-----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, UpZgWxVf3NsdN8u20jKVtvrMvxlMZ1BE/qz9iXNRoc8GJ3zT8ZrbQl5C8p+uVMni ScbarA0lUvp2FpsvfAjDCQ== 0000914760-05-000123.txt : 20050428 0000914760-05-000123.hdr.sgml : 20050428 20050428114109 ACCESSION NUMBER: 0000914760-05-000123 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050428 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050428 DATE AS OF CHANGE: 20050428 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: 05779048 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_8kmar28.txt MARCH 28, 2005 - -------------------------------------------------------------------------------- UNITED STATES 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): April 28, 2005 TERRA NITROGEN COMPANY, L.P. (Exact name of registrant as specified in its charter) Delaware 1-10877 73-1389684 (State or other jurisdiction of (Commission File Number) (IRS Employer 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) - -------------------------------------------------------------------------------- ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On April 28, 2005, Terra Nitrogen Company, L.P. issued a press release setting forth Terra Nitrogen Company, L.P.'s first quarter 2005 earnings. A copy of the press release is furnished herewith as Exhibit 99.1. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits 99.1 Press Release issued April 28, 2005 reporting first quarter results. 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 28, 2005 EX-99.1 2 tn36797_8kmar28x99.txt PRESS RELEASE [TERRA LOGO] Terra Industries Inc. 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 FIRST QUARTER RESULTS; DECLARES CASH DISTRIBUTION Sioux City, Iowa (April 28, 2005)--Terra Nitrogen Company, L.P. (TNCLP) (NYSE symbol: TNH) today reported net income of $17.2 million, or $.91 per limited partnership unit, on revenues of $105.9 million for the first quarter ended March 31, 2005. This compares with a net income of $12.0 million, or $.64 per unit, on revenues of $108.3 million for the 2004 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, 2005, of $.55 per limited partnership unit payable May 25, 2005, to holders of record as of May 9, 2005. TNCLP's natural gas unit costs for the 2005 first quarter, net of about $3.9 million of cost increases from forward purchase contracts, were 21 percent higher than those incurred in the 2004 first quarter. Ammonia and nitrogen solutions selling prices for the 2005 first quarter were 10 and 19 percent higher, respectively, than 2004 first quarter selling prices. The higher prices were due mainly to an improved global nitrogen products supply/demand balance. TNCLP's forward purchase contracts at March 31, 2005, fixed prices for about 29 percent of its next 12 months' natural gas requirements at about $1.0 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 on Form 10-K. # # # 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, ------------------------------ 2005 2004 ----------- ------------ Product revenues $ 105,742 $ 108,213 Other income 161 71 ----------- ------------ Total revenues 105,903 108,284 ----------- ------------ Cost of goods sold 82,554 91,136 Depreciation and amortization 4,092 3,172 ----------- ------------ Total cost of sales 86,646 94,308 ----------- ------------ Total gross profit 19,257 13,976 Operating expenses 2,278 2,173 Interest expenses--net (227) (199) ----------- ------------ Net income $ 17,206 $ 12,002 =========== ============ Earnings per limited partnership unit $ 0.91 $ 0.64 =========== ============ 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 2005 2004 ---------------------------- ---------------------------- Sales Average Sales Average QUARTER Volumes Unit Price Volumes Unit Price (000 tons) (per ton)* (000 tons) (per ton)* ---------- ---------- ---------- ---------- Ammonia 87 $300 81 $272 Nitrogen Solutions 535 132 503 111 Urea 122 182 * After deducting outbound freight costs.
TERRA NITROGEN COMPANY, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
March 31, -------------------------------------- 2005 2004 ------------ ------------ ASSETS Cash and short-term investments $ 89,651 $ 48,480 Accounts receivable 25,715 21,720 Inventories 20,126 27,946 Other current assets 12,391 5,826 ------------ ------------ Total current assets 147,883 103,972 Property, plant and equipment, net 79,918 82,706 Other assets 13,550 8,691 ------------ ------------ Total assets $ 241,351 $ 195,369 ============ ============ LIABILITIES Short-term note and current portion of long-term debt $ 59 $ 58 Accounts payable and accrued liabilities 7,481 10,562 Customer prepayments 70,317 38,241 ------------ ------------ Total current liabilities 77,857 48,861 Long-term debt 8,200 8,200 Other liabilities 22 1,659 ------------ ------------ Total liabilities 86,079 58,720 PARTNERS' EQUITY 155,272 136,649 ------------ ------------ Total liabilities and partners' equity $ 241,351 $ 195,369 ============ ============
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