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Dec 31, 2023

Louisiana-Pacific Q4 2023 Earnings Report

Reported an increase in operational efficiency and an improving outlook for single-family housing.

Key Takeaways

LP Building Solutions reported a decrease in net sales by 7% to $658 million. Net income increased by $69 million to $59 million, and adjusted diluted EPS increased by $0.10 to $0.71 per share.

Siding net sales decreased by 14% to $332 million due to lower volumes.

OSB net sales increased by 6% to $272 million.

Net income was $59 million, an increase of $69 million.

Adjusted Diluted EPS was $0.71 per diluted share, an increase of $0.10 per diluted share.

Total Revenue
$658M
Previous year: $705M
-6.7%
EPS
$0.71
Previous year: $0.61
+16.4%
OSB - Structural Solutions Sales
408
Previous year: 303
+34.7%
OSB - Commodity Sales Volume
375
Previous year: 503
-25.4%
Siding Solutions Sales Volume
389
Previous year: 456
-14.7%
Gross Profit
$159M
Previous year: $128M
+24.2%
Cash and Equivalents
$222M
Previous year: $369M
-39.8%
Free Cash Flow
$175M
Previous year: -$89M
-296.6%
Total Assets
$2.44B
Previous year: $2.35B
+3.7%

Louisiana-Pacific

Louisiana-Pacific

Louisiana-Pacific Revenue by Segment

Forward Guidance

The company is providing financial guidance for the first quarter of 2024 and full year 2024. Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks.

Positive Outlook

  • Siding Net sales year-over-year growth 3% to 5% (Q1 2024)
  • Siding Net sales year-over-year growth 8% to 10% (FY 2024)
  • Siding Adjusted EBITDA $65 million to $70 million (Q1 2024)
  • OSB Adjusted EBITDA $65 million to $75 million (Q1 2024)
  • Consolidated Adjusted EBITDA $130 million to $145 million (Q1 2024)

Challenges Ahead

  • Reconciliation of Siding Adjusted EBITDA, OSB Adjusted EBITDA, and consolidated Adjusted EBITDA guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts.
  • Our inability to reconcile these measures results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliation.
  • Sufficient information is not available to calculate certain adjustments required for such reconciliation, such as business exit charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, and other non-operating items, that would be required to be included in the comparable forecasted U.S. GAAP measures.
  • The Company expects that these adjustments may potentially have a significant impact on future GAAP financial results.
  • Capital expenditures related to strategic growth and sustaining maintenance projects are expected to be between $50 million to $60 million and $150 million to $160 million, respectively.

Revenue & Expenses

Visualization of income flow from segment revenue to net income