Intrepid Potash, Inc. (NYSE:IPI) ("Intrepid", the "Company", "we",
"us" and "our") today reports its financial results for the fourth
quarter and full-year of 2023.
Key Financial & Operational Highlights for the
Fourth Quarter and Full-Year 2023
- Total sales of $56.7 million in the fourth quarter and $279.1
million for the full-year 2023.
- Net loss of $37.3 million (or $2.91 per diluted share) and
$35.7 million (or $2.80 per diluted share) in the fourth quarter
and full-year 2023, respectively, and an adjusted net loss(1) of
$5.2 million and $3.0 million, respectively.
- Included in the GAAP net loss figures are non-cash impairment
charges of $42.8 million in the fourth quarter of 2023 and $43.3
million for the full-year 2023.
- Adjusted EBITDA(1) of $7.1 million for the fourth quarter,
bringing our full-year 2023 adjusted EBITDA to $41.6 million.
- Cash flow from operations of $4.6 million in the fourth
quarter, bringing our full-year 2023 cash flow from operations to
$43.2 million.
- In December 2023, we announced the Third Amendment to the
Cooperative Development Agreement with XTO Holdings (“XTO”),
pursuant to which Intrepid received an initial $50 million in fees
for Intrepid’ s agreement to support and not oppose XTO’s
development and operation of oil and gas interests within a
specified area. The Third Amendment also stipulates the following:
- Intrepid will receive an additional guaranteed, one-time $50
million payment, which XTO will pay within 90 days upon the earlier
occurrence of (i) either the approval of the first new or expanded
drilling island within a specific area to be used by XTO, or (ii)
within seven years of the anniversary of the Third Amendment
effective date; and
- XTO is also required to pay additional amounts to Intrepid of
up to a maximum of $100 million in the event of certain additional
drilling activities, although the timing and exact amount are
uncertain.
- The breakdown of the $42.8 million impairment charge in the
fourth quarter of 2023 is as follows: $31.9 million related to our
conventional langbeinite mine ("East mine"), $9.9 million related
to the remaining assets at our West mine - which has been in care
and maintenance since 2016 - and $1.0 million related to various
water recycling assets.
Liquidity & Investments
- We ended 2023 with cash and cash equivalents of approximately
$4.1 million and had $4.0 million of outstanding borrowings on our
$150 million revolving credit facility.
- As of March 1, 2024, cash and cash equivalents totaled
approximately $35.4 million and we had no outstanding borrowings on
our credit facility, for total liquidity of approximately $185.4
million.
- Intrepid maintains an investment account of short-and-long-term
fixed income securities that had a balance of approximately $3.9
million as of March 1, 2024.
Capital Expenditures
- Our capital expenditures for 2023 totaled $65.1 million, which
was at the lower-end of our guidance range of $65 to $75 million.
For 2024, our capital expenditure guidance range is $40 to $50
million. Our growth capital spending is expected to moderate to
approximately $20 to $25 million in 2024 as we complete the
projects described below.
Strategic Focus for Growth Capital & Key
Recent/Remaining Projects
- Our growth capital is focused on improving the production rates
at our solar solution potash assets, which on a combined basis,
have had a declining production profile since 2017. Our goal is to
maximize brine availability and underground residence time, which
in turn drives higher-grade extraction brine and an improved
production profile.
HB Solution Mine in Carlsbad, New Mexico
- Key Takeaways for HB: The three
projects highlighted below are expected to deliver the step-change
to higher production at HB starting in the second half of 2024 and
start us back on the path of injecting more brine into our cavern
system. Through improved injection rates, we expect to increase
underground residence time of our brine which should lead to higher
extraction brine grades and improved potash production over the
long-term. We are also initiating discussions with the regulatory
agencies to expand HB's solution mining footprint to further
increase the productive capacity of this mine.
- Eddy Shaft Brine Extraction Project:
We successfully commissioned this project in October 2023. To date,
we have extracted approximately 143 million gallons of high-grade
brine, which represents approximately 30% of HB's 2024 brine
extraction volume. The extracted brine has measured at a potassium
chloride ("KCl") concentration of 9.1%, which is the highest level
seen since our peak potash production years from 2017 to 2019. This
project serves as an important bridge to achieving our higher
production goals until we commission the new Replacement Extraction
Well and Phase Two of the HB Injection Pipeline, but is also
designed to have a long-term operational life as part of the brine
injection/extraction cycle for the HB cavern system.
- Replacement Extraction Well
("IP30B"): Construction of the drilling pad recently finished and
we expect to commission the project in the second quarter of 2024.
This new extraction well is designed to have a long-term
operational life and will also extract brine from the Eddy Cavern
that is at deeper depths than the Eddy Shaft project. Given the
lower depths, this brine is expected have an equal or higher KCl
concentration than what is being extracted from the Eddy Shaft
project. The initial brine pool that IP30B will extract has been
measured at over 330 million gallons and together with the Eddy
Shaft project is expected to provide for enough brine to cover the
majority of our extraction needs at HB for 2024 and through early
2025. Note that this production is in addition to the Eddy Shaft
brine we extracted in 2023 post-project commissioning.
- Phase Two of HB Injection Pipeline
Project: All permitting is expected to be complete by the end of
March 2024 and we anticipate construction beginning shortly
thereafter, with commissioning expected in the first half of 2024.
Upon Phase 2 commissioning, we expect our brine injection rates at
HB to be the highest in company history. This project is key for
maximizing brine availability and residence time, and in turn,
developing higher-grade concentrations of KCl for the extraction
brine. The injected brine associated with Phase Two commissioning
is expected to result in improved brine grades ready for extraction
by mid-2025.
Brine Recovery Mine in Wendover, Utah
- Primary Pond 7: We started
construction on a new primary pond at Wendover to increase the
brine evaporative area, which will result in Wendover having two
primary ponds when complete. Similar to our caverns at Moab and HB,
the primary ponds at Wendover serve as the brine storage area, and
adding another primary pond will help meet our goals of maximizing
brine availability, increasing the KCl concentration in the brine,
and improving our potash production. We expect this project to be
commissioned in the third quarter of 2024 and with production
benefits beginning in 2025.
- Lithium Project: We engaged Pickering Energy Partners as an
advisor to help maximize the value of the lithium resource and
evaluate direct lithium extraction technologies at Wendover. The
lithium already present in our byproduct magnesium brine is
estimated to support approximately two thousand tons of lithium
carbonate production per year assuming a commercially feasible
extraction technology. With a commercially feasible project, we
plan to pursue a royalty structure or joint venture to limit
Intrepid’s capital investment and operating costs.
Intrepid South
- Sand Project: After significant
delays in the permitting process, we received the final air permit
for our sand project in Southeastern New Mexico and we now have all
required permits necessary for project construction and operation.
This project is planned to have a productive capacity of one
million tons of wet sand per year and we estimate that the
underlying resource contains enough sand to support decades of
production. With all necessary permits in hand, we are continuing
to evaluate the market and our options, including the potential to
add a strategic partner.
Consolidated Results, Management Commentary, &
Outlook
Intrepid generated fourth quarter and full-year 2023 sales of
approximately $56.7 million and $279.1 million, respectively, which
compares to fourth quarter and full-year 2022 sales of
approximately $66.7 million and $337.6 million, respectively. The
lower sales in 2023 were driven by lower pricing after the record
levels seen in 2022, partially offset by higher sales volumes. Our
average net realized sales price for potash(1) totaled $466 per ton
in 2023, while the average net realized sales price for Trio®(1)
totaled $321 per ton. During the fourth quarter, Intrepid generated
a GAAP net loss of $37.3 million, a non-GAAP adjusted net loss(1)
of $5.2 million, and adjusted EBITDA(1) of $7.1 million, bringing
our full-year 2023 figures to a GAAP net loss of $35.7 million, a
non-GAAP adjusted net loss(1) of approximately $3.0 million, and
adjusted EBITDA(1) of $41.6 million.
Bob Jornayvaz, Intrepid's Executive Chairman and CEO commented:
"Intrepid's fourth quarter saw the continuation of strong demand
for our potash and Trio® with our combined 2023 sales volumes up
approximately 16% compared to 2022. Slightly lower fertilizer
pricing and higher costs associated with our current potash
production profile again proved to be headwinds to our margins in
the fourth quarter, although we are on track to start to see the
first step-change to higher potash production beginning in the
second half of 2024. Moreover, fertilizer pricing has remained
resilient and we expect to see steady sales through the spring
application season.
The key highlight during the quarter was the December
announcement that we entered into the Third Amendment to the
Cooperative Development Agreement with XTO. Intrepid has already
received the first $50 million for its commitments under the
Amendment, and the Amendment also stipulates that Intrepid will
receive an additional guaranteed, one-time $50 million payment upon
certain events, with XTO also being required to pay additional
amounts in the event of certain additional drilling activities, up
to a maximum of $100 million. This is a milestone development for
Intrepid and the cash infusion significantly helps de-risk our
outlook. Our current balance sheet is close to fully funding our
2024 capital program, providing a cash runway until we see the
positive impacts to our unit economics associated with the higher
potash production rates.
Intrepid's primary strategic priority has been to revitalize our
potash assets and I'm very pleased to share that we are on track to
successfully achieve this goal. We still have a couple projects to
bring online over the next few months but our potash production
outlook is improving, highlighted by the significantly improved
brine grades we're already seeing in our harvest ponds at HB from
the Eddy Shaft project. We are a few quarters away from seeing the
first inflection to higher production from our HB mine and we want
to be clear that our investments are designed to sustainably
support higher potash production over the long-term.
As for our other growth opportunities, we recently received the
final permit for our sand project at Intrepid South and we continue
to make progress on our lithium resource at Wendover. Overall,
we're optimistic on Intrepid's future and we'll be laser-focused on
getting appropriate value back in the stock."
Segment HighlightsPotash
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| |
|
(in thousands, except per ton data) |
| Sales |
|
$ |
28,557 |
|
$ |
43,756 |
|
$ |
155,920 |
|
$ |
191,378 |
| Gross margin |
|
$ |
4,333 |
|
$ |
20,907 |
|
$ |
35,049 |
|
$ |
94,769 |
| |
|
|
|
|
|
|
|
|
| Potash production volume (in
tons) |
|
|
79 |
|
|
106 |
|
|
224 |
|
|
270 |
| Potash sales volume (in
tons) |
|
|
45 |
|
|
50 |
|
|
258 |
|
|
222 |
| |
|
|
|
|
|
|
|
|
| Average potash net realized
sales price per ton(1) |
|
$ |
431 |
|
$ |
693 |
|
$ |
466 |
|
$ |
713 |
Our total potash segment sales in 2023 decreased $35.5 million
to $155.9 million, or 19%, compared to 2022, as potash sales
decreased 22%, partially offset by an 8% increase in byproduct
sales. Potash sales decreased in 2023 as the average potash net
realized sales price per ton decreased 35%, partially offset by a
16% increase in potash tons sold. Potash prices peaked during the
second quarter of 2022 and steadily declined in each succeeding
quarter in 2023. Potash tons sold increased in 2023 as supportive
farm commodity prices and lower potash prices drove solid
demand.
Potash segment cost of goods sold increased $20.9 million, or
27%, in 2023, compared to 2022, mainly due to a 16% increase in
potash tons sold. In addition, our weighted average carrying cost
per ton increased mainly due to a 15%, or $3.8 million increase in
production labor and benefits expenses in 2023. Our total tons of
potash produced decreased 17% in 2023, compared to 2022, which also
drove an increase in our per ton production costs. As the majority
of our production costs are fixed, decreases in tons produced
results in higher per ton costs.
During 2023, we recorded $2.7 million in lower of cost or net
realizable value inventory adjustments as our weighted average
carry cost per ton exceeded our expected net realizable value per
potash ton.
Our potash segment gross margin decreased $59.7 million in 2023,
compared to 2022, which was primarily due to the $35.5 million
decrease in potash segment sales, increased cost of goods sold, and
the lower of cost or net realizable value inventory adjustments, as
discussed above.
Trio®
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
| |
|
(in thousands, except per ton data) |
| Sales |
|
$ |
21,130 |
|
|
$ |
17,265 |
|
$ |
102,182 |
|
|
$ |
117,826 |
| Gross (deficit) margin |
|
$ |
(2,378 |
) |
|
$ |
3,429 |
|
$ |
(3,995 |
) |
|
$ |
39,123 |
| |
|
|
|
|
|
|
|
|
| Trio® production volume (in
tons) |
|
|
57 |
|
|
|
51 |
|
|
216 |
|
|
|
226 |
| Trio® sales volume (in
tons) |
|
|
49 |
|
|
|
28 |
|
|
228 |
|
|
|
197 |
| |
|
|
|
|
|
|
|
|
| Average Trio® net realized
sales price per ton(1) |
|
$ |
292 |
|
|
$ |
461 |
|
$ |
321 |
|
|
$ |
479 |
Our total Trio® segment sales decreased $15.6 million, or 13%,
in 2023, as compared to 2022, as Trio® sales decreased 15%, or
$17.6 million, partially offset by a $2.0 million increase in
segment byproduct sales, which was primarily driven by an increase
in byproduct water sales.
Our 2023 Trio® sales decreased $17.6 million, or 15%, in 2023,
as compared to 2022, as our average net realized sales price per
ton decreased 33%, which was partially offset by a 16% increase in
Trio® tons sold. Our Trio® average net realized sales price per ton
decreased as the value of potassium fertilizers declined due to
improved global production rates and product availability. Our
higher Trio® tons sold in 2023 benefited from the reduced sales
volumes we experienced in the second half of 2022 as customers
delayed purchases in anticipation of lower price levels and overall
strong commodity prices throughout 2023.
Our Trio® cost of goods sold increased $19.7 million in 2023, or
36%, compared to 2022, primarily driven by a 16% increase in our
Trio® tons sold and an increase in our per ton production costs. In
addition, we also began 2023 with a higher average cost per ton of
inventory compared to 2022. Our Trio® production costs increased in
2023 due to a $1.8 million increase in labor and benefits expenses,
a $1.8 million increase in operating and maintenance supplies, a
$1.8 million increase in depreciation due to increased capital
investments, and a $1.0 million increase in property taxes and
insurance, and were partially offset by a $1.0 reduction in royalty
expense due to decreased sales revenue.
In 2023, our Trio® segment gross deficit totaled $4.0 million
which compares to gross margin of $39.1 million in 2022.
Oilfield Solutions
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| |
|
(in thousands) |
| Sales |
|
$ |
7,045 |
|
$ |
5,732 |
|
$ |
21,310 |
|
$ |
28,668 |
| Gross margin |
|
$ |
2,666 |
|
$ |
1,315 |
|
$ |
5,792 |
|
$ |
7,516 |
Our oilfield solutions segment sales decreased 26% in 2023,
compared to 2022. Water sales decreased $7.9 million in 2023 to
$9.6 million, and revenue from right-of-way agreements, surface
damages and easements decreased by $0.7 million. Brine sales
increased $1.4 million, and produced water disposal royalties
increased $0.1 million during 2023, compared to 2022.
Our oilfield solutions water sales decreased as we purchased
$5.0 million less in third-party water for resale in 2023 and due
to reduced sales of Caprock water. Our sales of brine increased as
we sold increased volumes of brine at a higher per barrel price in
2023.
Oilfield solutions cost of goods sold decreased 27% in 2023,
compared to 2022, primarily due to a $5.0 million decrease in
third-party water purchased for resale. We incurred $0.6 million in
increased labor and benefits expenses and a $0.6 million increase
in depreciation related to new infrastructure placed in service in
2023, compared to 2022. These increased costs were partially offset
by a $0.5 million decrease in royalty expense in 2023, compared to
2022, due to reduced water sales. Segment gross margin decreased
$1.7 million, or 23%, in 2023 compared to 2022, due to the factors
described above.
Notes
1 Adjusted net (loss) 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 Thursday, March 7, 2024,
at 12:00 p.m. Eastern Time to discuss the results and other
operating and financial matters and answer investor
questions.Management invites you to listen to the conference call
by using the toll-free dial-in number 1 (800) 715-9871 or
International dial-in number 1 (646) 307-1963; please use
conference ID 1179359.
The call will also be streamed on the Intrepid website,
intrepidpotash.com. A recording of the conference call will be
available approximately two hours after the completion of the call
by dialing 1 (800) 770-2030 for toll-free, 1 (609) 800-9909 for
International, or at intrepidpotash.com. The replay of the call
will require the input of the conference identification number
1179359. The recording will be available through March 14,
2024.
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 StatementsThis 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 our products and
services;
- challenges and legal proceedings related to our water
rights;
- our ability to successfully identify and implement any
opportunities to grow our business whether through expanded sales
of water, Trio®, byproducts, and other non-potassium related
products or other revenue diversification activities;
- the costs of, and our ability to successfully execute, any
strategic projects;
- declines or changes in agricultural production or fertilizer
application rates;
- declines in the use of potassium-related products or water by
oil and gas companies in their drilling operations;
- our ability to prevail in outstanding legal proceedings against
us;
- our ability to comply with the terms of our revolving credit
facility, including the underlying covenants;
- further write-downs of the carrying value of assets, including
inventories;
- circumstances that disrupt or limit production, including
operational difficulties or variances, geological or geotechnical
variances, equipment failures, environmental hazards, and other
unexpected events or problems;
- changes in reserve estimates;
- currency fluctuations;
- adverse changes in economic conditions or credit markets;
- the impact of governmental regulations, including environmental
and mining regulations, the enforcement of those regulations, and
governmental policy changes;
- adverse weather events, including events affecting
precipitation and evaporation rates at our solar solution
mines;
- increased labor costs or difficulties in hiring and retaining
qualified employees and contractors, including workers with mining,
mineral processing, or construction expertise;
- changes in the prices of raw materials, including chemicals,
natural gas, and power;
- our ability to obtain and maintain any necessary governmental
permits or leases relating to current or future operations;
- interruptions in rail or truck transportation services, or
fluctuations in the costs of these services;
- our inability to fund necessary capital investments;
- the impact of global health issues and other global disruptions
on our 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, 2022, 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:Evan Mapes, CFA, Investor Relations
Manager Phone:
303-996-3042Email: evan.mapes@intrepidpotash.com
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)FOR THE THREE AND TWELVE
MONTHS ENDED DECEMBER 31, 2023 AND 2022 (In
thousands, except share and per share amounts)
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Sales |
|
$ |
56,663 |
|
|
$ |
66,677 |
|
|
$ |
279,083 |
|
|
$ |
337,568 |
|
| Less: |
|
|
|
|
|
|
|
|
|
Freight costs |
|
|
7,620 |
|
|
|
6,880 |
|
|
|
37,635 |
|
|
|
34,137 |
|
|
Warehousing and handling costs |
|
|
2,567 |
|
|
|
2,526 |
|
|
|
10,832 |
|
|
|
9,747 |
|
|
Cost of goods sold |
|
|
38,776 |
|
|
|
31,620 |
|
|
|
187,278 |
|
|
|
152,276 |
|
|
Lower of cost or net realizable value inventory adjustments |
|
|
3,079 |
|
|
|
— |
|
|
|
6,492 |
|
|
|
— |
|
| Gross
Margin |
|
|
4,621 |
|
|
|
25,651 |
|
|
|
36,846 |
|
|
|
141,408 |
|
| |
|
|
|
|
|
|
|
|
| Selling and
administrative |
|
|
7,932 |
|
|
|
9,241 |
|
|
|
32,423 |
|
|
|
31,799 |
|
| Accretion of asset retirement
obligation |
|
|
535 |
|
|
|
490 |
|
|
|
2,140 |
|
|
|
1,961 |
|
| Impairment of long-lived
assets |
|
|
42,767 |
|
|
|
— |
|
|
|
43,288 |
|
|
|
— |
|
| Loss on sale of assets |
|
|
555 |
|
|
|
6,294 |
|
|
|
807 |
|
|
|
7,470 |
|
| Other operating expense |
|
|
277 |
|
|
|
3,499 |
|
|
|
2,157 |
|
|
|
4,738 |
|
| Operating (Loss)
Income |
|
|
(47,445 |
) |
|
|
6,127 |
|
|
|
(43,969 |
) |
|
|
95,440 |
|
| |
|
|
|
|
|
|
|
|
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
| Equity in earnings of
unconsolidated entities |
|
|
(194 |
) |
|
|
(77 |
) |
|
|
(486 |
) |
|
|
689 |
|
| Interest expense, net |
|
|
— |
|
|
|
(16 |
) |
|
|
— |
|
|
|
(101 |
) |
| Interest income |
|
|
49 |
|
|
|
82 |
|
|
|
298 |
|
|
|
176 |
|
| Other income |
|
|
20 |
|
|
|
24 |
|
|
|
95 |
|
|
|
305 |
|
| (Loss) Income Before
Income Taxes |
|
|
(47,570 |
) |
|
|
6,140 |
|
|
|
(44,062 |
) |
|
|
96,509 |
|
| |
|
|
|
|
|
|
|
|
| Income Tax Benefit
(Expense) |
|
|
10,282 |
|
|
|
(2,158 |
) |
|
|
8,389 |
|
|
|
(24,289 |
) |
| Net (Loss)
Income |
|
$ |
(37,288 |
) |
|
$ |
3,982 |
|
|
$ |
(35,673 |
) |
|
$ |
72,220 |
|
| |
|
|
|
|
|
|
|
|
| Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
12,792,650 |
|
|
|
12,946,415 |
|
|
|
12,760,937 |
|
|
|
13,151,752 |
|
|
Diluted |
|
|
12,792,650 |
|
|
|
13,160,627 |
|
|
|
12,760,937 |
|
|
|
13,452,233 |
|
| (Loss) Income Per Share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(2.91 |
) |
|
$ |
0.31 |
|
|
$ |
(2.80 |
) |
|
$ |
5.49 |
|
|
Diluted |
|
$ |
(2.91 |
) |
|
$ |
0.30 |
|
|
$ |
(2.80 |
) |
|
$ |
5.37 |
|
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)AS OF DECEMBER 31, 2023 AND
2022(In thousands, except share and per share
amounts)
| |
|
December 31, |
| |
|
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
|
| Cash and cash equivalents |
|
$ |
4,071 |
|
|
$ |
18,514 |
|
| Short-term investments |
|
|
2,970 |
|
|
|
5,959 |
|
| Accounts receivable: |
|
|
|
|
|
Trade, net |
|
|
22,077 |
|
|
|
26,737 |
|
|
Other receivables, net |
|
|
1,374 |
|
|
|
790 |
|
| Inventory, net |
|
|
114,252 |
|
|
|
114,816 |
|
| Other current assets |
|
|
7,200 |
|
|
|
4,863 |
|
|
Total current assets |
|
|
151,944 |
|
|
|
171,679 |
|
| |
|
|
|
|
| Property, plant, equipment,
and mineral properties, net |
|
|
358,249 |
|
|
|
375,630 |
|
| Water rights |
|
|
19,184 |
|
|
|
19,184 |
|
| Long-term parts inventory,
net |
|
|
30,231 |
|
|
|
24,823 |
|
| Long-term investments |
|
|
6,627 |
|
|
|
9,841 |
|
| Other assets, net |
|
|
8,016 |
|
|
|
7,294 |
|
| Non-current deferred tax
asset, net |
|
|
194,223 |
|
|
|
185,752 |
|
| Total
Assets |
|
$ |
768,474 |
|
|
$ |
794,203 |
|
| |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
| |
|
|
|
|
| Accounts payable |
|
$ |
12,848 |
|
|
$ |
18,645 |
|
| Income taxes payable |
|
|
40 |
|
|
|
8 |
|
| Accrued liabilities |
|
|
19,061 |
|
|
|
16,212 |
|
| Accrued employee compensation
and benefits |
|
|
7,254 |
|
|
|
6,975 |
|
| Other current liabilities |
|
|
7,265 |
|
|
|
7,036 |
|
|
Total current liabilities |
|
|
46,468 |
|
|
|
48,876 |
|
| |
|
|
|
|
| Advances on credit
facility |
|
|
4,000 |
|
|
|
— |
|
| Asset retirement
obligation |
|
|
30,077 |
|
|
|
26,564 |
|
| Operating lease
liabilities |
|
|
741 |
|
|
|
2,206 |
|
| Finance lease liabilities |
|
|
1,451 |
|
|
|
— |
|
| Other non-current
liabilities |
|
|
1,309 |
|
|
|
1,479 |
|
| Total
Liabilities |
|
|
84,046 |
|
|
|
79,125 |
|
| |
|
|
|
|
| Commitments and
Contingencies |
|
|
|
|
| |
|
|
|
|
| Common stock, $0.001 par
value; 40,000,000 shares authorized: |
|
|
|
|
|
and 12,807,316 and 12,687,822 shares outstanding |
|
|
|
|
|
at December 31, 2023 and 2022, respectively |
|
|
13 |
|
|
|
13 |
|
| Additional paid-in
capital |
|
|
665,637 |
|
|
|
660,614 |
|
| Retained earnings |
|
|
40,790 |
|
|
|
76,463 |
|
| Less treasury stock, at
cost |
|
|
(22,012 |
) |
|
|
(22,012 |
) |
| Total Stockholders'
Equity |
|
|
684,428 |
|
|
|
715,078 |
|
| Total Liabilities and
Stockholders' Equity |
|
$ |
768,474 |
|
|
$ |
794,203 |
|
INTREPID POTASH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2023 AND 2022(In
thousands)
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Cash Flows from
Operating Activities: |
|
|
|
|
|
|
|
|
| Net (loss) income |
|
$ |
(37,288 |
) |
|
$ |
3,982 |
|
|
$ |
(35,673 |
) |
|
$ |
72,220 |
|
| Adjustments to reconcile net
(loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation, depletion, and amortization |
|
|
10,773 |
|
|
|
9,426 |
|
|
|
39,078 |
|
|
|
34,711 |
|
|
Amortization of intangible assets |
|
|
81 |
|
|
|
81 |
|
|
|
322 |
|
|
|
322 |
|
|
Accretion of asset retirement obligation |
|
|
535 |
|
|
|
490 |
|
|
|
2,140 |
|
|
|
1,961 |
|
|
Amortization of deferred financing costs |
|
|
75 |
|
|
|
78 |
|
|
|
301 |
|
|
|
265 |
|
|
Stock-based compensation |
|
|
1,463 |
|
|
|
2,187 |
|
|
|
6,534 |
|
|
|
6,152 |
|
|
Reserve for obsolescence |
|
|
369 |
|
|
|
— |
|
|
|
509 |
|
|
|
1,750 |
|
|
Allowance for doubtful accounts |
|
|
— |
|
|
|
— |
|
|
|
110 |
|
|
|
— |
|
|
Impairment of long-lived assets |
|
|
42,767 |
|
|
|
— |
|
|
|
43,288 |
|
|
|
— |
|
|
Loss (gain) on disposal of assets |
|
|
555 |
|
|
|
6,294 |
|
|
|
807 |
|
|
|
7,470 |
|
|
Equity in earnings of unconsolidated entities |
|
|
194 |
|
|
|
77 |
|
|
|
486 |
|
|
|
(689 |
) |
|
Distribution of earnings from unconsolidated entities |
|
|
— |
|
|
|
— |
|
|
|
452 |
|
|
|
— |
|
|
Lower of cost or net realizable value inventory adjustments |
|
|
3,079 |
|
|
|
— |
|
|
|
6,492 |
|
|
|
— |
|
| Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
Trade accounts receivable, net |
|
|
2,014 |
|
|
|
11,493 |
|
|
|
4,550 |
|
|
|
8,673 |
|
|
Other receivables, net |
|
|
958 |
|
|
|
1,251 |
|
|
|
(701 |
) |
|
|
140 |
|
|
Inventory, net |
|
|
(14,240 |
) |
|
|
(17,329 |
) |
|
|
(11,861 |
) |
|
|
(33,283 |
) |
|
Other current assets |
|
|
(2,959 |
) |
|
|
1,695 |
|
|
|
(3,857 |
) |
|
|
191 |
|
|
Deferred tax assets |
|
|
(10,227 |
) |
|
|
1,775 |
|
|
|
(8,471 |
) |
|
|
23,323 |
|
|
Accounts payable, accrued liabilities, and accrued employee
compensation and benefits |
|
|
6,500 |
|
|
|
(4,595 |
) |
|
|
1,284 |
|
|
|
(3,596 |
) |
|
Income tax payable |
|
|
32 |
|
|
|
(33 |
) |
|
|
32 |
|
|
|
(33 |
) |
|
Operating lease liabilities |
|
|
(517 |
) |
|
|
(406 |
) |
|
|
(1,735 |
) |
|
|
(2,025 |
) |
|
Other liabilities |
|
|
440 |
|
|
|
3,243 |
|
|
|
(858 |
) |
|
|
(28,731 |
) |
|
Net cash provided by operating activities |
|
|
4,604 |
|
|
|
19,709 |
|
|
|
43,229 |
|
|
|
88,821 |
|
| |
|
|
|
|
|
|
|
|
| Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
|
Additions to property, plant, equipment, mineral properties and
other assets |
|
|
(6,576 |
) |
|
|
(31,596 |
) |
|
|
(65,060 |
) |
|
|
(68,696 |
) |
|
Proceeds from sale of property, plant, equipment, and mineral
properties |
|
|
— |
|
|
|
12 |
|
|
|
125 |
|
|
|
58 |
|
|
Purchase of investments |
|
|
— |
|
|
|
(183 |
) |
|
|
(1,415 |
) |
|
|
(13,047 |
) |
|
Proceeds from redemptions/maturities of investments |
|
|
1,500 |
|
|
|
1,002 |
|
|
|
6,000 |
|
|
|
2,506 |
|
|
Other investing, net |
|
|
128 |
|
|
|
— |
|
|
|
796 |
|
|
|
— |
|
|
Net cash used in investing activities |
|
|
(4,948 |
) |
|
|
(30,765 |
) |
|
|
(59,554 |
) |
|
|
(79,179 |
) |
| |
|
|
|
|
|
|
|
|
| Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
|
Payments of financing lease |
|
|
(198 |
) |
|
|
— |
|
|
|
(597 |
) |
|
|
— |
|
|
Proceeds from borrowings on credit facility |
|
|
2,000 |
|
|
|
— |
|
|
|
9,000 |
|
|
|
— |
|
|
Repayments of borrowings on credit facility |
|
|
— |
|
|
|
— |
|
|
|
(5,000 |
) |
|
|
— |
|
|
Capitalized debt costs |
|
|
— |
|
|
|
(74 |
) |
|
|
— |
|
|
|
(1,007 |
) |
|
Employee tax withholding paid for restricted shares upon
vesting |
|
|
(174 |
) |
|
|
(433 |
) |
|
|
(1,511 |
) |
|
|
(4,795 |
) |
|
Repurchases of common stock |
|
|
— |
|
|
|
(19,131 |
) |
|
|
— |
|
|
|
(22,012 |
) |
|
Proceeds from exercise of stock options |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
110 |
|
|
Net cash provided by (used in) financing activities |
|
|
1,628 |
|
|
|
(19,638 |
) |
|
|
1,892 |
|
|
|
(27,704 |
) |
| |
|
|
|
|
|
|
|
|
| Net Change in Cash,
Cash Equivalents, and Restricted Cash |
|
|
1,284 |
|
|
|
(30,694 |
) |
|
|
(14,433 |
) |
|
|
(18,062 |
) |
| Cash, Cash
Equivalents, and Restricted Cash, beginning of period |
|
|
3,367 |
|
|
|
49,778 |
|
|
|
19,084 |
|
|
|
37,146 |
|
| Cash, Cash
Equivalents, and Restricted Cash, end of period |
|
$ |
4,651 |
|
|
$ |
19,084 |
|
|
$ |
4,651 |
|
|
$ |
19,084 |
|
INTREPID POTASH,
INC.DISAGGREGATION OF REVENUE AND SEGMENT DATA
(UNAUDITED)FOR THE THREE AND TWELVE MONTHS ENDED
DECEMBER 31, 2023 AND 2022(In
thousands)
| |
|
Three Months Ended December 31, 2023 |
|
Product |
|
Potash Segment |
|
Trio®
Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
|
Potash |
|
$ |
20,965 |
|
$ |
— |
|
$ |
— |
|
$ |
(69 |
) |
|
$ |
20,896 |
| Trio® |
|
|
— |
|
|
19,457 |
|
|
— |
|
|
— |
|
|
|
19,457 |
| Water |
|
|
69 |
|
|
1,426 |
|
|
4,249 |
|
|
— |
|
|
|
5,744 |
| Salt |
|
|
2,976 |
|
|
247 |
|
|
— |
|
|
— |
|
|
|
3,223 |
| Magnesium Chloride |
|
|
3,322 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,322 |
| Brines |
|
|
1,225 |
|
|
— |
|
|
1,203 |
|
|
— |
|
|
|
2,428 |
| Other |
|
|
— |
|
|
— |
|
|
1,593 |
|
|
|
|
1,593 |
| Total
Revenue |
|
$ |
28,557 |
|
$ |
21,130 |
|
$ |
7,045 |
|
$ |
(69 |
) |
|
$ |
56,663 |
| |
|
Year Ended December 31, 2023 |
|
Product |
|
Potash Segment |
|
Trio®
Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
|
Potash |
|
$ |
131,206 |
|
$ |
— |
|
$ |
— |
|
$ |
(329 |
) |
|
$ |
130,877 |
| Trio® |
|
|
— |
|
|
96,344 |
|
|
— |
|
|
— |
|
|
|
96,344 |
| Water |
|
|
297 |
|
|
5,316 |
|
|
9,569 |
|
|
— |
|
|
|
15,182 |
| Salt |
|
|
11,973 |
|
|
522 |
|
|
— |
|
|
— |
|
|
|
12,495 |
| Magnesium Chloride |
|
|
8,161 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
8,161 |
| Brines |
|
|
4,283 |
|
|
— |
|
|
4,056 |
|
|
— |
|
|
|
8,339 |
| Other |
|
|
— |
|
|
— |
|
|
7,685 |
|
|
— |
|
|
|
7,685 |
| Total
Revenue |
|
$ |
155,920 |
|
$ |
102,182 |
|
$ |
21,310 |
|
$ |
(329 |
) |
|
$ |
279,083 |
| |
|
Three Months Ended December 31, 2022 |
|
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
|
Potash |
|
$ |
36,887 |
|
$ |
— |
|
$ |
— |
|
$ |
(76 |
) |
|
$ |
36,811 |
| Trio® |
|
|
— |
|
|
16,501 |
|
|
— |
|
|
— |
|
|
|
16,501 |
| Water |
|
|
73 |
|
|
580 |
|
|
4,250 |
|
|
— |
|
|
|
4,903 |
| Salt |
|
|
3,133 |
|
|
184 |
|
|
— |
|
|
— |
|
|
|
3,317 |
| Magnesium Chloride |
|
|
2,450 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,450 |
| Brines |
|
|
1,213 |
|
|
— |
|
|
491 |
|
|
— |
|
|
|
1,704 |
| Other |
|
|
— |
|
|
— |
|
|
991 |
|
|
|
|
991 |
| Total
Revenue |
|
$ |
43,756 |
|
$ |
17,265 |
|
$ |
5,732 |
|
$ |
(76 |
) |
|
$ |
66,677 |
| |
|
Year Ended December 31, 2022 |
|
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
|
Potash |
|
$ |
168,571 |
|
$ |
— |
|
$ |
— |
|
$ |
(304 |
) |
|
$ |
168,267 |
| Trio® |
|
|
— |
|
|
113,962 |
|
|
— |
|
|
— |
|
|
|
113,962 |
| Water |
|
|
1,637 |
|
|
3,302 |
|
|
17,510 |
|
|
— |
|
|
|
22,449 |
| Salt |
|
|
11,270 |
|
|
562 |
|
|
— |
|
|
— |
|
|
|
11,832 |
| Magnesium Chloride |
|
|
6,472 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
6,472 |
| Brines |
|
|
3,428 |
|
|
— |
|
|
2,670 |
|
|
— |
|
|
|
6,098 |
| Other |
|
|
— |
|
|
— |
|
|
8,488 |
|
|
— |
|
|
|
8,488 |
| Total
Revenue |
|
$ |
191,378 |
|
$ |
117,826 |
|
$ |
28,668 |
|
$ |
(304 |
) |
|
$ |
337,568 |
| Three Months Ended
December 31, 2023 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
| Sales(1) |
|
$ |
28,557 |
|
$ |
21,130 |
|
|
$ |
7,045 |
|
$ |
(69 |
) |
|
$ |
56,663 |
| Less: Freight costs |
|
|
2,516 |
|
|
5,173 |
|
|
|
— |
|
|
(69 |
) |
|
|
7,620 |
|
Warehousing and handling costs |
|
|
1,327 |
|
|
1,240 |
|
|
|
— |
|
|
— |
|
|
|
2,567 |
|
Cost of goods sold |
|
|
18,755 |
|
|
15,642 |
|
|
|
4,379 |
|
|
— |
|
|
|
38,776 |
|
Lower of cost or net realizable value inventory adjustments |
|
|
1,626 |
|
|
1,453 |
|
|
|
— |
|
|
— |
|
|
|
3,079 |
| Gross Margin (Deficit) |
|
$ |
4,333 |
|
$ |
(2,378 |
) |
|
$ |
2,666 |
|
$ |
— |
|
|
$ |
4,621 |
| Depreciation, depletion, and
amortization incurred(2) |
|
$ |
7,625 |
|
$ |
1,923 |
|
|
$ |
1,077 |
|
$ |
229 |
|
|
$ |
10,854 |
| |
|
|
|
|
|
|
|
|
|
|
| Year Ended December
31, 2023 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
| Sales(1) |
|
$ |
155,920 |
|
$ |
102,182 |
|
|
$ |
21,310 |
|
$ |
(329 |
) |
|
$ |
279,083 |
| Less: Freight costs |
|
|
14,753 |
|
|
23,211 |
|
|
|
— |
|
|
(329 |
) |
|
|
37,635 |
|
Warehousing and handling costs |
|
|
5,957 |
|
|
4,875 |
|
|
|
— |
|
|
— |
|
|
|
10,832 |
|
Cost of goods sold |
|
|
97,452 |
|
|
74,308 |
|
|
|
15,518 |
|
|
— |
|
|
|
187,278 |
|
Lower of cost or net realizable value inventory adjustments |
|
|
2,709 |
|
|
3,783 |
|
|
|
— |
|
|
— |
|
|
|
6,492 |
| Gross Margin (Deficit) |
|
$ |
35,049 |
|
$ |
(3,995 |
) |
|
$ |
5,792 |
|
$ |
— |
|
|
$ |
36,846 |
| Depreciation, depletion, and
amortization incurred(2) |
|
$ |
28,378 |
|
$ |
6,288 |
|
|
$ |
3,849 |
|
$ |
885 |
|
|
$ |
39,400 |
| |
|
|
|
|
|
|
|
|
|
|
| Three Months Ended
December 31, 2022 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
| Sales(1) |
|
$ |
43,756 |
|
$ |
17,265 |
|
|
$ |
5,732 |
|
$ |
(76 |
) |
|
$ |
66,677 |
| Less: Freight costs |
|
|
3,350 |
|
|
3,606 |
|
|
|
— |
|
|
(76 |
) |
|
|
6,880 |
|
Warehousing and handling costs |
|
|
1,358 |
|
|
1,168 |
|
|
|
— |
|
|
— |
|
|
|
2,526 |
|
Cost of goods sold |
|
|
18,141 |
|
|
9,062 |
|
|
|
4,417 |
|
|
— |
|
|
|
31,620 |
| Gross Margin |
|
$ |
20,907 |
|
$ |
3,429 |
|
|
$ |
1,315 |
|
$ |
— |
|
|
$ |
25,651 |
| Depreciation, depletion, and
amortization incurred(2) |
|
$ |
7,222 |
|
$ |
1,248 |
|
|
$ |
840 |
|
$ |
197 |
|
|
$ |
9,507 |
| |
|
|
|
|
|
|
|
|
|
|
| Year Ended December
31, 2022 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
| Sales(1) |
|
$ |
191,378 |
|
$ |
117,826 |
|
|
$ |
28,668 |
|
$ |
(304 |
) |
|
$ |
337,568 |
| Less: Freight costs |
|
|
14,780 |
|
|
19,661 |
|
|
|
— |
|
|
(304 |
) |
|
|
34,137 |
|
Warehousing and handling costs |
|
|
5,305 |
|
|
4,442 |
|
|
|
— |
|
|
— |
|
|
|
9,747 |
|
Cost of goods sold |
|
|
76,524 |
|
|
54,600 |
|
|
|
21,152 |
|
|
— |
|
|
|
152,276 |
| Gross Margin |
|
$ |
94,769 |
|
$ |
39,123 |
|
|
$ |
7,516 |
|
$ |
— |
|
|
$ |
141,408 |
| Depreciation, depletion and,
amortization incurred(2) |
|
$ |
26,572 |
|
$ |
4,370 |
|
|
$ |
3,298 |
|
$ |
793 |
|
|
$ |
35,033 |
(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, 2023 AND 2022(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 (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 ShareAdjusted net (loss) income and
adjusted net (loss) income per diluted share are calculated as net
(loss) income or net (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. 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 (Loss) Income to Adjusted Net (Loss)
Income:
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net (Loss) Income |
$ |
(37,288 |
) |
|
$ |
3,982 |
|
|
$ |
(35,673 |
) |
|
$ |
72,220 |
|
| Adjustments |
|
|
|
|
|
|
|
|
Impairment of long-lived assets |
|
42,767 |
|
|
|
— |
|
|
|
43,288 |
|
|
|
— |
|
|
Loss on sale of assets |
|
555 |
|
|
|
6,294 |
|
|
|
807 |
|
|
|
7,470 |
|
|
Write-off of deferred offering fees(1) |
|
— |
|
|
|
700 |
|
|
|
— |
|
|
|
700 |
|
|
Calculated income tax effect(2) |
|
(11,264 |
) |
|
|
(1,818 |
) |
|
|
(11,465 |
) |
|
|
(2,124 |
) |
| Total adjustments |
|
32,058 |
|
|
|
5,176 |
|
|
|
32,630 |
|
|
|
6,046 |
|
| Adjusted Net (Loss)
Income |
$ |
(5,230 |
) |
|
$ |
9,158 |
|
|
$ |
(3,043 |
) |
|
$ |
78,266 |
|
Reconciliation of Net (Loss) Income per Share to Adjusted Net
(Loss) Income per Share:
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net (Loss) Income Per Diluted
Share |
$ |
(2.91 |
) |
|
$ |
0.30 |
|
|
$ |
(2.80 |
) |
|
$ |
5.37 |
|
| Adjustments |
|
|
|
|
|
|
|
|
Impairment of long-lived assets |
|
3.34 |
|
|
|
— |
|
|
|
3.39 |
|
|
|
— |
|
|
Loss on sale of assets |
|
0.04 |
|
|
|
0.48 |
|
|
|
0.06 |
|
|
|
0.56 |
|
|
Write-off of deferred offering fees(1) |
|
— |
|
|
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
|
Calculated income tax effect(2) |
|
(0.88 |
) |
|
|
(0.14 |
) |
|
|
(0.90 |
) |
|
|
(0.16 |
) |
| Total adjustments |
|
2.50 |
|
|
|
0.39 |
|
|
|
2.55 |
|
|
|
0.45 |
|
| Adjusted Net (Loss) Income Per
Diluted Share |
$ |
(0.41 |
) |
|
$ |
0.69 |
|
|
$ |
(0.25 |
) |
|
$ |
5.82 |
|
(1) - Costs incurred for a potential offering of shares of
Intrepid Acquisition Corporation I, a special purpose acquisition
company that is a subsidiary of Intrepid, that had been deferred
were expensed in the fourth quarter of 2022, and are reflected in
selling and administrative expense.
(2) - Assumes an annual effective tax rate of 26% for 2023 and
2022.
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, |
| (in thousands, except per ton
amounts) |
|
|
2023 |
|
|
2022 |
|
Total Segment Sales |
|
$ |
28,557 |
|
$ |
43,756 |
| Less: Segment byproduct
sales |
|
|
7,592 |
|
|
6,869 |
| Potash freight costs |
|
|
1,590 |
|
|
2,219 |
|
Subtotal |
|
$ |
19,375 |
|
$ |
34,668 |
| |
|
|
|
|
| Divided by: |
|
|
|
|
| Potash tons sold |
|
|
45 |
|
|
50 |
|
Average net realized sales price per ton |
|
$ |
431 |
|
$ |
693 |
| |
|
Potash Segment |
| |
|
Year Ended December 31, |
| (in thousands, except per ton
amounts) |
|
|
2023 |
|
|
2022 |
|
Total Segment Sales |
|
$ |
155,920 |
|
$ |
191,378 |
| Less: Segment byproduct
sales |
|
|
24,714 |
|
|
22,807 |
| Potash freight costs |
|
|
10,911 |
|
|
10,336 |
|
Subtotal |
|
$ |
120,295 |
|
$ |
158,235 |
| |
|
|
|
|
| Divided by: |
|
|
|
|
| Potash tons sold |
|
|
258 |
|
|
222 |
|
Average net realized sales price per ton |
|
$ |
466 |
|
$ |
713 |
| |
|
Trio®
Segment |
| |
|
Three Months Ended December 31, |
| (in thousands, except per ton
amounts) |
|
|
2023 |
|
|
2022 |
|
Total Segment Sales |
|
$ |
21,130 |
|
$ |
17,265 |
| Less: Segment byproduct
sales |
|
|
1,673 |
|
|
764 |
| Trio® freight costs |
|
|
5,173 |
|
|
3,606 |
|
Subtotal |
|
$ |
14,284 |
|
$ |
12,895 |
| |
|
|
|
|
| Divided by: |
|
|
|
|
| Trio® tons sold |
|
|
49 |
|
|
28 |
| Average net realized sales price
per ton |
|
$ |
292 |
|
$ |
461 |
| |
|
Trio®
Segment |
| |
|
Year Ended December 31, |
| (in thousands, except per ton
amounts) |
|
|
2023 |
|
|
2022 |
|
Total Segment Sales |
|
$ |
102,182 |
|
$ |
117,826 |
| Less: Segment byproduct
sales |
|
|
5,838 |
|
|
3,864 |
| Trio® freight costs |
|
|
23,211 |
|
|
19,661 |
|
Subtotal |
|
$ |
73,133 |
|
$ |
94,301 |
| |
|
|
|
|
| Divided by: |
|
|
|
|
| Trio® tons sold |
|
|
228 |
|
|
197 |
| Average net realized sales
price per ton |
|
$ |
321 |
|
$ |
479 |
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation, and
amortization (or adjusted EBITDA) is calculated as net 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 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 December 31, |
|
Year Ended December 31, |
| |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
| |
|
|
|
|
|
|
|
| Net (Loss) Income |
$ |
(37,288 |
) |
|
$ |
3,982 |
|
$ |
(35,673 |
) |
|
$ |
72,220 |
| Adjustments |
|
|
|
|
|
|
|
| Expense of deferred offering
costs |
|
— |
|
|
|
700 |
|
|
— |
|
|
|
700 |
| Impairment of long-lived
assets |
|
42,767 |
|
|
|
— |
|
|
43,288 |
|
|
|
— |
| Loss on sale of assets |
|
555 |
|
|
|
6,294 |
|
|
807 |
|
|
|
7,470 |
| Interest expense |
|
— |
|
|
|
16 |
|
|
— |
|
|
|
101 |
| Income tax (benefit)
expense |
|
(10,282 |
) |
|
|
2,158 |
|
|
(8,389 |
) |
|
|
24,289 |
| Depreciation, depletion, and
amortization |
|
10,773 |
|
|
|
9,426 |
|
|
39,078 |
|
|
|
34,711 |
| Amortization of intangible
assets |
|
81 |
|
|
|
81 |
|
|
322 |
|
|
|
322 |
| Accretion of asset retirement
obligation |
|
535 |
|
|
|
490 |
|
|
2,140 |
|
|
|
1,961 |
| Total adjustments |
|
44,429 |
|
|
|
19,165 |
|
|
77,246 |
|
|
|
69,554 |
| Adjusted Earnings Before
Interest, Taxes, Depreciation, |
|
|
|
|
|
|
|
| and Amortization |
$ |
7,141 |
|
|
$ |
23,147 |
|
$ |
41,573 |
|
|
$ |
141,774 |
Intrepid Potash (NYSE:IPI)
Historical Stock Chart
From Dec 2024 to Jan 2025
Intrepid Potash (NYSE:IPI)
Historical Stock Chart
From Jan 2024 to Jan 2025
