SG&A expenses were $12.0 million for the nine months ended September 30, 2012, compared to $4.4 million for the prior-year period. The increase in SG&A expenses was primarily due to business development expenses, including costs of $2.0 million 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 $2.3 million in non-cash unit-based compensation expense.
Rentech Nitrogen expects low grain inventories caused by the drought to continue to have a favorable impact on nitrogen prices and demand for the remainder of 2012 and 2013.
2012 OutlookThe fall harvest in Rentech Nitrogen’s market area is nearly complete, several weeks earlier than typical. Recent rains as well as optimal soil temperatures have set the stage for an early start for fall application. As of October 30 th, ammonia application was in full stride in the Mid Corn Belt. Rentech Nitrogen reiterates guidance for the twelve months ending December 31, 2012, stating that it expects cash available for distribution to be in excess of $126 million or $3.30 per unit, and EBITDA to be in excess of $130 million. The guidance includes the expected impact of business development expenses in SG&A attributed to the Agrifos acquisition; the contribution of the Pasadena plant’s operations; and a five day outage at the East Dubuque facility that occurred in early November. The Partnership has included an updated calculation of forecasted cash available for distribution below in this press release. Rentech Nitrogen has delivered, or has forward purchase commitments for 100% of its forecasted deliveries of ammonia and UAN for 2012. The Partnership has already purchased or contracted at fixed prices 100% of the natural gas required to produce the product already delivered or forecasted to be delivered during the twelve months ending December 31, 2012.
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