Lsb Industries, Inc. · NYSE:LXU
Lsb Industries — Q3 2023 Earnings Presentation
13 slides from Lsb Industries's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 EARNINGS PRESENTATION November 2, 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 assu
Slide 3: Stockholder Rights Plan in Place to Preserve Substantial NOL's
Stockholder Rights Plan in Place to Preserve Substantial NOL’s Our Section 382 Stockholder Rights Plan (the “Rights Plan”) is intended to protect our substantial net operating losses (“NOLs”), carryforwards and other tax attributes. We can generally use our NOLs and other tax attributes to reduc
Slide 4: Q3'23 Overview – Healthy Volume Increase Offset by Lower Prices
Q3’23 Overview – Healthy Volume Increase Offset by Lower Prices Strong safety performance with a TRIR of 0.34 for TTM 9/30/23 Sales volume increased year-over-year as a result of the absence of turnarounds in Q3’23 versus two turnarounds in Q3’22, offset by weaker pricing Announced collaborati
Slide 5: Market Overview (1)
Market Overview (1) 10-Year Corn Price $10 U.S. corn price remains above 10-year average level $8 Corn supply expected to decline modestly in the coming $6 months on lower production $4 2024 corn price outlook has risen in recent weeks $2 $0 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oc
Slide 6: Q3'23 Financial Results
Q3’23 Financial Results Q3’23 Q3’22 Net Sales $114 M $184 M Sales volume increased year-over-year as a result of the absence of turnarounds in Q3’23 versus two Adjusted $9 M $50 M turnarounds in Q3’22 EBITDA1 Net sales and adjusted EBITDA down year-over-year Adjusted EBITDA Margin1 8% 27% due to
Slide 7: Third Quarter – 2023 vs. 2022
Third Quarter – 2023 vs. 2022 $ in millions $50 $22 $1 $9 ($64) (1) (1) Selling prices includes approximately $34 million benefit of lower natural gas costs and $3 million benefit from lower sulfur raw material costs 7
Slide 8: Solid Balance Sheet and Cash Flow
Solid Balance Sheet and Cash Flow 9/30/23 9/30/22 Cash & ST Inv. $318 M $385 M Healthy cash balance and robust liquidity position Total Debt $583 $714 supports anticipated future investments in growth Net debt/TTM Adjusted EBITDA of ~1X Net Debt1/ TTM Adj. EBITDA 1.2X 0.8X Continued solid
Slide 9: Global Energy Price Spreads (1)
Global Energy Price Spreads (1) International Natural Gas Benchmarks - Front Month ($/MMBtu) $110 U.S. Henry Hub Dutch Transfer Title Facility (TTF) U.K. National Balancing Point (NBP) Japan/Korea Marker (JKM) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 (1) Source: Platts, ICIS Heren, NYMEX 9
Slide 10: Houston Ship Channel Low-Carbon Ammonia Project
Houston Ship Channel Low-Carbon Ammonia Project Four leading energy-related companies collaborating to explore the creation of a large-scale low-carbon ammonia project • Air Liquide to collaborate with INPEX on low-carbon hydrogen production for use as feedstock for LSB-operated ammonia loop, in a
Slide 11: Our Other Low Carbon Ammonia Projects
Our Other Low Carbon Ammonia Projects Marine Fuel MOU with Amogy to El Dorado Blue Ammonia Pryor Green Ammonia develop marine fuel supply chain April 2022 agreement with Lapis Energy to May 2022 agreements with Bloom Energy and May 2023 memorandum of understanding with develop a CO2 capture
Slide 12: Appendix
Appendix
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Nine Months Ended LSB Consolidated ($ In Thousands) September 30, September 30, 2023 2022 2023 2022 Net income (loss) $ (7,725) $ 2,312 $ 33,270 $ 164,477 Plus: Interest expense and interest income, net 3,467 9,960 20,263 31,499 Net (gain) loss on ex