DENVER--(BUSINESS WIRE)--Intrepid Potash, Inc. (NYSE:IPI - News) today announced second quarter 2008 results with pro forma net income of $32.4 million up from $4.0 million for the second quarter 2007.
Highlights for the Second Quarter:
Average net sales price for potash this quarter was $425 per short ton ($469 per metric tonne) compared to $182 per short ton ($201 per metric tonne) in the period a year ago.
Average net sales price for langbeinite this quarter was $188 per short ton ($207 per metric tonne) compared to $109 per short ton ($120 per metric tonne) in the second quarter 2007.
Potash production in the quarter was 210,000 short tons (190,000 metric tonnes), which was the same as the second quarter 2007.
Langbeinite production in the second quarter of 2008 was 58,000 short tons (53,000 metric tonnes), a 41 percent increase over the 41,000 short tons (37,000 metric tonnes) produced in the second quarter last year.
Gross margins in the second quarter for potash were $262 per short ton or 62 percent compared to 29 percent in the three months ended June 30, 2007. Gross margins for langbeinite were $81 per short ton or 43 percent up from 6 percent in the same period last year.
Pro forma net income per diluted share was $0.43 per share in the second quarter and $0.69 per diluted share for the first half of 2008 compared to $0.05 and $0.10 for the same periods in 2007.
Earning before interest, taxes, depreciation and amortization (EBITDA) was 572 percent higher in the second quarter of 2008 at $55.1 million compared to $8.2 million last year.
Capital projects are on schedule with $13 million invested this quarter.
“We are facing the first demand-driven agriculture market in modern times. The most recent USDA report indicates that yields will come in better than initially expected, yet still leave us with low levels of stocks. The increase in crop yield demonstrates the positive returns on the fertilizer investments made by the farming community and that fertilizers are doing their jobs,” said Bob Jornayvaz, Intrepid Potash’s CEO. “It is widely believed that a tight global food supply is a long-term situation and the demand for potash will continue to increase. Intrepid is focused on the long-term by appropriately and aggressively investing capital in new capacity and efficiency projects to bring on additional lower cost tons to satisfy the needs of our customers.”
Pro forma operating income for the second quarter of 2008 was $51.9 million and $78.4 million for the first half the year. Pro forma operating income was $6.7 million in the second quarter 2007 and $13.1 million for the six-month period ended June 30, 2007. Cash from operating activities was $68.9 million for the first half of 2008 compared to $21.8 for the same period in 2007. Our adjusted pro forma net income for the quarter ended June 30, 2008 was $31.6 million compared to $4.3 million in 2007. Increases in each of theses metrics has been driven by the strong demand in the market and the associated increase in pricing of potash and langbeinite.
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