Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 18, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LXU | |
Entity Registrant Name | LSB INDUSTRIES INC | |
Entity Central Index Key | 0000060714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 28,769,635 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 21,705 | $ 26,048 |
Accounts receivable | 46,524 | 67,043 |
Allowance for doubtful accounts | (475) | (351) |
Accounts receivable, net | 46,049 | 66,692 |
Inventories: | ||
Finished goods | 30,301 | 27,726 |
Raw materials | 2,239 | 1,483 |
Total inventories | 32,540 | 29,209 |
Supplies, prepaid items and other: | ||
Prepaid insurance | 7,933 | 10,924 |
Supplies | 25,276 | 24,576 |
Other | 8,002 | 8,964 |
Total supplies, prepaid items and other | 41,211 | 44,464 |
Total current assets | 141,505 | 166,413 |
Property, plant and equipment, net | 962,538 | 974,248 |
Other assets: | ||
Operating lease assets | 15,317 | |
Intangible and other assets, net | 7,109 | 7,672 |
Total other assets | 22,426 | 7,672 |
Total Assets | 1,126,469 | 1,148,333 |
Current liabilities: | ||
Accounts payable | 49,898 | 62,589 |
Short-term financing | 5,863 | 8,577 |
Accrued and other liabilities | 37,671 | 42,129 |
Current portion of long-term debt | 12,275 | 12,518 |
Total current liabilities | 105,707 | 125,813 |
Long-term debt, net | 412,913 | 412,681 |
Noncurrent operating lease liabilities | 9,671 | |
Other noncurrent accrued and other liabilities | 8,373 | 8,861 |
Deferred income taxes | 57,057 | 56,612 |
Commitments and contingencies (Note 6) | ||
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 | 198,950 | 198,482 |
Retained earnings | 134,481 | 153,773 |
Stockholders equity including treasury stock | 339,559 | 358,383 |
Less treasury stock, at cost: | ||
Common stock, 2,513,575 shares (2,438,305 shares at December 31, 2018) | 16,732 | 16,186 |
Total stockholders' equity | 322,827 | 342,197 |
Total Liabilities and Stockholders' equity | 1,126,469 | 1,148,333 |
Series E Preferred Stock [Member] | ||
Redeemable preferred stocks: | ||
Redeemable preferred stock, value | 209,921 | 202,169 |
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 ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
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 | 2,513,575 | 2,438,305 |
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 | |
Redeemable preferred stock, shares outstanding | 139,768 | |
Redeemable preferred stock, liquidation preference | $ 219,327,000 | $ 212,071,000 |
Series F Preferred Stock [Member] | ||
Redeemable preferred stock, par value | $ 0 | $ 0 |
Redeemable preferred stock, shares issued | 1 | |
Redeemable preferred stock, shares outstanding | 1 | |
Redeemable preferred stock, liquidation preference | $ 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 | $ 2,845,000 | $ 2,785,000 |
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 | $ 1,207,000 | $ 1,192,000 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net sales | $ 94,152 | $ 100,450 |
Cost of sales | 86,834 | 90,357 |
Gross profit | 7,318 | 10,093 |
Selling, general and administrative expense | 7,224 | 8,303 |
Other expense (income), net | 23 | (94) |
Operating income | 71 | 1,884 |
Interest expense, net | 10,987 | 9,306 |
Non-operating other expense (income), net | 224 | (909) |
Loss before provision (benefit) for income taxes | (11,140) | (6,513) |
Provision (benefit) for income taxes | 400 | (922) |
Net loss | (11,540) | (5,591) |
Dividends on convertible preferred stocks | 75 | 75 |
Net loss attributable to common stockholders | $ (19,367) | $ (13,603) |
Basic and dilutive net loss per common share: | $ (0.69) | $ (0.49) |
Series E Preferred Stock [Member] | ||
Dividends on Series E redeemable preferred stock | $ 7,256 | $ 6,338 |
Accretion of Series E redeemable preferred stock | $ 496 | $ 1,599 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (Unaudited) - 3 months ended Mar. 31, 2019 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Shares [Member] | Treasury Stock-Common [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Non-Redeemable Preferred Stock [Member] |
Balance at Dec. 31, 2018 | $ 342,197 | $ 3,128 | $ (16,186) | $ 198,482 | $ 153,773 | $ 3,000 |
Balance, shares at Dec. 31, 2018 | 31,283 | (2,438) | ||||
Net loss | (11,540) | (11,540) | ||||
Dividend accrued on redeemable preferred stock | (7,256) | (7,256) | ||||
Accretion of redeemable preferred stock | (496) | (496) | ||||
Stock-based compensation | 612 | 612 | ||||
Other | (690) | $ (546) | (144) | |||
Other, Shares | (76) | |||||
Balance at Mar. 31, 2019 | $ 322,827 | $ 3,128 | $ (16,732) | $ 198,950 | $ 134,481 | $ 3,000 |
Balance, shares at Mar. 31, 2019 | 31,283 | (2,514) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (11,540) | $ (5,591) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Deferred income taxes | 445 | (910) |
Depreciation and amortization of property, plant and equipment | 16,826 | 17,736 |
Amortization of intangible and other assets | 313 | 602 |
Other | 2,098 | 627 |
Cash provided (used) by changes in assets and liabilities: | ||
Accounts receivable | 2,543 | (7,443) |
Inventories | (3,393) | 1,650 |
Prepaid insurance | 2,991 | 2,722 |
Accounts payable | (10,480) | (431) |
Accrued interest | 9,659 | (7,959) |
Other assets and other liabilities | (2,401) | 214 |
Net cash provided by operating activities | 7,061 | 1,217 |
Cash flows from investing activities | ||
Expenditures for property, plant and equipment | (7,115) | (6,247) |
Proceeds from property insurance recovery associated with property, plant and equipment | 1,531 | |
Net proceeds from sale of discontinued operations | 2,730 | |
Other investing activities | 9 | 95 |
Net cash used by investing activities | (7,106) | (1,891) |
Cash flows from financing activities | ||
Proceeds from other long-term debt | 795 | |
Payments on other long-term debt | (1,610) | (1,647) |
Payments on short-term financing | (2,714) | (2,447) |
Taxes paid on equity awards | (690) | (184) |
Other financing activities | (79) | |
Net cash used by financing activities | (4,298) | (4,278) |
Net decrease in cash and cash equivalents | (4,343) | (4,952) |
Cash and cash equivalents at beginning of period | 26,048 | 33,619 |
Cash and cash equivalents at end of period | $ 21,705 | $ 28,667 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 (“2018 26, 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 condensed 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 ammonium nitrate (“HDAN”), urea ammonium nitrate (“UAN”), and ammonium nitrate (“AN”) solution 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 (the “Baytown Facility”). 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. In 2016, LSB completed the sale of all of the stock of the Climate Control Group, Inc. (an indirect subsidiary that conducted LSB’s Climate Control Business) pursuant to the terms of a stock purchase agreement. During the first quarter of 2018, we received the remaining proceeds held in a related indemnity escrow account of $2.7 million. In our opinion, the unaudited condensed consolidated financial statements of the Company as of March 31, 2019 and for the three-month periods ended March 31, 2019 and 2018 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 2018 Form 10-K. 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 record interest related to unrecognized tax positions in interest expense and penalties in operating other expense. 1. Summary of Significant Accounting Policies (continued) Income tax benefits associated with amounts that are deductible for income tax purposes are recorded through the statement of operations. These benefits are principally generated from exercises of non-qualified stock options and restricted stock. We reduce income tax expense for investment tax credits in the period the credit arises and is earned. 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. Recently Adopted Accounting Pronouncements ASU 2016-02 and related ASUs – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes the lease requirements in Topic 840, Leases . In addition, the FASB issued various other ASUs further amending lease accounting guidance (together “ASC 842”). On January 1, 2018, we adopted ASC 842 as discussed in Note 2. |
Adoption of ASC 842
Adoption of ASC 842 | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Adoption of ASC 842 | 2. Adoption of ASC 842 On January 1, 2019, we adopted ASC 842 using the additional transition method option provided by ASU 2018-11. Under this transition method, we applied the new accounting guidance on the date of adoption. Upon adoption, a cumulative effect adjustment was not required; however, the effect of this guidance on our consolidated financial statements impacted our balance sheet presentation by increasing the amount of our noncurrent assets for the inclusion of right-of-use assets of $15.9 million and increasing the amount of our liabilities for the inclusion of the associated lease obligations of $15.9 million, most of which are classified as noncurrent. Under the transition option we elected, ASC 842 is applied only to the most current period presented in the financial statements and our reporting for the comparative periods presented in the financial statements continue to be in accordance with Topic 840, including disclosures. Upon adoption, we elected the following accounting policies or practical expedients related to ASC 842: • not reassess whether any expired or existing contracts are or contain leases, not reassess the lease classification for any expired or existing leases, and not reassess initial direct costs for any existing leases; • apply accounting similar to Topic 840 operating leases accounting to leases that meet the definition of short-term leases; and • not evaluate land easements that exist or expired before January 1, 2019 and that were not previously accounted for as leases under Topic 840. Currently, most of our leases are classified as operating leases under which we are the lessee and primarily relate to railcars, other equipment and office space. In addition, our leases that are classified as finance leases (previously classified as capital leases) and other leases under which we are the lessor are not material. Most of our leases do not include options to extend or terminate the lease prior to the end of the term. As of March 31, 2019, we did not have any material operating leases with lease terms greater than one year that have not yet commenced. 2. Adoption of ASC 842 (continued) Three Months Ended March 31, 2019 (Dollars In Thousands) Components of lease expense: Operating lease cost $ 1,848 Short-term lease cost 705 Other cost (1) 18 Total lease cost $ 2,571 Supplemental cash flow information related to leases: Operating cash flows from operating leases $ 1,799 Operating cash flows from finance leases 4 Financing cash flows from finance leases 36 Cash paid for amounts included in the measurement of lease liabilities $ 1,839 Right-of-use assets obtained in exchange for new operating lease liabilities $ 938 Other lease-related information: Weighted-average remaining lease term - operating leases (in years) 4.3 Weighted-average remaining lease term - finance leases (in years) 4.5 Weighted-average discount rate - operating leases 8.96 % Weighted-average discount rate - finance leases 8.94 % (1) Includes variable and finance lease costs. Maturities of operating lease liabilities are as follows: Operating Leases (In thousands) For the remainder of 2019 $ 5,404 2020 3,997 2021 2,746 2022 2,099 2023 1,819 Thereafter 2,565 Total lease payments 18,630 Less imputed interest (3,242 ) Present value of lease liabilities $ 15,388 Under Topic 840, expenses associated with our operating lease agreements, including month-to-month leases, for the first quarter of 2018 was approximately $2.2 million. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 3. Loss Per Common Share Three Months Ended March 31, 2019 2018 (Dollars In Thousands, Except Per Share Amounts) Numerator: Net loss $ (11,540 ) $ (5,591 ) Adjustments for basic net loss per common share: Dividend requirements on Series E Redeemable Preferred (7,256 ) (6,338 ) Dividend requirements on Series B Preferred (60 ) (60 ) Dividend requirements on Series D Preferred (15 ) (15 ) Accretion of Series E Redeemable Preferred (496 ) (1,599 ) Numerator for basic and dilutive net loss per common share - net loss attributable to common stockholders $ (19,367 ) $ (13,603 ) Denominator: Denominator for basic and dilutive net loss per common share – adjusted weighted-average shares (1) 27,959,024 27,518,782 Basic and dilutive net loss per common share: $ (0.69 ) $ (0.49 ) (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 loss per common share as their effect would have been antidilutive: Three Months Ended March 31, 2019 2018 Restricted stock and stock units 930,386 1,195,315 Convertible preferred stocks 916,666 916,666 Series E Redeemable Preferred - embedded derivative 303,646 303,646 Stock options 124,000 196,121 2,274,698 2,611,748 |
Current and Noncurrent Accrued
Current and Noncurrent Accrued and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Current and Noncurrent Accrued and Other Liabilities | 4. Current and Noncurrent Accrued and Other Liabilities March 31, December 31, 2019 2018 (In Thousands) Accrued interest $ 16,164 $ 6,505 Current portion of operating lease liabilities 5,717 — Deferred revenue 4,859 5,216 Accrued payroll and benefits 3,866 7,259 Customer deposits 3,219 1,783 Accrued death and other executive benefits 2,581 2,777 Series E Redeemable Preferred - embedded derivative 1,843 1,642 Accrued health and worker compensation insurance claims 994 1,107 Accrued litigation settlement (see Note 6) — 18,450 Other 6,801 6,251 46,044 50,990 Less noncurrent portion 8,373 8,861 Current portion of accrued and other liabilities $ 37,671 $ 42,129 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 5. Long-Term Debt Our long-term debt consists of the following: March 31, December 31, 2019 2018 (In Thousands) Working Capital Revolver Loan, with a current interest rate of 6.0% (A) $ 10,000 $ 10,000 Senior Secured Notes due 2023 (B) 400,000 400,000 Secured Promissory Note due 2019, with a current interest rate of 5.73% (C) 6,906 7,165 Secured Promissory Note due 2021, with a current interest rate of 5.25% (D) 7,269 8,090 Secured Promissory Note due 2023, with a current interest rate of 6.74% (E) 14,190 14,685 Other (F) 981 221 Unamortized discount and debt issuance costs (14,158 ) (14,962 ) 425,188 425,199 Less current portion of long-term debt, net 12,275 12,518 Long-term debt due after one year, net $ 412,913 $ 412,681 (A) As amended in February 2019, o ur revolving credit facility (the “Working Capital Revolver Loan”) provides for advances up to $75 million, 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 March 31, 2019, our available borrowings under our Working Capital Revolver Loan were approximately $40.1 million , based on our eligible collateral, less outstanding letters of credit. The maturity date of the Working Capital Revolver Loan is February 26, 2024 . 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 to 1.00. The Financial Covenant, if triggered, is tested monthl y. 5. 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 “Senior Secured Notes”). The Senior Secured Notes were issued at a price equal to 99.509% of their face value. The Senior Secured Notes mature on May 1, 2023 . Interest is to be paid semiannually in arrears on May 1 st st (C) El Dorado Chemical Company (“EDC”), one of our subsidiaries , is party to a secured promissory note due in June 2019. Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.7 million . (D) EDC is party to a secured promissory note due in March 2021 . Principal and interest are payable in monthly installments. (E) El Dorado Ammonia L.L.C. (“EDA”), one of our subsidiaries, is party to a secured promissory note due in May 2023 . Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.1 million. (F) Includes $0.8 million relating to a secured loan agreement EDC entered during March 2019. Under the terms of the agreement, EDC has up to $7.5 million of available borrowings (the “Interim Loan”) during the construction of certain equipment (the “Interim Loan Period), subject to certain conditions. During the Interim Loan Period, interest only is payable in monthly installments. The Interim Loan will be replaced by a term loan upon completion of the construction, which is expected to be during 2019 . Principal and interest will be payable in 60 equal monthly installments under the term loan. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Natural Gas Purchase Commitments – At March 31, 2019, our natural gas contracts, which qualify as normal purchases under GAAP and thus are not mark-to-market, included minimal volume purchase commitments with fixed prices through April 2019 . 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 connection with certain acquisitions, we could acquire, or be required to provide indemnification against, environmental liabilities that could expose us to material losses. In certain instances, citizen groups also have the ability to bring legal proceedings against us if we are not in compliance with environmental laws, or to challenge our ability to receive environmental permits that we need to operate. 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. We did not operate the natural gas wells where we previously owned a working interest and compliance with Environmental and Health Laws was controlled by others. We were responsible for our working interest proportionate share of the costs involved. As of March 31, 2019, our $183,000 relating 6. Commitments and Contingencies (continued) 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 October 2017, 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 contains more restrictive discharge limits than the previous 2004 permit. In August 2017, ADEQ issued a final NPDES permit with new dissolved mineral limits. EDC filed an appeal in September 2017 and a Permit Appeal Resolution (“PAR”) was signed in July 2018. EDC is in compliance with the revised permit limits agreed upon in the PAR. In November 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 requires 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 cost of any additional remediation that may be required would be determined based on the results of the investigation and risk assessment, of which cost (or range of costs, if any,) cannot currently be reasonably estimated. Therefore, no liability has 2. Other Environmental Matters In 20 02, certain of o 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 p a e cos Our subsidiary and Chevron have retained an environmental consultant to prepare and perform a corrective action study work plan as to the appropriate method to remediate the Hallowell Facility. The proposed strategy includes long-term surface and groundwater monitoring to track the natural decline in contamination. The KDHE is currently evaluating the corrective action strategy, and, thus, it is unknown what additional work the KDHE may require, if any, at this time. We accrued our allocable portion of costs primarily for the additional testing, monitoring and risk assessments that could be reasonably estimated, which 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 . 6. Commitments and Contingencies (continued) 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. 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 this matter. In August 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 of March 31, 2019. While these settlements resolve the claims of a number of the claimants in this matter for us, we continue to be p of March 31, 2019, In 2015, a case styled Dennis Wilson vs. LSB Industries, Inc In October 2018, LSB entered into a preliminary, binding term sheet to settle Dennis Wilson vs. LSB Industries, Inc As of March 31, 2019 reserve has been established in connection with this matter. 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 at our El Dorado Facility. Global is 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 intend to pursue recovery of any damage or loss caused by Global’s work performed at our El Dorado Facility. In March 2016, EDC and we were served a summons in a case styled Global Industrial, Inc. d/b/a Global Turnaround vs. Leidos Constructors, LLC et al., 6. Commitments and Contingencies (continued) Except for the invoices totaling approximately $3.5 million that were not approved by Leidos for payment that are included in our accounts payable, no liability has been established in connection with the claims asserted by Global. On September 25, 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 to the Court during the fall of 2018. The Court took the matter under advisement, will consider the evidence and render judgment. LSB intends to vigorously prosecute its claims against Leidos in Part (2) of the matter. Trial is scheduled for Part (2) of the matter in February of 2020. 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7 . Income Taxes In December 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Act”), making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate of 21%, additional limitations on executive compensation, and limitations on the deductibility of interest. The FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 For the first nine months of 2018, we recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance in SAB 118 because we had not yet completed our enactment-date accounting for these effects. In 2018, we recorded tax expense related to these effects including the decrease in the federal corporate tax rate, additional limitations on executive compensation, and limitations on the deductibility of interest. During the fourth quarter of 2018, we completed the accounting for tax reform and there was no adjustment to provisional amounts recorded. Provision (benefit) for income taxes is as follows: Three Months Ended March 31, 2019 2018 (In Thousands) Current: Federal $ — $ — State $ (45 ) $ (12 ) Total Current $ (45 ) $ (12 ) Deferred: Federal $ 323 $ (785 ) State 122 (125 ) Total Deferred $ 445 $ (910 ) Provision (benefit) for income taxes $ 400 $ (922 ) For the three months ended March 31, 2019 and 2018, the current provision for state income taxes shown above includes regular state income tax and provisions for uncertain state income tax positions, and other similar adjustments. Our estimated annual effective rate for 2019 includes the impact of permanent tax differences, limits on deductible compensation, valuation allowances, and other permanent items. 7. Income Taxes (continued) 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. In the second quarter of 2018, we established a valuation allowance on a portion of our federal deferred tax assets. 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 the recent 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 2019 to be approximately $8.3 million. We have also determined it was more-likely-than-not that a portion of the state NOL carryforwards would not be able to be utilized before expiration and we estimate the valuation allowance associated with these state deferred tax assets to be recorded during 2019 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 and additional guidance for various provisions of the Act, 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 provision for the three months ended March 31, 2019 was $0.4 million (4% provision on pre-tax loss) and the tax benefit for the three months ended March 31, 2018 was $0.9 million (14% benefit on pre-tax loss). For the three months of 2019, 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 2015-2018 years remain open for all purposes of examination by the U.S. Internal Revenue Service and other major tax jurisdictions. |
Redeemable Preferred Stocks
Redeemable Preferred Stocks | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Redeemable Preferred Stocks | 8. Redeemable Preferred Stocks Series E and Series F Redeemable Preferred As of March 31, 2019, the Series E Redeemable Preferred has a 14% 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. 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 below under Embedded Derivative. As of March 31, 2019, the Series F Redeemable Preferred has voting rights (the “Series F 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. Changes in our Series E and Series F Redeemable Preferred are as follows: Series Shares Amount (Dollars In Thousands) Balance at December 31, 2018 139,768 $ 202,169 Accretion relating to liquidation preference on preferred stock — 265 Accretion for discount and issuance costs on preferred stock — 231 Accumulated dividends — 7,256 Balance at March 31, 2019 139,768 $ 209,921 8. Redeemable Preferred Stock s (continued) Embedded Derivative Certain embedded features (“embedded derivative”) relating to the redemption of the Series E Redeemable Preferred, which includes certain contingent redemption features and the participation rights value have been bifurcated from the Series E Redeemable Preferred and recorded as a liabilit y. As March 31, 2019 and December 31, 2018, we estimate that the contingent redemption features have fair value since we estimate that it is probable that a portion of the shares of this preferred stock would be redeemed prior to October 25, 2023. For certain other embedded features, e estimated no fair value based on our assessment that there is a remote probability that these features will be exercised. T he 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 redemptions deemed probable during the same period and applying the effective dividend rate of the Series E Redeemable Preferred. In addition, at March 31, 2019 and December 31, 2018, the fair value of the embedded derivative incl 303,646 5.52 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. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the embedded derivative. At March 31, 2019 and December 31, 2 018, the fair value of the embedded derivative was $1.8 million and $1. loss of approximately $0.2 million and an unrealized gain of $0.8 million, respectively, due to the change in fair value of the embedded derivative, which unrealized loss/gain are |
Net Sales
Net Sales | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (Dollars In Thousands) Net sales: Agricultural products $ 46,820 $ 52,269 Industrial acids and other chemical products 37,850 38,137 Mining products 9,482 10,044 Total net sales $ 94,152 $ 100,450 Transaction Price Constraints and Variable Consideration For most of our contracts within the scope of Accounting Standards Codification, Revenue from Contracts with Customers (Topic 606) (“ 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. 9. Net Sales (continued) 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. 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, the average remaining expected duration was approximately 14 months at March 31, 2019. Contract Assets, Liabilities and Other Information Our contract assets consist of receivables from contracts with customers. Our accounts receivable primarily relate to these contract assets and are presented in our consolidated balance sheets. Customer payments are generally due thirty to sixty days after the invoice date. Our 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 $8.1 million and $7.0 million of contract liabilities as of March 31, 2019 and December 31, 2018, respectively. For the three months ended March 31, 2019 and 2018, revenues of $1.4 million and $1.9 million, respectively, Revenue recognized in the current period from performance obligations related to prior periods (for example, due to changes in transaction price) was not material. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions During the first quarter of 2019, we entered into a secured loan agreement with an affiliate of LSB Funding L.L.C. (“LSB Funding”) as discussed in footnote (F) of Note 5. Also, an affiliate of LSB Funding holds $50 million of our Senior Secured Notes discussed in footnote (B) of Note 6. In addition, LSB Funding holds all outstanding shares of the Series E and Series F Redeemable Preferred discussed in Note 8. The Golsen Holders hold all outstanding shares of the Series B Preferred and Series D Preferred, which accumulated dividends on such shares totaled approxim ately $1.1 million at March 31, 2019. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information The following provides additional information relating to cash flow activities: Three Months Ended March 31, 2019 2018 (In Thousands) Cash refunds for: Income taxes, net $ (48 ) $ (851 ) Noncash continuing investing and financing activities: Dividends accrued on Series E Redeemable Preferred $ 7,256 $ 6,338 Supplies and accounts payable associated with additions of property, plant and equipment $ 11,901 $ 13,859 Accretion of Series E Redeemable Preferred $ 496 $ 1,599 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 condensed 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 ammonium nitrate (“HDAN”), urea ammonium nitrate (“UAN”), and ammonium nitrate (“AN”) solution 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 (the “Baytown Facility”). 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. In 2016, LSB completed the sale of all of the stock of the Climate Control Group, Inc. (an indirect subsidiary that conducted LSB’s Climate Control Business) pursuant to the terms of a stock purchase agreement. During the first quarter of 2018, we received the remaining proceeds held in a related indemnity escrow account of $2.7 million. In our opinion, the unaudited condensed consolidated financial statements of the Company as of March 31, 2019 and for the three-month periods ended March 31, 2019 and 2018 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 2018 Form 10-K. |
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 record interest related to unrecognized tax positions in interest expense and penalties in operating other expense. 1. Summary of Significant Accounting Policies (continued) Income tax benefits associated with amounts that are deductible for income tax purposes are recorded through the statement of operations. These benefits are principally generated from exercises of non-qualified stock options and restricted stock. 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASU 2016-02 and related ASUs – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes the lease requirements in Topic 840, Leases . In addition, the FASB issued various other ASUs further amending lease accounting guidance (together “ASC 842”). On January 1, 2018, we adopted ASC 842 as discussed in Note 2. |
Adoption of ASC 842 (Tables)
Adoption of ASC 842 (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Components of Lease Expense, Supplemental Cash Flow Information Related to Leases and Other Lease-related Information | Three Months Ended March 31, 2019 (Dollars In Thousands) Components of lease expense: Operating lease cost $ 1,848 Short-term lease cost 705 Other cost (1) 18 Total lease cost $ 2,571 Supplemental cash flow information related to leases: Operating cash flows from operating leases $ 1,799 Operating cash flows from finance leases 4 Financing cash flows from finance leases 36 Cash paid for amounts included in the measurement of lease liabilities $ 1,839 Right-of-use assets obtained in exchange for new operating lease liabilities $ 938 Other lease-related information: Weighted-average remaining lease term - operating leases (in years) 4.3 Weighted-average remaining lease term - finance leases (in years) 4.5 Weighted-average discount rate - operating leases 8.96 % Weighted-average discount rate - finance leases 8.94 % (1) Includes variable and finance lease costs. |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities are as follows: Operating Leases (In thousands) For the remainder of 2019 $ 5,404 2020 3,997 2021 2,746 2022 2,099 2023 1,819 Thereafter 2,565 Total lease payments 18,630 Less imputed interest (3,242 ) Present value of lease liabilities $ 15,388 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Common Share | Three Months Ended March 31, 2019 2018 (Dollars In Thousands, Except Per Share Amounts) Numerator: Net loss $ (11,540 ) $ (5,591 ) Adjustments for basic net loss per common share: Dividend requirements on Series E Redeemable Preferred (7,256 ) (6,338 ) Dividend requirements on Series B Preferred (60 ) (60 ) Dividend requirements on Series D Preferred (15 ) (15 ) Accretion of Series E Redeemable Preferred (496 ) (1,599 ) Numerator for basic and dilutive net loss per common share - net loss attributable to common stockholders $ (19,367 ) $ (13,603 ) Denominator: Denominator for basic and dilutive net loss per common share – adjusted weighted-average shares (1) 27,959,024 27,518,782 Basic and dilutive net loss per common share: $ (0.69 ) $ (0.49 ) (1) Excludes the weighted-average shares of unvested restricted stock that are contingently issuable. |
Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Common Share | The following weighted-average shares of securities were not included in the computation of diluted net loss per common share as their effect would have been antidilutive: Three Months Ended March 31, 2019 2018 Restricted stock and stock units 930,386 1,195,315 Convertible preferred stocks 916,666 916,666 Series E Redeemable Preferred - embedded derivative 303,646 303,646 Stock options 124,000 196,121 2,274,698 2,611,748 |
Current and Noncurrent Accrue_2
Current and Noncurrent Accrued and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Current and Noncurrent Accrued and Other Liabilities | March 31, December 31, 2019 2018 (In Thousands) Accrued interest $ 16,164 $ 6,505 Current portion of operating lease liabilities 5,717 — Deferred revenue 4,859 5,216 Accrued payroll and benefits 3,866 7,259 Customer deposits 3,219 1,783 Accrued death and other executive benefits 2,581 2,777 Series E Redeemable Preferred - embedded derivative 1,843 1,642 Accrued health and worker compensation insurance claims 994 1,107 Accrued litigation settlement (see Note 6) — 18,450 Other 6,801 6,251 46,044 50,990 Less noncurrent portion 8,373 8,861 Current portion of accrued and other liabilities $ 37,671 $ 42,129 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Revolving Credit Facility and Long-Term Debt | Our long-term debt consists of the following: March 31, December 31, 2019 2018 (In Thousands) Working Capital Revolver Loan, with a current interest rate of 6.0% (A) $ 10,000 $ 10,000 Senior Secured Notes due 2023 (B) 400,000 400,000 Secured Promissory Note due 2019, with a current interest rate of 5.73% (C) 6,906 7,165 Secured Promissory Note due 2021, with a current interest rate of 5.25% (D) 7,269 8,090 Secured Promissory Note due 2023, with a current interest rate of 6.74% (E) 14,190 14,685 Other (F) 981 221 Unamortized discount and debt issuance costs (14,158 ) (14,962 ) 425,188 425,199 Less current portion of long-term debt, net 12,275 12,518 Long-term debt due after one year, net $ 412,913 $ 412,681 (A) As amended in February 2019, o ur revolving credit facility (the “Working Capital Revolver Loan”) provides for advances up to $75 million, 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 March 31, 2019, our available borrowings under our Working Capital Revolver Loan were approximately $40.1 million , based on our eligible collateral, less outstanding letters of credit. The maturity date of the Working Capital Revolver Loan is February 26, 2024 . 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 to 1.00. The Financial Covenant, if triggered, is tested monthl y. 5. 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 “Senior Secured Notes”). The Senior Secured Notes were issued at a price equal to 99.509% of their face value. The Senior Secured Notes mature on May 1, 2023 . Interest is to be paid semiannually in arrears on May 1 st st (C) El Dorado Chemical Company (“EDC”), one of our subsidiaries , is party to a secured promissory note due in June 2019. Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.7 million . (D) EDC is party to a secured promissory note due in March 2021 . Principal and interest are payable in monthly installments. (E) El Dorado Ammonia L.L.C. (“EDA”), one of our subsidiaries, is party to a secured promissory note due in May 2023 . Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.1 million. (F) Includes $0.8 million relating to a secured loan agreement EDC entered during March 2019. Under the terms of the agreement, EDC has up to $7.5 million of available borrowings (the “Interim Loan”) during the construction of certain equipment (the “Interim Loan Period), subject to certain conditions. During the Interim Loan Period, interest only is payable in monthly installments. The Interim Loan will be replaced by a term loan upon completion of the construction, which is expected to be during 2019 . Principal and interest will be payable in 60 equal monthly installments under the term loan. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | Provision (benefit) for income taxes is as follows: Three Months Ended March 31, 2019 2018 (In Thousands) Current: Federal $ — $ — State $ (45 ) $ (12 ) Total Current $ (45 ) $ (12 ) Deferred: Federal $ 323 $ (785 ) State 122 (125 ) Total Deferred $ 445 $ (910 ) Provision (benefit) for income taxes $ 400 $ (922 ) |
Redeemable Preferred Stocks (Ta
Redeemable Preferred Stocks (Table) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 139,768 $ 202,169 Accretion relating to liquidation preference on preferred stock — 265 Accretion for discount and issuance costs on preferred stock — 231 Accumulated dividends — 7,256 Balance at March 31, 2019 139,768 $ 209,921 |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (Dollars In Thousands) Net sales: Agricultural products $ 46,820 $ 52,269 Industrial acids and other chemical products 37,850 38,137 Mining products 9,482 10,044 Total net sales $ 94,152 $ 100,450 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Additional Information Relating to Cash Flow Activities | The following provides additional information relating to cash flow activities: Three Months Ended March 31, 2019 2018 (In Thousands) Cash refunds for: Income taxes, net $ (48 ) $ (851 ) Noncash continuing investing and financing activities: Dividends accrued on Series E Redeemable Preferred $ 7,256 $ 6,338 Supplies and accounts payable associated with additions of property, plant and equipment $ 11,901 $ 13,859 Accretion of Series E Redeemable Preferred $ 496 $ 1,599 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019Facility | Mar. 31, 2018USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of facilities for manufacture and distribution of products | Facility | 4 | |
Proceeds from the sale of discontinued operations being held in a related indemnity escrow account | $ | $ 2,730 | |
Tax benefit recognized | Greater than 50% |
Adoption of ASC 842 - Additiona
Adoption of ASC 842 - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||
Operating lease assets | $ 15,317 | $ 15,900 |
Lease obligations | $ 15,388 | $ 15,900 |
Operating lease term not yet commenced | 1 year | |
Expenses associated with operating lease agreements | $ 2,200 |
Adoption of ASC 842 - Summary o
Adoption of ASC 842 - Summary of Components of Lease Expense, Supplemental Cash Flow Information Related to Leases and Other Lease-related Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Components of lease expense: | |
Operating lease cost | $ 1,848 |
Short-term lease cost | 705 |
Other cost | 18 |
Total lease cost | 2,571 |
Supplemental cash flow information related to leases: | |
Operating cash flows from operating leases | 1,799 |
Operating cash flows from finance leases | 4 |
Financing cash flows from finance leases | 36 |
Cash paid for amounts included in the measurement of lease liabilities | 1,839 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 938 |
Other lease-related information: | |
Weighted-average remaining lease term - operating leases (in years) | 4 years 3 months 18 days |
Weighted-average remaining lease term - finance leases (in years) | 4 years 6 months |
Weighted-average discount rate - operating leases | 8.96% |
Weighted-average discount rate - finance leases | 8.94% |
Adoption of ASC 842 - Maturitie
Adoption of ASC 842 - Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
For the remainder of 2019 | $ 5,404 | |
2020 | 3,997 | |
2021 | 2,746 | |
2022 | 2,099 | |
2023 | 1,819 | |
Thereafter | 2,565 | |
Total lease payments | 18,630 | |
Less imputed interest | (3,242) | |
Lease obligations | $ 15,388 | $ 15,900 |
Loss Per Common Share - Computa
Loss Per Common Share - Computation of Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss | $ (11,540) | $ (5,591) |
Adjustments for basic net loss per common share: | ||
Dividend accrued on redeemable preferred stock | (7,256) | |
Dividend requirements | (75) | (75) |
Net loss attributable to common stockholders | $ (19,367) | $ (13,603) |
Denominator: | ||
Denominator for basic and dilutive net loss per common share - adjusted weighted-average shares | 27,959,024 | 27,518,782 |
Basic and dilutive net loss per common share: | $ (0.69) | $ (0.49) |
Series E Redeemable Preferred Stock [Member] | ||
Adjustments for basic net loss per common share: | ||
Dividend accrued on redeemable preferred stock | $ (7,256) | $ (6,338) |
Accretion of redeemable preferred stock | (496) | (1,599) |
Series B Preferred Stock [Member] | ||
Adjustments for basic net loss per common share: | ||
Dividend requirements | (60) | (60) |
Series D Preferred Stock [Member] | ||
Adjustments for basic net loss per common share: | ||
Dividend requirements | $ (15) | $ (15) |
Loss Per Common Share - Antidil
Loss Per Common Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Common Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,274,698 | 2,611,748 |
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 |
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 |
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 | 930,386 | 1,195,315 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 124,000 | 196,121 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued interest | $ 16,164 | $ 6,505 |
Current portion of operating lease liabilities | 5,717 | |
Deferred revenue | 4,859 | 5,216 |
Accrued payroll and benefits | 3,866 | 7,259 |
Customer deposits | 3,219 | 1,783 |
Accrued death and other executive benefits | 2,581 | 2,777 |
Series E Redeemable Preferred - embedded derivative | 1,843 | 1,642 |
Accrued health and worker compensation insurance claims | 994 | 1,107 |
Accrued litigation settlement (see Note 6) | 18,450 | |
Other | 6,801 | 6,251 |
Total current and noncurrent accrued liabilities | 46,044 | 50,990 |
Less noncurrent portion | 8,373 | 8,861 |
Current portion of accrued and other liabilities | $ 37,671 | $ 42,129 |
Long-Term Debt - Schedule of Re
Long-Term Debt - Schedule of Revolving Credit Facility and Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ (14,158) | $ (14,962) |
Long-term debt | 425,188 | 425,199 |
Less current portion of long-term debt, net | 12,275 | 12,518 |
Long-term debt due after one year, net | 412,913 | 412,681 |
6.0% Working Capital Revolver Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 10,000 | 10,000 |
Senior Secured Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 400,000 | 400,000 |
5.73% Secured Promissory Note Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 6,906 | 7,165 |
5.25% Secured Promissory Note Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 7,269 | 8,090 |
6.74% Secured Promissory Note Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 14,190 | 14,685 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | $ 981 | $ 221 |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Revolving Credit Facility and Long-Term Debt (Parenthetical) (Detail) | Mar. 31, 2019 | Dec. 31, 2017 |
6.0% Working Capital Revolver Loan [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, interest rate | 6.00% | 6.00% |
5.73% Secured Promissory Note Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, effective Interest Rate | 5.73% | 5.73% |
5.25% Secured Promissory Note Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, effective Interest Rate | 5.25% | 5.25% |
6.74% Secured Promissory Note Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, effective Interest Rate | 6.74% | 6.74% |
Long-Term Debt - Working Capita
Long-Term Debt - Working Capital Revolver Loan and Senior Secured Notes - Additional Information (Detail) - USD ($) | Apr. 25, 2018 | Mar. 31, 2019 | Feb. 28, 2019 |
Working Capital Revolver Loan [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount of revolving credit facility | $ 75,000,000 | ||
Amount available for borrowing | $ 40,100,000 | ||
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 | 1.00% | ||
9.625% Senior Secured Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | May 1, 2023 | ||
Debt issued - principal amount | $ 400,000,000 | ||
Debt instrument, interest rate | 9.625% | ||
Debt instrument, maturity term | 2023 | ||
Debt instrument issued price percentage | 99.509% | ||
Debt instrument, frequency of interest payment | Interest is to be paid semiannually in arrears on May 1st and November 1st | ||
5.73% Secured Promissory Note Due 2019 [Member] | EL Dorado Chemical Company [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Jun. 30, 2019 | ||
Debt instrument, frequency of interest payment | monthly | ||
Final balloon payment | $ 6,700,000 | ||
5.25% Secured Promissory Note Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Mar. 31, 2021 | ||
Secured promissory note, payment term | Principal and interest are payable in monthly installments. | ||
6.74% Secured Promissory Note Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, frequency of interest payment | monthly | ||
Final balloon payment | $ 6,100,000 | ||
Maturity month and year | 2023-05 | ||
Secured Loan Agreement [Member] | EL Dorado Chemical Company [Member] | |||
Debt Instrument [Line Items] | |||
Debt issued - principal amount | $ 800,000 | ||
Debt instrument, frequency of interest payment | Principal and interest will be payable in 60 equal monthly installments under the term loan. | ||
Secured Loan Agreement [Member] | EL Dorado Chemical Company [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Amount available for borrowing | $ 7,500,000 | ||
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) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2019USD ($)Settlement | Mar. 31, 2019USD ($)Settlement | Dec. 31, 2018USD ($) | Mar. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Accrued liabilities for environmental matters | $ 183,000 | $ 183,000 | ||
Percentage of payment of investigation costs agreed by Hallowell Facility | 50.00% | |||
Insurance coverage of general liability and auto liability risks | $ 100,000,000 | $ 100,000,000 | ||
Product liability deductible per claim | $ 250,000 | |||
Confidential settlement agreement with family groups | Settlement | 3 | 3 | ||
Liability reserve | $ 0 | $ 0 | ||
Litigation liability paid | $ 18,500,000 | |||
Estimated litigation liability | $ 18,450,000 | |||
Global Industrial Inc [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Estimated litigation liability | $ 0 | |||
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 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
U.S. federal income tax rate | 21.00% | ||
Tax reform adjustments to provision for income taxes | $ 0 | ||
Provision (benefit) for income taxes | $ 400,000 | $ (922,000) | |
Percentage of provision (benefit) on pre-tax loss | 4.00% | (14.00%) | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Portion of state NOL carryforwards, not able to be utilized before expiration | $ 3,800,000 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets valuation allowance | $ 8,300,000 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | (45) | (12) |
Total Current | (45) | (12) |
Deferred: | ||
Federal | 323 | (785) |
State | 122 | (125) |
Total Deferred | 445 | (910) |
Provision (benefit) for income taxes | $ 400 | $ (922) |
Redeemable Preferred Stocks - A
Redeemable Preferred Stocks - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Class Of Stock [Line Items] | |||
Fair value of the embedded derivative | $ 1,843 | $ 1,642 | |
Non-Operating Other Expense (Income) [Member] | |||
Class Of Stock [Line Items] | |||
Unrealized loss on change in fair value of the embedded derivative | 200 | ||
Unrealized gain on change in fair value of the embedded derivative | $ 800 | ||
Other Noncurrent Accrued and Other Liabilities [Member] | |||
Class Of Stock [Line Items] | |||
Fair value of the embedded derivative | $ 1,800 | $ 1,600 | |
Embedded Derivative [Member] | |||
Class Of Stock [Line Items] | |||
Participating right in dividends and liquidating distributions expressed in number of common shares | 303,646 | 303,646 | |
Embedded Derivative [Member] | Common Stock Shares [Member] | |||
Class Of Stock [Line Items] | |||
Common stock per share | $ 6.24 | $ 5.52 | |
Series E Redeemable Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock cumulative dividend rate | 14.00% | ||
Participating right in dividends and liquidating distributions expressed in number of common shares | 303,646 | ||
Series F Redeemable Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Common stock voting rights shares | 456,225 |
Redeemable Preferred Stocks - S
Redeemable Preferred Stocks - Summary of Redeemable Preferred Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders Equity [Line Items] | ||
Accumulated dividends | $ 7,256 | |
Series E Redeemable Preferred Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Beginning balance | $ 202,169 | |
Beginning balance, shares | 139,768 | |
Accretion relating to liquidation preference on preferred stock | $ 265 | |
Accretion for discount and issuance costs on preferred stock | 231 | |
Accumulated dividends | 7,256 | $ 6,338 |
Ending balance | $ 209,921 | |
Ending balance, shares | 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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net sales: | ||
Net sales | $ 94,152 | $ 100,450 |
Chemical [Member] | ||
Net sales: | ||
Net sales | 94,152 | 100,450 |
Chemical [Member] | Agricultural Products [Member] | ||
Net sales: | ||
Net sales | 46,820 | 52,269 |
Chemical [Member] | Industrial Acids and Other Chemical Products [Member] | ||
Net sales: | ||
Net sales | 37,850 | 38,137 |
Chemical [Member] | Mining Products [Member] | ||
Net sales: | ||
Net sales | $ 9,482 | $ 10,044 |
Net Sales - Additional Informat
Net Sales - Additional Information (Detail1) | Mar. 31, 2019 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Variable consideration transaction price constraint, period. | 1 month |
Net Sales - Additional Inform_2
Net Sales - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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, the average remaining expected duration was approximately 14 months | |
Average revenue remaining performance obligation expected timing of satisfaction period | 14 months | |
Contract liabilities | $ 8.1 | $ 7 |
Contract with customer, liability partially offset revenue recognized | $ 1.4 | $ 1.9 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Related Party Transaction [Line Items] | |
Preferred stock, accumulated dividends | $ 1.1 |
Affiliate of SBC [Member] | |
Related Party Transaction [Line Items] | |
Senior secured notes outstanding | $ 50 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Additional Information Relating to Cash Flow Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash refunds for: | ||
Income taxes, net | $ (48) | $ (851) |
Noncash continuing investing and financing activities: | ||
Supplies and accounts payable associated with additions of property, plant and equipment | 11,901 | 13,859 |
Series E Redeemable Preferred Stock [Member] | ||
Noncash continuing investing and financing activities: | ||
Dividends accrued on redeemable preferred | 7,256 | 6,338 |
Accretion of redeemable preferred | $ 496 | $ 1,599 |