-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OO88d32lRKVp2W41+ACk8F843FXKUSQKUJVfOo1YBQ2tgDAtMKZ03xK2JiqVu+nt PzU+mGdt45W/uT3cCXs3tw== 0000914760-03-000221.txt : 20031030 0000914760-03-000221.hdr.sgml : 20031030 20031030124057 ACCESSION NUMBER: 0000914760-03-000221 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031030 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TERRA NITROGEN CO L P /DE CENTRAL INDEX KEY: 0000879575 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 731389684 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-43007 FILM NUMBER: 03965898 BUSINESS ADDRESS: STREET 1: TERRA CENTRE 600 FOURTH STREET STREET 2: PO BOX 6000 CITY: SIOUX CITY STATE: IA ZIP: 51102-6000 BUSINESS PHONE: 7122771340 MAIL ADDRESS: STREET 1: TERRA CENTER 600 FOURTH STREET STREET 2: PO BOX 6000 CITY: SIOUX CITY STATE: IA ZIP: 51102-6000 8-K 1 t36797nit_8k.txt OCTOBER 30, 2003 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of report (Date of earliest event reported): October 30, 2003 TERRA NITROGEN COMPANY, L.P. (Exact name of registrant as specified in its charter) Delaware 1-10877 73-1389684 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) Terra Centre 600 Fourth Street, P.O. Box 6000 Sioux City, Iowa 51102-6000 (712) 277-1340 (Address of Principal Executive Offices, including Zip Code) (Registrant's Telephone Number, Including Area Code) ================================================================================ ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Exhibit Number Description -------------- ----------- 99.1 Press Release dated October 30, 2003 announcing third quarter 2003 earnings by Terra Nitrogen Company, L.P. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 30, 2003, Terra Nitrogen Company, L.P. issued a press release setting forth Terra Nitrogen Company, L.P.'s third quarter 2003 earnings. A copy of the press release is filed herewith as Exhibit 99.1 and is hereby incorporated by reference. The information in this Form 8-K is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference in any other filing under the Securities Exchange Act or Securities Act of 1933 except as shall be expressly set forth by specific reference to this Form 8-K in such filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TERRA NITROGEN COMPANY, L.P. By: Terra Nitrogen Corporation Its: General Partner /s/ Mark A. Kalafut ----------------------------------------- Mark A. Kalafut Vice President, General Counsel and Corporate Secretary Date: October 30, 2003 EX-99.1 3 t36797nit_8kx99.txt PRESS RELEASE Terra Industries Inc. ------------ 600 Fourth Street [LOGO] Exhibit 99.1 P.O. Box 6000 ------------ Sioux City, IA 51102-6000 www.terraindustries.com ================================================================================ NEWS ================================================================================ For immediate release Contact: Mark Rosenbury (712) 279-8756 mrosenbury@terraindustries.com TERRA NITROGEN COMPANY, L.P. REPORTS THIRD QUARTER RESULTS Sioux City, Iowa (Oct. 30, 2003)--Terra Nitrogen Company, L.P. (TNCLP) (NYSE symbol: TNH) today reported a net loss of $1.0 million, or $0.05 per limited partnership unit, on revenues of $86.4 million for the third quarter ended Sept. 30, 2003. This compares with net income of $2.0 million, or $.11 per unit, on revenues of $76.2 million for the 2002 third quarter. For the first three quarters of 2003 the net loss was $52.8 million, or $2.80 per unit, on revenues of $275.5 million. This compares to net income of $7.3 million, or $.39 per unit, on revenues of $238.5 million in the first three quarters of 2002. Results for the first three quarters of 2003 include a $40.7 million charge for the impairment of TNCLP's Blytheville, Ark. long-lived assets. The impairment charge represents the carrying value of the Blytheville facility's long-lived assets that may not be realized from ongoing operations. TNCLP suspended production at the Blytheville facility in the 2003 third quarter; it resumed production on Sept. 29, 2003 in response to higher urea selling prices and strong seasonal demand. TNCLP expects Blytheville's production to continue through at least April 2004. TNCLP's general partner continues to evaluate how the Blytheville facility might be operated over the next few years. TNCLP's natural gas unit costs for the 2003 third quarter, including about $1.7 million of cost increases due to forward purchasing contracts, were 73 percent higher than those incurred in the 2002 third quarter. This increase was due to lower industry-wide natural gas inventories. TNCLP's third quarter ammonia, nitrogen solutions and urea sales selling prices for the 2003 third quarter were 68, 37 and 40 percent higher, respectively, than 2002 third quarter prices. The higher prices reflect lower ammonia and other nitrogen product supplies in response to higher gas costs. Ammonia, nitrogen solutions and urea sales volumes as compared to the 2002 third quarter were 13, 4 and 68 percent lower, respectively. TNCLP's forward purchase contracts at Sept. 30, 2003, fixed prices for about 32 percent of its next 12 months' natural gas requirements at about $5.5 million above the published forward market prices at that date. Except for the $40.7 million impairment charge, the reasons for the changes between TNCLP's 2003 and 2002 first three quarters' net income are essentially the same as those for the respective third quarters. Natural gas unit costs, net of about $2.2 million of cost reductions realized from forward purchasing contracts, were 83 percent higher. Ammonia, nitrogen solutions and urea selling prices were 61, 39 and 45 percent higher, respectively. Ammonia, nitrogen solutions and urea sales volumes were 29, 10 and 21 percent lower, respectively. TNCLP announced that there would be no cash distribution for the quarter ended Sept. 30, 2003. Cash distributions depend on TNCLP's earnings, which are driven primarily by product selling prices, sales volumes, natural gas costs and production levels, as well as working capital requirements and capital expenditures. TNCLP's quarterly earnings are usually highest in the quarter ending June 30 due to the seasonal demand for fertilizer. Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen fertilizer products. Information contained in this release, other than historical information, may be considered forward-looking. Forward-looking information reflects management's current views of future events and financial performance that involve a number of risks and uncertainties. The factors that could cause actual results to differ materially include, but are not limited to, the following: changes in financial markets, general economic conditions within the agricultural industry, competitive factors and price changes (principally nitrogen fertilizer selling prices and natural gas costs), changes in product mix, changes in the seasonality of demand patterns, changes in weather conditions, changes in governmental regulations and other risks described in the "Factors That Affect Operating Performance" section of TNCLP's current annual report. # # # Note: Terra Nitrogen Company, L.P. news announcements are also available on Terra Industries' web site, www.terraindustries.com. (Tables follow) TERRA NITROGEN COMPANY, L.P. CONSOLIDATED STATEMENTS OF INCOME (in thousands except per-unit amounts)
Three Months Ended Nine Months Ended September 30 September 30 -------------------------------- ------------------------------ 2003 2002 2003 2002 --------------- ----------- ------------- ------------- Product revenues $ 86,202 $ 76,001 $ 275,033 $ 237,639 Other income 223 163 477 818 --------------- ----------- ------------- ------------- Total revenues 86,425 76,164 275,510 238,457 --------------- ----------- ------------- ------------- Cost of goods sold 82,277 68,318 271,509 214,035 Depreciation and amortization 2,588 3,277 9,207 9,824 --------------- ----------- ------------- ------------- Total cost of sales 84,865 71,595 280,716 223,859 --------------- ----------- ------------- ------------- Total gross profit (loss) 1,560 4,569 (5,206) 14,598 Operating expenses 2,330 2,598 6,824 7,242 Impairment of long-lived assets -- -- 40,655 -- Interest expenses--net 189 (39) 123 84 --------------- ----------- ------------- ------------- Net income (loss) $ (959) $ 2,010 $ (52,808) $ 7,272 =============== =========== ============= ============= Earnings (loss) per limited partnership unit $ (0.05) $ 0.11 $ (2.80) $ 0.39 =============== =========== ============= =============
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. NITROGEN VOLUMES AND PRICES
2003 2002 ----------------------------- ------------------------------ Sales Average Sales Average QUARTER TO DATE Volumes Unit Price Volumes Unit Price (000 tons) ($/ton) (000 tons) ($/ton) ------------ ------------ ------------ ------------ Ammonia 72 232 83 138 UAN 571 96 594 70 Urea 32 171 100 122 2003 2002 ----------------------------- ------------------------------ Sales Average Sales Average YEAR TO DATE Volumes Unit Price Volumes Unit Price (000 tons) ($/ton) (000 tons) ($/ton) ------------ ------------ ------------ ------------ Ammonia 204 237 287 147 UAN 1,647 96 1,839 69 Urea 269 164 342 113
TERRA NITROGEN COMPANY, L.P. CONSOLIDATED BALANCE SHEETS (in thousands)
September 30 -------------------------------------- 2003 2002 ------------ ------------ ASSETS Cash and short-term investments $ 2,281 $ 14,462 Accounts receivable 22,398 27,090 Inventories 22,019 18,516 Other current assets 2,271 9,491 ------------ ------------ Total current assets 48,969 69,559 Property, plant and equipment, net 86,918 127,800 Other assets 10,390 7,696 ------------ ------------ Total assets $ 146,277 $ 205,055 ============ ============ LIABILITIES Short-term note and current of portion long-term debt $ 56 $ 53 Accounts payable and accrued liabilities 28,013 16,667 ------------ ------------ Total current liabilities 28,069 16,720 Long-term debt 8,290 8,347 Other liabilities 5,714 5,316 ------------ ------------ Total liabilities 42,073 30,383 PARTNERS' EQUITY 104,204 174,672 ------------ ------------ Total liabilities and partners' equity $ 146,277 $ 205,055 ============ ============
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