Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Intrepid Potash, Inc. | |
Entity Central Index Key | 1,421,461 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 129,064,296 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 20,770 | $ 4,464 |
Accounts receivable: | ||
Trade, net | 19,119 | 10,343 |
Other receivables, net | 892 | 492 |
Refundable income taxes | 1,384 | 1,379 |
Inventory, net | 86,194 | 94,355 |
Prepaid expenses and other current assets | 8,317 | 12,710 |
Total current assets | 136,676 | 123,743 |
Property, plant and equipment, and mineral properties, net | 374,293 | 388,490 |
Long-term parts inventory, net | 23,731 | 21,037 |
Other assets, net | 4,381 | 7,631 |
Total Assets | 539,081 | 540,901 |
Accounts payable: | ||
Trade | 8,981 | 10,210 |
Related parties | 28 | 31 |
Accrued liabilities | 10,742 | 8,690 |
Accrued employee compensation and benefits | 2,762 | 4,225 |
Other current liabilities | 145 | 964 |
Total current liabilities | 22,658 | 24,120 |
Long-term debt, net | 88,017 | 133,434 |
Asset retirement obligation | 20,365 | 19,976 |
Total Liabilities | 131,040 | 177,530 |
Commitments and Contingencies | ||
Common stock, $0.001 par value; 400,000,000 shares authorized; 125,995,330 and 75,839,998 shares outstanding at March 31, 2017, and December 31, 2016, respectively | 126 | 76 |
Additional paid-in capital | 642,071 | 583,653 |
Retained deficit | (234,156) | (220,358) |
Total Stockholders' Equity | 408,041 | 363,371 |
Total Liabilities and Stockholders' Equity | $ 539,081 | $ 540,901 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 125,995,330 | 75,839,998 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 48,332 | $ 73,277 |
Less: | ||
Freight costs | 8,721 | 10,332 |
Warehousing and handling costs | 2,770 | 2,664 |
Cost of goods sold | 35,873 | 59,777 |
Lower-of-cost-or-market inventory adjustments | 3,824 | 9,007 |
Costs associated with abnormal production and other | 0 | 650 |
Gross Deficit | (2,856) | (9,153) |
Selling and administrative | 4,404 | 6,570 |
Accretion of asset retirement obligation | 389 | 442 |
Restructuring expense | 0 | 400 |
Care and maintenance expense | 692 | 0 |
Other operating expense (income) | 1,650 | (104) |
Operating Loss | (9,991) | (16,461) |
Other Income (Expense) | ||
Interest Expense | (4,421) | (2,229) |
Interest income | 3 | 123 |
Other income | 736 | 142 |
Loss Before Income Taxes | (13,673) | (18,425) |
Income Tax (Expense) | (5) | (2) |
Net Loss | $ (13,678) | $ (18,427) |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 81,992,071 | 75,756,535 |
Diluted (in shares) | 81,992,071 | 75,756,535 |
(Loss) Per Share: | ||
Basic (in dollars per share) | $ (0.17) | $ (0.24) |
Diluted (in dollars per share) | $ (0.17) | $ (0.24) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (13,678) | $ (18,427) |
Other Comprehensive Income: | ||
Net change in unrealized gain (loss) on investments available for sale, net of tax | 0 | 30 |
Other Comprehensive Income | 0 | 30 |
Comprehensive Loss | $ (13,678) | $ (18,397) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Increase (Decrease) in Stockholders' Equity | ||||
Adjustment to opening balance | $ 120,000 | $ (120,000) | ||
Balance (in shares) at Dec. 31, 2016 | 75,839,998 | |||
Balance at Dec. 31, 2016 | $ 363,371,000 | $ 76,000 | 583,653,000 | (220,358,000) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of common stock (shares) | 50,072,917 | |||
Issuance of common stock | 57,468,000 | $ 50,000 | 57,418,000 | |
Net change in other comprehensive loss | 0 | |||
Net loss | (13,678,000) | |||
Stock-based compensation | 989,000 | 989,000 | ||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares) | 82,415 | |||
Adjustments Related to Tax Withholding for Share-based Compensation | (109,000) | 109,000 | ||
Balance (in shares) at Mar. 31, 2017 | 125,995,330 | |||
Balance at Mar. 31, 2017 | $ 408,041,000 | $ 126,000 | $ 642,071,000 | $ (234,156,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Reconciliation of net income to net cash provided by operating activities: | |||
Net loss | $ (13,678) | $ (18,427) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation, depletion and accretion | [1] | 9,323 | 14,368 |
Amortization of deferred financing costs | 821 | 783 | |
Stock-based compensation | 989 | 1,046 | |
Lower-of-cost-or-market inventory adjustments | 3,824 | 9,007 | |
Loss (gain) on disposal of assets | 1,559 | (15) | |
Allowance for parts inventory obsolescence | 0 | 532 | |
Other | 3,006 | 258 | |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | (8,776) | (14,689) | |
Other receivables, net | (399) | (191) | |
Refundable income taxes | (5) | 40 | |
Inventory, net | 1,643 | (7,745) | |
Prepaid expenses and other current assets | 4,393 | 7,303 | |
Accounts payable, accrued liabilities, and accrued employee compensation and benefits | (65) | 6,596 | |
Other liabilities | (819) | 40 | |
Net cash provided by (used in) operating activities | 1,816 | (1,094) | |
Cash Flows from Investing Activities: | |||
Additions to property, plant, equipment, and mineral properties | (2,423) | (6,018) | |
Proceeds from sale of property, plant, equipment, and mineral properties | 5,553 | 0 | |
Proceeds from sale of investments | 1 | 23,634 | |
Net cash provided by investing activities | 3,131 | 17,616 | |
Cash Flows from Financing Activities: | |||
Issuance of common stock, net of transaction expenses | 57,468 | 0 | |
Repayments of long-term debt | (46,000) | 0 | |
Debt issuance costs | 0 | (1,235) | |
Employee tax withholding paid for restricted stock upon vesting | (109) | (172) | |
Net cash provided by (used in) financing activities | 11,359 | (1,407) | |
Net Change in Cash and Cash Equivalents | 16,306 | 15,115 | |
Cash and Cash Equivalents, beginning of period | 4,464 | 9,307 | |
Cash and Cash Equivalents, end of period | 20,770 | 24,422 | |
Net cash paid (refunded) during the period for: | |||
Interest | 2,467 | 134 | |
Income taxes | 10 | (38) | |
Accrued purchases for property, plant, equipment, and mineral properties | $ 214 | $ 2,004 | |
[1] | Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
COMPANY BACKGROUND
COMPANY BACKGROUND | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
COMPANY BACKGROUND | COMPANY BACKGROUND We are the only producer of muriate of potash ("potassium chloride" or "potash") in the United States and are one of two producers of langbeinite ("sulfate of potash magnesia"), which we market and sell as Trio ® . We sell potash and Trio ® primarily into the agricultural market as a fertilizer. We also sell these products into the animal feed market as a nutritional supplement and sell potash into the industrial market as a component in drilling and fracturing fluids for oil and gas wells and other industrial inputs. In addition, we sell by-products including salt, magnesium chloride, and brine. These by-product credits represented approximately 6% of total cost of goods sold for the three months ended March 31, 2017. We also sell water, which is recorded in other income. We produce potash from three solution mining facilities: our HB solar solution mine in Carlsbad, New Mexico, our solution mine in Moab, Utah, and our solar brine recovery mine in Wendover, Utah. We also operate the North compaction facility in Carlsbad, New Mexico, which compacts and granulates product from the HB mine. We produce Trio ® from our conventional underground East mine in Carlsbad, New Mexico. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation —Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. Reclassifications of Prior Period Presentation —Certain prior period amounts have been reclassified in order to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. Use of Estimates —The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, valuation of investments, the valuation of receivables, valuation of our deferred tax assets, and estimated blended income tax rates utilized in the current and deferred income tax calculations. There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures. Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs. The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items, including depletion; the net carrying value of our mineral properties; the useful lives of related property, plant, and equipment; depreciation expense; and estimates associated with recoverability of long-lived assets and asset retirement obligations. Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing state income tax rates and the blend of state tax rates. Revenue Recognition —Revenue is recognized when evidence of an arrangement exists; risks and rewards of ownership have been transferred to customers, which is generally when title passes; the selling price is fixed and determinable; and collection is reasonably assured. Title passes at the designated shipping point for the majority of sales, but, in a few cases, title passes at the delivery destination. The shipping point may be the plant, a distribution warehouse, a customer warehouse, or a port. Title passes for some international shipments upon payment by the purchaser; however, revenue is not recognized for these transactions until shipment because the risks and rewards of ownership have not transferred pursuant to a contractual arrangement. Prices are generally set at the time of, or prior to, shipment. In cases where the final price is determined after shipment and agreed to with our customer, revenue is recognized when the final sales price is fixed and determinable and the other revenue recognition criteria have been met. Sales are reported on a gross basis. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. When a sale occurs on a delivered basis, we incur and, in turn, bill the customer and record as gross revenue the product sales value, freight, packaging, and certain other distribution costs. Many customers, however, arrange and pay for these costs directly and, in these situations, only the product sales are included in gross revenues. By-Products — When by-product inventories are sold, we record the sale of by-products as a credit to cost of goods sold. By-product inventory is carried at net realizable value. Inventory — Inventory consists of product and by-product stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and by-product inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits. We evaluate our production levels and costs to determine if any should be deemed abnormal and therefore excluded from inventory costs and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal. Property, Plant, Equipment, Mineral Properties, and Development Costs —Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress. Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio ® , as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position. Loss per Share —Basic loss per common share of stock is calculated by dividing net loss by the weighted average basic common shares outstanding for the respective period. Potentially dilutive securities, including restricted stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury-stock method is used to measure the dilutive impact of restricted stock, stock options outstanding, and performance units. Following the lapse of the vesting period of restricted stock, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | ER SHARE Potentially dilutive securities, including restricted stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury-stock method is used to measure the dilutive impact of restricted stock, stock options outstanding, and performance units. The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted average shares outstanding computations: Three Months Ended March 31, 2017 2016 Anti-dilutive shares of restricted common stock 3,398,777 336,330 Anti-dilutive shares of stock options outstanding 1,866,038 235,854 Anti-dilutive shares of performance units 63,025 126,050 The following table sets forth the calculation of basic and diluted loss per share (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Net loss $ (13,678 ) $ (18,427 ) Basic weighted average common shares outstanding 81,992 75,757 Add: Dilutive effect of restricted stock — — Add: Dilutive effect of performance units — — Diluted weighted average common shares outstanding 81,992 75,757 Loss per share: Basic $ (0.17 ) $ (0.24 ) Diluted $ (0.17 ) $ (0.24 ) In March 2017, we issued 50.1 million shares of common stock in an underwritten public offering for net proceeds of $57.5 million . All of the shares issued were newly issued shares. The net proceeds from the issuance have been or will be used to partially repay indebtedness and for general corporate purposes. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 3 Months Ended |
Mar. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS As of March 31, 2017 , and December 31, 2016 , our cash and cash equivalents consisted of only cash as follows (in thousands): March 31, 2017 December 31, 2016 Cash $ 20,770 $ 4,464 |
INVENTORY AND LONG-TERM PARTS I
INVENTORY AND LONG-TERM PARTS INVENTORY | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORY AND LONG-TERM PARTS INVENTORY | INVENTORY AND LONG-TERM PARTS INVENTORY The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value, as of March 31, 2017 , and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Finished goods product inventory $ 52,396 $ 52,571 In-process mineral inventory 16,377 22,126 Total product inventory 68,773 74,697 Current parts inventory, net 17,421 19,658 Total current inventory, net 86,194 94,355 Long-term parts inventory, net 23,731 21,037 Total inventory, net $ 109,925 $ 115,392 Parts inventories are shown net of any required allowances. At March 31, 2017 , and December 31, 2016 , allowances for parts inventory obsolescence were $2.5 million and $3.1 million , respectively. During the three months ended March 31, 2017 , and 2016 , we recorded charges of approximately $3.8 million and $9.0 million , respectively, as a result of routine assessments of the lower of weighted average cost or estimated net realizable value of our finished goods product inventory. During the beginning of 2016 before the conversion of the East facility to Trio ® -only, we suspended potash production at our East facility for a total of seven days as we performed a testing run and converted the East facility to a Trio ® -only facility. As a result of the suspension of production, we determined that approximately $0.7 million of production costs at our East facility would have been allocated to additional tons produced, assuming we had been operating at normal production rates for the first quarter of March 31, 2016. Accordingly, these costs were excluded from our inventory values and instead expensed in 2016 as period production costs. |
PROPERTY, PLANT, EQUIPMENT, AND
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES Property, plant, equipment, and mineral properties were comprised of the following (in thousands): March 31, 2017 December 31, 2016 Buildings and plant $ 79,432 $ 82,457 Machinery and equipment 225,570 227,987 Vehicles 4,743 4,750 Office equipment and improvements 12,598 12,505 Ponds and land improvements 54,990 57,474 Total depreciable assets $ 377,333 $ 385,173 Accumulated depreciation (121,559 ) (116,194 ) Total depreciable assets, net $ 255,774 $ 268,979 Mineral properties and development costs $ 138,785 $ 138,578 Accumulated depletion (23,742 ) (21,974 ) Total depletable assets, net $ 115,043 $ 116,604 Land $ 519 $ 719 Construction in progress $ 2,957 $ 2,188 Total property, plant, equipment, and mineral properties, net $ 374,293 $ 388,490 We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended March 31, 2017 2016 Depreciation $ 7,160 $ 12,482 Depletion 1,774 1,444 Accretion 389 442 Total incurred $ 9,323 $ 14,368 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Senior Notes —In 2013, we originally issued $150 million aggregate principal amount of senior notes (the "Notes") pursuant to a note purchase agreement entered into in August 2012. On October 31, 2016, we entered into a revised note purchase agreement governing the Notes. As of March 31, 2017 , after the repayment of $46 million of principal in the first quarter, we had outstanding $89 million of the Notes consisting of the following series: • $35.6 million of Senior Notes, Series A, due April 16, 2020 • $26.7 million of Senior Notes, Series B, due April 14, 2023 • $26.7 million of Senior Notes, Series C, due April 16, 2025 Under the revised agreement, we granted to the collateral agent for the noteholders a first lien on substantially all of our non-current assets and a second lien on substantially all of our current assets. The revised agreement provides for the following: • The agreement requires us to maintain a minimum trailing twelve-month adjusted EBITDA, which adjusts over time and is measured quarterly through March 2018, ranging from negative $15 million in the period ended March 31, 2017 to negative $7.5 million in the period ending March 31, 2018. Adjusted EBITDA is a non-GAAP measure that is calculated as adjusted earnings before interest, income taxes, depreciation, amortization, and certain other expenses for the prior four quarters, as defined under the agreement. Our adjusted EBITDA as calculated under the agreement was $3.7 million for the four quarters ended March 31, 2017. • The agreement requires us to maintain a minimum fixed charge coverage amount of negative $15 million and negative $10 million for the quarters ending June 30, 2018, and September 30, 2018, respectively. The agreement also includes requirements relating to a leverage ratio and a fixed charge coverage ratio to be tested on a quarterly basis commencing with the quarter ending June 30, 2018, with respect to the leverage ratio, and December 31, 2018, with respect to the fixed charge coverage ratio. The maximum leverage ratio will be 11.5 to 1.0 for the quarter ending June 30, 2018, and decreases to 3.5 to 1.0 for the quarter ending September 30, 2019, and each quarter thereafter. The minimum fixed charge coverage ratio will be 0.25 to 1.0 for the quarter ending December 31, 2018, and increases to 1.3 to 1.0 for the quarter ending September 30, 2019, and each quarter thereafter. In general, our fixed charge coverage amount is calculated as adjusted EBITDA for the prior four quarters, minus capital expenditures, cash paid for income taxes, and interest expense plus scheduled principal amortization of long-term funded indebtedness; our leverage ratio is calculated as the ratio of funded indebtedness to adjusted EBITDA for the prior four quarters; and our fixed charge coverage ratio is calculated as the ratio of adjusted EBITDA for the prior four quarters, minus capital expenditures and cash paid for income taxes, to interest expense plus scheduled principal amortization of long-term funded indebtedness. • The interest rates for the Notes increased by 4.5% above the previous rates such that the Series A Senior Notes now bear interest at 7.73% , the Series B Senior Notes now bear interest at 8.63% , and the Series C Senior Notes now bear interest at 8.78% , which reflect the highest rates in a pricing grid under the agreement. The interest rates are adjusted quarterly based upon our financial performance and certain financial covenant levels. In addition, additional interest of 2% , which may be paid in kind, will begin to accrue on April 1, 2018, unless we satisfy certain financial covenant tests. • We are required to make certain offers to prepay the Notes with the proceeds of dispositions of certain specified property and with the proceeds of certain equity issuances, as set forth in the agreement. During the quarter ended March 31, 2017, we repaid the Notes by $5.5 million in conjunction with the sale of an asset and $40.5 million with the proceeds of an equity offering. We were in compliance with the applicable covenants under the revised agreement as of March 31, 2017. Our outstanding long-term debt, net, as of March 31, 2017, and December 31, 2016 (in thousands), is as follows: March 31, 2017 December 31, 2016 Senior Notes $ 89,000 $ 135,000 Less deferred financing costs 983 1,566 Long-term debt, net $ 88,017 $ 133,434 The obligations under the Notes are unconditionally guaranteed by several of our subsidiaries. Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $4.5 million and $2.3 million for the three months ended March 31, 2017 , and 2016 , respectively. Amounts included in interest expense for the three months ended March 31, 2017 , and 2016 (in thousands) are as follows: Three Months Ended March 31, 2017 2016 Interest on notes and line of credit commitment fees $ 2,836 $ 1,536 Make-whole payment made March 31, 2017 794 — Amortization of deferred financing costs 821 783 Gross interest expense 4,451 2,319 Less capitalized interest (30 ) (90 ) Interest expense, net $ 4,421 $ 2,229 Credit Facility —On October 31, 2016, we entered into a credit agreement with Bank of Montreal that provides an asset-based revolving credit facility of up to $35 million in aggregate principal amount. The amount available is subject to monthly borrowing base limits based on our inventory and receivables. If our total remaining availability under the credit facility was to fall below $6 million , we would be subject to a minimum fixed charge coverage ratio of 1 to 1, which we would not currently meet. Any borrowings on the credit facility bear interest at 1.75% to 2.25% above LIBOR (London Interbank Offered Rate), based on average availability under the credit facility. We have granted to Bank of Montreal a first lien on substantially all of our current assets and a second lien on substantially all of our non-current assets. The credit facility expires on October 31, 2018. We occasionally borrow and repay amounts under the facility for near-term working capital needs and may do so in the future. As of March 31, 2017, there were no amounts outstanding under the facility, other than $3.5 million in letters of credit. Considering the outstanding letters of credit and the fixed charge coverage ratio requirement described above, we have $25.5 million available under the facility as of March 31, 2017. We were in compliance with the applicable covenants under the facility as of March 31, 2017. |
FINANCIAL INFROMATION FOR SUBSI
FINANCIAL INFROMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT Intrepid Potash, Inc., as the parent company, has no independent assets or operations, and operations are conducted solely through its subsidiaries. Cash generated from operations is held at the parent company level as cash on hand. Cash on hand totaled $20.8 million and $4.5 million at March 31, 2017 , and December 31, 2016 , respectively. In the event that one or more of our wholly-owned operating subsidiaries guarantee public debt securities in the future, those guarantees will be full and unconditional and will constitute the joint and several obligations of the subsidiary guarantors. Our other subsidiaries are minor. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the subsidiary guarantors, except those imposed by applicable law. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | ASSET RETIREMENT OBLIGATION We recognize an estimated liability for future costs associated with the abandonment and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired. Our asset retirement obligation is based on the estimated cost to abandon and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are revisions to estimated costs. The credit adjusted risk-free rates used to discount our abandonment liabilities range from 6.9% to 9.7% . Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated abandonment costs or economic lives, or if federal or state regulators enact new requirements regarding the abandonment or reclamation of mines. Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended March 31, 2017 2016 Asset retirement obligation, at beginning of period $ 19,976 $ 22,951 Accretion of discount 389 442 Total asset retirement obligation, at end of period $ 20,365 $ 23,393 The undiscounted amount of asset retirement obligation was $59.3 million as of March 31, 2017 . |
COMPENSATION PLANS
COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMPENSATION PLANS | Note 10 — COMPENSATION PLANS Cash Bonus Programs —At times, we use cash bonus programs that allow participants to receive varying percentages of their aggregate base salary. Any awards under the cash bonus programs are based on a variety of elements related to our performance in certain production, operational, financial, and other areas, as well as the participants' individual performance. We accrue cash bonus expense related to the applicable year's performance. As part of our cost savings initiatives, we did not implement a cash bonus programs for 2016 and have not implemented a cash bonus program for 2017. Equity Incentive Compensation Plan —Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the "Plan"). We have issued common stock, restricted shares of common stock, performance units, and non-qualified stock option awards under the Plan. As of March 31, 2017 , the following awards were outstanding under the Plan: 3,254,164 shares of restricted stock; performance units representing 126,050 shares of common stock; and options to purchase 1,846,645 shares of common stock. As of March 31, 2017 , 460,640 shares of common stock remained available for issuance under the Plan. Restricted Stock • Restricted Stock with Service-Based Vesting —Under the Plan, the Compensation Committee of the Board of Directors (the "Compensation Committee") has granted restricted stock to members of the Board of Directors, executive officers, and other key employees. The awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to the holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes. In 2016, 2015, and 2014, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program. The 2016 awards vest over four years, and the 2015 and 2014 awards vest over three years, subject to continued employment or service. From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives. Restricted stock awards generally vest over one to four years, subject to continued employment or service. In 2016, the Compensation Committee granted 562,010 shares of restricted stock to non-employee members of the Board of Directors and one employee member of the Board of Directors under the Plan for their annual service as directors. The restricted stock vests one year after the date of grant, subject to continued service. In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our common stock on the grant date. Compensation expense is recorded monthly over the vesting period of the award. Total compensation expense related to the restricted stock awards was $0.7 million for each of the three months ended March 31, 2017 , and 2016 . As of March 31, 2017 , there was $3.2 million of total remaining unrecognized compensation expense related to restricted stock that will be expensed through 2020. • Restricted Stock with Service- and Market-Condition-Based Vesting —In 2016, the Compensation Committee granted restricted stock to a member of our executive team as part of his annual compensation package. The restricted stock vests in four equal installments, subject to his continued employment; provided however, that no vesting occurs unless and until the closing market price of our common stock equals or exceeds $2.06 per share, which is double the closing price of our common stock on the date of grant, for 20 consecutive trading days, on or before the five-year anniversary of the grant date. As of March 31, 2017, this market condition has not been met. In measuring compensation expense associated with this grant of restricted stock, we use the fair value of the award, determined using a Monte Carlo simulation valuation model. Compensation expense is recorded monthly over the vesting period of the award. A summary of activity relating to our restricted stock for the quarter ended March 31, 2017 , is presented below: Weighted Average Shares Restricted stock, beginning of period 3,531,418 $ 1.78 Granted — $ — Vested (131,183 ) $ 14.39 Forfeited (146,071 ) $ 1.29 Restricted stock, end of period 3,254,164 $ 1.52 Performance Units In 2015, the Compensation Committee granted at-risk performance units under the Plan to a member of our executive team as part of his annual compensation package. The performance units vest in February 2018, and payout, if any, is based on market-based conditions relating to one-, two- and three-year performance periods beginning on the grant date. No shares were earned under the first, one-year performance period or the second, two-year performance period. As of March 31, 2017 , a total of 126,050 shares of common stock were available for future payout under these performance units, subject to the third, three-year performance measure being met and continued employment through the vesting date. Non-qualified Stock Options • Non-qualified Stock Options with Service-Based Vesting —In 2016 and from 2009 to 2011, the Compensation Committee issued non-qualified stock options under the Plan to our executives and other key employees as part of our annual award program. The stock options granted in 2016 vest over four years and have a ten-year term from the grant date. The stock options granted from 2009 to 2011 generally vested over three years. In measuring compensation expense for options, we estimated the fair value of the award on the grant dates using the Black‑Scholes option valuation model. Option valuation models require the input of highly subjective assumptions, including the expected volatility of the price of the underlying stock. The following assumptions were used to compute the weighted average fair market value of options granted in 2016: Risk free interest rate 1.8 % Dividend yield 0.0 % Estimated volatility 63.8 % Expected option life 6.25 years Our estimate of volatility was based on our historic volatility. The estimate of expected option life was determined based on the "simplified method," giving consideration to the overall vesting period and the contractual terms of the award. This method was used because we have no option exercise history for options issued prior to 2016. The risk-free interest rate for the period that matched the option awards' expected life was based on the U.S. Treasury constant maturity yield at the time of grant. • Non-qualified Stock Options with Service- and Market-Condition-Based Vesting —In 2016, the Compensation Committee granted 600,000 non-qualified stock options with service- and market-condition-based vesting requirements under the Plan to a member of our executive team as part of his annual compensation package. The stock options vest in four equal annual installments, subject to continued employment; provided, however, that no vesting occurs unless and until the closing market price of our common stock equals or exceeds $2.06 per share, which is double the closing price of our stock on the date of grant, for 20 consecutive trading days on or before the five-year anniversary of the grant date. As of March 31, 2017, this market condition has not been met. In measuring compensation expense associated with this grant of non-qualified stock options, we used the fair value of the award, determined using a Monte Carlo simulation valuation model. Compensation expense is recorded monthly over the vesting period of the award. Non-Qualified Stock Option Activity A summary of our stock option activity for the three months ended March 31, 2017 , is as follows: Shares Weighted Average Exercise Price Outstanding non-qualified stock 1,883,706 $3.90 Granted — $— Exercised — $— Forfeited (30,165 ) $1.03 Expired (6,896 ) $27.33 Outstanding non-qualified stock 1,846,645 $3.86 Vested or expected to vest, 1,846,645 $3.86 Exercisable non-qualified stock 211,961 $25.68 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate is impacted primarily by the amount of taxable income associated with each jurisdiction in which our income is subject to income tax, permanent differences between the financial statement carrying amounts and tax bases of assets and liabilities. During the three-month periods ended March 31, 2017 , and 2016, our effective tax rate was 0% which differed from the statutory rate primarily as a result of the impact of recording a valuation allowance to offset the amount of additional deferred tax asset generated during the periods. As of March 31, 2017 , we do not believe it is more likely than not that we will fully realize the benefit of our deferred tax assets. As such, we increased the valuation allowance related to our deferred tax assets by $4.4 million for the three months ended March 31, 2017 . We recognized a full valuation allowance against our net deferred tax assets as of March 31, 2017 , and December 31, 2016 . A summary of our valuation allowance activity is as follows (in thousands): Three Months Ended March 31, 2017 2016 Valuation allowance, beginning of period $ 326,097 $ 300,601 Additions 4,425 8,004 Valuation allowance, end of period $ 330,522 $ 308,605 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Reclamation Deposits and Surety Bonds —As of March 31, 2017 , and December 31, 2016 , we had $18.4 million and $21.4 million , respectively, of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of our various facilities. Of this total requirement, as of March 31, 2017 , and December 31, 2016 , $0.5 million and $3.5 million , respectively, consisted of long-term restricted cash deposits reflected in "Other assets, net" on the condensed consolidated balance sheets and $17.9 million was secured by surety bonds issued by an insurer. The surety bonds are held in place by an annual fee paid to the issuer. We may be required to post additional security to fund future reclamation obligations as reclamation plans are updated or as governmental entities change requirements. Legal —In February 2015, Mosaic Potash Carlsbad Inc. ("Mosaic") filed a complaint and application for preliminary injunction and permanent injunction against Steve Gamble and us in the Fifth Judicial District Court for the County of Eddy in the State of New Mexico. Mr. Gamble is a former Intrepid employee and former Mosaic employee. The complaint alleges against us violations of the Uniform Trade Secrets Act and tortious interference with contract relating to alleged misappropriation of Mosaic's trade secrets. Mosaic seeks monetary relief of an unspecified amount, including damages for actual loss and unjust enrichment, exemplary damages, attorneys' fees, and injunctive relief and has alleged that it has spent hundreds of millions of dollars to research and develop its alleged trade secrets. In August 2015, the court denied Mosaic's application for preliminary injunction. The lawsuit is currently progressing through discovery. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any. In July 2016, Mosaic filed a complaint against Steve Gamble and us in US District Court for the District of New Mexico. The complaint alleges violations of the Computer Fraud and Abuse Act, conversion, and civil conspiracy relating to alleged misappropriation of Mosaic's confidential information. Mosaic seeks injunctive relief and compensatory and punitive damages of an unspecified amount. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any. We are subject to other claims and legal actions in the ordinary course of business. While there are uncertainties in predicting the outcome of any claim or legal action, we believe that the ultimate resolution of these other claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows. Future Operating Lease Commitments —We have operating leases for land, mining and other operating equipment, offices, and railcars, with original terms ranging up to 20 years. In May 2015, we exercised an option to terminate our existing corporate office lease prior to its original expiration date. Under the provisions of the lease agreement, we incurred a termination penalty of $1.1 million , which was included in selling and administrative expense in the second quarter of 2015. In December 2015, we paid $0.5 million of this termination penalty in connection with an amendment reducing the leased square footage and extending the expiration date to May 2017. We further extended our lease expiration to September 2017 and paid the remaining $0.6 million of termination penalty in March 2017. Rental and lease expenses for the three months ended March 31, 2017, and 2016, were $1.5 million . |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We applied the provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification™ ("ASC") Topic 820, Fair Value Measurements and Disclosures, for all financial assets and liabilities measured at fair value on a recurring basis. The topic establishes a framework for measuring fair value and requires disclosures about fair value measurements. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The topic establishes market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The topic also establishes a hierarchy for grouping these assets and liabilities based on the significance level of the following inputs, as follows: • Level 1—Quoted prices in active markets for identical assets and liabilities. • Level 2—Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model‑derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3—Significant inputs to the valuation model are unobservable. Financial assets or liabilities are categorized within the hierarchy based upon the lowest level of input that is significant to the fair value measurement. As of March 31, 2017 , and December 31, 2016 , we had no assets required to be measured at fair value. The carrying value and estimated fair value of our financial instrument liabilities as of March 31, 2017 , and December 31, 2016 , were as follows (in thousands): March 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Senior notes $ 89,000 $ 88,000 $ 135,000 $ 131,000 Below is a general description of our valuation methodologies for financial assets and liabilities, which are measured at fair value and are included on the condensed consolidated balance sheets. For cash and cash equivalents, certificates of deposit and time deposit investments, accounts receivable, refundable income taxes, and accounts payable, the carrying amount approximates fair value because of the short-term maturity of these instruments. The estimated fair value of the long‑term debt is estimated using a discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings (a Level 2 input) and is designed to approximate the amount at which the instruments could be exchanged in an arm's length transaction between knowledgeable willing parties. The methods described above may result in a fair value estimate that may not be indicative of net realizable value or may not be reflective of future fair values and cash flows. While we believe that the valuation methods used are appropriate and consistent with the requirements of ASC Topic 820 and the methods used by other marketplace participants, we recognize that third parties may use different methodologies or assumptions to determine the fair value of certain financial instruments that could result in a different estimate of fair value at the reporting date. |
RESTRUCTURING CHARGE
RESTRUCTURING CHARGE | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring Charge [Abstract] | |
RESTRUCTURING CHARGE | RESTRUCTURING CHARGE In January 2016, in response to declining potash prices, we undertook a number of cost saving actions that were intended to better align our cost structure with the business environment. These initiatives included the elimination of approximately 5% of the workforce, elimination of the bonus programs for most employees, as well as reductions in compensation. For the three months ended March 31, 2016 , we recognized restructuring expense of $0.4 million related to these events. We recorded no restructuring expenses for the three months ended March 31, 2017. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio ® -only and the idling of our West facility in 2016, the chief operating decision maker separately evaluates our potash and Trio ® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio ® . The reportable segments are determined by management based on a number of factors including the types of potassium based fertilizer produced, production processes, markets served and the financial information available for our chief operating decision maker. We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments. Information for each segment is provided in the tables that follow (in thousands). Three Months Ended March 31, 2017 Potash Trio ® Corporate Consolidated Sales $ 27,220 $ 21,112 $ — $ 48,332 Less: Freight costs 2,959 5,762 — 8,721 Warehousing and handling costs 1,512 1,258 — 2,770 Cost of goods sold 20,421 15,452 — 35,873 Lower-of-cost-or-market inventory — 3,824 — 3,824 Gross Margin (Deficit) $ 2,328 $ (5,184 ) $ — $ (2,856 ) Depreciation, depletion and amortization incurred 1 $ 7,563 $ 1,699 $ 61 $ 9,323 Three Months Ended March 31, 2016 Potash Trio ® Corporate Consolidated Sales $ 53,695 $ 19,582 $ — $ 73,277 Less: Freight costs 6,551 3,781 — 10,332 Warehousing and handling costs 2,154 510 — 2,664 Cost of goods sold 47,288 12,489 — 59,777 Lower-of-cost-or-market inventory 9,007 — — 9,007 Costs associated with abnormal 650 — — 650 Gross (Deficit) Margin $ (11,955 ) $ 2,802 $ — $ (9,153 ) Depreciation, depletion and amortization incurred 1 $ 12,233 $ 1,675 $ 460 $ 14,368 1 Depreciation, depletion and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. Total assets are not presented for each reportable segment as they are not reviewed by, nor otherwise regularly provided to, the chief operating decision maker. All sales of both segments are to external customers. During the three months ended March 31, 2016 , we recorded restructuring charges of $0.4 million , of which $0.2 million was attributable to the potash segment and $0.2 million was attributable to corporate. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." An entity using an inventory method other than last-in, first-out or the retail inventory method should measure inventory at the lower of cost and net realizable value. This standard clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation and was effective for us beginning January 1, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which became effective for us beginning January 1, 2017. This standard changes several aspects of how we account for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, classification of excess tax benefits on the statement of cash flows, forfeitures, minimum statutory tax withholding payments, and classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. In accordance with adoption of this standard share-based payment award forfeiture expense will no longer be estimated and will be recorded as forfeitures occur and we have recorded a $120,000 adjustment to beginning retained earnings for the impact of this cumulative change. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. |
Reclassifications of Prior Period Presentation | Certain prior period amounts have been reclassified in order to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
Use of Estimates | The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, valuation of investments, the valuation of receivables, valuation of our deferred tax assets, and estimated blended income tax rates utilized in the current and deferred income tax calculations. There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures. Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs. The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items, including depletion; the net carrying value of our mineral properties; the useful lives of related property, plant, and equipment; depreciation expense; and estimates associated with recoverability of long-lived assets and asset retirement obligations. Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing state income tax rates and the blend of state tax rates. |
Revenue Recognition | Revenue is recognized when evidence of an arrangement exists; risks and rewards of ownership have been transferred to customers, which is generally when title passes; the selling price is fixed and determinable; and collection is reasonably assured. Title passes at the designated shipping point for the majority of sales, but, in a few cases, title passes at the delivery destination. The shipping point may be the plant, a distribution warehouse, a customer warehouse, or a port. Title passes for some international shipments upon payment by the purchaser; however, revenue is not recognized for these transactions until shipment because the risks and rewards of ownership have not transferred pursuant to a contractual arrangement. Prices are generally set at the time of, or prior to, shipment. In cases where the final price is determined after shipment and agreed to with our customer, revenue is recognized when the final sales price is fixed and determinable and the other revenue recognition criteria have been met. Sales are reported on a gross basis. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. When a sale occurs on a delivered basis, we incur and, in turn, bill the customer and record as gross revenue the product sales value, freight, packaging, and certain other distribution costs. Many customers, however, arrange and pay for these costs directly and, in these situations, only the product sales are included in gross revenues. |
Inventory | By-Products — When by-product inventories are sold, we record the sale of by-products as a credit to cost of goods sold. By-product inventory is carried at net realizable value. Inventory — Inventory consists of product and by-product stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and by-product inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits. We evaluate our production levels and costs to determine if any should be deemed abnormal and therefore excluded from inventory costs and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal. |
Property, Plant, Equipment, Mineral Properties and Development Costs | Property, Plant, Equipment, Mineral Properties, and Development Costs —Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress. Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio ® , as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position. |
Loss per Share | Basic loss per common share of stock is calculated by dividing net loss by the weighted average basic common shares outstanding for the respective period. Potentially dilutive securities, including restricted stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury-stock method is used to measure the dilutive impact of restricted stock, stock options outstanding, and performance units. Following the lapse of the vesting period of restricted stock, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Potentially dilutive securities, including restricted stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury-stock method is used to measure the dilutive impact of restricted stock, stock options outstanding, and performance units. The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted average shares outstanding computations: Three Months Ended March 31, 2017 2016 Anti-dilutive shares of restricted common stock 3,398,777 336,330 Anti-dilutive shares of stock options outstanding 1,866,038 235,854 Anti-dilutive shares of performance units 63,025 126,050 |
Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share | The following table sets forth the calculation of basic and diluted loss per share (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Net loss $ (13,678 ) $ (18,427 ) Basic weighted average common shares outstanding 81,992 75,757 Add: Dilutive effect of restricted stock — — Add: Dilutive effect of performance units — — Diluted weighted average common shares outstanding 81,992 75,757 Loss per share: Basic $ (0.17 ) $ (0.24 ) Diluted $ (0.17 ) $ (0.24 ) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | As of March 31, 2017 , and December 31, 2016 , our cash and cash equivalents consisted of only cash as follows (in thousands): March 31, 2017 December 31, 2016 Cash $ 20,770 $ 4,464 |
INVENTORY AND LONG-TERM PARTS27
INVENTORY AND LONG-TERM PARTS INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value, as of March 31, 2017 , and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Finished goods product inventory $ 52,396 $ 52,571 In-process mineral inventory 16,377 22,126 Total product inventory 68,773 74,697 Current parts inventory, net 17,421 19,658 Total current inventory, net 86,194 94,355 Long-term parts inventory, net 23,731 21,037 Total inventory, net $ 109,925 $ 115,392 |
PROPERTY, PLANT, EQUIPMENT, A28
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, Equipment, and Mineral Properties | Property, plant, equipment, and mineral properties were comprised of the following (in thousands): March 31, 2017 December 31, 2016 Buildings and plant $ 79,432 $ 82,457 Machinery and equipment 225,570 227,987 Vehicles 4,743 4,750 Office equipment and improvements 12,598 12,505 Ponds and land improvements 54,990 57,474 Total depreciable assets $ 377,333 $ 385,173 Accumulated depreciation (121,559 ) (116,194 ) Total depreciable assets, net $ 255,774 $ 268,979 Mineral properties and development costs $ 138,785 $ 138,578 Accumulated depletion (23,742 ) (21,974 ) Total depletable assets, net $ 115,043 $ 116,604 Land $ 519 $ 719 Construction in progress $ 2,957 $ 2,188 Total property, plant, equipment, and mineral properties, net $ 374,293 $ 388,490 |
Schedule of Depreciation, Depletion and Accretion | We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended March 31, 2017 2016 Depreciation $ 7,160 $ 12,482 Depletion 1,774 1,444 Accretion 389 442 Total incurred $ 9,323 $ 14,368 |
DEBT DEBT (Tables)
DEBT DEBT (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Our outstanding long-term debt, net, as of March 31, 2017, and December 31, 2016 (in thousands), is as follows: March 31, 2017 December 31, 2016 Senior Notes $ 89,000 $ 135,000 Less deferred financing costs 983 1,566 Long-term debt, net $ 88,017 $ 133,434 |
Schedule Of Interest Expense | Amounts included in interest expense for the three months ended March 31, 2017 , and 2016 (in thousands) are as follows: Three Months Ended March 31, 2017 2016 Interest on notes and line of credit commitment fees $ 2,836 $ 1,536 Make-whole payment made March 31, 2017 794 — Amortization of deferred financing costs 821 783 Gross interest expense 4,451 2,319 Less capitalized interest (30 ) (90 ) Interest expense, net $ 4,421 $ 2,229 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes to Asset Retirement Obligation | Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended March 31, 2017 2016 Asset retirement obligation, at beginning of period $ 19,976 $ 22,951 Accretion of discount 389 442 Total asset retirement obligation, at end of period $ 20,365 $ 23,393 |
COMPENSATION PLANS COMPENSATION
COMPENSATION PLANS COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | A summary of activity relating to our restricted stock for the quarter ended March 31, 2017 , is presented below: Weighted Average Shares Restricted stock, beginning of period 3,531,418 $ 1.78 Granted — $ — Vested (131,183 ) $ 14.39 Forfeited (146,071 ) $ 1.29 Restricted stock, end of period 3,254,164 $ 1.52 |
Schedule of Stock Options, Valuation Assumptions | The following assumptions were used to compute the weighted average fair market value of options granted in 2016: Risk free interest rate 1.8 % Dividend yield 0.0 % Estimated volatility 63.8 % Expected option life 6.25 years |
Schedule Stock Options, Activity | A summary of our stock option activity for the three months ended March 31, 2017 , is as follows: Shares Weighted Average Exercise Price Outstanding non-qualified stock 1,883,706 $3.90 Granted — $— Exercised — $— Forfeited (30,165 ) $1.03 Expired (6,896 ) $27.33 Outstanding non-qualified stock 1,846,645 $3.86 Vested or expected to vest, 1,846,645 $3.86 Exercisable non-qualified stock 211,961 $25.68 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Valuation Allowance | A summary of our valuation allowance activity is as follows (in thousands): Three Months Ended March 31, 2017 2016 Valuation allowance, beginning of period $ 326,097 $ 300,601 Additions 4,425 8,004 Valuation allowance, end of period $ 330,522 $ 308,605 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Financial Instrument Liabilities | The carrying value and estimated fair value of our financial instrument liabilities as of March 31, 2017 , and December 31, 2016 , were as follows (in thousands): March 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Senior notes $ 89,000 $ 88,000 $ 135,000 $ 131,000 |
BUSINESS SEGMENTS BUSINES SEGME
BUSINESS SEGMENTS BUSINES SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information for each segment is provided in the tables that follow (in thousands). Three Months Ended March 31, 2017 Potash Trio ® Corporate Consolidated Sales $ 27,220 $ 21,112 $ — $ 48,332 Less: Freight costs 2,959 5,762 — 8,721 Warehousing and handling costs 1,512 1,258 — 2,770 Cost of goods sold 20,421 15,452 — 35,873 Lower-of-cost-or-market inventory — 3,824 — 3,824 Gross Margin (Deficit) $ 2,328 $ (5,184 ) $ — $ (2,856 ) Depreciation, depletion and amortization incurred 1 $ 7,563 $ 1,699 $ 61 $ 9,323 Three Months Ended March 31, 2016 Potash Trio ® Corporate Consolidated Sales $ 53,695 $ 19,582 $ — $ 73,277 Less: Freight costs 6,551 3,781 — 10,332 Warehousing and handling costs 2,154 510 — 2,664 Cost of goods sold 47,288 12,489 — 59,777 Lower-of-cost-or-market inventory 9,007 — — 9,007 Costs associated with abnormal 650 — — 650 Gross (Deficit) Margin $ (11,955 ) $ 2,802 $ — $ (9,153 ) Depreciation, depletion and amortization incurred 1 $ 12,233 $ 1,675 $ 460 $ 14,368 1 Depreciation, depletion and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
COMPANY BACKGROUND (Narrative)
COMPANY BACKGROUND (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017Facility | |
Number of mining facilities | 3 |
Maximum | |
By product credits | 6.00% |
LOSS PER SHARE EARNINGS PER SHA
LOSS PER SHARE EARNINGS PER SHARE (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Issuance of common stock (shares) | 50.1 | ||
Issuance of common stock, net of transaction expenses | $ 57,468 | $ 0 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Anti-Dilutive Shares) (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restricted Stock | ||
Anti-dilutive weighted average non-vested shares | ||
Anti-dilutive shares (in shares) | 3,398,777 | 336,330 |
Stock Options | ||
Anti-dilutive weighted average non-vested shares | ||
Anti-dilutive shares (in shares) | 1,866,038 | 235,854 |
Performance Units | ||
Anti-dilutive weighted average non-vested shares | ||
Anti-dilutive shares (in shares) | 63,025 | 126,050 |
EARNINGS PER SHARE (Schedule 38
EARNINGS PER SHARE (Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (13,678) | $ (18,427) |
Basic weighted average common shares outstanding (in shares) | 81,992,071 | 75,756,535 |
Add: Dilutive effect of restricted common stock (in shares) | 0 | 0 |
Add: Dilutive effect of performance units (in shares) | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 81,992,071 | 75,756,535 |
Loss per share: | ||
Basic (in dollars per share) | $ (0.17) | $ (0.24) |
Diluted (in dollars per share) | $ (0.17) | $ (0.24) |
CASH AND CASH EQUIVALENTS (Summ
CASH AND CASH EQUIVALENTS (Summary of Cash And Cash Equivalents) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 20,770 | $ 4,464 |
INVENTORY AND LONG-TERM PARTS40
INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Inventory valuation reserves | $ 2,500 | $ 3,100 | |
Lower-of-cost-or-market inventory adjustments | 3,824 | $ 9,007 | |
Production Related Impairments or Charges | $ 0 | $ 650 |
INVENTORY AND LONG-TERM PARTS41
INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Finished goods product inventory | $ 52,396 | $ 52,571 |
In-process mineral inventory | 16,377 | 22,126 |
Total product inventory | 68,773 | 74,697 |
Current parts inventory | 17,421 | 19,658 |
Total current inventory, net | 86,194 | 94,355 |
Long-term parts inventory, net | 23,731 | 21,037 |
Total inventory, net | $ 109,925 | $ 115,392 |
PROPERTY, PLANT, EQUIPMENT, A42
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment, and Mineral Properties) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, plant, equipment, and mineral properties | ||
Depreciable assets | $ 377,333 | $ 385,173 |
Accumulated depreciation | (121,559) | (116,194) |
Depreciable assets, net | 255,774 | 268,979 |
Mineral properties and development costs | 138,785 | 138,578 |
Accumulated depletion | (23,742) | (21,974) |
Total depletable assets, net | 115,043 | 116,604 |
Land | 519 | 719 |
Construction in progress | 2,957 | 2,188 |
Total property, plant, equipment and mineral properties, net | 374,293 | 388,490 |
Buildings Plant | ||
Property, plant, equipment, and mineral properties | ||
Depreciable assets | 79,432 | 82,457 |
Machinery and Equipment | ||
Property, plant, equipment, and mineral properties | ||
Depreciable assets | 225,570 | 227,987 |
Vehicles | ||
Property, plant, equipment, and mineral properties | ||
Depreciable assets | 4,743 | 4,750 |
Office Equipment and Improvements | ||
Property, plant, equipment, and mineral properties | ||
Depreciable assets | 12,598 | 12,505 |
Ponds and Land Improvements | ||
Property, plant, equipment, and mineral properties | ||
Depreciable assets | $ 54,990 | $ 57,474 |
PROPERTY, PLANT, EQUIPMENT, A43
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 7,160 | $ 12,482 | |
Depletion | 1,774 | 1,444 | |
Accretion | 389 | 442 | |
Total incurred | [1] | $ 9,323 | $ 14,368 |
[1] | Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 30, 2013USD ($) | |
Debt | |||||
Long-term debt | $ 89,000,000 | $ 89,000,000 | $ 135,000,000 | ||
Adjusted EBITDA | 3,700,000 | ||||
Interest Costs Incurred, Gross | 4,451,000 | $ 2,319,000 | |||
Interest Expense | 4,421,000 | $ 2,229,000 | |||
Senior Notes | |||||
Debt | |||||
Debt, face amount | $ 150,000,000 | ||||
Repayments of Debt | 46,000,000 | ||||
Long-term debt | $ 89,000,000 | 89,000,000 | $ 135,000,000 | ||
Interest Rate Increase | 4.50% | ||||
Bank Of Montreal | |||||
Debt | |||||
Minimum Fixed Charge Ratio | 1 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000,000 | 35,000,000 | |||
Line of Credit Facility, Borrowing Capacity, Threshold, Fixed Charge Coverage Ratio | 6,000,000 | 6,000,000 | |||
Line of Credit, Outstanding | 0 | 0 | |||
Letters of Credit Outstanding, Amount | 3,500,000 | 3,500,000 | |||
Line of Credit Facility, Current Borrowing Capacity | 25,500,000 | 25,500,000 | |||
Maximum | Senior Notes | |||||
Debt | |||||
Debt Instrument, Covenant Compliance, EBITDA | 15,000,000 | 15,000,000 | |||
Minimum Fixed Charge Coverage Amount | $ 15,000,000 | ||||
Maximum Leverage Ratio | 11.5 | ||||
Minimum Fixed Charge Ratio | 1.3 | ||||
Maximum | London Interbank Offered Rate (LIBOR) | Bank Of Montreal | |||||
Debt | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||
Minimum | Senior Notes | |||||
Debt | |||||
Debt Instrument, Covenant Compliance, EBITDA | $ 7,500,000 | 7,500,000 | |||
Minimum Fixed Charge Coverage Amount | $ 10,000,000 | ||||
Maximum Leverage Ratio | 3.5 | ||||
Minimum Fixed Charge Ratio | 0.25 | ||||
Minimum | London Interbank Offered Rate (LIBOR) | Bank Of Montreal | |||||
Debt | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Series A Senior Notes | Senior Notes | |||||
Debt | |||||
Long-term debt | $ 35,600,000 | $ 35,600,000 | |||
Interest Rate | 7.73% | 7.73% | |||
Series B Senior Notes | Senior Notes | |||||
Debt | |||||
Long-term debt | $ 26,700,000 | $ 26,700,000 | |||
Interest Rate | 8.63% | 8.63% | |||
Series C Senior Notes | Senior Notes | |||||
Debt | |||||
Long-term debt | $ 26,700,000 | $ 26,700,000 | |||
Interest Rate | 8.78% | 8.78% | |||
Senior Notes April 2018 | |||||
Debt | |||||
Additional Interest Rate | 2.00% | 2.00% | |||
Warehouse | Senior Notes | |||||
Debt | |||||
Repayments of Debt | $ 5,500,000 | ||||
Common Stock | Senior Notes | |||||
Debt | |||||
Repayments of Debt | $ 40,500,000 |
DEBT SCHEDULE OF LONG TERM DEBT
DEBT SCHEDULE OF LONG TERM DEBT (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt | ||
Senior Notes | $ 89,000 | $ 135,000 |
Senior Notes | ||
Debt | ||
Senior Notes | 89,000 | 135,000 |
Deferred financing costs | 983 | 1,566 |
Long-term debt, net | $ 88,017 | $ 133,434 |
DEBT SCHEDULE OF INTEREST EXPEN
DEBT SCHEDULE OF INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Interest on notes and line of credit commitment fees | $ 2,836 | $ 1,536 |
Negotiated make-whole payment | 794 | 0 |
Amortization of deferred financing costs | 821 | 783 |
Gross interest expense | 4,451 | 2,319 |
Capitalized interest | (30) | (90) |
Interest expense, net | $ 4,421 | $ 2,229 |
FINANCIAL INFROMATION FOR SUB47
FINANCIAL INFROMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Guarantees [Abstract] | ||
Cash | $ 20,770 | $ 4,464 |
ASSET RETIREMENT OBLIGATION (Na
ASSET RETIREMENT OBLIGATION (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Asset Retirement Obligation, Undiscounted Amount | $ 59.3 |
Minimum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Credit Adjusted Risk-Free Rates to Discount Abandonment Liabilities | 6.90% |
Maximum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Credit Adjusted Risk-Free Rates to Discount Abandonment Liabilities | 9.70% |
ASSET RETIREMENT OBLIGATION (Sc
ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, at beginning of period | $ 19,976 | $ 22,951 |
Accretion of discount | 389 | 442 |
Total asset retirement obligation, at end of period | $ 20,365 | $ 23,393 |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Dec. 31, 2016Installments$ / sharesshares | |
Equity Incentive Compensation Plan [Abstract] | |||
Shares available for issuance | 460,640 | ||
Restricted Stock | |||
Equity Incentive Compensation Plan [Abstract] | |||
Awards outstanding (shares) | 3,254,164 | 3,531,418 | |
Restricted Stock [Abstract] | |||
Shares granted (in shares) | 0 | ||
Compensation expense | $ | $ 0.7 | $ 0.7 | |
Unrecognized compensation expense | $ | $ 3.2 | ||
Restricted Stock | Minimum | |||
Restricted Stock [Abstract] | |||
Period over which grants vest (in years) | 1 year | ||
Restricted Stock | Maximum | |||
Restricted Stock [Abstract] | |||
Period over which grants vest (in years) | 4 years | ||
Performance Units | |||
Equity Incentive Compensation Plan [Abstract] | |||
Awards outstanding (shares) | 126,050 | ||
Stock Options | |||
Equity Incentive Compensation Plan [Abstract] | |||
Awards outstanding, options | 1,846,645 | 1,883,706 | |
Non Qualified Stock Options [Abstract] | |||
Awards granted, stock options (in shares) | 0 | ||
2016 | Restricted Stock | |||
Restricted Stock [Abstract] | |||
Period over which grants vest (in years) | 4 years | ||
2014 And 2015 | Restricted Stock | |||
Restricted Stock [Abstract] | |||
Period over which grants vest (in years) | 3 years | ||
Director | Restricted Stock | |||
Restricted Stock [Abstract] | |||
Shares granted (in shares) | 562,010 | ||
Executive Officer | Restricted Stock | |||
Equity Incentive Compensation Plan [Abstract] | |||
Stock price, vesting | $ / shares | $ 2.06 | ||
Number of vesting installment | Installments | 4 | ||
Executive Officer | Stock Options | |||
Equity Incentive Compensation Plan [Abstract] | |||
Stock price, vesting | $ / shares | $ 2.06 | ||
Number of vesting installment | Installments | 4 | ||
Non Qualified Stock Options [Abstract] | |||
Awards granted, stock options (in shares) | 600,000 |
COMPENSATION PLANS (Summary of
COMPENSATION PLANS (Summary of Non-Vested Restricted Common Stock Activity) (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Shares | |
Restricted stock, beginning of period (in shares) | shares | 3,531,418 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (131,183) |
Forfeited (in shares) | shares | (146,071) |
Restricted stock, end of period (in shares) | shares | 3,254,164 |
Weighted Average Grant-Date Fair Value | |
Restricted stock, beginning of period (in dollars per share) | $ / shares | $ 1.78 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 14.39 |
Forfeited (in dollars per share) | $ / shares | 1.29 |
Restricted stock, end of period (in dollars per share) | $ / shares | $ 1.52 |
COMPENSATION PLANS COMPENSATI52
COMPENSATION PLANS COMPENSATION PLANS (Schedule of Fair Value Assumptions) (Details) - Stock Options | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk Free Interest Rate | 1.80% |
Dividend Yield | 0.00% |
Expected Volatility | 63.80% |
Expected option life | 6 years 2 months 30 days |
COMPENSATION PLANS (Summary o53
COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - Stock Options | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Stock Option Activity, Number of Shares | |
Outstanding non-qualified stock options, beginning of period (in shares) | shares | 1,883,706 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | (30,165) |
Expired (in shares) | shares | (6,896) |
Outstanding non-qualified stock options, end of period (in shares) | shares | 1,846,645 |
Vested or expected to vest, end of period (in shares) | shares | 1,846,645 |
Exercisable non-qualified stock options, end of period (in shares) | shares | 211,961 |
Stock Options, Weighted Average Exercise Price | |
Outstanding non-qualified stock options, beginning of period (in dollars per share) | $ / shares | $ 3.90 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 1.03 |
Expired (in dollars per share) | $ / shares | 27.33 |
Outstanding non-qualified stock options, end of period (in dollars per share) | $ / shares | 3.86 |
Vested or expected to vest, end of period (in dollars per share) | $ / shares | 3.86 |
Exercisable non-qualified stock options, end of period (in dollars per share) | $ / shares | $ 25.68 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective Tax Rate | 0.00% | 0.00% |
INCOME TAXES INCOME TAXES (VALU
INCOME TAXES INCOME TAXES (VALUATION ALLOWANCES) (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Valuation Allowance, Beginning of Period | $ 326,097 | $ 300,601 |
Valuation Allowance, Additions | 4,425 | 8,004 |
Valuation Allowance, End of Period | $ 330,522 | $ 308,605 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | |
Reclamation Deposits and Surety Bonds | |||||
Security placed with the State of Utah and BLM | $ 18,400 | $ 21,400 | |||
Long-term restricted cash deposits | 500 | $ 3,500 | |||
Surety bonds issued by an insurer | $ 17,900 | ||||
Future Operating Lease Commitments | |||||
Operating Lease, Contract Term, Maximum (in years) | 20 years | ||||
Lease Termination Penalty | $ 1,100 | ||||
Early Lease Termination Penalty Paid | $ 600 | $ 500 | |||
Rental and lease expenses | $ 1,548 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Senior Notes, Carrying Value | $ 89,000 | $ 135,000 |
Senior Notes, Fair Value | $ 88,000 | $ 131,000 |
RESTRUCTURING CHARGE (Narrative
RESTRUCTURING CHARGE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Charge [Abstract] | ||
Restructuring charge, percentage of eliminated positions | 5.00% | |
Restructuring charge | $ 0 | $ 400 |
BUSINESS SEGMENTS BUSINESS SEGM
BUSINESS SEGMENTS BUSINESS SEGMENTS (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Restructuring charges | $ 0 | $ 400 |
Operating Segments | Potash | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 200 | |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | $ 200 |
BUSINESS SEGMENTS BUSINESS SE60
BUSINESS SEGMENTS BUSINESS SEGMENT (Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 48,332 | $ 73,277 | |
Less: Freight costs | 8,721 | 10,332 | |
Warehousing and handling costs | 2,770 | 2,664 | |
Cost of goods sold | 35,873 | 59,777 | |
Lower-of-cost-or-market inventory adjustments | 3,824 | 9,007 | |
Costs associated with abnormal production and other | 0 | 650 | |
Gross Deficit | (2,856) | (9,153) | |
Depreciation, depletion and amortization expense | [1] | 9,323 | 14,368 |
Operating Segments | Potash | |||
Segment Reporting Information [Line Items] | |||
Sales | 27,220 | 53,695 | |
Less: Freight costs | 2,959 | 6,551 | |
Warehousing and handling costs | 1,512 | 2,154 | |
Cost of goods sold | 20,421 | 47,288 | |
Lower-of-cost-or-market inventory adjustments | 0 | 9,007 | |
Costs associated with abnormal production and other | 650 | ||
Gross Deficit | 2,328 | (11,955) | |
Depreciation, depletion and amortization expense | [1] | 7,563 | 12,233 |
Operating Segments | Trio [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 21,112 | 19,582 | |
Less: Freight costs | 5,762 | 3,781 | |
Warehousing and handling costs | 1,258 | 510 | |
Cost of goods sold | 15,452 | 12,489 | |
Lower-of-cost-or-market inventory adjustments | 3,824 | 0 | |
Costs associated with abnormal production and other | 0 | ||
Gross Deficit | (5,184) | 2,802 | |
Depreciation, depletion and amortization expense | [1] | 1,699 | 1,675 |
Corporate/Other | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | |
Less: Freight costs | 0 | 0 | |
Warehousing and handling costs | 0 | 0 | |
Cost of goods sold | 0 | 0 | |
Lower-of-cost-or-market inventory adjustments | 0 | 0 | |
Costs associated with abnormal production and other | 0 | ||
Gross Deficit | 0 | 0 | |
Depreciation, depletion and amortization expense | [1] | $ 61 | $ 460 |
[1] | Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
RECENT ACCOUNTING PRONOUNCEME61
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) | Dec. 31, 2016USD ($) |
Retained Earnings | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 120,000 |