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Rentech, Inc. (NYSE AMEX: RTK) today announced its results for the three months ended March 31, 2012. Rentech owns and develops technologies that enable the production of certified synthetic fuels, renewable power and hydrogen. The Company also owns the general partner interest and a majority of the common units of Rentech Nitrogen Partners, L.P. (NYSE: RNF) which operates a nitrogen fertilizer plant in East Dubuque, IL. Rentech’s financial results reflect the consolidated results of Rentech, Inc. and its subsidiaries, including Rentech Nitrogen. The results of Rentech Nitrogen are reported as the nitrogen products manufacturing segment of Rentech.
Consolidated revenues for the three months ended March 31, 2012 were $38.6 million, as compared to $24.0 million for the comparable period last year. Revenues were derived almost entirely from sales of nitrogen fertilizer products through Rentech Nitrogen.
Consolidated operating income for the three months ended March 31, 2012 was $6.6 million, compared to an operating loss of $4.4 million for the comparable period last year. During the three months ended March 31, 2012, Rentech’s nitrogen products manufacturing segment generated operating income of $19.5 million, compared to $9.0 million during the comparable period in the prior year. EBITDA for Rentech’s nitrogen products manufacturing segment was $21.9 million for the period, compared to $10.5 million in the corresponding period in 2011. Further explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of EBITDA to operating income for Rentech’s nitrogen products manufacturing segment have been included below in this press release.
For the three months ended March 31, 2012, Rentech reported a consolidated net loss of $3.3 million, or $0.01 per share. This compares to a net loss of $7.6 million, or $0.03 per share, reported in the comparable period in the prior year.
Commenting on results for the period, D. Hunt Ramsbottom, President and CEO of Rentech, said, “Our nitrogen fertilizer business had exceptionally strong first quarter results which were driven by an early spring application window, strong product pricing and low natural gas prices. We took advantage of this environment and ran the plant at a 100% on-stream rate. Based on current market conditions, we have an optimistic view of the year, with margins holding strong.” Mr. Ramsbottom continued, “On the alternative energy side of our business, we are enhancing our liquidity position through cost reduction initiatives, and pursuing investment opportunities that would generate an underlying cash flowing business with attractive returns.”