Intrepid Potash, Inc. (NYSE:IPI) Q1 2024 Earnings Call Transcript May 9, 2024
Intrepid Potash, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Thank you for standing by. This is the conference operator. Welcome to the Intrepid Potash Incorporated First Quarter 2024 Results Conference Call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask question. [Operator Instructions] I would now like to turn the conference over to Evan Mapes, Investor Relations. Please go ahead.
Evan Mapes: Thank you, Michelle. Good morning, everyone. Thanks for joining us to discuss and review Intrepid’s first quarter 2024 results. With me today is Intrepid’s CFO, Matt Preston. And to be able to answer questions during the Q&A session is our VP of Sales and Marketing, Zachry Adams; and our VP of Operations, John Galassini. Please be advised that our remarks today include forward-looking statements as defined by US securities laws. These forward-looking statements are subject to risks and uncertainties that could cause our actual results materially different from those anticipated are based on information available to us today and we assume no obligation to update them. These risks and uncertainties are described in our periodic reports with the SEC, which are incorporated herein by reference.
During today’s call we refer to certain non-GAAP financial and operational measures. Reconciliations to the most directly comparable GAAP measures are included in yesterday’s press release and along with our SEC filings are both available on our website at intrepidpotash.com. I’ll now turn the call over to Matt.
Matt Preston: Thank you, Evan. Good morning, everyone. We appreciate your interest in Intrepid and attendance for our first quarter earnings call. As we first announced in April press release, our CEO, Bob Jornayvaz is currently on a temporary medical leave of absence. We continue to wish Bob a speedy recovery. And while we anticipate and understand your interest, we don’t have any new information to share with you today. We will, however, continue to issue updates on his recovery and status as it relates to Intrepid as we have them. Moving on to our first quarter results, our adjusted EBITDA totaled $7.7 million, a modest improvement sequentially, but down from $16.4 million in the prior year period. The key highlight in Q1 was robust demand for our fertilizer products for spring application and we are pleased to report that our sales volumes and average net realized sales prices came in at the upper end of our guidance.
For potash we sold 74,000 tons at an average net realized sales price of $395 per ton. While for Trio, our volumes totaled 91,000 tons at an average price of $300 per ton. Behind the strong demand, US farmers have maintained their approach to yield maximization even with key crop futures, corn and soybeans coming back closer to historical averages. Also working to our advantage, potash pricing has seen relative stability over the past few months, which has been driven by several factors including global potash demand, returning to longer term annual growth trends amidst a more balanced market, key international markets like Southeast Asia returning to higher potash application rates, and international crops such as palm oil, rice, coco and coffee continued to trade well-above historical averages.
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