LSB Industries, Inc. Provides 2018 First Quarter Outlook
Results In-Line with Management Expectations
Additionally, ammonia on-stream rates for the first quarter of 2018 for
The Company plans to issue results for the first quarter ended
The preliminary information provided herein is based on information
available to management as of the date of this press release. The
information for the quarter ended
Forward-Looking Statements
This
press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally are identifiable by use of the
words “may,” “believe,” “expect,” “intend,” “plan to,” “estimate,”
“project” or similar expressions, and include but are not limited to:
financial performance improvement; view on sales to mining customers;
estimates of consolidated depreciation and amortization and future
turnaround expenses; our expectation of production consistency and
enhanced reliability at our Facilities; our projections of trends in the
fertilizer market; improvement of our financial and operational
performance; our planned capital expenditures for 2018; reduction of
SG&A expenses; volume outlook and our ability to complete plant repairs
as anticipated.
Investors are cautioned that such forward-looking statements are not
guarantees of future performance and involve risk and uncertainties.
Though we believe that expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
expectations will prove to be correct. Actual results may differ
materially from the forward-looking statements as a result of various
factors. These and other risk factors are discussed in the Company’s
filings with the
(1) This is a Non-GAAP measure. Refer to the Non-GAAP Reconciliation section.
See Accompanying Tables
Non-GAAP Reconciliation
This news release includes certain “non-GAAP financial measures” under
the rules of the
EBITDA Reconciliation
EBITDA is
defined as net income (loss) plus interest expense, depreciation,
depletion and amortization (DD&A) (which includes DD&A of property,
plant and equipment and amortization of intangible and other assets),
less benefit for income taxes. We believe that certain investors
consider EBITDA a useful means of measuring our ability to meet our debt
service obligations and evaluating our financial performance. EBITDA has
limitations and should not be considered in isolation or as a substitute
for net income, operating income, cash flow from operations or other
consolidated income or cash flow data prepared in accordance with GAAP.
Because not all companies use identical calculations, this presentation
of EBITDA may not be comparable to a similarly titled measure of other
companies. A reconciliation of the low and high ends of the outlook
provided for EBITDA for the company’s quarter ended
|
Three Months |
Three Months |
||||
Low End |
High End |
|||||
($ in millions) |
||||||
Net loss |
($6.7) |
($4.6) |
($6.0) |
|||
Plus: |
||||||
Interest expense |
9.3 |
9.3 |
9.4 |
|||
Depreciation, depletion and amortization |
18.0 |
18.5 |
17.6 |
|||
Benefit for income taxes1 |
(1.2) |
(0.8) |
(1.3) |
|||
EBITDA |
$19.4 |
$22.4 |
$19.7 |
|||
1 In
Adjusted EBITDA
Adjusted EBITDA
is reported to show the impact of one time/non-cash items such as, loss
on sale of a business and other property and equipment, one-time income
or fees, start-up/commissioning costs, certain fair market value
adjustments, non-cash stock-based compensation and severance costs. We
believe that the inclusion of supplementary adjustments to EBITDA is
appropriate to provide additional information to investors about certain
items. The following tables provide reconciliations of EBITDA excluding
the impact of the supplementary adjustments. Our policy is to adjust for
non-cash or non-recurring items that are greater than $0.5 million
quarterly or cumulatively. A reconciliation of the low and high ends of
the outlook provided for adjusted EBITDA for the company’s quarter ended
Three Months |
Three Months |
|||||
Low End |
High End |
|||||
($ in millions) |
||||||
EBITDA: | $19.4 | $22.4 | $19.7 | |||
Stock-based compensation | 1.4 | 1.4 | 1.2 | |||
Fair market value adjustment on preferred stock |
(0.8) | (0.8) | - | |||
Derecognition of death benefit accrual | - | - | (1.4) | |||
Loss on sale or disposal of assets | - | - | 0.5 | |||
Adjusted EBITDA | $20.0 | $23.0 | $20.0 | |||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180405005490/en/
Source:
LSB:
Mark Behrman, 405-235-4546
Chief Financial Officer
or
Investor
Relations:
The Equity Group Inc.
Fred Buonocore, CFA,
212-836-9607
Kevin Towle, 212-836-9620