NYSE$IPI

Intrepid Potash Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Intrepid reported strong first quarter results driven by higher prices for potash and Trio, with adjusted EBITDA reaching the best figure since Q3 2012.

Intrepid Potash, Inc. reported a significant increase in sales and profitability for Q1 2022. Total sales increased to $104.4 million, net income reached $31.4 million, and adjusted EBITDA was $50.2 million. The company benefited from higher realized prices for potash and Trio® and is implementing projects to improve production volume.

  • Total sales increased to $104.4 million compared to $71.5 million in Q1 2021, driven by higher potash and Trio net realized sales prices.
  • Net income was $31.4 million ($2.31 per share), a $29.0 million improvement compared to Q1 2021.
  • Gross margin improved by $38.1 million year-over-year to $47.2 million.
  • Adjusted EBITDA was $50.2 million, a $37.3 million improvement over the prior year.

Headline financials

Total Revenue

$104M

Previous: $71.5M+46.1%
EPS (adj)

$2.32

Previous: $0.18+1188.9%
Adjusted EBITDA

$50.2M

Previous: $12.9M+289.8%
Potash Production

103.0K

Previous: 113+91050.4%
Trio Production

65.0K

Previous: 56+115971.4%
Capital Expenditures

$6.8M

Previous: $2.36M+187.9%
Free Cash Flow

$27.3M

Previous: $19.1M+42.9%
Net Income

$31.4M

Previous: $2.45M+1181.1%
Operating Income

$40.1M

Previous: $2.87M+1296.9%
Gross Profit

$47.2M

Previous: $9.11M+418.0%
Cash & Equivalents

$60.1M

Previous: $36M+67.1%
Total Assets

$796M

Previous: $565M+40.8%
Stock-Based Comp

$1.17M

Previous: $890K+31.1%

Revenue & EPS history

Intrepid Potash · Revenue · Quarterly

$104M

Q1 2022+46.1%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Intrepid Potash · $104M total across 3 segments · Q1 2022

  • Potash
    $56.4M+29.5%
  • Trio
    $41.1M+73.3%
  • Oilfield Solutions
    $7M+64.6%

Forward guidance

Intrepid anticipates a positive outlook for the remainder of 2022 and the next few years, driven by a strong supply-demand balance for potash. Improvement projects are underway to increase potash production volume, and steady demand is expected due to current crop prices.

Tailwinds

  • Supply-demand balance for potash should continue to support strong economics.
  • Strong international pricing continues to absorb supply, helping create a US market with minimal excess swing capacity in the near-term.
  • Multiple improvement projects at potash facilities are beginning, including a new injection pipeline at HB, another potash cavern in Moab, and upgraded wells at the Wendover facility.
  • These projects are expected to add production volume as early as the spring of 2023 and continue to increase through the next few evaporation seasons.
  • Current crop prices should continue to drive steady demand in the US.

Headwinds

  • Sanctions on Belarus took effect in April, impacting the potash supply.
  • Below-average 2021 production season led to fewer tons in inventory and less potash available in ponds.
  • Unfavorable weather in various parts of the U.S. in the first quarter delayed planting.
  • Reduced sales volumes due to fewer tons available.
  • The Carlsbad, New Mexico area, where the HB solar solution mining facility is located, experienced unusually wet, humid weather, which limited evaporation and extraction rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.8%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.1%

Avg return

30 days after

51%

34 / 67 earnings

Positive

+19.3%

Q3 2018

Best reaction

-69.9%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.4%+23.7%-7.4%
Q4 2025+10.6%+13.3%+21.5%
Q3 2025-2.3%-4.1%-2.4%
Q2 2025-5.3%-6.8%-8.4%
Q1 2025+17.3%+17.0%+16.4%
Q4 2024-2.0%+8.0%+17.4%
Q3 2024+13.5%+9.1%+6.7%
Q1 2024+15.3%+19.7%+17.9%
Q4 2023+7.1%-4.2%+1.6%
Q3 2023-7.3%-8.5%-2.7%
Q2 2023-7.8%-1.5%+2.1%
Q1 2023-16.6%-21.2%-24.9%
Q4 2022-7.9%-13.5%-19.8%
Q3 2022-24.4%-20.5%-19.8%
Q2 2022-2.4%-3.0%+3.9%
Q1 2022+8.4%-11.4%-19.8%
Q4 2021+4.6%+19.3%+25.4%
Q3 2021-13.2%-8.0%-18.7%
Q2 2021+12.3%+13.2%+1.7%
Q1 2021+10.8%-16.3%-8.4%
Q4 2020+5.3%+3.3%+9.7%
Q3 2020-8.0%-12.2%+37.2%
Q2 2020-5.3%+2.2%+6.9%
Q1 2020-6.4%-7.3%+18.2%
Q4 2019+1.1%-13.6%-57.6%
Q3 2019-14.0%-21.2%-33.0%
Q2 2019-7.3%-8.5%-11.0%
Q1 2019+0.3%-1.4%-7.5%
Q4 2018+2.9%+3.7%+1.6%
Q3 2018+19.3%+20.8%+2.7%
Q2 2018-13.6%-19.6%-18.9%
Q1 2018+13.5%+11.1%+14.7%
Q4 2017-12.9%-6.3%-4.2%
Q3 2017+5.5%+5.0%-2.9%
Q2 2017+15.2%+6.3%+22.8%
Q1 2017+3.4%+18.5%+27.5%
Q4 2016-6.0%-12.4%-21.2%
Q3 2016+6.2%-6.2%+23.0%
Q2 2016+11.4%+6.5%+13.0%
Q1 2016+8.8%
Q4 2015-69.9%
Q3 2015-28.1%
Q2 2015-4.0%
Q1 2015+5.9%
Q4 2014+4.1%
Q3 2014-9.9%
Q2 2014+0.3%
Q1 2014+4.2%
Q4 2013-11.4%
Q3 2013+1.6%
Q2 2013-5.9%
Q1 2013-7.0%
Q4 2012-5.7%
Q3 2012+2.8%
Q2 2012-5.7%
Q1 2012-11.6%
Q4 2011+2.9%
Q3 2011-5.0%
Q1 2010-9.5%
Q2 2011-9.5%
Q1 2011+2.6%
Q4 2008+7.6%
Q3 2009-2.5%
Q3 2010-2.5%
Q2 2010+0.4%
Q2 2009+0.4%
Q4 2009+0.4%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro