Rentech, Inc. (NYSE MKT:RTK) today announced its results for the three and six months ended June 30, 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.
Three months ended June 30, 2012
Consolidated revenues for the three months ended June 30, 2012 were $70.7 million, compared to $74.4 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 June 30, 2012 was $29.4 million, compared to $20.8 million for the comparable period last year. During the three months ended June 30, 2012, Rentech’s nitrogen products manufacturing segment generated operating income of $41.6 million, compared to $35.9 million during the comparable period in the prior year. EBITDA for Rentech’s nitrogen products manufacturing segment was $44.9 million for the period, compared to $39.3 million in the corresponding period in 2011. Further explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of EBITDA to net income for Rentech’s nitrogen products manufacturing segment have been included below in this press release.
For the three months ended June 30, 2012, Rentech reported consolidated net income of $9.5 million, or $0.04 per basic share. This compares to net income of $7.9 million, or $0.04 per basic 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, “The solid results we reported today were driven by strong product pricing and low natural gas costs at Rentech Nitrogen, as well as reduced R&D spending in our alternative energy segment.” Mr. Ramsbottom continued, “We expect strong results this year, driven by positive market dynamics in the nitrogen fertilizer industry and continued focus on conservative capital deployment in the alternative energy business.”