LP Reports Second Quarter 2017 Results
-
Sales for the second quarter of
$694 million were higher by 19 percent compared to the year ago quarter. -
Net income was
$95 million ($0.65 per diluted share). -
Non-GAAP adjusted income from operations was
$84 million ($0.58 per diluted share). -
Adjusted EBITDA for the second quarter was
$164 million compared to$99 million in the second quarter of 2016. -
Cash and cash equivalents were
$740 million as ofJune 30, 2017 .
“LP’s strong financial results were driven by improved demand for our
products and higher OSB pricing,” Chief Executive Officer
“I’m pleased to start my tenure as CEO on such a positive note,” added
Southern, who became LP’s fifth CEO on
SECOND QUARTER RESULTS
For the second quarter of 2017, LP reported net sales of
YEAR TO DATE RESULTS
For the six months ended
SIDING SEGMENT
LP’s Siding segment consists of SmartSide® siding as well as LP’s
prefinished CanExel® siding line and a minor amount of OSB. These
products are used in new construction, repair and remodeling and
non-residential markets. The Siding segment reported net sales of
For the first six months, Siding reported sales of
ORIENTED STRAND BOARD (OSB) SEGMENT
LP’s OSB segment manufactures and distributes OSB structural panel
products. The OSB segment reported net sales of
For the first six months, OSB reported sales of
ENGINEERED WOOD PRODUCTS SEGMENT (EWP)
The EWP segment is comprised of I-Joist (IJ), Laminated Veneer Lumber
and Laminated Strand Lumber (LVL and LSL). EWP reported net sales of
For the first six months, EWP reported sales of
SOUTH AMERICA SEGMENT
The South American segment consists of facilities in
For the first six months,
COMPANY OUTLOOK
“Despite concerns about lot availability and labor shortages constraining new construction, we are encouraged by the year-over-year increase in single-family starts,” Southern said. “In the second half of the year, we will remain focused on sustainable improvements and growth in all of our businesses, including continued siding growth and launching of new specialty products.”
About LP
FORWARD LOOKING STATEMENTS
This news release contains statements concerning
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES FINANCIAL AND QUARTERLY DATA (Dollar amounts in millions, except per share amounts) (Unaudited) |
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Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Net sales | $ | 694.1 | $ | 582.4 | $ | 1,305.0 | $ | 1,087.0 | |||||||||||
Income from operations | $ | 132.9 | $ | 52.2 | $ | 205.6 | $ | 71.1 | |||||||||||
Income before taxes and equity in income of unconsolidated affiliates | $ | 128.8 | $ | 46.4 | $ | 198.2 | $ | 59.6 | |||||||||||
Non-GAAP adjusted income | $ | 84.1 | $ | 40.0 | $ | 132.5 | $ | 49.5 | |||||||||||
Net income | $ | 94.5 | $ | 31.7 | $ | 149.5 | $ | 42.0 | |||||||||||
Net income per share - diluted | $ | 0.65 | $ | 0.22 | $ | 1.02 | $ | 0.29 | |||||||||||
Weighted average shares of common stock outstanding - diluted | 146.2 | 145.2 | 146.0 | 145.1 | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES (Dollar amounts in millions, except per share amounts) (Unaudited) |
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Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Net sales | $ | 694.1 | $ | 582.4 | $ | 1,305.0 | $ | 1,087.0 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of sales | 485.7 | 443.1 | 940.7 | 858.6 | ||||||||||||||||
Depreciation and amortization | 29.6 | 28.5 | 60.2 | 56.4 | ||||||||||||||||
Selling and administrative | 47.0 | 46.5 | 95.6 | 88.8 | ||||||||||||||||
(Gain) Loss on sale or impairment of long-lived assets, net | (3.1 | ) | 0.7 | (2.5 | ) | 0.7 | ||||||||||||||
Other operating credits and charges, net | 2.0 | 11.4 | 5.4 | 11.4 | ||||||||||||||||
Total operating costs and expenses |
561.2 | 530.2 | 1,099.4 | 1,015.9 | ||||||||||||||||
Income from operations | 132.9 | 52.2 | 205.6 | 71.1 | ||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||||
Interest expense, net of capitalized interest | (4.9 | ) | (9.3 | ) | (9.9 | ) | (17.3 | ) | ||||||||||||
Investment income | 2.3 | 2.1 | 4.3 | 3.9 | ||||||||||||||||
Other non-operating items | (1.5 | ) | 1.4 | (1.8 | ) | 1.9 | ||||||||||||||
Total non-operating income (expense) | (4.1 | ) | (5.8 | ) | (7.4 | ) | (11.5 | ) | ||||||||||||
Income before taxes and equity in income of unconsolidated affiliates | 128.8 | 46.4 | 198.2 | 59.6 | ||||||||||||||||
Provision for income taxes | 36.0 | 16.2 | 51.5 | 20.6 | ||||||||||||||||
Equity in income of unconsolidated affiliates | (1.7 | ) | (1.5 | ) | (2.8 | ) | (3.0 | ) | ||||||||||||
Net income | $ | 94.5 | $ | 31.7 | $ | 149.5 | $ | 42.0 | ||||||||||||
Net income per share of common stock: | ||||||||||||||||||||
Net income per share - basic | $ | 0.65 | $ | 0.22 | $ | 1.04 | $ | 0.29 | ||||||||||||
Net income per share - diluted | $ | 0.65 | $ | 0.22 | $ | 1.02 | $ | 0.29 | ||||||||||||
Weighted average shares of stock outstanding - basic | 144.5 | 143.4 | 144.3 | 143.1 | ||||||||||||||||
Weighted average shares of stock outstanding - diluted | 146.2 | 145.2 | 146.0 | 145.1 | ||||||||||||||||
CONSOLIDATED BALANCE SHEETS LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES (Dollar amounts in millions) (Unaudited) |
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June 30, 2017 | December 31, 2016 | |||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ | 740.0 | $ | 659.3 | ||||||
Receivables, net of allowance for doubtful accounts of $1.0 million at June 30, 2017 and December 31, 2016 | 153.8 | 108.3 | ||||||||
Inventories | 221.7 | 234.6 | ||||||||
Prepaid expenses and other current assets | 9.3 | 6.1 | ||||||||
Current portion of notes receivable from asset sales | 22.2 | — | ||||||||
Assets held for sale | 8.7 | 8.2 | ||||||||
Total current assets | 1,155.7 | 1,016.5 | ||||||||
Timber and timberlands | 52.6 | 53.5 | ||||||||
Property, plant and equipment | 2,436.2 | 2,410.8 | ||||||||
Accumulated depreciation | (1,569.4 | ) | (1,527.6 | ) | ||||||
Property, plant and equipment, net | 866.8 | 883.2 | ||||||||
Goodwill | 9.7 | 9.7 | ||||||||
Notes receivable from asset sales | — | 22.2 | ||||||||
Investments in and advances to affiliates | 7.2 | 6.2 | ||||||||
Restricted cash | 13.2 | 13.2 | ||||||||
Other assets | 56.1 | 22.4 | ||||||||
Long-term deferred tax asset | 1.5 | 4.3 | ||||||||
Total assets | $ | 2,162.8 | $ | 2,031.2 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current portion of long-term debt | $ | 1.5 | $ | 2.6 | ||||||
Current portion of limited recourse notes payable | 22.0 | — | ||||||||
Accounts payable and accrued liabilities | 203.7 | 222.8 | ||||||||
Current portion of contingency reserves | 3.4 | 3.4 | ||||||||
Total current liabilities | 230.6 | 228.8 | ||||||||
Long-term debt, excluding current portion | 352.6 | 374.4 | ||||||||
Deferred income taxes | 37.5 | 27.7 | ||||||||
Contingency reserves, excluding current portion | 12.4 | 12.7 | ||||||||
Other long-term liabilities | 181.3 | 191.9 | ||||||||
Stockholders’ equity: | ||||||||||
Common stock | 153.4 | 153.4 | ||||||||
Additional paid-in capital | 475.2 | 478.2 | ||||||||
Retained earnings | 1,039.8 | 890.3 | ||||||||
Treasury stock | (179.2 | ) | (189.0 | ) | ||||||
Accumulated comprehensive loss | (140.8 | ) | (137.2 | ) | ||||||
Total stockholders’ equity | 1,348.4 | 1,195.7 | ||||||||
Total liabilities and stockholders’ equity | $ | 2,162.8 | $ | 2,031.2 | ||||||
CONSOLIDATED CASH FLOW STATEMENT LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES (Dollar amounts in millions) (Unaudited) |
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Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net income | $ | 94.5 | $ | 31.7 | $ | 149.5 | $ | 42.0 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 29.6 | 28.5 | 60.2 | 56.4 | ||||||||||||||||
Equity in income of unconsolidated affiliates, including dividends | (0.4 | ) | (0.2 | ) | (1.0 | ) | 0.3 | |||||||||||||
(Gain) loss on sale or impairment of long-lived assets, net | (3.1 | ) | 0.7 | (2.5 | ) | 0.7 | ||||||||||||||
Other operating credits and charges, net | 2.0 | 11.4 | 5.4 | 11.4 | ||||||||||||||||
Stock-based compensation related to stock plans | 1.9 | 3.2 | 6.0 | 6.2 | ||||||||||||||||
Exchange (gain) loss on remeasurement | 1.5 | (0.8 | ) | 1.7 | (0.7 | ) | ||||||||||||||
Cash settlements of warranties, net of accruals | (2.4 | ) | (3.3 | ) | (5.6 | ) | (6.8 | ) | ||||||||||||
Pension expense, net of contributions | (2.1 | ) | 1.0 | (0.7 | ) | 1.4 | ||||||||||||||
Non-cash interest (income) expense, net | 0.1 | (0.2 | ) | 0.2 | 0.2 | |||||||||||||||
Other adjustments, net | (0.6 | ) | (0.4 | ) | (0.3 | ) | (0.7 | ) | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Increase in receivables | (5.1 | ) | (3.3 | ) | (44.8 | ) | (51.1 | ) | ||||||||||||
(Increase) decrease in inventories | 37.8 | 18.9 | 13.0 | (8.0 | ) | |||||||||||||||
Increase in prepaid expenses | (2.7 | ) | (3.7 | ) | (3.3 | ) | (2.6 | ) | ||||||||||||
Increase (decrease) in accounts payable and accrued liabilities | 14.6 | 10.3 | (5.3 | ) | 36.3 | |||||||||||||||
Increase (decrease) in income taxes | (24.8 | ) | 15.3 | (10.9 | ) | 19.2 | ||||||||||||||
Net cash provided by operating activities | 140.8 | 109.1 | 161.6 | 104.2 | ||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Property, plant and equipment additions | (19.6 | ) | (24.8 | ) | (45.7 | ) | (51.1 | ) | ||||||||||||
Proceeds from sales of assets | 3.2 | 0.1 | 3.2 | 0.1 | ||||||||||||||||
Increase in restricted cash under letters of credit/credit facility | — | (0.3 | ) | — | (0.3 | ) | ||||||||||||||
Payment of long-term deposit | (32.0 | ) | — | (32.0 | ) | — | ||||||||||||||
Other financing activities | (0.1 | ) | (0.3 | ) | — | (0.2 | ) | |||||||||||||
Net cash used in investing activities | (48.5 | ) | (25.3 | ) | (74.5 | ) | (51.5 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Repayment of long-term debt | (0.1 | ) | (6.8 | ) | (1.3 | ) | (7.9 | ) | ||||||||||||
Sale of common stock, net of cash payments under equity plans | (0.8 | ) | (0.2 | ) | (0.4 | ) | (0.1 | ) | ||||||||||||
Taxes paid related to net share settlement of equity awards | (0.1 | ) | (7.2 | ) | (4.8 | ) | (8.1 | ) | ||||||||||||
Net cash used in financing activities | (1.0 | ) | (14.2 | ) | (6.5 | ) | (16.1 | ) | ||||||||||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | (0.8 | ) | 1.0 | 0.1 | 3.5 | |||||||||||||||
Net increase in cash and cash equivalents | 90.5 | 70.6 | 80.7 | 40.1 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 649.5 | 404.2 | 659.3 | 434.7 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 740.0 | $ | 474.8 | $ | 740.0 | $ | 474.8 | ||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES SELECTED SEGMENT INFORMATION (Dollar amounts in millions) (Unaudited) |
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Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
Dollar amounts in millions | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Net sales: | ||||||||||||||||||||
Siding | $ | 231.0 | $ | 207.2 | $ | 445.0 | $ | 388.5 | ||||||||||||
OSB | 325.0 | 252.8 | 593.4 | 469.8 | ||||||||||||||||
EWP | 94.2 | 78.0 | 176.3 | 149.8 | ||||||||||||||||
South America | 38.7 | 41.0 | 76.5 | 71.5 | ||||||||||||||||
Other | 7.1 | 6.6 | 15.8 | 12.7 | ||||||||||||||||
Intersegment sales | (1.9 | ) | (3.2 | ) | (2.0 | ) | (5.3 | ) | ||||||||||||
$ | 694.1 | $ | 582.4 | $ | 1,305.0 | $ | 1,087.0 | |||||||||||||
Operating profit (loss): | ||||||||||||||||||||
Siding | $ | 48.5 | $ | 41.8 | $ | 88.7 | $ | 68.7 | ||||||||||||
OSB | 102.6 | 44.0 | 163.0 | 59.3 | ||||||||||||||||
EWP | 5.1 | 0.5 | 5.7 | (2.0 | ) | |||||||||||||||
South America | 5.5 | 6.9 | 10.6 | 12.0 | ||||||||||||||||
Other | (0.9 | ) | (0.2 | ) | (1.1 | ) | (0.6 | ) | ||||||||||||
Other operating credits and charges, net | (2.0 | ) | (11.4 | ) | (5.4 | ) | (11.4 | ) | ||||||||||||
Gain (loss) on sale or impairment of long-lived assets, net | 3.1 | (0.7 | ) | 2.5 | (0.7 | ) | ||||||||||||||
General corporate and other expenses, net | (27.3 | ) | (27.2 | ) | (55.6 | ) | (51.2 | ) | ||||||||||||
Interest expense, net of capitalized interest | (4.9 | ) | (9.3 | ) | (9.9 | ) | (17.3 | ) | ||||||||||||
Investment income | 2.3 | 2.1 | 4.3 | 3.9 | ||||||||||||||||
Other non-operating items | (1.5 | ) | 1.4 | (1.8 | ) | 1.9 | ||||||||||||||
Income from operations before taxes | 130.5 | 47.9 | 201.0 | 62.6 | ||||||||||||||||
Provision for income taxes | 36.0 | 16.2 | 51.5 | 20.6 | ||||||||||||||||
Net income | $ | 94.5 | $ | 31.7 | $ | 149.5 | $ | 42.0 | ||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES SUMMARY OF PRODUCTION VOLUMES |
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The following table sets forth production volumes for the quarter and six months ended June 30, 2017 and 2016. |
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Quarter Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Wood-based siding, million square feet 3/8" basis | 335 | 354 | 684 | 685 | |||||||||||
Oriented strand board, million square feet 3/8" basis | 1,098 | 1,095 | 2,153 | 2,146 | |||||||||||
Oriented strand board, million square feet 3/8" basis (produced by North America non-OSB segment mills) | 95 | 74 | 162 | 137 | |||||||||||
Engineered I-Joist, million lineal feet (1) | 24 | 21 | 45 | 39 | |||||||||||
Laminated veneer lumber (LVL) and laminated strand lumber (LSL), million cubic feet (1) (2) | 3.0 | 2.6 | 5.8 | 5.1 | |||||||||||
(1) Includes purchases of products from joint ventures or purchased under contract manufacturing arrangements. |
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(2) Includes LVL and LSL production which is used in the production of I-Joist as well as sold as end products. |
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170801005357/en/
Source:
Louisiana-Pacific Corporation
Media Relations
Mark Morrison,
615-986-5886
or
Investor Relations
Becky Barckley,
615-986-5600
or
Mike Kinney, 615-986-5600