LP Reports Fourth Quarter and Year End 2017 Results
-
Total net sales for the fourth quarter of
$711 million , 29 percent higher than the year ago quarter. Total net sales for the year were$2.7 billion , 22 percent higher than the previous year. -
Income from continuing operations for the fourth quarter was
$131 million ($0.89 per diluted share) and income of$391 million ($2.67 per diluted share) for the year. -
Non-GAAP adjusted income from continuing operations was
$107 million ($0.73 per diluted share) for the fourth quarter and income of$341 million ($2.33 per diluted share) for the year. -
Adjusted EBITDA from continuing operations for the fourth quarter was
$199 million compared to$85 million in the fourth quarter of 2016. For the year, Adjusted EBITDA from continuing operations was$667 million compared to$346 million the previous year.
“2017 was a strong year for LP, with double-digit growth across all of
our business segments,” said
FOURTH QUARTER RESULTS
For the quarter ended
YEAR END RESULTS
For the year ended
SIDING SEGMENT
The Siding segment consists of LP SmartSide® trim and siding, LP
CanExel® prefinished siding, as well as LP Outdoor Building Solutions®
innovative products for premium outdoor buildings. The Siding segment
reported net sales of
For the full year, Siding reported sales of
ORIENTED STRAND BOARD (OSB) SEGMENT
The OSB segment manufactures and distributes OSB structural panel
products including
For the full year, OSB reported sales of
ENGINEERED WOOD PRODUCTS SEGMENT (EWP)
The EWP segment is comprised of LP SolidStart® I-Joist (IJ), Laminated
Veneer Lumber (LVL) and Laminated Strand Lumber (LSL) and other related
products. The EWP segment reported net sales in the fourth quarter of
2017 totaling
For the full year, EWP reported sales of
The
For the full year,
COMPANY OUTLOOK
“Looking ahead, we expect housing demand to remain strong in 2018,” Southern said. “As LP looks to the future for new products, major trends such as urbanization and the continued shortage of skilled labor will influence our decisions. We remain focused on growing our specialty products business and are committed to producing value-added products and solutions that deliver distinct value for our customers, as well as our shareholders.”
About LP
FORWARD LOOKING STATEMENTS
This news release contains statements concerning
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) (UNAUDITED) |
|||||||||||||||||||||
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net sales | $ | 710.6 | $ | 550.0 | $ | 2,733.9 | $ | 2,233.4 | |||||||||||||
Operating costs and expenses: | |||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below) | 465.8 | 422.8 | 1,882.0 | 1,724.0 | |||||||||||||||||
Depreciation and amortization | 32.0 | 26.8 | 123.3 | 112.8 | |||||||||||||||||
Selling and administrative | 45.6 | 47.8 | 190.4 | 183.6 | |||||||||||||||||
(Gain) loss on sale or impairment of long-lived assets, net | 8.6 | (9.4 | ) | 6.8 | (8.4 | ) | |||||||||||||||
Other operating credits and charges, net | 3.5 | 6.0 | 8.0 | 17.4 | |||||||||||||||||
Total operating costs and expenses | 555.5 | 494.0 | 2,210.5 | 2,029.4 | |||||||||||||||||
Income (loss) from operations | 155.1 | 56.0 | 523.4 | 204.0 | |||||||||||||||||
Non-operating income (expense): | |||||||||||||||||||||
Interest expense, net of capitalized interest | (4.5 | ) | (5.8 | ) | (19.3 | ) | (32.1 | ) | |||||||||||||
Investment income | 3.3 | 1.8 | 10.5 | 8.2 | |||||||||||||||||
Other non-operating items | (2.0 | ) | (3.4 | ) | (4.4 | ) | (15.2 | ) | |||||||||||||
Total non-operating income (expense) | (3.2 | ) | (7.4 | ) | (13.2 | ) | (39.1 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes and equity in income of unconsolidated affiliates | 151.9 | 48.6 | 510.2 | 164.9 | |||||||||||||||||
Provision (benefit) for income taxes | 21.2 | 6.7 | 119.1 | 19.8 | |||||||||||||||||
Equity in income of unconsolidated affiliates | — | (0.8 | ) | — | (5.2 | ) | |||||||||||||||
Income (loss) from continuing operations | 130.7 | 42.7 | 391.1 | 150.3 | |||||||||||||||||
Loss from discontinued operations before taxes | (0.3 | ) | (0.8 | ) | (2.0 | ) | (0.8 | ) | |||||||||||||
Benefit for income taxes | (0.1 | ) | (0.3 | ) | (0.7 | ) | (0.3 | ) | |||||||||||||
Loss from discontinued operations | (0.2 | ) | (0.5 | ) | (1.3 | ) | (0.5 | ) | |||||||||||||
Net income (loss) | $ | 130.5 | $ | 42.2 | $ | 389.8 | $ | 149.8 | |||||||||||||
Net income (loss) per share of common stock (basic): | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.90 | $ | 0.30 | $ | 2.71 | $ | 1.05 | |||||||||||||
Loss from discontinued operations | — | (0.01 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||||
Net income (loss) per share - basic | $ | 0.90 | $ | 0.29 | $ | 2.70 | $ | 1.04 | |||||||||||||
Net income (loss) per share of common stock (diluted): | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.89 | $ | 0.29 | $ | 2.67 | $ | 1.03 | |||||||||||||
Loss from discontinued operations | — | — | (0.01 | ) | — | ||||||||||||||||
Net income (loss) per share - diluted | $ | 0.89 | $ | 0.29 | $ | 2.66 | $ | 1.03 | |||||||||||||
Weighted average shares of stock outstanding - basic | 144.6 | 143.7 | 144.4 | 143.4 | |||||||||||||||||
Weighted average shares of stock outstanding - diluted | 146.6 | 145.5 | 146.4 | 145.3 | |||||||||||||||||
CONSOLIDATED BALANCE SHEET | |||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | |||||||||||
(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | |||||||||||
(UNAUDITED) | |||||||||||
December 31, | |||||||||||
2017 | 2016 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 928.0 | $ | 659.3 | |||||||
Receivables, net of allowance for doubtful accounts of $0.9 million and $1.0 million at December 31, 2017 and 2016 | 142.5 | 108.3 | |||||||||
Inventories | 259.1 | 234.6 | |||||||||
Prepaid expenses and other current assets | 7.8 | 6.1 | |||||||||
Current portion of notes receivable from asset sales | 22.2 | — | |||||||||
Total current assets | 1,359.6 | 1,008.3 | |||||||||
Timber and timberlands | 55.7 | 53.5 | |||||||||
Property, plant and equipment | 2,586.1 | 2,468.4 | |||||||||
Accumulated depreciation | (1,660.0 | ) | (1,577.0 | ) | |||||||
Net property, plant and equipment | 926.1 | 891.4 | |||||||||
Goodwill and other intangible assets | 26.7 | 9.7 | |||||||||
Notes receivable from asset sales | — | 22.2 | |||||||||
Investments in and advances to affiliates | 7.8 | 6.2 | |||||||||
Restricted cash | 13.3 | 13.2 | |||||||||
Other assets | 56.8 | 22.4 | |||||||||
Deferred tax asset | 2.5 | 4.3 | |||||||||
Total assets | $ | 2,448.5 | $ | 2,031.2 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 25.1 | $ | 2.6 | |||||||
Accounts payable and accrued liabilities | 237.1 | 191.5 | |||||||||
Income taxes payable | 4.5 | 31.3 | |||||||||
Current portion of contingency reserves | 3.4 | 3.4 | |||||||||
Total current liabilities | 270.1 | 228.8 | |||||||||
Long-term debt, excluding current portion | 350.8 | 374.4 | |||||||||
Deferred income taxes | 33.4 | 27.7 | |||||||||
Contingency reserves, excluding current portion | 11.7 | 12.7 | |||||||||
Other long-term liabilities | 178.0 | 191.9 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock | 153.4 | 153.4 | |||||||||
Additional paid-in capital | 470.6 | 478.2 | |||||||||
Retained earnings | 1,280.1 | 890.3 | |||||||||
Treasury stock | (177.5 | ) | (189.0 | ) | |||||||
Accumulated comprehensive loss | (122.1 | ) | (137.2 | ) | |||||||
Total stockholders’ equity | 1,604.5 | 1,195.7 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,448.5 | $ | 2,031.2 | |||||||
CONDENSED CONSOLIDATED CASH FLOW STATEMENT | |||||||||||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
(Dollar amounts in millions) (Unaudited) | |||||||||||||||||||||
Quarter Ended |
Year Ended |
||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
Net income (loss) | $ | 130.5 | $ | 42.2 | $ | 389.8 | $ | 149.8 | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||
Depreciation and amortization | 32.0 | 26.8 | 123.3 | 112.8 | |||||||||||||||||
Equity in income (loss) of unconsolidated affiliates, including dividends | 0.4 | 1.2 | (0.8 | ) | 1.5 | ||||||||||||||||
Other operating credits and charges, net | 3.5 | 6.0 | 8.0 | 17.4 | |||||||||||||||||
(Gain) loss on sale or impairment of long-lived assets, net | 8.6 | (9.4 | ) | 6.8 | (8.4 | ) | |||||||||||||||
Loss on early debt extinguishment | — | 4.1 | — | 17.3 | |||||||||||||||||
Stock-based compensation related to stock plans | 1.7 | 3.6 | 9.7 | 13.0 | |||||||||||||||||
Exchange (gain) loss on remeasurement | 0.5 | (1.1 | ) | 2.1 | (2.0 | ) | |||||||||||||||
Cash settlements of warranty, net of accruals | (1.3 | ) | (2.2 | ) | (6.8 | ) | (13.6 | ) | |||||||||||||
Pension expense (payments), net of contributions | 2.1 | 2.3 | (1.8 | ) | 3.7 | ||||||||||||||||
Non-cash interest expense, net | 0.1 | 2.2 | 0.4 | 3.8 | |||||||||||||||||
Other adjustments, net | 0.6 | 0.2 | 0.1 | (1.1 | ) | ||||||||||||||||
Changes in assets and liabilities, net of acquisition: | |||||||||||||||||||||
(Increase) decrease in receivables | 26.9 | 28.1 | (35.0 | ) | (8.9 | ) | |||||||||||||||
Increase in inventories | (27.2 | ) | (7.8 | ) | (22.7 | ) | (11.0 | ) | |||||||||||||
Decrease in prepaid expenses | 1.1 | 2.9 | (1.6 | ) | 1.0 | ||||||||||||||||
Increase (decrease) in accounts payable and accrued liabilities | 9.7 | 0.5 | 22.5 | 53.8 | |||||||||||||||||
Increase (decrease) in deferred income taxes | (20.5 | ) | 2.4 | (20.3 | ) | 13.2 | |||||||||||||||
Net cash provided by operating activities | 168.7 | 102.0 | 473.7 | 342.3 | |||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Property, plant, and equipment additions | (67.9 | ) | (46.1 | ) | (148.6 | ) | (124.8 | ) | |||||||||||||
Proceeds from asset sales | — | 0.2 | 3.2 | 0.3 | |||||||||||||||||
Acquisition of businesses, net of cash acquired | (20.8 | ) | — | (20.8 | ) | — | |||||||||||||||
Receipt of proceeds from notes receivable from asset sales | — | 410.0 | — | 410.0 | |||||||||||||||||
Payment of long-term deposit | — | — | (32.0 | ) | — | ||||||||||||||||
(Increase) decrease in restricted cash under letters of credit | — | 1.3 | — | 1.2 | |||||||||||||||||
Decrease in restricted cash for redemption of long-term debt | — | 93.4 | — | — | |||||||||||||||||
Other investing activities, net | (0.6 | ) | (0.1 | ) | (0.4 | ) | (0.4 | ) | |||||||||||||
Net cash provided by (used in) investing activities | (89.3 | ) | 458.7 | (198.6 | ) | 286.3 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Borrowings of long-term debt | — | — | — | 350.0 | |||||||||||||||||
Repayment of long-term debt | (0.1 | ) | (459.8 | ) | (2.6 | ) | (742.5 | ) | |||||||||||||
Payment of debt issuance fees | (0.5 | ) | (0.2 | ) | (0.5 | ) | (5.2 | ) | |||||||||||||
Taxes paid related to net share settlement of equity awards | (0.6 | ) | (0.3 | ) | (5.9 | ) | (9.2 | ) | |||||||||||||
Sale of common stock, net of cash payments under equity plans | — | — | (0.4 | ) | (0.1 | ) | |||||||||||||||
Net cash provided (used in) in financing activities | (1.2 | ) | (460.3 | ) | (9.4 | ) | (407.0 | ) | |||||||||||||
Effect of exchange rate on cash and cash equivalents | 1.1 | (0.8 | ) | 3.0 | 3.0 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 79.3 | 99.6 | 268.7 | 224.6 | |||||||||||||||||
Cash and cash equivalents at beginning of year | 848.7 | 559.7 | 659.3 | 434.7 | |||||||||||||||||
Cash and cash equivalents at end of year | $ | 928.0 | $ | 659.3 | $ | 928.0 | $ | 659.3 | |||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||
(Dollar amounts in millions) (Unaudited) | |||||||||||||||||||||
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net sales: | |||||||||||||||||||||
Siding | $ | 212.8 | $ | 169.0 | $ | 884.0 | $ | 752.3 | |||||||||||||
OSB | 358.2 | 275.8 | 1,302.5 | 1,027.7 | |||||||||||||||||
Engineered Wood Products | 91.5 | 66.4 | 365.9 | 296.9 | |||||||||||||||||
South America | 40.5 | 33.7 | 155.3 | 136.9 | |||||||||||||||||
Other | 7.7 | 6.6 | 30.0 | 26.9 | |||||||||||||||||
Intersegment sales | (0.1 | ) | (1.5 | ) | (3.8 | ) | (7.3 | ) | |||||||||||||
$ | 710.6 | $ | 550.0 | $ | 2,733.9 | $ | 2,233.4 | ||||||||||||||
Operating profit (loss): | |||||||||||||||||||||
Siding | $ | 45.3 | $ | 22.2 | $ | 186.8 | $ | 126.1 | |||||||||||||
OSB | 136.3 | 59.5 | 425.7 | 186.2 | |||||||||||||||||
Engineered Wood Products | 2.9 | (3.8 | ) | 14.9 | (5.8 | ) | |||||||||||||||
South America | 7.9 | 1.7 | 24.3 | 17.0 | |||||||||||||||||
Other | (0.7 | ) | (0.6 | ) | (3.4 | ) | (1.6 | ) | |||||||||||||
Other operating credits and charges, net | (3.5 | ) | (6.0 | ) | (8.0 | ) | (17.4 | ) | |||||||||||||
Gain (loss) on sale or impairment of long-lived assets | (8.6 | ) | 9.4 | (6.8 | ) | 8.4 | |||||||||||||||
General corporate and other expenses, net | (24.5 | ) | (25.6 | ) | (110.1 | ) | (103.7 | ) | |||||||||||||
Interest expense, net of capitalized interest | (4.5 | ) | (5.8 | ) | (19.3 | ) | (32.1 | ) | |||||||||||||
Investment income | 3.3 | 1.8 | 10.5 | 8.2 | |||||||||||||||||
Other non-operating income (expense) |
(2.0 | ) | (3.4 | ) | (4.4 | ) | (15.2 | ) | |||||||||||||
Income (loss) from continuing operations before taxes | 151.9 | 49.4 | 510.2 | 170.1 | |||||||||||||||||
Provision (benefit) for income taxes | 21.2 | 6.7 | 119.1 | 19.8 | |||||||||||||||||
Income (loss) from continuing operations | $ | 130.7 | $ | 42.7 | $ | 391.1 | $ | 150.3 | |||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SUMMARY OF
PRODUCTION VOLUMES
The following table sets forth production volumes for the quarters and
years ended
Quarter Ended December 31, |
Year Ended December 31, |
||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Oriented strand board, million square feet 3/8" basis | 1,086 | 1,061 | 4,354 | 4,323 | |||||||
Oriented strand board, million square feet 3/8" basis (produced by North America non-OSB segment mills) |
62 | 43 | 306 | 219 | |||||||
Wood-based siding, million square feet 3/8" basis | 327 | 281 | 1,365 | 1,282 | |||||||
Engineered I-Joist, million lineal feet(1) | 21 | 17 | 87 | 78 | |||||||
Laminated veneer lumber (LVL), thousand cubic feet(1) | 2,117 | 1,491 | 8,069 | 6,844 | |||||||
Laminated strand lumber (LSL), thousand cubic feet | 862 | 562 | 3,275 | 2,708 |
(1) Includes volumes produced by joint venture operations or under sales arrangements and sold to LP.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180213005419/en/
Source:
Louisiana-Pacific Corporation
Media Relations:
Mark Morrison,
615-986-5886
or
Investor Relations:
Becky Barckley/Mike
Kinney, 615-986-5600