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Intrepid Potash(IPI) - 2025 Q1 - Quarterly Results
Intrepid PotashIntrepid Potash(US:IPI)2025-05-05 20:46

First Quarter 2025 Financial & Operational Highlights 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 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 $16.6 million was roughly double the prior year's figure4 - Key drivers for the strong quarter included improving potash and Trio® unit economics, strong Trio® pricing, and high sales volumes supported by strong demand and improving agricultural commodity prices34 Q1 2025 Key Financial & Operational Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Sales ($) | $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 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 facility7 - 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 capital8 Project & Operational Updates 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 Mine9 - 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 million9 Segment Highlights 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 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 ton10 - Cost of goods sold (COGS) per ton improved by 10% to $313 in Q1 2025 from $349 in Q1 2024, mainly due to increased production12 Potash Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $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 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 market14 - The segment's cost of goods sold (COGS) per ton improved by 22%, falling to $235 in Q1 2025 from $300 in Q1 202414 Trio® Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $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 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 $0.7 million decrease in water sales15 - The decrease in water sales was attributed to reduced oilfield activity on and around the Intrepid South property during the first quarter of 202516 Oilfield Solutions Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $4.4 million | $5.3 million | | Gross Margin ($) | $1.7 million | $2.0 million | Financial Statements 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 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 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 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 XTO627 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 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) 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 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 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 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 |