The financial statements for the periods ended December 31, 2012 include results of the Pasadena Facility segment from the date of the closing of the acquisition of Agrifos LLC, which was November 1, 2012.
Three months ended December 31, 2012
Consolidated revenues for the three months ended December 31, 2012 were $92.5 million, compared to $63.1 million for the comparable period last year. Revenues were derived almost entirely from sales of nitrogen fertilizer products through Rentech Nitrogen. The increase in revenues at Rentech Nitrogen was due to the contribution of $37.4 million of revenues from the Pasadena Facility, which was partially offset by decreased sales prices and volumes for most products at the East Dubuque Facility. Ammonia and UAN sales volumes declined in the current period as a result of production lost during plant outages at the East Dubuque Facility that occurred in the fourth quarter of 2012. This delayed UAN shipments scheduled for the fourth quarter of 2012 into the first quarter of 2013.Consolidated operating income for the three months ended December 31, 2012 was a loss of $9.3 million, compared to operating income of $10.2 million for the three months ended December 31, 2011. During the current year period, $16.0 million was recorded for impairments primarily relating to the write-off of capitalized SilvaGas patents and goodwill from the acquisition of ClearFuels, in the amounts of approximately $8.5 million and $7.2 million, respectively. Current period operating income for the nitrogen products manufacturing business was negatively impacted by $4.1 million of acquisition costs at the Pasadena Facility. During the three months ended December 31, 2012, Rentech’s nitrogen products manufacturing subsidiary generated operating income of $21.3 million, compared to $22.6 million during the prior-year period. EBITDA for Rentech’s nitrogen products manufacturing business was $24.3 million for the period, compared to $25.9 million in the corresponding period in 2011. EBITDA for the current period, excluding Partnership level expenses and non-recurring items related to the Pasadena Facility, totaled $28.6 million. The East Dubuque Facility and the Pasadena Facility contributed $30.3 million and ($1.7) million in EBITDA, respectively, during the three months ended December 31, 2012. As part of purchase accounting adjustments related to the acquisition of Agrifos, the value of inventory was increased to fair value as of the closing date, which resulted in an approximately $3.4 million increase in the cost of product sold by the Pasadena Facility during the two-month period ended December 31, 2012. Further explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of EBITDA to net income for Rentech’s nitrogen products manufacturing subsidiary have been included below in this press release.