Earnings Roundup: Rentech, Marcus & MillichapTuesday, March 11, 2014
Shares of Rentech Inc. and its Rentech Nitrogen Partners spinoff fell on Tuesday after the parent company reported lower fourth-quarter revenue and a larger loss than Wall Street expected.
Westwood-based Rentech Inc. reported a loss of $14.5 million (-6 cents a share, compared with a loss of $24.5 million (-11 cents) in the same period a year earlier. Revenue fell 14 percent to $79.2 million.
Analysts on average expected a net loss of 2 cents a share on revenue of $84.7 million.
Rentech last week signed a deal with a Chinese company to sell its biofuel business in order to focus on its wood chip, wood pellet and nitrogen fertilizer manufacturing businesses. But the company said that fourth quarter results were hurt by lower fertilizer prices, and well as maintenance downtime at the fertilizer plants.
Rentech shares closed down 14 cents, or 7 percent, to $1.82 on the Nasdaq. Shares of Rentech Nitrogen Partners closed down 47 cents, or 2.5 percent, to $18.69 on the New York Stock Exchange.
Marcus & Millichap Inc.
Marcus & Millichap Inc. reported a net loss in its fourth quarter Tuesday as the company had costs rise as a result of its IPO last fall.
The Calabasas commercial real estate brokerage reported a net loss of $8.7 million for the fourth quarter ended Dec. 31, compared with income of $13 million for the same period a year earlier. Revenue increased 1 percent to $149 million.
Operating expenses for the fourth quarter rose more than 26 percent to $157.3 million, which the company said was mainly due to costs associated with going public.
Chief Executive John Kerin said the firm has worked extensively on recruitment and that despite the loss, business looks good going forward.
“Our performance was driven by continued strength in the apartment and retail sectors, which have traditionally been our leading business units. We also achieved growth in office and specialty property sales such as hospitality and in our mortgage brokerage revenue, reflecting our emphasis on growth through diversification,” he said in a statement.
For the year, the company reported net income of $8.2 million, compared with $28 million in 2012. Revenue rose 13 percent to $436 million.
The company went public in an Oct. 31 IPO that raised $72 million, less than the $104 million the company had hoped to raise when it first filed a prospectus in September. The company dropped its IPO price to $12 a share, after initially announcing it expected to price the stock at $14 to $16 a share.
Shares lost 32 cents, or 1.8 percent, to close at $17.20 on the New York Stock Exchange.