NYSE$LXU

LSB Industries Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

LSB Industries' financial performance decreased due to lower pricing, partially offset by increased sales volumes and strategic commercial efforts.

LSB Industries reported a decrease in net sales and net income for Q1 2024 compared to Q1 2023, with net sales at $138 million and net income at $6 million. This decline was primarily due to lower pricing for all products, although higher sales volumes partially offset the impact. The company focused on returning value to shareholders through stock repurchases and debt reduction.

  • Net sales decreased to $138 million from $181 million year-over-year.
  • Net income declined to $6 million from $16 million year-over-year.
  • Diluted EPS was $0.08, down from $0.21 in the prior year quarter.
  • Adjusted EBITDA was $33 million compared to $51 million in the first quarter of 2023.

Headline financials

Total Revenue

$138M

Previous: $181M-23.6%
EPS

$0.08

Previous: $0.25-68.0%
Avg Gas Cost (Materials)

$2.82

No prior period
Avg Gas Cost (Production)

$2.33

No prior period
Capital Expenditures

-$18.3M

Previous: -$18.4M+0.8%
Free Cash Flow

-$12.7M

Previous: -$2.54M-399.4%
Net Income

$5.62M

Previous: $15.9M-64.6%
Operating Income

$11.3M

Previous: $30.5M-63.1%
Gross Profit

$22.3M

Previous: $41.6M-46.5%
Cash & Equivalents

$126M

Previous: $48.9M+157.4%
Total Assets

$1.26B

Previous: $1.45B-12.8%
Stock-Based Comp

$1.39M

Previous: $719K+93.7%

Revenue & EPS history

LSB Industries · Revenue · Quarterly

$138M

Q1 2024-23.6%vs Q1 2023
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

LSB Industries · $84.2M total across 3 segments · Q3 2023

  • AN & Nitric Acid
    $46M-30.4%
  • Ammonia
    $26.8M-48.5%
  • Other
    $11.3M-27.2%

Forward guidance

The outlook for nitrogen fertilizers is favorable, with attractive U.S. corn futures prices supporting fertilizer demand. Ammonia demand has been strong, with stable pricing due to robust agricultural demand and constrained imports into Europe. UAN demand and pricing are expected to remain strong through much of Q2 2024, driven by tight inventories and lower import levels. The industrial and mining business is robust, supported by steady demand for industrial products and AN for mining applications.

Tailwinds

  • Current prices for ammonia and other nitrogen products should prove attractive to retailers and farmers
  • Attractive U.S. corn futures prices are providing support for fertilizer demand for the 2024 application season
  • Robust agricultural demand in the fourth quarter of 2023 and first quarter of 2024
  • Constrained ammonia imports into Europe from the Middle East due to the disruption of shipping through the Suez Canal
  • Steady demand for industrial products supported by resilient U.S. economy

Headwinds

  • Lower import levels due to unplanned production issues
  • Pricing for all of our products declined during the quarter
  • Net sales declined during the quarter
  • Operating income declined during the quarter
  • Turnarounds at Pryor and Cherokee facilities during the second half of the year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.6%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+6.2%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+34.0%

Q1 2017

Best reaction

-54.7%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%+0.7%-17.4%
Q4 2025+15.5%+19.2%+62.7%
Q3 2025-0.1%-8.3%-2.9%
Q1 2025+4.9%+4.8%+24.5%
Q4 2024-4.0%-12.7%-14.3%
Q3 2024-6.8%-5.4%-1.4%
Q2 2024+5.1%-8.3%-11.0%
Q1 2024+13.3%+3.7%+17.7%
Q4 2023+1.1%+4.1%+17.4%
Q3 2023-1.4%-8.7%-0.7%
Q2 2023+3.7%+2.1%-10.8%
Q1 2023+2.0%-1.3%+6.8%
Q4 2022+5.2%+6.4%-21.5%
Q3 2022-5.6%-5.9%-16.2%
Q2 2022+9.8%+9.2%+34.8%
Q1 2022-4.3%-12.6%-0.7%
Q4 2021+22.5%+42.5%+92.3%
Q3 2021-2.7%+2.5%+0.8%
Q2 2021+2.0%+7.6%+1.6%
Q1 2021-3.5%-5.5%-4.4%
Q4 2020+14.2%+19.3%+10.0%
Q3 2020-11.4%-1.0%+43.8%
Q2 2020+4.5%+1.8%+105.5%
Q1 2020-5.8%-19.0%-27.0%
Q4 2019-19.9%-19.1%-9.5%
Q3 2019-20.6%-16.2%-28.5%
Q2 2019+28.9%+26.4%+18.8%
Q1 2019-4.4%-5.7%-39.1%
Q4 2018-5.5%-4.1%-14.7%
Q3 2018-10.6%-13.1%-16.1%
Q2 2018-11.9%-16.5%-6.2%
Q1 2018+3.7%-1.2%-7.3%
Q4 2017+10.9%+4.0%-14.8%
Q3 2017+1.6%+4.4%+20.3%
Q2 2017-26.3%-26.7%-39.1%
Q1 2017+34.0%+53.7%+30.8%
Q4 2016+23.9%+20.5%+5.8%
Q3 2016+18.1%+39.6%+54.9%
Q2 2016+5.0%-2.6%-2.4%
Q1 2016-34.0%
Q4 2015+25.1%
Q3 2015-54.7%
Q2 2015-31.7%
Q1 2015-2.0%
Q4 2014+2.5%
Q3 2014-10.7%
Q2 2014-1.8%
Q1 2014-1.5%
Q4 2013-4.1%
Q3 2013-12.3%
Q1 2011+2.5%
Q2 2013+7.0%
Q1 2013+0.3%
Q4 2012-0.9%
Q3 2012-5.9%
Q2 2012+8.0%
Q1 2012+3.3%
Q4 2009+12.1%
Q4 2011+12.1%
Q3 2010-11.9%
Q3 2011-11.9%
Q4 2010-1.0%
Q2 2011-1.0%
Q2 2010-1.0%
Q1 2010-6.8%

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