This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rentech Nitrogen Announces Results For Third Quarter 2012

During the three months ended September 30, 2012, Rentech Nitrogen generated operating income of $29.2 million compared to $10.4 million during the comparable period in the prior year.

For the three months ended September 30, 2012, net income was $28.8 million or $0.75 per unit. This compares to net income of $3.3 million for the comparable period last year. EBITDA for the period was $32.9 million, compared to $12.9 million in the corresponding period in 2011. Further explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of Rentech Nitrogen's EBITDA to net income have been included below in this press release.

Commenting on the results for the period, D. Hunt Ramsbottom, CEO of Rentech Nitrogen GP, LLC, stated, “Rentech Nitrogen continues to produce exceptional results, benefiting from relatively low natural gas prices and strong product deliveries and prices. These factors contributed to strong cash distributions of $0.85 per unit this quarter.” Mr. Ramsbottom continued, “We recently completed our first acquisition, which will provide incremental cash flow and growth opportunities and diversifies the products, markets, location, and raw materials of our nitrogen fertilizer operations beyond those of our existing plant in East Dubuque. Rentech Nitrogen will begin to see the accretive benefits of this new business in 2013, when it is expected to begin contributing to cash distributions.”

Mr. Ramsbottom added, “With the acquisition of the fertilizer production facility in Pasadena, TX, we believe we have positioned Rentech Nitrogen for additional growth and less exposure to weather fluctuations in corn pricing and plantings, pricing of any one particular product or raw material, and the seasonality of sales.”

Rentech Nitrogen’s natural gas hedging strategy resulted in average natural gas costs of $3.14 per MMBtu for the third quarter of 2012, compared to $4.74 per MMBtu for the prior-year period. Lower natural gas costs combined with strong product prices contributed to gross margins of 58% in the current period, up significantly from 33% for the same quarter last year.

2 of 9

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs