Announces Reorganization and Cost Savings
Plans
Provides Update on Canadian
Facilities
Rentech, Inc. (NASDAQ: RTK) today announced financial and
operating results for the three and six months ended June 30,
2015.
Keith Forman, President and CEO of Rentech, stated, “Our
nitrogen business exceeded our expectations this quarter due to
strong demand for ammonia and ammonium sulfate during the spring
application season. Rentech Nitrogen announced a strong second
quarter cash distribution and increased guidance for distributions
in 2015, which will add to Rentech’s cash position.”
“Fulghum had a strong second quarter largely due to cost
controls and improved performance in South America. We expect this
segment to finish the year at the high end of our indicated range
for EBITDA of $16 to $17 million. NEWP continues to perform well
and the business is tracking to full year EBITDA guidance of $9 to
$10 million,” said Mr. Forman.
Mr. Forman continued, “The Atikokan plant has been generating
positive EBITDA since May. At Wawa, we are producing a limited
quantity of pellets. We will need to modify and replace the log
in-feed equipment and a signification portion of conveyance systems
at the Wawa plant this fall and into next year, to address the
construction flaws we discovered during ramp-up. Given what we know
today, we currently estimate that these modifications will increase
our total project spending to approximately $145 million, which is
$5 million above the high end of our previous guidance range.”
“Yesterday, we announced transformative transactions that would
de-lever Rentech and increase our cash position. The closing of the
merger of Rentech Nitrogen and CVR Partners would enable us to
repay debt and redeem preferred stock held by GSO Capital, while we
continue to hold significant value of securities in a
more-diversified nitrogen company,” added Mr. Forman.
Reorganization and Cost Savings
Plans
Rentech plans to restructure its non-fertilizer businesses to
focus on operations and execution, while significantly reducing
corporate overhead. Rentech expects to complete the restructuring
and realize at least $10 million of reductions in annualized
selling, general and administrative (SG&A) expense run-rate
exiting 2016. We expect to announce the details of the
restructuring within the next 90 days. The scope and timing of the
expected cost reductions are the result of an ongoing comprehensive
organizational assessment and are expected to result in one-time
charges.
Canadian Update
Atikokan Facility
The Atikokan Facility has completed commissioning and is in the
ramp-up phase. We experienced a transformer failure and have been
temporarily using a smaller transformer that causes us to operate
the facility at reduced rates. In the third quarter of 2015, we
intend to install the larger permanent transformer that will allow
Atikokan to operate at full rates. In spite of the temporary
transformer with lower capacity and some material handling
equipment issues, the ramp-up phase at Atikokan has been proceeding
better than our forecasts. During ramp-up, we identified the need
to replace or repair the truck dump conveyor and hopper at the
facility, and the need to modify some of the conveyors at the
plant. Atikokan may still reach full capacity in February 2016;
however, the timing could shift by several months depending on the
degree of modifications needed to correct the material handling
equipment issues and any other possible issues that may arise
during ramp-up.
Wawa Facility
Most of the equipment at the Wawa Facility has been commissioned
and the plant is producing a limited quantity of wood pellets.
However, we discovered that we will need to modify the front end
system of the facility that handles logs and feeds them into the
chipper, and modify or replace a significant portion of the
conveyors that handle chips and pellets. These issues are
preventing us from ramping up the plant to expected production
levels. We expect to correct these issues during this fall and the
first half of next year. We currently estimate that correcting
these problems will increase our total expected project spending
for the Canadian pellet plants to approximately $145 million, which
is $5 million above the high end of our previous guidance range of
$131 million to $140 million. The cost estimates to correct the
issues are preliminary and have significant uncertainty. This
revised projection for capital expenditures does not include
contingencies to address any other unforeseen issues that may arise
during ramp-up of the facilities. Taking into account the time
required to correct the log in-feed equipment and conveyance
systems, we now expect the Wawa Facility to operate at full
capacity in the second half of 2016, instead of in mid-2016. We
intend to pursue all remedies available to us under our vendor
contracts related to issues with the conveyor systems.
Drax and Canadian National Railway
Contracts
Due to the expected delays in production at the Wawa Facility,
we again amended our delivery commitments under the contract we
have with Drax. In August, we canceled all 240,000 tonnes of wood
pellet deliveries in 2015 that we had agreed to in the February
amendment. The August amendment provided for a comprehensive
settlement amount of approximately $2.6 million to compensate Drax
for all canceled deliveries under all amendments. Half of that
settlement amount is payable in cash by the end of December 2015,
and the remaining half will be in the form of price reductions on
the first two pellet shipments expected to be made to Drax in 2016.
The February amendment added 72,000 tonnes of pellets to the
required deliveries in 2018 and 2019; these will remain at 2015
pricing, which is expected to be lower than pricing in those future
years under the original terms of the contract. The entire
settlement amount of $2.6 million was recorded in SG&A expenses
in the second quarter of 2015 in the Wood Pellets: Industrial
segment.
Due to delays caused by the issues at Wawa, we do not expect to
fully meet our 2015 commitments under our contract with Canadian
National Railway Company (Canadian National). The estimated amount
of penalties could be as much as $2.4 million under the terms of
the contract; however, we are negotiating with Canadian National to
amend the contract to allow us to make up for the shortfalls in
future contract years with additional volumes in lieu of paying any
penalties in cash.
Summary of Results
The consolidated results of Rentech, Inc. include its
wood fibre processing business and Rentech Nitrogen Partners,
L.P. (NYSE: RNF) (Rentech Nitrogen). The wood fibre processing
business consists of Fulghum Fibres (Fulghum); New England Wood
Pellet (NEWP), which includes the mill recently purchased
from Allegheny Pellet Corporation (Allegheny); and
Industrial Wood Pellets, which includes our Canadian pellet plants,
business development for industrial pellets, senior management of
the fibre business and corporate
allocations. Rentech owns the general partner and
approximately 60% of the limited partner interests of Rentech
Nitrogen. Rentech Nitrogen’s operating segments are the East
Dubuque, Illinois facility and the Pasadena,
Texas facility. NEWP’s and Allegheny’s operations are included
in our operating results from May 1,
2014 and January 23, 2015, respectively, the closing
dates of the acquisitions.
During the first six months of 2015, our East Dubuque plant has
improved its production levels and delivered operating results
significantly better than those in 2014 periods. The results
benefitted from the receipt of $4.4 million of insurance proceeds
from claims under coverage for business interruption related to the
fire that occurred in 2013. The Pasadena Facility improved to
positive EBITDA during the first six months of 2015, and we
recorded an asset impairment charge of $101.8 million related to
the facility.
Combined output and losses for the Canadian pellet plants are
worse than we expected due to significant problems in the
material-handling equipment installed at the Wawa Facility and the
need for some corrective actions at Atikokan. Please refer to the
Canadian Update section above for additional information.
NEWP continues to perform well and exceed expectations, with the
Allegheny acquisition contributing as expected. Fulghum Fibres’
cost controls have reduced our per-unit costs, which together with
improved performance in South America, has improved the results and
outlook for Fulghum compared to 2014 periods and compared to our
expectations for 2015. Fulghum also received an insurance
settlement related to the fire in Woodland, Maine, that created a
gain of $1.6 million during the first six months of 2015.
In February of 2015, we signed an amended credit agreement with
GSO Capital, which provided up to $63 million of capacity under
certain circumstances. Up to $18 million is still available under
certain circumstances under that facility. We expect that Rentech’s
current sources of liquidity are adequate to provide for our
expected needs during the next twelve months, but we have
relatively small liquidity cushions to absorb unexpected events. We
expect Rentech Nitrogen’s current sources of liquidity to be
adequate with substantial cushions in place.
On August 4, we announced that we will effect a 1-for-10 reverse
split of our common stock. Rentech’s common stock will begin
trading on a split-adjusted basis on August 20, 2015.
On August 10, Rentech announced that it has agreed to vote its
59.7% ownership interest in Rentech Nitrogen in favor of the
proposed merger with CVR Partners LP. Upon the closing of the
merger, Rentech would receive approximately $318 million in cash
and units of CVR Partners, plus a retained interest in Rentech
Nitrogen’s Pasadena Facility, based on the closing unit price of
CVR Partners on August 7, 2015. Rentech and other holders of
Rentech Nitrogen would receive the value of the Pasadena Facility
upon the disposition of the asset. In conjunction with the closing
of the merger, Rentech would also repay $50 million of debt and
$100 million of preferred stock held by GSO Capital Partners.
Please refer to Rentech’s press release issued on August 10 for
additional details.
Three months ended June 30,
2015
Consolidated revenues for the second quarter of
2015 were $149.8 million, compared to $139.2
million in the prior year period. These revenues were
comprised of:
- $25.7 million from Fulghum, an
increase of $6.6 million from the prior year period;
- $11.7 million from NEWP; an increase of
$5.9 million from the prior year period
- $2.5 million from Wood Pellets:
Industrial, an increase of $1.9 million from the prior year period;
and
- $109.9 million from Rentech
Nitrogen, a decrease of $3.8 million from the prior year
period.
Gross profit for the second quarter of 2015 was $48.5
million, compared to $31.4 million in the prior year
period. Gross profit was comprised of:
- $4.3 million from Fulghum, an
increase of $2.3 million from the prior year period;
- $2.6 million from NEWP, an increase of
$1.5 million from the prior year period;
- $(3.1) million from Wood Pellets:
Industrial, a decrease of $(3.2) million; and
- $44.7 million from Rentech Nitrogen, an
increase of $16.5 million from the prior year period.
Consolidated Adjusted EBITDA for the second quarter of
2015 was $41.2 million, compared to $21.3 million in
the prior year period. Consolidated Adjusted EBITDA included the
following:
- $5.5 million from Fulghum, an
increase of $3.3 million from the prior year period;
- $2.5 million from NEWP, an increase of
$1.5 million from the prior year period;
- $(9.6) million from Wood Pellets:
Industrial, a decrease of $(6.4) from the prior year period;
and
- $47.7 million from Rentech Nitrogen, an
increase of $16.9 million from the prior year period.
Further explanation of Adjusted EBITDA, a non-GAAP financial
measure, as used here and throughout this press release, appears
below.
Net loss attributable to Rentech common shareholders for the
second quarter of 2015 was $(53.4) million, or a
loss of $(0.23) per basic share, compared to a net loss
of $(20.6) million, or a loss of $(0.09) per basic share,
for the same period last year.
Net income for the second quarter of 2015 was $48.4
million, or $0.21 per basic share, excluding the Pasadena
asset impairment. Net income for the second quarter of 2014 was
$6.6 million, or $0.03 per share, excluding the Pasadena goodwill
impairment.
Fulghum Fibres
Revenues were $25.7 million for the second quarter of
2015, compared to $19.1 million for the same period last
year. The increase was primarily due to higher chip and bark sales
in South America.
Revenues from operations in the United States were $14.8 million
for the second quarter of 2015, as compared to $14.6 million
in the prior year period. Revenues in the second quarter of 2014
were lower as a result of the fire at our Maine mill in March of
last year. Revenues from operations in South America were $10.9
million for the second quarter of 2015, as compared to
$4.5 million in the prior year period. The increase in South
America revenues was primarily due to higher biomass product sales
domestically and chip sales to Asia in the second quarter of 2015
as compared to 2014.
The United States and South America mills processed
3.6 million green metric tons, or GMT, of logs into wood chips
and residual fuels for each of the second quarters of 2015 and
2014.
Gross profit was $4.3 million for the second quarter of 2015,
compared to $2.0 million for the same period last year. Gross
profit margin for the second quarter of 2015 was 17%, compared to
11% for the prior year period. The increases in gross profit and
gross margin were due primarily to higher product sales volumes at
the mills in South America, and cost savings at our processing
mills in the United States, partially offset by higher product
costs associated with higher sales volume and higher depreciation
expense. In addition, gross profits and gross margins were lower in
2014 as a result of the fire at our Maine mill in March of last
year.
During the second quarter of 2015, we negotiated a settlement
with our insurance carriers related to the 2014 fire at our mill in
Maine. The settlement resulted in a gain of $1.6 million,
representing the excess of the settlement amount over the net book
value of the property destroyed.
Adjusted EBITDA for the second quarter of 2015 was $5.5
million. This compares to Adjusted EBITDA of $2.2 million for
the same period in 2014.
Net income was $3.1 million for the second quarter of 2015,
compared to a net loss of $(1.0) million for the same period
last year.
New England Wood Pellet
Revenues were $11.7 million for the second quarter of 2015 on
deliveries of 57,000 tons of wood pellets. This compared to $5.8
million in revenues from May 1, 2014 through June 30, 2014 on
deliveries of 28,000 tons of wood pellets.
Gross profit was $2.6 million for the second quarter of 2015,
compared $1.1 million for the same period last year. Gross profit
margin for the second quarter of 2015 was 22%, compared to 19% for
the prior year period.
Adjusted EBITDA for the second quarter of 2015 was $2.5
million. This compares to Adjusted EBITDA of $1.0 million for
the same period in 2014.
Net income was $1.5 million for the second quarter of 2015,
compared to net income of $0.7 million for the same period
last year.
Wood Pellets: Industrial
Revenues for the second quarter of 2015 were $2.5 million
earned by delivering to OPG 13,500 metric tons of wood pellets
produced at the Atikokan facility. Revenues were $0.7
million for wood pellets sold to OPG for the prior year
period.
Gross loss was $(3.1) million compared to gross profit of
$0.1 million for the prior year period. Gross loss margin was
(120%) compared to gross profit margin of 17% for the prior year
period. Results in 2014 reflect the purchase and sale of third
party produced pellets before the Atikokan and Wawa facilities were
producing. The gross losses and gross loss margins in 2015 were due
to high operating costs relative to revenues during commissioning
and ramp up of both the Atikokan and Wawa facilities, including the
related write down of inventory at Wawa by $2.7 million during the
second quarter of 2015.
In the second quarter of 2015, $2.6 million of settlement costs
related to amending the Drax contract in August was recorded in
SG&A expenses.
Adjusted EBITDA loss for the second quarter of 2015
was $(9.6) million. This compares to Adjusted EBITDA loss of
$(3.3) million for the same period last year.
Net loss was $(10.7) million for the second quarter of
2015, compared to a net loss of $(3.2) for the same period last
year.
Nitrogen Product
Manufacturing
Revenues for the second quarter of 2015 were $109.9 million,
compared to $113.6 million in 2014. Gross profit for the
second quarter of 2015 was $44.7 million, compared to
$28.2 million for the same period last year. Adjusted EBITDA
for the second quarter of 2015 was $47.7 million,
compared to $30.7 million in the corresponding 2014 period. A
further explanation of Adjusted EBITDA, a non-GAAP financial
measure, as used here and throughout this press release appears
below.
During the second quarter of 2015, Rentech Nitrogen recorded an
asset impairment charge of $101.8 million for the Pasadena
Facility, due to our conclusion that our process to evaluate
strategic alternatives and the announced agreement with CVR
Partners made it more likely than not that the facility would be
sold or otherwise disposed of before the end of its previously
estimated useful life. This conclusion requires that the estimate
of future cash flows used to calculate the fair value of the
facility must include estimated sale proceeds and interim cash
flows leading up to the sale.
Net loss for the second quarter of 2015 was $(66.2)
million. This compares to net loss of $(8.9) million for the
prior year period. Net income was $35.6 million for the
quarter ended June 30, 2015, excluding the loss due to the Pasadena
asset impairment. This compares to net income $18.3 million
for the prior year period, excluding the Pasadena goodwill
impairment.
East Dubuque Facility
Revenues for the second quarter of 2015 were $72.1
million, compared to $73.9 million for the same period
last year. The decrease was primarily due to lower sales volumes
and prices for UAN, partially offset by higher sales volumes and
prices for ammonia.
Ammonia deliveries increased due to strong demand from
agricultural and industrial customers leading into the spring
planting season. Volumes were low in 2014 because production was
interrupted by a planned turnaround and a fire in the fourth
quarter of 2013. Volumes were also higher in 2015 as a result of
operating at expanded rates following the completion of the ammonia
capacity expansion. UAN deliveries decreased due to greater demand
for ammonia and lower priced urea, and wet conditions during the
UAN application period.
Average sales prices per ton for the second quarter of
2015 were 6% higher for ammonia and 7% lower for UAN, as
compared with the same period last year. These two products
comprised 88% of our East Dubuque Facility’s revenues for the
second quarter of 2015 and 88% for the same period in the prior
year. The increase in ammonia prices is due primarily to an
increase in demand due to ideal conditions for applying ammonia.
The decrease in UAN prices is due primarily to lower demand for
UAN.
Gross profit was $42.7 million for the second quarter
of 2015; this compares to $33.0 million for the same period
last year. Gross profit margin for the second quarter of
2014 was 59%, compared to 45% for the same period last year.
The increases in gross profit and gross margin were primarily due
to higher sales volumes and prices for ammonia, business
interruption insurance proceeds of $4.4 million related to the 2013
fire and unrealized gains on natural gas derivatives, partially
offset by lower sales volumes and prices for UAN. Gross profit
margin, without business interruption insurance proceeds and
natural gas derivatives, was 51% for the second quarter of 2015,
compared to 45%, without natural gas derivatives, for the same
period in the prior year.
Adjusted EBITDA for the second quarter of 2015 was $46.6
million, compared to $36.8 million in the corresponding period
in 2014.
Net income was $41.2 million for the second quarter of
2015, compared to $31.6 million for the same period last
year.
Pasadena Facility
Revenues for the second quarter of 2015 were $37.8
million, compared to $39.7 million for the same period
last year. The decrease was due to lower sales volumes for ammonium
sulfate and ammonium thiosulfate, and lower sales prices for
sulfuric acid, partially offset by higher sales prices for ammonium
sulfate and ammonium thiosulfate, and higher sales volumes for
sulfuric acid.
Average sales prices per ton increased for ammonium sulfate by
35% and decreased by 12% for sulfuric acid for the second quarter
of 2015, as compared with the same period last year. These two
products comprised 91% of our Pasadena Facility’s revenues for the
second quarter of 2015 and 93% for the same period in the prior
year. Ammonium sulfate sales prices increased due to a higher
percentage of sales in the domestic market; continued demand for
ammonium sulfate as retailers move away from ammonium nitrate; and
production issues at other North American facilities. As part of
our restructuring plan, we reduced our historically low-margin
sales to Brazil. No ammonium sulfate sales were made to Brazil
during the second quarter of 2015, while 36% of ammonium sulfate
sales were to Brazil during the second quarter of 2014.
The higher sales volumes for sulfuric acid and lower sales
volumes for ammonium sulfate were the result of our restructuring
plan implemented in late 2014. In addition to reducing sales to
Brazil, the restructuring plan included reducing expected annual
production of ammonium sulfate by approximately 25%, to 500,000
tons. Sulfuric acid is a component in the production of ammonium
sulfate. With reduced production of ammonium sulfate, less sulfuric
acid is needed, which results in more sulfuric acid being available
for sale.
During the second quarter of 2015, the sulfuric acid plant
operated at reduced rates, due to a crack on the boiler exit duct.
The crack was repaired during planned downtime in July 2015, and
the sulfuric acid plant has subsequently operated at full
rates.
Gross profit was $2.0 million for the second quarter
of 2015, compared to a gross loss of $(4.7) million for
the same period last year. Gross profit margin for the second
quarter of 2015 was 5% compared to a gross loss margin of
(12%) for the same period last year. The increases in gross profit
and gross profit margins were primarily due to higher sales prices
for ammonium sulfate and ammonium thiosulfate, higher sales volumes
for sulfuric acid, lower operating costs due to the restructuring
and a decrease in the write down of inventories.
Adjusted EBITDA for the second quarter of 2015 was $3.4
million, compared to an Adjusted EBITDA loss of $(3.8)
million in the corresponding period in 2014.
The Pasadena Facility incurred an asset impairment charge of
$101.8 million in the second quarter of 2015. The impairment
reduced property, plant and equipment by $81.3 million and
eliminated intangible assets by $20.5 million. In the corresponding
period last year, the facility incurred a goodwill impairment of
$27.2 million, which eliminated all the remaining goodwill
associated with the facility.
Net loss was $(99.5) million for the second quarter
2015, compared to a net loss of $(33.5) million for the
same period last year. Net income was $2.2 million for the
second quarter of 2015, excluding the loss due to the asset
impairment. This compares to a net loss of $(6.3) million, for
the prior year period, excluding the goodwill impairment.
Corporate Unallocated
Expenses
Corporate unallocated expenses, which are included in SG&A
expenses, were $4.5 million for the second quarter of 2015,
compared to $7.8 million in the corresponding period in 2014.
The table below provides a comparison of adjusted unallocated
SG&A expenses for the second quarters of 2015 and 2014,
including certain adjustments for comparability.
For the Three Months Ended June 30, (Stated
in thousands) 2015 2014
(unaudited) Corporate and Unallocated Expenses Recorded as SG&A
Expenses $ 4.5 $ 7.8 Allocation to Wood
Pellets: Industrial 1.2 — Unallocated
SG&A Expenses - Adjusted $ 5.7 $ 7.8 Non-Cash Compensation (1.1
) (1.5 ) Transaction Costs & Cost Studies (0.4 ) (2.4 )
Allocation to Wood Pellets: Industrial (1.2 )
— Unallocated SG&A Expenses - Adjusted $
3.0 $ 3.9
Six Months Ended June 30,
2015
Consolidated revenues were $255.4 million for the six months
ended June 30, 2015, compared to $221.5 million for the prior year
period. These revenues were comprised of:
- $48.4 million from Fulghum, an increase
of $3.2 million from the prior year period;
- $23.8 million from NEWP, an increase of
$18.0 million from the prior year period;
- $4.2 million from Wood Pellets:
Industrial, an increase of $3.5 million from the prior year period,
and
- $179.0 million from Rentech Nitrogen,
an increase of $9.1 million from the prior year.
Gross profit was $72.9 million, compared to $49.3 million for
the six months ended June 30, 2015. Gross profit was comprised
of:
- $8.0 million from Fulghum, an increase
of $1.8 million from the prior year period;
- $4.8 million from NEWP, an increase of
$3.7 million from the prior year period;
- $(3.5) million from Wood Pellets:
Industrial, a decrease of $(3.6) million from the prior year
period, and
- $63.5 million from Rentech Nitrogen, an
increase of $21.5 million from the prior year period.
Consolidated Adjusted EBITDA was $58.8 million, compared to
$27.3 million in the prior year period. Consolidated Adjusted
EBITDA included the following:
- $9.5 million from Fulghum, an increase
of $2.6 million from the prior year period;
- $4.8 million from NEWP, an increase of
$3.8 million from the prior year period;
- $(13.6) million from Wood Pellets:
Industrial, a decrease of $(8.4) million from the prior year
period; and
- $66.8 million from Rentech Nitrogen, an
increase of $24.6 million from the prior year period.
Net loss attributable to Rentech common shareholders for the six
months ended June 30, 2015 was $(58.4) million, or a loss of
$(0.25) per basic share. This compares to a net loss of $(27.6)
million, or a loss of $(0.12) per basic share, for the same period
last year.
Net income for the six months ended June 30, 2015 was $43.4
million, or $0.19 per basic share, excluding the Pasadena
asset impairment. This compares to a net loss of $(0.4) million, or
$0.00 per basic share, for the same period last year, excluding the
Pasadena goodwill impairment.
Fulghum Fibres
Revenues for the six months ended June 30, 2015 were $48.4
million, compared to $45.2 million for the prior year period.
Revenues from operations in the United States were $28.3 million
during the six months ended June 30, 2015, as compared to
$28.8 million in the prior year period. Volumes and revenues
at a number of our mills in the United States were down due to wet
and protracted winter weather earlier in the year. Revenues from
operations in South America were $20.1 million during the six
months ended June 30, 2015, as compared to $16.4 million in
the prior year period. The increase in South America revenues was
primarily due to higher biomass product sales domestically and to
Asia during the six months ended June 30, 2015 as compared to the
same period in the prior year.
Mills in the United States and South America processed
7.3 million GMT of logs into wood chips and residual fuels
during the six months ended June 30, 2015, compared to 7.4 million
GMT of logs during the six months ended June 30, 2014.
Gross profit was $8.0 million for the six months ended June 30,
2015, compared to $6.2 million for the prior year period. Gross
profit margin for the six months ended June 30, 2015 was 17%,
compared to 14% for the prior year period.
Adjusted EBITDA for the six months ended June 30, 2015 was $9.5
million, up from $6.9 million for the prior year period.
Net income was $2.0 million for the six months ended June 30,
2015, compared to $0.9 million for the prior year period.
New England Wood Pellet
NEWP’s revenues were $23.8 million for the six months ended June
30, 2015 on deliveries of 120,000 of wood pellets. Revenues were
$5.8 million from May 1, 2014 through June 30, 2014 on deliveries
of 28,000 tons of wood pellets.
Gross profit was $4.8 million for the six months ended June 30,
2015, compared to $1.1 million for the prior year period. Gross
profit margin for the six months ended June 30, 2015 was 20%,
compared to 19% for the prior year period. The increases in gross
profit and gross profit margin reflect the ownership of NEWP for
the first six months of 2015 compared to only two months in 2014,
and the addition of the Allegheny mill in 2015.
Adjusted EBITDA was $4.8 million for the six months ended June
30, 2015, compared to $1.0 million for the prior year period.
Net income was $2.7 million for the six months ended June 30,
2015, compared to $0.7 million for the prior year period.
Wood Pellets: Industrial
Revenues were $4.2 million for the Atikokan Facility for the six
months ended June 30, 2015 earned by delivering 22,700 metric tons
to OPG, 20,800 of which were produced at the Atikokan Facility.
This compares to $0.7 million earned by delivering 3,300 metric
tons of pellets from a third party pellet producer for the prior
year period.
Gross loss was $(3.5) million for the six months ended June 30,
2015, compared to a gross profit $0.1 million for the prior year
period. Gross loss margin was 82% for the six months ended June 30,
2015, compared to gross profit margin of 17% for the prior year
period.
During the first six months of 2015, $2.6 million of settlement
costs related to amending the Drax contract in August was recorded
in SG&A expenses.
Adjusted EBITDA loss for the six months ended June 30, 2015 was
$(13.6) million, compared to an EBITDA loss of $(5.2) for the prior
year period.
Net loss was $(15.4) million for the six months ended June 30,
2015, compared to a net loss of $(5.0) million for the prior year
period.
Nitrogen Products
Manufacturing
Revenues for the six months ended June 30,
2015 were $179.0 million, compared to $169.9
million for the prior year period. Gross profit for the six
months ended June 30, 2015 was $63.5 million, compared
to $42.0 million in the prior year period. Adjusted EBITDA for
the six months ended June 30, 2015 was $66.8 million,
compared to $42.2 million for the prior year period.
During the six months ended June 30, 2015, Rentech Nitrogen
recorded an asset impairment charge of $101.8 million for the
Pasadena Facility, due to our conclusion that our process to
evaluate strategic alternatives and the announced agreement with
CVR Partners made it more likely than not that the facility would
be sold or otherwise disposed of before the end of its previously
estimated useful life. This conclusion requires that the estimate
of future cash flows used to calculate the fair value of the
facility must include estimated sale proceeds and interim cash
flows leading up to the sale.
Net loss for the six months ended June 30,
2015 was $(57.3) million. This compares to a net loss
of $(5.8) million for the prior year period. Net income
was $44.5 million for the six months ended June 30, 2015,
excluding the Pasadena goodwill impairment. This compares
to $21.4 million for the prior year period, excluding the
Pasadena goodwill impairment.
East Dubuque Facility
Revenues for the six months ended June 30, 2015 were $108.8
million, compared to $102.4 million for the same period last year.
The increase was primarily due to higher sales volumes and prices
for ammonia, partially offset by lower sales volumes and prices for
UAN, and lower natural gas sales.
Average sales prices per ton for the six months ended June 30,
2015 were 3% higher for ammonia and 5% lower for UAN, compared with
the same period last year. These two products comprised 85% of our
East Dubuque Facility’s revenues for the six months ended June 30,
2015 and 80% for the same period last year.
Gross profit was $60.1 million for the six months ended June 30,
2015, compared to $45.4 million for the same period last year.
Gross profit margin was 55% for the six months ended June 30, 2015,
compared to 44% for the prior year period. The increases in gross
profit and gross margin were primarily due to higher sales volumes
and prices for ammonia, business interruption insurance proceeds of
$4.4 million and unrealized gains on natural gas derivatives,
partially offset by lower sales volumes and prices for UAN. Gross
profit margin, without business interruption insurance proceeds and
natural gas derivatives, was 47% for the six months ended June 30,
2015, compared to 45%, without natural gas derivatives, for the
same period in the prior year.
Adjusted EBITDA for the six months ended June 30, 2015 was $65.9
million, compared to $50.2 million for the prior year period.
Net income was $57.2 million for the six months ended June 30,
2015, compared to $42.8 million for the prior year period.
Pasadena Facility
Revenues for the six months ended June 30, 2015 were $70.2
million, compared to $67.5 million for the same period last year.
The increase was due to higher sales prices for ammonium sulfate
and ammonium thiosulfate, and higher sales volumes for sulfuric
acid, partially offset by lower sales volumes for ammonium sulfate
and ammonium thiosulfate, and lower sales prices for sulfuric
acid.
Average sales prices per ton increased by 32% for ammonium
sulfate and decreased by 5% for sulfuric acid for the six months
ended June 30, 2015, compared to the same period last year. These
two products comprised 90% of revenues for the six months June 30,
2015 and 89% for the same period last year.
Gross profit was $3.4 million for the six months ended June 30,
2015, compared to gross loss of $(3.4) million for the same period
last year. Gross margin for the six months ended June 30, 2015 was
5%, compared to gross loss margin of (5%) for the same period last
year. The increases in gross profit and gross profit margins were
primarily due to higher sales prices for ammonium sulfate and
ammonium thiosulfate, higher sales volumes for sulfuric acid, a
decrease in operating costs due to the restructuring and a decrease
in the write down of inventories.
Adjusted EBITDA was $5.4 million for the six months ended June
30, 2015, compared to an Adjusted EBITDA loss of $(3.5) million for
the same period last year.
The Pasadena Facility incurred an asset impairment charge of
$101.8 million for the six months ended June 30, 2015. The
impairment reduced property, plant and equipment by $81.3 million
and eliminated intangible assets by $20.5 million. In the
corresponding period last year, the facility incurred a goodwill
impairment of $27.2 million, which eliminated all the remaining
goodwill associated with the facility.
Net loss was $(99.4) million for the six months ended June 30,
2015, compared to a net loss of $(34.3) million in 2014. Net income
was $2.4 million for the six months ended June 30, 2015,
excluding the loss due to the asset impairment. This compares
to a net loss of $(7.1) million, for the six months ended June
30, 2014, excluding the goodwill impairment.
Corporate Unallocated
Expenses
Corporate unallocated expenses included in SG&A expenses
were $8.4 million for the six months ended June 30, 2015, compared
to $14.6 million for the prior year period.
The table below provides a comparison of adjusted unallocated
SG&A expenses for the six months ended June 30, 2015 and 2014,
including certain adjustments for comparability.
For the Six Months Ended June 30, (Stated
in thousands) 2015 2014
(unaudited) Corporate and Unallocated Expenses Recorded as SG&A
Expenses $ 8.4 $ 14.6 Allocation to
Wood Pellets: Industrial 2.4 —
Unallocated SG&A Expenses - Adjusted $ 10.8 $ 14.6 Non-Cash
Compensation (2.0 ) (2.9 ) Transaction Costs & Cost Studies
(0.8 ) (3.3 ) Allocation to Wood Pellets: Industrial
(2.4 ) — Unallocated SG&A Expenses - Adjusted $
5.6 $ 8.4
Conference Call with
Management
The Company will hold a conference call today, August 11, 2015,
at 8:30 a.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 888-517-2458 or 847-413-3538 and entering the
pass code 5099594#. 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 11:00 a.m. PDT on August
11 through 11:59 a.m. PDT on August 18. The replay teleconference
will be available by dialing 888-843-7419 or 630-652-3042 and
entering the audience passcode 5099594#.
Rentech, Inc.
Consolidated Statements of
Operations
(Amounts in Thousands, Except per Share
Data)
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2015 2014 2015 2014
(Unaudited) (Unaudited)
Revenues $ 149,778 $ 139,200 $
255,388 $ 221,519
Cost of sales 101,237
107,761 182,538 172,185
Gross profit
48,541 31,439 72,850 49,334
Operating
expenses Selling, general and administrative expense 17,562
17,642 32,066 33,214 Depreciation and amortization 1,613 1,394
3,487 1,070 Pasadena asset impairment 101,772 - 101,772 - Pasadena
goodwill impairment — 27,202 — 27,202 Other (income) expense, net
434 244 431 (104 ) Total operating
expenses 121,381 46,482 137,756 61,382
Operating loss (72,840 ) (15,043 )
(64,906 ) (12,048 )
Other expense, net Interest
expense (8,170 ) (5,491 ) (14,087 ) (11,336 ) Loss on debt
extinguishment — (850 ) — (850 ) Loss on fair value adjustment to
earn-out consideration 396 (327 ) 396 (327 ) Other income, net
3,115 68 3,000 44 Total other expenses,
net (4,659 ) (6,600 ) (10,691 ) (12,469
)
Loss from continuing operations before income taxes
and equity in loss of investee
(77,499 ) (21,643 ) (75,597 ) (24,517 ) Income tax (benefit)
expense 574 (215 ) 2,268 835
Loss
from continuing operations before equity in
loss of investee
(78,073 ) (21,428 ) (77,865 ) (25,352 ) Equity in loss of investee
406 38 421 237
Loss from continuing
operations (78,479 ) (21,466 ) (78,286 ) (25,589 ) Loss from
discontinued operations, net of tax (232 ) (1,567 )
(379 ) (3,038 )
Net loss (78,711 ) (23,033 )
(78,665 ) (28,627 ) Net loss attributable to noncontrolling
interests 26,617 3,588 22,942 2,194 Preferred stock dividends
(1,320 ) (1,200 ) (2,640 ) (1,200 )
Net loss attributable to Rentech
common shareholders
$ (53,414 ) $ (20,645 ) $ (58,363 ) $ (27,633 ) Net loss per common
share allocated to Rentech
common shareholders:
Basic: Continuing operations $ (0.23 ) $ (0.08 ) $ (0.25 ) $ (0.11
) Discontinued operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.01 )
Net loss $ (0.23 ) $ (0.09 ) $ (0.25 ) $ (0.12 ) Diluted:
Continuing operations $ (0.23 ) $ (0.08 ) $ (0.25 ) $ (0.11 )
Discontinued operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.01 ) Net
loss $ (0.23 ) $ (0.09 ) $ (0.25 ) $ (0.12 ) Weighted-average
shares used to compute net loss
per common share:
Basic 229,648 227,792 229,507 227,661
Diluted 229,648 227,792 229,507 227,661
Rentech, Inc.
Statements of Operation by Business
Segment
(Stated in Thousands)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2015 2014 2015 2014 (in
thousands) Revenues East Dubuque $ 72,060 $ 73,943 $ 108,812 $
102,434 Pasadena 37,793 39,666 70,215 67,455 Fulghum Fibres 25,723
19,146 48,377 45,185 Wood Pellets: Industrial 2,544 667 4,208 667
Wood Pellets: NEWP 11,658 5,778 23,776
5,778 Total revenues $ 149,778 $ 139,200 $ 255,388 $ 221,519 Gross
profit (loss) East Dubuque $ 42,680 $ 32,952 $ 60,121 $ 45,350
Pasadena 2,046 (4,733 ) 3,388 (3,367 ) Fulghum Fibres 4,278 2,019
7,985 6,150 Wood Pellets: Industrial (3,058 ) 114 (3,462 ) 114 Wood
Pellets: NEWP 2,595 1,087 4,818 1,087
Total gross profit $ 48,541 $ 31,439 $ 72,850 $ 49,334 Selling,
general and administrative expenses East Dubuque $ 1,000 $ 1,088 $
2,346 $ 2,221 Pasadena 844 1,247 1,640 3,076 Fulghum Fibres 947
1,651 2,629 3,052 Wood Pellets: Industrial 7,205 3,340 11,124 5,408
Wood Pellets: NEWP 718 391 1,422 391
Total segment selling, general and administrative expenses $ 10,714
$ 7,717 $ 19,161 $ 14,148 Depreciation and amortization East
Dubuque $ 65 $ 38 $ 134 $ 75 Pasadena 359 337 719 633 Fulghum
Fibres 699 950 1,680 141 Wood Pellets: Industrial 39 35 82 54 Wood
Pellets: NEWP 312 (98 ) 590 (98 ) Total
segment depreciation and amortization recorded in
operating expenses
1,474 1,262 3,205 805 Net income (loss)
East Dubuque $ 41,197 $ 31,578 $ 57,219 $ 42,787 Pasadena (99,526 )
(33,546 ) (99,363 ) (34,332 ) Fulghum Fibres 3,057 (951 ) 1,965 902
Wood Pellets: Industrial (10,699 ) (3,201 ) (15,378 ) (5,044 ) Wood
Pellets: NEWP 1,538 742 2,680 742 Total
segment net income (loss) $ (64,433 ) $ (5,378 ) $ (52,877 ) $
5,055 Reconciliation of segment net income (loss) to consolidated
net loss: Segment net income (loss) $ (64,433 ) $ (5,378 ) $
(52,877 ) $ 5,055 RNP - partnership and unallocated expenses
recorded as
selling, general and administrative
expenses
(2,322 ) (2,169 ) (4,516 ) (4,485 ) RNP - partnership and
unallocated expenses recorded
as other expense
(31 ) — (60 ) — RNP - unallocated interest expense (5,529 ) (4,787
) (10,538 ) (9,769 ) Corporate and unallocated expenses recorded as
selling,
general and administrative expenses
(4,527 ) (7,756 ) (8,390 ) (14,581 ) Corporate and unallocated
depreciation and
amortization expense
(139 ) (132 ) (282 ) (265 ) Corporate and unallocated income
(expenses) recorded as
other income (expense)
(3 ) (1,191 ) 1 (1,183 ) Corporate and unallocated interest expense
(1,494 ) (20 ) (1,588 ) (324 ) Corporate income tax expense (1 )
(33 ) (36 ) (37 ) Loss from discontinued operations, net of tax
(232 ) (1,567 ) (379 ) (3,038 )
Consolidated net loss $ (78,711 ) $ (23,033 ) $ (78,665 ) $ (28,627
)
Rentech, Inc.
Selected Balance Sheet Data
(Stated in Thousands)
As of
June 30,
2015
As of
December 31,
2014
(in thousands) Cash $ 63,107 $ 44,195 Working capital 55,142 3,180
Construction in progress 17,122 179,423 Total assets 771,945
828,150 Debt 533,765 468,856 Total Rentech stockholders' equity
57,892 120,733 Cash - RNP $ 38,501 $ 28,028 Cash excluding RNP
24,606 16,167 Total Cash $ 63,107 $ 44,195 Debt - RNP
$ 344,000 $ 335,000 Debt excluding RNP 189,765
133,856 Total Debt $ 533,765 $ 468,856
Disclosure Regarding Non-GAAP Financial
Measures
Adjusted EBITDA is defined as net income (loss) plus net
interest expense and other financing costs, income tax (benefit)
expense, depreciation and amortization and unusual items, like
impairment and debt extinguishment charges and fair value
adjustments to earn-out consideration. Adjusted EBITDA is used as a
supplemental financial measure by management and by external users
of our consolidated 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.
Net income (loss) excluding loss on impairments are included to
provide management and investors with net income results for
Rentech that are more easily compared to the prior year period.
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 table below reconciles Rentech’s consolidated Adjusted
EBITDA from net loss for the three and six months ended June 30,
2015 and 2014.
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2015 2014 2015 2014 (in
thousands) Net loss $ (78,711 ) $ (23,033 ) $ (78,665 ) $ (28,627 )
Add items: Net interest expense 8,161 5,476 14,066 11,307 Pasadena
asset impairment 101,772 — 101,772 — Pasadena goodwill impairment —
27,202 — 27,202 Loss on debt extinguishment — 850 — 850 (Gain) loss
on fair value adjustment to earn-out consideration (396 ) 327 (396
) 327 Income tax (benefit) expense 574 (215 ) 2,268 835
Depreciation and amortization 12,477 10,708 22,300 15,149 Other
(2,699 ) (15 ) (2,557 ) 222
Consolidated Adjusted EBITDA $ 41,178 $ 21,300 $ 58,788 $ 27,265
The table below reconciles Rentech Nitrogen’s Adjusted EBITDA,
along with the Adjusted EBITDA for each of its facilities, to their
respective net income (loss) for the second quarter of 2015.
For the Three Months Ended June 30, 2015
East Dubuque Facility
PasadenaFacility
PartnershipLevel
Consolidated (in thousands, except per unit data) Net
income (loss) $ 41,197 $ (99,526 ) $ (7,882 ) $ (66,211 ) Add: Net
interest expense 17 — 5,529 5,546 Pasadena asset impairment —
101,772 — 101,772 Income tax expense (14 ) 23 — 9 Depreciation and
amortization 5,384 2,570 — 7,954 Other (16 ) (1,425 )
30 (1,411 ) Adjusted EBITDA $ 46,568 $ 3,414 $ (2,323
) $ 47,659
The table below reconciles Rentech Nitrogen’s consolidated
Adjusted EBITDA, along with the Adjusted EBITDA for each of its
facilities, to their respective net income (loss) for the six
months ended June 30, 2015.
For the Six Months Ended June 30, 2015
East Dubuque Facility
PasadenaFacility
PartnershipLevel
Consolidated (in thousands, except per unit data) Net
income (loss) $ 57,219 $ (99,363 ) $ (15,114 ) $ (57,258 ) Add: Net
interest expense 36 — 10,538 10,574 Pasadena asset impairment —
101,772 — 101,772 Income tax expense — 47 — 47 Depreciation and
amortization 8,692 4,405 — 13,097 Other (42 ) (1,425
) 59 (1,408 ) Adjusted EBITDA $ 65,905 $ 5,436 $
(4,517 ) $ 66,824
The table below reconciles Rentech Nitrogen’s consolidated
Adjusted EBITDA, along with the Adjusted EBITDA for each of its
facilities, to their respective net loss for the second quarter of
2014.
For the Three Months Ended June 30, 2014
East DubuqueFacility
PasadenaFacility
PartnershipLevel
Consolidated (in thousands, except per unit data) Net
income (loss) $ 31,578 $ (33,546 ) $ (6,956 ) $ (8,924 ) Add: Net
interest expense 22 — 4,787 4,809 Pasadena goodwill impairment —
27,202 — 27,202 Income tax expense (2 ) 27 — 25 Depreciation and
amortization 5,155 2,474 — 7,629 Other — — —
— Adjusted EBITDA $ 36,753 $ (3,843 ) $ (2,169 ) $ 30,741
The table below reconciles Rentech Nitrogen’s consolidated
Adjusted EBITDA, along with the Adjusted EBITDA for each of its
facilities, to their respective net income (loss) for the six
months ended June 30, 2014.
For the Six Months Ended June 30, 2014
East DubuqueFacility
PasadenaFacility
PartnershipLevel
Consolidated (in thousands, except per unit data) Net
income (loss) $ 42,787 $ (34,332 ) $ (14,254 ) $ (5,799 ) Add: Net
interest expense 44 — 9,769 9,813 Pasadena goodwill impairment —
27,202 — 27,202 Income tax expense 1 54 — 55 Depreciation and
amortization 7,397 3,536 — 10,933 Other — — —
— Adjusted EBITDA $ 50,229 $ (3,540 ) $ (4,485 ) $ 42,204
The table below reconciles Fulghum’s Adjusted EBITDA to net
income (loss) for the three and six months ended June 30, 2015 and
2014.
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2015 2014 2015 2014 (in
thousands) Fulghum net income (loss) $ 3,057 $ (951 ) $ 1,965 $ 902
Add Fulghum items: Net interest expense 579 579 1,117 1,116 Income
tax (benefit) expense 523 (282 ) 2,125 730 Depreciation and
amortization 2,838 2,732 5,839 3,717 Other (1,544 )
109 (1,534 ) 445 Fulghum's Adjusted EBITDA $ 5,453 $
2,187 $ 9,512 $ 6,910
The table below reconciles NEWP’s Adjusted EBITDA to net income
for the three and six months ended June 30, 2015 and 2014.
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2015 2014 2015 2014 (in
thousands) NEWP net income $ 1,538 $ 742 $ 2,680 $ 742 Add NEWP
items: Net interest expense 149 80 288 80 Income tax expense 40 9
57 9 Depreciation and amortization 941 180 1,997 180 Other
(161 ) (37 ) (218 ) (37 ) NEWP's Adjusted
EBITDA $ 2,507 $ 974 $ 4,804 $ 974
The table below reconciles Wood Pellets: Industrial’s Adjusted
EBITDA to net loss for the three and six months ended June 30, 2015
and 2014.
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2015 2014 2015 2014 (in
thousands) Wood Pellets: Industrial net loss $ (10,699 ) $ (3,201 )
$ (15,378 ) $ (5,044 ) Add Wood Pellets: Industrial items: Net
interest expense 392 (33 ) 498 (22 ) Income tax expense 4 — 4 4
Depreciation and amortization 639 35 1,085 54 Other 18
(65 ) 209 (181 ) Wood Pellets: Industrial
Adjusted EBITDA $ (9,646 ) $ (3,264 ) $ (13,582 ) $ (5,189 )
The table below reconciles net income (loss) attributable to
Rentech excluding impairments for the second quarters of 2015 and
2014.
For the Three Months Ended June 30, (Stated
in thousands) 2015 2014 (unaudited)
Net loss attributable to common shareholders $ (53,414 ) $
(20,645 ) Pasadena asset impairment 101,772 — Pasadena
goodwill impairment — 27,202 Net income (loss) excluding
impairments $ 48,358 $ 6,557 Net loss per share
attributable to common shareholders $ (0.23 ) $ (0.09 ) Pasadena
asset impairment 0.44 — Pasadena goodwill impairment — 0.12
Net income per share attributable to common shareholders excluding
impairments $ 0.21 $ 0.03 Weighted-average common
shares outstanding 229,648 227,792
The table below reconciles net income (loss) attributable to
Rentech excluding impairments for the six months ended June 30,
2015 and 2014.
For the Six Months Ended June 30, (Stated
in thousands) 2015 2014 (unaudited)
Net loss attributable to common shareholders $ (58,363 ) $
(27,633 ) Pasadena asset impairment 101,772 — Pasadena
goodwill impairment — 27,202 Net income (loss) excluding
impairments $ 43,409 $ (431 ) Net loss per share
attributable to common shareholders $ (0.25 ) $ (0.12 ) Pasadena
asset impairment 0.44 — Pasadena goodwill impairment — 0.12
Net income per share attributable to common shareholders excluding
impairments $ 0.19 $ (0.00 ) Weighted-average common
shares outstanding 229,507 227,661
The table below reconciles net income (loss) attributable to
Rentech Nitrogen excluding impairments for the second quarters of
2015 and 2014.
For the Three Months Ended June 30, (Stated in
Thousands, Except per Unit Data) 2015
2014 (unaudited) Net loss attributable to common unit
holders $ (66,211 ) $ (8,924 ) Pasadena asset
impairment 101,772 — Pasadena goodwill impairment — 27,202
Net income attributable to common unit
holdersexcluding the Pasadena asset and goodwill impairment
$ 35,561 $ 18,278
The table below reconciles net income (loss) attributable to
Rentech Nitrogen excluding impairments for the six months ended
June 30, 2015 and 2014.
For the Six Months Ended June 30, (Stated in
Thousands) 2015 2014 (unaudited)
Net loss attributable to common unit holders $ (57,258 ) $
(5,799 ) Pasadena asset impairment 101,772 — Pasadena
goodwill impairment — 27,202
Net income attributable to common unit
holdersexcluding the Pasadena asset and goodwill impairments
$ 44,514 $ 21,403
The table below reconciles net income attributable to the
Pasadena Facility excluding impairments for the second quarters of
2015 and 2014.
For the Three Months Ended June 30, (Stated in
thousands) 2015 2014 (unaudited)
Net loss for Pasadena $ (99,526 ) $ (33,546 )
Pasadena asset impairment 101,772 — Pasadena goodwill impairment —
27,202
Net income (loss) attributable to Pasadena
excludingthe Pasadena asset and goodwill impairments
$ 2,246 $ (6,344 )
The table below reconciles net income (loss) attributable to the
Pasadena Facility excluding impairments for the six months ended
June 30, 2015 and 2014.
For the Six Months Ended June 30, (Stated in
thousands) 2015 2014 (unaudited)
Net loss for Pasadena $ (99,363 ) $ (34,332 )
Pasadena asset impairment 101,772 — Pasadena goodwill impairment —
27,202
Net income (loss) attributable to Pasadena
excludingthe Pasadena asset and goodwill impairments
$ 2,409 $ (7,130 )
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: the timing for bringing our Canadian wood
pellet plants to full capacity and their estimated costs, Adjusted
EBITDA for Fulghum and Adjusted EBITDA for NEWP for 2015, and our
liquidity outlook. 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150811005415/en/
Rentech, Inc.Julie Dawoodjee Cafarella, 310-571-9800Vice
president of Investor Relations and Communicationsir@rentk.com
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