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LSB INDUSTRIES, INC., REPORTS RESULTS FOR THE YEAR AND THE FOURTH QUARTER ENDED DECEMBER 31, 1995

OKLAHOMA CITY, March 8 /PRNewswire/ -- LSB Industries, Inc. (NYSE: LSB) today reported operating results for the year and the three months ended December 31, 1995.

Total revenues for the year ended December 31, 1995 were $274.1 million compared to total revenues of $250.0 million in 1994, an increase of 10%.

The Company reported a net loss for the year ended December 31,1995 of $3,732,000 compared to net income of $24,467,000 for the year ended December 31, 1994. After deducting $3.2 million for dividends on the Company's outstanding preferred stocks, the net loss applicable to common stock for 1995 was $6,961,000 or $.53 per share fully diluted on 13.2 million average common shares as compared to net income applicable to common stock for 1994 of $21,232,000 or $1.46 per share fully diluted on 15.2 million average common shares. Net income for the year ended December 31, 1994 included a gain on the sale of Equity Bank of $22.9 million, net of income taxes ($1.51 per share fully diluted on 15.2 million average common shares). Total revenues for the three months ended December 31, 1995 were $62.7 million compared to total revenues of $55.7 million for the comparable period in 1994, an increase of 13%.

For the three months ended December 31, 1995, LSB reported a net loss of $4,882,000 compared to a net loss of $4,079,000 for the same period in 1994. After deducting $800,000 for dividends on the Company's outstanding preferred stocks, the net loss applicable to common stock for the three months ended December 31, 1995 was $5,685,000 or $.44 per share fully diluted on 12.9 million average common shares compared to a net loss applicable to common stock for the same period in 1994 of $4,878,000 or $.37 per share fully diluted on 13.1 million average common shares.

The consolidated net loss for the fourth quarter of 1995 was primarily due to losses in the Company's Industrial and Automotive Products Businesses, and a charge against earnings of $1.7 million for write-offs and losses in certain foreign investments and foreign operations.

The Company previously announced that it is restructuring its Automotive and Industrial Products Businesses and will reduce its investments in or take other action regarding these Businesses. Plans for both of these Businesses are being formulated and certain actions are being undertaken. Combined, these Businesses reported a loss of $11.6 million (after interest expense of $4.7 million) for the year ended December 31, 1995 on sales of $46.6 million.

In evaluating the fourth quarter performance, Jack E. Golsen, Board Chairman, stated that the loss in the fourth quarter had been anticipated, but the amount of the loss was higher than expected due to the results in the Company's Environmental Control Business. Although the Environmental Control Business' sales increased from $16.9 million in the fourth quarter of 1994 to $19.1 million in the comparable quarter of 1995, the Business was not profitable due to heavy expenditures in reorganizing, redesigning, and setting up production in the heat pump product line; and a write-down of $850,000 related to the Company's loan to Beutot, S.A., a French heating and air conditioning company in which the Company has an option to acquire a financial interest. Even though the Environmental Control Business was not profitable in the fourth quarter, it was profitable for the full year 1995, and its full year results were improved over 1994 results.

The Chemical Business' sales increased from $27.7 million in the fourth quarter of 1994 to $30.3 million in the fourth quarter of 1995 and the Business is continuing to report improved results as the cost of ammonia, the basic raw material used in this Business' primary products continues to come down from the early 1995 historic highs. Depending on improved weather conditions over the next 30 days, the outlook is for a strong Spring fertilizer season.

In conclusion, Golsen stated that the Company's plans to emphasize the growth of its principal businesses, the Chemical and Environmental Control Businesses are moving ahead. Golsen further stated that in connection with its strategy of expanding its principal businesses, the Company has begun working with a major investment banking firm to explore long-term financing for the Company.

LSB is a manufacturing, marketing, and engineering company with activities on a worldwide basis. LSB's principal business activities consist of the manufacture and sale of chemical products for the mining, agricultural and industrial markets, the manufacture and sale of commercial and residential air conditioning products, the provision of specialized engineering services and other activities. LSB's common stock and Series 2 Preferred stock are listed for trading on the New York Stock Exchange.
 LSB Industries, Inc.
 Financial Highlights
 Periods Ended December 31, 1995 and 1994
 (Unaudited)
 (In thousands, except per share amounts)
 Year ended Quarter ended
 December 31, December 31,
 1995 1994 1995 1994
 Total Revenues $274,115 $249,969 $62,727 $55,734


Operating Costs, Expenses,
 and Interest $277,697 $249,686 $67,571 $59,490


Income (Loss) from
 Continuing Operations $(3,732) $983 $(4,882) $(2,779)


Income (Loss) from
 Discontinued Operations $- $23,484 $- $(1,300)
 Net Income (Loss) $(3,732) $24,467 $(4,882) $(4,079)


Net Income (Loss)
 Applicable to Common Stock $(6,961) $21,232 $(5,685) $(4,878)


Net Income (Loss) Per

Common Share:

Primary:

Income (Loss) from
 Continuing Operations $(.53) $(.16) $(.44) $(.27)
 Net Income (Loss) $(.53) $1.54 $(.44) $(.37)


Fully Diluted:
 Income (Loss) from Continuing
 Operations $(.53) $(.16) $(.44) $(.27)
 Net Income (Loss) $(.53) $1.46 $(.44) $(.37)


Average Common Shares

Outstanding:
 Primary 13,223 13,831 12,917 13,096
 Fully Diluted 13,233 15,155 12,917 13,096
 LSB Industries, Inc.
 Notes to Unaudited Financial Highlights
 Years Ended December 31, 1995 and 1994


Note 1: Primary earnings per share are based upon the weighted average number of common and dilutive common equivalent shares outstanding during each period after giving appropriate effect to preferred stock dividends. Fully diluted earnings per share are based on the weighted average number of common and dilutive common equivalent shares outstanding and the assumed conversion of diluted convertible securities outstanding.
 -0- 3/8/96


/CONTACT: Tony M. Shelby, Chief Financial Officer, of LSB Industries, 405-235-4546/

(LSB)

CO: LSB Industries ST: Oklahoma IN: CHM SU: ERN

EQ-BB -- LAF014 -- 1518 03/08/96 09:57 EST
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