Selling, general and administrative (SG&A) expenses were $5.5 million for the three months ended September 30, 2012, compared to $1.8 million for the prior-year period. The increase in SG&A expenses was primarily due to business development expenses, including $1.7 million of costs relating to the Agrifos acquisition. Also contributing to the increase were costs associated with having become a publicly traded limited partnership, including an increase of $1.1 million in non-cash unit-based compensation expense.
Nine months ended September 30, 2012
Revenues for the nine months ended September 30, 2012 were $169.2 million, compared to $136.9 million for the comparable period in the prior year. The increase in revenue for the nine months ended September 30, 2012 was primarily due to increased sales prices for all products and sales volume for ammonia.
During the nine months ended September 30, 2012, Rentech Nitrogen generated operating income of $90.3 million, compared to $55.3 million during the comparable period in the prior year.For the nine months ended September 30, 2012, net income was $89.4 million or $2.34 per unit. This compares to net income of $20.6 million for the comparable period last year. Included in the prior year’s net income was $9.2 million of loss on debt extinguishment. EBITDA for the period was $99.7 million, compared to $62.7 million in the corresponding period in 2011. Further explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of Rentech Nitrogen's EBITDA to net income have been included below in this press release. The Partnership’s natural gas hedging strategy resulted in average natural gas costs of $3.63 per MMBtu for the first nine months of 2012, compared to $4.78 per MMBtu for the prior-year period. Lower natural gas costs combined with strong product prices contributed to gross margins of 61% in the current period, up significantly from 44% for the same period last year.