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TheStreet Open House

Rentech Reports Results For The First Quarter Of 2012

Rentech Nitrogen continues to benefit from relatively low North American natural gas prices, which, when coupled with strong nitrogen product prices, resulted in gross profit margin of 59% for the period, up from 43% for the comparable period in the prior year.

During the three months ended March 31, 2012, Rentech Nitrogen delivered 30,000 tons of ammonia, 34,000 tons of UAN, and 13,000 tons of other nitrogen products, compared to 20,000 tons of ammonia, 30,000 tons of UAN, and 12,000 tons of other nitrogen products during the comparable period in the prior year. Delivered tons are rounded to the nearest thousand.

Outlook

Rentech expects cash operating and capital expenses to be slightly higher than its previous guidance of $42-$44 million for the twelve months ending September 30, 2012, primarily due to the expense of minor modifications and delays to the IBR project. In 2013, Rentech expects R&D expenses to be less than $10 million.

In its press release dated May 11, 2012, Rentech Nitrogen issued guidance for the twelve months ending December 31, 2012 and increased its guidance for the twelve months ending September 30, 2012.

Cash Distributions from Rentech Nitrogen

Rentech Nitrogen declared its first cash distribution of $1.06 per unit, payable on May 15, 2012 to unit holders of record as of May 8. Rentech will receive approximately $24.6 million, based on its ownership of 23.25 million units of Rentech Nitrogen as of the record date.

Conference Call with Management

The Company will hold a conference call on Friday, May 11, 2012 at 12:00 p.m. PDT, during which time Rentech's senior management will review the Company's financial results for this period and provide an update on corporate developments. Callers may listen to the live presentation, which will be followed by a question and answer segment, by dialing 800-734-8592 or 212-231-2903. An audio webcast of the call will be available at www.rentechinc.com within the Investor Relations portion of the site under the Presentations section. A replay will be available by audio webcast and teleconference from 2:00 p.m. PDT on May 11 through 2:00 p.m. PDT on May 18. The replay teleconference will be available by dialing 800-633-8284 or 402-977-9140 and the reservation number 21586856.

Rentech, Inc. and Subsidiaries
Consolidated Statements of Operations
(Stated in Thousands, Except per Share Data)
                       
For the Three Months
Ended March 31,
  2012     2011  

(unaudited)

 

Total Revenues $ 38,588 $ 23,994
 
Cost of Sales   15,953     13,792  
 
Gross Profit 22,635 10,202
 
Selling, general and administrative expense 10,413 7,747
Research and development 5,022 6,372
Depreciation and amortization 1,139 559
Vendor settlement

(509

)

-
Other  

(8

)

 

(44

)

Total Operating Expenses   16,057     14,634  
 
Operating Income (Loss) 6,578

(4,432

)

 
Interest and dividend income 66 37
Interest expense

(2,314

)

(3,712

)

Other income (expense), net  

(4

)

  20  
Total Other Expenses, Net  

(2,252

)

 

(3,655

)

 

Net Income (Loss) from Continuing Operations before Income Taxes

4,326

(8,087

)

 
Income tax expense   -     -  
 
Net Income (Loss) 4,326

(8,087

)

Net (income) loss attributable to noncontrolling interests

 

(7,590

)

  522  
Net Loss Attributable to Rentech

$

(3,264

)

$

(7,565

)

 

Basic and Diluted Net Loss per Common Share

$

(0.01

)

$

(0.03

)

 

Basic and Diluted Weighted-Average Common Shares Outstanding

  225,865     222,218  

 

Rentech, Inc. and Subsidiaries

Balance Sheet Data

(Stated in Thousands)

                       
As of March 31, As of December 31,
2012 2011
Cash and Cash Equivalents $ 247,137 $ 237,478
Working Capital 207,703 206,434
Construction in Progress 25,843 9,809
Total Assets 393,869 360,528
Total Long-Term Liabilities 63,485 53,475
Total Rentech Stockholders' Equity 208,285 208,848
 

Disclosure Regarding Non-GAAP Financial Measures

EBITDA is a presentation of earnings before interest, taxes and depreciation and amortization. EBITDA is used as a supplemental financial measure by management and by external users of financial statements, such as investors and commercial banks, to assess:

  • the financial performance of our assets without regard to financing methods, capital structure or historical cost basis; and
  • our operating performance and return on invested capital compared to those of other public companies, without regard to financing methods and capital structure.

EBITDA should not be considered an alternative to net income, operating income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA may have material limitations as a performance measure because it excludes items that are necessary elements of our costs and operations. In addition, EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.

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