LSB Industries, Inc. Reports Third Quarter Results.Net Sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight Increase of 18% Produces 153% Gain in Net Income Applicable to Common Stock OKLAHOMA CITY Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm -- LSB (Linux Standard Base) A standard interface (ABI) for Linux from the Linux Foundation (www.linux-foundation.org). Introduced in 2001 by the Free Standards Group, which later became the Linux Foundation, applications based on the LSB standard will run properly under Industries, Inc. (AMEX AMEX See: American Stock Exchange :LXU), today reported results for the third quarter and nine months ended September 30, 2006. Third Quarter 2006 Compared to Third Quarter 2005: * Net sales increased 18% to $123.8 million from $105.2 million; * Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose 37% to $6.6 million from $4.8 million; * Net income doubled to $3.3 million compared to $1.7 million * After deducting preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend requirements, net income applicable to common stock was $2.8 million, up 153% from $1.1 million * Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of rose to $.17 per share from $.07. First Nine Months of 2006 Compared to First Nine Months of 2005: * Net sales increased 22% to $367.9 million from $301.4 million * Operating income was $21.0 million, up 71% compared to $12.3 million; * Net income of $12.5 million was 144% ahead of last year's $5.1 million; * After preferred stock dividend requirements, net income applicable to common stock was $10.9 million, up 213% from $3.5 million * Diluted earnings per share were $.64, or 178% ahead of last year's $.23. Business Overview Barry Golsen, President of LSB said, "During the third quarter, LSB continued to experience overall improved results. Our Climate Control Business produced especially strong growth, particularly our geothermal and water source heat pumps, which achieved the biggest comparable quarter and year to date increase in our history. Our total Climate Control Business sales increased 47% which, combined with the 29% gross margin percentage, caused the nearly 60% improvement in segment operating income. In our Chemical Business sales were off slightly, with the decline attributable to agricultural sales. Most of the shortfall was made up by sales of industrial chemicals which provide better margins and predictability." Mr. Golsen continued, "At our Climate Control Business, we are seeing the favorable market trends continuing in the fourth quarter. Despite the high level of third quarter sales, our backlog continued to build and we entered the final quarter of the year with $85.4 million, up from $38.5 million one year earlier. Overall, we look forward to near and longer term growth." Tony Shelby, Executive Vice President & Chief Financial Officer said, "We continue to increase our stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. and improve our capital structure with earnings and increases in common stock issued in September 2006 related to conversions of $3.75 million of our convertible debentures, due 2011, from long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. to common stock." Conference Call LSB will host a conference call covering the third quarter 2006 results on Wednesday, November 8, 2006 at 3:30 pm CT/ 4:30 pm ET. You are invited to listen to the call by dialing: 1-706-643-6275. Additionally, there will be a webcast posted on the Company's website at www.lsb-okc.com. LSB Industries, Inc. We are a diversified holding company and our principal business activities consist of the: * Climate Control Business engaged in the manufacturing and selling of a broad range of air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. and heating products consisting of water source heat pumps including geothermal heat pumps, hydronic hy·dron·ic adj. Of or relating to a heating or cooling system that transfers heat by circulating a fluid through a closed system of pipes. [hydr(o)- + -onic (as in electronic).] fan coils, large custom air handlers and other products used in commercial and residential new building construction, renovation of existing buildings and replacement of existing systems. * Chemical Business engaged in the manufacturing and selling of chemical products produced from plants in Texas, Arkansas and Alabama for the industrial, mining and agricultural markets. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] Notes: Gross profit by industry segment represents net sales less cost of sales. Gross profit classified as "Other" relates to industrial machinery and components. Operating income by industry segment represents gross profit by industry segment less selling, general and administrative expenses ("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 Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , net. General corporate expenses and other business operations, net consist of unallocated portions of gross profit, SG&A, other income and other expense. |
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