Intrepid Announces Financial Results for Second Quarter 2010

Intrepid Potash, Inc. (NYSE:IPI) announced today second quarter 2010
financial results, with net income for the quarter of $3.6 million,
resulting in $0.05 of earnings per diluted share. Earnings before
interest, taxes, depreciation, and amortization (EBITDA¹) for
the second quarter of 2010 were $13.3 million.

Highlights for the Second Quarter 2010:

• 
  As of June 30, 2010, we had $136 million of cash and investments, no
  outstanding debt, and $125 million of availability under our revolving
  credit facility.
  
• 
  Potash sales in the second quarter of 2010 were 129,000 tons compared
  to 80,000 tons in the second quarter of 2009.
  
• 
  The average net realized sales price² for potash in the
  second quarter 2010 was $376 per ton ($414 per metric tonne) compared
  to $674 per ton ($743 per metric tonne) in the same period of 2009.
  
• 
  Our potash cost of goods sold, net of by-product credits³,
  was $206 per ton in the second quarter of 2010 compared to $188 per
  ton in the second quarter of 2009. There were no abnormal production
  costs recognized in the second quarter of 2010, whereas, in the second
  quarter of 2009, $5.2 million of abnormal production costs were
  expensed in the period rather than included in cost of goods sold. Our
  second quarter 2010 cost of goods sold per ton results fully absorbed
  all costs attributed to production as we produced within normal ranges
  during this period.
  
• 
  Potash production in the second quarter of 2010 increased to 165,000
  tons compared to 131,000 tons produced in the second quarter of last
  year.
  
• 
  Average net realized sales price for langbeinite, which we market
  under the trademark Trio^TM, was $162 per ton ($179 per
  metric tonne) in the second quarter of 2010 compared to $338 per ton
  ($372 per metric tonne) in the second quarter of 2009.
  
• 
  Sales of Trio^TM were 63,000 tons in the second quarter of
  2010 compared to 45,000 tons in the second quarter of the prior year.
  
• 
  Langbeinite production in the second quarter of 2010 decreased to
  39,000 tons compared to 45,000 tons produced in the second quarter of
  2009.
  
• 
  Gross margin in the second quarter of 2010 for the sale of potash was
  $114 per ton or 30 percent, compared to $426 per ton or 63 percent in
  the three months ended June 30, 2009. Gross margin for the sale of Trio^TM
  was $3 per ton or two percent compared to $142 per ton or 42 percent
  in the same period of 2009. The most significant drivers of the
  decrease in margin for each product were the competitive forces in the
  markets that impacted sales price.
  
• 
  Capital investments in the second quarter of 2010 totaled $9.8 million.
  

'The second quarter of 2010 represented the return to more normal
seasonal agricultural patterns in the United States potash market,? said
Bob Jornayvaz, Intrepid′s Executive Chairman of the Board. 'Demand for
potash during the quarter was more typical of a normal spring and start
of the summer, as we saw strong agricultural demand through April and
May, with demand tapering off normally as we entered the summer. Our
agricultural potash sales in the quarter were in line with our
expectations and we saw consistent demand from our feed customers. Our
industrial sales volumes, while up 43 percent from the same period a
year ago, have not returned as expected in the Rocky Mountain region, a
situation that we are addressing by adding a new compaction facility at
our Moab plant. In recent weeks, we have seen demand from large
fertilizer distributors begin to pick up as they prepare for what we
believe will be a strong fall fertilizer application season, and due to
certain summer price incentive programs instituted by our competitors.
During the second quarter, we continued to bolster our cash position
which will allow us to execute on our significant capital investment
program, including the Langbeinite Recovery Improvement Project, the
Moab Compaction Project and the HB Solar Solution Mine, all which are
designed to decrease our per ton operating costs and make our operations
more efficient. We believe demand in the agricultural markets we serve
will be strong for the remainder of the year. Finally, we have recently
reached our targeted staffing levels in our operations and we are seeing
good success in our mining efforts at our Carlsbad locations that are
well timed to fulfill the anticipated market demand.?

Market Conditions

During the second quarter of 2010, spring purchasing of potash in the
agricultural sector reached its historically seasonal peak and then
demand ebbed as dealers made the decision to exit the planting season
with little to no inventory of potash. What we witnessed in the second
quarter is typical of a pre-2008 normal purchasing pattern in the United
States agricultural sector, which is that of strong demand during the
spring planting season followed by a seasonal lull during the summer
growing season. With recent improvements in commodity pricing, current
crop economics are even more favorable and this, in turn, should be
supportive of a return to more traditional fertilizer application
patterns.

In recent weeks, one of our competitors in North America announced its
summer price incentive program, which offers discounts and other
incentives for orders placed during the summer ahead of the normal fall
fertilizer application season. Intrepid chose to match the pricing under
this program in order to remain competitive in the domestic market. Due
to uncertainty about pricing, dealers worked hard to make sure that they
exited the spring season with little to no potash inventory and waited
to begin purchasing product for the fall fertilizer application season
until pricing in the market became clearer in connection with the
producer summer price incentive programs. As the summer season has
progressed, dealers are showing a willingness to take on risk and are
buying inventory in advance of the fall season. We believe the market is
shifting to a demand driven profile. Based on the current seasonal
demand levels, we believe that we could have committed our entire
granular inventory and second half 2010 production at today′s prices for
delivery during the remainder of 2010. We have, however, elected to be
selective of the orders we accept beyond the end of September, based on
our belief that stronger pricing will emerge as we exit the third
quarter and enter October.

Second Quarter Results & Recent Performance

Income before income taxes for the second quarter of 2010 was $6.1
million compared to $27.5 million in the second quarter of 2009. Cash
flows from operating activities were $32.1 million for the second
quarter of 2010, which compares to $34.8 million for the second quarter
of 2009. Adjusted net income⁴ for the second quarter of 2010
was $3.7 million compared to adjusted net income of $17.4 million in the
same period last year.

Potash

During the second quarter of 2010, Intrepid increased production to
165,000 tons of potash and sold 129,000 tons of potash. This compares to
131,000 tons produced and 80,000 tons sold in the second quarter of
2009. The 129,000 tons of potash we sold was at an average net realized
sales price of $376 per ton as compared to $674 per ton during the
second quarter of 2009. Our average net realized sales price for the
second quarter of 2010 increased as compared to the first quarter of
2010 due in large part to a price increase that went into effect during
March 2010. We do expect, however, that we will see a decline of
approximately $35 per ton in our average net realized sales price in the
third quarter due to the effect of the current summer price incentive
programs described above.

Our potash cost of goods sold, net of by-product credits of $11 per ton,
increased to $206 per ton in the second quarter of 2010 from $188 per
ton in the second quarter of 2009. As noted previously, all costs were
absorbed into the cost of goods sold calculation in 2010 whereas
abnormal production costs of $5.2 million were excluded from the cost of
goods sold calculation in 2009. Our higher cost of goods sold during the
second quarter of 2010 resulted primarily from higher per ton operating
costs from our East surface facility in Carlsbad, New Mexico. While the
underground mining operations have been operating as expected and
delivering the tons to the mill, the cost side of our East surface
facility was a challenge in the second quarter with higher than planned
maintenance costs, chemical costs, and lower energy efficiency which
drives our utility costs. As we actively rebuild this plant, construct
and improve its facilities, make staffing changes, develop new
maintenance systems, commission new equipment and, in general, undertake
the hard work of refurbishing and modernizing this asset, we are going
to experience a few operational challenges along the way to achieving
the Company′s long-term objectives.

Langbeinite ? Trio^TM

Intrepid sold 63,000 tons of Trio^TM in the second quarter of
2010, the majority of which was granular product, at an average net
realized sales price of $162 per ton. This compares to 45,000 tons sold
at an average net realized sales price of $338 per ton in the prior
year′s second quarter. Our net realized sales price per ton decreased
slightly compared to the first quarter due to the need to match market
pricing of our competitor. Included in our second quarter 2010 sales
volumes was a 14,000 ton export order of standard product, albeit at a
lower average net realized sales price than we have been receiving from
our domestic sales.

Demand for granular Trio^TM continues to be robust and we
expect Trio? sales demand will exceed our production for the next few
quarters, resulting in the need to sell our granular product on an
allocated basis. Part of the reason that we need to allocate tonnage to
our Trio^TM customers is that during July 2010, we shut down
our langbeinite plant at our East facility for a total of 14 days due to
unusually heavy rainfall. The Carlsbad, New Mexico region received
approximately nine inches of rain during late June and July 2010. For
perspective, average total precipitation in Carlsbad is approximately 14
inches per year, and the recent rains put Carlsbad on track to have one
of the five wettest years on record since 1912. This aberrant weather in
Carlsbad highlights the importance of our Langbeinite Recovery
Improvement Project, which is designed to reduce our freshwater usage in
the production of langbeinite, thereby reducing the risk of impacts from
significant or unusual weather events like those just experienced. The
recent weather event caused us to curtail langbeinite production so that
we could reduce our water consumption, maintain the brine storage
capacity of our tailings ponds, and preserve some additional pond
storage capacity for future rainfall. Langbeinite production did resume
during portions of July. We are currently operating at the East
facility, yet we will be subject to the impact of any significant
precipitation levels until the new plant is operational. In the interim,
we have committed additional resources to the already ongoing
construction of increased storm water management capacity and are making
improvements in storm water controls to minimize weather exposure until
the benefits of the Langbeinite Recovery Improvement Project are
realized.

Capital Investment

We are taking active steps to mitigate the impact of lower industrial
demand for our standard-sized potash in the Rocky Mountain region by
installing a new compaction facility in our Moab, Utah plant which will
be able to compact all of our standard production, if necessary, into
granular-sized product for the agricultural market. We expect the Moab
compaction facility to be in production at the beginning of 2011. The
longer lead time equipment is already on site and the project is
proceeding as planned.

The recent performance of our East facility, while challenging,
emphasizes why we have committed to make long-term capital investments
in our assets, including the East facility. During the second quarter of
2010, Intrepid invested approximately $9.8 million related to our 2010
capital program. The investments in the second quarter of 2010 included
engineering for the Langbeinite Recovery Improvement Project and the new
Moab compaction facility described above. Additionally, we began the
construction of two new storage domes at our East facility and completed
and fully commissioned the wash thickener to improve potash recoveries
at the East mine. Our updated forecast for capital investment in 2010 is
$105 - $125 million and will include sustaining, improvement,
instrumentation and control projects in addition to the ones highlighted
above.

As we continue to invest and upgrade our facilities, hire new employees,
develop systems, and integrate new equipment, we may encounter
operational disruptions. We believe, however, that these actions should
lead to more reliable operations, with higher recoveries, and lower per
ton operating costs.

Intrepid routinely posts information about Intrepid on its website under
the Investor Relations tab. Intrepid′s website address is www.intrepidpotash.com.

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 of
our international competitors use, equals 1,000 kilograms or 2,204.68
pounds.

Since adjusted net income and EBITDA are non-GAAP financial measures
it is necessary to reference the respective reconciliations in the
accompanying non-GAAP reconciliation tables towards the end of this
release.Average net realized sales price and cash operating cost
of goods sold are defined in the text of this release and the associated
financial tables provide the details to recalculate these numbers in
accordance with U.S. GAAP.

Conference Call Information

The conference call to discuss second quarter 2010 results is scheduled
for August 5, 2010, at 8:00 a.m. MDT (10:00 a.m. EDT). The call
participation number is (877) 419-5396. A recording of the conference
call will be available two hours after the completion of the call at
(800) 642-1687. International participants can dial (706) 902-2295 to
take part in the conference call and can access a replay of the call at
(706) 645-9291. All of the above calls will require the input of the
conference identification number 83725294. The call will also be
streamed on the Intrepid website, www.intrepidpotash.com.
In addition, the press release announcing second quarter 2010 results
will be available on the Intrepid website before the call under
'Investor Relations - Press Releases.' An audio recording of the
conference call will be available at www.intrepidpotash.com
through September 5, 2010.

¹ This is a financial measure not calculated in accordance
with U.S. Generally Accepted Accounting Principles (Non-GAAP). See the
Non-GAAP reconciliations set forth later in this press release for
additional information.

² Average net realized sales price is calculated as gross
sales less freight costs, divided by the number of tons sold in the
period.

³ Potash cost of goods sold, net of by-product credits, is
defined as total cost of goods sold excluding royalties, depreciation,
depletion and amortization.

⁴ This is a financial measure not calculated in accordance
with U.S. Generally Accepted Accounting Principles (Non-GAAP). See the
Non-GAAP reconciliations set forth later in this press release for
additional information.

Certain statements in this press release, and other written or oral
statements made by or on behalf of us, are 'forward-looking statements?
within the meaning of the federal securities laws. Statements regarding
future events and developments and our future performance, as well as
management′s expectations, beliefs, plans, estimates or projections
relating to the future, including statements regarding guidance, are
forward-looking statements within the meaning of these laws. Although we
believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, there can be no
assurance that the expectations will be realized. These forward-looking
statements are subject to a number of known and unknown risks and
uncertainties, many of which are beyond our control that could cause
actual results to differ materially and adversely from such statements.
These risks and uncertainties include: changes in the price of potash or
Trio?; operational difficulties at our facilities; the ability to hire
and retain qualified employees; changes in demand and/or production of
potash or Trio?/langbeinite; changes in our reserve estimates; our
ability to achieve the initiatives of our business strategy, including
but not limited to the development of the HB Solar Solution Mine as a
solution mine and the further development of our langbeinite recovery
assets; changes in the prices of our raw materials, including but not
limited to the price of chemicals, natural gas and power; fluctuations
in the costs of transporting our products to customers; changes in labor
costs and availability of labor with mining expertise; the impact of
federal, state or local government regulations, including but not
limited to environmental and mining regulations, and the enforcement of
such regulations; competition in the fertilizer industry; declines in
U.S. or world agricultural production; declines in oil and gas drilling;
changes in economic conditions; adverse weather events at our
facilities; our ability to comply with covenants inherent in our current
and future debt obligations to avoid defaulting under those agreements;
disruptions in credit markets; our ability to secure additional federal
and state potash leases to expand our existing mining operations;
governmental policy changes that may adversely affect our business and
the risk factors detailed in our filings with the U.S. Securities and
Exchange Commission. Please refer to those filings for more information
on these risk factors. These forward-looking statements speak only as of
the date of this press release, and we undertake no obligation to
publicly update or revise any forward-looking statement, whether as the
result of future events, new information or otherwise.

*On a per ton basis, by-product credits were $11 and $20 for
the three month period ended June 30, 2010, and 2009, respectively.By-product
credits were $1.4  million and $1.6  million for the three month period
ended June 30, 2010, and 2009, respectively.Costs associated
with abnormal production were zero and $5.2 million for the three month
period ended June  30, 2010, and 2009, respectively.

*On a per ton basis, by-product credits were $9 and $18 for
the six month period ended June 30, 2010, and 2009, respectively.By-product
credits were $3.4  million and $3.2  million for the six month period
ended June 30, 2010, and 2009, respectively.Costs associated
with abnormal production were $0.5 million and $6.4 million for the six
month period ended June  30, 2010, and 2009, respectively.

INTREPID POTASH, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share amounts)
	Three Months Ended						Six Months Ended
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009
Sales	$ 64,318			$ 73,392			$ 171,677			$ 162,293
Less:
Freight costs	5,573			4,122			15,339			8,829
Warehousing and handling costs	2,317			2,098			5,041			3,627
Cost of goods sold	41,416			26,596			108,670			60,909
Costs associated with abnormal
production	-			5,179			470			6,374
Other	271			-			540			-
Gross Margin	14,741			35,397			41,617			82,554
Selling and administrative	7,969			7,763			14,582			14,546
Accretion of asset retirement obligation	176			173			A A A PDF Die mit * gekennzeichneten Felder sind Pflichtfelder. Absender* E-Mail-Adresse Empfänger* Betreff* Nachricht* Hier ist eine interessante Information, die ich auf Minenportal.de gefunden habe: https://www.minenportal.de/artikel/49166--Intrepid-Announces-Financial-Results-for-Second-Quarter-2010.html Alle hinterlegten Daten der "Nachricht versenden"-Funktion werden ausschlißlich zu Übertragungszwecken verwendet und nicht gespeichert. Zustimmung* Mit Setzen des Häkchens im Kontrollkästchen bestätigen Sie uns, dass Sie unsere Datenschutzerklärung zur Kenntnis genommen haben und dass Sie unseren Allgemeinen Geschäftsbedingungen (AGB) zustimmen. Sie erklären sich damit einverstanden, dass Ihre Daten zur Bearbeitung Ihres Anliegens verwendet werden. Weitere Informationen und Widerrufshinweise finden Sie in der Datenschutzerklärung u. a. im Punkt "Informationsangebote".  Bestätigungscode: Code eingeben:* (Zum neu Laden auf das Bild klicken) Geben Sie die Zeichen aus dem Bild ein.(Es wird nicht zwischen Groß- und Kleinschreibung unterschieden) VersendenHier ist eine interessante Information, die ich auf Minenportal.de gefunden habe: https://www.minenportal.de/artikel/49166--Intrepid-Announces-Financial-Results-for-Second-Quarter-2010.html Drucken Für den Inhalt des Beitrages ist allein der Autor verantwortlich bzw. die aufgeführte Quelle. Bild- oder Filmrechte liegen beim Autor/Quelle bzw. bei der vom ihm benannten Quelle. Bei Übersetzungen können Fehler nicht ausgeschlossen werden. Der vertretene Standpunkt eines Autors spiegelt generell nicht die Meinung des Webseiten-Betreibers wieder. Mittels der Veröffentlichung will dieser lediglich ein pluralistisches Meinungsbild darstellen. Direkte oder indirekte Aussagen in einem Beitrag stellen keinerlei Aufforderung zum Kauf-/Verkauf von Wertpapieren dar. Wir wehren uns gegen jede Form von Hass, Diskriminierung und Verletzung der Menschenwürde. Beachten Sie bitte auch unsere AGB/Disclaimer! Mineninfo Intrepid Potash Inc. Branche: Bergbau Heimatland: USA WKN: A2QA6B ISIN: US46121Y2019 www.intrepidpotash.com weitere Infos: Übersicht Kurse & Charts Nachrichten Nachrichten, engl. Copyright © Minenportal.de 2006-2024 | MinenPortal.de ist eine Marke von GoldSeiten.de und Mitglied der GoldSeiten Mediengruppe Alle Angaben ohne Gewähr! Es wird keinerlei Haftung für die Richtigkeit der Angaben und der Kurse übernommen! Informationen zur Zeitverzögerung der Kursdaten und Börsenbedingungen. Kursdaten: Data Supplied by BSB-Software. AGB | Datenschutz | Impressum | Kontakt | RSS-Feed | Sitemap