10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-7677

 

LSB Industries, Inc.

(Exact name of Registrant as specified in its charter)

 

 

Delaware

 

73-1015226

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

3503 NW 63rd Street, Suite 500, Oklahoma City, Oklahoma

 

73116

(Address of principal executive offices)

 

(Zip Code)

 

(Registrant's telephone number, including area code) (405) 235-4546

Not applicable

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, Par Value $.10

Preferred Stock Purchase Rights

 

LXU

N/A

 

New York Stock Exchange

New York Stock Exchange

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 ☐

Accelerated filer

 

 

 

 

 

 

 

Non-accelerated filer

 

 ☐

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The number of shares outstanding of the Registrant's common stock was 76,129,079 shares as of April 28, 2023.

 


 

FORM 10-Q OF LSB INDUSTRIES, INC.

TABLE OF CONTENTS

 

 

PART I – Financial Information

 

Page

 

 

 

 

 

Item 1.

 

Financial Statements

 

3

 

 

 

 

 

Item 2.

 

Management's Discussion and Analysis of Financial Condition and Results of Operations

 

17

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

27

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

27

 

 

 

 

 

 

 

PART II – Other Information

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

32

 

 

 

 

 

Item 1A.

 

Risk Factors

 

32

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

32

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

32

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

32

 

 

 

 

 

Item 5.

 

Other Information

 

32

 

 

 

 

 

Item 6.

 

Exhibits

 

32

 

When we refer to "us", "we", "our", "Company" or "LSB" we are describing LSB Industries, Inc. and its subsidiaries.

 

2


 

PART I

FINANCIAL INFORMATION

 

 

Item 1. Financial Statements

LSB INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Information at March 31, 2023 is unaudited)

 

 

March 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

48,949

 

 

$

63,769

 

Short-term investments

 

 

376,882

 

 

 

330,553

 

Accounts receivable

 

 

60,251

 

 

 

75,494

 

Allowance for doubtful accounts

 

 

(693

)

 

 

(699

)

Accounts receivable, net

 

 

59,558

 

 

 

74,795

 

Inventories:

 

 

 

 

 

 

Finished goods

 

 

28,102

 

 

 

28,893

 

Raw materials

 

 

1,530

 

 

 

1,990

 

Total inventories

 

 

29,632

 

 

 

30,883

 

Supplies, prepaid items and other:

 

 

 

 

 

 

Prepaid insurance

 

 

12,271

 

 

 

17,429

 

Precious metals

 

 

14,474

 

 

 

13,323

 

Supplies

 

 

28,570

 

 

 

27,501

 

Other

 

 

9,491

 

 

 

8,346

 

Total supplies, prepaid items and other

 

 

64,806

 

 

 

66,599

 

Total current assets

 

 

579,827

 

 

 

566,599

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

842,925

 

 

 

848,661

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

Operating lease assets

 

 

21,321

 

 

 

22,682

 

Intangible and other assets, net

 

 

1,697

 

 

 

1,877

 

 

 

 

23,018

 

 

 

24,559

 

 

 

 

 

 

 

 

 

 

$

1,445,770

 

 

$

1,439,819

 

(Continued on following page)

 

3


 

LSB INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

(Information at March 31, 2023 is unaudited)

 

 

March 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

68,341

 

 

$

78,182

 

Short-term financing

 

 

10,168

 

 

 

16,134

 

Accrued and other liabilities

 

 

43,617

 

 

 

38,470

 

Current portion of long-term debt

 

 

8,544

 

 

 

9,522

 

Total current liabilities

 

 

130,670

 

 

 

142,308

 

 

 

 

 

 

 

 

Long-term debt, net

 

 

702,071

 

 

 

702,733

 

 

 

 

 

 

 

 

Noncurrent operating lease liabilities

 

 

13,460

 

 

 

14,896

 

 

 

 

 

 

 

 

Other noncurrent accrued and other liabilities

 

 

522

 

 

 

522

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

69,095

 

 

 

63,487

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $.10 par value; 150 million shares authorized, 91.2 million
   shares issued

 

 

9,117

 

 

 

9,117

 

Capital in excess of par value

 

 

497,216

 

 

 

497,179

 

Retained earnings

 

 

214,993

 

 

 

199,092

 

 

 

 

721,326

 

 

 

705,388

 

Less treasury stock, at cost:

 

 

 

 

 

 

Common stock, 15.0 million shares (14.9 million shares at December 31, 2022)

 

 

191,374

 

 

 

189,515

 

Total stockholders' equity

 

 

529,952

 

 

 

515,873

 

 

 

$

1,445,770

 

 

$

1,439,819

 

 

See accompanying notes to condensed consolidated financial statements.

 

4


 

LSB INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

 

 

(In Thousands, Except Per Share Amounts)

 

Net sales

 

$

180,964

 

 

$

198,981

 

Cost of sales

 

 

139,359

 

 

 

108,251

 

Gross profit

 

 

41,605

 

 

 

90,730

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

 

9,867

 

 

 

10,935

 

Other expense (income), net

 

 

1,203

 

 

 

(176

)

Operating income

 

 

30,535

 

 

 

79,971

 

 

 

 

 

 

 

 

Interest expense, net

 

 

12,212

 

 

 

9,955

 

Non-operating other expense (income), net

 

 

(3,476

)

 

 

135

 

Income before provision for income taxes

 

 

21,799

 

 

 

69,881

 

Provision for income taxes

 

 

5,898

 

 

 

11,115

 

Net income

 

 

15,901

 

 

 

58,766

 

 

 

 

 

 

 

 

Income per common share:

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

Net income

 

$

0.21

 

 

$

0.66

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

Net income

 

$

0.21

 

 

$

0.65

 

See accompanying notes to condensed consolidated financial statements.

 

5


 

LSB INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

 

 

 

Common
Stock
Shares

 

 

Treasury
Stock-
Common
Shares

 

 

Common
Stock
Par
Value

 

 

Capital in
Excess of
Par
Value

 

 

Retained Earnings (Accumulated Deficit)

 

 

Treasury
Stock-
Common

 

 

Total

 

 

 

(In Thousands)

 

Balance at December 31, 2022

 

 

91,168

 

 

 

(14,888

)

 

$

9,117

 

 

$

497,179

 

 

$

199,092

 

 

$

(189,515

)

 

$

515,873

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,901

 

 

 

 

 

 

15,901

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

719

 

 

 

 

 

 

 

 

 

719

 

Shares issued restricted stock units

 

 

 

 

 

53

 

 

 

 

 

 

(682

)

 

 

 

 

 

682

 

 

 

 

Shares withheld restricted stock and
  restricted stock units vesting

 

 

 

 

 

(204

)

 

 

 

 

 

 

 

 

 

 

 

(2,541

)

 

 

(2,541

)

Balance at March 31, 2023

 

 

91,168

 

 

 

(15,039

)

 

$

9,117

 

 

$

497,216

 

 

$

214,993

 

 

$

(191,374

)

 

$

529,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2021

 

 

91,168

 

 

 

(1,375

)

 

$

9,117

 

 

$

493,161

 

 

$

(31,255

)

 

$

(10,533

)

 

$

460,490

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58,766

 

 

 

 

 

 

58,766

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

803

 

 

 

 

 

 

 

 

 

803

 

Other

 

 

 

 

 

(229

)

 

 

 

 

 

 

 

 

 

 

 

(1,871

)

 

 

(1,871

)

Balance at March 31, 2022

 

 

91,168

 

 

 

(1,604

)

 

$

9,117

 

 

$

493,964

 

 

$

27,511

 

 

$

(12,404

)

 

$

518,188

 

See accompanying notes to condensed consolidated financial statements.

 

6


 

LSB INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

15,901

 

 

$

58,766

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Deferred income taxes

 

 

5,608

 

 

 

10,823

 

Depreciation and amortization of property, plant and equipment

 

 

17,439

 

 

 

17,197

 

Stock-based compensation

 

 

719

 

 

 

803

 

Other

 

 

1,223

 

 

 

946

 

Cash provided (used) by changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

15,418

 

 

 

(11,707

)

Inventories

 

 

1,251

 

 

 

(10,817

)

Prepaid insurance

 

 

5,158

 

 

 

3,687

 

Supplies, prepaid items and other

 

 

(4,455

)

 

 

(6,253

)

Accounts payable

 

 

(4,861

)

 

 

10,003

 

Accrued interest

 

 

10,905

 

 

 

13,618

 

Other assets and other liabilities

 

 

(5,059

)

 

 

(1,574

)

Net cash provided by operating activities

 

 

59,247

 

 

 

85,492

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Expenditures for property, plant and equipment

 

 

(18,437

)

 

 

(8,254

)

Proceeds from short-term investments

 

 

88,707

 

 

 

 

Purchases of short-term investments

 

 

(133,660

)

 

 

(89,311

)

Other investing activities

 

 

11

 

 

 

51

 

Net cash used by investing activities

 

 

(63,379

)

 

 

(97,514

)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Net proceeds from 6.25% senior secured notes

 

 

 

 

 

200,000

 

Payments on other long-term debt

 

 

(2,180

)

 

 

(6,912

)

Payments on short-term financing

 

 

(5,967

)

 

 

(2,805

)

Payments of debt-related costs, including
   extinguishment costs

 

 

 

 

 

(4,102

)

Other financing activities

 

 

(2,541

)

 

 

(2,004

)

Net cash provided (used) by financing activities

 

 

(10,688

)

 

 

184,177

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

(14,820

)

 

 

172,155

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

63,769

 

 

 

82,144

 

Cash and cash equivalents at end of period

 

$

48,949

 

 

$

254,299

 

 

See accompanying notes to condensed consolidated financial statements.

 

 

7


LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1. Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements and notes of LSB have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in the Company’s Form 10-K for the year ended December 31, 2022 (our “2022 Form 10-K”), filed with the SEC on February 23, 2023. The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s results of operations and cash flows for the three-month periods ended March 31, 2023 and 2022 and the Company’s financial position as of March 31, 2023.

Basis of Consolidation LSB and its subsidiaries are consolidated in the accompanying condensed consolidated financial statements. LSB is a holding company with no significant operations or assets other than cash, cash equivalents, short-term investments and investments in its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation.

Nature of Business – We are engaged in the manufacture and sale of chemical products. The chemical products we primarily manufacture, market and sell are ammonia, fertilizer grade ammonium nitrate (“AN” and “HDAN”) and urea ammonium nitrate ("UAN") for agricultural applications, high purity and commercial grade ammonia, high purity AN, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide and diesel exhaust fluid for industrial applications and industrial grade AN (“LDAN”) and solutions for the mining industry. We manufacture and distribute our products in four facilities; three of which we own and are located in El Dorado, Arkansas (the “El Dorado Facility”); Cherokee, Alabama (the “Cherokee Facility”); and Pryor, Oklahoma (the “Pryor Facility”); and one of which we operate on behalf of Covestro in Baytown, Texas.

Sales to customers include farmers, ranchers, fertilizer dealers and distributors primarily in the ranch land and grain production markets in the United States (“U.S.”); industrial users of acids throughout the U.S. and parts of Canada; and explosive manufacturers in the U.S. and parts of Mexico, Canada and the Caribbean.

These interim results are not necessarily indicative of results for a full year due, in part, to the seasonality of our sales of agricultural products and the timing of performing our major plant maintenance activities. Our selling seasons for agricultural products are primarily during the spring and fall planting seasons, which typically extend from March through June and from September through November.

Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Short-Term Investments - Investments, which consist of U.S. treasury bills with an original maturity up to and less than 52 weeks, are considered short-term investments and are classified as Level 1. We plan to hold these investments to maturity and have a history of holding investments to maturity. These investments are carried at cost which approximated fair value for the period ended March 31, 2023. Due to the nature of these investments, as U.S. treasury securities, no impairment is anticipated. Our estimate of expected losses is incorporated into the review of the investments' fair value quarterly.

Accounts Receivable – Our accounts receivable are presented at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any estimate of expected loss anticipated on accounts receivable balances. Our estimate is based on historical experience and periodic assessment of outstanding accounts receivable, particularly those accounts that are past due (based upon the terms of the sale). Our periodic assessment is based on our best estimate of amounts that are not recoverable which includes a present collectability review and forward looking assessment, where applicable.

Equity Awards Equity award transactions with employees are measured based on the estimated fair value of the equity awards issued. For equity awards with service conditions that have a graded vesting period, we recognize compensation cost on a straight-line basis over the requisite service period for the entire award. Forfeitures are accounted for as they occur. We may issue new shares of common stock or may use treasury shares associated with the equity awards.

In January 2023, the compensation committee of our Board of Directors (“Board”) approved the grant of 171,641 shares of time-based restricted stock units and 171,641 shares of performance-based restricted stock units to certain executives and employees under our 2016 Long Term Incentive Plan (as Amended and Restated on March 4, 2021). The time-based restricted stock units will vest at the end of each one-year period at the rate of one-third per year for three years. The performance-based restricted stock units will vest on the third anniversary of the grant date subject to the achievement of a market metric established by the Board as set out in the grant. Upon the third anniversary the grants may be modified in a range between 0% and 200% based upon achievement of the market metric. The

 

8


LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

unvested restricted units carry dividend and voting rights contingent upon the vesting and lapsing of restriction. Sales of these units are restricted prior to the date of vesting. Pursuant to the terms of the underlying restricted stock unit agreements, unvested restricted shares will immediately vest upon the occurrence of a change in control (as defined by agreement), or a certain portion will immediately vest upon termination without cause or death.

Contingencies – Certain conditions may exist which may result in a loss, but which will only be resolved when future events occur. We and our legal counsel assess such contingent liabilities and such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, we would accrue for such contingent losses when such losses can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Loss contingency liabilities are included in current and noncurrent accrued and other liabilities and are based on current estimates that may be revised in the near term. In addition, we recognize contingent gains when such gains are realized or when the contingencies have been resolved (generally at the time a settlement has been reached).

Derivatives, Hedges and Financial Instruments – Derivatives are recognized in the balance sheet and measured at fair value. Changes in fair value of derivatives are recorded in results of operations unless the normal purchase or sale exceptions apply, or hedge accounting is elected.

The fair value amounts recognized for our derivative contracts executed with the same counterparty under a master netting arrangement may be offset. We have the choice to offset or not, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions reported as an asset or a liability in the balance sheet. When applicable, we present the fair values of our derivative contracts under master netting agreements using a gross fair value presentation.

Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:

Level 1 - Valuations of contracts classified as Level 1 are based on quoted prices in active markets for identical contracts.

Level 2 - Valuations of contracts classified as Level 2 are based on quoted prices for similar contracts and valuation inputs other than quoted prices that are observable for these contracts.

Level 3 - Valuations of assets and liabilities classified as Level 3 are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

Recently Issued Accounting Pronouncements

Changes to U.S. GAAP are established by the FASB in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs issued and outstanding or that became effective since January 1, 2023 through the date of these financial statements were assessed and determined not to be applicable or are expected to have minimal impact on our condensed consolidated financial position and results of operations.

 

 

9


LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

2. Income Per Common Share

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

 

 

(In Thousands, Except Per Share Amounts)

 

Numerator:

 

 

 

 

 

 

Net income

 

$

15,901

 

 

$

58,766

 

Numerator for basic and diluted net income
  per common share

 

$

15,901

 

 

$

58,766

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Denominator for basic net income per common
   share - adjusted weighted-average shares (1)

 

 

75,807

 

 

 

88,421

 

Effect of dilutive securities:

 

 

 

 

 

 

Unvested restricted stock and stock units

 

 

504

 

 

 

1,345

 

Dilutive potential common shares

 

 

504

 

 

 

1,345

 

Denominator for diluted net income per
   common share - adjusted weighted-average
   shares

 

 

76,311

 

 

 

89,766

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.21

 

 

$

0.66

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.21

 

 

$

0.65

 

(1)
Excludes the weighted-average shares of unvested restricted stock that are contingently issuable.

The following weighted-average shares of securities were not included in the computation of diluted net income per common share as their effect would have been antidilutive:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Restricted stock and stock units

 

 

395,301

 

 

 

 

Stock options

 

 

13,000

 

 

 

13,000

 

 

 

408,301

 

 

 

13,000

 

 

3. Current and Noncurrent Accrued and Other Liabilities

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Accrued interest

 

$

22,212

 

 

$

11,196

 

Current portion of operating lease liabilities

 

 

7,869

 

 

 

7,259

 

Accrued payroll and benefits

 

 

4,468

 

 

 

12,440

 

Other

 

 

9,590

 

 

 

8,097

 

 

 

 

44,139

 

 

 

38,992

 

Less noncurrent portion

 

 

522

 

 

 

522

 

Current portion of accrued and other liabilities

 

$

43,617

 

 

$

38,470

 

 

 

10


LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

4. Long-Term Debt