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 September 30, 2021 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 inco ...

LSB Industries, Inc. (NYSE:LXU) Q3 2021 Results Conference Call November 2, 2021 10:00 AM ET Company Participants Fred Buonocore - VP, IR Mark Behrman - CEO Cheryl Maguire - CFO Conference Call Participants Rob McGuire - Granite Research Steve Ferazani - Sidoti and Company Richard Kus - Jefferies Brian DiRubbio - Baird Greetings and welcome to the LSB Industries Third Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the f ...

LSB Industries, Inc. (NYSE:LXU) Q2 2021 Earnings Conference Call July 29, 2021 10:00 AM ET Company Participants Kristy Carver - Senior Vice President and Treasurer Mark Behrman - Chief Executive Officer Cheryl Maguire - Chief Financial Officer Conference Call Participants Travis Edwards - Goldman Sachs Rob McGuire - Granite Research Steve Ferazani - Sidoti and Company Brian DiRubbio - Robert W. Baird Operator Greetings and welcome to LSB Industries’ Second Quarter 2021 Conference Call. [Operator Instruction ...

[PART I – Financial Information](index=3&type=section&id=PART%20I%20%E2%80%93%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents LSB Industries, Inc.'s unaudited condensed consolidated financial statements for the periods ended June 30, 2021 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$1.049 billion** as of June 30, 2021, while total current assets increased and total liabilities decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $143,099 | $129,580 | | Property, plant and equipment, net | $871,780 | $891,198 | | **Total assets** | **$1,049,485** | **$1,053,302** | | **Total current liabilities** | $95,318 | $107,295 | | Long-term debt, net | $461,459 | $467,389 | | Redeemable preferred stocks | $292,849 | $272,101 | | **Total stockholders' equity** | **$141,015** | **$149,643** | | **Total liabilities and stockholders' equity** | **$1,049,485** | **$1,053,302** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company achieved a significant turnaround in profitability, reporting **$23.7 million** net income in Q2 2021 and **$10.4 million** for the six-month period, driven by increased sales and a debt extinguishment gain Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $140,696 | $105,033 | $238,812 | $188,444 | | Gross profit | $35,008 | $19,021 | $43,068 | $21,572 | | Operating income | $26,457 | $10,684 | $25,987 | $3,697 | | Gain on extinguishment of debt | $10,000 | $— | $10,000 | $— | | Net income (loss) | $23,670 | $(365) | $10,391 | $(19,817) | | Diluted EPS | $0.42 | $(0.34) | $(0.37) | $(1.35) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to **$30.6 million** for the six months ended June 30, 2021, while financing activities shifted to a net cash use of **$14.7 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,581 | $19,376 | | Net cash used by investing activities | $(14,549) | $(17,654) | | Net cash provided (used) by financing activities | $(14,671) | $32,000 | | **Net increase in cash and cash equivalents** | **$1,361** | **$33,722** | | Cash and cash equivalents at end of period | $17,625 | $56,513 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, debt structure, and contingencies, including the **$10 million** PPP loan forgiveness and a subsequent preferred stock exchange agreement - The company manufactures and sells chemical products for agricultural, industrial, and mining applications from four facilities in Arkansas, Alabama, Oklahoma, and Texas[24](index=24&type=chunk) - In June 2021, the company's **$10 million** Paycheck Protection Program (PPP) loan was fully forgiven, resulting in a **$10 million** gain on extinguishment of debt[69](index=69&type=chunk) - On July 19, 2021, the company entered into an agreement to exchange approximately **$300 million** of its Series E and Series F Redeemable Preferred Stock for common stock, contingent on stockholder approval[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's improved financial performance in Q2 2021, driven by stronger selling prices, and outlines strategic initiatives including operational reliability and capital structure enhancement [Overview and Key Initiatives](index=23&type=section&id=Overview%20and%20Key%20Initiatives) LSB Industries is focused on key strategic initiatives for 2021, including enhancing operational reliability, expanding product distribution, developing low-carbon ammonia, and improving capital structure - Key strategic initiatives for 2021 include: - Focusing on safe, reliable, and high-quality chemical plant operations - Broadening the distribution of industrial and mining products - Developing a strategy for low-carbon or no-carbon ammonia ("blue-green ammonia") - Improving the capital structure through a planned exchange of preferred stock for common stock[135](index=135&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) The company's financial performance substantially improved in Q2 and H1 2021, driven by significantly higher selling prices and a **$10 million** PPP loan forgiveness gain, partially offset by increased natural gas costs Q2 2021 vs Q2 2020 Performance (in thousands) | Metric | Q2 2021 | Q2 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total net sales | $140,696 | $105,033 | $35,663 | 34% | | Gross profit | $35,008 | $19,021 | $15,987 | 84% | | Operating income | $26,457 | $10,684 | $15,773 | 148% | | Net income (loss) | $23,670 | $(365) | $24,035 | N/A | Six Months 2021 vs 2020 Performance (in thousands) | Metric | Six Months 2021 | Six Months 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total net sales | $238,812 | $188,444 | $50,368 | 27% | | Gross profit | $43,068 | $21,572 | $21,496 | 100% | | Operating income | $25,987 | $3,697 | $22,290 | 603% | | Net income (loss) | $10,391 | $(19,817) | $30,208 | N/A | - Gross profit improvement was driven by higher sales prices, partially offset by increased natural gas costs, which averaged **$2.78/MMBtu** in Q2 2021 versus **$1.81/MMBtu** in Q2 2020[174](index=174&type=chunk)[155](index=155&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by **$17.6 million** cash and **$50.3 million** revolver availability as of June 30, 2021, with projected 2021 capital expenditures of **$30 million** to **$35 million** Capitalization Summary (in millions) | Category | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $17.6 | $16.3 | | Total long-term debt, net | $470.5 | $484.2 | | Series E and F redeemable preferred stock | $292.8 | $272.1 | | Total stockholders' equity | $141.0 | $149.6 | - As of June 30, 2021, the Working Capital Revolver Loan was undrawn with approximately **$50.3 million** of availability[200](index=200&type=chunk) - Full-year 2021 capital expenditures are expected to be approximately **$30 million** to **$35 million**, primarily for reliability and maintenance projects[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks primarily from commodity price fluctuations for products and raw materials, and interest rate changes, though current interest rate risk is minimal - The company's primary market risks are related to commodity price fluctuations (ammonia, natural gas) and interest rate changes[221](index=221&type=chunk) - The company is exposed to variable interest rate risk on its revolving credit facility, but had no outstanding borrowings as of June 30, 2021[224](index=224&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2021 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2021[225](index=225&type=chunk) [PART II – Other Information](index=41&type=section&id=PART%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings arising in the ordinary course of business, with details provided in Note 5 of the financial statements - The company is subject to various legal proceedings. For detailed information, refer to Note 5—Commitments and Contingencies—Legal Matters in the financial statements[235](index=235&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, LSB Industries, Inc. is not required to provide risk factor information in this Form 10-Q filing - The company is a smaller reporting company and is not required to report risk factors in this filing[236](index=236&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Securities Exchange Agreement and Sarbanes-Oxley Act certifications from the CEO and CFO - Key exhibits filed include the Securities Exchange Agreement dated July 19, 2021, and Sarbanes-Oxley Act certifications from the CEO and CFO[239](index=239&type=chunk)

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LSB Industries, Inc. (NYSE:LXU) Q1 2021 Earnings Conference Call April 29, 2021 10:00 AM ET Company Participants Kristy Carver - SVP and Treasurer Mark Behrman - CEO Cheryl Maguire - CFO Conference Call Participants Steve Ferazani - Sidoti Rob McGuire - Granite Research Operator Greetings and welcome to LSB Industries' First Quarter Fiscal Year 2020 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator In ...

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, 2021 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 Delaware 73-1015226 (State or other jurisdiction of incorporation or organization) 3503 NW 63rd Street, Suite 500, Oklahoma City, Oklaho ...

| --- | --- | --- | --- | --- | |--------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2021 Earnings Presentation | | | | | | | | | | | | | | | | | Forward-Looking Statements Statements in this presentation that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertaintie ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2020 was $10.4 million, up from $7.2 million in Q4 2019, driven by increased production and sales volumes despite pricing headwinds [22][38] - The absence of turnarounds in Q4 2020 contributed to record production volumes for ammonia and UAN [22][44] - Lower net selling prices negatively impacted Q4 adjusted EBITDA by approximately $9.6 million [22] Business Line Data and Key Metrics Changes - Significant increases in sales volumes were noted compared to Q4 2019, attributed to investments in plant reliability and product upgrades [12][22] - The agricultural market saw a nearly 50% increase in corn prices, which is expected to drive higher fertilizer demand [14] - The industrial and mining business experienced a recovery, with U.S. light vehicle sales rebounding over 90% from April lows [15][16] Market Data and Key Metrics Changes - The U.S. housing market showed recovery, with housing starts and building permit applications nearing pre-pandemic levels [15] - Natural gas prices have rebounded, averaging $0.80 to $1 higher per MMBtu in Q1 2021 compared to Q1 2020 [34] - Recent severe cold weather caused disruptions in natural gas production, leading to a significant rise in natural gas prices [18][19] Company Strategy and Development Direction - The company is focused on improving its capital structure and reducing overall cost of capital, with plans for refinancing as market conditions improve [26][57] - A strategy to enter the clean energy market for green ammonia production is being developed, viewed as a growth platform [46] - The company aims to optimize production across agricultural, industrial, and mining markets based on pricing dynamics [30][69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2021, citing favorable trends in nitrogen chemical markets and expected recovery in industrial demand [6][47] - The impact of COVID-19 on demand has eased, but historically weak fertilizer pricing remains a concern [38] - The company anticipates EBITDA in the first half of 2021 to be approximately 30% to 35% higher than the first half of 2020 [35] Other Important Information - The company ended Q4 2020 with approximately $16 million in cash and $58 million in total liquidity [26] - Legal fees related to litigation against Leidos are expected to total around $4 million over the next six months [79] - The company is planning a turnaround at its Cherokee facility in Q3 2021, which will impact production and sales [28] Q&A Session Summary Question: Impact of weather disruptions on EBITDA - Management indicated that the impact from weather-related disruptions would be marginal, as they were unhedged on gas and could sell back forward-purchased gas [51][52] Question: Variability of planned outages - Management confirmed that the Cherokee turnaround is unlikely to be adjusted despite improving market conditions, emphasizing the importance of maintaining facilities [54] Question: Refinancing expectations - Management expressed optimism about refinancing opportunities, particularly with a drop in call premiums in May 2021, but emphasized the need to avoid over-leveraging [56][57] Question: Assessment of nitric acid contract - The nitric acid contract has faced some disruptions, but management anticipates ramping back sales once the customer's plant is operational [61] Question: UAN pricing recovery - Management is cautiously optimistic about UAN pricing returning to historical levels, noting that the discount has narrowed but may not fully revert [63] Question: Guidance for Q2 - Management expects significant improvement in Q2 compared to Q1, driven by pricing and volume increases [64] Question: Cost savings potential - Management indicated ongoing efforts to optimize costs, with $5 million in fixed cost savings targeted for 2021 [71] Question: Green ammonia investments - Management plans to discuss a strategy for entering the green ammonia market by the end of 2021, but specific investment amounts are not yet available [75]