DENVER, May 7, 2019 -
Intrepid Potash, Inc. (Intrepid) (NYSE:IPI) today reported its
results for the first quarter of 2019.
Key Takeaways
-
Net income of $6.2 million, or $0.05 per share,
a $4.4 million increase compared to prior year first quarter net
income of $1.8 million, or $0.01 per share.
-
Total sales of $57.6 million, including $34.3
million in potash segment sales and $17.8 million in
Trio® segment
sales, as higher average net realized sales price per
ton(1) for potash
and Trio® offset a
delayed start to the spring agricultural season.
-
Higher average net realized sales prices per ton
and increased byproduct sales drove improvements in potash and
Trio® segment gross
margins of $4.4 million and $2.8 million, respectively, compared to
the prior year first quarter.
-
Completed the purchase of 100% of the Dinwiddie
Jal Ranch assets on May 1, 2019.
"Higher realized prices for potash and
Trio® and a great
quarter from our diverse revenue streams of byproducts, water, and
mixing services contributed to another year-over-year improvement
in our quarterly results," said Bob Jornayvaz, Intrepid's Executive
Chairman, President, and CEO. "Our focus on revenue diversification
is paying off with a significant increase in salt sales during the
quarter and additional traction for our high-speed mixing service
as we completed multiple jobs and fielded inquiries about expanding
our service into the Permian Basin. Water infrastructure projects
around our Carlsbad facilities are nearing completion and drilling
activity in southeast New Mexico continues at a staggering pace.
This activity supports our expectation for strong water sales in
the coming months and gives us confidence in the growth and
long-term potential of our water business. We are seeing solid
potash and Trio® sales as the
spring agricultural season wraps up, and we expect to deliver a
strong second quarter with a significant increase in cash flow from
operations as compared to the first quarter."
Jornayvaz continued, "Completing the purchase of
the Dinwiddie Jal Ranch is a significant step forward for our water
midstream infrastructure system and will provide additional water
supply for our partners in the area. We remain in a favorable
liquidity position after the acquisition and we are excited to tap
into the significant growth potential of the Dinwiddie
property."
Consolidated Results
Intrepid generated first quarter net income of
$6.2 million, or $0.05 per share, an increase of $4.4 million over
the prior year first quarter. This year-over-year improvement was
driven by increased gross margins, resulting from improvement in
the average net realized sales prices per ton of potash and
Trio® and increased
byproduct sales.
Segment Highlights
Potash
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
|
|
(in thousands, except per ton
data) |
Sales |
|
$ |
34,330 |
|
|
$ |
30,606 |
|
Gross
margin |
|
$ |
9,364 |
|
|
$ |
4,976 |
|
|
|
|
|
|
Potash
production volume (in tons) |
|
110 |
|
|
125 |
|
Potash
sales volume (in tons) |
|
88 |
|
|
97 |
|
|
|
|
|
|
Average potash net realized sales price per ton(1) |
|
$ |
288 |
|
|
$ |
243 |
|
Gross margin increased $4.4 million, or 88%,
compared to the first quarter of 2018, as increased market prices
for potash drove a 19% increase in average net realized sales price
per ton and strong demand for byproduct salt increased sales by
$1.3 million. These increases were partially offset by a 9%
decrease in sales volumes as wet weather delayed some agricultural
shipments into the second quarter.
Potash production decreased 12% compared to the
first quarter of 2018 due to lower production from the HB and Moab
facilities. At the Moab facility, increased demand for salt
resulted in a shift away from potash production days to meet
increased salt demand. Both facilities expect to run longer into
the second quarter than the previous year due to higher pond
inventories entering the quarter.
Trio®
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
|
|
(in thousands, except per ton
data) |
Sales |
|
$ |
17,809 |
|
|
$ |
21,820 |
|
Gross
margin (deficit) |
|
$ |
731 |
|
|
$ |
(2,078 |
) |
|
|
|
|
|
Trio®
production volume (in tons) |
|
63 |
|
|
47 |
|
Trio® sales
volume (in tons) |
|
56 |
|
|
77 |
|
|
|
|
|
|
Average Trio® net realized
sales price per ton(1) |
|
$ |
206 |
|
|
$ |
194 |
|
Gross margin improved to $0.7 million on increased
average net realized sales prices, a $0.7 million increase in
byproduct sales, and a $0.7 million decrease in lower of cost or
net realizable value adjustments. These items were partially offset
by decreased domestic sales due to inclement weather, which delayed
shipments into the second quarter.
Total sales volume decreased 27% compared to last
year as domestic shipments were delayed due to inclement weather
and due to the timing of international shipments.
Production volumes increased 34% compared to the
first quarter of 2018 as Intrepid converted more work-in-process
inventory into premium Trio®.
Oilfield Solutions
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
|
|
(in thousands) |
Sales |
|
$ |
6,623 |
|
|
$ |
4,894 |
|
Gross
margin |
|
$ |
3,073 |
|
|
$ |
4,302 |
|
Sales increased to $6.6 million due to an increase
in high-speed KCl mixing revenue, partially offset by a decrease in
water sales of $0.7 million. The decrease in segment water sales
was mainly due to a $0.6 million increase in water sales that were
accounted for as byproduct water sales in other segments. When
Intrepid sells water that was used in the potash or Trio®
production process, it is accounted for as sales in the segment
that used the water.
Acquisition
On May 1, 2019, Intrepid completed the acquisition
of the Dinwiddie Jal Ranch in southeast New Mexico for $53 million.
Intrepid has agreed to pay up to an additional $12 million pending
the resolution of certain issues identified during the diligence
process. Additional details on the acquisition can be found in a
press release issued by Intrepid on May 2, 2019.
Liquidity
Cash provided by operations was $8.1 million
during the first quarter of 2019 and cash spent on investing
activities was $7.2 million. As of March 31, 2019, Intrepid had
$34.0 million in cash and cash equivalents and $49.0 million
available to borrow under its credit facility. As of May 3, 2019,
after the Dinwiddie Jal Ranch acquisition, Intrepid had $15.6
million in cash and cash equivalents, $30.0 million drawn on its
credit facility, and $19.0 million available to borrow under the
facility.
Notes
1 Average net
realized sales price per ton is a non-GAAP financial measure. See
the non-GAAP reconciliations set forth later in this press release
for additional information.
Unless expressly stated otherwise or the context
otherwise requires, references to tons in this press release refer
to short tons. One short ton equals 2,000 pounds. One metric tonne,
which many international competitors use, equals 1,000 kilograms or
2,204.62 pounds.
Conference Call
Information
A teleconference to discuss the quarter is
scheduled for May 7, 2019, at 10:00 a.m. ET. The dial-in number is
1-800-319-4610 for U.S. and Canada, and is +1-631-891-4304 for
other countries. The call will also be streamed on the Intrepid
website, intrepidpotash.com.
An audio recording of the conference call will be
available through June 7, 2019, at intrepidpotash.com and by
dialing 1-800-319-6413 for U.S. and Canada, or +1-631-883-6842 for
other countries. The replay will require the input of the
conference identification number 3175.
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 or RSS feeds
for new postings.
Forward-looking
Statements
This document contains forward-looking statements
- that is, statements about future, not past, events. The
forward-looking statements in this document relate to, among other
things, statements about Intrepid's future financial performance,
cash flow from operations expectations, water sales, production
costs, acquisition expectations and operating plans, 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;
-
Intrepid's ability to successfully identify and
implement any opportunities to grow its business whether through
expanded sales of Trio®, water,
byproducts, and other non-potassium related products or other
revenue diversification activities;
-
challenges to Intrepid's water rights;
-
Intrepid's ability to integrate the Dinwiddie
Jal Ranch assets into its existing business and achieve the
expected benefits of the acquisition;
-
Intrepid's ability to comply with the terms of
its senior notes and its revolving credit facility, including the
underlying covenants, to avoid a default under those
agreements;
-
Intrepid's ability to sell Trio®
internationally and manage risks associated with international
sales, including pricing pressure and freight costs;
-
the costs of, and Intrepid's ability to
successfully execute, any strategic projects;
-
declines or changes in agricultural production
or fertilizer application rates;
-
declines in the use of potassium-related
products or water by oil and gas companies in their drilling
operations;
-
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; 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,
2018.
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, Investor
Relations
Phone: 303-996-3048
Email: matt.preston@intrepidpotash.com
INTREPID POTASH,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND
2018
(In thousands, except per share
amounts)
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
Sales |
|
$ |
57,554 |
|
|
$ |
57,320 |
|
Less: |
|
|
|
|
Freight costs |
|
10,456 |
|
|
10,483 |
|
Warehousing and handling costs |
|
2,236 |
|
|
2,273 |
|
Cost
of goods sold |
|
31,694 |
|
|
36,659 |
|
Lower
of cost or net realizable value inventory adjustments |
|
- |
|
|
705 |
|
Gross Margin |
|
13,168 |
|
|
7,200 |
|
|
|
|
|
|
Selling and administrative |
|
5,807 |
|
|
3,970 |
|
Accretion of asset retirement obligation |
|
417 |
|
|
417 |
|
Care
and maintenance expense |
|
149 |
|
|
128 |
|
Other
operating expense |
|
371 |
|
|
168 |
|
Operating Income |
|
6,424 |
|
|
2,517 |
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
Interest expense, net |
|
(603 |
) |
|
(878 |
) |
Interest income |
|
- |
|
|
98 |
|
Other
income |
|
334 |
|
|
20 |
|
Income Before Income Taxes |
|
6,155 |
|
|
1,757 |
|
|
|
|
|
|
Income Tax Expense |
|
- |
|
|
- |
|
Net Income |
|
$ |
6,155 |
|
|
$ |
1,757 |
|
|
|
|
|
|
Weighted Average Shares Outstanding: |
|
|
|
|
Basic |
|
128,730 |
|
|
127,661 |
|
Diluted |
|
130,880 |
|
|
130,765 |
|
Earnings Per Share: |
|
|
|
|
Basic |
|
$ |
0.05 |
|
|
$ |
0.01 |
|
Diluted |
|
$ |
0.05 |
|
|
$ |
0.01 |
|
INTREPID POTASH,
INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
AS OF MARCH 31, 2019 AND DECEMBER 31,
2018
(In thousands, except share and per share
amounts)
|
|
March
31, |
|
December
31, |
|
|
2019 |
|
2018 |
ASSETS |
|
|
|
|
Cash
and cash equivalents |
|
$ |
34,032 |
|
|
$ |
33,222 |
|
Accounts receivable: |
|
|
|
|
Trade,
net |
|
28,217 |
|
|
25,161 |
|
Other
receivables, net |
|
959 |
|
|
597 |
|
Inventory, net |
|
86,270 |
|
|
82,046 |
|
Prepaid expenses and other current assets |
|
7,480 |
|
|
4,332 |
|
Total
current assets |
|
156,958 |
|
|
145,358 |
|
|
|
|
|
|
Property, plant, equipment, and mineral properties, net |
|
347,670 |
|
|
346,209 |
|
Long-term parts inventory, net |
|
29,895 |
|
|
30,031 |
|
Other
assets, net |
|
3,594 |
|
|
3,633 |
|
Total Assets |
|
$ |
538,117 |
|
|
$ |
525,231 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
Accounts payable: |
|
|
|
|
Trade |
|
$ |
12,017 |
|
|
$ |
9,107 |
|
Related parties |
|
28 |
|
|
28 |
|
Income
taxes payable |
|
914 |
|
|
914 |
|
Accrued liabilities |
|
8,535 |
|
|
8,717 |
|
Accrued employee compensation and benefits |
|
4,204 |
|
|
4,124 |
|
Other
current liabilities |
|
10,725 |
|
|
11,891 |
|
Total
current liabilities |
|
36,423 |
|
|
34,781 |
|
|
|
|
|
|
Long-term debt, net |
|
49,670 |
|
|
49,642 |
|
Asset
retirement obligation |
|
23,492 |
|
|
23,125 |
|
Operating lease liabilities |
|
3,766 |
|
|
- |
|
Other
non-current liabilities |
|
420 |
|
|
420 |
|
Total Liabilities |
|
113,771 |
|
|
107,968 |
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
Common
stock, $0.001 par value; 400,000,000 shares authorized; |
|
|
|
|
128,781,031 and 128,716,595 shares outstanding |
|
|
|
|
at
March 31, 2019, and December 31, 2018, respectively |
|
129 |
|
|
129 |
|
Additional paid-in capital |
|
650,130 |
|
|
649,202 |
|
Retained deficit |
|
(225,913 |
) |
|
(232,068 |
) |
Total Stockholders' Equity |
|
424,346 |
|
|
417,263 |
|
Total Liabilities and Stockholders'
Equity |
|
$ |
538,117 |
|
|
$ |
525,231 |
|
INTREPID POTASH,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND
2018
(In thousands)
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
Cash Flows from Operating Activities: |
|
|
|
|
Net
income |
|
$ |
6,155 |
|
|
$ |
1,757 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation, depletion and amortization |
|
8,746 |
|
|
8,515 |
|
Accretion of asset retirement obligation |
|
417 |
|
|
417 |
|
Amortization of deferred financing costs |
|
68 |
|
|
183 |
|
Stock-based compensation |
|
1,031 |
|
|
947 |
|
Lower
of cost or net realizable value inventory adjustments |
|
- |
|
|
705 |
|
Loss
on disposal of assets |
|
19 |
|
|
(34 |
) |
Allowance for parts inventory obsolescence |
|
4 |
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
Trade
accounts receivable, net |
|
(3,057 |
) |
|
(11,828 |
) |
Other
receivables, net |
|
(362 |
) |
|
(207 |
) |
Refundable income taxes |
|
- |
|
|
2,844 |
|
Inventory, net |
|
(4,091 |
) |
|
6,009 |
|
Prepaid expenses and other current assets |
|
103 |
|
|
914 |
|
Accounts payable, accrued liabilities, and accrued
employee
compensation and benefits |
|
2,455 |
|
|
1 |
|
Operating lease liabilities |
|
(479 |
) |
|
- |
|
Other
liabilities |
|
(2,888 |
) |
|
3,681 |
|
Net
cash provided by operating activities |
|
8,121 |
|
|
13,904 |
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
Additions to property, plant, equipment, and mineral
properties |
|
(3,958 |
) |
|
(6,470 |
) |
Deposit on asset purchase |
|
(3,250 |
) |
|
- |
|
Proceeds from sale of property, plant, equipment, and mineral
properties |
|
- |
|
|
34 |
|
Net
cash used in investing activities |
|
(7,208 |
) |
|
(6,436 |
) |
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
Proceeds from short-term borrowings on credit facility |
|
- |
|
|
13,500 |
|
Repayments of short-term borrowings on credit facility |
|
- |
|
|
(15,900 |
) |
Employee tax withholding paid for restricted stock upon
vesting |
|
(112 |
) |
|
(62 |
) |
Proceeds from exercise of stock options |
|
9 |
|
|
11 |
|
Net
cash used in financing activities |
|
(103 |
) |
|
(2,451 |
) |
|
|
|
|
|
Net Change in Cash, Cash Equivalents and
Restricted Cash |
|
810 |
|
|
5,017 |
|
Cash, Cash Equivalents and Restricted Cash,
beginning of period |
|
33,704 |
|
|
1,549 |
|
Cash, Cash Equivalents and Restricted Cash, end of
period |
|
$ |
34,514 |
|
|
$ |
6,566 |
|
|
|
|
|
|
Supplemental disclosure of cash flow
information |
|
|
|
|
Net
cash paid (refunded) during the period for: |
|
|
|
|
Interest |
|
$ |
49 |
|
|
$ |
95 |
|
Income taxes |
|
$ |
- |
|
|
$ |
(2,843 |
) |
Accrued purchases for property, plant, equipment, and mineral
properties |
|
$ |
1,435 |
|
|
$ |
933 |
|
Right-of-use assets exchanged for new operating lease
liabilities |
|
$ |
5,916 |
|
|
$ |
- |
|
INTREPID POTASH,
INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND
2018
(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 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 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 Income to Adjusted
EBITDA:
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
|
|
(in thousands) |
Net
Income |
|
$ |
6,155 |
|
|
$ |
1,757 |
|
Interest expense |
|
603 |
|
|
878 |
|
Depreciation, depletion, and amortization |
|
8,746 |
|
|
8,515 |
|
Accretion of asset retirement obligation |
|
417 |
|
|
417 |
|
Total adjustments |
|
9,766 |
|
|
9,810 |
|
Adjusted EBITDA |
|
$ |
15,921 |
|
|
$ |
11,567 |
|
Average Potash and
Trio® Net Realized
Sales Price per Ton
Average net realized sales price per ton for
potash is calculated as potash segment sales less potash segment
byproduct sales and potash freight costs and then dividing that
difference by the number of tons of potash sold in the period.
Likewise, average net realized sales price per ton for
Trio® is calculated
as Trio® segment sales
less Trio® segment
byproduct sales and Trio® freight costs
and then dividing that difference by Trio® tons sold.
Intrepid considers average net realized sales price per ton to be
useful, and believe it to be useful for investors, because it shows
Intrepid's potash and Trio® average per
ton pricing without the effect of certain transportation and
delivery costs. When Intrepid arranges transportation and delivery
for a customer, it includes in revenue and in freight costs the
costs associated with transportation and delivery. However, some of
Intrepid's customers arrange for and pay their own transportation
and delivery costs, in which case these costs are not included in
Intrepid's revenue and freight costs. Intrepid uses average net
realized sales price per ton as a key performance indicator to
analyze potash and Trio® sales and
price trends.
Reconciliation of Sales to
Average Net Realized Sales Price per Ton:
|
|
Three Months
Ended March 31, 2019 |
(in
thousands, except per ton amounts) |
|
Potash |
|
Trio® |
Total
Segment Sales |
|
$ |
34,330 |
|
|
$ |
17,809 |
|
Less:
Segment byproduct sales |
|
5,785 |
|
|
1,259 |
|
Freight costs |
|
3,242 |
|
|
5,035 |
|
Subtotal |
|
$ |
25,303 |
|
|
$ |
11,515 |
|
|
|
|
|
|
Divided by: |
|
|
|
|
Tons
sold (in thousands) |
|
88 |
|
|
56 |
|
Average net realized sales price per ton |
|
$ |
288 |
|
|
$ |
206 |
|
|
|
Three Months
Ended March 31, 2018 |
(in
thousands, except per ton amounts) |
|
Potash |
|
Trio® |
Total
Segment Sales |
|
$ |
30,606 |
|
|
$ |
21,820 |
|
Less:
Segment byproduct sales |
|
3,542 |
|
|
583 |
|
Freight costs |
|
3,458 |
|
|
6,276 |
|
Subtotal |
|
$ |
23,606 |
|
|
$ |
14,961 |
|
|
|
|
|
|
Divided by: |
|
|
|
|
Tons
sold (in thousands) |
|
97 |
|
|
77 |
|
Average net realized sales price per ton |
|
$ |
243 |
|
|
$ |
194 |
|
INTREPID POTASH,
INC.
DISAGGREGATION OF REVENUE AND SEGMENT DATA
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND
2018
(In thousands)
|
|
For the Three Months Ended
March 31, 2019 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
28,545 |
|
|
$ |
- |
|
|
$ |
1,822 |
|
|
$ |
(1,208 |
) |
|
$ |
29,159 |
|
Trio® |
|
- |
|
|
16,550 |
|
|
- |
|
|
- |
|
|
16,550 |
|
Water |
|
340 |
|
|
942 |
|
|
4,104 |
|
|
- |
|
|
5,386 |
|
Salt |
|
3,001 |
|
|
317 |
|
|
- |
|
|
- |
|
|
3,318 |
|
Magnesium Chloride |
|
1,740 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,740 |
|
Brines |
|
704 |
|
|
- |
|
|
- |
|
|
- |
|
|
704 |
|
Other |
|
- |
|
|
- |
|
|
697 |
|
|
- |
|
|
697 |
|
Total
Revenue |
|
$ |
34,330 |
|
|
$ |
17,809 |
|
|
$ |
6,623 |
|
|
$ |
(1,208 |
) |
|
$ |
57,554 |
|
|
|
For the Three Months Ended
March 31, 2018 |
Product |
|
Potash Segment |
|
Trio® Segment |
|
Oilfield Solutions Segment |
|
Intersegment Eliminations |
|
Total |
Potash |
|
$ |
27,064 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
27,064 |
|
Trio® |
|
- |
|
|
21,237 |
|
|
- |
|
|
- |
|
|
21,237 |
|
Water |
|
170 |
|
|
505 |
|
|
4,849 |
|
|
- |
|
|
5,524 |
|
Salt |
|
1,733 |
|
|
78 |
|
|
- |
|
|
- |
|
|
1,811 |
|
Magnesium Chloride |
|
1,405 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,405 |
|
Brines |
|
234 |
|
|
- |
|
|
- |
|
|
- |
|
|
234 |
|
Other |
|
- |
|
|
- |
|
|
45 |
|
|
- |
|
|
45 |
|
Total
Revenue |
|
$ |
30,606 |
|
|
$ |
21,820 |
|
|
$ |
4,894 |
|
|
$ |
- |
|
|
$ |
57,320 |
|
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
Production volume (in thousands of tons): |
|
|
|
|
Potash |
|
110 |
|
|
125 |
|
Langbeinite |
|
63 |
|
|
47 |
|
Sales
volume (in thousands of tons): |
|
|
|
|
Potash |
|
88 |
|
|
97 |
|
Trio® |
|
56 |
|
|
77 |
|
|
|
|
|
|
Average net realized sales price per ton (1) |
|
|
|
|
Potash |
|
$ |
288 |
|
|
$ |
243 |
|
Trio® |
|
$ |
206 |
|
|
$ |
194 |
|
Three Months Ended
March 31, 2019 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales(2) |
|
$ |
34,330 |
|
|
$ |
17,809 |
|
|
$ |
6,623 |
|
|
$ |
(1,208 |
) |
|
$ |
57,554 |
|
Less:
Freight costs |
|
4,640 |
|
|
5,035 |
|
|
781 |
|
|
- |
|
|
10,456 |
|
Warehousing and handling costs |
|
1,267 |
|
|
969 |
|
|
- |
|
|
- |
|
|
2,236 |
|
Cost
of goods sold |
|
19,059 |
|
|
11,074 |
|
|
2,769 |
|
|
(1,208 |
) |
|
31,694 |
|
Gross
Margin |
|
$ |
9,364 |
|
|
$ |
731 |
|
|
$ |
3,073 |
|
|
$ |
- |
|
|
$ |
13,168 |
|
Depreciation, depletion, and amortization incurred(3) |
|
$ |
6,795 |
|
|
$ |
1,558 |
|
|
$ |
190 |
|
|
$ |
203 |
|
|
$ |
8,746 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018 |
|
Potash |
|
Trio® |
|
Oilfield Solutions |
|
Other |
|
Consolidated |
Sales(2) |
|
$ |
30,606 |
|
|
$ |
21,820 |
|
|
$ |
4,894 |
|
|
$ |
- |
|
|
$ |
57,320 |
|
Less:
Freight costs |
|
4,206 |
|
|
6,277 |
|
|
- |
|
|
- |
|
|
10,483 |
|
Warehousing and handling costs |
|
1,155 |
|
|
1,118 |
|
|
- |
|
|
- |
|
|
2,273 |
|
Cost
of goods sold |
|
20,269 |
|
|
15,798 |
|
|
592 |
|
|
- |
|
|
36,659 |
|
Lower
of cost or net realizable value inventory adjustments |
|
- |
|
|
705 |
|
|
- |
|
|
- |
|
|
705 |
|
Gross
Margin (Deficit) |
|
$ |
4,976 |
|
|
$ |
(2,078 |
) |
|
$ |
4,302 |
|
|
$ |
- |
|
|
$ |
7,200 |
|
Depreciation, depletion, and amortization incurred(3) |
|
$ |
6,778 |
|
|
$ |
1,633 |
|
|
$ |
64 |
|
|
$ |
40 |
|
|
$ |
8,515 |
|
(1) Average net realized sales price is a non-GAAP
financial measure. See the non-GAAP reconciliations set forth above
in this press release for additional information.
(2) Segment sales include the sales of byproducts generated during
the production of potash and Trio®.
(3) Depreciation, depletion, and amortization incurred for potash
and Trio® excludes
depreciation, depletion, and amortization amounts absorbed in or
relieved from inventory.
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Intrepid Potash Inc via Globenewswire
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