United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________
FORM 8-K
__________________________________
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: November 6, 2012
Commission File Number 1-7107
__________________________________
LOUISIANA-PACIFIC CORPORATION
(Exact name of registrant as specified in its charter)
__________________________________
DELAWARE | 1-7107 | 93-0609074 | ||
(State or other jurisdiction of incorporation or organization) | Commission File Number | (IRS Employer Identification No.) | ||
414 Union Street, Suite 2000, Nashville, TN 37219
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (615) 986-5600
__________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 | 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 2.02 Results of Operations and Financial Condition
The information in this item and Exhibit 99.1 and Exhibit 99.2, attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On November 6, 2012, Louisiana - Pacific Corporation issued a press release announcing financial results for the quarter and nine months ended September 30, 2012, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), the attached press release discloses continuing earnings before interest expense, taxes, depreciation and amortization (“EBITDA from continuing operations”) which is a non-GAAP financial measure. Additionally, it discloses Adjusted EBITDA from continuing operations which further adjusts EBITDA from continuing operations to exclude stock based compensation expense, (gain) loss on sales or impairment of long lived assets, other operating charges and credits, investment income and depreciation included in equity in loss (earnings) of unconsolidated affiliates. It also discloses adjusted income (loss) from continuing operations which excludes excludes (gain) loss on sale or impairment of long-lived assets, other operating credits and charges, net, loss on early extinguishment of debt and adjusts for a normalized tax rate. EBITDA from continuing operations, Adjusted EBITDA from continuing operations and adjusted loss from continuing operations are not a substitute for the GAAP measure of net income or operating cash flows or other GAAP measures of operating performance or liquidity. A copy of the reconciliation of adjusted loss from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations for the quarter ended September 30, 2012 and 2011 is attacher hereto as Exhibit 99.2 and Exhibit 99.3 and incorporated herein by reference.
We have EBITDA from continuing operations and Adjusted EBITDA from continuing operations in the press release because we use them as important supplemental measures of our performance and believe that similarly-titled measures are frequently used by securities analysts, investors and other interested persons in the evaluation of companies in our industry, some of which present similarly-titled measures when reporting their results. We use EBITDA from continuing operations and Adjusted EBITDA from continuing operations to evaluate our performance as compared to other companies in our industry that have different financing and capital structures and/or tax rates. It should be noted that companies calculate similarly-titled measures differently and, therefore, as presented by us may not be comparable to similarly-titled measures reported by other companies. In addition, EBITDA from continuing operations has material limitations as a performance measure because it excludes interest expense, income tax (benefit) expense and depreciation and amortization which are necessary to operate our business or which we otherwise incurred or experienced in connection with the operation of our business.
We believe that adjusted income (loss) from continuing operations which excludes (gain) loss on sale or impairment of long-lived assets, other operating credits and charges, net, loss on early extinguishment of debt adjusted for a normalized tax rate is a useful measure for evaluating our ability to generate earnings from continuing operations and that providing this measure will allow investors to more readily compare the earnings referred to in the press release to our earnings for past and future periods. We believe that this measure is particularly useful where the amounts of the excluded items are not consistent between the periods presented. It should be noted that other companies may present similarly-titled measures differently and, therefore, as presented by us may not be comparable to similarly-titled measures reported by other companies. In addition, adjusted income (loss) from continuing operations has material limitations as a performance measure because it excludes items that are actually incurred or experienced in connection with the operations of our business.
Item 9.01 Financial Statements, Pro Forma Financial Statements and Exhibits.
Exhibit Number | Description |
99.1 | Press release issued by Louisiana-Pacific Corporation on November 6, 2012, regarding financial results for the quarter and nine months ended September 30, 2012. |
99.2 | Reconciliation of Adjusted operating income from operations and EBITDA from continuing operations and Adjusted EBITDA from continuing operations for the quarter and nine months ended September 30, 2012 and 2011. |
99.3 | Reconciliation of Adjusted operating income from operations for the quarter and nine months ended September 30, 2012 and 2011. |
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 hereunto duly authorized.
LOUISIANA-PACIFIC CORPORATION | ||
By: | /s/ SALLIE B. BAILEY | |
Sallie B. Bailey | ||
Executive Vice President and Chief | ||
Financial Officer | ||
(Principal Financial Officer) | ||
Date: November 6, 2012
Exhibit 99.1 Press release issued by Louisiana-Pacific Corporation on November 6, 2012, regarding quarter and nine months ended September 30, 2012 results.
LP Reports Third Quarter 2012 Results
Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported today results for the third quarter of 2012, which included the following:
• | Total sales for the third quarter of $468 million were higher by 33% percent compared to the year ago quarter. |
• | Income from continuing operations was $31 million ($0.22 per diluted share). |
• | Non-GAAP adjusted income from continuing operations was $29 million ($0.20 per diluted share). |
• | Adjusted EBITDA from continuing operations for the third quarter was $75 million compared to a loss of $3 million in the third quarter of 2011. |
• | Cash and cash equivalents were $491 million as of September 30, 2012. |
"LP is very pleased to report significantly better results as we were able to take advantage of an improving housing market in the quarter,” CEO Curt Stevens said. “With the increasingly favorable news in housing trends, we are optimistic that the market will continue to steadily recover.”
For the quarter ended September 30, 2012, LP reported net sales of $468 million, an increase from $351 million in the third quarter of 2011. For the third quarter, the company reported an operating income of $44 million as compared to a loss of $73 million in the third quarter of 2011. The results for the third quarter of 2011 included an impairment charge on long-lived assets of $65 million.
For the third quarter of 2012, LP reported income from continuing operations of $31 million, or $0.22 per diluted share, as compared to a loss from continuing operations of $59 million, or $0.44 per diluted share for the third quarter of 2011.
ORIENTED STRAND BOARD (OSB) SEGMENT
LP's OSB segment manufactures and distributes OSB structural panel products. LP is currently operating seven facilities and has indefinitely curtailed three other facilities due to market conditions. The OSB segment reported net sales for the third quarter of 2012 of $227 million, an increase from $139 million of net sales in the third quarter of 2011. For the third quarter of 2012,
the OSB segment reported operating income of $49 million compared with a loss of $16 million in the third quarter of 2011. For the third quarter, LP realized an increase of $64 million in adjusted EBITDA from continuing operations for this segment compared to the third quarter of 2011. For the third quarter of 2012 compared to the third quarter of 2011, sales volumes were up 11 percent with sales price increasing by 50 percent. The increase in sales price accounted for approximately a $71 million increase in both operating results and adjusted EBITDA from continuing operations.
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 as well as in the repair and remodeling markets. The Siding segment reported net sales of $134 million in the third quarter of 2012, an increase of 20 percent from $112 million in the year-ago third quarter. For the third quarter of 2012, the Siding segment reported operating income of $20 million compared to $12 million in the year-ago quarter. For the third quarter, LP reported $24 million in adjusted EBITDA from continuing operations for this segment, an increase of $9 million compared to the third quarter of 2011. The increase in OSB sales prices sold in this segment accounted for approximately $4 million increase in both operating results and adjusted EBITDA from continuing operations.
ENGINEERED WOOD PRODUCTS SEGMENT (EWP)
The EWP segment is comprised of I-Joist (IJ), Laminated Veneer Lumber and Laminated Strand Lumber (LVL and LSL). These products are principally used in new construction. EWP sales in the third quarter of 2012 totaled $62 million, an increase from a year ago. Operating losses were $3 million for both the third quarter of 2012 and 2011.
SOUTH AMERICA SEGMENT
The South American segment consists of OSB mills located in Chile and Brazil. South America sales in the third quarter of 2012 totaled $42 million, an increase of 16 percent from $36 million in the year-ago third quarter. For the third quarter of 2012, the South America segment reported operating income of $5 million. For the third quarter, LP reported $8 million in adjusted EBITDA from continuing operations for this segment, an increase compared to the third quarter of 2011.
COMPANY OUTLOOK
“While housing signs look very favorable, we are certainly cognizant of potential headwinds including a slowing global economy, an uncertain political and fiscal environment and slow job creation,” Stevens continued. “Our plan is to do what is necessary to be ready to satisfy increasing demand for our products which emerges within this broader context and respond accordingly.”
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)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net sales | $ | 467.8 | $ | 350.6 | $ | 1,257.1 | $ | 1,044.7 | |||||||
Income (loss) from operations | $ | 43.5 | $ | (72.7 | ) | $ | 60.4 | $ | (114.5 | ) | |||||
Income (loss) from continuing operations before taxes and equity in (income) losses of unconsolidated affiliates | $ | 37.3 | $ | (74.2 | ) | $ | (18.8 | ) | $ | (134.5 | ) | ||||
Non-GAAP Adjusted income (loss) from continuing operations | $ | 29.1 | $ | (26.1 | ) | $ | 23.1 | $ | (68.0 | ) | |||||
Income (loss) from continuing operations | $ | 31.4 | $ | (59.3 | ) | $ | (17.0 | ) | $ | (115.1 | ) | ||||
Net income (loss) attributed to LP | $ | 31.3 | $ | (65.6 | ) | $ | (17.3 | ) | $ | (124.1 | ) | ||||
Net income (loss) per share - basic | $ | 0.23 | $ | (0.49 | ) | $ | (0.13 | ) | $ | (0.94 | ) | ||||
Net income (loss) per share - fully diluted | $ | 0.22 | $ | (0.49 | ) | $ | (0.13 | ) | $ | (0.94 | ) | ||||
Average shares of stock outstanding - basic | 137.1 | 134.5 | 136.9 | 132.4 | |||||||||||
Average shares of stock outstanding - fully diluted | 142.6 | 134.5 | 136.9 | 132.4 | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net sales | $ | 467.8 | $ | 350.6 | $ | 1,257.1 | $ | 1,044.7 | |||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 369.3 | 322.0 | 1,042.5 | 953.3 | |||||||||||
Depreciation and amortization | 18.9 | 19.6 | 55.9 | 61.2 | |||||||||||
Selling and administrative | 30.6 | 26.5 | 92.6 | 82.9 | |||||||||||
Loss on sale or impairment of long-lived assets, net | 4.3 | 65.0 | 4.5 | 73.0 | |||||||||||
Other operating credits and charges, net | 1.2 | (9.8 | ) | 1.2 | (11.2 | ) | |||||||||
Total operating costs and expenses | 424.3 | 423.3 | 1,196.7 | 1,159.2 | |||||||||||
Income (loss) from operations | 43.5 | (72.7 | ) | 60.4 | (114.5 | ) | |||||||||
Non-operating income (expense): | |||||||||||||||
Interest expense, net of capitalized interest | (10.7 | ) | (14.2 | ) | (36.4 | ) | (42.6 | ) | |||||||
Investment income | 4.1 | 16.7 | 11.7 | 24.2 | |||||||||||
Early debt extinguishment | — | — | (52.2 | ) | — | ||||||||||
Other non-operating items | 0.4 | (4.0 | ) | (2.3 | ) | (1.6 | ) | ||||||||
Total non-operating expense | (6.2 | ) | (1.5 | ) | (79.2 | ) | (20.0 | ) | |||||||
Income (loss) from continuing operations before taxes and equity in (income) losses of unconsolidated affiliates | 37.3 | (74.2 | ) | (18.8 | ) | (134.5 | ) | ||||||||
Provision (benefit) for income taxes | 7.9 | (20.9 | ) | (4.4 | ) | (36.1 | ) | ||||||||
Equity in (income) loss of unconsolidated affiliates | (2.0 | ) | 6.0 | 2.6 | 16.7 | ||||||||||
Income (loss) from continuing operations | 31.4 | (59.3 | ) | (17.0 | ) | (115.1 | ) | ||||||||
Loss from discontinued operations before taxes | (0.2 | ) | (10.3 | ) | (0.5 | ) | (14.4 | ) | |||||||
Benefit for income taxes | (0.1 | ) | (4.0 | ) | (0.2 | ) | (5.6 | ) | |||||||
Loss from discontinued operations | (0.1 | ) | (6.3 | ) | (0.3 | ) | (8.8 | ) | |||||||
Net income (loss) | 31.3 | (65.6 | ) | (17.3 | ) | (123.9 | ) | ||||||||
Less: Net income attributed to non-controlling interest | — | — | — | 0.2 | |||||||||||
Income (loss) attributed to Louisiana-Pacific Corporation | $ | 31.3 | $ | (65.6 | ) | $ | (17.3 | ) | $ | (124.1 | ) | ||||
Income (loss) per share of common stock (basic): | |||||||||||||||
Income (loss) from continuing operations | $ | 0.23 | $ | (0.44 | ) | $ | (0.13 | ) | $ | (0.87 | ) | ||||
Loss from discontinued operations | — | (0.05 | ) | — | (0.07 | ) | |||||||||
Net income (loss) per share | $ | 0.23 | $ | (0.49 | ) | $ | (0.13 | ) | $ | (0.94 | ) | ||||
Net income (loss) per share of common stock (diluted): | |||||||||||||||
Income (loss) from continuing operations | $ | 0.22 | $ | (0.44 | ) | $ | (0.13 | ) | $ | (0.87 | ) | ||||
Loss from discontinued operations | — | (0.05 | ) | — | (0.07 | ) | |||||||||
Net income (loss) per share | $ | 0.22 | $ | (0.49 | ) | $ | (0.13 | ) | $ | (0.94 | ) | ||||
Average shares of stock outstanding - basic | 137.1 | 134.5 | 136.9 | 132.4 | |||||||||||
Average shares of stock outstanding - diluted | 142.6 | 134.5 | 136.9 | 132.4 | |||||||||||
Amounts attributed to LP Corporation common shareholders | |||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 31.4 | $ | (59.3 | ) | $ | (17.0 | ) | $ | (115.3 | ) | ||||
Loss from discontinued operations, net of tax | (0.1 | ) | (6.3 | ) | (0.3 | ) | (8.8 | ) | |||||||
$ | 31.3 | $ | (65.6 | ) | $ | (17.3 | ) | $ | (124.1 | ) | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
September 30, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 490.5 | $ | 340.0 | |||
Receivables | 104.6 | 65.1 | |||||
Income tax receivable | 3.6 | 3.5 | |||||
Inventories | 209.3 | 163.6 | |||||
Prepaid expenses and other current assets | 8.2 | 5.7 | |||||
Deferred income taxes | 13.3 | 17.0 | |||||
Current portion of notes receivable from asset sales | 101.4 | 10.0 | |||||
Assets held for sale | 32.5 | 51.9 | |||||
Total current assets | 963.4 | 656.8 | |||||
Timber and timberlands | 40.2 | 45.5 | |||||
Property, plant and equipment, at cost | 2,066.8 | 2,028.1 | |||||
Accumulated depreciation | (1,314.6 | ) | (1,245.9 | ) | |||
Net property, plant and equipment | 752.2 | 782.2 | |||||
Notes receivable from asset sales | 432.2 | 523.5 | |||||
Long-term investments | 1.8 | 0.7 | |||||
Restricted cash | 11.9 | 12.9 | |||||
Investments in and advances to affiliates | 70.4 | 79.1 | |||||
Deferred debt costs | 9.5 | 8.9 | |||||
Other assets | 27.8 | 26.3 | |||||
Long-term deferred tax asset | 4.0 | 4.0 | |||||
Total assets | $ | 2,313.4 | $ | 2,139.9 | |||
LIABILITIES AND EQUITY | |||||||
Current portion of long-term debt | $ | 7.8 | $ | 5.3 | |||
Current portion of limited recourse notes payable | 97.9 | 7.9 | |||||
Accounts payable and accrued liabilities | 165.5 | 122.3 | |||||
Current portion of contingency reserves | 4.0 | 4.0 | |||||
Total current liabilities | 275.2 | 139.5 | |||||
Long-term debt, excluding current portion | 785.4 | 715.9 | |||||
Contingency reserves, excluding current portion | 16.1 | 17.2 | |||||
Other long-term liabilities | 140.7 | 160.4 | |||||
Deferred income taxes | 103.1 | 106.0 | |||||
Stockholders’ equity: | |||||||
Common stock | 150.4 | 149.8 | |||||
Additional paid-in capital | 536.5 | 549.9 | |||||
Retained earnings | 664.5 | 681.8 | |||||
Treasury stock | (256.7 | ) | (274.4 | ) | |||
Accumulated comprehensive loss | (101.8 | ) | (106.2 | ) | |||
Total stockholders’ equity | 992.9 | 1,000.9 | |||||
Total liabilities and stockholders’ equity | $ | 2,313.4 | $ | 2,139.9 | |||
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
Net income (loss) | $ | 31.3 | $ | (65.6 | ) | $ | (17.3 | ) | $ | (123.9 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 18.9 | 19.6 | 55.9 | 61.2 | |||||||||||
(Income) loss from unconsolidated affiliates | (2.0 | ) | 6.0 | 2.6 | 16.7 | ||||||||||
Loss on sale or impairment of long-lived assets | 4.3 | 65.0 | 4.5 | 73.0 | |||||||||||
Other operating credits and charges, net | 1.2 | (9.8 | ) | 1.2 | (11.2 | ) | |||||||||
Realized gain on sale of long-term investments | — | (15.2 | ) | — | (15.2 | ) | |||||||||
Stock-based compensation related to stock plans | 1.8 | 1.6 | 6.4 | 6.4 | |||||||||||
Exchange (gain) loss on remeasurement | 5.7 | (3.8 | ) | 4.8 | (1.1 | ) | |||||||||
Early debt extinguishment | — | — | 52.2 | — | |||||||||||
Cash settlement of contingencies | (0.4 | ) | (0.4 | ) | (1.6 | ) | (1.3 | ) | |||||||
Cash settlements of warranties, net of accruals | (3.0 | ) | 4.9 | (6.9 | ) | 5.2 | |||||||||
Pension expense, net of cash payments | 2.2 | (10.4 | ) | 6.3 | (10.0 | ) | |||||||||
Non-cash interest expense, net | 0.5 | 3.6 | 1.9 | 7.3 | |||||||||||
Other adjustments, net | (1.8 | ) | 0.6 | (0.7 | ) | 4.2 | |||||||||
(Increase) decrease in receivables | (3.3 | ) | 2.5 | (38.2 | ) | (22.2 | ) | ||||||||
(Increase) decrease in income tax receivable | 0.5 | 9.6 | (0.1 | ) | 14.3 | ||||||||||
(Increase) decrease in inventories | (5.6 | ) | 14.6 | (41.6 | ) | (6.0 | ) | ||||||||
(Increase) decrease in prepaid expenses | 0.6 | (0.3 | ) | (2.4 | ) | (3.2 | ) | ||||||||
Increase in accounts payable and accrued liabilities | 7.2 | 3.6 | 26.6 | 1.3 | |||||||||||
Increase (decrease) in deferred income taxes | 7.7 | (21.0 | ) | (4.8 | ) | (29.3 | ) | ||||||||
Net cash provided by (used in) operating activities | 65.8 | 5.1 | 48.8 | (33.8 | ) | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
Property, plant and equipment additions | (9.3 | ) | (5.4 | ) | (16.1 | ) | (13.4 | ) | |||||||
Receipt of proceeds (investments) in joint ventures | 8.8 | (1.5 | ) | 6.6 | (4.6 | ) | |||||||||
Proceeds from sales of assets | — | 0.9 | 9.1 | 1.2 | |||||||||||
Proceeds from sale of investments | — | 19.1 | — | 19.1 | |||||||||||
Decrease in restricted cash under letters of credit/credit facility | — | 0.2 | 1.0 | 16.6 | |||||||||||
Net cash provided by (used in) investing activities | (0.5 | ) | 13.3 | 0.6 | 18.9 | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
Borrowings of long-term debt | — | 10.0 | 350.0 | 10.0 | |||||||||||
Repayment of long-term debt | (0.2 | ) | (0.1 | ) | (242.3 | ) | (0.2 | ) | |||||||
Short term borrowings, net of repayments | — | (4.5 | ) | — | — | ||||||||||
Sale of common stock under equity plans | 0.8 | — | 1.2 | — | |||||||||||
Redemption of non-controlling interest | — | — | — | (24.0 | ) | ||||||||||
Payment of debt issuance fees | — | — | (6.3 | ) | (1.0 | ) | |||||||||
Net cash provided by (used in) financing activities | 0.6 | 5.4 | 102.6 | (15.2 | ) | ||||||||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | (2.5 | ) | 2.3 | (1.5 | ) | 0.9 | |||||||||
Net increase (decrease) in cash and cash equivalents | 63.4 | 26.1 | 150.5 | (29.2 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 427.1 | 334.0 | 340.0 | 389.3 | |||||||||||
Cash and cash equivalents at end of period | $ | 490.5 | $ | 360.1 | $ | 490.5 | $ | 360.1 | |||||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Dollar amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||||
OSB | $ | 226.6 | $ | 138.8 | $ | 571.0 | $ | 411.4 | |||||||
Siding | 134.1 | 112.0 | 384.2 | 336.6 | |||||||||||
Engineered Wood Products | 61.5 | 54.9 | 161.8 | 156.9 | |||||||||||
South America | 42.0 | 36.3 | 127.1 | 111.1 | |||||||||||
Other | 9.1 | 9.5 | 29.9 | 30.4 | |||||||||||
Intersegment sales | (5.5 | ) | (0.9 | ) | (16.9 | ) | (1.7 | ) | |||||||
$ | 467.8 | $ | 350.6 | $ | 1,257.1 | $ | 1,044.7 | ||||||||
Operating profit (loss): | |||||||||||||||
OSB | $ | 49.3 | $ | (16.0 | ) | $ | 66.0 | $ | (48.0 | ) | |||||
Siding | 20.3 | 11.8 | 56.4 | 35.9 | |||||||||||
Engineered Wood Products | (3.0 | ) | (3.2 | ) | (9.3 | ) | (11.9 | ) | |||||||
South America | 4.5 | 2.3 | 11.2 | 10.1 | |||||||||||
Other | (2.0 | ) | (3.2 | ) | (4.5 | ) | (5.9 | ) | |||||||
Other operating credits and charges, net | (1.2 | ) | 9.8 | (1.2 | ) | 11.2 | |||||||||
Loss on sale or impairment of long-lived assets | (4.3 | ) | (65.0 | ) | (4.5 | ) | (73.0 | ) | |||||||
General corporate and other expenses, net | (18.1 | ) | (15.2 | ) | (56.3 | ) | (49.6 | ) | |||||||
Foreign currency gains (losses) | 0.4 | (4.0 | ) | (2.3 | ) | (1.6 | ) | ||||||||
Early debt extinguishment | — | — | (52.2 | ) | — | ||||||||||
Investment income | 4.1 | 16.7 | 11.7 | 24.2 | |||||||||||
Interest expense, net of capitalized interest | (10.7 | ) | (14.2 | ) | (36.4 | ) | (42.6 | ) | |||||||
Income (loss) from continuing operations before taxes | 39.3 | (80.2 | ) | (21.4 | ) | (151.2 | ) | ||||||||
Provision (benefit) for income taxes | 7.9 | (20.9 | ) | (4.4 | ) | (36.1 | ) | ||||||||
Income (loss) from continuing operations | $ | 31.4 | $ | (59.3 | ) | $ | (17.0 | ) | $ | (115.1 | ) | ||||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SUMMARY OF PRODUCTION VOLUMES (1)
The following table sets forth production volumes for the quarter and nine months ended September 30, 2012 and 2011.
Quarter Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Oriented strand board, million square feet 3/8" basis(1) | 903 | 804 | 2,625 | 2,375 | |||||||
Oriented strand board, million square feet 3/8" basis (produced by wood-based siding mills) | 51 | 53 | 146 | 140 | |||||||
Wood-based siding, million square feet 3/8" basis | 229 | 192 | 704 | 613 | |||||||
Engineered I-Joist, million lineal feet(1) | 18 | 15 | 50 | 43 | |||||||
Laminated veneer lumber (LVL), thousand cubic feet(1) and laminated strand lumber (LSL), thousand cubic feet | 1,752 | 1,640 | 5,163 | 4,995 | |||||||
(1) Includes volumes produced by joint venture operations or under sales arrangements and sold to LP.
Exhibit 99.2 Reconciliation of EBITDA from continuing operations and Adjusted EBITDA from continuing operations for the quarter and nine months ended September 30, 2012 and 2011.
Three Months Ended September 30, 2012 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Sales | $ | 226.6 | $ | 134.1 | $ | 61.5 | $ | 42.0 | $ | 9.1 | $ | (5.5 | ) | $ | 467.8 | ||||||||||||
Depreciation and amortization | 8.2 | 3.9 | 3.1 | 3.3 | 0.1 | 0.3 | 18.9 | ||||||||||||||||||||
Cost of sales and selling and administrative | 172.4 | 109.9 | 61.2 | 34.2 | 9.9 | 12.3 | 399.9 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 4.3 | 4.3 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||||
Total operating costs | 180.6 | 113.8 | 64.3 | 37.5 | 10.0 | 18.1 | 424.3 | ||||||||||||||||||||
Income (loss) from operations | 46.0 | 20.3 | (2.8 | ) | 4.5 | (0.9 | ) | (23.6 | ) | 43.5 | |||||||||||||||||
Total non-operating expense | — | — | — | — | — | (6.2 | ) | (6.2 | ) | ||||||||||||||||||
Income (loss) before income taxes and equity in (income) loss of unconsolidated affiliates | 46.0 | 20.3 | (2.8 | ) | 4.5 | (0.9 | ) | (29.8 | ) | 37.3 | |||||||||||||||||
Provision for income taxes | — | — | — | — | — | 7.9 | 7.9 | ||||||||||||||||||||
Equity in (income) loss of unconsolidated affiliates | (3.3 | ) | — | 0.2 | — | 1.1 | — | (2.0 | ) | ||||||||||||||||||
Income (loss) from continuing operations | $ | 49.3 | $ | 20.3 | $ | (3.0 | ) | $ | 4.5 | $ | (2.0 | ) | $ | (37.7 | ) | $ | 31.4 | ||||||||||
Reconciliation of loss from continuing operations to adjusted income from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 49.3 | $ | 20.3 | $ | (3.0 | ) | $ | 4.5 | $ | (2.0 | ) | $ | (37.7 | ) | $ | 31.4 | ||||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||||
Loss on sales of and impairments of long-lived assets | — | — | — | — | — | 4.3 | 4.3 | ||||||||||||||||||||
Less: provision for income taxes as reported | — | — | — | — | — | 7.9 | 7.9 | ||||||||||||||||||||
"Normalized tax" | — | — | — | — | — | (15.7 | ) | (15.7 | ) | ||||||||||||||||||
Adjusted operating income (loss) from continuing operations | $ | 49.3 | $ | 20.3 | $ | (3.0 | ) | $ | 4.5 | $ | (2.0 | ) | $ | (40.0 | ) | $ | 29.1 | ||||||||||
Reconciliation of income (loss) from continuing operations to adjusted EBITDA from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 49.3 | $ | 20.3 | $ | (3.0 | ) | $ | 4.5 | $ | (2.0 | ) | $ | (37.7 | ) | $ | 31.4 | ||||||||||
Provision for income taxes | — | — | — | — | — | 7.9 | 7.9 | ||||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 10.7 | 10.7 | ||||||||||||||||||||
Depreciation and amortization | 8.2 | 3.9 | 3.1 | 3.3 | 0.1 | 0.3 | 18.9 | ||||||||||||||||||||
EBITDA from continuing operations | 57.5 | 24.2 | 0.1 | 7.8 | (1.9 | ) | (18.8 | ) | 68.9 | ||||||||||||||||||
Stock based compensation expense | 0.2 | 0.1 | 0.1 | — | — | 1.4 | 1.8 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 4.3 | 4.3 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (4.1 | ) | (4.1 | ) | ||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||||
Depreciation included in equity in (income) loss of unconsolidated affiliates | 2.1 | — | 0.1 | — | 0.9 | — | 3.1 | ||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 59.8 | $ | 24.3 | $ | 0.3 | $ | 7.8 | $ | (1.0 | ) | $ | (16.0 | ) | $ | 75.2 | |||||||||||
Three Months Ended September 30, 2011 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Sales | $ | 138.8 | $ | 112.0 | $ | 54.9 | $ | 36.3 | $ | 9.5 | $ | (0.9 | ) | $ | 350.6 | ||||||||||||
Depreciation and amortization | 9.1 | 3.9 | 2.9 | 3.0 | 0.1 | 0.6 | 19.6 | ||||||||||||||||||||
Cost of sales and selling and administrative | 141.7 | 96.3 | 55.5 | 31.0 | 10.3 | 13.7 | 348.5 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 65.0 | 65.0 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | (9.8 | ) | (9.8 | ) | ||||||||||||||||||
Total operating costs | 150.8 | 100.2 | 58.4 | 34.0 | 10.4 | 69.5 | 423.3 | ||||||||||||||||||||
Income (loss) from operations | (12.0 | ) | 11.8 | (3.5 | ) | 2.3 | (0.9 | ) | (70.4 | ) | (72.7 | ) | |||||||||||||||
Total non-operating expense | — | — | — | — | — | (1.5 | ) | (1.5 | ) | ||||||||||||||||||
Income (loss) before income taxes and equity in (income) loss of unconsolidated affiliates | (12.0 | ) | 11.8 | (3.5 | ) | 2.3 | (0.9 | ) | (71.9 | ) | (74.2 | ) | |||||||||||||||
Benefit for income taxes | — | — | — | — | — | (20.9 | ) | (20.9 | ) | ||||||||||||||||||
Equity in (income) loss of unconsolidated affiliates | 4.0 | — | (0.3 | ) | — | 2.3 | — | 6.0 | |||||||||||||||||||
Income (loss) from continuing operations | $ | (16.0 | ) | $ | 11.8 | $ | (3.2 | ) | $ | 2.3 | $ | (3.2 | ) | $ | (51.0 | ) | $ | (59.3 | ) | ||||||||
Reconciliation of income (loss) from continuing operations to adjusted income (loss) from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (16.0 | ) | $ | 11.8 | $ | (3.2 | ) | $ | 2.3 | $ | (3.2 | ) | $ | (51.0 | ) | $ | (59.3 | ) | ||||||||
Other operating credits and charges, net | — | — | — | — | — | (9.8 | ) | (9.8 | ) | ||||||||||||||||||
Loss on sales of and impairments of long-lived assets | — | — | — | — | — | 65.0 | 65.0 | ||||||||||||||||||||
Realized gains from the sale of investments | — | — | — | — | — | (15.2 | ) | (15.2 | ) | ||||||||||||||||||
Less: benefit for income taxes as reported | — | — | — | — | — | (20.9 | ) | (20.9 | ) | ||||||||||||||||||
"Normalized tax" | — | — | — | — | — | 14.1 | 14.1 | ||||||||||||||||||||
Adjusted operating income (loss) from continuing operations | $ | (16.0 | ) | $ | 11.8 | $ | (3.2 | ) | $ | 2.3 | $ | (3.2 | ) | $ | (17.8 | ) | $ | (26.1 | ) | ||||||||
Reconciliation of income (loss) from continuing operations to adjusted EBITDA from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (16.0 | ) | $ | 11.8 | $ | (3.2 | ) | $ | 2.3 | $ | (3.2 | ) | $ | (51.0 | ) | $ | (59.3 | ) | ||||||||
Benefit for income taxes | — | — | — | — | — | (20.9 | ) | (20.9 | ) | ||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 14.2 | 14.2 | ||||||||||||||||||||
Depreciation and amortization | 9.1 | 3.9 | 2.9 | 3.0 | 0.1 | 0.6 | 19.6 | ||||||||||||||||||||
EBITDA from continuing operations | (6.9 | ) | 15.7 | (0.3 | ) | 5.3 | (3.1 | ) | (57.1 | ) | (46.4 | ) | |||||||||||||||
Stock based compensation expense | 0.2 | 0.1 | 0.1 | — | — | 1.1 | 1.5 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 65.0 | 65.0 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (16.7 | ) | (16.7 | ) | ||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | (9.8 | ) | (9.8 | ) | ||||||||||||||||||
Depreciation included in equity in (income) loss of unconsolidated affiliates | 2.1 | — | 0.1 | — | 1.1 | — | 3.3 | ||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | (4.6 | ) | $ | 15.8 | $ | (0.1 | ) | $ | 5.3 | $ | (2.0 | ) | $ | (17.5 | ) | $ | (3.1 | ) | ||||||||
Nine Months Ended September 30, 2012 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Sales | $ | 571.0 | $ | 384.2 | $ | 161.8 | $ | 127.1 | $ | 29.9 | $ | (16.9 | ) | $ | 1,257.1 | ||||||||||||
Depreciation and amortization | 25.2 | 12.0 | 8.3 | 8.9 | 0.5 | 1.0 | 55.9 | ||||||||||||||||||||
Cost of sales and selling and administrative | 481.0 | 315.8 | 162.6 | 107.0 | 30.3 | 38.4 | 1,135.1 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 4.5 | 4.5 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||||
Total operating costs | 506.2 | 327.8 | 170.9 | 115.9 | 30.8 | 45.1 | 1,196.7 | ||||||||||||||||||||
Income (loss) from operations | 64.8 | 56.4 | (9.1 | ) | 11.2 | (0.9 | ) | (62.0 | ) | 60.4 | |||||||||||||||||
Total non-operating expense | — | — | — | — | — | (79.2 | ) | (79.2 | ) | ||||||||||||||||||
Income (loss) before income taxes and equity in earnings of unconsolidated affiliates | 64.8 | 56.4 | (9.1 | ) | 11.2 | (0.9 | ) | (141.2 | ) | (18.8 | ) | ||||||||||||||||
Benefit for income taxes | — | — | — | — | — | (4.4 | ) | (4.4 | ) | ||||||||||||||||||
Equity in (income) loss of unconsolidated affiliates | (1.2 | ) | — | 0.2 | — | 3.6 | — | 2.6 | |||||||||||||||||||
Income (loss) from continuing operations | $ | 66.0 | $ | 56.4 | $ | (9.3 | ) | $ | 11.2 | $ | (4.5 | ) | $ | (136.8 | ) | $ | (17.0 | ) | |||||||||
Reconciliation of income (loss) from continuing operations to adjusted income (loss) from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 66.0 | $ | 56.4 | $ | (9.3 | ) | $ | 11.2 | $ | (4.5 | ) | $ | (136.8 | ) | $ | (17.0 | ) | |||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||||
Loss on sales of and impairments of long-lived assets | — | — | — | — | — | 4.5 | 4.5 | ||||||||||||||||||||
Reversal of interest expense | — | — | — | — | — | (1.0 | ) | (1.0 | ) | ||||||||||||||||||
Early debt extinguishment | — | — | — | — | — | 52.2 | 52.2 | ||||||||||||||||||||
Less: benefit for income taxes as reported | — | — | — | — | — | (4.4 | ) | (4.4 | ) | ||||||||||||||||||
"Normalized tax" | — | — | — | — | — | (12.4 | ) | (12.4 | ) | ||||||||||||||||||
Adjusted operating income (loss) from continuing operations | $ | 66.0 | $ | 56.4 | $ | (9.3 | ) | $ | 11.2 | $ | (4.5 | ) | $ | (96.7 | ) | $ | 23.1 | ||||||||||
Reconciliation of income (loss) from continuing operations to adjusted EBITDA from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 66.0 | $ | 56.4 | $ | (9.3 | ) | $ | 11.2 | $ | (4.5 | ) | $ | (136.8 | ) | $ | (17.0 | ) | |||||||||
Benefit for income taxes | — | — | — | — | — | (4.4 | ) | (4.4 | ) | ||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 36.4 | 36.4 | ||||||||||||||||||||
Depreciation and amortization | 25.2 | 12.0 | 8.3 | 8.9 | 0.5 | 1.0 | 55.9 | ||||||||||||||||||||
EBITDA from continuing operations | 91.2 | 68.4 | (1.0 | ) | 20.1 | (4.0 | ) | (103.8 | ) | 70.9 | |||||||||||||||||
Stock based compensation expense | 0.7 | 0.4 | 0.4 | — | — | 4.9 | 6.4 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 4.5 | 4.5 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (11.7 | ) | (11.7 | ) | ||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||||
Early debt extinguishment | — | — | — | — | — | 52.2 | 52.2 | ||||||||||||||||||||
Depreciation included in equity in (income) loss of unconsolidated affiliates | 6.1 | — | 0.4 | — | 2.8 | — | 9.3 | ||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 98.0 | $ | 68.8 | $ | (0.2 | ) | $ | 20.1 | $ | (1.2 | ) | $ | (52.7 | ) | $ | 132.8 | ||||||||||
Nine Months Ended September 30, 2011 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Sales | $ | 411.4 | $ | 336.6 | $ | 156.9 | $ | 111.1 | $ | 30.4 | $ | (1.7 | ) | $ | 1,044.7 | ||||||||||||
Depreciation and amortization | 27.8 | 12.2 | 10.2 | 8.9 | 0.6 | 1.5 | 61.2 | ||||||||||||||||||||
Cost of sales and selling and administrative | 420.3 | 288.5 | 158.6 | 92.1 | 30.3 | 46.4 | 1,036.2 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 73.0 | 73.0 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | (11.2 | ) | (11.2 | ) | ||||||||||||||||||
Total operating costs | 448.1 | 300.7 | 168.8 | 101.0 | 30.9 | 109.7 | 1,159.2 | ||||||||||||||||||||
Income (loss) from operations | (36.7 | ) | 35.9 | (11.9 | ) | 10.1 | (0.5 | ) | (111.4 | ) | (114.5 | ) | |||||||||||||||
Total non-operating expense | — | — | — | — | — | (20.0 | ) | (20.0 | ) | ||||||||||||||||||
Income (loss) before income taxes and equity in loss of unconsolidated affiliates | (36.7 | ) | 35.9 | (11.9 | ) | 10.1 | (0.5 | ) | (131.4 | ) | (134.5 | ) | |||||||||||||||
Benefit for income taxes | — | — | — | — | — | (36.1 | ) | (36.1 | ) | ||||||||||||||||||
Equity in loss of unconsolidated affiliates | 11.3 | — | — | — | 5.4 | — | 16.7 | ||||||||||||||||||||
Income (loss) from continuing operations | $ | (48.0 | ) | $ | 35.9 | $ | (11.9 | ) | $ | 10.1 | $ | (5.9 | ) | $ | (95.3 | ) | $ | (115.1 | ) | ||||||||
Reconciliation of income (loss) from continuing operations to adjusted income from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (48.0 | ) | $ | 35.9 | $ | (11.9 | ) | $ | 10.1 | $ | (5.9 | ) | $ | (95.3 | ) | $ | (115.1 | ) | ||||||||
Other operating credits and charges, net | — | — | — | — | — | (11.2 | ) | (11.2 | ) | ||||||||||||||||||
Loss on sales of and impairments of long-lived assets | — | — | — | — | — | 73.0 | 73.0 | ||||||||||||||||||||
Realized gains from the sale of investments | — | — | — | — | — | (15.2 | ) | (15.2 | ) | ||||||||||||||||||
Less: benefit for income taxes as reported | — | — | — | — | — | (36.1 | ) | (36.1 | ) | ||||||||||||||||||
"Normalized tax" | — | — | — | — | — | 36.6 | 36.6 | ||||||||||||||||||||
Adjusted operating income (loss) from continuing operations | $ | (48.0 | ) | $ | 35.9 | $ | (11.9 | ) | $ | 10.1 | $ | (5.9 | ) | $ | (48.2 | ) | $ | (68.0 | ) | ||||||||
Reconciliation of income (loss) from continuing operations to adjusted EBITDA from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (48.0 | ) | $ | 35.9 | $ | (11.9 | ) | $ | 10.1 | $ | (5.9 | ) | $ | (95.3 | ) | $ | (115.1 | ) | ||||||||
Benefit for income taxes | — | — | — | — | — | (36.1 | ) | (36.1 | ) | ||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 42.6 | 42.6 | ||||||||||||||||||||
Depreciation and amortization | 27.8 | 12.2 | 10.2 | 8.9 | 0.6 | 1.5 | 61.2 | ||||||||||||||||||||
EBITDA from continuing operations | (20.2 | ) | 48.1 | (1.7 | ) | 19.0 | (5.3 | ) | (87.3 | ) | (47.4 | ) | |||||||||||||||
Stock based compensation expense | 0.6 | 0.4 | 0.3 | — | — | 5.1 | 6.4 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 73.0 | 73.0 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (24.2 | ) | (24.2 | ) | ||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | (11.2 | ) | (11.2 | ) | ||||||||||||||||||
Depreciation included in equity in (income) loss of unconsolidated affiliates | 6.2 | — | 0.4 | — | 3.5 | — | 10.1 | ||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | (13.4 | ) | $ | 48.5 | $ | (1.0 | ) | $ | 19.0 | $ | (1.8 | ) | $ | (44.6 | ) | $ | 6.7 | |||||||||
Exhibit 99.3 Reconciliation of Adjusted income from continuing operations
As reported Quarter Ended September 30, 2012 | As Adjusted Quarter Ended September 30, 2012 | As reported Quarter Ended June 30, 2012 | As adjusted Quarter Ended June 30, 2012 | As reported Quarter Ended September 30, 2011 | As adjusted Quarter Ended September 30, 2011 | |||||||||||||||||||||
Adjustments | Adjustments | Adjustments | ||||||||||||||||||||||||
Net sales | $ | 467.8 | $ | 467.8 | $ | 427.8 | $ | 427.8 | $ | 350.6 | $ | 350.6 | ||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||
Cost of sales | 369.3 | 369.3 | 359.9 | 359.9 | 322.0 | 322.0 | ||||||||||||||||||||
Depreciation and amortization | 18.9 | 18.9 | 17.9 | 17.9 | 19.6 | 19.6 | ||||||||||||||||||||
Selling and administrative | 30.6 | 30.6 | 30.7 | 30.7 | 26.5 | 26.5 | ||||||||||||||||||||
Loss on sale or impairment of long-lived assets, net | 4.3 | (4.3 | ) | — | 0.1 | (0.1 | ) | — | 65.0 | (65.0 | ) | — | ||||||||||||||
Other operating credits and charges, net | 1.2 | (1.2 | ) | — | 0.2 | (0.2 | ) | — | (9.8 | ) | 9.8 | — | ||||||||||||||
Total operating costs and expenses | 424.3 | 418.8 | 408.8 | 408.5 | 423.3 | 368.1 | ||||||||||||||||||||
Income (loss) from operations | 43.5 | 49.0 | 19.0 | 19.3 | (72.7 | ) | (17.5 | ) | ||||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (10.7 | ) | (10.7 | ) | (13.1 | ) | — | (13.1 | ) | (14.2 | ) | (14.2 | ) | |||||||||||||
Investment income | 4.1 | 4.1 | 3.4 | 3.4 | 16.7 | (15.2 | ) | 1.5 | ||||||||||||||||||
Early debt extinguishment | — | — | — | (52.2 | ) | 52.2 | — | — | — | |||||||||||||||||
Other non-operating items | 0.4 | 0.4 | (2.6 | ) | (2.6 | ) | (4.0 | ) | (4.0 | ) | ||||||||||||||||
Total non-operating expense | (6.2 | ) | (6.2 | ) | (64.5 | ) | (12.3 | ) | (1.5 | ) | (16.7 | ) | ||||||||||||||
Income (loss) from continuing operations before taxes and equity in income (losses) of unconsolidated affiliates | 37.3 | 42.8 | (45.5 | ) | 7.0 | (74.2 | ) | (34.2 | ) | |||||||||||||||||
Provision (benefit) for income taxes | 7.9 | (7.9 | ) | — | (11.1 | ) | 11.1 | — | (20.9 | ) | 20.9 | — | ||||||||||||||
"Normalized" tax rate @ 35% | — | 15.7 | 15.7 | — | 1.4 | 1.4 | — | (14.1 | ) | (14.1 | ) | |||||||||||||||
Equity in (income) loss of unconsolidated affiliates | (2.0 | ) | (2.0 | ) | 2.8 | 2.8 | 6.0 | 6.0 | ||||||||||||||||||
Income (loss) from continuing operations | 31.4 | 29.1 | (37.2 | ) | 2.8 | (59.3 | ) | (26.1 | ) | |||||||||||||||||
Loss from discontinued operations before taxes | (0.2 | ) | (0.2 | ) | (0.1 | ) | (0.1 | ) | (10.3 | ) | (10.3 | ) | ||||||||||||||
Benefit for income taxes | (0.1 | ) | (0.1 | ) | — | — | (4.0 | ) | (4.0 | ) | ||||||||||||||||
Loss from discontinued operations | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (6.3 | ) | (6.3 | ) | ||||||||||||||
Net income (loss) | 31.3 | 29.0 | (37.3 | ) | 2.7 | (65.6 | ) | (32.4 | ) | |||||||||||||||||
Less: Net income attributed to non-controlling interest | — | — | — | — | — | — | ||||||||||||||||||||
Income (loss) attributed to Louisiana-Pacific Corporation | $ | 31.3 | $ | 29.0 | $ | (37.3 | ) | $ | 2.7 | $ | (65.6 | ) | $ | (32.4 | ) | |||||||||||
Income (loss) per share of common stock (basic): | ||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.23 | $ | 0.21 | $ | (0.27 | ) | $ | 0.02 | $ | (0.44 | ) | $ | (0.19 | ) | |||||||||||
Loss from discontinued operations | — | — | — | — | (0.05 | ) | (0.05 | ) | ||||||||||||||||||
Net income (loss) per share | $ | 0.23 | $ | 0.21 | $ | (0.27 | ) | $ | 0.02 | $ | (0.49 | ) | $ | (0.24 | ) | |||||||||||
Income (loss) per share of common stock (diluted): | ||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.22 | $ | 0.20 | $ | (0.27 | ) | $ | 0.02 | $ | (0.44 | ) | $ | (0.19 | ) | |||||||||||
Loss from discontinued operations | — | — | — | — | (0.05 | ) | (0.05 | ) | ||||||||||||||||||
Net income (loss) per share | $ | 0.22 | $ | 0.20 | $ | (0.27 | ) | $ | 0.02 | $ | (0.49 | ) | $ | (0.24 | ) | |||||||||||
Average shares of stock outstanding - basic | 137.1 | 137.1 | 137.0 | 137.0 | 134.5 | 134.5 | ||||||||||||||||||||
Average shares of stock outstanding - diluted | 142.6 | 142.6 | 137.0 | 137.0 | 134.5 | 134.5 | ||||||||||||||||||||
Amounts attributed to LP Corporation common shareholders | ||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 31.4 | $ | 29.1 | $ | (37.2 | ) | $ | 2.8 | $ | (59.3 | ) | $ | (26.1 | ) | |||||||||||
Loss from discontinued operations, net of tax | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (6.3 | ) | (6.3 | ) | ||||||||||||||
$ | 31.3 | $ | 29.0 | $ | (37.3 | ) | $ | 2.7 | $ | (65.6 | ) | $ | (32.4 | ) | ||||||||||||
As reported Nine Months Ended September 30, 2012 | As Adjusted Nine Months Ended September 30, 2012 | As reported Nine Months Ended September 30, 2011 | As adjusted Nine Months Ended September 30, 2011 | ||||||||||||||
Adjustments | Adjustments | ||||||||||||||||
Net sales | $ | 1,257.1 | $ | 1,257.1 | $ | 1,044.7 | $ | 1,044.7 | |||||||||
Operating costs and expenses: | |||||||||||||||||
Cost of sales | 1,042.5 | 1,042.5 | 953.3 | 953.3 | |||||||||||||
Depreciation and amortization | 55.9 | 55.9 | 61.2 | 61.2 | |||||||||||||
Selling and administrative | 92.6 | 92.6 | 82.9 | 82.9 | |||||||||||||
Loss on sale or impairment of long-lived assets, net | 4.5 | (4.5 | ) | — | 73.0 | (73.0 | ) | — | |||||||||
Other operating credits and charges, net | 1.2 | (1.2 | ) | — | (11.2 | ) | 11.2 | — | |||||||||
Total operating costs and expenses | 1,196.7 | 1,191.0 | 1,159.2 | 1,097.4 | |||||||||||||
Income (loss) from operations | 60.4 | 66.1 | (114.5 | ) | (52.7 | ) | |||||||||||
Non-operating income (expense): | |||||||||||||||||
Interest expense, net of capitalized interest | (36.4 | ) | (1.0 | ) | (37.4 | ) | (42.6 | ) | (42.6 | ) | |||||||
Investment income | 11.7 | 11.7 | 24.2 | (15.2 | ) | 9.0 | |||||||||||
Early debt extinguishment | (52.2 | ) | 52.2 | — | — | — | |||||||||||
Other non-operating items | (2.3 | ) | (2.3 | ) | (1.6 | ) | (1.6 | ) | |||||||||
Total non-operating expense | (79.2 | ) | (28.0 | ) | (20.0 | ) | (35.2 | ) | |||||||||
Income (loss )from continuing operations before taxes and equity in losses of unconsolidated affiliates | (18.8 | ) | 38.1 | (134.5 | ) | (87.9 | ) | ||||||||||
Benefit for income taxes | (4.4 | ) | 4.4 | — | (36.1 | ) | 36.1 | — | |||||||||
"Normalized" tax rate @ 35% | — | 12.4 | 12.4 | — | (36.6 | ) | (36.6 | ) | |||||||||
Equity in loss of unconsolidated affiliates | 2.6 | 2.6 | 16.7 | 16.7 | |||||||||||||
Income (loss) from continuing operations | (17.0 | ) | 23.1 | (115.1 | ) | (68.0 | ) | ||||||||||
Loss from discontinued operations before taxes | (0.5 | ) | (0.5 | ) | (14.4 | ) | (14.4 | ) | |||||||||
Benefit for income taxes | (0.2 | ) | (0.2 | ) | (5.6 | ) | (5.6 | ) | |||||||||
Loss from discontinued operations | (0.3 | ) | (0.3 | ) | (8.8 | ) | (8.8 | ) | |||||||||
Net income (loss) | (17.3 | ) | 22.8 | (123.9 | ) | (76.8 | ) | ||||||||||
Less: Net income attributed to non-controlling interest | — | — | 0.2 | 0.2 | |||||||||||||
Income (loss) attributed to Louisiana-Pacific Corporation | $ | (17.3 | ) | $ | 22.8 | $ | (124.1 | ) | $ | (77.0 | ) | ||||||
Income (loss) per share of common stock (basic and diluted): | |||||||||||||||||
Income (loss) from continuing operations | $ | (0.13 | ) | $ | 0.17 | $ | (0.87 | ) | $ | (0.51 | ) | ||||||
Loss from discontinued operations | — | — | (0.07 | ) | (0.07 | ) | |||||||||||
Net income (loss) per share | $ | (0.13 | ) | $ | 0.17 | $ | (0.94 | ) | $ | (0.58 | ) | ||||||
Average shares of stock outstanding - basic | 136.9 | 136.9 | 132.4 | 132.4 | |||||||||||||
Average shares of stock outstanding - diluted | 136.9 | 136.9 | 132.4 | 132.4 | |||||||||||||
Amounts attributed to LP Corporation common shareholders | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (17.0 | ) | $ | 23.1 | $ | (115.3 | ) | $ | (68.2 | ) | ||||||
Loss from discontinued operations, net of tax | (0.3 | ) | (0.3 | ) | (8.8 | ) | (8.8 | ) | |||||||||
$ | (17.3 | ) | 22.8 | $ | (124.1 | ) | $ | (77.0 | ) | ||||||||