Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q1 2019 Earnings Presentation
19 slides from Louisiana-pacific's earnings presentation, May 7, 2019
Slide 1: Q1 2019 Earnings Presentation
Q1 2019 EARNINGS PRESENTATION May 7, 2019
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation 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. Factors that could cause actual results to d
Slide 3: Statement Relating to the Use of Non-GAAP Financial Measures
STATEMENT RELATING TO THE USE OF NON-GAAP FINANCIAL MEASURES During the course of this presentation, certain non- U.S. GAAP financial information will be presented. Reconciliation of those numbers to U.S. GAAP financial measures are available on the company’s website at www.lpcorp.com under the Inve
Slide 4: Highlights
HIGHLIGHTS
Slide 5: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS Growth 13% Smart Side Strand revenue growth Launched Smooth Strand Trim and Siding Produced and shipped Siding at Dawson Creek 40% of OSB volume from Structural Solutions (formerly value-add OSB) Launched WeatherLogicTM air & water barrier Operational Improvements 4.9
Slide 6: Significant Progress in LP's Transformation
SIGNIFICANT PROGRESS IN LP’S TRANSFORMATION ($ in millions) Flat U.S. Single Family TTM SmartSide® Strand Housing Starts1 Revenue ($M) Segment Growth Efficiency Total +14% Siding $11 $2 $13 862 865 OSB $1 $5 $6 LPSA - $1 $1 Total Q1 EBITDA Impact $12 $8 $20 2021 EBITDA Target2 $90 $75 $165 Q1 2018 Q
Slide 7: Q1 2019 Results
Q1 2019 RESULTS
Slide 8: Financial Results
FINANCIAL RESULTS ($ in millions, except per share amount) 2019 B/(W) Pr Yr Sales $ 582 $ (109) Cost of sales 501 14 Gross profit 81 (96) Selling and adminstrative 57 (6) Other 3 (3) Income from operations 22 (105) Non-operating income(expense) 12 15 Provision for taxes 7 23 Income from continuing o
Slide 9: Sales and EBITDA by Segment
SALES AND EBITDA BY SEGMENT ($ in millions) FIRST QUARTER Sales 2019 B/(W) Pr Yr Siding 236 9 OSB 208 (105) EWP 90 (15) South America 45 2 Other and Intersegment 3 1 582 (109) Adj. EBITDA Siding 42 (3) OSB 8 (97) EWP 7 2 South America 10 (1) Other and unallocated (10) (2) 58 (101) The above table re
Slide 10: Siding Comparison – Q1 2019 versus Q1 2018
SIDING COMPARISON – Q1 2019 VERSUS Q1 2018 ($ in millions) Transformation Impact = $13M $13 ($2) $2 ($9) ($5) ($2) $45 Investment Volume down $42 SmartSide® Increased Operational Strand marketing savings from in OSB mill 68% primarily revenue investment Overall conversion due to growth of ahead of E
Slide 11: OSB Comparison – Q1 2019 versus Q1 2018
OSB COMPARISON – Q1 2019 VERSUS Q1 2018 ($ in millions) Transformation Impact = $6M ($60) Structural Structural Operational Solutions1 Solutions1 savings from realized sales volume 40% of Overall $105 price down overall OSB. Equipment 25% Effectiveness (OEE), and Supply Chain Optimization ($9) ($33)
Slide 12: First Quarter Cash Flow
FIRST QUARTER CASH FLOW ($ in millions) 2019 B / (W) Adjusted EBITDA $ 58 $ (101) Working Capital (83) 34 Interest (Net) (5) 2 Cash Taxes (Net) (21) (18) Other Operating (3) (2) Operating Cash Flow (54) (85) Capex (43) - Dividends (17) 2 Share Buybacks (438) (438) Other Investing & Financing (5) (5)
Slide 13: 2019 Guidance and Long-Term Targets
2019 GUIDANCE Capital investment $150M – $180M Strand Siding revenue growth 12-14% OSB OEE improvement1 1.7 pts LONG-TERM TARGETS Volume from Structural Solutions2 50%+ Annual Siding Strand revenue growth 12-14% Overall Siding EBITDA margin 20%+ Percentage of cash flow from operations to be returned
Slide 14: Appendix
APPENDIX
Slide 15: Siding
SIDING ($ in millions) a Operating income equals sales less cost of sales and selling and administration associated with the segment. b Adjusted EBITDA from continuing operations 15
Slide 16: OSB
OSB ($ in millions) Q1 2019 Q1 2018 Sales 208 313 Operating income# (8) 89 Adj. EBITDA? 8 105 Adj. EBITDA Margin 4% 33% Percentage Changes: Sales (33)% Adj. EBITDA (92)% Volume: OSB - Commodity (7)% OSB - Structural Solutions® 2% Price: OSB - Commodity (35)% OSB - Structural Solutions® (25)% 3 Opera
Slide 17: EWP
EWP ($ in millions) a Operating income equals sales less cost of sales and selling and administration associated with the segment. b Adjusted EBITDA from continuing operations 17
Slide 18: LPSA
LPSA ($ in millions) a Operating income equals sales less cost of sales and selling and administration associated with the segment. b Adjusted EBITDA from continuing operations 18
Slide 19: First Quarter EBITDA Reconciliation
FIRST QUARTER EBITDA RECONCILIATION ($ in millions) South Quarter Ended March 31, 2019 (Dollar amounts in millions) Siding OSB EWP Other Corporate Total America Net income (loss) $ 33 $ (8) $ 3 $ 8 $ (4) $ (6) $ 26 Net loss attributable to non-controlling interest — — — — — — — Income (loss) from co