LP Reports Fourth Quarter and Year End Results
PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 29, 2001--Louisiana-Pacific Corp. (NYSE:LPX) today reported a fourth quarter net loss, excluding unusual credits and charges and LP's share of a restructuring charge of an equity investee ("unusual items"), of $28 million, or $0.27 per diluted share, on sales of $569 million.
Including unusual items, fourth quarter results were a loss of $52 million, or $0.50 per diluted share. In the fourth quarter of 1999, net income excluding unusual items was $32 million, or $0.31 per diluted share. Including unusual items, fourth quarter 1999 income was $35 million, or $0.34 per diluted share, on sales of $764 million.
For 2000, LP reported income, excluding unusual items, of $32 million, or $.31 per diluted share, compared to income of $222 million, or $2.09 per diluted share for 1999. Sales declined slightly in 2000 to $2.9 billion from $3.1 billion almost entirely due to lower commodity pricing. Including unusual items, year end 2000 results were a net loss of $14 million, or $.13 per diluted share, compared to income in 1999 of $217 million, or $2.04 per diluted share.
"Very weak building products prices have continued to affect our results," said Mark A. Suwyn, LP's chairman and CEO. "Prices on key commodity products were down as much as 50 percent from the fourth quarter of last year and 10 percent from the previous quarter. Sharply higher energy costs and extensive downtime also had a negative impact on operating results."
During the fourth quarter, LP responded to poor market conditions by curtailing production at a number of its mills and permanently closing several high-cost, non-competitive mills. Combined with restructuring at the corporate level, these actions have reduced LP's workforce by approximately 1,800 employees (15 percent of the workforce).
Suwyn noted that despite the recent decrease in interest rates, current poor market conditions have not yet improved. He cautioned that low pricing could continue for the next several months.
"Cost reduction is the primary focus of LP management -- aggressive actions are being taken at both our manufacturing operations and administrative offices. We have postponed or eliminated planned capital expenditures and will continue to streamline operations to take additional cost out of our businesses," said Suwyn. "This is not only a prudent course of action to take in these market conditions, but will also better position us to emerge as a more competitive company when the cycle improves."
LP is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its rapidly growing retail, wholesale, homebuilding and industrial customers. For more information about LP, visit the company's website at www.lpcorp.com.
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 accuracy of such statements is 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 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 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)
Quarter Ended Year Ended
December 31, December 31,
------------------ ----------------------
------------------ ----------------------
2000 1999 2000 1999
------ ------ ------ ---------
------ ------ ------ ---------
Net sales $ 568.9 $ 763.9 $2,932.8 $3,071.6
Income (loss)
before taxes and
minority interest $ (122.5) $ 57.6 $ (18.2) $ 357.0
Net income (loss) $ (51.6) $ 35.4 $ (13.8) $ 216.8
Income (loss)
excluding unusual
items $ (28.2) $ 32.2 $ 32.1 $ 221.9
Net income (loss)
per share -
basic and diluted $ (0.50) $ 0.34 $ (0.13) $ 2.04
Income (loss)
per share excluding
unusual items $ (0.27) $ 0.31 $ 0.31 $ 2.09
Average shares
outstanding -
basic and diluted 104.2 105.4 104.1 106.2
SALES BY QUARTER
1st 2nd 3rd 4th
--------- -------- -------- --------
1999 $641.4 $816.6 $849.7 $763.9
2000 $829.7 $831.5 $702.7 $568.9
NET INCOME
(LOSS) BY QUARTER
1st 2nd 3rd 4th
-------- ------- -------- -------
1999 $27.2 $84.9 $69.3 $35.4
2000 $57.7 $21.0 ($40.9) ($51.6)
NET INCOME
(LOSS) PER SHARE
BY QUARTER -
BASIC AND DILUTED
1st 2nd 3rd 4th
-------- ------- ------- --------
1999 $0.26 $0.79 $0.65 $0.34
2000 $0.55 $0.20 ($0.39) ($0.50)
See notes on following page.
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL DATA
(Dollar amounts in millions, except per share amounts) (Unaudited)
1. All sales figures have been reclassified to conform with EITF
00-10 "Accounting for Shipping and Handling Costs."
2. Results of operations for interim periods are not necessarily
indicative of results to be expected for an entire year.
3. Unusual Credits and Charges, Net:
In the second quarter of 1999, LP recorded a $5 million gain ($3
million after taxes, or $.03 per diluted share) on the sale of
timberland.
In the third quarter of 1999, LP's Ketchikan Pulp Company
subsidiary recorded a net charge of $18.7 million ($11.5
million after taxes, or $0.11 per diluted share) primarily
related to reducing the carrying value of the assets to be
sold to the expected sales value and to record an increase in
estimated environmental remediation liabilities.
In the fourth quarter of 1999, LP recorded a gain on the sale of
its Associated Chemists, Inc. subsidiary of $14.5 million
($8.9 million after taxes, or $0.08 per diluted share) and a
write-off a note receivable of $9.2 million ($5.7 million
after taxes, or $0.05 per diluted share) received in a sale of
assets in a prior year.
In the first quarter of 2000, LP recorded a $5.0 million ($3.1
million after taxes, or $0.03 per diluted share) gain on an
insurance recovery for siding related matters and an
impairment charge of $3.4 million ($2.1 million after taxes,
or $0.02 per diluted share) to reduce the carrying value of a
manufacturing facility to its estimated net realizable value.
In the second quarter of 2000, LP recorded a net loss of $38
million ($22.7 million after taxes, or $.21 per diluted share)
primarily related to an impairment charge to reduce the
carrying value of the Samoa pulp mill to its estimated net
realizable value, an impairment charge at an MDF facility, a
mark to market charge on an interest rate hedge and a gain on
an insurance recovery for siding related matters.
In the third quarter of 2000, LP recorded a gain on an insurance
recovery of $10.6 million ($6.4 million after taxes, or $.06
per diluted share) related to the 1999 fire at the Athens,
Georgia OSB facility. LP also recorded unusual gains on the
sales of the Mellen, Wisconsin veneer facilities and a former
plant site in California that totaled $6.1 million ($3.7
million after taxes, or $.03 per diluted share). In addition,
LP recorded unusual charges relating to the settlement of an
interest rate hedge, additional environmental reserves for
sites in Quebec that were acquired in 1999, additional
reserves for non-product litigation and impairment charges
relating to several facilities which will be permanently
closed totaling $17.8 million ($10.7 million after taxes, or
$.10 per diluted share).
In the fourth quarter of 2000, LP recorded a net loss of $15.4
($9.4 million after taxes, or $.09 per share) million
associated with the permanent closure or planned sale of
several high-cost non-competitive mills. Additionally, LP
recorded impairment charges of $15.4 million ($9.4 million
after taxes, or $.09 per share) related to other assets held.
LP also recorded $2.3 million ($1.3 million after taxes, or
$.01 per share) of severance charges related to a
reorganization of administrative functions.
Also in the fourth quarter, LP recognized a loss of $5.3 million
($3.3 million after taxes, or $.04 per share) associated with
its share of restructuring charges at GreenFiber, the joint
venture between LP and Casella Waste Systems, Inc. This loss
is reported on the line item "Equity in (income) loss of
unconsolidated subsidiary" in LP's income statement.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended Year Ended
December 31, December 31,
---------------- -----------------
---------------- -----------------
2000 1999 2000 1999
------ ------ ------ ------
------ ------ ------ ------
Net sales $ 568.9 $ 763.9 $ 2,932.8 $3,071.6
-------- --------- --------- ---------
-------- --------- --------- ---------
Operating costs
and expenses:
Cost of sales 537.5 582.1 2,362.6 2,272.5
Depreciation,
amortization and
depletion 51.4 61.1 235.5 202.0
Selling and
administrative 57.5 61.3 234.7 219.4
Unusual credits
and charges, net 33.1 (5.3) 70.5 8.2
------- -------- ---------- ------
------- -------- ---------- ------
Total operating
costs and expenses 679.5 699.2 2,903.3 2,702.1
------- -------- ---------- -------
------- -------- ---------- -------
Income (loss)
from operations (110.6) 64.7 29.5 369.5
------- -------- ---------- ------
------- -------- ---------- ------
Non-operating
income (expense):
Interest expense (22.8) (18.2) (81.0) (47.9)
Interest income 9.5 9.9 37.9 36.0
Foreign exchange
gains (losses) 1.4 1.2 (4.6) (0.6)
------- --------- --------- ------
------- --------- --------- ------
Total non-operating
income (expense) (11.9) (7.1) (47.7) (12.5)
------- --------- --------- ------
------- --------- --------- ------
Income (loss)
before taxes,
minority interest
and equity in earnings
of unconsolidated
subsidiary (122.5) 57.6 (18.2) 357.0
Provision (benefit)
for income taxes (75.9) 21.4 (11.5) 139.5
Minority interest
in net income (loss)
of consolidated
subsidiaries (0.7) 0.8 - 0.7
Equity in (income)
loss of unconsolidated
subsidiary 5.7 - 7.1 -
--------- ---------- --------- -----
--------- ---------- --------- -----
Net income (loss) $ (51.6) $ 35.4 $ (13.8) $ 216.8
========= ========== ======== ======
========= ========== ======== ======
Net income (loss)
per share -
basic and diluted $ (0.50) $ 0.34 $ (0.13) $ 2.04
========== ========== ======== ======
========== ========== ======== ======
Average share
outstanding -
basic and diluted
(millions) 104.2 105.4 104.1 106.2
========== ========== ======== ======
========== ========== ======== ======
Cash dividends
per share $ 0.14 $ 0.14 $ 0.56 $ 0.56
========= ========== ======== ======
========= ========== ======== ======
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Dec. 31, 2000 Dec. 31, 1999
--------------- -------------
ASSETS
Cash and cash
equivalents $ 38.1 $ 116.0
Accounts receivable, net 129.6 200.7
Inventories 327.5 293.4
Prepaid expenses 22.8 18.5
Income taxes receivable 91.5 ----
Deferred income taxes 44.6 110.8
------------ ----------------
Total current assets 654.1 739.4
Timber and timberlands 590.6 611.1
Property, plant and equipment 2,562.8 2,537.4
Accumulated depreciation (1,254.0) (1,203.4)
------------ ----------------
Net property, plant and equipment 1,308.8 1,334.0
Goodwill, net of amortization 326.3 347.7
Notes receivable from asset sales 403.8 403.8
Other assets 91.1 52.2
------------ ----------------
------------ ----------------
Total assets $ 3,374.7 $ 3,488.2
============ ================
LIABILITIES AND EQUITY
Current portion of long-term debt $ 39.4 $ 44.9
Accounts payable and accrued
liabilities 303.8 306.5
Income taxes payable - 9.3
Current portion of contingency
reserves 35.0 180.0
------------ ---------------
Total current liabilities 378.2 540.7
Long-term debt, excluding
current portion:
Limited recourse notes payable 396.5 396.5
Other long term debt 787.3 618.3
------------- --------------
Total long-term debt,
excluding current portion 1,183.8 1,014.8
Contingency reserves,
excluding current portion 126.6 128.8
Deferred income taxes and other 390.9 443.9
Commitments and contingencies
Stockholders' equity:
Common stock 117.0 117.0
Additional paid-in capital 440.2 445.4
Retained earnings 1,004.3 1,076.4
Treasury stock (235.1) (228.3)
Loans to Employee Stock
Ownership Trust - (6.9)
Accumulated comprehensive loss (31.2) (43.6)
---------- ----------------
---------- ----------------
Total stockholders' equity 1,295.2 1,360.0
---------- ----------------
---------- ----------------
Total liabilities and equity $ 3,374.7 $ 3,488.2
========== ================
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Year Ended
December 31,
-------------------------------
-------------------------------
2000 1999
--------- ----------
--------- ----------
Cash flows from
operating activities:
Net income $ (13.8) $ 216.8
Depreciation, amortization
and depletion 235.5 202.0
Unusual credits and charges, net 85.6 8.2
Cash settlements of contingencies (162.4) (104.0)
Other adjustments 14.5 0.4
Decrease (increase) in certain
working capital components and
deferred taxes (76.9) 149.2
--------- ----------
--------- ----------
Net cash provided by
operating activities 82.5 472.6
Cash flows from investing activities:
Capital spending (220.3) (117.9)
Proceeds from assets sales 20.5 74.2
Business asset purchases,
including replacement of debt (54.7) (726.1)
Other investing activities, net (6.6) (13.6)
---------- ------------
---------- ------------
Net cash used in
investing activities (261.1) (783.4)
Cash flows from financing activities:
New borrowings, including net
increase in revolving borrowings 667.6 629.3
Repayment of long-term debt (502.4) (224.6)
Cash dividends (58.3) (59.2)
Purchase of treasury stock (11.2) (47.9)
Other financing activities 5.0 2.7
------------ ----------
------------ ----------
Net cash provided by
financing activities 100.7 300.3
Net increase in cash and
cash equivalents (77.9) (10.5)
Cash and cash equivalents at
beginning of period 116.0 126.5
------------ ---------
------------ ---------
Cash and cash equivalents
at end of period $ 38.1 $ 116.0
============ =========
============ =========
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------------------ ------------------------
------------------------ ------------------------
2000 1999 % change 2000 1999 % change
---- ---- ------ ---- ---- --------
---- ---- ------ ---- ---- --------
Net sales:
Structural
products $ 352.1 $ 461.4 (24) $ 1,817.1 $1,876.3 (3)
Exterior
products 62.0 63.9 (3) 328.7 276.0 19
Industrial
panel products 60.4 78.9 (23) 287.4 300.2 (4)
Other products 65.0 117.3 (45) 348.1 476.0 (27)
Pulp 29.4 42.4 (31) 151.5 143.2 6
-------- ------ ------ -------
-------- ------ ------ -------
$ 568.9 $ 763.9 (26) $ 2,932.8 $3,071.7 (5)
======== ====== ========= ========
======== ====== ========= ========
Operating profit
(loss):
Structural
products $ (33.4) $ 64.0 (152) $ 173.0 $ 439.8 (61)
Exterior
products (7.6) 11.6 (166) 19.2 53.0 (64)
Industrial
panel products (4.5) 4.4 (202) 1.8 12.8 (86)
Other products (4.3) 5.7 (175) (12.0) (10.5) (14)
Pulp (2.5) 0.0 12.5 (14.7) 185
Unusual credits
and charges, net (33.1) 5.3 (725) (70.5) (8.2) (760)
General corporate
and other
expenses, net (23.8) (25.1) 5 (99.1) (103.3) 4
Interest income
(expense), net (13.3) (8.3) (60) (43.1) (11.9) (262)
------- ------ ------- -------
------- ------ ------- -------
Income (loss)
before taxes,
minority interest
and equity in
earnings of
unconsolidated
subsidiary $ (122.5)$ 57.6 (313) $ (18.2) $ 357.0 (105)
======== ===== ========= ======
======== ===== ========= ======
LOUISIANA-PACIFIC CORPORATION
SUMMARY OF PRODUCTION VOLUMES
Quarter Ended Year Ended
December 31, December 31,
--------------- ---------------
--------------- ---------------
2000 1999 2000 1999
------ ----- ---- -----
------ ----- ---- -----
Oriented strand board,
million square feet 3/8" basis 1,189 1,242 5,122 4,406
Softwood plywood,
million square feet 3/8" basis 243 241 1,046 943
Lumber, million board feet 238 237 993 1,029
Wood-based siding,
million square feet 3/8" basis 203 183 949 678
Industrial panel products
(particleboard, medium density
fiberboard and hardboard),
million square feet 3/4" basis 133 139 598 621
Engineered I-Joist,
million lineal feet 14 23 70 87
Laminated veneer lumber (LVL),
thousand cubic feet 1,300 1,300 7,000 6,300
Pulp, thousand short tons 91 95 373 374
--30--rr/se*
CONTACT:
Louisiana-Pacific Corp.
Media Relations
Kelly Stoner, 503/821-5281
or
Investor Relations
Bill Hebert, 503/221-0800