
PART I - FINANCIAL INFORMATION Condensed Consolidated Financial Statements (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 $3.1 million in the same period of 2024, driven by higher sales volumes in both the Potash and Trio® segments Condensed Consolidated Balance Sheets | Account | March 31, 2025 ($ 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 $41.3 million at the end of 20249 Condensed Consolidated Statements of Operations | Metric | Q1 2025 ($ 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 - 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 $1.1 million12 Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Q1 2025 ($ 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 202514 Notes to Condensed Consolidated Financial Statements - The company operates through three segments: Potash, Trio®, and Oilfield Solutions, delivering minerals for agriculture, animal feed, and the oil and gas industry1719 - 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 2025293334 - 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 $5 million, and is awaiting a New Mexico Supreme Court decision on a water rights case that could result in a repayment liability697172 | Segment | Q1 2025 Sales ($ 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 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 - Potash sales volume increased 39% in Q1 2025 vs. Q1 2024, though the average net realized sales price per ton decreased to $312 from $39599 - Trio® sales volume increased 21% in Q1 2025 vs. Q1 2024, and the average net realized sales price per ton increased to $345 from $300102 - 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 2025104 Consolidated Results of Operations | 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 sales107 - 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 margin110113 Segment Analysis | 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 activity133 Liquidity and Capital Resources - 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 facility146152 - The company expects to make capital investments of $36 million to $42 million in 2025, primarily for sustaining capital145 - No shares were repurchased in Q1 2025 under the share repurchase program; approximately $13 million remains available under the authorization154 Quantitative and Qualitative Disclosures About Market Risk 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, 2024159 Controls and Procedures 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, 2025160 - No changes occurred in internal control over financial reporting during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal controls161 PART II - OTHER INFORMATION Legal Proceedings 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 statements164 Risk Factors 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 countries167168 - These tariffs may affect raw material costs, customer purchasing decisions, and increase overall operating costs168 Unregistered Sales of Equity Securities and Use of Proceeds 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 program171 - 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 repurchases171 Defaults Upon Senior Securities The company reported no defaults upon senior securities during the period - None172 Mine Safety Disclosures 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 OSHA173 - Detailed information concerning mine safety violations and other regulatory matters is provided in Exhibit 95.1 to the Form 10-Q174 Other Information 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 arrangement175 Exhibits 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