Intrepid Potash, Inc. (NYSE:IPI) Disappoints With Its Numbers
The one billion market capped agricultural chemicals manufacturer Intrepid Potash, Inc. (NYSE:IPI) announced its fourth quarter and full year operations results on 13th generated a loss of $6.0 million for the reporting quarter, which translates to a loss of 8 cent per share. These numbers in 4Q13 indicate a slowdown in the demand for the firm, since in 4Q12, the company had reported revenue of $14.5 million and EPS of 19 cents. Cash flow for the quarter was $2.8 million, while for the full year, it was $64.9 million. This year’s cash flow is 1/3rd million cash flow that the chemicals manufacturer had managed in FY12.
Intrepid Potash, Inc. (NYSE:IPI) Co-Founder, Executive Chairman of The Board and Principal Executive Officer Robert P. Jornayvaz has been quoted to have highlighted the advantages of his firm by saying that, “ A major advantage for our company, which is beneficial in any market condition, is the proximity of our assets to the market and the diversity of our customer base. Because of this proximity and our diversity, we continue to achieve an on average, higher net realized sales price than our Canadian competitors.”
2014 Outlook and Key Takeaways
The other highlights provided by the firm were the brining into operation its much anticipated HB Solar Solution mine. During the fiscal year 2015-16, the mine is expected to be producing at full capacity and would result in the total potash productivity of the firm going up in the range of 20 to 25 percent at that point in time. The firm hopes to achieve the same at production costs which are 50 percent lower than its current cost of production. For its FY14 operations, the firm has set a goal of sales to range between 420,000 tons in the first half of the year, while in the second half, expects to generate sale of 430,000 tons.