-----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, RGL+9yOORYynprO4WqKjf/UP2HJ2wtf/U34+mjQg/Oyktp4vShjZRDLNjOhYNsAI e9dXq3wQf9xCigxHnhP3Kw== 0000914760-04-000071.txt : 20040429 0000914760-04-000071.hdr.sgml : 20040429 20040429111345 ACCESSION NUMBER: 0000914760-04-000071 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040331 ITEM INFORMATION: FILED AS OF DATE: 20040429 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: 04763091 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_8kapril29.txt APRIL 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): March 31, 2004 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 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On April 29, 2004, Terra Nitrogen Company, L.P. issued a press release setting forth Terra Nitrogen Company, L.P.'s first quarter 2004 earnings. A copy of the press release is furnished herewith as Exhibit 99.1. 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: April 29, 2004 EX-99.1 2 tn36797_8kapril29x99.txt PRESS RELEASE [TERRA LOGO] Terra Industries Inc. ------------ 600 Fourth Street 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 FIRST QUARTER RESULTS; DECLARES CASH DISTRIBUTION Sioux City, Iowa (April 29, 2004)--Terra Nitrogen Company, L.P. (TNCLP) (NYSE symbol: TNH) today reported net income of $12.0 million, or $.64 per limited partnership unit, on revenues of $108.3 million for the first quarter ended March 31, 2004. This compares with a net loss of $7.0 million, or $.37 per unit, on revenues of $70.9 million for the 2003 first quarter. The profitability improvement was due to higher sales volumes and selling prices, partially offset by higher natural gas costs. TNCLP also announced a cash distribution for the quarter ended March 31, 2004, of $.25 per limited partnership unit payable May 25, 2004, to holders of record as of May 10, 2004. TNCLP's higher sales volumes over the 2003 period reflect strong 2004 customer demand and first quarter 2003 production curtailments due to a natural gas price spike in late February 2003. TNCLP's natural gas unit costs for the 2004 first quarter, net of about $3.2 million of cost reductions realized from forward purchase contracts, were 13 percent higher than those incurred in the 2003 first quarter. Ammonia, nitrogen solutions and urea selling prices for the 2004 first quarter were 24, 29 and 19 percent higher, respectively, than 2003 first quarter selling prices. The higher prices were due mainly to lower global ammonia and other nitrogen product supplies. TNCLP's forward purchase contracts at March 31, 2004, fixed prices for about 23.1 percent of its next 12 months' natural gas requirements at about $2.3 million below the published forward market prices at that date. 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 March 31 ----------------------------- 2004 2003 ---------- ----------- Product revenues $ 108,213 $ 70,855 Other income 71 82 ---------- ----------- Total revenues 108,284 70,937 ---------- ----------- Cost of goods sold 91,970 72,660 Depreciation and amortization 2,338 3,301 ---------- ----------- Total cost of sales 94,308 75,961 ---------- ----------- Total gross profit 13,976 (5,024) Operating expenses 2,173 2,019 Interest expenses--net (199) (10) ---------- ----------- Net income $ 12,002 $ (7,033) ========== =========== Earnings (loss) per limited partnership unit $ 0.64 $ (0.37) ========== ===========
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
2004 2003 ---------------------------- ---------------------------- Sales Average Sales Average QUARTER Volumes Unit Price Volumes Unit Price (000 tons) (per ton) (000 tons) (per ton) ---------- ---------- ---------- ---------- Ammonia 81 $272 50 $219 Nitrogen Solutions 503 111 438 86 Urea 122 182 102 153
TERRA NITROGEN COMPANY, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
March 31, ------------------------------------- 2004 2003 ----------- ----------- ASSETS Cash and short-term investments $ 48,480 $ 13,458 Accounts receivable 21,720 18,779 Inventories 27,946 43,863 Other current assets 5,826 2,743 ----------- ----------- Total current assets 103,972 78,843 Property, plant and equipment, net 82,706 123,616 Other assets 8,691 9,598 ----------- ----------- Total assets $ 195,369 $ 212,057 =========== =========== LIABILITIES Short-term debt $ 58 $ 56 Accounts payable and accrued liabilities 48,803 45,372 ----------- ----------- Total current liabilities 48,861 45,428 Long-term debt 8,200 8,200 Other liabilities 1,659 5,435 ----------- ----------- Total liabilities 58,720 59,063 PARTNERS' EQUITY 136,649 152,994 ----------- ----------- Total liabilities and partners' equity $ 195,369 $ 212,057 =========== ===========
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