Lsb Industries, Inc. · NYSE:LXU

Lsb Industries — Q1 2021 Earnings Presentation

16 slides from Lsb Industries's earnings presentation, Apr 29, 2021

  1. Slide 1: Q1 2021 Earnings Presentation

    Q1 2021 Earnings Presentation April 29, 2021

  2. 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

  3. Slide 3: Q1 2021 Overview

    Q1 2021 Overview Executing on Our Strategy and Improving End-Market Fundamentals  Sales volumes increased 8% year over year despite weather-induced plant curtailments in February • Commenced new nitric acid contract  Higher selling prices year over year  Adjusted EBITDA increased 11% year over ye

  4. Slide 4: Agricultural Market Overview

    Agricultural Market Overview 5 Year Corn Prices  Significant increase in commodity prices since Fall ~ $7.00 late April $7.50 2020 $6.50 $5.50 – 2020 farmer income was 2nd highest ever $4.50 – Significant increase in Chinese imports of all $3.50 $2.50 agricultural commodities Dec-16 Dec-17 Dec-18 D

  5. Slide 5: Expecting significantly higher pricing vs. a year ago

    Expecting significantly higher pricing vs. a year ago Q2 2021 Current/Expected Q2 2020 Actual Average Selling Prices Average Selling Prices Tampa Ammonia $545 / MT $234 / MT UAN $250 / ST $149 / ST HDAN $305 / ST $232 / ST Natural Gas ($/MMBtu) $2.75 / MMBtu $1.81 / MMBtu Based on management estimat

  6. Slide 6: Industrial and Mining Market Overview

    Industrial and Mining Market Overview Industrial Mining  Automotive industry temporarily halted production in  Copper prices rising, reaching $4.30 per pound on the Spring of 2020, but production has since gained February 24th, the highest price since August 2011, momentum. Seasonally adjusted ann

  7. Slide 7: LSB Consolidated Financial Highlights

    LSB Consolidated Financial Highlights $ in millions, except per share amounts 1Q 2021 1Q 2020 Sales $98.1 $83.4  Sales up 18%: Price up 10%, Volume up 8%  Higher sales volumes and selling prices partially Adjusted Gross offset by higher gas costs and net impact from $24.9 $20.1 Profit 1 weather in

  8. Slide 8: First Quarter – 2021 vs. 2020

    First Quarter – 2021 vs. 2020 $ in millions (amounts are approximate) 2020 Q1 Adjusted EBITDA Sales Volumes 1 Primarily higher business February weather 2 Net price impact 3 2021 Q1 Adjusted EBITDA insurance and curtailments professional fees (1) Volume includes $1.7 million improved fixed cost abso

  9. Slide 9: Solid Operating Performance Coupled with Improved Market Pricing Leads to Gross Margin Expansion

    Solid Operating Performance Coupled with Improved Market Pricing Leads to Gross Margin Expansion Tampa Ammonia Price Adjusted Gross Margin % $360 26% $340 25% $320 $300 24% $280 23% $260 $240 22% $220 $200 21% 2018 2019 2020 2021 Q1 1 Adjusted Gross Margin Average Tampa Ammonia Price (1) Adjusted gr

  10. Slide 10: Current Capital Structure and Opportunities to Improve Capital Structure

    Opportunities to Improve Capital Current Capital Structure Structure Senior Secured Notes  Reviewing refinancing opportunities  $435 million at 9.625% – Favorable fertilizer market trends and  Due May 2023 continued recovery of industrial demand  Call premium of 103 in May 2021 exiting pandemic

  11. Slide 11: UAN Discount to Urea on a Nitrogen Equivalent Basis Reversed in April

    UAN Discount to Urea on a Nitrogen Equivalent Basis That Has Persisted Through Much of the Past Year Reversed in April UAN (N equivalent) Ammonia (N equivalent) Urea (N equivalent) $0.90 $0.80 $0.70 $ / ton of N $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 UAN Ammonia Urea $700 $600 $500 $400 $ / ton $300 $2

  12. Slide 12: Positioned for Continued Growth and Improved Financial Performance

    Positioned for Continued Growth and Improved Financial Performance Realizing returns from completed maintenance and upgrades • Reached record ammonia, UAN, and DEF production in 2020 • Several initiatives underway to drive further improvement in operating performance • Opportunity to capitalize on f

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: EBITDA Reconciliation

    EBITDA Reconciliation LSB Consolidated ($ In Thousands) Three Months Ended March 31, 2021 2020 Net loss ($13,279) ($19,452) Plus: Interest expense 12,372 13,479 Depreciation and amortization 17,077 17,907 Provision (benefit) for income taxes 42 (339) EBITDA (1) $16,212 $11,595 Stock-based compensati

  15. Slide 15: Gross Profit Reconciliation

    Gross Profit Reconciliation Three Months Ended Twelve Months Ended LSB Consolidated ($ In Thousands) March 31, December 31, 2021 2020 2020 2019 2018 Net sales Agricultural $44,913 $41,458 $180,036 $187,641 $187,164 Industrial and Mining 53,203 41,953 171,280 177,429 190,996 Total net sales $98,116 $

  16. Slide 16: EBITDA Sensitivity Grid at $3.00/mmbtu Gas

    EBITDA Sensitivity Grid at $3.00/mmbtu Gas $ in millions Significant Earnings Power at Optimal Operating Rates Average UAN Price/ST For A Year $ 210 $ 190 $ 170 $ 150 $ 130 $ 400 $ 180 $ 170 $ 160 $ 150 $ 140 Average Tampa Ammonia Price/MT For A Year $ 350 $ 160 $ 150 $ 140 $ 130 $ 120 $ 300 $ 140 $

LSB Industries — Q1 2021 Earnings Presentation on 6ix