Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading
manufacturer of high-performance building products, today reported
its financial results for the three and six months ended June 30,
2024.
Key Highlights for Second Quarter 2024, Compared to Second
Quarter 2023
- Siding net sales increased by 30% to $415 million
- Oriented Strand Board (OSB) net sales increased by 53% to $351
million
- Consolidated net sales increased by 33% to $814 million
- Net income was $160 million, an increase of $181 million
- Net income per diluted share was $2.23 per share, an increase
of $2.51 per share
- Adjusted EBITDA(1) was $229 million, an increase of $135
million
- Adjusted Diluted EPS(1) was $2.09 per diluted share, an
increase of $1.54 per diluted share
- Cash provided by operating activities was $212 million, an
increase of $124 million
(1)
This is a non-GAAP financial measure. See
“Use of Non-GAAP Information,” “Reconciliation of Net Income to
Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP
Adjusted Diluted EPS" below.
Capital Allocation Update
- Paid $102 million to repurchase 1.2 million of LP's common
shares during the second quarter, leaving 71 million common shares
outstanding at June 30, 2024
- Invested $36 million in capital expenditures during the second
quarter
- Paid $19 million in cash dividends during the second
quarter
- Paid a further $64 million to repurchase 0.7 million common
shares after quarter-end and as of August 6, 2024, leaving $271
million remaining under the pre-existing share repurchase
authorizations
- Announced a quarterly cash dividend of $0.26 per share
- Total liquidity of $867 million as of June 30, 2024
"LP’s Siding business continued to gain share and outperform the
underlying markets we serve, setting records for sales and EBITDA
in the quarter and notching another record quarter for LP SmartSide
ExpertFinish Trim & Siding,” said LP Chairperson and CEO Brad
Southern. “Consistent execution of LP’s strategy, growth in Siding
and Structural Solutions, and exceptional cost control and safety
in Siding and OSB delivered $229M in adjusted EBITDA in the second
quarter.”
Outlook
The Company is providing financial guidance for the third
quarter of 2024 and full year 2024 as set forth in the table below.
Guidance is based on current plans and expectations and is subject
to a number of known and unknown uncertainties and risks, including
those set forth below under “Forward-Looking Statements.”
Third Quarter 2024
Full Year 2024
Siding net sales year-over-year growth
16% to 18%
14% to 16%
Siding Adjusted EBITDA(2)
$95 million to $105 million
$355 million to $375 million
OSB Adjusted EBITDA(2)(3)
$10 million to $20 million
$225 million to $245 million
Consolidated Adjusted EBITDA(2)(3)(4)
$105 million to $125 million
$580 million to $620 million
Capital Expenditures(5)
$200 million to $220 million
(2)
This is a non-GAAP financial measure.
Reconciliation of Siding Adjusted EBITDA, OSB Adjusted EBITDA, and
consolidated Adjusted EBITDA guidance to the closest corresponding
GAAP measure on a forward-looking basis is not available without
unreasonable efforts. Our inability to reconcile these measures
results from the inherent difficulty in forecasting generally and
quantifying certain projected amounts that are necessary for such
reconciliation. In particular, sufficient information is not
available to calculate certain adjustments required for such
reconciliation, such as business exit charges and credits,
product-line discontinuance charges, other operating credits and
charges, net, loss on early debt extinguishment, investment income,
and other non-operating items, that would be required to be
included in the comparable forecasted U.S. GAAP measures. The
Company expects that these adjustments may potentially have a
significant impact on future GAAP financial results.
(3)
The third quarter and full year OSB EBITDA
are based on the assumption that OSB prices published by Random
Lengths remain unchanged from those published on August 2, 2024
(this is an assumption for modeling purposes and not a price
forecast).
(4)
For purposes of calculating the third
quarter of 2024 and full year 2024 consolidated Adjusted EBITDA, LP
South America Adjusted EBITDA fully offsets Corporate and Other
Adjusted EBITDA.
(5)
Capital expenditures related to strategic
growth and sustaining maintenance projects are expected to be
between $50 million to $60 million and $150 million to $160
million, respectively.
Second Quarter 2024 Highlights
Net sales for the second quarter of 2024 increased
year-over-year by $203 million (or 33%). Siding revenue increased
by $95 million (or 30%), due to 22% higher volumes and 6% higher
prices. OSB revenue increased by $122 million (or 53%), driven by
35% higher prices and 13% higher volumes. This was partially offset
by decreases in the LP South America (LPSA) segment and Other
revenue of $6 million and $7 million, respectively.
Net income increased year-over-year by $181 million to $160
million ($2.23 per diluted share). The increase primarily reflects
a $135 million increase in Adjusted EBITDA, $48 million changes in
business exit charges and credits, and $16 million of prior year
settlements of OSB patent-related claims, partially offset by a $31
million increase in the provision for income taxes. The
year-over-year increase in Adjusted EBITDA includes $73 million due
to higher OSB selling prices, a $23 million increase from higher
OSB sales volumes, and a $52 million impact from higher Siding net
sales.
First Six Months of 2024 Highlights
Net sales for the first six months of 2024 increased
year-over-year by $344 million (or 29%). Siding revenue increased
by $125 million (or 19%), due to 6% higher prices and 13% higher
volumes. OSB revenue increased by $246 million (or 59%), driven by
35% higher prices and 17% higher volumes. This was partially offset
by decreases in the LPSA segment and Other revenue of $15 million
and $12 million, respectively.
Net income increased year-over-year by $266 million to $267
million ($3.71 per diluted share). The increase primarily reflects
a $252 million increase in Adjusted EBITDA, $48 million changes in
business exit charges and credits, and $16 million of prior year
settlements of OSB patent-related claims, partially offset by a $71
million increase in the provision for income taxes. The
year-over-year increase in Adjusted EBITDA includes $135 million
due to higher OSB selling prices, a $53 million increase from
higher OSB sales volumes, and a $71 million impact from higher
Siding net sales.
Segment Results
Siding
The Siding segment serves diverse end markets with a broad
product offering including LP® SmartSide® Trim & Siding, LP
SmartSide ExpertFinish® Trim & Siding, LP BuilderSeries® Lap
Siding, and LP Outdoor Building Solutions® (collectively referred
to as Siding Solutions). Siding products consist of a full line of
engineered wood siding, trim, and fascia.
Segment sales and adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
Net sales
$
415
$
320
30
%
$
776
$
651
19
%
Adjusted EBITDA
105
59
78
%
195
126
54
%
Three Months Ended June 30,
2024 versus 2023
Six Months Ended June 30, 2024
versus 2023
Average Net
Selling Price
Unit
Shipments
Average Net
Selling Price
Unit
Shipments
Siding Solutions
6
%
22
%
6
%
13
%
The year-over-year net sales increase for the Siding segment for
the three and six months ended June 30, 2024 reflects increased
sales volumes and list price increases.
Second quarter 2024 Adjusted EBITDA increased year-over-year by
$46 million, reflecting the impact of the net sales increase and a
$5 million net decrease in freight, raw materials, and labor,
partially offset by a $7 million increase in mill overhead. For the
six months ended June 30, 2024, the year-over-year increase in
Adjusted EBITDA of $69 million primarily reflects the impact of the
net sales increase.
Oriented Strand Board (OSB)
The OSB segment manufactures and distributes OSB structural
panel products, including the innovative value-added OSB product
portfolio known as LP Structural Solutions (which includes LP
TechShield® Radiant Barrier, LP WeatherLogic® Air & Water
Barrier, LP Legacy® Premium Sub-Flooring, LP NovaCore® Thermal
Insulated Sheathing, LP FlameBlock® Fire-Rated Sheathing, and LP
TopNotch® 350 Durable Sub-Flooring). OSB is manufactured using wood
strands arranged in layers and bonded with resins.
Segment sales and adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
Net sales
$
351
$
229
53
%
$
664
$
418
59
%
Adjusted EBITDA
125
37
239
%
215
42
418
%
Three Months Ended June 30,
2024 versus 2023
Six Months Ended June 30, 2024
versus 2023
Average Net
Selling Price
Unit
Shipments
Average Net
Selling Price
Unit
Shipments
OSB - Structural Solutions
34
%
10
%
28
%
21
%
OSB - Commodity
38
%
17
%
43
%
13
%
Second quarter 2024 net sales for the OSB segment increased
year-over-year by $122 million (or 53%), reflecting a $73 million
increase in revenue due to higher OSB selling prices and a $40
million increase in sales volumes. For the six months ended June
30, 2024, the year-over-year increase in net sales of $246 million
(or 59%) reflects a $135 million increase in revenue due to higher
OSB selling prices and a $96 million increase in sales volumes.
Adjusted EBITDA for the three and six months ended June 30, 2024
increased year-over-year by $88 million and $174 million,
respectively, reflecting the impact of higher OSB prices and sales
volumes, partially offset by higher mill-related costs.
LPSA
The LPSA segment manufactures and distributes LP OSB structural
panel and Siding Solutions products in South America and certain
export markets. This segment also sells and distributes a variety
of companion products to support the region’s transition to wood
frame construction. The LPSA segment carries out manufacturing
operations in Chile and Brazil and operates sales offices in
Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.
Segment sales and adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
Net sales
$
46
$
53
(12
)%
$
93
$
108
(14
)%
Adjusted EBITDA
10
13
(17
)%
20
24
(18
)%
Three Months Ended June 30,
2024 versus 2023
Six Months Ended June 30, 2024
versus 2023
Average Net
Selling Price
Unit
Shipments
Average Net
Selling Price
Unit
Shipments
OSB - Structural Solutions
(16
)%
7
%
(18
)%
5
%
Siding
(15
)%
(19
)%
(15
)%
(6
)%
The year-over-year net sales and Adjusted EBITDA decreases for
the LPSA segment for the three and six months ended June 30, 2024
reflect unfavorable currency fluctuations, partially offset by
local currency revenues.
Conference Call
LP will hold a conference call to discuss this release today at
11 a.m. Eastern Time (8 a.m. Pacific Time). Investors will have the
opportunity to listen to the conference call live by going to
investor.lpcorp.com. For those who
cannot listen to the live broadcast, the recorded webcast and
accompanying presentation will be available to the public online in
the "News & Events" section of investor.lpcorp.com.
About LP Building Solutions
As a leader in high-performance building solutions,
Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX)
manufactures engineered wood building products that meet the
demands of builders, remodelers, and homeowners worldwide. LP's
extensive offerings include innovative and dependable building
products and accessories, such as Siding Solutions (LP SmartSide
Trim & Siding, LP SmartSide ExpertFinish Trim & Siding, LP
BuilderSeries Lap Siding, and LP Outdoor Building Solutions), LP
Structural Solutions (LP TechShield Radiant Barrier, LP
WeatherLogic Air & Water Barrier, LP Legacy Premium
Sub-Flooring, LP FlameBlock Fire-Rated Sheathing, LP NovaCore
Thermal Insulated Sheathing, and LP TopNotch 350 Durable
Sub-Flooring), and oriented strand board (OSB). In addition to
product solutions, LP provides industry-leading customer service
and warranties. Since its founding in 1972, LP has been Building a
Better World™ by helping customers construct beautiful, durable
homes while our stockholders build lasting value. Headquartered in
Nashville, Tennessee, LP operates 22 plants across the U.S.,
Canada, Chile, and Brazil, in certain cases through foreign
subsidiaries. For more information, visit LPCorp.com.
Forward-Looking Statements
This news release contains statements concerning
Louisiana-Pacific Corporation's (LP) future results and performance
that are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are based upon the beliefs and assumptions of, and on information
available to, our management; assumptions upon which such
forward-looking statements are based are also forward-looking
statements. Forward-looking statements can be identified by words
such as “may,” “will,” “could,” “should,” “believe,” “expect,”
“anticipate,” “intend,” “plan,” “estimate,” “project,” “target,”
“potential,” “continue,” “likely,” or “future,” as well as similar
expressions, or the negative or other variations thereof and
include other statements regarding matters that are not historical
facts. Examples of forward-looking statements include, among
others, statements LP makes regarding statements concerning plans
for product development, forecasts of future costs and
expenditures, possible outcomes of legal proceedings, capacity
expansion and other growth initiatives, the adequacy of reserves
for loss contingencies, and any statements regarding the Company's
financial outlook. Factors that could cause actual results to
differ materially from those expressed or implied by the
forward-looking statements include, but are not limited to, the
following: changes in governmental fiscal and monetary policies,
including tariffs and levels of employment; changes in general and
global economic conditions, including impacts from global
pandemics, rising inflation, supply chain disruptions, and new or
ongoing military conflicts including the conflict between Russia
and Ukraine and the conflict in Israel and the surrounding areas;
the commodity nature of a segment of our products and the prices
for those products, which are determined in significant part by
external factors such as total industry capacity and wider industry
cycles affecting supply and demand trends; changes in the cost and
availability of capital; changes in the cost and availability of
financing for home mortgages; changes in the level of home
construction and repair and remodel activity; changes in
competitive conditions and prices for our products; changes in the
relationship between supply of and demand for building products;
changes in the financial or business conditions of third-party
wholesale distributors and dealers of building products; changes in
the relationship between the supply of and demand for raw
materials, including wood fiber and resins, used in manufacturing
our products; changes in the cost and availability of energy,
primarily natural gas, electricity, and diesel fuel; changes in the
cost and availability of transportation, including transportation
services provided by third parties; our dependence on third-party
vendors and suppliers for certain goods and services critical to
our business; operational and financial impacts from manufacturing
our products internationally; difficulties in the development,
launch or production ramp-up of new products; our ability to
attract and retain qualified executives, management and other key
employees; the need to formulate and implement effective succession
plans from time to time for key members of our management team;
impacts from public health issues (including global pandemics) on
the economy, demand for our products or our operations, including
the actions and recommendations of governmental authorities to
contain such public health issues; our ability to identify and
successfully complete and integrate acquisitions, divestitures,
joint ventures, capital investments and other corporate strategic
transactions; unplanned interruptions to our manufacturing
operations, such as explosions, fires, inclement weather, natural
disasters, accidents, equipment failures, labor shortages or
disruptions, transportation interruptions, supply interruptions,
public health issues (including pandemics and quarantines), riots,
civil insurrection or social unrest, looting, protests, strikes,
and street demonstrations; changes in global or regional climate
conditions, the impacts of climate change, and potential government
policies adopted in response to such conditions; changes in other
significant operating expenses; changes in currency values and
exchange rates between the U.S. dollar and other currencies,
particularly the Canadian dollar, Brazilian real, Chilean peso, and
Argentine peso; changes in, and compliance with, general and
industry-specific laws and regulations, including environmental and
health and safety laws and regulations, the U.S. Foreign Corrupt
Practices Act and anti-bribery laws, laws related to our
international business operations, and changes in building codes
and standards; changes in tax laws and interpretations thereof;
changes in circumstances giving rise to environmental liabilities
or expenditures; warranty costs exceeding our warranty reserves;
challenges to or exploitation of our intellectual property or other
proprietary information by our competitors or other third parties;
the resolution of existing and future product-related litigation,
environmental proceedings and remediation efforts, and other legal
or environmental proceedings or matters; the effect of covenants
and events of default contained in our debt instruments; the amount
and timing of any repurchases of our common stock and the payment
of dividends on our common stock, which will depend on market and
business conditions and other considerations; cybersecurity events
affecting our information technology systems or those of our
third-party providers and the related costs and impact of any
disruption on our business; and acts of public authorities, war,
political or civil unrest, natural disasters, fire, floods,
earthquakes, inclement weather, and other matters beyond our
control. For additional information about factors that could cause
actual results, events, and circumstances to differ materially from
those described in the forward-looking statements, please refer to
LP’s filings with the Securities and Exchange Commission (SEC). We
urge you to consider all of the risks, uncertainties, and factors
identified above or discussed in such reports carefully in
evaluating the forward-looking statements in this news release. We
cannot assure you that the results reflected in or implied by any
forward-looking statement will be realized or even if substantially
realized, that those results will have the forecasted or expected
consequences and effects for or on our operations or financial
performance. The forward-looking statements made today are as of
the date of this news release. Except as required by law, LP
undertakes no obligation to update any such forward-looking
statements to reflect new information, subsequent events, or
circumstances.
Use of Non-GAAP Information
In evaluating our business, we utilize non-GAAP financial
measures that fall within the meaning of SEC Regulation G and
Regulation S-K Item 10(e), which we believe provide users of the
financial information with additional meaningful comparison to
prior reported results. Non-GAAP financial measures do not have
standardized definitions and are not defined by U.S. generally
accepted accounting principles (GAAP). In this press release, we
disclose income attributed to LP before interest expense, provision
for income taxes, depreciation and amortization, and excluding
stock-based compensation expense, loss on impairment attributed to
LP, business exit charges and credits, product-line discontinuance
charges, other operating credits and charges, net, loss on early
debt extinguishment, investment income, pension settlement charges,
and other non-operating items, as Adjusted EBITDA (Adjusted
EBITDA), which is a non-GAAP financial measure. We have included
Adjusted EBITDA in this report because we view it as an important
supplemental measure of our performance and believe that it is
frequently used by interested persons in the evaluation of
companies that have different financing and capital structures
and/or tax rates. We also disclose income attributed to LP,
excluding loss on impairment attributed to LP, business exit
charges and credits, product-line discontinuance charges, interest
expense outside of normal operations, other operating credits and
charges, net, loss on early debt extinguishment, gain (loss) on
acquisition, and pension settlement charges, and adjusting for a
normalized tax rate, as Adjusted Income (Adjusted Income). We also
disclose Adjusted Diluted EPS, which is calculated as Adjusted
Income divided by diluted shares outstanding. We believe that
Adjusted Diluted EPS and Adjusted Income are useful measures for
evaluating our ability to generate earnings and that providing
these measures should allow interested persons to more readily
compare the earnings for past and future periods. Reconciliations
of Adjusted EBITDA, Adjusted Income and Adjusted Diluted EPS to
their most directly comparable U.S. GAAP financial measures, net
income, income attributed to LP, and income attributed to LP per
diluted share, respectively, are presented below.
Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are
not substitutes for the U.S. GAAP measures of net income, income
attributed to LP, and income attributed to LP per diluted share or
for any other U.S. GAAP measures of operating performance. It
should be noted that other companies may present similarly titled
measures differently, and therefore, as presented by us, these
measures may not be comparable to similarly titled measures
reported by other companies. Adjusted EBITDA, Adjusted Income, and
Adjusted Diluted EPS have material limitations as performance
measures because they exclude items that are actually incurred or
experienced in connection with the operation of our business.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE
AMOUNTS)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net sales
$
814
$
611
$
1,539
$
1,195
Cost of sales
(551
)
(492
)
(1,062
)
(975
)
Gross profit
263
119
477
220
Selling, general, and administrative
expenses
(71
)
(66
)
(140
)
(133
)
Impairment of long-lived assets, net
—
(24
)
—
(24
)
Other operating credits and charges,
net
2
(21
)
3
(26
)
Income from operations
194
8
339
37
Interest expense
(4
)
(3
)
(8
)
(6
)
Investment income
6
2
11
7
Other non-operating income (expense)
5
(8
)
6
(16
)
Income (loss) before income
taxes
201
(1
)
349
22
Provision for income taxes
(53
)
(21
)
(94
)
(22
)
Equity in unconsolidated affiliate
12
1
12
1
Net income (loss)
$
160
$
(21
)
$
267
$
1
Net loss attributed to non-controlling
interest
—
1
—
—
Net income (loss) attributed to
LP
$
160
$
(20
)
$
267
$
1
Net income (loss) attributed to LP per
share of common stock:
Basic
$
2.23
$
(0.28
)
$
3.72
$
0.02
Diluted
$
2.23
$
(0.28
)
$
3.71
$
0.02
Average shares of common stock used to
compute net income (loss) per share:
Basic
72
72
72
72
Diluted
72
72
72
72
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
(AMOUNTS IN MILLIONS)
June 30, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
317
$
222
Receivables, net
161
155
Inventories
373
378
Prepaid expenses and other current
assets
32
23
Total current assets
883
778
Property, plant, and equipment, net
1,542
1,540
Timber and timberlands
30
32
Operating lease assets, net
22
25
Goodwill and other intangible assets
26
27
Investments in and advances to
affiliates
1
5
Other assets
20
20
Deferred tax asset
5
11
Total assets
$
2,529
$
2,437
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities
$
258
$
254
Income tax payable
3
5
Total current liabilities
261
259
Long-term debt
347
347
Deferred income taxes
158
162
Non-current operating lease
liabilities
23
25
Other long-term liabilities
57
61
Contingency reserves, excluding current
portion
25
25
Total liabilities
871
880
Stockholders’ equity:
Common stock
87
88
Additional paid-in capital
471
465
Retained earnings
1,595
1,479
Treasury stock
(385
)
(386
)
Accumulated comprehensive loss
(109
)
(89
)
Total stockholders’ equity
1,658
1,557
Total liabilities and stockholders’
equity
$
2,529
$
2,437
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW (UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
(AMOUNTS IN MILLIONS)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)
$
160
$
(21
)
$
267
$
1
Adjustments to net income:
Depreciation and amortization
31
29
62
57
Impairment of goodwill and long-lived
assets
—
24
—
24
Pension loss due to settlement
—
—
—
6
Deferred taxes
(5
)
12
4
10
Foreign currency remeasurement and
transaction (gain) loss
(5
)
12
(5
)
13
Other adjustments, net
(10
)
20
(6
)
29
Changes in assets and liabilities (net of
acquisitions and divestitures):
Receivables
14
(14
)
(33
)
(22
)
Inventories
24
8
1
(68
)
Prepaid expenses and other current
assets
(12
)
2
(11
)
(1
)
Accounts payable and accrued
liabilities
16
21
16
(45
)
Income taxes payable, net of
receivables
(1
)
(3
)
21
(33
)
Net cash provided by (used in)
operating activities
212
88
317
(30
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Property, plant, and equipment
additions
(36
)
(74
)
(77
)
(188
)
Acquisition of facility assets
—
(80
)
—
(80
)
Proceeds from sales of assets
—
—
—
1
Other investing activities, net
16
(4
)
16
(4
)
Net cash used in investing
activities
(20
)
(158
)
(61
)
(271
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Borrowing of long-term debt
—
70
—
70
Repayment of long-term debt, including
call premium
—
(40
)
—
(40
)
Payment of cash dividends
(19
)
(17
)
(37
)
(35
)
Repurchase of common stock
(102
)
—
(115
)
—
Other financing activities
2
1
(5
)
(9
)
Net cash used in financing
activities
(118
)
14
(157
)
(14
)
EFFECT OF EXCHANGE RATE ON CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH
(1
)
—
(3
)
3
Net increase (decrease) in cash, cash
equivalents, and restricted cash
73
(56
)
95
(313
)
Cash, cash equivalents, and restricted
cash at beginning of period
244
126
222
383
Cash, cash equivalents, and restricted
cash at end of period
$
317
$
71
$
317
$
71
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
The following tables present summary data
relating to: (i) housing starts within the United States, (ii) our
sales volumes, and (iii) our performance according to a widely used
operational metric called Operational Equipment Effectiveness
(OEE). We consider the following items to be key performance
indicators for our business because LP’s management uses these
metrics to evaluate our business and trends in our industry,
measure our performance, and make strategic decisions. We believe
that the key performance indicators presented may provide
additional perspective and insights when analyzing our core
operating performance. These key performance indicators should not
be considered superior to, as a substitute for, or as an
alternative to, and should be considered in conjunction with, the
financial measures that were prepared in accordance with U.S. GAAP.
These measures may not be comparable to similarly titled
performance indicators used by other companies.
We monitor housing starts, which is a
leading external indicator of residential construction in the
United States that correlates with the demand for many of our
products. We believe that housing starts is a useful measure for
evaluating our results and that providing this measure should allow
interested persons to more readily compare our sales volume for
past and future periods to an external indicator of product demand.
Other companies may present housing start data differently, and
therefore, as presented by us, our housing start data may not be
comparable to similarly titled performance indicators reported by
other companies.
The following table sets forth housing
starts for the three and six months ended June 30, 2024 and 2023
(in thousands):
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Housing starts1:
Single-Family
281
261
522
449
Multi-Family
92
139
172
266
372
400
693
715
1 Actual U.S. housing starts data, in
thousands, reported by the U.S. Census Bureau as published through
July 17, 2024.
We monitor sales volumes for our products
in our Siding, OSB, and LPSA segments, which we define as the
number of units of our products sold within the applicable period.
Evaluating sales volume by product type helps us identify and
address changes in product demand, broad market factors that may
affect our performance, and opportunities for future growth. It
should be noted that other companies may present sales volume data
differently, and therefore, as presented by us, sales volume data
may not be comparable to similarly titled measures reported by
other companies. We believe that sales volumes can be a useful
measure for evaluating and understanding our business.
The following table sets forth sales
volumes for the three and six months ended June 30, 2024 and
2023:
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
Sales Volume
Siding
OSB
LPSA
Total
Siding
OSB
LPSA
Total
Siding Solutions (MMSF)
459
—
6
465
377
—
7
384
OSB - Structural Solutions (MMSF)
—
452
136
588
—
412
128
540
OSB - commodity (MMSF)
—
415
—
415
—
354
—
354
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
Sales Volume
Siding
OSB
LPSA
Total
Siding
OSB
LPSA
Total
Siding Solutions (MMSF)
858
—
18
876
760
—
19
779
OSB - value added (MMSF)
—
895
266
1,161
—
739
255
993
OSB - commodity (MMSF)
—
830
—
830
—
736
—
736
We measure OEE at each of our mills to
track improvements in the utilization and productivity of our
manufacturing assets. OEE is a composite metric that considers
asset uptime (adjusted for capital project downtime and similar
events), production rates, and finished product quality. We believe
that OEE, when used in conjunction with other metrics, can be a
useful measure for evaluating our ability to generate profits, and
that providing this measure should allow interested persons to
monitor operational improvements. We use a best-in-class target
across all LP manufacturing sites that allows us to optimize
capital investments, focus maintenance and reliability
improvements, and improve overall equipment efficiency. It should
be noted that other companies may present OEE data differently, and
therefore, as presented by us, OEE data may not be comparable to
similarly titled measures reported by other companies.
OEE for the three and six months ended
June 30, 2024 and 2023 for each of our segments is listed
below:
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Siding
77
%
78
%
78
%
77
%
OSB
78
%
75
%
78
%
75
%
LPSA
76
%
74
%
76
%
75
%
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(AMOUNTS IN MILLIONS)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
NET SALES BY BUSINESS SEGMENT
Siding
$
415
$
320
$
776
$
651
OSB
351
229
664
418
LPSA
46
53
93
108
Other
2
9
5
17
Total sales
$
814
$
611
$
1,539
$
1,195
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME TO NON-GAAP
ADJUSTED EBITDA
(AMOUNTS IN MILLIONS)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)
$
160
$
(21
)
$
267
$
1
Add (deduct):
Net loss attributed to non-controlling
interest
—
1
—
—
Income (loss) attributed to LP
160
(20
)
267
1
Provision for income taxes
53
21
94
22
Depreciation and amortization
31
29
62
57
Stock-based compensation expense
4
3
11
7
Other operating credits and charges,
net
1
17
1
22
Business exit charges and credits
(14
)
34
(15
)
34
Interest expense
4
3
8
6
Investment income
(6
)
(2
)
(11
)
(7
)
Pension settlement charges
—
—
—
6
Other non-operating items
(5
)
8
(6
)
11
Adjusted EBITDA
$
229
$
93
$
411
$
159
SEGMENT ADJUSTED EBITDA
Siding
$
105
$
59
$
195
$
126
OSB
125
37
215
42
LPSA
10
13
20
24
Other
(2
)
(6
)
(3
)
(14
)
Corporate
(9
)
(9
)
(16
)
(19
)
Adjusted EBITDA
$
229
$
93
$
411
$
159
LOUISIANA-PACIFIC CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME TO NON-GAAP
ADJUSTED INCOME AND ADJUSTED DILUTED EPS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE
AMOUNTS)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss) per share -
diluted
$
2.23
$
(0.28
)
$
3.71
$
0.02
Net income (loss)
$
160
$
(21
)
$
267
$
1
Add (deduct):
Net loss attributed to non-controlling
interest
—
1
—
—
Income (loss) attributed to LP
160
(20
)
267
1
Other operating credits and charges,
net
1
17
1
22
Business exit charges and credits
(14
)
34
(15
)
34
Pension settlement charges
—
—
—
6
Reported tax provision
53
21
94
22
Adjusted income before tax
200
53
348
86
Normalized tax provision at 25%
(50
)
(13
)
(87
)
(21
)
Adjusted Income
$
150
$
39
$
261
$
64
Diluted shares outstanding
72
72
72
72
Adjusted Diluted EPS
$
2.09
$
0.55
$
3.62
$
0.89
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807925131/en/
Investor Contact Aaron Howald 615.986.5792
Aaron.Howald@lpcorp.com Media Contact Breeanna Straessle
615.986.5886 Media.Relations@lpcorp.com
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