Slide 1: Q3 2021 Earnings Presentation
Q3 2021 Earnings Presentation November 2, 2021
Slide 2: Q3 2021 Overview
Q3 2021 Overview Executing on Our Strategy and Improving End-Market Fundamentals ▪ Net sales up 72% year over year driven by higher selling prices and continued strong plant operations ▪ Record Q3 Adjusted EBITDA of $37.7M - an increase of 268% year over year despite loss of approximately 40 product
Slide 3: Agricultural Market Overview
Agricultural Market Overview ▪ Corn is currently trading over $5.60/bushel and is expected to 5 Year Corn Prices remain at these levels for the balance of the year and $8 ~ $5.60 Oct throughout 2022 $6 ▪ Robust pricing for nitrogen products is expected to continue in $4 $2 Q4’21 and into 2022 $0 – T
Slide 4: Strong Industrial and Mining Fundamentals
Strong Industrial and Mining Fundamentals Industrial Mining ▪ U.S. Federal Reserve data indicates that new housing starts ▪ Production of construction aggregates has increased over the reached levels not seen since 2006 earlier this year, and, while past decade driven by infrastructure repair, upgra
Slide 5: LSB Consolidated Financial Highlights
LSB Consolidated Financial Highlights $ in millions, except per share amounts 3Q 2021 3Q 2020 ▪ Sales up 72%: Driven by higher pricing Sales $127.2 $74.0 Adjusted Gross ▪ Higher selling prices partially offset by lower $43.1 $16.3 sales volumes and higher gas costs Profit 1 ▪ Operating profit increa
Slide 6: Strong Y/Y Increase in EBITDA Despite 2021 Turnaround
Strong Y/Y Increase in EBITDA Despite 2021 Turnaround $ in millions (amounts are approximate) Nonrecurring labor comp. costs Variable incentive comp., insurance and other plant fixed costs 2020 Q3 Adjusted EBITDA Net Price impacts 1 Sales Volumes (primarily due to Other Costs and Expenses 2021 Q3 Ad
Slide 7: Exchange Transaction and Debt Refi Transform Capital Structure
Exchange Transaction and Debt Refi Transform Capital Structure $ Millions Total Debt + Preferred Stock(1) Net Leverage Multiples(2)(3) 1000 15.0x $762 $769 $777 800 $715 11.4x 11.2x $654 10.0x 279 289 300 10.0x 9.0x 600 244 $475 8.1x 214 400 5.0x 4.0x $440 $471 $483 $479 $477 200 0 0.0x 2018 2019 20
Slide 8: Next 12 Months
Next 12 Months ▪ Continuous improvement throughout our operations within a favorable fertilizer market backdrop and the recovery of industrial demand exiting the pandemic, to deliver improved financial results ▪ Continue to bolster the Company’s credit metrics and achieve target leverage of less tha
Slide 9: Blue Green Ammonia Strategy
Blue Green Ammonia Strategy As an existing ammonia producer, LSB is well positioned to lever its assets and knowledge to capitalize on potential green ammonia opportunities. Blue Ammonia Green Ammonia • CO2 emissions from reforming or gasification • Produced using carbon free/renewable feedstock, pr
Slide 10: Appendix
Appendix
Slide 11: EBITDA Reconciliation
EBITDA Reconciliation Three Months Ended Nine Months Ended LSB Consolidated ($ In Thousands) September 30, September 30, 2021 2020 2021 2020 Net income (loss) ($8,928) ($20,402) $1,463 ($40,219) Plus: Interest expense 12,956 12,554 37,618 38,509 Gain on extinguishment of debt - - (10,000) - Deprecia
Slide 12: EBITDA Reconciliation TTM
EBITDA Reconciliation TTM TTM TTM TTM Twelve Months Ended LSB Consolidated ($ In Millions) September 30, June 30, Mar 31, December 31, December 31, December 31, 2021 2021 2021 2020 2019 2018 Net loss ($20.2) ($31.7) ($55.7) ($61.9) ($63.4) ($72.2) Plus: Interest expense 50.2 49.8 50.0 51.1 46.4 43.1
Slide 13: Gross Profit Reconciliation
Gross Profit Reconciliation Three Months Ended Nine Months Ended LSB Consolidated ($ In Thousands) September 30, September 30, 2021 2020 2021 2020 Net sales Agricultural $51,102 $31,986 $162,523 $138,441 Industrial and Mining 76,097 41,983 203,488 123,972 Total net sales $127,199 $73,969 $366,011 $2
Slide 14: 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 assumpt