LSB Industries, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $109.2 million, down 4% from $114.3 million in Q3 2023. The nine-month figures showed a more significant decline, with net sales of $387.5 million, a 16% decrease from $461.1 million in the prior year. This downturn was attributed to lower sales volumes and selling prices for ammonia and urea ammonium nitrate (UAN), despite increased sales volumes for UAN due to strong fertilizer demand.
The company experienced a gross loss of $7.9 million in Q3 2024, worsening from a gross loss of $3.4 million in Q3 2023. For the nine months, gross profit fell to $41.7 million from $74.3 million, reflecting a 44% decline. Operating losses also increased, with a Q3 operating loss of $24.4 million compared to $9.5 million in the same quarter of 2023. The nine-month operating income dropped to $1.2 million from $48.5 million in the previous year. Consequently, LSB reported a net loss of $25.4 million for Q3 2024, compared to a net loss of $7.7 million in Q3 2023, and a net loss of $10.2 million for the nine months, contrasting sharply with a net income of $33.3 million in the same period of 2023.
The company's cash and cash equivalents significantly decreased to $42.3 million as of September 30, 2024, from $98.5 million at the end of 2023. Total current assets also fell to $314.2 million from $436.7 million during the same timeframe. Long-term debt decreased to $476.0 million from $575.9 million, reflecting ongoing debt management strategies, including the repurchase of $96.6 million in Senior Secured Notes for approximately $92.2 million, resulting in a gain on extinguishment of about $3.0 million.
Strategically, LSB is focusing on environmental, health, and safety improvements, reliability and production optimization, and the development of low-carbon ammonia projects. The company has entered into collaborations for low-carbon ammonia production, including a significant project on the Houston Ship Channel, targeting over 1.1 million metric tons per year by early 2029. Additionally, LSB has authorized a $150 million stock repurchase program, with approximately $109 million remaining as of September 30, 2024. The company is also evaluating potential acquisitions to enhance value and returns.
About LSB INDUSTRIES, INC.
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