Owens Corning Inc · NYSE:OC
Owens Corning — Q2 2020 Earnings Presentation
16 slides from Owens Corning's earnings presentation, Jul 29, 2020
Slide 1: Second-Quarter 2020 Results
SECOND-QUARTER 2020 RESULTS Brian Chambers | Chairman & Chief Executive Officer Prith Gandhi| Vice President, Chief Financial Officer (interim) July 29, 2020 | Q2 2020
Slide 2: Forward-Looking Statements and Non-GAAP Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation and the associated remarks contain forward-looking statements. We caution you against relying on these statements as they involve risks and uncertainties that are difficult to predict and the Company’s actual results may differ mater
Slide 3: Agenda
AGENDA Business updates Brian Chambers Financial results Prith Gandhi Business outlook Brian Chambers Questions and discussion All Company Delivered Net Sales of $1.6 Billion 3
Slide 4: Highlights
HIGHLIGHTS • Delivered solid quarterly results in a challenging environment • Revenue down 15%, 14% on a constant currency basis • Adjusted EBIT of $167mm, down $64mm from the same period last year • Continued strong operating cash flow of $281mm; total liquidity increased to about $1.5b • Sustained
Slide 5: Key Financial Data
KEY FINANCIAL DATA ($ in millions, except per share data) Q2 2020 Q2 2019 YTD 2020 YTD 2019 Net sales 1,625 1,918 3,226 3,585 Net earnings (loss) attributable to Owens Corning 96 138 (821) 182 Diluted earnings (loss) per common share (EPS) $0.88 $1.26 ($7.55) $1.66 attributable to Owens Corning comm
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $167 $9 $5 $171 Gains on sale of Restructuring certain precious costs metals Q2 2020 Adj. EBIT Q2 2020 EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 6
Slide 7: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $3 $10 $61 $10 $231 Roofing Insulation Composites Corporate $167 Q2 2019 Adj. EBIT Q2 2020 Adj. EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 7
Slide 8: Insulation Business
INSULATION BUSINESS Current year financial performance ($ in millions) Q2 2020 Q2 2019 YTD 2020 YTD 2019 Net sales 595 661 1,198 1,252 EBIT 32 42 71 57 Delivered $32mm in EBIT EBIT as % of net sales 5% 6% 6% 5% D&A 49 49 98 98 Generated earnings growth in the North American residential Five-year fin
Slide 9: Composites Business
COMPOSITES BUSINESS Current year financial performance ($ in millions) Q2 2020 Q2 2019 YTD 2020 YTD 2019 Net sales 398 535 892 1,048 EBIT 6 67 50 124 Generated $6mm in EBIT EBIT as % of net sales 2% 13% 6% 12% D&A 39 38 77 77 Volumes in downstream specialty applications Five-year financial performan
Slide 10: Roofing Business
ROOFING BUSINESS Current year financial performance ($ in millions) Q2 2020 Q2 2019 YTD 2020 YTD 2019 Net sales 677 778 1,232 1,392 EBIT 148 151 212 225 Produced EBIT of $148mm EBIT as % of net sales 22% 19% 17% 16% D&A 15 13 29 26 Resilient shingle market recovery leads to improving Five-year finan
Slide 11: Significant Financial Matters
SIGNIFICANT FINANCIAL MATTERS • First-half free cash flow improved by $15mm compared to 1H 2019 on lower year-over- year earnings • Completed the issuance of $300mm 10-year bond with a yield of 3.875% • Paid down $210mm of the $400mm revolver balance drawn at the end of Q1 2020 • Through June, retur
Slide 12: Business Outlook
BUSINESS OUTLOOK • Key economic factors that continue to impact the company’s businesses are global industrial production, U.S. housing starts, and global commercial and industrial construction activity • The COVID-19 pandemic will continue to create uncertainty in the company’s end markets. The mag
Slide 13: Questions and Discussion
QUESTIONS AND DISCUSSION
Slide 14: Appendix A: Non-GAAP Reconciliations – Table 1
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 1 14
Slide 15: Appendix A: Non-GAAP Reconciliations – Table 2
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 2 15
Slide 16: Appendix A: Non-GAAP Reconciliations – Table 3
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 3 16