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 Reports 2012 Activities And Financial Results; Provides 2013 Guidance


As previously disclosed, Rentech is focused on immediate growth opportunities that meet the following criteria: unlevered, after-tax returns in the mid-teens or higher; certainty of revenue with long-term contracts for off-take, providing stability of cash flows; no reliance on new technology; and opportunities to leverage Rentech’s expertise and resources.

Rentech is continuing low-cost efforts to seek partners who would provide funding to deploy its alternative energy technologies or to sell or license the technologies to third parties who are developing projects. The Company will attempt to sell the PDU, as well as approximately 450 acres of land in Natchez, Mississippi acquired for the development of an alternative energy facility.

2013 Outlook

Rentech Nitrogen

In its press release dated March 19, 2013, Rentech Nitrogen issued guidance for cash available for distribution for the twelve months ending December 31, 2013 of approximately $2.60 per unit. The 2013 guidance includes the impact of two scheduled outages at its facilities during 2013, and the impact of lost revenue in 2013 due to the unscheduled outage at the East Dubuque Facility in December 2012. Excluding the effects of these outages the forecast for 2013 cash available for distribution would have been approximately $0.65 per unit higher.

Assuming product and input prices equal to those expected in 2013, Rentech Nitrogen noted that the increased annual production from its expansion projects scheduled to come online by the end of 2013 would be expected to add approximately $0.90 per unit of cash distributions and approximately $41 million of EBITDA.

Based on Rentech Nitrogen’s current guidance of $2.60 per unit, and assuming Rentech’s current ownership of 23.25 million units of Rentech Nitrogen, Rentech would receive approximately $60 million in cash distributions in 2013.


Rentech provided the following guidance for cash selling, general and administrative (Cash SG&A) and R&D expenses for 2013, excluding Rentech Nitrogen:

2012 Actual

2013 Guidance


Cash SG&A Expenses $21.4 million Approximately $20 million based on current run rate

Plus: Former R&D Expenses 1


Approximately $5 million, to be incurred over the second through fourth quarters
Total Cash SG&A Expenses       $21.4 million       Approximately $25 million        
Total Cash R&D Expenses $21.0 million Approximately $5 million, to be incurred in the first quarter
Total Cash Operating Expenses       $42.4 million       Approximately $30 million       (30%)

1 Expenses that would have been recorded as R&D absent the decision announced on February 28, 2013, to cease operations, reduce staffing at, and mothball Rentech’s research and development Product Demonstration Unit.

In addition to the above guidance, Rentech indicated that former R&D expenses classified as SG&A are anticipated to be at an annualized run rate of $2-3 million by the end of 2013. Any ongoing costs would be to protect patents covering Rentech’s alternative energy technologies, to maintain the Commerce City site if efforts to sell the site are unsuccessful or to continue low-cost efforts to seek partners who would provide funding to deploy its technologies. Additionally, Rentech expects to incur no R&D expenses in 2014.

3 of 10

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs