Rentech Announces Results For The Third Quarter Of 2016

Rentech, Inc. (NASDAQ: RTK) today announced financial and operating results for the third quarter of 2016.

Commenting on the quarter, Keith Forman, President and CEO of Rentech, stated, "We completed the previously announced replacements of problematic conveyors and other maintenance and repairs at our Atikokan and Wawa plants in the third quarter. Atikokan is consistently operating at approximately 90% of capacity and we expect the plant to operate at an annualized rate of production of approximately 100,000 metric tons of pellets until such time that we have an economic justification to replace the last remaining bottleneck conveyors. The new conveyors at Wawa are functioning as expected, with the plant producing at an annualized rate of approximately 150,000 metric tons of pellets. We are working to resolve some equipment and operating issues as we execute on our plan to ramp production at Wawa until we reach full capacity (400,000 to 450,000 metric tons annually), which is expected in late 2017."

Mr. Forman continued, "At Fulghum, strong South American sales drove third quarter revenues higher than in the prior year period, offsetting lower domestic processing volumes. At NEWP, consumers have delayed pellet purchases in advance of the upcoming heating season in reaction to last year's unusually mild winter, which resulted in significantly weaker third quarter results as compared to the prior year. With colder temperatures arriving in the U.S. Northeast, we are beginning to move pellet shipments to the big box stores."

"To date, we have completed restructuring actions that are expected to result in annual consolidated SG&A expense savings of approximately $11 million. We are continuing our efforts to realize additional savings that would result in annual SG&A expense reductions at the high end of our guidance range of $12 - $15 million," Mr. Forman added.

Summary of Results

The consolidated results consist of Fulghum Fibres (Fulghum), New England Wood Pellet (NEWP), Industrial Wood Pellets, which includes our Canadian pellet plants, and unallocated corporate expenses. The former Rentech Nitrogen Pasadena and East Dubuque facilities are classified as discontinued operations due to the disposition of those businesses on March 14, 2016 and April 1, 2016, respectively. Rentech's energy technologies business is also classified as discontinued operations due to its sale in October 2014. Allegheny's operations are included in our operating results from January 23, 2015, the closing date of the acquisition.

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