Lsb Industries, Inc. · NYSE:LXU
Lsb Industries — Q4 2022 Earnings Presentation
16 slides from Lsb Industries's earnings presentation, Feb 23, 2023
Slide 1: Q4 2022 Earnings Presentation
Q4 2022 Earnings Presentation February 23, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation 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 assum
Slide 3: Q4'22 Overview – Record Performance with Strong Outlook
Q4’22 Overview – Record Performance with Strong Outlook Net sales up 23% year over year driven Q4’22 Q4’21 by higher selling prices and continued strong plant operations Net Sales $234 M $190 M Record Q4 Adjusted EBITDA of $105 M - an increase of 17% year over year Adjusted EBITDA Margin of 45
Slide 4: Market Overview
Market Overview (1) 10-Year Corn Price Corn price remains well above 10-year average level $8 $6 – Drought conditions in South America and the Western U.S. impacted corn supply $4 $2 – US stock-to-usage of <10% well below 10-year average $0 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 F
Slide 5: Solid Balance Sheet and Cash Flow
Solid Balance Sheet and Cash Flow 12/31/22 12/31/21 Cash & ST Liquidity position has improved through Inv. $394 M $82 M consistent operating cash flow and strategic capital markets transactions Total Net debt/TTM Adjusted EBITDA of <1X; well Liquidity $458 M $143 M below 2.5X target level Net De
Slide 6: Fourth Quarter – 2022 vs. 2021
Fourth Quarter – 2022 vs. 2021 $ in millions Pryor and El Dorado Turnarounds and winter freeze impact on Cherokee and El Dorado offset by improved operating rates 2021 Q4 Adjusted EBITDA Selling Prices, Net (1) Sales Volumes Other Costs (2) 2022 Q4 Adjusted EBITDA (1) Selling prices net of approxima
Slide 7: Strong Bottom Line Improvement
Strong Bottom Line Improvement Adjusted EBITDA(1) $450 $400 $350 $300 $ millions $250 $200 $415 $150 $100 $191 $50 $69 $65 $- FY2019 FY2020 FY2021 FY2022 (1) This is a non-GAAP measure; refer to the Adjusted EBITDA TTM and Quarterly reconciliation pages in the appendix of this presentation 7
Slide 8: 2023 Outlook
2023 Outlook Operating: 2023 2022 Ammonia Production (tons): 830,000 - 850,000 732,000 Ammonia Turnarounds: El Dorado - 27 Days Cherokee - - Pryor - 38 Days Capex: Reliability/EH&S/Maintenance $50 million - $60 million $54 million(1) Margin Enhancement $10 million - $20 million $3 million Sales Volu
Slide 9: 2023 Outlook
2023 Outlook Financial (Full Year): Variable Plant Expenses: Natural gas feedstock costs ~32 MMBtu/ton of ammonia Electricity 3.0% – 5.0% of sales Catalyst expense (burnoff) 1.0% – 3.0% of sales Freight 5.0% – 7.0% of sales Other purchased products (primarily Ag Centers) 3.0% – 5.0% of sales Other e
Slide 10: Global Energy Price Spreads
Global Energy Price Spreads (1) International Natural Gas Benchmarks - Front Month ($/MMBtu) $110 U.S. Henry Hub Dutch Transfer Title Facility (TTF) U.K. National Balancing Point (NBP) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 (1) Source: Gelber & Associates 10
Slide 11: Key Growth Initiatives
Key Growth Initiatives Capacity expansion Advancing our safety and through debottlenecking environmental initiatives of existing plants Investing capital to promote Evaluate new safe, reliable operations and capacity expansion expand production volume Other margin Achieving a Culture Pursue Organic
Slide 12: Low Carbon Ammonia Projects Update
Low Carbon Ammonia Projects Update Blue Ammonia Project Green Ammonia Project • April 2022 agreement with Lapis Energy to • May 2022 agreements with Bloom Energy develop a CO2 capture and sequestration and thyssenkrupp Uhde to develop a project (CCS) project at El Dorado facility to produce zero-car
Slide 13: Appendix
Appendix
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Twelve Months Ended LSB Consolidated ($ In Millions) December 31, December 31, 2022 2021 2022 2021 Net income $66 $42 $230 $44 Plus: Interest expense, net 10 12 42 49 Net loss on extinguishment of debt - 20 - 10 Depreciation and amortization 17 18 68
Slide 15: Adjusted EBITDA Reconciliation – Trailing Twelve Months
Adjusted EBITDA Reconciliation – Trailing Twelve Months Twelve Months Ended LSB Consolidated ($ In Millions) December 31, December 31, December 31, December 31, 2022 2021 2020 2019 Net income (loss) $230 $44 ($62) ($63) Plus: Interest expense net 42 49 51 46 Net loss on extinguishment of debt - 10 -
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Numerator: Net income (loss) attributable to common stockholders $ 65,870 $ 42,009 $ 230,347 $ (220,002) Adjustments for Exchange Transaction: Dividend requirements on Series E - - - 29,9