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$IPI 2018-08-11 : Transcripts- IPI Edited Transcript of IPI earnings conference call

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Q2 2018 Intrepid Potash Inc Earnings Call

DENVER Aug 12, 2018 (Thomson StreetEvents) — Edited Transcript of Intrepid Potash Inc earnings conference call or presentation Thursday, August 2, 2018 at 2:00:00pm GMT

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$IPI 2018-08-02 : Transcripts- IPI Edited Transcript of IPI earnings conference call

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Q2 2018 Intrepid Potash Inc Earnings Call

DENVER Aug 3, 2018 (Thomson StreetEvents) — Edited Transcript of Intrepid Potash Inc earnings conference call or presentation Thursday, August 2, 2018 at 2:00:00pm GMT

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EARNING UPDATE $IPI Intrepid Potash, Inc. for quarter ending q_Dec17 – Revenue grew, Margins expanded

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on IPI [lwa][/s2If][s2If current_user_can(access_s2member_level0)]Intrepid Potash, Inc. reported earnings (EPS) of -0.01 per share for the quarter ending q_Dec17. This is vis-vis -0.02 per share for the previous quarter ending q_Sep17, a growth of 50 %. Compared to last year same quarter (q_Dec16), earnings…

Jornayvaz Robert P III (Exec. Chair, President & CEO, 10% Owner) has executed an insider transaction in IPI . A total of 10000 were in Buy transaction. The trade happened at 3.85. The stock current price is 3.86. The transaction was reported on Buy The pattern and the details of insider transaction in IPI can be observed below The GENESIS investing platform provides industry leading technical and…

The potash producer is in covenant compliance talks with bondholders and its credit facility matures soon, but one analyst believes it will fix its financing troubles despite the depressed market.

by Lisa Allen

The potash industry is in the doldrums thanks to depressed prices that are expected to persist, leading to cutbacks by the industry's giants and financial woes for smaller players such as Intrepid Potash Inc. (IPI), which is in talks with its lenders over covenant compliance problems.

"It's a pretty bad situation" for potash companies, David Asbridge, president and senior economist at Chesterfield, Miss., agricultural consulting and research firm NPK Fertilizer Advisory Service, said by phone.

The prices alone say a lot. Potash fetched an average of $256 per metric ton in June, according to data from the World Bank. For perspective, that's down from an average of $379.2 throughout 2013, and from decade highs that reached $870 in March 2009. Prices were more modest 10 years ago, averaging $175.5 per metric ton in 2006.

Asbridge explained that the potash producers made a great deal of money when prices were high and invested a lot of it in new plants and equipment.

"We've seen a huge jump in capacity that has way overshadowed demand," he said.

Asbridge believes it will be a few years before potash prices improve meaningfully. He estimates that worldwide, potash producers are operating at only 60% to 65% of capacity.

Some of the largest producers are cutting back.

For example, Mosaic Co. (MOS) said July 13 that it will idle its Colonsay, Saskatchewan, potash mine and temporarily lay off 330 employees.

Potash Corp. of Saskatchewan Inc. said in January that it would suspend production at a New Brunswick mine.

In the middle market, Denver-based Intrepid took aggressive cost-cutting measure in May, laying off 300 workers and also idling its West facility, which accounted for 42% of its potash production in 2015.

Intrepid is also dealing with debt issues.

The company said on July 15 that holders of its $150 million in senior unsecured bonds have agreed to extend a financial covenant waiver through July 29 as the parties continue talks.

"We expect to have sufficient liquidity to meet our obligations as they come due," Intrepid's executive chairman, president, and CEO, Bob Jornayvaz, had assured investors during a May 9 first quarter earnings call.

CLSA Ltd. analyst Mark Connelly said in a phone interview that he agrees with that assessment.

"Intrepid doesn't have a big credit problem. What it has is a cash flow problem, and the lenders have every incentive to help them through that," Connelly said, adding that the lenders have "plenty of asset coverage."

As Connelly sees it, Intrepid was previously too aggressive with its spending, taking on too many new projects, and now it needs a bank loan that will provide the flexibility it needs to get through the price downturn.

The company's $8 million unsecured credit facility, led by U.S. Bank NA as the administrative agent, matures July 31. It only had $500,000 outstanding as of March 31.

The bonds have far-out maturities: they comprise $60 million in 3.23% senior unsecured notes due April 16, 2020; $45 million in 4.13% senior unsecured notes due April 14, 2023; and $45 million in 4.28% senior unsecured notes due April 16, 2025.

Intrepid executives have said they're in talks for an alternative credit facility, but nothing has materialized yet.

Connelly believes the company should be able to get a secured bank loan, perhaps even one that would make it possible to redeem the bonds, though Intrepid could also keep the bonds and pay a fee for a covenant amendment.

Intrepid says it provides about 9% of the U.S.'s annual supply of potash, which is often used as an ingredient in crop development and animal feed products. The company also has its own brand of specialty fertilizer, Trio.

During the quarter ended March 31, Intrepid reported an $18.43 million net loss on $73.28 million in sales, compared to $6.53 million in net income on $117.02 million in sales during the same quarter last year.

The company recorded $627.37 million in assets, including $24.42 million in cash and cash equivalents and $30.01 million in short-term investments, and $218.37 million in liabilities as of March 31.

An Intrepid spokesman said he couldn't comment because the company is in a quiet period until it releases earnings.

For companies in the development phase, the outlook is grim.

Connelly said junior potash miners who still need financing to build or complete their projects are unlikely to find it, given how oversupplied the market is already.

Some companies on the smaller side are suffering heavily in the price downturn.

Toronto-based MBAC Fertilizer Corp., which makes phosphate and potash based crop, released a plan in April to restructure in court in Canada and Brazil.