Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q2 2021 Earnings Presentation
19 slides from Louisiana-pacific's earnings presentation, Aug 3, 2021
Slide 1: Q2 Results
Q2 RESULTS August 3, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This news release contains statements concerning LP's 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 differ materially from those expr
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 wit
Slide 4: Highlights
HIGHLIGHTS
Slide 5: Q2 2021 Highlights
Q2 2021 HIGHLIGHTS • Record sales and EBITDA in all segments • Siding Solutions sales increased by 39% • Volume of innovative Siding products increased 86% • OSB sales increased by $574M to $778M • OSB Structural Solutions mix increased to 46% • LPSA net sales increased by 94%, Adjusted EBITDA1 by $
Slide 6: Q2 2021 Financial Results
Q2 2021 FINANCIAL RESULTS Increasing CapEx investments to meet $1.3B $684M $457M $4.74 growing demand Net Sales Adj. Op. CF Adj. EPS1 Declared dividend of +142% EBITDA1 +$328M +$4.31 $0.18 per share 7x $572M remaining 39% +$554M $465M $16M under $1B buyback authority as of August 2, 2021 Siding Solu
Slide 7: Siding Growth and Innovation
SIDING GROWTH AND INNOVATION Siding Growth Siding Innovation U.S. Single Family Siding Solutions Housing Starts 1 Revenue ($M) Q2 2020 Volume Q2 2021 Volume +42% +39% 6% 9% Panel Lap, Trim, Soffit Q2 2020 Q2 2021 Q2 2020 Q2 2021 Innovative Siding Products 1 Actual U.S. housing starts data from U.S.
Slide 8: Q2 2021 vs Q2 2020 Summary
Q2 2021 VS Q2 2020 SUMMARY ($ in millions) Q2 2021 vs Q2 2020 Revenue EBITDA1 Q2 2020 Actual $ 548 $ 97 OSB price 554 554 Siding Solutions growth 81 50 South America, EWP, & Entekra 136 38 Inflationary costs (wages, raw materials, freight) 0 (24) Mill spending 0 (18) All other 6 (13) Q2 2021 Actual
Slide 9: Siding – Q2 2021 vs Q2 2020
SIDING – Q2 2021 VS Q2 2020 ($ in millions) $26 $(4) $0 $(1) $(22) $77 $53 $(1) Production costs $(7)M Fiber volume $51 (23) mmsf Freight $(5)M Volume 27% Higher field OEE 88% Unfavorable inventory 27% sales (flat to PY) absorption $(4)m 23% Net ASP 9% Raw materials $(3)M 2020 Siding Sales & Efficie
Slide 10: OSB – Q2 2021 vs Q2 2020
OSB – Q2 2021 VS Q2 2020 ($ in millions) $519 $4 $9 $(3) $(7) $(38) $565 Volume Volume OEE 86% Production costs $(18)M up 7 mmsf, up 64 mmsf, (vs 90% PY) $554 or 1% after 19% Freight $(7)M adjusting (5) mmsf for Mix 46% Sourcing Raw materials $(5)M MDI (vs PY 41%) Savings $1M substitution Intersegme
Slide 11: 2021 Capex Guidance; Q3 2021 Revenue & Adj. EBITDA
2021 CAPEX GUIDANCE Full-Year Capital Investment $270M Houlton Conversion $95M Peace Valley $10M Other Strategic Growth Capital $45M Sustaining Maintenance Capital $120M Q3 2021 REVENUE & ADJ. EBITDA Siding Solutions YoY Revenue Growth ~ 10% OSB Revenue Compared to Q2 2021 ~ 10% Decrease LP Consolid
Slide 12: Appendix
APPENDIX
Slide 13: Financial Performance
FINANCIAL PERFORMANCE ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales $ 1,325 $ 548 $ 2,342 $ 1,133 Cost of sales (619) (431) (1,157) (908) Gross profit 707 117 1,185 225 SG&A (57) (50) (105) (105) Impairments — (8) — (15) Other charges and credits 3 (
Slide 14: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA ($ in millions) Three Months Ended June30, Six Months Ended June 30, 2021 2020 2021 2020 Net income $ 497 $ 31 $ 817 $ 64 Add (deduct): Noncontrolling interest — 2 1 2 Income attributed to LP 498 33 818 66 Provision for income taxes 147 19 244
Slide 15: Reconciliation of Net Income to Non-GAAP Adjusted Income and Adjusted Diluted EPS
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED INCOME AND ADJUSTED DILUTED EPS ($ in millions) PAGE 15
Slide 16: Revenue and Adjusted EBITDA by Segment
REVENUE AND ADJUSTED EBITDA BY SEGMENT ($ in millions) PAGE 16
Slide 17: Cash Flow
CASH FLOW ($ in millions) PAGE 17
Slide 18: Siding – YTD 2021 vs YTD Q2 2020
SIDING – YTD 2021 VS YTD Q2 2020 ($ in millions) $75 $(0) $1 $(1) $(27) $168 $(2) $104 Maintenance ($5)M Freight $(8)M $93 Unfavorable inventory 29% Volume up Higher field OEE 89% absorption $(5)m Fiber volume 33% sales (vs 88% (60) mmsf 22% PY) Fx $(4)M Net ASP up 8% Raw materials $(2)M 2020 Siding
Slide 19: OSB – YTD 2021 vs YTD Q2 2020
OSB – YTD 2021 VS YTD Q2 2020 ($ in millions) $838 $3 $8 $(7) $(7) $(47) $919 Volume Volume OEE 84% Production costs $(24)M $888 up 20mmsf, or 2% up 67mmsf, (vs 89% PY) after adjusting 9% Freight $(9)M (84)mmsf for resin (5) ppts, or $(8)M substitution Mix 46% from resin Intersegment transfers $(7)M