Rentech, Inc. (NASDAQ: RTK) today announced selected financial
results for the three and six months ended June 30, 2014. The
company is completing its review of the accounting for impairments
of goodwill related to its Pasadena facility. The company expects
an impairment of goodwill, a non-cash item, related to the Pasadena
facility in the second quarter of 2014 of up to the remaining
balance of approximately $27 million. The company currently expects
to file its form 10-Q on schedule on Monday, with complete
financial results for the periods. In the interest of timely
disclosure, the company elected to disclose the partial results
contained in this press release.
D. Hunt Ramsbottom, president and CEO of Rentech, said, “Market
conditions have improved for our East Dubuque facility, leading us
to issue 2014 guidance today of approximately $100 million of
Adjusted EBITDA for that facility. The same strength in ammonia
prices that is helping results at East Dubuque is hurting our
margins at Pasadena. Significantly lower product margins for
Pasadena in recent weeks have led us to reduce our outlook for the
year, to an Adjusted EBITDA loss of approximately $10 million. We
expect to implement a restructured operating plan designed to
generate positive Adjusted EBITDA from Pasadena’s fertilizer
operations, even in a pricing environment as unfavorable as
today’s. Additionally, we have engaged an advisory firm to help us
evaluate terminalling proposals we have received, and consider
other opportunities to maximize the value of our site along the
Houston Ship Channel.”
Mr. Ramsbottom continued, “The East Dubuque facility had a
seasonally strong quarter, driven by robust demand and the
increased output at that plant. We have locked in the majority of
our sales and natural gas purchases for the year for East
Dubuque.”
“Our wood fibre businesses continue to grow,” said Mr.
Ramsbottom. “Construction of our Canadian wood pellet projects is
nearing completion, and we will begin commissioning the plants in
the second half of this year. Integration of our recently acquired
New England Wood Pellet business is going smoothly, and it is
performing as well as we expected.” Mr. Ramsbottom continued, “We
are focused on execution at our operating businesses while pushing
forward on specific opportunities to significantly expand our wood
chipping and pellet businesses.”
Summary of Selected
Results
Rentech’s selected financial results reflect the results of
Rentech, Inc. and its subsidiaries, including its wood fibre
processing business, Rentech Nitrogen Partners, L.P. (NYSE: RNF)
(Rentech Nitrogen), and Energy Technologies as a discontinued
operation. The results of the wood fibre processing business are
reported as three operating segments: Fulghum Fibres (Fulghum),
Wood Pellets: New England Wood Pellet (NEWP), and Wood Pellets:
Industrial (Canadian operations and wood pellet business
development). Rentech owns the general partner and approximately
60% of the common units representing limited partner interests of
Rentech Nitrogen. Rentech Nitrogen’s results include two operating
segments: the East Dubuque, Illinois facility and the Pasadena,
Texas facility.
The company currently expects to record in the second quarter an
impairment of goodwill related to the Pasadena facility of up to
the remaining balance of approximately $27 million. The company is
completing its review of the goodwill and its impairment related to
the Pasadena plant. The partial results reported below do not
reflect the impact of any goodwill impairment in the second
quarter.
The financial results of Fulghum Fibres and NEWP were included
in results of operations only since the dates of their
acquisitions, which were May 1, 2013 and May 1, 2014,
respectively.
Three months ended June 30,
2014
Consolidated revenues for the three months ended June 30, 2014
were $139.9 million, compared to $120.1 million in the prior-year
period. These revenues were comprised of:
- $19.8 million from Fulghum Fibres, an
increase of $3.7 million from the prior-year period;
- $5.8 million from Wood Pellets:
NEWP;
- $0.7 million from Wood Pellets:
Industrial; and
- $113.6 million from Rentech Nitrogen,
an increase of $9.6 million from the prior-year period.
Gross profit was $31.4 million, compared to $42.3 million in the
prior-year period. Gross profit was comprised of:
- $2.0 million from Fulghum Fibres, a
decrease of $0.4 million from the prior-year period;
- $1.1 million from Wood Pellets:
NEWP;
- $0.1 million from Wood Pellets:
Industrial; and
- $28.2 million from Rentech Nitrogen, a
decrease of $11.6 million from the prior-year period.
Consolidated Adjusted EBITDA, which excludes the impact of the
expected impairment of goodwill, was $22.9 million, a decrease of
$11.6 million compared to the prior-year period. Consolidated
Adjusted EBITDA included the following:
- $2.1 million from Fulghum Fibres, a
decrease of $1.0 million from the prior-year period;
- $1.0 million from Wood Pellets: NEWP;
and
- $30.7 million from Rentech Nitrogen, a
decrease of $7.7 million from the prior-year period.
Further explanation of Adjusted EBITDA, a non-GAAP financial
measure, appears below in this press release.
Fulghum Fibres
Fulghum Fibres’ revenues were $19.8 million for the three months
ended June 30, 2014, compared to $16.1 million for the same period
last year. The increase was due to Rentech’s ownership of Fulghum
Fibres for the full three months ended June 30, 2014 as compared to
two months last year.
For the three months ended June 30, 2014, $14.6 million of
revenues were generated from U.S. operations, while $5.2 million of
revenues were from South America. For the same period last year,
$9.8 million of revenues were generated from operations in the U.S.
and $6.3 million of revenues were from South America. During the
three months ended June 30, 2014, mills in the U.S. processed 3.1
million green metric tons (GMT) of logs into wood chips and
residual fuels; mills in South America processed 0.5 million GMT of
logs into wood chips and residual fuels.
Several of Fulghum’s customers experienced outages at their
product mills causing lower than expected processing volumes for
Fulghum for the period. During the customers’ downtime, Fulghum
conducted deferred maintenance at several of its facilities, which
is expected to lead to improved operating performance in the
future. Completing this deferred maintenance, however, increased
operating costs during the quarter.
Wood Pellets: New England Wood Pellet
NEWP’s revenues were $5.8 million from May 1, 2014 through June
30, 2014 on deliveries of 28,000 tons of wood pellets. Cold weather
extended into the spring, causing deliveries of, and prices for,
NEWP’s wood pellets to be higher in some markets. These factors
yielded higher revenues than are typical for this time of year.
Wood Pellets: Industrial
The first revenues for this segment, $0.7 million, were
recognized during the second quarter of 2014. During the quarter,
Rentech acquired and delivered to Ontario Power Generation (OPG)
3,300 metric tons of wood pellets sourced from a third-party
regional wood pellet producer. These wood pellets supported the
commissioning phase of OPG’s converted power plant.
Nitrogen Product Manufacturing
Revenues for the three months ended June 30, 2014 were $113.6
million, compared to $104.0 million for the same period in the
prior year. Revenues increased 20% from the prior-year quarter at
the East Dubuque, Illinois facility; they decreased 6% over the
prior-year quarter at the Pasadena, Texas facility.
Gross margin for the three months ended June 30, 2014 was 25%,
compared to 38% for the same period last year.
Adjusted EBITDA, which excludes the impact of the expected
impairment of goodwill, for the three months ended June 30, 2014
was $30.7 million. This compares to $38.4 million in the
corresponding 2013 period. A further explanation of Adjusted
EBITDA, a non-GAAP financial measure, appears below in this press
release.
East Dubuque Facility
Revenues for the three months ended June 30, 2014 were $73.9
million, compared to $61.7 million for the same period last year.
The increase was the result of higher ammonia and UAN deliveries,
partially offset by lower sales prices for ammonia and UAN.
Average sales prices per ton for the three months ended June 30,
2014 were 26% lower for ammonia and 14% lower for UAN, as compared
with the same period last year. These two products comprised 88% of
the total revenues for the three months ended June 30, 2014 and 84%
of total revenues for the same period last year. The decreases in
sales prices for ammonia and UAN were consistent with the decline
in global nitrogen fertilizer prices between the two periods. These
decreases were caused by significantly higher levels of low-priced
urea in the global market, particularly from China. Prices were
also affected by additional nitrogen fertilizer production brought
on line in North America over the last 12 months.
Gross profit was $33.0 million for the three months ended June
30, 2014; this compares to $37.5 million for the same period last
year. Gross profit margin for the three months ended June 30, 2014
was 45%, compared to 61% for the same period last year.
Adjusted EBITDA for the three months ended June 30, 2014 for the
East Dubuque facility was $36.8 million. This compares to Adjusted
EBITDA of $38.9 million in the corresponding period in 2013. A
further explanation of Adjusted EBITDA, a non-GAAP financial
measure, appears below in this press release.
Pasadena Facility
Revenues for the three months ended June 30, 2014 were $39.7
million, compared to $42.2 million for the same period last year. A
reduction in sales prices for all products was partially offset by
an increase in ammonium sulfate sales volumes. Production of
ammonium sulfate increased after the completion of the
debottlenecking project in December 2013, and sales increased due
to favorable weather during the planting season, and an increase in
international sales.
Average sales prices per ton dropped by 30% for ammonium sulfate
and by 3% for sulfuric acid for the three months ended June 30,
2014, as compared with the same period last year. These two
products comprised 93% of the Pasadena facility’s revenues for the
three months ended June 30, 2014 and 87% for the same period last
year. A higher proportion of export sales, priced lower than
domestic sales, contributed to the decline in average product
price. A global decline in nitrogen prices, along with higher
exports of ammonium sulfate from China, put downward pressure on
ammonium sulfate prices. The additional supplies from China
originate from new plants that produce ammonium sulfate as a
by-product of caprolactam.
Gross loss was $4.7 million for the three months ended June 30,
2014, compared to gross profit of $2.4 million for the same period
last year. Gross loss margin for the three months ended June 30,
2014 was 12% compared to gross profit margin of 6% for the same
period last year. The decreases in gross profit and gross profit
margin were primarily due to declines in average sales prices for
ammonium sulfate, increases in the cost of raw materials and a
write-down of inventories. For the three months ended June 30,
2014, the partnership wrote down ammonium sulfate inventory by $2.8
million because production costs exceeded estimated selling prices
for that inventory. During the same period last year, the
partnership wrote down ammonium sulfate inventory by $1.8
million.
Adjusted EBITDA, which excludes the impact of the expected
impairment of goodwill, for the three months ended June 30, 2014
for the Pasadena facility was a loss of $3.8 million. This compares
to Adjusted EBITDA of $2.0 million in the corresponding period in
2013. A further explanation of Adjusted EBITDA, a non-GAAP
financial measure, appears below in this press release.
Corporate Unallocated Expenses
Corporate unallocated expenses included in selling, general and
administrative (SG&A) expenses were $7.8 million for the three
months ended June 30, 2014, compared to $6.3 million in the
corresponding period in 2013. Non-cash compensation expenses were
$1.5 million for the three months ended June 30, 2014 and $1.6
million for the prior-year quarter. The increase in corporate
unallocated expenses was primarily due to transaction costs related
to the NEWP acquisition and costs associated with evaluating
shareholder proposals and making settlements with shareholders.
Six months ended June 30,
2014
Consolidated revenues were $224.7 million for the six months
ended June 30, 2014, compared to $179.6 million in the prior-year
period. These revenues were comprised of:
- $48.4 million from Fulghum Fibres, an
increase of $32.3 million from the prior-year period;
- $5.8 million from Wood Pellets:
NEWP;
- $0.7 million from Wood Pellets:
Industrial; and
- $169.9 million from Rentech Nitrogen,
an increase of $6.4 million from the prior-year period.
Gross profit was $49.3 million, compared to $65.0 million in the
prior-year period. Gross profit was comprised of:
- $6.1 million from Fulghum Fibres, an
increase of $3.7 million from the prior-year period;
- $1.1 million from Wood Pellets:
NEWP;
- $0.1 million Wood Pellets: Industrial;
and
- $42.0 million from Rentech Nitrogen, a
decrease of $20.6 million from the prior-year period.
Consolidated Adjusted EBITDA, which excludes the impact of the
expected impairment of goodwill, was $30.3 million, compared to
$47.3 million in the prior-year period. Consolidated Adjusted
EBITDA included the following:
- $6.7 million from Fulghum Fibres, an
increase of $3.6 million from the prior-year period;
- $1.0 million from Wood Pellets: NEWP;
and
- $42.2 million from Rentech Nitrogen, a
decrease of $16.9 million from the prior-year period.
Further explanation of Adjusted EBITDA, a non-GAAP financial
measure, appears below in this press release.
Fulghum Fibres
Fulghum Fibres’ revenues were $48.4 million for the six months
ended June 30, 2014, compared to $16.1 million for the same period
last year. The increase was due to Rentech’s ownership of Fulghum
Fibres for the full six months ended June 30, 2014 as compared to
two months last year.
For the six months ended June 30, 2014, U.S. operations
generated $28.8 million of revenues while South American operations
generated $19.6 million of revenues. For the same period last year,
U.S. operations generated $9.8 million of revenues; South American
operations generated $6.3 million of revenues. During the six
months ended June 30, 2014, mills in the U.S. processed 6.1 million
GMT of logs into wood chips and residual fuels, while mills in
South America processed 1.3 million GMT of logs.
A fire during the first quarter of 2014 at a Fulghum mill in
Maine disrupted operations, causing lower processing volumes and
higher than typical processing costs at the facility during the six
months ended June 30, 2014. Recoveries from insurance policies
offset a significant portion of these additional operating
costs.
Wood Pellets: New England Wood Pellet
NEWP’s revenues were $5.8 million for the six months ended June
30, 2014 on deliveries of 28,000 tons of wood pellets.
Wood Pellets: Industrial
Revenues were $0.7 million for the six months ended June 30,
2014.
Nitrogen Products Manufacturing
Revenues for the six months ended June 30, 2014 were $169.9
million, compared to $163.5 million for the same period in the
prior year. Revenues increased 6% over the first six months in the
prior year at the East Dubuque, Illinois facility; they remained
flat over the prior-year six months at the Pasadena, Texas
facility.
Gross margin for the six months ended June 30, 2014 was 25%,
compared to 38% for the same period last year.
Adjusted EBITDA, which excludes the impact of the expected
impairment of goodwill, for the six months ended June 30, 2014 was
$42.2 million. This compares to $59.1 million in the corresponding
2013 period. A further explanation of Adjusted EBITDA, a non-GAAP
financial measure, appears below in this press release.
East Dubuque Facility
Revenues for the six months ended June 30, 2014 were $102.4
million, compared to $96.3 million for the same period last year.
Increases in ammonia and UAN deliveries and natural gas sales were
partially offset by lower sales prices for ammonia and UAN.
Average sales prices per ton for the six months ended June 30,
2014 were 26% lower for ammonia and 11% lower for UAN, as compared
with the same period last year. These two products comprised 80% of
the total revenues for the six months ended June 30, 2014 and 81%
of total revenues for the same period last year.
Gross profit was $45.4 million for the six months ended June 30,
2014, compared to $56.2 million for the same period last year.
Gross profit margin for the six months ended June 30, 2014 was 44%,
compared to 58% for the same period last year.
Adjusted EBITDA for the six months ended June 30, 2014 for the
East Dubuque facility was $50.2 million. This compares to Adjusted
EBITDA of $58.5 million in the corresponding period in 2013. A
further explanation of Adjusted EBITDA, a non-GAAP financial
measure, appears below in this press release.
Pasadena Facility
Revenues for the six months ended June 30, 2014 were $67.5
million, compared to $67.3 million for the same period last year.
An increase in ammonium sulfate sales volumes was almost completely
offset by lower sales prices for all products and lower sales
volumes for sulfuric acid and ammonium thiosulfate.
A scarcity of rail cars throughout North America during the
first half of 2014 hampered ammonium sulfate deliveries during the
period. The Pasadena facility leased rail cars directly to help
alleviate the problem, but the inability to move product affected
opportunities to pursue additional business. The lack of rail cars
also caused storage capacity constraints at the plant that required
a curtailment of production for five days in April. Rail
availability is now back to normal.
Average sales prices per ton dropped by 34% for ammonium sulfate
and by 9% for sulfuric acid for the six months ended June 30, 2014,
as compared with the same period last year. These two products
comprised 89% of total revenues for the six months ended June 30,
2014 and 86% of total revenues for the same period last year.
Gross loss was $3.4 million for the six months ended June 30,
2014, compared to gross profit of $6.3 million for the same period
last year. Gross loss margin for the six months ended June 30, 2014
was 5%, compared to gross profit margin of 9% for the same period
last year. The decreases in gross profit and gross profit margin
were primarily due to declines in average sales prices for ammonium
sulfate and a write-down of inventories. For the six months ended
June 30, 2014, the partnership wrote down ammonium sulfate
inventory by $2.8 million because production costs exceeded
estimated selling prices for that inventory. During the same period
last year, the partnership wrote down sulfur, sulfuric acid and
ammonium sulfate inventory by $2.3 million.
Adjusted EBITDA, which excludes the impact of the expected
impairment of goodwill, for the six months ended June 30, 2014 for
the Pasadena facility was a loss of $3.5 million. This compares to
Adjusted EBITDA of $5.2 million in the corresponding period in
2013. A further explanation of Adjusted EBITDA, a non-GAAP
financial measure, appears below in this press release.
Corporate Unallocated Expenses
Corporate unallocated expenses included in SG&A were $14.6
million for the six months ended June 30, 2014, compared to
$13.0 million in the corresponding period in 2013. Non-cash
compensation expenses were $2.8 million for the six months ended
June 30, 2014 and $2.9 million for the same period last year. The
increase in corporate unallocated expenses was due to transaction
costs related to the NEWP acquisition and costs associated with
evaluating shareholder proposals and making settlements with
shareholders.
Conference Call with
Management
The Company will hold a conference call today, August 7, 2014,
at 3:00 p.m. PDT, during which Rentech's senior management will
review the Company's financial results for this period and provide
an update on corporate developments. Callers may listen to the live
presentation, which will be followed by a question and answer
segment, by dialing 888-517-2513 or 847-619-6533 and entering the
pass code 7750504#. An audio webcast of the call will be available
at www.rentechinc.com within the Investor Relations portion of the
site, under the Presentations section. A replay will be available
by audio webcast and teleconference from 5:30 p.m. PDT on August 7
through 11:59 p.m. PDT on August 17. The replay teleconference will
be available by dialing 888-843-7419 or 630-652-3042 and entering
the audience passcode 7750504#.
Rentech, Inc. Selected Financial Results (Amounts in
Thousands)
For the Three Months
For the Six Months Ended June 30, Ended
June 30, 2014 2013 2014
2013 (unaudited) (unaudited)
Revenues $
139,890 $ 120,061 $ 224,721 $ 179,625
Cost of Sales
108,451 77,788 175,387
114,633
Gross Profit 31,439 42,273 49,334 64,992
Operating Expenses Selling, general and
administrative expense 17,642 12,824 33,214 25,406 Depreciation and
amortization 1,394 1,765 1,070 2,897 Other (income) expense
244 (4 ) (104 ) 11
Total Operating
Expenses 19,280 14,585 34,180
28,314
Operating Income1
12,159 27,688 15,154 36,678
1Excludes the impact of the expected impairment of goodwill
related to the Pasadena facility.
Rentech, Inc. Selected Financial Results
(Stated in Thousands)
For the Three
Months For the Six Months Ended June
30, Ended June 30, 2014 2013
2014 2013 (unaudited) (unaudited)
Revenues East Dubuque $ 73,943 $ 61,717 $ 102,434 $ 96,266 Pasadena
39,666 42,239 67,455 67,254 Fulghum Fibres 19,836 16,105 48,387
16,105 Wood Pellets: Industrial 667 — 667 — Wood Pellets: NEWP
5,778 — 5,778 —
Total Segment Revenues
$ 139,890 $ 120,061 $ 224,721 $ 179,625
Gross Profit (Loss) East Dubuque $ 32,952 $ 37,493 $ 45,350
$ 56,239 Pasadena (4,733 ) 2,355 (3,367 ) 6,328 Fulghum Fibres
2,019 2,425 6,150 2,425 Wood Pellets: Industrial 114 — 114 — Wood
Pellets: NEWP 1,087 — 1,087
—
Total Segment Gross Profit $ 31,439
$ 42,273 $ 49,334 $ 64,992
Selling, General and Administrative Expense East Dubuque $ 1,088 $
1,097 $ 2,221 $ 2,442 Pasadena 1,247 1,342 3,076 2,584 Fulghum
Fibres 1,651 859 3,052 859 Wood Pellets: Industrial 3,340 812 5,408
1,883 Wood Pellets: NEWP 391 —
391 —
Total Segment Selling, General and
Administrative Expense $ 7,717 $ 4,110 $ 14,148
$ 7,768 Depreciation and Amortization East
Dubuque $ 38 $ 33 $ 75 $ 106 Pasadena 337 875 633 1,750 Fulghum
Fibres 950 718 141 718 Wood Pellets: Industrial 35 — 54 — Wood
Pellets: NEWP (98 ) — (98 ) —
Total Segment Depreciation and Amortization Recorded in
Operating Expenses $ 1,262 $ 1,626 $ 805 $
2,574 Operating Income (Loss) East Dubuque $ 31,598 $
36,370 $ 42,832 $ 53,683 Pasadena1 (6,317 ) 138 (7,076 ) 1,994
Fulghum Fibres (583 ) 845 2,956 845 Wood Pellets: Industrial (3,261
) (812 ) (5,006 ) (1,883 ) Wood Pellets: NEWP 794
— 794 —
Total Segment
Operating Income1 $ 22,231 $ 36,541 $
34,500 $ 54,639
Reconciliation of Segment
Operating Income to Consolidated Operating Income: Segment
operating income $ 22,231 $ 36,541 $ 34,500 $ 54,639 RNF –
Partnership and unallocated expenses recorded as selling, general
and administrative expenses (2,169 ) (2,462 ) (4,485 ) (4,616 )
Corporate and unallocated expenses recorded as selling, general and
administrative expenses (7,756 ) (6,252 ) (14,581 ) (13,022 )
Corporate and unallocated depreciation and amortization expense
(132 ) (139 ) (265 ) (323 ) Corporate and unallocated expenses
recorded as other expense (15 ) — (15 )
—
Consolidated Operating Income1 $
12,159 $ 27,688 $ 15,154 $ 36,678
1Excludes the impact of the expected impairment of goodwill
related to the Pasadena facility.
Rentech, Inc. Selected Financial Results
(Stated in Thousands)
As of
As of June 30, 2014 December 31,
2013 (unaudited) Cash - RNF $ 20,100 $ 34,060 Cash excluding
RNF 53,521 72,309
Total Cash $ 73,621 $
106,369 Debt - RNF $ 320,000 $ 320,000 Debt excluding RNF
123,739 101,979
Total Debt $ 443,739 $ 421,979
Disclosure Regarding Non-GAAP Financial
Measures
Adjusted EBITDA for Rentech, and Adjusted EBITDA for Rentech
Nitrogen are defined as operating income, excluding the impact of
the expected impairment of goodwill at the Pasadena facility, plus
depreciation and amortization. Adjusted EBITDA for Fulghum Fibres
and NEWP are defined as operating income plus depreciation and
amortization.
The non-GAAP financial measures described above 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.
These non-GAAP financial measures should not be considered an
alternative to any measure of financial performance or liquidity
presented in accordance with GAAP. These non-GAAP financial
measures may have material limitations as performance measures
because they exclude items that are necessary elements of our
businesses’ costs and operations. In addition, EBITDA and Adjusted
EBITDA presented by other companies may not be comparable to our
presentation of those measures, since each company may define these
terms differently.
The following reconciliations do not give effect to an expected
impairment of goodwill charge related to the Pasadena facility for
the three and six months ended June 30, 2014.
The table below reconciles Rentech’s consolidated Adjusted
EBITDA from operating income1 for the three months ended June 30,
2014 and 2013.
Rentech, Inc. (Stated in Thousands)
For the Three Months For the
Three Months Ended June 30, Ended June 30,
2014 2013 (unaudited)
Operating Income1
$ 12,159 $ 27,688 Add: Depreciation and amortization 10,708 6,802
Adjusted EBITDA1
$ 22,867 $ 34,490
1Excludes the impact of the expected impairment of goodwill
related to the Pasadena facility.
The table below reconciles Rentech’s consolidated Adjusted
EBITDA from operating income1 for the six months ended June 30,
2014 and 2013.
Rentech, Inc.
(Stated in Thousands)
For the Six Months
For the Six Months Ended June 30, Ended June
30, 2014 2013 (unaudited)
Operating Income1
$ 15,154 $ 36,678 Add: Depreciation and amortization 15,149
10,593
Adjusted EBITDA1
$ 30,303 $ 47,271
1Excludes the impact of the expected impairment of goodwill
related to the Pasadena facility.
The table below reconciles Rentech Nitrogen’s consolidated
Adjusted EBITDA along with the Adjusted EBITDA for each of its
facilities, a non-GAAP financial measure, to their respective
operating income (loss)1 for the three months ended June 30,
2014.
For the Three Months Ended June 30, 2014
(Stated in thousands, except per unit data)
East DubuqueFacility
PasadenaFacility
PartnershipLevel
Consolidated (unaudited) Operating income
(loss)1 $ 31,598 $ (6,317 ) $ (2,169 ) $ 23,112 Plus: Depreciation
and amortization 5,155 2,474 -
7,629
Adjusted EBITDA1
$ 36,753 $ (3,843 ) $ (2,169 ) $ 30,741
1Excludes the impact of the expected impairment of goodwill
related to the Pasadena facility.
The table below reconciles consolidated Adjusted EBITDA along
with the Adjusted EBITDA for each of its facilities to their
respective operating income (loss) for Rentech Nitrogen for the
three months ended June 30, 2013.
For the Three Months Ended June 30, 2013
(Stated in thousands, except per unit data)
East DubuqueFacility
PasadenaFacility
PartnershipLevel
Consolidated (unaudited) Operating income
(loss) $ 36,370 $ 138 $ (2,462 ) $ 34,046 Plus: Depreciation and
amortization 2,483 1,905 - 4,388
Adjusted EBITDA $ 38,853 $ 2,043 $ (2,462 ) $ 38,434
The table below reconciles consolidated Adjusted EBITDA along
with the Adjusted EBITDA for each of its facilities to their
respective operating income (loss)1 for Rentech Nitrogen for the
six months ended June 30, 2014.
For the Six Months Ended June 30, 2014
(Stated in thousands, except per unit data)
East DubuqueFacility
PasadenaFacility
PartnershipLevel
Consolidated (unaudited) Operating income
(loss)1 $ 42,832 $ (7,076 ) $ (4,485 ) $ 31,271 Plus: Depreciation
and amortization 7,397 3,536 -
10,933
Adjusted EBITDA1
$ 50,229 $ (3,540 ) $ (4,485 ) $ 42,204
1Excludes the impact of the expected impairment of goodwill
related to the Pasadena facility.
The table below reconciles consolidated Adjusted EBITDA along
with the Adjusted EBITDA for each of its facilities to their
respective operating income (loss) for Rentech Nitrogen for the six
months ended June 30, 2013.
For the Six Months Ended June 30, 2013
(Stated in thousands, except per unit data)
East DubuqueFacility
PasadenaFacility
PartnershipLevel
Consolidated (unaudited) Operating income
(loss) $ 53,683 $ 1,994 $ (4,616 ) $ 51,061 Plus: Depreciation and
amortization 4,788 3,207 - 7,995
Adjusted EBITDA $ 58,471 $ 5,201 $ (4,616 ) $ 59,056
The table below reconciles Adjusted EBITDA to operating income
(loss) for Fulghum Fibres for the three months ended June 30, 2014
and 2013.
Fulghum's Adjusted EBITDA (Stated in Thousands)
For the Three Months
For the Three Months Ended June 30, Ended
June 30, 2014 2013 (unaudited)
Fulghum Operating Income (loss)
$ (583 ) $ 845 Add: Depreciation and amortization 2,732
2,275
Fulghum's Adjusted EBITDA $ 2,149
$ 3,120
The table below reconciles Adjusted EBITDA to operating income
for Fulghum Fibres for the six months ended June 30, 2014 and
2013.
Fulghum's Adjusted EBITDA (Stated in Thousands)
For the Six Months
For the Six Months Ended June 30, Ended June
30, 2014 2013 (unaudited)
Fulghum Operating
Income $ 2,956 $ 845 Add: Depreciation and amortization
3,717 2,275
Fulghum's Adjusted EBITDA $ 6,673 $ 3,120
The table below reconciles Adjusted EBITDA to net income for
NEWP for the three and six months ended June 30, 2014.
NEWP's Adjusted EBITDA (Stated in Thousands)
For the Three Months
For the Six Months Ended June 30, Ended June
30, 2014 2014 (unaudited)
NEWP Net Income
$ 794 $ 794 Add: Depreciation and amortization 180 180
NEWP's
Adjusted EBITDA1 $ 974 $ 974
1In 2014, Rentech will recognize Adjusted EBITDA from the date
of the acquisition through December 31, 2014.
About Rentech, Inc.
Rentech, Inc. (NASDAQ: RTK) owns and operates wood fibre
processing, wood pellet production and nitrogen fertilizer
manufacturing businesses. Rentech offers a full range of integrated
wood fibre services for commercial and industrial customers around
the world, including wood chipping services, operations, marketing,
trading and vessel loading, through its subsidiary, Fulghum Fibres.
The Company’s New England Wood Pellet subsidiary is a leading
producer of bagged wood pellets for the U.S. heating market.
Rentech manufactures and sells nitrogen fertilizer through its
publicly-traded subsidiary, Rentech Nitrogen Partners, L.P. (NYSE:
RNF). Please visit www.rentechinc.com and www.rentechnitrogen.com
for more information.
Safe Harbor Statement
This press release contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995
about matters such as: an expected impairment of goodwill related
to the Pasadena Facility; the expected filing date of our quarterly
report on Form 10-Q; our plans for restructuring operations at the
Pasadena facility; our forecasts for 2014; projected revenues and
EBITDA for the wood fibre and nitrogen businesses; our ability to
complete the wood pellet mills on a timely basis and on budget; the
outlook for our wood processing and nitrogen fertilizer businesses;
and our ability to close on the sale of our energy technologies
business. 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 the Company’s prior
press releases and periodic public filings with the Securities and
Exchange Commission, which are available via Rentech’s website at
www.rentechinc.com. The
forward-looking statements in this press release are made as of the
date of this press release and Rentech 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.
Rentech, Inc.Julie Dawoodjee CafarellaVice president of Investor
Relations and Communications310-571-9800ir@rentk.com
Rentech, Inc. (NASDAQ:RTK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Rentech, Inc. (NASDAQ:RTK)
Historical Stock Chart
From Jul 2023 to Jul 2024