LSB Industries, Inc. (NYSE:LXU) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET
Company Participants
Fred Buonocore – Vice President-Investor Relations
Mark Behrman – Chief Executive Officer
Cheryl Maguire – Chief Financial Officer
Conference Call Participants
Adam Samuelson – Goldman Sachs
Andrew Wong – RBC Capital Markets
Rob McGuire – Granite Research
Dan Rizzo – Jefferies
Charles Neivert – Piper Sandler
Rob McGuire – Granite Research
Operator
Greetings and welcome to the LSB Industries First 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] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your Fred Buonocore, Vice President of Investor Relations. Thank you, sir. You may 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 will include forward-looking statements, and because the 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. As this 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.
At this time, I’d like to go ahead and turn the call over to Mark.
Mark Behrman
Thank you, Fred. We’re happy to have the opportunity to speak with you today about our 2023 first quarter results and our outlook for the second quarter and full year of 2023. I’d like to start by congratulating our team on their safety performance. As of March 31st, our trailing 12 month total recordable injury rate was below one. Out of all of our corporate goals, our goal zero that zero recordable incidents and injuries is the most important. We’re very pleased with the improvement we’ve had and I would expect it to continue to drive lower.
Looking at our 2023 first quarter summary on Page 3 of the presentation, as anticipated, our financial results were down compared to the 2022 first quarter due to a decline in market prices for nitrogen products relative to the inordinately high pricing levels we benefited from last year. While we can’t control pricing trends, we can’t control the way we operate our facilities and market our products, and we are pleased that through these efforts, we generated a solid increase in both production and sales volume compared to last year’s first quarter. These investments in our facilities and the ongoing efforts to improve the reliability of our plants are paying dividends.