LP Reports Third Quarter 2017 Results
-
Sales for the third quarter of
$718 million were higher by 20 percent compared to the year ago quarter. -
Income from continuing operations was
$111 million ($0.76 per diluted share) compared to$66 million ($0.45 per diluted share) in the third quarter of 2016. -
Non-GAAP adjusted income from continuing operations was
$102 million ($0.70 per diluted share). -
Adjusted EBITDA from continuing operations for the third quarter was
$192 million compared to$111 million in the third quarter of 2016.
“We had our strongest third quarter performance in 12 years,” said
THIRD QUARTER RESULTS
For the third quarter of 2017, LP reported net sales of
YEAR TO DATE RESULTS
For the nine 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 nine 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 nine 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 nine months, EWP reported sales of
SOUTH AMERICA SEGMENT
The South American segment consists of facilities in
For the first nine months,
COMPANY OUTLOOK
“We continue to be optimistic about the housing recovery and believe the upward trend in single family starts will continue,” Southern said. “As we move forward, we remain committed to and focused on growing our specialty products and improving operating margins in our commodity businesses.”
FORWARD LOOKING STATEMENTS
This news release contains statements concerning
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | ||||||||||||||||
(Dollar amounts in millions, except per share amounts) (Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net sales | $ | 718.3 | $ | 596.4 | $ | 2,023.3 | $ | 1,683.4 | ||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of sales | 479.3 | 442.6 | 1,420.1 | 1,301.2 | ||||||||||||
Depreciation and amortization | 31.1 | 29.6 | 91.3 | 86.0 | ||||||||||||
Selling and administrative | 49.2 | 47.0 | 144.8 | 135.8 | ||||||||||||
(Gain) Loss on sale or impairment of long-lived assets, net | 0.7 | 0.3 | (1.8 | ) | 1.0 | |||||||||||
Other operating credits and charges, net | (0.9 | ) | — | 4.5 | 11.4 | |||||||||||
Total operating costs and expenses | 559.4 | 519.5 | 1,658.9 | 1,535.4 | ||||||||||||
Income from operations | 158.9 | 76.9 | 364.4 | 148.0 | ||||||||||||
Non-operating income (expense): | ||||||||||||||||
Interest expense, net of capitalized interest | (4.9 | ) | (9.0 | ) | (14.8 | ) | (26.3 | ) | ||||||||
Investment income | 2.9 | 2.5 | 7.2 | 6.4 | ||||||||||||
Loss on early debt extinguishment | — | (13.2 | ) | — | (13.2 | ) | ||||||||||
Other non-operating items | (0.6 | ) | (0.5 | ) | (2.4 | ) | 1.4 | |||||||||
Total non-operating income (expense) | (2.6 | ) | (20.2 | ) | (10.0 | ) | (31.7 | ) | ||||||||
Income from continuing operations before taxes and equity in income of unconsolidated affiliates | 156.3 | 56.7 | 354.4 | 116.3 | ||||||||||||
Provision for income taxes | 46.4 | (7.5 | ) | 97.9 | 13.1 | |||||||||||
Equity in income of unconsolidated affiliates | (1.0 | ) | (1.4 | ) | (3.8 | ) | (4.4 | ) | ||||||||
Income from continuing operations | 110.9 | 65.6 | 260.3 | 107.6 | ||||||||||||
Loss from discontinued operation before taxes | (1.7 | ) | — | (1.7 | ) | — | ||||||||||
Benefit for income taxes | (0.6 | ) | — | (0.6 | ) | — | ||||||||||
Loss from discontinued operations | (1.1 | ) | — | (1.1 | ) | — | ||||||||||
Net income | $ | 109.8 | $ | 65.6 | $ | 259.2 | $ | 107.6 | ||||||||
Basic net income per share of common stock: | ||||||||||||||||
Income from continuing operations | $ | 0.77 | $ | 0.46 | $ | 1.80 | $ | 0.75 | ||||||||
Loss from discontinued operations | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
Net income per share | $ | 0.76 | $ | 0.46 | $ | 1.79 | $ | 0.75 | ||||||||
Diluted net income per share of common stock: | ||||||||||||||||
Income from continuing operations | $ | 0.76 | $ | 0.45 | $ | 1.78 | $ | 0.74 | ||||||||
Loss from discontinued operations | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
Net income per share | $ | 0.75 | $ | 0.45 | $ | 1.77 | $ | 0.74 | ||||||||
Weighted average shares of stock outstanding - basic | 144.5 | 143.7 | 144.4 | 143.3 | ||||||||||||
Weighted average shares of stock outstanding - diluted | 146.5 | 145.4 | 146.3 | 145.2 | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | ||||||||
(Dollar amounts in millions) (Unaudited) | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 848.7 | $ | 659.3 | ||||
Receivables, net of allowance for doubtful accounts of $1.0 million at September 30, 2017 and December 31, 2016 | 171.4 | 108.3 | ||||||
Inventories | 231.0 | 234.6 | ||||||
Prepaid expenses and other current assets | 8.8 | 6.1 | ||||||
Current portion of notes receivable from asset sales | 22.2 | — | ||||||
Assets held for sale | 8.7 | 8.2 | ||||||
Total current assets | 1,290.8 | 1,016.5 | ||||||
Timber and timberlands | 55.6 | 53.5 | ||||||
Property, plant and equipment | 2,472.3 | 2,410.8 | ||||||
Accumulated depreciation | (1,599.6 | ) | (1,527.6 | ) | ||||
Property, plant and equipment, net | 872.7 | 883.2 | ||||||
Goodwill | 9.7 | 9.7 | ||||||
Notes receivable from asset sales | — | 22.2 | ||||||
Investments in and advances to affiliates | 7.4 | 6.2 | ||||||
Restricted cash | 13.2 | 13.2 | ||||||
Other assets | 57.2 | 22.4 | ||||||
Long-term deferred tax asset | 1.4 | 4.3 | ||||||
Total assets | $ | 2,308.0 | $ | 2,031.2 | ||||
LIABILITIES AND EQUITY | ||||||||
Current portion of long-term debt | $ | 0.5 | $ | 2.6 | ||||
Current portion of limited recourse notes payable | 22.0 | — | ||||||
Accounts payable and accrued liabilities | 212.5 | 191.5 | ||||||
Income taxes payable | 7.4 | 31.3 | ||||||
Current portion of contingency reserves | 3.4 | 3.4 | ||||||
Total current liabilities | 245.8 | 228.8 | ||||||
Long-term debt, excluding current portion | 353.0 | 374.4 | ||||||
Deferred income taxes | 51.3 | 27.7 | ||||||
Contingency reserves, excluding current portion | 12.3 | 12.7 | ||||||
Other long-term liabilities | 180.3 | 191.9 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 153.4 | 153.4 | ||||||
Additional paid-in capital | 470.0 | 478.2 | ||||||
Retained earnings | 1,149.5 | 890.3 | ||||||
Treasury stock | (178.2 | ) | (189.0 | ) | ||||
Accumulated comprehensive loss | (129.4 | ) | (137.2 | ) | ||||
Total stockholders’ equity | 1,465.3 | 1,195.7 | ||||||
Total liabilities and stockholders’ equity | $ | 2,308.0 | $ | 2,031.2 | ||||
CONSOLIDATED CASH FLOW STATEMENT | ||||||||||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | ||||||||||||||||
(Dollar amounts in millions) (Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | $ | 109.8 | $ | 65.6 | $ | 259.2 | $ | 107.6 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 31.1 | 29.6 | 91.3 | 86.0 | ||||||||||||
Equity in income of unconsolidated affiliates, including dividends | (0.2 | ) | — | (1.2 | ) | 0.3 | ||||||||||
(Gain) loss on sale or impairment of long-lived assets, net | 0.7 | 0.3 | (1.8 | ) | 1.0 | |||||||||||
Loss on early debt extinguishment | — | 13.2 | — | 13.2 | ||||||||||||
Other operating credits and charges, net | (0.9 | ) | — | 4.5 | 11.4 | |||||||||||
Stock-based compensation related to stock plans | 2.0 | 3.2 | 8.0 | 9.4 | ||||||||||||
Exchange (gain) loss on remeasurement | (0.1 | ) | (0.2 | ) | 1.6 | (0.9 | ) | |||||||||
Cash settlements of warranties, net of accruals | 0.1 | (4.6 | ) | (5.5 | ) | (11.4 | ) | |||||||||
Pension expense, net of contributions | (3.2 | ) | — | (3.9 | ) | 1.4 | ||||||||||
Non-cash interest expense, net | 0.1 | 1.4 | 0.3 | 1.6 | ||||||||||||
Other adjustments, net | (0.2 | ) | (0.6 | ) | (0.4 | ) | (1.3 | ) | ||||||||
Changes in assets and liabilities: | ||||||||||||||||
(Increase) decrease in receivables | (17.1 | ) | 14.1 | (61.9 | ) | (37.0 | ) | |||||||||
(Increase) decrease in inventories | (8.5 | ) | 4.8 | 4.5 | (3.2 | ) | ||||||||||
(Increase) decrease in prepaid expenses | 0.6 | 0.7 | (2.7 | ) | (1.9 | ) | ||||||||||
Increase in accounts payable and accrued liabilities | 18.1 | 17.8 | 12.8 | 59.5 | ||||||||||||
Increase (decrease) in income taxes | 11.1 | (9.2 | ) | 0.2 | 4.6 | |||||||||||
Net cash provided by operating activities | 143.4 | 136.1 | 305.0 | 240.3 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Property, plant and equipment additions | (35.0 | ) | (27.6 | ) | (80.7 | ) | (78.7 | ) | ||||||||
Proceeds from sales of assets | 0.1 | — | 3.3 | — | ||||||||||||
(Increase) decrease in restricted cash under letters of credit | — | 0.2 | — | (0.1 | ) | |||||||||||
Increase in restricted cash for redemption of long-term debt | — | (93.4 | ) | — | (93.4 | ) | ||||||||||
Payment of long-term deposit | — | — | (32.0 | ) | — | |||||||||||
Other financing activities | 0.1 | (0.1 | ) | 0.1 | (0.2 | ) | ||||||||||
Net cash used in investing activities | (34.8 | ) | (120.9 | ) | (109.3 | ) | (172.4 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Borrowings of long-term debt | — | 350.0 | — | 350.0 | ||||||||||||
Repayment of long-term debt | (1.2 | ) | (274.8 | ) | (2.5 | ) | (282.7 | ) | ||||||||
Payment of debt issuance fees | — | (5.0 | ) | — | (5.0 | ) | ||||||||||
Sale of common stock, net of cash payments under equity plans | — | — | (0.4 | ) | (0.1 | ) | ||||||||||
Taxes paid related to net share settlement of equity awards | (0.5 | ) | (0.8 | ) | (5.3 | ) | (8.9 | ) | ||||||||
Net cash provided by (used in) financing activities | (1.7 | ) | 69.4 | (8.2 | ) | 53.3 | ||||||||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 1.8 | 0.3 | 1.9 | 3.8 | ||||||||||||
Net increase in cash and cash equivalents | 108.7 | 84.9 | 189.4 | 125.0 | ||||||||||||
Cash and cash equivalents at beginning of period | 740.0 | 474.8 | 659.3 | 434.7 | ||||||||||||
Cash and cash equivalents at end of period | $ | 848.7 | $ | 559.7 | $ | 848.7 | $ | 559.7 | ||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | ||||||||||||||||
SELECTED SEGMENT INFORMATION | ||||||||||||||||
(Dollar amounts in millions) (Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Dollar amounts in millions | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales: | ||||||||||||||||
Siding | $ | 226.2 | $ | 194.8 | $ | 671.2 | $ | 583.3 | ||||||||
OSB | 350.9 | 282.1 | 944.3 | 751.9 | ||||||||||||
EWP | 98.1 | 80.7 | 274.4 | 230.5 | ||||||||||||
South America | 38.3 | 31.7 | 114.8 | 103.2 | ||||||||||||
Other | 6.5 | 7.6 | 22.3 | 20.3 | ||||||||||||
Intersegment sales | (1.7 | ) | (0.5 | ) | (3.7 | ) | (5.8 | ) | ||||||||
$ | 718.3 | $ | 596.4 | $ | 2,023.3 | $ | 1,683.4 | |||||||||
Operating profit (loss): | ||||||||||||||||
Siding | $ | 52.8 | $ | 35.2 | $ | 141.5 | $ | 103.9 | ||||||||
OSB | 126.4 | 67.4 | 289.4 | 126.7 | ||||||||||||
EWP | 6.3 | — | 12.0 | (2.0 | ) | |||||||||||
South America | 5.8 | 3.3 | 16.4 | 15.3 | ||||||||||||
Other | (1.6 | ) | (0.4 | ) | (2.7 | ) | (1.0 | ) | ||||||||
Other operating credits and charges, net | 0.9 | — | (4.5 | ) | (11.4 | ) | ||||||||||
Gain (loss) on sale or impairment of long-lived assets, net | (0.7 | ) | (0.3 | ) | 1.8 | (1.0 | ) | |||||||||
General corporate and other expenses, net | (30.0 | ) | (26.9 | ) | (85.7 | ) | (78.1 | ) | ||||||||
Interest expense, net of capitalized interest | (4.9 | ) | (9.0 | ) | (14.8 | ) | (26.3 | ) | ||||||||
Investment income | 2.9 | 2.5 | 7.2 | 6.4 | ||||||||||||
Loss on early debt extinguishment | — | (13.2 | ) | — | (13.2 | ) | ||||||||||
Other non-operating items | (0.6 | ) | (0.5 | ) | (2.4 | ) | 1.4 | |||||||||
Income from operations before taxes | 157.3 | 58.1 | 358.2 | 120.7 | ||||||||||||
Provision for income taxes | 46.4 | (7.5 | ) | 97.9 | 13.1 | |||||||||||
Income from continuing operations | $ | 110.9 | $ | 65.6 | $ | 260.3 | $ | 107.6 | ||||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES | |||||||||||
SUMMARY OF PRODUCTION VOLUMES | |||||||||||
The following table sets forth production volumes for the quarter and nine months ended September 30, 2017 and 2016. |
|||||||||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Oriented strand board, million square feet 3/8" basis | 1,116 | 1,116 | 3,269 | 3,262 | |||||||
Oriented strand board, million square feet 3/8" basis (produced by North America non-OSB segment mills) | 83 | 63 | 245 | 189 | |||||||
Wood-based siding, million square feet 3/8" basis | 353 | 316 | 1,038 | 1,001 | |||||||
Engineered I-Joist, million lineal feet (1) | 22 | 21 | 66 | 61 | |||||||
Laminated veneer lumber (LVL) and laminated strand lumber (LSL), million cubic feet (1) (2) | 2.8 | 2.4 | 8.6 | 7.5 | |||||||
(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/20171106005189/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