LSB Industries, Inc. (NYSE:LXU) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET
Company Participants
Fred Buonocore - VP, IR
Mark Behrman - CEO
Cheryl Maguire - CFO
Conference Call Participants
Chris Perrella - UBS
Harrison Reynolds - RBC Capital Markets
Laurence Alexander - Jefferies
Charles Neivert - Piper Sandler
Rob McGuire - Granite Research
Anthony Mercandetti - Deutsche Bank
Operator
Greetings. Welcome to the LSB Industries' Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded.
At this time, I'll turn the conference over to Fred Buonocore, Vice President of Investor Relations. Mr. Buonocore, you may now begin.
Fred Buonocore
Good morning everyone. Joining me today are Mark Behrman, our Chief Executive Officer; and Cheryl Maguire, our Chief Financial Officer. Please note that today's call includes forward-looking statements. These statements are based on the company's current intent, expectations and projections. They are not guarantees of future performance and a variety of factors could cause the actual results to differ materially.
On the call will include references to non-GAAP results, please see the press release in the Investors section of our website, lsbindustries.com for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results.
As a reminder, we have a stockholder rights plan to protect certain tax attributes. Please see the Investors section of our website at lsbindustries.com for further important details.
At this time, I'd like to go ahead and turn the call over to Mark.
Mark Behrman
Thank you, Fred. As noted on Page 4 of our presentation, our trailing 12-month total recordable injury rate at the end of the third quarter was 0.34. That is a reflection of the focused efforts of our entire team, and I'd like to thank them for continuing to embrace this important core value of our company.
Turning to our financial results, we were disappointed with the results of the quarter versus our expectations heading into the quarter. our adjusted EBITDA was lower compared to the third quarter of 2022. While this is largely due to a decline in market prices for nitrogen products relative to last year, the results were also impacted by lower-than-expected downstream production, primarily in nitric acid. That somewhat limited our ability to upgrade ammonia, impacting our margins for the quarter.