Rentech Nitrogen Partners, L.P. (NYSE: RNF) today announced its financial and operating results for the three months ended March 31, 2014.
Net income was $3.1 million, or $0.08 per basic unit, for the three months ended March 31, 2014. This compares to net income of $15.0 million, or $0.38 per basic unit, for the same period last year.
Revenues for the three months ended March 31, 2014 were $56.3 million, compared to $59.6 million for the same period in the prior year. Revenues declined 18% from the prior-year quarter at the East Dubuque, Illinois facility; they increased 11% over the prior-year quarter at the Pasadena, Texas facility.
Gross margin for the three months ended March 31, 2014 was 24%, compared to 38% for the same period last year.Adjusted EBITDA for the three months ended March 31, 2014 was $11.5 million. This compares to $20.6 million in the corresponding 2013 period. A further explanation of Adjusted EBITDA, a non-GAAP financial measure, appears below in this press release. “First quarter financial and operating performance improved significantly from the fourth quarter. Results for the first quarter benefitted from the work we completed to expand and repair the facilities. The East Dubuque and Pasadena facilities are producing at or above new nameplate production capacities,” stated D. Hunt Ramsbottom, CEO of Rentech Nitrogen. Mr. Ramsbottom continued, “Springtime nitrogen application in our trade zone is off to a strong start. Second quarter results will likely show a sequential improvement, thanks to the anticipated improved spring season.” East Dubuque Facility Revenues for the three months ended March 31, 2014 were $28.5 million, compared to $34.5 million for the same period last year. The decrease was primarily the result of lower ammonia and UAN deliveries, and lower sales prices for all fertilizer products. Lower revenues from fertilizer products were partially offset by an increase in sales of natural gas that were recorded in other revenue. The decrease in 2014 ammonia and UAN sales volume was due to unusually high sales volumes for the first quarter of 2013. Two unexpected outages at the ammonia plant during the fourth quarter of 2012 affected revenues in early 2013. The outages reduced production of ammonia and UAN. Deliveries of both products that had been expected in late 2012 were shifted into the first quarter of 2013. These two products comprised approximately 58% of the total revenues for the three months ended March 31, 2014 and 77% of total revenues for the first quarter of 2013.