NYSE$IPI
Intrepid Potash Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Reported an increase in sales and improved profitability driven by higher prices for potash and Trio.
Intrepid Potash reported strong financial results for Q2 2022, with sales of $91.7 million, a net income of $23.7 million, and adjusted EBITDA of $41.5 million. The company benefited from high prices for potash and Trio, and is progressing on production improvement projects and a new frac sand project.
- Total sales increased to $91.7 million, up from $67.9 million in Q2 2021, driven by higher potash and Trio prices.
- Net income improved to $23.7 million ($1.74 per diluted share), compared to $19.5 million in Q2 2021.
- Adjusted EBITDA increased to $41.5 million, a $24.6 million improvement over the prior year.
- The company had approximately $85 million in cash and cash equivalents and $74 million available under its revolving credit facility as of July 31, 2022.
Headline financials
Revenue & EPS history
Intrepid Potash · Revenue · Quarterly
$91.7M
Revenue by segment
Intrepid Potash · $91.8M total across 3 segments · Q2 2022
- Potash$48.8M+29.5%53.2%
- Trio$35.5M+31.7%38.6%
- Oilfield Solutions$7.51M+125.5%8.2%
Forward guidance
The outlook for both the industry and Intrepid remains strong. The global fertilizer supply challenges - particularly for potash - remains unabated.
Tailwinds
- Even with the announced potash supply additions, we believe the lack of supply versus historical levels of demand will result in potash prices remaining elevated.
- Forward crop prices still point to historically strong US farmer economics.
- Intrepid generated adjusted EBITDA of $91.6 million on total sales of $196.1 million, for adjusted EBITDA margins of 47% in the first half of the year
- First half 2022 cash flow from operations totaled $83.2 million and we ended July with $85 million of cash and cash equivalents for total liquidity of $159 million.
- For 2022, we have budgeted for approximately $65 million to $75 million of capital spending, with a roughly 50-50 split between maintenance and growth.
Headwinds
- After nearly 18 months of strong demand in the potash market, we expect buyers will approach second half with significantly more restraint given inventory carryover following a compressed spring
- Heightened concerns over the increased credit and inventory exposure they face at current price levels.
- Below average evaporation rates across our facilities in 2021 led to decreased potash production during the second half of 2021 and the first half of 2022.
- Customers were also reluctant to replenish potash inventory during the back half of the second quarter of 2022, choosing instead to wait for summer programs with the expectation of those being announced during the third quarter of 2022.
- Trio customers were reluctant to hold much inventory exiting the spring season.
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 Q2 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
| Quarter | Report date | Reaction (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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