Intrepid Potash(IPI) - 2024 Q4 - Annual Results

Financial Performance - Total sales for Q4 2024 were $55.8 million, and for the full year 2024, sales totaled$254.7 million, a decrease of 8% and 9% respectively compared to 2023[3][9]. - The company reported a net loss of $207.0 million for Q4 2024 and a full-year net loss of$212.8 million, impacted by non-cash charges including $199.0 million related to deferred tax assets[3][10]. - For the three months ended December 31, 2024, Intrepid reported sales of$55.803 million, a decrease of 1.5% compared to $56.663 million in the same period of 2023[31]. - Total revenue for the year ended December 31, 2024, was$254,694 thousand, a decrease from $279,083 thousand in 2023, indicating a year-over-year decline of approximately 8.7$212.845 million, compared to a net loss of $35.673 million in 2023, indicating a significant increase in losses[31]. - The net loss for the three months ended December 31, 2024, was$207.049 million, compared to a net loss of $37.288 million in the same period of 2023[49]. - Adjusted net loss for the three months ended December 31, 2024, was$1.399 million, compared to an adjusted net loss of $5.230 million in the same period of 2023[49]. - The gross margin for the year ended December 31, 2024, was$29.082 million, down from $36.846 million in 2023, reflecting a decline of approximately 21$29.082 million, compared to $36.805 million in 2023, indicating a decrease of about 21.2$377 per ton, down 19% from 2023[12][13]. - The average net realized sales price per ton for potash in Q4 2024 was $347, down from$431 in Q4 2023, reflecting a decrease of approximately 19.5%[52]. - Total Segment Sales for the year ended December 31, 2024, increased to $105,428,000 from$102,182,000 in 2023, a growth of 3.3%[54]. - Total Segment Sales for the three months ended December 31, 2024, increased to $23,490,000 from$21,130,000 in 2023, representing a growth of 11.2%[54]. - The number of tons sold for the year ended December 31, 2024, increased to 254 from 228 in 2023, a growth of 11.4%[54]. Cash Flow and Liquidity - Cash and cash equivalents increased to $41.309 million as of December 31, 2024, from$4.071 million in 2023, showing a substantial improvement in liquidity[32]. - Cash flows from operating activities for the year ended December 31, 2024, were $72,495 thousand, an increase from$43,229 thousand in 2023, showing a growth of approximately 67.7%[34]. - Cash, cash equivalents, and restricted cash at the end of the period on December 31, 2024, were $41,898 thousand, a significant increase from$4,651 thousand at the end of 2023[34]. - The company experienced a net cash used in investing activities of $29,531 thousand for the year ended December 31, 2024, compared to$59,554 thousand in 2023, indicating a reduction of about 50.5%[34]. Assets and Liabilities - Total assets decreased to $594.520 million in 2024 from$768.570 million in 2023, representing a decline of approximately 22.6%[32]. - Total liabilities increased to $120.128 million in 2024, compared to$84.142 million in 2023, indicating a rise of approximately 42.7%[32]. - The company reported an impairment of long-lived assets of $10.708 million for the year ended December 31, 2024, down from$43.288 million in 2023[31]. - The company incurred an impairment of long-lived assets totaling $10,708 thousand for the year ended December 31, 2024, down from$43,288 thousand in 2023, indicating a reduction of about 75.2%[34]. Future Outlook and Projects - The company expects capital expenditures for 2025 to be between $36 million and$42 million, primarily for sustaining capital projects[3][4]. - The HB Solution Mine's new brine injection pipeline has increased injection rates to approximately 1,900 gallons per minute, nearly doubling previous rates[6][7]. - The company plans to drill a test well into the AMAX Cavern in Q2 2025, with an expected expenditure of $4.5 million for the project[8]. - The company has identified opportunities for growth through expanded sales of water, Trio, and other non-potassium related products[26]. - Intrepid is the only U.S. producer of muriate of potash, which is essential for agricultural applications, and continues to focus on environmentally friendly production methods[25].