Lsb Industries, Inc. · NYSE:LXU
Lsb Industries — Q3 2022 Earnings Presentation
16 slides from Lsb Industries's earnings presentation, Nov 2, 2022
Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation November 2, 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: Q3'22 Overview – Record Performance with Strong Outlook
Q3’22 Overview – Record Performance with Strong Outlook Q3’22 Q3’21 Net sales up 45% year over year driven by higher selling prices and continued strong Net plant operations Sales $184 M $127 M Record Q3 Adjusted EBITDA of $50 M - an increase of 32% year over year despite Adjusted $50 M $38 M tw
Slide 4: Market Overview
Market Overview (1) Corn price remains well above 10-year average level 10-Year Corn Price $8 – Drought conditions in South America and the $6 Western U.S. impacted corn supply $4 – Strong demand from China for animal feed $2 – Wet weather in U.S. corn belt caused lower planted acres $0 – US stock
Slide 5: Solid Balance Sheet and Cash Flow
Solid Balance Sheet and Cash Flow Q3’22 Q3’21 Cash & Liquidity position has improved through ST Inv. $385 M $33 M consistent operating cash flow and strategic capital markets transactions Total Net debt/TTM Adjusted EBITDA of <1X and <2.5X $450 M $81 M target level Liquidity Net Positive opera
Slide 6: Third Quarter – 2022 vs. 2021
Third Quarter – 2022 vs. 2021 $ in millions Predominantly reflects two turnarounds 2021 Q3 Adjusted EBITDA Selling Prices, Net (1) Sales Volumes Other Costs (2) 2022 Q3 Adjusted EBITDA (1) Selling prices net of approximately $36 million impact of higher natural gas and sulfur raw material costs. (2)
Slide 7: Strong Bottom Line Improvement
Strong Bottom Line Improvement Adjusted EBITDA(1) $450 $400 Expect continued $350 growth in adjusted $300 EBITDA in Q4’22 driven by strong product $ millions $250 demand and pricing, $200 $399 continued operational and commercial $150 improvements $191 and margin $100 enhancement projects $50 $111 $
Slide 8: Global Energy Price Spreads
Global Energy Price Spreads (1) International Natural Gas Benchmarks - Front Month ($/MMBtu) $100 U.S. Henry Hub Dutch Transfer Title Facility U.K. National Balancing Point $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Oct-20 Oct-21 Oct-22 Mar-21 Jul-21 Mar-22 Jul-22 Dec-20 Dec-21 Nov-20 Jan-21 Nov-21 Jan-
Slide 9: Key Growth Initiatives
Key Growth Initiatives • Advancing safety programs • Capacity expansion through already underway and debottlenecking of existing plants implementing new ones • Investing capital to promote • Evaluate new capacity expansion safe, reliable operations and Becoming Pursue Best in Class Organic • Other m
Slide 10: Blue Ammonia Project
Blue Ammonia Project 4/27/22 agreement with Lapis Energy to develop a CO2 capture and sequestration (CCS) project at El Dorado facility Lapis will make 100% of the capital investment required for project; no capital investment from LSB Project to commence immediately, with expected Example Car
Slide 11: Green Ammonia Project
Green Ammonia Project 5/25/22 agreements with Bloom Energy and thyssenkrupp Uhde to develop a project to produce zero-carbon or “green” ammonia at Pryor facility Construction planned in two phases: first with Bloom supplying a 10MW solid oxide electrolyzer, followed by installation of additional
Slide 12: Appendix
Appendix
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Nine Months Ended LSB Consolidated ($ In Millions) September 30, September 30, 2022 2021 2022 2021 Net income (loss) $2 ($9) $164 $1 Plus: Interest expense, net 10 13 32 38 Gain on extinguishment of debt - - - (10) Depreciation and amortization 16 18
Slide 14: Adjusted EBITDA Reconciliation – Trailing Twelve Months
Adjusted EBITDA Reconciliation – Trailing Twelve Months TTM TTM Twelve Months Ended LSB Consolidated ($ In Millions) September 30, September 30, December 31, December 31, December 31, 2022 2021 2021 2020 2019 Net income (loss) $207 ($20) $44 ($62) ($63) Plus: Interest expense net 43 50 49 51 46 Loss
Slide 15: Adjusted EBITDA Reconciliation – Quarterly
Adjusted EBITDA Reconciliation – Quarterly Three Months Ended LSB Consolidated ($ In Millions) December 31, March 31, June 30, September 30, December 31, March 31, June 30, 2020 2021 2021 2021 2021 2022 2022 Net income (loss) ($22) ($13) $24 ($9) $42 $59 $103 Plus: Interest expense net 13 12 12 13 1
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Three Months Ended Nine Months Ended September 30, September 30, ($ in Thousands except per share amounts) 2022 2021 2022 2021 Numerator: $ 2,312 $ (251,504) $ 164,477 $ (262,011) Net income (loss) attributable to common stockholders Adjustments for Exchange Transaction: