Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q3 2020 Earnings Presentation
17 slides from Louisiana-pacific's earnings presentation, Nov 3, 2020
Slide 1: Q3 2020 Earnings Presentation
Q3 2020 EARNINGS PRESENTATION November 3, 2020
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
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: Q3 2020 Highlights
Q3 2020 HIGHLIGHTS Transformation Continues • Nearly a year ahead of pace to hit 2021 targets • $69M of year-to-date EBITDA impact: • Growth $41M • Efficiency $28M • LP® SmartSide® revenue growth of 22% compared with Q3-19, as single-family housing starts improved 11% Strong Cash Generation • $273M
Slide 6: Transformation
TRANSFORMATION 2020 Q3 YTD vs 2019 Q3 YTD U.S. Single Family TTM SmartSide Segment Growth Efficiency Total Housing Starts1 Revenue ($M) +10% +8% 2019 EBITDA Impact $28 $40 $68 929 860 Siding $34 $6 $40 OSB $7 $14 $21 EWP, LPSA, Corporate $0 $8 $8 2020 EBITDA Impact $41 $28 $69 Q3 2019 Q3 2020 Q3 201
Slide 7: Q3 2020 versus Q3 2019 Summary
Q3 2020 VERSUS Q3 2019 SUMMARY ($ in millions) Revenue Adj. EBITDA Q3 2019 $ 603 $ 49 OSB Price 179 179 OSB average selling price +97% Volume (7) (2) OSB commodity sales vol (5)% Transformation SmartSide® Growth 47 23 Volume +19%, Price +3% Structural Solutions mix up 1 pt to 44%, offset Other Growt
Slide 8: Financial Performance
FINANCIAL PERFORMANCE ($ in millions, except per share amount) PAGE 8
Slide 9: Siding – Q3 2020 vs Q3 2019
SIDING – Q3 2020 VS Q3 2019 ($ in millions) $32 $76 $4 $(3) $3 $5 $23 $44 Volume OEE 88% Lower raw Fiber 19% (vs PY 85%) material volume costs $4M (34)mmsf , Net ASP Sourcing or $(3)M 3% Savings $2M 2019 SmartSide Sales & Efficiency Other Costs Other Products 2020 EBITDA Sales Marketing Savings EBIT
Slide 10: OSB – Q3 2020 vs Q3 2019
OSB – Q3 2020 VS Q3 2019 ($ in millions) $190 $189 $(2) $3 $(0) $2 $(3) $11 (34)mmsf, Volume Fixed cost OEE 87% Lower raw or (6)% 41mmsf savings (vs PY 86%) material (excluding $3M costs $5M, $179 Peace Valley) Sourcing lower SS volume Savings $1M freight $6M Mix 44% (54)mmsf (+1pt to PY) $(1) 2019
Slide 11: Cash Flow
CASH FLOW ($ in millions) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Beginning cash $ 259 $ 362 $ 195 $ 892 Adjusted EBITDA 273 49 453 160 Working Capital (11) 21 (58) (54) Interest (net) (7) (5) (19) (10) Cash taxes (net) (45) — (48) (29) Other operating 8
Slide 12: Appendix
APPENDIX
Slide 13: Revenue and EBITDA by Segment
REVENUE AND EBITDA BY SEGMENT ($ in millions) PAGE 13
Slide 14: Siding – YTD 2020 vs YTD 2019
SIDING – YTD 2020 VS YTD 2019 ($ in millions) $41 $(3) $169 $6 $8 $(4) $6 $128 $28 Lower raw Volume OEE 88% material costs Fiber 9% (vs PY $6M volume 86%) (78)mmsf, Net ASP Higher freight or 1% Sourcing $(5)M and $(4)M Savings higher mill $3M costs $(5)M 2019 SmartSide Sales & Efficiency Dawson Ramp
Slide 15: OSB – YTD 2020 vs YTD 2019
OSB – YTD 2020 VS YTD 2019 ($ in millions) $266 $270 $7 $(10) $30 $(10) $7 $7 (152)mmsf, Volume Fixed cost OEE 88% Lower raw or (9)% 75mmsf savings (vs PY 86%) material costs $235 (excluding $17M $10M, lower Peace Valley) Sourcing freight $16M, SS volume Savings $5M lower fixed Mix 43% (162)mmsf cos
Slide 16: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA ($ in millions) PAGE 16
Slide 17: Reconciliation of Net Income to Adjusted Income
RECONCILIATION OF NET INCOME TO ADJUSTED INCOME ($ in millions) PAGE 17