NYSE$IPI

Intrepid Potash Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Intrepid Potash reported a decrease in sales and net income compared to the second quarter of 2022, driven by lower pricing for key products and an increase in cost of goods sold, while successfully executing key growth projects.

Intrepid Potash reported second quarter 2023 sales of $81.0 million, a 12% decrease from the previous year. Net income totaled $4.3 million, or $0.33 per diluted share, a significant decrease from $23.7 million, or $1.74 per diluted share, in the second quarter of 2022. Adjusted EBITDA was $15.8 million, down from $41.5 million in the same prior year period.

  • Total sales reached $81.0 million, compared to $91.7 million in Q2 2022, with decreased average net realized sales prices for potash and Trio®.
  • Net income was $4.3 million, or $0.33 per diluted share, a decrease from $23.7 million, or $1.74 per diluted share, in Q2 2022.
  • Adjusted EBITDA totaled $15.8 million, compared to $41.5 million in Q2 2022.
  • Potash sales volumes increased to 79 thousand tons, up from 56 thousand tons in the prior year, while Trio® sales volumes increased to 63 thousand tons, up from 59 thousand tons in the prior year.

Headline financials

Total Revenue

$81M

Previous: $91.7M-11.7%
EPS (adj)

$0.33

Previous: $1.82-81.9%
Adjusted EBITDA

$15.8M

Previous: $41.5M-61.9%
Potash Production

12.0K

Previous: 25.0K-52.0%
Trio Production

58.0K

Previous: 58.0K+0.0%
Capital Expenditures

$20.9M

Previous: $16M+30.8%
Free Cash Flow

$9.6M

Previous: $33.1M-71.0%
Net Income

$4.3M

Previous: $23.7M-81.9%
Operating Income

$7.27M

Previous: $31.8M-77.1%
Gross Profit

$15.4M

Previous: $41.8M-63.2%
Cash & Equivalents

$15.6M

Previous: $85M-81.6%
Total Assets

$796M

Previous: $811M-1.8%
Stock-Based Comp

$1.8M

Previous: $1.39M+29.6%

Revenue & EPS history

Intrepid Potash · Revenue · Quarterly

$81M

Q2 2023-11.7%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Intrepid Potash · $81.1M total across 3 segments · Q2 2023

  • Potash
    $47.3M-3.2%
  • Trio
    $28.7M-18.9%
  • Oilfield Solutions
    $5.11M-32.0%

Forward guidance

The company anticipates a strong fall application season in the U.S., supported by crop futures prices and attractive fertilizer pricing, expecting robust demand underpinned by solid farmer economics.

Tailwinds

  • Successful project execution, particularly in potash assets, to maximize brine availability and residence time.
  • Improvements in injection rates are expected to lead to production benefits next year.
  • Strong potash sales volumes, representing an approximately 40% increase compared to the second quarter of 2022.
  • Fertilizer pricing continues to drive strong margins for the Company.
  • Expectation of robust demand underpinned by solid farmer economics was evident in improved sales volumes in the first half of the year.

Headwinds

  • Lower pricing for key products.
  • Increase in cost of goods sold.
  • Oilfield Solutions segment sales decreased $2.4 million, or 32%, primarily driven by decreases in water sales and surface use revenues.
  • Trio segment gross margin totaled $1.2 million, which compares to $13.1 million in the second quarter of 2022.
  • Potash production totaled 12 thousand tons in the second quarter of 2023, which compares to 25 thousand tons produced in the same prior year period

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 2023

Historical avgQ2 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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