NYSE$IPI

Intrepid Potash Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Intrepid Potash reported a net loss for Q3 2023, impacted by lower realized sales prices and increased cost of goods sold, despite strong potash and Trio sales volumes.

Intrepid Potash reported a decrease in sales to $54.5 million compared to $74.8 million in Q3 2022. The company experienced a net loss of $7.2 million, a significant change from the net income of $13.1 million in the same quarter last year. Adjusted EBITDA also decreased to $2.2 million from $27.0 million in Q3 2022 due to lower pricing for key products and increased cost of goods sold.

  • Total sales decreased to $54.5 million, compared to $74.8 million in Q3 2022, due to lower average net realized sales prices for potash and Trio.
  • Net loss was $7.2 million (or $0.56 per diluted share), a shift from the net income of $13.1 million (or $0.97 per diluted share) in Q3 2022.
  • Adjusted EBITDA decreased to $2.2 million, down from $27.0 million in the same prior year period.
  • Potash and Trio sales volumes remained strong, with potash volumes matching the prior year and Trio volumes increasing.

Headline financials

Total Revenue

$54.5M

Previous: $74.8M-27.1%
EPS (adj)

-$0.53

Previous: $0.97-154.6%
Adjusted EBITDA

$2.2M

Previous: $27M-91.8%
Potash Production

43.0K

Previous: 36.0K+19.4%
Trio Production

52.0K

Previous: 52.0K+0.0%
Capital Expenditures

-$16.6M

Previous: $14.3M-215.5%
Free Cash Flow

-$15.7M

Previous: -$28.4M+45.0%
Net Income

-$7.2M

Previous: $13.1M-154.9%
Operating Income

-$9.17M

Previous: $17.5M-152.5%
Gross Profit

$491K

Previous: $26.8M-98.2%
Cash & Equivalents

$2.79M

Previous: $46M-93.9%
Total Assets

$793M

Previous: $808M-1.9%
Stock-Based Comp

$1.52M

Previous: $1.41M+8.2%

Revenue & EPS history

Intrepid Potash · Revenue · Quarterly

$54.5M

Q3 2023-27.1%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Intrepid Potash · $54.5M total across 3 segments · Q3 2023

  • Potash
    $27.6M-34.8%
  • Trio
    $22M-8.4%
  • Oilfield Solutions
    $4.9M-41.8%

Forward guidance

Intrepid is focused on improving potash unit economics through increased production, with recent commissioning of the Eddy Shaft Brine Extraction project expected to contribute meaningfully to product tons starting in the second half of next year. Capital spending for potash projects is designed to have a long-term, sustained impact on returning potash production to historical highs.

Tailwinds

  • Farmer economics continue to be supported by elevated futures prices compared to historical levels.
  • Attractive fertilizer pricing remains a key driver of demand.
  • Modest improvements in market pricing for potash have been observed since early-August.
  • Logistics and transportation advantages, as well as diversified sales into other markets, continue to help drive netbacks above industry benchmark pricing.
  • Eddy Shaft Brine Extraction project was recently commissioned and is expected to contribute to higher potash production in the near-term.

Headwinds

  • Financial results have experienced headwinds due to higher carrying costs for potash and Trio.
  • The company is working through higher carrying costs for its potash and Trio.
  • Unplanned downtime during underground mining and at the production mill resulted in an estimated production loss of approximately nine thousand tons for Trio.
  • Lower pricing for key products and an increase in the cost of goods sold.
  • Experienced unplanned downtime during underground mining.

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 Q3 2023

Historical avgQ3 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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