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EX-12.1 - EXHIBIT 12.1 - RENTECH, INC.c96994exv12w1.htm
EX-23.2 - EXHIBIT 23.2 - RENTECH, INC.c96994exv23w2.htm
EX-99.1 - EXHIBIT 99.1 - RENTECH, INC.c96994exv99w1.htm
EX-23.1 - EXHIBIT 23.1 - RENTECH, INC.c96994exv23w1.htm
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 10, 2010
RENTECH, INC.
(Exact name of registrant as specified in its charter)
         
Colorado   1-15795   84-0957421
         
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (IRS Employer Identification No.)
     
10877 Wilshire Boulevard, Suite 600
Los Angeles, California
   
90024
     
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (310) 571-9800
10877 Wilshire Boulevard, Suite 710 Los Angeles, California 90024
(Former name or former address, if changed since last report.)
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:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 


 

Item 8.01 Other Events.
As discussed in Note 3 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2009 (the “2009 Form 10-K”), the Financial Accounting Standards Board has issued a new accounting standard relating to the accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) (“ASC 470-20”). We are required to adopt ASC 470-20 effective with our first quarter ended December 31, 2009. Among other things, ASC 470-20 requires us to reflect the application of the new accounting standard on a retrospective basis to our previously issued financial statements. Early adoption of ASC 470-20 was not permitted.
In compliance with ASC 470-20, we are re-issuing our historical financial statements included in the 2009 Form 10-K to reflect the required retrospective application of ASC 470-20. ASC 470-20 requires that issuers of applicable convertible debt shall separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. In April 2006, we issued $57.5 million aggregate principal amount of 4% convertible senior notes due in 2013 (the “Convertible Senior Notes”). The adoption of ASC 470-20 applies to the accounting for the 4.00% Convertible Senior Notes, and retrospective application to all periods presented is mandated by the new accounting standard. Upon adoption of ASC 470-20, the estimated effective interest rate on our 4.00% Convertible Senior Notes was 18.00% as of the time of issuance, which resulted in the recognition of a $30.5 million discount to the debt portion of these notes with an amount equal to that discount recorded in additional paid-in capital at the time of issuance. This discount is amortized as interest expense (non-cash) over the life of the 4.00% Convertible Senior Notes. Also, upon adoption of ASC 470-20, the original beneficial conversion feature of $875,000 and the related interest expense amortization were reversed.
The sole purpose of this Current Report on Form 8-K is to disclose our adoption of ASC 470-20. The adoption of ASC 470-20 affected prior period information as follows (in thousands, except per share amounts):
                         
    For the Year Ended September 30, 2009  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Interest expense
  $ 11,050     $ 3,049     $ 14,099  
Income (loss) from continuing operations
    2,956       (3,049 )     (93 )
Net income (loss)
    3,028       (3,049 )     (21 )
 
                       
Net income (loss) per common share:
                       
Basic
    0.02       (0.02 )     0.00  
Diluted
    0.02       (0.02 )     0.00  
                         
    For the Year Ended September 30, 2008  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Interest expense
  $ 5,442     $ 2,452     $ 7,894  
Loss from continuing operations
    (56,973 )     (2,452 )     (59,425 )
Net loss
    (56,882 )     (2,452 )     (59,334 )
 
                       
Net loss per common share:
                       
Basic
    (0.34 )     (0.02 )     (0.36 )
Diluted
    (0.34 )     (0.02 )     (0.36 )

 

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    For the Year Ended September 30, 2007  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Interest expense
  $ 2,430     $ 2,171     $ 4,601  
Loss from continuing operations
    (94,867 )     (2,171 )     (97,038 )
Net loss
    (91,717 )     (2,171 )     (93,888 )
 
                       
Net loss per common share:
                       
Basic
    (0.61 )     (0.01 )     (0.62 )
Diluted
    (0.61 )     (0.01 )     (0.62 )
                         
    For the Year Ended September 30, 2006  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Interest expense
  $ 2,402     $ 926     $ 3,328  
Loss from continuing operations
    (39,912 )     (926 )     (40,838 )
Net loss applicable to common stockholders
    (38,722 )     (926 )     (39,648 )
 
                       
Net loss per common share:
                       
Basic
    (0.30 )     (0.01 )     (0.31 )
Diluted
    (0.30 )     (0.01 )     (0.31 )
                         
    As of September 30, 2009  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Construction in progress
  $ 27,328     $ 709     $ 28,037  
Other assets and deposits (1)
    15,686       (1,009 )     14,677  
Long-term convertible debt to stockholders
    57,054       (19,337 )     37,717  
Additional paid-in capital
    293,299       27,635       320,934  
Accumulated deficit
    (246,227 )     (8,598 )     (254,825 )
     
(1)  
The “As Previously Reported” amount was adjusted for a reclassification of loan costs from long-term to current to conform to the first quarter ended December 31, 2009 presentation. These loan costs were not related to the convertible debt.
                         
    As of September 30, 2008  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Construction in progress
  $ 19,548     $ 412     $ 19,960  
Other assets and deposits
    8,309       (1,294 )     7,015  
Long-term convertible debt to stockholders
    56,929       (22,968 )     33,961  
Additional paid-in capital
    241,110       27,635       268,745  
Accumulated deficit
    (249,255 )     (5,549 )     (254,804 )

 

3


 

                         
    As of September 30, 2007  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Construction in progress
  $ 4,192     $ 101     $ 4,293  
Other assets and deposits
    6,923       (1,577 )     5,346  
Long-term convertible debt to stockholders
    56,804       (26,015 )     30,789  
Additional paid-in capital
    233,447       27,635       261,082  
Accumulated deficit
    (192,373 )     (3,097 )     (195,470 )
                         
    As of September 30, 2006  
    As     Effect of        
    Previously     adoption of     As  
    Reported     ASC 470-20     Adjusted  
Construction in progress
  $ 3,916     $ 1     $ 3,917  
Other assets and deposits
    5,647       (1,861 )     3,786  
Long-term convertible debt to stockholders
    56,679       (28,570 )     28,109  
Additional paid-in capital
    175,825       27,635       203,460  
Accumulated deficit
    (100,656 )     (926 )     (101,582 )
This Current Report on Form 8-K updates Items 1A, 6, 7 and 8 of, and Exhibit 12.1 to our 2009 Form 10-K to reflect the required retrospective application of the adoption of ASC 470-20 as discussed above. With the exception of the foregoing and certain reclassifications of sales commissions from revenue to cost of sales and a reclassification of loan costs from long-term to current to conform to the first quarter ended December 31, 2009 presentation, all other items of the 2009 Form 10-K remain unchanged. The Company has not updated any of its disclosures contained in the 2009 Form 10-K, except to the extent expressly provided above and the addition of a subsequent events note in Item 8.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
     
Exhibit No.   Description of the Exhibit
 
   
12.1
  Statement Regarding the Computation of Ratio of Earnings to Fixed Charges.
 
   
23.1
  Consent of Independent Registered Public Accounting Firm.
 
   
23.2
  Consent of Independent Registered Public Accounting Firm.
 
   
99.1
  2009 Annual Report
     
Item 1A
  — Risk Factors
Item 6
  — Selected Financial Data
Item 7
  — Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 8
  — Financial Statements and Supplementary Data

 

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  RENTECH, INC.
 
 
Dated: March 10, 2010  /s/ Dan J. Cohrs    
  Dan J. Cohrs   
  Executive Vice President and Chief Financial Officer   
 

 

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