Lp reports second quarter 2016 results
Nashville, tenn.--(business wire)--louisiana-pacific corporation (lp®) (nyse: lpx) reported results today for the second quarter of 2016, which included the following: sales for the second quarter of $582 million were higher by 18 percent compared to the year ago quarter. income from continuing operations was $32 million ($0.22 per diluted share). non-gaap adjusted income from operations was $40 million ($0.28 per diluted share). adjusted ebitda from operations for the second quarter was $99 million compared to $16 million in the second quarter of 2015. cash and cash equivalents were $475 million as of june 30, 2016. “this was an outstanding quarter for lp as every one of our segments helped drive net income of more than $30 million,” said curt stevens, chief executive officer. “osb had adjusted ebitda of $59 million and our siding segment had nearly $50 million of adjusted ebitda. these results were due to higher osb pricing, slightly improved housing starts and lower production costs across our system.” second quarter results for the second quarter of 2016, lp reported net income of $32 million, or $0.22 per diluted share, as compared to a net loss of $20 million, or $0.14 per diluted share for the second quarter of 2015. year to date results for the six months ended june 30, 2016, lp reported net sales of $1.1 billion compared to $1.0 billion in the first six months of 2015. for the first six months of 2016, lp reported net income of $42 million, or $0.29 per diluted share, compared to a loss of $54 million, or $0.38 per diluted share, for the same period in 2015. adjusted ebitda from continuing operations for the first six months of 2016 was $151 million compared to $22 million for 2015. increases in osb pricing sold in north america accounted for $87 million increase in both operating results and adjusted ebitda. oriented strand board (osb) segment lp’s osb segment manufactures and distributes osb structural panel products. the osb segment reported net sales for the second quarter of 2016 of $253 million, a $42 million increase from $211 million of net sales in the second quarter of 2015. for the second quarter of 2016, the osb segment reported operating income of $44 million compared to operating loss of $18 million in the second quarter of 2015. for the second quarter of 2016, adjusted ebitda from continuing operations for this segment increased by $63 million compared to the second quarter of 2015. for the second quarter of 2016 as compared to second quarter of 2015, sales volumes were up 7 percent and sales prices increased by 30 percent. the increase in selling price favorably impacted operating results and adjusted ebitda from continuing operations by approximately $59 million for the quarter as compared to the second quarter of 2015. for the first six months, osb reported sales of $470 million, up 17 percent from the prior year and had an operating income of $59 million compared to an operating loss of $47 million in 2015. adjusted ebitda for the first six months of 2016 was positive $89 million compared to negative $17 million in 2015. for the first six months, sales volumes decreased 4 percent and sales prices increased 22 percent. the increase in selling price favorably impacted operating results and adjusted ebitda from continuing operations by approximately $86 million for the first six months as compared to 2015. 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, repair and remodeling and non-residential markets. the siding segment reported net sales of $207 million in the second quarter of 2016, an increase of $43 million from $164 million in the year-ago second quarter. for the second quarter of 2016, the siding segment reported operating income of $42 million compared to $29 million in the year-ago quarter. for the second quarter of 2016, the siding segment reported $49 million in adjusted ebitda from continuing operations, an increase of $15 million compared to the second quarter of 2015. for the first six months, siding reported sales of $389 million, up 15 percent from the prior year and had an operating income of $69 million compared to an operating income of $62 million in 2015. adjusted ebitda for the first six month of 2016 was positive $84 million compared to $73 million in 2015. 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 reported net sales in the second quarter of 2016 totaled $78 million, up 8 percent from the year-ago quarter. operating income increased to $1 million for the second quarter of 2016 from a $2 million loss in the second quarter of 2015. for the second quarter, the ewp segment showed an increase of $3 million in adjusted ebitda from continuing operations as compared to the same quarter in 2015. for the first six months, ewp reported sales of $150 million, up 10 percent from the prior year and had an operating loss of $2 million compared to an operating loss of $6 million in 2015. adjusted ebitda for the first six months of 2016 was positive $5 million compared to breakeven in 2015. south america segment the south american segment consists of facilities in chile and brazil. the segment reported net sales in the second quarter of 2016 of $41 million, up $2 million from $39 million in the second quarter of 2015. operating income was $7 million for the second quarter of 2016 compared to $2 million in the second quarter of 2015. for the second quarter, lp reported adjusted ebitda from continuing operations in this segment of $9 million, an increase of $5 million as compared to the second quarter of 2015. for the first six months, south america reported sales of $72 million, down 4 percent from the prior year and had an operating income of $12 million compared to $4 million in 2015. adjusted ebitda for the first six months of 2016 was positive $16 million compared to $9 million in 2015. company outlook “while i now expect 2016 housing starts to be up less than 10 percent over last year, this muted recovery actually bodes well for the future as there will likely be a long period of improving housing activity,” continued stevens. "with our broad portfolio of commodity and value-added products, lp is in an excellent position to capitalize on growth in housing starts, repair / remodel activity, retail and industrial markets.” 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 www.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) three months endedjune 30, six months endedjune 30, consolidated statements of income louisiana-pacific corporation and subsidiaries (dollar amounts in millions, except per share amounts) (unaudited) three months endedjune 30, six months endedjune 30, condensed consolidated balance sheets louisiana-pacific corporation and subsidiaries (dollar amounts in millions) (unaudited) condensed consolidated cash flow statement louisiana-pacific corporation and subsidiaries (dollar amounts in millions) (unaudited) three months endedjune 30, six months endedjune 30, louisiana-pacific corporation and subsidiaries selected segment information (dollar amounts in millions) (unaudited) three months endedjune 30, six months endedjune 30, louisiana-pacific corporation and subsidiaries summary of production volumes (1) the following table sets forth production volumes for the six months ended june 30, 2016 and 2015. (1) includes volumes produced by joint venture operations or under sales arrangements and sold to lp.
