Rentech Inc. has a market cap of $284.3 million; its shares were traded at around $1.29 with and P/S ratio of 2.2.
Highlight of Business Operations:Depreciation expense included in cost of sales from our nitrogen products manufacturing segment was $2,488,000 and $2,482,000 for the three months ended December 31, 2010 and 2009, respectively.
Accounts Receivable. During the first three months of fiscal 2011, accounts receivable increased by $7,026,000 due to rising sales prices and higher sales volume as compared to the first three months of fiscal 2010, when lower sales volume caused a decrease in accounts receivable of $2,050,000.
Deferred Revenue. We record deferred revenue on product pre-sale contracts prior to delivery of the product to the extent we receive cash payments under those contracts. Deferred revenue increased $17,028,000 during the three months ended December 31, 2010, versus a decrease of $6,538,000 during this same period in fiscal year 2010. The increase in the current fiscal year was due to substantial receipts of cash in December 2010, reflecting favorable payment terms in contracts for spring delivery of pre-sold product, whereas in the prior year, contracts for spring delivery did not require cash payments by December 31. The increase in deferred revenue for the three months ended December 31, 2010 was partially offset by delivery of product in the period related to previous product pre-sale contracts. The decrease in deferred revenue for the three months ended December 31, 2009 was due to product deliveries in the period related to fulfillment of product pre-sale contracts.
Proceeds from Sale of Available for Sale Securities. During the three months ended December 31, 2009, the Company sold, through a tender offer, $2,136,000 of available for sale securities with a book value of $1,894,000, which resulted in a net realized gain on sale of investments of $242,000. For the three months ended December 31, 2010, there were no such sales.
At December 31, 2010, our current assets totaled $112,427,000, including cash and cash equivalents of $84,586,000, of which $36,621,000 was held at REMC and was subject to the restrictions imposed by the 2010 Credit Agreement, as amended; and accounts receivable of $16,612,000. Our current liabilities were $85,581,000. We had long-term liabilities of $113,702,000, most of which related to our long-term convertible senior notes and debt under our 2010 Credit Agreement, as amended. REMCs income from continuing operations for the three months ended December 31, 2010 was $7,516,000 compared to a loss from continuing operations of $3,695,000 for the three months ended December 31, 2009. The Companys loss from continuing operations for the three months ended December 31, 2010 and 2009 was $5,881,000 and $15,475,000, respectively.
As of December 31, 2010 approximately $94.3 million aggregate offering price of securities was available to be sold under our shelf registration statement (including up to $43.7 million of common stock that may be sold under the Equity Distribution Agreement). This report shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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