[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
||
For the quarterly period
ended June
30, 2010
|
|||
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.
|
4
|
|
Item
2.
|
37
|
|
Item
3.
|
63
|
|
Item
4.
|
64
|
|
65
|
||
PART
II – Other Information
|
||
Item
1.
|
68
|
|
Item
1A.
|
68
|
|
Item
2.
|
68
|
|
Item
3.
|
70
|
|
Item
4.
|
(
Reserved)
|
70
|
Item
5.
|
70
|
|
Item
6.
|
71
|
June
30,
2010
|
December
31,
2009
|
(In
Thousands)
|
Current
assets:
|
||||||
Cash
and cash equivalents
|
$
|
65,285
|
$
|
61,739
|
||
Restricted
cash
|
276
|
30
|
||||
Short-term
investments
|
-
|
10,051
|
||||
Accounts
receivable, net
|
73,759
|
57,762
|
||||
Inventories:
|
||||||
Finished
goods
|
23,084
|
25,753
|
||||
Work
in process
|
2,778
|
2,466
|
||||
Raw
materials
|
21,347
|
22,794
|
||||
Total
inventories
|
47,209
|
51,013
|
||||
Supplies,
prepaid items and other:
|
||||||
Prepaid
income taxes
|
-
|
1,642
|
||||
Prepaid
insurance
|
2,086
|
4,136
|
||||
Precious
metals
|
11,422
|
13,083
|
||||
Supplies
|
5,976
|
4,886
|
||||
Other
|
2,299
|
1,626
|
||||
Total
supplies, prepaid items and other
|
21,783
|
25,373
|
||||
Deferred
income taxes
|
5,680
|
5,527
|
||||
Total
current assets
|
213,992
|
211,495
|
||||
Property,
plant and equipment, net
|
121,317
|
117,962
|
||||
Other
assets:
|
||||||
Debt
issuance costs, net
|
1,342
|
1,652
|
||||
Investment
in affiliate
|
4,126
|
3,838
|
||||
Goodwill
|
1,724
|
1,724
|
||||
Other,
net
|
2,274
|
1,962
|
||||
Total
other assets
|
9,466
|
9,176
|
||||
$
|
344,775
|
$
|
338,633
|
June
30,
2010
|
December
31,
2009
|
(In
Thousands)
|
Liabilities
and Stockholders’ Equity
|
||||||
Current
liabilities:
|
||||||
Accounts
payable
|
$
|
38,297
|
$
|
37,553
|
||
Short-term
financing
|
955
|
3,017
|
||||
Accrued
and other liabilities
|
23,390
|
23,054
|
||||
Current
portion of long-term debt
|
3,456
|
3,205
|
||||
Total
current liabilities
|
66,098
|
66,829
|
||||
Long-term
debt
|
98,459
|
98,596
|
||||
Noncurrent
accrued and other liabilities
|
11,252
|
10,626
|
||||
Deferred
income taxes
|
12,467
|
11,975
|
||||
Commitments
and contingencies (Note 11)
|
||||||
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, 25,413,145
shares issued (25,369,095 at December 31, 2009)
|
2,541
|
2,537
|
||||
Capital
in excess of par value
|
130,828
|
129,941
|
||||
Retained
earnings
|
48,504
|
41,082
|
||||
184,873
|
176,560
|
|||||
Less
treasury stock at cost:
|
||||||
Common
stock, 4,320,462 shares (4,143,362 at December 31, 2009)
|
28,374
|
25,953
|
||||
Total
stockholders' equity
|
156,499
|
150,607
|
||||
$
|
344,775
|
$
|
338,633
|
Six
Months
|
Three
Months
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands, Except Per Share
Amounts)
|
Net
sales
|
$
|
298,802
|
$
|
288,760
|
$
|
168,392
|
$
|
138,563
|
|||||||
Cost
of sales
|
235,388
|
210,205
|
133,244
|
100,736
|
|||||||||||
Gross
profit
|
63,414
|
78,555
|
35,148
|
37,827
|
|||||||||||
Selling,
general and administrative expense
|
46,827
|
44,421
|
22,238
|
23,046
|
|||||||||||
Provision
for (recoveries of) losses on accounts receivable
|
(35
|
)
|
28
|
(44
|
)
|
(24
|
)
|
||||||||
Other
expense
|
302
|
334
|
244
|
291
|
|||||||||||
Other
income
|
(906
|
)
|
(190
|
)
|
(100
|
)
|
(28
|
)
|
|||||||
Operating
income
|
17,226
|
33,962
|
12,810
|
14,542
|
|||||||||||
Interest
expense
|
4,079
|
2,939
|
1,999
|
1,028
|
|||||||||||
Losses
(gains) on extinguishment of debt
|
52
|
(1,743
|
)
|
52
|
(421
|
)
|
|||||||||
Non-operating
other income, net
|
(38
|
)
|
(34
|
)
|
-
|
(11
|
)
|
||||||||
Income
from continuing operations before provisions for
income taxes and equity in earnings of affiliate
|
13,133
|
32,800
|
10,759
|
13,946
|
|||||||||||
Provisions
for income taxes
|
5,891
|
12,800
|
4,979
|
5,451
|
|||||||||||
Equity
in earnings of affiliate
|
(528
|
)
|
(488
|
)
|
(267
|
)
|
(248
|
)
|
|||||||
Income
from continuing operations
|
7,770
|
20,488
|
6,047
|
8,743
|
|||||||||||
Net
loss from discontinued operations
|
43
|
15
|
38
|
13
|
|||||||||||
Net
income
|
7,727
|
20,473
|
6,009
|
8,730
|
|||||||||||
Dividends
on preferred stocks
|
305
|
306
|
-
|
-
|
|||||||||||
Net
income applicable to common stock
|
$
|
7,422
|
$
|
20,167
|
$
|
6,009
|
$
|
8,730
|
|||||||
Weighted-average
common shares:
|
|||||||||||||||
Basic
|
21,227
|
21,174
|
21,229
|
21,238
|
|||||||||||
Diluted
|
21,692
|
23,587
|
22,377
|
23,674
|
|||||||||||
Income
per common share:
|
|||||||||||||||
Basic
|
$
|
.35
|
$
|
.95
|
$
|
.28
|
$
|
.41
|
|||||||
Diluted
|
$
|
.35
|
$
|
.89
|
$
|
.27
|
$
|
.38
|
Common
Stock
Shares
|
Non-
Redeemable
Preferred
Stock
|
Common
Stock
Par
Value
|
Capital
in
Excess
of
Par
Value
|
Retained
Earnings
|
Treasury
Stock-
Common
|
Total
|
(In
Thousands)
|
Balance
at December 31, 2009
|
25,369
|
$
|
3,000
|
$
|
2,537
|
$
|
129,941
|
$
|
41,082
|
$
|
(25,953
|
)
|
$
|
150,607
|
|||
Net
income
|
7,727
|
7,727
|
|||||||||||||||
Dividends
paid on preferred stocks
|
(305
|
)
|
(305
|
)
|
|||||||||||||
Stock-based
compensation
|
500
|
500
|
|||||||||||||||
Exercise
of stock options
|
43
|
4
|
292
|
296
|
|||||||||||||
Excess
income tax benefit associated with stock-based
compensation
|
94
|
94
|
|||||||||||||||
Acquisition
of 177,100 shares of common stock
|
(2,421
|
)
|
(2,421
|
)
|
|||||||||||||
Conversion
of 14 shares of redeemable preferred stock to common stock
|
1
|
1
|
1
|
||||||||||||||
Balance
at June 30, 2010
|
25,413
|
$
|
3,000
|
$
|
2,541
|
$
|
130,828
|
$
|
48,504
|
$
|
(28,374
|
)
|
$
|
156,499
|
2010
|
2009
|
(In
Thousands)
|
Cash
flows from continuing operating activities:
|
|||||||
Net
income
|
$
|
7,727
|
$
|
20,473
|
|||
Adjustments
to reconcile net income to net cash provided by continuing operating
activities:
|
|||||||
Net
loss from discontinued operations
|
43
|
15
|
|||||
Deferred
income taxes
|
244
|
5,538
|
|||||
Loss
(gain) on extinguishment of debt
|
52
|
(1,743
|
)
|
||||
Losses
on sales and disposals of property and equipment
|
259
|
220
|
|||||
Gain
on property insurance recoveries associated with property, plant and
equipment
|
(495
|
)
|
-
|
||||
Depreciation
of property, plant and equipment
|
8,626
|
7,684
|
|||||
Amortization
|
311
|
451
|
|||||
Stock-based
compensation
|
500
|
514
|
|||||
Provision
for (recovery of) losses on accounts receivable
|
(35
|
)
|
28
|
||||
Realization
of losses on inventory
|
(324
|
)
|
(3,024
|
)
|
|||
Provision
for (realization of) losses on firm sales commitments
|
(371
|
)
|
514
|
||||
Equity
in earnings of affiliate
|
(528
|
)
|
(488
|
)
|
|||
Distributions
received from affiliate
|
240
|
350
|
|||||
Changes
in fair value of commodities contracts
|
246
|
969
|
|||||
Changes
in fair value of interest rate contracts
|
348
|
(649
|
)
|
||||
Other
|
(10
|
)
|
-
|
||||
Cash
provided (used) by changes in assets and liabilities:
|
|||||||
Accounts
receivable
|
(16,585
|
)
|
15,790
|
||||
Inventories
|
4,128
|
12,153
|
|||||
Prepaid
and accrued income taxes
|
2,392
|
146
|
|||||
Other
supplies and prepaid items
|
1,798
|
1,315
|
|||||
Accounts
payable
|
2,700
|
(11,703
|
)
|
||||
Customer
deposits
|
(77
|
)
|
(2,121
|
)
|
|||
Accrued
payroll and benefits
|
(1,054
|
)
|
(1,983
|
)
|
|||
Commodities
contracts
|
150
|
(4,112
|
)
|
||||
Deferred
rent expense
|
-
|
(1,424
|
)
|
||||
Other
current and noncurrent liabilities
|
2,243
|
(3,781
|
)
|
||||
Net
cash provided by continuing operating activities
|
12,528
|
35,132
|
|||||
Capital
expenditures
|
(10,861
|
)
|
(12,406
|
)
|
|||
Proceeds
from property insurance recoveries associated with property, plant and
equipment
|
1,670
|
-
|
|||||
Proceeds
from sales of property and equipment
|
11
|
3
|
|||||
Proceeds
from short-term investments
|
20,053
|
-
|
|||||
Purchase
of short-term investments
|
(10,002
|
)
|
-
|
||||
Proceeds
from (deposits of) restricted cash
|
(246
|
)
|
518
|
||||
Other
assets
|
(326
|
)
|
(209
|
)
|
|||
Net
cash provided (used) by continuing investing activities
|
299
|
(12,094
|
)
|
|
2010
|
2009
|
(In
Thousands)
|
Cash
flows from continuing financing activities:
|
|||||||
Proceeds
from revolving debt facilities
|
$
|
263,064
|
$
|
281,103
|
|||
Payments
on revolving debt facilities
|
(263,064
|
)
|
(281,103
|
)
|
|||
Acquisition
of 5.5% convertible debentures
|
(2,494
|
)
|
(7,134
|
)
|
|||
Proceeds
from other long-term debt, net of fees
|
47
|
2,565
|
|||||
Payments
on other long-term debt
|
(2,386
|
)
|
(687
|
)
|
|||
Payments
on short-term financing
|
(2,062
|
)
|
(1,776
|
)
|
|||
Proceeds
from exercise of stock options
|
296
|
500
|
|||||
Purchase
of treasury stock
|
(2,421
|
)
|
-
|
||||
Excess
income tax benefit associated with stock-based
compensation
|
189
|
657
|
|||||
Dividends
paid on preferred stocks
|
(305
|
)
|
(306
|
)
|
|||
Net
cash used by continuing financing activities
|
(9,136
|
)
|
(6,181
|
)
|
|||
Cash
flows of discontinued operations:
|
|||||||
Operating
cash flows
|
(145
|
)
|
(53
|
)
|
|||
Net
increase in cash and cash equivalents
|
3,546
|
16,804
|
|||||
Cash
and cash equivalents at beginning of period
|
61,739
|
46,204
|
|||||
Cash
and cash equivalents at end of period
|
$
|
65,285
|
$
|
63,008
|
|||
Supplemental
cash flow information:
|
|||||||
Cash
payments for income taxes, net of refunds
|
$
|
3,093
|
$
|
6,459
|
|||
Noncash
investing and financing activities:
|
|||||||
Receivable
associated with a property insurance claim
|
$
|
560
|
$
|
1,135
|
|||
Current
other assets, accounts payable and long-term debt associated with
property, plant and equipment
|
$
|
5,548
|
$
|
4,164
|
|||
Debt
issuance costs associated with the acquisition of the 5.5% convertible
debentures
|
$
|
58
|
$
|
323
|
|||
June
30,
2010
|
December
31,
2009
|
(In
Thousands)
|
Trade
receivables
|
$
|
72,467
|
$
|
55,318
|
|||
Insurance
claims
|
880
|
1,517
|
|||||
Other
|
948
|
1,603
|
|||||
74,295
|
58,438
|
||||||
Allowance
for doubtful accounts
|
(536
|
)
|
(676
|
)
|
|||
$
|
73,759
|
$
|
57,762
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Balance
at beginning of period
|
$
|
1,676
|
$
|
4,141
|
$
|
1,744
|
$
|
1,109
|
|||||||
Provision
for (realization of) losses
|
(324
|
)
|
(3,024
|
)
|
(442
|
)
|
8
|
||||||||
Write-offs/disposals
|
(50
|
)
|
(53
|
)
|
-
|
(53
|
)
|
||||||||
Balance
at end of period
|
$
|
1,302
|
$
|
1,064
|
$
|
1,302
|
$
|
1,064
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Precious
metals expense
|
$
|
3,461
|
$
|
3,279
|
$
|
2,082
|
$
|
1,552
|
|||||||
Recoveries
of precious metals
|
-
|
(2,222
|
)
|
-
|
(9
|
)
|
|||||||||
Gains
on sales of precious metals
|
(112
|
)
|
-
|
-
|
-
|
||||||||||
Precious
metals expense, net
|
$
|
3,349
|
$
|
1,057
|
$
|
2,082
|
$
|
1,543
|
June
30,
2010
|
December
31,
2009
|
(In
Thousands)
|
Deferred
revenue on extended warranty contracts
|
$ | 5,284 | $ | 4,884 | ||||
Accrued
payroll and benefits
|
4,846 | 5,900 | ||||||
Accrued
insurance
|
4,146 | 3,667 | ||||||
Accrued
death benefits
|
3,703 | 3,356 | ||||||
Accrued
warranty costs
|
3,129 | 3,138 | ||||||
Fair
value of derivatives
|
2,523 | 1,929 | ||||||
Accrued
contractual manufacturing obligations
|
1,687 | 732 | ||||||
Accrued
income taxes
|
1,358 | 608 | ||||||
Accrued
executive benefits
|
1,213 | 1,102 | ||||||
Accrued
interest
|
809 | 1,593 | ||||||
Accrued
commissions
|
723 | 1,035 | ||||||
Other
|
5,221 | 5,736 | ||||||
34,642 | 33,680 | |||||||
Less
noncurrent portion
|
11,252 | 10,626 | ||||||
Current
portion of accrued and other liabilities
|
$ | 23,390 | $ | 23,054 |
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Balance
at beginning of period
|
$
|
3,138
|
$
|
2,820
|
$
|
2,991
|
$
|
2,864
|
|||||||
Charged
to costs and expenses
|
1,643
|
3,146
|
645
|
1,288
|
|||||||||||
Costs
and expenses incurred
|
(1,652
|
)
|
(2,928
|
)
|
(507
|
)
|
(1,114
|
)
|
|||||||
Balance
at end of period
|
$
|
3,129
|
$
|
3,038
|
$
|
3,129
|
$
|
3,038
|
June
30,
|
December
31,
|
||
2010
|
2009
|
(In
Thousands)
|
Working
Capital Revolver Loan due 2012 (A)
|
$
|
-
|
$
|
-
|
||
5.5%
Convertible Senior Subordinated Notes due 2012 (B)
|
26,900
|
29,400
|
||||
Secured
Term Loan due 2012 (C)
|
49,151
|
50,000
|
||||
Other,
with a current weighted-average interest rate of 6.42%, most of which is
secured by machinery, equipment and real estate
|
25,864
|
22,401
|
||||
101,915
|
101,801
|
|||||
Less
current portion of long-term debt
|
3,456
|
3,205
|
||||
Long-term
debt due after one year
|
$
|
98,459
|
$
|
98,596
|
·
|
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
|
·
|
for
a period of five years from the completion of an exchange or tender to
repurchase, redeem or otherwise acquire shares of our common stock,
without approval of the outstanding Series 2 Preferred irrespective that
dividends are accrued and unpaid with respect to the Series 2 Preferred;
or
|
·
|
to
provide that holders of Series 2 Preferred may not elect two directors to
our board of directors when dividends are unpaid on the Series 2 Preferred
if less than 140,000 shares of Series 2 Preferred remain
outstanding.
|
·
|
fraudulent
inducement and fraud,
|
·
|
violation
of 10(b) of the Exchange Act and Rule
10b-5,
|
·
|
violation
of 17-12A501 of the Kansas Uniform Securities Act,
and
|
·
|
breach
of contract.
|
Fair
Value Measurements at
June
30, 2010 Using
|
Description
|
Total
Fair
Value
at
June
30,
2010
|
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
Total
Fair
Value
at
December
31,
2009
|
(In
Thousands)
|
Assets
- Supplies, prepaid items
and other:
|
||||||||||||||||||
Commodities
contracts
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
150
|
||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
150
|
||||||||
Liabilities
- Current and noncurrent
accrued and other
liabilities:
|
||||||||||||||||||
Commodities
contracts
|
$
|
246
|
$
|
246
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Interest
rate contracts
|
2,277
|
-
|
2,277
|
-
|
1,929
|
|||||||||||||
Total
|
$
|
2,523
|
$
|
246
|
$
|
2,277
|
$
|
-
|
$
|
1,929
|
Commodities
Contracts
|
(In
Thousands)
|
Beginning
balance
|
$ | (1,388 | ) | |
Total
realized and unrealized gain included in earnings
|
493 | |||
Purchases,
issuances, and settlements
|
895 | |||
Transfers
in and/or out of Level 3
|
- | |||
Ending
balance
|
$ | - |
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Total
net gains (losses) included in earnings:
|
|||||||||||||||
Cost
of sales – Commodities contracts
|
$
|
(904
|
)
|
$
|
(1,148
|
)
|
$
|
(216
|
)
|
$
|
8
|
||||
Cost
of sales – Foreign exchange contracts
|
(24
|
)
|
(31
|
)
|
-
|
(1
|
)
|
||||||||
Interest
expense – Interest rate contracts
|
(1,137
|
)
|
158
|
(523
|
)
|
427
|
|||||||||
$
|
(2,065
|
)
|
$
|
(1,021
|
)
|
$
|
(739
|
)
|
$
|
434
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Change
in unrealized gains and losses relating to contracts still held at period
end:
|
|||||||||||||||
Cost
of sales – Commodities contracts
|
$
|
(246
|
)
|
$
|
(969
|
)
|
$
|
(313
|
)
|
$
|
30
|
||||
Interest
expense – Interest rate contracts
|
(348
|
)
|
649
|
(128
|
)
|
719
|
|||||||||
$
|
(594
|
)
|
$
|
(320
|
)
|
$
|
(441
|
)
|
$
|
749
|
June
30, 2010
|
December
31, 2009
|
Estimated
Fair
Value
|
Carrying
Value
|
Estimated
Fair
Value
|
Carrying
Value
|
(In
Thousands)
|
Variable
Rate:
|
||||||||||||||||
Secured
Term Loan
|
$ | 24,518 | $ | 49,151 | $ | 27,640 | $ | 50,000 | ||||||||
Working
Capital Revolver Loan
|
- | - | - | - | ||||||||||||
Other
debt
|
2,495 | 2,495 | 2,553 | 2,553 | ||||||||||||
Fixed
Rate:
|
||||||||||||||||
5.5%
Convertible Senior Subordinated Notes
|
26,833 | 26,900 | 29,106 | 29,400 | ||||||||||||
Other
bank debt and equipment financing
|
24,015 | 23,369 | 20,231 | 19,848 | ||||||||||||
$ | 77,861 | $ | 101,915 | $ | 79,530 | $ | 101,801 |
·
|
we
purchased 177,100 shares of treasury
stock;
|
·
|
we
issued 43,510 shares of our common stock as the result of the exercise of
stock options;
|
·
|
we
acquired $2,500,000 aggregate principle amount of the 2007 Debentures;
and
|
·
|
we
paid cash dividends on our Series B 12% cumulative, convertible preferred
stock (“Series B Preferred”), Series D 6% cumulative, convertible Class C
preferred stock (“Series D Preferred”) and noncumulative redeemable
preferred stock (“Noncumulative Preferred”) totaling approximately
$240,000, $60,000 and $5,000,
respectively.
|
·
|
we
issued 389,000 shares of our common stock as the result of the exercise of
stock options;
|
·
|
we
acquired $9,200,000 aggregate principle amount of the 2007 Debentures;
and
|
·
|
we
paid cash dividends on our Series B Preferred, Series D Preferred and
Noncumulative Preferred totaling approximately $240,000, $60,000 and
$6,000, respectively.
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
Numerator:
|
|||||||||||||||
Net
income
|
$
|
7,727
|
$
|
20,473
|
$
|
6,009
|
$
|
8,730
|
|||||||
Dividends
on Series B Preferred
|
(240
|
)
|
(240
|
)
|
-
|
-
|
|||||||||
Dividends
on Series D Preferred
|
(60
|
)
|
(60
|
)
|
-
|
-
|
|||||||||
Dividends
on Noncumulative Preferred
|
(5
|
)
|
(6
|
)
|
-
|
-
|
|||||||||
Total
dividends on preferred stock
|
(305
|
)
|
(306
|
)
|
-
|
-
|
|||||||||
Numerator
for basic net income per common share - net income applicable to common
stock
|
7,422
|
20,167
|
6,009
|
8,730
|
|||||||||||
Dividends
on preferred stock assumed to be converted, if dilutive
|
65
|
306
|
-
|
-
|
|||||||||||
Interest
expense including amortization of debt
issuance costs, net of income taxes, on convertible debt assumed to be
converted, if
dilutive
|
-
|
627
|
-
|
314
|
|||||||||||
Numerator
for diluted net income per common share
|
$
|
7,487
|
$
|
21,100
|
$
|
6,009
|
$
|
9,044
|
|||||||
Denominator:
|
|||||||||||||||
Denominator
for basic net income per common share - weighted-average
shares
|
21,227,411
|
21,174,210
|
21,228,918
|
21,237,904
|
|||||||||||
Effect
of dilutive securities:
|
|||||||||||||||
Convertible
preferred stock
|
270,425
|
938,006
|
936,566
|
937,825
|
|||||||||||
Stock
options
|
190,332
|
331,607
|
207,849
|
354,899
|
|||||||||||
Convertible
notes payable
|
4,000
|
1,143,320
|
4,000
|
1,143,320
|
|||||||||||
Dilutive
potential common shares
|
464,757
|
2,412,933
|
1,148,415
|
2,436,044
|
|||||||||||
Denominator
for diluted net income per common share - adjusted weighted-average shares
and assumed conversions
|
21,692,168
|
23,587,143
|
22,377,333
|
23,673,948
|
|||||||||||
Basic
net income per common share
|
$
|
.35
|
$
|
.95
|
$
|
.28
|
$
|
.41
|
|||||||
Diluted
net income per common share
|
$
|
.35
|
$
|
.89
|
$
|
.27
|
$
|
.38
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
Convertible
notes payable
|
979,160 | - | 979,160 | - | ||||||||||||
Convertible
preferred stock
|
666,666 | - | - | - | ||||||||||||
Stock
options
|
373,619 | 766,646 | 372,253 | 412,363 | ||||||||||||
2,019,445 | 766,646 | 1,351,413 | 412,363 |
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Current:
|
||||||||||||||
Federal
|
$
|
4,473
|
$
|
6,490
|
$
|
3,957
|
$
|
1,682
|
||||||
State
|
1,174
|
772
|
967
|
182
|
||||||||||
Total
current provisions
|
$
|
5,647
|
$
|
7,262
|
$
|
4,924
|
$
|
1,864
|
Deferred:
|
||||||||||||||
Federal
|
$
|
226
|
$
|
4,970
|
$
|
49
|
$
|
3,219
|
||||||
State
|
18
|
568
|
6
|
368
|
||||||||||
Total
deferred provisions
|
244
|
5,538
|
55
|
3,587
|
||||||||||
Provisions
for income taxes
|
$
|
5,891
|
$
|
12,800
|
$
|
4,979
|
$
|
5,451
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Other
expense:
|
|||||||||||||||
Losses
on sales and disposals of property and equipment
|
$
|
259
|
$
|
220
|
$
|
256
|
$
|
207
|
|||||||
Other
miscellaneous expense (1)
|
43
|
114
|
(12
|
)
|
84
|
||||||||||
Total
other expense (1)
|
$
|
302
|
$
|
334
|
$
|
244
|
$
|
291
|
|||||||
Other
income:
|
|||||||||||||||
Property
insurance recoveries in excess of
losses
incurred
|
$
|
739
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||
Miscellaneous
income (1)
|
167
|
190
|
100
|
28
|
|||||||||||
Total
other income
|
$
|
906
|
$
|
190
|
$
|
100
|
$
|
28
|
|||||||
Non-operating
other income, net:
|
|||||||||||||||
Interest
income
|
$
|
77
|
$
|
78
|
$
|
21
|
$
|
33
|
|||||||
Miscellaneous
expense (1)
|
(39
|
)
|
(44
|
)
|
(21
|
)
|
(22
|
)
|
|||||||
Total
non-operating other income, net
|
$
|
38
|
$
|
34
|
$
|
-
|
$
|
11
|
(1)
|
Amounts
represent numerous unrelated transactions, none of which are individually
significant requiring separate
disclosure.
|
Six
Months Ended
June
30,
|
Three
Months Ended
June
30,
|
2010
|
2009
|
2010
|
2009
|
(In
Thousands)
|
Net
sales:
|
|||||||||||||||
Climate
Control
|
$
|
113,499
|
$
|
139,030
|
$
|
59,828
|
$
|
66,982
|
|||||||
Chemical
|
181,250
|
144,371
|
106,378
|
69,893
|
|||||||||||
Other
|
4,053
|
5,359
|
2,186
|
1,688
|
|||||||||||
$
|
298,802
|
$
|
288,760
|
$
|
168,392
|
$
|
138,563
|
||||||||
Gross
profit: (1)
|
|||||||||||||||
Climate
Control (2)
|
$
|
37,231
|
$
|
47,426
|
$
|
18,832
|
$
|
24,998
|
|||||||
Chemical
(3)
|
24,760
|
29,429
|
15,602
|
12,281
|
|||||||||||
Other
|
1,423
|
1,700
|
714
|
548
|
|||||||||||
$
|
63,414
|
$
|
78,555
|
$
|
35,148
|
$
|
37,827
|
||||||||
Operating
income: (4)
|
|||||||||||||||
Climate
Control (2)
|
$
|
12,520
|
$
|
21,204
|
$
|
6,993
|
$
|
12,226
|
|||||||
Chemical
(3) (5)
|
11,063
|
18,835
|
9,178
|
6,197
|
|||||||||||
General
corporate expenses and other
business operations, net (6)
|
(6,357
|
)
|
(6,077
|
)
|
(3,361
|
)
|
(3,881
|
)
|
|||||||
17,226
|