Rentech (RTK) has had a great few months on a flurry of good news, but tonight the good news streak comes to an end. The company reported a big plunge in revenues from the year ago quarter due to the weak economy and lower corn prices. The company reported just $24.7 million in revenues, representing a 75% plunge from the year ago quarter. The EPS loss matched the year ago quarter at -.03/share.
The company is also announcing a restatement of past results due to accounting errors. After correcting the treatment of forward gas purchase contracts and inventory valuation, it required a restatement of the 2008 results as well as the results for the first 3 quarters of 2009. The restatement reverses the impairments and the subsequent benefits to cost of goods sold. These corrections change the timing, but not the total amount of the recognition of expenses for purchases of natural gas and have no impact on cash flow.
The company has also changed its balance sheet treatment of product pre-sale contracts which reduces the deferred revenue and accounts receivable by $58 million for 2008. There is no impact from this on 2009 results.
Shares of Rentech (RTK) are down about 10% in after hours trading.