|
Revises 2015 Guidance
LOS ANGELES--(BUSINESS WIRE)--Nov. 9, 2015--
Rentech Nitrogen Partners, L.P. (NYSE: RNF) today announced financial
and operating results for the three and nine months ended September 30,
2015. The Partnership also announced a cash distribution of $0.25 per
unit for the third quarter of 2015.
Keith Forman, CEO of Rentech Nitrogen, said, “The third quarter
operating results for Rentech Nitrogen were strong, especially in the
context of year over year comparison. Demand for our products remained
robust, East Dubuque produced a record quantity of ammonia, and our
sales margins were higher as well. The combined impact of those factors
resulted in higher recorded EBITDA which in turn translated into higher
cash distributions to unitholders despite modest results at Pasadena and
the addition of costs related to our pending transaction with CVR
Partners.”
Mr. Forman continued, “We continue to work towards completing the merger
with CVR Partners, and we expect to close in the first quarter of next
year. We are in an active sale process for the Pasadena Facility while
working a parallel path to be ready for a spin-off of the Pasadena
Facility if necessary.”
“Our outlook for the year at East Dubuque has improved somewhat,
although Pasadena has weakened slightly, due to market conditions, and
we are absorbing some transaction costs associated with the merger with
CVR Partners,” added Mr. Forman.
Summary of Results
Revenues for the third quarter of 2015 were $84.3 million, compared to
$84.2 million for the same period last year. Revenues for the nine
months ended September 30, 2015 were $263.4 million, compared to $254.1
million for the same period last year. Gross profit for the third
quarter of 2015 was $19.4 million, compared to $6.7 million for the same
period last year. Gross profit for the nine months ended September 30,
2015 were $82.9 million, compared to $48.7 million for the same period
last year. Adjusted EBITDA for the third quarter of 2015 was $19.0
million, compared to $9.1 million for the same period last year.
Adjusted EBITDA for the nine months ended September 30, 2015 was $85.9
million, compared to $51.3 million for the same period last year. A
further explanation of Adjusted EBITDA, a non-GAAP financial measure, as
used here and throughout this press release appears below.
For the Pasadena Facility, the Partnership updated its forecasts of
operating cash flows, assessed indications of interest from potential
buyers, and updated its estimates of the probabilities of selling and
operating the plant. As a result, the carrying value was further reduced
by recording an asset impairment charge of $32.5 million in the third
quarter of 2015. For the nine months ended September 30, 2015, asset
impairment charges for the Pasadena Facility totaled $134.3 million, and
impairment of goodwill totaled $27.2 million for the nine months ended
September 30, 2014. There is significant uncertainty as to whether the
Partnership will sell the Pasadena Facility to a third party, and as to
whether any sale price would equal the carrying value of the asset,
which is an estimate.
Net loss for the third quarter of 2015 was $(25.5) million, or a loss of
$(0.66) per basic unit. Excluding the loss due to the Pasadena asset
impairment, net income was $7.0 million, or $0.18 per basic unit, for
the third quarter of 2015. This compares to a net loss of $(3.1)
million, or a loss of $(0.08) per basic unit, for the third quarter of
2014.
Net loss for the nine months ended September 30, 2015 was $(82.8)
million, or a loss of $(2.14) per basic unit. Excluding the loss due to
the Pasadena asset impairment, net income was $51.5 million, or $1.31
per basic unit, for the nine months ended September 30, 2015. This
compares to a net loss of $(8.9) million, or a loss of $(0.23) per basic
unit for the prior year period. Excluding the loss due to the Pasadena
goodwill impairment, net income was $18.3 million, or $0.47 per basic
unit, for the nine months ended September 30, 2014.
East Dubuque Facility
Revenues for the third quarter of 2015 were $46.8 million, compared to
$46.0 million for the same period in the prior year. The increase was
primarily due to higher sales volumes for ammonia and UAN, partially
offset by lower sales prices for almost all products, and lower natural
gas sales.
Ammonia deliveries increased due to strong demand from agricultural and
industrial customers. UAN deliveries increased between the third
quarters of each year due to lower demand in the spring of 2015 due to a
significant amount of pre-plant ammonia applied, the availability of
lower priced urea, and wet conditions during the UAN application period,
pushing UAN sales into the third quarter.
Average sales prices per ton for the third quarter of 2015 were 7% lower
for ammonia and 10% lower for UAN, as compared with the same period last
year. These two products comprised 84% of our East Dubuque Facility’s
revenues for the third quarter of 2015 and 80% for the same period last
year.
Gross profit was $18.9 million for the third quarter of 2015, compared
to $15.5 million for the same period in the prior year. Gross profit
margin was 40% for the third quarter of 2015, compared to 34% for the
same period in the prior year. The increases in gross profit and gross
margin were primarily due to higher sales volumes for ammonia and UAN,
and lower natural gas costs, partially offset by lower sales prices for
ammonia and UAN. Gross profit margin, without natural gas derivatives,
was 42% for the third quarter of 2015, compared to 34%, without natural
gas derivatives, for the same period in the prior year.
Adjusted EBITDA for the third quarter of 2015 was $22.6 million,
compared to $18.5 million in the corresponding period in 2014.
Net income was $17.8 million for the third quarter of 2015, compared to
$14.1 million for the same period last year.
Pasadena Facility
Revenues for the third quarter of 2015 were $37.5 million, compared to
$38.1 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 by 15% for ammonium sulfate and
decreased by 10% for sulfuric acid for the third quarter of 2015 as
compared with the same period last year. These two products comprised
92% of our Pasadena Facility’s revenues for the third quarter of 2015
and 94% for the same period in the prior year.
Ammonium sulfate sales prices increased due to a higher percentage of
sales in the domestic market and continued demand for ammonium sulfate
as retailers move away from ammonium nitrate. As part of our
restructuring plan, we reduced our historically low-margin sales to
Brazil. Brazil accounted for 22% of ammonium sulfate sales during the
third quarter of 2015 while 53% of ammonium sulfate sales were to Brazil
during the third 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.
Gross profit was $0.5 million for the third quarter of 2015, compared to
a gross loss of $(8.8) million for the same period last year. Gross
profit margin for the third quarter 2015 was 1%, compared to gross loss
margin of (23%) for the same period last year. During the third quarter
of 2015, we wrote down ammonium sulfate inventories by $0.5 million,
compared to $1.8 million in the third quarter of 2014. 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 and a decrease in the write down of
inventories.
Adjusted EBITDA for the third quarter of 2015 was $0.9 million, compared
to an Adjusted EBITDA loss of $(7.7) million in the corresponding period
in 2014.
The Pasadena Facility incurred an asset impairment charge of $32.5
million in the third quarter of 2015.
Net loss was $(33.2) million for the third quarter 2015, compared to a
net loss of $(10.2) million for the same period last year. Net loss
was $(0.7) million for the third quarter of 2015, excluding the loss due
to the asset impairment.
Outlook
Fourth Quarter 2015 Guidance
The Partnership provided the following forecast for product deliveries,
consumption of inputs and capital expenditures for the fourth quarter of
2015.
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4Q15
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Forecasted Deliveries (in thousand tons)
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|
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East Dubuque Facility
|
|
|
|
|
Ammonia
|
|
|
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65
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UAN
|
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|
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76
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Urea (liquid and granular)
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15
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Nitric acid
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3
|
|
|
|
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Pasadena Facility
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Ammonium sulfate
|
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170
|
Sulfuric acid
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|
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44
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Ammonium thiosulfate
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20
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Forecasted Consumption in Deliveries
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East Dubuque Facility
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Natural gas (in million MMBtus)
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3.8
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Pasadena Facility
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Ammonia
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45
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Sulfur
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61
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Sulfuric acid
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|
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|
171
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Maintenance Capital Expenditures (in millions)
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East Dubuque facility
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$
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4.6
|
Pasadena facility
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$
|
1.8
|
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|
|
|
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Growth Capital Expenditures (in millions)
1
|
|
|
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|
East Dubuque facility
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|
$
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9
|
Pasadena facility
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|
|
$
|
—
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1We expect to fund growth capital expenditures with
borrowings under the Partnership’s credit facility.
2015 Outlook and Progress
Rentech Nitrogen is now projecting consolidated adjusted EBITDA in 2015
to be approximately $116 million, before transaction costs to be
incurred after September 30, 2015, compared to its previous guidance of
approximately $118 million. The updated guidance reflects $4 million of
transaction costs incurred through the third quarter relating to the
merger with CVR Partners and the sale process for Pasadena, improved
performance at East Dubuque, and slightly lower sales and pricing at
Pasadena.
For 2015, the Partnership projects Adjusted EBITDA of approximately $120
million for East Dubuque, as compared to its previous guidance of
approximately $117 million, and approximately $7 million for Pasadena,
as compared to its previous guidance of approximately $10 million. The
guidance excludes transaction costs to be incurred after September 30,
2015, and includes approximately $1 million of transaction costs
incurred at Pasadena through September 30, 2015.
Rentech Nitrogen projects cash distributions for 2015 to be
approximately $1.90 per unit, which reflects $4 million, or $0.10 per
unit, of transaction fees incurred through the end of the third quarter,
but excludes transaction fees that may be incurred in the fourth quarter.
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For the Twelve Months Ending December 31, 2015
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|
|
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East Dubuque
Facility
|
|
|
Pasadena
Facility
|
|
|
Partnership
Level
|
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Consolidated
|
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|
|
(stated in millions, except per unit data)
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|
Net income
|
|
|
$
|
101
|
|
|
$
|
(133
|
)
|
|
$
|
(33
|
)
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$
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(65
|
)
|
Add:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
|
22
|
|
Depreciation and amortization
|
|
|
|
19
|
|
|
|
7
|
|
|
|
—
|
|
|
|
26
|
|
Other
|
|
|
|
—
|
|
|
|
133
|
|
|
|
—
|
|
|
|
133
|
|
Adjusted EBITDA
|
|
|
$
|
120
|
|
|
$
|
7
|
|
|
$
|
(11
|
)
|
|
$
|
116
|
|
Less: Maintenance capital expenditures
|
|
|
|
(11
|
)
|
|
|
(4
|
)
|
|
|
—
|
|
|
|
(15
|
)
|
Less: Net interest expense
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(22
|
)
|
|
|
(22
|
)
|
Plus: Non-cash compensation expense
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
Less: Replenishment of reserves for WC purposes
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6
|
)
|
|
|
(6
|
)
|
Cash distribution
|
|
|
$
|
109
|
|
|
$
|
3
|
|
|
$
|
(38
|
)
|
|
$
|
74
|
|
Cash distribution, per unit
|
|
|
$
|
2.79
|
|
|
$
|
0.08
|
|
|
$
|
(0.97
|
)
|
|
|
1.90
|
|
Common units outstanding
|
|
|
|
39
|
|
|
|
39
|
|
|
|
39
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentech Nitrogen provided the following key operating metrics, progress
against its forecasted product deliveries and consumption of inputs for
2015 for the East Dubuque and Pasadena facilities:
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|
|
|
|
|
|
|
Locked-in or Delivered
|
East Dubuque Facility
|
|
|
|
|
Deliveries
1
|
|
|
|
|
Ammonia
|
|
|
|
|
Tons (in thousands)
|
|
|
|
164 or 80%
|
Average price
|
|
|
$
|
547
|
UAN
|
|
|
|
|
Tons (in thousands)
|
|
|
|
282 or 100%
|
Average price
|
|
|
$
|
255
|
Natural Gas in Cost of Sales
1
|
|
|
|
|
(million MMBtus)
|
|
|
|
13.2 or 100%
|
Purchased average cost per MMBtu (including transportation costs)
|
|
|
$
|
3.72
|
Unrealized derivatives (gain) per MMBtu
|
|
|
$
|
(0.30)
|
Average cost per MMBtu (including transportation costs)
|
|
|
$
|
3.42
|
Pasadena Facility
|
|
|
|
|
Deliveries and Commitments
1
|
|
|
|
|
Ammonium sulfate
|
|
|
|
|
Tons (in thousands)
|
|
|
|
394 or 75%
|
Average price
|
|
|
$
|
242
|
1Through September 30, 2015.
Third Quarter 2015 Cash Available for
Distribution
We declared a cash distribution to our common unitholders and payments
to holders of phantom units for the third quarter of 2015 of $0.25 per
common unit or $9.8 million in the aggregate. The cash distribution will
be paid on November 27, 2015, to unitholders of record at the close of
business on November 20, 2015. The calculation of the cash available for
distribution appears below in this press release.
Merger Update
The premerger notification period under the Hart-Scott-Rodino Act
expired in September without a request for additional information. The
Form S-4 was filed in September and is currently in the SEC review
process. We are running parallel paths with the sale process and
preparations of spin-off documents. We expect to close the merger with
CVR Partners in the first quarter of 2016.
Conference Call with Management
Rentech Nitrogen will hold a conference call today, November 10, 2015 at
7:00 a.m. PST, during which senior management will review the
Partnership’s financial results for this period and provide an update on
the business. Callers may listen to the live presentation, which will be
followed by a question and answer segment, by dialing 800-774-6070 or
630-691-2753 and entering the pass code 8157912#. An audio webcast of
the call will be available at www.rentechnitrogen.com
within the Investor Relations portion of the site under the
Presentations section. A replay will be available by audio webcast and
teleconference from 9:30 a.m. PST on November 10 through 11:59 p.m. PST
on November 18. The replay teleconference will be available by dialing
888-843-7419 or 630-652-3042 and entering the audience passcode 8157912#.
|
Rentech Nitrogen Partners, L.P.
|
Consolidated Statements of Operations
|
(Amounts in Thousands, Except per Unit Data)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
September 30,
|
|
|
For the Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Revenues
|
|
|
$
|
84,323
|
|
|
$
|
84,163
|
|
|
$
|
263,350
|
|
|
$
|
254,052
|
|
Cost of sales
|
|
|
|
64,961
|
|
|
|
77,475
|
|
|
|
180,479
|
|
|
|
205,381
|
|
Gross profit
|
|
|
|
19,362
|
|
|
|
6,688
|
|
|
|
82,871
|
|
|
|
48,671
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense
|
|
|
|
6,719
|
|
|
|
3,819
|
|
|
|
15,221
|
|
|
|
13,601
|
|
Depreciation and amortization
|
|
|
|
95
|
|
|
|
384
|
|
|
|
948
|
|
|
|
1,092
|
|
Pasadena asset impairment
|
|
|
|
32,510
|
|
|
|
—
|
|
|
|
134,282
|
|
|
|
—
|
|
Pasadena goodwill impairment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
27,202
|
|
Other (income) expense
|
|
|
|
(13
|
)
|
|
|
304
|
|
|
|
414
|
|
|
|
526
|
|
Total operating expenses
|
|
|
|
39,311
|
|
|
|
4,507
|
|
|
|
150,865
|
|
|
|
42,421
|
|
Operating income (loss)
|
|
|
|
(19,949
|
)
|
|
|
2,181
|
|
|
|
(67,994
|
)
|
|
|
6,250
|
|
Other expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(5,570
|
)
|
|
|
(4,624
|
)
|
|
|
(16,144
|
)
|
|
|
(14,437
|
)
|
Loss on debt extinguishment
|
|
|
|
—
|
|
|
|
(635
|
)
|
|
|
—
|
|
|
|
(635
|
)
|
Other income (expense), net
|
|
|
|
(14
|
)
|
|
|
—
|
|
|
|
1,394
|
|
|
|
—
|
|
Total other expenses, net
|
|
|
|
(5,584
|
)
|
|
|
(5,259
|
)
|
|
|
(14,750
|
)
|
|
|
(15,072
|
)
|
Loss before income taxes
|
|
|
|
(25,533
|
)
|
|
|
(3,078
|
)
|
|
|
(82,744
|
)
|
|
|
(8,822
|
)
|
Income tax (benefit) expense
|
|
|
|
(19
|
)
|
|
|
27
|
|
|
|
28
|
|
|
|
82
|
|
Net loss
|
|
|
$
|
(25,514
|
)
|
|
$
|
(3,105
|
)
|
|
$
|
(82,772
|
)
|
|
$
|
(8,904
|
)
|
Net loss per common unit allocated to common
unitholders - Basic
|
|
|
$
|
(0.66
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(2.14
|
)
|
|
$
|
(0.23
|
)
|
Net loss per common unit allocated to common
unitholders - Diluted
|
|
|
$
|
(0.66
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(2.14
|
)
|
|
$
|
(0.23
|
)
|
Weighted-average units used to compute net loss
per common unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
38,928
|
|
|
|
38,905
|
|
|
|
38,919
|
|
|
|
38,895
|
|
Diluted
|
|
|
|
38,928
|
|
|
|
38,905
|
|
|
|
38,919
|
|
|
|
38,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
|
|
For the Nine Months
|
|
|
|
Ended September 30,
|
|
|
Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Production Tons (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonia
|
|
|
81
|
|
|
|
75
|
|
|
|
253
|
|
|
|
238
|
|
Ammonia Available for Sale (included in line above)
|
|
|
44
|
|
|
|
40
|
|
|
|
139
|
|
|
|
125
|
|
UAN
|
|
|
69
|
|
|
|
63
|
|
|
|
209
|
|
|
|
213
|
|
Other Products (excludes CO2 )
|
|
|
71
|
|
|
|
66
|
|
|
|
217
|
|
|
|
217
|
|
Pasadena Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonium Sulfate
|
|
|
132
|
|
|
|
121
|
|
|
|
394
|
|
|
|
411
|
|
Sulfuric Acid
|
|
|
124
|
|
|
|
71
|
|
|
|
387
|
|
|
|
300
|
|
Ammonium Thiosulfate
|
|
|
|
17
|
|
|
|
10
|
|
|
|
51
|
|
|
|
45
|
|
Delivered Tons (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonia
|
|
|
32
|
|
|
|
27
|
|
|
|
142
|
|
|
|
106
|
|
UAN
|
|
|
96
|
|
|
|
83
|
|
|
|
206
|
|
|
|
214
|
|
Other Products (excludes CO2 )
|
|
|
17
|
|
|
|
17
|
|
|
|
54
|
|
|
|
50
|
|
Pasadena Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonium Sulfate
|
|
|
137
|
|
|
|
172
|
|
|
|
355
|
|
|
|
458
|
|
Sulfuric Acid
|
|
|
40
|
|
|
|
20
|
|
|
|
114
|
|
|
|
61
|
|
Ammonium Thiosulfate
|
|
|
11
|
|
|
|
13
|
|
|
|
49
|
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Sales Price per Ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonia
|
|
|
$
|
502
|
|
|
|
$
|
537
|
|
|
|
$
|
550
|
|
|
|
$
|
545
|
|
UAN
|
|
|
$
|
240
|
|
|
|
$
|
268
|
|
|
|
$
|
260
|
|
|
|
$
|
283
|
|
Pasadena Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonium Sulfate
|
|
|
$
|
226
|
|
|
|
$
|
197
|
|
|
|
$
|
247
|
|
|
|
$
|
197
|
|
Sulfuric Acid
|
|
|
$
|
86
|
|
|
|
$
|
95
|
|
|
|
$
|
86
|
|
|
|
$
|
91
|
|
Ammonium Thiosulfate
|
|
|
$
|
230
|
|
|
|
$
|
148
|
|
|
|
$
|
178
|
|
|
|
$
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Input Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Used in Production (Thousand MMBtus)
|
|
|
|
2,964
|
|
|
|
|
2,623
|
|
|
|
|
9,155
|
|
|
|
|
8,511
|
|
Average Natural Gas Cost per MMBtu, including transportation cost,
used in production
|
|
|
$
|
3.12
|
|
|
|
$
|
4.91
|
|
|
|
$
|
3.69
|
|
|
|
$
|
5.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas in Cost of Sales (Thousand MMBtus)
|
|
|
|
3,095
|
|
|
|
|
2,800
|
|
|
|
|
9,331
|
|
|
|
|
8,421
|
|
Purchased Average Natural Gas Cost per MMBtu, Including
Transportation Cost
|
|
|
$
|
3.13
|
|
|
|
$
|
4.87
|
|
|
|
$
|
3.94
|
|
|
|
$
|
5.04
|
|
Unrealized Loss (Gain) on Derivatives
|
|
|
$
|
0.18
|
|
|
|
$
|
0.10
|
|
|
|
$
|
(0.39
|
)
|
|
|
$
|
0.10
|
|
Average Natural Gas Cost per MMBtu, Including Transportation Cost
|
|
|
$
|
3.31
|
|
|
|
$
|
4.97
|
|
|
|
$
|
3.55
|
|
|
|
$
|
5.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Input Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pasadena Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonia Used in Production (Thousand Tons)
|
|
|
36
|
|
|
|
32
|
|
|
|
108
|
|
|
|
111
|
|
Ammonia in Cost of Sales (Thousand Tons)
|
|
|
36
|
|
|
|
46
|
|
|
|
97
|
|
|
|
125
|
|
Sulfur
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sulfur Used in Production (Thousand Tons)
|
|
|
45
|
|
|
|
38
|
|
|
|
141
|
|
|
|
122
|
|
Sulfur in Cost of Sales (Thousand Tons)
|
|
|
48
|
|
|
|
51
|
|
|
|
134
|
|
|
|
145
|
|
On-Stream Rates
1
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonia
|
|
|
|
94
|
%
|
|
|
|
89
|
%
|
|
|
|
98
|
%
|
|
|
|
96
|
%
|
UAN
|
|
|
|
94
|
%
|
|
|
|
90
|
%
|
|
|
|
98
|
%
|
|
|
|
96
|
%
|
Pasadena Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonium Sulfate
|
|
|
|
88
|
%
|
|
|
|
86
|
%
|
|
|
|
88
|
%
|
|
|
|
83
|
%
|
Sulfuric Acid
|
|
|
|
86
|
%
|
|
|
|
60
|
%
|
|
|
|
93
|
%
|
|
|
|
86
|
%
|
1 The on-stream factors for the ammonia, UAN, ammonium
sulfate and sulfuric acid plants equal the total days the applicable
plant operated in any given period, divided by the total days in the
period.
|
Rentech Nitrogen Partners, L.P.
|
Statements of Operations by Business Segment
|
(Stated in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
For the Nine Months
Ended September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(in thousands)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque
|
|
|
$
|
46,804
|
|
|
$
|
46,021
|
|
|
$
|
155,616
|
|
|
$
|
148,455
|
|
Pasadena
|
|
|
|
37,519
|
|
|
|
38,142
|
|
|
|
107,734
|
|
|
|
105,597
|
|
Total revenues
|
|
|
$
|
84,323
|
|
|
$
|
84,163
|
|
|
$
|
263,350
|
|
|
$
|
254,052
|
|
Gross profit (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque
|
|
|
$
|
18,898
|
|
|
$
|
15,466
|
|
|
$
|
79,019
|
|
|
$
|
60,816
|
|
Pasadena
|
|
|
|
464
|
|
|
|
(8,778
|
)
|
|
|
3,852
|
|
|
|
(12,145
|
)
|
Total gross profit
|
|
|
$
|
19,362
|
|
|
$
|
6,688
|
|
|
$
|
82,871
|
|
|
$
|
48,671
|
|
Selling, general and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque
|
|
|
$
|
1,088
|
|
|
$
|
956
|
|
|
$
|
3,434
|
|
|
$
|
3,177
|
|
Pasadena
|
|
|
|
1,133
|
|
|
|
1,071
|
|
|
|
2,773
|
|
|
|
4,147
|
|
Total segment selling, general and administrative expenses
|
|
|
$
|
2,221
|
|
|
$
|
2,027
|
|
|
$
|
6,207
|
|
|
$
|
7,324
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque
|
|
|
$
|
70
|
|
|
$
|
47
|
|
|
$
|
204
|
|
|
$
|
122
|
|
Pasadena
|
|
|
|
25
|
|
|
|
337
|
|
|
|
744
|
|
|
|
970
|
|
Total segment depreciation and amortization recorded in operating
expenses
|
|
|
|
95
|
|
|
|
384
|
|
|
|
948
|
|
|
|
1,092
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Dubuque
|
|
|
$
|
17,754
|
|
|
$
|
14,139
|
|
|
$
|
74,973
|
|
|
$
|
56,926
|
|
Pasadena
|
|
|
|
(33,187
|
)
|
|
|
(10,213
|
)
|
|
|
(132,550
|
)
|
|
|
(44,545
|
)
|
Total segment net income (loss)
|
|
|
$
|
(15,433
|
)
|
|
$
|
3,926
|
|
|
$
|
(57,577
|
)
|
|
$
|
12,381
|
|
Reconciliation of segment net income (loss) to consolidated net
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment net income (loss)
|
|
|
$
|
(15,433
|
)
|
|
$
|
3,926
|
|
|
$
|
(57,577
|
)
|
|
$
|
12,381
|
|
Partnership and unallocated expenses recorded as selling, general
and administrative expenses
|
|
|
|
(4,498
|
)
|
|
|
(1,792
|
)
|
|
|
(9,014
|
)
|
|
|
(6,277
|
)
|
Partnership and unallocated expenses recorded as other expense
|
|
|
|
(29
|
)
|
|
|
(635
|
)
|
|
|
(89
|
)
|
|
|
(635
|
)
|
Unallocated interest expense
|
|
|
|
(5,554
|
)
|
|
|
(4,604
|
)
|
|
|
(16,092
|
)
|
|
|
(14,373
|
)
|
Consolidated net loss
|
|
|
$
|
(25,514
|
)
|
|
$
|
(3,105
|
)
|
|
$
|
(82,772
|
)
|
|
$
|
(8,904
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentech Nitrogen Partners, L.P.
|
Selected Balance Sheet Data
|
(Stated in Thousands)
|
|
|
|
|
|
|
|
|
|
|
As of
September 30,
2015
|
|
|
As of
December 31,
2014
|
|
|
|
(in thousands)
|
Cash
|
|
|
$
|
38,151
|
|
|
$
|
28,028
|
Working capital
|
|
|
|
13,693
|
|
|
|
14,499
|
Construction in progress
|
|
|
|
16,731
|
|
|
|
47,758
|
Total assets
|
|
|
|
291,058
|
|
|
|
414,316
|
Debt
|
|
|
|
346,500
|
|
|
|
335,000
|
Total partners' capital (deficit)
|
|
|
|
(137,954
|
)
|
|
|
8,891
|
|
|
|
|
|
|
|
|
|
Disclosure Regarding Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income (loss) plus net interest
expense and other financing costs, income tax expense, depreciation and
amortization and unusual items, like impairment charges. As used in the
following tables, we calculate cash available for distribution as
Adjusted EBITDA plus non-cash compensation expense, less the sum of
maintenance capital expenditures not funded by financing proceeds, net
interest expense and cash reserved for working capital purposes.
Adjusted EBITDA and cash available for distribution 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.
Net income (loss) excluding impairments are included to provide
management and investors with net income results for Rentech Nitrogen
and Pasadena that are more easily compared to the prior year period.
Non-GAAP financial measures should not be considered alternatives to any
measure of financial performance or liquidity presented in accordance
with GAAP. Non-GAAP financial measures may have material limitations as
performance measures because they exclude items that are necessary
elements of our costs and operations. In addition, Adjusted EBITDA and
cash available for distribution presented by other companies may not be
comparable to our presentation, since each company may define these
terms differently.
The table below reconciles Adjusted EBITDA to net income (loss) for the
third quarter of 2015. It also reconciles cash available for
distribution to Adjusted EBITDA, both of which are non-GAAP financial
measures, for the third quarter of 2015.
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2015
|
|
|
|
|
East Dubuque
Facility
|
|
|
Pasadena
Facility
|
|
|
Partnership
Level
|
|
|
Consolidated
|
|
|
|
|
(in thousands, except per unit data)
|
|
Net income (loss)
|
|
|
$
|
17,754
|
|
|
$
|
(33,187
|
)
|
|
$
|
(10,081
|
)
|
|
$
|
(25,514
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
|
|
16
|
|
|
|
—
|
|
|
|
5,554
|
|
|
|
5,570
|
|
Pasadena asset impairment
|
|
|
|
—
|
|
|
|
32,510
|
|
|
|
—
|
|
|
|
32,510
|
|
Income tax benefit
|
|
|
|
—
|
|
|
|
(19
|
)
|
|
|
—
|
|
|
|
(19
|
)
|
Depreciation and amortization
|
|
|
|
4,861
|
|
|
|
1,609
|
|
|
|
—
|
|
|
|
6,470
|
|
Other
|
|
|
|
(16
|
)
|
|
|
—
|
|
|
|
30
|
|
|
|
14
|
|
Adjusted EBITDA
|
|
|
$
|
22,615
|
|
|
$
|
913
|
|
|
$
|
(4,497
|
)
|
|
$
|
19,031
|
|
Plus: Non-cash compensation expense
|
|
|
|
—
|
|
|
|
—
|
|
|
|
169
|
|
|
|
169
|
|
Less: Maintenance capital expenditures1 |
|
|
|
(2,279
|
)
|
|
|
(1,112
|
)
|
|
|
—
|
|
|
|
(3,391
|
)
|
Less: Net interest expense
|
|
|
|
(16
|
)
|
|
|
—
|
|
|
|
(5,554
|
)
|
|
|
(5,570
|
)
|
Less: Cash reserved for working capital purposes
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(507
|
)
|
|
|
(507
|
)
|
Plus: Distributions of cash reserves
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Cash available for distribution
|
|
|
$
|
20,320
|
|
|
$
|
(199
|
)
|
|
$
|
(10,389
|
)
|
|
$
|
9,732
|
|
Cash available for distribution, per unit
|
|
|
$
|
0.52
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.27
|
)
|
|
|
0.25
|
|
Common units outstanding2 |
|
|
|
38,930
|
|
|
|
38,930
|
|
|
|
38,930
|
|
|
|
38,930
|
|
1Excludes maintenance capital expenditures at our Pasadena
Facility funded by debt in the amount of $3.7 million for the three
months ended September 30, 2014 and $14.0 million for the nine months
ended September 30, 2014. 2Excludes phantom units.
The table below reconciles Adjusted EBITDA to net income (loss) for the
nine months ended September 30, 2015.
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2015
|
|
|
|
|
East Dubuque
Facility
|
|
|
Pasadena
Facility
|
|
|
Partnership
Level
|
|
|
Consolidated
|
|
|
|
|
(in thousands, except per unit data)
|
|
Net income (loss)
|
|
|
$
|
74,973
|
|
|
$
|
(132,550
|
)
|
|
$
|
(25,195
|
)
|
|
$
|
(82,772
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
|
|
52
|
|
|
|
—
|
|
|
|
16,092
|
|
|
|
16,144
|
|
Pasadena asset impairment
|
|
|
|
—
|
|
|
|
134,282
|
|
|
|
—
|
|
|
|
134,282
|
|
Income tax expense
|
|
|
|
—
|
|
|
|
28
|
|
|
|
—
|
|
|
|
28
|
|
Depreciation and amortization
|
|
|
|
13,549
|
|
|
|
6,013
|
|
|
|
—
|
|
|
|
19,562
|
|
Other1 |
|
|
|
(58
|
)
|
|
|
(1,425
|
)
|
|
|
89
|
|
|
|
(1,394
|
)
|
Adjusted EBITDA
|
|
|
$
|
88,516
|
|
|
$
|
6,348
|
|
|
$
|
(9,014
|
)
|
|
$
|
85,850
|
|
1 Includes a one-time easement payment of $1.4 million
received by the Pasadena facility during the nine months ended September
30, 2015.
The table below reconciles Adjusted EBITDA to net income (loss) for the
third quarter of 2014.
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2014
|
|
|
|
|
East Dubuque
Facility
|
|
|
Pasadena
Facility
|
|
|
Partnership
Level
|
|
|
Consolidated
|
|
|
|
|
(in thousands, except per unit data)
|
|
Net income (loss)
|
|
|
$
|
14,139
|
|
|
$
|
(10,213
|
)
|
|
$
|
(7,031
|
)
|
|
$
|
(3,105
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
|
|
20
|
|
|
|
—
|
|
|
|
4,604
|
|
|
|
4,624
|
|
Pasadena goodwill impairment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax expense
|
|
|
|
—
|
|
|
|
27
|
|
|
|
—
|
|
|
|
27
|
|
Depreciation and amortization
|
|
|
|
4,380
|
|
|
|
2,490
|
|
|
|
—
|
|
|
|
6,870
|
|
Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
635
|
|
|
|
635
|
|
Adjusted EBITDA
|
|
|
$
|
18,539
|
|
|
$
|
(7,696
|
)
|
|
$
|
(1,792
|
)
|
|
$
|
9,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below reconciles Adjusted EBITDA to net income (loss) for the
nine months ended September 30, 2014.
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2014
|
|
|
|
|
East Dubuque
Facility
|
|
|
Pasadena
Facility
|
|
|
Partnership
Level
|
|
|
Consolidated
|
|
|
|
|
(in thousands, except per unit data)
|
|
Net income (loss)
|
|
|
$
|
56,926
|
|
|
$
|
(44,545
|
)
|
|
$
|
(21,285
|
)
|
|
$
|
(8,904
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
|
|
64
|
|
|
|
—
|
|
|
|
14,373
|
|
|
|
14,437
|
|
Pasadena goodwill impairment
|
|
|
|
—
|
|
|
|
27,202
|
|
|
|
—
|
|
|
|
27,202
|
|
Income tax expense
|
|
|
|
1
|
|
|
|
81
|
|
|
|
—
|
|
|
|
82
|
|
Depreciation and amortization
|
|
|
|
11,777
|
|
|
|
6,026
|
|
|
|
—
|
|
|
|
17,803
|
|
Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
635
|
|
|
|
635
|
|
Adjusted EBITDA
|
|
|
$
|
68,768
|
|
|
$
|
(11,236
|
)
|
|
$
|
(6,277
|
)
|
|
$
|
51,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below reconciles net loss excluding impairments for the third
quarter of 2015.
|
|
|
|
|
|
|
|
For the Three Months Ended
September 30,
|
|
(Stated in Thousands, Except per Unit Data)
|
|
|
2015
|
|
|
|
|
(unaudited)
|
|
Net income (loss) attributable to common unit holders
|
|
|
|
$
|
(25,514
|
)
|
Pasadena asset impairment
|
|
|
|
|
32,510
|
|
Net income attributable to common unit holders excluding the
Pasadena asset impairment
|
|
|
|
$
|
6,996
|
|
Net loss per unit attributable to common unit holders
|
|
|
|
$
|
(0.66
|
)
|
Per unit Pasadena asset impairment
|
|
|
|
|
0.84
|
|
Net income per unit attributable to common unit holders excluding
the Pasadena asset impairment
|
|
|
|
$
|
0.18
|
|
Weighted-Average Common Units Outstanding
|
|
|
|
|
38,928
|
|
|
|
|
|
|
|
|
The table below reconciles net loss excluding impairments for the nine
months ended September 30, 2015 and 2014.
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30,
|
|
(Stated in Thousands, Except per Unit Data)
|
|
|
2015
|
|
2014
|
|
|
|
|
(unaudited)
|
|
Net loss attributable to common unit holders
|
|
|
|
$
|
(82,772
|
)
|
|
$
|
(8,904
|
)
|
Pasadena asset impairment
|
|
|
|
|
134,282
|
|
|
—
|
|
Pasadena goodwill impairment
|
|
|
|
—
|
|
|
|
27,202
|
|
Net income attributable to common unit holders excluding the
Pasadena asset and goodwill impairments
|
|
|
|
$
|
51,510
|
|
|
$
|
18,298
|
|
Net loss per unit attributable to common unit holders
|
|
|
|
$
|
(2.14
|
)
|
|
$
|
(0.23
|
)
|
Per unit Pasadena asset impairment
|
|
|
|
|
3.45
|
|
|
—
|
|
Per unit Pasadena goodwill impairment
|
|
|
|
—
|
|
|
|
0.70
|
|
Net income per unit attributable to common unit holders excluding
the Pasadena asset and goodwill impairments
|
|
|
|
$
|
1.31
|
|
|
$
|
0.47
|
|
Weighted-Average Common Units Outstanding
|
|
|
|
|
38,919
|
|
|
|
38,895
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below reconciles net loss attributable to the Pasadena
Facility excluding impairments for the third quarter of 2015.
|
|
|
|
|
|
For the Three Months Ended
September 30,
|
|
(Stated in thousands)
|
|
2015
|
|
|
|
|
(unaudited)
|
|
Net loss for Pasadena
|
|
|
$
|
(33,187
|
)
|
Pasadena asset impairment
|
|
|
|
32,510
|
|
Net income (loss) attributable to Pasadena excluding the Pasadena
asset impairment
|
|
|
$
|
(677
|
)
|
|
|
|
|
|
|
The table below reconciles net income (loss) attributable to the
Pasadena facility excluding impairments for the nine months ended
September 30, 2015 and 2014.
|
|
|
|
|
|
For the Nine Months Ended September 30,
|
|
(Stated in thousands)
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
|
Net loss for Pasadena
|
|
|
$
|
(132,550
|
)
|
|
$
|
(44,545
|
)
|
Pasadena asset impairment
|
|
|
|
134,282
|
|
|
—
|
|
Pasadena goodwill impairment
|
|
|
—
|
|
|
|
27,202
|
|
Net income (loss) attributable to Pasadena excluding the Pasadena
asset and goodwill impairments
|
|
|
$
|
1,732
|
|
|
$
|
(17,343
|
)
|
|
|
|
|
|
|
|
|
|
|
About Rentech Nitrogen, L.P.
Rentech Nitrogen (www.rentechnitrogen.com)
was formed by Rentech, Inc. to own, operate and expand its nitrogen
fertilizer business. Rentech Nitrogen’s assets consist of two fertilizer
production facilities owned by its operating subsidiaries. The East
Dubuque facility is located in the northwestern corner of Illinois, and
uses natural gas as a feedstock to produce primarily anhydrous ammonia
and UAN solution for sale to customers in the Mid Corn Belt. The
Pasadena facility is located in Pasadena, Texas, along the Houston Ship
Channel; it uses ammonia and sulfur as feedstocks to produce ammonium
sulfate and ammonium thiosulfate fertilizers, and sulfuric acid. Rentech
Nitrogen is the largest producer of synthetic granulated ammonium
sulfate fertilizer in North America, with sales in the United States and
internationally.
Forward-Looking Statements
This press release contains forward-looking statements about matters
such as: our forecasts for 2015; the outlook for our nitrogen fertilizer
businesses; trends in the pricing and demand for our nitrogen fertilizer
products; the ability to consummate the proposed transaction with CVR
Partners; and our ability to sell or spin-out the Pasadena facility.
These statements are based on management’s current expectations. 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
Rentech Nitrogen’s prior press releases and periodic public filings with
the Securities and Exchange Commission, which are available on Rentech
Nitrogen’s website at www.rentechnitrogen.com.
The forward-looking statements in this press release are made as of the
date of this press release. Rentech Nitrogen 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.
Qualified Notice to Nominees and Brokers
This release is intended to serve as a qualified notice to nominees and
brokers as provided for under Treasury Regulation Section 1.1446-4(b).
Please note that 100 percent of Rentech Nitrogen’s distributions to
foreign investors are attributable to income that is effectively
connected with a United States trade or business. Accordingly, Rentech
Nitrogen’s distributions to foreign investors are subject to federal
income tax withholding at the highest effective tax rate.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006577/en/
Source: Rentech Nitrogen Partners, L.P.
Rentech Nitrogen Partners, L.P.
Julie Dawoodjee Cafarella,
310-571-9800 Vice president of Investor Relations and Communications [email protected]
|
|