LP Building Solutions Reports First Quarter 2024 Results

Louisiana-Pacific Corporation (LP), a leading manufacturer of high-performance building products, reported its financial results for the three months ended March 31, 2024.

Key Highlights for First Quarter 2024, Compared to First Quarter 2023

• Siding net sales increased by 9% to $361 million
• Oriented Strand Board (OSB) net sales increased by 65% to $313 million
• Consolidated net sales increased by 24% to $724 million
• Net income was $108 million, an increase of $85 million
• Net income per diluted share was $1.48 per share, an increase of $1.19 per share
• Adjusted EBITDA⁽¹⁾ was $182 million, an increase of $116 million
• Adjusted Diluted EPS⁽¹⁾ was $1.53 per diluted share, an increase of $1.19 per diluted share
• Cash provided by operating activities was $105 million, an increase of $223 million

(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

• Invested $41 million in capital expenditures during the first quarter
• Paid $19 million in cash dividends during the first quarter
• For the year-to-date period ending May 8, 2024, LP paid $50 million to repurchase 0.6 million common shares ($13 million during the three months ended March 31, 2024), leaving $150 million remaining under the under the pre-existing share repurchase program authorized in May 2022
• Additional authorization of $250 million to repurchase LP common stock, bringing total authorized for stock repurchases to $400 million as of May 8, 2024
• Announced a quarterly cash dividend of $0.26 per share
• As of March 31, 2024, total liquidity of approximately $800 million

“The first quarter saw robust demand for Siding and OSB, with increased volume, including record ExpertFinish and BuilderSeries volume, higher commodity prices, and improved operating efficiency driving margin expansion,” said LP Chairperson and Chief Executive Officer Brad Southern. “While macro uncertainties remain, strong demand for SmartSide and Structural Solutions has continued in the second quarter. As such, we are increasing our second quarter and full-year outlook.”

First Quarter 2024 Highlights

Net sales for the first quarter of 2024 increased year-over-year by $141 million (or 24%). Siding revenue increased $30 million (or 9%), due to 5% higher prices and 4% higher volumes. OSB revenue increased $124 million (or 65%), driven by 36% higher prices and 21% higher volumes. This was partially offset by decreases in the LP South America (LPSA) segment and Other revenue of $8 million and $5 million, respectively.

Net income increased year-over-year by $85 million to $108 million ($1.48 per diluted share) primarily due to an increase in Adjusted EBITDA of $116 million, partially offset by a $40 million increase in the provision for income taxes. The year-over-year increase in Adjusted EBITDA includes $62 million due to higher OSB selling prices, a $29 million increase from higher OSB sales volumes, and a $19 million impact from higher Siding net sales.

Segment Results

Siding

The Siding segment serves diverse end markets with a broad product offering including LP^® SmartSide^® Trim & Siding, LP^® SmartSide^® ExpertFinish^® Trim & Siding, LP BuilderSeries^® Lap Siding, and LP^® Outdoor Building Solutions^TM (collectively referred to as Siding Solutions). Siding products consist of a full line of engineered wood siding, trim, and fascia.

Siding Solutions

The year-over-year net sales increase for the Siding segment of $30 million for the three months ended March 31, 2024 reflects increased sales volumes and list price increases.

First quarter 2024 Adjusted EBITDA increased year-over-year by $23 million, including the impact of the net sales increase and a $10 million decrease in costs, including freight, raw materials, and labor, partially offset by a $7 million increase in mill overhead.

Oriented Strand Board (OSB)

The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product 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^® 350 Durable Sub-Flooring). OSB is manufactured using wood strands arranged in layers and bonded with resins.

The year-over-year net sales increase for the OSB segment of $124 million for the three months ended March 31, 2024 reflects a $62 million increase in OSB prices and a $56 million increase in sales volumes.

First quarter 2024 Adjusted EBITDA increased year-over-year by $86 million, reflecting the impact of higher OSB prices and sales volumes, partially offset by higher mill-related costs.

LPSA

The LPSA segment manufactures and distributes LP OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.

The year-over-year net sales decrease for the LPSA segment of $8 million for the three months ended March 31, 2024 reflects lower average selling prices and unfavorable currency fluctuations, partially offset by higher sales volumes.

First quarter 2024 Adjusted EBITDA decreased year-over-year by $2 million, reflecting lower average selling prices and unfavorable currency fluctuations, partially offset by lower raw material costs.

For full results click here.

About LP Building Solutions

As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. LP’s extensive portfolio of innovative and dependable products includes 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 stockholders build lasting value. Headquartered in Nashville, Tennessee, LP operates 23 plants across the U.S., Canada, Chile, and Brazil. For more information, visit LPCORP.COM.

Contact:

Aaron Howald – Investor Contact – (615) 986-5792

Source: Louisiana-Pacific Corporation