Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q2 2003 Earnings Presentation
18 slides from Louisiana-pacific's earnings presentation, Jul 29, 2003
Slide 1: Louisiana-Pacific Corporation Q2 2003 Results
Louisiana-Pacific Corporation Q2 2003 Results July 29, 2003 These slides were prepared and should be read in conjunction with a webcast presentation and earnings release by LP's management on July 29, 2003 relating to LP's financial condition and results of operations as of and for the quarter and s
Slide 2: Forward Looking Statement
Forward Looking Statement 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. The accuracy of such statements is subject t
Slide 3: Financial Results – Quarterly
Financial Results – Quarterly 2003 2002 Quarterly (June 30) Sales $ 478.5 $ 432.3 Income from continuing operations $ 8.9 $ 7.5 Loss from discontinued operations $ ( 26.1) $ (20.7) Net income (loss) $ ( 17.2) $ (13.2) EPS $ (0.16) $ (0.13) 3
Slide 4: Financial Results – Year to Date
Financial Results – Year to Date 2003 2002 Year to Date (June 30) Sales $ 891.6 $ 821.5 Income from continuing operations $ 10.9 $ 7.6 Loss from discontinued operations $ (26.7) $ (26.5) Net income (loss) $ (15.7) $ (22.7) EPS $ (0.15) $ (0.22) 4
Slide 5: Reconciliation of Special Items
Reconciliation of Special Items 6 Months Q2 2003 Q2 2002 2003 2002 Pre - tax income from continuing operations $ 19.3 $ 11.1 $ 22.4 $ 13.9 Gain (loss) on sale or impairment of long-lived assets 29.2 5.8 41.7 4.2 Other operating credits and charges (25.4) (1.5) (25.4) 0.4 Total 3.8 4.3 16.3 4.6 Pre -
Slide 6: OSB
OSB Q2 03 Q2 02 Change YTDQ2 03 YTDQ2 02 Change Sales $ 229.2 $ 194.8 18% $ 423.5 $383.6 10% Profita $ 37.1 $ 25.0 48% $ 50.9 $ 48.1 6% DDA $ 17.3 $ 18.0 $ 36.0 $ 38.9 Volume -4% -4% Price 23% 15% a Profit equals sales less cost of sales, depreciation, amortization and cost of timber harvest and sel
Slide 7: Weekly Random Lengths Price
Weekly Random Lengths Price 7/16” BASIS NORTH CENTRAL Price time Price time of order of shipment 50% 50% $325 $300 $275 $250 $225 $200 $175 $150 3/15/2003 3/22/2003 3/29/2003 4/5/2003 4/12/2003 4/19/2003 4/26/2003 5/3/2003 5/10/2003 5/17/2003 5/24/2003 5/31/2003 6/7/2003 6/14/2003 6/21/2003 6/28/200
Slide 8: Utility Cost by Business
Utility Cost by Business 22% increase (in millions) $45 19% $40 increase $35 $30 $25 $20 $15 $10 $5 $- Q2 02 Q1 03 Q2 03 YTD 02 YTD 03 OSB Wood Composite Plastics EWP Other 8
Slide 9: Composite Wood Products
Composite Wood Products Q2 03 Q2 02 Change YTDQ2 03 YTDQ2 02 Change Sales $ 100.8 $ 101.8 -1% $ 189.5 $188.1 1% Profita $ 10.5 $ 17.6 -40% $ 20.2 $ 28.4 -29% DDA $ 4.3 $ 4.1 $ 8.4 $ 8.1 Volume: Smart Side 11% 15% Commodity OSB -7% 5% Hardboard -4% -11% Price: Smart Side -% -% Commodity OSB 26% 15% H
Slide 10: Plastic Building Products
Plastic Building Products Q2 03 Q2 02 Change YTDQ2 03 YTDQ2 02 Change Sales $ 57.6 $ 43.7 32% $ 100.2 $ 73.8 36% Profita $ 6.1 $ 1.3 369% $ 9.3 $ 2.0 365% DDA $ 1.9 $ 1.6 $ 3.6 $ 2.9 Volume: Vinyl 13% 10% Moulding -3% -5% Decking 83% 167% Price: Vinyl 7% 8% Moulding -4% -2% Decking 26% 26% a Profit
Slide 11: Engineered Wood Products
Engineered Wood Products Q2 03 Q2 02 Change YTDQ2 03 YTDQ2 02 Change Sales $ 72.8 $ 67.8 7% $ 137.3 $ 121.3 13% Profita $ ( 1.1) $ 2.0 -155% $ ( 2.1) $ 4.3 -149% DDA $ 3.6 $ 4.1 $ 7.6 $ 8.3 Volume: LVL 36% 33% I-Joist 3% 5% Price: LVL 5% 2% I-Joist -5% -5% a Profit equals sales less cost of sales, d
Slide 12: Expected Annual Tax Rates
Expected Annual Tax Rates Applied to year to date income (loss) Tax (Benefit) Annual Provision Rate Continuing operations $ 11.1 50% Discontinued operations (16.5) 38% Cumulative effect of accounting change 0.1 38% Total provision $( 5.3) 26% Based upon projected annual income as of June 30, 2003. 1
Slide 13: Balance Sheet
Balance Sheet (in millions, except per share amounts) June 30, Dec. 31, 2003 2002 Working capital a $282 $225 Net debt a $386 $517 Available liquidity a $425 $328 Capital expenditures YTD 2003 $ 26 Projected full year capital expenditures $ 85 Book value per share $9.40 $9.62 a. See page 16 and 17 f
Slide 14: Asset Divesture Plan Update
Asset Divesture Plan Update • Q2 2003 “value”: – $60 million in cash – $53 million in notes, mostly converted to cash through financing transactions in early Q3 • What’s left? … timberlands: – Purchase and sales agreement in place: • Four transactions • 570,000 acres / $350 million • Expected close
Slide 15: QUESTIONS
QUESTIONS 15
Slide 16: Calculation of Working Capital and Net Debt
6/30/03 12/31/02 Calculation of “Working Capital”: Current assets $ 539 $ 491 Current liabilities 257 266 Working capital $ 282 $ 255 Calculation of “Net Debt”: Long term debt $ 1,040 $1,070 Current portion long term debt 1 35 Notes receivable from asset sales (404) (404) Restricted cash (93) ( 47)
Slide 17: Calculation of Available Liquidity
Calculation of “Available Liquidity” 6/30/03 12/31/02 Cash and cash equivalents $ 158 $ 137 Restricted cash 93 48 Total available on revolving credit facilities 272 260 Current outstanding or under LOCs ( 90) (117) Available liquidity $ 425 $328 17
Slide 18: Glossary
Glossary DDA -- depreciation, depletion (cost of timber harvested) and amortization OSB -- oriented strand board LVL -- laminated veneer lumber LOC -- letter of credit 18