LP Reports Fourth Quarter and Year End 2012 Profit LP Reports Fourth Quarter and Year End 2012 Profits
NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 8, 2013-- Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported today results for the fourth quarter and year ended December 2012, which included the following:
• Total sales for the fourth quarter of $459 million, 47 percent higher than the year ago quarter, and total sales for the year were $1.7 billion, 27 percent higher than the previous year.
• Income from continuing operations for the fourth quarter was $49 million ($0.34 per diluted share) and $32 million ($0.22 per diluted share) for the year.
• Non-GAAP adjusted income from continuing operations was $26 million ($0.18 per diluted share) and $49 million ($0.35 per diluted share).
• Adjusted EBITDA from continuing operations for the fourth quarter was $71 million compared to a loss of $12 million in the fourth quarter of 2011. For the year, EBITDA from continuing operations was $203 million compared to a loss of $5 million the previous year.
• Cash and cash equivalents were $561 million as of December 31, 2012.
“We are very pleased that LP is reporting both a profitable fourth quarter and a profitable 2012,” said CEO Curt Stevens. “The U.S. housing recovery picked up momentum in the fourth quarter, with annual housing starts at a seasonally adjusted rate of 954,000 in December. This increase in demand resulted in better OSB pricing and good performance in our Siding segment.”
FOURTH QUARTER RESULTS
For the quarter ended December 31, 2012, LP reported net sales of $459 million, up from $312 million in the fourth quarter of 2011. For the fourth quarter, the company reported operating income of $47 million as compared to an operating loss in the fourth quarter of 2011 of $26 million.
For the fourth quarter of 2012, LP reported income from continuing operations of $49 million, or $0.34 per diluted share, as compared to a loss from continuing operations of $57 million, or $0.42 per diluted share, for the fourth quarter of 2011. Adjusted EBITDA from continuing operations for the fourth quarter of 2012 was $71 million compared to a loss of $12 million in the fourth quarter of 2011.
YEAR END RESULTS
For the year ended December 31, 2012, LP reported net sales of $1.7 billion compared to $1.4 billion in 2011. For the year ended 2012, the company reported operating income of $107 million as compared to an operating loss in 2011 of $140 million.
For 2012, LP reported income from continuing operations of $32 million, or $0.22 per diluted share, as compared to a loss of $172 million, or $1.29 per diluted share, for 2011. Adjusted EBITDA from continuing operations for the year was $203 million compared to a loss of $5 million for 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, however the company has announced plans to restart one curtailed facility in early 2013. The OSB segment reported net sales for the fourth quarter of 2012 of $243 million, up 86 percent compared to $131 million of net sales in the fourth quarter of 2011. For the fourth quarter of 2012, the OSB segment reported an operating profit of $58 million compared with an operating loss of $16 million in the fourth quarter of 2011. For the fourth quarter, adjusted EBITDA from continuing operations for this segment was $68 million compared to the fourth quarter of 2011 loss of $5 million. For the fourth quarter of 2012 as compared to the fourth quarter of 2011, sales volumes increased 16 percent and sales price increased 64 percent quarter over quarter. The increase in selling price favorably impacted operating results and adjusted EBITDA from continuing operations by approximately $90 million for the quarter as compared to 2011.
For the full year, OSB reported sales of $814 million, up 50 percent from the prior year and had operating income of $124 million compared to an operating loss of $64 million in 2011. Adjusted EBITDA for 2012 was $166 million compared to a loss of $18 million in 2011. For the year, sales volumes increased 12 percent and sales prices increased 36 percent. The increase in selling price favorably impacted operating results and adjusted EBITDA from continuing operations by approximately $201 million for the year as compared to 2011.
SIDING SEGMENT
LP’s Siding segment consists of LP SmartSide® siding as well as LP’s CanExel® prefinished 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 $117 million in the fourth quarter of 2012, an increase of 25 percent from $93 million in the year-ago fourth quarter. For the fourth quarter of 2012, the Siding segment reported operating income of $11 million compared to $6 million in the year-ago quarter. For the fourth quarter, Siding reported $15 million in adjusted EBITDA from continuing operations, an increase of $5 million as compared to the fourth quarter of 2011.
For the full year, Siding reported sales of $501 million, up 17 percent from the prior year and had operating income of $67 million compared to $42 million in 2011. Adjusted EBITDA for 2012 was $83 million compared to $58 million in 2011. The increase in OSB sales prices sold in this segment accounted for approximately $11 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). EWP segment sales in the fourth quarter of 2012 totaled $52 million, up 11 percent from $46 million in the year-ago quarter. Operating losses increased 28 percent to $5 million for the fourth quarter of 2012 from $4 million for the fourth quarter of 2011. For the fourth quarter, LP reported a loss of $2 million in adjusted EBITDA from continuing operations in this segment.
For the full year, EWP reported sales of $213 million, up 5 percent from the prior year and an operating loss of $14 million compared to an operating loss of $16 million in 2011. Adjusted EBITDA for 2012 and 2011 was a loss of $2 million.
SOUTH AMERICA
The South America segment is comprised of LP facilities in Chile and Brazil. The South America segment reported sales in the fourth quarter of 2012 of $42 million, up 23 percent from $34 million in the fourth quarter of 2011. Operating income was $7 million for the fourth quarter of 2012, an increase of $5 million from the fourth quarter of 2011. For the fourth quarter, LP reported adjusted EBITDA from continuing operations in this segment of $10 million, an improvement of $6 million as compared to the fourth quarter of 2011.
For the full year, South America reported sales of $169 million, up 16 percent from the prior year and operating income of $18 million compared to an operating income of $12 million in 2011. Adjusted EBITDA for 2012 was $30 million compared to $23 million in 2011.
COMPANY OUTLOOK
Stevens concluded, “At the recent International Builders’ Show, builders were very upbeat. Despite some potential challenges associated with credit availability, the federal deficit and job growth, they expressed a great deal of confidence that housing starts will continue to improve in 2013.”
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