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Intrepid Potash(IPI) - 2025 Q2 - Quarterly Report
2025-08-07 18:46
[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited financial statements present the company's financial position, results of operations, and cash flows for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $607.2 million, driven by a significant increase in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (In thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $211,632 | $183,763 | | Cash and cash equivalents | $85,049 | $41,309 | | Inventory, net | $100,196 | $112,968 | | **Total Assets** | **$607,160** | **$594,520** | | **Total Current Liabilities** | $40,083 | $38,003 | | **Total Liabilities** | **$123,323** | **$120,128** | | **Total Stockholders' Equity** | **$483,837** | **$474,392** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company returned to profitability with a net income of $7.9 million, driven by a 20% increase in sales Condensed Consolidated Statements of Operations Highlights (In thousands, except per share amounts) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sales | $169,232 | $141,342 | | Gross Margin | $28,889 | $14,058 | | Operating Income (Loss) | $8,292 | $(5,934) | | Net Income (Loss) | $7,869 | $(3,963) | | Diluted EPS | $0.60 | $(0.31) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $50.9 million, and lower capital expenditures led to a decrease in cash used for investing Cash Flow Summary (In thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $50,860 | $69,278 | | Net cash used in investing activities | $(5,798) | $(16,407) | | Net cash used in financing activities | $(1,318) | $(5,275) | | **Net Change in Cash** | **$43,744** | **$47,596** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business segments, revenue sources, and significant legal contingencies including lawsuits and environmental liabilities - The company operates in three segments: potash, Trio®, and oilfield solutions, producing potassium, magnesium, sulfur, salt, and water products[16](index=16&type=chunk)[18](index=18&type=chunk) - A class action lawsuit was filed alleging failure to properly compensate employees for donning and doffing personal protective equipment, with alleged damages **exceeding $5.0 million**[70](index=70&type=chunk) - Following a final court decision invalidating certain water rights, the company must repay for water sold under previous authorizations, though the form and amount are uncertain[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - In May 2025, the company reported an unpermitted brine discharge and has recorded an **estimated liability of $2.2 million** for potential penalties and $0.1 million for remediation[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, highlighting a return to profitability driven by strong Trio® performance and higher potash volumes [Significant Business Trends and Activities](index=31&type=section&id=Significant%20Business%20Trends%20and%20Activities) Key trends include lower potash prices offset by higher volumes, strong Trio® pricing, and declining water sales - Potash average net realized sales price per ton decreased in Q2 and H1 2025 compared to 2024, but **sales volumes increased significantly** due to improved production and strong demand[103](index=103&type=chunk) - Trio® average net realized sales price per ton and sales volumes **both increased** in Q2 and H1 2025 compared to 2024, driven by rising potash and sulfate prices and strong demand[107](index=107&type=chunk) - Water sales **declined sharply** in 2025 as the oil and gas market trends towards using more recycled water[107](index=107&type=chunk) - Above-average rainfall and lack of anticipated brine are expected to **reduce 2026 production** from the HB facility by a combined total of approximately 45,000 tons[109](index=109&type=chunk)[110](index=110&type=chunk) [Consolidated Results](index=33&type=section&id=Consolidated%20Results) The company's net income reached $7.9 million, reversing a prior-year loss, driven by a 20% sales increase and doubled gross margin Consolidated Results Summary (In thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sales | $169,232 | $141,342 | | Gross Margin | $28,889 | $14,058 | | Net Income (Loss) | $7,869 | $(3,963) | Average Net Realized Sales Price Per Ton | Product | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Potash | $332 | $399 | | Trio® | $352 | $306 | [Segment Results](index=37&type=section&id=Segment%20Results) The Trio® segment's gross margin surged to $18.5 million, offsetting declines in the Potash and Oilfield Solutions segments Potash Segment Performance (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales (in thousands) | $77,571 | $67,610 | | Gross Margin (in thousands) | $7,361 | $8,886 | | Sales Volumes (in k tons) | 172 | 129 | | Avg. Net Realized Price/ton | $332 | $399 | Trio® Segment Performance (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales (in thousands) | $83,054 | $63,010 | | Gross Margin (in thousands) | $18,520 | $1,043 | | Sales Volumes (in k tons) | 181 | 154 | | Avg. Net Realized Price/ton | $352 | $306 | Oilfield Solutions Segment Performance (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales | $8,724 | $10,862 | | Gross Margin | $3,008 | $4,129 | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $85.0 million in cash and no outstanding debt on its credit facility - Cash and cash equivalents **increased to $85.0 million** as of June 30, 2025, from $41.3 million at December 31, 2024[177](index=177&type=chunk) - The company has a **$150 million revolving credit facility** with no borrowings outstanding as of June 30, 2025[181](index=181&type=chunk)[183](index=183&type=chunk) - Expected capital investments for 2025 are between **$32 million and $37 million**, primarily for sustaining capital[176](index=176&type=chunk) - **No shares were repurchased** in the first six months of 2025 under the share repurchase program, which has approximately $13 million remaining[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk exposure since year-end 2024 - There have been **no material changes** to the company's market risk exposure since December 31, 2024[191](index=191&type=chunk) [Controls and Procedures](index=48&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[192](index=192&type=chunk) - **No changes occurred** in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[193](index=193&type=chunk) [PART II - OTHER INFORMATION](index=49&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=49&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 14 for details on legal matters, including lawsuits and contingent liabilities - For details on legal proceedings, the report directs readers to **Note 14** in Part I, Item 1[196](index=196&type=chunk) [Risk Factors](index=50&type=section&id=ITEM%201A.%20Risk%20Factors) The company highlights expanded risks related to U.S. tariffs and their potential impact on costs and customer demand - The company highlights the risk from changes in laws, particularly the **uncertainty surrounding U.S. tariffs** announced in April 2025 and potential retaliatory tariffs[199](index=199&type=chunk)[200](index=200&type=chunk) - Tariffs could affect **raw material costs and availability**, influence customer purchasing decisions, and increase overall operating costs[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company withheld shares to cover employee taxes on vested stock but made no repurchases under its formal program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Purchased as Part of Program | Remaining Program Value | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 3,791 | $29.63 | — | $12,987,86 | | May 2025 | 1,881 | $32.57 | — | $12,987,86 | | June 2025 | — | $— | — | $12,987,86 | | **Total** | **5,672** | **$30.61** | **—** | **$12,987,86** | - The shares purchased were withheld to cover employee taxes on vested restricted stock and were **not part of the formal share repurchase program**[203](index=203&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company provides required mine safety disclosures for its MSHA-regulated facilities in Exhibit 95.1 - The company's New Mexico facilities are regulated by MSHA, and required mine safety violation information is provided in **Exhibit 95.1**[206](index=206&type=chunk)
Intrepid Potash(IPI) - 2025 Q2 - Earnings Call Transcript
2025-08-07 17:00
Financial Data and Key Metrics Changes - In the second quarter, the company generated adjusted EBITDA of $16.4 million and adjusted net income of $6 million, compared to adjusted EBITDA of $9.2 million and an adjusted net loss of approximately $0.04 million in the prior year [5][6] - Year-to-date production of potash was 137,000 tons, an 8% increase from the same period in 2024, with cost of goods sold per ton improving by 12% to $323 [6] - Year-to-date production of Trio was 132,000 tons, also an 8% increase from the previous year, with cost of goods sold per ton improving by 18% to $234 [6] Business Line Data and Key Metrics Changes - Potash segment saw second quarter sales volumes of 69,000 tons, a 25% increase year-over-year, with a net realized sales price of $361 per ton, up about $50 from the first quarter [12] - Trio segment sold 70,000 tons at an average net realized sales price of $368 per ton, supported by a tight domestic sulfate market [15] - Oilfield Solutions segment generated revenue of $4.3 million with a gross margin of $1.3 million, maintaining a 30% margin consistent with historical averages [16] Market Data and Key Metrics Changes - Global supply remains tight with strong demand outpacing supply additions in 2025, and key international contracts were settled at supportive levels [8] - The Jansen project, expected to come online late next year, has been delayed by six months, contributing to a more balanced market outlook [8] - Despite some weakness in U.S. corn and soybean futures, strong exports and recent trade deals are expected to support agricultural markets [9][10] Company Strategy and Development Direction - The company remains focused on enhancing core operations for long-term success, prioritizing investments that support higher production and lower costs [11][18] - The company plans to evaluate options for an injection well and pipeline to connect the Amex mine to the HB injection system following the unsuccessful drilling of the Amax Cavern sample well [6][7] - The company aims to maintain production levels and improve unit economics despite recent production challenges [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potash market fundamentals and pricing, which are expected to help offset lower near-term production [19] - The company is in a strong financial position to navigate production headwinds and execute necessary projects for future success [19][20] - Management acknowledged the recent challenges but emphasized the overall strong performance and production improvements achieved in prior periods [19] Other Important Information - The company has reduced its capital expenditure guidance for 2025 to $32 million to $37 million due to the results of the Amex well [18] - The company expects potash production to be between 270,000 to 280,000 tons for both 2025 and 2026, reflecting adjustments due to weather and drilling outcomes [14][15] Q&A Session Summary Question: Clarification on production timing changes - The total impact on production is a reduction of 45,000 tons in 2026, netting off the 15,000 tons shifted from 2025 [22][24] Question: Long-term production outlook - The company anticipates a potential tailwind into 2027 from the temporary production shifts, with the medium-term challenge being the 25,000 tons reduction due to the unsuccessful well [25][27] Question: Impact of lower production on cost absorption - A potential 8% to 10% increase in cost per ton is expected for 2026 unless cost-cutting measures are implemented [31][33] Question: Capital allocation discussion - The board is actively discussing capital allocation as cash accumulates, with a focus on core operations and potential future investments [44][46]
Intrepid Potash(IPI) - 2025 Q2 - Quarterly Results
2025-08-06 20:46
[Second Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Intrepid reported strong Q2 2025 results, driven by potash and Trio performance, with revised production outlook [Management Commentary & Key Results](index=1&type=section&id=Management%20Commentary%20%26%20Key%20Results) Intrepid exceeded Q2 2025 expectations with strong financial results, driven by improved pricing and demand for potash and Trio - Management highlighted that solid pricing and sales volumes for potash and Trio® drove higher gross margins compared to the prior year[3](index=3&type=chunk)[4](index=4&type=chunk) Q2 2025 Key Financial Results | Metric | Value | | :--- | :--- | | Total Sales | $71.5 million | | Net Income | $3.3 million ($0.25/share) | | Adjusted Net Income | $6.0 million ($0.45/share) | | Adjusted EBITDA | $16.4 million | | Cash Flow from Operations | $39.9 million | - Adjusted EBITDA of **$16.4 million** was roughly **75%** higher than the **second quarter of 2024**[4](index=4&type=chunk) [Consolidated Financial & Operational Metrics](index=2&type=section&id=Consolidated%20Financial%20%26%20Operational%20Metrics) Q2 2025 saw Intrepid's total sales rise to $71.5 million, with net income turning positive and increased sales volumes Q2 2025 vs Q2 2024 Financial Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Sales | $71.5 million | $62.1 million | | Gross Margin | $14.3 million | $7.6 million | | Net Income (Loss) | $3.3 million | $(0.8) million | | Adjusted EBITDA | $16.4 million | $9.2 million | | Cash Flow from Operations | $39.9 million | $27.7 million | Q2 2025 vs Q2 2024 Key Operational Metrics (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Potash Sales Volumes | 69k tons | 55k tons | | Avg. Potash Price/ton | $361 | $405 | | Trio® Sales Volumes | 70k tons | 63k tons | | Avg. Trio® Price/ton | $368 | $314 | [Operational Updates & Outlook](index=2&type=section&id=Operational%20Updates%20%26%20Outlook) Potash production outlook for 2025-2026 revised downward due to rainfall and HB AMAX Cavern project results - Above-average rainfall at the HB facility is expected to reduce **1H 2026** production by approximately **20,000 tons** A planned mill shutdown in **September 2025** will shift about **15,000 tons** of production from **2025** into **1H 2026**[7](index=7&type=chunk) - The HB AMAX Cavern project did not find an anticipated brine pool, which is now expected to decrease **2026** production by an additional **25,000 tons** due to a reduced overall brine grade[8](index=8&type=chunk)[9](index=9&type=chunk) Revised Potash Production Outlook (in thousands of tons) | Year | Current Forecast | Previous Forecast | | :--- | :--- | :--- | | 2025 | 270k - 280k | 285k - 295k | | 2026 | 270k - 280k | 300k - 310k | [Liquidity & Capital Expenditures](index=3&type=section&id=Liquidity%20%26%20Capital%20Expenditures) Intrepid maintains strong liquidity with $87 million cash and no debt, forecasting $32-37 million in 2025 capex - As of **August 1, 2025**, the company had **$87 million** in cash and cash equivalents and no outstanding debt on its **$150 million** revolving credit facility[11](index=11&type=chunk) - **Q2 2025** capital expenditures totaled **$4.1 million** The full-year **2025** forecast is projected to be between **$32 million** and **$37 million**[12](index=12&type=chunk) [Segment Performance Analysis](index=3&type=section&id=Segment%20Performance%20Analysis) Analysis of Potash, Trio®, and Oilfield Solutions segments reveals varied performance in Q2 2025 [Potash Segment](index=3&type=section&id=Potash%20Segment) Potash segment sales increased by $4.0 million in Q2 2025, driven by higher volumes and improved gross margin Potash Segment Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $34.0 million | $30.0 million | | Gross Margin | $4.9 million | $3.3 million | | Sales Volumes | 69k tons | 55k tons | | Avg. Net Realized Price/ton | $361 | $405 | - The increase in sales was primarily driven by a **25%** rise in sales volumes, while the average net realized sales price per ton decreased by **11%** compared to the prior year[13](index=13&type=chunk)[14](index=14&type=chunk) - Unit economics improved, with COGS per ton decreasing by **13%** to **$337** from **$386** in **Q2 2024**, which contributed to the higher gross margin[16](index=16&type=chunk)[17](index=17&type=chunk) [Trio® Segment](index=4&type=section&id=Trio%C2%AE%20Segment) Trio® segment sales surged 25% in Q2 2025 due to increased volume and price, boosting gross margin to $8.1 million Trio® Segment Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $33.2 million | $26.5 million | | Gross Margin | $8.1 million | $2.2 million | | Sales Volume | 70k tons | 63k tons | | Avg. Net Realized Price/ton | $368 | $314 | - Sales growth was driven by both an **11%** increase in tons sold and a **17%** increase in the average net realized sales price per ton[21](index=21&type=chunk) - Trio® segment COGS per ton improved by **10%** to **$235**, down from **$261** in **Q2 2024**, reflecting strong efficiencies and lower operating expenses[21](index=21&type=chunk) [Oilfield Solutions Segment](index=5&type=section&id=Oilfield%20Solutions%20Segment) Oilfield Solutions sales decreased by $1.2 million in Q2 2025 due to lower water sales, resulting in reduced gross margin Oilfield Solutions Segment Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $4.3 million | $5.5 million | | Gross Margin | $1.3 million | $2.1 million | - The sales decrease was attributed to a **$2.0 million** drop in water sales from slightly lower oilfield activity, partially offset by a **$0.9 million** increase in surface use and easement sales[22](index=22&type=chunk) - Segment gross margin decreased by **$0.8 million** to **$1.3 million**, reflecting the lower sales[23](index=23&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) Key financial statements for Q2 2025 show improved sales, net income, and strong cash flow and liquidity [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw Intrepid's total sales rise to $71.5 million, with gross margin doubling and net income turning positive Q2 2025 vs Q2 2024 Income Statement Highlights (Three Months Ended June 30) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Sales | $71,472 | $62,055 | | Gross Margin | $14,287 | $7,624 | | Operating Income (Loss) | $3,294 | $(1,628) | | Net Income (Loss) | $3,263 | $(833) | | Diluted EPS | $0.25 | $(0.06) | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Intrepid's balance sheet as of June 30, 2025, shows strong liquidity with increased cash and total stockholders' equity Balance Sheet Highlights (as of June 30, 2025 vs Dec 31, 2024) | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $85,049 | $41,309 | | Total current assets | $211,632 | $183,763 | | Total Assets | $607,160 | $594,520 | | Total current liabilities | $40,083 | $38,003 | | Total Liabilities | $123,323 | $120,128 | | Total Stockholders' Equity | $483,837 | $474,392 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 operating cash flow was strong at $39.9 million, ending with $85.6 million cash balance Q2 2025 vs Q2 2024 Cash Flow Highlights (Three Months Ended June 30) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,943 | $27,746 | | Net cash used in investing activities | $(130) | $(9,830) | | Net cash used in financing activities | $(431) | $(318) | | Net Change in Cash | $39,382 | $17,598 | | Cash, end of period | $85,642 | $52,247 | [Non-GAAP Financial Measures & Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) Reconciliations of non-GAAP measures like Adjusted Net Income and EBITDA provide insights into core financial performance [Reconciliation of Net Income to Adjusted Net Income](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Q2 2025 GAAP Net Income of $3.3 million adjusted to $6.0 million, excluding non-recurring items for comparability Reconciliation of Net Income to Adjusted Net Income (Q2 2025) | Description | Amount (in thousands) | | :--- | :--- | | **Net Income (GAAP)** | **$3,263** | | Impairment of long-lived assets | $1,204 | | (Gain) on sale of assets | $(1,274) | | Employee separation costs | $638 | | Unpermitted discharge penalty | $2,155 | | **Adjusted Net Income (Non-GAAP)** | **$5,986** | [Reconciliation of Net Income to Adjusted EBITDA](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 significantly increased to $16.4 million, reflecting core operating performance Reconciliation of Net Income to Adjusted EBITDA (Q2 2025 vs Q2 2024) | Description | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | **Net Income (Loss) (GAAP)** | **$3,263** | **$(833)** | | Total adjustments | $13,128 | $10,068 | | **Adjusted EBITDA (Non-GAAP)** | **$16,391** | **$9,235** | [Reconciliation to Average Net Realized Sales Price per Ton](index=16&type=section&id=Reconciliation%20to%20Average%20Net%20Realized%20Sales%20Price%20per%20Ton) Average net realized sales price per ton for Q2 2025 was $361 for Potash and $368 for Trio®, after adjustments Average Net Realized Sales Price per Ton (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Potash | $361 | $405 | | Trio® | $368 | $314 | [Disaggregation of Revenue and Segment Data](index=17&type=section&id=Disaggregation%20of%20Revenue%20and%20Segment%20Data) Detailed revenue breakdown by product and segment highlights Trio® and Potash as primary gross margin drivers [Revenue by Product and Segment](index=17&type=section&id=Revenue%20by%20Product%20and%20Segment) Q2 2025 total revenue of $71.5 million was primarily driven by Trio® ($33.2 million) and Potash ($27.7 million) sales Total Revenue by Product (Q2 2025) | Product | Revenue (in thousands) | | :--- | :--- | | Potash | $27,741 | | Trio® | $33,192 | | Water | $587 | | Salt | $3,189 | | Magnesium Chloride | $1,623 | | Brine Water | $2,438 | | Other | $2,702 | | **Total Revenue** | **$71,472** | [Segment Gross Margin Analysis](index=19&type=section&id=Segment%20Gross%20Margin%20Analysis) Trio® segment led Q2 2025 gross margin at $8.1 million, contributing to $14.3 million consolidated gross margin Gross Margin by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Potash | $4,858 | $3,312 | | Trio® | $8,086 | $2,182 | | Oilfield Solutions | $1,343 | $2,130 | | **Consolidated** | **$14,287** | **$7,624** |
Intrepid Potash: Potential Shareholder Returns And Several Catalysts
Seeking Alpha· 2025-06-24 01:24
Core Insights - Intrepid Potash (NYSE: IPI) is currently trading at a value that reflects its equity, with significant growth in production, cost improvements, and no debt, making it an attractive option for potential buyers at a discount [1] Group 1: Company Overview - Intrepid Potash has experienced substantial growth in production in recent years [1] - The company has implemented cost improvements that enhance its operational efficiency [1] - Intrepid Potash holds key US assets that could attract potential buyers [1] Group 2: Financial Position - The company operates with no debt, which strengthens its financial stability [1] - The current trading value is considered a significant discount compared to its potential [1]
Intrepid Potash(IPI) - 2025 Q1 - Quarterly Report
2025-05-06 17:25
[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) For the first quarter ended March 31, 2025, Intrepid Potash reported a net income of $4.6 million, a significant turnaround from a net loss of $3.1 million in the same period of 2024, driven by higher sales volumes in both the Potash and Trio® segments [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Account | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | | :--- | :--- | :--- | | **Total Current Assets** | 198.9 | 183.8 | | **Total Assets** | **601.3** | **594.5** | | **Total Current Liabilities** | 38.5 | 38.0 | | **Total Liabilities** | 121.8 | 120.1 | | **Total Stockholders' Equity** | **479.5** | **474.4** | - Cash and cash equivalents increased to **$45.7 million** as of March 31, 2025, from **$41.3 million** at the end of 2024[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Sales | 97.8 | 79.3 | +23.3% | | Gross Margin | 14.6 | 6.4 | +127.0% | | Operating Income (Loss) | 5.0 | (4.3) | Turnaround | | **Net Income (Loss)** | **4.6** | **(3.1)** | **Turnaround** | | **Diluted EPS** | **$0.35** | **($0.24)** | **Turnaround** | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total stockholders' equity increased from **$474.4 million** at December 31, 2024, to **$479.5 million** at March 31, 2025, primarily driven by a net income of **$4.6 million** and stock-based compensation of **$1.1 million**[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | 10.9 | 41.5 | | Net cash used in investing activities | (5.7) | (6.6) | | Net cash used in financing activities | (0.9) | (5.0) | - The significant decrease in cash from operating activities YoY was mainly due to a **$44.4 million** inflow from deferred other income in Q1 2024, which was not repeated in Q1 2025[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates through three segments: Potash, Trio®, and Oilfield Solutions, delivering minerals for agriculture, animal feed, and the oil and gas industry[17](index=17&type=chunk)[19](index=19&type=chunk) - Under a Cooperative Development Agreement (CDA) with XTO, the company received a **$50.0 million** initial fee, recognized as other operating income on a straight-line basis over the agreement term ending February 2046, with **$1.1 million** recognized for Q1 2025[29](index=29&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - The company is involved in a class action lawsuit alleging failure to properly compensate employees for donning and doffing personal protective equipment, with alleged damages exceeding **$5 million**, and is awaiting a New Mexico Supreme Court decision on a water rights case that could result in a repayment liability[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) | Segment | Q1 2025 Sales ($ millions) | Q1 2025 Gross Margin ($ millions) | | :--- | :--- | :--- | | Potash | 43.6 | 2.5 | | Trio® | 49.8 | 10.4 | | Oilfield Solutions | 4.4 | 1.7 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the improved Q1 2025 results to strong sales volumes for both Potash (up 39%) and Trio® (up 21%), generating a gross margin of **$14.6 million**, and plans **$36 million to $42 million** in capital investments for 2025, maintaining sufficient liquidity with **$45.7 million** in cash and no credit facility borrowings [Significant Business Trends and Activities](index=27&type=section&id=Significant%20Business%20Trends%20and%20Activities) - Potash sales volume increased **39%** in Q1 2025 vs. Q1 2024, though the average net realized sales price per ton decreased to **$312** from **$395**[99](index=99&type=chunk) - Trio® sales volume increased **21%** in Q1 2025 vs. Q1 2024, and the average net realized sales price per ton increased to **$345** from **$300**[102](index=102&type=chunk) - A key strategic project is the HB AMAX Cavern, with an estimated capital investment of **$4.5 million** to drill a sample well, expected to be completed in July 2025[104](index=104&type=chunk) [Consolidated Results of Operations](index=29&type=section&id=Consolidated%20Results%20of%20Operations) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $97.8M | $79.3M | | Gross Margin | $14.6M | $6.4M | | Net Income (Loss) | $4.6M | ($3.1M) | - The **$18.5 million (23%)** increase in total sales was driven by a **$13.4 million** increase in Trio® segment sales and a **$6.0 million** increase in potash segment sales[107](index=107&type=chunk) - Cost of goods sold increased by **$4.4 million**, but lower per-ton costs for both potash and Trio® contributed to the significant improvement in gross margin[110](index=110&type=chunk)[113](index=113&type=chunk) [Segment Analysis](index=32&type=section&id=Segment%20Analysis) | Potash Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $43.6M | $37.6M | | Gross Margin | $2.5M | $5.6M | | Sales Volume (k tons) | 103 | 74 | | Avg. Net Realized Price/ton | $312 | $395 | | Trio® Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $49.8M | $36.5M | | Gross Margin (Deficit) | $10.4M | ($1.1M) | | Sales Volume (k tons) | 110 | 91 | | Avg. Net Realized Price/ton | $345 | $300 | - The Oilfield Solutions segment sales decreased by **$0.9 million** to **$4.4 million** in Q1 2025, driven by a **$0.7 million** decrease in water sales due to reduced oilfield activity[133](index=133&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, the company had **$45.7 million** in cash and cash equivalents and no borrowings outstanding under its **$150 million** revolving credit facility[146](index=146&type=chunk)[152](index=152&type=chunk) - The company expects to make capital investments of **$36 million to $42 million** in 2025, primarily for sustaining capital[145](index=145&type=chunk) - No shares were repurchased in Q1 2025 under the share repurchase program; approximately **$13 million** remains available under the authorization[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposure since its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the company's market risk exposure since December 31, 2024[159](index=159&type=chunk) [Controls and Procedures](index=40&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of March 31, 2025[160](index=160&type=chunk) - No changes occurred in internal control over financial reporting during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal controls[161](index=161&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 15 of the financial statements for detailed information regarding ongoing litigation, disputes, and regulatory proceedings - For information regarding legal proceedings, the report refers to Note 15 - Commitments and Contingencies in the financial statements[164](index=164&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20Risk%20Factors) The company states there have been no material changes to its risk factors since its 2024 Annual Report, except for highlighting the potential impact of new U.S. tariffs and retaliatory tariffs from other countries, which could increase costs and affect customer purchasing decisions - A new risk factor has been highlighted concerning the potential adverse effects of U.S. tariffs announced in April 2025 and possible retaliatory tariffs by other countries[167](index=167&type=chunk)[168](index=168&type=chunk) - These tariffs may affect raw material costs, customer purchasing decisions, and increase overall operating costs[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company withheld 24,780 shares of common stock to cover employee withholding taxes upon the vesting of restricted stock, with no shares repurchased under the publicly announced share repurchase program, leaving approximately $13 million available - In Q1 2025, **24,780 shares** were withheld to satisfy employee tax obligations on vested restricted stock, which is treated as an issuer purchase but is not part of the formal buyback program[171](index=171&type=chunk) - The company did not repurchase any shares under its **$35 million** share repurchase program during the first quarter of 2025, with approximately **$13 million** remaining authorized for future repurchases[171](index=171&type=chunk) [Defaults Upon Senior Securities](index=43&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[172](index=172&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company affirms its commitment to a safe work environment and compliance with safety regulations, with detailed information regarding mine safety violations provided in Exhibit 95.1 of the report - The company's safety programs aim to eliminate accidents and comply with all health and safety regulations, including those from MSHA and OSHA[173](index=173&type=chunk) - Detailed information concerning mine safety violations and other regulatory matters is provided in Exhibit 95.1 to the Form 10-Q[174](index=174&type=chunk) [Other Information](index=43&type=section&id=ITEM%205.%20Other%20Information) The company reports that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of 2025 - During the three months ended March 31, 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement[175](index=175&type=chunk) [Exhibits](index=44&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including a Cooperation Agreement, officer certifications, and mine safety disclosures - The report includes several exhibits, such as officer certifications (31.1, 31.2, 32.1, 32.2), a Cooperation Agreement (10.1), and the Mine Safety Disclosure Exhibit (95.1)[176](index=176&type=chunk)
Intrepid Potash(IPI) - 2025 Q1 - Earnings Call Transcript
2025-05-06 17:02
Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $16.6 million and adjusted net income of $4.6 million, compared to adjusted EBITDA of $7.7 million and an adjusted net loss of $3.1 million in the prior year, marking significant improvements in profitability [6][7] - Cost of Goods Sold (COGS) per ton for potash improved by 17% from the 2023 baseline and by 25% from the peak in Q4 2023, coming in at $313 per ton [7] - COGS per ton for Trio was $235, representing a 22% improvement compared to the previous year's first quarter [8] Business Line Data and Key Metrics Changes - Potash production in Q1 2025 was 93,000 tons, an increase of 6,000 tons year-over-year, with a 40% increase in tons sold despite a 20% decrease in average net realized pricing [13] - Trio achieved a quarterly sales record of 110,000 tons, with an average pricing increase to $345 per ton [9] - The Oilfield Solutions segment generated revenue of $4.4 million with a gross margin of approximately 38% [15] Market Data and Key Metrics Changes - Potash prices increased by $55 per ton and Trio prices by $40 per ton during Q1 2025 due to strong demand and tight supplies [10] - Global potash demand is returning to a trend line growth of approximately 2% per year, with a balanced market expected heading into the second half of 2025 [10][11] - U.S. agriculture exports for corn increased by about 25% year-to-date, supporting forecasts of low crop inventories [11] Company Strategy and Development Direction - The company is focused on revitalizing core assets and improving unit economics, which has positively impacted production and profitability [7][10] - Future capital expenditures are projected between $36 million to $42 million, primarily for sustaining capital [17] - The company aims to maintain consistent and predictable performance while controlling costs and improving production volumes [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potash and agriculture markets, citing beneficial tariff treatments and a weakening dollar supporting U.S. agriculture exports [11][12] - The company remains well-positioned with a debt-free balance sheet and constructive potash fundamentals, expecting to continue positive momentum into the rest of 2025 [18] Other Important Information - The company expects potash production for 2025 to be close to 285,000 to 295,000 tons, with improvements anticipated from the new primary pond in Wendover [14] - The permitting process for a sample well is expected to be completed by Q2, with commissioning by July [17] Q&A Session Summary Question: Potash pricing expectations for Q2 - Management explained that Q2 pricing is projected at $350 to $360 per ton, reflecting a differential due to higher fee contracts in Q4 of the previous year [20][21] Question: Production volume expectations for the rest of the year - Management indicated that production forecasts are based on recent projects and the Wendover facility, with a focus on maintaining production levels [23][25] Question: Cost outlook for Trio beyond this year - Management noted that while improvements in cost per ton are expected, there may be a slight uptick in costs due to general price increases and lower production in the second half of the year [26][28] Question: Assessment of company performance and focus areas - Management highlighted the importance of maintaining focus on core assets and consistent performance, aiming for predictable cash flows [30][32] Question: Cash flow generation and capital allocation - Management confirmed that Q2 is typically the best cash flow generation quarter, with discussions on capital allocation becoming more relevant as performance improves [38][41]
Intrepid Potash(IPI) - 2025 Q1 - Earnings Call Transcript
2025-05-06 17:02
Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $16.6 million and adjusted net income of $4.6 million, compared to adjusted EBITDA of $7.7 million and an adjusted net loss of $3.1 million in the prior year, marking significant improvements in profitability [6][10][13] - Cost of Goods Sold (COGS) per ton for potash improved by 17% from the 2023 baseline and 25% from the peak in Q4 2023, coming in at $313 per ton [7][10] - COGS per ton for Trio was $235, representing a 22% improvement compared to the previous year's first quarter [8][10] Business Line Data and Key Metrics Changes - Potash production in Q1 2025 was 93,000 tons, an increase of 6,000 tons year-over-year, with a 40% increase in tons sold despite a 20% decrease in average net realized pricing [13][14] - Trio achieved a quarterly sales record of 110,000 tons, with an average pricing increase to $345 per ton [9][10] - The Oilfield Solutions segment generated revenue of $4.4 million with a gross margin of approximately 38% [15][16] Market Data and Key Metrics Changes - Potash prices increased by $55 per ton and Trio prices by $40 per ton during Q1 2025 due to strong demand and tight supplies [10][11] - Global potash demand is returning to a trend line growth of approximately 2% per year, with a balanced market expected in the second half of 2025 [10][11] Company Strategy and Development Direction - The company is focused on revitalizing core assets and improving unit economics, which has positively impacted production and profitability [6][7] - Future capital expenditures are projected between $36 million to $42 million, primarily for sustaining capital [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potash and agriculture markets, citing strong U.S. agriculture exports and beneficial tariff treatments [11][12] - The company remains well-positioned with a debt-free balance sheet and expects to continue positive momentum into the rest of 2025 [18] Other Important Information - The company anticipates a solid Q2 2025, with potash sales volumes expected between 60,000 to 70,000 tons at an average net realized sales price of $350 to $360 per ton [17] Q&A Session Summary Question: Potash pricing expectations for Q2 - Management explained that the pricing differential is due to higher fee contracts in Q4 2024, resulting in a projected differential of about $43 per ton for Q2 [20][22] Question: Production volume expectations for the rest of the year - Management indicated that production forecasts are based on recent projects and the Wendover facility, with confidence in their projections despite natural variability [24][26] Question: Cost outlook for Trio - Management noted that while improvements in cost per ton are expected, there will be a slight uptick in costs due to general price increases and lower production in the second half of the year [28][29] Question: Assessment of company performance and focus areas - Management highlighted the importance of maintaining consistency and predictability in operations, with a focus on controlling costs and improving volume [31][34] Question: Cash flow generation and capital allocation - Management confirmed that Q2 is typically the best cash flow generation quarter, with discussions on capital allocation becoming more relevant as performance improves [39][42]
Intrepid Potash(IPI) - 2025 Q1 - Earnings Call Transcript
2025-05-06 16:00
Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $16.6 million and adjusted net income of $4.6 million, compared to adjusted EBITDA of $7.7 million and an adjusted net loss of $3.1 million in the prior year, marking significant improvements in profitability [5][6] - Cost of Goods Sold (COGS) per ton for potash improved by 17% from the 2023 baseline and by 25% from the peak in Q4 2023, coming in at $313 per ton [6] - COGS per ton for Trio was $235, representing a 22% improvement compared to the previous year's first quarter [6] Business Line Data and Key Metrics Changes - Potash production totaled 93,000 tons in Q1 2025, an increase of 6,000 tons year-over-year, with a 40% increase in tons sold despite a 20% decrease in average net realized pricing [11] - Trio achieved a quarterly sales record of 110,000 tons, with an average pricing increase to $345 per ton [7] - The Oilfield Solutions segment generated revenue of $4.4 million with a gross margin of approximately 38% [13] Market Data and Key Metrics Changes - Potash prices increased by $55 per ton and Trio prices by $40 per ton during Q1 2025 due to strong demand and tight supplies [8] - Global potash consumption is returning to a trend line growth of approximately 2% per year, with a balanced outlook heading into the second half of 2025 [9] - U.S. agriculture exports for corn are up by about 25% year-to-date, supporting forecasts of low crop inventories [9] Company Strategy and Development Direction - The company is focused on revitalizing core assets and improving unit economics, which has positively impacted production and profitability [6][10] - The strategy includes maintaining consistent production levels and cost structures to ensure resilience and predictability in operations [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potash and agriculture markets, citing beneficial tariff treatments and a weakening dollar supporting U.S. agriculture exports [9][10] - The company anticipates continued improvements in cash flow and reduced COGS per ton, despite broader market uncertainties [16] Other Important Information - The company expects potash production for 2025 to be between 285,000 to 295,000 tons, with Trio production projected at 235,000 to 245,000 tons [12][13] - Capital expenditures for 2025 are guided at $36 million to $42 million, primarily for sustaining capital [15] Q&A Session Summary Question: Potash pricing expectations for Q2 - Management explained that Q2 pricing is projected at around $355 per ton, reflecting a differential of about $43 per ton compared to Q1 pricing, capturing most of the price uptick [20][21] Question: Production volume expectations for the rest of the year - Management indicated that production forecasts are based on recent projects and the Wendover facility, with a focus on maintaining production levels despite potential variability [23] Question: Outlook for Trio cost improvements - Management noted that while cost improvements are expected to moderate, the current cost structure reflects significant operational efficiencies achieved [27][28] Question: Assessment of company performance and focus areas - Management highlighted the importance of maintaining focus on core assets and consistent performance to drive improvements over the next one to two years [30][32] Question: Cash flow generation and capital allocation - Management confirmed that Q2 is typically the best cash flow generation quarter, with discussions on capital allocation becoming more relevant as performance improves [42]
Intrepid Potash(IPI) - 2025 Q1 - Quarterly Results
2025-05-05 20:46
[First Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Intrepid reported strong first quarter 2025 results, driven by record sales volumes, improved unit economics, and robust Trio® pricing, leading to significant financial improvements [Overall Performance](index=1&type=section&id=Overall%20Performance) Intrepid reported strong first quarter 2025 results, driven by the highest quarterly sales volumes since 2016, improved unit economics, and robust Trio® pricing, leading to a significant year-over-year increase in total sales, a shift from a net loss to net income, and a doubling of adjusted EBITDA - The CEO highlighted that combined sales volumes for potash and Trio® reached **213 thousand tons**, the highest quarterly volume since **Q1 2016** Consolidated adjusted EBITDA of **$16.6 million** was roughly **double** the prior year's figure[4](index=4&type=chunk) - Key drivers for the strong quarter included improving potash and Trio® unit economics, strong Trio® pricing, and high sales volumes supported by strong demand and improving agricultural commodity prices[3](index=3&type=chunk)[4](index=4&type=chunk) Q1 2025 Key Financial & Operational Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Sales ($) | $97.8 million | $79.3 million | | Gross Margin ($) | $14.6 million | $6.4 million | | Net Income (Loss) ($) | $4.6 million | $(3.1) million | | Net Income (Loss) per Diluted Share ($) | $0.35 | $(0.24) | | Adjusted EBITDA ($) | $16.6 million | $7.7 million | | Potash Sales Volumes (thousand tons) | 103 thousand tons | 74 thousand tons | | Trio® Sales Volumes (thousand tons) | 110 thousand tons | 91 thousand tons | [Liquidity and Capital Expenditures](index=2&type=section&id=Liquidity%20and%20Capital%20Expenditures) The company maintains a strong, debt-free balance sheet with $66 million in cash and full availability on its $150 million revolving credit facility Capital expenditures for Q1 2025 were $8.3 million, and the full-year guidance of $36 to $42 million remains unchanged - As of May 2, 2025, the company had **$66 million** in cash and cash equivalents with no outstanding borrowings on its **$150 million** revolving credit facility[7](index=7&type=chunk) - Capital expenditures totaled **$8.3 million** in Q1 2025 The company expects full-year 2025 capital expenditures to be between **$36 million** and **$42 million**, primarily for sustaining capital[8](index=8&type=chunk) [Project & Operational Updates](index=2&type=section&id=Project%20%26%20Operational%20Updates) Intrepid is advancing its HB Solar Solution Mine project in New Mexico, focusing on the AMAX Cavern The company anticipates completing the permitting process for a sample well in Q2 2025, with an estimated capital investment of $4.5 million and commissioning expected in July - The company is working to obtain permits to drill a sample well into the HB AMAX Cavern, a key expansion area for the HB Solar Solution Mine[9](index=9&type=chunk) - The permitting process is expected to finish in **Q2 2025**, with construction and commissioning complete in **July** The estimated capital investment is approximately **$4.5 million**[9](index=9&type=chunk) [Segment Highlights](index=3&type=section&id=Segment%20Highlights) This section details the performance of Intrepid's Potash, Trio®, and Oilfield Solutions segments, highlighting sales, gross margins, and key operational drivers for each [Potash Segment](index=3&type=section&id=Potash) The Potash segment's sales increased by $6.0 million year-over-year, driven by a 39% rise in sales volume that more than compensated for a 21% decline in the average net realized sales price Despite higher production and a 10% improvement in cost of goods sold per ton, the segment's gross margin decreased to $2.5 million from $5.6 million due to the lower pricing environment - The increase in sales was primarily driven by a **39% increase** in sales volumes, which was offset by a **21% decrease** in the average net realized sales price per ton[10](index=10&type=chunk) - Cost of goods sold (COGS) per ton improved by **10%** to **$313** in Q1 2025 from **$349** in Q1 2024, mainly due to increased production[12](index=12&type=chunk) Potash Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $43.6 million | $37.6 million | | Gross Margin ($) | $2.5 million | $5.6 million | | Sales Volumes (thousand tons) | 103 thousand tons | 74 thousand tons | | Production Volumes (thousand tons) | 93 thousand tons | 87 thousand tons | | Avg. Net Realized Sales Price ($ per ton) | $312 per ton | $395 per ton | [Trio® Segment](index=4&type=section&id=Trio%C2%AE) The Trio® segment delivered exceptional results, with sales increasing 37% to $49.8 million This growth was fueled by a 21% increase in sales volume and a 15% rise in the average net realized sales price The segment's profitability saw a dramatic turnaround, generating a gross margin of $10.4 million compared to a deficit of $1.1 million in the prior-year quarter, aided by a 22% improvement in COGS per ton - Trio® sales increased due to a **21% increase** in tons sold and a **15% increase** in the average net realized sales price, driven by strong in-season demand and a tight domestic sulfate market[14](index=14&type=chunk) - The segment's cost of goods sold (COGS) per ton improved by **22%**, falling to **$235** in Q1 2025 from **$300** in Q1 2024[14](index=14&type=chunk) Trio® Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $49.8 million | $36.5 million | | Gross Margin (Deficit) ($) | $10.4 million | $(1.1) million | | Sales Volume (thousand tons) | 110 thousand tons | 91 thousand tons | | Production Volume (thousand tons) | 63 thousand tons | 54 thousand tons | | Avg. Net Realized Sales Price ($ per ton) | $345 per ton | $300 per ton | [Oilfield Solutions Segment](index=4&type=section&id=Oilfield%20Solutions) The Oilfield Solutions segment reported a decline in performance, with sales decreasing by $0.9 million to $4.4 million and gross margin falling by $0.3 million to $1.7 million The downturn was primarily caused by a reduction in water sales due to decreased oilfield activity in the Intrepid South area - Segment sales decreased by **$0.9 million** compared to the prior year, primarily due to a **$0.7 million** decrease in water sales[15](index=15&type=chunk) - The decrease in water sales was attributed to reduced oilfield activity on and around the Intrepid South property during the first quarter of 2025[16](index=16&type=chunk) Oilfield Solutions Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $4.4 million | $5.3 million | | Gross Margin ($) | $1.7 million | $2.0 million | [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated statements of operations, balance sheets, and cash flows, detailing financial performance and position for the period [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's statement of operations reflects a significant improvement, transitioning from a net loss of $3.1 million in Q1 2024 to a net income of $4.6 million in Q1 2025 This turnaround was driven by a 23% increase in sales to $97.8 million and a more than doubling of the gross margin to $14.6 million Consolidated Statements of Operations Highlights | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Sales | $97,760 | $79,287 | | Gross Margin | $14,602 | $6,434 | | Operating Income (Loss) | $4,998 | $(4,306) | | Net Income (Loss) | $4,606 | $(3,130) | | Diluted Income (Loss) Per Share | $0.35 | $(0.24) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Intrepid's balance sheet showed total assets of $601.3 million and total liabilities of $121.8 million, resulting in total stockholders' equity of $479.5 million Compared to year-end 2024, cash and cash equivalents increased, while inventory levels decreased Consolidated Balance Sheet Highlights | Line Item | March 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $45,668 | $41,309 | | Total current assets | $198,921 | $183,763 | | Total Assets | $601,276 | $594,520 | | Total current liabilities | $38,497 | $38,003 | | Total Liabilities | $121,823 | $120,128 | | Total Stockholders' Equity | $479,453 | $474,392 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was $10.9 million, a significant decrease from $41.5 million in the prior-year period, which had benefited from a one-time $45 million payment Net cash used in investing activities was $5.7 million, primarily for capital expenditures - The significant year-over-year decrease in cash flow from operations is primarily because the Q1 2024 figure included a **$45 million** payment related to the Cooperative Development Agreement with XTO[6](index=6&type=chunk)[27](index=27&type=chunk) Consolidated Statements of Cash Flows Highlights | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,917 | $41,532 | | Net cash used in investing activities | $(5,668) | $(6,577) | | Net cash used in financing activities | $(887) | $(4,957) | | Net Change in Cash | $4,362 | $29,998 | [Non-GAAP Reconciliations & Supplemental Data](index=12&type=section&id=Non-GAAP%20Reconciliations%20%26%20Supplemental%20Data) This section provides reconciliations of GAAP to non-GAAP financial measures, including Adjusted Net Income and Adjusted EBITDA, along with disaggregated revenue and segment data [Reconciliation to Adjusted Net Income (Loss)](index=13&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income%20%28Loss%29) This section reconciles GAAP Net Income to the non-GAAP measure of Adjusted Net Income After adjusting for items such as asset impairment and gains on asset sales, Adjusted Net Income for Q1 2025 was $5.1 million ($0.39 per share), a significant improvement from an Adjusted Net Loss of $1.9 million ($(0.14) per share) in Q1 2024 Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | Line Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $4,606 | $(3,130) | | Adjustments | $480 | $1,205 | | **Adjusted Net Income (Loss)** | **$5,086** | **$(1,925)** | [Reconciliation to Adjusted EBITDA](index=14&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) The reconciliation to Adjusted EBITDA shows a substantial increase in operating performance Adjusted EBITDA for Q1 2025 was $16.6 million, more than double the $7.7 million reported in Q1 2024 This non-GAAP measure adjusts net income for interest, taxes, depreciation, amortization, and other non-core operational items Reconciliation of Net Income (Loss) to Adjusted EBITDA | Line Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $4,606 | $(3,130) | | Total adjustments | $12,002 | $10,859 | | **Adjusted EBITDA** | **$16,608** | **$7,729** | [Reconciliation to Average Net Realized Sales Price per Ton](index=15&type=section&id=Reconciliation%20to%20Average%20Net%20Realized%20Sales%20Price%20per%20Ton) This section provides the calculation for the non-GAAP metric of average net realized sales price per ton, which adjusts segment sales for byproduct sales and freight costs For Q1 2025, the average net realized sales price was $312 per ton for Potash and $345 per ton for Trio® Average Net Realized Sales Price per Ton Calculation | Segment | Q1 2025 ($ per ton) | Q1 2024 ($ per ton) | | :--- | :--- | :--- | | Potash | $312 | $395 | | Trio® | $345 | $300 | [Disaggregation of Revenue and Segment Data](index=16&type=section&id=Disaggregation%20of%20Revenue%20and%20Segment%20Data) This supplemental data offers a detailed breakdown of revenue by product type within each operating segment and shows the calculation of gross margin for each segment For Q1 2025, Trio® was the largest revenue contributor at $49.8 million, followed by Potash at $43.6 million Q1 2025 Revenue by Segment (in thousands) | Segment | Total Revenue (in thousands) | | :--- | :--- | | Potash Segment | $43,577 | | Trio® Segment | $49,842 | | Oilfield Solutions Segment | $4,400 | | **Total** | **$97,760** | Q1 2025 Gross Margin by Segment (in thousands) | Segment | Gross Margin (in thousands) | | :--- | :--- | | Potash | $2,503 | | Trio® | $10,434 | | Oilfield Solutions | $1,665 | | **Consolidated** | **$14,602** |
Intrepid Potash (IPI) Is Up 14.34% in One Week: What You Should Know
ZACKS· 2025-04-30 17:00
Company Overview - Intrepid Potash (IPI) currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [2][11] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3][11] Price Performance - IPI shares have increased by 14.34% over the past week, outperforming the Zacks Fertilizers industry, which rose by 5.63% during the same period [5] - Over the past month, IPI's price change is 13.58%, compared to the industry's 8.07% [5] - In the last quarter, IPI shares have gained 25.15%, and over the past year, they have increased by 66.7%, while the S&P 500 has moved -7.64% and 10.16%, respectively [6] Trading Volume - The average 20-day trading volume for IPI is 194,374 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Estimates - In the past two months, one earnings estimate for IPI has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from -$0.45 to -$0.16 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Considering the positive price trends and earnings outlook, IPI is positioned as a promising momentum pick, making it a stock to watch for potential near-term gains [11]