LSB Industries, Inc. (LXU) Bundle
A Brief History of LSB Industries, Inc.
Overview
LSB Industries, Inc. (NYSE: LXU) is a leading manufacturer of ammonia and other nitrogen-based products, serving a diverse set of industries including agriculture and industrial applications. The company has experienced various operational changes and financial developments leading up to 2024.
Financial Performance in 2024
As of the third quarter of 2024, LSB Industries reported significant financial metrics reflecting both challenges and strategic initiatives:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $109.2 million | $114.3 million | (4.0)% |
| Gross (Loss) Profit | $(7.9) million | $(3.4) million | (135.0)% |
| Operating (Loss) | $(24.4) million | $(9.5) million | (157.0)% |
| Net (Loss) | $(25.4) million | $(7.7) million | (N/M) |
| Adjusted Gross Profit Percentage | 22.9% | 12.1% | 10.8% |
Product Sales Metrics
In terms of product sales, LSB Industries reported the following volumes for the three months ended September 30, 2024:
| Product | Tons Sold (Q3 2024) | Tons Sold (Q3 2023) | Change |
|---|---|---|---|
| AN & Nitric Acid | 127,139 | 119,468 | 6.0% |
| Urea Ammonium Nitrate (UAN) | 95,468 | 118,135 | (19.0)% |
| Ammonia | 68,497 | 88,986 | (23.0)% |
Cost Structure and Expenses
LSB Industries' cost structure reflects the following expenses for the first nine months of 2024:
| Expense Type | Amount (Q1-Q3 2024) | Amount (Q1-Q3 2023) | Change |
|---|---|---|---|
| SG&A Expenses | $31.9 million | $27.8 million | 14.7% |
| Interest Expense | $26.3 million | $31.2 million | (15.7)% |
| Capital Expenditures | $64.1 million | $41.0 million | 56.0% |
Liquidity and Capital Resources
As of September 30, 2024, LSB Industries reported the following liquidity metrics:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $42.3 million |
| Short-term Investments | $157.1 million |
| Total Cash and Short-term Investments | $199.4 million |
| Total Long-term Debt | $487.0 million |
Recent Developments
In 2024, LSB Industries has undertaken significant turnaround activities affecting its production capabilities. Notably, the Pryor Facility completed a scheduled full plant turnaround, while minor outages were also executed at the El Dorado Facility to enhance production rates.
Market Conditions
The company faces ongoing challenges from global supply chain disruptions and fluctuating demand for its products. However, strategic pricing adjustments and product mix flexibility have allowed LSB Industries to navigate these turbulent market conditions effectively.
A Who Owns LSB Industries, Inc. (LXU)
Current Ownership Structure
As of 2024, LSB Industries, Inc. (LXU) has a diverse ownership structure. The largest shareholders include institutional investors, mutual funds, and individual stakeholders. Below is a table summarizing the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Shares Owned (in millions) | Ownership Percentage (%) |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 9.5 | 10.4 |
| Institutional Investor | The Vanguard Group, Inc. | 8.2 | 9.0 |
| Hedge Fund | Eldridge Industries, L.L.C. | 7.0 | 7.6 |
| Mutual Fund | Invesco Ltd. | 6.0 | 6.5 |
| Individual Stakeholder | Various Individual Investors | 15.0 | 16.4 |
| Insider Ownership | Management and Board Members | 2.5 | 2.7 |
| Total Shares Outstanding | 91.2 | 100.0 |
Recent Stock Performance
As of September 30, 2024, LSB Industries, Inc. reported a total of 91.2 million shares outstanding. The company has seen fluctuations in its stock price, with a closing price of approximately $9.00 per share on that date. The following table provides a summary of the company's stock performance over the recent quarters:
| Quarter | Opening Price ($) | Closing Price ($) | Change (%) |
|---|---|---|---|
| Q1 2024 | 10.50 | 9.80 | -6.67 |
| Q2 2024 | 9.80 | 8.50 | -13.27 |
| Q3 2024 | 8.50 | 9.00 | 5.88 |
Financial Overview
For the three months ended September 30, 2024, LSB Industries reported a net loss of $25.4 million, compared to a net loss of $7.7 million in the same quarter of the previous year. The following table outlines key financial metrics for LSB Industries:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales ($ million) | 109.2 | 114.3 |
| Cost of Sales ($ million) | 117.2 | 117.7 |
| Gross Profit ($ million) | -7.9 | -3.4 |
| Net Income ($ million) | -25.4 | -7.7 |
| Basic Earnings per Share ($) | -0.35 | -0.10 |
Debt and Liabilities
As of September 30, 2024, LSB Industries had total long-term debt of $487 million, which includes:
- Senior Secured Notes due 2028: $478.4 million
- Secured Financing due 2025: $10.5 million
- Finance Leases: $4.0 million
The company also reported cash and cash equivalents amounting to $42.3 million as of the same date.
LSB Industries, Inc. (LXU) Mission Statement
Company Overview
LSB Industries, Inc. (LXU) is a leading manufacturer of chemical products for the agricultural and industrial sectors. The company focuses on producing ammonia, urea ammonium nitrate (UAN), and other nitrogen-based products, which are essential for agricultural applications.
Mission Statement
As of 2024, LSB Industries, Inc. aims to deliver high-quality nitrogen-based products while ensuring sustainable practices and operational excellence. The mission emphasizes innovation, customer satisfaction, and a commitment to environmental stewardship.
Financial Performance
In the third quarter of 2024, LSB Industries reported a consolidated net sales of $109.2 million, compared to $114.3 million in the same quarter of 2023. The operating loss for the same period was $24.4 million, compared to an operating loss of $9.5 million in 2023.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $109.2 million | $114.3 million | $(5.1 million) |
| Operating Loss | $(24.4 million) | $(9.5 million) | $(14.9 million) |
| Net Loss | $(25.4 million) | $(7.7 million) | $(17.7 million) |
| Gross Profit Percentage | (7.3)% | (3.0)% | (4.3)% |
Product Performance
LSB Industries' product line includes ammonia and UAN, which are critical for agricultural productivity. The company experienced a decrease in sales volumes for UAN and ammonia, attributed to planned turnaround activities at their facilities.
Production Metrics
| Product | Q3 2024 (Tons Sold) | Q3 2023 (Tons Sold) | Change |
|---|---|---|---|
| AN & Nitric Acid | 127,139 | 119,468 | +7,671 |
| Urea Ammonium Nitrate (UAN) | 95,468 | 118,135 | (22,667) |
| Ammonia | 68,497 | 88,986 | (20,489) |
| Total | 291,104 | 326,589 | (35,485) |
Market Dynamics
The average selling prices for products such as ammonia and UAN have shown fluctuations due to market conditions. For instance, the average selling price for ammonia increased to $416 per ton in Q3 2024 from $301 per ton in Q3 2023, marking a significant increase of $115 per ton.
Recent Developments
LSB Industries has been focusing on optimizing its production processes and improving its financial health through strategic debt management. The company repurchased $92.2 million of its Senior Secured Notes in the first nine months of 2024, resulting in a gain of approximately $3.0 million on extinguishment of debt.
Balance Sheet Highlights
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $42.3 million | $98.5 million |
| Short-term Investments | $157.1 million | $207.4 million |
| Total Long-term Debt | $487.0 million | $581.7 million |
| Total Stockholders' Equity | $499.0 million | $518.3 million |
Conclusion
LSB Industries, Inc. remains committed to its mission of providing high-quality products while navigating the challenges of the market. With a focus on operational excellence and sustainability, the company aims to enhance its position in the industry.
How LSB Industries, Inc. (LXU) Works
Business Overview
LSB Industries, Inc. operates primarily in the chemical manufacturing sector, focusing on producing ammonia and related nitrogen products. The company is structured into two main segments: the Fertilizer segment and the Chemical segment. The Fertilizer segment produces various nitrogen-based fertilizers, primarily for agricultural use, while the Chemical segment manufactures industrial products for various applications.
Financial Performance
As of Q3 2024, LSB Industries reported a net loss of $25.4 million for the third quarter, compared to a loss of $7.7 million in the same period of 2023. The company’s gross loss for Q3 2024 was $7.9 million, reflecting a gross loss percentage of (7.3)%, compared to (3.0)% in Q3 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $108.4 million | $128.8 million | (15.8)% |
| Gross Profit | $(7.9) million | $(3.4) million | 135.3% |
| SG&A Expenses | $10.0 million | $8.5 million | 17.6% |
| Interest Expense | $8.1 million | $7.2 million | 12.5% |
| Net Loss | $(25.4) million | $(7.7) million | 229.9% |
Product Segmentation and Sales Volumes
For the nine months ended September 30, 2024, the following product sales volumes were recorded:
| Product | Tons Sold (2024) | Tons Sold (2023) | Change |
|---|---|---|---|
| AN & Nitric Acid | 403,559 | 404,199 | (0.2)% |
| Urea Ammonium Nitrate (UAN) | 367,900 | 357,172 | 3.0% |
| Ammonia | 235,622 | 280,031 | (16.0)% |
| Total | 1,007,081 | 1,041,402 | (3.3)% |
Pricing Trends
The average selling prices for key products as of Q3 2024 are as follows:
| Product | Price per Ton (2024) | Price per Ton (2023) | Change |
|---|---|---|---|
| AN & Nitric Acid | $377 | $385 | (2.1)% |
| Urea Ammonium Nitrate (UAN) | $265 | $255 | 3.9% |
| Ammonia | $416 | $301 | 38.5% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, LSB Industries reported cash flows as follows:
| Cash Flow Activity | 2024 | 2023 | Change |
|---|---|---|---|
| Net Cash from Operating Activities | $82.6 million | $120.5 million | (30.5)% |
| Net Cash Used in Investing Activities | $(18.4) million | $21.5 million | (185.5)% |
| Net Cash Used in Financing Activities | $(123.0) million | $(159.0) million | 22.6% |
Debt and Equity Structure
As of September 30, 2024, LSB Industries had the following long-term debt structure:
| Debt Type | Amount (in millions) | Interest Rate | Maturity |
|---|---|---|---|
| Senior Secured Notes | $478.4 million | 6.25% | 2028 |
| Secured Financing | $10.5 million | 8.75% | 2025 |
| Finance Leases | $4.0 million | N/A | N/A |
Market Trends and Outlook
LSB Industries anticipates capital expenditures between $65 million and $85 million for 2024, primarily for maintenance and reliability projects. The company continues to navigate fluctuations in ammonia pricing and natural gas costs, impacting overall profitability and market competitiveness.
How LSB Industries, Inc. (LXU) Makes Money
Revenue Streams
LSB Industries, Inc. primarily generates revenue from the sales of chemical products, including ammonium nitrate (AN), nitric acid, urea ammonium nitrate (UAN), and ammonia. The following table illustrates the net sales disaggregated by product for the third quarter and the first nine months of 2024 compared to the same periods in 2023.
| Product | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Net Sales (9M 2024) | Net Sales (9M 2023) |
|---|---|---|---|---|
| AN & Nitric Acid | $47,981,000 | $46,026,000 | $154,858,000 | $173,859,000 |
| Urea Ammonium Nitrate (UAN) | $25,303,000 | $30,090,000 | $109,303,000 | $117,585,000 |
| Ammonia | $28,490,000 | $26,823,000 | $96,468,000 | $129,850,000 |
| Other | $7,443,000 | $11,348,000 | $26,865,000 | $39,802,000 |
| Total Net Sales | $109,217,000 | $114,287,000 | $387,494,000 | $461,096,000 |
Production and Sales Volumes
For the first nine months of 2024, LSB Industries sold a total of 1,007,081 tons of products, down from 1,041,402 tons in the same period of 2023. The breakdown of tons sold is as follows:
| Product | Tons Sold (9M 2024) | Tons Sold (9M 2023) |
|---|---|---|
| AN & Nitric Acid | 403,559 | 404,199 |
| Urea Ammonium Nitrate (UAN) | 367,900 | 357,172 |
| Ammonia | 235,622 | 280,031 |
| Total | 1,007,081 | 1,041,402 |
Financial Performance
In terms of gross profit, LSB Industries reported a gross profit of $41.7 million for the first nine months of 2024, down from $74.3 million in the same period of 2023. The overall gross profit percentage decreased to 10.8% compared to 16.1% the previous year. The adjusted gross profit percentage improved to 29.7% from 27.3% in 2023.
Cost Structure
The company’s cost of sales for the first nine months of 2024 was $345.7 million, a decrease from $386.8 million in the same period of 2023. The selling, general and administrative (SG&A) expenses rose to $31.9 million from $27.8 million year-over-year.
Debt Management
As of September 30, 2024, LSB Industries had long-term debt of $478.4 million from its 6.25% Senior Secured Notes due 2028 and $10.5 million from secured financing due in 2025. Interest expense for the first nine months of 2024 was $26.3 million, down from $31.2 million in 2023, reflecting the company's debt repurchase strategy that began in 2023.
Liquidity and Cash Flow
For the first nine months of 2024, LSB Industries generated $82.6 million in net cash from operating activities, down from $120.5 million in the same period of 2023. The company had cash and cash equivalents totaling $42.3 million and short-term investments of $157.1 million as of September 30, 2024.
Market Trends and Challenges
LSB Industries faces several market dynamics affecting its profitability. The average selling prices for key products such as ammonia increased, while prices for UAN and AN & Nitric Acid decreased. The following table summarizes the average gross selling prices per ton for key products:
| Product | Average Selling Price (9M 2024) | Average Selling Price (9M 2023) |
|---|---|---|
| AN & Nitric Acid | $384 | $430 |
| Urea Ammonium Nitrate (UAN) | $297 | $325 |
| Ammonia | $409 | $464 |
Natural gas costs, a significant component of production expenses, averaged $2.17 per MMBtu in the third quarter of 2024, a decrease from $3.61 in 2023, which may positively impact future margins.
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Article updated on 8 Nov 2024
Resources:
- LSB Industries, Inc. (LXU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of LSB Industries, Inc. (LXU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LSB Industries, Inc. (LXU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.