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Rentech, Inc. (NASDAQ: RTK) today announced financial and operating results for the three months ended March 31, 2014.
D. Hunt Ramsbottom, president and CEO of Rentech, said, “One year ago, we announced our wood fibre strategy when we acquired Fulghum Fibres. Fulghum Fibres’ cash flow has proven to be stable and the business is running as expected. Our Canadian wood pellet projects are progressing on schedule and on budget.” Mr. Ramsbottom continued, “We have just acquired New England Wood Pellet, which strengthens and diversifies our fibre portfolio. With the recent investment from Blackstone/GSO, we are well positioned to further expand our fibre business.”
Mr. Ramsbottom added, “Our nitrogen fertilizer facilities have improved their operating and financial performance compared to last quarter. Both facilities are producing at or above new nameplate production capacity. We are focused on continued operational excellence at all of our facilities worldwide.”
Summary of Results
Rentech’s financial statements reflect the consolidated results of Rentech, Inc. and its subsidiaries, including its wood fibre processing business and Rentech Nitrogen Partners, L.P. (NYSE: RNF) (Rentech Nitrogen). Rentech owns the general partner and approximately 60% of the common units representing limited partner interests of Rentech Nitrogen. The results of the wood fibre processing business are reported as two operating segments: Fulghum Fibres (wood chipping) and wood pellets. Rentech Nitrogen’s results include two operating segments: the East Dubuque Facility and the Pasadena Facility. Results of the Company’s energy technologies business were reported as discontinued operations for the first time this quarter. Prior-year earnings from this segment were also reclassified as discontinued operations.
The financial results of Fulghum Fibres were included in 2013 results of operations only since the date of acquisition, which was May 1, 2013. Results for the three months ended March 31, 2014 are summarized below:
Consolidated revenues were $84.8 million, compared to $59.6 million in the prior-year period. These revenues were comprised primarily of:
$28.6 million from Fulghum Fibres; and
$56.3 million from Rentech Nitrogen, which represents a decrease of $3.3 million from the prior-year period.
Gross profit was $17.9 million, compared to $22.7 million in the prior-year period. Gross profit was comprised of:
$4.1 million from Fulghum Fibres; and
$13.8 million from Rentech Nitrogen, which represents a decrease of $9.0 million from the prior-year period
Consolidated Adjusted EBITDA was $6.0 million, an increase of $0.3 million compared to the prior-year period. EBITDA included the following:
$4.5 million from Fulghum Fibres; and
$11.5 million from Rentech Nitrogen, which represents a decrease of $9.2 million from the prior-year period.
Further explanation of Adjusted EBITDA, a non-GAAP financial measure, has been included below in this press release.