Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q1 2020 Earnings Presentation
16 slides from Louisiana-pacific's earnings presentation, May 5, 2020
Slide 1: Q1 2020 Earnings Presentation
Q1 2020 EARNINGS PRESENTATION May 5, 2020
Slide 2: Forward Looking Statements
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. Factors that could cause actual results to
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-GAAP financial measures will be presented. Non-GAAP financial measures should be considered only as a supplement to, and not as superior to, financial measures prepared in accordance with
Slide 4: Highlights
HIGHLIGHTS
Slide 5: COVID-19 Update
COVID-19 UPDATE Safety ▪ Following all national, state, provincial, and local orders as well as CDC guidance ▪ Employees who can work from home have been doing so since mid-March ▪ Manufacturing facilities generally deemed “essential” ▪ Rigorous cleaning, screening, and distancing practices in place
Slide 6: Q1 2020 Highlights
Q1 2020 HIGHLIGHTS Transformation Continues ▪ $13M EBITDA Impact from Growth and Efficiency ▪ 43% of OSB volume from Structural Solutions in Q1 ▪ OEE continues to exceed targets Strong Cash Generation ▪ $83M EBITDA, $25M improvement vs. Q1 2019 ▪ $(9) Operating cash flow, $45M improvement vs. Q1 201
Slide 7: Transformation
TRANSFORMATION 2020 Q1 vs 2019 Q1 U.S. Single Family TTM SmartSide® Strand Segment Growth Efficiency Total Housing Starts1 Revenue ($M) 5% +7% 2019 EBITDA Impact $28 $40 $68 911 870 Siding $1 $2 $3 OSB $9 $1 $10 EWP, LPSA, Corporate $0 $0 $0 2020 EBITDA Impact $10 $3 $13 Q1 2019 Q1 2020 Q1 2019 Q1 2
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Three Months Ended March 31, ($ in millions, except per share amount) 2020 B/(W) 2019 Sales $ 585 $ 3 Cost of sales (477) 24 Gross profit 108 27 Selling, general, and administrative (55) 1 Impairments (7) (6) Other charges and credits (2) — Income from operations 44 22 Non-oper
Slide 9: Revenue and EBITDA by Segment
REVENUE AND EBITDA BY SEGMENT Three Months Ended March 31, ($ in millions) 2020 B/(W) 2019 Sales Siding $ 212 $ (7) OSB 220 12 EWP 99 9 South America 36 (9) Other 18 (3) Intersegment — 1 $ 585 $ 3 Adjusted EBITDA Siding $ 42 $ 3 OSB 35 27 EWP 9 2 South America 7 (3) Other (3) (4) Corporate (7) — $ 8
Slide 10: Siding - Q1 2020 vs Q1 2019
SIDING - Q1 2020 VS Q1 2019 ($ in millions) $3 $5 $(3) $42 $39 $(2) $1 $0 $2 Strand OEE from Wage inflation Fiber sales Higher R&R volume +3%; 85% to 89% $(1)M; down expenses net ASP (1)% $1M; Supply Freight on 16mmsf; offset by Chain reload OSB sales reduced savings $1M replenishment down marketing
Slide 11: OSB - Q1 2020 vs Q1 2019
OSB - Q1 2020 VS Q1 2019 ($ in millions) $27 $35 $1 $6 $4 $(5) $(2) $5 Structural Fixed cost OOE from Favorable wood $18 Commodity Solutions savings $7M; 87% to 88%; and resin pricing volume volume up Reduced SS Sourcing $7M; down 16%; volume savings $1M Lower freight $8 49mmsf, or mix up 2pts $(3)M
Slide 12: Cash Flow
CASH FLOW Three Months Ended March 31, ($ in millions) 2020 B/(W) 2019 Beginning cash, cash equivalents, and restricted cash $ 195 $ (697) Adjusted EBITDA 83 25 Working Capital (74) 8 Interest (net) (10) (5) Cash taxes (net) — 21 Other operating (8) (4) Operating cash flow (9) 45 Cap Ex (24) 19 Borr
Slide 13: 2020 Guidance – Amended Long-Term Targets
2020 GUIDANCE – AMMENDED Capital investment $70M Strand Siding revenue growth Suspended Continued Operational Improvement Suspended LONG-TERM TARGETS Volume from Structural Solutions 50%+ Annual Siding Strand revenue growth 10 - 12% Overall Siding EBITDA margin 20%+ Phase II of Capital Allocation Pl
Slide 14: Appendix
APPENDIX
Slide 15: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA ($ in millions) PAGE 15
Slide 16: Reconciliation of Net Income to Adjusted Income
RECONCILIATION OF NET INCOME TO ADJUSTED INCOME ($ in millions) PAGE 16