LSB Industries, Inc. (NYSE: LXU) (“LSB” or the “Company”) today
announced results for the fourth quarter ended December 31,
2023.
Fourth Quarter 2023 Results and Recent Highlights
- Net sales of $133 million compared to $234 million in the
fourth quarter of 2022
- Net loss of $5 million compared to net income $66 million in
the fourth quarter of 2022
- Diluted EPS of ($0.07) compared to $0.83 for the fourth quarter
of 2022
- Adjusted EBITDA(1) of $25 million compared to $105 million in
the fourth quarter of 2022
- Cash Flow from Operations of $17 million with Capital
Expenditures of $26 million
- Repurchased 1.2 million shares of common stock for
approximately $10 million
- Advancing new large-scale, low-carbon ammonia project on the
Houston Ship Channel
Full Year 2023 Results and Highlights
- Net sales of $594 million compared to $902 million in the full
year 2022
- Net income of $28 million compared to net income $230 million
in the full year 2022
- Diluted EPS of $0.37 compared to $2.68 for the full year
2022
- Adjusted EBITDA(1) of $133 million compared to $415 million in
the full year 2022
- Cash Flow from Operations of $138 million and Capital
Expenditures of $68 million with Cash Flow Conversion rate of
53%
- Repurchased $125 million in principal amount of Senior Secured
Notes for approximately $114 million reducing our total debt by 18%
compared to the end of 2022
- Repurchased approximately 3.1 million shares of common stock
for approximately $29 million in 2023
- Total cash and short-term investments of approximately $306
million as of December 31, 2023
- Total Recordable Injury Rate of 0.33 ("TRIR") for the full year
2023
__________________
(1)
This is a Non-GAAP measure. Refer to the
Non-GAAP Reconciliation section.
“Our fourth quarter results were consistent with our
expectations," stated Mark Behrman, LSB Industries’ President and
CEO. "While we continued to experience a weaker pricing environment
relative to 2022, pricing rebounded off of third quarter lows
enabling us to generate a significant sequential top and bottom
line improvement. Our fourth quarter results benefited from
increased production and sales volumes of downstream products
reflecting improved manufacturing operations.”
"Our continued focus on safety resulted in a TRIR of 0.33 for
the year representing 'world class' performance. I want to thank
our team for all their efforts towards this accomplishment. We
generated solid cash flow in 2023 in spite of the headwinds
encountered throughout the year. As a result, we were able to
further strengthen our balance sheet, positioning us to continue to
invest in the reliability and safety of our facilities and return
value to shareholders. In addition to the two Turnarounds we'll be
conducting at our Pryor and Cherokee facilities during this year's
third quarter, we also expect to complete multiple projects that we
believe will deliver incremental EBITDA beginning in the second
half of the year."
"We have elected to delay the expansion of the production
capacity of our El Dorado facility. After reviewing numerous
factors, including current commodity market conditions and the
other initiatives we have underway, we've determined that delaying
the El Dorado expansion enables us to more effectively deploy
resources to our other projects, while allowing us to maintain the
strength of our balance sheet.”
"We made meaningful progress in 2023 in achieving our vision to
be an industry leader in the energy transition. In October we
announced our collaboration with INPEX, Air Liquide and Vopak
Exolum Houston to develop a world-scale low-carbon ammonia
production and export facility on the Houston Ship Channel. This
project will be transformative to LSB’s growth profile given the
anticipated demand for clean energy. In the fourth quarter of 2023
we achieved an important step in the project development process
when we selected KBR to provide the technology licensing and
proprietary engineering design for the ammonia loop portion of the
plant. We also recently selected an engineering firm to perform the
pre-FEED on our ammonia loop. We expect to complete the pre-FEED
during this year's third quarter."
"We continue to make good progress in the advancement of our
carbon capture and sequestration project with our partner, Lapis
Energy, at our El Dorado facility. We are focused on completing
that project in the first quarter of 2026, subject to the EPA’s
approval of our application for a Class VI injection well permit.
We’ve been pleased with our commercial team’s ability to leverage
this project as part of our new business development efforts as we
have been receiving strong expressions of interest in potential
long-term off-take agreements for the low-carbon products we will
be producing at El Dorado.”
Market Outlook
- Urea prices have moved up recently due, in part, to Chinese
urea export limitations; UAN prices are starting to follow
- Expectations are for strong demand for nitrogen fertilizers in
the Spring 2024 planting season:
- Current prices for ammonia and other
nitrogen products should prove attractive to retailers and
farmers
- Attractive U.S. corn prices providing
support for fertilizer demand
- Industrial and mining business is robust reflecting:
- Steady demand for industrial products
supported by resilient U.S. economy
- Stable nitric acid demand as impacts of
high inflation in the U.S. are offset by global producers shifting
production from international facilities to U.S. operations to take
advantage of lower energy prices
- Demand for AN for mining applications is
steady due to attractive market fundamentals for quarrying,
aggregate production and U.S. metals
- Ammonia pricing is expected to moderate further in 2024 after
recent pricing declines reflecting:
- Heavy ammonia application by U.S. farmers
in Fall of 2023
- Natural gas prices in Europe have declined
to their lowest levels since 2021 as a result of warm weather and
high gas storage levels in the region
- Sluggish demand from the industrial sector
in Europe and Asia
Progress on Low-Carbon Ammonia Projects
- Houston Ship Channel Blue Ammonia with INPEX, Air Liquide
and Vopak Exolum Houston
- Feasibility study completed during Q1'23 on
a 1.1 million metric ton per year blue ammonia plant utilizing blue
hydrogen provided by Air Liquide/INPEX (JV)
- Selected KBR to provide the technology
licensing and proprietary engineering design for the ammonia loop
portion of the plant
- Selected engineering firm to perform a
Pre-FEED (Front End Engineering Design) to refine cost estimate for
ammonia loop underway with expected completion during Q3'24
- FEED study expected to begin in Q4'24 with
expected completion during Q3'25 and final investment decision in
Q4'25
- El Dorado Carbon Capture and Sequestration (CCS) Project
with Lapis Energy
- Awaiting approval of Class VI permit to
construct application by the EPA
- Lapis Energy, our partner, will begin
construction of the CCS equipment upon approval of Class VI permit
to construct
- Lapis has ordered long lead time items
- Focused on beginning operations in
Q1'26
- Expect Lapis, the owner of the CCS
equipment, to receive the 45Q federal tax credits for sequestered
CO2 and pay LSB a fee for each ton of CO2 captured and permanently
sequestered
- MOU with Amogy to Develop Ammonia as a Marine Fuel
- Collaborating on the evaluation and
development of pilot program that would combine LSB's low-carbon
ammonia and Amogy's ammonia-to-power engine solution
- Amogy to test tugboat with engine
retrofitted for ammonia as a fuel during Q3'24
Fourth Quarter Results Overview
Three Months Ended December
31,
Product Sales ($ in
Thousands)
2023
2022
% Change
AN & Nitric Acid
$
47,959
$
81,576
(41
)%
Urea ammonium nitrate (UAN)
36,621
55,449
(34
)%
Ammonia
36,731
83,144
(56
)%
Other
11,302
13,485
(16
)%
Total Net Sales
$
132,613
$
233,654
(43
)%
Comparison of 2023 to 2022 quarterly periods:
- Net sales and operating income declined during the quarter
driven by lower pricing for all of our products. The headwind of
lower pricing was slightly offset by higher sales volumes of
ammonia and UAN. Operating profit also benefited from lower natural
gas prices.
The following tables provide key sales metrics for our
products:
Three Months Ended December
31,
Key Product Volumes
(short tons sold)
2023
2022
% Change
AN & Nitric Acid
124,697
157,104
(21
)%
Urea ammonium nitrate (UAN)
125,966
102,912
22
%
Ammonia
95,447
84,100
13
%
346,110
344,116
1
%
Average Selling
Prices (price per short ton) (A)
AN & Nitric Acid
$
322
$
464
(31
)%
Urea ammonium nitrate (UAN)
$
253
$
522
(52
)%
Ammonia
$
368
$
978
(62
)%
(A) Average selling prices represent “net back” prices which are
calculated as sales less freight expenses divided by product sales
volume in tons.
Three Months Ended December
31,
2023
2022
% Change
Average Benchmark
Prices (price per ton)
Tampa Ammonia (MT) Benchmark
$
599
$
1,116
(46
)%
NOLA UAN
$
256
$
533
(52
)%
Input
Costs
Average natural gas cost/MMBtu in cost of
materials and other
$
3.75
$
7.05
(47
)%
Average natural gas cost/MMBtu used in
production
$
3.99
$
6.95
(43
)%
Volume Outlook*
Estimated ammonia production and product sales volumes for the
full year 2024 are as follows:
Products
2024E
2023A
Ammonia Production (tons):
780,000 – 800,000
816,000
Sales Volume (tons):
AN & Nitric Acid
560,000 – 580,000
529,000
Urea Ammonium Nitrate (UAN)
560,000 – 580,000
483,000
Ammonia
280,000 – 300,000
375,000
*2024 ammonia production and product sales
volumes forecast reflects Turnarounds at our Pryor and Cherokee
facilities as compared to no Turnarounds in 2023
Conference Call
LSB’s management will host a conference call covering the fourth
quarter results on Wednesday, March 6, 2024 at 10:00 am ET / 9:00
am CT to discuss these results and recent corporate developments.
Participating in the call will be President & Chief Executive
Officer, Mark Behrman and Executive Vice President & Chief
Financial Officer, Cheryl Maguire. Interested parties may
participate in the call by dialing (877) 407-6176 / (201) 689-8451.
Please call in 10 minutes before the conference is scheduled to
begin and ask for the LSB conference call. To coincide with the
conference call, LSB will post a slide presentation at
www.lsbindustries.com on the webcast section of the Investor tab of
our website.
To listen to a webcast of the call, please go to the Company’s
website at www.lsbindustries.com at least 15 minutes prior to the
conference call to download and install any necessary audio
software. If you are unable to listen live, the conference call
webcast will be archived on the Company’s website.
LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma,
is committed to playing a leadership role in the energy transition
through the production of low and no carbon products that build,
feed and power the world. The LSB team is dedicated to building a
culture of excellence in customer experiences as we currently
deliver essential products across the agricultural, industrial, and
mining end markets and, in the future, the energy markets. The
company manufactures ammonia and ammonia-related products at
facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor,
Oklahoma and operates a facility for a global chemical company in
Baytown, Texas. Additional information about LSB can be found on
our website at www.lsbindustries.com.
Forward-Looking
Statements
Statements in this release that are not historical are
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which are subject to known and unknown risks,
uncertainties and assumptions about us, may include projections of
our future financial performance and anticipated performance based
on our growth and other strategies and anticipated trends in our
business. These statements are only predictions based on our
current expectations and projections about future events. There are
important factors that could cause our actual results, level of
activity, performance or actual achievements to differ materially
from the results, level of activity, performance or anticipated
achievements expressed or implied by the forward-looking
statements. Significant risks and uncertainties may relate to, but
are not limited to, business and market disruptions, market
conditions and price volatility for our products and feedstocks, as
well as global and regional economic downturns that adversely
affect the demand for our end-use products; disruptions in
production at our manufacturing facilities and other financial,
economic, competitive, environmental, political, legal and
regulatory factors. These and other risk factors are discussed in
the Company’s filings with the Securities and Exchange Commission
(SEC).
Moreover, we operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible for our management to predict all risks and
uncertainties, nor can management assess the impact of all factors
on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from
those contained in any forward-looking statements. Although we
believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
level of activity, performance or achievements. Neither we nor any
other person assumes responsibility for the accuracy or
completeness of any of these forward-looking statements. You should
not rely upon forward-looking statements as predictions of future
events. Unless otherwise required by applicable laws, we undertake
no obligation to update or revise any forward-looking statements,
whether because of new information or future developments.
See Accompanying Tables
LSB Industries, Inc.
Consolidated Statements of
Operations
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
(In Thousands, Except Per Share
Amounts)
Net sales
$
132,613
$
233,654
$
593,709
$
901,711
Cost of sales
120,604
141,070
507,449
553,344
Gross profit
12,009
92,584
86,260
348,367
Selling, general and administrative
expense
8,765
9,717
36,580
39,428
Other (income) expense, net
(1
)
184
(2,097
)
561
Operating income
3,245
82,683
51,777
308,378
Interest expense, net
9,923
12,372
41,136
46,827
(Gain) loss on extinguishments of debt
—
—
(8,644
)
113
Non-operating other income, net
(3,682
)
(2,456
)
(14,611
)
(8,083
)
(Loss) income before benefit for income
taxes
(2,996
)
72,767
33,896
269,521
Provision for income taxes
2,351
6,897
5,973
39,174
Net (loss) income
$
(5,347
)
$
65,870
$
27,923
$
230,347
Basic:
Net (loss) income
$
(0.07
)
$
0.84
$
0.37
$
2.72
Diluted:
Net (loss) income
$
(0.07
)
$
0.83
$
0.37
$
2.68
LSB Industries, Inc.
Consolidated Balance
Sheets
December 31,
2023
2022
(In Thousands)
Assets
Current assets:
Cash and cash equivalents
$
98,500
$
63,769
Restricted cash
2,532
—
Short-term investments
207,434
330,553
Accounts receivable
40,749
75,494
Allowance for doubtful accounts
(364
)
(699
)
Accounts receivable, net
40,385
74,795
Inventories:
Finished goods
26,329
28,893
Raw materials
1,799
1,990
Total inventories
28,128
30,883
Supplies, prepaid items and other:
Prepaid insurance
14,846
17,429
Precious metals
12,094
13,323
Supplies
30,486
27,501
Other
2,337
8,346
Total supplies, prepaid items and
other
59,763
66,599
Total current assets
436,742
566,599
Property, plant and equipment, net
835,298
848,661
Other assets:
Operating lease assets
24,852
22,682
Intangible and other assets, net
1,292
1,877
26,144
24,559
$
1,298,184
$
1,439,819
LSB Industries, Inc.
Consolidated Balance Sheets
(continued)
December 31,
2023
2022
(In Thousands)
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
68,323
$
78,182
Short-term financing
13,398
16,134
Accrued and other liabilities
30,961
38,470
Current portion of long-term debt
5,847
9,522
Total current liabilities
118,529
142,308
Long-term debt, net
575,874
702,733
Noncurrent operating lease liabilities
16,074
14,896
Other noncurrent accrued and other
liabilities
523
522
Deferred income taxes
68,853
63,487
Commitments and contingencies
Stockholders' equity:
Common stock, $.10 par value; 150 million
shares authorized, 91.2 million shares issued
9,117
9,117
Capital in excess of par value
501,026
497,179
Retained earnings
227,015
199,092
737,158
705,388
Less treasury stock, at cost:
Common stock, 18.1 million shares (14.9
million shares at December 31, 2022)
218,827
189,515
Total stockholders' equity
518,331
515,873
$
1,298,184
$
1,439,819
Non-GAAP Reconciliations
This news release includes certain “non-GAAP financial measures”
under the rules of the Securities and Exchange Commission,
including Regulation G. These non-GAAP measures are calculated
using GAAP amounts in our consolidated financial statements.
EBITDA and Adjusted EBITDA
Reconciliation
EBITDA is defined as net income (loss) plus interest expense and
interest income, net, less gain on extinguishment of debt, plus
depreciation and amortization (D&A) (which includes D&A of
property, plant and equipment and amortization of intangible and
other assets), plus provision (benefit) for income taxes. Adjusted
EBITDA is reported to show the impact of non-cash stock-based
compensation, one time/non-cash or non-operating items-such as,
one-time income or fees, loss (gain) on sale of a business and/or
other property and equipment, certain fair market value (FMV)
adjustments, and consulting costs associated with reliability and
purchasing initiatives (Initiatives). We historically have
performed turnaround activities on an annual basis; however, we
have moved towards extending turnarounds to a two or three-year
cycle. Rather than being capitalized and amortized over the period
of benefit, our accounting policy is to recognize the costs as
incurred. Given these turnarounds are essentially investments that
provide benefits over multiple years, they are not reflective of
our operating performance in a given year.
We believe that certain investors consider EBITDA a useful means
of measuring our ability to meet our debt service obligations and
evaluating our financial performance. In addition, we believe that
certain investors consider adjusted EBITDA as more meaningful to
further assess our performance. We believe that the inclusion of
supplementary adjustments to EBITDA is appropriate to provide
additional information to investors about certain items.
EBITDA and adjusted EBITDA have limitations and should not be
considered in isolation or as a substitute for net income,
operating income, cash flow from operations or other consolidated
income or cash flow data prepared in accordance with GAAP. Because
not all companies use identical calculations, this presentation of
EBITDA and adjusted EBITDA may not be comparable to a similarly
titled measure of other companies. The following table provides a
reconciliation of net income (loss) to EBITDA and adjusted EBITDA
for the periods indicated.
Non-GAAP Reconciliations
(continued)
LSB Consolidated
($ In Thousands)
Three Months Ended December
31,
Year Ended December 31,
2023
2022
2023
2022
Net (loss) income
$
(5,347
)
$
65,870
$
27,923
$
230,347
Plus:
Interest expense and interest income,
net
6,237
9,908
26,500
41,407
Net (gain) loss on extinguishment of
debt
—
—
(8,644
)
113
Depreciation and amortization
18,667
17,117
68,922
68,019
Provision for income taxes
2,351
6,897
5,973
39,174
EBITDA
$
21,908
$
99,792
$
120,674
$
379,060
Stock-based compensation
1,389
936
5,353
4,025
Legal fees (Leidos)
119
200
594
1,114
Loss on disposal and impairment of
assets
977
391
3,613
1,219
Turnaround costs
734
4,171
2,430
29,235
Adjusted EBITDA
$
25,127
$
105,490
$
132,664
$
414,653
Ammonia, AN, Nitric Acid, UAN Sales
Price Reconciliation
The following table provides a reconciliation of total
identified net sales as reported under GAAP in our consolidated
financial statements reconciled to netback sales which is
calculated as net sales less freight and other non-netback costs.
We believe this provides a relevant industry comparison among our
peer group.
Three Months Ended December
31,
2023
2022
(In Thousands)
Ammonia, AN, Nitric Acid, UAN net
sales
$
121,311
$
220,170
Less freight and other
14,137
11,344
Ammonia, AN, Nitric Acid, UAN netback
sales
$
107,174
$
208,826
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305181585/en/
Company Contact: Cheryl Maguire, Executive Vice President
& CFO (405) 510-3524 Fred Buonocore, CFA, Vice President of
Investor Relations (405) 510-3550 fbuonocore@lsbindustries.com
LSB Industries (NYSE:LXU)
過去 株価チャート
から 5 2024 まで 6 2024
LSB Industries (NYSE:LXU)
過去 株価チャート
から 6 2023 まで 6 2024