Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | LSB Industries, Inc. | |
Entity Central Index Key | 0000060714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 1-7677 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1015226 | |
Entity Address, Address Line One | 3503 NW 63rd Street | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73116 | |
City Area Code | 405 | |
Local Phone Number | 235-4546 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 30,300,571 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | LXU | |
Title of 12(b) Security | Common Stock, Par Value $.10 | |
Security Exchange Name | NYSE | |
Preferred Stock [Member] | ||
Document Information [Line Items] | ||
No Trading Symbol Flag | true | |
Title of 12(b) Security | Preferred Stock Purchase Rights | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 17,625 | $ 16,264 |
Accounts receivable | 67,431 | 42,929 |
Allowance for doubtful accounts | (377) | (378) |
Accounts receivable, net | 67,054 | 42,551 |
Inventories: | ||
Finished goods | 12,781 | 17,778 |
Raw materials | 1,521 | 1,795 |
Total inventories | 14,302 | 19,573 |
Supplies, prepaid items and other: | ||
Prepaid insurance | 5,682 | 12,315 |
Precious metals | 7,801 | 6,787 |
Supplies | 25,878 | 25,288 |
Other | 4,757 | 6,802 |
Total supplies, prepaid items and other | 44,118 | 51,192 |
Total current assets | 143,099 | 129,580 |
Property, plant and equipment, net | 871,780 | 891,198 |
Other assets: | ||
Operating lease assets | 27,854 | 26,403 |
Intangible and other assets, net | 6,752 | 6,121 |
Total other assets | 34,606 | 32,524 |
Total assets | 1,049,485 | 1,053,302 |
Current liabilities: | ||
Accounts payable | 51,212 | 46,551 |
Short-term financing | 4,516 | 13,576 |
Accrued and other liabilities | 30,541 | 30,367 |
Current portion of long-term debt | 9,049 | 16,801 |
Total current liabilities | 95,318 | 107,295 |
Long-term debt, net | 461,459 | 467,389 |
Noncurrent operating lease liabilities | 20,277 | 19,845 |
Other noncurrent accrued and other liabilities | 7,372 | 6,090 |
Deferred income taxes | 31,195 | 30,939 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Common stock, $.10 par value; 75,000,000 shares authorized, 31,283,210 shares issued | 3,128 | 3,128 |
Capital in excess of par value | 192,980 | 198,215 |
Accumulated deficit | (51,844) | (41,487) |
Stockholders equity including treasury stock | 147,264 | 162,856 |
Less treasury stock, at cost: | ||
Common stock, 982,639 shares (2,074,565 shares at December 31, 2020) | 6,249 | 13,213 |
Total stockholders' equity | 141,015 | 149,643 |
Total Liabilities and Stockholders' equity | 1,049,485 | 1,053,302 |
Series E Preferred Stock [Member] | ||
Redeemable preferred stocks: | ||
Redeemable preferred stock, value | 292,849 | 272,101 |
Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, value | 2,000 | 2,000 |
Series D Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, value | $ 1,000 | $ 1,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 31,283,210 | 31,283,210 |
Treasury stock, common shares | 982,639 | 2,074,565 |
Series E Preferred Stock [Member] | ||
Cumulative redeemable preferred stock, dividend rate | 14.00% | 14.00% |
Redeemable preferred stock, par value | $ 0 | $ 0 |
Redeemable preferred stock, shares issued | 210,000 | 210,000 |
Redeemable preferred stock, shares outstanding | 139,768 | 139,768 |
Redeemable preferred stock, liquidation preference | $ 297,706,000 | $ 277,982,000 |
Series F Preferred Stock [Member] | ||
Redeemable preferred stock, par value | $ 0 | $ 0 |
Redeemable preferred stock, shares issued | 1 | 1 |
Redeemable preferred stock, shares outstanding | 1 | 1 |
Redeemable preferred stock, liquidation preference | $ 100 | $ 100 |
Series B Preferred Stock [Member] | ||
Convertible preferred stock dividend rate | 12.00% | 12.00% |
Preferred stock, shares issued | 20,000 | 20,000 |
Preferred stock, shares outstanding | 20,000 | 20,000 |
Series B cumulative, convertible preferred stock, par value | $ 100 | $ 100 |
Preferred stock, liquidation preference, value | $ 3,385,000 | $ 3,265,000 |
Series D Preferred Stock [Member] | ||
Convertible preferred stock dividend rate | 6.00% | 6.00% |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Preferred stock, liquidation preference, value | $ 1,342,000 | $ 1,312,000 |
Series D cumulative, convertible Class C preferred stock, par value |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net sales | $ 140,696 | $ 105,033 | $ 238,812 | $ 188,444 |
Cost of sales | 105,688 | 86,012 | 195,744 | 166,872 |
Gross profit | 35,008 | 19,021 | 43,068 | 21,572 |
Selling, general and administrative expense | 8,545 | 8,504 | 17,338 | 18,510 |
Other expense (income), net | 6 | (167) | (257) | (635) |
Operating income | 26,457 | 10,684 | 25,987 | 3,697 |
Interest expense, net | 12,290 | 12,476 | 24,662 | 25,955 |
Gain on extinguishment of debt | (10,000) | (10,000) | ||
Non-operating other expense (income), net | 745 | (128) | 1,140 | (803) |
Income (loss) before benefit for income taxes | 23,422 | (1,664) | 10,185 | (21,455) |
Benefit for income taxes | (248) | (1,299) | (206) | (1,638) |
Net income (loss) | 23,670 | (365) | 10,391 | (19,817) |
Dividends on convertible preferred stocks | 75 | 75 | 150 | 150 |
Net income attributable to participating securities | 223 | |||
Net income (loss) attributable to common stockholders | $ 12,646 | $ (9,634) | $ (10,507) | $ (37,972) |
Basic: | ||||
Net income (loss) | $ 0.44 | $ (0.34) | $ (0.37) | $ (1.35) |
Diluted: | ||||
Net income (loss) | $ 0.42 | $ (0.34) | $ (0.37) | $ (1.35) |
Series E Preferred Stock [Member] | ||||
Dividends on Series E redeemable preferred stock | $ 10,213 | $ 8,689 | $ 19,724 | $ 16,996 |
Accretion of Series E redeemable preferred stock | $ 513 | $ 505 | $ 1,024 | $ 1,009 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock-Common [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Non-Redeemable Preferred Stock [Member] |
Balance at Dec. 31, 2019 | $ 247,327 | $ 3,128 | $ (13,266) | $ 196,833 | $ 57,632 | $ 3,000 |
Balance, shares at Dec. 31, 2019 | 31,283 | (2,010) | ||||
Net loss | (19,452) | (19,452) | ||||
Dividend accrued on redeemable preferred stock | (8,307) | (8,307) | ||||
Accretion of redeemable preferred stock | (504) | (504) | ||||
Stock-based compensation | 495 | 495 | ||||
Other | (64) | $ 292 | (356) | |||
Other, Shares | 30 | |||||
Balance at Mar. 31, 2020 | 219,495 | $ 3,128 | $ (12,974) | 196,972 | 29,369 | 3,000 |
Balnace, Shares at Mar. 31, 2020 | 31,283 | (1,980) | ||||
Balance at Dec. 31, 2019 | 247,327 | $ 3,128 | $ (13,266) | 196,833 | 57,632 | 3,000 |
Balance, shares at Dec. 31, 2019 | 31,283 | (2,010) | ||||
Net loss | (19,817) | |||||
Balance at Jun. 30, 2020 | 210,620 | $ 3,128 | $ (12,884) | 197,566 | 19,810 | 3,000 |
Balnace, Shares at Jun. 30, 2020 | 31,283 | (1,966) | ||||
Balance at Mar. 31, 2020 | 219,495 | $ 3,128 | $ (12,974) | 196,972 | 29,369 | 3,000 |
Balance, shares at Mar. 31, 2020 | 31,283 | (1,980) | ||||
Net loss | (365) | (365) | ||||
Dividend accrued on redeemable preferred stock | (8,689) | (8,689) | ||||
Accretion of redeemable preferred stock | (505) | (505) | ||||
Stock-based compensation | 684 | 684 | ||||
Other | $ 90 | (90) | ||||
Other, Shares | 14 | |||||
Balance at Jun. 30, 2020 | 210,620 | $ 3,128 | $ (12,884) | 197,566 | 19,810 | 3,000 |
Balnace, Shares at Jun. 30, 2020 | 31,283 | (1,966) | ||||
Balance at Dec. 31, 2020 | 149,643 | $ 3,128 | $ (13,213) | 198,215 | (41,487) | 3,000 |
Balance, shares at Dec. 31, 2020 | 31,283 | (2,075) | ||||
Net loss | (13,279) | (13,279) | ||||
Dividend accrued on redeemable preferred stock | (9,511) | (9,511) | ||||
Accretion of redeemable preferred stock | (511) | (511) | ||||
Stock-based compensation | 713 | 713 | ||||
Restricted stock granted from treasury stock | $ 5,310 | (5,310) | ||||
Restricted stock granted from treasury stock, shares | 835 | |||||
Other | (18) | $ (18) | ||||
Other, Shares | (5) | |||||
Balance at Mar. 31, 2021 | 127,037 | $ 3,128 | $ (7,921) | 193,618 | (64,788) | 3,000 |
Balnace, Shares at Mar. 31, 2021 | 31,283 | (1,245) | ||||
Balance at Dec. 31, 2020 | 149,643 | $ 3,128 | $ (13,213) | 198,215 | (41,487) | 3,000 |
Balance, shares at Dec. 31, 2020 | 31,283 | (2,075) | ||||
Net loss | 10,391 | |||||
Balance at Jun. 30, 2021 | 141,015 | $ 3,128 | $ (6,249) | 192,980 | (51,844) | 3,000 |
Balnace, Shares at Jun. 30, 2021 | 31,283 | (983) | ||||
Balance at Mar. 31, 2021 | 127,037 | $ 3,128 | $ (7,921) | 193,618 | (64,788) | 3,000 |
Balance, shares at Mar. 31, 2021 | 31,283 | (1,245) | ||||
Net loss | 23,670 | 23,670 | ||||
Dividend accrued on redeemable preferred stock | (10,213) | (10,213) | ||||
Accretion of redeemable preferred stock | (513) | (513) | ||||
Stock-based compensation | 1,062 | 1,062 | ||||
Unrestricted stock granted from treasury stock | $ 1,700 | (1,700) | ||||
Unrestricted stock granted from treasury stock, shares | 267 | |||||
Other | (28) | $ (28) | ||||
Other, Shares | (5) | |||||
Balance at Jun. 30, 2021 | $ 141,015 | $ 3,128 | $ (6,249) | $ 192,980 | $ (51,844) | $ 3,000 |
Balnace, Shares at Jun. 30, 2021 | 31,283 | (983) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 10,391 | $ (19,817) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred income taxes | 256 | (1,661) |
Gain on extinguishment of debt | (10,000) | |
Depreciation and amortization of property, plant and equipment | 33,725 | 34,572 |
Amortization of intangible and other assets | 629 | 631 |
Other | 1,749 | 3,192 |
Cash provided (used) by changes in assets and liabilities: | ||
Accounts receivable | (23,369) | (3,117) |
Inventories | 5,535 | 8,655 |
Prepaid insurance | 6,633 | 6,642 |
Precious metals | (1,014) | (2,114) |
Accounts payable | 3,627 | (7,674) |
Accrued interest | (20) | 1,685 |
Other assets and other liabilities | 2,439 | (1,618) |
Net cash provided by operating activities | 30,581 | 19,376 |
Cash flows from investing activities | ||
Expenditures for property, plant and equipment | (14,849) | (17,953) |
Other investing activities | 300 | 299 |
Net cash used by investing activities | (14,549) | (17,654) |
Cash flows from financing activities | ||
Proceeds from revolving debt facility | 12,000 | 30,000 |
Payments on revolving debt facility | (12,000) | |
Proceeds from other long-term debt | 12,570 | |
Payments on other long-term debt | (5,520) | (4,411) |
Payments on short-term financing | (9,060) | (6,095) |
Other financing activities | (91) | (64) |
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 beginning of period | 16,264 | 22,791 |
Cash and cash equivalents at end of period | $ 17,625 | $ 56,513 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. For a complete discussion of our significant accounting policies, refer to the notes to our audited consolidated financial statements included in our Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) on February 25, 2021. Basis of Consolidation LSB Industries, Inc. (“LSB”) and its subsidiaries (the “Company,” “we,” “us,” or “our”) are consolidated in the accompanying condensed consolidated financial statements. LSB is a holding company with no significant operations or assets other than cash, cash equivalents, and investments in its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. Nature of Business – We are engaged in the manufacture and sale of chemical products. The chemical products we primarily manufacture, market and sell are ammonia, fertilizer grade AN (“HDAN”) and UAN for agricultural applications, high purity and commercial grade ammonia, high purity AN, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications, and industrial grade AN (“LDAN”) and solutions for the mining industry. We manufacture and distribute our products in four facilities; three of which we own and are located in El Dorado, Arkansas (the “El Dorado Facility”); Cherokee, Alabama (the “Cherokee Facility”); and Pryor, Oklahoma (the “Pryor Facility”); and one of which we operate on behalf of a global chemical company in Baytown, Texas. Sales to customers include farmers, ranchers, fertilizer dealers and distributors primarily in the ranch land and grain production markets in the United States (“U.S.”); industrial users of acids throughout the U.S. and parts of Canada; and explosive manufacturers in the U.S. and parts of Mexico and Canada . In our opinion, the unaudited condensed consolidated financial statements of the Company as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 include all adjustments and accruals, consisting of normal, recurring accrual adjustments, which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year due, in part, to the seasonality of our sales of agricultural products and the timing of performing our major plant maintenance activities. Our selling seasons for agricultural products are primarily during the spring and fall planting seasons, which typically extend from March through June and from September through November. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in connection with our audited consolidated financial statements and notes thereto included in our 2020 Form Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. We establish valuation allowances if we believe it is more-likely-than-not that some or all of deferred tax assets will not be realized. Significant judgment is applied in evaluating the need for and the magnitude of appropriate valuation allowances against deferred tax assets. In addition, we do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the relevant taxing authorities based solely on the technical merits of the associated tax position. If the recognition threshold is met, we recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. We reduce income tax expense for investment tax credits in the period the credit arises and is earned. 1. Summary of Significant Accounting Policies (continued) Contingencies – Certain conditions may exist which may result in a loss, but which will only be resolved when future events occur. We and our legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, we would accrue for such contingent losses when such losses can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Loss contingency liabilities are included in current and noncurrent accrued and other liabilities and are based on current estimates that may be revised in the near term. In addition, we recognize contingent gains when such gains are realized or when the contingencies have been resolved (generally at the time a settlement has been reached). Redeemable Preferred Stocks – Our redeemable preferred stocks that are redeemable outside of our control are classified as temporary/mezzanine equity. The redeemable preferred stocks were recorded at fair value upon issuance, net of issuance costs or discounts. In addition, certain embedded features included in the Series E Redeemable Preferred required bifurcation and are classified as derivative liabilities. The carrying values of the redeemable preferred stocks are being increased by periodic accretions (including the amount for dividends earned but not yet declared or paid) using the interest method so that the carrying amount will equal the redemption value as of October 25, 2023, the earliest possible redemption date by the holder. The accretion was recorded to retained earnings. However, this accretion will change if the expected redemption date changes. Also, see discussion in Note 12 – Subsequent Events. Derivatives, Hedges and Financial Instruments – Derivatives are recognized in the balance sheet and are measured at fair value. Changes in fair value of derivatives are recorded in results of operations unless the normal purchase or sale exceptions apply, or hedge accounting is elected. The fair value amounts recognized for our derivative contracts executed with the same counterparty under a master netting arrangement may be offset. We have the choice to offset or not, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability in the balance sheet. When applicable, we present the fair values of our derivative contracts under master netting agreements using a gross fair value presentation. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 - Valuations of contracts classified as Level 1 are based on quoted prices in active markets for identical contracts. Level 2 - Valuations of contracts classified as Level 2 are based on quoted prices for similar contracts and valuation inputs other than quoted prices that are observable for these contracts. Level 3 - Valuations of assets and liabilities classified as Level 3 are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. At June 30, 2021, and December 31, 2020, we did not have any financial instruments with fair values materially different from their carrying amounts (which excludes issuance costs, if applicable). The fair value of financial instruments is not indicative of the overall fair value of our assets and liabilities since financial instruments do not include all assets, including intangibles, and all liabilities. Equity Awards – Equity award transactions with employees are measured based on the estimated fair value of the equity awards issued. For equity awards with service conditions that have a graded vesting period, we recognize compensation cost on a straight-line basis over the requisite service period for the entire award. Forfeitures are accounted for as they occur. We may issue new shares of common stock or may use treasury shares associated with the equity awards. 1. Summary of Significant Accounting Policies (continued) In January 2021, the compensation committee of our Board of Directors approved the grant of 614,999 shares of time-based restricted stock and 219,084 shares of performance-based restricted stock to certain executives under our 2016 Long Term Incentive Plan. The time-based restricted stock shares will vest at the end of each one-year period at the rate of one-third per year for three years, vesting 100% at the end of three years. The performance-based restricted stock will vest at the end of three years, subject to achievement of certain performance metrics. The unvested restricted shares carry dividend and voting rights contingent upon the vesting and lapsing of restriction. Sales of these shares are restricted prior to the date of vesting. Pursuant to the terms of the underlying restricted stock agreements, unvested restricted shares will immediately vest upon the occurrence of a change in control (as defined by agreement), termination without cause or death. Revenue Recognition Revenue Recognition and Performance Obligations We determine revenue recognition through the following steps: • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Generally, satisfaction occurs when control of the promised goods is transferred to the customer or as services are rendered or completed in exchange for consideration in an amount for which we expect to be entitled. Generally, control is transferred when the preparation for shipment of the product to a customer has been completed. Most of our contracts contain a single performance obligation with the promise to transfer a specific product. Most of our revenue is recognized from performance obligations satisfied at a point in time, however, we have a performance obligation to perform certain services that are satisfied over a period of time. Revenue is recognized from this type of performance obligation as services are rendered and are based on the amount for which we have a right to invoice, which reflects the amount of expected consideration that corresponds directly with the value of the services performed. Transaction Price Constraints and Variable Consideration For most of our contracts with customers, the transaction price from the inception of a contract is constrained to a short period of time (generally one month) as these contracts contain terms with variable consideration related to both price and quantity. These contract prices are often based on commodity indexes (such as NYMEX natural gas index) published monthly and the contract quantities are typically based on estimated ranges. The quantities become fixed and determinable over a period of time as each sale order is received from the customer. The nature of our contracts also gives rise to other types of variable consideration, including volume discounts and rebates, make-whole provisions, other pricing concessions, and short-fall charges. We estimate these amounts based on the expected amount to be provided to customers, which result in a transaction price adjustment reducing revenue (net sales) with the offset increasing contract or refund liabilities. These estimates are based on historical experience, anticipated performance and our best judgment at the time. We reassess these estimates on a quarterly basis. The aforementioned constraints over transaction prices in conjunction with the variable consideration included in our material contracts prevent a practical assignment of a specific dollar amount to performance obligations at the beginning and end of the period. Therefore, we have applied the variable consideration allocation exception. Future revenues to be earned from the satisfaction of performance obligations will be recognized when control transfers as goods are loaded and weighed or services are performed over the remaining duration of our contracts. Income (Loss) per Common Share – Net income (loss) attributable to common stockholders is computed by adjusting net income (loss) by the amount of dividends and dividend requirements on preferred stocks and the accretion of redeemable preferred stocks, if applicable. Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, excluding contingently issuable common shares (unvested restricted stock), if applicable. For periods we earn net income, a proportional share of net income is allocated to participating securities, if applicable and dilutive, determined by dividing total weighted average participating securities by the sum of the total weighted average common shares and participating securities (the “two-class method”). Certain securities (Series E Redeemable Preferred and restricted stock units) participate in dividends declared on our common stock and are therefore considered to be participating securities. 1. Summary of Significant Accounting Policies (continued) Participating securities have the effect of diluting both basic and diluted income per common share during periods of net income. For periods we incur a net loss, no loss is allocated to participating securities because they have no contractual obligation to share in our losses. Diluted loss per common share is computed after giving consideration to the dilutive effect of our potential common stock instruments that are outstanding during the period, except where such non-participating securities would be anti-dilutive. Recently Adopted Accounting Pronouncement ASU 2019-12 – In December 2019, the FASB issued ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The ASU removes certain exceptions to the general framework and also seeks to simplify and/or clarify accounting for income taxes by adding certain requirements that would simplify GAAP for financial statement preparers. On January 1, 2021, we adopted ASU 2019-12, which did not have a material impact on our condensed consolidated financial statements or related disclosures. Recently Issued Accounting Pronouncements ASU 2020-06 - In August 2020, the FASB issued ASU 2020 - 06 , Debt-Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s own Equity (Subtopic 815-40) . This ASU addresses the complexity associated with applying GAAP to certain financial instruments with characteristics of liabilities and equity. The ASU includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity’s own equity and simplifies the accounting for convertible instruments which include beneficial conversion features or cash conversion features by removing certain separation models. Additionally, the ASU requires entities to use the “if-converted” method when calculating diluted earnings per share for convertible instruments. This ASU will be effective for us on January 1, 2024; however, early adoption is permitted beginning January 1, 2021. We are evaluating the timing and the effect of our pending adoption of this ASU on our consolidated financial statements and related disclosures at this time. ASU 2020-04 – In March 2020, the FASB issued ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates such as LIBOR that are expected to be discontinued. This ASU provides exceptions and optional expedients for applying GAAP to contract modifications, hedging relationships, and other transactions that reference LIBOR or other reference rates to be discontinued as a result of reference rate reform. They do not apply to modifications made or hedges entered into or evaluated after December 31, 2022, unless the hedging relationships existed as of that date and optional expedients for them were elected and retained through the end of the hedging relationship. This ASU became effective upon issuance. We continue to evaluate the effect of this ASU and plan to utilize this relief for our debt agreements that include LIBOR rates. |
Income (loss) Per Common Share
Income (loss) Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Income (loss) Per Common Share | 2. Income (loss) Per Common Share Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars In Thousands, Except Per Share Amounts) Numerator: Net income (loss) $ 23,670 $ (365 ) $ 10,391 $ (19,817 ) Adjustments for basic net income (loss) per common share: Dividend requirements on Series E Redeemable Preferred (10,213 ) (8,689 ) (19,724 ) (16,996 ) Dividend requirements on Series B Preferred (60 ) (60 ) (120 ) (120 ) Dividend requirements on Series D Preferred (15 ) (15 ) (30 ) (30 ) Accretion of Series E Redeemable Preferred (513 ) (505 ) (1,024 ) (1,009 ) Net income attributable to participating securities (223 ) — — — Numerator for basic net income (loss) per common share - net income (loss) attributable to common stockholders $ 12,646 $ (9,634 ) $ (10,507 ) $ (37,972 ) Dividends on Series B and Series D Preferred assumed to be converted, if dilutive 75 — — — Numerator for diluted net income (loss) per common share $ 12,721 $ (9,634 ) $ (10,507 ) $ (37,972 ) Denominator: Denominator for basic net income (loss) per common share - weighted- average shares (1) 28,485,251 28,198,963 28,414,863 28,187,584 Effect of dilutive securities: Convertible preferred stocks 916,666 — — — Unvested restricted stock and stock units 741,784 — — Dilutive potential common shares 1,658,450 — — — Denominator for diluted net income (loss) per common share - adjusted weighted-average shares 30,143,701 28,198,963 28,414,863 28,187,584 Basic net income (loss) per common share $ 0.44 $ (0.34 ) $ (0.37 ) $ (1.35 ) Diluted net income (loss) per common share $ 0.42 $ (0.34 ) $ (0.37 ) $ (1.35 ) (1) Excludes the weighted-average shares of unvested restricted stock that are contingently issuable. The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Restricted stock and stock units — 1,308,881 1,662,514 1,257,869 Convertible preferred stocks — 916,666 916,666 916,666 Series E Redeemable Preferred - embedded derivative 303,646 303,646 303,646 303,646 Stock options 66,431 124,000 79,547 124,000 370,077 2,653,193 2,962,373 2,602,181 |
Current and Noncurrent Accrued
Current and Noncurrent Accrued and Other Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Current and Noncurrent Accrued and Other Liabilities | 3. Current and Noncurrent Accrued and Other Liabilities June 30, December 31, 2021 2020 (In Thousands) Accrued interest $ 8,649 $ 8,669 Accrued payroll and benefits 7,910 5,837 Current portion of operating lease liabilities 7,704 6,706 Accrued death and other executive benefits 2,527 2,539 Series E Redeemable Preferred - embedded derivative 2,181 1,029 Deferred revenue 895 1,890 Other 8,047 9,787 37,913 36,457 Less noncurrent portion 7,372 6,090 Current portion of accrued and other liabilities $ 30,541 $ 30,367 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. Long-Term Debt Our long-term debt consists of the following: June 30, December 31, 2021 2020 (In Thousands) Working Capital Revolver Loan, with a current interest rate of 3.75% (A) $ — $ — Senior Secured Notes due 2023 (B) 435,000 435,000 Secured Financing due 2023, with an interest rate of 8.32% (C) 9,241 10,715 Secured Loan Agreement due 2025, with an interest rate of 8.75% (D) 6,156 6,834 Secured Financing due 2025, with an interest rate of 8.75% (E) 26,534 28,636 Unsecured Loan Agreement due 2022 (F) — 10,000 Secured Promissory Note due 2021 — 1,221 Other 387 432 Unamortized discount, net of premium and debt issuance costs (6,810 ) (8,648 ) 470,508 484,190 Less current portion of long-term debt 9,049 16,801 Long-term debt due after one year, net $ 461,459 $ 467,389 (A) O ur revolving credit facility, as amended (the “Working Capital Revolver Loan”), provides for advances up to $ 65 million (the “Maximum Revolver Amount”), based on specific percentages of eligible accounts receivable and inventories and up to $ 10 million of letters of credit, the outstanding amount of which reduces the available for borrowing under the Working Capital Revolver Loan. At June 30, 2021 , our available borrowings under our Working Capital Revolver Loan were approximately $ 50.3 million , based on our eligible collateral, less outstanding letters of credit and loan balance. The maturity date of the Working Capital Revolver Loan is on the earlier of (i) the date that is 90 days prior to the earliest stated maturity date of the Senior Secured Notes (unless refinanced or repaid) and (ii) February 26, 2024 . Subject to certain conditions and subject to lender approval, the Maximum Revolver Amount may increase up to an additional $10 million. The Working Capital Revolver Loan also provides for a springing financial covenant (the “Financial Covenant”), which requires that, if the borrowing availability is less than 10.0% of the total revolver commitments, then the borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00 y. 4 . Long-Term Debt (continued) (B) On April 25, 2018, LSB completed the issuance and sale of $400 million aggregate principal amount of its 9.625% Senior Secured Notes due 2023 (the “Notes”), pursuant to an indenture (the “Indenture”), dated as of April 25, 2018. The Notes were issued at a price equal to 99.509% of their face value. On June 21, 2019, LSB completed the issuance and sale of $35 million aggregate principal amount of its 9.625% Senior Secured Notes due 2023 (the “New Notes”). The New Notes were issued pursuant to the Indenture (the Notes together with the New Notes, the “Senior Secured Notes”). The New Notes were issued at a price equal to 102.125% of their face value, plus accrued interest from May 1, 2019 to June 21, 2019. The Senior Secured Notes mature on May 1, 2023 . st st (C) El Dorado Chemical Company (“EDC”), one of our subsidiaries, is party to a secured financing arrangement with an affiliate of LSB Funding L.L.C. (“LSB Funding”). Principal and interest are payable in 48 equal monthly installments with a final balloon payment of approximately $3 million due in June 2023 (D) EDC is party to a secured loan agreement with an affiliate of LSB Funding. Principal and interest are payable in 60 equal monthly installments through March 2025. (E) In August 2020, El Dorado Ammonia L.L.C. (“EDA”), one of our subsidiaries, entered into a $30 million secured financing arrangement with an affiliate of LSB Funding. Beginning in September 2020, principal and interest are payable in 60 equal monthly installments with a final balloon payment of approximately $5 million due in August 2025 (F) In April 2020, LSB entered into a federally guaranteed loan agreement (“PPP loan”) for $10 million with a lender pursuant to a new loan program through the U.S. Small Business Administration (“SBA”) as the result of the Paycheck Protection Program (“PPP”) established by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and amended by the Paycheck Protection Program Flexibility Act of 2020. We applied ASC 470, Debt, to account for the PPP loan. We have used all of the proceeds from the PPP loan for payroll, rent, utilities, and other specified costs that qualify for loan forgiveness. In April 2021, we submitted the PPP loan forgiveness application to the lender. In June 2021, the PPP loan was fully forgiven by the SBA and lender. As a result, we recognized a gain on extinguishment of debt of $10 million for the three months ended June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Settlements and Outstanding Natural Gas Purchase Commitments – During several days in February 2021, the Pryor Facility was taken out of service after extreme cold weather caused a surge in natural gas prices in the region, along with the curtailment of gas distribution by the operator of the pipeline that supplies natural gas to the facility. Also, as a result of unprecedented cold weather conditions, the primary natural gas supplier to our El Dorado Facility asserted a claim of force majeure and materially restricted the supply of gas to the facility. In order to mitigate a portion of the commodity price risk associated with natural gas, we periodically enter into natural gas forward contracts and volume purchase commitments that locked in the cost of certain volumes of natural gas. Prior to this weather event, we had both types of arrangements. During the first quarter of 2021, as a result of the extreme conditions previously described, we settled all of our natural gas forward contracts and certain volume purchase commitments and recognized a realized gain of approximately $6.8 million, which includes the realized gain discussed under “Natural Gas Contracts” in Note 6 and is classified as a reduction to cost of sales. At June 30, 2021, certain of our natural gas contracts qualify as normal purchases under GAAP and thus are not mark-to-market, which contracts included volume purchase commitments with fixed costs of approximately 4.7 million MMBtus of natural gas. These contracts extend through December 2021 at a weighted-average cost of $2.75 per MMBtu ($13.1 million) and a weighted-average market value of $3.40 per MMBtu ($16.1 million). 5. Commitments and Contingencies (continued) Settlements of Gain Contingencies - In June 2020, EDC and certain vendors mediated settlements for EDC to recover certain costs associated with a nitric acid plant at our El Dorado Facility. The construction of this plant was completed, and the plant began production in 2016. As a result, the recovery from these settlements recognized during the three months ended June 30, 2020, includes approximately $5.7 million classified as a reduction to cost of sales and approximately $1.9 million classified as a reduction to PP&E. Legal Matters - Following is a summary of certain legal matters involving the Company: A. Environmental Matters Our facilities and operations are subject to numerous federal, state and local environmental laws and to other laws regarding health and safety matters (collectively, the “Environmental and Health Laws”), many of which provide for certain performance obligations, substantial fines and criminal sanctions for violations. Certain Environmental and Health Laws impose strict liability as well as joint and several liability for costs required to remediate and restore sites where hazardous substances, hydrocarbons or solid wastes have been stored or released. We may be required to remediate contaminated properties currently or formerly owned or operated by us or facilities of third parties that received waste generated by our operations regardless of whether such contamination resulted from the conduct of others or from consequences of our own actions that were in compliance with all applicable laws at the time those actions were taken. In addition, claims for damages to persons or property, including natural resources, may result from the environmental, health and safety effects of our operations. There can be no assurance that we will not incur material costs or liabilities in complying with such laws or in paying fines or penalties for violation of such laws. Our insurance may not cover all environmental risks and costs or may not provide sufficient coverage if an environmental claim is made against us. Historically, significant capital expenditures have been incurred by our subsidiaries in order to comply with the Environmental and Health Laws, and significant capital expenditures are expected to be incurred in the future. We will also be obligated to manage certain discharge water outlets and monitor groundwater contaminants at our facilities should we discontinue the operations of a facility. As of June 30, 2021, our totaled $467,000 relating primarily to the matters discussed below. It is reasonably possible that a change in the estimate of our liability could occur in the near term. 1. Discharge Water Matters Each of our manufacturing facilities generates process wastewater, which may include cooling tower and boiler water quality control streams, contact storm water and miscellaneous spills and leaks from process equipment. The process water discharge, storm-water runoff and miscellaneous spills and leaks are governed by various permits generally issued by the respective state environmental agencies as authorized and overseen by the U.S. Environmental Protection Agency. These permits limit the type and amount of effluents that can be discharged and control the method of such discharge. In 2017, the Pryor Chemical Company (“PCC”) filed a Permit Renewal Application for its Non-Hazardous Injection Well Permit at the Pryor Facility. Although the Injection Well Permit expired in 2018, PCC continues to operate the injection well pending the Oklahoma Department of Environmental Quality (“ODEQ”) action on the Permit Renewal Application. PCC and ODEQ are engaged in ongoing discussions related to the renewal of the injection well to address the wastewater stream. Our El Dorado Facility is subject to a National Pollutant Discharge Elimination System (“NPDES”) permit issued by the Arkansas Department of Environmental Quality (“ADEQ”) in 2004. In 2010, the ADEQ issued a draft NPDES permit renewal for the El Dorado Facility, which contained more restrictive discharge limits than the previous 2004 permit. During 2017, ADEQ issued a final NPDES permit with new dissolved mineral limits; however, EDC filed an appeal, and a Permit Appeal Resolution (“PAR”) was signed in 2018. EDC is in compliance with the revised permit limits agreed upon in the PAR. 5. Commitments and Contingencies (continued) In 2006, the El Dorado Facility entered into a Consent Administrative Order (“CAO”) that recognizes the presence of nitrate contamination in the shallow groundwater. The CAO required EDC to perform semi-annual groundwater monitoring, continue operation of a groundwater recovery system, submit a human health and ecological risk assessment, and submit a remedial action plan. The risk assessment was submitted in 2007. In 2015, the ADEQ stated that El Dorado Chemical was meeting the requirements of the CAO and should continue semi-annual monitoring. Subsequent to the PAR mentioned previously, a new CAO was signed in 2018, which required an Evaluation Report of the data and effectiveness of the groundwater remedy for nitrate contamination. During 2019, the Evaluation Report was submitted to the ADEQ and the ADEQ approved the report. No liability has been established at , in connection with this ADEQ matter. 2. Other Environmental Matters In 2002, certain of our subsidiaries sold substantially all of their operating assets relating to a Kansas chemical facility (the “Hallowell Facility”) but retained ownership of the real property where the facility is located. Our subsidiary retained the obligation to be responsible for, and perform the activities under, a previously executed consent order to investigate the surface and subsurface contamination at the real property, develop a corrective action strategy based on the investigation, and implement such strategy. In addition, certain of our subsidiaries agreed to indemnify the buyer of such assets for these environmental matters. As the successor to a prior owner of the Hallowell Facility, Chevron Environmental Management Company (“Chevron”) has agreed in writing, within certain limitations, to pay and has been paying one-half During this process, our subsidiary and Chevron retained an environmental consultant that prepared and performed a corrective action study work plan as to the appropriate method to remediate the Hallowell Facility. During 2020, the KDHE selected a remedy of annual monitoring and the implementation of an Environmental Use Control (“EUC”). This remedy primarily relates to long-term surface and groundwater monitoring to track the natural decline in contamination and is subject to a 5-year re-evaluation with the KDHE. The final remedy, including the EUC, the finalization of the cost estimates and any required financial assurances remains under discussion with the KDHE, but continues to be delayed due to the impact from the COVID-19 pandemic. Pending the results from our discussions regarding the final remedy, we continue to accrue our allocable portion of costs primarily for the additional testing, monitoring and risk assessments that could be reasonably estimated, which amount is included in our accrued liabilities for environmental matters discussed above. The estimated amount is not discounted to its present value. As more information becomes available, our estimated accrual will be refined, as necessary. B. Other Pending, Threatened or Settled Litigation In 2013, an explosion and fire occurred at the West Fertilizer Co. (“West Fertilizer”) located in West, Texas, causing death, bodily injury and substantial property damage. West Fertilizer is not owned or controlled by us, but West Fertilizer was a customer of EDC, and purchased AN from EDC from time to time. LSB and EDC received letters from counsel purporting to represent subrogated insurance carriers, personal injury claimants and persons who suffered property damages informing LSB and EDC that their clients are conducting investigations into the cause of the explosion and fire to determine, among other things, whether AN manufactured by EDC and supplied to West Fertilizer was stored at West Fertilizer at the time of the explosion and, if so, whether such AN may have been one of the contributing factors of the explosion. Initial lawsuits filed named West Fertilizer and another supplier of AN as defendants. In 2014, EDC and LSB were named as defendants, together with other AN manufacturers and brokers that arranged the transport and delivery of AN to West Fertilizer, in the case styled City of West, Texas vs. CF Industries, Inc., et al. 5. Commitments and Contingencies (continued) Our product liability insurance policies have aggregate limits of general liability totaling $100 million, with a self-insured retention of $250,000, which retention limit has been met relating to the West Fertilizer matter. In 2015, the trial court dismissed plaintiff’s negligenc Subsequently, we and EDC have entered into confidential settlement agreements (with approval of our insurance carriers) with several In 2015, we and EDA received formal written notice from Global Industrial, Inc. (“Global”) of Global’s intention to assert mechanic liens for labor, service, or materials furnished under certain subcontract agreements for the improvement of the new ammonia plant (“Ammonia Plant”) at our El Dorado Facility. Global was a subcontractor of Leidos Constructors, LLC (“Leidos”), the general contractor for EDA for the construction for the Ammonia Plant. Leidos terminated the services of Global with respect to their work performed at our El Dorado Facility. LSB and EDA are pursuing the recovery of any damage or loss caused by Global’s work performed through their contract with Leidos at our El Dorado Facility. In March 2016, EDC and LSB were served a summons in a case styled Global Industrial, Inc. d/b/a Global Turnaround vs. Leidos Constructors, LLC et al., 3.5 During 2018, the court bifurcated the case into: (1) Global’s claims against Leidos and LSB, and (2) the cross-claims between Leidos and LSB. Part (1) of the case was tried in the court. In March 2020, the court rendered an interim judgment and April 2020. In summary rate of 4.25% until • additional depreciation expense of $0.5 million classified as cost of sales; and • prejudgment and post- judgment interest expense totaling $ 1.4 million. We have filed a notice of intent to appeal, and the court entered a stay of the judgment pending appeal. LSB intends to vigorously prosecute its claims against Leidos and vigorously contest the cross-claims in Part (2) of the matter. Due to the impact from the COVID-19 pandemic, the trial date for Part (2) of the matter has been delayed and we are awaiting a new trial date. No liability was established at June 30, 2021, or December 31, 2020, in connection with the cross-claims in Part (2) of the matte r, except for certain invoices held in accounts payable. We are also involved in various other claims and legal actions (including matters involving gain contingencies). It is possible that the actual future development of claims could be different from our estimates but, after consultation with legal counsel, we believe that changes in our estimates will not have a material effect on our business, financial condition, results of operations or cash flows. |
Derivatives Hedges and Financia
Derivatives Hedges and Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives Hedges and Financial Instruments | 6. Derivatives, Hedges and Financial Instruments For the periods presented, th e following significant instruments are accounted for on a fair value basis: Natural Gas Contracts Periodically, we entered into certain forward natural gas contracts (“natural gas contracts”), which are accounted for on a mark-to-market basis. We are utilizing these natural gas contracts as economic hedges for risk management purposes but are not designated as hedging instruments. At December 31, 2020, our natural gas contracts included 7.3 million MMBtu of natural gas, that extended through December 2021, but these contracts were settled during the first quarter of 2021, primarily due to the weather event discussed in Note 5. At June 30, 2021, we had no outstanding natural gas contracts. The valuations of the natural gas contracts are classified as Level 2. At December 31, 2020, the valuation inputs included the contractual weighted-average cost of $2.65 per MMBtu and the weighted-average market value of $2.49 per MMBtu. For the six months ended June 30, 2021, we recognized a gain of $2.7 million (including a realized gain of $1.5 million), all of which was recognized in the first quarter. ended June 30, 2020 , respectively Embedded Derivative As discussed in Note 8, certain liability. At June 30, 2021, and December 31, 2020, we estimate The fair value of the embedded derivative was valued using discounted cash flow models and primarily based on the difference in the present value of estimated future cash flows with no redemptions prior to October 25, 2023, compared to certain estimated redemptions during the same period and applying the effective dividend rate of the Series E Redeemable Preferred. In addition, at June 30, 2021, and December 31, 2020, the at $6.05 and The valuations of the embedded derivative are classified as Level 3. This derivative is valued using market information, management’s redemption assumptions, the underlying number of shares as defined in the terms of the Series E Redeemable Preferred, and the market price of our common stock. For the three months ended June 30, 2021, and 2020, we recognized an unrealized loss of approximately $0.7 million and an unrealized gain of approximately $0.1 million, respectively, due to the change in fair value of the embedded derivative. For the six months ended June 30, 2021, and 2020, we recognized an unrealized loss of approximately $1.2 million and an unrealized gain of approximately $0.8 million, respectively, due to the change in fair value of the embedded derivative. The unrealized gain and loss are included in non-operating other income and expense. 6 . Derivatives, Hedges and Financial Instruments (continued) The following details our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2021, and December 31, 2020: Fair Value Measurements at June 30, 2021 Using Description Total Fair Value at June 30, 2021 Quoted Prices in Active Markets for Identical Contracts (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (1) Total Fair Value at December 31, 2020 (In Thousands) Assets - Supplies, prepaid items and other: Natural gas contracts $ — $ — $ — $ — $ 80 Total $ — $ — $ — $ — $ 80 Liabilities - Current and noncurrent accrued and other liabilities: Natural gas contracts $ — $ — $ — $ — $ 1,285 Embedded derivative $ 2,181 $ — $ — $ 2,181 $ 1,029 Total $ 2,181 $ — $ — $ 2,181 $ 2,314 (1) There was no Level 3 transfer activity for the six months ended June 30, 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Benefit for income taxes is as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In Thousands) Current: Federal $ — $ — $ — $ — State (175 ) (12 ) (462 ) 23 Total Current $ (175 ) $ (12 ) $ (462 ) $ 23 Deferred: Federal $ (57 ) $ (1,138 ) $ (136 ) $ (1,891 ) State (16 ) (149 ) 392 230 Total Deferred $ (73 ) $ (1,287 ) $ 256 $ (1,661 ) Benefit for income taxes $ (248 ) $ (1,299 ) $ (206 ) $ (1,638 ) 7 . Income Taxes (continued) For the three and six months ended June 30, 2021, and 2020, the current provision (benefit) for state income taxes shown above includes regular state income tax, provisions for uncertain state income tax positions, the impact of state tax law changes and other similar adjustments. Our estimated annual effective tax rate for 2021 includes the impact of permanent tax differences including but not limited to PPP loan forgiveness, limits on deductible compensation, state tax law changes, and valuation allowances. We considered both positive and negative evidence in our determination of the need for valuation allowances for deferred tax assets. Information evaluated includes our financial position and results of operations for the current and preceding years, the availability of deferred tax liabilities and tax carrybacks, as well as an evaluation of currently available information about future years. Valuation allowances are reflective of our quarterly analysis of the four sources of taxable income, including the calculation of the reversal of existing tax assets and liabilities, the impact of financing activities and our quarterly results. Based on our analysis, we currently believe that it is more-likely-than-not that a portion of our federal deferred tax assets will not be able to be utilized and we estimate the valuation allowance to be recorded during 2021 to be approximately $3.0 million. We have also determined it is more-likely-than-not that a portion of our state deferred tax assets will not be able to be utilized. However, we estimate a reduction in the related valuation allowance associated with these state deferred tax assets to be recorded during 2021 will be approximately $ We will continue to evaluate both the positive and negative evidence on a quarterly basis in determining the need for a valuation allowance with respect to our deferred tax assets. Changes in positive and negative evidence, including differences between estimated and actual results, could result in changes in the valuation of our deferred tax assets that could have a material impact on our consolidated financial statements. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time. The tax benefit for the six months ended June 30, 2021 was $0.2 million (2% benefit on pre-tax income) and the tax benefit for the six months ended June 30, 2020, was $1.6 million (8% benefit on pre-tax loss). For both periods, the effective tax rate is less than the statutory tax rate primarily due to the impact of the valuation allowances. LSB and certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the 2017-2020 years remain open for all purposes of examination by the U.S. Internal Revenue Service and other major tax jurisdictions. Additionally, the 2013-2016 years remain subject to examination for determining the amount of net operating loss and other carryforwards. |
Redeemable Preferred Stocks
Redeemable Preferred Stocks | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Redeemable Preferred Stocks | 8. Redeemable Preferred Stocks Series E and Series F Redeemable Preferred As of June 30, 2021, the Series E Redeemable Preferred had a 14.5% annual dividend rate and a participating right in dividends and liquidating distributions equal to 303,646 shares of common stock (participation rights value). Dividends accrue semi-annually in arrears and are compounded. Pursuant to the terms of the Series E Redeemable Preferred, the annual dividend rate will increase (a) by an additional 0.50% in April 2022 and (b) by an additional 1.0% in April 2023. The Series E Redeemable Preferred contains redemption features and a participation rights value that are being accounted for as derivative instruments and have been bifurcated from the Series E Redeemable Preferred as discussed in Note 6. Also, see discussion in Note 12 – Subsequent Events. As of June 30, 2021 Changes in our Series E and Series F Redeemable Preferred are as follows: Series Shares Amount (Dollars In Thousands) Balance at December 31, 2020 139,768 $ 272,101 Accretion relating to liquidation preference on preferred stock — 547 Accretion for discount and issuance costs on preferred stock — 477 Accumulated dividends — 19,724 Balance at June 30, 2021 139,768 $ 292,849 |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales | 9. Net Sales Disaggregated Net Sales As discussed in Note 1, we primarily derive our revenues from the sales of various chemical products. The following table presents our net sales disaggregated by our principal markets, Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In Thousands) Net sales: Agricultural products $ 66,508 $ 64,997 $ 111,421 $ 106,455 Industrial acids and other chemical products 60,608 29,559 100,883 64,765 Mining products 13,580 10,477 26,508 17,224 Total net sales $ 140,696 $ 105,033 $ 238,812 $ 188,444 Other Information Although most of our contracts have an original expected duration of one year or less, for our contracts with a duration greater than one year at contract inception, the average remaining expected duration was approximately 15 months at June 30, 2021 . Liabilities associated with contracts with customers (contract liabilities) primarily relate to deferred revenue and customer deposits associated with cash payments received in advance from customers for volume shortfall charges and product shipments. We had approximately $1.2 million and $2.5 million of contract liabilities as of and December 31, 2020, respectively. For the three and six months ended June 30, 2021, revenues of $1.0 million and $1.6 million, respectively, For the three and six months ended June 30, 2020, revenues of $1.5 million and $1.0 million, respectively, |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions As of June 30, 2021, we have three separate outstanding financing arrangements with an affiliate of LSB Funding as discussed in footnotes (D), (E) and (F) of Note 4. Also, an affiliate of LSB Funding holds $50 million of our Senior Secured Notes discussed in footnote (B) of Note 4. In addition, LSB Funding holds all outstanding shares of the Series E and Series F Redeemable Preferred discussed in Note 8. Also, see discussion in Note 12 – Subsequent Events. The Golsen Holders and an immediate family member hold all outstanding shares of the Series B Preferred and Series D Preferred, which accumulated dividends on such shares totaled approxim ately $1.7 million at . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information The following provides additional information relating to cash flow activities: Six Months Ended June 30, 2021 2020 (In Thousands) Cash refunds for: Income taxes, net $ (183 ) $ (319 ) Noncash continuing investing and financing activities: Accounts receivable, supplies, other assets, accounts payable and accrued liabilities associated with additions of property, plant and equipment $ 15,484 $ 11,152 Dividends accrued on Series E Redeemable Preferred $ 19,724 $ 16,996 Accounts payable associated with financing professional fees $ 1,916 $ — Accretion of Series E Redeemable Preferred $ 1,024 $ 1,009 Extinguishment of PPP loan $ 10,000 $ — |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On July 19, 2021, we entered into a Securities Exchange Agreement (the “Exchange Agreement”) with LSB Funding LLC (the “Holder”), an affiliate of Eldridge. Pursuant to the terms of the Exchange Agreement, the Holder has agreed with us to exchange all of the shares of our Series E and Series F Redeemable Preferred Stock held by it for shares of our common stock. Under the terms of the Exchange Agreement, LSB would exchange, at the closing, approximately $300 million of preferred stock held by Eldridge into an equivalent value of our common stock based on an exchange price of $6.16, which is equal to the 30-day volume weighted average price as of the date of the Exchange Agreement. In connection with the transaction, our common stockholders will receive a special dividend in the form of 0.30 shares of our common stock for every share owned as of the record date and any such amount received by the Holder will reduce the exchange consideration otherwise payable under the Exchange Agreement. Completion of the exchange transaction is subject to a number of customary closing conditions, including receipt of stockholder approval from the holders of a majority of the shares of our outstanding common stock not held by Eldridge or any of its affiliates. This summary description of the Exchange Agreement does not purport to be complete and is qualified in its entirety by reference to the Exchange Agreement included as exhibit 10.2 in this Form 10-Q. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation LSB Industries, Inc. (“LSB”) and its subsidiaries (the “Company,” “we,” “us,” or “our”) are consolidated in the accompanying condensed consolidated financial statements. LSB is a holding company with no significant operations or assets other than cash, cash equivalents, and investments in its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. |
Nature of Business | Nature of Business – We are engaged in the manufacture and sale of chemical products. The chemical products we primarily manufacture, market and sell are ammonia, fertilizer grade AN (“HDAN”) and UAN for agricultural applications, high purity and commercial grade ammonia, high purity AN, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications, and industrial grade AN (“LDAN”) and solutions for the mining industry. We manufacture and distribute our products in four facilities; three of which we own and are located in El Dorado, Arkansas (the “El Dorado Facility”); Cherokee, Alabama (the “Cherokee Facility”); and Pryor, Oklahoma (the “Pryor Facility”); and one of which we operate on behalf of a global chemical company in Baytown, Texas. Sales to customers include farmers, ranchers, fertilizer dealers and distributors primarily in the ranch land and grain production markets in the United States (“U.S.”); industrial users of acids throughout the U.S. and parts of Canada; and explosive manufacturers in the U.S. and parts of Mexico and Canada . In our opinion, the unaudited condensed consolidated financial statements of the Company as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 include all adjustments and accruals, consisting of normal, recurring accrual adjustments, which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year due, in part, to the seasonality of our sales of agricultural products and the timing of performing our major plant maintenance activities. Our selling seasons for agricultural products are primarily during the spring and fall planting seasons, which typically extend from March through June and from September through November. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in connection with our audited consolidated financial statements and notes thereto included in our 2020 Form |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Income Taxes | Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. We establish valuation allowances if we believe it is more-likely-than-not that some or all of deferred tax assets will not be realized. Significant judgment is applied in evaluating the need for and the magnitude of appropriate valuation allowances against deferred tax assets. In addition, we do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the relevant taxing authorities based solely on the technical merits of the associated tax position. If the recognition threshold is met, we recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. We reduce income tax expense for investment tax credits in the period the credit arises and is earned. |
Contingencies | Contingencies – Certain conditions may exist which may result in a loss, but which will only be resolved when future events occur. We and our legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, we would accrue for such contingent losses when such losses can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Loss contingency liabilities are included in current and noncurrent accrued and other liabilities and are based on current estimates that may be revised in the near term. In addition, we recognize contingent gains when such gains are realized or when the contingencies have been resolved (generally at the time a settlement has been reached). |
Redeemable Preferred Stocks | Redeemable Preferred Stocks – Our redeemable preferred stocks that are redeemable outside of our control are classified as temporary/mezzanine equity. The redeemable preferred stocks were recorded at fair value upon issuance, net of issuance costs or discounts. In addition, certain embedded features included in the Series E Redeemable Preferred required bifurcation and are classified as derivative liabilities. The carrying values of the redeemable preferred stocks are being increased by periodic accretions (including the amount for dividends earned but not yet declared or paid) using the interest method so that the carrying amount will equal the redemption value as of October 25, 2023, the earliest possible redemption date by the holder. The accretion was recorded to retained earnings. However, this accretion will change if the expected redemption date changes. Also, see discussion in Note 12 – Subsequent Events. |
Derivatives, Hedges and Financial Instruments | Derivatives, Hedges and Financial Instruments – Derivatives are recognized in the balance sheet and are measured at fair value. Changes in fair value of derivatives are recorded in results of operations unless the normal purchase or sale exceptions apply, or hedge accounting is elected. The fair value amounts recognized for our derivative contracts executed with the same counterparty under a master netting arrangement may be offset. We have the choice to offset or not, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability in the balance sheet. When applicable, we present the fair values of our derivative contracts under master netting agreements using a gross fair value presentation. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 - Valuations of contracts classified as Level 1 are based on quoted prices in active markets for identical contracts. Level 2 - Valuations of contracts classified as Level 2 are based on quoted prices for similar contracts and valuation inputs other than quoted prices that are observable for these contracts. Level 3 - Valuations of assets and liabilities classified as Level 3 are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. At June 30, 2021, and December 31, 2020, we did not have any financial instruments with fair values materially different from their carrying amounts (which excludes issuance costs, if applicable). The fair value of financial instruments is not indicative of the overall fair value of our assets and liabilities since financial instruments do not include all assets, including intangibles, and all liabilities. |
Equity Awards | Equity Awards – Equity award transactions with employees are measured based on the estimated fair value of the equity awards issued. For equity awards with service conditions that have a graded vesting period, we recognize compensation cost on a straight-line basis over the requisite service period for the entire award. Forfeitures are accounted for as they occur. We may issue new shares of common stock or may use treasury shares associated with the equity awards. 1. Summary of Significant Accounting Policies (continued) In January 2021, the compensation committee of our Board of Directors approved the grant of 614,999 shares of time-based restricted stock and 219,084 shares of performance-based restricted stock to certain executives under our 2016 Long Term Incentive Plan. The time-based restricted stock shares will vest at the end of each one-year period at the rate of one-third per year for three years, vesting 100% at the end of three years. The performance-based restricted stock will vest at the end of three years, subject to achievement of certain performance metrics. The unvested restricted shares carry dividend and voting rights contingent upon the vesting and lapsing of restriction. Sales of these shares are restricted prior to the date of vesting. Pursuant to the terms of the underlying restricted stock agreements, unvested restricted shares will immediately vest upon the occurrence of a change in control (as defined by agreement), termination without cause or death. |
Revenue Recognition | Revenue Recognition Revenue Recognition and Performance Obligations We determine revenue recognition through the following steps: • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Generally, satisfaction occurs when control of the promised goods is transferred to the customer or as services are rendered or completed in exchange for consideration in an amount for which we expect to be entitled. Generally, control is transferred when the preparation for shipment of the product to a customer has been completed. Most of our contracts contain a single performance obligation with the promise to transfer a specific product. Most of our revenue is recognized from performance obligations satisfied at a point in time, however, we have a performance obligation to perform certain services that are satisfied over a period of time. Revenue is recognized from this type of performance obligation as services are rendered and are based on the amount for which we have a right to invoice, which reflects the amount of expected consideration that corresponds directly with the value of the services performed. Transaction Price Constraints and Variable Consideration For most of our contracts with customers, the transaction price from the inception of a contract is constrained to a short period of time (generally one month) as these contracts contain terms with variable consideration related to both price and quantity. These contract prices are often based on commodity indexes (such as NYMEX natural gas index) published monthly and the contract quantities are typically based on estimated ranges. The quantities become fixed and determinable over a period of time as each sale order is received from the customer. The nature of our contracts also gives rise to other types of variable consideration, including volume discounts and rebates, make-whole provisions, other pricing concessions, and short-fall charges. We estimate these amounts based on the expected amount to be provided to customers, which result in a transaction price adjustment reducing revenue (net sales) with the offset increasing contract or refund liabilities. These estimates are based on historical experience, anticipated performance and our best judgment at the time. We reassess these estimates on a quarterly basis. The aforementioned constraints over transaction prices in conjunction with the variable consideration included in our material contracts prevent a practical assignment of a specific dollar amount to performance obligations at the beginning and end of the period. Therefore, we have applied the variable consideration allocation exception. Future revenues to be earned from the satisfaction of performance obligations will be recognized when control transfers as goods are loaded and weighed or services are performed over the remaining duration of our contracts. |
Income (Loss) per Common Share | Income (Loss) per Common Share – Net income (loss) attributable to common stockholders is computed by adjusting net income (loss) by the amount of dividends and dividend requirements on preferred stocks and the accretion of redeemable preferred stocks, if applicable. Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, excluding contingently issuable common shares (unvested restricted stock), if applicable. For periods we earn net income, a proportional share of net income is allocated to participating securities, if applicable and dilutive, determined by dividing total weighted average participating securities by the sum of the total weighted average common shares and participating securities (the “two-class method”). Certain securities (Series E Redeemable Preferred and restricted stock units) participate in dividends declared on our common stock and are therefore considered to be participating securities. 1. Summary of Significant Accounting Policies (continued) Participating securities have the effect of diluting both basic and diluted income per common share during periods of net income. For periods we incur a net loss, no loss is allocated to participating securities because they have no contractual obligation to share in our losses. Diluted loss per common share is computed after giving consideration to the dilutive effect of our potential common stock instruments that are outstanding during the period, except where such non-participating securities would be anti-dilutive. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncement ASU 2019-12 – In December 2019, the FASB issued ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The ASU removes certain exceptions to the general framework and also seeks to simplify and/or clarify accounting for income taxes by adding certain requirements that would simplify GAAP for financial statement preparers. On January 1, 2021, we adopted ASU 2019-12, which did not have a material impact on our condensed consolidated financial statements or related disclosures. Recently Issued Accounting Pronouncements ASU 2020-06 - In August 2020, the FASB issued ASU 2020 - 06 , Debt-Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s own Equity (Subtopic 815-40) . This ASU addresses the complexity associated with applying GAAP to certain financial instruments with characteristics of liabilities and equity. The ASU includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity’s own equity and simplifies the accounting for convertible instruments which include beneficial conversion features or cash conversion features by removing certain separation models. Additionally, the ASU requires entities to use the “if-converted” method when calculating diluted earnings per share for convertible instruments. This ASU will be effective for us on January 1, 2024; however, early adoption is permitted beginning January 1, 2021. We are evaluating the timing and the effect of our pending adoption of this ASU on our consolidated financial statements and related disclosures at this time. ASU 2020-04 – In March 2020, the FASB issued ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates such as LIBOR that are expected to be discontinued. This ASU provides exceptions and optional expedients for applying GAAP to contract modifications, hedging relationships, and other transactions that reference LIBOR or other reference rates to be discontinued as a result of reference rate reform. They do not apply to modifications made or hedges entered into or evaluated after December 31, 2022, unless the hedging relationships existed as of that date and optional expedients for them were elected and retained through the end of the hedging relationship. This ASU became effective upon issuance. We continue to evaluate the effect of this ASU and plan to utilize this relief for our debt agreements that include LIBOR rates. |
Income (loss) Per Common Share
Income (loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars In Thousands, Except Per Share Amounts) Numerator: Net income (loss) $ 23,670 $ (365 ) $ 10,391 $ (19,817 ) Adjustments for basic net income (loss) per common share: Dividend requirements on Series E Redeemable Preferred (10,213 ) (8,689 ) (19,724 ) (16,996 ) Dividend requirements on Series B Preferred (60 ) (60 ) (120 ) (120 ) Dividend requirements on Series D Preferred (15 ) (15 ) (30 ) (30 ) Accretion of Series E Redeemable Preferred (513 ) (505 ) (1,024 ) (1,009 ) Net income attributable to participating securities (223 ) — — — Numerator for basic net income (loss) per common share - net income (loss) attributable to common stockholders $ 12,646 $ (9,634 ) $ (10,507 ) $ (37,972 ) Dividends on Series B and Series D Preferred assumed to be converted, if dilutive 75 — — — Numerator for diluted net income (loss) per common share $ 12,721 $ (9,634 ) $ (10,507 ) $ (37,972 ) Denominator: Denominator for basic net income (loss) per common share - weighted- average shares (1) 28,485,251 28,198,963 28,414,863 28,187,584 Effect of dilutive securities: Convertible preferred stocks 916,666 — — — Unvested restricted stock and stock units 741,784 — — Dilutive potential common shares 1,658,450 — — — Denominator for diluted net income (loss) per common share - adjusted weighted-average shares 30,143,701 28,198,963 28,414,863 28,187,584 Basic net income (loss) per common share $ 0.44 $ (0.34 ) $ (0.37 ) $ (1.35 ) Diluted net income (loss) per common share $ 0.42 $ (0.34 ) $ (0.37 ) $ (1.35 ) (1) Excludes the weighted-average shares of unvested restricted stock that are contingently issuable. |
Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Common Share | The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Restricted stock and stock units — 1,308,881 1,662,514 1,257,869 Convertible preferred stocks — 916,666 916,666 916,666 Series E Redeemable Preferred - embedded derivative 303,646 303,646 303,646 303,646 Stock options 66,431 124,000 79,547 124,000 370,077 2,653,193 2,962,373 2,602,181 |
Current and Noncurrent Accrue_2
Current and Noncurrent Accrued and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Current and Noncurrent Accrued and Other Liabilities | June 30, December 31, 2021 2020 (In Thousands) Accrued interest $ 8,649 $ 8,669 Accrued payroll and benefits 7,910 5,837 Current portion of operating lease liabilities 7,704 6,706 Accrued death and other executive benefits 2,527 2,539 Series E Redeemable Preferred - embedded derivative 2,181 1,029 Deferred revenue 895 1,890 Other 8,047 9,787 37,913 36,457 Less noncurrent portion 7,372 6,090 Current portion of accrued and other liabilities $ 30,541 $ 30,367 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Revolving Credit Facility and Long-Term Debt | Our long-term debt consists of the following: June 30, December 31, 2021 2020 (In Thousands) Working Capital Revolver Loan, with a current interest rate of 3.75% (A) $ — $ — Senior Secured Notes due 2023 (B) 435,000 435,000 Secured Financing due 2023, with an interest rate of 8.32% (C) 9,241 10,715 Secured Loan Agreement due 2025, with an interest rate of 8.75% (D) 6,156 6,834 Secured Financing due 2025, with an interest rate of 8.75% (E) 26,534 28,636 Unsecured Loan Agreement due 2022 (F) — 10,000 Secured Promissory Note due 2021 — 1,221 Other 387 432 Unamortized discount, net of premium and debt issuance costs (6,810 ) (8,648 ) 470,508 484,190 Less current portion of long-term debt 9,049 16,801 Long-term debt due after one year, net $ 461,459 $ 467,389 (A) O ur revolving credit facility, as amended (the “Working Capital Revolver Loan”), provides for advances up to $ 65 million (the “Maximum Revolver Amount”), based on specific percentages of eligible accounts receivable and inventories and up to $ 10 million of letters of credit, the outstanding amount of which reduces the available for borrowing under the Working Capital Revolver Loan. At June 30, 2021 , our available borrowings under our Working Capital Revolver Loan were approximately $ 50.3 million , based on our eligible collateral, less outstanding letters of credit and loan balance. The maturity date of the Working Capital Revolver Loan is on the earlier of (i) the date that is 90 days prior to the earliest stated maturity date of the Senior Secured Notes (unless refinanced or repaid) and (ii) February 26, 2024 . Subject to certain conditions and subject to lender approval, the Maximum Revolver Amount may increase up to an additional $10 million. The Working Capital Revolver Loan also provides for a springing financial covenant (the “Financial Covenant”), which requires that, if the borrowing availability is less than 10.0% of the total revolver commitments, then the borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00 y. 4 . Long-Term Debt (continued) (B) On April 25, 2018, LSB completed the issuance and sale of $400 million aggregate principal amount of its 9.625% Senior Secured Notes due 2023 (the “Notes”), pursuant to an indenture (the “Indenture”), dated as of April 25, 2018. The Notes were issued at a price equal to 99.509% of their face value. On June 21, 2019, LSB completed the issuance and sale of $35 million aggregate principal amount of its 9.625% Senior Secured Notes due 2023 (the “New Notes”). The New Notes were issued pursuant to the Indenture (the Notes together with the New Notes, the “Senior Secured Notes”). The New Notes were issued at a price equal to 102.125% of their face value, plus accrued interest from May 1, 2019 to June 21, 2019. The Senior Secured Notes mature on May 1, 2023 . st st (C) El Dorado Chemical Company (“EDC”), one of our subsidiaries, is party to a secured financing arrangement with an affiliate of LSB Funding L.L.C. (“LSB Funding”). Principal and interest are payable in 48 equal monthly installments with a final balloon payment of approximately $3 million due in June 2023 (D) EDC is party to a secured loan agreement with an affiliate of LSB Funding. Principal and interest are payable in 60 equal monthly installments through March 2025. (E) In August 2020, El Dorado Ammonia L.L.C. (“EDA”), one of our subsidiaries, entered into a $30 million secured financing arrangement with an affiliate of LSB Funding. Beginning in September 2020, principal and interest are payable in 60 equal monthly installments with a final balloon payment of approximately $5 million due in August 2025 (F) In April 2020, LSB entered into a federally guaranteed loan agreement (“PPP loan”) for $10 million with a lender pursuant to a new loan program through the U.S. Small Business Administration (“SBA”) as the result of the Paycheck Protection Program (“PPP”) established by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and amended by the Paycheck Protection Program Flexibility Act of 2020. We applied ASC 470, Debt, to account for the PPP loan. We have used all of the proceeds from the PPP loan for payroll, rent, utilities, and other specified costs that qualify for loan forgiveness. In April 2021, we submitted the PPP loan forgiveness application to the lender. In June 2021, the PPP loan was fully forgiven by the SBA and lender. As a result, we recognized a gain on extinguishment of debt of $10 million for the three months ended June 30, 2021. |
Derivatives Hedges and Financ_2
Derivatives Hedges and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following details our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2021, and December 31, 2020 Fair Value Measurements at June 30, 2021 Using Description Total Fair Value at June 30, 2021 Quoted Prices in Active Markets for Identical Contracts (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (1) Total Fair Value at December 31, 2020 (In Thousands) Assets - Supplies, prepaid items and other: Natural gas contracts $ — $ — $ — $ — $ 80 Total $ — $ — $ — $ — $ 80 Liabilities - Current and noncurrent accrued and other liabilities: Natural gas contracts $ — $ — $ — $ — $ 1,285 Embedded derivative $ 2,181 $ — $ — $ 2,181 $ 1,029 Total $ 2,181 $ — $ — $ 2,181 $ 2,314 (1) There was no Level 3 transfer activity for the six months ended June 30, 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | Benefit for income taxes is as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In Thousands) Current: Federal $ — $ — $ — $ — State (175 ) (12 ) (462 ) 23 Total Current $ (175 ) $ (12 ) $ (462 ) $ 23 Deferred: Federal $ (57 ) $ (1,138 ) $ (136 ) $ (1,891 ) State (16 ) (149 ) 392 230 Total Deferred $ (73 ) $ (1,287 ) $ 256 $ (1,661 ) Benefit for income taxes $ (248 ) $ (1,299 ) $ (206 ) $ (1,638 ) |
Redeemable Preferred Stocks (Ta
Redeemable Preferred Stocks (Table) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Redeemable Preferred Stock | Changes in our Series E and Series F Redeemable Preferred are as follows: Series Shares Amount (Dollars In Thousands) Balance at December 31, 2020 139,768 $ 272,101 Accretion relating to liquidation preference on preferred stock — 547 Accretion for discount and issuance costs on preferred stock — 477 Accumulated dividends — 19,724 Balance at June 30, 2021 139,768 $ 292,849 |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Net Sales Disaggregated by Principal Markets | As discussed in Note 1, we primarily derive our revenues from the sales of various chemical products. The following table presents our net sales disaggregated by our principal markets, Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In Thousands) Net sales: Agricultural products $ 66,508 $ 64,997 $ 111,421 $ 106,455 Industrial acids and other chemical products 60,608 29,559 100,883 64,765 Mining products 13,580 10,477 26,508 17,224 Total net sales $ 140,696 $ 105,033 $ 238,812 $ 188,444 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Additional Information Relating to Cash Flow Activities | The following provides additional information relating to cash flow activities: Six Months Ended June 30, 2021 2020 (In Thousands) Cash refunds for: Income taxes, net $ (183 ) $ (319 ) Noncash continuing investing and financing activities: Accounts receivable, supplies, other assets, accounts payable and accrued liabilities associated with additions of property, plant and equipment $ 15,484 $ 11,152 Dividends accrued on Series E Redeemable Preferred $ 19,724 $ 16,996 Accounts payable associated with financing professional fees $ 1,916 $ — Accretion of Series E Redeemable Preferred $ 1,024 $ 1,009 Extinguishment of PPP loan $ 10,000 $ — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 6 Months Ended |
Jan. 31, 2021shares | Jun. 30, 2021Facility | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of facilities for manufacture and distribution of products | Facility | 4 | |
Tax benefit recognized | greater than 50% | |
2016 Long Term Incentive Plan [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Awards granted vesting period | The time-based restricted stock shares will vest at the end of each one-year period at the rate of one-third per year for three years, vesting 100% at the end of three years. The performance-based restricted stock will vest at the end of three years | |
2016 Long Term Incentive Plan [Member] | Time Based Restricted Stock [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Awards granted | 614,999 | |
Vesting period of shares | 3 years | |
2016 Long Term Incentive Plan [Member] | Performance Based Restricted Stock [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Awards granted | 219,084 | |
Vesting period of shares | 3 years |
Income (loss) Per Common Shar_2
Income (loss) Per Common Share - Computation of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||||
Net income (loss) | $ 23,670 | $ (13,279) | $ (365) | $ (19,452) | $ 10,391 | $ (19,817) |
Adjustments for basic net income (loss) per common share: | ||||||
Dividend accrued on redeemable preferred stock | (10,213) | $ (9,511) | (8,689) | $ (8,307) | ||
Dividend requirements | (75) | (75) | (150) | (150) | ||
Net income attributable to participating securities | (223) | |||||
Net income (loss) attributable to common stockholders | 12,646 | (9,634) | (10,507) | (37,972) | ||
Dividends on Series B and Series D Preferred assumed to be converted, if dilutive | 75 | |||||
Numerator for diluted net income (loss) per common share | $ 12,721 | $ (9,634) | $ (10,507) | $ (37,972) | ||
Denominator: | ||||||
Denominator for basic net income (loss) per common share - weighted- average shares | 28,485,251 | 28,198,963 | 28,414,863 | 28,187,584 | ||
Effect of dilutive securities: | ||||||
Convertible preferred stocks | 916,666 | |||||
Unvested restricted stock and stock units | 741,784 | |||||
Dilutive potential common shares | 1,658,450 | |||||
Denominator for diluted net income (loss) per common share - adjusted weighted-average shares | 30,143,701 | 28,198,963 | 28,414,863 | 28,187,584 | ||
Net income (loss) | $ 0.44 | $ (0.34) | $ (0.37) | $ (1.35) | ||
Net income (loss) | $ 0.42 | $ (0.34) | $ (0.37) | $ (1.35) | ||
Series E Redeemable Preferred Stock [Member] | ||||||
Adjustments for basic net income (loss) per common share: | ||||||
Dividend accrued on redeemable preferred stock | $ (10,213) | $ (8,689) | $ (19,724) | $ (16,996) | ||
Accretion of redeemable preferred stock | (513) | (505) | (1,024) | (1,009) | ||
Series B Preferred Stock [Member] | ||||||
Adjustments for basic net income (loss) per common share: | ||||||
Dividend requirements | (60) | (60) | (120) | (120) | ||
Series D Preferred Stock [Member] | ||||||
Adjustments for basic net income (loss) per common share: | ||||||
Dividend requirements | $ (15) | $ (15) | $ (30) | $ (30) |
Income (loss) Per Common Shar_3
Income (loss) Per Common Share - Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Common Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 370,077 | 2,653,193 | 2,962,373 | 2,602,181 |
Restricted Stock and Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,308,881 | 1,662,514 | 1,257,869 | |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 66,431 | 124,000 | 79,547 | 124,000 |
Series E Redeemable Preferred Stock [Member] | Embedded Derivative [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 303,646 | 303,646 | 303,646 | 303,646 |
Convertible Preferred Stocks [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 916,666 | 916,666 | 916,666 |
Current and Noncurrent Accrue_3
Current and Noncurrent Accrued and Other Liabilities - Summary of Current and Noncurrent Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued interest | $ 8,649 | $ 8,669 |
Accrued payroll and benefits | 7,910 | 5,837 |
Current portion of operating lease liabilities | 7,704 | 6,706 |
Accrued death and other executive benefits | 2,527 | 2,539 |
Series E Redeemable Preferred - embedded derivative | 2,181 | 1,029 |
Deferred revenue | 895 | 1,890 |
Other | 8,047 | 9,787 |
Total current and noncurrent accrued liabilities | 37,913 | 36,457 |
Less noncurrent portion | 7,372 | 6,090 |
Current portion of accrued and other liabilities | $ 30,541 | $ 30,367 |
Long-Term Debt - Schedule of Re
Long-Term Debt - Schedule of Revolving Credit Facility and Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Unamortized discount, net of premium and debt issuance costs | $ (6,810) | $ (8,648) |
Long-term debt | 470,508 | 484,190 |
Less current portion of long-term debt | 9,049 | 16,801 |
Long-term debt due after one year, net | 461,459 | 467,389 |
Senior Secured Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 435,000 | 435,000 |
8.32% Secured Financing Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 9,241 | 10,715 |
8.75% Secured Loan Agreement Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 6,156 | 6,834 |
8.75% Secured Financing Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 26,534 | 28,636 |
Unsecured Loan Agreement Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 10,000 | |
Secured Promissory Note Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 1,221 | |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | $ 387 | $ 432 |
Long-Term Debt - Working Capita
Long-Term Debt - Working Capital Revolver Loan and Senior Secured Notes - Additional Information (Detail) - USD ($) | Jun. 21, 2019 | Apr. 25, 2018 | Jun. 30, 2021 | Jun. 30, 2021 | Feb. 28, 2019 |
Debt Instrument [Line Items] | |||||
Gain on Extinguishment of Debt | $ 10,000,000 | $ 10,000,000 | |||
Working Capital Revolver Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of revolving credit facility | $ 65,000,000 | ||||
Revolving credit facility, increase (decrease), net | 10,000,000 | ||||
Amount available for borrowing | $ 50,300,000 | $ 50,300,000 | |||
Maturity date | Feb. 26, 2024 | ||||
Springing Financials Covenant [Member] | Working Capital Revolver Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Working capital revolver loan requirements | borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00. | ||||
Maximum revolver commitment available, percentage | 10.00% | ||||
Loan requirements description | less than 10.0% of the total revolver commitments | ||||
Fixed charge coverage ratio | 100.00% | 100.00% | |||
9.625% Senior Secured Notes Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | May 1, 2023 | ||||
Debt issued - principal amount | $ 35,000,000 | $ 400,000,000 | |||
Debt instrument, interest rate | 9.625% | 9.625% | |||
Debt instrument, maturity term | 2023 | 2023 | |||
Debt instrument issued price percentage | 102.125% | 99.509% | |||
Debt instrument, frequency of interest payment | Interest is to be paid semiannually in arrears on May 1st and November 1st | ||||
8.32% Secured Financing Due 2023 [Member] | El Dorado Chemical Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jun. 30, 2023 | ||||
Debt instrument, frequency of interest payment | Principal and interest are payable in 48 equal monthly installments with a final balloon payment of approximately $3 million due in June 2023 | ||||
Final balloon payment | $ 3,000,000 | $ 3,000,000 | |||
Secured Loan Agreement [Member] | El Dorado Chemical Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, frequency of interest payment | Principal and interest are payable in 60 equal monthly installments through March 2025. | ||||
8.75% Secured Financing Due 2025 [Member] | El Dorado Ammonia L.L.C. [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Aug. 31, 2025 | ||||
Debt issued - principal amount | 30,000,000 | $ 30,000,000 | |||
Debt instrument, frequency of interest payment | principal and interest are payable in 60 equal monthly installments with a final balloon payment of approximately $5 million due in August 2025 | ||||
Final balloon payment | 5,000,000 | $ 5,000,000 | |||
Paycheck Protection Program [Member] | |||||
Debt Instrument [Line Items] | |||||
Federally guaranteed loan agreement ("PPP loan") | $ 10,000,000 | $ 10,000,000 | |||
Letter of Credit [Member] | Working Capital Revolver Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of revolving credit facility | $ 10,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) MMBTU in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)MMBTUSettlement$ / MMBTU | Mar. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Accrued liabilities for environmental matters | $ 467,000 | |||
Percentage of payment of investigation costs agreed by Hallowell Facility | 50.00% | |||
Insurance coverage of general liability and auto liability risks | $ 100,000,000 | |||
Product liability deductible per claim | $ 250,000 | |||
Confidential settlement agreement with family groups | Settlement | 3 | |||
Liability reserve | $ 0 | |||
Accrued prejudgment and post-judgment interest | $ 1,400,000 | |||
Global Industrial Inc [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount awarded for labor, service, materials and other | 7,400,000 | |||
Prejudgment interest | $ 1,300,000 | |||
Percentage of accrue post judgement interest | 4.25% | |||
Leidos Constructors, LLC [Member] | Global Industrial Inc [Member] | Accounts Payable [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Claim amount not approved for payment | $ 3,500,000 | |||
Property, Plant and Equipment [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount recovered due settlement | $ 1,900,000 | |||
Depreciation expense | $ 500,000 | |||
Cost of Sales [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount recovered due settlement | $ 5,700,000 | |||
Natural Gas Purchase Commitments | ||||
Commitments And Contingencies [Line Items] | ||||
Natural gas purchase commitments volume | MMBTU | 4.7 | |||
Weighted average cost of natural gas per unit | $ / MMBTU | 2.75 | |||
Weighted average purchase price of natural gas | $ 13,100,000 | |||
Weighted average natural gas market value per unit | $ / MMBTU | 3.40 | |||
Weighted average natural gas market value | $ 16,100,000 |
Derivatives Hedges and Financ_3
Derivatives Hedges and Financial Instruments - Additional Information (Detail) $ / shares in Units, MMBTU in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)MMBTU$ / shares$ / MMBTU | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)MMBTU$ / shares$ / MMBTUshares | Jun. 30, 2020USD ($) | Dec. 31, 2020MMBTU$ / shares$ / MMBTUshares | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) on sale of natural gas | $ | $ 0.7 | $ 2.7 | $ (0.7) | ||
Realized gain on sale of natural gas | $ | 1.5 | ||||
Non-Operating Other Income and Expense [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Unrealized gain (loss) on fair value of embedded derivative | $ | $ (0.7) | $ 0.1 | $ (1.2) | $ 0.8 | |
Embedded Derivative [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Participating right in dividends and liquidating distributions expressed in number of common shares | shares | 303,646 | 303,646 | |||
Embedded Derivative [Member] | Common Stock [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Common stock per share | $ / shares | $ 6.05 | $ 6.05 | $ 3.39 | ||
Natural Gas Purchase Commitments | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Natural gas purchase commitments volume | MMBTU | 4.7 | 4.7 | |||
Weighted average cost of natural gas per unit | 2.75 | 2.75 | |||
Weighted average natural gas market value per unit | 3.40 | 3.40 | |||
Natural Gas Purchase Commitments | Level 2 [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Natural gas purchase commitments volume | MMBTU | 7.3 | ||||
Weighted average cost of natural gas per unit | 2.65 | ||||
Weighted average natural gas market value per unit | 2.49 |
Derivatives Hedges and Financ_4
Derivatives Hedges and Financial Instruments - Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Embedded derivative | $ 2,181 | $ 1,029 |
Fair Value, Recurring | ||
Assets - Supplies, prepaid items and other: | ||
Natural gas contracts | 80 | |
Total | 80 | |
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Natural gas contracts | 1,285 | |
Embedded derivative | 2,181 | 1,029 |
Total | 2,181 | $ 2,314 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Embedded derivative | 2,181 | |
Total | $ 2,181 |
Derivatives Hedges and Financ_5
Derivatives Hedges and Financial Instruments - Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Offsetting [Abstract] | |
Level 3 transfer | $ 0 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Current: | ||||
State | $ (175) | $ (12) | $ (462) | $ 23 |
Total Current | (175) | (12) | (462) | 23 |
Deferred: | ||||
Federal | (57) | (1,138) | (136) | (1,891) |
State | (16) | (149) | 392 | 230 |
Total Deferred | (73) | (1,287) | 256 | (1,661) |
Benefit for income taxes | $ (248) | $ (1,299) | $ (206) | $ (1,638) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Benefit for income taxes | $ (248) | $ (1,299) | $ (206) | $ (1,638) |
Percentage of benefit/provision on pre-tax loss | 2.00% | 8.00% | ||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Portion of state deferred tax assets, not able to be utilized | $ 4,400 | $ 4,400 | ||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets valuation allowance | $ 3,000 |
Redeemable Preferred Stocks - A
Redeemable Preferred Stocks - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021shares | |
Series E Redeemable Preferred Stock [Member] | |
Class Of Stock [Line Items] | |
Preferred stock cumulative dividend rate | 14.50% |
Participating right in dividends and liquidating distributions expressed in number of common shares | 303,646 |
Series E Redeemable Preferred Stock [Member] | April 2022 | |
Class Of Stock [Line Items] | |
Increase in preferred stock cumulative dividend rate | 0.50% |
Series E Redeemable Preferred Stock [Member] | April 2023 | |
Class Of Stock [Line Items] | |
Increase in preferred stock cumulative dividend rate | 1.00% |
Series F Redeemable Preferred Stock [Member] | |
Class Of Stock [Line Items] | |
Common stock voting rights shares | 456,225 |
Voting rights description | As of June 30, 2021, the Series F Redeemable Preferred has voting rights to vote as a single class on all matters which the common stock have the right to vote and is entitled to a number of votes equal to 456,225 shares of our common stock. |
Redeemable Preferred Stocks - S
Redeemable Preferred Stocks - Summary of Redeemable Preferred Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stockholders Equity [Line Items] | ||||||
Accumulated dividends | $ 10,213 | $ 9,511 | $ 8,689 | $ 8,307 | ||
Series E Redeemable Preferred Stock [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Beginning balance | $ 272,101 | $ 272,101 | ||||
Beginning balance, shares | 139,768 | 139,768 | ||||
Accretion relating to liquidation preference on preferred stock | $ 547 | |||||
Accretion for discount and issuance costs on preferred stock | 477 | |||||
Accumulated dividends | 10,213 | $ 8,689 | 19,724 | $ 16,996 | ||
Ending balance | $ 292,849 | $ 292,849 | ||||
Ending balance, shares | 139,768 | 139,768 |
Net Sales - Summary of Net Sale
Net Sales - Summary of Net Sales Disaggregated by Principal Markets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net sales: | ||||
Net sales | $ 140,696 | $ 105,033 | $ 238,812 | $ 188,444 |
Chemical [Member] | ||||
Net sales: | ||||
Net sales | 140,696 | 105,033 | 238,812 | 188,444 |
Chemical [Member] | Agricultural Products [Member] | ||||
Net sales: | ||||
Net sales | 66,508 | 64,997 | 111,421 | 106,455 |
Chemical [Member] | Industrial Acids and Other Chemical Products [Member] | ||||
Net sales: | ||||
Net sales | 60,608 | 29,559 | 100,883 | 64,765 |
Chemical [Member] | Mining Products [Member] | ||||
Net sales: | ||||
Net sales | $ 13,580 | $ 10,477 | $ 26,508 | $ 17,224 |
Net Sales - Additional Informat
Net Sales - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |||||
Revenue, remaining performance obligation, expected timing of satisfaction, description | contracts have an original expected duration of one year or less, for our contracts with a duration greater than one year at contract inception, the average remaining expected duration was approximately 15 months | ||||
Average revenue remaining performance obligation expected timing of satisfaction period | 15 months | ||||
Contract liabilities | $ 1.2 | $ 1.2 | $ 2.5 | ||
Contract with customer, liability partially offset revenue recognized | $ 1 | $ 1.5 | $ 1.6 | $ 1 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | Jun. 30, 2021USD ($) |
Related Party Transaction [Line Items] | |
Preferred stock, accumulated dividends | $ 1.7 |
Affiliate of LSB Funding [Member] | |
Related Party Transaction [Line Items] | |
Principal amount of notes hold | $ 50 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Additional Information Relating to Cash Flow Activities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash refunds for: | ||
Income taxes, net | $ (183) | $ (319) |
Noncash continuing investing and financing activities: | ||
Accounts receivable, supplies, other assets, accounts payable and accrued liabilities associated with additions of property, plant and equipment | 15,484 | 11,152 |
Accounts payable associated with financing professional fees | 1,916 | |
Extinguishment of PPP loan | 10,000 | |
Series E Redeemable Preferred Stock [Member] | ||
Noncash continuing investing and financing activities: | ||
Dividends accrued on Series E Redeemable Preferred | 19,724 | 16,996 |
Accretion of Series E Redeemable Preferred | $ 1,024 | $ 1,009 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Exchange Agreement [Member] - Subsequent Event - Eldridge | Jul. 19, 2021$ / sharesshares |
Subsequent Event [Line Items] | |
Value of preferred stock to be exchanged for shares of common stock | 300,000,000 |
Preferred stock conversion exchange price | $ / shares | $ 6.16 |
Special Dividends | |
Subsequent Event [Line Items] | |
Special dividend payable in shares | 0.30 |