UNITED STATES
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): August 6, 2009
LSB INDUSTRIES, INC.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
1-7677
|
73-1015226
|
||
|
(State
or other jurisdiction
of
incorporation)
|
(Commission
File
Number)
|
(IRS
Employer
Identification
No.)
|
||
|
16 South Pennsylvania Avenue,
Oklahoma City, Oklahoma
(Address of principal executive offices) |
73107
(Zip
Code) |
|||
Registrant's telephone number,
including area code (405) 235-4546
Not applicable
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
Section
2 – Financial Information
Item
2.02. Results of Operations and Financial Condition
On August
6, 2009, LSB Industries, Inc. (the “Company”) issued a press release to report
its unaudited financial results for the second quarter ended June 30,
2009. The press release is attached hereto as Exhibit
99.1.
The
information contained in this Item 2.02 of this Form 8-K and the Exhibit
attached hereto are being furnished and shall not be deemed “filed” for the
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.
Item
9.01. Exhibits
The
information contained in the accompanying Exhibit 99.1 shall not be deemed filed
for purposes of Section 18 of the Exchange Act or incorporated by reference in
any filing under the Exchange Act or the Securities Act, except as shall be
expressly set forth by specific reference in such filing.
(d)
Exhibits.
Exhibit Description
99.1 Press
Release issued by LSB Industries, Inc., dated August 6, 2009.
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.
Dated:
August 7, 2009
LSB
INDUSTRIES, INC.
By: /s/Tony M. Shelby
Name: Tony
M. Shelby
Title: Executive
Vice President of Finance,
Chief
Financial Officer
|
COMPANY
CONTACT:
|
Investor
Relations Contact:
|
|
Tony
M. Shelby, Chief Financial Officer
|
Linda
Latman (212) 836-9609
|
|
(405)
235-4546
|
Lena
Cati (212) 836-9611
|
|
|
The
Equity Group Inc.
|
LSB INDUSTRIES, INC. REPORTS
RESULTS
FOR THE 2009 SECOND
QUARTER
OKLAHOMA
CITY, Oklahoma…August 6, 2009… LSB Industries, Inc. (NYSE: LXU) announced today
net income available to common shareholders for the second quarter of 2009 of
$8.7 million ($0.38 per diluted share), as compared to $17.9 million ($0.75 per
diluted share) in the same period in 2008.
Second Quarter 2009
Financial Highlights Compared to Second Quarter 2008:
|
§
|
Net
sales were $138.6 million, a 30.0% decline from $198.1
million;
|
|
§
|
Operating
income was $14.5 million compared to $29.3
million;
|
|
§
|
Net
income was $8.7 million compared to $17.9
million;
|
|
§
|
Diluted
earnings per common share was $0.38 compared
$0.75.
|
First Six Months 2009
Financial Highlights Compared to First Six Months 2008:
|
·
|
Net
sales were $288.8 million, a 19.4% decline from $358.5
million;
|
|
·
|
Operating
income was $34.0 million compared to $48.7
million;
|
|
·
|
Net
income was $20.5 million compared to $28.8
million;
|
|
·
|
Net
income applicable to common shareholders decreased to $20.2 million from
$28.5 million;
|
|
·
|
Diluted
earnings per common share was $0.89 compared to
$1.21.
|
Discussion of Second Quarter
of 2009:
Net sales
for the second quarter of 2009 were $138.6 million compared to $198.1 million
for the 2008 second quarter. The sales decrease of $59.5 million includes a
decrease of $13.6 million in our Climate Control Business and a decrease of
approximately $43.6 million in our Chemical Business.
For the
second quarter of 2009, our operating income was $14.5 million compared to $29.3
million for the same period in 2008. The $14.8 million decline in operating
income was primarily attributable to a $14.3 million decline in our Chemical
Business.
There are
certain items in the second quarter results of both years that require
explanation for a full understanding of Chemical’s results of operations and the
comparability to the prior year second quarter, as follows:
Operating
Income:
The
second quarter of 2008 included a one-time gain from a litigation judgment of
$7.6 million.
The
second quarter of 2009, as compared to 2008, included:
|
·
|
$3.1
million lower profit margins on UAN fertilizer as a result of lower tons
sold and lower margins, offset by $1.1 million of gross profit margins in
excess of current market prices due to firm sales commitments made in
2008.
|
|
·
|
Losses
of $300,000 on natural gas hedging contracts compared to gains
of $1.2 million in the 2008 quarter, a swing of $1.5
million.
|
|
·
|
Start
up expenses of the Pryor facility of $3.2 million compared to $0.5 million
in 2008.
|
These
four items account for $13.8 million of the $14.3 million decline in the
Chemical Business operating income. The balance is due to lower
margins on lower industrial and mining sales volumes, offset partly by improved
plant efficiencies at the El Dorado facility.
Net
income was $8.7 million for the second quarter of 2009 compared to $17.9 million
for the same period of 2008. The net decrease of $9.2 million includes, among
other items, the Chemical Business related variances of $14.3 million discussed
above less a provision for income taxes at the effective rate for the second
quarter of approximately 38%.
Climate
Control Business –
Net sales
for the Climate Control Business totaled $67.0 million, a 16.9% decrease from
the second quarter of 2008 primarily due to lower demand for hydronic fan coil
products.
Despite a
16.9% decrease in sales, Climate Control’s gross profit was down only $0.9
million as a result of improved gross margins as a percentage of sales from
32.2% in the second quarter of 2008 to 37.3% for second quarter of 2009. This
improvement is primarily related to product mix and lower raw material
costs.
Segment
operating income increased 3.1% from the same period in 2008 due to the
improvement in gross margin as a percentage of sales and operating expense
savings related to lower sales volume.
Bookings
of new product orders during the second quarter were $54.7 million compared to
$75.6 million in the second quarter of 2008. Lower bookings were
generally a result of the lower level of commercial construction activity,
caused by the recession.
At June
30, 2009, the backlog of product orders was $49.5 million compared to $68.5
million at December 31, 2008 and $56.8 million at March 31, 2009.
Chemical
Business –
Net sales
for the Chemical Business totaled $69.9 million, a 38.4% decline from the second
quarter of 2008. The decrease in sales is primarily attributable to
declines in selling prices for our products resulting from steep declines in our
raw material feedstock and fewer tons of products sold in our industrial and
mining markets. Lower shipments of industrial and mining products were due to
generally lower demand for these products caused by the economic
downturn.
The gross
margin as a percentage of sales of the Chemical Business was 17.6%, up from
14.5% in the same period last year.
During
the second quarter 2009, we were able to maintain profitability, despite lower
selling prices of the products we produce, because the primary raw material
feedstocks we use also declined in price compared to the second quarter of
2008.
Other Special Items for the
First Six Months 2009:
Operating
expenses for 2009 included expenses of $5.2 million compared to $0.9 million in
the same period last year associated with the start up of the Pryor
Facility.
Also
included in the 2009 pre-tax income is a gain of $1.7 million from
extinguishment of debt as a result of acquiring $9.2 million of our Debentures
Due 2012, below face value.
CEO’s
Remarks:
Jack
Golsen, LSB’s Board Chairman and CEO stated: “Through the first half of the
year, LSB performed well, especially in light of the overall weakness in the
economy. Both our Climate Control and Chemical Businesses turned in respectable
numbers, despite the current business slowdown. However, due to reductions in
the commercial and residential construction industries, as well as general
industrial production in North America, we don’t believe these results are
sustainable in the second half of the year.
“Due to
current economic conditions, especially in the commercial construction sector,
product orders and backlog in our Climate Control Business have
declined. With the added pressure of competition in the markets we
serve, plus recent increases in the cost of raw materials, we expect to see some
erosion in our Climate Control Business’ results in the short-term. At the same
time, we are confident in the long-term prospects of the Climate Control
Business and are continuing to increase our sales and marketing efforts for all
of our climate control products. Over time, we believe that the recently enacted
federal tax credits for geothermal heat pumps should have a positive
impact on sales of those highly energy efficient and green
products.
“With
respect to our Chemical Business, we believe sales and margins in all three of
its primary markets will be down due to the decline in business activity in
these markets. However, it does appear from published reports that
nitrogen fertilizer prices and demand are beginning to firm up. Koch Nitrogen
Company has started to pre-sell the UAN production at our Pryor, Oklahoma plant,
and production at that facility is expected to start later in the third quarter,
barring delays.
“During
the second quarter, we continued to improve our balance sheet, by reducing
long-term debt, and increasing cash and stockholders’ equity. We purchased $3.5
million face value of our Debentures that are due in 2012 in negotiated
transactions at various discounts from face value bringing our total purchases
of our Debentures in 2009 to $9.2 million. As a result of this and prior
acquisitions of these Debentures, only $31.3 million remains outstanding at June
30, 2009.
“While we
look forward to an economic recovery, we continue to invest in the areas that we
believe have long-term strategic growth potential for LSB.”
Conference
Call
LSB’s
management will host a conference call covering the second quarter results on
Thursday, August 6, 2009 at 5:15 pm EDT/4:15 pm CDT to discuss these results and
recent corporate developments. Participating in the call will be CEO,
Jack E. Golsen; President and COO, Barry H. Golsen; and Executive Vice President
and CFO, Tony M. Shelby. Interested parties may participate in the call by
dialing 706-679-3079. Please call in ten minutes before the
conference is scheduled to begin and ask for the LSB conference
call.
To listen
to a webcast of the call, please go to the Company’s website at www.lsb-okc.com at
least 15 minutes before the conference call to download and install any
necessary audio software. If you are unable to listen live, the
conference call webcast will be archived on the Company’s website. We
suggest listeners use Microsoft Explorer as their web browser.
LSB Industries,
Inc.
LSB is a
manufacturing, marketing and engineering company. LSB’s principal
business activities consist of the manufacture and sale of commercial and
residential climate control products, such as geothermal and water source heat
pumps, hydronic fan coils, large custom air handlers, the manufacture and sale
of chemical products for the mining, agricultural and industrial markets, and
the provision of specialized engineering services and other
activities.
This
press release contains certain forward-looking statements within the meaning of
the Private Securities Litigation Act of 1995. These forward-looking
statements generally are identifiable by use of the words “believe,” “expects,”
“intends,” “anticipates,” “plans to,” “estimates,” “projects” or similar
expressions, and such forward-looking statements include, but are not limited
to, production at the new Pryor Chemical facility is expected to start later in
the third quarter; due to reductions in the construction industries, as well as
general industrial production, we don’t believe the results we achieved the
first half of 2009 are sustainable in the second half of the
year; expect to see some erosion in our Climate Control Business in
the short-term, and at the same time we are confident in the long-term prospects
of the Climate Control Business; positive effects on our sales of geothermal
heat pumps due to recently enacted federal tax credits for these products; lower
sales volumes of our Chemical products for the remainder of the year; and
investments in areas that we believe have long-term strategic growth
potential. Investors are cautioned that such forward-looking
statements are not guarantees of future performance and involve risk and
uncertainties, and that actual results may differ materially from the
forward-looking statements as a result of various factors, including, but not
limited to, general economic conditions, effect of the recession on the
commercial and residential construction industry, acceptance by the market of
our geothermal heat pump products, acceptance of
our
technology, changes to federal legislation or adverse regulations, available
working capital, ability to install necessary equipment and renovations at the
Pryor facility in a timely manner, ability to finance our investments, and other
factors set forth under “A Special Note Regarding Forward-Looking Statements”
contained in the Form 10-K for year ended December 31, 2008 and Form 10-Q’s
for quarters ended March 31, 2009, and June 30, 2009 for a discussion of a
variety of factors which could cause the future outcome to differ materially
from the forward-looking statements contained in this letter.
# #
#
See
Accompanying Tables
LSB
Industries, Inc.
Unaudited
Financial Highlights
Six
Months and Three Months Ended June 30, 2009 and 2008
|
Six
Months
|
Three
Months
|
||||
|
2009
|
2008
|
2009
|
2008
|
||
|
(In Thousands, Except Per Share
Amounts)
|
|||||
|
Net
sales
|
$ | 288,760 | $ | 358,507 | $ | 138,563 | $ | 198,052 | ||||||||
|
Cost
of sales
|
210,205 | 277,009 | 100,736 | 154,311 | ||||||||||||
|
Gross
profit
|
78,555 | 81,498 | 37,827 | 43,741 | ||||||||||||
|
Selling,
general and administrative expense
|
44,421 | 40,222 | 23,046 | 21,458 | ||||||||||||
|
Provisions
for losses on accounts receivable
|
28 | 292 | (24 | ) | 202 | |||||||||||
|
Other
expense
|
334 | 657 | 291 | 476 | ||||||||||||
|
Other
income
|
(190 | ) | (8,329 | ) | (28 | ) | (7,719 | ) | ||||||||
|
Operating
income
|
33,962 | 48,656 | 14,542 | 29,324 | ||||||||||||
|
Interest
expense
|
2,939 | 3,720 | 1,028 | 1,266 | ||||||||||||
|
Gain
on extinguishment of debt
|
(1,743 | ) | - | (421 | ) | - | ||||||||||
|
Non-operating
other income, net
|
(34 | ) | (862 | ) | (11 | ) | (345 | ) | ||||||||
|
Income
from continuing operations before provisions for income
taxes and equity in earnings of affiliate
|
32,800 | 45,798 | 13,946 | 28,403 | ||||||||||||
|
Provisions
for income taxes
|
12,800 | 17,429 | 5,451 | 10,709 | ||||||||||||
|
Equity
in earnings of affiliate
|
(488 | ) | (462 | ) | (248 | ) | (230 | ) | ||||||||
|
Income
from continuing operations
|
20,488 | 28,831 | 8,743 | 17,924 | ||||||||||||
|
Net
loss from discontinued operations
|
15 | 17 | 13 | 17 | ||||||||||||
|
Net
income
|
20,473 | 28,814 | 8,730 | 17,907 | ||||||||||||
|
Dividends
on preferred stock
|
306 | 306 | - | - | ||||||||||||
|
Net
income applicable to common stock
|
$ | 20,167 | $ | 28,508 | $ | 8,730 | $ | 17,907 | ||||||||
|
Weighted
average common shares:
|
||||||||||||||||
|
Basic
|
21,174 | 21,115 | 21,238 | 21,172 | ||||||||||||
|
Diluted
|
23,587 | 24,908 | 23,674 | 24,827 | ||||||||||||
|
Income
per common share:
|
||||||||||||||||
|
Basic:
|
$ | .95 | $ | 1.35 | $ | .41 | $ | .85 | ||||||||
|
Diluted:
|
$ | .89 | $ | 1.21 | $ | .38 | $ | .75 |
(See
accompanying notes)
LSB
Industries, Inc.
Notes
to Unaudited Financial Highlights
Six
and Three Months Ended June 30, 2009 and 2008
|
Note
1:
|
Net
income applicable to common stock is computed by adjusting net income by
the amount of preferred stock dividends. Basic income per
common share is based upon net income applicable to common stock and the
weighted average number of common shares outstanding during each
period.
|
|
|
Diluted
income per share is based on net income applicable to common stock plus
preferred stock dividends on preferred stock assumed to be converted, if
dilutive, and interest expense including amortization of debt issuance
costs, net of income taxes, on convertible debt assumed to be converted,
if dilutive, and the weighted average number of common shares and dilutive
common equivalent shares outstanding and the assumed conversion of
dilutive convertible securities
outstanding.
|
|
Note
2:
|
Realized
and unrealized gains (losses) included in earnings and the income
statement classifications are as
follows:
|
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
|
2009
|
2008
|
2009
|
2008
|
|
(In
Thousands)
|
|
Total
gains (losses) included in earnings:
|
|||||||||||||||
|
Cost
of sales – Commodities contracts
|
$
|
(1,148
|
)
|
$
|
4,488
|
$
|
8
|
$
|
1,291
|
||||||
|
Cost
of sales – Foreign exchange contracts
|
(31
|
)
|
(35
|
)
|
(1
|
)
|
(35
|
)
|
|||||||
|
Interest
expense – Interest rate contracts
|
158
|
708
|
427
|
877
|
|||||||||||
|
$
|
(1,021
|
)
|
$
|
5,161
|
$
|
434
|
$
|
2,133
|
|
Change
in unrealized gains and losses relating to
contracts still held at period end:
|
|||||||||||||||
|
Cost
of sales – Commodities contracts
|
$
|
(969
|
)
|
$
|
861
|
$
|
30
|
$
|
808
|
||||||
|
Cost
of sales – Foreign exchange contracts
|
-
|
(15
|
)
|
-
|
(15
|
)
|
|||||||||
|
Interest
expense – Interest rate contracts
|
649
|
709
|
719
|
896
|
|||||||||||
|
$
|
(320
|
)
|
$
|
1,555
|
$
|
749
|
$
|
1,689
|
|
Note
3:
|
For
each of the six and three month periods ended June 30, 2008, we recognized
other income of $7.6 million, net of attorneys’ fees, relating to a
litigation judgment.
|
|
Note
4:
|
During
the six and three months ended June 30, 2009, we acquired $9.2 million and
$3.5 million, respectively, aggregate principal amount of the 2007
Debentures for approximately $7.1 million and $2.9 million, respectively.
As a result, we recognized a gain on extinguishment of debt of $1.7
million and $0.4 million, respectively, after writing off approximately
$0.4 million and $0.2 million, respectively, of the unamortized debt
issuance costs associated with the 2007 Debentures
acquired.
|
|
Note
5
|
Information
about the Company’s operations in different industry segments for the six
and three months ended June 30, 2009 and 2008 is detailed on the following
page.
|
LSB
INDUSTRIES, INC.
Notes
to Unaudited Financial Highlights (Continued)
Six
and Three Months Ended June 30, 2009 and 2008
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
|
2009
|
2008
|
2009
|
2008
|
|
(In
Thousands)
|
|
Net
sales:
|
|||||||||||||||
|
Climate
Control
|
$
|
139,030
|
$
|
146,949
|
$
|
66,982
|
$
|
80,626
|
|||||||
|
Chemical
|
144,371
|
204,788
|
69,893
|
113,458
|
|||||||||||
|
Other
|
5,359
|
6,770
|
1,688
|
3,968
|
|||||||||||
|
$
|
288,760
|
$
|
358,507
|
$
|
138,563
|
$
|
198,052
|
||||||||
|
Gross
profit: (1)
|
|||||||||||||||
|
Climate
Control (2)
|
$
|
47,426
|
$
|
47,454
|
$
|
24,998
|
$
|
25,932
|
|||||||
|
Chemical
(3)
|
29,429
|
31,852
|
12,281
|
16,499
|
|||||||||||
|
Other
|
1,700
|
2,192
|
548
|
1,310
|
|||||||||||
|
$
|
78,555
|
$
|
81,498
|
$
|
37,827
|
$
|
43,741
|
||||||||
|
Operating
income (loss): (4)
|
|||||||||||||||
|
Climate
Control (2)
|
$
|
21,204
|
$
|
21,182
|
$
|
12,226
|
$
|
11,855
|
|||||||
|
Chemical
(3) (5) (6)
|
18,835
|
32,627
|
6,197
|
20,502
|
|||||||||||
|
General
corporate expenses and other business operations, net (7)
|
(6,077
|
)
|
(5,153
|
)
|
(3,881
|
)
|
(3,033
|
)
|
|||||||
|
33,962
|
48,656
|
14,542
|
29,324
|
||||||||||||
|
Interest
expense
|
(2,939
|
)
|
(3,720
|
)
|
(1,028
|
)
|
(1,266
|
)
|
|||||||
|
Gains
on extinguishment of debt
|
1,743
|
-
|
421
|
-
|
|||||||||||
|
Non-operating
other income (expense), net:
|
|||||||||||||||
|
Climate
Control
|
-
|
1
|
-
|
-
|
|||||||||||
|
Chemical
|
6
|
64
|
3
|
60
|
|||||||||||
|
Corporate
and other business operations
|
28
|
797
|
8
|
285
|
|||||||||||
|
Provisions
for income taxes
|
(12,800
|
)
|
(17,429
|
)
|
(5,451
|
)
|
(10,709
|
)
|
|||||||
|
Equity
in earnings of affiliate-Climate Control
|
488
|
462
|
248
|
230
|
|||||||||||
|
Income
from continuing operations
|
$
|
20,488
|
$
|
28,831
|
$
|
8,743
|
$
|
17,924
|
|||||||
|
(1)
|
Gross
profit by industry segment represents net sales less cost of sales. Gross
profit classified as “Other” relates to the sales of industrial machinery
and related components.
|
|
(2)
|
During
the six and three months ended June 30, 2009, we recognized gains totaling
$789,000 and $326,000, respectively, on our futures contracts for copper.
During the six and three months ended June 30, 2008, we recognized gains
on our copper futures contracts totaling $2,685,000 and $109,000,
respectively. These gains contributed to an increase in gross profit and
operating income.
|
|
(3)
|
As
the result of entering into sales commitments with higher firm sales
prices during 2008, we recognized sales with a gross profit of $3,558,000
and $1,058,000 higher than our comparable product sales made at lower
market prices available during the six and three months ended June 30, of
2009, respectively. In addition, during the six and three months ended
June 30, 2009, we recognized recoveries of precious metals totaling
$2,222,000 and $9,000, respectively, compared to $792,000 for each of the
same periods in 2008. These transactions contributed to an increase in
gross profit and operating income for each respective period. During the
six and three months ended June 30, 2009, we recognized losses totaling
$1,937,000 and $318,000, respectively, on our futures/forward contracts
for natural gas and ammonia compared to gains totaling $1,803,000 and
$1,182,000 for each of the same periods in 2008, respectively. These
losses contributed to a decrease (gains contributed to an increase) in
gross profit and operating income for each respective
period.
|
|
|
(4)
|
Our
chief operating decision makers use operating income by industry segment
for purposes of making decisions which include resource allocations and
performance evaluations. Operating income by industry segment represents
gross profit by industry segment less selling, general and administration
expense (“SG&A”) incurred by each industry segment plus other income
and other expense earned/incurred by each industry segment before general
corporate expenses and other business operations, net. General corporate
expenses and other business operations, net, consist of unallocated
portions of gross profit, SG&A, other income and other
expense.
|
|
|
(5)
|
For
each of the six and three month periods ended June 30, 2008, we recognized
income of $7,560,000, net of attorneys’ fees, relating to a litigation
judgment.
|
|
(6)
|
During
the six and three months ended June 30, 2009, we incurred expenses of
$5,213,000 and $3,217,000, respectively, associated with the start up of
our idle chemical facility located in Pryor, Oklahoma (the “Pryor
Facility”) that we are in the process of activating. For the six and three
months ended June 30, 2008, we incurred expenses of $919,000 and $498,000,
respectively, associated with maintaining the Pryor
Facility.
|
|
(7)
|
The
amounts included are not allocated to our Climate Control and Chemical
Businesses since these items are not included in the operating results
reviewed by our chief operating decision makers for purposes of making
decisions as discussed above. A detail of these amounts are as
follows:
|
LSB
Industries, Inc.
Consolidated
Balance Sheets
(unaudited)
|
June
30,
2009
|
December
31,
2008
|
|||||||||
|
(In
Thousands)
|
||||||||||
|
Assets
|
||||||||||
|
Current
assets:
|
||||||||||
|
Cash
and cash equivalents
|
$
|
63,008
|
$
|
46,204
|
||||||
|
Restricted
cash
|
375
|
893
|
||||||||
|
Accounts
receivable, net
|
64,122
|
78,846
|
||||||||
|
Inventories:
|
||||||||||
|
Finished
goods
|
27,716
|
30,679
|
||||||||
|
Work
in process
|
2,589
|
2,954
|
||||||||
|
Raw
materials
|
21,376
|
27,177
|
||||||||
|
Total
inventories
|
51,681
|
60,810
|
||||||||
|
Supplies,
prepaid items and other:
|
||||||||||
|
Prepaid
insurance
|
1,467
|
3,373
|
||||||||
|
Precious
metals
|
14,575
|
14,691
|
||||||||
|
Supplies
|
4,800
|
4,301
|
||||||||
|
Other
|
1,841
|
1,378
|
||||||||
|
Total
supplies, prepaid items and other
|
22,683
|
23,743
|
||||||||
|
Deferred
income taxes
|
7,777
|
11,417
|
||||||||
|
Total
current assets
|
209,646
|
221,913
|
||||||||
|
Property,
plant and equipment, net
|
108,780
|
104,292
|
||||||||
|
Other
assets:
|
||||||||||
|
Debt
issuance costs, net
|
1,988
|
2,607
|
||||||||
|
Investment
in affiliate
|
3,766
|
3,628
|
||||||||
|
Goodwill
|
1,724
|
1,724
|
||||||||
|
Other,
net
|
1,812
|
1,603
|
||||||||
|
Total
other assets
|
9,290
|
9,562
|
||||||||
|
$
|
327,716
|
$
|
335,767
|
|||||||
(Continued
on following page)
LSB
Industries, Inc.
Consolidated
Balance Sheets
(unaudited)
|
June
30,
2009
|
December
31,
2008
|
||||||
|
(In
Thousands)
|
|||||||
|
Liabilities
and Stockholders’ Equity
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable
|
$
|
31,222
|
$
|
43,014
|
|||
|
Short-term
financing
|
452
|
2,228
|
|||||
|
Accrued
and other liabilities
|
26,393
|
39,236
|
|||||
|
Current
portion of long-term debt
|
2,036
|
1,560
|
|||||
|
Total
current liabilities
|
60,103
|
86,038
|
|||||
|
Long-term
debt
|
97,305
|
103,600
|
|||||
|
Noncurrent
accrued and other liabilities
|
9,950
|
9,631
|
|||||
|
Deferred
income taxes
|
8,528
|
6,454
|
|||||
|
Contingencies
|
|||||||
|
Stockholders'
equity:
|
|||||||
|
Series
B 12% cumulative, convertible preferred stock, $100 par value;
20,000 shares issued and outstanding
|
2,000
|
2,000
|
|||||
|
Series
D 6% cumulative, convertible Class C preferred stock, no par
value; 1,000,000 shares issued
|
1,000
|
1,000
|
|||||
|
Common
stock, $.10 par value; 75,000,000 shares authorized, 25,348,770
shares issued (24,958,330 at December 31, 2008)
|
2,535
|
2,496
|
|||||
|
Capital
in excess of par value
|
129,076
|
127,337
|
|||||
|
Accumulated
other comprehensive loss
|
-
|
(120
|
)
|
||||
|
Retained
earnings
|
39,971
|
19,804
|
|||||
|
174,582
|
152,517
|
||||||
|
Less
treasury stock at cost:
|
|||||||
|
Common
stock, 3,867,462 shares (3,848,518 at December 31, 2008)
|
22,752
|
22,473
|
|||||
|
Total
stockholders' equity
|
151,830
|
130,044
|
|||||
|
$
|
327,716
|
$
|
335,767
|
||||