Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q2 2019 Earnings Presentation
20 slides from Louisiana-pacific's earnings presentation, Aug 6, 2019
Slide 1: Q2 2019 Earnings Presentation
Q2 2019 EARNINGS PRESENTATION August 6, 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: Q2 2019 Highlights
Q2 2019 HIGHLIGHTS Growth in a Challenging Market ▪ N.A. OSB volumes down 13%, prices down 44% ▪ 42% of OSB volume from valued-added Structural Solutions portfolio ▪ 3% SmartSide Strand revenue growth — record quarterly revenue of $200 million ▪ Acquired PSPI, a prefinished siding company ▪ Launched
Slide 6: Transformation
TRANSFORMATION ($ in millions) 2019 1H vs 2018 1H U.S. Single Family TTM SmartSide® Strand Housing Starts1 Revenue ($M) Segment Growth Efficiency Total -3% +10% Siding $13 $5 $18 882 854 OSB $4 $9 $13 EWP & LPSA - $3 $3 2019 YTD EBITDA Impact $17 $17 $34 2021 EBITDA Target2 $90 $75 $165 Q2 2018 Q2 2
Slide 7: Q2 2019 Results
Q2 2019 RESULTS
Slide 8: Financial Results
FINANCIAL RESULTS ($ in millions, except per share amount) 1 Other operating charges and credits and (gain) loss on sale or impairment of long-lived assets, net 8
Slide 9: Sales and EBITDA by Segment
SALES AND EBITDA BY SEGMENT ($ in millions) 9
Slide 10: Siding Comparison – Q2 2019 versus Q2 2018
SIDING COMPARISON – Q2 2019 VERSUS Q2 2018 ($ in millions) Transformation Impact = $5M $5 ($3) $3 ($6) ($11) $63 ($5) Operational Investment Volume down $46 SmartSide® Increased RM, energy Strand sales & savings from in OSB mill 59% primarily and wage revenue marketing Overall conversion due to infl
Slide 11: Siding Comparison – 1H 2019 versus 1H 2018
SIDING COMPARISON – 1H 2019 VERSUS 1H 2018 ($ in millions) Transformation Impact = $18M $20 ($7) $5 ($15) ($16) $108 ($7) $88 SmartSide® Increased Operational Investment Volume down RM, energy Strand sales & savings from in OSB mill 63% primarily and wage revenue marketing Overall conversion due to
Slide 12: OSB Comparison – Q2 2019 versus Q2 2018
OSB COMPARISON – Q2 2019 VERSUS Q2 2018 ($ in millions) Transformation Impact = $7M ($95) Structural Structural Operational Cost savings, $163 Solutions1 Solutions1 savings from net of sales price volume 43% of Overall inflation and down 38% OSB Equipment logistics Effectiveness (OEE), and Supply Ch
Slide 13: OSB Comparison – 1H 2019 versus 1H 2018
OSB COMPARISON – 1H 2019 VERSUS 1H 2018 ($ in millions) ($156) Transformation Impact = $13M $268 Structural Structural Operational Cost savings, Solutions1 Solutions1 savings from net of sales price volume 42% of Overall inflation and down 32% OSB Equipment logistics Effectiveness (OEE), and Supply
Slide 14: Cash Flow
14 CASH FLOW ($ in millions) Quarter Ended June 30 Six Months Ended June 30 2019 Bi(W) 2018 2019 Bi(W) 2018 Beginning cash, cash equivalents and restricted cash $ 375 $ (534) $ 892 $ (50) Adjusted EBITDA 53 (189) 111 (291) Working capital 9 (30) (73) 11 Interest (net) — (5) (5) (2) Cash taxes (net)
Slide 15: 2019 Guidance and Long-Term Targets
2019 GUIDANCE Capital investment $160M – $170M Strand Siding revenue growth 10% OSB OEE improvement1 1.7 pts LONG-TERM TARGETS Volume from Structural Solutions2 50%+ Annual Siding Strand revenue growth 10-12% Overall Siding EBITDA margin 20%+ Percentage of cash flow from operations to be returned to
Slide 16: Appendix
APPENDIX
Slide 17: Siding
SIDING $ in millions a Operating income equals sales less cost of sales and selling and administration directly associated with the segment. b Adjusted EBITDA from continuing operations 17
Slide 18: OSB
OSB $ in millions a Operating income equals sales less cost of sales and selling and administration directly associated with the segment. b Adjusted EBITDA from continuing operations 18 C Formerly Value-added OSB
Slide 19: EWP
EWP $ in millions a Operating income equals sales less cost of sales and selling and administration directly associated with the segment. b Adjusted EBITDA from continuing operations 19
Slide 20: LPSA
LPSA $ in millions a Operating income equals sales less cost of sales and selling and administration directly associated with the segment. b Adjusted EBITDA from continuing operations 20