LSB Industries Inc. (NYSE:LXU) Q1 2020 Earnings Conference Call - Final Transcript
May 07, 2020 • 10:00 am ET
Greetings, ladies and gentlemen, and welcome to the LSB Industries First Quarter 2020 Conference Call. [Operator Instructions]
It is now my pleasure to introduce your host, Kristy Carver, Senior Vice President and Treasurer. Thank you. You may begin.
Thank you, Jen. Good morning to everyone. Joining me on the call 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 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. As this call will include references to non-GAAP results, please reference 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 for opening remarks.
Thank you, Kristy, and good morning, everyone. We are glad that you could participate in our call this morning and appreciate your interest in LSB Industries.
Today, I'll discuss our response to the COVID-19 crisis, what we're seeing in our end markets, and provide you with a sense for what our second quarter has looked like so far. Then, Cheryl will review our first quarter financials, discuss our current liquidity position, and provide some data points for use in thinking about our second quarter expectations. Then, I'll come back to wrap up.
I'd like to start out by thanking all of our employees for their hard work and dedication in the implementation and practice of the protocols and procedures that we put in place to ensure that LSB is able to sustain operations throughout the pandemic. Their efforts not only enabled the continuity of our operations over the course of this unprecedented period of time, but they did so safely and highly effectively.
In the first quarter, we were very successful in this regard with zero recordable injuries. Additionally, in April, our El Dorado facility reached a new milestone for two years without a loss time injury. I'm extremely proud of the team for these accomplishments and view it as a reflection of the strong safety culture we've developed across LSB over the past several years and that we work to continuously improve.
We were also extremely pleased with the level of production achieved by our plants, which led to an 8% year-over-year increase in overall sales volume, despite demand headwinds on both sides of our business. Our Pryor facility's UAN production increased almost 30% from the prior-year first quarter as a direct result of the new urea reactor we installed and other work that was performed on its urea plant during the 2019 fourth quarter. We also performed some optimization to El Dorado's ammonia plant for the fourth quarter of 2019, which led to a 99% ammonia onstream rate in the first quarter of 2020, and as we