Lsb Industries, Inc. · NYSE:LXU
Lsb Industries — Q1 2022 Earnings Presentation
16 slides from Lsb Industries's earnings presentation, May 4, 2022
Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation May 4, 2022
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: Q1'22 Overview – Record Performance with Strong Outlook
Q1’22 Overview – Record Performance with Strong Outlook Q1’22 Q1’21 Net sales up 103% year over year driven by higher selling prices and continued strong plant Net Sales $199.0 M $98.1 M operations Record Q1 Adjusted EBITDA of $101.1M ‐ an increase of 484% year over year Adjusted $101.1 M $17.3
Slide 4: Fertilizer Market Overview
Fertilizer Market Overview (1) Corn trading at ~$8.00/bushel, highest level since 2012 10‐Year Corn Price – Strong demand for ethanol (~40% of total annual U.S. $9 ($ per bushel) corn use) as miles driven have returned to near pre‐ $8 $7 pandemic levels $6 – USDA expectation for reduction in corn
Slide 5: Industrial and Mining Market Fundamentals Remain Strong
Industrial and Mining Market Fundamentals Remain Strong Industrial US New Housing Starts (1) (thousands) U.S. Federal Reserve data indicates that new housing 2000 starts are at their highest level since 2006 1800 Pent up U.S. demand for new autos resulting 1600 1400 from microprocessor shortage
Slide 6: LSB Consolidated Financial Highlights
LSB Consolidated Financial Highlights $ in millions 1Q 2022 1Q 2021 Sales $199.0 $98.1 Sales increase driven by higher pricing Operating Higher selling prices partially offset by higher gas $80.0 ($0.5) Income/(Loss) and other raw material costs EBITDA increased in line with previously outlined EBIT
Slide 7: First Quarter – 2022 vs. 2021
First Quarter – 2022 vs. 2021 $ in millions 2021 Q1 Adjusted EBITDA Selling Prices, Net1 Sales Volumes Other Costs 2022 Q1 Adjusted EBITDA (1) Selling prices net of approximately $19mm impact of higher natural gas and sulfur raw material costs. 7
Slide 8: Strong Bottom Line Improvement
Strong Bottom Line Improvement Adjusted EBITDA(1) $300 $280 $260 $240 $220 Expect $200 continued growth in $180 adjusted EBITDA $ millions $160 in 2022 driven by strong $140 $275 product demand $120 $191 and pricing, continued $100 operational $80 improvements $60 and margin $111 enhancement $40 $84
Slide 9: Global Energy Price Spreads Narrowing but Remain Wide
$0 $10 $20 $30 $40 $50 $60 $70 $80 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Henry Hub Dec-20 Jan-21 Feb-21 Mar-21 TTF Apr-21 May-21 Jun-21 Jul-21 NBP Aug-21 Sep-21 International Natural Gas Benchmarks - Front Month ($/MMBtu) Oct-21 Nov-21 Dec-21 Jan-22 Global Ener
Slide 10: 2022 Growth Initiatives
2022 Growth Initiatives • Advancing safety programs • Capacity expansion through • Investing capital to debottlenecking of existing promote safe, reliable plants operations and expand Becoming Pursue • Evaluate new capacity production volume expansion Best in Class Organic Operator Growth • Other ma
Slide 11: Blue Ammonia Project
Blue Ammonia Project 4/27/22 agreement with Lapis Energy to develop a CO2 capture and sequestration (CCS) project at El Dorado facility Lapis will make 100% of the capital investment required for project; no capital investment from LSB Project to commence immediately, with expected operations
Slide 12: Appendix
Appendix
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended LSB Consolidated ($ In Thousands) March 31, 2022 2021 Net income (loss) $58,766 ($13,279) Plus: Interest expense 9,955 12,372 Loss on extinguishment of debt 113 - Depreciation and amortization 17,507 17,077 Provision (benefit) for income taxes 11,115
Slide 14: Adjusted EBITDA Reconciliation – Trailing Twelve Months
Adjusted EBITDA Reconciliation – Trailing Twelve Months TTM TTM TTM TTM Twelve Months Ended LSB Consolidated ($ In Millions) Mar 31, June 30, Sep 30, Mar 31, December 31, December 31, December 31, 2021 2021 2021 2022 2021 2020 2019 Net income (loss) ($55.7) ($31.7) ($20.2) $115.6 $43.5 ($61.9) ($63.
Slide 15: Adjusted EBITDA Reconciliation – Quarterly
Adjusted EBITDA Reconciliation – Quarterly Three Months Ended LSB Consolidated ($ In Millions) June 30, Sep 30, December 31, Mar 31, June 30, Sep 30, December 31, 2020 2020 2020 2021 2021 2021 2021 Net income (loss) ($0.4) ($20.4) ($21.7) ($13.3) $23.7 ($8.9) $42.1 Plus: Interest expense 12.5 12.6 1
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Three Months Ended March 31, 2022 2021 (In Thousands, Except Per Share Amounts) Numerator: Net income (loss) attributable to common stockholders $ $ 58,766 $ (23,376) Adjustments: Dividend requirements on Series E ‐ 9,511 Redeemable Preferred Accretion of Series E Redeema