NYSE$LXU

LSB Industries Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported record third-quarter adjusted EBITDA and positioned for profitable growth after transformative exchange transaction and debt refinancing.

LSB Industries reported a strong third quarter with a 72% increase in net sales and a nearly 270% increase in adjusted EBITDA compared to the same period last year. The company completed a preferred stock exchange transaction and debt refinancing, significantly reducing its cost of capital and improving liquidity.

  • Net sales reached $127.2 million, a significant increase from $74.0 million in Q3 2020.
  • Adjusted EBITDA was $37.7 million, substantially higher than the $10.2 million reported in Q3 2020.
  • Adjusted EBITDA margin improved to 29.6% compared to 13.8% in the same quarter of the previous year.
  • Total liquidity stood at approximately $81.1 million as of September 30, 2021.

Headline financials

Total Revenue

$127M

Previous: $74M+72.0%
EPS (adj)

$0.07

Previous: -$0.82+108.5%
Adjusted EBITDA

$37.7M

No prior period
Capital Expenditures

-$26.1M

Previous: -$22.2M-17.4%
Free Cash Flow

-$35M

Previous: -$42.6M+17.8%
Net Income

-$8.93M

Previous: -$20.4M+56.2%
Operating Income

$5.37M

Previous: -$9M+159.7%
Gross Profit

$17.4M

Previous: -$1.06M+1747.5%
Cash & Equivalents

$32.9M

Previous: $42.1M-21.9%
Total Assets

$1.07B

Previous: $1.07B+0.4%
Stock-Based Comp

$4.33M

No prior period

Revenue & EPS history

LSB Industries · Revenue · Quarterly

$127M

Q3 2021+72%vs Q3 2020
Beat estimate in 11 of 15 quarters(73%)
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 company anticipates continued strong sales and adjusted EBITDA levels for the remainder of 2021 and into 2022, driven by favorable conditions in agricultural markets, solid demand in industrial markets, and the benefits of a lower cost capital structure.

Tailwinds

  • Stronger farm incomes in 2020.
  • Increased demand for corn from China and other countries.
  • Dry conditions in South America and the Western U.S. constricting global corn supplies.
  • Continued expansion in key end markets including homebuilding and power generation.
  • Strength in the Tampa ammonia price benefitting the industrial business.

Headwinds

  • Auto sales have backed off after rebounding from early 2020 pandemic lows and reaching peak levels in April of 2021 due to a shortage of microprocessors
  • Surge in natural gas prices
  • Turnaround at Cherokee facility
  • Lost fixed cost absorption resulting from the aforementioned Turnaround at the Cherokee facility and higher natural gas feedstock prices
  • Global ammonia supply constraining and causing further increase in ammonia selling prices.

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 Q3 2021

Historical avgQ3 2021

-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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