Intrepid Announces Second Quarter 2024 Results
DENVER–(BUSINESS WIRE)–Intrepid Potash, Inc. (“Intrepid”, the “Company”, “we”, “us”, or “our”) (NYSE:IPI) today reported its results for the second quarter of 2024.
Key Highlights for Second Quarter 2024
Financial & Operational
- Total sales of $62.1 million, which compares to $81.0 million in the second quarter of 2023.
- Net loss of $0.8 million (or $0.06 per diluted share), which compares to net income of $4.3 million (or $0.33 per diluted share) in the second quarter of 2023.
- Gross margin of $7.6 million, which compares to $15.4 million in the second quarter of 2023.
- Cash flow provided by operations of $27.7 million, which compares to $30.5 million in the second quarter of 2023.
- Adjusted EBITDA(1) of $9.2 million, which compares to $15.8 million in the second quarter of 2023.
- Potash and Trio® sales volumes of 55 thousand and 63 thousand tons, respectively, which compares to 79 thousand and 63 thousand tons, respectively, in the second quarter of 2023.
- Potash and Trio® average net realized sales prices(1) of $405 and $314 per ton, respectively, which compares to $479 and $333 per ton, respectively, in the second quarter of 2023.
Management & Board of Directors Update
- On July 10, 2024, we announced that the Board of Directors (“the Board”) of Intrepid elected Barth Whitham, formerly Lead Independent Director, as its Chair. On that date, the Board also announced that it initiated a search process to identify a successor for Intrepid’s CEO, Bob Jornayvaz, who is currently out on an extended medical leave of absence, as it is unlikely that Mr. Jornayvaz will return to his CEO role. During this process, Intrepid’s CFO, Matt Preston, will continue to serve as acting principal executive officer, working closely with the rest of the Company’s management team and the Board.
Capital Expenditures
- Capital expenditures were $11.3 million in the second quarter of 2024, bringing our total capital expenditures to $23.0 million for the first six months ended June 30, 2024. We continue to expect full-year 2024 capital expenditures of $40 million to $50 million.
Project & Operational Updates
-
HB Solar Solution Mine in Carlsbad, New Mexico
- Replacement Extraction Well (“IP30B”): We successfully completed the IP30B project in June 2024 and the new extraction well is now serving as our primary source of brine for the current evaporation season. We expect IP30B will be our primary extraction well for the Eddy Cavern for future evaporation seasons.
- Phase Two of HB Injection Pipeline Project (“Phase Two”): Phase Two is the installation of an in-line pigging system to clean the HB injection pipeline and remove scaling to help ensure more consistent flow rates. All pipeline is now installed and tanks have been set, and we expect to commission the project in the third quarter of 2024.
-
Brine Recovery Mine in Wendover, Utah
- Primary Pond 7 (“PP7”): Construction of PP7 is complete and the new pond is being filled with brine. This new primary pond is expected to increase the brine evaporative area at Wendover and help us meet our goals of maximizing brine availability, increasing brine grade, and improving production. We expect to see the production benefits of the new primary pond in the fall of 2025.
- Lithium Project: We continue to advance our lithium project in Wendover and are in the process of reviewing proposals from multiple partners. The lithium already present in our byproduct magnesium brine is estimated to support approximately two thousand tons of lithium carbonate production per year assuming the existence of a commercially feasible extraction technology.
-
Intrepid South
- Sand Project: We have all necessary permits in place to begin construction and operation on our sand project. While our sand project shows good potential, owing to softening conditions in the oilfield services market, we’re pausing development and will be dedicating our resources to other strategic priorities at this time.
-
East Underground Trio® Mine
- Operational & Cost Efficiencies: Owing to efficiencies from the two continuous miners placed into service in 2023 and the operation of our fine langbeinite recovery system, we’ve seen significant improvement in our production rates and cost structure compared to the prior year. For the first six months of 2024, our cost of goods sold totaled approximately $284 per ton, which compares to the same prior-year figure of $320 per ton. Improving our margins in the Trio® segment through operational efficiencies and cost savings initiatives remains a key focus for Intrepid.
Liquidity
- During the second quarter of 2024, cash flow provided by operations was $27.7 million, while cash used in investing activities was $9.8 million. As of July 31, 2024, Intrepid had approximately $51.1 million in cash and cash equivalents and had no outstanding borrowings on our $150 million revolving credit facility.
- Intrepid maintains an investment account of short-and-long-term fixed income securities that had a balance of approximately $2.5 million as of July 31, 2024.
Consolidated Results, Management Commentary, & Outlook
In the second quarter of 2024, Intrepid generated sales of $62.1 million, a 23% decrease from second quarter 2023 sales of $81.0 million. Consolidated gross margin totaled $7.6 million, while net loss totaled $0.8 million, or a net loss of $0.06 per diluted share, which compares to second quarter 2023 net income of $4.3 million, or $0.33 per diluted share. The Company delivered adjusted EBITDA(1) of $9.2 million, down from $15.8 million in the same prior year period, with the lower profitability primarily being driven by lower pricing for our key products. Our second quarter 2024 average net realized sales prices(1) for potash and Trio® averaged $405 and $314 per ton, respectively, which compares to $479 and $333 per ton, respectively, in the second quarter of 2023.
Matt Preston, Intrepid’s Chief Financial Officer and acting principal executive officer commented: “Our strategic focus continues to be improving our potash production, and I’m happy to share that we saw the first indications of this in our second quarter results. Improved brine grades at HB from the Eddy Cavern and good early-season evaporation rates, allowed us to extend our spring production season and we still expect our 2024 potash production to be approximately 15% higher than 2023.
As for our second quarter results, our operational and financial performance continues to be solid. In Trio®, our sales volumes and production are well ahead of last year’s pace through the first six months of the year as increased operating rates from our new continuous miners and our modified operating schedule have driven significant improvement in both our total and per ton production costs. Trio® segment gross margin of $2.2 million in the second quarter was an increase of approximately $3.3 million sequentially and $1 million year-over-year. As the broader potash market looks to be finding its midcycle pricing floor, we remain focused on improving our unit economics by means of higher potash production.
Lastly, we want to again extend our best wishes to Bob as he continues his recovery. We will provide updates on our search for a new CEO as that process unfolds in the coming months.”
Segment Highlights
Potash
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands, except per ton data) |
||||||||||
|
Sales |
|
$ |
30,034 |
|
$ |
47,264 |
|
$ |
67,610 |
|
$ |
99,761 |
|
Gross margin |
|
$ |
3,312 |
|
$ |
12,876 |
|
$ |
8,886 |
|
$ |
27,304 |
|
|
|
|
|
|
|
|
|
|
||||
|
Potash sales volumes (in tons) |
|
|
55 |
|
|
79 |
|
|
129 |
|
|
167 |
|
Potash production volumes (in tons) |
|
|
40 |
|
|
12 |
|
|
127 |
|
|
102 |
|
|
|
|
|
|
|
|
|
|
||||
|
Average potash net realized sales price per ton(1) |
|
$ |
405 |
|
$ |
479 |
|
$ |
399 |
|
$ |
485 |
Our total sales in the potash segment decreased $17.2 million in the second quarter of 2024, compared to the second quarter of 2023, as potash sales decreased $17.0 million, or 41%, and potash segment byproduct sales decreased $0.3 million. Our potash sales decreased in the second quarter of 2024, compared to the second quarter of 2023, as our average net realized sales price per ton decreased 15%, and we sold 30% fewer tons. We sold fewer tons of potash in the second quarter of 2024, compared to the second quarter of 2023, as we had fewer tons of potash to sell due to lower potash production from our HB and Wendover facilities.
Our potash segment cost of goods sold decreased by 25% in the second quarter of 2024, compared to the second quarter of 2023, as we sold 30% fewer tons of potash, although our production costs remained elevated due to decreased production volumes over the past year. A significant portion of our potash production costs are fixed and an increase in potash tons produced reduces our potash per ton cost.
During the second quarter of 2024, we recorded lower of cost or net realizable value inventory adjustments of $1.4 million as our weighted average carrying cost per ton for inventoried potash products at our HB and Wendover facilities was higher than our expected selling price per ton for those products.
Our potash segment gross margin decreased $9.6 million in the second quarter of 2024, compared to the second quarter of 2023, due to the factors discussed above.
Trio®
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands, except per ton data) |
||||||||||
|
Sales |
|
$ |
26,522 |
|
$ |
28,748 |
|
$ |
63,010 |
|
$ |
59,022 |
|
Gross margin |
|
$ |
2,182 |
|
$ |
1,222 |
|
$ |
1,043 |
|
$ |
2,674 |
|
|
|
|
|
|
|
|
|
|
||||
|
Trio® sales volume (in tons) |
|
|
63 |
|
|
63 |
|
|
154 |
|
|
128 |
|
Trio® production volume (in tons) |
|
|
68 |
|
|
58 |
|
|
122 |
|
|
107 |
|
|
|
|
|
|
|
|
|
|
||||
|
Average Trio® net realized sales price per ton(1) |
|
$ |
314 |
|
$ |
333 |
|
$ |
306 |
|
$ |
339 |
Trio® segment sales decreased 8% during the second quarter of 2024, compared to the second quarter of 2023. Trio® sales decreased $0.8 million, and our Trio® segment byproduct sales decreased $1.4 million. Trio® sales volumes were flat year-over year, and similar to potash prices discussed above, our Trio® average net realized sales price per ton has decreased since the peak prices realized during the second quarter of 2022, as potassium fertilizer supplies have improved.
Our Trio® cost of goods sold decreased 18% in the second quarter of 2024 despite sales volumes matching the prior year quarter, as improved production rates and decreased total production costs led to an improvement in our per unit costs. In the second quarter of 2024, we produced 68 thousand tons of Trio® which compares to 58 thousand tons in the same prior-year period. A significant portion of our production costs are fixed and an increase in tons produced decreases our per ton production costs.
Our Trio® segment generated gross margin of $2.2 million in the second quarter of 2024, compared to gross margin of $1.2 million in the second quarter of 2023, due to the factors discussed above.
Oilfield Solutions
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
||||||||||
|
Sales |
|
$ |
5,539 |
|
$ |
5,111 |
|
$ |
10,862 |
|
$ |
9,361 |
|
Gross margin |
|
$ |
2,130 |
|
$ |
1,284 |
|
$ |
4,129 |
|
$ |
1,756 |
Our oilfield solutions segment sales increased $0.4 million in the second quarter of 2024, compared to the second quarter of 2023, primarily due to a $0.2 million increase in brine water sales and a $0.3 million increase in other oilfield solution products and services. Our water sales increased compared to the prior year period due to increased sales of water on our South ranch. Our brine water sales and sales of other oilfield solutions segments products and services increased due to continued strong demand from oil and gas operators in the Permian Basin near Intrepid South.
Our cost of goods sold decreased $0.4 million, or 11%, in the second quarter of 2024, compared to the second quarter of 2023, due to using less contract labor. In the second quarter of 2023, we used contract labor to complete various projects at Intrepid South.
Gross margin for the second quarter of 2024 increased $0.8 million compared to the second quarter of 2023, due to the factors discussed above.
Notes
1 Adjusted net (loss) income, adjusted net (loss) income per diluted share, adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) and average net realized sales price per ton are non-GAAP financial measures. See the non-GAAP reconciliations set forth later in this press release for additional information.
Unless expressly stated otherwise or the context otherwise requires, references to tons in this press release refer to short tons. One short ton equals 2,000 pounds. One metric tonne, which many international competitors use, equals 1,000 kilograms or 2,204.62 pounds.
Conference Call Information
Intrepid will host a conference call on Tuesday, August 6, 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 replay access code 1179359. The recording will be available through August 13, 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 Statements
This document contains forward-looking statements – that is, statements about future, not past, events. The forward-looking statements in this document relate to, among other things, statements about Intrepid’s future financial performance, cash flow from operations expectations, water sales, production costs, acquisition expectations and operating plans, its market outlook, and statements regarding management matters. 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 management and the board of directors, and our reliance on key personnel, including our ability to identify, recruit, and retain key personnel;
- 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;
- global inflationary pressures and supply chain challenges;
- 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 Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023, and our other reports we file with the Securities and Exchange Commission.
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 obligation to update or revise publicly any forward-looking statements to conform the statements to actual results or to reflect new information or future events.
|
INTREPID POTASH, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (In thousands, except per share amounts) |
||||||||||||||||
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Sales |
|
$ |
62,055 |
|
|
$ |
81,035 |
|
|
$ |
141,342 |
|
|
$ |
167,955 |
|
|
Less: |
|
|
|
|
|
|
|
|
||||||||
|
Freight costs |
|
|
9,423 |
|
|
|
10,516 |
|
|
|
22,253 |
|
|
|
22,106 |
|
|
Warehousing and handling costs |
|
|
2,586 |
|
|
|
2,801 |
|
|
|
5,675 |
|
|
|
5,534 |
|
|
Cost of goods sold |
|
|
41,070 |
|
|
|
52,336 |
|
|
|
97,501 |
|
|
|
108,581 |
|
|
Lower of cost or net realizable value inventory adjustments |
|
|
1,352 |
|
|
|
— |
|
|
|
1,855 |
|
|
|
— |
|
|
Gross Margin |
|
|
7,624 |
|
|
|
15,382 |
|
|
|
14,058 |
|
|
|
31,734 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Selling and administrative |
|
|
7,937 |
|
|
|
7,948 |
|
|
|
16,294 |
|
|
|
16,806 |
|
|
Accretion of asset retirement obligation |
|
|
622 |
|
|
|
535 |
|
|
|
1,244 |
|
|
|
1,070 |
|
|
Impairment of long-lived assets |
|
|
831 |
|
|
|
— |
|
|
|
2,208 |
|
|
|
— |
|
|
Loss (gain) on sale of assets |
|
|
241 |
|
|
|
(7 |
) |
|
|
492 |
|
|
|
193 |
|
|
Other operating income |
|
|
(1,266 |
) |
|
|
(439 |
) |
|
|
(2,659 |
) |
|
|
(730 |
) |
|
Other operating expense |
|
|
887 |
|
|
|
77 |
|
|
|
2,413 |
|
|
|
1,753 |
|
|
Operating (Loss) Income |
|
|
(1,628 |
) |
|
|
7,268 |
|
|
|
(5,934 |
) |
|
|
12,642 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income |
|
|
|
|
|
|
|
|
||||||||
|
Equity in (loss) earnings of unconsolidated entities |
|
|
(116 |
) |
|
|
(1,059 |
) |
|
|
33 |
|
|
|
(238 |
) |
|
Interest income |
|
|
547 |
|
|
|
76 |
|
|
|
791 |
|
|
|
161 |
|
|
Other income |
|
|
60 |
|
|
|
43 |
|
|
|
68 |
|
|
|
56 |
|
|
(Loss) Income Before Income Taxes |
|
|
(1,137 |
) |
|
|
6,328 |
|
|
|
(5,042 |
) |
|
|
12,621 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Benefit (Expense) |
|
|
304 |
|
|
|
(2,023 |
) |
|
|
1,079 |
|
|
|
(3,810 |
) |
|
Net (Loss) Income |
|
$ |
(833 |
) |
|
$ |
4,305 |
|
|
$ |
(3,963 |
) |
|
$ |
8,811 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted Average Shares Outstanding: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
12,886 |
|
|
|
12,766 |
|
|
|
12,852 |
|
|
|
12,730 |
|
|
Diluted |
|
|
12,886 |
|
|
|
12,855 |
|
|
|
12,852 |
|
|
|
12,865 |
|
|
(Loss) Earnings Per Share: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
(0.06 |
) |
|
$ |
0.34 |
|
|
$ |
(0.31 |
) |
|
$ |
0.69 |
|
|
Diluted |
|
$ |
(0.06 |
) |
|
$ |
0.33 |
|
|
$ |
(0.31 |
) |
|
$ |
0.68 |
|
|
INTREPID POTASH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF JUNE 30, 2024 AND DECEMBER 31, 2023 (In thousands, except share and per share amounts) |
||||||||
|
|
|
June 30, |
|
December 31, |
||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
ASSETS |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
51,663 |
|
|
$ |
4,071 |
|
|
Short-term investments |
|
|
2,464 |
|
|
|
2,970 |
|
|
Accounts receivable: |
|
|
|
|
||||
|
Trade, net |
|
|
21,617 |
|
|
|
22,077 |
|
|
Other receivables, net |
|
|
1,679 |
|
|
|
1,470 |
|
|
Inventory, net |
|
|
101,932 |
|
|
|
114,252 |
|
|
Prepaid expenses and other current assets |
|
|
3,832 |
|
|
|
7,200 |
|
|
Total current assets |
|
|
183,187 |
|
|
|
152,040 |
|
|
|
|
|
|
|
||||
|
Property, plant, equipment, and mineral properties, net |
|
|
354,294 |
|
|
|
358,249 |
|
|
Water rights |
|
|
19,184 |
|
|
|
19,184 |
|
|
Long-term parts inventory, net |
|
|
30,899 |
|
|
|
30,231 |
|
|
Long-term investments |
|
|
5,090 |
|
|
|
6,627 |
|
|
Other assets, net |
|
|
9,000 |
|
|
|
8,016 |
|
|
Non-current deferred tax asset, net |
|
|
195,337 |
|
|
|
194,223 |
|
|
Total Assets |
|
$ |
796,991 |
|
|
$ |
768,570 |
|
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
|
|
|
|
|
||||
|
Accounts payable |
|
$ |
7,173 |
|
|
$ |
12,848 |
|
|
Accrued liabilities |
|
|
11,310 |
|
|
|
14,061 |
|
|
Accrued employee compensation and benefits |
|
|
6,856 |
|
|
|
7,254 |
|
|
Other current liabilities |
|
|
8,100 |
|
|
|
12,401 |
|
|
Total current liabilities |
|
|
33,439 |
|
|
|
46,564 |
|
|
|
|
|
|
|
||||
|
Advances on credit facility |
|
|
— |
|
|
|
4,000 |
|
|
Asset retirement obligation, net of current portion |
|
|
31,321 |
|
|
|
30,077 |
|
|
Operating lease liabilities |
|
|
345 |
|
|
|
741 |
|
|
Finance lease liabilities |
|
|
1,428 |
|
|
|
1,451 |
|
|
Deferred other income, long-term |
|
|
46,617 |
|
|
|
— |
|
|
Other non-current liabilities |
|
|
1,593 |
|
|
|
1,309 |
|
|
Total Liabilities |
|
|
114,743 |
|
|
|
84,142 |
|
|
|
|
|
|
|
||||
|
Commitments and Contingencies |
|
|
|
|
||||
|
Common stock, $0.001 par value; 40,000,000 shares authorized; |
|
|
|
|
||||
|
12,908,078 and 12,807,316 shares outstanding |
|
|
|
|
||||
|
at June 30, 2024, and December 31, 2023, respectively |
|
|
14 |
|
|
|
13 |
|
|
Additional paid-in capital |
|
|
667,419 |
|
|
|
665,637 |
|
|
Retained earnings |
|
|
36,827 |
|
|
|
40,790 |
|
|
Less treasury stock, at cost |
|
|
(22,012 |
) |
|
|
(22,012 |
) |
|
Total Stockholders’ Equity |
|
|
682,248 |
|
|
|
684,428 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
796,991 |
|
|
$ |
768,570 |
|
|
INTREPID POTASH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (In thousands) |
||||||||||||||||
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
||||||||
|
Net (loss) income |
|
$ |
(833 |
) |
|
$ |
4,305 |
|
|
$ |
(3,963 |
) |
|
$ |
8,811 |
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion and amortization |
|
|
8,594 |
|
|
|
8,892 |
|
|
|
17,898 |
|
|
|
18,183 |
|
|
Accretion of asset retirement obligation |
|
|
622 |
|
|
|
535 |
|
|
|
1,244 |
|
|
|
1,070 |
|
|
Amortization of deferred financing costs |
|
|
76 |
|
|
|
75 |
|
|
|
151 |
|
|
|
151 |
|
|
Amortization of intangible assets |
|
|
84 |
|
|
|
80 |
|
|
|
164 |
|
|
|
161 |
|
|
Stock-based compensation |
|
|
1,235 |
|
|
|
1,803 |
|
|
|
2,557 |
|
|
|
3,549 |
|
|
Lower of cost or net realizable value inventory adjustments |
|
|
1,352 |
|
|
|
— |
|
|
|
1,855 |
|
|
|
— |
|
|
Impairment of long-lived assets |
|
|
831 |
|
|
|
— |
|
|
|
2,208 |
|
|
|
— |
|
|
Loss (gain) on disposal of assets |
|
|
241 |
|
|
|
(7 |
) |
|
|
492 |
|
|
|
193 |
|
|
Allowance for parts inventory obsolescence |
|
|
419 |
|
|
|
— |
|
|
|
472 |
|
|
|
— |
|
|
Equity in loss (earnings) of unconsolidated entities |
|
|
116 |
|
|
|
1,059 |
|
|
|
(33 |
) |
|
|
238 |
|
|
Distribution of earnings from unconsolidated entities |
|
|
— |
|
|
|
132 |
|
|
|
— |
|
|
|
452 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
|
Trade accounts receivable, net |
|
|
20,208 |
|
|
|
15,391 |
|
|
|
459 |
|
|
|
2,917 |
|
|
Other receivables, net |
|
|
(497 |
) |
|
|
(867 |
) |
|
|
(250 |
) |
|
|
(959 |
) |
|
Inventory, net |
|
|
(1,509 |
) |
|
|
3,117 |
|
|
|
9,326 |
|
|
|
10,763 |
|
|
Prepaid expenses and other current assets |
|
|
1,353 |
|
|
|
656 |
|
|
|
2,275 |
|
|
|
906 |
|
|
Deferred tax assets, net |
|
|
(325 |
) |
|
|
2,016 |
|
|
|
(1,114 |
) |
|
|
3,676 |
|
|
Accounts payable, accrued liabilities, and accrued employee compensation and benefits |
|
|
(3,271 |
) |
|
|
(2,827 |
) |
|
|
(6,892 |
) |
|
|
(8,132 |
) |
|
Operating lease liabilities |
|
|
(356 |
) |
|
|
(408 |
) |
|
|
(740 |
) |
|
|
(809 |
) |
|
Deferred other income |
|
|
(562 |
) |
|
|
— |
|
|
|
43,872 |
|
|
|
— |
|
|
Other liabilities |
|
|
(32 |
) |
|
|
(3,455 |
) |
|
|
(703 |
) |
|
|
(2,222 |
) |
|
Net cash provided by operating activities |
|
|
27,746 |
|
|
|
30,497 |
|
|
|
69,278 |
|
|
|
38,948 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
||||||||
|
Additions to property, plant, equipment, mineral properties and other assets |
|
|
(11,301 |
) |
|
|
(20,895 |
) |
|
|
(22,974 |
) |
|
|
(41,934 |
) |
|
Purchase of investments |
|
|
— |
|
|
|
(459 |
) |
|
|
— |
|
|
|
(1,415 |
) |
|
Proceeds from sale of assets |
|
|
55 |
|
|
|
24 |
|
|
|
4,651 |
|
|
|
89 |
|
|
Proceeds from redemptions/maturities of investments |
|
|
1,000 |
|
|
|
2,500 |
|
|
|
1,500 |
|
|
|
4,000 |
|
|
Other investing, net |
|
|
416 |
|
|
|
508 |
|
|
|
416 |
|
|
|
508 |
|
|
Net cash used in investing activities |
|
|
(9,830 |
) |
|
|
(18,322 |
) |
|
|
(16,407 |
) |
|
|
(38,752 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
||||||||
|
Payments of financing lease |
|
|
(176 |
) |
|
|
(167 |
) |
|
|
(500 |
) |
|
|
(210 |
) |
|
Proceeds from short-term borrowings on credit facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
Repayments of short-term borrowings on credit facility |
|
|
— |
|
|
|
(5,000 |
) |
|
|
(4,000 |
) |
|
|
(5,000 |
) |
|
Employee tax withholding paid for restricted stock upon vesting |
|
|
(142 |
) |
|
|
(298 |
) |
|
|
(775 |
) |
|
|
(1,337 |
) |
|
Net cash used in financing activities |
|
|
(318 |
) |
|
|
(5,465 |
) |
|
|
(5,275 |
) |
|
|
(1,547 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Change in Cash, Cash Equivalents and Restricted Cash |
|
|
17,598 |
|
|
|
6,710 |
|
|
|
47,596 |
|
|
|
(1,351 |
) |
|
Cash, Cash Equivalents and Restricted Cash, beginning of period |
|
|
34,649 |
|
|
|
11,023 |
|
|
|
4,651 |
|
|
|
19,084 |
|
|
Cash, Cash Equivalents and Restricted Cash, end of period |
|
$ |
52,247 |
|
|
$ |
17,733 |
|
|
$ |
52,247 |
|
|
$ |
17,733 |
|
Contacts
Evan Mapes, CFA, Investor Relations Manager
Phone: 303-996-3042
Email: [email protected]
