Lsb Industries, Inc. · NYSE:LXU

Lsb Industries — Q3 2024 Earnings Presentation

16 slides from Lsb Industries's earnings presentation, Oct 30, 2024

  1. Slide 1: Q3 Earnings Presentation

    Q3 Earnings Presentation October 30, 2024 1

  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 assumpt

  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: Q3'24 Overview

    Q3’ 24 Overview  Zero recordable safety incidents Strong Y/Y Adjusted EBITDA Improvement 20  Higher ammonia selling prices and lower natural gas costs 18 coupled with solid year-over-year increase in AN sales volumes 16 14  Successfully completed major turnaround of Pryor Facility 12 $ Millions 1

  5. Slide 5: Industrial Market Overview

    Industrial Market Overview (1) 2,500 U.S. New Housing Starts (000’s of units) 2,000  Industrial business stable with potentially improving outlook 1,500  Steady demand for nitric acid supported by the strength of 1,000 the U.S. economy and robust consumer spending levels 500  U.S. new housing sta

  6. Slide 6: Nitrogen Product Pricing and Input Costs

    Nitrogen Product Pricing and Input Costs(1) 10-Year Tampa Ammonia Price $2,000 ($ per metric ton) $1,500 $1,000  Nitrogen product prices holding up well $500  Tampa ammonia price supported by tight supply- $0 demand dynamics, global supply constraints, Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct

  7. Slide 7: Grain Price Trends

    Grain Price Trends Corn Price v. Stocks-to-Use $7 20% (USD/bushel)  U.S. corn prices volatile during 2024 $6 15%  Corn futures prices modestly above August $5 10% lows reflecting USDA outlook for smaller $4 5% supplies and slight decline in ending stocks $3 0%  USDA forecasts for 2024 planted acr

  8. Slide 8: Q3'24 Financial Results

    Q3’24 Financial Results $ in millions except EPS Q3’24 Q3’23  Sales volumes for ammonia and UAN down year-over-year due to Pryor turnaround Net Sales $109 M $114 M  AN sales volumes increased year-over-year reflecting operational improvement initiatives Adjusted EBITDA1 $17 M $9 M at El Dorado and

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

    Third Quarter – 2024 vs. 2023 $ in millions $30 $11 $25 $20 ($5) $17 ($3) $15 $5 $10 $9 $5 $0 2023 Q3 Adjusted EBITDA Selling Prices Variable Costs (1) Volume/Mix Other (2) 2024 Q3 Adjusted EBITDA (1) Variable costs comprised predominantly of natural gas and electricity costs (2) Other primarily ref

  10. Slide 10: Solid Balance Sheet with Returns-Focused Capital Allocation

    Solid Balance Sheet with Returns-Focused Capital Allocation $ in millions 9/30/24 9/30/23  Healthy cash balance supports growth investments in our facilities and low carbon ammonia projects Cash & ST Inv. $199 M $318 M  Net debt/TTM Adjusted EBITDA of 2.5X $583 M  Invested in safe and successful

  11. Slide 11: Our Low Carbon Ammonia Energy Transition Projects

    Our Low Carbon Ammonia Energy Transition Projects* 2022 2023 2024 2025 2026 2027 2028 2029 2030 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H Expect Expect Class VI Class VI Permit to Permit to Construct Inject CO2 El Dorado 305-380K MT/y NH3 400-500K MT/y CO2 Signed Filed Signed 150K Commen

  12. Slide 12: Appendix

    Appendix 12

  13. Slide 13: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation Three Months Ended LSB Consolidated ($ In Thousands) September 30, 2024 2023 Net loss $ (25,382) $ (7,726) Plus: Interest expense and interest income, net 5,401 3,467 Depreciation and amortization 16,693 15,548 Benefit for income taxes (4,482) (5,249) EBITDA $ (7,770)

  14. Slide 14: Trailing Twelve Month EBITDA and Adjusted EBITDA

    Trailing Twelve Month EBITDA and Adjusted EBITDA* Quarter Ended TTM 9/30/24 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Net income (loss) (15.6) (25.4) 9.6 5.6 (5.3) Plus: Interest expense and interest income, net 23.2 5.4 5.4 6.1 6.2 Gain on extinguishment of debt (3.0) - (1.9) (1.1) - Depreciation an

  15. Slide 15: El Dorado Low Carbon Ammonia Project

    El Dorado Low Carbon Ammonia Project Project Highlights  Capital investment for LSB is minimal  Lapis will capture and sequester between 400,000 and 500,000 metric tons of CO2 produced annually in the course of El Dorado’s ammonia production  We expect Lapis to receive 45Q federal tax credit of $

  16. Slide 16: Houston Ship Channel Ammonia Project

    Houston Ship Channel Ammonia Project Project Highlights  New 1.1 million TPA low carbon ammonia plant at an attractive site in Deer Park, on the Houston Ship Channel – access to low-cost natural gas, key pipelines, and deepwater logistics  Focused on the domestic and export markets, particularly p

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