LSB Industries, Inc. Reports Operating Results For The 2016 Third Quarter

LSB Industries, Inc. (NYSE: LXU) ("LSB" or the "Company") today announced results from continuing operations of the chemical business for the third quarter ended September 30, 2016.

Third Quarter Highlights
  • Net sales from continuing operations of $80.3 million
  • EBITDA loss from continuing operations of $31.0 million; adjusted EBITDA loss from continuing operations of $26.5 million
  • Operating loss from continuing operations of $45.9 million; adjusted operating loss from continuing operations of $43.9 million
  • Net loss from continuing operations applicable to common shareholders of $61.0 million, or $2.25 loss per diluted share; adjusted net loss from continuing operations applicable to common shareholders of $57.3 million, or $2.12 loss per diluted share
  • Completed plant turnarounds at Cherokee and Pryor during the quarter

"As we previously announced, our third quarter 2016 results were impacted by a combination of planned and unplanned maintenance activities at our three primary chemical facilities and the softening environment for our agricultural products," stated Daniel Greenwell, LSB's President and CEO.

"Although our results for the third quarter were not what we had initially anticipated heading in to the period, we utilized the downtime at our three facilities to conduct additional inspections, repairs and upgrades that we expect to improve facility performance going forward. More specifically, we are expecting that our ammonia plants at our three facilities will operate at an average on-stream rate of 95% in 2017 as a result of the work we've done over the past year. During the quarter we surpassed our initial goal of reducing SG&A by identifying approximately $6 million in savings annually, which we should benefit from for the full year of 2017. Finally, as we discussed at the end of the second quarter, we deployed proceeds from the July 2016 sale of our Climate Control Business to enhance our capital structure, reducing our total debt by $100 million, and redeeming $80 million of preferred stock (inclusive of accrued dividends). We anticipate that this strengthening of our balance sheet will lower our annual interest expense by approximately $7 million, reduce our dividends on preferred stock by $10 million annually and add to our overall financial flexibility. Collectively, we expect these plant improvements and cost reduction actions to yield meaningful improvement in revenue and EBITDA in 2017 translating into greater value for our shareholders."

If you liked this article you might like

LSB Industries (LXU) Is Weak On High Volume Today

What on Earth Happened While I Was Away? A Lot

Trade-Ideas: LSB Industries (LXU) Is Today's Strong On High Relative Volume Stock

Today's Perilous Reversal Stock: LSB Industries (LXU)

Why LSB Industries (LXU) Stock is Skyrocketing Today