OKLAHOMA CITY--LSB Industries, Inc. (NYSE:LXU) (“LSB” or “the Company”) today announced that its Board of Directors (“Board”) has not been presented with a sale transaction that they feel is in the best interests of shareholders. As a result, at this time, the Board has made a decision to terminate the formal sale process portion of its strategic review. The Board always remains open and willing to engage in these types of discussions. While we are not sharing specific details of the process, we believe that, at this time, the current outlook in the nitrogen chemical industry is adversely affecting any potential transactions. The Board will, however, continue to work with its outside advisors on evaluating other strategic, financial and operational options. The Board and management continue to focus on the execution of their major objectives of:
- Improving overall plant reliability with a goal of achieving average ammonia plant on-stream rates of at least 95%;
- Continuing to streamline its corporate structure to reduce costs;
- Reducing overall plant costs;
- Expanding into new markets with enhanced distribution; and,
- Reducing the Company’s leverage to seek greater financial flexibility and an improved capital structure.
About LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma, manufactures and sells chemical products for the agricultural, mining, and industrial markets. The Company owns and operates facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates a facility for a global chemical company in Baytown, Texas. LSB’s products are sold through distributors and directly to end customers throughout the United States. Additional information about the Company can be found on its website at www.lsbindustries.com.
Forward Looking Statement
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identifiable by use of the words “may,” “believe,” “expect,” “intend,” “plan to,” “estimate,” “project” or similar expressions, and include but are not limited to: enhanced reliability at our Facilities; reducing costs; expanding into new markets; and reducing leverage and improving the capital structure.
Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve risk and uncertainties. Though we believe that expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectation will prove to be correct. Actual results may differ materially from the forward-looking statements as a result of various factors. These and other risk factors are discussed in the Company’s filings with the Securities and Exchange Commission (SEC), including those set forth under “Risk Factors” and “Special Note Regarding Forward-Looking Statements” in our Form 10-K for the year ended December 31, 2016 and, if applicable, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. We expressly disclaim any obligation to update, amend or clarify and forward-looking statement to reflect events, new information or circumstances occurring after the date of this press release except as required by applicable law.