Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q2 2020 Earnings Presentation
17 slides from Louisiana-pacific's earnings presentation, Aug 4, 2020
Slide 1: Q2 2020 Earnings Presentation
Q2 2020 EARNINGS PRESENTATION August 4, 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: Q2 2020 Highlights
Q2 2020 HIGHLIGHTS Transformation Continues • SmartSide strand revenue growth of 4% compared to Q2-19, despite Single-Family housing starts decline of 13% • $15M EBITDA Impact from Growth and Efficiency • Siding completed strategic exit of fiber • OEE continues to exceed targets Strong Cash Generati
Slide 6: COVID-19 Update
COVID-19 UPDATE Safety • Employees who can work from home are continuing to do so • Maintaining protocols to minimize transmission risk at manufacturing facilities • No production impacts from the few COVID-19 cases at facilities Liquidity • Strong balance sheet with $259M cash on hand at end of Q2
Slide 7: Transformation
TRANSFORMATION 2020 Q2 YTD vs 2019 Q2 YTD U.S. Single Family TTM SmartSide® Strand Segment Growth Efficiency Total Housing Starts1 Revenue ($M) +3% +7% 2019 EBITDA Impact $28 $40 $68 882 854 Siding $5 $4 $9 OSB $10 $5 $15 EWP, LPSA, Corporate $0 $5 $5 2020 EBITDA Impact $15 $13 $28 Q2 2019 Q2 2020 Q
Slide 8: Financial Performance
FINANCIAL PERFORMANCE ($ in millions, except per share amount) PAGE 8
Slide 9: Revenue and EBITDA by Segment
REVENUE AND EBITDA BY SEGMENT ($ in millions) PAGE 9
Slide 10: Cash Flow
CASH FLOW ($ in millions) PAGE 10
Slide 11: Siding – Q2 2020 vs Q2 2019
SIDING – Q2 2020 VS Q2 2019 ($ in millions) $6 $3 $(4) $51 $2 $2 $45 $3 Supply Chain Lower RM Fiber sales volume Net ASP up 1% Savings $2M costs $2M down (29) mmsf $(4)M Volume up 3% OEE 88% Lower fixed versus PY 87% costs $1M OSB sales volume down (26) mmsf 2019 Strand Sales & Efficiency Other Cost
Slide 12: Siding – YTD 2020 vs YTD 2019
SIDING – YTD 2020 VS YTD 2019 ($ in millions) $9 $7 $0 $(7) $93 $84 $2 $4 $3 Net ASP flat Supply Chain Lower RM Fiber sales Savings $2M costs $2M, volume down Volume up offset by (44) mmsf 3% OEE 88% higher $(7)M versus PY 86% freight $(3)M $2M OSB sales volume down (42) mmsf 2019 Strand Sales & Eff
Slide 13: OSB – Q2 2020 vs Q2 2019
OSB – Q2 2020 VS Q2 2019 ($ in millions) $49 $46 Transformation Impact = $5M $12 $3 $(2) $(3) $4 $(2) (69) mmsf (20) mmsf Fixed cost Supply Chain Includes favorable (or 13%) savings $7M Savings $1M RM pricing $5M, $37 Mix 41% freight costs $5M, (down 2 SS volume 90% OEE vs fixed costs $5M, ppts) (66
Slide 14: OSB – YTD 2020 vs YTD 2019
OSB – YTD 2020 VS YTD 2019 ($ in millions) $76 Transformation Impact = $15M $81 $18 $5 $(7) $7 $(6) $3 (119) mmsf 34mmsf Fixed costs Supply Chain Includes favorable (or 11%) savings Savings $3M RM costs $9M, Mix 42% $14m freight costs $10M, $56 (flat to PY) 89% OEE vs fixed costs $2M, SS volume 87%
Slide 15: Appendix
APPENDIX
Slide 16: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA ($ in millions) PAGE 16
Slide 17: Reconciliation of Net Income to Adjusted Income
RECONCILIATION OF NET INCOME TO ADJUSTED INCOME ($ in millions) PAGE 17