ipi-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________

FORM 10-Q

_______________________________________________________

☒

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended

March 31, 2022

☐

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______ to ______

Commission File Number: 001-34025

INTREPID POTASH, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware		26-1501877
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
707 17th Street, Suite 4200
Denver,	Colorado	80202
(Address of principal executive offices)		(Zip Code)

(303) 296-3006

(Registrant’s telephone number, including area code)


1001 17th Street, Suite 1050, Denver, Colorado 80202
(Former name, former address and former fiscal year, if changed since last report)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ☒No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

As of April 25, 2022, the registrant had outstanding 13,618,666 shares of common stock, par value $0.001 per share.

Table of Contents

INTREPID POTASH, INC.

TABLE OF CONTENTS


						Page
			PART I - FINANCIAL INFORMATION			1
			ITEM 1. Condensed Consolidated Financial Statements (Unaudited)			1
			Condensed Consolidated Balance Sheets			1
			Condensed Consolidated Statements of Operations			2
			Condensed Consolidated Statements of Stockholders' Equity			3
			Condensed Consolidated Statements of Cash Flows			4
			Notes to Condensed Consolidated Financial Statements			5
			ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			16
			ITEM 3. Quantitative and Qualitative Disclosures About Market Risk			33
			ITEM 4. Controls and Procedures			33
			PART II - OTHER INFORMATION			34
			ITEM 1. Legal Proceedings			34
			ITEM 1A. Risk Factors			35
			ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			36
			ITEM 3. Defaults Upon Senior Securities			36
			ITEM 4. Mine Safety Disclosures			36
			ITEM 5. Other Information			36
			ITEM 6. Exhibits			37
			Signatures			38

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)


	March 31,		December 31,
	2022		2021
ASSETS
Cash and cash equivalents	$	60,139	$	36,452

Accounts receivable:
Trade, net	51,608		35,409
Other receivables, net	1,372		989

Inventory, net	79,297		78,856
Prepaid expenses and other current assets	5,278		5,144
Total current assets	197,694		156,850

Property, plant, equipment, and mineral properties, net	338,750		341,117

Water rights	19,184		19,184
Long-term parts inventory, net	27,963		29,251


Other assets, net	12,149		11,418
Non-current deferred tax asset, net	200,075		209,075
Total Assets	$	795,815	$	766,895
LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable	$	8,904	$	9,068

Income taxes payable	168		41
Accrued liabilities	21,534		22,938
Accrued employee compensation and benefits	6,823		6,805


Other current liabilities	34,374		34,571
Total current liabilities	71,803		73,423



Asset retirement obligation	27,514		27,024
Operating lease liabilities	1,957		1,879
Other non-current liabilities	1,273		1,166
Total Liabilities	102,547		103,492
Commitments and Contingencies
Common stock, 0.001 par value; 40,000,000 shares authorized;
13,218,875 and 13,149,315 shares outstanding
at March 31, 2022, and December 31, 2021, respectively	13		13
Additional paid-in capital	657,590		659,147

Retained earnings	35,665		4,243
Total Stockholders' Equity	693,268		663,403
Total Liabilities and Stockholders' Equity	$	795,815	$	766,895

See accompanying notes to these condensed consolidated financial statements.

Table of Contents

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)


	Three Months Ended March 31,
	2022		2021
Sales	$	104,399	$	71,463
Less:
Freight costs	10,237		12,078
Warehousing and handling costs	2,476		2,632
Cost of goods sold	44,510		47,645


Gross Margin	47,176		9,108

Selling and administrative	6,789		5,791
Accretion of asset retirement obligation	490		441



Loss on sale of assets	100		2
Other operating (income) expense	(267)		6
Operating Income	40,064		2,868

Other Income (Expense)
Interest expense, net	(33)		(426)

Other income	530		9


Income Before Income Taxes	40,561		2,451

Income Tax Expense	(9,139)		—
Net Income	$	31,422	$	2,451

Weighted Average Shares Outstanding:
Basic	13,160		13,054
Diluted	13,595		13,297
Earnings Per Share:
Basic	$	2.39	$	0.19
Diluted	$	2.31	$	0.18

See accompanying notes to these condensed consolidated financial statements.

Table of Contents

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(In thousands, except share amounts)


	Three-Month Period Ended March 31, 2022
	Common Stock			Additional Paid-in Capital		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance, December 31, 2021	13,149,315	$	13	$	659,147	$	4,243	$	663,403



Net income	—	—		—		31,422		31,422
Stock-based compensation	—	—		1,167		—		1,167
Exercise of stock options	8,727	—		90		—		90
Vesting of restricted common stock, net of common stock used to fund employee income tax withholding due upon vesting	60,833	—		(2,814)		—		(2,814)
Balance, March 31, 2022	13,218,875	$	13	$	657,590	$	35,665	$	693,268

SEC Form 10-Q filed by Intrepid Potash Inc