Intrepid Potash, Inc. (NYSE:IPI) ("Intrepid", the "Company", "we",
"us", "our") today reports its financial results for the fourth
quarter and full year of 2021.
Key Fourth Quarter and Full Year 2021
Takeaways
- Net income of $223.9 million and $249.8 million in the fourth
quarter and full year 2021, respectively, which includes the
release of $215.9 million of valuation allowance for deferred tax
assets
- Adjusted net income(1) of $8.0 million and $21.8 million in the
fourth quarter and full year 2021, respectively. Recorded $7.0
million of tax expense in the fourth quarter and full-year 2021 as
a result of the release of the valuation allowance against the
deferred tax assets
- Adjusted EBITDA(1) of $24.8 million for the fourth quarter,
bringing full year adjusted EBITDA to $67.6 million
- Cash flow from operations of $19.6 million in the fourth
quarter, increasing full year cash from operations to $79.1
million
- Cash on hand of approximately $60 million as of March 7,
2022
- Excited to announced a joint feasibility study alongside the
New Mexico Water Consortium and the New Mexico Environment
Department to evaluate the potential of using treated produced
water from oil and gas operations as injectate for our HB solar
solution mine
- Board of Directors approved a $35 million share repurchase
program
Management Comment
"The fourth quarter was highlighted by solid cash flow and a
significant increase in EBITDA compared to the prior period led by
the strong commodity environment and rising fertilizer prices,"
said Bob Jornayvaz, Intrepid's Executive Chairman and CEO. "Pricing
and demand strength have continued into the first quarter of 2022
and we expect another quarter of increasing realized prices. The
fertilizer and agriculture market outlook remains very strong and
we are poised to drive significant increases in bottom line-results
in 2022."
Jornayvaz continued, "Oilfield activity remains strong in the
Delaware Basin with water volumes and other oilfield services
revenue increasing, although segment results have lagged due to
increased water purchases and lease, contract labor, and rental
expenses. We continue to see good demand for water across our South
ranch and expect to benefit from activity closer to our
infrastructure during 2022. We are also excited to announce a joint
feasibility study alongside the New Mexico Water Consortium and the
New Mexico Environment Department to evaluate the potential of
using treated produced water from oil and gas operations as
injectate for our HB mine. Recycling and treatment technology have
improved considerably over the last few years and the potential to
convert a waste stream into a sustainable source for producing
potash is a unique opportunity for the basin and we look forward to
the pilot project beginning as early as the third quarter of this
year."
Share Repurchase Program
In February 2022, our Board of Directors approved a $35 million
share repurchase program. We intend to remain focused on continued
growth across our business segments and anticipate good cash flow
generation in the coming quarters.
“The share repurchase program reflects our confidence in both
our underlying business and our long-term potential," said Bob
Jornayvaz. "Our strategy hasn't changed. We view this simply as
another tool available to us to opportunistically return value to
shareholders.”
Under the share repurchase program, the Company may repurchase
shares from time to time in the open market or in privately
negotiated transactions. The timing, volume and nature of share
repurchases, if any, will be at the Company’s sole discretion and
will be dependent on market conditions, liquidity, applicable
securities laws, and other factors. The share repurchase program
may be suspended or discontinued at any time.
HB Green Disposal Pilot
Project
Intrepid is excited to announce a joint feasibility study with
the New Mexico Produced Water Consortium, as technical consultant
for the New Mexico Environment Department, to evaluate the
opportunity to beneficially re-use produced water from oil and gas
production in New Mexico’s Northern Delaware Basin as injectate for
Intrepid’s HB solar solution mine.
The pilot project is meant to prove the concept that treatment
of produced water can meet the constituent levels necessary to
comply with the standards and requirements for injection into
Intrepid’s HB Solar Solution Mine. Intrepid is uniquely able to
provide this service at its HB Solar Solution Mine which currently
utilizes naturally occurring salt brine and groundwater as
permitted injectates.
The New Mexico Produced Water Consortium has already approved
Intrepid’s submitted pilot proposal pursuant to and in compliance
with the New Mexico Environment Department’s 2022 requirements for
pilot testing. This high priority green pilot project is already
preliminarily scheduled to begin testing as early as the third
quarter of 2022. Intrepid is excited to cooperate with our public
and private stakeholders in advancing the proposed environmentally
friendly re-use of produced water. This project, if successful,
will aid in conserving existing groundwater sources in addition to
advancing and promoting Intrepid’s Environment, Social, and
Governance (ESG) goals and values as well as the stated mission of
the New Mexico Produced Water Consortium.
Consolidated Results
We recorded net income of $223.9 million, or $16.66 per diluted
share in the fourth quarter of 2021, contributing to full year 2021
net income of $249.8 million, or $18.66 per diluted share. Net
income for both periods benefited from the $215.9 million release
of the valuation allowance for our deferred tax assets. We released
the valuation allowance because our long-term projections of future
taxable income indicates that most of our deferred tax assets will
be realized in the future. As a result of the valuation allowance
release, we recorded a tax benefit of $208.9 million in the fourth
quarter and full year 2021. We recorded adjusted net income of $8.0
million, or $0.60 per diluted share in the fourth quarter of 2021,
contributing to full year 2021 adjusted net income of $21.8
million, or $1.63 per diluted share(1). Since we no longer have a
valuation allowance offsetting most our deferred tax assets, we
utilized some of our deferred tax assets and recorded tax expense
of $7.0 million, or $0.52 per diluted share, in both the fourth
quarter and full year 2021.
Consolidated gross margin of $21.8 million and $55.8 million in
the fourth quarter and full year 2021, respectively, was an
increase compared to the same year-ago periods due primarily to
increased net realized sales price per ton for our potash and Trio®
products.
The Carlsbad, New Mexico area where our HB solar solution mining
facility is located, received significant rainfall, well above the
historical rainfall average during the summer of 2021.
Additionally, humidity was higher than normal and temperatures were
cooler than average during this period which reduced our pond
production and our ability to extract brine. Due to the wet, humid
weather and cooler temperatures, we had fewer harvestable tons of
potash from our HB solution ponds. Accordingly, we recorded
abnormal production costs of $2.4 million and $6.0 million in the
fourth quarter and full year of 2021, respectively, and we may
incur additional abnormal production costs in future periods. We
did not incur any abnormal production costs in 2020.
Segment Highlights
Potash
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
(in thousands, except per ton data) |
Sales |
|
$ |
38,807 |
|
$ |
27,556 |
|
$ |
151,751 |
|
$ |
108,060 |
Gross margin |
|
$ |
12,516 |
|
$ |
3,847 |
|
$ |
35,845 |
|
$ |
11,551 |
|
|
|
|
|
|
|
|
|
Potash production volume (in
tons) |
|
|
86 |
|
|
106 |
|
|
287 |
|
|
308 |
Potash sales volume (in
tons) |
|
|
61 |
|
|
78 |
|
|
331 |
|
|
317 |
|
|
|
|
|
|
|
|
|
Average potash net realized
sales price per ton(1) |
|
$ |
504 |
|
$ |
248 |
|
$ |
353 |
|
$ |
250 |
Sales increased $11.2 million in the fourth quarter of 2021
driven by higher pricing, partially offset by reduced sales
volumes. Sales volumes decreased due to reduced production from our
mines and as we were selective in our sales in anticipation of a
good spring season. Full year potash sales increased $43.7 million
in the full year of 2021 due to improved net realized sales price
per ton and higher byproduct sales. Byproduct sales improved in
both periods due to increased magnesium chloride and water sales.
Fourth quarter and full year average net realized sales price per
ton increased as strong commodity pricing and tight-near-term
inventory levels led to multiple price increases during 2021. We
recorded abnormal production costs of $2.4 million and $6.0 million
in the fourth quarter and full year 2021, respectively, due to
significant wet weather and reduced evaporation at our HB mine in
the summer of 2021 which led to lower average ore grade and reduced
product available to harvest.
Gross margin increased $8.7 million and $24.3 million in the
fourth quarter and full year of 2021, respectively, compared to the
same periods in 2020. Increases in both periods were primarily
driven by higher average net realized sales prices for potash sales
and increased byproducts sales.
Fourth quarter 2021 production decreased compared to the prior
year as below average evaporation at our HB solar solution facility
led to lower ore grades, reducing our daily production rates. Full
year 2021 production decreased 7% compared to 2020 due to wet
weather and reduced evaporation rates at our HB solar solution
facility and significant wet weather at our Wendover facility in
the summer of 2020 which resulted in fewer tons available to
harvest in the spring of 2021.
Trio®
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
(in thousands, except per ton data) |
Sales |
|
$ |
24,612 |
|
$ |
15,565 |
|
|
$ |
96,058 |
|
$ |
70,287 |
|
Gross margin (deficit) |
|
$ |
7,913 |
|
$ |
(375 |
) |
|
$ |
16,442 |
|
$ |
(8,505 |
) |
|
|
|
|
|
|
|
|
|
Trio® production volume (in
tons) |
|
|
53 |
|
|
58 |
|
|
|
228 |
|
|
213 |
|
Trio® sales volume (in
tons) |
|
|
48 |
|
|
50 |
|
|
|
239 |
|
|
230 |
|
|
|
|
|
|
|
|
|
|
Average Trio® net realized
sales price per ton(1) |
|
$ |
388 |
|
$ |
188 |
|
|
$ |
295 |
|
$ |
195 |
|
Sales increased $9.0 million and $25.8 million in the fourth
quarter and full year 2021, respectively, compared to the prior
year periods as price increases announced throughout 2021 drove
significantly higher net realized sales price per ton. Full year
sales volume increased 4% compared to the prior year as we
continued to sell more tons into the domestic market and remained
very selective on export sales, which also improved our net
realized sales prices.
Gross margin increased $8.3 million and $24.9 million in the
fourth quarter and full year 2021, respectively, compared to the
prior year, as higher net realized pricing per ton drove bottom
line improvements. We recorded a lower of cost or net realized
value inventory adjustment of $2.9 million for the full year 2020.
We did not record any lower of cost or net realized value inventory
adjustments in 2021.
Production volumes increased 7% for the full year of 2021 as we
began operating increased shifts in the second half of 2021 in
anticipation of robust domestic demand in early 2022.
Oilfield Solutions
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
(in thousands) |
Sales |
|
$ |
8,479 |
|
$ |
5,390 |
|
$ |
22,770 |
|
$ |
18,929 |
Gross margin |
|
$ |
1,420 |
|
$ |
2,342 |
|
$ |
3,477 |
|
$ |
7,484 |
Sales increased $3.1 million and $3.8 million for the fourth
quarter and full year of 2021, respectively, when compared to the
same periods in 2020, as improvements in oilfield activity drove
increased water, brine and other oilfield services sales.
Full-year cost of goods sold increased $7.8 million in 2021,
compared to 2020, primarily due to water purchases, but also due to
increased depreciation, rental, lease, and contract labor expense.
Fourth quarter and full year 2021 gross margin decreased compared
to 2020 as increased water sales were offset by higher costs,
specifically the purchase of third party water to supplement the
high-volume fracs on our South ranch.
Liquidity
Cash provided by operations was $19.6 million during the fourth
quarter of 2021 and cash used for investing activities was $8.4
million during the fourth quarter of 2021. As of December 31, 2021,
Intrepid had $36.5 million in cash and cash equivalents and $74.0
million available to borrow under its credit facility. Cash balance
as of March 7 was approximately $60 million.
Notes
1 Adjusted net income, average net realized sales price per ton
and adjusted EBITDA are non-GAAP financial measures. See the
non-GAAP reconciliations set forth later in this press release for
additional information.
Unless expressly stated otherwise or the context otherwise
requires, references to tons in this press release refer to short
tons. One short ton equals 2,000 pounds. One metric tonne, which
many international competitors use, equals 1,000 kilograms or
2,204.62 pounds.
Conference Call Information
Intrepid will host a conference call on Tuesday, March 8, 2022
at 12:00 p.m. Eastern time (10:00 a.m. Mountain time) to discuss
the results. A Q&A session will immediately follow the
discussion of the results for the period. The call will also be
streamed on the Intrepid website, intrepidpotash.com.
Live event participation detailsDomestic
dial-in number: 800-319-4610International dial-in number:
+1-631-891-4304
Replay information available until April 10,
2022Conference ID #: 8527Replay dial-in (Toll Free US
& Canada): 800-319-6413Replay dial-in (International):
+1-631-883-6842
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 and cash
flows, water sales, production costs, and its market outlook. 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 and legal proceedings related 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;
- 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 revolving
credit facility, including the underlying covenants, to avoid a
default under the agreement;
- 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, 2020, 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, Chief Financial
Officer Phone:
303-996-3048Email: matt.preston@intrepidpotash.com
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)FOR THE THREE AND TWELVE
MONTHS ENDED DECEMBER 31, 2021 AND 2020 (In
thousands, except share and per share amounts)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Sales |
|
$ |
71,828 |
|
|
$ |
48,442 |
|
|
$ |
270,332 |
|
|
$ |
196,954 |
|
Less: |
|
|
|
|
|
|
|
|
Freight costs |
|
|
7,786 |
|
|
|
8,736 |
|
|
|
37,892 |
|
|
|
37,135 |
|
Warehousing and handling costs |
|
|
2,208 |
|
|
|
2,149 |
|
|
|
9,282 |
|
|
|
9,431 |
|
Cost of goods sold |
|
|
37,606 |
|
|
|
31,743 |
|
|
|
161,421 |
|
|
|
135,843 |
|
Lower of cost or net realizable value inventory adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,015 |
|
Costs associated with abnormal production |
|
|
2,379 |
|
|
|
— |
|
|
|
5,973 |
|
|
|
— |
|
Gross
Margin |
|
|
21,849 |
|
|
|
5,814 |
|
|
|
55,764 |
|
|
|
10,530 |
|
|
|
|
|
|
|
|
|
|
Selling and
administrative |
|
|
5,705 |
|
|
|
5,454 |
|
|
|
23,998 |
|
|
|
25,476 |
|
Accretion of asset retirement
obligation |
|
|
535 |
|
|
|
435 |
|
|
|
1,858 |
|
|
|
1,738 |
|
Litigation settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,075 |
|
Loss (gain) on sale of
assets |
|
|
18 |
|
|
|
191 |
|
|
|
(2,542 |
) |
|
|
(4,250 |
) |
Other operating expense |
|
|
564 |
|
|
|
241 |
|
|
|
178 |
|
|
|
735 |
|
Operating Income
(Loss) |
|
|
15,027 |
|
|
|
(507 |
) |
|
|
32,272 |
|
|
|
(23,244 |
) |
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(42 |
) |
|
|
(412 |
) |
|
|
(1,468 |
) |
|
|
(4,289 |
) |
Other income |
|
|
6 |
|
|
|
255 |
|
|
|
48 |
|
|
|
384 |
|
Gain on extinguishment of
debt |
|
|
— |
|
|
|
— |
|
|
|
10,113 |
|
|
|
— |
|
Income (Loss) Before
Income Taxes |
|
|
14,991 |
|
|
|
(664 |
) |
|
|
40,965 |
|
|
|
(27,149 |
) |
|
|
|
|
|
|
|
|
|
Income Tax Benefit
(Expense) |
|
|
208,869 |
|
|
|
(47 |
) |
|
|
208,869 |
|
|
|
(5 |
) |
Net Income
(Loss) |
|
$ |
223,860 |
|
|
$ |
(711 |
) |
|
$ |
249,834 |
|
|
$ |
(27,154 |
) |
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
13,129,081 |
|
|
|
13,030,185 |
|
|
|
13,098,871 |
|
|
|
12,993,225 |
|
Diluted |
|
|
13,440,708 |
|
|
|
13,030,185 |
|
|
|
13,391,362 |
|
|
|
12,993,225 |
|
Income (Loss) Per Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
17.05 |
|
|
$ |
(0.05 |
) |
|
$ |
19.07 |
|
|
$ |
(2.09 |
) |
Diluted |
|
$ |
16.66 |
|
|
$ |
(0.05 |
) |
|
$ |
18.66 |
|
|
$ |
(2.09 |
) |
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)AS OF DECEMBER 31, 2021 AND
2020(In thousands, except share and
per share amounts)
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
36,452 |
|
$ |
19,515 |
|
Accounts receivable: |
|
|
|
|
Trade, net |
|
|
35,409 |
|
|
22,516 |
|
Other receivables, net |
|
|
989 |
|
|
1,856 |
|
Inventory, net |
|
|
78,856 |
|
|
88,673 |
|
Other current assets |
|
|
5,144 |
|
|
3,228 |
|
Total current assets |
|
|
156,850 |
|
|
135,788 |
|
|
|
|
|
|
Property, plant, equipment,
and mineral properties, net |
|
|
341,117 |
|
|
355,497 |
|
Water rights |
|
|
19,184 |
|
|
19,184 |
|
Long-term parts inventory,
net |
|
|
29,251 |
|
|
28,900 |
|
Other assets, net |
|
|
11,418 |
|
|
10,819 |
|
Non-current deferred tax
asset, net |
|
|
209,075 |
|
|
— |
|
Total
Assets |
|
$ |
766,895 |
|
$ |
550,188 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
9,068 |
|
$ |
7,278 |
|
Income taxes payable |
|
|
41 |
|
|
— |
|
Accrued liabilities |
|
|
22,938 |
|
|
12,701 |
|
Accrued employee compensation
and benefits |
|
|
6,805 |
|
|
4,422 |
|
Other current liabilities |
|
|
34,571 |
|
|
32,816 |
|
Current portion of long-term
debt |
|
|
— |
|
|
10,000 |
|
Total current liabilities |
|
|
73,423 |
|
|
67,217 |
|
|
|
|
|
|
Advances on credit
facility |
|
|
— |
|
|
29,817 |
|
Long-term debt, net |
|
|
— |
|
|
14,926 |
|
Asset retirement
obligation |
|
|
27,024 |
|
|
23,872 |
|
Operating lease
liabilities |
|
|
1,879 |
|
|
2,136 |
|
Other non-current
liabilities |
|
|
1,166 |
|
|
961 |
|
Total
Liabilities |
|
|
103,492 |
|
|
138,929 |
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par
value; 40,000,000 shares authorized: |
|
|
|
|
and 13,149,315 and 13,049,820 shares outstanding |
|
|
|
|
at December 31, 2021, and 2020, respectively |
|
|
13 |
|
|
13 |
|
Additional paid-in
capital |
|
|
659,147 |
|
|
656,837 |
|
Retained Earnings (Accumulated
deficit) |
|
|
4,243 |
|
|
(245,591 |
) |
Total Stockholders'
Equity |
|
|
663,403 |
|
|
411,259 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
766,895 |
|
$ |
550,188 |
|
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2021 AND 2020(In
thousands)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Cash
Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
223,861 |
|
|
$ |
(711 |
) |
|
$ |
249,834 |
|
|
$ |
(27,154 |
) |
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion, and amortization |
|
|
9,126 |
|
|
|
9,411 |
|
|
|
35,635 |
|
|
|
35,788 |
|
Amortization of intangible assets |
|
|
81 |
|
|
|
81 |
|
|
|
322 |
|
|
|
322 |
|
Accretion of asset retirement obligation |
|
|
535 |
|
|
|
435 |
|
|
|
1,858 |
|
|
|
1,738 |
|
Amortization of deferred financing costs |
|
|
60 |
|
|
|
68 |
|
|
|
314 |
|
|
|
425 |
|
Stock-based compensation |
|
|
723 |
|
|
|
840 |
|
|
|
3,012 |
|
|
|
3,821 |
|
Reserve for obsolescence |
|
|
2,108 |
|
|
|
— |
|
|
|
2,108 |
|
|
|
492 |
|
Allowance for doubtful accounts |
|
|
— |
|
|
|
(200 |
) |
|
|
— |
|
|
|
75 |
|
Loss (Gain) on disposal of assets |
|
|
18 |
|
|
|
191 |
|
|
|
(2,542 |
) |
|
|
(4,250 |
) |
Gain on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(10,113 |
) |
|
|
— |
|
Lower of cost or net realizable value inventory adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,015 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(116 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable, net |
|
|
(2,679 |
) |
|
|
955 |
|
|
|
(12,615 |
) |
|
|
1,158 |
|
Other receivables, net |
|
|
2,461 |
|
|
|
719 |
|
|
|
589 |
|
|
|
(609 |
) |
Inventory, net |
|
|
(4,320 |
) |
|
|
(3,391 |
) |
|
|
7,358 |
|
|
|
(291 |
) |
Other current assets |
|
|
(826 |
) |
|
|
2,618 |
|
|
|
(1,974 |
) |
|
|
2,305 |
|
Deferred tax assets |
|
|
(209,075 |
) |
|
|
— |
|
|
|
(209,075 |
) |
|
|
— |
|
Accounts payable, accrued liabilities, and accrued employee
compensation and benefits |
|
|
(1,798 |
) |
|
|
(1,740 |
) |
|
|
13,456 |
|
|
|
2,331 |
|
Income tax payable |
|
|
2 |
|
|
|
— |
|
|
|
42 |
|
|
|
(50 |
) |
Operating lease liabilities |
|
|
(892 |
) |
|
|
(539 |
) |
|
|
(2,508 |
) |
|
|
(2,234 |
) |
Other liabilities |
|
|
259 |
|
|
|
3,921 |
|
|
|
3,366 |
|
|
|
13,379 |
|
Net cash provided by operating activities |
|
|
19,644 |
|
|
|
12,658 |
|
|
|
79,067 |
|
|
|
31,145 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant, equipment, mineral properties and
other assets |
|
|
(7,352 |
) |
|
|
(2,356 |
) |
|
|
(19,789 |
) |
|
|
(16,443 |
) |
Proceeds from sale of property, plant, equipment, and mineral
properties |
|
|
— |
|
|
|
— |
|
|
|
6,042 |
|
|
|
4,786 |
|
Long-term investment |
|
|
(1,076 |
) |
|
|
— |
|
|
|
(1,076 |
) |
|
|
(3,500 |
) |
Net cash used in investing activities |
|
|
(8,428 |
) |
|
|
(2,356 |
) |
|
|
(14,823 |
) |
|
|
(15,157 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Payments of financing lease |
|
|
— |
|
|
|
(74 |
) |
|
|
(1,258 |
) |
|
|
(74 |
) |
Repayment of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
(15,000 |
) |
|
|
(35,000 |
) |
Debt prepayment costs |
|
|
— |
|
|
|
— |
|
|
|
(505 |
) |
|
|
(1,869 |
) |
Proceeds from loan under CARES Act |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
Proceeds from borrowings on credit facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
Repayments of borrowings on credit facility |
|
|
— |
|
|
|
— |
|
|
|
(29,817 |
) |
|
|
— |
|
Capitalized debt costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(36 |
) |
Employee tax withholding paid for restricted shares upon
vesting |
|
|
(409 |
) |
|
|
(76 |
) |
|
|
(791 |
) |
|
|
(172 |
) |
Proceeds from exercise of stock options |
|
|
8 |
|
|
|
108 |
|
|
|
89 |
|
|
|
108 |
|
Net cash used in financing activities |
|
|
(401 |
) |
|
|
(42 |
) |
|
|
(47,282 |
) |
|
|
(17,043 |
) |
|
|
|
|
|
|
|
|
|
Net Change in Cash,
Cash Equivalents, and Restricted Cash |
|
|
10,815 |
|
|
|
10,260 |
|
|
|
16,962 |
|
|
|
(1,055 |
) |
Cash, Cash
Equivalents, and Restricted Cash, beginning of
period |
|
|
26,331 |
|
|
|
9,924 |
|
|
|
20,184 |
|
|
|
21,239 |
|
Cash, Cash
Equivalents, and Restricted Cash, end of period |
|
$ |
37,146 |
|
|
$ |
20,184 |
|
|
$ |
37,146 |
|
|
$ |
20,184 |
|
INTREPID POTASH,
INC.DISAGGREGATION OF REVENUE AND SEGMENT DATA
(UNAUDITED)FOR THE THREE AND TWELVE MONTHS ENDED
DECEMBER 31, 2021 AND 2020(In
thousands)
|
|
Three Months Ended December 31, 2021 |
Product |
|
Potash Segment |
|
Trio®
Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
33,211 |
|
$ |
— |
|
$ |
— |
|
$ |
(70 |
) |
|
$ |
33,141 |
Trio® |
|
|
— |
|
|
22,775 |
|
|
— |
|
|
— |
|
|
|
22,775 |
Water |
|
|
110 |
|
|
1,547 |
|
|
6,086 |
|
|
— |
|
|
|
7,743 |
Salt |
|
|
3,004 |
|
|
290 |
|
|
— |
|
|
— |
|
|
|
3,294 |
Magnesium Chloride |
|
|
2,018 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,018 |
Brines |
|
|
464 |
|
|
— |
|
|
394 |
|
|
— |
|
|
|
858 |
Other |
|
|
— |
|
|
— |
|
|
1,999 |
|
|
|
|
1,999 |
Total
Revenue |
|
$ |
38,807 |
|
$ |
24,612 |
|
$ |
8,479 |
|
$ |
(70 |
) |
|
$ |
71,828 |
|
|
Year Ended December 31, 2021 |
Product |
|
Potash Segment |
|
Trio®
Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
130,460 |
|
$ |
— |
|
$ |
— |
|
$ |
(247 |
) |
|
$ |
130,213 |
Trio® |
|
|
— |
|
|
91,125 |
|
|
— |
|
|
— |
|
|
|
91,125 |
Water |
|
|
2,050 |
|
|
4,355 |
|
|
15,594 |
|
|
— |
|
|
|
21,999 |
Salt |
|
|
9,592 |
|
|
578 |
|
|
— |
|
|
— |
|
|
|
10,170 |
Magnesium Chloride |
|
|
7,847 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
7,847 |
Brines |
|
|
1,802 |
|
|
— |
|
|
1,129 |
|
|
— |
|
|
|
2,931 |
Other |
|
|
— |
|
|
— |
|
|
6,047 |
|
|
— |
|
|
|
6,047 |
Total
Revenue |
|
$ |
151,751 |
|
$ |
96,058 |
|
$ |
22,770 |
|
$ |
(247 |
) |
|
$ |
270,332 |
|
|
Three Months Ended December 31, 2020 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
22,558 |
|
$ |
— |
|
$ |
— |
|
$ |
(69 |
) |
|
$ |
22,489 |
Trio® |
|
|
— |
|
|
13,870 |
|
|
— |
|
|
— |
|
|
|
13,870 |
Water |
|
|
296 |
|
|
1,481 |
|
|
3,974 |
|
|
— |
|
|
|
5,751 |
Salt |
|
|
2,311 |
|
|
214 |
|
|
— |
|
|
— |
|
|
|
2,525 |
Magnesium Chloride |
|
|
2,017 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,017 |
Brines |
|
|
374 |
|
|
— |
|
|
141 |
|
|
— |
|
|
|
515 |
Other |
|
|
— |
|
|
— |
|
|
1,275 |
|
|
— |
|
|
|
1,275 |
Total
Revenue |
|
$ |
27,556 |
|
$ |
15,565 |
|
$ |
5,390 |
|
$ |
(69 |
) |
|
$ |
48,442 |
|
|
Year Ended December 31, 2020 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
92,500 |
|
$ |
— |
|
$ |
— |
|
$ |
(322 |
) |
|
$ |
92,178 |
Trio® |
|
|
— |
|
|
65,344 |
|
|
— |
|
|
— |
|
|
|
65,344 |
Water |
|
|
1,253 |
|
|
4,444 |
|
|
14,701 |
|
|
— |
|
|
|
20,398 |
Salt |
|
|
8,103 |
|
|
499 |
|
|
— |
|
|
— |
|
|
|
8,602 |
Magnesium Chloride |
|
|
4,855 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
4,855 |
Brines |
|
|
1,349 |
|
|
— |
|
|
438 |
|
|
— |
|
|
|
1,787 |
Other |
|
|
— |
|
|
— |
|
|
3,790 |
|
|
— |
|
|
|
3,790 |
Total
Revenue |
|
$ |
108,060 |
|
$ |
70,287 |
|
$ |
18,929 |
|
$ |
(322 |
) |
|
$ |
196,954 |
Three Months Ended
December 31, 2021 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales(1) |
|
$ |
38,807 |
|
$ |
24,612 |
|
|
$ |
8,479 |
|
$ |
(70 |
) |
|
$ |
71,828 |
Less: Freight costs |
|
|
3,717 |
|
|
4,139 |
|
|
|
— |
|
|
(70 |
) |
|
|
7,786 |
Warehousing and handling costs |
|
|
1,165 |
|
|
1,043 |
|
|
|
— |
|
|
— |
|
|
|
2,208 |
Cost of goods sold |
|
|
19,030 |
|
|
11,517 |
|
|
|
7,059 |
|
|
— |
|
|
|
37,606 |
Costs associated with abnormalproduction and other |
|
|
2,379 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
2,379 |
Gross Margin |
|
$ |
12,516 |
|
$ |
7,913 |
|
|
$ |
1,420 |
|
$ |
— |
|
|
$ |
21,849 |
Depreciation, depletion, and
amortization incurred(2) |
|
$ |
6,933 |
|
$ |
1,272 |
|
|
$ |
790 |
|
$ |
212 |
|
|
$ |
9,207 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2021 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales(1) |
|
$ |
151,751 |
|
$ |
96,058 |
|
|
$ |
22,770 |
|
$ |
(247 |
) |
|
$ |
270,332 |
Less: Freight costs |
|
|
17,483 |
|
|
20,656 |
|
|
|
— |
|
|
(247 |
) |
|
|
37,892 |
Warehousing and handling costs |
|
|
5,169 |
|
|
4,113 |
|
|
|
— |
|
|
— |
|
|
|
9,282 |
Cost of goods sold |
|
|
87,281 |
|
|
54,847 |
|
|
|
19,293 |
|
|
— |
|
|
|
161,421 |
Costs associated with abnormal production |
|
|
5,973 |
|
|
— |
|
|
|
|
|
— |
|
|
|
5,973 |
Gross Margin |
|
$ |
35,845 |
|
$ |
16,442 |
|
|
$ |
3,477 |
|
$ |
— |
|
|
$ |
55,764 |
Depreciation, depletion, and
amortization incurred(2) |
|
$ |
26,828 |
|
$ |
5,477 |
|
|
$ |
2,996 |
|
$ |
656 |
|
|
$ |
35,957 |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, 2020 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales(1) |
|
$ |
27,556 |
|
$ |
15,565 |
|
|
$ |
5,390 |
|
$ |
(69 |
) |
|
$ |
48,442 |
Less: Freight costs |
|
|
4,324 |
|
|
4,481 |
|
|
|
— |
|
|
(69 |
) |
|
|
8,736 |
Warehousing and handling costs |
|
|
1,186 |
|
|
963 |
|
|
|
— |
|
|
— |
|
|
|
2,149 |
Cost of goods sold |
|
|
18,199 |
|
|
10,496 |
|
|
|
3,048 |
|
|
— |
|
|
|
31,743 |
Gross Margin (Deficit) |
|
$ |
3,847 |
|
$ |
(375 |
) |
|
$ |
2,342 |
|
$ |
— |
|
|
$ |
5,814 |
Depreciation, depletion, and
amortization incurred(2) |
|
$ |
7,051 |
|
$ |
1,512 |
|
|
$ |
718 |
|
$ |
211 |
|
|
$ |
9,492 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2020 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales(1) |
|
$ |
108,060 |
|
$ |
70,287 |
|
|
$ |
18,929 |
|
$ |
(322 |
) |
|
$ |
196,954 |
Less: Freight costs |
|
|
17,026 |
|
|
20,431 |
|
|
|
— |
|
|
(322 |
) |
|
|
37,135 |
Warehousing and handling costs |
|
|
4,857 |
|
|
4,574 |
|
|
|
— |
|
|
— |
|
|
|
9,431 |
Cost of goods sold |
|
|
73,496 |
|
|
50,902 |
|
|
|
11,445 |
|
|
— |
|
|
|
135,843 |
Lower of cost or net realizable value inventory adjustments |
|
|
1,130 |
|
|
2,885 |
|
|
|
— |
|
|
— |
|
|
|
4,015 |
Gross Margin (Deficit) |
|
$ |
11,551 |
|
$ |
(8,505 |
) |
|
$ |
7,484 |
|
$ |
— |
|
|
$ |
10,530 |
Depreciation, depletion and,
amortization incurred(2) |
|
$ |
26,536 |
|
$ |
6,068 |
|
|
$ |
2,663 |
|
$ |
843 |
|
|
$ |
36,110 |
(1) Segment sales include the sales of byproducts generated
during the production of potash and Trio®.(2) Depreciation,
depletion, and amortization incurred for potash and Trio® excludes
depreciation and depletion amounts absorbed in or (relieved from)
inventory.
INTREPID POTASH,
INC.UNAUDITED NON-GAAP
RECONCILIATIONSFOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020(In
thousands, except per share amounts)
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 income, adjusted net 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 Income (Loss) and Adjusted Net Income
(Loss) Per Diluted Share
Adjusted net income (loss) and adjusted net income (loss) per
diluted share are calculated as net income (loss) or net income
(loss) per diluted share adjusted for certain items that impact the
comparability of results from period to period, as set forth in the
reconciliation below. Intrepid considers these non-GAAP financial
measures to be useful because they allow for period-to-period
comparisons of its operating results excluding items that Intrepid
believes are not indicative of its fundamental ongoing
operations.
Reconciliation of Net Income (Loss) to Adjusted Net Income
(Loss):
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net Income (Loss) |
$ |
223,860 |
|
|
$ |
(711 |
) |
|
$ |
249,834 |
|
|
$ |
(27,154 |
) |
Adjustments |
|
|
|
|
|
|
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,075 |
|
Loss (gain) on sale of assets |
|
18 |
|
|
|
191 |
|
|
|
(2,542 |
) |
|
|
(4,250 |
) |
Gain on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(10,113 |
) |
|
|
— |
|
Make-whole payment(1) |
|
— |
|
|
|
— |
|
|
|
505 |
|
|
|
1,869 |
|
Write-off of deferred financing fees(2) |
|
— |
|
|
|
— |
|
|
|
60 |
|
|
|
128 |
|
Valuation allowance for deferred tax assets |
|
(215,910 |
) |
|
|
— |
|
|
|
(215,910 |
) |
|
|
— |
|
Total adjustments |
|
(215,892 |
) |
|
|
191 |
|
|
|
(228,000 |
) |
|
|
7,822 |
|
Adjusted Net Income
(Loss) |
$ |
7,968 |
|
|
$ |
(520 |
) |
|
$ |
21,834 |
|
|
$ |
(19,332 |
) |
Reconciliation of Net Income (Loss) per Share to Adjusted Net
Income (Loss) per Share:
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net Income (Loss) Per Diluted
Share |
$ |
16.66 |
|
|
$ |
(0.05 |
) |
|
$ |
18.66 |
|
|
$ |
(2.09 |
) |
Adjustments |
|
|
|
|
|
|
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.78 |
|
Loss (gain) on sale of assets |
|
— |
|
|
|
0.01 |
|
|
|
(0.19 |
) |
|
|
(0.33 |
) |
Gain on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(0.76 |
) |
|
|
— |
|
Make-whole payment(1) |
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
0.14 |
|
Write-off of deferred financing fees(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Valuation allowance for deferred tax assets |
|
(16.06 |
) |
|
|
— |
|
|
|
(16.12 |
) |
|
|
— |
|
Total adjustments |
|
(16.06 |
) |
|
|
0.01 |
|
|
|
(17.03 |
) |
|
|
0.60 |
|
Adjusted Net Income (Loss) Per
Diluted Share |
$ |
0.60 |
|
|
$ |
(0.04 |
) |
|
$ |
1.63 |
|
|
$ |
(1.49 |
) |
(1) As a result of early repayments of its senior notes,
Intrepid incurred make-whole payments, which are reflected on the
income statement as interest expense.
(2) As a result of early repayments of principal on its senior
notes, Intrepid wrote off a portion of the financing fees that had
previously been capitalized related to the senior notes. The
write-offs of deferred financing fees are reflected in Intrepid's
financial statements as interest expense.
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 Potash and Trio® Net Realized
Sales Price per Ton:
|
|
Potash Segment |
|
|
Three Months Ended December 31, |
|
|
|
2021 |
|
|
2020 |
Total Segment Sales |
|
$ |
38,807 |
|
$ |
27,556 |
Less: Segment byproduct
sales |
|
|
5,596 |
|
|
4,998 |
Potash freight costs |
|
|
2,465 |
|
|
3,249 |
Subtotal |
|
$ |
30,746 |
|
$ |
19,309 |
|
|
|
|
|
Divided by: |
|
|
|
|
Potash tons sold (in
thousands) |
|
|
61 |
|
|
78 |
Average net realized sales price per ton |
|
$ |
504 |
|
$ |
248 |
|
|
Potash Segment |
|
|
|
2021 |
|
|
2020 |
Total Segment Sales |
|
$ |
151,751 |
|
$ |
108,060 |
Less: Segment byproduct
sales |
|
|
21,291 |
|
|
15,560 |
Potash freight costs |
|
|
13,639 |
|
|
13,270 |
Subtotal |
|
$ |
116,821 |
|
$ |
79,230 |
|
|
|
|
|
Divided by: |
|
|
|
|
Potash tons sold (in
thousands) |
|
|
331 |
|
|
317 |
Average net realized sales price per ton |
|
$ |
353 |
|
$ |
250 |
|
|
Trio®
Segment |
|
|
Three Months Ended December 31, |
|
|
|
2021 |
|
|
2020 |
Total Segment Sales |
|
$ |
24,612 |
|
$ |
15,565 |
Less: Segment byproduct
sales |
|
|
1,837 |
|
|
1,695 |
Trio® freight costs |
|
|
4,139 |
|
|
4,481 |
Subtotal |
|
$ |
18,636 |
|
$ |
9,389 |
|
|
|
|
|
Divided by: |
|
|
|
|
Trio® tons sold (in
thousands) |
|
|
48 |
|
|
50 |
Average net realized sales price
per ton |
|
$ |
388 |
|
$ |
188 |
|
|
Trio®
Segment |
|
|
|
2021 |
|
|
2020 |
Total Segment Sales |
|
$ |
96,058 |
|
$ |
70,287 |
Less: Segment byproduct
sales |
|
|
4,933 |
|
|
4,943 |
Trio® freight costs |
|
|
20,656 |
|
|
20,416 |
Subtotal |
|
$ |
70,469 |
|
$ |
44,928 |
|
|
|
|
|
Divided by: |
|
|
|
|
Trio® tons sold (in
thousands) |
|
|
239 |
|
|
230 |
Average net realized sales
price per ton |
|
$ |
295 |
|
$ |
195 |
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation, and
amortization (or adjusted EBITDA) is calculated as net income
(loss) 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 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 Income (Loss) to Adjusted EBITDA:
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
$ |
223,860 |
|
|
$ |
(711 |
) |
|
$ |
249,834 |
|
|
$ |
(27,154 |
) |
Adjustments |
|
|
|
|
|
|
|
Gain on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
(10,113 |
) |
|
|
— |
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,075 |
|
Loss (gain) on sale of
assets |
|
18 |
|
|
|
191 |
|
|
|
(2,542 |
) |
|
|
(4,250 |
) |
Interest expense |
|
42 |
|
|
|
412 |
|
|
|
1,468 |
|
|
|
4,289 |
|
Income tax (benefit)
expense |
|
(208,869 |
) |
|
|
47 |
|
|
|
(208,869 |
) |
|
|
5 |
|
Depreciation, depletion, and
amortization |
|
9,126 |
|
|
|
9,411 |
|
|
|
35,635 |
|
|
|
35,788 |
|
Amortization of intangible
assets |
|
81 |
|
|
|
81 |
|
|
|
322 |
|
|
|
322 |
|
Accretion of asset retirement
obligation |
|
535 |
|
|
|
435 |
|
|
|
1,858 |
|
|
|
1,738 |
|
Total adjustments |
|
(199,067 |
) |
|
|
10,577 |
|
|
|
(182,241 |
) |
|
|
47,967 |
|
Adjusted Earnings Before
Interest, Taxes, Depreciation, |
|
|
|
|
|
|
|
and Amortization |
$ |
24,793 |
|
|
$ |
9,866 |
|
|
$ |
67,593 |
|
|
$ |
20,813 |
|
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