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ARCADIAN PARTNERS, L.P. REPORTS FIRST QUARTER EARNINGS

 MEMPHIS, Tenn., April 26 /PRNewswire/ -- Arcadian Partners, L.P. (NYSE: UAN), reported today that first quarter operating income was $15.5 million and net income was $10.4 million or 38 cents per unit. As previously reported in the Form 8-K filed on April 6, 1993, management expected first quarter operating and net income results to approximate the results achieved during the first quarter of 1991, rather than the record results achieved during the first quarter of 1992. The record results for first quarter of 1992 were due, in part, because of exceptionally low natural gas costs and tight world supplies of nitrogen products.
 Doug Campbell, president and chief executive officer of Arcadian Corporation said: "Lower production rates and increased natural gas costs caused the first quarter earnings to be below the prior year level. However, we expect to see selling prices for our upgraded nitrogen products continue to improve as we enter the second quarter spring planting season which we expect will partially offset the impact of continuing higher natural gas costs. For example, we have successfully raised the selling price of nitrogen solutions twice in the last ten days in response to higher natural gas costs. In addition, our production rates are expected to improve over first quarter levels. We have no scheduled turnarounds and our Memphis facility is back on line at reduced levels. These improvements and the benefits of our recent Trinidadian plant acquisition should improve our second quarter operating performance over the first quarter levels."
 Arcadian expects that for the second quarter ending June 30, 1993, reflecting only the historical business (and not the Trinidadian or proposed BP nitrogen business acquisitions), that net sales should increase over the prior year period. This increase is expected to result from increased selling prices combined with stable sales volumes. Management currently believes that current trends and conditions will continue and that second quarter operating income for 1993 for the historical business will reflect the seasonal patterns of 1991.
 Doug Campbell further commented that: "We will make a full minimum quarterly distribution ("MQD") to our Preference Unitholders for the first quarter on May 14, 1993, and increase the reserve account for "MQD" to $29 million, more than enough to fund three quarters of distributions to our Preference Unitholders. We are confident that we will continue to make the 60.5 cent "MQD" ($2.42 on an annual basis) to our Preference Unitholders."
 Net sales for the first quarter improved by 10.6 percent over prior year levels, due to a 7.7 percent increase in sales volumes (which included products purchased for resale) and a 2.9 percent improvement in selling prices. The volume improvement is primarily the result of increased sales of nitrogen solutions as dealers fill inventory positions in anticipation of greater demand for nitrogen solutions this spring season. Selling prices improved due to favorable supply/demand fundamentals and successful upward adjustment of industry-wide selling prices for nitrogen products resulting from higher natural gas costs.
 The favorable margin impact of increased sales was more than offset by the adverse effects of lower production rates and increased natural gas costs. The lower production rates, as compared with the previous year, resulted from three weeks of scheduled turnaround maintenance at the Augusta plant, unscheduled downtime of five weeks at the Memphis plant, and the loss of production at the Lake Charles plant. The Memphis facility has resumed production at reduced rates and is scheduled to return to full production rates in the fall of 1993.
 Arcadian Partners, L.P., is a recognized leader in the manufacture and marketing of upgraded nitrogen fertilizers and related products in the United States. Arcadian Corporation is the general partner of Arcadian Partners, L.P.
 ARCADIAN PARTNERS, L.P.
 STATEMENTS OF INCOME
 (In Thousands, Except Per Unit Amounts)
 Actual Pro Forma (A)
 Three Months Three Months
 Ended Ended
 March 31, 1993 March 31, 1992
 Net sales $155,584 $140,662
 Cost of sales 132,314 106,439
 Gross Profit 23,270 34,223
 Selling, general and administrative
 expenses 7,812 7,022
 Operating income 15,458 27,201
 Interest expense, net 4,876 5,158
 Other, net 182 133
 Net Income (loss) before General Partners
 interest 10,400 21,910
 Less 2 percent General Partners interest (206) (438)
 Net income allocable to limited partners $10,194 $21,472
 Net income per limited partner unit $0.38 $0.80
 Summary of Limited Partnership Units:
 Preference Units (Publicly Traded
 NYSE: UAN) 14,772,727 14,772,727
 Common Units (Held By Arcadian
 Corporation) 11,954,545 11,954ation of defer
red financing costs $200 $219
 Depreciation and amortization 8,366 9,299
 Purchase of property, plant and equipment,
 net 3,662 (B) 3,009
 Expenditures for rotational plant maintenance 6,838 55
 (A) The pro forma results are presented as if the partnership was formed as of Jan. 1, 1991. Certain adjustments have been made to Arcadian Corporation's (The Predecessor) historical operating results, primarily to exclude operations retained by the predecessor ((the contribution of those retained assets to the overall operations of the predecessor was immaterial (less than 5 percent ) in all periods presented)), the additional expenses associated with being a publicly traded partnership, interest expense based upon pro forma capitalization of the partnership and the elimination of income tax expense as the partnership is not subject to income taxes.
 (B) Excludes March 24, 1993 purchase of Fertrin/TTUC Trinidadian plant assets.
 -0- 4/26/93
 /CONTACT: Gwaine W. Ton, Director of Investor Relations and Financial Services, Arcadian Partners, L.P. 901-758-5366/
 (UAN)


CO: Arcadian Partners, L.P. ST: Tennessee IN: AGR SU: ERN

SB-MM -- CH009 -- 0940 04/26/93 16:23 EDT
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Date:Apr 26, 1993
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