Louisiana-pacific Corporation · NYSE:LPX
Louisiana-pacific — Q3 2022 Earnings Presentation
19 slides from Louisiana-pacific's earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 Results
Q3 2022 RESULTS November 1, 2022
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-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: Q3 2022 Financial Results
Other Key Points Q3 2022 FINANCIAL RESULTS EWP Sale Proceeds, net $202M $852M $200M $195M $1.72 Net Sales Adj. Op. CF Adj. EPS1 Ending Cash Balances (16)% EBITDA1 $(316)M $(1.80) $482M (58)% Raw Material Price Inflation YoY $(44)M or (21)% (OSB & Siding) 27% $(252)M $341M $86M Siding Solutions OSB P
Slide 6: Q3 2022 Highlights
Q3 2022 HIGHLIGHTS • Siding Solutions sales increased by 27%, setting new records for price and volume. • Structural Solutions sales volume increased year-over-year by 10%. • Paid $325M to repurchase 5.6M shares. • Closed on the sale of the Engineered Wood Products (EWP) segment on August 1, 2022. P
Slide 7: Siding Growth and Innovation
SIDING GROWTH AND INNOVATION Growth (September TTM) Q3 Innovation Mix U.S. Single Family Q3 2021 Volume Q3 2022 Volume Siding Volume Siding Price Housing Starts1 +13% 10% 11% +6% -5% 90% 89% 2021 2022 2021 2022 2021 2022 ExpertFinish, BuilderSeries, Shakes, and ArchForm 1 Actual U.S. housing starts
Slide 8: Capacity Update
CAPACITY UPDATE —OSB 5,000 - i 0 —SmartSide © Houlton oss 4soo + Cc] —Expert Finish 2 vA) @ Peace Valley OSB @ 4,000 + a CC) Sagola OSB @ 3,500 | ro) © Houlton siding 3,000 | is ® © Sagola Siding ® 2,500 } © I id Houlton L2 Siding 5 0 | D : = Roaring River = 1500 | Green Bay L2 1,000 @ © rH) 1) CJ)
Slide 9: Siding – Q3 2022 vs. Q3 2021
SIDING – Q3 2022 VS. Q3 2021 ($ in millions) $17 $0 $12 $(32) $51 $(14) $90 $73 Overall 16% Overall 9% Sales & Raw Mill costs Marketing $(3)M materials $(8)M OEE 76% $(23)M 23% (PY 74%) Mill conversions Maintenance 23% $3M Freight $(7)M $(4)M 2021 Siding Solutions Siding Solutions Investment Inflati
Slide 10: OSB – Q3 2022 vs. Q3 2021
OSB – Q3 2022 VS. Q3 2021 ($ in millions) $(268) $381 $(252) $24 $(25) $5 $(20) $113 Overall (41)% Overall 2% Overall 10% Raw materials Maintenance $(21)M $(10)M 63% Commodity Capacity related Capacity related (41)% 5% 3% 29% Structural Solutions OEE 70% (PY Mix 46% (+2ppts (42)% 74%) vs PY) 2021 AS
Slide 11: Q3 2022 vs. Q3 2021 Summary
Q3 2022 VS. Q3 2021 SUMMARY ($ in millions) Q3 2021 vs Q3 2022 Revenue EBITDA(1) Q3 2021 Actual $ 1,018 $ 480 OSB price, excluding freight (252) (252) OSB commodity volume 18 12 $77M EBITDA benefit of Siding Solutions growth (incl. sales and marketing) 82 60 strategic transformation Structural Solut
Slide 12: Cash Flow
CASH FLOW ($ 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 13: 2022 Capex Guidance
2022 CAPEX GUIDANCE Full-Year Capital Investment $400M-$420M Siding Mill Conversions $190M-$195M Other Strategic Growth Capital $90M-$95M Sustaining Maintenance Capital $120M-$130M Q4 2022 REVENUE & ADJUSTED EBITDA(1) Siding Solutions Q4 YoY Revenue Growth >30% OSB Revenue Compared to Q3 2022(1) ~30
Slide 14: Appendix
APPENDIX
Slide 15: Financial Performance
FINANCIAL PERFORMANCE ($ in millions, except per share amounts) PAGE 15
Slide 16: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA ($ in millions) PAGE 16
Slide 17: 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 17
Slide 18: Revenue and Adjusted EBITDA by Segment
REVENUE AND ADJUSTED EBITDA BY SEGMENT ($ in millions) PAGE 18
Slide 19: 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) 1The gain on sale in the three months ended September 30, 2022 is for the divestiture of the EWP segment assets which closed in August of 2022. The gain on sale in the nine