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

Adjusted EBITDA is defined as net income (loss) plus interest expense and other financing costs, loss on goodwill impairment, loss on debt extinguishment, loss on interest rate swaps, income tax expense and depreciation and amortization, net of gain in fair value adjustment to earn-out consideration. We calculate cash available for distribution as used in this table as Adjusted EBITDA plus non-cash compensation expense and distribution of cash reserves, less the sum of maintenance capital expenditures not funded by financing proceeds, net interest expense and other debt service. Adjusted EBITDA and cash available for distribution are used as supplemental financial measures by management and by external users of our financial statements, such as investors and commercial banks, to assess:

  • the financial performance of our assets without regard to financing methods, capital structure or historical cost basis; and
  • our operating performance and return on invested capital compared to those of other publicly traded limited partnerships and other public companies, without regard to financing methods and capital structure.

Adjusted EBITDA and cash available for distribution should not be considered alternatives to net income, operating income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and cash available for distribution may have material limitations as performance measures because they exclude items that are necessary elements of our costs and operations. In addition, Adjusted EBITDA and cash available for distribution presented by other companies may not be comparable to our presentation, since each company may define these terms differently.

The table below reconciles net income (loss) attributable to Rentech Nitrogen, excluding loss on goodwill impairment, loss on debt extinguishment and gain on fair value adjustment to earn-out contingent consideration, to net income for the three and nine months ended September 30, 2013 (stated in thousands, except per share data).

         

For the Three Months Ended September 30, 2013

For the Nine Months Ended September 30, 2013

Net Income (Loss) $ (22,255 ) $ 21,475

Less: Income Attributable to Unvested Units

  -     326  
Net Income (Loss) Attributable to Common Unit Holders $ (22,255 ) $ 21,149  
Loss on Goodwill Impairment $ 30,029 $ 30,029
Loss on Debt Extinguishment - 6,001

Gain on Fair Value Adjustment to Earn-out Consideration

  (309 )   (4,920 )

Net Income Attributable to Common Unit Holders Excluding Loss on Goodwill Impairment, Loss on Debt Extinguishment and Gain on Fair Value Adjustment to Earn-out Consideration

$ 7,465   $ 52,259  
 

Net Income (Loss) per Unit Attributable to Common Unit Holders

$ (0.57 ) $ 0.54
Loss per Unit on Goodwill Impairment 0.77 0.77
Loss per Unit on Debt Extinguishment - 0.15
Gain per Unit on Fair Value Adjustment to Earn-out Consideration   (0.01 )   (0.13 )

Net Income per Unit Attributable to Common Unit Holders Excluding Loss on Goodwill Impairment, Loss on Debt Extinguishment and Gain on Fair Value Adjustment to Earn-out Consideration

$ 0.19   $ 1.34  
 

Weighted-Average Common Units Outstanding

38,849 38,843
 

The table below reconciles consolidated Adjusted EBITDA and cash available for distribution to net income (loss) for the three months ended September 30, 2013 (stated in thousands, except per unit data).

   
For the Three Months Ending September 30, 2013

 

East Dubuque Facility

   

Pasadena Facility

   

Partnership Level

   

Consolidated

Net Income (Loss) $ 24,068 $ (40,764 ) $ (5,559 ) $ (22,255 )
Plus: Net Interest Expense - - 3,996 3,996
Plus: Loss on Goodwill Impairment - 30,029 - 30,029
Plus: Income Tax Expense

(9

)

242

- 233
Plus: Depreciation and Amortization 1,712 2,674 - 4,386

Less: Gain on Fair Value Adjustment to Earn-out Consideration

  -     -     (309 )   (309 )
Adjusted EBITDA $

25,771

$

(7,819

) $ (1,872 ) $ 16,080
Plus: Non-cash Compensation Expense - - 233 233
Less: Maintenance Capital Expenditures 1 (2,199 ) - - (2,199 )

Less: Net Interest Expense and Debt Service

- - (3,996 ) (3,996 )
Plus: Distribution of Cash Reserves for

Working Capital

  -     -     371     371  
Cash Available for Distribution $

23,572

  $

(7,819

) $ (5,264 ) $ 10,489  
Cash Available for Distribution, per Unit $ 0.61   $ (0.20 ) $ (0.14 ) $ 0.27  
Common Units Outstanding 38,849 38,849 38,849 38,849
 

1Excludes $2.2 million of maintenance capital expenditures at the Pasadena Facility funded by debt.

The table below reconciles consolidated Adjusted EBITDA to net income (loss) for the nine months ended September 30, 2013 (stated in thousands).

 
For the Nine Months Ended September 30, 2013
East Dubuque Facility   Pasadena Facility   Partnership Level  

Consolidated

Net Income (Loss) $ 77,383 $ (38,915 ) $ (16,993 ) $ 21,475
Plus: Net Interest Expense - 6 9,719 9,725
Plus: Loss on Goodwill Impairment - 30,029 - 30,029
Plus: Loss on Debt Extinguishment - - 6,001 6,001

Less: Gain on Fair Value Adjustment to Earn-out Consideration

-

-

(4,920

)

(4,920

)

Plus: Loss on Interest Rate Swaps - - 7 7
Plus: Income Tax Expense (Benefit)

360

380

(302 ) 438
Plus: Depreciation and Amortization   6,500   5,881     -     12,381  
Adjusted EBITDA

$

84,243

$

(2,619

) $ (6,488 ) $ 75,136  
 

The table below reconciles Adjusted EBITDA to net income for the three and nine months ended September 30, 2012 (stated in thousands).

           
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2012 2012
 
Net income $ 28,848 $ 89,448
Add:
Net Interest Expense 25 138
Income Tax Expense - -
Depreciation and Amortization 3,679 9,456
Loss on Debt Extinguishment - -
Loss on Interest Rate Swaps 327 907

Gain on Fair Value Adjustment to Earn-out Consideration

- -
Other   -   (232 )
Adjusted EBITDA $ 32,879 $ 99,717  
 

About Rentech Nitrogen, L.P.

Rentech Nitrogen ( www.rentechnitrogen.com) was formed by Rentech, Inc. to own, operate and expand its nitrogen fertilizer business. Rentech Nitrogen’s assets consist of two fertilizer production facilities owned by its operating subsidiaries. The East Dubuque Facility is located in the northwestern corner of Illinois, and uses natural gas as a feedstock to produce primarily anhydrous ammonia and UAN solution for sale to customers in the Mid Corn Belt. The Pasadena Facility is located in Pasadena, Texas, along the Houston Ship Channel, and uses ammonia and sulfur as feedstocks to produce ammonium sulfate and ammonium thiosulfate fertilizers, and sulfuric acid. Rentech Nitrogen is the largest producer of synthetic granulated ammonium sulfate fertilizer in North America, with sales in the United States and internationally.

Forward-Looking Statements

This press release contains forward-looking statements about matters such as: our forecasted EBITDA and cash available for distribution for the quarter ending December 31, 2013; the outlook for our nitrogen fertilizer businesses; trends in the pricing and demand for our fertilizer products; the timing and cost of repairs for our East Dubuque facility; and the timing and impact of our expansion projects. These statements are based on management’s current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements are set forth in Rentech Nitrogen’s prior press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech Nitrogen’s website at www.rentechnitrogen.com. The forward-looking statements in this press release are made as of the date of this press release and Rentech Nitrogen does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.



Stock quotes in this article: RNF 

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