UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form
For the quarterly period ended
OR
For the transition period from to
Commission file number
(Exact name of Registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
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(Registrant's telephone number, including area code) (
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 |
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N/A |
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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.☒
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).☒
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 |
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☒ |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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).
The number of shares outstanding of the Registrant's common stock was
FORM 10-Q OF LSB INDUSTRIES, INC.
TABLE OF CONTENTS
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PART I – Financial Information |
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Item 1. |
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3 |
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Item 2. |
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Management's Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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30 |
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Item 4. |
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30 |
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PART II – Other Information |
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Item 1. |
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35 |
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Item 1A. |
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35 |
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Item 2. |
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35 |
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Item 3. |
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35 |
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Item 4. |
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35 |
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Item 5. |
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36 |
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Item 6. |
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37 |
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 June 30, 2023 is unaudited)
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June 30, |
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December 31, |
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2023 |
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2022 |
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(In Thousands) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Short-term investments |
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Accounts receivable |
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Allowance for doubtful accounts |
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Accounts receivable, net |
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Inventories: |
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Finished goods |
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Raw materials |
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Total inventories |
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Supplies, prepaid items and other: |
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Prepaid insurance |
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Precious metals |
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Supplies |
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Other |
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Total supplies, prepaid items and other |
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Total current assets |
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Property, plant and equipment, net |
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Other assets: |
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Operating lease assets |
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Intangible and other assets, net |
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$ |
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$ |
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(Continued on following page)
3
LSB INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(Information at June 30, 2023 is unaudited)
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June 30, |
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December 31, |
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2023 |
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2022 |
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(In Thousands) |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Short-term financing |
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Accrued and other liabilities |
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Current portion of long-term debt |
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Total current liabilities |
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Long-term debt, net |
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Noncurrent operating lease liabilities |
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Other noncurrent accrued and other liabilities |
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Deferred income taxes |
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Stockholders' equity: |
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Common stock, $ par value; |
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Capital in excess of par value |
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Retained earnings |
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Less treasury stock, at cost: |
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Common stock, |
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Total stockholders' equity |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
4
LSB INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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(In Thousands, Except Per Share Amounts) |
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Net sales |
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$ |
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$ |
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$ |
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$ |
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Cost of sales |
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Gross profit |
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Selling, general and administrative expense |
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Other expense (income), net |
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Operating income |
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Interest expense, net |
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(Gain) loss on extinguishment of debt |
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— |
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Non-operating other income, net |
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Income before provision for income taxes |
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Provision for income taxes |
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Net income |
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Income per common share: |
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Basic: |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Diluted: |
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Net income |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
5
LSB INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
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Common |
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Treasury |
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Common |
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Capital in |
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Retained Earnings (Accumulated Deficit) |
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Treasury |
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Total |
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(In Thousands) |
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Balance at December 31, 2022 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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Stock-based compensation |
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Shares issued restricted stock units |
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— |
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Shares withheld restricted stock and |
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Balance at March 31, 2023 |
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Net income |
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Stock-based compensation |
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Purchase of common stock |
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Shares issued restricted stock units |
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Shares withheld restricted stock |
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Balance at June 30, 2023 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Balance at December 31, 2021 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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Stock-based compensation |
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Other |
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Balance at March 31, 2022 |
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Net income |
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Stock-based compensation |
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Purchase of common stock |
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Balance at June 30, 2022 |
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$ |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
6
LSB INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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Six Months Ended |
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June 30, |
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2023 |
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2022 |
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(In Thousands) |
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Cash flows from operating activities |
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Net income |
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$ |
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$ |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Deferred income taxes |
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Loss (gain) on extinguishment of debt |
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Depreciation and amortization of property, plant and equipment |
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Amortization of intangible and other assets |
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Stock-based compensation |
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Other |
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Cash provided (used) by changes in assets and liabilities: |
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Accounts receivable |
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Inventories |
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Prepaid insurance |
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Supplies, prepaid items and other |
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Accounts payable |
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Accrued interest |
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Other assets and other liabilities |
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Net cash provided by operating activities |
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Cash flows from investing activities |
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Expenditures for property, plant and equipment |
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Proceeds from short-term investments |
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— |
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Purchases of short-term investments |
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Other investing activities |
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Net cash provided (used) by investing activities |
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Cash flows from financing activities |
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Net proceeds from |
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Repurchases of |
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Payments on other long-term debt |
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Payments on short-term financing |
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Acquisition of treasury stock, net |
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( |