DELAWARE | 1-7107 | 93-0609074 | ||
(State or other jurisdiction of incorporation or organization) | Commission File Number | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02 | Departure of Directors or Principal Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Exhibit Number | Description |
99.1 | |
99.2 | |
99.3 | |
99.4 |
LOUISIANA-PACIFIC CORPORATION | ||
By: | /s/ REBECCA BARCKLEY | |
Rebecca Barckley | ||
Controller, Financial Reporting | ||
(Principal Accounting Officer) |
• | Net sales for the fourth quarter of $589 million, 17 percent lower than prior quarter. Total net sales for the year were $2.8 billion, 3 percent higher than the previous year. |
• | Net income for the fourth quarter was $17 million ($0.12 per diluted share) and $395 million ($2.73 per diluted share) for the year. |
• | Non-GAAP adjusted income from continuing operations was $27 million ($0.19 per diluted share) for the fourth quarter and $397 million ($2.75 per diluted share) for the year. |
• | Adjusted EBITDA for the fourth quarter was $65 million and $660 million for the year. |
• | Siding segment results were negatively impacted in the fourth quarter by increased marketing investment associated with accelerating repair and remodel channel penetration and new product introductions, and a number of headwinds we expect to be temporary, including downtime at its SmartSide Fiber and CanExel facilities and the Dawson Creek mill conversion. |
• | Repurchased 5.1 million shares for $113 million during the fourth quarter for a total of 8.6 million shares for $212 million during 2018. |
• | Paid $18 million in dividends during the fourth quarter and $74 million during 2018. |
• | LP re-affirms its long-term SmartSide Strand revenue growth target of 12-14 percent. |
• | Target of $75 million of increased EBITDA by 2021 via operational improvement initiatives, supply chain optimization, and management structure transition. |
• | Authorization of a new $600 million share repurchase program, including the intent to initially enter into a $400 million accelerated share repurchase program. This is expected to result in LP repurchasing $638 million of stock during 2019 when combined with the $38 million outstanding under the previous $250 million stock repurchase authorizations. |
• | 4% increase in the quarterly cash dividend to $0.135 per share. |
• | Commitment to return over time to shareholders at least 50 percent of cash flow from operations in excess of capital expenditures required to sustain our core business and grow Siding and value-added OSB. |
• | Appointment of Stephen E. Macadam to the LP Board of Directors. |
• | $40 million from sustainable improvement in Overall Equipment Effectiveness across its Siding and OSB mills; |
• | Approximately $25 million from supply chain optimization across its $1.1 billion of addressable spend (approximately $8 million of incremental impact annually); and |
• | $10 million from its investment in line management and infrastructure optimization. |
• | Given its current outlook, LP expects capital expenditures for 2019 to be in the range of $150 million to $180 million. |
• | LP is maintaining its long-term growth target of 12-14 percent on Smart Side sales growth but is guiding to the lower end of the range for 2019 based upon projected flat housing starts. |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales | $ | 589.1 | $ | 710.6 | $ | 2,828.0 | $ | 2,733.9 | |||||||
Cost of sales | 495.3 | 495.8 | 2,084.0 | 1,998.1 | |||||||||||
Gross profit | 93.8 | 214.8 | 744.0 | 735.8 | |||||||||||
Selling and administrative | 57.4 | 46.1 | 209.3 | 191.3 | |||||||||||
(Gain) loss on sale or impairment of long-lived assets, net | 11.1 | 8.6 | 10.8 | 6.8 | |||||||||||
Other operating credits and charges, net | 9.0 | 0.4 | (2.2 | ) | 4.9 | ||||||||||
Income from operations | 16.3 | 159.7 | 526.1 | 532.8 | |||||||||||
Non-operating income (expense): | |||||||||||||||
Interest expense, net of capitalized interest | (3.1 | ) | (4.5 | ) | (15.8 | ) | (19.3 | ) | |||||||
Investment income | 4.1 | 3.3 | 17.6 | 10.5 | |||||||||||
Other non-operating items | 0.4 | (6.6 | ) | (3.9 | ) | (13.8 | ) | ||||||||
Total non-operating income (expense) | 1.4 | (7.8 | ) | (2.1 | ) | (22.6 | ) | ||||||||
Income from continuing operations before income taxes and equity in income of unconsolidated affiliate | 17.7 | 151.9 | 524.0 | 510.2 | |||||||||||
Provision (benefit) for income taxes | (0.4 | ) | 21.2 | 122.3 | 119.1 | ||||||||||
Equity in loss of unconsolidated affiliates | 1.2 | — | 2.9 | — | |||||||||||
Income from continuing operations | 16.9 | 130.7 | 398.8 | 391.1 | |||||||||||
Income (loss) from discontinued operations before taxes | 0.1 | (0.3 | ) | (5.6 | ) | (2.0 | ) | ||||||||
Benefit for income taxes | — | (0.1 | ) | (1.4 | ) | (0.7 | ) | ||||||||
Loss from discontinued operations | 0.1 | (0.2 | ) | (4.2 | ) | (1.3 | ) | ||||||||
Net income | $ | 17.0 | $ | 130.5 | $ | 394.6 | $ | 389.8 | |||||||
Net income per share of common stock: | |||||||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.90 | $ | 2.79 | $ | 2.71 | |||||||
Loss from discontinued operations | — | — | (0.03 | ) | (0.01 | ) | |||||||||
Net income per share - basic | $ | 0.12 | $ | 0.90 | $ | 2.76 | $ | 2.70 | |||||||
Diluted net income per share of common stock: | |||||||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.89 | $ | 2.76 | $ | 2.67 | |||||||
Loss from discontinued operations | — | — | (0.03 | ) | (0.01 | ) | |||||||||
Net income per share - diluted | $ | 0.12 | $ | 0.89 | $ | 2.73 | $ | 2.66 | |||||||
Weighted average shares of stock outstanding - basic | 140.0 | 144.6 | 143.0 | 144.4 | |||||||||||
Weighted average shares of stock outstanding - diluted | 141.1 | 146.6 | 144.4 | 146.4 |
December 31, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 878.4 | $ | 928.0 | |||
Receivables, net of allowance for doubtful accounts of $0.8 million and $0.9 million at December 31, 2018 and 2017 | 127.6 | 142.5 | |||||
Inventories | 273.0 | 259.1 | |||||
Prepaid expenses and other current assets | 8.2 | 7.8 | |||||
Current portion of notes receivable from asset sales | — | 22.2 | |||||
Total current assets | 1,287.2 | 1,359.6 | |||||
Timber and timberlands | 62.4 | 55.7 | |||||
Property, plant and equipment, net | 1,010.4 | 926.1 | |||||
Goodwill and other intangible assets | 26.2 | 26.7 | |||||
Investments in and advances to affiliates | 49.4 | 7.8 | |||||
Restricted cash | 13.4 | 13.3 | |||||
Other assets | 61.2 | 56.8 | |||||
Deferred tax asset | 3.9 | 2.5 | |||||
Total assets | $ | 2,514.1 | $ | 2,448.5 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 5.0 | $ | 25.1 | |||
Accounts payable and accrued liabilities | 233.3 | 237.1 | |||||
Income taxes payable | 21.0 | 4.5 | |||||
Current portion of contingency reserves | 2.3 | 3.4 | |||||
Total current liabilities | 261.6 | 270.1 | |||||
Long-term debt, excluding current portion | 346.9 | 350.8 | |||||
Deferred income taxes | 62.2 | 33.4 | |||||
Contingency reserves, excluding current portion | 8.5 | 11.7 | |||||
Other long-term liabilities | 134.7 | 178.0 | |||||
Stockholders’ equity: | |||||||
Common stock | 153.4 | 153.4 | |||||
Additional paid-in capital | 458.2 | 470.6 | |||||
Retained earnings | 1,612.6 | 1,280.1 | |||||
Treasury stock | (377.6 | ) | (177.5 | ) | |||
Accumulated comprehensive loss | (146.4 | ) | (122.1 | ) | |||
Total stockholders’ equity | 1,700.2 | 1,604.5 | |||||
Total liabilities and stockholders’ equity | $ | 2,514.1 | $ | 2,448.5 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 17.0 | $ | 130.5 | $ | 394.6 | $ | 389.8 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 28.2 | 32.0 | 120.0 | 123.3 | |||||||||||||
Equity in (income) loss of unconsolidated affiliates, including dividends | 3.1 | 0.4 | 3.3 | (0.8 | ) | ||||||||||||
Other operating credits and charges, net | 9.1 | 0.4 | 2.2 | 4.9 | |||||||||||||
(Gain) loss on sale or impairment of long-lived assets, net | 11.1 | 8.6 | 10.8 | 6.8 | |||||||||||||
Stock-based compensation | 1.7 | 1.7 | 8.6 | 9.7 | |||||||||||||
Exchange (gain) loss on remeasurement | (1.6 | ) | 0.5 | (1.1 | ) | 2.1 | |||||||||||
Cash settlements of warranty, net of accruals | (0.7 | ) | (1.3 | ) | (2.9 | ) | (6.8 | ) | |||||||||
Cash settlement of contingencies, net of accruals | (0.2 | ) | — | (0.5 | ) | (2.3 | ) | (1.0 | ) | ||||||||
Pension contributions | (0.2 | ) | (0.1 | ) | (41.1 | ) | (12.8 | ) | |||||||||
Pension expense | 0.6 | 5.3 | 7.5 | 14.1 | |||||||||||||
Other adjustments, net | 0.6 | 1.2 | 1.2 | 1.5 | |||||||||||||
Changes in assets and liabilities, net of acquisition: | |||||||||||||||||
(Increase) decrease in receivables | 29.6 | 26.9 | 3.4 | (35.0 | ) | ||||||||||||
(Increase) decrease in inventories | 9.8 | (27.2 | ) | (1.9 | ) | (22.7 | ) | ||||||||||
(Increase) decrease in prepaid expenses | 3.7 | 1.1 | (0.4 | ) | (1.6 | ) | |||||||||||
Increase (decrease) in accounts payable and accrued liabilities | (3.1 | ) | 9.7 | (20.7 | ) | 22.5 | |||||||||||
Increase (decrease) in income taxes payable and deferred income taxes | (17.4 | ) | (20.5 | ) | 29.3 | (20.3 | ) | ||||||||||
Net cash provided by operating activities | 91.3 | 168.7 | 510.5 | 473.7 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Property, plant, and equipment additions | (63.8 | ) | (67.9 | ) | (214.2 | ) | (148.6 | ) | |||||||||
Proceeds from asset sales | 0.1 | (0.1 | ) | 1.0 | 3.2 | ||||||||||||
Acquisition of businesses, net of cash acquired | — | (20.8 | ) | — | (20.8 | ) | |||||||||||
Investment in unconsolidated affiliates | — | — | (45.0 | ) | — | ||||||||||||
Receipt of proceeds from notes receivable from asset sales | — | — | 22.2 | — | |||||||||||||
Payment of long-term deposit | — | — | — | (32.0 | ) | ||||||||||||
Other investing activities, net | (1.8 | ) | (0.7 | ) | (2.2 | ) | (0.4 | ) | |||||||||
Net cash provided (used in) investing activities | (65.5 | ) | (89.5 | ) | (238.2 | ) | (198.6 | ) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Repayment of long-term debt | (2.3 | ) | (0.1 | ) | (24.7 | ) | (2.6 | ) | |||||||||
Payment of debt issuance fees | — | (0.5 | ) | — | (0.5 | ) | |||||||||||
Payment of cash dividends | (18.3 | ) | — | (74.4 | ) | — | |||||||||||
Purchase of treasury stock | (113.1 | ) | — | (211.8 | ) | — | — | ||||||||||
Taxes paid related to net share settlement of equity awards | — | (0.6 | ) | (9.3 | ) | (5.9 | ) | ||||||||||
Other financing activities, net | — | — | 3.2 | (0.4 | ) | ||||||||||||
Net cash used in financing activities | (133.7 | ) | (1.2 | ) | (317.0 | ) | (9.4 | ) | |||||||||
Effect of exchange rate on cash, cash equivalents and restricted cash | (0.3 | ) | 1.4 | (4.8 | ) | 3.1 | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (108.2 | ) | 79.4 | (49.5 | ) | 268.8 | |||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 1,000.0 | 861.9 | 941.3 | 672.5 | |||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 891.8 | $ | 941.3 | $ | 891.8 | $ | 941.3 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales: | |||||||||||||||
Siding | $ | 212.9 | $ | 212.8 | $ | 942.3 | $ | 884.0 | |||||||
OSB | 255.4 | 358.2 | 1,305.2 | 1,302.5 | |||||||||||
Engineered Wood Products | 76.3 | 91.5 | 390.9 | 365.9 | |||||||||||
South America | 38.6 | 40.5 | 160.8 | 155.3 | |||||||||||
Other | 6.0 | 7.7 | 28.9 | 30.0 | |||||||||||
Intersegment sales | (0.1 | ) | (0.1 | ) | (0.1 | ) | (3.8 | ) | |||||||
$ | 589.1 | $ | 710.6 | $ | 2,828.0 | $ | 2,733.9 | ||||||||
Operating profit (loss): | |||||||||||||||
Siding | $ | 33.8 | $ | 45.8 | $ | 201.6 | $ | 188.7 | |||||||
OSB | 26.1 | 136.7 | 395.7 | 427.3 | |||||||||||
Engineered Wood Products | (0.4 | ) | 3.1 | 19.5 | 15.7 | ||||||||||
South America | 6.0 | 7.9 | 31.0 | 24.3 | |||||||||||
Other | (1.4 | ) | (0.7 | ) | (4.3 | ) | (3.4 | ) | |||||||
Other operating credits and charges, net | (9.0 | ) | (0.4 | ) | 2.2 | (4.9 | ) | ||||||||
Loss on sale or impairment of long-lived assets | (11.1 | ) | (8.6 | ) | (10.8 | ) | (6.8 | ) | |||||||
General corporate and other expenses, net | (28.9 | ) | (24.1 | ) | (111.7 | ) | (108.1 | ) | |||||||
Interest expense, net of capitalized interest | (3.1 | ) | (4.5 | ) | (15.8 | ) | (19.3 | ) | |||||||
Investment income | 4.1 | 3.3 | 17.6 | 10.5 | |||||||||||
Other non-operating income (expense) | 0.4 | (6.6 | ) | (3.9 | ) | (13.8 | ) | ||||||||
Income from continuing operations before taxes | 16.5 | 151.9 | 521.1 | 510.2 | |||||||||||
Provision (benefit) for income taxes | (0.4 | ) | 21.2 | 122.3 | 119.1 | ||||||||||
Income from continuing operations | $ | 16.9 | $ | 130.7 | $ | 398.8 | $ | 391.1 |
Year Ended December 31, | ||||||
Housing starts1: | 2018 | 2017 | ||||
Single Family | 828 | 848 | ||||
Multi-Family | 428 | 354 | ||||
1,256 | 1,202 |
1 Actual U.S. Housing starts data reported by U.S. Census Bureau. Information for 2018 is based upon seasonally adjusted information published through November 2018 based upon the partial U.S. Government shutdown. |
Quarter Ended December 31, 2018 | Quarter Ended December 31, 2017 | ||||||||||||||||
Sales Volume | Siding | OSB | EWP | Total | Siding | OSB | EWP | Total | |||||||||
SmartSide® Strand siding (MMSF) | 277 | — | — | 277 | 263 | — | — | 263 | |||||||||
SmartSide® fiber siding (MMSF) | 46 | — | — | 46 | 56 | — | — | 56 | |||||||||
CanExel® siding (MMSF) | 4 | — | — | 4 | 7 | — | — | 7 | |||||||||
OSB - commodity (MMSF) | 24 | 643 | 5 | 672 | 41 | 668 | — | 709 | |||||||||
OSB - value added (MMSF) | 2 | 391 | 7 | 400 | — | 397 | 9 | 406 | |||||||||
LVL (MCF) | — | — | 1,353 | 1,353 | — | — | 1,865 | 1,865 | |||||||||
LSL (MCF) | — | — | 682 | 682 | — | — | 783 | 783 | |||||||||
I-joist (MMLF) | — | — | 17 | 17 | — | — | 21 | 21 | |||||||||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | ||||||||||||||||
Sales Volume | Siding | OSB | EWP | Total | Siding | OSB | EWP | Total | |||||||||
SmartSide® Strand siding (MMSF) | 1,139 | — | — | 1,139 | 1,059 | — | — | 1,059 | |||||||||
SmartSide® fiber siding (MMSF) | 222 | — | — | 222 | 254 | — | — | 254 | |||||||||
CanExel® siding (MMSF) | 36 | — | — | 36 | 48 | — | — | 48 | |||||||||
OSB - commodity (MMSF) | 136 | 2,582 | 33 | 2,751 | 230 | 2,642 | 34 | 2,906 | |||||||||
OSB - value added (MMSF) | 61 | 1,610 | 36 | 1,707 | — | 1,605 | 39 | 1,644 | |||||||||
LVL (MCF) | — | — | 6,932 | 6,932 | — | — | 7,593 | 7,593 | |||||||||
LSL (MCF) | — | — | 3,694 | 3,694 | — | — | 3,176 | 3,176 | |||||||||
I-joist (MMLF) | — | — | 86 | 86 | — | — | 87 | 87 |
Three Months Ended December 31, 2018 (Dollar amounts in millions) | Siding | OSB | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Net income (loss) | $ | 33.8 | $ | 26.1 | $ | (0.4 | ) | $ | 6.0 | $ | (1.3 | ) | $ | (47.2 | ) | $ | 17.0 | ||||||||||
Loss from discontinued operations | — | — | — | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||||
Benefit for income taxes | — | — | — | — | — | — | — | ||||||||||||||||||||
Income (loss) from continuing operations | 33.8 | 26.1 | (0.4 | ) | 6.0 | (1.4 | ) | (47.2 | ) | 16.9 | |||||||||||||||||
Provision for income taxes | — | — | — | — | — | (0.4 | ) | (0.4 | ) | ||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 3.1 | 3.1 | ||||||||||||||||||||
Depreciation and amortization | 7.5 | 14.5 | 2.6 | 2.4 | 0.4 | 0.8 | 28.2 | ||||||||||||||||||||
Stock-based compensation expense | 0.3 | — | 0.1 | — | — | 1.2 | 1.6 | ||||||||||||||||||||
Gain on sale or impairment of long-lived assets, net | — | — | — | — | — | 11.1 | 11.1 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 9.0 | 9.0 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (4.1 | ) | (4.1 | ) | ||||||||||||||||||
Other non-operating items | — | — | — | — | — | (0.4 | ) | (0.4 | ) | ||||||||||||||||||
Adjusted EBITDA | $ | 41.6 | $ | 40.6 | $ | 2.3 | $ | 8.4 | $ | (1.0 | ) | $ | (26.9 | ) | $ | 65.0 | |||||||||||
Adjusted EBITDA Margin | 19.5 | % | 15.9 | % | 3.0 | % | 21.8 | % | (16.7 | )% | NA | 11.0 | % |
Three Months Ended December 31, 2017 (Dollar amounts in millions) | Siding | OSB | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Net income (loss) | $ | 45.8 | $ | 136.7 | $ | 3.1 | $ | 7.9 | $ | (0.9 | ) | $ | (62.1 | ) | $ | 130.5 | |||||||||||
Loss from discontinued operations | — | — | — | — | 0.3 | — | 0.3 | ||||||||||||||||||||
Benefit for income taxes | — | — | — | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||||
Income (loss) from continuing operations | 45.8 | 136.7 | 3.1 | 7.9 | (0.7 | ) | (62.1 | ) | 130.7 | ||||||||||||||||||
Provision for income taxes | — | — | — | — | — | 21.2 | 21.2 | ||||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 4.5 | 4.5 | ||||||||||||||||||||
Depreciation and amortization | 7.2 | 16.8 | 4.2 | 2.3 | 0.7 | 0.8 | 32.0 | ||||||||||||||||||||
Stock-based compensation expense | 0.3 | 0.3 | 0.1 | — | — | 1.1 | 1.8 | ||||||||||||||||||||
Loss on sale or impairment of long-lived assets, net | — | — | — | — | — | 8.6 | 8.6 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 0.4 | 0.4 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (3.3 | ) | (3.3 | ) | ||||||||||||||||||
Other non-operating items | — | — | — | — | — | 6.6 | 6.6 | ||||||||||||||||||||
Adjusted EBITDA | $ | 53.3 | $ | 153.8 | $ | 7.4 | $ | 10.2 | $ | — | $ | (22.2 | ) | $ | 202.5 | ||||||||||||
Adjusted EBITDA Margin | 25.0 | % | 42.9 | % | 8.1 | % | 25.2 | % | — | % | NA | 28.5 | % |
Year Ended December 31, 2018 (Dollar amounts in millions) | Siding | OSB | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Net income (loss) | $ | 201.6 | $ | 395.7 | $ | 19.5 | $ | 31.0 | $ | (8.5 | ) | $ | (244.7 | ) | $ | 394.6 | |||||||||||
Loss from discontinued operations | — | — | — | — | 5.6 | — | 5.6 | ||||||||||||||||||||
Benefit for income taxes | — | — | — | — | (1.4 | ) | — | (1.4 | ) | ||||||||||||||||||
Income (loss) from continuing operations | 201.6 | 395.7 | 19.5 | 31.0 | (4.3 | ) | (244.7 | ) | 398.8 | ||||||||||||||||||
Provision for income taxes | — | — | — | — | — | 122.3 | 122.3 | ||||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 15.8 | 15.8 | ||||||||||||||||||||
Depreciation and amortization | 32.3 | 58.3 | 15.1 | 9.1 | 2.0 | 3.2 | 120.0 | ||||||||||||||||||||
Stock-based compensation expense | 1.1 | 0.7 | 0.4 | — | — | 5.8 | 8.0 | ||||||||||||||||||||
Loss on sale or impairments of long-lived assets, net | — | — | — | — | — | 10.8 | 10.8 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | (2.2 | ) | (2.2 | ) | ||||||||||||||||||
Investment income | — | — | — | — | — | (17.6 | ) | (17.6 | ) | ||||||||||||||||||
Other non-operating items | — | — | — | — | — | 3.9 | 3.9 | ||||||||||||||||||||
Adjusted EBITDA | $ | 235.0 | $ | 454.7 | $ | 35.0 | $ | 40.1 | $ | (2.3 | ) | $ | (102.7 | ) | $ | 659.8 | |||||||||||
Adjusted EBITDA Margin | 24.9 | % | 34.8 | % | 9.0 | % | 24.9 | % | (8.0 | )% | NA | 23.3 | % |
Year Ended December 31, 2017 (Dollar amounts in millions) | Siding | OSB | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Net income (loss) | $ | 188.7 | $ | 427.3 | $ | 15.7 | $ | 24.3 | $ | (4.7 | ) | $ | (261.5 | ) | $ | 389.8 | |||||||||||
Loss from discontinued operations | — | — | — | — | 2.0 | — | 2.0 | ||||||||||||||||||||
Benefit for income taxes | — | — | — | — | (0.7 | ) | — | (0.7 | ) | ||||||||||||||||||
Income (loss) from continuing operations | 188.7 | 427.3 | 15.7 | 24.3 | (3.4 | ) | (261.5 | ) | 391.1 | ||||||||||||||||||
Provision for income taxes | — | — | — | — | — | 119.1 | 119.1 | ||||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 19.3 | 19.3 | ||||||||||||||||||||
Depreciation and amortization | 30.9 | 61.6 | 15.8 | 9.1 | 2.8 | 3.1 | 123.3 | ||||||||||||||||||||
Stock-based compensation expense | 0.9 | 0.9 | 0.3 | — | — | 7.6 | 9.7 | ||||||||||||||||||||
Loss on sale or impairments of long-lived assets, net | — | — | — | — | — | 6.8 | 6.8 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 4.9 | 4.9 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (10.5 | ) | (10.5 | ) | ||||||||||||||||||
Other non-operating items | — | — | — | — | — | 13.8 | 13.8 | ||||||||||||||||||||
Adjusted EBITDA | $ | 220.5 | $ | 489.8 | $ | 31.8 | $ | 33.4 | $ | (0.6 | ) | $ | (97.4 | ) | $ | 677.5 | |||||||||||
Adjusted EBITDA Margin | 24.9 | % | 37.6 | % | 8.7 | % | 21.5 | % | (2.0 | )% | NA | 24.8 | % |
(Dollar amounts in millions, except per share amounts) | Quarter Ended | ||||||
December 31, 2018 | December 31, 2017 | ||||||
Net income | $ | 17.0 | 130.6 | ||||
Add (deduct): | |||||||
(Income) loss from discontinued operations | (0.1 | ) | 0.2 | ||||
Loss on sale or impairment of long-lived assets, net | 11.1 | 8.6 | |||||
Other operating credits and charges, net | 9.0 | 0.4 | |||||
Reported tax provision | (0.4 | ) | 21.2 | ||||
Normalized tax provision at 25% for 2018 and 35% for 2017 | (9.2 | ) | (56.4 | ) | |||
Adjusted income from continuing operations | $ | 27.4 | $ | 104.6 | |||
Diluted shares outstanding | 141.1 | 146.6 | |||||
Adjusted income from continuing operations per diluted share | $ | 0.19 | $ | 0.71 |
Year Ended | |||||||
(Dollar amounts in millions, except per share amounts) | December 31, 2018 | December 31, 2017 | |||||
Net income | $ | 394.6 | $ | 389.8 | |||
Add (deduct): | |||||||
Loss from discontinued operations | 4.2 | 1.3 | |||||
Loss on sale or impairment of long-lived assets, net | 10.8 | 6.8 | |||||
Other operating credits and charges, net | (2.2 | ) | 4.9 | ||||
Reported tax provision | 122.3 | 119.1 | |||||
Normalized tax provision at 25% for 2018 and 35% for 2017 | (132.4 | ) | (182.7 | ) | |||
Adjusted income from continuing operations | $ | 397.3 | $ | 339.2 | |||
Diluted shares outstanding | 144.4 | 146.4 | |||||
Adjusted income from continuing operations per diluted share | $ | 2.75 | $ | 2.32 |
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