Supplementary Information

Quarterly Financial Data (unaudited)

Summarized unaudited quarterly financial data for 2015 and 2014 are as follows:

	Three months ended
	March 31		June 30		September 30			December 31
	(In Thousands, Except Per Share Amounts)
2015 (1) (2)
Net sales	$	198,798	$	192,345	$	163,617		$	157,021
Gross profit (3)	$	40,761	$	32,697	$	11,180		$	19,070
Income (loss) from continuing operations (3) (4) (5)	$	6,679	$	420	$	(33,759	)	$	(8,047	)
Net loss from discontinued operations		30		3		4			21
Net income (loss)	$	6,649	$	417	$	(33,763	)	$	(8,068	)
Net income (loss) attributable to common stockholders	$	6,349	$	417	$	(33,763	)	$	(11,041	)

Income (loss) per common share:
Basic:
Income (loss) from continuing operations	$	0.28	$	0.02	$	(1.48	)	$	(0.48	)
Net loss from discontinued operations		—		—		—			—
Net income (loss)	$	0.28	$	0.02	$	(1.48	)	$	(0.48	)

Diluted:
Income (loss) from continuing operations	$	0.28	$	0.02	$	(1.48	)	$	(0.48	)
Net loss from discontinued operations		—		—		—			—
Net income (loss)	$	0.28	$	0.02	$	(1.48	)	$	(0.48	)

2014 (1) (2)
Net sales	$	185,382	$	210,746	$	177,860		$	187,258
Gross profit (3)	$	47,433	$	47,445	$	22,942		$	30,054
Income (loss) from continuing operations (3) (4) (5)	$	11,643	$	11,134	$	(3,772	)	$	718
Net loss from discontinued operations		2		21		5			61
Net income (loss)	$	11,641	$	11,113	$	(3,777	)	$	657
Net income (loss) attributable to common stockholders	$	11,341	$	11,113	$	(3,777	)	$	657

Income (loss) per common share:
Basic:
Income (loss) from continuing operations	$	0.50	$	0.49	$	(0.17	)	$	0.03
Net loss from discontinued operations		—		—		—			—
Net income (loss)	$	0.50	$	0.49	$	(0.17	)	$	0.03

Diluted:
Income (loss) from continuing operations	$	0.49	$	0.47	$	(0.17	)	$	0.03
Net loss from discontinued operations		—		—		—			—
Net income (loss)	$	0.49	$	0.47	$	(0.17	)	$	0.03

LSB Industries, Inc.

Supplementary Financial Data

Quarterly Financial Data (Unaudited)

(1)

As discussed in Note 1 to Consolidated Financial Statements, prior periods have been adjusted relating to certain shipping and handling costs in our Chemical Business segment. The following table reconciles net sales and gross profit as previously reported (these adjustments did not impact income (loss) from continuing operation:

	Three months ended
	March 31			June 30			September 30			December 31
	(In Thousands)
Net sales:
2015:
As previously reported	$	193,858		$	182,659		$	157,685		N/A
Adjustments	$	4,940		$	9,686		$	5,932
As adjusted	$	198,798		$	192,345		$	163,617
2014:
As previously reported	$	178,525		$	201,662		$	171,046		$	181,277
Adjustments	$	6,857		$	9,084		$	6,814		$	5,981
As adjusted	$	185,382		$	210,746		$	177,860		$	187,258

Gross profit:
2015:
As previously reported	$	42,359		$	34,882		$	13,279		N/A
Adjustments	$	(1,598	)	$	(2,185	)	$	(2,099	)
As adjusted	$	40,761		$	32,697		$	11,180
2014:
As previously reported	$	48,722		$	48,869		$	24,386		$	31,378
Adjustments	$	(1,289	)	$	(1,424	)	$	(1,444	)	$	(1,324	)
As adjusted	$	47,433		$	47,445		$	22,942		$	30,054

(2)

Our Chemical Business has encountered a number of significant issues that impacted 2015 and 2014, including the impact on production relating to an explosion in one of our nitric acid plants at the El Dorado Facility in May 2012, which replacement construction was completed during 2015, unplanned downtime at the Cherokee Facility, and numerous mechanical issues at the Pryor Facility, all resulting in lost production and significant adverse effect on 2015 and 2014 operating results.

LSB Industries, Inc.

Supplementary Financial Data

Quarterly Financial Data (Unaudited)

(3)	The following income (expense) items impacted gross profit and income (loss) from continuing operations:

	Three months ended
	March 31			June 30			September 30			December 31
	(In Thousands)
Business interruption insurance recoveries:
2014	$	22,836		$	—		$	—		$	—

Undesignated commodities contracts:
2015	$	(1,978	)	$	(70	)	$	(1,526	)	$	(719	)

2014	$	2,216		$	(105	)	$	(214	)	$	(3,095	)

Turnaround costs: (A)
2015	$	(152	)	$	—		$	(2,101	)	$	(55	)

2014	$	(330	)	$	(840	)	$	(5,215	)	$	(105	)

(4)	The following income items impacted income (loss) from continuing operations:

Property insurance recoveries:
2014		$	5,147			$	—			$	—			$	—

(5)	The following expense items impacted income (loss) from continuing operations:

Impairment of long lived assets
2015	$	—	$	—	$	39,670	$	3,518

Shareholder related fees and expenses primarily relating to certain activist shareholders' proposals:
2015	$	1,679	$	2,655	$	113	$	155

2014	$	4,200	$	262	$	230	$	151

Interest expense, net:
2015	$	3,398	$	2,230	$	877	$	876

2014	$	6,708	$	5,671	$	5,079	$	4,141

Severance agreements with certain former executives
2015	$	—		—	$	1,789	$	224

(A)	Turnaround costs do not include the impact on operating results relating to lost absorption or reduced margins due to the associated plants being shut down.