
|
|
Net Change in Cash,
Cash Equivalents and Restricted Cash |
|
(25,294 |
) |
|
|
(2,484 |
) |
|
|
(11,315 |
) |
|
|
(20,045 |
) |
|
Cash, Cash Equivalents
and Restricted Cash, beginning of period |
|
35,218 |
|
|
|
16,143 |
|
|
|
21,239 |
|
|
|
33,704 |
|
|
Cash, Cash Equivalents
and Restricted Cash, end of period |
|
$ |
9,924 |
|
|
|
$ |
13,659 |
|
|
|
$ |
9,924 |
|
|
|
$ |
13,659 |
|
|
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 September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(in thousands) |
Net (Loss) Income |
$ |
(10,175 |
) |
|
|
$ |
(217 |
) |
|
|
$ |
(26,444 |
) |
|
|
$ |
11,549 |
|
Adjustments |
|
|
|
|
|
|
|
Litigation Settlement |
— |
|
|
|
— |
|
|
|
10,075 |
|
|
|
— |
|
Gain on
land sale |
— |
|
|
|
— |
|
|
|
(4,722 |
) |
|
|
— |
|
Total
adjustments |
— |
|
|
|
— |
|
|
|
5,353 |
|
|
|
— |
|
Adjusted Net (Loss)
Income |
$ |
(10,175 |
) |
|
|
$ |
(217 |
) |
|
|
$ |
(21,091 |
) |
|
|
$ |
11,549 |
|
Reconciliation of Net (Loss) Income per Share to Adjusted Net
(Loss) Income per Share:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net (Loss) Income Per Diluted
Share |
$ |
(0.78 |
) |
|
|
$ |
(0.02 |
) |
|
|
$ |
(2.04 |
) |
|
|
$ |
0.88 |
|
Adjustments |
|
|
|
|
|
|
|
Litigation settlement |
— |
|
|
|
— |
|
|
|
0.78 |
|
|
|
— |
|
Gain
on land sale |
— |
|
|
|
— |
|
|
|
(0.36 |
) |
|
|
— |
|
Total
adjustments |
— |
|
|
|
— |
|
|
|
0.42 |
|
|
|
— |
|
Adjusted Net (Loss) Income Per
Diluted Share |
$ |
(0.78 |
) |
|
|
$ |
(0.02 |
) |
|
|
$ |
(1.62 |
) |
|
|
$ |
0.88 |
|
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation, and
amortization (or adjusted EBITDA) is calculated as net (loss)
income adjusted for certain items that impact the comparability of
results from period to period, as set forth in the reconciliation
below. Intrepid considers adjusted EBITDA to be useful, and believe
it to be useful for investors, because the measure reflects
Intrepid's operating performance before the effects of certain
non-cash items and other items that Intrepid believes are not
indicative of its core operations. Intrepid uses adjusted EBITDA to
assess operating performance.
Reconciliation of Net (Loss) Income to Adjusted EBITDA:
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in thousands) |
Net (Loss) Income |
|
$ |
(10,175 |
) |
|
|
$ |
(217 |
) |
|
|
$ |
(26,444 |
) |
|
|
$ |
11,549 |
|
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
10,075 |
|
|
|
— |
|
|
Gain
on land sale |
|
— |
|
|
|
— |
|
|
|
(4,722 |
) |
|
|
— |
|
|
Interest expense |
|
2,450 |
|
|
|
849 |
|
|
|
3,877 |
|
|
|
2,258 |
|
|
Income tax benefit |
|
— |
|
|
|
(8 |
) |
|
|
(42 |
) |
|
|
(8 |
) |
|
Depreciation, depletion, and amortization |
|
8,748 |
|
|
|
8,326 |
|
|
|
26,377 |
|
|
|
25,145 |
|
|
Amortization of intangible assets |
|
80 |
|
|
|
188 |
|
|
|
241 |
|
|
|
188 |
|
|
Accretion of asset retirement obligation |
|
434 |
|
|
|
513 |
|
|
|
1,303 |
|
|
|
1,347 |
|
|
Total
adjustments |
|
11,712 |
|
|
|
9,868 |
|
|
|
37,109 |
|
|
|
28,930 |
|
|
Adjusted EBITDA |
|
$ |
1,537 |
|
|
|
$ |
9,651 |
|
|
|
$ |
10,665 |
|
|
|
$ |
40,479 |
|
|
Average Potash and Trio® Net Realized Sales Price per
Ton
Average net realized sales price per ton for potash is
calculated as potash segment sales less potash segment byproduct
sales and potash freight costs and then dividing that difference by
the number of tons of potash sold in the period. Likewise, average
net realized sales price per ton for Trio® is calculated as Trio®
segment sales less Trio® segment byproduct sales and Trio® freight
costs and then dividing that difference by Trio® tons sold.
Intrepid considers average net realized sales price per ton to be
useful, and believe it to be useful for investors, because it shows
Intrepid's potash and Trio® average per ton pricing without the
effect of certain transportation and delivery costs. When Intrepid
arranges transportation and delivery for a customer, it includes in
revenue and in freight costs the costs associated with
transportation and delivery. However, some of Intrepid's customers
arrange for and pay their own transportation and delivery costs, in
which case these costs are not included in Intrepid's revenue and
freight costs. Intrepid uses average net realized sales price per
ton as a key performance indicator to analyze potash and Trio®
sales and price trends.
Reconciliation of Sales to Average Net Realized Sales Price per
Ton:
|
|
Three Months Ended September 30, |
|
|
2020 |
|
2019 |
(in thousands, except per ton
amounts) |
|
Potash |
|
Trio® |
|
Potash |
|
Trio® |
Total Segment Sales |
|
$ |
22,187 |
|
|
$ |
12,890 |
|
|
$ |
29,213 |
|
|
$ |
14,637 |
|
Less: Segment byproduct
sales |
|
3,612 |
|
|
1,449 |
|
|
4,971 |
|
|
1,267 |
|
Freight
costs |
|
2,891 |
|
|
3,878 |
|
|
3,478 |
|
|
3,996 |
|
Subtotal |
|
$ |
15,684 |
|
|
$ |
7,563 |
|
|
$ |
20,764 |
|
|
$ |
9,374 |
|
|
|
|
|
|
|
|
|
|
Divided by: |
|
|
|
|
|
|
|
|
Tons sold |
|
66 |
|
|
40 |
|
|
78 |
|
|
46 |
|
Average net
realized sales price per ton |
|
$ |
238 |
|
|
$ |
189 |
|
|
$ |
266 |
|
|
$ |
204 |
|
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
(in thousands, except per ton
amounts) |
|
Potash |
|
Trio® |
|
Potash |
|
Trio® |
Total Segment Sales |
|
$ |
80,504 |
|
|
$ |
54,722 |
|
|
$ |
99,090 |
|
|
$ |
53,881 |
|
Less: Segment byproduct
sales |
|
10,562 |
|
|
3,248 |
|
|
14,283 |
|
|
3,598 |
|
Freight
costs |
|
10,021 |
|
|
15,935 |
|
|
10,325 |
|
|
15,503 |
|
Subtotal |
|
$ |
59,921 |
|
|
$ |
35,539 |
|
|
$ |
74,482 |
|
|
$ |
34,780 |
|
|
|
|
|
|
|
|
|
|
Divided by: |
|
|
|
|
|
|
|
|
Tons sold |
|
239 |
|
|
180 |
|
|
261 |
|
|
173 |
|
Average net
realized sales price per ton |
|
$ |
251 |
|
|
$ |
197 |
|
|
$ |
285 |
|
|
$ |
201 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2020 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
18,575 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(49 |
) |
|
|
$ |
18,526 |
|
Trio® |
|
— |
|
|
11,441 |
|
|
— |
|
|
— |
|
|
|
11,441 |
|
Water |
|
262 |
|
|
1,312 |
|
|
2,037 |
|
|
— |
|
|
|
3,611 |
|
Salt |
|
1,995 |
|
|
137 |
|
|
— |
|
|
— |
|
|
|
2,132 |
|
Magnesium Chloride |
|
1,127 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,127 |
|
Brine Water |
|
228 |
|
|
— |
|
|
105 |
|
|
— |
|
|
|
333 |
|
Other |
|
— |
|
|
— |
|
|
908 |
|
|
— |
|
|
|
908 |
|
Total Revenue |
|
$ |
22,187 |
|
|
$ |
12,890 |
|
|
$ |
3,050 |
|
|
$ |
(49 |
) |
|
|
$ |
38,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2020 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
69,942 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(253 |
) |
|
|
$ |
69,689 |
|
Trio® |
|
— |
|
|
51,474 |
|
|
— |
|
|
— |
|
|
|
51,474 |
|
Water |
|
957 |
|
|
2,963 |
|
|
10,727 |
|
|
— |
|
|
|
14,647 |
|
Salt |
|
5,792 |
|
|
285 |
|
|
— |
|
|
— |
|
|
|
6,077 |
|
Magnesium Chloride |
|
2,838 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,838 |
|
Brine Water |
|
975 |
|
|
— |
|
|
297 |
|
|
— |
|
|
|
1,272 |
|
Other |
|
— |
|
|
— |
|
|
2,515 |
|
|
— |
|
|
|
2,515 |
|
Total Revenue |
|
$ |
80,504 |
|
|
$ |
54,722 |
|
|
$ |
13,539 |
|
|
$ |
(253 |
) |
|
|
$ |
148,512 |
|
|
|
Three Months Ended September 30, 2019 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
24,242 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
$ |
24,242 |
|
Trio® |
|
— |
|
|
13,370 |
|
|
— |
|
|
— |
|
|
|
13,370 |
|
Water |
|
574 |
|
|
1,211 |
|
|
5,488 |
|
|
— |
|
|
|
7,273 |
|
Salt |
|
2,736 |
|
|
56 |
|
|
— |
|
|
— |
|
|
|
2,792 |
|
Magnesium Chloride |
|
949 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
949 |
|
Brine Water |
|
712 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
712 |
|
Other |
|
— |
|
|
— |
|
|
1,822 |
|
|
— |
|
|
|
1,822 |
|
Total Revenue |
|
$ |
29,213 |
|
|
$ |
14,637 |
|
|
$ |
7,310 |
|
|
$ |
— |
|
|
|
$ |
51,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
84,807 |
|
|
$ |
— |
|
|
$ |
2,040 |
|
|
$ |
(1,319 |
) |
|
|
$ |
85,528 |
|
Trio® |
|
— |
|
|
50,283 |
|
|
— |
|
|
— |
|
|
|
50,283 |
|
Water |
|
1,371 |
|
|
3,090 |
|
|
13,864 |
|
|
— |
|
|
|
18,325 |
|
Salt |
|
8,105 |
|
|
508 |
|
|
— |
|
|
— |
|
|
|
8,613 |
|
Magnesium Chloride |
|
2,895 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,895 |
|
Brine Water |
|
1,912 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,912 |
|
Other |
|
— |
|
|
— |
|
|
3,670 |
|
|
— |
|
|
|
3,670 |
|
Total Revenue |
|
$ |
99,090 |
|
|
$ |
53,881 |
|
|
$ |
19,574 |
|
|
$ |
(1,319 |
) |
|
|
$ |
171,226 |
|
Three Months Ended
September 30, 2020 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
22,187 |
|
|
$ |
12,890 |
|
|
|
$ |
3,050 |
|
|
|
$ |
(49 |
) |
|
|
$ |
38,078 |
|
|
Less: Freight costs |
|
3,973 |
|
|
3,878 |
|
|
|
— |
|
|
|
(49 |
) |
|
|
7,802 |
|
|
Warehousing and
handling
costs |
|
1,173 |
|
|
1,142 |
|
|
|
— |
|
|
|
— |
|
|
|
2,315 |
|
|
Cost of goods
sold |
|
14,928 |
|
|
8,754 |
|
|
|
3,363 |
|
|
|
— |
|
|
|
27,045 |
|
|
Lower of cost or
net realizable
value inventory
adjustments |
|
760 |
|
|
464 |
|
|
|
— |
|
|
|
— |
|
|
|
1,224 |
|
|
Gross Margin (Deficit) |
|
$ |
1,353 |
|
|
$ |
(1,348 |
) |
|
|
$ |
(313 |
) |
|
|
$ |
— |
|
|
|
$ |
(308 |
) |
|
Depreciation, depletion, and
amortization incurred1 |
|
$ |
6,430 |
|
|
$ |
1,531 |
|
|
|
$ |
657 |
|
|
|
$ |
210 |
|
|
|
$ |
8,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30, 2020 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
80,504 |
|
|
$ |
54,722 |
|
|
|
$ |
13,539 |
|
|
|
$ |
(253 |
) |
|
|
$ |
148,512 |
|
|
Less: Freight costs |
|
12,700 |
|
|
15,950 |
|
|
|
— |
|
|
|
(253 |
) |
|
|
28,397 |
|
|
Warehousing and
handling
costs |
|
3,673 |
|
|
3,611 |
|
|
|
— |
|
|
|
— |
|
|
|
7,284 |
|
|
Cost of goods
sold |
|
55,298 |
|
|
40,405 |
|
|
|
8,397 |
|
|
|
— |
|
|
|
104,100 |
|
|
Lower of cost or
net realizable
value inventory
adjustments |
|
1,130 |
|
|
2,885 |
|
|
|
— |
|
|
|
— |
|
|
|
4,015 |
|
|
Gross Margin (Deficit) |
|
$ |
7,703 |
|
|
$ |
(8,129 |
) |
|
|
$ |
5,142 |
|
|
|
$ |
— |
|
|
|
$ |
4,716 |
|
|
Depreciation, depletion, and
amortization incurred1 |
|
$ |
19,485 |
|
|
$ |
4,556 |
|
|
|
$ |
1,945 |
|
|
|
$ |
632 |
|
|
|
$ |
26,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
29,213 |
|
|
$ |
14,637 |
|
|
|
$ |
7,310 |
|
|
|
$ |
— |
|
|
|
$ |
51,160 |
|
|
Less: Freight costs |
|
4,728 |
|
|
3,996 |
|
|
|
— |
|
|
|
— |
|
|
|
8,724 |
|
|
Warehousing and
handling
costs |
|
1,190 |
|
|
972 |
|
|
|
— |
|
|
|
— |
|
|
|
2,162 |
|
|
Cost of goods
sold |
|
18,707 |
|
|
9,315 |
|
|
|
3,841 |
|
|
|
— |
|
|
|
31,863 |
|
|
Lower of cost or
net realizable
value inventory
adjustments |
|
— |
|
|
1,462 |
|
|
|
— |
|
|
|
— |
|
|
|
1,462 |
|
|
Gross Margin (Deficit) |
|
$ |
4,588 |
|
|
$ |
(1,108 |
) |
|
|
$ |
3,469 |
|
|
|
$ |
— |
|
|
|
$ |
6,949 |
|
|
Depreciation, depletion, and
amortization incurred1 |
|
$ |
6,048 |
|
|
$ |
1,517 |
|
|
|
$ |
747 |
|
|
|
$ |
202 |
|
|
|
$ |
8,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales |
|
$ |
99,090 |
|
|
$ |
53,881 |
|
|
|
$ |
19,574 |
|
|
|
$ |
(1,319 |
) |
|
|
$ |
171,226 |
|
|
Less: Freight costs |
|
14,110 |
|
|
15,502 |
|
|
|
861 |
|
|
|
— |
|
|
|
30,473 |
|
|
Warehousing and
handling
costs |
|
3,776 |
|
|
2,852 |
|
|
|
— |
|
|
|
— |
|
|
|
6,628 |
|
|
Cost of goods
sold |
|
59,024 |
|
|
32,988 |
|
|
|
8,682 |
|
|
|
(1,319 |
) |
|
|
99,375 |
|
|
Lower of cost or
net realizable
value inventory
adjustments |
|
— |
|
|
1,462 |
|
|
|
— |
|
|
|
— |
|
|
|
1,462 |
|
|
Gross Margin |
|
$ |
22,180 |
|
|
$ |
1,077 |
|
|
|
$ |
10,031 |
|
|
|
$ |
— |
|
|
|
$ |
33,288 |
|
|
Depreciation, depletion and
amortization incurred1 |
|
$ |
18,963 |
|
|
$ |
4,595 |
|
|
|
$ |
1,170 |
|
|
|
$ |
605 |
|
|
|
$ |
25,333 |
|
|
(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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