NASHVILLE, Tenn., May 3, 2023
/PRNewswire/ -- Louisiana-Pacific Corporation (LP) (NYSE: LPX), a
leading manufacturer of high-performance building products, today
reported its financial results for the three months ended
March 31, 2023.
Key Highlights for First Quarter 2023, Compared to First
Quarter 2022
- Siding Solutions net sales flat at $329
million
- Oriented Strand Board (OSB) net sales decreased by 75% to
$189 million, including 63% related
to lower OSB prices
- As a result, net sales from continuing operations decreased by
50% to $584 million, including 40%
related to lower OSB prices
- Income from continuing operations attributed to LP decreased by
$401 million to $21 million ($0.29
per diluted share)
- Adjusted EBITDA(1) was $66
million, a decrease of $532
million
- Adjusted Diluted EPS(1) was $0.34 per share, a decrease of $4.41 per share
(1) This is a non-GAAP financial measure. See "Use of
Non-GAAP Information", "Reconciliation of Net Income to Non-GAAP
Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted
Diluted EPS" below.
Capital Allocation Update
- Paid $114 million in capital
expenditures during the first quarter
- Paid $17 million in cash
dividends during the first quarter
- Declared a quarterly cash dividend of $0.24 per share
- Cash and cash equivalents of $126
million as of March 31,
2023
- Closed on the $80 million
acquisition of the assets owned by Wawa OSB, Inc. on May 2, 2023
"Single-Family housing starts were down nearly 30% in the first
quarter," said Brad Southern, Chair
& CEO. "Despite this challenging market, Siding sales were flat
to prior year quarter, with price increases offsetting lower
volume, and the OSB segment delivered positive EBITDA. LP's
strategy of growing Siding and operating OSB with flexibility and
discipline continues to deliver value."
Q2 2023 Outlook and 2023 Capital Expenditure
Guidance
Our guidance is based on current plans and expectations and is
subject to a number of known and unknown uncertainties and risks,
including those set forth below under "Forward-Looking
Statements."
- Siding Solutions second quarter 2023 revenue is expected to
decrease year-over-year by up to 5%
- OSB second quarter 2023 revenue is expected to be sequentially
higher than the first quarter 2023 by approximately 20%, assuming
that OSB prices published by Random Lengths remain unchanged from
those published on April 28, 2023
(this is an assumption for modeling purposes and not a price
forecast)
- Under these assumptions, second quarter 2023 Adjusted
EBITDA(2) is expected to be greater than $80 million
- Given our current outlook, capital expenditures for 2023,
excluding the $80 million paid for
the Wawa acquisition, are expected to be in the range of
$330 million to $370 million, including $140 million to $160
million for the mill conversions, $120 million to $130
million for sustaining maintenance, and $70 million to $80
million for other strategic growth projects
(2) This is a non-GAAP financial measure. With respect to
Adjusted EBITDA for the second quarter of 2023, certain items that
affect net income on a GAAP basis, such as product-line
discontinuance charges, other operating credits and charges, net,
loss on early debt extinguishment, investment income, and other
non-operating items, that would be required to be included in the
comparable forecasted GAAP measures cannot be reasonably predicted
at this time, and LP is unable to quantify such amounts that would
be required to be included in the comparable forecasted GAAP
measures, without unreasonable effort. As such, the Company is
unable to provide a reasonable estimate of GAAP net income, or a
corresponding reconciliation of Adjusted EBITDA to net
income.
First Quarter 2023 Highlights
Net sales for the first quarter of 2023 decreased year-over-year
by $583 million (or 50%), including a
decrease in OSB segment revenue of $555
million, or 75%, due to 66% lower prices and 26% lower
volume and a decrease in South
America segment revenue of $11
million, or 17%, predominately driven by lower OSB sales
volumes and pricing. Siding segment revenue remained flat
year-over-year.
Income from continuing operations attributed to LP for the first
quarter of 2023 decreased year-over-year by $401 million, or 95%, to $21 million, or $0.29 per diluted share, which reflects a
$532 million decrease in Adjusted EBITDA partially offset by a
$123 million lower income tax
provision
Segment Results
Siding
The Siding segment serves diverse end markets with a broad
product offering of engineered wood siding, trim, and fascia,
including LP® SmartSide® Trim & Siding,
LP® SmartSide® ExpertFinish® Trim
& Siding, LP BuilderSeries® Lap Siding, and
LP® Outdoor Building Solutions™ (collectively
referred to as Siding Solutions).
Segment sales and Adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
|
%
Change
|
Net sales
|
$
331
|
|
$
332
|
|
— %
|
Adjusted
EBITDA
|
67
|
|
83
|
|
(18) %
|
|
Three Months Ended
March 31, 2023
versus 2022
|
|
Average Net
Selling Price
|
|
Unit
Shipments
|
Siding Solutions
|
10 %
|
|
(9) %
|
The combined effects of list price increases and customer mix
shifts drove year-over-year increases in the average net selling
price for the three months ended March 31,
2023. The volume decrease for the three months ended
March 31, 2023 was driven by a
challenging new home construction market and elevated levels of
channel inventory compared to the prior period.
Adjusted EBITDA decreased year-over-year by $15 million in the first quarter of 2023 due to
lower volume and $17 million of raw
material, freight and labor inflation, partially offset by an
increase in the average net sales price.
Oriented Strand Board (OSB)
The OSB segment manufactures and distributes OSB structural
panel products, including our value-added OSB portfolio known as LP
Structural Solutions (which includes LP®
TechShield® Radiant Barrier, LP WeatherLogic®
Air & Water Barrier, LP Legacy® Premium
Sub-Flooring, LP NovaCore™ Thermal Insulated Sheathing,
LP® FlameBlock® Fire-Rated Sheathing and
LP® TopNotch® Sub-Flooring). OSB is
manufactured using wood strands arranged in layers and bonded with
resins.
Segment sales and Adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
|
%
Change
|
Net sales
|
$
189
|
|
$
744
|
|
(75) %
|
Adjusted EBITDA
|
5
|
|
505
|
|
(99) %
|
|
Three Months Ended
March 31, 2023
versus
2022
|
|
Average Net
Selling Price
|
|
Unit
Shipments
|
OSB - Structural
Solutions
|
(56) %
|
|
(38) %
|
OSB -
Commodity
|
(74) %
|
|
(13) %
|
The year-over-year net sales decrease of $555 million for the three months ended
March 31, 2023 reflects a
$470 million decrease in OSB prices,
a $51 million decrease in sales
volume from production curtailments, and a $27 million decrease related in production volume
from the conversion of the Sagola mill to Siding production.
The year-over-year decrease in Adjusted EBITDA of $500 million for the three months ended
March 31, 2023 reflects lower OSB
prices and sales volume (as described above) and increased raw
material and wage inflation of $7
million.
South America
LP's South America segment
manufactures and distributes OSB structural panel and siding
products in South America and
certain export markets. This segment has manufacturing operations
in two countries, Chile and
Brazil, and operates sales offices
in Chile, Brazil, Peru,
Colombia, Argentina, and Paraguay.
Segment sales and Adjusted EBITDA for this segment were as
follows (dollar amounts in millions):
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
|
%
Change
|
Net sales
|
$
55
|
|
$
67
|
|
(17) %
|
Adjusted EBITDA
|
12
|
|
25
|
|
(53) %
|
|
Three Months Ended
March 31, 2023 versus 2022
|
|
Average Net
Selling Price
|
|
Unit
Shipments
|
OSB - Structural
Solutions
|
(6) %
|
|
(15) %
|
Siding
|
(4) %
|
|
42 %
|
South America net sales
decreased year-over-year by $13
million, or 17%, for the three months ended March 31, 2023, predominantly driven by lower OSB
sales volumes and pricing.
The year-over-year decrease in Adjusted EBITDA of $13 million for the three months ended
March 31, 2023 reflects lower sales
volumes and pricing as well as higher raw material costs.
Conference Call
LP will hold a conference call to discuss this release today at
11 a.m. Eastern Time (8 a.m. Pacific Time). Investors will have the
opportunity to listen to the conference call live by going to
investor.lpcorp.com and clicking "Events and Presentations" at
least 15 minutes early to register and download and install any
necessary audio software. For those who cannot listen to the live
broadcast, the recorded webcast and accompanying presentation will
be available to the public online in the Events and Presentations
section of investor.lpcorp.com.
About LP Building Solutions
As a leader in high-performance building solutions,
Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX)
manufactures engineered wood building products that meet the
demands of builders, remodelers, and homeowners worldwide. LP's
extensive offerings include innovative and dependable building
products and accessories, such as Siding Solutions (LP®
SmartSide® Trim & Siding, LP®
SmartSide® ExpertFinish® Trim & Siding,
LP BuilderSeries® Lap Siding, and LP® Outdoor
Building Solutions™), LP Structural Solutions (LP®
TechShield® Radiant Barrier, LP WeatherLogic®
Air & Water Barrier, LP Legacy® Premium
Sub-Flooring, LP® FlameBlock® Fire-Rated
Sheathing, LP NovaCore™ Thermal Insulated Sheathing, and
LP® TopNotch®350 Durable Sub-Flooring), and
oriented strand board (OSB). In addition to product solutions, LP
provides industry-leading customer service and warranties. Since
its founding in 1972, LP has been Building a Better World™ by
helping customers construct beautiful, durable homes while our
stockholders build lasting value. Headquartered in Nashville, Tennessee, LP operates 22 plants
across the U.S., Canada,
Chile, and Brazil. For more information, visit
LPCorp.com.
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. These statements
are based upon the beliefs and assumptions of, and on information
available to, our management; assumptions upon which such
forward-looking statements are based are also forward-looking
statements. Forward-looking statements can be identified by words
such as "may," "will," "could," "should," "believe," "expect,"
"anticipate," "intend," "plan," "estimate," "project," "potential,"
"continue," "likely," or "future" or the negative or other
variations thereof and include other statements regarding matters
that are not historical facts. Examples of forward-looking
statements include, among others, statements LP makes regarding
plans for product development, forecasts of future costs and
expenditures, possible outcomes of legal proceedings, capacity
expansion, and other growth initiatives, and the adequacy of
reserves for loss contingencies. Factors that could cause actual
results to differ materially from those expressed or implied by the
forward-looking statements include, but are not limited to, the
following: changes in governmental fiscal and monetary policies,
including tariffs and levels of employment; changes in general and
global economic conditions, including impacts from global
pandemics, rising inflation, supply chain disruptions and the
military conflict between Russia
and Ukraine; changes in the cost
and availability of capital; changes in the level of home
construction and repair and remodel activity; changes in
competitive conditions and prices for our products; changes in the
relationship between supply of and demand for building products;
changes in the financial or business conditions of third-party
wholesale distributors and dealers; changes in the relationship
between the supply of and demand for raw materials, including wood
fiber and resins, used in manufacturing our products; changes in
the cost and availability of energy, primarily natural gas,
electricity, and diesel fuel; changes in the cost and availability
of transportation; impact of manufacturing our products
internationally; difficulties in the launch or production ramp-up
of newly introduced products; impacts from public health issues
(including global pandemics) on the economy, demand for our
products or our operations, including the actions and
recommendations of governmental authorities to contain such public
health issues; unplanned interruptions to our manufacturing
operations, such as explosions, fires, inclement weather, natural
disasters, accidents, equipment failures, labor shortages or
disruptions, transportation interruptions, supply interruptions,
public health issues (including pandemics and quarantines), riots,
civil insurrection or social unrest, looting, protests, strikes,
and street demonstrations; changes in other significant operating
expenses; changes in currency values and exchange rates between the
U.S. dollar and other currencies, particularly the Canadian dollar,
Brazilian real, and Chilean peso; changes in, and compliance with,
general and industry-specific laws and regulations, including
environmental and health and safety laws and regulations, the U.S.
Foreign Corrupt Practices Act and anti-bribery laws, laws related
to our international business operations, and changes in building
codes and standards; changes in tax laws and interpretations
thereof; changes in circumstances giving rise to environmental
liabilities or expenditures; warranty costs exceeding our warranty
reserves; challenges to or exploitation of our intellectual
property or other proprietary information by others in the
industry; the resolution of existing and future product-related
litigation, environmental proceedings and remediation efforts, and
other legal or environmental proceedings or matters; the effect of
covenants and events of default contained in our debt instruments;
the amount and timing of any repurchases of our common stock and
the payment of dividends on our common stock, which will depend on
market and business conditions and other considerations;
cybersecurity events affecting our information technology systems
or those of our third-party providers and the related costs and
impact of any disruption on our business; and acts of public
authorities, war, political or civil unrest, natural disasters,
fire, floods, earthquakes, inclement weather, and other matters
beyond our control. For additional information about factors that
could cause actual results, events, and circumstances to differ
materially from those described in the forward-looking statements,
please refer to LP's filings with the Securities and Exchange
Commission (SEC). We urge you to consider all of the risks,
uncertainties, and factors identified above or discussed in such
reports carefully in evaluating the forward-looking statements in
this news release. We cannot assure you that the results reflected
in or implied by any forward-looking statement will be realized or
even if substantially realized, that those results will have the
forecasted or expected consequences and effects for or on our
operations or financial performance. The forward-looking statements
made today are as of the date of this news release. Except as
required by law, LP undertakes no obligation to update any such
forward-looking statements to reflect new information, subsequent
events, or circumstances.
Use of Non-GAAP Information
In evaluating our business, we utilize non-GAAP financial
measures that fall within the meaning of SEC Regulation G and
Regulation S-K Item 10(e), which we believe provide users of the
financial information with additional meaningful comparison to
prior reported results. Non-GAAP financial measures do not have
standardized definitions and are not defined by U.S. generally
accepted accounting principles (U.S. GAAP). In this press release,
we disclose income attributed to LP from continuing operations
before interest expense, provision for income taxes, depreciation
and amortization, and exclude stock-based compensation expense,
loss on impairment attributed to LP, product-line discontinuance
charges, other operating credits and charges, net, loss on early
debt extinguishment, investment income, pension settlement charges,
and other non-operating items as Adjusted EBITDA from continuing
operations (Adjusted EBITDA), which is a non-GAAP financial
measure. We have included Adjusted EBITDA in this report because we
view it as an important supplemental measure of our performance and
believe that it is frequently used by interested persons in the
evaluation of companies that have different financing and capital
structures and/or tax rates. We also disclose income attributed to
LP from continuing operations, excluding loss on impairment
attributed to LP, product-line discontinuance charges, interest
expense outside of normal operations, other operating credits and
charges, net, loss on early debt extinguishment, gain (loss) on
acquisition, and pension settlement charges, and adjusting for a
normalized tax rate as Adjusted Income (Adjusted Income). We also
disclose Adjusted Diluted EPS, which is calculated as Adjusted
Income divided by diluted shares outstanding. We believe that
Adjusted Diluted EPS and Adjusted Income are useful measures for
evaluating our ability to generate earnings and that providing
these measures should allow interested persons to more readily
compare the earnings for past and future periods.
Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are
not substitutes for the U.S. GAAP measures of net income, income
attributed to LP from continuing operations, and income attributed
to LP from continuing operations per diluted share or for any other
U.S. GAAP measures of operating performance. It should be noted
that other companies may present similarly titled measures
differently, and therefore, as presented by us, these measures may
not be comparable to similarly titled measures reported by other
companies. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted
EPS have material limitations as performance measures because they
exclude items that are actually incurred or experienced in
connection with the operation of our business.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
LOUISIANA-PACIFIC
CORPORATION AND SUBSIDIARIES
(DOLLAR AMOUNTS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Net
sales
|
$
584
|
|
$
1,167
|
Cost of
sales
|
(483)
|
|
(547)
|
Gross
profit
|
101
|
|
620
|
Selling, general, and
administrative expenses
|
(66)
|
|
(62)
|
Other operating
credits and charges, net
|
(5)
|
|
(1)
|
Income from
operations
|
30
|
|
556
|
Interest
expense
|
(3)
|
|
(3)
|
Investment
income
|
5
|
|
1
|
Other non-operating
items
|
(8)
|
|
(10)
|
Income before income
taxes
|
23
|
|
544
|
Provision for income
taxes
|
(1)
|
|
(124)
|
Equity in
unconsolidated affiliate
|
—
|
|
1
|
Income from
continuing operations
|
22
|
|
421
|
Income from
discontinued operations, net of income taxes
|
—
|
|
62
|
Net
income
|
$
22
|
|
$
483
|
Net (income) loss
attributed to noncontrolling interest
|
(1)
|
|
1
|
Net income
attributed to LP
|
$
21
|
|
$
484
|
|
|
|
|
Net income
attributed to LP per share of common stock:
|
|
|
|
Income per share
continuing operations - basic
|
$
0.29
|
|
$
4.92
|
Income per share
discontinued operations - basic
|
—
|
|
0.72
|
Net income per
share - basic
|
$
0.29
|
|
$
5.64
|
|
|
|
|
Income per share
continuing operations - diluted
|
$
0.29
|
|
$
4.89
|
Income per share
discontinued operations - diluted
|
—
|
|
0.71
|
Net income per
share - diluted
|
$
0.29
|
|
$
5.60
|
|
|
|
|
Average shares of
common stock used to compute net income per share:
|
|
|
|
Basic
|
72
|
|
86
|
Diluted
|
72
|
|
86
|
CONDENSED CONSOLIDATED
BALANCE SHEET (UNAUDITED)
LOUISIANA-PACIFIC
CORPORATION AND SUBSIDIARIES
(DOLLAR AMOUNTS IN
MILLIONS)
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
126
|
|
$
369
|
Receivables
|
148
|
|
127
|
Inventories
|
415
|
|
337
|
Prepaid expenses and
other current assets
|
23
|
|
20
|
Total current
assets
|
713
|
|
854
|
|
|
|
|
Timber and
timberlands
|
33
|
|
40
|
Property, plant, and
equipment, net
|
1,397
|
|
1,326
|
Operating lease
assets
|
42
|
|
44
|
Goodwill and other
intangible assets
|
36
|
|
36
|
Investments in and
advances to affiliates
|
5
|
|
6
|
Restricted
cash
|
—
|
|
14
|
Other assets
|
24
|
|
24
|
Deferred tax
asset
|
10
|
|
7
|
Total
assets
|
$
2,259
|
|
$
2,350
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
$
227
|
|
$
317
|
Income tax
payable
|
1
|
|
19
|
Total current
liabilities
|
229
|
|
336
|
|
|
|
|
Long-term
debt
|
347
|
|
346
|
Deferred income
taxes
|
115
|
|
113
|
Non-current operating
lease liabilities
|
35
|
|
41
|
Other long-term
liabilities
|
56
|
|
53
|
Contingency reserves,
excluding current portion
|
26
|
|
26
|
Total
liabilities
|
808
|
|
916
|
|
|
|
|
Redeemable
noncontrolling interest
|
1
|
|
—
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
88
|
|
88
|
Additional paid-in
capital
|
455
|
|
462
|
Retained
earnings
|
1,375
|
|
1,371
|
Treasury
stock
|
(388)
|
|
(388)
|
Accumulated
comprehensive loss
|
(80)
|
|
(99)
|
Total stockholders'
equity
|
1,450
|
|
1,433
|
Total liabilities
and stockholders' equity
|
$
2,259
|
|
$
2,350
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW (UNAUDITED)
LOUISIANA-PACIFIC
CORPORATION AND SUBSIDIARIES
(DOLLAR AMOUNTS IN
MILLIONS)
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
22
|
|
$
483
|
Adjustments to net
income:
|
|
|
|
Depreciation and
amortization
|
28
|
|
32
|
Gain on sale of
assets
|
—
|
|
(39)
|
Pension loss due to
settlement
|
6
|
|
—
|
Deferred
taxes
|
(2)
|
|
11
|
Other adjustments,
net
|
9
|
|
5
|
Changes in assets and
liabilities (net of acquisitions and divestitures):
|
|
|
|
Receivables
|
(8)
|
|
(127)
|
Prepaid expenses and
other current assets
|
(2)
|
|
3
|
Inventories
|
(76)
|
|
(55)
|
Accounts payable and
accrued liabilities
|
(66)
|
|
(2)
|
Income taxes payable,
net of receivables
|
(30)
|
|
116
|
Net cash provided
(used) by operating activities
|
(119)
|
|
425
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Property, plant, and
equipment additions
|
(114)
|
|
(92)
|
Proceeds from sales of
assets
|
1
|
|
59
|
Other investing
activities
|
—
|
|
1
|
Net cash used in
investing activities
|
(113)
|
|
(33)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Payment of cash
dividends
|
(17)
|
|
(19)
|
Purchase of
stock
|
—
|
|
(104)
|
Other financing
activities
|
(10)
|
|
(15)
|
Net cash used in
financing activities
|
(27)
|
|
(137)
|
EFFECT OF EXCHANGE RATE
ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
3
|
|
11
|
Net (decrease) increase
in cash, cash equivalents, and restricted cash
|
(257)
|
|
266
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
383
|
|
371
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
126
|
|
$
637
|
LOUISIANA-PACIFIC CORPORATION
AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
The following tables set forth: (1) housing starts, (2) our
North American sales volume, and (3) Overall Equipment
Effectiveness (OEE). We consider these items to be key performance
indicators because LP's management uses these metrics to evaluate
our business and trends, measure our performance, and make
strategic decisions, and believes that the key performance
indicators presented provide additional perspective and insights
when analyzing the core operating performance of LP. These key
performance indicators should not be considered superior to, as a
substitute for or as an alternative to, and should be considered in
conjunction with, the U.S. GAAP financial measures presented
herein. These measures may not be comparable to similarly-titled
performance indicators used by other companies.
We monitor housing starts, which is a leading external indicator
of residential construction in the United
States that correlates with the demand for many of our
products. We believe that this is a useful measure for evaluating
our results and that providing this measure should allow interested
persons to more readily compare our sales volume for past and
future periods to an external indicator of product demand. Other
companies may present housing start data differently and therefore,
as presented by us, our housing start data may not be comparable to
similarly-titled indicators reported by other companies.
The following table sets forth housing starts for the three
months ended March 31, 2023 and 2022:
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Housing
starts1:
|
|
|
|
Single-Family
|
191
|
|
267
|
Multi-Family
|
129
|
|
123
|
|
320
|
|
390
|
|
1Actual U.S.
Housing starts data reported by U.S. Census Bureau as published
through April 18, 2023.
|
We monitor sales volumes for our products in our Siding, OSB and
South America segments, which we
define as the number of units of our products sold within the
applicable period. Evaluating sales volume by product type helps us
identify and address changes in product demand, broad market
factors that may affect our performance, and opportunities for
future growth. It should be noted that other companies may present
sales volumes differently and, therefore, as presented by us, sales
volumes may not be comparable to similarly-titled measures reported
by other companies. We believe that sales volumes can be a useful
measure for evaluating and understanding our business.
The following table sets forth sales volumes for the three
months ended March 31, 2023 and 2022:
|
Three Months Ended
March 31, 2023
|
|
Three Months Ended
March 31, 2022
|
Sales
Volume
|
Siding
|
OSB
|
South
America
|
Total
|
|
Siding
|
OSB
|
South
America
|
Total
|
Siding Solutions
(MMSF)
|
383
|
—
|
11
|
394
|
|
421
|
—
|
8
|
429
|
OSB - commodity
(MMSF)
|
—
|
382
|
—
|
382
|
|
—
|
437
|
—
|
437
|
OSB - Structural
Solutions (MMSF)
|
—
|
327
|
127
|
454
|
|
—
|
525
|
150
|
675
|
We measure OEE of each of our mills to track improvements in the
utilization and productivity of our manufacturing assets. OEE is a
composite metric that considers asset uptime (adjusted for capital
project downtime and similar events), production rates, and
finished product quality. We believe that when used in conjunction
with other metrics, OEE can be a useful measure for evaluating our
ability to generate profits, and that providing this measure should
allow interested persons to monitor operational improvements.
OEE for the three months ended March 31, 2023 and 2022 for
each of our segments is listed below:
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Siding
|
76 %
|
|
76 %
|
OSB
|
76 %
|
|
73 %
|
South
America
|
76 %
|
|
74 %
|
LOUISIANA-PACIFIC
CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT
INFORMATION
(DOLLAR AMOUNTS IN
MILLIONS)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Net
sales
|
|
|
|
Siding
|
$
331
|
|
$
332
|
OSB
|
189
|
|
744
|
South
America
|
55
|
|
67
|
Other
|
8
|
|
26
|
Intersegment
sales
|
—
|
|
(1)
|
Total
sales
|
$
584
|
|
$
1,167
|
LOUISIANA-PACIFIC
CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET
INCOME TO NON-GAAP ADJUSTED EBITDA, NON-GAAP ADJUSTED INCOME,
AND NON-GAAP ADJUSTED DILUTED EPS
(DOLLAR AMOUNTS IN
MILLIONS EXCEPT PER SHARE AMOUNTS)
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Net
income
|
$
22
|
|
$
483
|
Add
(deduct):
|
|
|
|
Net loss attributed to
noncontrolling interest
|
(1)
|
|
1
|
Income from
discontinued operations, net of income taxes
|
—
|
|
(62)
|
Income attributed to LP
from continuing operations
|
21
|
|
422
|
Provision for income
taxes
|
1
|
|
124
|
Depreciation and
amortization
|
28
|
|
32
|
Stock-based
compensation expense
|
4
|
|
6
|
Other operating credits
and charges, net
|
5
|
|
1
|
Interest
expense
|
3
|
|
3
|
Investment
income
|
(5)
|
|
(1)
|
Pension settlement
charges
|
6
|
|
—
|
Other non-operating
items
|
3
|
|
10
|
Adjusted
EBITDA
|
$
66
|
|
$
598
|
|
|
|
|
Siding
|
$
67
|
|
$
83
|
OSB
|
5
|
|
505
|
South
America
|
12
|
|
25
|
Other
|
(9)
|
|
(6)
|
Corporate
|
(9)
|
|
(9)
|
Adjusted
EBITDA
|
$
66
|
|
$
598
|
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Net income
attributed to LP from continuing operations per share - diluted
|
$
0.29
|
|
$
4.89
|
|
|
|
|
Net
income
|
$
22
|
|
$
483
|
Add
(deduct):
|
|
|
|
Net (income) loss
attributed to noncontrolling interest
|
(1)
|
|
1
|
Income from
discontinued operations, net of income taxes
|
—
|
|
(62)
|
Income attributed to LP
from continuing operations
|
21
|
|
422
|
Other operating credits
and charges, net
|
5
|
|
1
|
Pension settlement
charges
|
6
|
|
—
|
Reported tax
provision
|
1
|
|
124
|
Adjusted income before
tax
|
33
|
|
547
|
Normalized tax
provision at 25%
|
(8)
|
|
(137)
|
Adjusted
Income
|
$
25
|
|
$
411
|
Diluted shares
outstanding
|
72
|
|
86
|
Adjusted Diluted
EPS
|
$
0.34
|
|
$
4.75
|
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SOURCE LP Building Solutions