-----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, T1WYn5JlLpI3zuifVTN2aojHL7E406RMBoAmTV5VpTQb+p94FGNbyET5zhSCsDQh Mb6aSCELx0gct58YR71j+w== 0000914760-04-000009.txt : 20040129 0000914760-04-000009.hdr.sgml : 20040129 20040129141401 ACCESSION NUMBER: 0000914760-04-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040129 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040129 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: 04551754 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 tn36797_8k12904.txt JANUARY 29, 2004 ================================================================================ 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): December 31, 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 January 29, 2004 announcing fourth quarter 2003 earnings by Terra Nitrogen Company, L.P. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On January 29, 2004, Terra Nitrogen Company, L.P. issued a press release setting forth Terra Nitrogen Company, L.P.'s fourth quarter 2003 earnings. A copy of the press release is filed herewith as Exhibit 99.1 and is hereby incorporated by reference. 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: January 29, 2004 EX-99.1 3 tn36797_x9912904.txt PRESS RELEASE DATED JANUARY 29, 2004 Terra Industries Inc. [logo] TERRA 600 Fourth Street 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 FOURTH QUARTER RESULTS; ANNOUNCES CASH DISTRIBUTION Sioux City, Iowa (Jan. 29, 2004)--Terra Nitrogen Company, L.P. (TNCLP) (NYSE symbol: TNH) today reported net income of $17.5 million, or $.93 per limited partnership unit, on revenues of $129.8 million for the fourth quarter ended Dec. 31, 2003. This compares with a net loss of $1.1 million, or $.06 per unit, on revenues of $88.5 million for the 2002 fourth quarter. The net loss for the year ended Dec. 31, 2003, was $35.3 million, or $1.87 per unit, on revenues of $405.4 million compared to net income of $6.2 million, or $.33 per unit, on revenues of $326.9 million for 2002. TNCLP also announced a cash distribution for the quarter ended Dec. 31, 2003, of $.25 per limited partnership unit payable Feb. 25, 2004, to holders of record as of Feb. 9, 2004. Cash distributions depend on TNCLP's earnings, which are driven primarily by product selling prices, sales volumes, natural gas costs, production levels, 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. Results for the year ended Dec. 31, 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's 2003 fourth quarter results as compared to those of the 2002 fourth quarter reflect similar sales volumes and higher selling prices, partially offset by higher natural gas costs. Unit selling prices for ammonia, nitrogen solutions and urea increased by 45, 40 and 42 percent, respectively, over fourth quarter 2002 prices. TNCLP's natural gas unit costs in the 2003 fourth quarter were 32 percent higher than in the comparable 2002 period. Forward pricing contracts increased TNCLP's fourth quarter 2003 natural gas costs by $5.2 million. As of Dec. 31, 2003, 33 percent of TNCLP's expected 2004 natural gas requirements had been priced at about $5.6 million below published market prices at that date. TNCLP's 2003 results as compared to those of 2002 reflect significantly higher selling prices, partially offset by higher natural gas costs and lower sales volumes. Ammonia, nitrogen solutions and urea selling prices for the year were 58, 39 and 45 percent higher, respectively, than for 2002. The lower sales volumes reflect a three-month production shutdown during 2003 at TNCLP's Blytheville facility due to adverse market conditions. TNCLP expects to operate the Blytheville facility through at least April 2004. TNCLP's natural gas unit costs in 2003 were 67 percent higher than in 2002. Natural gas hedging activities increased TNCLP's 2003 natural gas costs by $3.0 million compared to spot prices. 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. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands except per-unit amounts) (unaudited)
Three Months Ended Twelve Months Ended December 31 December 31 ------------------------------- ----------------------------- 2003 2002 2003 2002 -------------- ---------- ----------- ------------ Product revenues $ 129,519 $ 88,280 $ 404,552 $ 325,919 Other income 323 185 800 1,003 -------------- ---------- ----------- ------------ Total revenues 129,842 88,465 405,352 326,922 -------------- ---------- ----------- ------------ Cost of goods sold 107,588 83,851 379,096 297,886 Depreciation and amortization 2,358 3,283 11,566 13,107 -------------- ---------- ----------- ------------ Total cost of sales 109,946 87,134 390,662 310,993 -------------- ---------- ----------- ------------ Total gross profit 19,896 1,331 14,690 15,929 Operating expenses 2,263 2,197 9,087 9,439 Impairment of long-lived assets -- -- 40,655 -- Interest expenses--net 93 226 216 311 -------------- ---------- ----------- ------------ Net income (loss) $ 17,540 $ (1,092) $ (35,268) $ 6,179 ============== ========== =========== ============ Earnings (loss) per limited partnership unit $ 0.93 $ (0.06) $ (1.87) $ 0.33 ============== ========== =========== ============ 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 Volumes Unit Price Volumes Unit Price (000 tons) ($/ton) (000 tons) ($/ton) ---------- ------- ---------- ------- Ammonia 132 249 107 172 Nitrogen Solutions 633 102 636 73 Urea 121 179 108 126 2003 2002 --------------------------- --------------------------- Sales Average Sales Average YEAR Volumes Unit Price Volumes Unit Price (000 tons) ($/ton) (000 tons) ($/ton) ---------- ------- ---------- ------- Ammonia 336 242 394 153 Nitrogen Solutions 2,280 97 2,475 70 Urea 390 168 450 116
TERRA NITROGEN COMPANY, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
December 31, ------------------------------------- 2003 2002 ----------- ----------- ASSETS Cash and short-term investments $ 39,596 $ 35,738 Accounts receivable 36,612 26,760 Inventories 19,364 20,103 Other current assets 6,344 6,659 ----------- ----------- Total current assets 101,916 89,260 Property, plant and equipment, net 84,691 126,056 Other assets 9,631 10,708 ----------- ----------- Total assets $ 196,238 $ 226,024 =========== =========== LIABILITIES Current portion of long-term debt and capital lease obligations $ 58 $ 53 Accounts payable, accrued liabilities and pension liabilities 54,028 42,834 ----------- ----------- Total current liabilities 54,086 42,887 Long-term debt and capital lease obligations 8,275 8,333 Other liabilities 1,600 5,316 ----------- ----------- Total liabilities 63,961 56,536 PARTNERS' EQUITY 132,277 169,488 ----------- ----------- Total liabilities and partners' equity $ 196,238 $ 226,024 =========== ===========
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