Boston, MA 05/14/2014 (wallstreetpr) – Rentech, Inc. (NASDAQ:RTK) announced its first quarter result on Tuesday May 13, 2014 in the presence of the Chief Executive Officer and President, D, Hunt Ramsbottom. The appreciable quarter that ended on March 31, 2014 brought variations and progress in various fields, said the CEO.
Consolidated revenue of the business:
The result of Rentech, Inc. (NASDAQ:RTK) reflects positive vibes among the company and its subsidiaries as wood fibre processing unit, Rentech Nitrogen unit, etc. The financial result of the company also includes Fulghum Fibres’ performance. The consolidated revenues generated were $84.8 million, which a year ago was $59.6 million. The revenue for this quarter includes $28.6 million from Fulghum Fibres and $56.3 million from Rentech Nitrogen unit. However, this segment witnessed a decrease of $3.3 million from the previous year.
Gross profit margin fails to increase:
The gross profit for Rentech, Inc. (NASDAQ:RTK) was $17.9 million, which again failed to maintain a continuous increase. Out of the gross profit $4.1 million came from Fulghum Fibres and $13.8 from the nitrogen unit. The Rentech Nitrogen segment again slipped down significantly by $9 million compared to the prior year. Consolidated adjusted EBITDA increased $0.3 million this quarter. In 1Q2014, Fulghum Fibres contributed $4.5 million and Rentech Nitrogen $11.5 million.
CEO of Rentech said:
The CEO said that the company announced its strategy when it acquired Fulgum Fibres. Nevertheless, Fulgum Fibres has proved its excellence to run a stable business as expected. He continued that the company’s Canadian Wood pellet project is on progression and would reflect its outcome very soon. The company targets to acquire the New England Wood pellet, which will turn the fibre’s portfolio, estimates the officials.
Depressing performance by Rentech Nitrogen unit:
Needless to say, Rentech, Inc. (NASDAQ:RTK)’s Nitrogen unit performed very low this quarter, which influenced the economic statistics of the company a lot. However, a better story is that this very segment improved a lot over the last quarter of 2013 and shows the potentiality to perform for the forthcoming days. Now let’s see how much improvement it can bring to the business!
