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TheStreet Open House

Rentech Nitrogen Partners, L.P. Announces Results For Third Quarter 2013

Stocks in this article: RNF

Third Quarter Cash Distribution

On October 24, 2013, Rentech Nitrogen announced its cash distribution related to its results for the third quarter of 2013, of $0.27 per unit. The distribution is payable on November 14, 2013 to unitholders of record as of November 7, 2013. The calculation of cash available for distribution has been included below in this press release.

Conference Call with Management

Rentech Nitrogen will hold a conference call today, November 7, 2013 at 1:30 p.m. PST, during which senior management will review the Partnership’s financial results for this period and provide an update on the business. During the call, management will refer to a presentation that will be posted shortly before the call within the Investor Relations portion of the website under the Presentation section. Callers may listen to the live presentation, which will be followed by a question and answer segment, by dialing 800-774-6070 or 630-691-2753 and the pass code 6179090#. An audio webcast of the call will be available at www.rentechnitrogen.com within the Investor Relations portion of the site under the Presentations section. A replay will be available by audio webcast and teleconference from 4:00 p.m. PST on November 7 through 11:59 p.m. PST on November 17. The replay teleconference will be available by dialing 888-843-7419 or 630-652-3042 and the audience passcode 6179090#.

Note: The financial statements and key operating metrics below include results of the Pasadena Facility for the three and nine months ended September 30, 2013 only, as the closing of the acquisition of Agrifos LLC, occurred on November 1, 2012.

 
Rentech Nitrogen Partners, L.P.
Consolidated Statements of Operations
(Amounts in Thousands, Except per Unit Data)
               
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2013 2012 2013 2012
(unaudited) (unaudited) (unaudited) (unaudited)
 
Revenues $ 93,279 $ 60,112 $ 256,799 $ 169,228
 
Cost of Sales   76,459     25,077     177,412     65,975  
 
Gross Profit   16,820     35,035     79,387     103,253  
 
Operating Expenses
Selling, general and administrative expense 4,080 5,508 13,722 11,982
Depreciation and amortization 1,018 90 2,874 726
Loss on goodwill impairment 30,029 - 30,029 -
Other   28     237     36     284  
Total Operating Expenses   35,155     5,835     46,661     12,992  
Operating Income (Loss)   (18,335 )   29,200     32,726     90,261  
 
Other Income (Expense), Net
Interest expense (3,996 ) (39 ) (9,725 ) (181 )
Loss on debt extinguishment - - (6,001 ) -
Gain on fair value adjustment to earn-out consideration 309 - 4,920 -
Other expenses, net   -     (313 )   (7 )   (632 )
 
Total Other Expenses, Net   (3,687 )   (352 )   (10,813 )   (813 )
 
Income (Loss) Before Income Taxes (22,022 ) 28,848 21,913 89,448
 

Income tax expense

233 - 438 -
       
Net Income (Loss) $ (22,255 ) $ 28,848   $ 21,475   $ 89,448  
 
Basic Net Income (Loss) per Common Unit Allocated to Common Unit Holders $ (0.57 ) $ 0.75   $ 0.54   $ 2.34  
 
Diluted Net Income (Loss) per Common Unit Allocated to Common Unit Holders $ (0.57 ) $ 0.75   $ 0.54   $ 2.34  
 
Weighted-Average Units Used to Compute Net Income (Loss) per Common Unit:
Basic   38,849     38,260     38,843     38,254  
 
Diluted   38,849     38,292     38,934     38,259  
 
 
Rentech Nitrogen Partners, L.P.
Statements of Operations by Business Segment
(Stated in Thousands)
             
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2013 2012 2013     2012
Revenue
East Dubuque $ 50,572 $ 60,112 $ 146,838 $ 169,228
Pasadena   42,707     -   109,961     -
Total Revenues $ 93,279   $ 60,112 $ 256,799   $ 169,228
 
Gross Profit (Loss)
East Dubuque $ 25,114 $ 35,035 $ 81,353 $ 103,253
Pasadena   (8,294 )   -   (1,966 )   -
Total Gross Profit $ 16,820   $ 35,035 $ 79,387   $ 103,253
 
Selling, General and Administrative Expense
East Dubuque $ 981 $ 1,661 $ 3,423 $ 4,480
Pasadena   1,227     -   3,811     -
Total Selling, General and Administrative Expense $ 2,208   $ 1,661 $ 7,234   $ 4,480
 
Depreciation and Amortization
East Dubuque $ 46 $ 90 $ 152 $ 726
Pasadena   972     -   2,722     -
Total Depreciation and Amortization Recorded in Operating Expenses $ 1,018   $ 90 $ 2,874   $ 726
East Dubuque $ 1,666 $ 3,589 $ 6,348 $ 8,730
Pasadena   1,702     -   3,159     -
Total Depreciation and Amortization Recorded in Cost of Sales $ 3,368   $ 3,589 $ 9,507   $ 8,730
Total Depreciation and Amortization $ 4,386   $ 3,679 $ 12,381   $ 9,456
 
Other Operating Expenses
East Dubuque $ 28 $ 237 $ 36 $ 284
Pasadena   30,029     -   30,029     -
Total Other Operating Expenses $ 30,057   $ 237 $ 30,065   $ 284
 
Operating Income (Loss)
East Dubuque $ 24,059 $ 33,047 $ 77,742 $ 97,763
Pasadena   (40,522 )   -   (38,528 )   -
Total Operating Income (Loss) $ (16,463 ) $ 33,047 $ 39,214   $ 97,763
 
Interest Expense
East Dubuque $ - $ 39 $ - $ 181
Pasadena   -     -   6     -
Total Interest Expense $ -   $ 39 $ 6   $ 181
 
Net Income (Loss)
East Dubuque $ 24,069 $ 33,022 $ 77,383 $ 97,625
Pasadena   (40,765 )   -   (38,915 )   -
Total Net Income (Loss) $ (16,696 ) $ 33,022 $ 38,468   $ 97,625
 
       
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2013     2012 2013     2012

Reconciliation of Segment Net Income (Loss) to Consolidated Net Income (Loss):

Segment Net Income (Loss) $ (16,696 ) $ 33,022 $ 38,468 $ 97,625

Partnership and Unallocated Expenses Recorded as Selling, General and Administrative Expenses

(1,872 ) (3,847 ) (6,488 ) (7,502 )

Partnership and Unallocated Income (Expenses) Recorded as Other Expense

309 - (1,081 ) 232

Unallocated Interest Expense and Loss on Interest Rate Swaps

(3,996 ) (327 ) (9,726 ) (907 )

Income Tax Benefit

  -     -     302     -  
Consolidated Net Income (Loss) $ (22,255 ) $ 28,848   $ 21,475   $ 89,448  
 
 
Rentech Nitrogen Partners
Selected Balance Sheet Data
(Stated in Thousands)
           
As of As of
Consolidated Balance Sheet Data

September 30, 2013

December 31, 2012

Cash and Cash Equivalents $ 85,321 $ 55,799
Working Capital $ 70,495 $ 23,218
Construction in Progress $ 113,372 $ 61,147
Total Assets $ 453,577 $ 376,645
Total Debt $ 320,000 $ 193,290
Total Partners' Capital $ 50,367 $ 109,404
 

Key Operating Statistics:

       

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2013     2012 2013     2012
Production Tons (in thousands)
East Dubuque Facility:
Ammonia 77 76 227 231
Ammonia Available for Sale (included in line above) 32 37 102 112
UAN 86 77 236 238
Other Products (excludes CO 2) 85 76 238 228
Pasadena Facility:
Ammonium Sulfate 122 - 374 -
Sulfuric Acid 113 - 367 -
Ammonium Thiosulfate 12 - 43 -
Delivered Tons (in thousands)
East Dubuque Facility:
Ammonia 24 31 76 101
UAN 117 110 237 236
Other Products (excludes CO 2) 14 14 49 40
Pasadena Facility:
Ammonium Sulfate 162 - 330 -
Sulfuric Acid 39 - 119 -
Ammonium Thiosulfate 1 - 41 -
 
Average Price per Delivered Ton
East Dubuque Facility:
Ammonia $ 530 $ 620 $ 675 $ 666
UAN $ 269 $ 295 $ 299 $ 332
Pasadena Facility:
Ammonium Sulfate $ 238 - $ 269 -
Sulfuric Acid $ 86 - $ 94 -
Ammonium Thiosulfate $ 158 - $ 189 -
 
Input Costs
East Dubuque Facility:
Natural Gas  
Natural Gas Used in Production (Million MMBtus) 2.8 2.8 8.2 8.4
Average Natural Gas Cost per MMBtu, including transportation cost $ 4.16 $ 3.18 $ 4.17 $ 3.51
Natural Gas Cost in Cost of Sales (Million MMBtus) 2.9 3.1 7.3 8.0
Average Natural Gas Cost per MMBtu, including transportation cost $ 4.29 $ 3.14 $ 4.15 $ 3.63
 
Input Costs
Pasadena Facility:
Ammonia
Ammonia Used in Production (Thousand Tons) 32 - 100 -
Ammonia in Cost of Sales (Thousand Tons) 41 - 89 -
Sulfur
Sulfur Used in Production (Thousand Tons) 40 - 132 -
Sulfur in Cost of Sales (Thousand Tons) 53 - 131 -
On-Stream Rates 1 :
East Dubuque Facility:
Ammonia 100.0 % 100.0 % 100.0 % 100.0 %
UAN 100.0 % 100.0 % 99.3 % 100.0 %
Pasadena Facility:
Ammonium Sulfate 79.8 % - 81.8 % -
Sulfuric Acid 77.9 % - 90.8 % -
 

1The on-stream factors for the ammonia, UAN, ammonium sulfate and sulfuric acid plants equal the total days the applicable plant operated in any given period, divided by the total days in that period.

Disclosure Regarding Non-GAAP Financial Measures

Net income excluding loss on goodwill impairment, loss on debt extinguishment, and gain on fair value adjustment to earn-out contingent consideration is included to provide management and investors with net income results for Rentech Nitrogen that are more easily compared to the prior year period.

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