SIOUX CITY, Iowa, April 27 /PRNewswire/ --
Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net income
of $4.3 million on revenues of $69.9 million for the first quarter ended
March 31, 2000. This compares with a net loss of $2.0 million on revenues of
$54.1 million for the 1999 first quarter. Net income per limited partnership
unit was $0.23 for the 2000 first quarter compared with a net loss of $0.11
per unit in the 1999 first quarter.
TNCLP's return to profitability was due to higher selling prices and
nitrogen solutions sales volumes partially offset by higher natural gas costs.
First quarter 2000 ammonia, nitrogen solutions and urea prices were 28%, 1%
and 33%, respectively, higher than the first quarter 1999 prices. Nitrogen
solutions sales were 601,000 tons or 28% higher than the 1999 first quarter
sales volumes. This increase is attributable to lower industry-wide supplies
caused primarily by production curtailments, including another producer's
permanent shutdown of two plants.
TNCLP announced that there would be no cash distribution for the quarter
ended March 31, 2000. There were also no cash distributions in 1999. Cash
distributions are dependent on TNCLP's earnings, working capital requirements
and capital expenditures. TNCLP's quarterly earnings are usually highest in
the quarter ending June 30 due to the seasonal demand for fertilizer.
Quarterly earnings can also be affected by TNCLP's selling prices for nitrogen
products, natural gas costs and production levels and weather.
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
fertilizer products.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com , and by fax at no charge by calling
800-758-5804, code 437906.
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
(in thousands except per unit amounts)
Three Months Ended
March 31,
2000 1999
Product Revenues $69,716 $53,784
Other income 169 289
Total Revenues 69,875 54,073
Cost of Goods Sold 59,380 50,530
Depreciation and amortization 3,200 3,233
Total cost of sales 62,580 53,763
Total gross profit 7,305 310
Operating expenses 2,378 2,217
Interest expense - net 639 131
Net Income $4,288 $(2,038)
Earnings (loss) per limited
partnership unit $0.23 $(0.11)
The amount of net income allocable to the Limited Partners' interest is
based on the Partnership's net income and the proportionate share of cash
distributed to the Limited Partners and the General Partner.
Nitrogen Volumes and Prices
2000 1999
Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 128 132 131 104
UAN 601 62 470 61
Urea 128 121 127 91
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
($ in Thousands)
March 31,
2000 1999
ASSETS
Cash and short-term investments $5,859 $36
Accounts receivable 31,464 2,281
Inventories 38,010 50,179
Other current assets 1,179 1,316
Total current assets 76,512 53,812
Property, plant and equipment, net 154,125 164,241
Other assets 12,366 8,759
Total assets $243,003 $226,812
LIABILITIES
Short-term note and current
portion of long-term debt $19,867 $16,329
Accounts payable and
accrued liabilities 42,875 20,796
Total current liabilities 62,742 37,125
Long-term debt -- 7,655
Other liabilities 5,316 5,316
Total liabilities 68,058 50,096
PARTNERS' EQUITY 174,945 176,716
Total liabilities and
partners' equity $243,003 $226,812
SOURCE Terra Nitrogen Company, L.P.
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Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/106067.html or fax,
800-758-5804, ext. 106067
CONTACT:
Mark Rosenbury of Terra Nitrogen Company,
L.P., 712-279-8756
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