UNITED
STATES
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) November 2,
2007
LSB
INDUSTRIES, INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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1-7677
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73-1015226
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||
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(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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||
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16
South Pennsylvania, Oklahoma City, Oklahoma
(Address of principal executive offices) |
73107
(Zip
Code) |
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Registrant's
telephone number, including area code
(405) 235-4546
Not
applicable
(Former
name or former address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
|
o
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Section
1 – Registrant’s Business and Operations
Item
1.01 Entry into a Material Definitive
Agreement.
The
information provided in Item 2.03 below is incorporated herein by
reference.
Item
1.02 Termination of a Material Definitive
Agreement
On
November 6, 2007, ThermaClime, Inc.
("TCI"), a wholly owned subsidiary of LSB Industries, Inc. (the "Company"),
terminated its $50 million term loan (the “Prior Senior Secured Loan”), under
the Loan Agreement, dated September 16, 2004, as amended, among TCI, certain
of
its subsidiaries, and ORIX Capital Markets, LLC, as agent and the initial
lender. The Prior Senior Secured Loan and related Loan Agreement was
terminated without penalty upon payment of all amounts owing by the borrowers
under the Prior Senior Secured Loan, which payment was funded with the proceeds
of the Term Loan, discussed in Item 2.03, below.
The
Prior Senior Secured Loan was to be
repaid as follows:
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• quarterly
interest payments which began September 30,
2004;
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• quarterly
principal payments of $312,500 which began October 1,
2007;
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•
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a
final payment of the remaining outstanding principal of $47.5 million
and
accrued interest on September 16,
2009.
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The
Prior Senior Secured Loan accrued
interest at a defined LIBOR rate plus a defined LIBOR margin or, at the election
of the borrowers, an alternative defined base rate plus a defined base rate
margin with the annual interest rate not to exceed 11% or 11.5% depending
on the
leverage ratio. At September 30, 2007, the effective interest rate was
11%. The borrowers were subject to numerous covenants under the Prior
Senior Secured Loan agreement including, but not limited to, limitation on
the
incurrence of certain additional indebtedness and liens, limitations on mergers,
acquisitions, dissolution and sale of assets, and limitations on declaration
of
dividends and distributions to us, all with certain exceptions. The borrowers
were also subject to a minimum fixed charge coverage ratio, measured quarterly
on a trailing twelve-month basis. The Borrowers’ fixed charge coverage ratio
exceeded the required minimum ratio for the twelve-month period ended September
30, 2007.
The
Prior Senior Secured Loan was
secured by a first lien on (a) certain real property and equipment located
at
the El Dorado, Arkansas facility (“El Dorado Facility”), (b) certain real
property and equipment located at the Cherokee, Alabama facility (“Cherokee
Facility”), (c) certain equipment of the Climate Control Business, and
(d) the equity stock of certain of ThermaClime’s
subsidiaries.
Section
2 – Financial Information
Item
2.02 Results of Operations and Financial
Condition
On
November 5, 2007, LSB Industries,
Inc. (the "Company") issued a press release to report its financial results
for
the third quarter ended September 30, 2007. The press release is attached
hereto
as Exhibit 99.1 and is incorporated herein by reference.
On
November 5, 2007, at 11:00 a.m.
eastern time, the Company held a conference call broadcast live over the
Internet to discuss the results of the third quarter ended September 30,
2007. The conference call was announced in the press release, dated
November 5, 2007, attached hereto as Exhibit 99.1.
The
information contained in this Item 2.02 of this Form 8-K and the Exhibit
attached hereto are being furnished and shall not be deemed "filed" for the
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.
Item
2.03 Creation
of Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Company.
On
November 2, 2007, TCI and certain of
its subsidiaries (the "Borrowers") entered into a $50 million term loan (the
"Term Loan") with Banc of America Leasing & Capital, LLC, as agent for the
lenders, pursuant to a Term Loan Agreement dated the same
date. Completion of all conditions and funding under the Term
Loan occurred on November 6, 2007, with the proceeds of the Term Loan being
used
to repay TCI’s Prior Senior Secured Loan, which is discussed in Item 1.02,
above. The Term Loan is for a term of five years, and is guaranteed
by the Company. Certain other terms and conditions of the Term Loan are as
follows:
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(a)
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interest
will accrue at a defined LIBOR rate plus a defined LIBOR margin,
resulting
in a pro-forma borrowing rate at November 1, 2007 of 7.91%, approximately
3.1% lower than the rate on the Prior Senior Secured Loan which
was
replaced;
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(b)
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only
quarterly interest payments are required, with final payment of
interest
and principal payable at maturity on the fifth anniversary of
funding;
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(c)
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the
collateral securing the Term Loan is limited
to:
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●
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the
real property and equipment located at the Company’s chemical plant
facility in El Dorado, Arkansas,
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●
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the
real property and equipment located at the Company’s chemical plant
facility in Cherokee, Alabama; and
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(d)
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the
Term Loan is subject to a minimum Fixed Charge Coverage Ratio and
a
maximum Leverage Ratio, both as defined in the Term Loan Agreement,
measured quarterly on a trailing twelve-month basis. On a
pro-forma basis, the Term Loan Borrowers’ Fixed Charge Coverage Ratio
exceeded the required minimum ratio for the twelve-month period
ended
September 30, 2007 and the pro-forma Leverage Ratio at September
30, 2007,
was less than the maximum permitted in the Term
Loan.
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The
Borrowers under the Term Loan are
subject to other covenants under the Term Loan Agreement, which are
substantially similar to the Prior Senior Secured Loan, including, but not
limited to, limitation on the incurrence of certain additional indebtedness
and
liens, limitations on mergers, acquisitions, dissolution and sale of assets,
and
limitations on declaration of dividends and distributions to us, all with
certain exceptions.
In
connection with the Term Loan, the
lenders of the Company’s $50 million working capital revolver loan released
their security liens to the assets which collateralize the Term Loan and
agreed
to certain other modifications to the terms of the working capital revolver,
including among other things, an interest rate reduction of .25%, effective
at
the closing of the Term Loan.
Section
9 -Financial Statements and Exhibits
Item
9.01. Financial Statements and Exhibits
The
information contained in the accompanying Exhibit 99.1 shall not be deemed
filed
for purposes of Section 18 of the Exchange Act or incorporated by reference
in
any filing under the Exchange Act or the Securities Act, except as shall
be
expressly set forth by specific reference in such filing.
(d)
Exhibits.
Exhibit Description
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4.1
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Term
Loan Agreement, dated as of November 2, 2007, among LSB Industries,
Inc.,
ThermaClime, Inc. and certain subsidiaries of ThermaClime, Inc.,
Cherokee
Nitrogen Holdings, Inc., the Lenders signatory thereto, Banc of
America
Leasing & Capital, LLC as the Administrative and Collateral Agent, and
Bank of Utah as Payment Agent, which
the Company hereby incorporates by reference from Exhibit 4.1 to
the
Company’s Form 10-Q for the fiscal quarter ended September 30,
2007.
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4.2
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Amended
and Restated Loan and Security Agreement by and among LSB Industries,
Inc., ThermaClime, Inc. and each of its subsidiaries that are Signatories,
the lenders and Wells Fargo Foothill, Inc., which the Company hereby
incorporates by reference from Exhibit 4.2 to the Company’s Form 10-Q for
the fiscal quarter ended September 30,
2007.
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99.1
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Press
Release issued by LSB Industries, Inc. dated November 5,
2007
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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.
Dated:
November 8, 2007
LSB
INDUSTRIES,
INC.
By:
Jim
D.
Jones
Jim
D.
Jones,
Senior
Vice President
Corporate
Controller
and Treasurer
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COMPANY
CONTACT:
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Investor
Relations Contact:
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Tony
M. Shelby, Chief Financial Officer
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Linda
Latman (212) 836-9609
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(405)
235-4546
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Lena
Cati (212) 836-9611
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The
Equity Group Inc.
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FOR
IMMEDIATE RELEASE
LSB
INDUSTRIES, INC. REPORTS RECORD RESULTS
FOR
THE 2007 THIRD QUARTER
Oklahoma
City, Oklahoma . . . November 5,
2007. . . LSB Industries, Inc. (AMEX:LXU), today reported
results for the third quarter and nine months ended September 30,
2007.
Third
Quarter 2007 Compared to Third Quarter 2006:
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·
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Net
sales increased 19% to $147.6 million from $124.0
million;
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·
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Operating
income rose 181% to $19.1 million from $6.8
million;
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·
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Net
income increased to $18.3 million compared to $3.5
million;
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·
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After
deducting preferred stock dividend requirements, net income applicable
to
common stock was $18.1 million, up 505% from $3.0
million;
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·
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Diluted
earnings per share rose to $.77 per share from
$.18.
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First
Nine Months of 2007 Compared to First Nine Months of 2006:
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·
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Net
sales increased 23% to $451.8 million from $368.2
million;
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·
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Operating
income was $47.8 million, up 125% compared to $21.2
million;
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·
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Net
income of $42.3 million was 231% ahead of last year’s $12.8
million.
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Business
Overview
Jack
Golsen, LSB’s Chairman & CEO stated, “Our overall liquidity and capital
resources, as well as our debt to equity ratio, reflect substantial improvement
since the beginning of the year, as a result of cash flow from earnings and
conversions of our 2006 debentures into common equity. As a result,
we are meeting a key corporate objective of reducing leverage while profitably
growing our business. Both our Climate Control and Chemical
businesses performed well in the third quarter, producing good sales growth
and
even better gains in profitability. Year-to-date, our net income is
at an all time high.”
continued
LSB
Industries News
Release Page
2
November
5, 2007
Tony
Shelby, LSB’s CFO, pointed out, “LSB’s net income for the three months ended
September 30, 2007 included two settlement gains in Chemical Business’ operating
income totaling $4.8 million and the reversal of valuation allowances against
net deferred tax assets, resulting in a deferred tax benefit of $3.2
million. The reversal of the valuation allowances is the result of
our improving results, including the settlement gains, and our current
expectations that it is more likely than not that we will be able to use the
remaining tax net operating loss carryforwards in 2008.”
The
two
settlement gains included:
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·
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A $3.3 million gain from settlement of pending litigation, and |
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·
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A
partial settlement of $1.5 million as an advance payment for an insurance
recovery on a business interruption
claim.
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Conference
Call
LSB’s
management will host a conference call covering third quarter 2007 results
on
Monday, November 5, 2007 at 11:00 am ET/10:00 am CT to discuss these results
and
recent corporate developments. Participating in the call will be CEO,
Jack E. Golsen; President and COO, Barry H. Golsen; and Executive Vice President
and CFO, Tony M. Shelby. Interested parties may participate in the
call by dialing 706-679-3079. Please call in ten minutes before the
conference is scheduled to begin and ask for the LSB conference
call.
To
listen
to a webcast of the call, please go to the Company’s website at
www.lsb-okc.com at least 15 minutes before the conference call to
download and install any necessary audio software. If you are unable
to listen live, the conference call webcast will be archived on the Company’s
website for 90 days. We suggest listeners use Microsoft Explorer as
their web browser.
LSB
Industries, Inc.
LSB
is a
manufacturing, marketing and engineering company. LSB’s principal
business activities consist of the manufacture and sale of commercial and
residential climate control products, such as geothermal and water source heat
pumps, hydronic fan coils, large custom air handlers, the manufacture and sale
of chemical products for the mining, agricultural and industrial markets, and
the provision of specialized engineering services and other activities. LSB
Industries is included in the Russell 2000 Index and the Russell 3000
Index.
#
#
#
See
Accompanying Tables
LSB
Industries News
Release Page
3
November
5, 2007
LSB
Industries, Inc.
Financial
Highlights
Nine
Months and Three Months Ended September 30, 2007 and 2006
(unaudited)
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Nine
Months
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Three
Months
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|||||||||||||||
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2007
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2006
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2007
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2006
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|||||||||||||
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(In
Thousands, Except Per Share Amounts)
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||||||||||||||||
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Net
sales
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$ |
451,754
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$ |
368,216
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$ |
147,613
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$ |
123,968
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||||||||
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Cost
of sales
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349,873
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299,179
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112,441
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99,905
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||||||||||||
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Gross
profit
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101,881
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69,037
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35,172
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24,063
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||||||||||||
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Selling,
general and administrative expense
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55,821
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46,756
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18,827
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17,034
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||||||||||||
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Provisions
for losses on accounts receivable
|
874
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599
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253
|
317
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||||||||||||
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Other
expense
|
853
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706
|
335
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15
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||||||||||||
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Other
income
|
(3,440 | ) | (231 | ) | (3,340 | ) | (83 | ) | ||||||||
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Operating
income
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47,773
|
21,207
|
19,097
|
6,780
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||||||||||||
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Interest
expense
|
8,062
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8,957
|
3,482
|
3,196
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||||||||||||
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Non-operating
other income, net
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(605 | ) | (565 | ) | (532 | ) | (68 | ) | ||||||||
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Income
from continuing operations before provisions
(benefits) for income taxes and
equity
in earnings of affiliate
|
40,316
|
12,815
|
16,147
|
3,652
|
||||||||||||
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Provisions
(benefits) for income taxes
|
(1,017 | ) |
408
|
(1,549 | ) |
208
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||||||||||
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Equity
in earnings of affiliate
|
(654 | ) | (611 | ) | (223 | ) | (206 | ) | ||||||||
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Income
from continuing operations
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41,987
|
13,018
|
17,919
|
3,650
|
||||||||||||
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Net
loss (income) from discontinued operations
|
(348 | ) |
244
|
(377 | ) |
113
|
||||||||||
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Net
income
|
42,335
|
12,774
|
18,296
|
3,537
|
||||||||||||
|
Dividend
requirements and stock dividends on preferred stock exchanged in
March
2007
|
4,971
|
746
|
-
|
249
|
||||||||||||
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Other
preferred stock dividends and dividend requirements
|
637
|
909
|
203
|
302
|
||||||||||||
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Net
income applicable to common stock
|
$ |
36,727
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$ |
11,119
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$ |
18,093
|
$ |
2,986
|
||||||||
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Weighted
average common shares:
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||||||||||||||||
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Basic
|
19,150
|
13,839
|
20,220
|
13,979
|
||||||||||||
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Diluted
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22,990
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21,058
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25,072
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21,346
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||||||||||||
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Income
(loss) per common share:
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||||||||||||||||
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Basic:
|
||||||||||||||||
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Income
from continuing operations
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$ |
1.90
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$ |
.82
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$ |
.87
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$ |
.22
|
||||||||
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Net
income (loss) from discontinued operations
|
.02
|
(.02 | ) |
.02
|
(.01 | ) | ||||||||||
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Net
income
|
$ |
1.92
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$ |
.80
|
$ |
.89
|
$ |
.21
|
||||||||
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Diluted:
|
||||||||||||||||
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Income
from continuing operations
|
$ |
1.65
|
$ |
.66
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$ |
.75
|
$ |
.19
|
||||||||
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Net
income (loss) from discontinued operations
|
.02
|
(.01 | ) |
.02
|
(.01 | ) | ||||||||||
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Net
income
|
$ |
1.67
|
$ |
.65
|
$ |
.77
|
$ |
.18
|
||||||||
(See
accompanying notes)
LSB
Industries News
Release Page
4
November
5, 2007
LSB
Industries, Inc.
Notes
to Unaudited Financial Highlights
Nine
Months and Three Months Ended September 30, 2007 and 2006
|
|
Note
1: Net income applicable to common stock is computed by adjusting
net
income by the amount of preferred stock dividend requirements and
stock
dividends. Basic income per common share is based upon net
income applicable to common stock and the weighted average number
of
common shares outstanding during each period. Diluted income
per share is based on net income applicable to common stock plus
preferred
stock dividend requirements on preferred stock assumed to be converted,
if
dilutive, and interest expense including amortization of debt issuance
costs, net of income taxes, on convertible debt assumed to be converted,
if dilutive, and the weighted average number of common shares and
dilutive
common equivalent shares outstanding, and the assumed conversion
of
dilutive convertible securities
outstanding.
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|
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Note
2: In September 2006, the Financial Accounting Standards Board (“FASB”)
issued FASB Staff Position No. AUG AIR-1 (“FSP”), accounting for planned
major maintenance activities (“Turnarounds”). Effective January
1, 2007, we changed from the accrue-in-advance method which we were
using
to the preferred direct expensing method in accordance with the
FSP. As a result of the change, net income for the nine and
three months ended September 30, 2006 as presented in the Unaudited
Financial Highlights has been increased $232,000 and $197,000,
respectively, as a result of the retrospective application of the
FSP.
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|
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Note
3: At December 31, 2006, we had regular-tax net operating loss (“NOL”)
carryforwards for federal income taxes of approximately $49.9 million
that
begin expiring in 2019. Prior to September 30, 2007, we had
valuation allowances in place against the deferred tax asset arising
from
the NOL’s and other temporary differences. However as the result of
improving financial results including the unusual settlements as
mentioned
above in the quarter ended September 30, 2007 and our current expectation
of generating taxable income in the future, we reversed valuation
allowances of approximately $3.2 million as a benefit for income
taxes for
the nine months and three months ended September 30,
2007.
|
|
|
Due
to the NOL carryforwards, the only provisions for income taxes for
the
nine and three-month periods of 2007 and 2006 were for federal alternative
minimum taxes and state income taxes. We anticipate fully
utilizing the NOL carryforwards in 2008 at which time, we will begin
recognizing and paying federal income taxes at regular corporate
tax
rates.
|
|
|
Note
4: Information about the Company’s operations in different
industry segments for the nine and three months ended September 30,
2007
and 2006 is detailed on the following
page.
|
LSB
Industries News
Release Page
5
November
5, 2007
LSB
INDUSTRIES, INC.
Notes
to Unaudited Financial Highlights
Nine
Months and Three Months Ended September 30, 2007 and 2006
|
Nine
Months
|
Three
Months
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
(In
Thousands, Except Per Share Amounts)
|
||||||||||||||||
|
Net
sales
|
|
|
|
|
||||||||||||
|
Climate
Control
|
$
|
221,464 | $ | 160,245 | $ | 75,641 | $ | 61,210 | ||||||||
|
Chemical
|
222,394 | 201,461 | 69,252 | 60,764 | ||||||||||||
|
Other
|
7,896
|
6,510
|
2,720
|
1,994
|
||||||||||||
| $ | 451,754 | $ | 368,216 | $ | 147,613 | $ | 123,968 | |||||||||
|
|
|
|
|
|||||||||||||
| Gross profit: (1) |
|
|
|
|||||||||||||
|
Climate
Control
|
$ |
65,061
|
$ |
48,362
|
$ |
22,433
|
$ |
17,853
|
||||||||
|
Chemcial
(2) (3)
|
33,980
|
18,430
|
111,738
|
5,531
|
||||||||||||
|
Other
|
2,840 | 2,245 | 1,001 | 679 | ||||||||||||
| $ |
101,881
|
$ |
69,037
|
$ |
35,172
|
$ |
24,063
|
|||||||||
|
Operating
income (loss): (4)
|
|
|||||||||||||||
|
Climiate
Control
|
$ | 27,875 | $ | 18,480 | $ | 9,750 | $ | 6,903 | ||||||||
|
Chemcial
(2) (3) (5)
|
27,123 | 9,019 | 11,477 | 2,393 | ||||||||||||
|
General
corporate expenses and other business operations, net
(6)
|
(7,225 | ) | (6,292 | ) | (2,130 | ) | (2,516 | ) | ||||||||
|
|
47,773
|
21,207
|
19,097
|
6,780
|
||||||||||||
|
|
|
|
||||||||||||||
| Interest expense | (8,062 | ) | (8,957 | ) | (3,482 | ) | (3,196 | ) | ||||||||
| Non-operating other income (expense), net: | ||||||||||||||||
|
Climate
Control
|
2 | 1 | - | 1 | ||||||||||||
|
Chemical
|
92 | 261 | 10 | 25 | ||||||||||||
|
Corporate
and other business operations
|
511 | 303 | 522 | 42 | ||||||||||||
| Benefits (provisions) for income taxes | 1,017 | (408 | ) | 1,549 | (208 | ) | ||||||||||
|
Equity
in earnings of affiliate - Climate Control
|
654 | 611 | 223 | 206 | ||||||||||||
|
Income
from continuing operations
|
$ |
41,987
|
$ | 13,018 | $ | 17,919 | $ | 3,650 | ||||||||
LSB
Industries News
Release Page
6
November
5, 2007
LSB
INDUSTRIES, INC.
Notes
to Unedited Financial Highlights
Nine
Months and Three Months Ended September 30, 2007 and
2006
|
|
(1)
|
Gross
profit by industry segment represents net sales less cost of
sales. Gross profit classified as “Other” relates to the sales
of industrial machinery and related
components.
|
|
|
(2)
|
For
the nine months ended September 30, 2007 and 2006, turnaround costs
for
the Chemical Business totaled $870,000 and $1,788,000,
respectively.
|
|
|
(3)
|
During
the nine and three months ended September 30, 2007, we recorded the
realization for losses on certain nitrogen-based inventories of $407,000
and $53,000, respectively. For the same periods in 2006, we
recorded the realization of losses of $1,110,000 and $328,000,
respectively. During the nine and three months ended September
30, 2007, we realized insurance recoveries of $1,500,000 relating
to a
business interruption claim associated with the Cherokee, AL
facility. During the nine and three months ended September 30,
2006, we realized insurance recoveries of $882,000 and $287,000,
respectively, relating to a business interruption claim associated
with
the El Dorado, AR facility. The above transactions contributed
to an increase in gross profit.
|
|
|
(4)
|
Our
chief operating decision makers use operating income by industry
segment
for purposes of making decisions which include resource allocations
and
performance evaluations. Operating income by industry segment
represents gross profit by industry segment less SG&A incurred by each
industry segment plus other income and other expense earned/incurred
by
each industry segment before general corporate expenses and other
business
operations, net. General corporate expenses and other business
operations, net, consist of unallocated portions of gross profit,
SG&A, other income and other
expense.
|
|
|
(5)
|
During
the nine and three months ended September 30, 2007, we recognized
income
of $3,272,000 relating to a settlement of a pending
litigation. During the nine months ended September 30, 2007 and
2006, we recognized impairments on long-lived assets of $250,000
and
$286,000, respectively ($250,000 for the three months ended September
30,
2007).
|
|
|
(6)
|
The
amounts included are not allocated to our Climate Control and Chemical
Businesses since these items are not included in the operating results
reviewed by our chief operating decision makers for purposes of making
decisions as discussed above.
|
LSB
Industries News
Release Page
7
November
5, 2007
LSB
INDUSTRIES, INC.
Condensed
Consolidated Balance Sheets
(Information
at September 30, 2007 is Unaudited)
|
September
30,
2007
|
December
31,
2006
|
||||||
|
(In
Thousands)
|
|||||||
|
Assets
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ |
40,869
|
$ |
2,255
|
||||
|
Restricted
cash
|
30
|
2,479
|
||||||
|
Accounts
receivable, net
|
86,869
|
67,571
|
||||||
|
Inventories:
|
||||||||
|
Finished
goods
|
23,265
|
20,252
|
||||||
|
Work
in process
|
3,136
|
3,205
|
||||||
|
Raw
materials
|
20,995
|
21,992
|
||||||
|
Total
inventories
|
47,396
|
45,449
|
||||||
|
Supplies,
prepaid items and other:
|
||||||||
|
Prepaid
insurance
|
842
|
3,443
|
||||||
|
Precious
metals
|
10,533
|
6,406
|
||||||
|
Supplies
|
3,810
|
3,424
|
||||||
|
Other
|
2,230
|
1,468
|
||||||
|
Total
supplies, prepaid items and other
|
17,415
|
14,741
|
||||||
|
Deferred
income taxes
|
9,700
|
-
|
||||||
|
Total
current assets
|
202,279
|
132,495
|
||||||
|
Property,
plant and equipment, net
|
78,696
|
76,404
|
||||||
|
Other
assets:
|
||||||||
|
Noncurrent
restricted cash
|
-
|
1,202
|
||||||
|
Debt
issuance and other debt-related costs, net
|
4,884
|
2,221
|
||||||
|
Investment
in affiliate
|
3,398
|
3,314
|
||||||
|
Goodwill
|
1,724
|
1,724
|
||||||
|
Other,
net
|
2,488
|
2,567
|
||||||
|
Total
other assets
|
12,494
|
11,028
|
||||||
| $ |
293,469
|
$ |
219,927
|
|||||
(continued
on following page)
LSB
Industries News
Release Page
8
November
5, 2007
LSB
INDUSTRIES, INC.
Condensed
Consolidated Balance Sheets
(Information
at September 30, 2007 is Unaudited)
|
September
30,
2007
|
December
31,
2006
|
|||||||
|
(In
Thousands)
|
||||||||
|
Liabilities
and Stockholders’ Equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ |
40,587
|
$ |
42,870
|
||||
|
Short-term
financing and drafts payable
|
133
|
2,986
|
||||||
|
Accrued
and other liabilities
|
30,272
|
26,816
|
||||||
|
Current
portion of long-term debt
|
2,703
|
11,579
|
||||||
|
Total
current liabilities
|
73,695
|
84,251
|
||||||
|
Long-term
debt
|
119,720
|
86,113
|
||||||
|
Noncurrent
accrued and other liabilities:
|
||||||||
|
Deferred
income taxes
|
6,550
|
-
|
||||||
|
Other
|
6,576
|
5,929
|
||||||
|
13,126
|
5,929
|
|||||||
|
Contingencies
|
||||||||
|
Stockholders'
equity:
|
||||||||
|
Series
B 12% cumulative, convertible preferred stock, $100 par value;
20,000 shares issued and outstanding
|
2,000
|
2,000
|
||||||
|
Series
2 $3.25 convertible, exchangeable Class C preferred stock, $50
stated value; 517,402 shares issued in 2006
|
-
|
25,870
|
||||||
|
Series
D 6% cumulative, convertible Class C preferred stock, no par
value; 1,000,000 shares issued
|
1,000
|
1,000
|
||||||
|
Common
stock, $.10 par value; 75,000,000 shares authorized, 24,063,106
shares issued (20,215,339 in 2006)
|
2,406
|
2,022
|
||||||
|
Capital
in excess of par value
|
120,641
|
79,838
|
||||||
|
Accumulated
other comprehensive loss
|
(483 | ) | (701 | ) | ||||
|
Accumulated
deficit
|
(20,984 | ) | (47,962 | ) | ||||
|
104,580
|
62,067
|
|||||||
|
Less
treasury stock at cost:
|
||||||||
|
Series
2 Preferred, 18,300 shares in 2006
|
-
|
797
|
||||||
|
Common
stock, 3,448,518 shares (3,447,754 in 2006)
|
17,652
|
17,636
|
||||||
|
Total
stockholders' equity
|
86,928
|
43,634
|
||||||
| $ |
293,469
|
$ |
219,927
|
|||||