NYSE$LXU

LSB Industries Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported operating results for the second quarter of 2024.

LSB Industries reported net sales of $140 million and a net income of $10 million for the second quarter ended June 30, 2024. The company repurchased approximately 0.8 million shares of common stock and $64 million in principal amount of Senior Secured Notes during the quarter. They also signed a five-year agreement to supply low carbon ammonium nitrate solution (ANS) to Freeport Minerals Corporation.

  • Net sales were $140 million compared to $166 million in the second quarter of 2023.
  • Net income was $10 million compared to $25 million in the second quarter of 2023.
  • Diluted EPS was $0.13 compared to $0.33 for the second quarter of 2023.
  • Adjusted EBITDA was $41 million compared to $47 million in the second quarter of 2023.

Headline financials

Total Revenue

$140M

Previous: $166M-15.5%
EPS

$0.13

Previous: $0.25-48.0%
Adjusted EBITDA

$41.9M

No prior period
AN & Nitric Acid Volume

147.6K

No prior period
UAN Volume

137.5K

No prior period
Ammonia Volume

72.3K

No prior period
AN & Nitric Acid Price

$337.00

No prior period
UAN Selling Price

$271.00

No prior period
Ammonia Selling Price

$368.00

No prior period
Tampa Ammonia Benchmark

$440.00

No prior period
NOLA UAN Benchmark

$246.00

No prior period
Avg Gas Cost (Materials)

$1.70

No prior period
Avg Gas Cost (Production)

$1.92

No prior period
Capital Expenditures

-$33M

Previous: -$32.3M-2.4%
Free Cash Flow

-$23.5M

Previous: -$7.17M-227.7%
Net Income

$9.56M

Previous: $25.1M-61.9%
Operating Income

$14.4M

Previous: $27.5M-47.6%
Gross Profit

$27.4M

Previous: $36M-23.9%
Cash & Equivalents

$216M

Previous: $45.1M+379.8%
Total Assets

$1.19B

Previous: $1.3B-8.7%
Stock-Based Comp

$2.1M

Previous: $1.93M+8.9%

Revenue & EPS history

LSB Industries · Revenue · Quarterly

$140M

Q2 2024-15.5%vs Q2 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

LSB Industries has commenced a Turnaround at their Pryor facility and plan to conduct a Turnaround at their Cherokee facility in the fourth quarter. The EPA is currently indicating a final decision next Spring on the Class VI permit application submitted by their partner, Lapis Energy, for their El Dorado carbon capture and sequestration project. The company anticipates proceeding to a full FEED study for their Houston Ship Channel project and continues to have productive conversations with potential off-take parties for the low carbon product from this facility.

Tailwinds

  • Industrial business remains stable.
  • Metals commodity prices are very supportive of maximizing production.
  • Ammonia market is healthy and pricing has been strong.
  • UAN pricing remains solid.
  • Pre-FEED is underway with expected completion in Q4'24 for Houston Ship Channel Blue Ammonia project.

Headwinds

  • Corn futures prices have weakened.
  • Increased stocks-to-use ratios.
  • USDA forecasts for U.S. corn acres planted in 2024 higher than historical average.
  • Potentially offsetting the above factors could be the impact of wet weather in certain growing regions resulting in reduced yields.
  • Net sales and operating income declined during the quarter driven by lower pricing for UAN and our AN and nitric products coupled with lower sales volumes for HDAN and ammonia.

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 Q2 2024

Historical avgQ2 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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