Lp reports first quarter 2016 results
Nashville, tenn.--(business wire)--louisiana-pacific corporation (lp) (nyse: lpx) reported results today for the first quarter of 2016, which included the following: sales for the first quarter of $505 million were higher by 7 percent compared to the year ago quarter. income from continuing operations was $10 million ($0.07 per diluted share). non-gaap adjusted income from continuing operations was $10 million ($0.07 per diluted share). adjusted ebitda from continuing operations for the first quarter was $52 million compared to $6 million in the first quarter of 2015. cash and cash equivalents were $404 million as of march 31, 2016. “the first quarter established a good to start to the year for lp,” said curt stevens, chief executive officer. “despite a 7 percent drop in north american north central (7/16" basis) benchmark osb pricing, our focus on value-added products and improved logistics coupled with higher plant utilization allowed us to post improved sequential results. we are back on the growth track in siding with sequential lp® smartside® siding volumes up 22 percent, setting a new quarterly record. in south america, the adjusted ebitda was more than 50 percent higher than the same quarter last year.” for the first quarter of 2016, lp reported net income of $10 million, or $0.07 per diluted share, as compared to a net loss of $35 million, or $0.24 per diluted share for the first quarter of 2015. adjusted ebitda from continuing operations for the first three months of 2016 was $52 million compared to $6 million for 2015. oriented strand board (osb) segment lp’s osb segment manufactures and distributes osb structural panel products. the osb segment reported net sales for the first quarter of 2016 of $217 million, a $27 million increase from $190 million of net sales in the first quarter of 2015. for the first quarter of 2016, the osb segment reported operating income of $15 million compared to operating loss of $28 million in the first quarter of 2015. for the first quarter of 2016, adjusted ebitda from continuing operations for this segment increased by $43 million compared to the first quarter of 2015. for the first quarter of 2016 as compared to first quarter of 2015, sales volumes were flat and sales prices increased by 14 percent. the increase in selling price favorably impacted operating results and adjusted ebitda from continuing operations by approximately $27 million for the quarter as compared to the first quarter of 2015. siding segment lp’s siding segment consists of lp 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 $181 million in the first quarter of 2016, an increase of $8 million from $174 million in the year-ago first quarter. for the first quarter of 2016, the siding segment reported operating income of $27 million compared to $33 million in the year-ago quarter. for the first quarter of 2016, the siding segment reported $34 million in adjusted ebitda from continuing operations, a decrease of $4 million compared to the first quarter of 2015. engineered wood products segment (ewp) the ewp segment is comprised of lp solidstart® i-joist (ij), laminated veneer lumber and laminated strand lumber (lvl and lsl). ewp reported net sales in the first quarter of 2016 totaled $72 million, up 11 percent from the year-ago quarter. operating losses decreased to $3 million for the first quarter of 2016 from $4 million in the first quarter of 2015. for the first quarter, the ewp segment showed an increase of $1 million in adjusted ebitda from continuing operations as compared to the same quarter in 2015. south america segment the south american segment consists of facilities in chile and brazil. the segment reported net sales in the first quarter of 2016 of $31 million, down $5 million from $36 million in the first quarter of 2015. operating income was $5 million for the first quarter of 2016 compared to $2 million in the first quarter of 2015. for the first quarter, lp reported adjusted ebitda from continuing operations in this segment of $7 million, an increase of $2 million as compared to the first quarter of 2015. company outlook “the first quarter was a pretty good quarter financially, but the better story is how we are set up for the second quarter and beyond. the swan valley siding ramp-up is ahead of plan and the hanceville press rebuild completed in january is meeting expectations. osb prices started to rise in march and have continued to increase so far this quarter, and the order intake for siding is strong. with rising housing starts and robust repair / remodeling activity, the demand for our products should 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 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) consolidated statements of income louisiana-pacific corporation and subsidiaries (dollar amounts in millions, except per share amounts) (unaudited) 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) louisiana-pacific corporation and subsidiaries selected segment information (dollar amounts in millions) (unaudited) louisiana-pacific corporation and subsidiaries summary of production volumes (1) the following table sets forth production volumes for the three months ended march 31, 2016 and 2015. oriented strand board, million square feet 3/8" basis(1) engineered i-joist, million lineal feet(1) laminated veneer lumber (lvl), thousand cubic feet(1) and laminated strand lumber (lsl), thousand cubic feet (1) includes volumes produced by joint venture operations or under sales arrangements and sold to lp.
