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Intrepid Announces Third Quarter 2019 Results

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DENVER, Nov. 05, 2019 (GLOBE NEWSWIRE) -- Intrepid Potash, Inc. (Intrepid) (IPI) today reported its results for the third quarter of 2019.

Key Takeaways for Q3 2019

• Double-digit sales increases across potash, Trio®, and oilfield solutions segments compared with the prior year third quarter, partially offset by startup costs associated with the accelerated ramp up of operations at Intrepid South.
• Cash flow from operations of $5.9 million.
• Net loss of $0.2 million, or $0.00 per share, a $3.6 million decrease compared to prior year third quarter net income of $3.4 million, or $0.03 per share.
• Adjusted EBITDA(1) of $9.7 million.

"We continue to execute solidly on our strategy, delivering strong top-line results from our diversified revenue streams while accelerating overall investments and expenses, including the immediate use of third-party services for water transfers, ahead of our original plans at Intrepid South," said Bob Jornayvaz, Intrepid's Executive Chairman, President, and CEO. "During the quarter, we saw strong revenue growth and meaningful bottom-line contribution from our oilfield solutions segment and we believe our investments at South have us on track to be able to deliver water to meet what our larger customers tell us will be increasing frac schedules in the coming quarters. Further, our expanded offerings at Intrepid South position us to capitalize on what we expect to be a strong 2020 for the oilfield solution business. As a premier provider of water in the northern Delaware Basin, we expect to deliver total 2019 water sales of between $25 million and $28 million."

Jornayvaz continued, "After a tough spring brought about by wet weather across much of the U.S., our third quarter saw interest from fertilizer customers to replenish soil nutrients, which led to double-digit year-over-year sales increases for potash and Trio®. We believe the strategic moves we have made to lower our cost structure and increase direct-to-retailer selling for our fertilizer businesses position us well as short-term pricing headwinds arising from wet weather and global trade uncertainty are expected to limit pricing upside in the near-term. We made the decision to move additional tons into international markets in October, which will allow us to focus on the domestic Trio® market in 2020. Heading into the fourth quarter, our long-term view of the strength and opportunity for our diversified business remains steadfast."

Consolidated Results

Intrepid generated net loss of $0.2 million, or $0.00 per share, and net income of $11.5 million, or $0.09 per share, during the third quarter and first nine months of 2019, respectively. Consolidated gross margin decreased to $6.9 million in the third quarter compared to the prior-year period. During the quarter, increased sales, which were driven primarily by improvements in the average net realized sales price per ton(1) of potash and increased byproduct and water sales, were offset by below-average evaporation across our facilities because of significantly higher-than-average rainfall, which increased our per ton production costs, and increased costs of delivering water.

Gross margin for the nine months ended September 30, 2019 increased to $33.3 million compared to the prior year period, primarily a result of higher net realized sales price per ton for potash and Trio®.

Segment Highlights

Potash

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

(in thousands, except per ton data)

Sales

$

29,213

$

26,513

$

99,090

$

89,174

Gross margin

$

4,588

$

7,089

$

22,180

$

18,337

Potash sales volumes (in tons)

78

74

261

269

Potash production volumes (in tons)

51

60

217

230

Average potash net realized sales price per ton(1)

$

266

$

258

$

285

$

251

Third quarter 2019 sales increased $2.7 million, or 10%, compared to the third quarter of 2018 driven primarily by a 5% increase in potash sales volumes and an $8 increase in average net realized sales price per ton. During the third quarter of 2019, volumes were favorably impacted by healthy subscriptions to the summer fill program after the wet spring, although this also led to an 11% decrease in average net realized sales price per ton compared with the second quarter of 2019. Gross margin in the third quarter of 2019 was down 35% driven primarily by a change in sales mix and below-average evaporation across our facilities, which resulted in a higher per ton cost of production. Magnesium chloride production and sales, a byproduct of our Wendover operation, also decreased compared to the prior year. Wendover has seen nearly double its average annual rainfall this year, reducing the amount of product available for sale.

Gross margin increased $3.8 million for the nine months ended September 30, 2019, or 21%, compared with the same period in 2018, as a 14% year-over-year increase in average net realized sales prices per ton was partially offset by a 3% decrease in potash sales volume resulting from wet weather in parts of the U.S. early in the year.

Third quarter and year-to-date production volumes also declined compared to the prior year periods due to wet weather and the timing of harvest from Intrepid's solar ponds.

Trio®

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

(in thousands, except per ton data)

Sales

$

14,637

$

10,859

$

53,881

$

51,814

Gross margin (deficit)

$

(1,108

)

$

(178

)

$

1,077

$

(4,487

)

Trio® sales volume (in tons)

46

36

173

182

Trio® production volume (in tons)

54

60

183

162

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

$

204

$

200

$

201

$

194

Sales improved $3.8 million, or 35%, to $14.6 million in the third quarter of 2019 compared to the prior year period, while gross deficit increased $0.9 million. During the third quarter, Trio® sales were favorably impacted by strong subscription to the summer fill program after the wet spring as well as increased byproduct water sales. These improvements were offset primarily by lower-of-cost-or-market adjustments related to inventory positioned for an international sale that is expected to be completed in the fourth quarter.

Gross margin improved to $1.1 million in the nine months ended September 30, 2019 compared with a gross deficit of $4.5 million during the same period of 2018. This $5.6 million improvement was driven primarily by increased byproduct water sales and improved Trio® pricing. Lower cost of goods sold resulted from reduced overall sales volumes 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.

Third quarter 2019 Trio® production volume declined 10% compared with the year-ago third quarter due to increases in the amount of standard-sized product used to produce premium Trio®. Year to date, Trio® production was up 13% over the prior year as more work-in-process inventory was converted into premium Trio®.

Oilfield Solutions

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

(in thousands)

Sales

$

7,310

$

4,038

$

19,574

$

12,918

Gross margin

$

3,469

$

2,049

$

10,031

$

9,596

Sales increased $3.3 million, or 81%, in the third quarter of 2019 compared to the same period in 2018 driven by a $1.7 million increase in water sales and a $1.6 million increase in other sales, including products such as high-speed mixing and trucking, caliche, produced water disposal royalties, and rights-of-way or damages revenue associated with Intrepid South. Third quarter gross margin increased $1.4 million, or 69%, compared to the prior year third quarter as sales increases were partly offset by an increase in the cost of delivering water from the Pecos River, third-party costs to move water on Intrepid South while new infrastructure is being built, and additional depreciation expense for the Intrepid South assets acquired in May 2019.

Year-to-date 2019 sales increased $6.7 million, or 52%, compared with the same period in 2018, as a result of increases in sales of potassium chloride brine used in high-speed mixing services, water sales, and other sales. This increase in sales was offset by increased costs related to sales of potassium chloride brine, third-party costs to move water on Intrepid South, and additional depreciation expense for the Intrepid South assets acquired in May 2019, resulting in flat gross margins in the year to date 2019 compared with the same period in 2018.

Liquidity

Cash provided by operations was $5.9 million during the third quarter of 2019 and cash spent on investing activities was $7.7 million. As of September 30, 2019, Intrepid had $13.0 million in cash and cash equivalents and $54.2 million available to borrow under its credit facility.

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. As of September 30, 2019, Intrepid had $50.0 million of senior notes outstanding and $19.8 million outstanding under its amended credit facility.

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 November 5, 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 December 5, 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 3765.

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 and cash flows, water sales, production costs, 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 prevail in outstanding legal proceedings against it;

  • 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 NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(In thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

Sales

$

51,160

$

41,410

$

171,226

$

153,906

Less:

Freight costs

8,724

6,886

30,473

27,158

Warehousing and handling costs

2,162

2,192

6,628

7,067

Cost of goods sold

31,863

23,372

99,375

95,454

Lower of cost or net realizable value inventory adjustments

1,462

1,462

781

Gross Margin

6,949

8,960

33,288

23,446

Selling and administrative

5,548

5,121

17,710

15,281

Accretion of asset retirement obligation

513

417

1,347

1,251

Care and maintenance expense

203

119

417

366

Other operating expense (income)

70

(934

)

358

(65

)

Operating Income

615

4,237

13,456

6,613

Other Income (Expense)

Interest expense, net

(849

)

(864

)

(2,258

)

(2,620

)

Interest income

99

Other income

9

23

343

103

(Loss) Income Before Income Taxes

(225

)

3,396

11,541

4,195

Income Tax Benefit (Expense)

8

(46

)

8

(46

)

Net (Loss) Income

$

(217

)

$

3,350

$

11,549

$

4,149

Weighted Average Shares Outstanding:

Basic

129,170

128,233

128,934

127,921

Diluted

129,170

130,894

131,056

130,983

Earnings Per Share:

Basic

$

0.00

$

0.03

$

0.09

$

0.03

Diluted

$

0.00

$

0.03

$

0.09

$

0.03


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

September 30,

December 31,

2019

2018

ASSETS

Cash and cash equivalents

$

13,023

$

33,222

Accounts receivable:

Trade, net

31,136

25,161

Other receivables, net

1,976

597

Inventory, net

85,363

82,046

Prepaid expenses and other current assets

5,273

4,332

Total current assets

136,771

145,358

Property, plant, equipment, and mineral properties, net

381,768

346,209

Long-term parts inventory, net

28,476

30,031

Intangible Assets

19,184

2,311

Other assets, net

7,920

1,322

Total Assets

$

574,119

$

525,231

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable:

Trade

$

9,969

$

9,107

Related parties

19

28

Income taxes payable

914

Accrued liabilities

15,077

8,717

Accrued employee compensation and benefits

3,744

4,124

Advances on credit facility

19,817

Current portion of long-term debt

20,000

Other current liabilities

16,022

11,891

Total current liabilities

84,648

34,781

Long-term debt, net

29,725

49,642

Asset retirement obligation

24,172

23,125

Operating lease liabilities

3,374

Other non-current liabilities

420

420

Total Liabilities

142,339

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 September 30, 2019, and December 31, 2018, respectively

129

129

Additional paid-in capital

652,170

649,202

Retained deficit

(220,519

)

(232,068

)

Total Stockholders' Equity

431,780

417,263

Total Liabilities and Stockholders' Equity

$

574,119

$

525,231


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

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

Cash Flows from Operating Activities:

Net (loss) income

$

(217

)

$

3,350

$

11,549

$

4,149

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

Allowance for doubtful accounts

50

(279

)

50

100

Depreciation, depletion and amortization

8,514

7,763

25,333

23,838

Accretion of asset retirement obligation

513

417

1,347

1,251

Amortization of deferred financing costs

80

183

217

550

Stock-based compensation

975

1,299

3,237

3,593

Lower of cost or net realizable value inventory adjustments

1,462

1,462

781

Gain on disposal of assets

(56

)

(17

)

(84

)

Allowance for parts inventory obsolescence

4

15

Changes in operating assets and liabilities:

Trade accounts receivable, net

(6,633

)

3,198

(6,026

)

(612

)

Other receivables, net

(247

)

(1,706

)

(1,379

)

(3,039

)

Refundable income taxes

2,663

Inventory, net

(3,317

)

(7,096

)

(3,227

)

5,631

Prepaid expenses and other current assets

(1,978

)

(779

)

(787

)

649

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

5,218

6,273

5,821

3,076

Income tax payable

(816

)

38

(914

)

210

Operating lease liabilities

(504

)

(1,474

)

Other liabilities

2,835

2,108

2,421

10,174

Net cash provided by operating activities

5,879

14,769

37,617

52,945

Cash Flows from Investing Activities:

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

(4,431

)

(3,790

)

(59,948

)

(12,668

)

Additions to intangible assets

(3,292

)

(16,873

)

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

68

92

Net cash used in investing activities

(7,723

)

(3,790

)

(76,753

)

(12,576

)

Cash Flows from Financing Activities:

Proceeds from short-term borrowings on credit facility

317

30,317

13,500

Repayments of short-term borrowings on credit facility

(500

)

(10,500

)

(17,400

)

Capitalized debt costs

(457

)

(457

)

Employee tax withholding paid for restricted stock upon vesting

(278

)

(371

)

Proceeds from exercise of stock options

9

47

Net cash (used in) provided by financing activities

(640

)

19,091

(4,224

)

Net Change in Cash, Cash Equivalents and Restricted Cash

(2,484

)

10,979

(20,045

)

36,145

Cash, Cash Equivalents and Restricted Cash, beginning of period

16,143

26,715

33,704

1,549

Cash, Cash Equivalents and Restricted Cash, end of period

$

13,659

$

37,694

$

13,659

$

37,694

Supplemental disclosure of cash flow information

Net cash paid (refunded) during the period for:

Interest

$

296

$

53

$

1,458

$

1,629

Income taxes

$

870

$

7

$

968

$

(2,828

)

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

$

1,749

$

915

$

1,749

$

915

Right-of-use assets exchanged for operating lease liabilities

$

$

$

6,558

$


INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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 September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

(in thousands)

Net (Loss) Income

$

(217

)

$

3,350

$

11,549

$

4,149

Interest expense

849

864

2,258

2,620

Income tax (benefit) expense

(8

)

46

(8

)

46

Depreciation, depletion, and amortization

8,514

7,763

25,333

23,838

Accretion of asset retirement obligation

513

417

1,347

1,251

Total adjustments

9,868

9,090

28,930

27,755

Adjusted EBITDA

$

9,651

$

12,440

$

40,479

$

31,904


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 September 30,

2019

2018

(in thousands, except per ton amounts)

Potash

Trio®

Potash

Trio®

Total Segment Sales

$

29,213

$

14,637

$

26,513

$

10,859

Less: Segment byproduct sales

4,971

1,267

4,343

539

Freight costs

3,478

3,996

3,060

3,136

Subtotal

$

20,764

$

9,374

$

19,110

$

7,184

Divided by:

Tons sold

78

46

74

36

Average net realized sales price per ton

$

266

$

204

$

258

$

200


Nine Months Ended September 30,

2019

2018

(in thousands, except per ton amounts)

Potash

Trio®

Potash

Trio®

Total Segment Sales

$

99,090

$

53,881

$

89,174

$

51,814

Less: Segment byproduct sales

14,283

3,598

11,752

1,417

Freight costs

10,325

15,503

9,801

15,062

Subtotal

$

74,482

$

34,780

$

67,621

$

35,335

Divided by:

Tons sold

261

173

269

182

Average net realized sales price per ton

$

285

$

201

$

251

$

194


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

Three Months Ended September 30, 2019

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

24,242

$

$

$

$

24,242

Trio®

13,370

13,370

Water

574

1,211

5,488

7,273

Salt

2,736

56

2,792

Magnesium Chloride

949

949

Brines

712

712

Other

1,822

1,822

Total Revenue

$

29,213

$

14,637

$

7,310

$

$

51,160


Nine Months Ended September 30, 2019

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

84,807

$

$

2,040

$

(1,319

)

$

85,528

Trio®

50,283

50,283

Water

1,371

3,090

13,864

18,325

Salt

8,105

508

8,613

Magnesium Chloride

2,895

2,895

Brines

1,912

1,912

Other

3,670

3,670

Total Revenue

$

99,090

$

53,881

$

19,574

$

(1,319

)

$

171,226


Three Months Ended September 30, 2018

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

22,170

$

$

$

$

22,170

Trio®

10,320

10,320

Water

431

494

3,803

4,728

Salt

1,364

45

1,409

Magnesium Chloride

2,029

2,029

Brines

519

519

Other

235

235

Total Revenue

$

26,513

$

10,859

$

4,038

$

$

41,410


Nine Months Ended September 30, 2018

Product

Potash Segment

Trio® Segment

Oilfield Solutions Segment

Intersegment Eliminations

Total

Potash

$

77,422

$

$

$

$

77,422

Trio®

50,397

50,397

Water

951

1,272

12,528

14,751

Salt

4,929

145

5,074

Magnesium Chloride

4,680

4,680

Brines

1,192

1,192

Other

390

390

Total Revenue

$

89,174

$

51,814

$

12,918

$

$

153,906


Three Months Ended September 30, 2019

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

29,213

$

14,637

$

7,310

$

$

51,160

Less: Freight costs

4,728

3,996

8,724

Warehousing and handling
costs

1,190

972

2,162

Cost of goods sold

18,707

9,315

3,841

31,863

Lower of cost or net realizable
value inventory adjustments

1,462

1,462

Gross Margin (Deficit)

$

4,588

$

(1,108

)

$

3,469

$

$

6,949

Depreciation, depletion, and amortization incurred1

$

6,048

$

1,517

$

747

$

202

$

8,514

Nine Months Ended September 30, 2019

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

99,090

$

53,881

$

19,574

$

(1,319

)

$

171,226

Less: Freight costs

14,110

15,502

861

30,473

Warehousing and handling
costs

3,776

2,852

6,628

Cost of goods sold

59,024

32,988

8,682

(1,319

)

99,375

Lower of cost or net realizable
value inventory adjustments

1,462

1,462

Gross Margin

$

22,180

$

1,077

$

10,031

$

$

33,288

Depreciation, depletion, and amortization incurred1

$

18,963

$

4,595

$

1,170

$

605

$

25,333

Three Months Ended September 30, 2018

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

26,513

$

10,859

$

4,038

$

$

41,410

Less: Freight costs

3,750

3,136

6,886

Warehousing and handling
costs

1,207

984

1

2,192

Cost of goods sold

14,467

6,917

1,988

23,372

Gross Margin (Deficit)

$

7,089

$

(178

)

$

2,049

$

$

8,960

Depreciation, depletion, and amortization incurred1

$

5,928

$

1,612

$

97

$

126

$

7,763

Nine Months Ended September 30, 2018

Potash

Trio®

Oilfield Solutions

Other

Consolidated

Sales

$

89,174

$

51,814

$

12,918

$

$

153,906

Less: Freight costs

12,091

15,067

27,158

Warehousing and handling
costs

3,773

3,285

9

7,067

Cost of goods sold

54,973

37,168

3,313

95,454

Lower of cost or net realizable
value inventory adjustments

781

781

Gross Margin (Deficit)

$

18,337

$

(4,487

)

$

9,596

$

$

23,446

Depreciation, depletion and amortization incurred1

$

18,474

$

4,870

$

239

$

255

$

23,838

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