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 MEMPHIS, Tenn., July 27 /PRNewswire/ -- Arcadian Partners, L.P. (NYSE: UAN), reported today that 1993 second quarter operating income was $36.3 million and net income was $21.4 million or 79 cents per unit, compared with pro forma operating income of $26.2 million and net income of $20.9 million or 78 cents per unit for the same period in 1992.
 Doug Campbell, Arcadian Corporation's president and chief executive officer, stated: "Our improvement in operating income is the direct result of our recent acquisitions and fundamental improvements in our existing business. We were successful in recovering sharply increased natural gas costs in the markets for our nitrogen products. Through a lot of hard work by our employees, we continue to improve customer service and plant reliability."
 Net sales increased by 29 percent to $252.3 million primarily due to the March 26, 1993, acquisition of Fertilizers of Trinidad and Tobago Limited and Trinidad and Tobago Urea Company Limited (Trinidad acquisitions) and the May 11, 1993, acquisition of the nitrogen chemical business of BP Chemicals Inc. (Ohio acquisition). Selling prices for Arcadian's upgraded nitrogen fertilizers also improved over the 1992 second quarter levels, reflecting increased raw material costs. The delayed planting season also positively impacted the demand and selling prices for nitrogen solutions (UAN), Arcadian's leading nitrogen product.
 Overall, Arcadian's operating income was up by $10.1 million or 39 percent over 1992 pro forma second quarter levels.
 Administrative expense increased by $1.1 million and interest expense increased by $9.1 million over last year's levels as a result of the Trinidad and Ohio acquisitions. Interest expense includes a one-time charge of $2.8 million for the write-off of financing fees related to interim financing of the Trinidad acquisition.
 Arcadian Partners, L.P. is a leading independent producer and international marketer of nitrogen chemicals and fertilizers. Arcadian Corporation is the general partner of Arcadian Partners, L.P.
 (In Millions, Except Per Unit Amounts)
 Actual Pro Forma(A) Actual Pro Forma(A)
 Three Months Three Months Six Months Six Months
 Ended Ended Ended Ended
 June 30, 1993 June 30, 1992 June 30, 1993 June 30, 1992
 Net sales $252.3 $196.0 $407.9 $336.7
 Cost of sales 207.2 162.1 339.5 268.5
 Gross profit 45.1 33.9 68.4 68.2
 Selling, general
 and administrative
 expenses 8.8 7.7 16.6 14.7
 Operating income 36.3 26.2 51.8 53.5
 Interest expense,
 net 14.4 5.3 19.3 10.5
 Other (income)
 expense, net (0.2) (0.2) --- ---
 Income (loss)
 before income
 taxes and
 interest 22.1 21.1 32.5 43.0
 Income tax
 provision 0.4 --- 0.4 ---
 Income before
 interest 21.7 21.1 32.1 43.0
 Minority interest
 in earnings of
 partnership (0.3) (0.2) (0.4) (0.4)
 Net income $21.4 $20.9 $31.7 $42.6
 Net income per
 limited partner
 unit $0.79 $0.78 $1.17 $1.58
 Summary of Limited
 Partnership Units:
 Preference Units
 (Publicly Traded
 NYSE: UAN) 14.8 14.8 14.8 14.8
 Common Units
 (Held by Arcadian
 Corporation) 11.9 11.9 11.9 11.9
 Total Outstanding
 Limited Partner-
 ship Units 26.7 26.7 26.7 26.7
 Amortization of
 financing costs $3.2(B) $0.2 $3.4(B) $0.4
 Depreciation and
 amortization 11.7 9.3 20.1 18.6
 Purchase of
 property, plant
 and equipment,
 net 9.3(C) 2.1 11.7(C) 5.1
 Expenditures for
 rotational plant
 maintenance 1.2 0.9 8.0 1.0
 (A) The Pro Forma results are presented as if the partnership was formed as of Jan. 1, 1992. Certain adjustments have been made to Arcadian Corporation's (the predecessor) historical operating results, primarily to exclude operations retained by the predecessor, the additional expenses associated with being a publicly traded partnership and interest expense based upon pro forma capitalization of the partnership.
 (B) Includes $2.8 million in non-recurring financing costs associated with the Trinidad acquisitions.
 (C) Excludes acquisition of Trinidad and Ohio nitrogen fertilizer facilities.
 -0- 7/27/93
 /CONTACT: Gwaine W. Ton, Director of Investor Relations and Financial Services, Arcadian Partners, L.P., 901-758-5366/

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

MM-CM -- CH012 -- 6428 07/27/93 16:41 EDT
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Publication:PR Newswire
Date:Jul 27, 1993

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