Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q2 2024 Earnings Presentation
16 slides from Louisiana-pacific's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation August 7, 2024
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. These statements are based upon the beliefs
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: Q2 2024 Financial Results
OTHER HIGHLIGHTS Q2 2024 FINANCIAL RESULTS Record Siding Quarter • SmartSide volume and net sales $814M $229M $212M $2.09 • ExpertFinish volume and net sales Margin • Siding EBITDA margin2 25% • Significant improvement in Net Sales Adj. EBITDA1 Op. CF Adj. EPS1 ExpertFinish margin +33% +145% +$124M
Slide 6: Siding Growth and ExpertFinish Mix
SIDING GROWTH AND EXPERTFINISH1 MIX 700% 16% Siding Volume 600% ExpertFinish % of Siding Volume 14% Siding Revenue ExpertFinish % of Siding Revenue 12% 500% U.S. Housing Starts 10% 400% 8% 6% 300% 4% 200% 2% 100% 0% 2024E 2020 2021 2022 2023 2024E 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 7: Financial Results
FINANCIAL RESULTS
Slide 8: Siding – Q2 2024 vs. Q2 2023
SIDING – Q2 2024 VS. Q2 2023 ($ in millions) $46 $(2) $5 $(10) $105 $28 $24 Overall 22% Sales & $59 Raw materials Mill overhead Marketing $5M $(11)M OEE 77% $(6)M Overall 6% 25%2 18%2 flat YoY Mill conversions $4M 2023 Siding Siding Investment Inflationary Other 2024 Adjusted EBITDA1 Price Volume Co
Slide 9: OSB – Q2 2024 vs. Q2 2023
OSB – Q2 2024 VS. Q2 2023 ($ in millions) $88 $3 $(10) $125 $10 $13 Overall Overall Raw material Mill overhead $73 61mmsf, 17% 40mmsf, pricing $4M $(5)M 21% 10% 36%2 Overall 34% OEE 78%, SG&A $(1)M $37 +3ppts Mix 52%, Commodity 15ppts (2)ppts 16%2 Structural Solutions 20ppts 2023 ASP Commodity Struc
Slide 10: Cash Flow
CASH FLOW ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning cash $ 244 $ 126 $ 222 $ 383 Adjusted EBITDA1 229 93 411 159 Change in working capital 39 10 (27) (135) Interest (net) 5 5 4 (1) Cash taxes (net) (59) (12) (69) (45) Other operating (2) (8)
Slide 11: 2024 Guidance and Sensitivities
2024 GUIDANCE AND SENSITIVITIES Siding Growth and Margin 3rd Quarter Full Year Siding Revenue $390-410M (+16-18% growth) ~ $1.5B (+14-16% growth) Siding Adjusted EBITDA1 $95-105M (~25% margin3) $355-375M (~24% margin3) OSB Guidance OSB Adjusted EBITDA1,2 $10-20M $225-245M Total LP Adjusted EBITDA1,2
Slide 12: Appendix
APPENDIX
Slide 13: Financial Performance
FINANCIAL PERFORMANCE ($ in millions, except per share amounts) Three Months Ended March 31, 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
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 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) 26
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, 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) $ 2
Slide 16: Net Sales and Adjusted EBITDA by Segment
NET SALES AND ADJUSTED EBITDA BY SEGMENT ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Sales Siding $ 415 $ 320 $ 776 $ 651 OSB 351 229 664 418 South America 46 53 93 108 Other 2 9 5 17 $ 814 $ 611 $ 1,539 $ 1,195 Segment Adjusted EBITDA Siding $ 105 $ 59