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RENTECH, INC.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2017 10-Q, filed Nov 9, 2017. Its latest SEC filing is a 8-K from Apr 9, 2018.

The sections below describe the company as of the FY2016 annual report.

What Did They Do?

Provides wood-yard operations and chipping services and sells wood chips to pulp, paper and packaging makers; also sells wood pellets for residential and commercial heating and utility power generation.

How Did They Make Money?

Customers pay per ton for Fulghum's processing work; the company also sells wood chips, bark and pellets, with product sales made when customers take ownership upon shipment.

FY2016 revenue

Who Were Their Customers?

Pulp, paper and packaging manufacturers contract with Fulghum for wood-yard and processing work; its South American operations also sell chips and bark to industrial customers. Wood pellets serve residential and commercial heating markets and utility power generation.

Did Revenues Turn Into Profits?

Yes. Its net income in FY2016 was larger than its revenue, but spent more cash than it brought in: free cash flow was −$30.3M.

Operating income, FY2016
−115% of revenue
▲ +243% (Loss) vs FY2015 (−$50.7M, −32%)
Net income, FY2016
115% of revenue
▲ Now profitable vs FY2015 (−$153M, −98%)
Free cash flow, FY2016
−20% of revenue
▼ Now a loss vs FY2015 ($25.3M, 16%)

How Were They Changing?

Since the FY2016 annual report
Latest quarter: Q3 FY2017, the three months to Sep 30, 2017
Revenue
▼ −10%
vs $38.6M in Q3 FY2016
Net income
▲ +362% (Loss)
vs −$8.7M in Q3 FY2016
  • Apr 9, 2018 Court confirmed Rentech's liquidation plan; Atikokan subsidiary entered bankruptcy The plan provides for cancellation of company equity and transfer of assets to a liquidation trust.
  • Feb 21, 2018 Rentech completed sales of Fulghum and NEWP assets
  • Feb 7, 2018 Rentech completed the Atikokan asset sale
  • Dec 21, 2017 Rentech filed for Chapter 11 and agreed to sell three businesses The sale agreements covered Fulghum, Atikokan and New England wood-pellet assets.

Shrank. Revenue fell 42% in 4 years, from $261.6M in FY2012 to $150.7M in FY2016, about 13% a year.

Fertilizer operations exited The older report describes Rentech holding a stake in a nitrogen-fertilizer partnership; the latest says the Pasadena facility was sold and the partnership merged into CVR, taking fertilizer operations out of its described business.

Canadian pellet production narrowed The older report described Canadian pellet plants under development, with most output planned for utility contracts; the latest says Wawa was idled and Atikokan production was cut to what its contract required.

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