Rentech (RTK) saw its loss narrow to $10.04 million, or $0.43 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $23.02 million, or $1.06 a share. Revenue during the quarter dropped 9.88 percent to $38.60 million from $42.83 million in the previous year period. Gross margin for the quarter stood at negative 2.06 percent as compared to a positive 13.43 percent for the previous year period. Operating margin for the quarter stood at negative 33.90 percent as compared to a negative 18.70 percent for the previous year period.
Operating loss for the quarter was $13.09 million, compared with an operating loss of $8.01 million in the previous year period.
Commenting on the quarter, Keith Forman, president and chief executive officer of Rentech, stated, "We completed the previously announced replacements of problematic conveyors and other maintenance and repairs at our Atikokan and Wawa plants in the third quarter. Atikokan is consistently operating at approximately 90% of capacity and we expect the plant to operate at an annualized rate of production of approximately 100,000 metric tons of pellets until such time that we have an economic justification to replace the last remaining bottleneck conveyors. The new conveyors at Wawa are functioning as expected, with the plant producing at an annualized rate of approximately 150,000 metric tons of pellets. We are working to resolve some equipment and operating issues as we execute on our plan to ramp production at Wawa until we reach full capacity (400,000 to 450,000 metric tons annually), which is expected in late 2017."
Working capital remains almost stableWorking capital of Rentech remained almost stable for the quarter at $35.90 million, when compared with the previous year period. Current ratio was at 1.64 as on Sep. 30, 2016, up from 1.27 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 47 days for the quarter from 123 days for the last year period. Days sales outstanding were almost stable at 65 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 34 days for the quarter compared with 111 days for the previous year period. At the same time, days payable outstanding went down to 52 days for the quarter from 53 for the same period last year.
Debt comes down significantly
Rentech has recorded a decline in total debt over the last one year. It stood at $125.93 million as on Sep. 30, 2016, down 30.24 percent or $54.60 million from $180.52 million on Sep. 30, 2015. Total debt was 26.79 percent of total assets as on Sep. 30, 2016, compared with 24.84 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
