NYSE$IPI

Intrepid Potash Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Intrepid Potash reported a decrease in sales and net income for Q1 2023 due to lower realized sales prices for potash and Trio, despite increased sales volumes.

Intrepid Potash's Q1 2023 sales decreased by 17% to $86.9 million compared to Q1 2022, with net income significantly dropping to $4.5 million from $31.4 million year-over-year. The decline was primarily due to lower average net realized sales prices for potash and Trio, although sales volumes for both products increased.

  • Total sales decreased by 17% to $86.9 million, compared to $104.4 million in Q1 2022.
  • Net income decreased to $4.5 million (or $0.35 per diluted share) from $31.4 million (or $2.31 per diluted share) in Q1 2022.
  • Potash and Trio sales volumes increased to 89 thousand and 65 thousand tons, respectively.
  • Adjusted EBITDA decreased to $16.4 million from $50.2 million in the same prior year period.

Headline financials

Total Revenue

$86.9M

Previous: $104M-16.7%
EPS (adj)

$0.37

Previous: $2.32-84.1%
Adjusted EBITDA

$16.4M

Previous: $50.2M-67.3%
Potash Production

90.0K

Previous: 103.0K-12.6%
Trio Production

49.0K

Previous: 65.0K-24.6%
Capital Expenditures

$21M

Previous: $6.8M+209.6%
Free Cash Flow

$8.45M

Previous: $27.3M-69.1%
Net Income

$4.51M

Previous: $31.4M-85.6%
Operating Income

$5.37M

Previous: $40.1M-86.6%
Gross Profit

$16.4M

Previous: $47.2M-65.3%
Cash & Equivalents

$9.5M

Previous: $60.1M-84.2%
Total Assets

$801M

Previous: $796M+0.7%
Stock-Based Comp

$1.75M

Previous: $1.17M+49.6%

Revenue & EPS history

Intrepid Potash · Revenue · Quarterly

$86.9M

Q1 2023-16.7%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Intrepid Potash · $87M total across 3 segments · Q1 2023

  • Potash
    $52.5M-7.0%
  • Trio
    $30.3M-26.3%
  • Oilfield Solutions
    $4.25M-39.3%

Forward guidance

Intrepid anticipates steady demand for its products in the second quarter and is focused on the successful execution of its capital projects to improve brine quality and production.

Tailwinds

  • Anticipate steady demand for our products as farmers look to maximize their yields.
  • The recent settlement of a key international contract has also helped establish a pricing floor for potash.
  • In the U.S., we've recently seen increases in pricing as in-season demand has exceeded nearby supply.
  • The conflict in Eastern Europe continues to be a key potash supply risk, adding further pricing support for the industry.
  • We feel that we have the right personnel in place to help ensure we'll deliver improved brine quality and production.

Headwinds

  • Due to the solar evaporation process at our potash facilities, it will take multiple evaporation seasons until we see the full benefit from the HB pipeline and Moab potash cavern projects
  • Permitting delays for Phase 1 of the HB facility project
  • Phase 2 - the in-line pigging system - which is designed to clean the pipeline and prevent scaling, is still being permitted, with construction likely beginning by the end of the year.
  • Sand project permitting process is ongoing.
  • Decreased water sales in Oilfield Solutions segment

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 2023

Historical avgQ1 2023

-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%

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