SIOUX CITY, Iowa, Oct. 21 /PRNewswire/ -- Terra Nitrogen Company, L.P.
(TNCLP) (NYSE: TNH) today reported net income of $35.9 million on revenues of
$82.0 million for the quarter ended September 30, compared with net income of
$37.1 million on revenues of $85.3 million for the comparable 1995 quarter.
For the nine months ended September 30, net income was $143.6 million on
revenues of $277.5 million, compared with net income of $130.7 million on
revenues of $279.3 million for the same period in 1995. Earnings per limited
partnership unit were $1.31 and $1.45 for the quarters ended September 30,
1996 and 1995, respectively, and $5.03 and $5.14 for the respective nine-month
periods. The amount of net income allocable to the limited partners' interest
is based on the proportionate share of cash distributed to the limited
partners and the general partner.
Third quarter earnings for 1996 were down slightly from the prior year
quarter due primarily to lower sales prices. Sales volumes for urea and
ammonia decreased 29% and 15%, respectively, while nitrogen solutions volumes
increased by 27% compared with the same period in 1995. Urea and ammonia
sales volumes declined primarily due to a turnaround performed at the
Blytheville plant and reduced shipments for wheat pre-plant application.
Nitrogen solutions sales volumes increased due to the late spring planting
season which continued into the third quarter and to increased fall dealer
demand. Natural gas costs were slightly lower during the third quarter of
1996 compared with the third quarter of 1995.
TNCLP also announced today a cash distribution for the quarter ended
September 30, 1996 of $1.77 per senior preference unit, payable to unitholders
of record as of November 6, 1996. The same distribution on the common units
was also announced. Distributions to all unitholders will be made November
27, 1996. The $1.77 distribution includes the impact of TNCLP's participation
in an accounts receivable securitization facility which resulted in a one-time
acceleration of $.61 per unit in the distribution to senior and common
unitholders.
This is the twelfth consecutive quarter in which distributions on all
classes of units were made in excess of the $.605 per-unit minimum required
amount. TNCLP has paid at least the minimum distribution on all classes of
units since the partnership completed its initial public offering in December
1991. Distributions are dependent on TNCLP earnings which are traditionally
highest in the quarter ending June 30, due to the seasonal demand for
fertilizer. Earnings can also be affected by market prices for nitrogen
products, the cost of natural gas, industry production levels, business cycles
and weather.
TNCLP is one of the largest U.S. manufacturers and marketers of nitrogen
fertilizer products.
CHART:
Terra Nitrogen Company, L.P.
Consolidated Statements of Income
(in thousands, except per Unit amounts)
Three Months Ended
September 30,
1996 1995
Revenues $81,961 $85,285
Other income 296 189
Total net revenues 82,257 85,474
Cost of goods sold 44,572 45,608
Gross profit 37,685 39,866
Operating expenses (2,799) (3,748)
Operating income 34,886 36,118
Interest expense (112) (158)
Interest income 1,109 1,151
Net Income $35,883 $37,111
Net income per limited partnership unit: $1.31 $1.45
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.
Prior year amounts have been reclassified to conform to current year
presentation.
Nitrogen Volumes and Prices 1996 1995
Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) (ton) (000 tons) (ton)
Ammonia 104 $164 123 $173
UAN 585 85 460 92
Urea 94 160 132 165
Terra Nitrogen Company, L.P.
Consolidated Statements of Income
(in thousands, except per Unit amounts)
Nine Months Ended
September 30, 1996
1996 1995
Revenues $277,463 $279,311
Other income 480 411
Total net revenues 277,943 279,722
Cost of goods sold 129,495 137,526
Gross profit 148,448 142,196
Operating expenses (9,156) (13,604)
Operating income 139,292 128,592
Interest expense (358) (1,602)
Interest income 4,629 3,672
Net Income $143,563 $130,662
Net income per limited partnership unit: $5.03 $5.14
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.
Prior year amounts have been reclassified to conform to current year
presentation.
Nitrogen Volumes and Prices 1996 1995
Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) (ton) (000 tons) (ton)
Ammonia 311 $183 327 $206
UAN 1,731 95 1,522 95
Urea 312 180 358 186
Terra Nitrogen Company, L.P.
Consolidated Balance Sheets
(in thousands)
September 30,
1996 1995
Assets
Cash and cash equivalents $54,546 $43,019
Accounts receivable 8,546 41,912
Inventory 23,595 24,691
Prepaid expenses 3,643 5,604
Total current assets 90,330 115,226
Property, plant and equipment, net 172,827 174,196
Distribution reserve fund 18,480 18,480
Other assets 14,285 9,188
Total assets $295,922 $317,090
Liabilities and partners' capital
Accounts payable and accrued liabilities $31,368 $27,573
Current portion of long-term debt and
capital lease obligations 1,285 1,356
Total current liabilities 32,653 28,929
Long-term debt and capital lease obligations 3,585 4,907
Other long-term liabilities 1,060 1,060
Partners' capital 258,624 282,194
Total liabilities and partners' capital $295,922 $317,090
SOURCE Terra Nitrogen Company, L.P.
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CONTACT:
Paula Norton of Terra Nitrogen Company, L.P.,
712-277-5438
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