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) May 14, 2004
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 May 14, 2004
Exhibit Number Description
99.1
Item 12.
Results of Operations and Financial Condition.On May 14, 2004, LSB Industries, Inc. (the "Company") issued a press release to report its financial results for the quarter ended March 31, 2004. 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
May 14, 2004 AMEX: LXU
LSB INDUSTRIES, INC. REPORTS
RESULTS FOR THE QUARTER ENDED MARCH 31, 2004
Oklahoma City, Oklahoma . . . May 14, 2004 . . . LSB Industries, Inc. (AMEX: LXU).
Results for three months ended March 31, 2004
Net sales for the three months ended March 31, 2004 and 2003 were $83.8 million and $71.5 million, respectively, an increase of $12.3 million.
For the three months ended March 31, 2004, net loss was $.1 million after a charge for a cumulative effect of accounting change of $.5 million, compared to a net loss of $1.8 million for the three months ended March 31, 2003.
After deducting preferred stock dividend requirements, which were not paid, net loss applicable to common stock was $.7 million, or $.05 per share fully diluted for the three months ended March 31, 2004, compared to a loss of $2.4 million or $.20 per share after deducting preferred stock dividend requirements for the prior period ended March 31, 2003.
Commenting on the improvement in first quarter 2004 results, President, Barry Golsen stated that "the general economic pick-up resulted in higher shipments and higher operating profit in our Climate Control Business. The Chemical Business' first quarter results were affected by the high cost of raw material feedstock natural gas, anhydrous ammonia and a late start in the agricultural season".
LSB is a manufacturing, marketing, and engineering company with activities on a worldwide basis. LSB'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 stock is traded on the AMEX under the symbol LXU.
# # #
LSB INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS (NOTES)
(Unaudited)
Three Months Ended March 31, 2004 and 2003
(Dollars in thousands, except per share amounts)
|
2004 |
2003 |
|
Net sales |
$ |
83,792 |
$ |
71,510 |
|||
|
Cost of sales |
72,831 |
62,043 |
|||||
|
Gross profit |
10,961 |
9,467 |
|||||
|
Selling, general and administrative expenses |
11,122 |
10,018 |
|||||
|
Operating loss |
(161 |
) |
(551 |
) |
|||
|
Other income (expense): |
|||||||
|
Other income |
2,096 |
356 |
|||||
|
Interest expense |
(1,298 |
) |
(1,425 |
) |
|||
|
Other expense |
(215 |
) |
(205 |
) |
|||
|
Income (loss) before provision for income taxes and cumulative effect of accounting change |
422 |
(1,825 |
) |
||||
|
Provision for income taxes |
(4 |
) |
- |
||||
|
Income (loss) before cumulative effect of accounting change |
418 |
(1,825 |
) |
||||
|
Cumulative effect of accounting change |
(536 |
) |
- |
||||
|
Net loss |
$ |
(118 |
) |
$ |
(1,825 |
) |
|
|
Net loss applicable to common stock |
$ |
(685 |
) |
$ |
(2,392 |
) |
|
|
Weighted average common shares: |
|||||||
|
Basic and diluted |
12,657,849 |
11,992,720 |
|||||
|
Loss per common share: |
|||||||
|
Loss before cumulative effect of accounting change |
$ |
(.01 |
) |
$ |
(.20 |
) |
|
|
Cumulative effect of accounting change |
(.04 |
) |
- |
||||
|
Net loss |
$ |
(.05 |
) |
$ |
(.20 |
) |
(see accompanying notes)
LSB Industries, Inc.
Notes to Unaudited Financial Highlights
Three Months Ended March 31, 2004 and 2003
(unaudited)
Note 1: Basis of Presentation Certain reclassifications have been made to the Financial Highlights for 2003 to conform to the Financial Highlights presentation for 2004.
Note 2: During the first quarter of 2004, we recognized a gain of $1.8 million (which is classified as other income in the accompanying Financial Highlights) from the sale of certain current assets purchased in 2003.
Note 3: Effective March 31, 2004, we included in our consolidated balance sheet the consolidated assets and liabilities of the parent company of a French manufacturer of HVAC equipment as required under FASB Interpretation No. 46 "Consolidation of Variable Interest Entities." As a result, we recorded a cumulative effect of accounting change of $.5 million.
Note 4: Net loss applicable to common stock is computed by adjusting net loss by the amount of preferred stock dividends. Basic net loss per common share is based upon net loss applicable to common stock and the weighted average number of common shares outstanding during each period. All potential dilutive securities are antidilutive for all periods presented.
Note 5: Information about the Company's operations in different industry segments for the three months ended March 31, 2004 and 2003, is detailed on the following page.
(continued)
LSB INDUSTRIES, INC.
Notes to Unaudited Financial Highlights
Three Months Ended March 31, 2004 and 2003
(Unaudited)
|
Three Months Ended |
|
2004 |
2003 |
|
(in thousands) |
|
Net sales: |
||||||||||||||
|
Climate Control |
$ |
31,549 |
$ |
27,552 |
||||||||||
|
Chemical |
51,246 |
42,726 |
||||||||||||
|
Other |
997 |
1,232 |
||||||||||||
|
$ |
83,792 |
$ |
71,510 |
|||||||||||
|
Gross profit: |
||||||||||||||
|
Climate Control |
$ |
10,234 |
$ |
8,343 |
||||||||||
|
Chemical |
398 |
695 |
||||||||||||
|
Other |
329 |
429 |
||||||||||||
|
$ |
10,961 |
$ |
9,467 |
|||||||||||
|
Operating profit (loss): |
||||||||||||||
|
Climate Control |
$ |
3,698 |
$ |
2,273 |
||||||||||
|
Chemical |
9 |
(1,390 |
) |
|||||||||||
|
3,707 |
883 |
|||||||||||||
|
General corporate expenses and other business operations, net |
(1,987 |
) |
(1,283 |
) |
||||||||||
|
Interest expense |
(1,298 |
) |
(1,425 |
) |
||||||||||
|
Income (loss) before provision for income taxes and cumulative effect of accounting change |
$ |
422 |
$ |
(1,825 |
) |