DENVER, April 24, 2018 -
Intrepid Potash, Inc. (Intrepid) (NYSE:IPI) today reported its
results for the first quarter of 2018.
Key Q1 Takeaways
· Net income
of $1.8 million, or $0.01 per share, an improvement of $15.5
million, or $0.18 per share, from the first quarter of
2017.
· Cash flow from
operations of $13.9 million.
· Adjusted EBITDA(1) of $11.6
million.
· Potash segment gross margin
of $5.0 million, a $2.7 million increase compared to the prior-year
period.
· Trio® segment
gross deficit of $2.1 million, a $3.1 million improvement compared
to the first quarter of 2017.
· Total sales of $53.2
million.
· Total water
activity(1) of $9.2
million in the first quarter consisted of sales of $4.8 million,
by-product credits of $0.7 million, and $3.7 million received from
a separate prearranged water commitment.
"Solid operational execution, combined with the
strategic moves we have made to strengthen our business, provided a
solid start to 2018." said Bob Jornayvaz, Intrepid's Executive
Chairman, President and CEO. "Our focus on by-products led to lower
potash costs and an improvement in margin compared to the prior
year. We have also seen healthy demand in the domestic
Trio® market and
expect that to continue in the second quarter. These factors,
combined with a record quarter for our water business, yielded
meaningful cash flow, improved our liquidity position, and marked
what we believe is a transition for the business toward increased
profitability and a more growth-focused strategy. Internationally,
having worked to establish a footprint in several new markets with
our specialty Trio® product, we
are refining our strategy to concentrate our sales into markets
with more favorable shipping and margin opportunities."
Jornayvaz continued, "Entering the second quarter,
we expect our dedicated water team to drive continued growth in
water sales. Our new oilfield services group and trucking
initiatives are ramping up, and combined with the domestic price
increases announced late last year, should provide a boost to the
bottom line. We remain on track to achieve the $20-30 million in
water sales for 2018."
Consolidated Results
Intrepid generated net income of $1.8 million, or
$0.01 per share and consolidated gross margin of $7.2 million in
the first quarter of 2018. Increases in net income and gross margin
when compared to the first quarter of 2017 were primarily the
result of lower potash cost of goods sold, increased water sales,
and reduced lower-of-cost-or-market adjustments in the
Trio® segment. Net
income also benefited from lower interest expense as a result of a
reduced outstanding debt balance and lower effective interest rate
on Intrepid's senior notes.
Segment Highlights
Potash
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
2017 |
|
|
(in thousands, except per ton
data) |
Potash
sales |
|
$ |
27,064 |
|
|
$ |
27,220 |
|
Potash
gross margin |
|
$ |
4,976 |
|
|
$ |
2,328 |
|
|
|
|
|
|
Potash
production volume (in tons) |
|
125 |
|
|
118 |
|
Potash
sales volume (in tons) |
|
97 |
|
|
101 |
|
|
|
|
|
|
Average potash net realized sales price per ton(1) |
|
$ |
243 |
|
|
$ |
240 |
|
During the first quarter of 2018, the potash
segment generated gross margin of $5.0 million, an increase of $2.7
million compared with the same period in 2017. The increase in
gross margin was driven primarily by increased by-product
production and sales and improved evaporation, which led to a lower
total cost of goods sold.
Potash sales were similar to the prior year as
robust sales into agricultural markets were offset by fewer tons
sold into the industrial market. Potash production increased 6%
compared to the prior year due to increased runtime.
Trio®
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
2017 |
|
|
(in thousands, except per ton
data) |
Trio® sales |
|
$ |
21,237 |
|
|
$ |
21,112 |
|
Trio® gross
deficit |
|
$ |
(2,078 |
) |
|
$ |
(5,184 |
) |
|
|
|
|
|
Trio® production
volume (in tons) |
|
47 |
|
|
71 |
|
Trio® sales volume
(in tons) |
|
77 |
|
|
76 |
|
|
|
|
|
|
Average Trio® net realized
sales price per ton(1) |
|
$ |
194 |
|
|
$ |
202 |
|
The Trio® segment
generated a gross deficit of $2.1 million in the first quarter of
2018, an improvement of $3.1 million compared to the first quarter
of 2017. Lower gross deficit was driven by a reduction in
lower-of-cost-or-market adjustments on international shipments.
Sales volumes were similar to the prior year with
strong domestic demand offsetting a decrease in international sales
as Intrepid continues to refine its international strategy. Average
net realized sales price1 decreased
compared to the prior period due to price decreases announced
during the second half of 2017. The price increase announced in
December 2017 became effective on spot tons sold during the first
quarter and tons shipped in March. Intrepid expects the full effect
of the price increase to be realized on domestic sales in the
second quarter.
Production decreased 34% in the first quarter of
2018, compared to the prior year, as Intrepid began operating at a
reduced rate in June 2017 to manage inventory levels and match
production to expected demand.
Liquidity
Cash provided by operations was $13.9 million
during the first quarter and cash spent on capital investments was
$6.5 million. As of March 31, 2018, Intrepid had $6.1 million in
cash and cash equivalents and $31.4 million available under its
credit facility. The amount outstanding under Intrepid's senior
notes was $60 million, with a required principal prepayment of $10
million due December 31, 2018. In addition, Intrepid had $1.5
million outstanding under its credit facility.
Notes
1 Adjusted
earnings before interest, taxes, depreciation, and amortization
(adjusted EBITDA), total water activity, and average net realized
sales price per ton are non-GAAP financial measures. See the
non-GAAP reconciliations set forth later in this press release for
additional information.
Unless expressly stated otherwise or the context
otherwise requires, references to tons in this press release refer
to short tons. One short ton equals 2,000 pounds. One metric tonne,
which many international competitors use, equals 1,000 kilograms or
2,204.62 pounds.
Conference Call
Information
A teleconference to discuss the quarter is
scheduled for April 24, 2018, 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 May 24, 2018, 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 2192.
About Intrepid
Intrepid Potash (NYSE:IPI) is the only U.S.
producer of muriate of potash. Potash is applied as an essential
nutrient for healthy crop development, utilized in several
industrial applications and used as an ingredient in animal feed.
Intrepid also produces a specialty fertilizer, Trio®, which
delivers three key nutrients, potassium, magnesium, and sulfate, in
a single particle. Intrepid also sells water and by-products such
as salt, magnesium chloride, and brine.
Intrepid serves diverse customers in markets where
a logistical advantage exists; and is a leader in the utilization
of solar evaporation production, one of the lowest cost,
environmentally friendly production methods for potash. Intrepid's
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 on
the Intrepid website, intrepidpotash.com to receive automatic email
alerts or Really Simple Syndication (RSS) feeds regarding 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,
production costs, 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;
-
Intrepid's ability to successfully identify and
implement any opportunities to expand sales of water, by-products,
and other non-potassium related products or other revenue
diversification activities;
-
challenges to Intrepid's water rights;
-
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 expand Trio®
sales internationally and manage risks associated with
international sales, including pricing pressure and freight
costs;
-
Intrepid's ability to successfully identify and
consummate profitable growth opportunities;
-
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,
2017.
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, 2018 AND
2017
(In thousands, except share and per share
amounts)
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
2017 |
Sales |
|
$ |
53,195 |
|
|
$ |
48,655 |
|
Less: |
|
|
|
|
Freight costs |
|
9,734 |
|
|
8,721 |
|
Warehousing and handling costs |
|
2,276 |
|
|
2,770 |
|
Cost
of goods sold |
|
33,280 |
|
|
35,873 |
|
Lower-of-cost-or-market inventory adjustments |
|
705 |
|
|
3,824 |
|
Gross Margin (Deficit) |
|
7,200 |
|
|
(2,533 |
) |
|
|
|
|
|
Selling and administrative |
|
3,970 |
|
|
4,404 |
|
Accretion of asset retirement obligation |
|
417 |
|
|
389 |
|
Care
and maintenance expense |
|
128 |
|
|
692 |
|
Other
operating expense |
|
168 |
|
|
1,650 |
|
Operating Income (Loss) |
|
2,517 |
|
|
(9,668 |
) |
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
Interest expense, net |
|
(878 |
) |
|
(4,421 |
) |
Interest income |
|
98 |
|
|
3 |
|
Other
income |
|
20 |
|
|
413 |
|
Income (Loss) Before Income Taxes |
|
1,757 |
|
|
(13,673 |
) |
|
|
|
|
|
Income Tax Expense |
|
- |
|
|
(5 |
) |
Net Income (Loss) |
|
$ |
1,757 |
|
|
$ |
(13,678 |
) |
|
|
|
|
|
Weighted Average Shares Outstanding: |
|
|
|
|
Basic |
|
127,661,458 |
|
|
81,992,071 |
|
Diluted |
|
130,764,998 |
|
|
81,992,071 |
|
Earnings (Loss) Per Share: |
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
(0.17 |
) |
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.17 |
) |
INTREPID POTASH,
INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
AS OF MARCH 31, 2018 AND DECEMBER 31,
2017
(In thousands, except share and per share
amounts)
|
|
March
31, |
|
December
31, |
|
|
2018 |
|
2017 |
ASSETS |
|
|
|
|
Cash
and cash equivalents |
|
$ |
6,085 |
|
|
$ |
1,068 |
|
Accounts receivable: |
|
|
|
|
Trade,
net |
|
29,605 |
|
|
17,777 |
|
Other
receivables, net |
|
969 |
|
|
762 |
|
Refundable income taxes |
|
- |
|
|
2,663 |
|
Inventory, net |
|
75,916 |
|
|
83,126 |
|
Prepaid expenses and other current assets |
|
5,175 |
|
|
6,088 |
|
Total
current assets |
|
117,750 |
|
|
111,484 |
|
|
|
|
|
|
Property, plant, equipment, and mineral properties, net |
|
359,362 |
|
|
364,542 |
|
Long-term parts inventory, net |
|
31,106 |
|
|
30,611 |
|
Other
assets, net |
|
3,804 |
|
|
3,955 |
|
Total Assets |
|
$ |
512,022 |
|
|
$ |
510,592 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
Accounts payable: |
|
|
|
|
Trade |
|
$ |
8,262 |
|
|
$ |
11,103 |
|
Related parties |
|
31 |
|
|
28 |
|
Income
taxes payable |
|
180 |
|
|
- |
|
Accrued liabilities |
|
8,618 |
|
|
8,074 |
|
Accrued employee compensation and benefits |
|
3,579 |
|
|
4,317 |
|
Advances on credit facility |
|
1,500 |
|
|
3,900 |
|
Current portion of long-term debt |
|
10,000 |
|
|
10,000 |
|
Other
current liabilities |
|
3,746 |
|
|
65 |
|
Total
current liabilities |
|
35,916 |
|
|
37,487 |
|
|
|
|
|
|
Long-term debt, net |
|
49,470 |
|
|
49,437 |
|
Asset
retirement obligation |
|
21,893 |
|
|
21,476 |
|
Other
non-current liabilities |
|
- |
|
|
102 |
|
Total Liabilities |
|
107,279 |
|
|
108,502 |
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
Common
stock, $0.001 par value; 400,000,000 shares authorized; |
|
|
|
|
127,688,437 and 127,646,530 shares outstanding |
|
|
|
|
at
March 31, 2018, and December 31, 2017, respectively |
|
128 |
|
|
128 |
|
Additional paid-in capital |
|
646,709 |
|
|
645,813 |
|
Retained deficit |
|
(242,094 |
) |
|
(243,851 |
) |
Total Stockholders' Equity |
|
404,743 |
|
|
402,090 |
|
Total Liabilities and Stockholders'
Equity |
|
$ |
512,022 |
|
|
$ |
510,592 |
|
INTREPID POTASH,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND
2017
(In thousands)
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
2017 |
Cash Flows from Operating Activities: |
|
|
|
|
Net
income (loss) |
|
$ |
1,757 |
|
|
$ |
(13,678 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
Depreciation, depletion, and accretion |
|
8,932 |
|
|
9,323 |
|
Amortization of deferred financing costs |
|
183 |
|
|
821 |
|
Stock-based compensation |
|
947 |
|
|
989 |
|
Lower-of-cost-or-market inventory adjustments |
|
705 |
|
|
3,824 |
|
(Gain)
loss on disposal of assets |
|
(34 |
) |
|
1,559 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Trade
accounts receivable, net |
|
(11,828 |
) |
|
(8,776 |
) |
Other
receivables, net |
|
(207 |
) |
|
(399 |
) |
Refundable income taxes |
|
2,844 |
|
|
(4 |
) |
Inventory, net |
|
6,009 |
|
|
1,643 |
|
Prepaid expenses and other current assets |
|
914 |
|
|
3,872 |
|
Accounts payable, accrued liabilities, and accrued
employee
compensation and benefits |
|
1 |
|
|
(64 |
) |
Other
liabilities |
|
3,681 |
|
|
(819 |
) |
Net
cash provided by (used in) operating activities |
|
13,904 |
|
|
(1,709 |
) |
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
Additions to property, plant, equipment, and mineral
properties |
|
(6,470 |
) |
|
(2,423 |
) |
Proceeds from sale of property, plant, equipment, and mineral
properties |
|
34 |
|
|
5,553 |
|
Net
cash (used in) provided by investing activities |
|
(6,436 |
) |
|
3,130 |
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
Issuance of common stock, net of transaction costs |
|
- |
|
|
57,468 |
|
Repayments of long-term debt |
|
- |
|
|
(46,000 |
) |
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 |
|
(62 |
) |
|
(109 |
) |
Proceeds from exercise of stock options |
|
11 |
|
|
- |
|
Net
cash (used in) provided by financing activities |
|
(2,451 |
) |
|
11,359 |
|
|
|
|
|
|
Net Change in Cash, Cash Equivalents and
Restricted Cash |
|
5,017 |
|
|
12,780 |
|
Cash, Cash Equivalents and Restricted Cash,
beginning of period |
|
1,549 |
|
|
8,470 |
|
Cash, Cash Equivalents and Restricted Cash, end of
period |
|
$ |
6,566 |
|
|
$ |
21,250 |
|
|
|
|
|
|
Supplemental disclosure of cash flow
information |
|
|
|
|
Net
cash paid (refunded) during the period for: |
|
|
|
|
Interest |
|
$ |
95 |
|
|
$ |
2,467 |
|
Income taxes |
|
$ |
(2,843 |
) |
|
$ |
10 |
|
Accrued purchases for property, plant, equipment, and mineral
properties |
|
$ |
933 |
|
|
$ |
214 |
|
INTREPID POTASH,
INC.
SELECTED OPERATING AND SEGMENT DATA
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND
2017
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
2017 |
Production volume (in thousands of tons): |
|
|
|
|
Potash |
|
125 |
|
|
118 |
|
Langbeinite |
|
47 |
|
|
71 |
|
Sales
volume (in thousands of tons): |
|
|
|
|
Potash |
|
97 |
|
|
101 |
|
Trio® |
|
77 |
|
|
76 |
|
|
|
|
|
|
Average net realized sales price per ton (1) |
|
|
|
|
Potash |
|
$ |
243 |
|
|
$ |
240 |
|
Trio® |
|
$ |
194 |
|
|
$ |
202 |
|
Three Months Ended March 31, 2018 (in
thousands): |
|
Potash |
|
Trio® |
|
Other |
|
Consolidated |
Sales |
|
$ |
27,064 |
|
|
$ |
21,237 |
|
|
$ |
4,894 |
|
|
$ |
53,195 |
|
Less:
Freight costs |
|
3,458 |
|
|
6,276 |
|
|
- |
|
|
9,734 |
|
Warehousing and handling costs |
|
1,154 |
|
|
1,118 |
|
|
4 |
|
|
2,276 |
|
Cost of goods sold |
|
17,476 |
|
|
15,216 |
|
|
588 |
|
|
33,280 |
|
Lower-of-cost-or-market inventory adjustments |
|
- |
|
|
705 |
|
|
- |
|
|
705 |
|
Gross
Margin (Deficit) |
|
$ |
4,976 |
|
|
$ |
(2,078 |
) |
|
$ |
4,302 |
|
|
$ |
7,200 |
|
Depreciation, depletion and accretion incurred(2) |
|
$ |
7,138 |
|
|
$ |
1,690 |
|
|
$ |
104 |
|
|
$ |
8,932 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2017 (in
thousands): |
|
Potash |
|
Trio® |
|
Other |
|
Consolidated |
Sales |
|
$ |
27,220 |
|
|
$ |
21,112 |
|
|
$ |
323 |
|
|
$ |
48,655 |
|
Less:
Freight costs |
|
2,959 |
|
|
5,762 |
|
|
- |
|
|
8,721 |
|
Warehousing and handling costs |
|
1,512 |
|
|
1,258 |
|
|
- |
|
|
2,770 |
|
Cost of goods sold |
|
20,421 |
|
|
15,452 |
|
|
- |
|
|
35,873 |
|
Lower-of-cost-or-market inventory
adjustments |
|
- |
|
|
3,824 |
|
|
- |
|
|
3,824 |
|
Gross
Margin (Deficit) |
|
$ |
2,328 |
|
|
$ |
(5,184 |
) |
|
$ |
323 |
|
|
$ |
(2,533 |
) |
Depreciation, depletion and accretion incurred(2) |
|
$ |
7,563 |
|
|
$ |
1,699 |
|
|
$ |
61 |
|
|
$ |
9,323 |
|
(1)
Average net realized sales price is a non-GAAP financial
measure. See the non-GAAP reconciliations set forth later in
this press release for additional information.
(2)
Depreciation, depletion and accretion incurred for potash and
Trio® excludes
depreciation, depletion and accretion amounts absorbed in or
(relieved from) inventory.
INTREPID POTASH,
INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND
2017
(In thousands, except per share amounts)
To supplement Intrepid's consolidated financial
statements, which are prepared and presented in accordance with
GAAP, Intrepid uses several non-GAAP financial measures to monitor
and evaluate its performance. These non-GAAP financial measures
include adjusted net income (loss), adjusted net income (loss) per
diluted share, adjusted EBITDA, average net realized sales price
per ton, and total water activity. These non-GAAP financial
measures should not be considered in isolation, or as a substitute
for, or superior to, the financial information prepared and
presented in accordance with GAAP. In addition, because the
presentation of these non-GAAP financial measures varies among
companies, these non-GAAP financial measures may not be comparable
to similarly titled measures used by other companies.
Intrepid believes these non-GAAP financial
measures provide useful information to investors for analysis of
its business. Intrepid uses these non-GAAP financial measures as
one of its tools in comparing period-over-period performance on a
consistent basis and when planning, forecasting, and analyzing
future periods. Intrepid believes these non-GAAP financial measures
are used by professional research analysts and others in the
valuation, comparison, and investment recommendations of companies
in the potash mining industry. Many investors use the published
research reports of these professional research analysts and others
in making investment decisions.
Adjusted Net Income (Loss) and
Adjusted Net Income (Loss) Per Diluted Share
Adjusted net income (loss) and adjusted net income
(loss) per diluted share are calculated as net income (loss) or
income (loss) per diluted share adjusted for certain items that
impact the comparability of results from period to period, as set
forth in the reconciliation below. Intrepid considers these
non-GAAP financial measures to be useful because they allow for
period-to-period comparisons of its operating results excluding
items that Intrepid believes are not indicative of its fundamental
ongoing operations.
Reconciliation of Net Income
(Loss) to Adjusted Net Income (Loss):
|
Three Months
Ended March 31, |
|
2018 |
|
2017 |
|
(in thousands) |
Net
Income (Loss) |
$ |
1,757 |
|
|
$ |
(13,678 |
) |
Adjustments |
|
|
|
Write-off of deferred financing fees(1) |
- |
|
|
518 |
|
Make-whole payment(2) |
- |
|
|
794 |
|
Calculated income tax effect(3) |
- |
|
|
- |
|
Total adjustments |
- |
|
|
1,312 |
|
Adjusted Net Income (Loss) |
$ |
1,757 |
|
|
$ |
(12,366 |
) |
Reconciliation of Net Income
(Loss) per Share to Adjusted Net Income (Loss) per Share:
|
Three Months
Ended March 31, |
|
2018 |
|
2017 |
Net
Income (Loss) Per Diluted Share |
$ |
0.01 |
|
|
$ |
(0.17 |
) |
Adjustments |
|
|
|
Write-off of deferred financing fees(1) |
- |
|
|
0.01 |
|
Make-whole payment(2) |
- |
|
|
0.01 |
|
Calculated income tax effect(3) |
- |
|
|
- |
|
Total adjustments |
- |
|
|
0.02 |
|
Adjusted Net Income (Loss) Per Diluted Share |
$ |
0.01 |
|
|
$ |
(0.15 |
) |
(1) During the first quarter of 2017, Intrepid
made an early repayment of $46.0 million of principal on its senior
notes. As a result, Intrepid wrote off a portion of the financing
fees that had previously been capitalized related to the senior
notes. The write-off of deferred financing fees is reflected in
Intrepid's financial statements as interest expense.
(2) During the first quarter of 2017, Intrepid
made an early repayment of principal on its senior notes. The
payment totaled $46.8 million, of which $0.8 million related to an
additional make-whole payment.
(3) Due to Intrepid's valuation allowance against
its deferred tax asset, this calculation assumes a 0% effective tax
rate.
Adjusted EBITDA
Adjusted earnings before interest, taxes,
depreciation, and amortization (or adjusted EBITDA) is calculated
as net income (loss) adjusted for certain items that impact the
comparability of results from period to period, as set forth in the
reconciliation below. Intrepid considers adjusted EBITDA to be
useful because the measure reflects Intrepid's operating
performance before the effects of certain non-cash items and other
items that Intrepid believes are not indicative of its core
operations. Intrepid uses adjusted EBITDA to assess operating
performance.
Reconciliation of Net Income (Loss) to Adjusted
EBITDA:
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
2017 |
|
|
(in thousands) |
Net
Income (Loss) |
|
$ |
1,757 |
|
|
$ |
(13,678 |
) |
Interest expense |
|
878 |
|
|
4,421 |
|
Income tax expense |
|
- |
|
|
5 |
|
Depreciation, depletion, and accretion |
|
8,932 |
|
|
9,323 |
|
Total adjustments |
|
9,810 |
|
|
13,749 |
|
Adjusted EBITDA |
|
$ |
11,567 |
|
|
$ |
71 |
|
Average Net Realized Sales Price
per Ton
Average net realized sales price per ton is
calculated as sales, less freight costs, divided by the number of
tons sold in the period. Intrepid considers average net realized
sales price per ton to be useful because it shows 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, many of the
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 sales and pricing trends.
Reconciliation of Sales to
Average Net Realized Sales Price per Ton:
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
2017 |
|
|
(in thousands, except per-ton
data)
|
|
|
Potash |
|
Trio® |
|
Total |
|
Potash |
|
Trio® |
|
Total |
Sales |
|
$ |
27,064 |
|
|
$ |
21,237 |
|
|
$ |
48,301 |
|
|
$ |
27,220 |
|
|
$ |
21,112 |
|
|
$ |
48,332 |
|
Freight costs |
|
3,458 |
|
|
6,276 |
|
|
9,734 |
|
|
2,959 |
|
|
5,762 |
|
|
8,721 |
|
Subtotal |
|
$ |
23,606 |
|
|
$ |
14,961 |
|
|
$ |
38,567 |
|
|
$ |
24,261 |
|
|
$ |
15,350 |
|
|
$ |
39,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divided by: |
|
|
|
|
|
|
|
|
|
|
|
|
Tons
sold |
|
97 |
|
|
77 |
|
|
|
|
101 |
|
|
76 |
|
|
|
Average net realized sales price per ton |
|
$ |
243 |
|
|
$ |
194 |
|
|
|
|
$ |
240 |
|
|
$ |
202 |
|
|
|
Total Water Activity
Total water activity is calculated as sales
adjusted for items shown below. Depending on the source of the
water sold, Intrepid records the sale of water as either sales or a
by-product credit. Intrepid also receives payments for future water
sales from time to time. As the location of water sold can vary
each quarter, total water activity may be a useful indicator of
overall water demand.
|
|
Three Months
Ended March 31, |
|
|
2018 |
|
|
(in thousands) |
Sales |
|
$ |
53,195 |
|
Less:
Non-water sales |
|
(48,346 |
) |
By-product credits - water |
|
675 |
|
Contract liabilities - water |
|
3,687 |
|
Total Adjustments |
|
(43,984 |
) |
Total
Water Activity |
|
$ |
9,211 |
|
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions 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
Intrepid Potash (NYSE:IPI)
Historical Stock Chart
From Apr 2024 to May 2024
Intrepid Potash (NYSE:IPI)
Historical Stock Chart
From May 2023 to May 2024