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Rentech Nitrogen Partners, L.P. Announces Results for Third Quarter 2013



  Rentech Nitrogen Partners, L.P. Announces Results for Third Quarter 2013

Business Wire

LOS ANGELES -- November 7, 2013

Rentech Nitrogen Partners, L.P. (NYSE: RNF), which manufactures and sells
nitrogen fertilizer products including ammonia, UAN solution and ammonium
sulfate, today announced its results for the three and nine months ended
September 30, 2013.

Commenting on the results for the period, D. Hunt Ramsbottom, CEO of Rentech
Nitrogen GP, LLC, stated, “We reported cash distributions that were in line
with our expectations reflected in our guidance of August 8. Although prices
for our products, and all nitrogen products, have declined significantly from
earlier in the year, we expect the nitrogen market to improve during the
fourth quarter as we believe buyers are deferring additional purchases until
this year’s late harvest is completed. This could lead to improved pricing and
volumes as we move into fall and spring application periods.”

Mr. Ramsbottom added, “I’m pleased that the turnaround at the East Dubuque
Facility was completed safely and on time. We’re now in the commissioning
phase of our ammonia production and storage capacity expansion project at the
facility. We expect to commence the ammonium sulfate expansion and reliability
enhancement projects at our Pasadena Facility next month. The additional
volume from these expansion projects should position us well in 2014.”

Financial Highlights

Three months ended September 30, 2013

Revenues for the three months ended September 30, 2013 were $93.3 million,
compared to $60.1 million for the comparable period in the prior year.
Revenues increased due to the contribution of $42.7 million from the facility
in Pasadena, Texas (the Pasadena Facility), partially offset by a 16% decline
in revenues from the facility in East Dubuque, Illinois (the East Dubuque
Facility). Product prices in the current period were lower than in the prior
year, having been negatively affected by a delayed spring application season
and significantly higher urea exports from China offered at competitive
prices. Lower ammonia volumes in the third quarter were partly a consequence
of holding a portion of inventory to meet the expected increase in demand for
the fall 2013 application season, as production was restricted due to the
October turnaround of the East Dubuque Facility. Deliveries of UAN were higher
than expected, shifting revenue from the fourth quarter to the current period.

During the three months ended September 30, 2013, Rentech Nitrogen generated
an operating loss of $18.3 million, compared to $29.2 million of operating
income during the comparable period in the prior year. The primary cause of
the operating loss in the current period was a loss of $30.0 million due to
the impairment of goodwill related to the Pasadena Facility. The operating
loss was also increased by lower gross profits at the East Dubuque Facility,
negative gross margin at the Pasadena Facility that reflected a write-down of
product inventories, and the addition of selling, general and administrative
(SG&A) expenses and depreciation and amortization expenses for the Pasadena
Facility.

Adjusted EBITDA for the three months ended September 30, 2013 was $16.1
million, compared to $32.9 million in the corresponding period in 2012.
Adjusted EBITDA excluding Partnership level expenses totaled $18.0 million for
the current period. The East Dubuque Facility and the Pasadena Facility
reported $25.8 million and ($7.8) million in EBITDA, respectively, during the
three months ended September 30, 2013. Further explanation of Adjusted EBITDA,
a non-GAAP financial measure, has been included below in this press release.

Gross margin for the three months ended September 30, 2013 was 18%, compared
to 58% for the same period last year. Gross margin at the East Dubuque
Facility was 50% for the current period, compared to 58% for the prior-year
period, due to lower product prices and higher natural gas prices, partially
offset by lower depreciation expense. Gross loss margin at the Pasadena
Facility was 19% for the current period, which reflected inventory write-downs
and lower margins on sales of products that were produced from higher-cost raw
materials purchased earlier in the year. During the quarter, the Partnership
incurred a write-down of ammonium sulfate inventories of approximately $5.0
million because the costs of raw materials purchased in prior months and
reflected in inventory were higher than current and projected market prices.
Gross loss margin excluding the inventory write-down at the Pasadena Facility
was 8%, while gross margin at Rentech Nitrogen excluding the inventory
write-down was 23%.

SG&A expenses were $4.1 million for the three months ended September 30, 2013,
compared to $5.5 million for the prior-year period. The decrease was primarily
due to a $2.0 million decline in Partnership level expenses for business
development and unit-based compensation, and lower fees for professional
services and unused credit facility fees at the East Dubuque Facility,
partially offset by the addition of $1.2 million of SG&A expenses from the
Pasadena Facility.

Due to a reduced outlook for profitability at the Pasadena Facility compared
to projections made when the Partnership acquired Agrifos, Rentech Nitrogen
performed an impairment test for goodwill and determined that the carrying
amount of the reporting unit exceeded its fair value. As a result, the
Partnership recorded a loss due to goodwill impairment of $30.0 million at its
Pasadena Facility during the period. The $30.0 million charge is the
Partnership’s best estimate of the probable loss and is subject to further
adjustments as the goodwill impairment analysis is finalized at fiscal
year-end.

Interest expense was $4.0 million for the three months ended September 30,
2013, compared to $0 for the prior-year period. The increase was attributable
to debt incurred for the purchase of the Pasadena Facility and to fund
expansion projects at the East Dubuque and Pasadena Facilities.

Rentech Nitrogen realized a non-cash gain of $0.3 million for the three months
ended September 30, 2013 as a result of a decrease in the potential earn-out
consideration related to the acquisition of Agrifos. The reduction in fair
value was primarily due to lower results in 2013 caused by a delayed and
abbreviated spring application season and higher levels of urea exports from
China, suppressing product prices, and reduced expectations for profits from
the Pasadena Facility.

Net loss was $22.3 million or ($0.57) per basic unit, for the current period.
Excluding the loss on goodwill impairment of $30.0 million and gain on fair
value adjustment to earn-out consideration of $0.3 million, net income to
common unitholders for the current period was $7.5 million or $0.19 per basic
unit. This compares to net income of $28.8 million or $0.75 per basic unit for
the same period last year.

Nine months ended September 30, 2013

Revenues for the nine months ended September 30, 2013 were $256.8 million,
compared to $169.2 million for the comparable period in the prior year.
Revenues increased due to the contribution of $110.0 million of revenues from
the Pasadena Facility, partially offset by a 13% decline in revenues from the
East Dubuque Facility. Results in the current period were significantly
impacted by unfavorable weather. In the spring of this year, product
deliveries from both facilities were reduced and delayed by wet weather which
caused a delayed and abbreviated planting season and lower product demand and
prices. Significant increases in exports of urea from China also contributed
to the downward pressure on nitrogen pricing. Furthermore, in anticipation of
lower production due to the October turnaround of the East Dubuque Facility, a
portion of ammonia inventory was held to meet the expected increase in demand
for the fall 2013 application season. These effects were partially offset by
higher deliveries of UAN in the third quarter of 2013, shifting expected
revenue from the fourth quarter to the current period.

During the nine months ended September 30, 2013, Rentech Nitrogen generated
operating income of $32.7 million compared to $90.3 million during the
comparable period in the prior year. Operating income in the current period
was reduced by lower gross profits at the East Dubuque Facility, negative
gross margins that reflected write-downs of product inventories and loss on
goodwill impairment at the Pasadena Facility, and the addition of SG&A
expenses and depreciation and amortization expenses for the Pasadena Facility.

Adjusted EBITDA for the nine months ended September 30, 2013 was $75.1
million, compared to $99.7 million in the corresponding period in 2012.
Adjusted EBITDA excluding Partnership level expenses, totaled $81.6 million
for the current period. The East Dubuque Facility and the Pasadena Facility
reported $84.2 million and ($2.6) million in Adjusted EBITDA, respectively,
during the nine months ended September 30, 2013. Further explanation of
Adjusted EBITDA, a non-GAAP financial measure, has been included below in this
press release.

Gross margin for the nine months ended September 30, 2013 was 31%, compared to
61% for the same period last year. Gross margin at the East Dubuque Facility
was 55% for the current period, compared to 61% for the prior-year period,
primarily due to lower ammonia sales volume and prices, and higher natural gas
costs, partially offset by lower depreciation expense. Gross loss margin at
the Pasadena Facility was 2% for the current period, which reflected inventory
write-downs and sales of products that were produced from higher-cost raw
materials. During the nine months ended September 30, 2013, the Partnership
incurred write-downs of sulfur and sulfuric acid inventories of approximately
$0.5 million, and of ammonium sulfate inventories of approximately $6.8
million due to lower market prices. Gross margin excluding the inventory
write-down at the Pasadena Facility was 5%, while gross margin at Rentech
Nitrogen excluding the inventory write-down was 34%.

SG&A expenses were $13.7 million for the nine months ended September 30, 2013,
compared to $12.0 million for the prior-year period. The increase was
primarily due to the addition of $3.8 million of SG&A expenses from the
Pasadena Facility, partially offset by a $1.0 million decrease in Partnership
level expenses and a $1.1 million decline in expenses at the East Dubuque
Facility primarily due to lower unused credit facility fees and legal
expenses.

Due to a reduced outlook for profitability at the Pasadena Facility compared
to projections made when the Partnership acquired Agrifos, Rentech Nitrogen
performed an impairment test for goodwill and determined that the carrying
amount of the reporting unit exceeded its fair value. As a result, the
Partnership recorded a loss due to goodwill impairment of $30.0 million at its
Pasadena Facility during the period. The $30.0 million charge is the
Partnership’s best estimate of the probable loss and is subject to further
adjustments as the goodwill impairment analysis is finalized at fiscal
year-end.

Interest expense was $9.7 million for the nine months ended September 30,
2013, compared to $0.2 million for the prior-year period. The increase was
attributable to debt incurred for the purchase of the Pasadena Facility and
expansion projects at the East Dubuque and Pasadena Facilities.

Rentech Nitrogen realized a non-cash gain of $4.9 million for the nine months
ended September 30, 2013 as a result of a decrease in the potential earn-out
consideration related to the acquisition of Agrifos. The reduction in fair
value was primarily due to lower results in 2013 caused by a delayed and
abbreviated spring application season and higher levels of urea exports from
China, suppressing product prices, and reduced expectations for profits from
the Pasadena Facility.

Net income was $21.5 million or $0.54 per basic unit, for the current period.
Excluding the loss on goodwill impairment of $30.0 million, loss on debt
extinguishment of $6.0 million and the gain on fair value adjustment to
earn-out consideration of $4.9 million, net income allocated to common
unitholders for the current period was $52.3 million or $1.34 per basic unit.
This compares to net income of $89.4 million or $2.34 per basic unit for the
same period last year.

Outlook

A routine inspection during the bi-annual turnaround at the East Dubuque
Facility in late October identified the need to repair the foundation of one
of the three existing syngas compressors, taking that compressor out of
service. This unplanned repair will require the ammonia plant to run below the
planned post-expansion capacity of 1,020 tons per day, at a rate of
approximately 790 tons per day, until repairs are completed. Since the problem
has just been identified, the repair schedule is in development, but is
estimated not to exceed 90 days or cost more than $2 million in operating and
capital expenses, which will affect the fourth quarter of 2013 and first
quarter of 2014. The East Dubuque Facility is expected to operate at its
expanded production rates in 2014, following completion of the repair of the
foundation.

For the Pasadena Facility, the Partnership’s current view for the balance of
2013 is based on lower forecasts of ammonium sulfate deliveries and prices
compared to the August 8 guidance, with prices only slightly higher than the
most recent business conducted. Based on these prices, EBITDA for the Pasadena
Facility is expected to improve from the third quarter, which was affected by
inventory write-downs, but to remain negative for the fourth quarter and the
full year.

As a result of these factors, Rentech Nitrogen revised guidance on October 28,
stating that the cash distribution for the fourth quarter of 2013 could be as
low as zero.

The Partnership provided guidance for the following additional key operating
metrics, and progress against its 2013 guidance updated on October 28:

                                        
                                         Locked-in or Delivered
East Dubuque Facility
                                          
Deliveries^1
Ammonia                                   
Tons                                     106,000 or 90%
Average price                            $649
UAN                                       
Tons                                     289,000 or 99%
Average price                            $293
                                          
Natural gas in cost of sales^2            
(million MMBtus)                         10.7 or 100%
Average cost per million MMBtus           
(including transportation costs)         $4.10
                                          
Pasadena Facility
                                          
Deliveries^1
Ammonium sulfate                          
Tons                                     401,000 or 83%
Average price                            $254
                                          
Sulfuric acid^2                           
Tons                                     119,000 or 70%
Average price                            $94
                                          
Ammonium thiosulfate^2                    
Tons                                     42,000 or 70%
Average price                            $189
                                          

^1Through October 31, 2013.

^2Through September 30, 2013.

The Partnership provided the following guidance for production, deliveries,
and raw materials consumption in 2013 and 2014 by product:

                                           
Production (in thousand tons)     2013E     2014E
East Dubuque Facility
Ammonia                           273       365
UAN                               287       315
Urea (liquid and granular)        176       190
Nitric Acid                       116       120
Ammonium nitrate                  129       135
CO[2]                             82        75
                                             
Pasadena Facility
Ammonium sulfate                  492       670
Sulfuric acid                     500       560
Ammonium thiosulfate              56        55
                                             

                                              
Deliveries (in thousand tons)        2013E     2014E
East Dubuque Facility
Ammonia                              118       190
UAN                                  291       315
Urea (liquid and granular)           50        55
Nitric Acid                          15        15
CO[2]                                83        75
                                                
Pasadena Facility
Ammonium sulfate                     482       670
Sulfuric acid                        171       95
Ammonium thiosulfate                 60        55
                                                
Consumption                          2013E     2014E
Ammonia (in thousand tons)           132       180
Natural gas (in million MMBtus)      10.7      12.5
Sulfur (in thousand tons)            179       210
Sulfuric acid (in thousand tons)     365       500
                                                

The Pasadena Facility’s margins are expected to improve and EBITDA is
anticipated to be positive in 2014. The benefits of lower input costs, already
visible in the market, should begin to be realized in early 2014.
Additionally, third-party forecasters show modest improvements in prices for
ammonium sulfate in 2014 relative to current pricing levels, and the variable
margin expected to be earned on incremental volumes should contribute to
increased profitability.

Third Quarter Cash Distribution

On October 24, 2013, Rentech Nitrogen announced its cash distribution related
to its results for the third quarter of 2013, of $0.27 per unit. The
distribution is payable on November 14, 2013 to unitholders of record as of
November 7, 2013. The calculation of cash available for distribution has been
included below in this press release.

Conference Call with Management

Rentech Nitrogen will hold a conference call today, November 7, 2013 at 1:30
p.m. PST, during which senior management will review the Partnership’s
financial results for this period and provide an update on the business.
During the call, management will refer to a presentation that will be posted
shortly before the call within the Investor Relations portion of the website
under the Presentation section. 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 the pass code 6179090#. 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 4:00 p.m. PST on
November 7 through 11:59 p.m. PST on November 17. The replay teleconference
will be available by dialing 888-843-7419 or 630-652-3042 and the audience
passcode 6179090#.

Note: The financial statements and key operating metrics below include results
of the Pasadena Facility for the three and nine months ended September 30,
2013 only, as the closing of the acquisition of Agrifos LLC, occurred on
November 1, 2012.

 
Rentech Nitrogen Partners, L.P.
Consolidated Statements of Operations
(Amounts in Thousands, Except per Unit Data)
                                                                    
                     For the Three Months            For the Nine Months
                     Ended September 30,             Ended September 30,
                     2013            2012            2013            2012
                     (unaudited)     (unaudited)     (unaudited)     (unaudited)
                                                                                
Revenues             $ 93,279        $  60,112       $ 256,799       $ 169,228
                                                                      
Cost of Sales          76,459           25,077         177,412         65,975   
                                                                      
Gross Profit           16,820           35,035         79,387          103,253  
                                                                      
Operating
Expenses
Selling, general
and                    4,080            5,508          13,722          11,982
administrative
expense
Depreciation and       1,018            90             2,874           726
amortization
Loss on goodwill       30,029           -              30,029          -
impairment
Other                  28               237            36              284      
Total Operating        35,155           5,835          46,661          12,992   
Expenses
Operating Income       (18,335 )        29,200         32,726          90,261   
(Loss)
                                                                      
Other Income
(Expense), Net
Interest expense       (3,996  )        (39    )       (9,725  )       (181    )
Loss on debt           -                -              (6,001  )       -
extinguishment
Gain on fair
value adjustment       309              -              4,920           -
to earn-out
consideration
Other expenses,        -                (313   )       (7      )       (632    )
net
                                                                      
Total Other            (3,687  )        (352   )       (10,813 )       (813    )
Expenses, Net
                                                                      
Income (Loss)
Before Income          (22,022 )        28,848         21,913          89,448
Taxes
                                                                      
Income tax             233              -              438             -
expense
                                                                      
Net Income           $ (22,255 )     $  28,848       $ 21,475        $ 89,448   
(Loss)
                                                                      
Basic Net Income
(Loss) per
Common Unit          $ (0.57   )     $  0.75         $ 0.54          $ 2.34     
Allocated to
Common Unit
Holders
                                                                      
Diluted Net
Income (Loss)
per Common Unit      $ (0.57   )     $  0.75         $ 0.54          $ 2.34     
Allocated to
Common Unit
Holders
                                                                      
Weighted-Average
Units Used to
Compute Net
Income (Loss)
per Common Unit:
Basic                  38,849           38,260         38,843          38,254   
                                                                      
Diluted                38,849           38,292         38,934          38,259   
                                                                      

 
Rentech Nitrogen Partners, L.P.
Statements of Operations by Business Segment
(Stated in Thousands)
                                                      
                        For the Three Months         For the Nine Months
                        Ended September 30,          Ended September 30,
                        2013            2012         2013            2012
Revenue
East Dubuque            $ 50,572        $ 60,112     $ 146,838       $ 169,228
Pasadena                  42,707          -            109,961         -
Total Revenues          $ 93,279        $ 60,112     $ 256,799       $ 169,228
                                                                      
Gross Profit (Loss)
East Dubuque            $ 25,114        $ 35,035     $ 81,353        $ 103,253
Pasadena                  (8,294  )       -            (1,966  )       -
Total Gross Profit      $ 16,820        $ 35,035     $ 79,387        $ 103,253
                                                                      
Selling, General
and Administrative
Expense
East Dubuque            $ 981           $ 1,661      $ 3,423         $ 4,480
Pasadena                  1,227           -            3,811           -
Total Selling,
General and             $ 2,208         $ 1,661      $ 7,234         $ 4,480
Administrative
Expense
                                                                      
Depreciation and
Amortization
East Dubuque            $ 46            $ 90         $ 152           $ 726
Pasadena                  972             -            2,722           -
Total Depreciation
and Amortization        $ 1,018         $ 90         $ 2,874         $ 726
Recorded in
Operating Expenses
East Dubuque            $ 1,666         $ 3,589      $ 6,348         $ 8,730
Pasadena                  1,702           -            3,159           -
Total Depreciation
and Amortization        $ 3,368         $ 3,589      $ 9,507         $ 8,730
Recorded in Cost of
Sales
Total Depreciation      $ 4,386         $ 3,679      $ 12,381        $ 9,456
and Amortization
                                                                      
Other Operating
Expenses
East Dubuque            $ 28            $ 237        $ 36            $ 284
Pasadena                  30,029          -            30,029          -
Total Other             $ 30,057        $ 237        $ 30,065        $ 284
Operating Expenses
                                                                      
Operating Income
(Loss)
East Dubuque            $ 24,059        $ 33,047     $ 77,742        $ 97,763
Pasadena                  (40,522 )       -            (38,528 )       -
Total Operating         $ (16,463 )     $ 33,047     $ 39,214        $ 97,763
Income (Loss)
                                                                      
Interest Expense
East Dubuque            $ -             $ 39         $ -             $ 181
Pasadena                  -               -            6               -
Total Interest          $ -             $ 39         $ 6             $ 181
Expense
                                                                      
Net Income (Loss)
East Dubuque            $ 24,069        $ 33,022     $ 77,383        $ 97,625
Pasadena                  (40,765 )       -            (38,915 )       -
Total Net Income        $ (16,696 )     $ 33,022     $ 38,468        $ 97,625
(Loss)
                                                                      

                                                    
                      For the Three Months           For the Nine Months
                      Ended September 30,            Ended September 30,
                      2013            2012           2013           2012
Reconciliation of
Segment Net
Income (Loss) to
Consolidated Net
Income (Loss):
Segment Net           $ (16,696 )     $ 33,022       $ 38,468       $ 97,625
Income (Loss)
Partnership and
Unallocated
Expenses Recorded
as Selling,             (1,872  )       (3,847 )       (6,488 )       (7,502 )
General and
Administrative
Expenses
Partnership and
Unallocated
Income (Expenses)       309             -              (1,081 )       232
Recorded as Other
Expense
Unallocated
Interest Expense
and Loss on             (3,996  )       (327   )       (9,726 )       (907   )
Interest Rate
Swaps
Income Tax              -               -              302            -       
Benefit
Consolidated Net      $ (22,255 )     $ 28,848       $ 21,475       $ 89,448  
Income (Loss)
                                                                     

 
Rentech Nitrogen Partners
Selected Balance Sheet Data
(Stated in Thousands)
                                                         
                                      As of               As of
Consolidated Balance Sheet Data       September 30,       December 31,
                                      2013                2012
Cash and Cash Equivalents             $   85,321          $   55,799
Working Capital                       $   70,495          $   23,218
Construction in Progress              $   113,372         $   61,147
Total Assets                          $   453,577         $   376,645
Total Debt                            $   320,000         $   193,290
Total Partners' Capital               $   50,367          $   109,404
                                                           

Key Operating Statistics:

                                                     
                          For the Three Months        For the Nine Months
                          Ended September 30,         Ended September 30,
                          2013          2012          2013           2012
Production Tons (in
thousands)
East Dubuque
Facility:
Ammonia                     77            76          227              231
Ammonia Available for
Sale (included in           32            37          102              112
line above)
UAN                         86            77          236              238
Other Products              85            76          238              228
(excludes CO[2])
Pasadena Facility:
Ammonium Sulfate            122           -           374              -
Sulfuric Acid               113           -           367              -
Ammonium Thiosulfate        12            -           43               -
Delivered Tons (in
thousands)
East Dubuque
Facility:
Ammonia                     24            31          76               101
UAN                         117           110         237              236
Other Products              14            14          49               40
(excludes CO[2])
Pasadena Facility:
Ammonium Sulfate            162           -           330              -
Sulfuric Acid               39            -           119              -
Ammonium Thiosulfate        1             -           41               -
                                                                      
Average Price per
Delivered Ton
East Dubuque
Facility:
Ammonia                   $ 530         $ 620         $ 675          $ 666
UAN                       $ 269         $ 295         $ 299          $ 332
Pasadena Facility:
Ammonium Sulfate          $ 238           -           $ 269            -
Sulfuric Acid             $ 86            -           $ 94             -
Ammonium Thiosulfate      $ 158           -           $ 189            -
                                                                      
Input Costs
East Dubuque
Facility:
Natural Gas                                        
Natural Gas Used in
Production (Million         2.8           2.8            8.2           8.4
MMBtus)
Average Natural Gas
Cost per MMBtu,           $ 4.16        $ 3.18         $ 4.17        $ 3.51
including
transportation cost
Natural Gas Cost in
Cost of Sales               2.9           3.1            7.3           8.0
(Million MMBtus)
Average Natural Gas
Cost per MMBtu,           $ 4.29        $ 3.14         $ 4.15        $ 3.63
including
transportation cost
                                                                      
Input Costs
Pasadena Facility:
Ammonia
Ammonia Used in
Production (Thousand        32            -              100           -
Tons)
Ammonia in Cost of          41            -              89            -
Sales (Thousand Tons)
Sulfur
Sulfur Used in
Production (Thousand        40            -              132           -
Tons)
Sulfur in Cost of           53            -              131           -
Sales (Thousand Tons)
On-Stream Rates^1:
East Dubuque
Facility:
Ammonia                     100.0 %       100.0 %        100.0 %       100.0 %
UAN                         100.0 %       100.0 %        99.3  %       100.0 %
Pasadena Facility:
Ammonium Sulfate            79.8  %       -              81.8  %       -
Sulfuric Acid               77.9  %       -              90.8  %       -
                                                                      

^1The 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 that period.

Disclosure Regarding Non-GAAP Financial Measures

Net income excluding loss on goodwill impairment, loss on debt extinguishment,
and gain on fair value adjustment to earn-out contingent consideration is
included to provide management and investors with net income results for
Rentech Nitrogen that are more easily compared to the prior year period.

Adjusted EBITDA is defined as net income (loss) plus interest expense and
other financing costs, loss on goodwill impairment, loss on debt
extinguishment, loss on interest rate swaps, income tax expense and
depreciation and amortization, net of gain in fair value adjustment to
earn-out consideration. We calculate cash available for distribution as used
in this table as Adjusted EBITDA plus non-cash compensation expense and
distribution of cash reserves, less the sum of maintenance capital
expenditures not funded by financing proceeds, net interest expense and other
debt service. 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.

Adjusted EBITDA and cash available for distribution should not be considered
alternatives to net income, operating income, net cash provided by operating
activities or any other measure of financial performance or liquidity
presented in accordance with GAAP. Adjusted EBITDA and cash available for
distribution 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 net income (loss) attributable to Rentech Nitrogen,
excluding loss on goodwill impairment, loss on debt extinguishment and gain on
fair value adjustment to earn-out contingent consideration, to net income for
the three and nine months ended September 30, 2013 (stated in thousands,
except per share data).

                                                          
                                For the Three Months       For the Nine Months
                                Ended September 30,        Ended September 30,
                                2013                       2013
Net Income (Loss)               $    (22,255    )          $    21,475
Less: Income Attributable            -                          326        
to Unvested Units
Net Income (Loss)
Attributable to Common Unit     $    (22,255    )          $    21,149     
Holders
Loss on Goodwill Impairment     $    30,029                $    30,029
Loss on Debt Extinguishment          -                          6,001
Gain on Fair Value
Adjustment to Earn-out               (309       )               (4,920    )
Consideration
Net Income Attributable to
Common Unit Holders
Excluding Loss on Goodwill
Impairment, Loss on Debt        $    7,465                 $    52,259     
Extinguishment and Gain on
Fair Value Adjustment to
Earn-out Consideration
                                                            
Net Income (Loss) per Unit
Attributable to Common Unit     $    (0.57      )          $    0.54
Holders
Loss per Unit on Goodwill            0.77                       0.77
Impairment
Loss per Unit on Debt                -                          0.15
Extinguishment
Gain per Unit on Fair Value
Adjustment to Earn-out               (0.01      )               (0.13     )
Consideration
Net Income per Unit
Attributable to Common Unit
Holders Excluding Loss on
Goodwill Impairment, Loss       $    0.19                  $    1.34       
on Debt Extinguishment and
Gain on Fair Value
Adjustment to Earn-out
Consideration
                                                            
Weighted-Average Common              38,849                     38,843
Units Outstanding
                                                            

The table below reconciles consolidated Adjusted EBITDA and cash available for
distribution to net income (loss) for the three months ended September 30,
2013 (stated in thousands, except per unit data).

                  
                   For the Three Months Ending September 30, 2013
                   East           Pasadena        Partnership
                   Dubuque        Facility        Level           Consolidated
                   Facility
Net Income         $ 24,068       $ (40,764 )     $  (5,559 )     $  (22,255 )
(Loss)
Plus: Net
Interest             -              -                3,996           3,996
Expense
Plus: Loss on
Goodwill             -              30,029           -               30,029
Impairment
Plus: Income         (9     )       242              -               233
Tax Expense
Plus:
Depreciation         1,712          2,674            -               4,386
and
Amortization
Less: Gain on
Fair Value
Adjustment to        -              -                (309   )        (309    )
Earn-out
Consideration
Adjusted           $ 25,771       $ (7,819  )     $  (1,872 )     $  16,080
EBITDA
Plus: Non-cash
Compensation         -              -                233             233
Expense
Less:
Maintenance          (2,199 )       -                -               (2,199  )
Capital
Expenditures^1
Less: Net
Interest             -              -                (3,996 )        (3,996  )
Expense and
Debt Service
Plus:
Distribution
of Cash
Reserves for         -              -                371             371      

Working
Capital
Cash Available
for                $ 23,572       $ (7,819  )     $  (5,264 )     $  10,489   
Distribution
Cash Available
for                $ 0.61         $ (0.20   )     $  (0.14  )     $  0.27     
Distribution,
per Unit
Common Units         38,849         38,849           38,849          38,849
Outstanding
                                                                   

^1Excludes $2.2 million of maintenance capital expenditures at the Pasadena
Facility funded by debt.

The table below reconciles consolidated Adjusted EBITDA to net income (loss)
for the nine months ended September 30, 2013 (stated in thousands).

                      
                       For the Nine Months Ended September 30, 2013
                       East Dubuque   Pasadena      Partnership   Consolidated
                       Facility       Facility      Level
Net Income (Loss)      $   77,383     $ (38,915 )   $ (16,993 )   $  21,475
Plus: Net Interest         -            6             9,719          9,725
Expense
Plus: Loss on              -            30,029        -              30,029
Goodwill Impairment
Plus: Loss on Debt         -            -             6,001          6,001
Extinguishment
Less: Gain on Fair
Value Adjustment to        -            -             (4,920  )      (4,920  )
Earn-out
Consideration
Plus: Loss on              -            -             7              7
Interest Rate Swaps
Plus: Income Tax           360          380           (302    )      438
Expense (Benefit)
Plus: Depreciation         6,500        5,881         -              12,381   
and Amortization
Adjusted EBITDA        $   84,243     $ (2,619  )   $ (6,488  )   $  75,136   
                                                                   

The table below reconciles Adjusted EBITDA to net income for the three and
nine months ended September 30, 2012 (stated in thousands).

                                                          
                                 For the Three             For the Nine Months
                                 Months
                                 Ended September 30,       Ended September 30,
                                 2012                      2012
                                                            
Net income                       $       28,848            $    89,448
Add:
Net Interest Expense                     25                     138
Income Tax Expense                       -                      -
Depreciation and                         3,679                  9,456
Amortization
Loss on Debt                             -                      -
Extinguishment
Loss on Interest Rate                    327                    907
Swaps
Gain on Fair Value
Adjustment to Earn-out                   -                      -
Consideration
Other                                    -                      (232      )
Adjusted EBITDA                  $       32,879            $    99,717     
                                                                           

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, and 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 forecasted EBITDA and cash available for distribution for the quarter
ending December 31, 2013; the outlook for our nitrogen fertilizer businesses;
trends in the pricing and demand for our fertilizer products; the timing and
cost of repairs for our East Dubuque facility; and the timing and impact of
our expansion projects. 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
Rentech Nitrogen’s prior press releases and periodic public filings with the
Securities and Exchange Commission, which are available via 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 and 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.

Contact:

Rentech Nitrogen Partners, L.P.
Julie Dawoodjee Cafarella
Vice President of Investor Relations and Communications
310-571-9800
ir@rnp.net
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