SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 12, 2003
LSB INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware
1-7677
73-1015226
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
16 South Pennsylvania Avenue, Oklahoma City, Oklahoma
73107
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (405) 235-4546
Not applicable
(Former name or former address, if changed since last report)
Item 7. Exhibits
(c) ExhibitsPress release dated November 10, 2003
Exhibit Number Description
99.1
Item 12.
Results of Operations and Financial Condition.On November 10, 2003, LSB Industries, Inc. (the "Company") issued a press release to report its financial results for the quarter ended September 30, 2003. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Form 8-K and the Exhibit attached hereto is being furnished under Item 12 and shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934 (as amended), or otherwise subject to the liabilities of such section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 (as amended), except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LSB INDUSTRIES, INC.
By:
/s/ Tony M. Shelby
Tony M. Shelby,
Executive Vice President and
(Chief Financial Officer)
COMPANY CONTACT: Tony M. Shelby
Chief Financial Officer
(405) 235-4546
KCSA CONTACT: Leslie A. Schupak/Joe Mansi
(212) 682-6300, ext. 205/207
November 10, 2003
OTC: LSBD
LSB INDUSTRIES, INC. REPORTS RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003
Oklahoma City, Oklahoma . . . November
10, 2003 . . . LSB Industries, Inc. (OTC Bulletin Board: LSBD), reported a net income of $2.4 million for the three months ended September 30, 2003.
Results for three months ended September 30, 2003
Net sales from continuing operations for the three months ended September 30, 2003 and 2002 were $79.0 million and $69.4 million, respectively, an increase of $9.6 million.
For the three months ended September 30, 2003, the Company reported a net income of $2.4 million. After deducting $.6 million for preferred stock dividend requirements, which were not paid, the net income applicable to common stock was $1.8 million or $.12 per share fully diluted.
For the three months ended September 30, 2002, the net loss was $2.7 million. After deducting preferred stock dividend requirements which were not paid, net loss applicable to common stock was $3.3 million, or $.27 per share fully diluted.
For the nine months ended September 30, 2003, the Company reported net income of $3.1 million, compared to a net loss of $3.6 million for the comparable period last year. The loss for 2002 is after including $860,000 income from the cumulative effect of accounting change. After deducting $1.7 million for dividend requirements on outstanding preferred stocks, which were not paid, the net income applicable to common stock for 2003 was $ 1.4 million, or $.10 per share fully diluted, compared to a net loss applicable to common stock of $5.3 million or $.44 per share fully diluted for the same period last year.
(continued)
The Company is a manufacturing, marketing, and engineering company with activities on a world wide basis. The Company's principal business activities consist of the manufacture and sale of commercial and residential climate control products, the manufacture and sale of chemical products for the mining, agricultural and industrial markets, the provision of specialized engineering services, and other activities. The Company's common stock and Series 2 preferred stock are listed for trading on the Over-the-Counter Bulletin Board.
LSB Industries, Inc.
Financial Highlights (Notes)
Nine Months and Three Months Ended September 30, 2003 and 2002
(unaudited)
|
Nine Months Ended |
Three Months Ended |
| 2003 | 2002 | 2003 | 2002 |
|
Net sales |
$ |
240,509 |
$ |
218,236 |
$ |
79,023 |
$ |
69,443 | |||||||
|
Cost of sales |
203,906 |
182,095 |
65,218 |
58,729 | |||||||||||
|
Gross profit |
36,603 |
36,141 |
13,805 |
10,714 | |||||||||||
|
Selling, general and administrative expenses |
30,981 |
31,093 |
10,490 |
10,082 |
|||||||||||
|
Operating income |
5,622 |
5,048 |
3,315 |
632 |
|||||||||||
|
Other income (expense): |
|||||||||||||||
|
Other income |
2,464 |
1,622 |
928 |
198 |
|||||||||||
|
Benefit from termination of
firm purchase |
|
|
|
|
|||||||||||
|
Interest expense |
(4,166 |
) |
(6,278 |
) |
(1,321 |
) |
(1,396 |
) |
|||||||
|
Other expense |
(827 |
) |
(617 |
) |
(558 |
) |
(95 |
) |
|||||||
|
Income from continuing operations before |
|
|
|
|
|
||||||||||
|
Provision for income taxes |
- |
22 |
- |
22 |
|||||||||||
|
Income from continuing operations before |
|
|
|
|
|
||||||||||
|
Loss from discontinued operations, net |
- |
(4,510 |
) |
- |
(2,027 |
) |
|||||||||
|
Cumulative effect of accounting change |
- |
860 |
- |
- | |||||||||||
|
Net income (loss) |
$ |
3,093 |
$ |
(3,607 |
) |
$ |
2,364 |
$ |
(2,710 |
) |
|||||
|
Net income (loss) applicable to common stock |
$ |
1,393 |
$ |
(5,308 |
) |
$ |
1,797 |
$ |
(3,277 |
) |
|||||
Income (loss) per common share |
|||||||||||||||
|
Basic: |
|||||||||||||||
|
Income (loss) from continuing operations |
$ |
.11 |
$ |
(.13 |
) |
$ |
.14 |
$ |
(.10 |
) |
|||||
|
Loss from discontinued operations, net |
- |
(.38 |
) |
- |
(.17 |
) |
|||||||||
|
Cumulative effect of accounting change |
- |
.07 |
- |
- | |||||||||||
|
Net income (loss) |
$ |
.11 |
$ |
(.44 |
) |
$ |
.14 |
$ |
(.27 |
) |
|||||
|
Diluted: |
|||||||||||||||
|
Income (loss) from continuing operations |
$ |
.10 |
$ |
(.13 |
) |
$ |
.12 |
$ |
(.10 |
) |
|||||
|
Loss from discontinued operations, net |
- |
(.38 |
) |
- |
(.17 |
) |
|||||||||
|
Cumulative effect of accounting change |
- |
.07 |
- |
- |
|||||||||||
|
Net income (loss) |
$ |
.10 |
$ |
(.44 |
) |
$ |
.12 |
$ |
(.27 |
) |
(See accompanying notes)
LSB Industries, Inc.
Notes to Unaudited Financial Highlights
Nine Months and Three Months Ended September 30, 2003 and 2002
(unaudited)
Note 1: Basis of Presentation Certain reclassifications have been made to the Financial Highlights for 2002 to conform to the Financial Highlights presentation for 2003.
Note 2: In December 2002, the Company completed the sale of all of the operating assets of two of the Company's wholly-owned subsidiaries formerly included in the Chemical Business, principally in the packaged explosive business, which business was not considered by the Company to be part of its core Chemical Business. The operations of the sold subsidiaries are reflected as discontinued operations in the accompanying Financial Highlights for 2002.
Note 3: Net income (loss) applicable to common stock is computed by adjusting net income (loss) by the amount of preferred stock dividends. Basic income (loss) per common share is based upon net income (loss) applicable to common stock and the weighted average number of common shares outstanding during each period. Diluted income (loss) per share is based on the weighted average number of common shares and dilutive common equivalent shares outstanding and the assumed conversion of dilutive convertible securities outstanding, if any, after appropriate adjustment for interest, net of related income tax effects on convertible notes payable, as applicable.
Note 4: Information about the Company's operations in different industry
segments for the nine months and three months ended September 30, 2003 and 2002,
is detailed on the following page.
(continued)
LSB INDUSTRIES, INC.
Notes to Unaudited Financial Highlights
Nine Months and Three Months Ended September 30, 2003 and 2002
(Unaudited)
|
Nine Months Ended |
Three Months Ended |
|
2003 |
2002 |
2003 |
2002 |
|
(In thousands) |
|
Net sales: |
|||||||||||||||
|
Chemical |
$ |
146,975 |
$ |
113,562 |
$ |
46,429 |
$ |
34,826 |
|||||||
|
Climate Control |
90,290 |
101,255 |
31,653 |
33,434 |
|||||||||||
|
Other |
3,244 |
3,419 |
941 |
1,183 |
|||||||||||
|
$ |
240,509 |
$ |
218,236 |
$ |
79,023 |
$ |
69,443 |
||||||||
|
Gross profit: |
|||||||||||||||
|
Chemical |
$ |
8,047 |
$ |
5,431 |
$ |
4,275 |
$ |
173 |
|||||||
|
Climate Control |
27,461 |
29,493 |
9,243 |
10,164 |
|||||||||||
|
Other |
1,095 |
1,217 |
287 |
377 |
|||||||||||
|
$ |
36,603 |
$ |
36,141 |
$ |
13,805 |
$ |
10,714 |
||||||||
|
Operating profit (loss): |
|||||||||||||||
|
Chemical |
$ |
1,928 |
$ |
(1,782 |
) |
$ |
2,040 |
$ |
(2,344 |
) |
|||||
|
Climate Control |
9,320 |
12,510 |
3,440 |
4,524 |
|||||||||||
|
11,248 |
10,728 |
5,480 |
2,180 |
||||||||||||
|
General corporate expenses and other
business |
|
|
|
|
|
|
|
|
|||||||
|
Interest expense |
(4,166 |
) |
(6,278 |
) |
(1,321 |
) |
(1,396 |
) |
|||||||
|
Benefit from termination of firm purchase |
|
|
|
|
|||||||||||
|
Income (loss) from continuing operations before |
|
|
|
|
|
|
|
|
|