UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 11, 2015
RENTECH, INC.
(Exact
name of registrant as specified in its charter)
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Colorado |
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1-15795 |
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84-0957421 |
(State or other jurisdiction
of incorporation) |
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(Commission
File No.) |
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(IRS Employer
Identification No.) |
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10877 Wilshire Boulevard, 10th Floor
Los Angeles, California |
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90024 |
(Address of principal executive offices) |
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(Zip Code) |
(Registrants telephone number, including area code): (310) 571-9800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13a-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Conditions.
On May 11, 2015, Rentech, Inc. issued a press release announcing its financial results for the three months ended March 31, 2015. A
copy of the press release is attached as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
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Exhibit No. |
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Description of the Exhibit |
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Exhibit 99.1 |
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Press Release issued by Rentech, Inc. dated May 11, 2015 regarding financial results. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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RENTECH, INC. |
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Date: May 11, 2015 |
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By: |
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/s/ Dan J. Cohrs |
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Dan J. Cohrs |
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Executive Vice President and Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Rentech Announces Results for First Quarter 2015
Canadian Plants Begin Producing Pellets
LOS ANGELES, CA (May 11, 2015) Rentech, Inc. (NASDAQ: RTK) today announced financial and operating results for the three months ended March 31,
2015.
Keith Forman, President and CEO of Rentech, stated, Results for the first quarter were generally in line with our expectations for improved
profits. At Rentech Nitrogen, margins improved in the first quarter from last year, due to robust demand for ammonia and ammonium sulfate, higher ammonium sulfate prices and lower natural gas prices.
At Fulghum, our cost controls are working and EBITDA margins have improved. We are also seeing strong demand for NEWPs pellet products in the U.S.
Northeast, Mr. Forman continued.
Our two Canadian wood pellet facilities are in commissioning. The Atikokan facility is supplying all of
the required volume to OPG from its own production, and the pellets we are producing exceed the contracts requirements for quality and energy content. Commissioning of the Wawa facility is going better than forecasted. We have completed
integrated production runs, and we have run all 12 pellet mills at the plant. We loaded our first rail cars with pellets at Wawa, and they are ready to be transported to the port, Mr. Forman added.
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
recently purchased mill from Allegheny Pellet Corporation (Allegheny); and Industrial Wood Pellets, which includes our Canadian pellet plants, business development for industrial pellets, and 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 Nitrogens operating segments are the East Dubuque, Illinois facility and the Pasadena, Texas facility.
Rentech Nitrogens results for the first quarter of 2015 benefitted from improved prices for ammonium sulfate and lower natural gas prices. Sales volumes
for ammonia were significantly higher than in the first quarter last year. At Fulghum, lower South American product sales and reduced volumes at our U.S. and South American chipping facilities negatively affected results in the first quarter
compared to the same quarter last year. Our two Canadian wood pellet facilities are in commissioning. Since the beginning of February, we have been satisfying all of our required deliveries to Ontario Power Generation (OPG) with pellets produced by
our Atikokan facility. NEWP had a seasonally strong quarter due to good demand for wood pellets in the U.S. Northeast. During the first quarter, we paid $5 million in earn-out consideration to the previous owners of NEWP based on NEWPs 2014
performance. We acquired the assets of Allegheny in January. In April, we borrowed an additional $7.5 million under the Tranche B term loan from GSO Capital to fund the Canadian operations.
NEWPs and Alleghenys operations are included in our operating results from May 1, 2014 and January 23, 2015, respectively, the closing
dates of the acquisitions. Prior period revenues and cost of sales for Fulghums South American operations have been revised. Please refer to Note 2 in the Form 10-Q for the period ended March 31, 2015 for further explanation.
Three months ended March 31, 2015
Consolidated revenues for the first quarter of 2015 were $105.6 million, compared to $82.3 million in the prior year period. These revenues
were comprised of:
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$22.7 million from Fulghum, a decrease of $3.4 million from the prior year period; |
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$12.1 million from NEWP; |
Page 1 of 10
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$1.7 million from Wood Pellets: Industrial; and |
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$69.2 million from Rentech Nitrogen, an increase of $12.9 million from the prior year period. |
Gross profit for the first quarter of 2015 was $24.3 million, compared to $17.9 million in the prior year period. Gross profit was comprised
of:
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$3.7 million from Fulghum, which was a decrease of $0.4 from the prior year period; |
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$2.2 million from NEWP; |
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($0.4) million from Wood Pellets: Industrial; and |
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$18.8 million from Rentech Nitrogen, an increase of $5.0 million from the prior year period. |
Consolidated
Adjusted EBITDA for the first quarter of 2015 was $17.6 million, an improvement of $11.6 million compared to the prior year period. Consolidated Adjusted EBITDA included the following:
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$4.0 million from Fulghum, a decrease of $0.5 million from the prior year period; |
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$2.3 million from NEWP; |
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($3.9) million from Wood Pellets: Industrial, an increase in losses of $2.2 million from the prior year period; and |
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$19.2 million from Rentech Nitrogen, an increase of $7.7 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 first quarter of 2015 was ($4.9) million, or ($0.02) per basic share, compared to a net loss of ($7.0) million, or a loss of ($0.03) per basic share, for the same period last year.
Fulghum Fibres
Revenues were $22.7
million for the first quarter of 2015, compared to $26.0 million for the same period last year. Revenues from operations in the U.S. were $13.6 million for the first quarter of 2015, as compared to $14.2 million in the prior year
period. Volumes and revenues at a number of our U.S. mills were down due to wet and protracted winter weather. Revenues from operations in South America were $9.1 million for the first quarter of 2015, as compared to $11.8 million in the prior
year period. The decrease in South American revenues was primarily due to lower biomass product sales domestically and to Asia in the first quarter of 2015 as compared to the first quarter of 2014. In addition, revenues from our South American
processing mills were lower because of reduced volumes during the start-up of the new chipping line at our PAC mill, fibre transportation issues from our customer to our Valdivia mill, and discontinued services at the Los Sauces mill.
Fulghums mills in the U.S. and South America processed a total of 3.7 million green metric tons, or GMT, of logs into wood chips and
residual fuels for the first quarter of 2015, compared to 3.8 million GMT in the first quarter last year.
Gross profit was $3.7 million for the
first quarter of 2015, compared to $4.1 million for the same period last year. Gross profit margin for the first quarter of 2015 was 16%, which was essentially flat compared to the prior year period. The decrease in gross profit was primarily due to
higher depreciation and amortization and to lower volumes processed and sold during the first quarter of 2015.
Adjusted EBITDA for the first quarter of
2015 was $4.0 million. This compares to Adjusted EBITDA of $4.5 million for the same period in 2014.
Net loss was ($1.1) million for the
first quarter of 2015, compared to net income of $1.7 million for the same period last year.
New England Wood Pellet
Revenues were $12.1 million, including $1.2 million from the Allegheny mill, for the first quarter of 2015 on deliveries of 63,000 tons of wood pellets. Gross
profit was $2.2 million and gross profit margin was 18%. Adjusted EBITDA was $2.3 million, and net income was $1.1 million.
Wood Pellets: Industrial
Revenues were $1.7 million for the Atikokan mill in the first quarter on deliveries of 9,100 metric tons of wood pellets to OPG. Gross
loss was ($0.4) million and gross loss margin was (24%) due to operating at partial capacity at the Atikokan mill during commissioning.
Page 2 of 10
Adjusted EBITDA loss, including operating losses at the Wawa facility, business development for industrial wood
pellets, senior management of the fibre business and corporate allocations, was ($3.9) million for the first quarter of 2015, compared to an Adjusted EBITDA loss of ($1.7) million for the same period in 2014. Net loss for the first quarter of
2015 was ($4.7) million, compared to a net loss of ($1.6) million for the same period in 2014.
Nitrogen Product Manufacturing
Revenues for the first quarter of 2015 were $69.2 million, compared to $56.3 million in the first quarter of 2014. Gross profit for the first
quarter of 2015 was $18.8 million, compared to $13.8 million for the same period last year. Adjusted EBITDA for the first quarter of 2015 was $19.2 million, compared to $11.5 million in the corresponding 2014
period. Net income for the first quarter of 2015 was $9.0 million, compared to net income of $3.1 million for the prior year period.
East Dubuque Facility
Revenues for the first
quarter of 2015 were $36.8 million, compared to $28.5 million for the same period last year. The increase was due to higher sales volumes for ammonia, partially offset by lower sales prices for ammonia and urea.
Ammonia deliveries increased due to strong demand from agricultural and industrial customers. Volumes were low in the first quarter of 2014 because production
was interrupted by a planned turnaround and a fire in the fourth quarter of 2013, and production was purposely reduced in order to sell natural gas at high prices in the first quarter of 2014.
Average sales prices per ton for the first quarter of 2015 were 4% lower for ammonia and 1% higher for UAN, as compared with the same period last year.
These two products comprised 78% of the East Dubuque facilitys revenues for the first quarter of 2015 and 58% for the same period last year.
Gross
profit was $17.4 million for the first quarter of 2015; this compares to a gross profit of $12.4 million for the same period last year. Gross profit margin for the first quarter of 2015 was 47%, compared to 44% for the prior
year period. Gross profit and margin benefited from higher sales volumes for ammonia and a $2.6 million unrealized gain on natural gas derivatives, partially offset by lower sales prices for ammonia and urea, lower natural gas sales, and increased
labor costs and depreciation expense.
Adjusted EBITDA for the first quarter of 2015 was $19.3 million, compared to $13.5 million in the
corresponding period in 2014.
Net income was $16.0 million for the first quarter of 2015, compared to $11.2 million for the same period
last year.
Pasadena Facility
Revenues for the first
quarter of 2015 were $32.4 million, compared to $27.8 million for the same period last year. The increase was due to higher sales prices for ammonium sulfate and sulfuric acid, and higher sales volumes for sulfuric acid,
partially offset by lower sales volumes for ammonium sulfate and lower sales prices for ammonium thiosulfate.
Average sales prices per ton increased for
ammonium sulfate by 28% and by 2% for sulfuric acid for the first quarter of 2015, as compared with the same period last year. Factors contributing to higher sales prices for ammonium sulfate include a larger proportion of higher-priced domestic
sales and more favorable supply and demand conditions. Ammonium sulfate and sulfuric acid comprised 88% of the Pasadena facilitys revenues for the first quarter of 2015 and 83% for the same period last year.
Gross profit was $1.3 million for the first quarter of 2015, compared to $1.4 million for the same period last year. Gross profit margin for
the first quarter of 2015 was 4%, compared to 5% for the same period last year.
Adjusted EBITDA for the first quarter of 2015 was $2.0 million,
compared to $0.3 million in the corresponding period in 2014.
Net income was $0.2 million for the first quarter of 2015, compared to a net
loss of $0.8 million for the same period last year.
Page 3 of 10
Corporate Unallocated Expenses
Corporate unallocated expenses, recorded as selling, general and administrative (SG&A) expenses, were $3.9 million for the first quarter of 2015, compared
to $6.8 million in the corresponding period in 2014.
The table below provides a comparison of adjusted unallocated SG&A expenses for the first
quarters of 2015 and 2014, including certain adjustments for comparability.
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For the Three Months Ended March 31, |
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($ in millions) |
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2015 |
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2014 |
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Corporate and Unallocated Expenses Recorded as SG&A Expenses |
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$ |
3.9 |
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$ |
6.8 |
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Allocation to Wood Pellets: Industrial |
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1.2 |
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Unallocated SG&A Expenses - Adjusted |
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$ |
5.1 |
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$ |
6.8 |
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Non-Cash Compensation |
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(0.8 |
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(1.5 |
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Transaction Costs & Cost Studies 1 |
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(0.4 |
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(0.9 |
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Allocation to Wood Pellets: Industrial |
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(1.2 |
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Unallocated Cash SG&A Expenses - Adjusted |
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$ |
2.7 |
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$ |
4.4 |
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1 |
Includes costs associated with evaluating and completing acquisitions, conducting cost studies and non-capitalizable financing costs. |
Conference Call with Management
The Company will
hold a conference call today, May 11, 2015, at 8:30 a.m. PDT, during which Rentechs senior management will review the Companys 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 11:00 a.m. PDT on May 11 through 11:59 a.m. PDT on May 18. The replay teleconference will be available by
dialing 888-843-7419 or 630-652-3042 and entering the audience passcode 7750504#.
Page 4 of 10
Rentech, Inc.
Consolidated Statements of Operations
(Amounts in Thousands, Except per Share Data)
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For the Three Months |
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Ended March 31, |
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2015 |
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2014 |
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(unaudited) |
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Revenues |
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$ |
105,610 |
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$ |
82,319 |
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Cost of Sales |
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81,301 |
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64,424 |
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Gross Profit |
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24,309 |
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17,895 |
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Operating Expenses |
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Selling, general and administrative expenses |
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14,504 |
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15,572 |
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Depreciation and amortization |
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1,874 |
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(324 |
) |
Other income |
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(3 |
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(348 |
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Total Operating Expenses |
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16,375 |
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14,900 |
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Operating Income |
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7,934 |
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2,995 |
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Other Expense, Net |
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Interest expense |
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(5,917 |
) |
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(5,845 |
) |
Other expense, net |
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(115 |
) |
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(24 |
) |
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Total Other Expense, Net |
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(6,032 |
) |
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(5,869 |
) |
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Income (Loss) from Continuing Operations Before Income Taxes and Equity in Loss of Investee |
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1,902 |
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(2,874 |
) |
Income tax expense |
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1,694 |
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1,050 |
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Income (Loss) from Continuing Operations Before Equity in Loss of Investee |
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208 |
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(3,924 |
) |
Equity in Loss of Investee |
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15 |
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199 |
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Income (Loss) from Continuing Operations |
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193 |
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(4,123 |
) |
Loss from discontinued operations, net of tax |
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(147 |
) |
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(1,471 |
) |
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Net Income (Loss) |
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46 |
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(5,594 |
) |
Net income attributable to noncontrolling interests |
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(3,675 |
) |
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(1,394 |
) |
Preferred Stock Dividends |
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(1,320 |
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Net Loss Attributable to Rentech Common Shareholders |
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$ |
(4,949 |
) |
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$ |
(6,988 |
) |
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Net Loss per Common Share Allocated to Rentech Common Shareholders: |
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Basic: |
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Continuing operations |
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$ |
(0.02 |
) |
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$ |
(0.02 |
) |
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Discontinued operations |
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$ |
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$ |
(0.01 |
) |
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Net Loss |
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$ |
(0.02 |
) |
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$ |
(0.03 |
) |
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Diluted: |
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Continuing operations |
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$ |
(0.02 |
) |
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$ |
(0.02 |
) |
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Discontinued operations |
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$ |
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$ |
(0.01 |
) |
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Net Loss |
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$ |
(0.02 |
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$ |
(0.03 |
) |
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Weighted-Average Shares Used to Compute Net Loss per Common Share: |
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Basic |
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229,362 |
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227,529 |
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Diluted |
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229,362 |
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227,529 |
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Page 5 of 10
Rentech, Inc.
Statements of Operation by Business Segment
(Stated in Thousands)
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For the Three Months |
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Ended March 31, |
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2015 |
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2014 |
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(unaudited) |
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Revenues |
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East Dubuque |
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$ |
36,752 |
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$ |
28,491 |
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Pasadena |
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32,422 |
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27,789 |
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Fulghum Fibres |
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22,654 |
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26,039 |
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Wood Pellets: Industrial |
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1,664 |
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Wood Pellets: NEWP |
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12,118 |
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Total Revenues |
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$ |
105,610 |
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$ |
82,319 |
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Gross Profit (Loss) |
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East Dubuque |
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$ |
17,441 |
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$ |
12,398 |
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Pasadena |
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|
1,342 |
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|
1,366 |
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Fulghum Fibres |
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|
3,707 |
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|
4,131 |
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Wood Pellets: Industrial |
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(404 |
) |
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Wood Pellets: NEWP |
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|
2,223 |
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Total Segment Gross Profit |
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$ |
24,309 |
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|
$ |
17,895 |
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Selling, General and Administrative Expenses |
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|
|
|
|
|
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East Dubuque |
|
$ |
1,346 |
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|
$ |
1,133 |
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Pasadena |
|
|
796 |
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|
|
1,829 |
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Fulghum Fibres |
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|
1,682 |
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|
|
1,401 |
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Wood Pellets: Industrial |
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|
3,919 |
|
|
|
2,068 |
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Wood Pellets: NEWP |
|
|
704 |
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|
|
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|
|
|
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Total Segment Selling, General and Administrative Expenses |
|
$ |
8,447 |
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|
$ |
6,431 |
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Depreciation and Amortization |
|
|
|
|
|
|
|
|
East Dubuque |
|
$ |
69 |
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|
$ |
37 |
|
Pasadena |
|
|
360 |
|
|
|
296 |
|
Fulghum Fibres |
|
|
981 |
|
|
|
(809 |
) |
Wood Pellets: Industrial |
|
|
43 |
|
|
|
19 |
|
Wood Pellets: NEWP |
|
|
278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment Depreciation and Amortization Recorded in Operating Expenses |
|
$ |
1,731 |
|
|
$ |
(457 |
) |
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
|
|
|
|
|
|
|
East Dubuque |
|
$ |
16,022 |
|
|
$ |
11,209 |
|
Pasadena |
|
|
163 |
|
|
|
(786 |
) |
Fulghum Fibres |
|
|
(1,107 |
) |
|
|
1,654 |
|
Wood Pellets: Industrial |
|
|
(4,664 |
) |
|
|
(1,644 |
) |
Wood Pellets: NEWP |
|
|
1,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment Net Income |
|
$ |
11,556 |
|
|
$ |
10,433 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net Income to Consolidated Net Income (Loss): |
|
|
|
|
|
|
|
|
Segment net income |
|
$ |
11,556 |
|
|
$ |
10,433 |
|
RNF Partnership and unallocated expenses recorded as selling, general and administrative expenses |
|
|
(2,194 |
) |
|
|
(2,316 |
) |
RNF Partnership and unallocated income (expense) recorded as other income (expense) |
|
|
(29 |
) |
|
|
|
|
RNF Unallocated interest expense and loss on interest rate swaps |
|
|
(5,009 |
) |
|
|
(4,982 |
) |
Corporate and unallocated expenses recorded as selling, general and administrative expenses |
|
|
(3,863 |
) |
|
|
(6,825 |
) |
Corporate and unallocated depreciation and amortization expense |
|
|
(143 |
) |
|
|
(133 |
) |
Corporate and unallocated income (expense) recorded as other income (expense) |
|
|
4 |
|
|
|
8 |
|
Corporate and unallocated interest expense |
|
|
(94 |
) |
|
|
(304 |
) |
Corporate income tax benefit (expense) |
|
|
(35 |
) |
|
|
(4 |
) |
Income (loss) from Discontinued Operations, net of tax |
|
|
(147 |
) |
|
|
(1,471 |
) |
|
|
|
|
|
|
|
|
|
Consolidated Net Income (Loss) |
|
$ |
46 |
|
|
$ |
(5,594 |
) |
|
|
|
|
|
|
|
|
|
Page 6 of 10
Rentech, Inc.
Selected Balance Sheet Data
(Stated in Thousands)
|
|
|
|
|
|
|
|
|
|
|
As of |
|
(Stated in Thousands) |
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
|
(unaudited) |
|
Cash |
|
$ |
53,747 |
|
|
$ |
44,195 |
|
Working capital |
|
|
16,641 |
|
|
|
3,180 |
|
Construction in progress |
|
|
110,540 |
|
|
|
179,423 |
|
Total assets |
|
|
860,085 |
|
|
|
828,150 |
|
Total debt |
|
|
507,116 |
|
|
|
468,856 |
|
Total Rentech stockholders equity |
|
|
107,515 |
|
|
|
120,733 |
|
CashRNF |
|
$ |
32,406 |
|
|
$ |
28,028 |
|
Cash excluding RNF |
|
|
21,341 |
|
|
|
16,167 |
|
|
|
|
|
|
|
|
|
|
Total Cash |
|
$ |
53,747 |
|
|
$ |
44,195 |
|
|
|
|
|
|
|
|
|
|
DebtRNF |
|
$ |
339,000 |
|
|
$ |
335,000 |
|
Debt excluding RNF |
|
|
168,116 |
|
|
|
133,856 |
|
|
|
|
|
|
|
|
|
|
Total Debt |
|
$ |
507,116 |
|
|
$ |
468,856 |
|
|
|
|
|
|
|
|
|
|
Disclosure Regarding Non-GAAP Financial Measures
Rentechs Adjusted EBITDA is defined as Rentechs new income (loss) plus interest expense, income tax expense, depreciation and amortization. Rentech
Nitrogens Adjusted EBITDA is defined as Rentech Nitrogens net income (loss) plus interest expense and other financing costs, income tax expense, depreciation and amortization. Fulghums Adjusted EBITDA is defined as Fulghums
net income (loss) plus interest expense and other financing costs, depreciation and amortization, and income tax expense. NEWPs Adjusted EBITDA is defined as NEWPs net income plus interest expense and other financing costs, depreciation
and amortization, and income tax expense. Wood Pellets: Industrials Adjusted EBITDA is defined as Wood Pellets: Industrials net loss plus interest expense, depreciation and amortization and income tax expense. 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 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.
Page 7 of 10
The table below reconciles Rentechs consolidated Adjusted EBITDA to net income (loss) for the first quarter
of 2015 and 2014. The consolidated Adjusted EBITDA includes Adjusted EBITDA from 100% of Rentechs subsidiaries, most notably Rentech Nitrogen Partners.
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, |
|
(Stated in thousands) |
|
2015 |
|
|
2014 |
|
|
|
(unaudited) |
|
Net Income (Loss) |
|
$ |
46 |
|
|
$ |
(5,594 |
) |
Add: |
|
|
|
|
|
|
|
|
Net interest expense |
|
|
5,905 |
|
|
|
5,831 |
|
Income tax (benefit) expense |
|
|
1,694 |
|
|
|
1,050 |
|
Depreciation and amortization |
|
|
9,823 |
|
|
|
4,441 |
|
Other |
|
|
142 |
|
|
|
237 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1) |
|
$ |
17,610 |
|
|
$ |
5,965 |
|
|
|
|
|
|
|
|
|
|
(1) |
Adjusted EBITDA includes the impact of discontinued operations of ($147) and ($1,471) for the three months ended March 31, 2015 and 2014, respectively. |
The table below reconciles Rentech Nitrogens Adjusted EBITDA, along with the Adjusted EBITDA for each of its facilities, to their respective net income
(loss) for the first quarter of 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2015 |
|
(Stated in thousands) |
|
East Dubuque Facility |
|
|
Pasadena Facility |
|
|
Partnership Level |
|
|
Consolidated |
|
|
|
(unaudited) |
|
Net income (loss) |
|
$ |
16,022 |
|
|
$ |
163 |
|
|
$ |
(7,232 |
) |
|
$ |
8,953 |
|
Plus: Net interest expense |
|
|
19 |
|
|
|
|
|
|
|
5,009 |
|
|
|
5,028 |
|
Plus: Income tax expense |
|
|
15 |
|
|
|
23 |
|
|
|
|
|
|
|
38 |
|
Plus: Depreciation and amortization |
|
|
3,308 |
|
|
|
1,835 |
|
|
|
|
|
|
|
5,143 |
|
Plus: Other |
|
|
(26 |
) |
|
|
|
|
|
|
29 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
19,338 |
|
|
$ |
2,021 |
|
|
$ |
(2,194 |
) |
|
$ |
19,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below reconciles Rentech Nitrogens consolidated Adjusted EBITDA, along with the Adjusted EBITDA for each of
its facilities, to their respective net income (loss) for the first quarter of 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2014 |
|
(Stated in thousands) |
|
East Dubuque Facility |
|
|
Pasadena Facility |
|
|
Partnership Level |
|
|
Consolidated |
|
|
|
(unaudited) |
|
Net income (loss) |
|
$ |
11,209 |
|
|
$ |
(786 |
) |
|
$ |
(7,298 |
) |
|
$ |
3,125 |
|
Plus: Net interest expense |
|
|
22 |
|
|
|
|
|
|
|
4,982 |
|
|
|
5,004 |
|
Plus: Income tax expense |
|
|
3 |
|
|
|
27 |
|
|
|
|
|
|
|
30 |
|
Plus: Depreciation and amortization |
|
|
2,242 |
|
|
|
1,062 |
|
|
|
|
|
|
|
3,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
13,476 |
|
|
$ |
303 |
|
|
$ |
(2,316 |
) |
|
$ |
11,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 8 of 10
The table below reconciles Fulghums Adjusted EBITDA to net income (loss) for the first quarter of 2015 and
2014.
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, |
|
(Stated in thousands) |
|
2015 |
|
|
2014 |
|
|
|
(unaudited) |
|
Fulghum Net Income |
|
$ |
(1,107 |
) |
|
$ |
1,654 |
|
Add Fulghum Items: |
|
|
|
|
|
|
|
|
Net interest expense |
|
|
538 |
|
|
|
536 |
|
Depreciation and amortization |
|
|
3,001 |
|
|
|
985 |
|
Income tax expense |
|
|
1,602 |
|
|
|
1,012 |
|
Other |
|
|
10 |
|
|
|
336 |
|
|
|
|
|
|
|
|
|
|
Fulghums Adjusted EBITDA |
|
$ |
4,044 |
|
|
$ |
4,523 |
|
|
|
|
|
|
|
|
|
|
The table below reconciles NEWPs Adjusted EBITDA to net income for the first quarter of 2015.
|
|
|
|
|
(Stated in thousands) |
|
For the Three Months Ended March 31, 2015 |
|
|
|
(unaudited) |
|
NEWP Net Income |
|
$ |
1,142 |
|
Add NEWP Items: |
|
|
|
|
Net interest expense |
|
|
139 |
|
Depreciation and amortization |
|
|
1,056 |
|
Income tax expense |
|
|
17 |
|
Other |
|
|
(57 |
) |
|
|
|
|
|
NEWPs Adjusted EBITDA |
|
$ |
2,297 |
|
|
|
|
|
|
The table below reconciles Wood Pellets: Industrials Adjusted EBITDA to net loss for the first quarter of 2015.
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, |
|
(Stated in thousands) |
|
2015 |
|
|
2014 |
|
|
|
(unaudited) |
|
Wood Pellets: Industrial Net Loss |
|
$ |
(4,664 |
) |
|
$ |
(1,644 |
) |
Add: |
|
|
|
|
|
|
|
|
Net interest expense |
|
|
106 |
|
|
|
11 |
|
Depreciation and amortization |
|
|
480 |
|
|
|
19 |
|
Income tax expense |
|
|
|
|
|
|
4 |
|
Other |
|
|
191 |
|
|
|
(116 |
) |
|
|
|
|
|
|
|
|
|
Wood Pellet: Industrials Adjusted EBITDA |
|
$ |
(3,887 |
) |
|
$ |
(1,726 |
) |
|
|
|
|
|
|
|
|
|
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 Companys
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 performance
of our Canadian wood pellet plants. These statements are based on managements 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 Companys prior press releases and periodic public filings with the Securities and
Page 9 of 10
Exchange Commission, which are available via Rentechs 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.
Source: Rentech, Inc.
Rentech, Inc.
Julie Dawoodjee Cafarella
Vice president of Investor Relations
and Communications
310-571-9800
ir@rentk.com
Page 10 of 10
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