LP Reports Second Quarter 2012 Results
NASHVILLE, Tenn., Jul 31, 2012 (BUSINESS WIRE) -- Louisiana-Pacific Corporation
(LP) (LPX) reported today results for the second quarter of 2012, which included
the following:
-- Total sales for the second quarter of $428 million were higher by 18 percent
compared to a year ago.
-- Loss from continuing operations was $37 million ($0.27 per diluted share).
-- Non-GAAP adjusted income from continuing operations was $3 million ($0.02 per
diluted share).
-- Adjusted EBITDA from continuing operations for the second quarter was $37
million compared to a loss of $4 million in the second quarter of 2011.
-- Cash and cash equivalents were $427 million as of June 30, 2012.
"We are pleased that LP returned to profitability in the second quarter, after
adjusting for the costs associated with our successful debt refinancing," said
Curt Stevens, CEO. "Higher OSB prices and volume and continued volume growth in
our Siding business were the primary drivers for the improvement in our results."
For the quarter ended June 30, 2012, LP reported net sales of $428 million, an
increase from $362 million in the second quarter of 2011. For the second quarter,
the company reported an operating income of $19 million as compared to a loss of
$24 million in the second quarter of 2011. The results for the second quarter of
2012 include an early debt extinguishment charge of $52 million associated with
its recent financing.
For the second quarter of 2012, LP reported a loss from continuing operations of
$37 million, or $0.27 per diluted share, as compared to a loss from continuing
operations of $33 million, or $0.25 per diluted share for the second quarter of
2011.
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 second quarter of 2012 of $195 million, an increase from $141 million of net
sales in the second quarter of 2011. For the second quarter of 2012, the OSB
segment reported an operating income of $17 million compared with a loss of $23
million in the second quarter of 2011. For the second quarter, LP realized an
increase of $39 million in adjusted EBITDA from continuing operations for this
segment compared to the second quarter of 2011. For the second quarter of 2012
compared to the second quarter of 2011, sales volumes were up 13 percent with
sales price increasing by 22 percent. The increase in sales price accounted for
approximately a $33 million increase in both operating results and adjusted
EBITDA from continuing operations.
SIDING SEGMENT
LP's Siding segment consists of LP SmartSide(R) siding as well as LP's
prefinished CanExel(R) 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 $137 million in the second quarter of 2012, an increase of 16 percent
from $119 million in the year-ago second quarter. For the second quarter of 2012,
the Siding segment reported operating income of $19 million compared to $11
million in the year-ago quarter. For the second quarter, LP reported $24 million
in adjusted EBITDA from continuing operations for this segment, an increase of $8
million compared to the second quarter of 2011.
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 second quarter of 2012 totaled $52 million, a
slight decrease from a year ago. Operating losses was $3 million for both the
second quarter of 2012 and for the second quarter of 2011. For the second
quarter, LP realized a decrease in adjusted EBITDA from continuing operations for
this segment compared to the second quarter of 2011.
SOUTH AMERICA SEGMENT
The South American segment consists of OSB mills located in Chile and Brazil.
South America sales in the second quarter of 2012 totaled $43 million, an
increase of 8 percent from $40 million in the year-ago second quarter. For the
second quarter of 2012, the South America segment reported an operating income of
$4 million. For the second quarter, LP reported $6 million in adjusted EBITDA
from continuing operations for this segment, a slight decrease compared to the
second quarter of 2011.
COMPANY OUTLOOK
"Going into the second half of the year, we remain cautiously optimistic. Though
it appears that the general economy may be slowing, housing activity continues to
improve,"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
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 June 30,Six Months Ended June 30,
--------------------------------------------------------
2012201120122011
----------------------------------------------------
Net sales$ 427.8$ 362.4$ 789.3$ 694.1
Income (loss) from operations$19.0$ (23.6)$16.9$ (41.8)
Loss from continuing operations before taxes and equity in losses of$ (45.5)$ (33.9)$ (56.1)$ (60.3)
unconsolidated affiliates
Non-GAAP Adjusted income (loss) from continuing operations$2.8$ (25.6)$(6.0)$ (41.9)
Loss from continuing operations$ (37.2)$ (32.9)$ (48.4)$ (55.8)
Net loss attributed to LP$ (37.3)$ (35.5)$ (48.6)$ (58.5)
Net loss per share - basic and fully diluted$ (0.27)$ (0.27)$ (0.35)$ (0.45)
Average shares of stock outstanding - basic and fully diluted137.0131.4136.8131.3
CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended June 30,Six Months Ended June 30,
----------------------------------------------------------------------------------
2012201120122011
------------------------------------------------------------------------------
Net sales$427.8$362.4$789.3$694.1
Operating costs and expenses:
Cost of sales359.9336.3673.2631.3
Depreciation and amortization17.920.237.041.6
Selling and administrative30.727.662.056.4
Loss on sale or impairment of long-lived assets, net0.12.50.28.0
Other operating credits and charges, net0.2(0.6)--(1.4)
-------------------------------------------------------------
Total operating costs and expenses408.8386.0772.4735.9
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Income (loss) from operations19.0(23.6)16.9(41.8)
---------------------------------------------------------------------
Non-operating income (expense):
Interest expense, net of capitalized interest(13.1)(14.4)(25.7)(28.4)
Investment income3.43.57.67.5
Early debt extinguishment(52.2)--(52.2)--
Other non-operating items(2.6)0.6(2.7)2.4
---------------------------------------------------------------------
Total non-operating expense(64.5)(10.3)(73.0)(18.5)
--------------------------------------------------------------------------
Loss from continuing operations before taxes and equity in losses of(45.5)(33.9)(56.1)(60.3)
unconsolidated affiliates
Benefit for income taxes(11.1)(8.4)(12.3)(15.2)
Equity in loss of unconsolidated affiliates2.87.44.610.7
----------------------------------------------------------------
Loss from continuing operations(37.2)(32.9)(48.4)(55.8)
--------------------------------------------------------------------------
Loss from discontinued operations before taxes(0.1)(4.1)(0.3)(4.1)
Benefit for income taxes--(1.6)(0.1)(1.6)
------------------------------------------------------------------------
Loss from discontinued operations(0.1)(2.5)(0.2)(2.5)
--------------------------------------------------------------------------
Net loss(37.3)(35.4)(48.6)(58.3)
Less: Net income attributed to non-controlling interest--0.1--0.2
----------------------------------------------------------------
Loss attributed to Louisiana-Pacific Corporation$(37.3)$(35.5)$(48.6)$(58.5)
======= ======= ========= ======= ========= ======= ========== ======= ===
Loss per share of common stock (basic):
Loss from continuing operations$(0.27)$(0.25)$(0.35)$(0.43)
Loss from discontinued operations--(0.02)--(0.02)
---------------------------------------------------------------------
Net loss per share$(0.27)$(0.27)$(0.35)$(0.45)
======= ======= ========= ======= ========= ======= ========== ======= ===
Net loss per share of common stock (diluted):
Loss from continuing operations$(0.27)$(0.25)$(0.35)$(0.43)
Loss from discontinued operations--(0.02)--(0.02)
---------------------------------------------------------------------
Net loss per share$(0.27)$(0.27)$(0.35)$(0.45)
======= ======= ========= ======= ========= ======= ========== ======= ===
Average shares of stock outstanding - basic137.0131.4136.8131.3
Average shares of stock outstanding - diluted137.0131.4136.8131.3
Amounts attributed to LP Corporation common shareholders
Loss from continuing operations, net of tax$(37.2)$(33.0)$(48.4)$(56.0)
Loss from discontinued operations, net of tax(0.1)(2.5)(0.2)(2.5)
--------------------------------------------------------------------------
$(37.3)$(35.5)$(48.6)$(58.5)
======= ======= ========= ======= ========= ======= ========== ======= ===
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
June 30, 2012December 31, 2011
------------------------------------
ASSETS
Cash and cash equivalents$427.1$340.0
Receivables99.665.1
Income tax receivable3.03.5
Inventories203.5163.6
Prepaid expenses and other current assets8.75.7
Deferred income taxes17.017.0
Current portion of notes receivable from asset sales101.410.0
Assets held for sale43.551.9
---------------------------
Total current assets903.8656.8
---------------------------
Timber and timberlands40.845.5
Property, plant and equipment, at cost2,027.82,028.1
Accumulated depreciation(1,278.8)(1,245.9)
----------------------------------
Net property, plant and equipment749.0782.2
---------------------------
Notes receivable from asset sales432.2523.5
Long-term investments1.00.7
Restricted cash11.912.9
Investments in and advances to affiliates76.779.1
Deferred debt costs9.88.9
Other assets27.026.3
Long-term deferred tax asset4.04.0
---------------------------
Total assets$ 2,256.2$ 2,139.9
==== ============ =======
LIABILITIES AND EQUITY
Current portion of long-term debt$6.5$5.3
Current portion of limited recourse notes payable97.97.9
Accounts payable and accrued liabilities150.6122.3
Current portion of contingency reserves4.04.0
---------------------------
Total current liabilities259.0139.5
---------------------------
Long-term debt, excluding current portion784.4715.9
Contingency reserves, excluding current portion16.117.2
Other long-term liabilities142.4160.4
Deferred income taxes98.3106.0
Stockholders' equity:
Common stock149.9149.8
Additional paid-in capital539.5549.9
Retained earnings633.2681.8
Treasury stock(261.2)(274.4)
Accumulated comprehensive loss(105.4)(106.2)
----------------------------------
Total stockholders' equity956.01,000.9
---------------------------
Total liabilities and stockholders' equity$ 2,256.2$ 2,139.9
==== ============ =======
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Quarter Ended June 30,Six Months Ended June 30,
------------------------------------------------------------------
2012201120122011
------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$(37.3)$(35.4)$(48.6)$(58.3)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
Depreciation and amortization17.920.237.041.6
Loss from unconsolidated affiliates2.87.44.610.7
Loss on sale or impairment of long-lived assets0.12.50.28.0
Other operating credits and charges, net0.2(1.5)--(1.5)
Stock-based compensation related to stock plans1.61.34.34.8
Exchange loss on remeasurement(1.2)0.2(0.9)2.7
Early debt extinguishment52.2--52.2--
Cash settlement of contingencies(0.6)(0.4)(1.2)(0.9)
Cash settlements of warranties, net of accruals(1.5)2.3(3.9)1.1
Pension expense, net2.50.44.10.4
Non-cash interest expense, net0.82.31.43.7
Other adjustments, net1.22.61.12.8
(Decrease) increase in receivables5.75.8(34.9)(24.7)
Decrease (increase) in income tax receivable(0.7)13.4(0.6)4.7
Decrease (increase) in inventories9.829.2(36.0)(20.6)
Decrease in prepaid expenses(4.9)(5.3)(3.0)(2.9)
Increase (decrease) in accounts payable and accrued liabilities9.7(4.0)19.4(2.3)
Decrease in deferred income taxes(11.2)(11.6)(12.5)(8.3)
--------------------------------------------------------------------------
Net cash provided by (used in) operating activities47.129.4(17.3)(39.0)
----------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions(4.2)(5.6)(6.8)(8.0)
Investments and advances to joint ventures1.1(1.1)(1.9)(3.1)
Proceeds from sales of assets0.20.39.10.3
Decrease in restricted cash under letters of credit/credit facility0.18.11.016.4
----------------------------------------------------------------
Net cash provided by (used in) investing activities(2.8)1.71.45.6
------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt350.0--350.0--
Repayment of long-term debt(242.1)(0.1)(242.1)(0.1)
Short term borrowings, net of repayments--4.5--4.5
Sale of common stock under equity plans0.4--0.4--
Redemption of non-controlling interest--(24.0)--(24.0)
Payment of debt issuance fees(6.3)(1.0)(6.3)(1.0)
--------------------------------------------------------------------------
Net cash provided by (used in) financing activities102.0(20.6)102.0(20.6)
---------------------------------------------------------------------
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS0.32.31.0(1.3)
-------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents146.612.887.1(55.3)
Cash and cash equivalents at beginning of period280.5321.2340.0389.3
----------------------------------------------------------------
Cash and cash equivalents at end of period$427.1$334.0$427.1$334.0
======= ============== ============== ============== =======
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter Ended June 30,Six Months Ended June 30,
---------------------------------------------------------------------------
Dollar amounts in millions2012201120122011
-----------------------------------------------------------------------
Net sales:
OSB$ 194.9$140.6$344.4$272.6
Siding137.0118.6250.1224.7
Engineered Wood Products51.753.6100.3101.9
South America42.739.585.174.9
Other10.710.420.820.9
Intersegment sales(9.2)(0.3)(11.4)(0.9)
-------------------------------------------------------------------
$ 427.8$362.4$789.3$694.1
== ============ ============== ============== =======
Operating profit (loss):
OSB$17.0$(22.9)$16.7$(32.0)
Siding19.411.336.124.0
Engineered Wood Products(3.4)(3.2)(6.3)(8.7)
South America3.64.26.77.9
Other(1.9)(2.0)(2.5)(2.6)
Other operating credits and charges, net(0.2)0.6--1.4
Loss on sale or impairment of long-lived assets(0.1)(2.5)(0.2)(8.0)
General corporate and other expenses, net(18.2)(16.5)(38.2)(34.5)
Foreign currency gains (losses)(2.6)0.6(2.7)2.4
Early debt extinguishment(52.2)--(52.2)--
Investment income3.43.57.67.5
Interest expense, net of capitalized interest(13.1)(14.4)(25.7)(28.4)
-------------------------------------------------------------------
Loss from continuing operations before taxes(48.3)(41.3)(60.7)(71.0)
Benefit for income taxes(11.1)(8.4)(12.3)(15.2)
-------------------------------------------------------------------
Loss from continuing operations$ (37.2)$(32.9)$(48.4)$(55.8)
== ===== ========= ======= ========= ======= ========== ======= ===
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SUMMARY OF PRODUCTION VOLUMES (1)
The following table sets forth production volumes for the quarter
and six months ended June 30, 2012 and 2011.
Quarter EndedSix Months Ended
June 30,June 30,
---------------------------------
2012201120122011
----------------------------
Oriented strand board, million square feet 3/8" basis(1)9228101,7211,578
Oriented strand board, million square feet 3/8" basis (produced by51419687
wood-based siding mills)
Wood-based siding, million square feet 3/8" basis236201476422
Engineered I-Joist, million lineal feet(1)18163229
Laminated veneer lumber (LVL), thousand cubic feet(1) and laminated1,7231,7273,4123,356
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/Mike Kinney, 615-986-5600 |
