Intrepid Potash, Inc. (IPI) saw its loss narrow to $13.68 million, or $0.17 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $18.43 million, or $0.24 a share. On the other hand, adjusted net loss for the quarter narrowed to $12.37 million, or $0.15 a share from a loss of $16.71 million or $0.21 a share, a year ago. Revenue during the quarter plunged 34.04 percent to $48.33 million from $73.28 million in the previous year period. Gross margin for the quarter stood at negative 5.91 percent as compared to a negative 12.49 percent for the previous year period. Operating margin for the quarter stood at negative 20.67 percent as compared to a negative 22.46 percent for the previous year period.
Operating loss for the quarter was $9.99 million, compared with an operating loss of $16.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.07 million compared to negative $0.78 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 0.15 percent for the quarter compared to negative 1.06 percent in the last year period.
"Our transition to lower-cost solar potash production and Trio®-only production at our East facility is beginning to show the promise we envisioned last year," said Bob Jornayvaz, Intrepid's Executive Chairman, President and CEO. "Solar-only potash production improved our potash margins, and Trio® sales volumes reflected our work to expand our presence in the international market. We continue to make progress in our water marketing and expect water sales to provide meaningful cash flow as the year continues."
Operating cash flow turns positive
Intrepid Potash, Inc. has generated cash of $1.82 million from operating activities during the quarter as against cash outgo of $1.09 million in the last year period. Cash flow from investing activities was $3.13 million for the quarter, down 82.23 percent or $14.48 million, when compared with the last year period.
Cash flow from financing activities was $11.36 million for the quarter as against cash outgo of $1.41 million in the last year period.
Cash and cash equivalents stood at $20.77 million as on Mar. 31, 2017, down 14.95 percent or $3.65 million from $24.42 million on Mar. 31, 2016.
Working capital declines
Intrepid Potash, Inc. has witnessed a decline in the working capital over the last year. It stood at $114.02 million as at Mar. 31, 2017, down 24.46 percent or $36.92 million from $150.94 million on Mar. 31, 2016. Current ratio was at 6.03 as on Mar. 31, 2017, up from 4.42 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 84 days for the quarter from 119 days for the last year period. Days sales outstanding went up to 30 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 76 days for the quarter compared with 116 days for the previous year period. At the same time, days payable outstanding went up to 22 days for the quarter from 20 for the same period last year.
Debt comes down significantly
Intrepid Potash, Inc. has recorded a decline in total debt over the last one year. It stood at $88.02 million as on Mar. 31, 2017, down 40.96 percent or $61.06 million from $149.07 million on Mar. 31, 2016. Intrepid Potash has recorded a decline in long-term debt over the last one year. It stood at $88.02 million as on Mar. 31, 2017, down 40.96 percent or $61.06 million from $149.07 million on Mar. 31, 2016. Total debt was 16.33 percent of total assets as on Mar. 31, 2017, compared with 23.76 percent on Mar. 31, 2016. Debt to equity ratio was at 0.22 as on Mar. 31, 2017, down from 0.36 as on Mar. 31, 2016.
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