LP Reports Third Quarter 2011 Results
NASHVILLE, Tenn., Nov 07, 2011 (BUSINESS WIRE) -- Louisiana-Pacific Corporation
(LP) (LPX) reported today results for the third quarter of 2011, which included
the following:
-- Total sales for the third quarter of $351 million were higher by 9% percent
versus a year ago.
-- Loss from continuing operations was $59 million, or $0.44 per diluted share
which includes an after-tax non-cash charge of $38 million or $0.28 per diluted
share associated with the impairment of our laminated strand lumber (LSL)
facility.
-- Adjusted EBITDA from continuing operations for the third quarter was a loss of
$6 million compared to income of $4 million in the third quarter of 2010.
"The building products market moved ahead at a slow place in the third quarter,"
said Rick Frost, Chief Executive Officer. "Housing activity remains at low
levels, consumer confidence has been negatively affected by the political
situation in Washington and job recovery remains muted. LP was agile in our
response to the market conditions and ended the quarter with slightly higher cash
balances than at the end of June."
THIRD QUARTER RESULTS
For the quarter ended September 30, 2011, LP reported net sales of $351 million,
an increase from $323 million in the third quarter of 2010. For the third
quarter, the company reported an operating loss of $73 million as compared to a
$16 million in the third quarter of 2010.
For the third quarter of 2011, LP reported a loss from continuing operations of
$59 million, or $0.44 per diluted share, as compared to a loss from continuing
operations of $31 million, or $0.23 per diluted share for the third quarter of
2010.
YEAR TO DATE RESULTS
For the nine months ended September 30, 2011, LP reported net sales of $1.0
billion, slightly lower than the first nine months of 2010. For the first nine
months of 2011, LP reported an operating loss of $115 million as compared to
income in the comparable period of 2010 of $10 million. Adjusted EBITDA from
continuing operations for the first nine months of 2011 was a loss of $3 million
compared to income of $81 million in the first nine months of 2010.
For the first nine months of 2011, LP reported a loss from continuing operations
of $115 million, or $0.87 per diluted share, as compared to a loss from
continuing operations of $30 million, or $0.23 per diluted share, for the first
nine months of 2010.
ORIENTED STRAND BOARD (OSB) SEGMENT
LP's OSB segment manufactures and distributes OSB structural panel products. LP
is currently operating seven facilities and has indefinitely curtailed three
other facilities due to market conditions. The OSB segment reported net sales for
the third quarter of 2011 of $139 million, flat with $140 million of net sales in
the third quarter of 2010. For the third quarter of 2011, the OSB segment
reported an operating loss of $16 million compared with a loss of $5 million in
the third quarter of 2010. For the third quarter, LP realized a decline of $11
million in adjusted EBITDA from continuing operations for this segment as
compared to the third quarter of 2010. For the third quarter of 2011 as compared
to the third quarter of 2010, sales volumes were up 5 percent with sales price
decreasing by 7 percent. The decrease in sales price accounted for approximately
a $9 million dollar decrease 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 $112
million in the third quarter of 2011, an increase of 7 percent from $105 million
in the year-ago third quarter. For the third quarter of 2011, the Siding segment
reported an operating income of $12 million compared to $9 million in the
year-ago quarter. For the third quarter, LP reported $16 million in adjusted
EBITDA from continuing operations, an increase of $3 million as compared to the
third quarter of 2010.
In the third quarter of 2011, sales increased due to improving retail performance
and slightly higher housing starts.
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 third quarter of 2011 totaled $55 million, a
increase of 44 percent from $38 million in the year-ago quarter. Operating losses
decreased to $3 million for the third quarter of 2011 from $5 million for the
third quarter of 2010. For the third quarter, LP realized an increase in adjusted
EBITDA from continuing operations of $2 million for this segment as compared to
the third quarter of 2010.
"During the third quarter, LP was required, due to accounting rules, to record a
$62.0 million impairment on our Houlton LSL facility", said Frost. "I want to be
very clear that this was an accounting driven decision as we continue to be very
committed to this product line and see significant opportunities in the future,"
he concluded.
The improved operating results in the third quarter were driven by increased
sales volumes, primarily on export sales, and improved operations at our LSL
facility.
COMPANY OUTLOOK
"LP will continue to act cautiously for the rest of 2011 and into 2012," Frost
continued. "While there has been some recent good news in housing starts and
remodeling activity, the base economy seems to be fairly flat. Longer term, the
estimated 23.2 million adults now living with their parents should eventually
become homeowners," Frost concluded.
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
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 EndedNine Months Ended
September 30,September 30,
------------------------------------------------
2011201020112010
-------------- -------------- ---------------- ----------------
Net sales$ 350.6$ 322.8$ 1,044.7$ 1,067.3
Income (loss) from operations$ (72.7)$ (15.9)$(114.5)$10.3
Loss from continuing operations before taxes and equity in losses of$ (74.2)$ (43.6)$(134.5)$(40.3)
unconsolidated affiliates
Loss from continuing operations excluding (gain) loss on sale or$ (25.5)$ (12.2)$(77.2)$(10.1)
impairment of long-lived assets and other operating charges and
credits, net
Loss from continuing operations$ (59.3)$ (30.9)$(115.1)$(29.8)
Net loss attributed to LP$ (65.6)$ (32.0)$(124.1)$(32.2)
Net loss per share - basic$ (0.49)$ (0.24)$(0.94)$(0.25)
Net loss per share - diluted$ (0.49)$ (0.24)$(0.94)$(0.25)
Average shares of stock outstanding - basic134.5131.1132.4128.5
Average shares of stock outstanding - diluted134.5131.1132.4128.5
Calculation of income (loss) from continuing operations excluding
(gain) loss on sale or impairment of long-lived assets, other than
temporary investment impairments and other operating credits and
charges, net :
Quarter EndedNine Months Ended
September 30,September 30,
---------------------------------------------
2011201020112010
-------------- -------------- --------------- --------------
Loss from continuing operations$ (59.3)$ (30.9)$ (115.1)$ (29.8)
(Gain) loss on sale or impairment of long-lived assets, net65.00.973.02.1
Other operating credits and charges, net(9.8)2.3(11.2)2.8
Other than temporary investment impairment--16.9--16.9
-----------------------------------------
55.220.161.821.8
Benefit for income taxes on above items(21.4)(1.4)(23.9)(2.1)
-----------------------------------------------------
33.818.737.919.7
-----------------------------------------
$ (25.5)$ (12.2)$(77.2)$ (10.1)
=== ===== ====== ===== ====== ====== ====== ===== ===
Per share - basic$ (0.19)$ (0.09)$(0.58)$ (0.08)
Per share - diluted$ (0.19)$ (0.09)$(0.58)$ (0.08)
CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter EndedNine Months Ended
September 30,September 30,
------------------------------------------------
2011201020112010
-------------- -------------- ---------------- ----------------
Net sales$ 350.6$ 322.8$ 1,044.7$ 1,067.3
Operating costs and expenses:
Cost of sales322.0289.1953.3903.4
Depreciation and amortization19.618.761.261.5
Selling and administrative26.527.782.987.2
(Gain) loss on sale or impairment of long-lived assets, net65.00.973.02.1
Other operating credits and charges, net(9.8)2.3(11.2)2.8
--------------------------------------------------
Total operating costs and expenses423.3338.71,159.21,057.0
--------------------------------------------
Income (loss) from operations(72.7)(15.9)(114.5)10.3
-----------------------------------------------------
Non-operating income (expense):
Other than temporary investment impairment--(16.9)--(16.9)
Interest expense, net of capitalized interest(14.2)(15.3)(42.6)(49.8)
Investment income16.74.924.215.1
Other non-operating items(4.0)(0.4)(1.6)1.0
-----------------------------------------------------
Total non-operating expense(1.5)(27.7)(20.0)(50.6)
--------------------------------------------------------
Loss from continuing operations before taxes and equity in losses of(74.2)(43.6)(134.5)(40.3)
unconsolidated affiliates
Benefit for income taxes(20.9)(16.4)(36.1)(14.0)
Equity in loss of unconsolidated affiliates6.03.716.73.5
--------------------------------------------
Loss from continuing operations(59.3)(30.9)(115.1)(29.8)
--------------------------------------------------------
Loss from discontinued operations before taxes(10.3)(1.3)(14.4)(3.6)
Benefit for income taxes(4.0)(0.5)(5.6)(1.4)
--------------------------------------------------------
Loss from discontinued operations(6.3)(0.8)(8.8)(2.2)
--------------------------------------------------------
Net loss(65.6)(31.7)(123.9)(32.0)
Less: Net income attributed to non-controlling interest--0.30.20.2
--------------------------------------------
Loss attributed to Louisiana-Pacific Corporation$ (65.6)$ (32.0)$(124.1)$(32.2)
=== ===== ====== ===== ====== ======= ====== ======= ===
Loss per share of common stock (basic and diluted):
Loss from continuing operations$ (0.44)$ (0.23)$(0.87)$(0.23)
Loss from discontinued operations(0.05)(0.01)(0.07)(0.02)
--------------------------------------------------------
Net loss per share$ (0.49)$ (0.24)$(0.94)$(0.25)
=== ===== ====== ===== ====== ======= ====== ======= ===
Average shares of stock outstanding - basic and diluted134.5131.1132.4128.5
============================================
Amounts attributed to LP Corporation common shareholders
Loss from continuing operations, net of tax$ (59.3)$ (31.2)$(115.3)$(30.0)
Loss from discontinued operations, net of tax(6.3)(0.8)(8.8)(2.2)
--------------------------------------------------------
$ (65.6)$ (32.0)$(124.1)$(32.2)
=== ===== ====== ===== ====== ======= ====== ======= ===
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
September 30, 2011December 31, 2010
------------------- ------------------
ASSETS
Cash and cash equivalents$360.1$389.3
Receivables86.266.8
Income tax receivable4.418.7
Inventories156.0151.9
Prepaid expenses and other current assets8.65.6
Deferred income taxes12.823.4
Current portion of notes receivable from asset sales10.0--
Assets held for sale52.757.9
-----------------------------
Total current assets690.8713.6
-----------------------------
Timber and timberlands44.846.8
-----------------------------
Property, plant and equipment, at cost2,039.22,112.5
Accumulated depreciation(1,246.8)(1,195.4)
-----------------------------------
Net property, plant and equipment792.4917.1
-----------------------------
Notes receivable from asset sales523.5533.5
Long-term investments0.515.4
Restricted cash14.531.1
Investments in and advances to affiliates98.8110.0
Deferred debt costs8.710.1
Other assets25.227.1
Long-term deferred tax asset3.95.9
-----------------------------
Total assets$ 2,203.1$ 2,410.6
====== ============ =======
LIABILITIES AND EQUITY
Current portion of long-term debt$10.6$0.2
Accounts payable and accrued liabilities129.1127.8
Current portion of contingency reserves4.07.0
-----------------------------
Total current liabilities143.7135.0
-----------------------------
Long-term debt, excluding current portion716.2714.5
Contingency reserves, excluding current portion17.825.9
Other long-term liabilities121.1129.8
Deferred income taxes119.9164.8
Redeemable non-controlling interest--22.8
Stockholders' equity:
Common stock149.8144.8
Additional paid-in capital554.6559.4
Retained earnings739.0863.1
Treasury stock(279.8)(279.9)
Accumulated comprehensive loss(79.2)(69.6)
-----------------------------------
Total stockholders' equity1,084.41,217.8
-----------------------------
Total liabilities and stockholders' equity$ 2,203.1$ 2,410.6
====== ============ =======
CONSOLIDATED CASH FLOW STATEMENT
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Quarter Ended September 30,Nine Months Ended September 30,
----------------------------- ----------------------------------
2011201020112010
-------------- -------------- ----------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$ (65.6)$ (31.7)$ (123.9)$ (32.0)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization19.618.761.261.5
Loss from unconsolidated affiliates6.03.716.73.5
Loss on sale or impairment of long-lived assets65.00.973.02.1
Other operating credits and charges, net(9.8)(0.8)(11.2)1.9
Other-than-temporary investment impairment--16.9--16.9
Realized gain on sale of long-term-investment(15.2)--(15.2)--
Exchange (gain) loss on remeasurement(3.8)0.2(1.1)0.4
Cash settlement of contingencies(0.4)(5.0)(1.3)(8.4)
Pension (payments) expense, net(10.4)(8.7)(10.0)(5.3)
Stock-based compensation expense1.61.76.47.0
Other adjustments, net9.1(2.3)16.71.3
Decrease (increase) in receivables2.531.2(22.2)(19.5)
Decrease (increase) in income tax receivable9.6(2.7)14.334.7
Decrease (increase) in inventories14.617.5(6.0)(6.7)
Decrease (increase) in prepaid expenses(0.3)0.7(3.2)(0.9)
Increase (decrease) in accounts payable and accrued liabilities3.6(12.6)1.3(4.0)
Decrease in deferred income taxes(21.0)(18.3)(29.3)(7.5)
---------------------------------------------------------
Net cash provided by (used in) operating activities5.19.4(33.8)45.0
-----------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions(5.4)(6.1)(13.4)(11.5)
Investments and advances to joint ventures(1.5)--(4.6)6.1
Proceeds from sales of assets0.90.31.21.5
Receipt of proceeds from notes receivable------115.1
Proceeds from sale of investments19.1--19.1--
Decrease (increase) in restricted cash under letters of0.2(0.1)16.65.1
credit/credit facility requirements
--------------------------------------
Net cash provided by (used in) investing activities13.3(5.9)18.9116.3
----------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long term debt10.0--10.0--
Repayment of long term debt(0.1)(60.3)(0.2)(174.1)
Short term borrowings(4.5)------
Redemption of non-controlling interest----(24.0)--
Payment of debt issuance fees----(1.0)--
-----------------------------------------------
Net cash provided by (used in) financing activities5.4(60.3)(15.2)(174.1)
------------------------------------------------------
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS$2.3$1.8$0.9$0.8
--- -------- --------- ---------- -----
Net increase (decrease) in cash and cash equivalents26.1(55.0)(29.2)(12.0)
Cash and cash equivalents at beginning of period334.0437.1389.3394.1
-------------------------------------------
Cash and cash equivalents at end of period$ 360.1$ 382.1$360.1$ 382.1
=== ======== ========= ========== =====
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter EndedNine Months Ended
September 30,September 30,
------------------------------------------
Dollar amounts in millions2011201020112010
------------ ------------ --------------- ----------------
Net sales:
OSB$ 138.8$ 140.1$411.4$475.5
Siding112.0104.6336.6325.0
Engineered Wood Products54.938.0156.9142.7
Other45.841.2141.6130.1
Intersegment sales(0.9)(1.1)(1.8)(6.0)
---------------------------------------------------
$ 350.6$ 322.8$ 1,044.7$1,067.3
== ======= ======== ========= ==========
Operating profit (loss):
OSB$ (16.0)$(5.0)$(48.0)$38.4
Siding11.89.335.939.6
Engineered Wood Products(3.2)(4.9)(11.9)(15.9)
Other(0.9)0.74.24.6
Less intersegment profits--0.5----
Other operating credits and charges, net9.8(2.3)11.2(2.8)
Loss on sale or impairment of long-lived assets(65.0)(0.9)(73.0)(2.1)
General corporate and other expenses, net(15.2)(17.0)(49.6)(55.0)
Foreign currency gains (losses)(4.0)(0.4)(1.6)1.0
Other-than-temporary investment impairment--(16.9)--(16.9)
Investment income16.74.924.215.1
Interest expense, net of capitalized interest(14.2)(15.3)(42.6)(49.8)
----------------------------------------------------
Loss from continuing operations before taxes(80.2)(47.3)(151.2)(43.8)
Benefit for income taxes(20.9)(16.4)(36.1)(14.0)
----------------------------------------------------
Loss from continuing operations$ (59.3)$ (30.9)$(115.1)$ (29.8)
== ===== ==== ===== ===== ======= ==== ===== =======
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SUMMARY OF PRODUCTION VOLUMES (1)
The following table sets forth production volumes for the quarter
and nine months ended September 30, 2011 and 2010.
Quarter EndedNine Months Ended
September 30,September 30,
--------------- ------------------
2011201020112010
------- ------- ------- ---------
Oriented strand board, million square feet 3/8" basis(1)8047622,3752,271
Oriented strand board, million square feet 3/8" basis5352140154
(produced
by wood-based siding mills)
Wood-based siding, million square feet 3/8" basis192146613575
Engineered I-Joist, million lineal feet(1)15124355
Laminated veneer lumber (LVL), thousand cubic feet(1)1,6401,1204,9954,509
and
laminated strand lumber (LSL), thousand cubic feet
(1) Includes volumes produced by joint venture
operations or under sales arrangements and sold to LP.
SOURCE: Louisiana-Pacific Corporation
Louisiana-Pacific Corporation
Media Relations:
Mary Cohn, 615-986-5886
or
Investor Relations:
Becky Barckley, 615-986-5600
or
Mike Kinney, 615-986-5600 |
