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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported):  August 5, 2024
 
Intrepid Potash, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware 001-34025 26-1501877
(State or other jurisdiction
of incorporation)		 (Commission
file number)		 (IRS employer
identification no.)
 
707 17th Street, Suite 4200
Denver, Colorado  80202
(Address of principal executive offices, including zip code)

(303) 296-3006
(Registrant’s telephone number, including area code)


(Former name or former address, if changed since last report)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
 
☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 210.14d-2(b)) 
☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol Name of each exchange on which registered
Common Stock, par value $0.001 per share IPI New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02       Results of Operations and Financial Condition
 
    On August 5, 2024, Intrepid Potash, Inc. issued a press release announcing its financial results and operating highlights for the second quarter of 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.
    
The information furnished under this Item 2.02, including Exhibit 99.1, will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be incorporated by reference into any filing under the Securities Act of 1933, except as expressly set forth by specific reference in that filing.

 
Item 9.01       Financial Statements and Exhibits

(d) Exhibits

Exhibit No. Description
   
 Press Release of Intrepid Potash, Inc. dated August 5, 2024.
104Cover Page Interactive Data File (embedded with the Inline XBRL document)

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 INTREPID POTASH, INC.
   
   
Dated: August 5, 2024By:/s/ Matthew D. Preston
  Matthew D. Preston
  Chief Financial Officer



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Intrepid Announces Second Quarter 2024 Results

Denver, CO, August 5, 2024 - Intrepid Potash, Inc. ("Intrepid", the "Company", "we", "us", or "our") (NYSE:IPI) today reported its results for the second quarter of 2024.

Key Highlights for Second Quarter 2024

Financial & Operational
•Total sales of $62.1 million, which compares to $81.0 million in the second quarter of 2023.
•Net loss of $0.8 million (or $0.06 per diluted share), which compares to net income of $4.3 million (or $0.33 per diluted share) in the second quarter of 2023.
•Gross margin of $7.6 million, which compares to $15.4 million in the second quarter of 2023.
•Cash flow provided by operations of $27.7 million, which compares to $30.5 million in the second quarter of 2023.
•Adjusted EBITDA(1) of $9.2 million, which compares to $15.8 million in the second quarter of 2023.
•Potash and Trio® sales volumes of 55 thousand and 63 thousand tons, respectively, which compares to 79 thousand and 63 thousand tons, respectively, in the second quarter of 2023.
•Potash and Trio® average net realized sales prices(1) of $405 and $314 per ton, respectively, which compares to $479 and $333 per ton, respectively, in the second quarter of 2023.

Management & Board of Directors Update
•On July 10, 2024, we announced that the Board of Directors (“the Board”) of Intrepid elected Barth Whitham, formerly Lead Independent Director, as its Chair. On that date, the Board also announced that it initiated a search process to identify a successor for Intrepid’s CEO, Bob Jornayvaz, who is currently out on an extended medical leave of absence, as it is unlikely that Mr. Jornayvaz will return to his CEO role. During this process, Intrepid’s CFO, Matt Preston, will continue to serve as acting principal executive officer, working closely with the rest of the Company’s management team and the Board.

Capital Expenditures
•Capital expenditures were $11.3 million in the second quarter of 2024, bringing our total capital expenditures to $23.0 million for the first six months ended June 30, 2024. We continue to expect full-year 2024 capital expenditures of $40 million to $50 million.

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Project & Operational Updates
•HB Solar Solution Mine in Carlsbad, New Mexico
◦Replacement Extraction Well ("IP30B"): We successfully completed the IP30B project in June 2024 and the new extraction well is now serving as our primary source of brine for the current evaporation season. We expect IP30B will be our primary extraction well for the Eddy Cavern for future evaporation seasons.
◦Phase Two of HB Injection Pipeline Project ("Phase Two"): Phase Two is the installation of an in-line pigging system to clean the HB injection pipeline and remove scaling to help ensure more consistent flow rates. All pipeline is now installed and tanks have been set, and we expect to commission the project in the third quarter of 2024.

•Brine Recovery Mine in Wendover, Utah
◦Primary Pond 7 ("PP7"): Construction of PP7 is complete and the new pond is being filled with brine. This new primary pond is expected to increase the brine evaporative area at Wendover and help us meet our goals of maximizing brine availability, increasing brine grade, and improving production. We expect to see the production benefits of the new primary pond in the fall of 2025.
◦Lithium Project: We continue to advance our lithium project in Wendover and are in the process of reviewing proposals from multiple partners. The lithium already present in our byproduct magnesium brine is estimated to support approximately two thousand tons of lithium carbonate production per year assuming the existence of a commercially feasible extraction technology.

•Intrepid South
◦Sand Project: We have all necessary permits in place to begin construction and operation on our sand project. While our sand project shows good potential, owing to softening conditions in the oilfield services market, we’re pausing development and will be dedicating our resources to other strategic priorities at this time.

•East Underground Trio® Mine
◦Operational & Cost Efficiencies: Owing to efficiencies from the two continuous miners placed into service in 2023 and the operation of our fine langbeinite recovery system, we've seen significant improvement in our production rates and cost structure compared to the prior year. For the first six months of 2024, our cost of goods sold totaled approximately $284 per ton, which compares to the same prior-year figure of $320 per ton. Improving our margins in the Trio® segment through operational efficiencies and cost savings initiatives remains a key focus for Intrepid.

Liquidity
•During the second quarter of 2024, cash flow provided by operations was $27.7 million, while cash used in investing activities was $9.8 million. As of July 31, 2024, Intrepid had
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approximately $51.1 million in cash and cash equivalents and had no outstanding borrowings on our $150 million revolving credit facility.
•Intrepid maintains an investment account of short-and-long-term fixed income securities that had a balance of approximately $2.5 million as of July 31, 2024.

Consolidated Results, Management Commentary, & Outlook
In the second quarter of 2024, Intrepid generated sales of $62.1 million, a 23% decrease from second quarter 2023 sales of $81.0 million. Consolidated gross margin totaled $7.6 million, while net loss totaled $0.8 million, or a net loss of $0.06 per diluted share, which compares to second quarter 2023 net income of $4.3 million, or $0.33 per diluted share. The Company delivered adjusted EBITDA(1) of $9.2 million, down from $15.8 million in the same prior year period, with the lower profitability primarily being driven by lower pricing for our key products. Our second quarter 2024 average net realized sales prices(1) for potash and Trio® averaged $405 and $314 per ton, respectively, which compares to $479 and $333 per ton, respectively, in the second quarter of 2023.

Matt Preston, Intrepid's Chief Financial Officer and acting principal executive officer commented: "Our strategic focus continues to be improving our potash production, and I'm happy to share that we saw the first indications of this in our second quarter results. Improved brine grades at HB from the Eddy Cavern and good early-season evaporation rates, allowed us to extend our spring production season and we still expect our 2024 potash production to be approximately 15% higher than 2023.

As for our second quarter results, our operational and financial performance continues to be solid. In Trio®, our sales volumes and production are well ahead of last year's pace through the first six months of the year as increased operating rates from our new continuous miners and our modified operating schedule have driven significant improvement in both our total and per ton production costs. Trio® segment gross margin of $2.2 million in the second quarter was an increase of approximately $3.3 million sequentially and $1 million year-over-year. As the broader potash market looks to be finding its midcycle pricing floor, we remain focused on improving our unit economics by means of higher potash production.

Lastly, we want to again extend our best wishes to Bob as he continues his recovery. We will provide updates on our search for a new CEO as that process unfolds in the coming months."


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Segment Highlights

Potash
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands, except per ton data)
Sales$30,034 $47,264 $67,610 $99,761 
Gross margin$3,312 $12,876 $8,886 $27,304 
Potash sales volumes (in tons)55 79 129 167 
Potash production volumes (in tons)40 12 127 102 
Average potash net realized sales price per ton(1)
$405 $479 $399 $485 

Our total sales in the potash segment decreased $17.2 million in the second quarter of 2024, compared to the second quarter of 2023, as potash sales decreased $17.0 million, or 41%, and potash segment byproduct sales decreased $0.3 million. Our potash sales decreased in the second quarter of 2024, compared to the second quarter of 2023, as our average net realized sales price per ton decreased 15%, and we sold 30% fewer tons. We sold fewer tons of potash in the second quarter of 2024, compared to the second quarter of 2023, as we had fewer tons of potash to sell due to lower potash production from our HB and Wendover facilities.
Our potash segment cost of goods sold decreased by 25% in the second quarter of 2024, compared to the second quarter of 2023, as we sold 30% fewer tons of potash, although our production costs remained elevated due to decreased production volumes over the past year. A significant portion of our potash production costs are fixed and an increase in potash tons produced reduces our potash per ton cost.
During the second quarter of 2024, we recorded lower of cost or net realizable value inventory adjustments of $1.4 million as our weighted average carrying cost per ton for inventoried potash products at our HB and Wendover facilities was higher than our expected selling price per ton for those products.
Our potash segment gross margin decreased $9.6 million in the second quarter of 2024, compared to the second quarter of 2023, due to the factors discussed above.

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Trio®
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands, except per ton data)
Sales$26,522 $28,748 $63,010 $59,022 
Gross margin$2,182 $1,222 $1,043 $2,674 
Trio® sales volume (in tons)
63 63 154 128 
Trio® production volume (in tons)
68 58 122 107 
Average Trio® net realized sales price per ton(1)
$314 $333 $306 $339 

Trio® segment sales decreased 8% during the second quarter of 2024, compared to the second quarter of 2023. Trio® sales decreased $0.8 million, and our Trio® segment byproduct sales decreased $1.4 million. Trio® sales volumes were flat year-over year, and similar to potash prices discussed above, our Trio® average net realized sales price per ton has decreased since the peak prices realized during the second quarter of 2022, as potassium fertilizer supplies have improved.
Our Trio® cost of goods sold decreased 18% in the second quarter of 2024 despite sales volumes matching the prior year quarter, as improved production rates and decreased total production costs led to an improvement in our per unit costs. In the second quarter of 2024, we produced 68 thousand tons of Trio® which compares to 58 thousand tons in the same prior-year period. A significant portion of our production costs are fixed and an increase in tons produced decreases our per ton production costs.

Our Trio® segment generated gross margin of $2.2 million in the second quarter of 2024, compared to gross margin of $1.2 million in the second quarter of 2023, due to the factors discussed above.

Oilfield Solutions
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands)
Sales$5,539 $5,111 $10,862 $9,361 
Gross margin$2,130 $1,284 $4,129 $1,756 

Our oilfield solutions segment sales increased $0.4 million in the second quarter of 2024, compared to the second quarter of 2023, primarily due to a $0.2 million increase in brine water sales and a $0.3 million increase in other oilfield solution products and services. Our water sales increased compared to the prior year period due to increased sales of water on our South ranch.
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Our brine water sales and sales of other oilfield solutions segments products and services increased due to continued strong demand from oil and gas operators in the Permian Basin near Intrepid South.
    Our cost of goods sold decreased $0.4 million, or 11%, in the second quarter of 2024, compared to the second quarter of 2023, due to using less contract labor. In the second quarter of 2023, we used contract labor to complete various projects at Intrepid South.
Gross margin for the second quarter of 2024 increased $0.8 million compared to the second quarter of 2023, due to the factors discussed above.

Notes
1 Adjusted net (loss) income, adjusted net (loss) income per diluted share, adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) and average net realized sales price per ton are non-GAAP financial measures. See the non-GAAP reconciliations set forth later in this press release for additional information.
Unless expressly stated otherwise or the context otherwise requires, references to tons in this press release refer to short tons. One short ton equals 2,000 pounds. One metric tonne, which many international competitors use, equals 1,000 kilograms or 2,204.62 pounds.

Conference Call Information
Intrepid will host a conference call on Tuesday, August 6, 2024, at 12:00 p.m. Eastern Time to discuss the results and other operating and financial matters and answer investor questions.

Management invites you to listen to the conference call by using the toll-free dial-in number 1 (800) 715-9871 or International dial-in number 1 (646) 307-1963; please use conference ID 1179359. The call will also be streamed on the Intrepid website, intrepidpotash.com. A recording of the conference call will be available approximately two hours after the completion of the call by dialing 1 (800) 770-2030 for toll-free, 1 (609) 800-9909 for International, or at intrepidpotash.com. The replay of the call will require the input of the replay access code 1179359. The recording will be available through August 13, 2024.
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About Intrepid
Intrepid is a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed, and the oil and gas industry. Intrepid is the only U.S. producer of muriate of potash, which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, Intrepid produces a specialty fertilizer, Trio®, which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. Intrepid also provides water, magnesium chloride, brine, and various oilfield products and services. Intrepid serves diverse customers in markets where a logistical advantage exists and is a leader in the use of solar evaporation for potash production, resulting in lower cost and more environmentally friendly production. Intrepid's mineral production comes from three solar solution potash facilities and one conventional underground Trio® mine.

Intrepid routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Relations tab. Investors and other interested parties are encouraged to enroll at intrepidpotash.com, to receive automatic email alerts for new postings.

Forward-looking Statements
This document contains forward-looking statements - that is, statements about future, not past, events. The forward-looking statements in this document relate to, among other things, statements about Intrepid's future financial performance, cash flow from operations expectations, water sales, production costs, acquisition expectations and operating plans, its market outlook, and statements regarding management matters. These statements are based on assumptions that Intrepid believes are reasonable. Forward-looking statements by their nature address matters that are uncertain. The particular uncertainties that could cause Intrepid's actual results to be materially different from its forward-looking statements include the following:

•changes in the price, demand, or supply of our products and services;
•challenges and legal proceedings related to our water rights;
•our ability to successfully identify and implement any opportunities to grow our business whether through expanded sales of water, Trio®, byproducts, and other non-potassium related products or other revenue diversification activities;
•the costs of, and our ability to successfully execute, any strategic projects;
•declines or changes in agricultural production or fertilizer application rates;
•declines in the use of potassium-related products or water by oil and gas companies in their drilling operations;
•our ability to prevail in outstanding legal proceedings against us;
•our ability to comply with the terms of our revolving credit facility, including the underlying covenants;
•further write-downs of the carrying value of assets, including inventories;
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•circumstances that disrupt or limit production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems;
•changes in reserve estimates;
•currency fluctuations;
•adverse changes in economic conditions or credit markets;
•the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes;
•adverse weather events, including events affecting precipitation and evaporation rates at our solar solution mines;
•increased labor costs or difficulties in hiring and retaining qualified employees and contractors, including workers with mining, mineral processing, or construction expertise;
•changes in management and the board of directors, and our reliance on key personnel, including our ability to identify, recruit, and retain key personnel;
•changes in the prices of raw materials, including chemicals, natural gas, and power;
•our ability to obtain and maintain any necessary governmental permits or leases relating to current or future operations;
•interruptions in rail or truck transportation services, or fluctuations in the costs of these services;
•our inability to fund necessary capital investments;
•global inflationary pressures and supply chain challenges;
•the impact of global health issues, and other global disruptions on our business, operations, liquidity, financial condition and results of operations; and
•the other risks, uncertainties, and assumptions described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023, and our other reports we file with the Securities and Exchange Commission.

In addition, new risks emerge from time to time. It is not possible for Intrepid to predict all risks that may cause actual results to differ materially from those contained in any forward-looking statements Intrepid may make. All information in this document speaks as of the date of this release. New information or events after that date may cause our forward-looking statements in this document to change. We undertake no obligation to update or revise publicly any forward-looking statements to conform the statements to actual results or to reflect new information or future events.

Contact:
Evan Mapes, CFA, Investor Relations Manager
Phone: 303-996-3042
Email: evan.mapes@intrepidpotash.com
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INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Sales$62,055 $81,035 $141,342 $167,955 
Less:
Freight costs9,423 10,516 22,253 22,106 
Warehousing and handling costs2,586 2,801 5,675 5,534 
Cost of goods sold41,070 52,336 97,501 108,581 
Lower of cost or net realizable value inventory adjustments1,352 — 1,855 — 
Gross Margin 7,624 15,382 14,058 31,734 
Selling and administrative7,937 7,948 16,294 16,806 
Accretion of asset retirement obligation622 535 1,244 1,070 
Impairment of long-lived assets831 — 2,208 — 
Loss (gain) on sale of assets241 (7)492 193 
Other operating income (1,266)(439)(2,659)(730)
Other operating expense887 77 2,413 1,753 
Operating (Loss) Income(1,628)7,268 (5,934)12,642 
Other Income
Equity in (loss) earnings of unconsolidated entities(116)(1,059)33 (238)
Interest income547 76 791 161 
Other income60 43 68 56 
(Loss) Income Before Income Taxes(1,137)6,328 (5,042)12,621 
Income Tax Benefit (Expense)304 (2,023)1,079 (3,810)
Net (Loss) Income$(833)$4,305 $(3,963)$8,811 
Weighted Average Shares Outstanding:
Basic12,886 12,766 12,852 12,730 
Diluted12,886 12,855 12,852 12,865 
(Loss) Earnings Per Share:
Basic$(0.06)$0.34 $(0.31)$0.69 
Diluted$(0.06)$0.33 $(0.31)$0.68 

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INTREPID POTASH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF JUNE 30, 2024 AND DECEMBER 31, 2023
(In thousands, except share and per share amounts)
June 30,December 31,
20242023
ASSETS
Cash and cash equivalents$51,663 $4,071 
Short-term investments2,464 2,970 
Accounts receivable:
Trade, net21,617 22,077 
Other receivables, net1,679 1,470 
Inventory, net101,932 114,252 
Prepaid expenses and other current assets3,832 7,200 
Total current assets183,187 152,040 
Property, plant, equipment, and mineral properties, net354,294 358,249 
Water rights19,184 19,184 
Long-term parts inventory, net30,899 30,231 
Long-term investments5,090 6,627 
Other assets, net9,000 8,016 
Non-current deferred tax asset, net195,337 194,223 
Total Assets$796,991 $768,570 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable$7,173 $12,848 
Accrued liabilities11,310 14,061 
Accrued employee compensation and benefits6,856 7,254 
Other current liabilities8,100 12,401 
Total current liabilities33,439 46,564 
Advances on credit facility— 4,000 
Asset retirement obligation, net of current portion31,321 30,077 
Operating lease liabilities345 741 
Finance lease liabilities1,428 1,451 
Deferred other income, long-term46,617 — 
Other non-current liabilities1,593 1,309 
Total Liabilities114,743 84,142 
Commitments and Contingencies
Common stock, $0.001 par value; 40,000,000 shares authorized;
12,908,078 and 12,807,316 shares outstanding
at June 30, 2024, and December 31, 2023, respectively14 13 
Additional paid-in capital667,419 665,637 
Retained earnings 36,827 40,790 
Less treasury stock, at cost(22,012)(22,012)
Total Stockholders' Equity682,248 684,428 
Total Liabilities and Stockholders' Equity$796,991 $768,570 

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INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cash Flows from Operating Activities:
Net (loss) income$(833)$4,305 $(3,963)$8,811 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, depletion and amortization8,594 8,892 17,898 18,183 
Accretion of asset retirement obligation622 535 1,244 1,070 
Amortization of deferred financing costs76 75 151 151 
Amortization of intangible assets84 80 164 161 
Stock-based compensation1,235 1,803 2,557 3,549 
Lower of cost or net realizable value inventory adjustments1,352 — 1,855 — 
Impairment of long-lived assets831 — 2,208 — 
Loss (gain) on disposal of assets241 (7)492 193 
Allowance for parts inventory obsolescence419 — 472 — 
Equity in loss (earnings) of unconsolidated entities116 1,059 (33)238 
Distribution of earnings from unconsolidated entities— 132 — 452 
Changes in operating assets and liabilities:
Trade accounts receivable, net20,208 15,391 459 2,917 
Other receivables, net(497)(867)(250)(959)
Inventory, net(1,509)3,117 9,326 10,763 
Prepaid expenses and other current assets1,353 656 2,275 906 
Deferred tax assets, net(325)2,016 (1,114)3,676 
Accounts payable, accrued liabilities, and accrued employee
     compensation and benefits		(3,271)(2,827)(6,892)(8,132)
Operating lease liabilities(356)(408)(740)(809)
Deferred other income(562)— 43,872 — 
Other liabilities(32)(3,455)(703)(2,222)
Net cash provided by operating activities27,746 30,497 69,278 38,948 
Cash Flows from Investing Activities:
Additions to property, plant, equipment, mineral properties and other assets(11,301)(20,895)(22,974)(41,934)
Purchase of investments— (459)— (1,415)
Proceeds from sale of assets55 24 4,651 89 
Proceeds from redemptions/maturities of investments1,000 2,500 1,500 4,000 
Other investing, net416 508 416 508 
Net cash used in investing activities(9,830)(18,322)(16,407)(38,752)
Cash Flows from Financing Activities:
Payments of financing lease(176)(167)(500)(210)
Proceeds from short-term borrowings on credit facility— — — 5,000 
Repayments of short-term borrowings on credit facility— (5,000)(4,000)(5,000)
Employee tax withholding paid for restricted stock upon vesting(142)(298)(775)(1,337)
Net cash used in financing activities(318)(5,465)(5,275)(1,547)
Net Change in Cash, Cash Equivalents and Restricted Cash17,598 6,710 47,596 (1,351)
Cash, Cash Equivalents and Restricted Cash, beginning of period34,649 11,023 4,651 19,084 
Cash, Cash Equivalents and Restricted Cash, end of period$52,247 $17,733 $52,247 $17,733 
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INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)

To supplement Intrepid's consolidated financial statements, which are prepared and presented in accordance with GAAP, Intrepid uses several non-GAAP financial measures to monitor and evaluate its performance. These non-GAAP financial measures include adjusted net (loss) income, adjusted net (loss) income per diluted share, adjusted EBITDA, and average net realized sales price per ton. These non-GAAP financial measures should not be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Intrepid believes these non-GAAP financial measures provide useful information to investors for analysis of its business. Intrepid uses these non-GAAP financial measures as one of its tools in comparing period-over-period performance on a consistent basis and when planning, forecasting, and analyzing future periods. Intrepid believes these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions.



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INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)

Adjusted Net (Loss) Income and Adjusted Net (Loss) Income Per Diluted Share

Adjusted net (loss) income and adjusted net (loss) income per diluted share are calculated as net (loss) income or net (loss) income per diluted share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of its operating results excluding items that Intrepid believes are not indicative of its fundamental ongoing operations.

Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands)
Net (Loss) Income$(833)$4,305 $(3,963)$8,811 
Adjustments
     Impairment of long-lived assets831 — 2,208 — 
     Loss (gain) on sale of assets241 (7)492 193 
     Calculated income tax effect(1)
(279)2 (702)(50)
          Total adjustments793 (5)1,998 143 
Adjusted Net (Loss) Income$(40)$4,300 $(1,965)$8,954 

Reconciliation of Net (Loss) Income per Share to Adjusted Net (Loss) Income per Share:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net (Loss) Income Per Diluted Share$(0.06)$0.33 $(0.31)$0.68 
Adjustments
     Impairment of long-lived assets0.06 — 0.17 — 
     Loss on sale of assets0.02 — 0.04 0.02 
     Calculated income tax effect(1)
(0.02)— (0.05)— 
          Total adjustments0.06 — 0.16 0.02 
Adjusted Net (Loss) Income Per Diluted Share$— $0.33 $(0.15)$0.70 

(1) Assumes an annual effective tax rate of 26% for 2024 and 2023.
13
INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)

Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) is calculated as net (loss) income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers adjusted EBITDA to be useful, and believe it to be useful for investors, because the measure reflects Intrepid's operating performance before the effects of certain non-cash items and other items that Intrepid believes are not indicative of its core operations. Intrepid uses adjusted EBITDA to assess operating performance.

Reconciliation of Net (Loss) Income to Adjusted EBITDA:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands)
Net (Loss) Income$(833)$4,305 $(3,963)$8,811 
     Impairment of long-lived assets831 — 2,208 — 
     Loss (gain) on sale of assets241 (7)492 193 
     Interest expense— — — — 
     Income tax (benefit) expense(304)2,023 (1,079)3,810 
     Depreciation, depletion, and amortization8,594 8,892 17,898 18,183 
     Amortization of intangible assets84 80 164 161 
     Accretion of asset retirement obligation622 535 1,244 1,070 
          Total adjustments10,068 11,523 20,927 23,417 
Adjusted EBITDA$9,235 $15,828 $16,964 $32,228 

14
INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)

Average Potash and Trio® Net Realized Sales Price per Ton
Average net realized sales price per ton for potash is calculated as potash segment sales less potash segment byproduct sales and potash freight costs and then dividing that difference by the number of tons of potash sold in the period. Likewise, average net realized sales price per ton for Trio® is calculated as Trio® segment sales less Trio® segment byproduct sales and Trio® freight costs and then dividing that difference by Trio® tons sold. Intrepid considers average net realized sales price per ton to be useful, and believe it to be useful for investors, because it shows Intrepid's potash and Trio® average per ton pricing without the effect of certain transportation and delivery costs. When Intrepid arranges transportation and delivery for a customer, it includes in revenue and in freight costs the costs associated with transportation and delivery. However, some of Intrepid's customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in Intrepid's revenue and freight costs. Intrepid uses average net realized sales price per ton as a key performance indicator to analyze potash and Trio® sales and price trends.

Reconciliation of Sales to Average Net Realized Sales Price per Ton:

Three Months Ended June 30,
20242023
(in thousands, except per ton amounts)Potash
Trio®
Potash
Trio®
Total Segment Sales$30,034 $26,522 $47,264 $28,748 
Less: Segment byproduct sales5,896 109 6,158 1,520 
          Freight costs1,871 6,660 3,272 6,266 
   Subtotal$22,267 $19,753 $37,834 $20,962 
Divided by:
Tons sold55 63 79 63 
   Average net realized sales price per ton$405 $314 $479 $333 
Six Months Ended June 30,
20242023
(in thousands, except per ton amounts)Potash
Trio®
Potash
Trio®
Total Segment Sales$67,610 $63,010 $99,761 $59,022 
Less: Segment byproduct sales11,060 313 11,500 2,740 
          Freight costs5,017 15,634 7,264 12,952 
   Subtotal$51,533 $47,063 $80,997 $43,330 
Divided by:
Tons sold129 154 167 128 
   Average net realized sales price per ton$399 $306 $485 $339 



15
INTREPID POTASH, INC.
DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)

Three Months Ended June 30, 2024
ProductPotash Segment
Trio® Segment
Oilfield Solutions SegmentIntersegment EliminationsTotal
Potash$24,138 $— $— $(40)$24,098 
Trio®
— 26,413 — — 26,413 
Water— — 2,572 — 2,572 
Salt3,335 109 — — 3,444 
Magnesium Chloride932 — — — 932 
Brine Water1,584 — 1,166 — 2,750 
Other45 — 1,801 — 1,846 
Total Revenue$30,034 $26,522 $5,539 $(40)$62,055 
Six Months Ended June 30, 2024
ProductPotash Segment
Trio® Segment
Oilfield Solutions SegmentIntersegment EliminationsTotal
Potash$56,550 $— $— $(140)$56,410 
Trio®
— 62,697 — — 62,697 
Water— — 4,741 — 4,741 
Salt6,479 313 — — 6,792 
Magnesium Chloride1,351 — — — 1,351 
Brine Water3,167 — 2,293 — 5,460 
Other63 — 3,828 — 3,891 
Total Revenue$67,610 $63,010 $10,862 $(140)$141,342 

16
INTREPID POTASH, INC.
DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)

Three Months Ended June 30, 2023
ProductPotash Segment
Trio® Segment
Oilfield Solutions SegmentIntersegment EliminationsTotal
Potash$41,106 $— $— $(88)$41,018 
Trio®
— 27,228 — — 27,228 
Water100 1,474 2,568 — 4,142 
Salt3,278 46 — — 3,324 
Magnesium Chloride1,667 — — — 1,667 
Brine Water1,113 — 1,001 — 2,114 
Other— — 1,542 — 1,542 
Total Revenue$47,264 $28,748 $5,111 $(88)$81,035 
Six Months Ended June 30, 2023
ProductPotash SegmentTrio® SegmentOilfield Solutions SegmentIntersegment EliminationsTotal
Potash$88,261 $— $— $(189)$88,072 
Trio®
— 56,282 — — 56,282 
Water180 2,522 4,187 — 6,889 
Salt6,321 218 — — 6,539 
Magnesium Chloride2,804 — — — 2,804 
Brine Water2,195 — 1,823 — 4,018 
Other— — 3,351 — 3,351 
Total Revenue$99,761 $59,022 $9,361 $(189)$167,955 



























17
INTREPID POTASH, INC.
DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)

Three Months Ended
June 30, 2024		Potash
Trio®
Oilfield SolutionsOtherConsolidated
Sales$30,034 $26,522 $5,539 $(40)$62,055 
Less: Freight costs2,803 6,660 — (40)9,423 
         Warehousing and handling
         costs		1,343 1,243 — — 2,586 
         Cost of goods sold21,224 16,437 3,409 — 41,070 
         Lower of cost or net
         realizable value inventory
         adjustments 		1,352 — — — 1,352 
Gross Margin$3,312 $2,182 $2,130 $— $7,624 
Depreciation, depletion, and amortization incurred1
$6,178 $851 $1,195 $454 $8,678 
Six Months Ended June 30, 2024Potash
Trio®
Oilfield SolutionsOtherConsolidated
Sales$67,610 $63,010 $10,862 $(140)$141,342 
Less: Freight costs6,759 15,634 — (140)22,253 
         Warehousing and handling
         costs		3,070 2,605 — — 5,675 
         Cost of goods sold47,040 43,728 6,733 — 97,501 
         Lower of cost or net
         realizable value inventory
         adjustments 		1,855 — — — 1,855 
Gross Margin$8,886 $1,043 $4,129 $— $14,058 
Depreciation, depletion, and amortization incurred1
$13,149 $1,735 $2,266 $912 $18,062 
Three Months Ended
June 30, 2023		Potash
Trio®
Oilfield SolutionsOtherConsolidated
Sales$47,264 $28,748 $5,111 $(88)$81,035 
Less: Freight costs4,338 6,266 — (88)10,516 
         Warehousing and handling
         costs		1,609 1,192 — — 2,801 
         Cost of goods sold28,441 20,068 3,827 — 52,336 
Gross Margin$12,876 $1,222 $1,284 $— $15,382 
Depreciation, depletion, and amortization incurred1
$6,429 $1,405 $915 $223 $8,972 
Six Months Ended June 30, 2023Potash
Trio®
Oilfield SolutionsOtherConsolidated
Sales$99,761 $59,022 $9,361 $(189)$167,955 
Less: Freight costs9,343 12,952 — (189)22,106 
         Warehousing and handling
         costs		3,089 2,445 — — 5,534 
         Cost of goods sold60,025 40,951 7,605 — 108,581 
Gross Margin$27,304 $2,674 $1,756 $— $31,734 
Depreciation, depletion and amortization incurred1
$13,482 $2,611 $1,822 $429 $18,344 
(1) Depreciation, depletion, and amortization incurred for potash and Trio® excludes depreciation, depletion, and amortization amounts absorbed in or relieved from inventory.
18
v3.24.2.u1
Cover
Aug. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 05, 2024
Entity Registrant Name Intrepid Potash, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-34025
Entity Tax Identification Number 26-1501877
Entity Address, Address Line One 707 17th Street, Suite
Entity Address, City or Town Denver
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80202
City Area Code 303
Local Phone Number 296-3006
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol IPI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001421461
Amendment Flag false
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