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Intrepid Announces Second Quarter 2019 Results

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DENVER, CO, Aug. 06, 2019 (GLOBE NEWSWIRE) -- Intrepid Potash, Inc. (Intrepid) (IPI) today reported its results for the second quarter of 2019.

Key Takeaways for Q2 2019

  • Net income of $5.6 million, or $0.04 per share, a $6.6 million increase compared to prior year second quarter net loss of $1.0 million, or $(0.01) per share.

  • Adjusted EBITDA(1) of $14.9 million.

  • Cash flow from operations of $23.6 million.

  • Potash, Trio®, and oilfield solutions segment gross margins of $8.2 million, $1.5 million, and $3.5 million, increases of $2.0 million, $3.7 million, and $0.2 million, respectively, compared to the prior year second quarter.

  • Acquired Dinwiddie Jal Ranch (Intrepid South) on May 1.

Recent Developments

  • Signed a joint marketing agreement with NGL Energy Partners (NGL) for Intrepid to handle the development, transportation, marketing, and sale of water from approximately 185,000 acres of the companies’ properties in the Northern Delaware Basin.

  • Announced the acquisition, together with NGL, of land in Texas near Intrepid South for the development of a produced water disposal facility and to facilitate water recycling plans. Successfully permitted five disposal wells on the property.

  • Entered into an amended credit facility, moving from a $50 million asset-backed revolving facility to a $75 million cash-flow revolving facility with a $75 million accordion.

"Since our last earnings announcement, we have undertaken one of our most productive and rewarding three-month periods in recent memory, highlighted by multiple acquisitions and an additional, strategic partnership in our growing oilfield solutions segment," said Bob Jornayvaz, Intrepid's Executive Chairman, President, and CEO. "To top it off, we delivered a solid second quarter as our diversified revenue streams provided a boost to overall results and our potash and Trio® segments managed good results despite a challenging spring season that saw record wet weather throughout most of the country. Operations at Intrepid South exceeded our expectations during the quarter, adding meaningfully to the bottom line through sales of water and other oilfield-related revenue streams. We expect water sales to ramp up in the second half of the year as water-transfer infrastructure and takeaway capacity increase in the Delaware Basin. We continue to expect total water sales for the year towards the high end of the $20 million to $30 million range."

Jornayvaz continued, “Recent summer fill program announcements for potash and Trio® have produced a solid order book for our agricultural products entering the third quarter, albeit at reduced prices. Our joint marketing agreement with NGL and the acquisition of land in Texas for the development of a produced water disposal facility with NGL are the latest steps in pursuing our goal to expand our oilfield solutions footprint and increase the cash flow from Intrepid South. Our improved financial position and cash flow generation over the past 18 months have allowed us to return to an entrepreneurial mindset, and we believe we are well-positioned to pursue additional opportunities across our business segments."

Consolidated Results

Intrepid generated second quarter 2019 net income of $5.6 million, or $0.04 per share, and first half 2019 net income of $11.8 million, or $0.09 per share. Consolidated gross margin increased to $13.2 million and $26.3 million in the second quarter and first half of 2019, respectively, compared to the prior-year periods. These increases were driven primarily by improvements in the average net realized sales price(1) of potash and increased byproducts sales.

Segment Highlights

Potash

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

(in thousands, except per ton data)

Sales

$

35,547

$

32,055

$

69,877

$

62,661

Gross margin

$

8,228

$

6,278

$

17,592

$

11,254

Potash sales volumes (in tons)

95

98

183

195

Potash production volumes (in tons)

56

45

167

170

Average potash net realized sales price per ton(1)

$

299

$

254

$

294

$

249

Gross margin in the second quarter of 2019 increased $2.0 million, or 31%, compared to the second quarter of 2018, as increased market prices for potash drove an 18% increase in average net realized sales price per ton. First half 2019 gross margin increased $6.3 million, or 56%, compared to the prior-year period, as higher average net realized sales price per ton was partially offset by a 6% decrease in sales volume due to continued wet weather in parts of the U.S.

Second quarter 2019 production volume increased compared to the prior year due to timing of harvest from Intrepid's solar ponds.

Trio®

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

(in thousands, except per ton data)

Sales

$

21,435

$

19,134

$

39,245

$

40,954

Gross margin (deficit)

$

1,454

$

(2,235

)

$

2,186

$

(4,312

)

Trio® sales volume (in tons)

71

69

127

146

Trio® production volume (in tons)

66

55

129

102

Average Trio® net realized sales price per ton(1)

$

196

$

191

$

200

$

193

Gross margin improved to $1.5 million during the second quarter of 2019 on higher average net realized sales price per ton and increased byproduct water sales. First half 2019 gross margin improved to $2.2 million, an increase of $6.5 million compared to the prior-year period, primarily as a result of increased byproduct water sales and lower cost of goods sold. Lower cost of goods sold resulted from recovery-rate improvements over the past year and more product sold into international markets, some of which carried lower per ton inventory cost due to previous write-downs based on an estimate of net realizable value.

Second quarter 2019 sales volume increased 3% compared to the prior-year period as increased international shipments were mostly offset by lower domestic volumes. First half 2019 sales decreased 13% compared to the prior year as continued wet weather in parts of the U.S. and uncertainty surrounding price towards the end of the second quarter resulted in decreased domestic sales.

Second quarter and first half 2019 production volume increased 20% and 26%, respectively, compared to the prior year, as Intrepid converted more work-in-process inventory into premium Trio®.

Oilfield Solutions

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

(in thousands)

Sales

$

5,641

$

3,987

$

12,263

$

8,880

Gross margin

$

3,489

$

3,243

$

6,561

$

7,544

Sales increased $1.7 million, or 41%, in the second quarter of 2019 compared to the same period in 2018 mainly due to a $1.0 million increase in sales of products such as high-speed mixing and trucking, caliche, produced water disposal royalties, and right-of-way or damages revenue associated with Intrepid South.

Gross margin in the second quarter of 2019 increased $0.2 million, or 8%, compared to the prior year as improved sales were partially offset by expenses associated with the Intrepid South acquisition and costs related to high-speed mixing and trucking services and water sales.

First half 2019 sales increased $3.4 million, or 38%, due to $2.0 million in sales of potassium chloride brine used in high-speed mixing services and a $1.7 million increase in other sales. Water sales decreased $0.4 million compared to the first half of 2018 due to an increase in sales classified as a byproduct of our potash or Trio® segment.

Costs related to the sales of potassium chloride brine and water and the Intrepid South acquisition resulted in a $1.0 million decrease in gross margin in the first half of 2019 compared to the first half of 2018.

Liquidity

Cash provided by operations was $23.6 million during the second quarter of 2019. Cash spent on investing activities was $61.8 million, primarily due to the Intrepid South acquisition in May 2019. As of June 30, 2019, Intrepid had $15.5 million in cash and cash equivalents and $20.9 million available to borrow under its credit facility. As of June 30, 2019, Intrepid had $50 million of senior notes outstanding and $20 million outstanding under its credit facility with Bank of Montreal.

In August 2019, Intrepid amended its credit facility to change it from an asset-backed revolving credit facility to a cash-flow revolving credit facility, to increase the amount available under the facility from $50 million to $75 million plus an additional $75 million accordion, and to extend the maturity date to August 1, 2024.

Notes

1 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

A teleconference to discuss the quarter is scheduled for August 6, 2019, at 10:00 a.m. ET. The dial-in number is 1-800-319-4610 for U.S. and Canada, and is +1-631-891-4304 for other countries. The call will also be streamed on the Intrepid website, intrepidpotash.com.

An audio recording of the conference call will be available through September 6, 2019, at intrepidpotash.com and by dialing 1-800-319-6413 for U.S. and Canada, or +1-631-883-6842 for other countries. The replay will require the input of the conference identification number 3448.

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, and its market outlook. 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 Intrepid's products and services;

  • Intrepid's ability to successfully identify and implement any opportunities to grow its business whether through expanded sales of water, Trio®, byproducts, and other non-potassium related products or other revenue diversification activities;

  • challenges to Intrepid's water rights;

  • Intrepid’s ability to integrate the Intrepid South assets into its existing business and achieve the expected benefits of the acquisition;

  • Intrepid's ability to sell Trio® internationally and manage risks associated with international sales, including pricing pressure and freight costs;

  • the costs of, and Intrepid's 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;

  • Intrepid's ability to comply with the terms of its senior notes and its revolving credit facility, including the underlying covenants, to avoid a default under those agreements;

  • further write-downs of the carrying value of assets, including inventories;

  • 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 Intrepid's 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 the prices of raw materials, including chemicals, natural gas, and power;

  • Intrepid's 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;

  • Intrepid's inability to fund necessary capital investments; and

  • the other risks, uncertainties, and assumptions described in Intrepid's periodic filings with the Securities and Exchange Commission, including in "Risk Factors" in Intrepid's Annual Report on Form 10-K for the year ended December 31, 2018, as updated by subsequent Quarterly Reports on Form 10-Q.

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 duty 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:
Matt Preston, Investor Relations
Phone: 303-996-3048
Email: matt.preston@intrepidpotash.com




INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018
(In thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Sales

$

62,512

$

55,176

$

120,066

$

112,495

Less:

Freight costs

11,293

9,789

21,749

20,272

Warehousing and handling costs

2,230

2,603

4,466

4,877

Cost of goods sold

35,818

35,422

67,512

72,079

Lower of cost or net realizable value inventory adjustments

76

781

Gross Margin

13,171

7,286

26,339

14,486

Selling and administrative

6,355

6,190

12,162

10,160

Accretion of asset retirement obligation

417

417

834

834

Care and maintenance expense

65

118

214

247

Other operating (income) expense

(83

)

703

288

869

Operating Income

6,417

(142

)

12,841

2,376

Other Income (Expense)

Interest expense, net

(806

)

(878

)

(1,409

)

(1,756

)

Interest income

99

Other income

62

334

80

Income Before Income Taxes

5,611

(958

)

11,766

799

Income Tax Expense

Net Income (Loss)

$

5,611

$

(958

)

$

11,766

$

799

Weighted Average Shares Outstanding:

Basic

128,896

127,861

128,813

127,762

Diluted

131,043

127,861

130,985

130,966

Earnings Per Share:

Basic

$

0.04

$

(0.01

)

$

0.09

$

0.01

Diluted

$

0.04

$

(0.01

)

$

0.09

$

0.01


INTREPID POTASH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF JUNE 30, 2019 AND DECEMBER 31, 2018
(In thousands, except share and per share amounts)

June 30,

December 31,

2019

2018

ASSETS

Cash and cash equivalents

$

15,508

$

33,222

Accounts receivable:

Trade, net

24,553

25,161

Other receivables, net

1,729

597

Inventory, net

82,200

82,046

Prepaid expenses and other current assets

3,294

4,332

Total current assets

127,284

145,358

Property, plant, equipment, and mineral properties, net

388,157

346,209

Long-term parts inventory, net

29,783

30,031

Intangible Assets

15,892

2,311

Other assets, net

6,533

1,322

Total Assets

$

567,649

$

525,231

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable:

Trade

$

6,440

$

9,107

Related parties

28

28

Income taxes payable

816

914

Accrued liabilities

10,507

8,717

Accrued employee compensation and benefits

5,973

4,124

Advances on credit facility

20,000

Current portion of long-term debt

20,000

Other current liabilities

15,010

11,891

Total current liabilities

78,774

34,781

Long-term debt, net

29,697

49,642

Asset retirement obligation

23,909

23,125

Operating lease liabilities

3,827

Other non-current liabilities

420

420

Total Liabilities

136,627

107,968

Commitments and Contingencies

Common stock, $0.001 par value; 400,000,000 shares authorized;

129,170,282 and 128,716,595 shares outstanding

at June 30, 2019, and December 31, 2018, respectively

129

129

Additional paid-in capital

651,195

649,202

Retained deficit

(220,302

)

(232,068

)

Total Stockholders' Equity

431,022

417,263

Total Liabilities and Stockholders' Equity

$

567,649

$

525,231


INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018
(In thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Cash Flows from Operating Activities:

Net income (loss)

$

5,611

$

(958

)

$

11,766

$

799

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Allowance for doubtful accounts

379

379

Depreciation, depletion and amortization

8,073

7,560

16,819

16,075

Accretion of asset retirement obligation

417

417

834

834

Amortization of deferred financing costs

69

184

137

367

Stock-based compensation

1,231

1,347

2,262

2,294

Lower of cost or net realizable value inventory adjustments

76

781

Loss (gain) on disposal of assets

20

(50

)

39

(84

)

Allowance for parts inventory obsolescence

15

4

15

Changes in operating assets and liabilities:

Trade accounts receivable, net

3,664

8,018

607

(3,810

)

Other receivables, net

(770

)

(1,126

)

(1,132

)

(1,333

)

Refundable income taxes

(181

)

2,663

Inventory, net

4,181

6,718

90

12,727

Prepaid expenses and other current assets

1,088

514

1,191

1,428

Accounts payable, accrued liabilities, and accrued employee
compensation and benefits

(1,852

)

(3,198

)

603

(3,197

)

Income tax payable

(98

)

172

(98

)

172

Operating lease liabilities

(491

)

(970

)

Other liabilities

2,474

4,385

(414

)

8,066

Net cash provided by operating activities

23,617

24,272

31,738

38,176

Cash Flows from Investing Activities:

Additions to property, plant, equipment, mineral properties and other assets

(51,559

)

(2,408

)

(55,517

)

(8,878

)

Additions to intangible assets

(13,581

)

(13,581

)

Deposit on asset purchase

3,250

Proceeds from sale of property, plant, equipment, and mineral properties

68

58

68

92

Net cash used in investing activities

(61,822

)

(2,350

)

(69,030

)

(8,786

)

Cash Flows from Financing Activities:

Proceeds from short-term borrowings on credit facility

30,000

30,000

13,500

Repayments of short-term borrowings on credit facility

(10,000

)

(1,500

)

(10,000

)

(17,400

)

Employee tax withholding paid for restricted stock upon vesting

(166

)

(309

)

(278

)

(371

)

Proceeds from exercise of stock options

36

9

47

Net cash provided by (used in) financing activities

19,834

(1,773

)

19,731

(4,224

)

Net Change in Cash, Cash Equivalents and Restricted Cash

(18,371

)

20,149

(17,561

)

25,166

Cash, Cash Equivalents and Restricted Cash, beginning of period

34,514

6,566

33,704

1,549

Cash, Cash Equivalents and Restricted Cash, end of period

$

16,143

$

26,715

$

16,143

$

26,715

Supplemental disclosure of cash flow information

Net cash paid (refunded) during the period for:

Interest

$

1,113

$

1,481

$

1,162

$

1,576

Income taxes

$

98

$

8

$

98

$

(2,835

)

Accrued purchases for property, plant, equipment, and mineral properties

$

3,174

$

651

$

3,174

$

651

Right-of-use assets exchanged for operating lease liabilities

$

810

$

$

6,726

$


INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018
(In thousands, except per share amounts)

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 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.


Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) is calculated as net income (loss) 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 Income to Adjusted EBITDA:

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

(in thousands)

Net Income (Loss)

$

5,611

$

(958

)

$

11,766

$

799

Interest expense

806

878

1,409

1,756

Depreciation, depletion, and amortization

8,073

7,560

16,819

16,075

Accretion of asset retirement obligation

417

417

834

834

Total adjustments

9,296

8,855

19,062

18,665

Adjusted EBITDA

$

14,907

$

7,897

$

30,828

$

19,464


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,

2019

2018

(in thousands, except per ton amounts)

Potash

Trio®

Potash

Trio®

Total Segment Sales

$

35,547

$

21,435

$

32,055

$

19,134

Less: Segment byproduct sales

3,527

1,073

3,867

294

Freight costs

3,604

6,471

3,276

5,655

Subtotal

$

28,416

$

13,891

$

24,912

$

13,185

Divided by:

Tons sold

95

71

98

69

Average net realized sales price per ton

$

299

$

196

$

254

$

191


Six Months Ended June 30,

2019

2018

(in thousands, except per ton amounts)

Potash

Trio®

Potash

Trio®

Total Segment Sales

$

69,877

$

39,245

$

62,661

$

40,954

Less: Segment byproduct sales

9,312

2,332

7,408

878

Freight costs

6,847

11,507

6,735

11,931

Subtotal

$

53,718

$

25,406

$

48,518

$

28,145

Divided by:

Tons sold

183

127

195

146

Average net realized sales price per ton

$

294

$

200

$

249

$

193


INTREPID POTASH, INC.
DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018
(In thousands)

Three Months Ended June 30, 2019

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

32,020

$

$

218

$

(111

)

$

32,127

Trio®

20,362

20,362

Water

457

938

4,270

5,665

Salt

2,368

135

2,503

Magnesium Chloride

206

206

Brines

496

496

Other

1,153

1,153

Total Revenue

$

35,547

$

21,435

$

5,641

$

(111

)

$

62,512


Six Months Ended June 30, 2019

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

60,565

$

$

2,040

$

(1,319

)

$

61,286

Trio®

36,913

36,913

Water

797

1,879

8,375

11,051

Salt

5,369

453

5,822

Magnesium Chloride

1,946

1,946

Brines

1,200

1,200

Other

1,848

1,848

Total Revenue

$

69,877

$

39,245

$

12,263

$

(1,319

)

$

120,066


Three Months Ended June 30, 2018

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

28,188

$

$

$

$

28,188

Trio®

18,840

18,840

Water

350

270

3,877

4,497

Salt

1,832

24

1,856

Magnesium Chloride

1,246

1,246

Brines

439

439

Other

110

110

Total Revenue

$

32,055

$

19,134

$

3,987

$

$

55,176


Six Months Ended June 30, 2018

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

55,252

$

$

$

$

55,252

Trio®

40,077

40,077

Water

520

776

8,725

10,021

Salt

3,565

101

3,666

Magnesium Chloride

2,651

2,651

Brines

673

673

Other

155

155

Total Revenue

$

62,661

$

40,954

$

8,880

$

$

112,495


Three Months Ended June 30, 2019

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

35,547

$

21,435

$

5,641

$

(111

)

$

62,512

Less: Freight costs

4,742

6,471

80

11,293

Warehousing and handling
costs

1,319

911

2,230

Cost of goods sold

21,258

12,599

2,072

(111

)

35,818

Gross Margin

$

8,228

$

1,454

$

3,489

$

$

13,171

Depreciation, depletion, and amortization incurred1

$

6,120

$

1,520

$

232

$

201

$

8,073

Six Months Ended June 30, 2019

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

69,877

$

39,245

$

12,263

$

(1,319

)

$

120,066

Less: Freight costs

9,382

11,506

861

21,749

Warehousing and handling
costs

2,586

1,880

4,466

Cost of goods sold

40,317

23,673

4,841

(1,319

)

67,512

Gross Margin

$

17,592

$

2,186

$

6,561

$

$

26,339

Depreciation, depletion, and amortization incurred1

$

12,915

$

3,078

$

423

$

403

$

16,819

Three Months Ended June 30, 2018

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

32,055

$

19,134

$

3,987

$

$

55,176

Less: Freight costs

4,134

5,655

9,789

Warehousing and handling
costs

1,411

1,182

10

2,603

Cost of goods sold

20,232

14,456

734

35,422

Lower of cost or net realizable
value inventory adjustments

76

76

Gross Margin (Deficit)

$

6,278

$

(2,235

)

$

3,243

$

$

7,286

Depreciation, depletion, and amortization incurred1

$

5,768

$

1,625

$

78

$

89

$

7,560

Six Months Ended June 30, 2018

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

62,661

$

40,954

$

8,880

$

$

112,495

Less: Freight costs

8,340

11,932

20,272

Warehousing and handling
costs

2,566

2,300

11

4,877

Cost of goods sold

40,501

30,253

1,325

72,079

Lower of cost or net realizable
value inventory adjustments

781

781

Gross Margin (Deficit)

$

11,254

$

(4,312

)

$

7,544

$

$

14,486

Depreciation, depletion and amortization incurred1

$

12,546

$

3,259

$

142

$

128

$

16,075

(1) Depreciation, depletion, and amortization incurred for potash and Trio® excludes depreciation, depletion, and amortization amounts absorbed in or relieved from inventory.