Lsb Industries, Inc. · NYSE:LXU

Lsb Industries — Q1 2024 Earnings Presentation

15 slides from Lsb Industries's earnings presentation, Apr 30, 2024

  1. Slide 1: Q1 2024 Earnings Presentation

    Q1 2024 EARNINGS PRESENTATION April 30, 2024

  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 assu

  3. 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

  4. Slide 4: Q1'24 Overview

    Q1’24 Overview  Sales volume increased year-over-year, offset by weaker pricing for agricultural products  Generated solid free cash flow  Returned capital to shareholders through share buybacks  De-risked balance sheet through bond repurchases  Outlook for nitrogen demand and pricing remains f

  5. Slide 5: Agricultural Market Overview

    Agricultural Market Overview (1) 10-Year Corn Price  U.S. corn price remains near 10-year average level​ $10 ($ per bushel)  Corn supply expected to increase in the coming months, though E15 waiver could provide support $5 for demand  Corn prices remain resilient despite rising stock-to- $0 Apr-1

  6. Slide 6: Structural Changes in Nitrogen Markets with Sustained Commodity Fundamentals

    Structural Changes in Nitrogen Markets with Sustained Commodity Fundamentals Gas Costs (USD/MMBtu) Corn Price v. Stocks-to-Use $7 20% $16 (USD/bushel) $14 $12 $6 15% $10 $8 $5 10% $6 $4 $4 5% $2 $0 $3 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Avg Price (RHS) Stocks-to-Use Ratio Dutch TTF

  7. Slide 7: Industrial and Mining Market Overview

    Industrial and Mining Market Overview (1) U.S. Auto Production 300 (000’s of units) 200  Demand remains stable for Industrial products 100 supported by resilient U.S. economy  Auto production has been steady for the past two 0 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24 years  Furniture orders rema

  8. Slide 8: Q1'24 Financial Results

    Q1’24 Financial Results Q1’24 Q1’23 Net Sales $138 M $181 M  Sales volume increased year-over-year  Net sales and adjusted EBITDA down year- Adjusted EBITDA1 $33 M $51 M over-year due to lower pricing Adjusted  Margin impact of lower pricing partially offset 24% 28% EBITDA Margin1 by lower natura

  9. Slide 9: First Quarter – 2024 vs. 2023

    First Quarter – 2024 vs. 2023 $ in millions $14 $51 $50 $33 ($32) (1) (1) Pricing includes approximately $22 million benefit of lower natural gas costs 9

  10. Slide 10: Solid Balance Sheet and Cash Flow

    Solid Balance Sheet and Cash Flow​ 3/31/24 3/31/23  Healthy cash balance and robust liquidity position Cash & ST Inv.​ $265 M $426 M supports balanced capital allocation strategy  Net debt/TTM Adjusted EBITDA of 2.5X Total Debt $550 $711  Continued positive free cash flow despite pricing Net Debt

  11. Slide 11: El Dorado Low-Carbon Ammonia Project

    El Dorado Low-Carbon Ammonia Project Project Highlights Roles  Capital investment for LSB is minimal Ammonia production at  100% owner of ammonia production facility  Lapis will capture and sequester >450,000 metric tons of CO2 produced annually in the El Dorado, AR facility course of El Dorado’s

  12. Slide 12: Houston Ship Channel Ammonia Project

    Houston Ship Channel Ammonia Project Project Highlights Roles Hydrogen and  New 1.1 million TPA low-carbon ammonia plant at an attractive site in Deer nitrogen feedstock  #2 supplier of industrial gases with $100 billion of EV Park, on the Houston Ship Channel – access to low-cost natural gas, key

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation* Three Months Ended LSB Consolidated ($ In Millions) March 31, 2024 2023 Net income $ 5.6 $ 15.9 Plus: Interest expense and interest income, net 6.1 8.7 Net (gain) on extinguishment of debt (1.1) — Depreciation and amortization 17.1 17.6 Provision for income taxes 0.6

  15. Slide 15: Trailing Twelve Month EBITDA and Adjusted EBITDA

    Trailing Twelve Month EBITDA and Adjusted EBITDA* ($ in Millions) TTM 3/31/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Net income (loss) $ 17.6 $ 5.6 $ (5.3) $ (7.7) $ 25.1 Plus: Interest expense and interest income, net 23.9 6.1 6.2 3.5 8.1 Gain on extinguishment of debt (9.8) (1.1) - - (8.6) Dep

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