[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
||
For the quarterly period
ended June
30, 2008
|
|||
OR
|
|||
[
]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
||
For
the transition period from
_____________to______________
|
|||
Commission
file
number 1-7677
|
|||
LSB
Industries, Inc.
|
|||
Exact
name of Registrant as specified in its charter
|
|||
Delaware
|
73-1015226
|
||
State
or other jurisdiction of
incorporation
or organization
|
I.R.S.
Employer Identification No.
|
||
16 South Pennsylvania
Avenue, Oklahoma City, Oklahoma 73107
|
|||
Address of
principal executive offices (Zip
Code)
|
|||
(405)
235-4546
|
|||
Registrant's
telephone number, including area code
|
|||
__ None _ ___
|
|||
Former
name, former address and former fiscal year, if changed since last
report.
|
PART
I – Financial Information
|
Page
|
|
Item
1.
|
3
|
|
Item
2.
|
37
|
|
Item
3.
|
57
|
|
Item
4.
|
58
|
|
60
|
||
PART
II – Other Information
|
||
Item
1.
|
62
|
|
Item
1A.
|
64
|
|
Item
2.
|
64
|
|
Item
3.
|
65
|
|
Item
4.
|
65
|
|
Item
5.
|
65
|
|
Item
6.
|
66
|
June
30,
2008
|
December
31,
2007
|
(In
Thousands)
|
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
48,524 |
$
|
58,224 | ||||
Restricted
cash
|
31 | 203 | ||||||
Accounts
receivable, net
|
95,540 | 70,577 | ||||||
Inventories:
|
||||||||
Finished
goods
|
39,558 | 28,177 | ||||||
Work
in process
|
2,947 | 3,569 | ||||||
Raw
materials
|
26,272 | 25,130 | ||||||
Total
inventories
|
68,777 | 56,876 | ||||||
Supplies,
prepaid items and other:
|
||||||||
Deferred
rent expense
|
433 | - | ||||||
Prepaid
insurance
|
1,523 | 3,350 | ||||||
Precious
metals
|
14,093 | 10,935 | ||||||
Supplies
|
4,228 | 3,849 | ||||||
Other
|
2,385 | 1,464 | ||||||
Total
supplies, prepaid items and other
|
22,662 | 19,598 | ||||||
Deferred
income taxes
|
6,190 | 10,030 | ||||||
Total
current assets
|
241,724 | 215,508 | ||||||
Property,
plant and equipment, net
|
89,230 | 79,692 | ||||||
Other
assets:
|
||||||||
Debt
issuance and other debt-related costs, net
|
4,942 | 4,639 | ||||||
Investment
in affiliate
|
3,608 | 3,426 | ||||||
Goodwill
|
1,724 | 1,724 | ||||||
Other,
net
|
2,655 | 2,565 | ||||||
Total
other assets
|
12,929 | 12,354 | ||||||
$
|
343,883 |
$
|
307,554 |
June
30,
2008
|
December
31,
2007
|
(In
Thousands)
|
Liabilities
and Stockholders’ Equity
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
51,508
|
$
|
39,060
|
|||
Short-term
financing and drafts payable
|
131
|
919
|
|||||
Accrued
and other liabilities
|
34,366
|
38,942
|
|||||
Current
portion of long-term debt
|
912
|
1,043
|
|||||
Total
current liabilities
|
86,917
|
79,964
|
|||||
Long-term
debt
|
120,676
|
121,064
|
|||||
Noncurrent
accrued and other liabilities:
|
|||||||
Deferred
income taxes
|
5,675
|
5,330
|
|||||
Other
|
7,547
|
6,913
|
|||||
13,222
|
12,243
|
||||||
Contingencies
(Note 10)
|
|||||||
Stockholders'
equity:
|
|||||||
Series
B 12% cumulative, convertible preferred stock, $100 par value;
20,000 shares issued and outstanding
|
2,000
|
2,000
|
|||||
Series
D 6% cumulative, convertible Class C preferred stock, no par
value; 1,000,000 shares issued
|
1,000
|
1,000
|
|||||
Common
stock, $.10 par value; 75,000,000 shares authorized, 24,834,010
shares issued (24,466,506 at December 31, 2007)
|
2,483
|
2,447
|
|||||
Capital
in excess of par value
|
126,909
|
123,336
|
|||||
Accumulated
other comprehensive loss
|
(322
|
)
|
(411
|
)
|
|||
Retained
earnings (accumulated deficit)
|
12,071
|
(16,437
|
)
|
||||
144,141
|
111,935
|
||||||
Less
treasury stock at cost:
|
|||||||
Common
stock, 3,648,518 shares (3,448,518 at December 31, 2007)
|
21,073
|
17,652
|
|||||
Total
stockholders' equity
|
123,068
|
94,283
|
|||||
$
|
343,883
|
$
|
307,554
|
Six
Months
|
Three
Months
|
2008
|
2007
|
2008
|
2007
|
(In
Thousands, Except Per Share
Amounts)
|
Net
sales
|
$
|
358,507
|
$
|
304,141
|
$
|
198,052
|
$
|
156,756
|
|||||||
Cost
of sales
|
277,009
|
237,432
|
154,311
|
122,099
|
|||||||||||
Gross
profit
|
81,498
|
66,709
|
43,741
|
34,657
|
|||||||||||
Selling,
general and administrative expense
|
40,222
|
36,994
|
21,458
|
18,693
|
|||||||||||
Provisions
for losses on accounts receivable
|
292
|
621
|
202
|
363
|
|||||||||||
Other
expense
|
657
|
518
|
476
|
494
|
|||||||||||
Other
income
|
(8,329
|
)
|
(100
|
)
|
(7,719
|
)
|
(46
|
)
|
|||||||
Operating
income
|
48,656
|
28,676
|
29,324
|
15,153
|
|||||||||||
Interest
expense
|
3,720
|
4,580
|
1,266
|
1,992
|
|||||||||||
Non-operating
other income, net
|
(862
|
)
|
(73
|
)
|
(345
|
)
|
(31
|
)
|
|||||||
Income
from continuing operations before provisions for income taxes and equity
in earnings of affiliate
|
45,798
|
24,169
|
28,403
|
13,192
|
|||||||||||
Provisions
for income taxes
|
17,429
|
532
|
10,709
|
188
|
|||||||||||
Equity
in earnings of affiliate
|
(462
|
)
|
(431
|
)
|
(230
|
)
|
(216
|
)
|
|||||||
Income
from continuing operations
|
28,831
|
24,068
|
17,924
|
13,220
|
|||||||||||
Net
loss from discontinued operations
|
17
|
29
|
17
|
-
|
|||||||||||
Net
income
|
28,814
|
24,039
|
17,907
|
13,220
|
|||||||||||
Dividends,
dividend requirements and stock dividend on preferred
stocks
|
306
|
5,405
|
-
|
217
|
|||||||||||
Net
income applicable to common stock
|
$
|
28,508
|
$
|
18,634
|
$
|
17,907
|
$
|
13,003
|
|||||||
Weighted-average
common shares:
|
|||||||||||||||
Basic
|
21,115
|
18,615
|
21,172
|
19,713
|
|||||||||||
Diluted
|
24,908
|
21,950
|
24,827
|
22,923
|
|||||||||||
Income
per common share:
|
|||||||||||||||
Basic
|
$
|
1.35
|
$
|
1.00
|
$
|
.85
|
$
|
.66
|
|||||||
Diluted
|
$
|
1.21
|
$
|
.87
|
$
|
.75
|
$
|
.58
|
Common Stock Shares |
Non-
Redeemable Preferred Stock |
Common Stock
Par
Value |
Capital
in
Excess of Par Value |
Accumulated
Other Comprehensive Loss
|
Retained
Earnings
(Accumulated
Deficit)
|
Treasury Stock- Common
|
Total |
(In
Thousands)
|
Balance
at December 31, 2007
|
24,467
|
$
|
3,000
|
$
|
2,447
|
$
|
123,336
|
$
|
(411
|
)
|
$
|
(16,437
|
)
|
$
|
(17,652
|
)
|
$
|
94,283
|
||||
Net
income
|
28,814
|
28,814
|
||||||||||||||||||||
Amortization
of cash flow hedge
|
89
|
89
|
||||||||||||||||||||
Total
comprehensive income
|
28,903
|
|||||||||||||||||||||
Dividends
paid on preferred stock
|
(306
|
)
|
(306
|
)
|
||||||||||||||||||
Stock-based
compensation
|
384
|
384
|
||||||||||||||||||||
Exercise
of stock options
|
367
|
36
|
637
|
673
|
||||||||||||||||||
Income
tax benefit from exercise of stock options
|
2,552
|
2,552
|
||||||||||||||||||||
Acquisition
of 200,000 shares of common stock
|
(3,421
|
)
|
(3,421
|
)
|
||||||||||||||||||
Balance
at June 30, 2008
|
24,834
|
$
|
3,000
|
$
|
2,483
|
$
|
126,909
|
$
|
(322
|
)
|
$
|
12,071
|
$
|
(21,073
|
)
|
$
|
123,068
|
2008
|
2007
|
(In
Thousands)
|
Cash
flows from continuing operating activities:
|
|||||||
Net
income
|
$
|
28,814
|
$
|
24,039
|
|||
Adjustments
to reconcile net income to net cash provided by continuing operating
activities:
|
|||||||
Net
loss from discontinued operations
|
17
|
29
|
|||||
Deferred
income taxes
|
4,185
|
-
|
|||||
Gain
on litigation judgment associated with property, plant and
equipment
|
(3,943
|
)
|
-
|
||||
Loss
on sales of property and equipment
|
82
|
431
|
|||||
Depreciation
of property, plant and equipment
|
6,269
|
6,089
|
|||||
Amortization
|
554
|
441
|
|||||
Stock-based
compensation
|
384
|
36
|
|||||
Provisions
for losses on accounts receivable
|
292
|
621
|
|||||
Provision
for (realization of) losses on inventory
|
184
|
(345
|
)
|
||||
Provision
for impairment of long-lived assets
|
192
|
-
|
|||||
Realization
of losses on firm sales commitments
|
-
|
(328
|
)
|
||||
Equity
in earnings of affiliate
|
(462
|
)
|
(431
|
)
|
|||
Distributions
received from affiliate
|
280
|
380
|
|||||
Changes
in fair value of interest rate caps
|
(709
|
)
|
(307
|
)
|
|||
Cash
provided (used) by changes in assets and liabilities:
|
|||||||
Accounts
receivable
|
(25,338
|
)
|
(11,842
|
)
|
|||
Inventories
|
(12,085
|
)
|
(365
|
)
|
|||
Other
supplies and prepaid items
|
(2,631
|
)
|
(2,582
|
)
|
|||
Accounts
payable
|
11,129
|
(5,611
|
)
|
||||
Customer
deposits
|
(1,395
|
)
|
(567
|
)
|
|||
Deferred
rent expense
|
(4,733
|
)
|
(4,004
|
)
|
|||
Other
current and noncurrent liabilities
|
1,938
|
2,382
|
|||||
Net
cash provided by continuing operating activities
|
3,024
|
8,066
|
|||||
Cash
flows from continuing investing activities:
|
|||||||
Capital
expenditures
|
(14,986
|
)
|
(8,131
|
)
|
|||
Proceeds
from litigation judgment associated with property, plant and
equipment
|
5,948
|
-
|
|||||
Payment
of legal costs relating to litigation judgment associated with property,
plant and equipment
|
(1,884
|
)
|
-
|
||||
Proceeds
from sales of property and equipment
|
58
|
191
|
|||||
Proceeds
from restricted cash
|
172
|
2,807
|
|||||
Purchase
of interest rate cap contracts
|
-
|
(621
|
)
|
||||
Other
assets
|
(352
|
)
|
17
|
||||
Net
cash used by continuing investing activities
|
(11,044
|
)
|
(5,737
|
)
|
2008
|
2007
|
(In
Thousands)
|
Cash
flows from continuing financing activities:
|
|||||||
Proceeds
from revolving debt facilities
|
$
|
288,793
|
$
|
248,972
|
|||
Payments
on revolving debt facilities
|
(288,793
|
)
|
(275,356
|
)
|
|||
Proceeds
from 5.5% convertible debentures, net of fees
|
-
|
56,985
|
|||||
Proceeds
from other long-term debt, net of fees
|
-
|
2,424
|
|||||
Payments
on other long-term debt
|
(284
|
)
|
(5,723
|
)
|
|||
Payments
of debt issuance costs
|
-
|
(50
|
)
|
||||
Proceeds
from short-term financing and drafts payable
|
-
|
56
|
|||||
Payments
on short-term financing and drafts payable
|
(788
|
)
|
(2,106
|
)
|
|||
Proceeds
from exercise of stock options
|
673
|
858
|
|||||
Acquisition
of common stock
|
(3,421
|
)
|
-
|
||||
Excess
income tax benefit on stock options exercised
|
2,552
|
-
|
|||||
Dividends
paid on preferred stock
|
(306
|
)
|
-
|
||||
Net
cash provided (used) by continuing financing activities
|
(1,574
|
)
|
26,060
|
||||
Cash
flows of discontinued operations:
|
|||||||
Operating
cash flows
|
(106
|
)
|
(69
|
)
|
|||
Net
increase (decrease) in cash and cash equivalents
|
(9,700
|
)
|
28,320
|
||||
Cash
and cash equivalents at beginning of period
|
58,224
|
2,255
|
|||||
Cash
and cash equivalents at end of period
|
$
|
48,524
|
$
|
30,575
|
|||
Supplemental
cash flow information:
|
|||||||
Cash
payments for income taxes, net of refunds
|
$
|
9,582
|
$
|
589
|
|||
Noncash
investing and financing activities:
|
|||||||
Accounts
payable associated with purchases of property, plant and
equipment
|
$
|
2,618
|
$
|
-
|
|||
Debt
issuance costs
|
$
|
-
|
$
|
3,131
|
|||
Debt
issuance costs associated with 7% convertible debentures converted to
common stock
|
$
|
-
|
$
|
266
|
|||
7%
convertible debentures converted to common stock
|
$
|
-
|
$
|
4,000
|
|||
Series
2 preferred stock converted to common stock of which $12,303,000 was
charged to accumulated deficit
|
$
|
-
|
$
|
27,593
|
June
30,
2008
|
December
31,
2007
|
(In
Thousands)
|
Trade
receivables
|
$
|
95,082
|
$
|
68,234
|
|||
Insurance
claims
|
214
|
2,469
|
|||||
Other
|
993
|
1,182
|
|||||
96,289
|
71,885
|
||||||
Allowance
for doubtful accounts
|
(749
|
)
|
(1,308
|
)
|
|||
$
|
95,540
|
$
|
70,577
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
(In
Thousands)
|
Balance
at beginning of period
|
$
|
473
|
$
|
1,255
|
$
|
610
|
$
|
938
|
|||||||
Provisions
for (realization of) losses
|
184
|
(345
|
)
|
15
|
(28
|
)
|
|||||||||
Write-offs/disposals
|
(74
|
)
|
(63
|
)
|
(42
|
)
|
(63
|
)
|
|||||||
Balance
at end of period
|
$
|
583
|
$
|
847
|
$
|
583
|
$
|
847
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
(In
Thousands)
|
Precious
metals expense
|
$
|
4,354
|
$
|
3,114
|
$
|
1,894
|
$
|
1,431
|
|||||||
Recoveries
of precious metals
|
(792
|
)
|
(1,233
|
)
|
(792
|
)
|
(937
|
)
|
|||||||
Gains
on sales of precious metals
|
-
|
(489
|
)
|
-
|
-
|
||||||||||
Precious
metals expense, net
|
$
|
3,562
|
$
|
1,392
|
$
|
1,102
|
$
|
494
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
(In
Thousands)
|
Balance
at beginning of period
|
$
|
1,944
|
$
|
1,251
|
$
|
2,056
|
$
|
1,227
|
|||||||
Add:
Charged to costs and expenses
|
2,287
|
1,335
|
1,556
|
827
|
|||||||||||
Deduct:
Costs and expenses incurred
|
(1,953
|
)
|
(1,065
|
)
|
(1,334
|
)
|
(533
|
)
|
|||||||
Balance
at end of period
|
$
|
2,278
|
$
|
1,521
|
$
|
2,278
|
$
|
1,521
|
June
30,
2008
|
December
31,
2007
|
(In
Thousands)
|
Customer
deposits
|
$ | 8,130 | $ | 9,525 | ||||
Accrued
income taxes
|
5,707 | 4,540 | ||||||
Deferred
income taxes
|
5,675 | 5,330 | ||||||
Accrued
payroll and benefits
|
4,439 | 5,362 | ||||||
Deferred
revenue on extended warranty contracts
|
3,691 | 3,387 | ||||||
Accrued
death benefits
|
2,365 | 2,051 | ||||||
Accrued
commissions
|
2,300 | 2,256 | ||||||
Accrued
warranty costs
|
2,278 | 1,944 | ||||||
Accrued
precious metals costs
|
1,919 | 1,359 | ||||||
Accrued
contractual manufacturing obligations
|
1,888 | 1,548 | ||||||
Accrued
insurance
|
1,873 | 2,975 | ||||||
Accrued
property and franchise taxes
|
1,475 | 707 | ||||||
Accrued
executive benefits
|
1,014 | 1,040 | ||||||
Accrued
interest
|
906 | 1,056 | ||||||
Deferred
rent expense
|
- | 4,300 | ||||||
Other
|
3,928 | 3,805 | ||||||
47,588 | 51,185 | |||||||
Less
noncurrent portion
|
13,222 | 12,243 | ||||||
Current
portion of accrued and other liabilities
|
$ | 34,366 | $ | 38,942 |
June
30,
|
December
31,
|
||
2008
|
2007
|
(In
Thousands)
|
Working
Capital Revolver Loan due 2012 (A)
|
$ | - | $ | - | ||||
5.5%
Convertible Senior Subordinated Notes due 2012 (B)
|
60,000 | 60,000 | ||||||
Secured
Term Loan due 2012 (C)
|
50,000 | 50,000 | ||||||
Other,
with current interest rates of 5.99% to 9.36%, most of which is secured by
machinery, equipment and real estate
|
11,588 | 12,107 | ||||||
121,588 | 122,107 | |||||||
Less
current portion of long-term debt
|
912 | 1,043 | ||||||
Long-term
debt due after one year
|
$ | 120,676 | $ | 121,064 |
·
|
incur
additional indebtedness,
|
·
|
incur
liens,
|
·
|
make
restricted payments or loans to affiliates who are not
Borrowers,
|
·
|
engage
in mergers, consolidations or other forms of recapitalization, or dispose
assets.
|
A.
|
Environmental
Matters
|
Fair
Value Measurements at
June
30, 2008 Using
|
Description
|
June
30,
2008
|
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
(In
Thousands)
|
Assets:
|
||||||||||||
Interest
rate contracts
|
$
|
1,135
|
$
|
-
|
$
|
1,135
|
||||||
Commodities
futures contracts
|
867
|
330
|
537
|
|||||||||
Total
|
$
|
2,002
|
$
|
330
|
$
|
1,672
|
||||||
Liabilities:
|
||||||||||||
Foreign
currency contracts
|
$
|
15
|
$
|
-
|
$
|
15
|
Six
Months
Ended
June
30, 2008
|
Three
Months Ended
June
30, 2008
|
(In
Thousands)
|
Total
gains included in earnings:
|
||||||||
Cost
of sales
|
$
|
4,453 |
$
|
1,256 | ||||
Interest
expense
|
708 | 877 | ||||||
$
|
5,161 |
$
|
2,133 |
Change
in unrealized gains and losses relating to contracts still held at
June 30, 2008:
|
||||||||
Cost
of sales
|
$
|
846 |
$
|
793 | ||||
Interest
expense
|
709 | 896 | ||||||
$
|
1,555 |
$
|
1,689 |
·
|
we
acquired 200,000 shares of our common
stock;
|
·
|
we
issued 367,304 shares of our common stock as the result of the exercise of
stock options; and
|
·
|
we
paid cash dividends on our Series B Preferred, Series D Preferred and
noncumulative redeemable preferred stock (“Noncumulative Preferred”)
totaling approximately $240,000, $60,000 and $6,000,
respectively.
|
·
|
we
sold $60 million of the 2007 Debentures on June 28,
2007;
|
·
|
$4,000,000
of the 7% Convertible Senior Subordinated Debentures (the “2006
Debentures”) was converted into 564,789 shares of common
stock;
|
·
|
we
issued 2,262,965 shares of common stock for 305,807 shares of our Series 2
Preferred that were tendered pursuant to a tender
offer;
|
·
|
we
received shareholders’ approval in granting 450,000 shares of
non-qualified stock options on June 14, 2007;
and
|
·
|
we
issued 245,100 shares of our common stock as the result of the exercise of
stock options.
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
Numerator:
|
||||||||||||||||
Net
income
|
$
|
28,814 |
$
|
24,039 |
$
|
17,907 |
$
|
13,220 | ||||||||
Dividends
and dividend requirements on Series B Preferred
|
(240 | ) | (120 | ) | - | (60 | ) | |||||||||
Dividend
requirements on shares of Series 2 Preferred which did not exchange
pursuant to tender offer in 2007
|
- |
(314
|
) | - | (157 | ) | ||||||||||
Stock
dividend on shares of Series 2 Preferred pursuant to tender offer in
2007(1)
|
- | (4,971 | ) | - | - | |||||||||||
Dividends
on Series D Preferred
|
(60 | ) | - | - | - | |||||||||||
Dividends
on Noncumulative Preferred
|
(6 | ) | - | - | - | |||||||||||
Total
dividends, dividend requirements and stock dividend on preferred
stock
|
(306 | ) | (5,405 | ) | - | (217 | ) | |||||||||
Numerator
for basic net income per common share - net income applicable to common
stock
|
28,508 | 18,634 | 17,907 | 13,003 | ||||||||||||
Dividends
and dividend requirements on preferred stock assumed to be converted, if
dilutive
|
306 | 434 | - | 217 | ||||||||||||
Interest
expense including amortization of debt issuance costs, net of income
taxes, on convertible debt assumed to be converted, if
dilutive
|
1,203 | 83 | 601 | 34 | ||||||||||||
Numerator
for diluted net income per common share
|
$
|
30,017 |
$
|
19,151 |
$
|
18,508 |
$
|
13,254 | ||||||||
Denominator:
|
||||||||||||||||
Denominator
for basic net income per common share - weighted-average
shares
|
21,114,506 | 18,614,835 | 21,172,227 | 19,713,471 | ||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Convertible
notes payable
|
2,188,000 | 212,088 | 2,188,000 | 111,651 | ||||||||||||
Convertible
preferred stock
|
940,016 | 1,778,610 | 939,966 | 1,777,900 | ||||||||||||
Stock
options
|
665,198 | 1,255,959 | 526,801 | 1,228,399 | ||||||||||||
Warrants
|
- | 88,257 | - | 92,068 | ||||||||||||
Dilutive
potential common shares
|
3,793,214 | 3,334,914 | 3,654,767 | 3,210,018 | ||||||||||||
Denominator
for diluted net income per common share - adjusted weighted-average shares
and assumed conversions
|
24,907,720 | 21,949,749 | 24,826,994 | 22,923,489 | ||||||||||||
Basic
net income per common share
|
$
|
1.35 |
$
|
1.00 |
|
$
|
.85 |
$
|
.66 | |||||||
Diluted
net income per common share
|
$
|
1.21 |
$
|
.87 |
$
|
.75 |
$
|
.58 |
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
Stock
options
|
425,000 | 42,265 | 425,000 | 84,066 | ||||||||||||
Series
2 Preferred pursuant to tender offer in 2007 (2)
|
- | 522,181 | - | - | ||||||||||||
425,000 | 564,446 | 425,000 | 84,066 |
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
(In
Thousands)
|
Federal
|
$
|
11,520 |
$
|
446 |
$
|
6,625 |
$
|
232 | ||||||||
State
|
1,724 | 86 | 909 | (44 | ) | |||||||||||
Total
Current
|
$
|
13,244 |
$
|
532 |
$
|
7,534 |
$
|
188 |
Federal
|
$
|
3,539 |
$
|
- |
$
|
2,709 |
$
|
- | ||||||||
State
|
646 | - | 466 | - | ||||||||||||
Total
Deferred
|
4,185 | - | 3,175 | - | ||||||||||||
Provisions
for income taxes
|
$
|
17,429 |
$
|
532 |
$
|
10,709 |
$
|
188 |
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
(In
Thousands)
|
Other
expense:
|
|||||||||||||||
Potential
litigation settlements
|
$
|
367
|
$
|
-
|
$
|
192
|
$
|
-
|
|||||||
Losses
on sales and disposals of property and equipment
|
82
|
431
|
82
|
431
|
|||||||||||
Impairment
of long-lived assets (1)
|
192
|
-
|
192
|
-
|
|||||||||||
Other
miscellaneous expense (2)
|
16
|
87
|
10
|
63
|
|||||||||||
Total
other expense
|
$
|
657
|
$
|
518
|
$
|
476
|
$
|
494
|
|||||||
Other
income:
|
|||||||||||||||
Litigation
judgment and settlements (3)
|
$
|
8,235
|
$
|
-
|
$
|
7,710
|
$
|
-
|
|||||||
Other
miscellaneous income (2)
|
94
|
100
|
9
|
46
|
|||||||||||
Total
other income
|
$
|
8,329
|
$
|
100
|
$
|
7,719
|
$
|
46
|
|||||||
Non-operating
other income, net:
|
|||||||||||||||
Interest
income
|
$
|
899
|
$
|
58
|
$
|
358
|
$
|
16
|
|||||||
Miscellaneous
income (2)
|
11
|
65
|
11
|
39
|
|||||||||||
Miscellaneous
expense (2)
|
(48
|
)
|
(50
|
)
|
(24
|
)
|
(24
|
)
|
|||||||
Total
non-operating other income, net
|
$
|
862
|
$
|
73
|
$
|
345
|
$
|
31
|
(1)
|
Based
on an unsuccessful effort to sell certain corporate assets in an auction,
we recognized an impairment of long-lived
assets.
|
(2)
|
Amounts
represent numerous unrelated transactions, none of which are individually
significant requiring separate
disclosure.
|
(3)
|
For
the six and three months ended June 30, 2008, income from litigation
judgment and settlements includes approximately $7,560,000, net of
attorneys’ fees, relating to a litigation judgment involving a subsidiary
within our Chemical Business as discussed in Note 10 - Contingencies. In addition, during
the six months ended June 30, 2008, a settlement was reached for $400,000
for the recovery of certain environmental-related costs incurred in
previous periods relating to property used by Corporate and other business
operations.
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2008
|
2007
|
2008
|
2007
|
(In
Thousands)
|
Net
sales:
|
|||||||||||||||
Climate
Control
|
$
|
146,949
|
$
|
145,823
|
$
|
80,626
|
$
|
74,518
|
|||||||
Chemical
|
204,788
|
153,142
|
113,458
|
79,422
|
|||||||||||
Other
|
6,770
|
5,176
|
3,968
|
2,816
|
|||||||||||
$
|
358,507
|
$
|
304,141
|
$
|
198,052
|
$
|
156,756
|
||||||||
Gross
profit: (1)
|
|||||||||||||||
Climate
Control (2)
|
$
|
47,454
|
$
|
42,628
|
$
|
25,932
|
$
|
21,921
|
|||||||
Chemical
(3)
|
31,852
|
22,242
|
16,499
|
11,710
|
|||||||||||
Other
|
2,192
|
1,839
|
1,310
|
1,026
|
|||||||||||
$
|
81,498
|
$
|
66,709
|
$
|
43,741
|
$
|
34,657
|
||||||||
Operating
income (loss): (4)
|
|||||||||||||||
Climate
Control (2)
|
$
|
21,182
|
$
|
18,125
|
$
|
11,855
|
$
|
9,617
|
|||||||
Chemical
(3) (5)
|
32,627
|
15,646
|
20,502
|
7,936
|
|||||||||||
General
corporate expenses and other business operations, net (6)
|
(5,153
|
)
|
(5,095
|
)
|
(3,033
|
)
|
(2,400
|
)
|
|||||||
48,656
|
28,676
|
29,324
|
15,153
|
||||||||||||
Interest
expense
|
(3,720
|
)
|
(4,580
|