Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q4 2022 Earnings Presentation
21 slides from Louisiana-pacific's earnings presentation, Feb 21, 2023
Slide 1: Q4 2022 Results
Q4 2022 RESULTS February 21, 2023
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: Q4 2022 Financial Results
Other Key Points Q4 2022 FINANCIAL RESULTS Ending Liquidity ~$900M $705M $100M $41M $0.61 Net Sales Adj. EBITDA1 Op. CF Adj. EPS1 OSB Reduced (16)% (64)% $(160)M $(1.36) Production (20)% (Curtailment & Sagola) RM Price Inflation 38% -$120M $16M $133M $(33)M, or (16)% Siding Solutions OSB Price Retur
Slide 6: 2022 FY Financial Results
Other Key Points 2022 FY FINANCIAL RESULTS Record Siding Results Completed Houlton $3.9B $1.4B $1.1B $11.77 Siding Conversion Net Sales Adj. EBITDA1 Op. CF Adj. EPS1 Siding Mill Conversion (2)% (26)% $(340)M $(1.47) Capex ~190M Repurchased 14M Shares Raw Material Inflation 26% -$400M $969M $414M $(1
Slide 7: Siding Growth and Innovation
SIDING GROWTH AND INNOVATION Growth (TTM) Q4 Innovation Mix Q4 2021 Volume Q4 2022 Volume 11% 10% 89% 90% ExpertFinish, BuilderSeries, Shakes, and ArchForm Lap, Panel, Trim, Soffit 1 Actual U.S. housing starts data from U.S. Census Bureau as Total Revenue Growth = 20% reported on January 19, 2023 In
Slide 8: Siding – Q4 2022 vs. Q4 2021
SIDING – Q4 2022 VS. Q4 2021 ($ in millions) $40 $(5) $32 $(27) $88 $3 $38 $48 Overall 20% Mill conversions Raw PY Swan $(4)M materials Valley press Overall 15% OEE 77% 23% Sales & $(21)M rebuild $6M 17% (PY 72%) Marketing Freight ExpertFinish $(1)M $(4)M costs $(2)M 2021 Adj Siding Solutions Siding
Slide 9: Siding – FY 2022 vs. FY 2021
SIDING – FY 2022 VS. FY 2021 ($ in millions) $50 $51 $(31) $(123) $161 $339 $(9) $289 Overall 11% Mill conversions Raw SG&A Overall 14% $(21)M materials $(12)M OEE 76% $(93)M 25% (PY 73%) Sales & Marketing PY Swan 23% $(10)M Freight Valley press $(21)M rebuild $6M 2021 Adj Siding Solutions Price Sid
Slide 10: OSB – Q4 2022 vs. Q4 2021
OSB – Q4 2022 VS. Q4 2021 ($ in millions) $(218) $231 Overall (8)% Overall (31)% Raw materials Inventory Capacity related Capacity related $(11)M Valuation $(10)M (15)% (5)% Mill costs $(8)M $(120) OEE 71%, Mix 38%, (7)ppts SG&A $(6)M (2)ppts 49% $(11) Overall (36)% 5% Commodity (36)% $(50) Structur
Slide 11: OSB – FY 2022 vs. FY 2021
OSB – FY 2022 VS. FY 2021 ($ in millions) $(497) $1,531 $(400) $(41) $65 $(79) $1,034 $(43) Overall (17)% Overall (3)% Overall 8% Raw materials Mill costs $(7)M Commodity Capacity Capacity related $(71)M Inventory 64% (41)% related 19% 14% valuation $(10)M 50% Structural OEE 72%, Mix 48%, 3ppts SG&A
Slide 12: Q4 2022 vs. Q4 2021 Summary
Q4 2022 VS. Q4 2021 SUMMARY ($ in millions) 1 $37 1 This is a non-GAAP financial measure. See “Statement Relating to the Use of Non-GAAP Financial Measures” and “Reconciliation of Net Income to Non-GAAP Adjusted EBITDA.” PAGE 12
Slide 13: FY 2022 vs. FY 2021 Summary
FY 2022 VS. FY 2021 SUMMARY ($ in millions) FY 2022 vs. FY 2021 Revenue Adj. EBITDA1 2021 $ 3,915 $ 1,877 North America OSB price, excluding freight (400) (400) OSB market curtailment (37) (18) Siding Solutions growth (including S&M) 300 208 Structural Solutions growth 156 $294 105 OSB commodity vol
Slide 14: Cash Flow
CASH FLOW ($ in millions) 1 This is a non-GAAP financial measure. See “Statement Relating to the Use of Non-GAAP Financial Measures” and “Reconciliation of Net Income to Non-GAAP Adjusted EBITDA” and “Reconciliation of Income from discontinued operations to Non-GAAP Adjusted EBITDA from discontinued
Slide 15: Guidance
GUIDANCE Q1 2023 REVENUE & ADJUSTED EBITDA(1) Siding Solutions Q1 YoY Revenue Change Flat to 5% Decrease OSB Revenue Compared to Q4 2022(1) ~20% Decrease LP Consolidated Adjusted EBITDA(1, 2) >$35M 1 Predicated on the assumption that OSB prices published by Random Lengths remain unchanged from those
Slide 16: Appendix
APPENDIX
Slide 17: Financial Performance
FINANCIAL PERFORMANCE ($ in millions, except per share amounts) PAGE 17
Slide 18: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA ($ in millions) PAGE 18
Slide 19: 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) PAGE 19
Slide 20: Revenue and Adjusted EBITDA by Segment
REVENUE AND ADJUSTED EBITDA BY SEGMENT ($ in millions) PAGE 20
Slide 21: Reconciliation of Income from Discontinued Operations to Non-GAAP Adjusted EBITDA
RECONCILIATION OF INCOME FROM DISCONTINUED OPERATIONS TO NON-GAAP ADJUSTED EBITDA FROM DISCONTINUED OPERATIONS ($ in millions) PAGE 21