SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarterly Period Ended March 31, 1995
Commission File Number 1-7107
LOUISIANA-PACIFIC CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 93-0609074
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
111 S. W. Fifth Avenue, Portland, Oregon 97204-3699
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (503) 221-0800
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X . No .
Indicate the number of shares outstanding of each of the issuer's
classes of common stock: 107,795,172 shares of Common Stock,
$1 par value, outstanding as of April 30, 1995.
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Summary Statements of Income
Louisiana-Pacific Corporation and Subsidiaries
(Dollar amounts in millions except per share) (Unaudited)
Three Months Ended March 31, 1995 1994
Net sales $ 686.8 $ 698.0
------- -------
Costs and expenses:
Cost of sales 525.6 486.7
Depreciation, amortization and depletion 45.0 44.6
Selling and administrative 29.7 26.5
Interest expense 2.3 2.6
Interest income (3.1) (1.9)
------- -------
Total costs and expenses 599.5 558.5
------- -------
Income before taxes and minority interest 87.3 139.5
Provision for income taxes (32.1) (53.7)
Minority interest in net income of
consolidated subsidiaries (.9) (.6)
------- -------
Net income $ 54.3 $ 85.2
======= =======
Net income per share $ .50 $ .77
======= =======
Cash dividends per share $ .125 $ .11
======= =======
Consolidated Summary Balance Sheets
Louisiana-Pacific Corporation and Subsidiaries
(Dollar amounts in millions) (Unaudited)
Mar. 31, 1995 Dec. 31, 1994
Cash and cash equivalents $ 160.9 $ 315.9
Accounts receivable, net 169.9 157.4
Inventories 217.8 213.8
Prepaid expenses 11.7 7.3
-------- --------
Total current assets 560.3 694.4
-------- --------
Timber and timberlands 697.4 693.5
Property, plant and equipment 2,434.4 2,358.2
Less reserves for depreciation (1,113.9) (1,085.0)
-------- --------
Net property, plant and equipment 1,320.5 1,273.2
Investments and other assets 51.6 55.1
-------- --------
Total assets $2,629.8 $2,716.2
======== ========
Current portion of long-term debt $ 45.7 $ 81.9
Short-term notes payable 50.3 50.5
Accounts payable and accrued liabilities 202.0 193.5
Income taxes payable 42.2 18.9
-------- --------
Total current liabilities 340.2 344.8
-------- --------
Long-term debt, excluding current portion 193.7 209.8
Deferred income taxes 269.8 269.8
Other long-term liabilities and minority interest 43.0 42.4
Stockholders' equity:
Common Stock 117.0 117.0
Additional paid-in-capital 479.9 478.4
Retained earnings 1,551.3 1,510.7
Treasury stock (201.3) (86.3)
Loans to Employee Stock Ownership Trusts (107.6) (114.0)
Other equity adjustments (56.2) (56.4)
-------- --------
Total stockholders' equity 1,783.1 1,849.4
-------- --------
Total liabilities and equity $2,629.8 $2,716.2
======== ========
Consolidated Summary Statements of Cash Flows
Louisiana-Pacific Corporation and Subsidiaries
(Dollar amounts in millions) (Unaudited)
Three Months Ended March 31, 1995 1994
Cash flows from operating activities:
Net income $ 54.3 $ 85.2
Depreciation, amortization and depletion 45.0 44.6
Other adjustments 8.7 7.9
Decrease (increase) in certain working
capital components 12.7 (23.7)
------- -------
Net cash provided by operating activities 120.7 114.0
------- -------
Cash flows from investing activities:
Plant, equipment and logging road additions, net (80.9) (54.0)
Timber and timberland additions (15.9) (16.7)
Other investing activities, net 2.6 .6
------- -------
Net cash used in investing activities (94.2) (70.1)
------- -------
Cash flows from financing activities:
Repayment of long-term debt (52.3) (50.8)
Cash dividends (13.7) (12.1)
Increase (decrease) in short-term notes payable (.2) 4.1
Purchase of treasury stock (115.6) (7.5)
Other financing activities, net .3 3.9
------- -------
Net cash used in financing activities (181.5) (62.4)
------- -------
Net increase (decrease) in cash and cash equivalents (155.0) (18.5)
Cash and cash equivalents at beginning of year 315.9 261.6
------- -------
Cash and cash equivalents at end of period $ 160.9 $ 243.1
======= =======
Consolidated Statements of Stockholders' Equity
Louisiana-Pacific Corporation and Subsidiaries
(Dollar amounts in millions except per share) (Unaudited)
Three Months Ended
March 31, 1995
Shares Amount
Common Stock 116,937,022 $ 117.0
=========== ========
Additional Paid-in-Capital:
Beginning balance $ 478.4
Net transactions 1.5
--------
Ending balance $ 479.9
========
Retained Earnings:
Beginning balance $1,510.7
Net income 54.3
Cash dividends, $.125 per share (13.7)
--------
Ending balance $1,551.3
========
Treasury stock:
Beginning balance 4,944,804 $ (86.3)
Purchases 4,167,500 (115.6)
Shares reissued for employee stock
plans and other purposes (32,149) .6
--------- --------
Ending balance 9,080,155 $ (201.3)
========= ========
Loans to ESOTs:
Beginning balance $ (114.0)
Accrued contribution 6.4
--------
Ending balance $ (107.6)
========
Other Equity Adjustments:
Beginning balance $ (56.4)
Currency translation adjustment .2
--------
Ending balance $ (56.2)
========
Notes To Financial Statements
Louisiana-Pacific Corporation and Subsidiaries
1. The interim period information included herein reflects all
adjustments which are, in the opinion of the management of L-P, necessary
for a fair statement of the results of the respective interim periods. Such
adjustments are of a normal recurring nature. Results of operations for
interim periods are not necessarily indicative of results to be expected for
an entire year. It is suggested that these summary financial statements be
read in conjunction with the financial statements and the notes thereto
included in L-P's 1994 Annual Financial Report to Stockholders. Interim
financial statements are by necessity somewhat tentative; judgments are used
to estimate quarterly amounts for items that are normally determinable only
on an annual basis. Certain prior period amounts have been reclassified to
conform to the current year presentation.
2. Earnings per share is based on the weighted average number of
shares of common stock outstanding during the periods (108,470,000 in 1995
and 110,140,000 in 1994). The effect of common stock equivalents is not
material.
3. The effective income tax rate is based on estimates of annual
amounts of taxable income, foreign sales corporation income and other
factors. These estimates are updated quarterly.
4. Determination of interim LIFO inventories requires estimates of
year-end inventory quantities and costs. These estimates are revised
quarterly and the estimated annual change in the LIFO inventory reserve is
expensed over the remainder of the year.
5. Reference is made to "Legal Proceedings" elsewhere in this report
for a description of certain contingencies.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
RESULTS OF OPERATIONS
General
Higher interest rates and unseasonal weather patterns caused first
quarter building products profitability to fall from year-ago levels while
the pulp segment achieved record operating profit during the quarter fueled
by strong world-wide demand. Overall net income fell 36 percent from $85.2
million ($.77 per share) in the first quarter of 1994 to $54.3 million ($.50
per share). Sales fell approximately 2 percent to $686.6 million in the
first quarter of 1995 from $698.0 million in the first quarter of 1994.
The registrant operates in two segments: building products and pulp.
Building products is the most significant segment, accounting for more than
86 percent of sales and more than 83 percent of operating profit during each
of the first quarters. The results of operations are discussed separately
for each segment below. Key segment information, production volumes and
industry product price trends are presented in the following tables labeled
"Sales and Operating Profit by Major Product Group," and "Summary of
Production Volumes" and "Industry Product Price Trends."
Building Products Segment
Building products segment sales in the first quarter of 1995 were $591.1
million, an 11 percent decrease from first quarter 1994 sales of $664.9.
The majority of the decrease was attributable to lumber sales which fell
from $222.1 million in 1994 to $152.0 million in 1995. Lumber sales volume
dropped approximately 20 percent while prices dropped an average of
14 percent. Weak construction activity caused an oversupply of lumber which
drove prices down. L-P took significant downtime at many sawmills due to
the weak demand combined with high log costs due to wet weather which
disrupted log flow. Structural panel sales declined by approximately
7 percent in 1995 compared to 1994, primarily on decreased plywood volume as
mills in the South ran short of logs due to wet weather. Other panel
products sales rose slightly on higher per unit sales prices which were
partially offset by lower volumes. The increase in sales in the other
building products category was primarily attributable to production
facilities added subsequent to the first quarter of 1994.
Building products segment operating profits decreased 46 percent to
$90.4 million from $166.5 million in the first quarter of 1994. This
decrease is primarily attributable to the decrease in lumber sales and
structural panel sales discussed above combined with higher costs,
particularly log costs.
L-P's building products are primarily sold as commodities and therefore
sales prices fluctuate based on market factors over which L-P has no
control. L-P cannot predict whether the prices of its building products
will remain at current levels, or will increase or decrease in the future
because supply and demand are influenced by many factors, only one of which
is the cost and availability of raw materials. Therefore, L-P is not able
to determine to what extent, if any, it will be able to pass any future
increases in the price of raw materials on to customers through product
price increases.
Pulp Segment
Pulp sales jumped 189 percent in the first quarter of 1995 over first
quarter 1994. Prices increased an average of approximately 66 percent while
volume increased approximately 74 percent. World-wide pulp markets
rebounded strongly late in 1994 and early in 1995 which has significantly
increased selling prices and allowed L-P to operate its three pulp mills at
higher rates. Production volume was 90 percent of capacity in the first
quarter of 1995 compared to 62 percent in the first quarter of 1994. Pulp
sales increases have also caused export sales to increase significantly as
L-P sells the substantial majority of pulp to export customers.
Pulp segment operating profits benefited from the increased sales,
jumping to an $18.8 million profit in the first three months of 1995 from a
$10.0 million loss in the first three months of 1994. Chips, the fiber raw
material for pulp, are currently in short supply as many supplying sawmills
have shut down, which has caused an increase in chip costs which will likely
continue in the coming months.
Based on expected pulp prices in the coming months, L-P believes it will
be able to pass any increase in chip costs on to customers through end
product price increases. However, beyond that time frame, there can be no
assurance that L-P will be able to pass any future increases in the price of
raw materials on to customers through product price increases.
Unallocated Expense
The increase in unallocated expense is due to increases in several items
including contingency accruals, franchise taxes, miscellaneous expense
categories and general increases in administrative expenses.
Interest Income (Expense)
L-P's debt level has continued to decrease, resulting in lower interest
expense partially offset by higher interest rates on L-P's remaining
variable rate debt. Interest rate increases have favorably impacted L-P's
interest income, partially offset by lower levels of cash and equivalents
(discussed below).
Legal and Environmental Matters
Refer to the "Legal Proceedings" section of this Form 10-Q for a
discussion of certain environmental litigation and other litigation.
Inner-Seal(R) Siding Matters
L-P manufactures a complete line of Inner-Seal(R) oriented strand board
("OSB") products for the building and construction industry. Such products
include sheathing, roof decking, flooring, siding, soffit, and engineered I-
joists using OSB as the web material.
In 1985, L-P began producing and selling OSB-based exterior siding
products in both a lap and panel style. The siding uses OSB as the
substrate and is overlaid with a resin-impregnated paper. The siding
products are used primarily in residential home construction, both single-
family and multifamily, and also to a lesser extent in commercial
construction. L-P offers a warranty on both the OSB substrate and the
siding surface, if certain standards are adhered to, such as proper
installation and proper care and maintenance of the product.
Since 1985, the registrant has sold approximately 2.6 billion square
feet of these Inner-Seal(R) siding products throughout the United States.
During this period, warranty claims related to these siding products have
been made against L-P. Where such claims resulted from improper
installation or improper care and maintenance, L-P has sought to hold the
installer or homeowner responsible for a portion of the claim. Where claims
were based on a problem with the product, L-P has honored its warranty and
settled the claims in a timely manner.
Since 1985, L-P has paid approximately $39 million to settle claims
relating to siding warranties at an average cost of about $2,500 per
dwelling unit. This amount includes claims paid of approximately $10
million in 1994 and $2 million in the first quarter of 1995.
Refer to the "Legal Proceedings" section of this Form 10-Q for a
discussion of siding-related litigation.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operations increased approximately 6 percent despite
the decrease in net income. This resulted from changes in certain working
capital items which provided $12.7 million of cash in 1995 and used $23.7
million in cash in 1994. Cash used in investing activities increased
primarily because of increased capital expenditures. The largest portion of
these capital expenditures are for new production facilities. Significant
amounts have also been spent on environmental projects (such as pollution
control equipment) and upgrades of existing production facilities. L-P is
budgeting capital expenditures, including timber and logging road additions,
for all of 1995 of $350 million to $400 million.
Cash used in financing activities increased 191 percent due to the
purchase of $115.6 million of treasury stock in the first quarter of 1995
compared to $7.5 million in the first quarter of 1994. The stock purchases
in 1995 relate to L-P's repurchase authorization for 5 million shares which
was announced in July of 1994 and completed in April of 1995. L-P has
announced a new authorization to purchase up to 10 million shares on the
open market from time to time. The company has not announced any specific
time frame over which it plans to complete these purchases. L-P plans to
finance any treasury stock purchases with existing cash reserves and cash
generated from operations.
L-P continues to be in a strong financial condition with $160.9 million
of cash and cash equivalents and long-term debt as a percent of total
capitalization of 9.7 percent at March 31, 1995. Although cash and cash
equivalents decreased $155 million during the quarter due to the reason
previously discussed, existing cash and cash equivalents combined with an
unused $100 million revolving line of credit and cash generated from
operations are sufficient to meet expected cash needs.
Sales and Operating Profit by Major Product Group
Louisiana-Pacific Corporation and Subsidiaries
(Dollar amounts in millions) (Unaudited)
Three Months Ended March 31, 1995 1994
Sales:
Structural panel products $ 261.9 $ 282.6
Lumber 152.0 222.1
Other panel products 58.5 55.2
Other building products 118.7 105.0
------- -------
Total building products 591.1 664.9
Pulp 95.7 33.1
------- -------
Total sales $ 686.8 $ 698.0
======= =======
Export sales $ 127.3 $ 73.4
======= =======
Operating profit:
Building products $ 90.4 $ 166.5
Pulp 18.8 (10.0)
------- -------
Total operating profit 109.2 156.5
Unallocated expense, net (22.7) (16.3)
Interest income (expense), net .8 (.7)
------- -------
Income before taxes and minority interest $ 87.3 $ 139.5
Summary of Sales and Earnings
Louisiana-Pacific Corporation and Subsidiaries
(Dollar amounts in millions except per share)
Annual Data: 1994 1993* 1992 1991
-------- -------- -------- --------
Net sales $3,039.5 $2,511.3 $2,184.7 $1,702.1
Income 346.9 254.4 176.9 55.9
Income per share 3.15 2.32 1.63 .52
Quarterly Data: 1st 2nd 3rd 4th
-------- ------- ------- -------
Sales By Quarter:
1994 $ 698.0 $ 774.7 $ 818.4 $ 748.4
1995 686.8
Earnings By Quarter:
1994 $ 85.2 $ 81.9 $ 95.1 $ 84.7
1995 54.3
Earnings Per Share by Quarter:
1994 $ .77 $ .75 $ .86 $ .77
1995 .50
_________________
* Does not include cumulative effect of accounting changes.
Louisiana-Pacific Corporation and Subsidiaries
Summary of Production Volumes
(Volume amounts stated in millions unless otherwise
noted and as a percent of normal capacity)
Quarter Ended March 31
----------------------
1995 1994
Inner-Seal/OSB,
square feet 3/8" basis 816 89% 808 101%
Softwood plywood,
square feet 3/8" basis 324 80 402 106
Lumber, board feet 340 56 540 93
Medium density fiberboard,
square feet 3/4" basis 53 94 56 101
Particleboard,
square feet 3/4" basis 90 100 93 106
Hardboard,
square feet 1/8" basis 50 91 54 103
Hardwood veneer,
square feet surface measure 73 116 69 107
Pulp, thousand short tons 134 90 94 62
Chips, thousand BDU's 472 582
Industry Product Price Trends
Louisiana-Pacific Corporation and Subsidiaries
OSB Plywood Lumber Particleboard Pulp
---------- ---------- --------- -------------- ---------
N. Central Southern
7/16" basis Pine 1/2" Framing Bleached
24/16 basis lumber Inland softwood
span CDX composite industrial sulfate
rating 3 ply prices 3/4" basis short ton*
---------- --------- --------- ------------ ---------
Annual Average
1990 131 182 230 199 723
1991 148 191 236 198 519
1992 217 248 287 200 509
1993 236 282 394 258 418
1994 265 302 405 295 515
1994 First Quarter Average
259 277 475 281 411
1994 Fourth Quarter Average
287 362 386 301 635
1995 First Quarter Average
239 305 374 310 703
Weekly Average
April 7 213 298 340 310 748
April 14 208 305 328 308 748
April 21 228 315 337 300 748
_________________
* Discounting sometimes occurs from the published price.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
The following sets forth the current status of certain legal
proceedings:
Certain Environmental Proceedings
The registrant has received a Notice of Violation issued by the
U.S. Environmental Protection Agency, alleging air emissions violations at
the registrant's Dungannon, Virginia, OSB plant. The registrant has also
received a Notice of Violation issued by the state of Michigan, alleging air
emissions violations at the registrant's Newberry, Michigan, OSB plant. The
potential costs to the registrant cannot be estimated at this time because
the registrant's past experiences with notices of violation indicated wide
variation in possible outcomes.
On September 9, 1992, the U.S. Department of Justice filed suit in the
U.S. District Court in Anchorage, Alaska, against the registrant's wholly
owned subsidiary Ketchikan Pulp Company ("KPC"), alleging that the pulp mill
in Ketchikan, Alaska, operated by KPC violated the Clean Air Act and the
terms of KPC's wastewater discharge permit. A federal grand jury
investigation concerning wastewater discharges at KPC's pulp mill was also
convened. In March 1995, KPC entered into agreements with the federal
government to resolve the issues related to the lawsuit and grand jury
investigation. Under the agreements, which are subject to court approval,
KPC has entered guilty pleas to one felony and 13 misdemeanor violations of
the Clean Water Act; KPC will pay civil and criminal penalties totaling
approximately $6 million, of which $1.75 million will be suspended; and KPC
will agree to undertake certain remedial and pollution control related
measures with an estimated cost of up to approximately $20 million. KPC has
agreed to undertake a study of whether a clean-up of Ward Cove, the body of
water adjacent to the pulp mill, is needed. If the study determines that
such clean-up is needed, KPC may be required to spend up to $6 million on
the clean-up as part of the overall $20 million of expenditure. KPC cannot
estimate what portion, if any, of the clean-up amount will be required to be
spent.
On September 13, 1994, the U.S. Environmental Protection Agency filed an
administrative action, alleging that KPC and two other parties violated
provisions of the Clean Air Act related to asbestos. The action seeks to
recover a penalty of $122,800.
The registrant understands that a federal grand jury is investigating
possible violations in connection with the disposal by a contractor of a
transformer containing polychlorinated biphenyls ("PCBs") previously located
at the registrant's former sawmill at Pendleton, Oregon. The registrant
does not know whether it or any of its employees are targets of the
investigation.
In March 1995, the registrant was informed that the U.S. Environmental
Protection Agency has referred a matter involving KPC to the U.S. Department
of Justice for possible civil enforcement. The matter involves allegations
that KPC's Annette Island, Alaska, cant mill violated provisions of the
Clean Air Act relating to the prevention of significant deterioration of air
quality.
Management of the registrant believes that the outcome of the above
matters will not have a materially adverse effect on the consolidated
business, financial condition, liquidity, or results of operations of the
registrant.
OSB Siding Matters
In October 1994, an action was filed against the registrant and other
defendants in the Circuit Court for Lake County, Florida, on behalf of a
purported class of all homeowners in that state whose homes were constructed
using the registrant's OSB siding. The complaint alleges that the siding is
deteriorating prematurely due to latent defects in the material and seeks
damages for alleged breaches of express or implied warranties and for
alleged failure to disclose material defects. The complaint also seeks an
injunction barring the registrant from selling the registrant's OSB siding
as an exterior siding material in the state of Florida. The attorney for
the plaintiffs claims the class may number in excess of 30,000 homeowners
and that the claim for damages may exceed $5,000 per home, resulting in
aggregated claimed damages in excess of $150 million. The registrant
believes it has factual and legal defenses to the complaint.
In April 1995, the Office of the Attorney General of the State of
Washington issued a formal civil investigative demand requiring the
production of evidence relating to alleged unfair or deceptive acts or
practices related to manufacture and sale of the registrant's OSB siding.
In late April 1995, a purported class action naming the registrant as
defendant was instituted in the Superior Court of Washington for King
County. The action seeks to recover damages and obtain other relief on
behalf of a class of persons who own or have purchased or used OSB siding
material manufactured by the registrant based upon alleged unfair business
practices, breach of warranty, misrepresentation, and other theories related
to alleged defects, deterioration, or failure of OSB siding. The complaint
alleges that the registrant's express warranty limiting damages to twice the
cost of the product is inadequate and that actual damages are four to eight
times the original price of the product. The complaint seeks to nullify the
warranty limitation and also to recover treble damages, among other
remedies.
The registrant believes that it is probable that additional OSB siding
products claims will be made against it. Some of these claims will likely
be made in the form of warranty claims, while others will likely be made as
litigation claims. The registrant maintains a reserve for siding claims.
As with all accounting estimates, due to many factors involved in estimating
future claims, significant uncertainty exists in the reliability and
precision of such estimates. There can be no assurance that management's
estimates will not change significantly in the future as additional factors
and circumstances become known, and actual claims are made. The registrant
monitors its estimated exposure to future siding claims and adjusts its
accrual accordingly.
The registrant is continuing to review the nature and extent of any such
liabilities. At the present time, the registrant cannot predict whether or
to what extent these circumstances will result in further civil litigation
or investigation by government authorities, or the potential financial
impact of any such proceedings; however, the resolution of these matters
could have a materially adverse impact on the registrant.
Colorado Grand Jury Proceeding
The registrant has been informed that it and one or more employees at
its Montrose (Olathe), Colorado, OSB plant are the targets of a federal
grand jury investigation concerning alleged tampering with emissions
monitoring equipment, alteration of plant records, and submission of
unrepresentative samples to a certification agency. The registrant began an
internal investigation of the environmental matters in the summer of 1992
and reported its initial findings of irregularities to governmental
authorities in September, 1992. Since the beginning of March 1995,
additional subpoenas have been issued requiring the production of evidence
and testimony relating to alleged fraud in connection with the submission of
unrepresentative OSB product samples to the American Plywood Association
("APA"), an industry product certification agency, by the registrant's
Montrose plant and other OSB plants. The registrant has commenced an
independent investigation under the direction of retired federal judge
Charles B. Renfrew concerning irregularities in sampling and quality
assurance in its OSB operations. The registrant believes it is likely that
it will be indicted with respect to both the environmental and the APA-
related matters.
The registrant is continuing to investigate the nature and extent of any
such activities. At the present time, the registrant cannot predict whether
or to what extent these circumstances will result in further civil
litigation or investigation by government authorities, or the potential
financial impact of any such proceedings; however, the resolution of these
matters could have a materially adverse impact on the registrant. The
registrant has not reserved for the possibility of significant penalties or
civil judgments because it is currently unable to reasonably estimate these
amounts.
Item 6. Exhibits and Reports on Form 8-K.
(a) The exhibits filed as part of this report or incorporated
by reference herein are listed in the accompanying
exhibit index.
(b) Reports on Form 8-K. No reports on Form 8-K were filed
during the quarter ended March 31, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LOUISIANA-PACIFIC CORPORATION
By /s/ WILLIAM L. HEBERT
William L. Hebert
Treasurer
(Principal Financial Officer)
DATED: May 15, 1995
EXHIBIT INDEX
Exhibit Number Description of Exhibit
11 Calculation of Net Income Per Share for the Three
Months Ended March 31, 1995.
27 Financial Data Schedule.
EXHIBIT 11
Louisiana-Pacific Corporation and Subsidiaries
Calculation of Net Income Per Share
For the Three Months Ended March 31, 1995
Number of shares
-----------------------------------
Including Excluding
Common Stock Common Stock
Equivalents Equivalents (1)
------------ ---------------
Weighted average number of shares
of common stock outstanding 116,937,022 116,937,022
Weighted average number of shares
sold to ESOTs subsequent to
January 1, 1994, not allocated
to participants' accounts (2) (1,843,621) (1,843,621)
Weighted average number of shares
of treasury stock held during
the period (6,622,944) (6,622,944)
Common stock equivalents:
Application of the "treasury
stock" method to stock option
and purchase plans 799,746 ---
----------- -----------
Weighted average number of shares
of common stock and common stock
equivalents 109,270,203 108,470,457
=========== ===========
Rounded to 109,270,000 108,470,000
=========== ===========
Net income $54,300,000 $54,300,000
=========== ===========
Net income per share $ .50 $ .50
=========== ===========
_________________
(1) Accounting Principles Board Opinion No. 15, "Earnings Per Share", allows companies to
disregard dilution of less than three percent in the computation of earnings per
share. Therefore, shares used in computing earnings per share for financial reporting
purposes is 108,470,000 shares.
(2) American Institute of Certified Public Accountants Statement of Position No. 93-6,
"Employers' Accounting for Employee Stock Ownership Plans" requires that shares held
by L-P's ESOTs which were acquired by the ESOTs on or after January 1, 1994, which are
not allocated to participant's accounts, are not considered outstanding for purposes
of computing earnings per share. Shares held by the ESOTs which were acquired by the
ESOTs prior to January 1, 1994, continue to be considered outstanding (whether or not
allocated to participant's accounts) for purposes of computing earnings per share.
5
