LP Reports First Quarter 2013 Results
LP Reports First Quarter 2013 Results
NASHVILLE, Tenn.--(BUSINESS WIRE)-- Louisiana-Pacific Corporation (LP) (NYS: LPX) reported today results for the first quarter of 2013, which included the following:
Total sales for the first quarter of $538 million were higher by 49 percent compared to the year ago quarter.
Income from continuing operations was $65 million ($0.45 per diluted share).
Non-GAAP adjusted income from continuing operations was $59 million ($0.41 per diluted share).
Adjusted EBITDA from continuing operations for the first quarter was $121 million compared to $21 million in the first quarter of 2012.
Cash and cash equivalents were $561 million as of March 31, 2013.
"LP's strong financial results were driven by a broad recovery of building activity across all regions of the U.S., which led to improved demand for our products and increased OSB pricing," CEO Curt Stevens said. "In addition, our South America segment continued to perform well."
For the quarter ended March 31, 2013, LP reported net sales of $538 million, an increase from $362 million in the first quarter of 2012. For the first quarter of 2013, LP reported income from continuing operations of $65 million, or $0.45 per diluted share, as compared to a loss from continuing operations of $11 million, or $0.08 per diluted share for the first quarter of 2012.
ORIENTED STRAND BOARD (OSB) SEGMENT
LP's OSB segment manufactures and distributes OSB structural panel products. The OSB segment reported net sales for the first quarter of 2013 of $287 million, an increase from $149 million of net sales in the first quarter of 2012. For the first quarter of 2013, the OSB segment reported operating income of $98 million compared to break-even results in the first quarter of 2012. For the first quarter, sales volumes were higher by 12 percent and sales prices increased by 82 percent compared to the same period in 2012. The increase in sales price accounted for approximately $124 million increase in both operating results and adjusted EBITDA from continuing operations.
SIDING SEGMENT
LP's Siding segment consists of SmartSide® siding as well as LP's prefinished CanExel® siding line. These products are used in new construction as well as in the repair and remodeling markets. The Siding segment reported net sales of $134 million in the first quarter of 2013, an increase of 18 percent from $113 million in the year-ago first quarter. For the first quarter of 2013, the Siding segment reported operating income of $21 million compared to $17 million in the year-ago quarter. For the first quarter, LP reported $25 million in adjusted EBITDA from continuing operations for this segment, an increase of $4 million compared to the first quarter of 2012. The increase in OSB sales prices sold in this segment accounted for approximately $6 million increase in both operating results and adjusted EBITDA from continuing operations.
ENGINEERED WOOD PRODUCTS SEGMENT (EWP)
The EWP segment is comprised of I-Joist (IJ), Laminated Veneer Lumber and Laminated Strand Lumber (LVL and LSL). These products are principally used in new construction. EWP sales in the first quarter of 2013 totaled $63 million, an increase from $49 million reported a year ago. Operating losses were $4 million for the first quarter of 2013 compared to $3 million in the first quarter of 2012.
SOUTH AMERICA SEGMENT
The South American segment consists of OSB mills located in Chile and Brazil. South America sales in the first quarter of 2013 totaled $45 million, an increase of 6 percent from $42 million in the year-ago first quarter. For the first quarter of 2013, the South America segment reported operating income of $6 million compared to $3 million reported a year ago. For the first quarter, LP reported $9 million in adjusted EBITDA from continuing operations for this segment, an increase of $3 million compared to the first quarter of 2012.
COMPANY OUTLOOK
"I am confident that all of the work we have done to prepare for the housing upturn will allow us to meet customer demand," concluded Stevens.
LP is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its retail, wholesale, homebuilding and industrial customers. Visit LP's web site at www.lpcorp.com for additional information on the company as well as reconciliation of non-GAAP results.
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. The matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts, market demand for the company's products, and prices for structural products; the availability, cost and other terms of capital; the efficiency and consequences of operations improvement initiatives and cash conservation measures; the effect of forestry, land use, environmental and other governmental regulations; the ability to obtain regulatory approvals; and the risk of losses from fires, floods and other natural disasters. These and other factors that could cause or contribute to actual results differing materially from those contemplated by such forward-looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES FINANCIAL AND QUARTERLY DATA (Dollar amounts in millions, except per share amounts) (Unaudited) | ||||||||
Quarter Ended March 31, | ||||||||
2013 | 2012 | |||||||
Net sales | $ | 537.5 | $ | 361.5 | ||||
Income (loss) from operations | $ | 89.2 | $ | (2.1 | ) | |||
Income (loss) from continuing operations before taxes and equity in (income) loss of unconsolidated affiliates | $ | 81.4 | $ | (10.6 | ) | |||
Non-GAAP adjusted income (loss) from continuing operations | $ | 58.6 | $ | (8.8 | ) | |||
Income (loss) from continuing operations | $ | 65.4 | $ | (11.2 | ) | |||
Net income (loss) | $ | 65.3 | $ | (11.3 | ) | |||
Net income (loss) per share - basic | $ | 0.47 | $ | (0.08 | ) | |||
Net income (loss) per share - diluted | $ | 0.45 | $ | (0.08 | ) | |||
Average shares of stock outstanding - basic | 138.4 | 136.6 | ||||||
Average shares of stock outstanding - diluted | 144.4 | 136.6 | ||||||
CONSOLIDATED STATEMENTS OF INCOME LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES (Dollar amounts in millions, except per share amounts) (Unaudited) | ||||||||
Quarter Ended March 31, | ||||||||
2013 | 2012 | |||||||
Net sales | $ | 537.5 | $ | 361.5 | ||||
Operating costs and expenses: | ||||||||
Cost of sales | 392.6 | 313.3 | ||||||
Depreciation and amortization | 18.7 | 19.1 | ||||||
Selling and administrative | 35.4 | 31.3 | ||||||
Loss on sale or impairment of long-lived assets, net | — | 0.1 | ||||||
Other operating credits and charges, net | 1.6 | (0.2 | ) | |||||
Total operating costs and expenses | 448.3 | 363.6 | ||||||
Income (loss) from operations | 89.2 | (2.1 | ) | |||||
Non-operating income (expense): | ||||||||
Interest expense, net of capitalized interest | (10.6 | ) | (12.6 | ) | ||||
Investment income | 3.5 | 4.2 | ||||||
Other non-operating items | (0.7 | ) | (0.1 | ) | ||||
Total non-operating expense | (7.8 | ) | (8.5 | ) | ||||
Income (loss) from continuing operations before taxes and equity in (income) loss of unconsolidated affiliates | 81.4 | (10.6 | ) | |||||
Provision (benefit) for income taxes | 23.2 | (1.2 | ) | |||||
Equity in (income) loss of unconsolidated affiliates | (7.2 | ) | 1.8 | |||||
Income (loss) from continuing operations | 65.4 | (11.2 | ) | |||||
Loss from discontinued operations before taxes | (0.1 | ) | (0.2 | ) | ||||
Benefit for income taxes | — | (0.1 | ) | |||||
Loss from discontinued operations | (0.1 | ) | (0.1 | ) | ||||
Net income (loss) | $ | 65.3 | $ | (11.3 | ) | |||
Income (loss) per share of common stock (basic): | ||||||||
Income (loss) from continuing operations | $ | 0.47 | $ | (0.08 | ) | |||
Loss from discontinued operations | — | — | ||||||
Net income (loss) per share | $ | 0.47 | $ | (0.08 | ) | |||
Net income (loss) per share of common stock (diluted): | ||||||||
Income (loss) from continuing operations | $ | 0.45 | $ | (0.08 | ) | |||
Loss from discontinued operations | — | — | ||||||
Net income (loss) per share | $ | 0.45 | $ | (0.08 | ) | |||
Average shares of stock outstanding - basic | 138.4 | 136.6 | ||||||
Average shares of stock outstanding - diluted | 144.4 | 136.6 | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES (Dollar amounts in millions) (Unaudited) | ||||||||
March 31, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 560.5 | $ | 560.9 | ||||
Receivables | 135.8 | 82.7 | ||||||
Inventories | 255.1 | 209.8 | ||||||
Other current assets | 4.5 | 6.0 | ||||||
Deferred income taxes | 63.3 | 12.3 | ||||||
Current portion of notes receivable from asset sales | 91.4 | 91.4 | ||||||
Assets held for sale | 32.5 | 32.5 | ||||||
Total current assets | 1,143.1 | 995.6 | ||||||
Timber and timberlands | 39.5 | 40.1 | ||||||
Property, plant and equipment, at cost | 2,073.3 | 2,061.6 | ||||||
Accumulated depreciation | (1,327.3 | ) | (1,310.8 | ) | ||||
Net property, plant and equipment | 746.0 | 750.8 | ||||||
Notes receivable from asset sales | 432.2 | 432.2 | ||||||
Long-term investments | 2.5 | 2.0 | ||||||
Restricted cash | 10.5 | 12.0 | ||||||
Investments in and advances to affiliates | 73.5 | 68.6 | ||||||
Deferred debt costs | 8.8 | 9.2 | ||||||
Other assets | 16.0 | 15.5 | ||||||
Long-term deferred tax asset | — | 5.0 | ||||||
Total assets | $ | 2,472.1 | $ | 2,331.0 | ||||
LIABILITIES AND EQUITY | ||||||||
Current portion of long-term debt | $ | 7.9 | $ | 7.8 | ||||
Current portion of limited recourse notes payable | 90.0 | 90.0 | ||||||
Accounts payable and accrued liabilities | 154.6 | 139.5 | ||||||
Current portion of contingency reserves | 2.0 | 2.0 | ||||||
Total current liabilities | 254.5 | 239.3 | ||||||
Long-term debt, excluding current portion | 782.2 | 782.7 | ||||||
Contingency reserves, excluding current portion | 12.6 | 12.8 | ||||||
Other long-term liabilities | 166.6 | 168.8 | ||||||
Deferred income taxes | 163.3 | 93.6 | ||||||
Stockholders' equity: | ||||||||
Common stock | 150.4 | 150.4 | ||||||
Additional paid-in capital | 503.8 | 533.6 | ||||||
Retained earnings | 775.9 | 710.6 | ||||||
Treasury stock | (232.9 | ) | (252.9 | ) | ||||
Accumulated comprehensive loss | (104.3 | ) | (107.9 | ) | ||||
Total stockholders' equity | 1,092.9 | 1,033.8 | ||||||
Total liabilities and stockholders' equity | $ | 2,472.1 | $ | 2,331.0 | ||||
CONDENSED CONSOLIDATED CASH FLOW STATEMENT LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES (Dollar amounts in millions) (Unaudited) | ||||||||
Quarter Ended March 31, | ||||||||
2013 | 2012 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | 65.3 | $ | (11.3 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 18.7 | 19.1 | ||||||
(Income) loss from unconsolidated affiliates | (7.2 | ) | 1.8 | |||||
Loss on sale or impairment of long-lived assets | — | 0.1 | ||||||
Other operating credits and charges, net | 1.6 | (0.2 | ) | |||||
Stock-based compensation related to stock plans | 2.1 | 2.7 | ||||||
Exchange (gain) loss on remeasurement | (0.3 | ) | 0.3 | |||||
Cash settlement of contingencies | (0.1 | ) | (0.6 | ) | ||||
Cash settlements of warranties, net of accruals | (2.0 | ) | (2.4 | ) | ||||
Pension expense, net of cash payments | 1.5 | 1.6 | ||||||
Non-cash interest expense, net | 0.4 | 0.6 | ||||||
Other adjustments, net | 0.5 | (0.1 | ) | |||||
Increase in receivables | (52.4 | ) | (40.5 | ) | ||||
Increase in inventories | (48.6 | ) | (45.8 | ) | ||||
Decrease in other current assets | 1.4 | 1.9 | ||||||
Increase in accounts payable and accrued liabilities | 12.1 | 9.7 | ||||||
Increase (decrease) in deferred income taxes | 23.8 | (1.3 | ) | |||||
Net cash provided by (used in) operating activities | 16.8 | (64.4 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property, plant and equipment additions | (13.2 | ) | (2.6 | ) | ||||
Investments in and advances to joint ventures | 6.8 | (3.0 | ) | |||||
Proceeds from sales of assets | — | 8.9 | ||||||
Decrease in restricted cash under letters of credit/credit facility | 1.5 | 0.9 | ||||||
Net cash provided by (used in) investing activities | (4.9 | ) | 4.2 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
