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: May 7, 2013
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 May 7, 2013, Louisiana - Pacific Corporation issued a press release announcing financial results for the quarter ended March 31, 2013, 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 (gain) loss on sale or impairment of long-lived assets, other operating credits and charges, net, 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 March 31, 2013 and 2012 is attached 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, 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 May 8, 2013, regarding financial results for the quarter ended March 31, 2013. |
99.2 | Reconciliation of Adjusted operating income from operations and EBITDA from continuing operations and Adjusted EBITDA from continuing operations for the quarter ended March 31, 2013 and 2012. |
99.3 | Reconciliation of Adjusted operating income from operations for the quarter ended March 31, 2013 and 2012. |
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: May 7, 2013
LP Reports First Quarter 2013 Results
Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported today results for the first quarter of 2013, which included the following:
• | Total sales for the first quarter of $538 million were higher by 49 percent compared to the year ago quarter. |
• | Income from continuing operations was $65 million ($0.45 per diluted share). |
• | Non-GAAP adjusted income from continuing operations was $59 million ($0.41 per diluted share). |
• | Adjusted EBITDA from continuing operations for the first quarter was $121 million compared to $21 million in the first quarter of 2012. |
• | Cash and cash equivalents were $561 million as of March 31, 2013. |
"LP’s strong financial results were driven by a broad recovery of building activity across all regions of the U.S., which led to improved demand for our products and increased OSB pricing." CEO Curt Stevens said. "In addition, our South America segment continued to perform well"
For the quarter ended March 31, 2013, LP reported net sales of $538 million, an increase from $362 million in the first quarter of 2012. For the first quarter of 2013, LP reported income from continuing operations of $65 million, or $0.45 per diluted share, as compared to a loss from continuing operations of $11 million, or $0.08 per diluted share for the first quarter of 2012.
ORIENTED STRAND BOARD (OSB) SEGMENT
LP's OSB segment manufactures and distributes OSB structural panel products. The OSB segment reported net sales for the first quarter of 2013 of $287 million, an increase from $149 million of net sales in the first quarter of 2012. For the first quarter of 2013, the OSB segment reported operating income of $98 million compared to break-even results in the first quarter of 2012. For the first quarter, sales volumes were higher by 12 percent and sales prices increased by 82 percent compared to the same period in 2012. The increase in sales price accounted for approximately $124 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 first quarter of 2013, an increase of 18 percent from $113 million in the year-ago first quarter. For the first quarter of 2013, the Siding segment reported operating income of $21 million compared to $17 million in the year-ago quarter. For the first quarter, LP reported $25 million in adjusted EBITDA from continuing operations for this segment, an increase of $4 million compared to the first quarter of 2012. The increase in OSB sales prices sold in this segment accounted for approximately $6 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 first quarter of 2013 totaled $63 million, an increase from $49 million reported a year ago. Operating losses were $4 million for the first quarter of 2013 compared to $3 million in the first quarter of 2012.
SOUTH AMERICA SEGMENT
The South American segment consists of OSB mills located in Chile and Brazil. South America sales in the first quarter of 2013 totaled $45 million, an increase of 6 percent from $42 million in the year-ago first quarter. For the first quarter of 2013, the South America segment reported operating income of $6 million compared to $3 million reported a year ago. For the first quarter, LP reported $9 million in adjusted EBITDA from continuing operations for this segment, an increase of $3 million compared to the first quarter of 2012.
COMPANY OUTLOOK
“I am confident that all of the work we have done to prepare for the housing upturn will allow us to meet customer demand,” concluded Stevens.
LP is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its retail, wholesale, homebuilding and industrial customers. Visit LP's web site at www.lpcorp.com for additional information on the company as well as reconciliation of non-GAAP results.
###
FORWARD LOOKING STATEMENTS
This news release contains statements concerning Louisiana-Pacific Corporation's (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts, market demand for the company's products, and prices for structural products; the availability, cost and other terms of capital; the efficiency and consequences of operations improvement initiatives and cash conservation measures; the effect of forestry, land use, environmental and other governmental regulations; the ability to obtain regulatory approvals; and the risk of losses from fires, floods and other natural disasters. These and other factors that could cause or contribute to actual results differing materially from those contemplated by such forward-looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
FINANCIAL AND QUARTERLY DATA
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended March 31, | |||||||
2013 | 2012 | ||||||
Net sales | $ | 537.5 | $ | 361.5 | |||
Income (loss) from operations | $ | 89.2 | $ | (2.1 | ) | ||
Income (loss) from continuing operations before taxes and equity in (income) loss of unconsolidated affiliates | $ | 81.4 | $ | (10.6 | ) | ||
Non-GAAP adjusted income (loss) from continuing operations | $ | 58.6 | $ | (8.8 | ) | ||
Income (loss) from continuing operations | $ | 65.4 | $ | (11.2 | ) | ||
Net income (loss) | $ | 65.3 | $ | (11.3 | ) | ||
Net income (loss) per share - basic | $ | 0.47 | $ | (0.08 | ) | ||
Net income (loss) per share - diluted | $ | 0.45 | $ | (0.08 | ) | ||
Average shares of stock outstanding - basic | 138.4 | 136.6 | |||||
Average shares of stock outstanding - diluted | 144.4 | 136.6 | |||||
CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended March 31, | |||||||
2013 | 2012 | ||||||
Net sales | $ | 537.5 | $ | 361.5 | |||
Operating costs and expenses: | |||||||
Cost of sales | 392.6 | 313.3 | |||||
Depreciation and amortization | 18.7 | 19.1 | |||||
Selling and administrative | 35.4 | 31.3 | |||||
Loss on sale or impairment of long-lived assets, net | — | 0.1 | |||||
Other operating credits and charges, net | 1.6 | (0.2 | ) | ||||
Total operating costs and expenses | 448.3 | 363.6 | |||||
Income (loss) from operations | 89.2 | (2.1 | ) | ||||
Non-operating income (expense): | |||||||
Interest expense, net of capitalized interest | (10.6 | ) | (12.6 | ) | |||
Investment income | 3.5 | 4.2 | |||||
Other non-operating items | (0.7 | ) | (0.1 | ) | |||
Total non-operating expense | (7.8 | ) | (8.5 | ) | |||
Income (loss) from continuing operations before taxes and equity in (income) loss of unconsolidated affiliates | 81.4 | (10.6 | ) | ||||
Provision (benefit) for income taxes | 23.2 | (1.2 | ) | ||||
Equity in (income) loss of unconsolidated affiliates | (7.2 | ) | 1.8 | ||||
Income (loss) from continuing operations | 65.4 | (11.2 | ) | ||||
Loss from discontinued operations before taxes | (0.1 | ) | (0.2 | ) | |||
Benefit for income taxes | — | (0.1 | ) | ||||
Loss from discontinued operations | (0.1 | ) | (0.1 | ) | |||
Net income (loss) | $ | 65.3 | $ | (11.3 | ) | ||
Income (loss) per share of common stock (basic): | |||||||
Income (loss) from continuing operations | $ | 0.47 | $ | (0.08 | ) | ||
Loss from discontinued operations | — | — | |||||
Net income (loss) per share | $ | 0.47 | $ | (0.08 | ) | ||
Net income (loss) per share of common stock (diluted): | |||||||
Income (loss) from continuing operations | $ | 0.45 | $ | (0.08 | ) | ||
Loss from discontinued operations | — | — | |||||
Net income (loss) per share | $ | 0.45 | $ | (0.08 | ) | ||
Average shares of stock outstanding - basic | 138.4 | 136.6 | |||||
Average shares of stock outstanding - diluted | 144.4 | 136.6 | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
March 31, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 560.5 | $ | 560.9 | |||
Receivables | 135.8 | 82.7 | |||||
Inventories | 255.1 | 209.8 | |||||
Other current assets | 4.5 | 6.0 | |||||
Deferred income taxes | 63.3 | 12.3 | |||||
Current portion of notes receivable from asset sales | 91.4 | 91.4 | |||||
Assets held for sale | 32.5 | 32.5 | |||||
Total current assets | 1,143.1 | 995.6 | |||||
Timber and timberlands | 39.5 | 40.1 | |||||
Property, plant and equipment, at cost | 2,073.3 | 2,061.6 | |||||
Accumulated depreciation | (1,327.3 | ) | (1,310.8 | ) | |||
Net property, plant and equipment | 746.0 | 750.8 | |||||
Notes receivable from asset sales | 432.2 | 432.2 | |||||
Long-term investments | 2.5 | 2.0 | |||||
Restricted cash | 10.5 | 12.0 | |||||
Investments in and advances to affiliates | 73.5 | 68.6 | |||||
Deferred debt costs | 8.8 | 9.2 | |||||
Other assets | 16.0 | 15.5 | |||||
Long-term deferred tax asset | — | 5.0 | |||||
Total assets | $ | 2,472.1 | $ | 2,331.0 | |||
LIABILITIES AND EQUITY | |||||||
Current portion of long-term debt | $ | 7.9 | $ | 7.8 | |||
Current portion of limited recourse notes payable | 90.0 | 90.0 | |||||
Accounts payable and accrued liabilities | 154.6 | 139.5 | |||||
Current portion of contingency reserves | 2.0 | 2.0 | |||||
Total current liabilities | 254.5 | 239.3 | |||||
Long-term debt, excluding current portion | 782.2 | 782.7 | |||||
Contingency reserves, excluding current portion | 12.6 | 12.8 | |||||
Other long-term liabilities | 166.6 | 168.8 | |||||
Deferred income taxes | 163.3 | 93.6 | |||||
Stockholders’ equity: | |||||||
Common stock | 150.4 | 150.4 | |||||
Additional paid-in capital | 503.8 | 533.6 | |||||
Retained earnings | 775.9 | 710.6 | |||||
Treasury stock | (232.9 | ) | (252.9 | ) | |||
Accumulated comprehensive loss | (104.3 | ) | (107.9 | ) | |||
Total stockholders’ equity | 1,092.9 | 1,033.8 | |||||
Total liabilities and stockholders’ equity | $ | 2,472.1 | $ | 2,331.0 | |||
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Quarter Ended March 31, | |||||||
2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 65.3 | $ | (11.3 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 18.7 | 19.1 | |||||
(Income) loss from unconsolidated affiliates | (7.2 | ) | 1.8 | ||||
Loss on sale or impairment of long-lived assets | — | 0.1 | |||||
Other operating credits and charges, net | 1.6 | (0.2 | ) | ||||
Stock-based compensation related to stock plans | 2.1 | 2.7 | |||||
Exchange (gain) loss on remeasurement | (0.3 | ) | 0.3 | ||||
Cash settlement of contingencies | (0.1 | ) | (0.6 | ) | |||
Cash settlements of warranties, net of accruals | (2.0 | ) | (2.4 | ) | |||
Pension expense, net of cash payments | 1.5 | 1.6 | |||||
Non-cash interest expense, net | 0.4 | 0.6 | |||||
Other adjustments, net | 0.5 | (0.1 | ) | ||||
Increase in receivables | (52.4 | ) | (40.5 | ) | |||
Increase in inventories | (48.6 | ) | (45.8 | ) | |||
Decrease in other current assets | 1.4 | 1.9 | |||||
Increase in accounts payable and accrued liabilities | 12.1 | 9.7 | |||||
Increase (decrease) in deferred income taxes | 23.8 | (1.3 | ) | ||||
Net cash provided by (used in) operating activities | 16.8 | (64.4 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Property, plant and equipment additions | (13.2 | ) | (2.6 | ) | |||
Investments in and advances to joint ventures | 6.8 | (3.0 | ) | ||||
Proceeds from sales of assets | — | 8.9 | |||||
Decrease in restricted cash under letters of credit/credit facility | 1.5 | 0.9 | |||||
Net cash provided by (used in) investing activities | (4.9 | ) | 4.2 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repayment of long-term debt | (1.0 | ) | — | ||||
Taxes paid related to net share settlement of equity awards | (11.8 | ) | — | ||||
Other, net | 0.1 | — | |||||
Net cash used in financing activities | (12.7 | ) | — | ||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 0.4 | 0.7 | |||||
Net decrease in cash and cash equivalents | (0.4 | ) | (59.5 | ) | |||
Cash and cash equivalents at beginning of period | 560.9 | 340.0 | |||||
Cash and cash equivalents at end of period | $ | 560.5 | $ | 280.5 | |||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter Ended March 31, | |||||||
Dollar amounts in millions | 2013 | 2012 | |||||
Net sales: | |||||||
OSB | $ | 286.7 | $ | 149.0 | |||
Siding | 133.8 | 113.1 | |||||
Engineered Wood Products | 63.4 | 48.6 | |||||
South America | 45.1 | 42.4 | |||||
Other | 9.1 | 10.0 | |||||
Intersegment sales | (0.6 | ) | (1.6 | ) | |||
$ | 537.5 | $ | 361.5 | ||||
Operating profit (loss): | |||||||
OSB | $ | 98.1 | $ | (0.3 | ) | ||
Siding | 20.7 | 16.8 | |||||
Engineered Wood Products | (3.5 | ) | (2.8 | ) | |||
South America | 6.2 | 3.1 | |||||
Other | (0.9 | ) | (0.7 | ) | |||
Other operating credits and charges, net | (1.6 | ) | 0.2 | ||||
Loss on sale or impairment of long-lived assets | — | (0.1 | ) | ||||
General corporate and other expenses, net | (22.6 | ) | (20.1 | ) | |||
Foreign currency losses | (0.7 | ) | (0.1 | ) | |||
Investment income | 3.5 | 4.2 | |||||
Interest expense, net of capitalized interest | (10.6 | ) | (12.6 | ) | |||
Income (loss) from continuing operations before taxes | 88.6 | (12.4 | ) | ||||
Provision (benefit) for income taxes | 23.2 | (1.2 | ) | ||||
Income (loss) from continuing operations | $ | 65.4 | $ | (11.2 | ) | ||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SUMMARY OF PRODUCTION VOLUMES (1)
The following table sets forth production volumes for the quarter ended March 31, 2013 and 2012.
Quarter Ended | |||||
March 31, | |||||
2013 | 2012 | ||||
Oriented strand board, million square feet 3/8" basis(1) | 891 | 799 | |||
Oriented strand board, million square feet 3/8" basis (produced by wood-based siding mills) | 38 | 45 | |||
Wood-based siding, million square feet 3/8" basis | 251 | 240 | |||
Engineered I-Joist, million lineal feet(1) | 19 | 14 | |||
Laminated veneer lumber (LVL), thousand cubic feet(1) and laminated strand lumber (LSL), thousand cubic feet | 1,901 | 1,689 | |||
(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 ended March 31, 2013 and 2012.
Three Months Ended March 31, 2013 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Sales | $ | 286.7 | $ | 133.8 | $ | 63.4 | $ | 45.1 | $ | 9.1 | $ | (0.6 | ) | $ | 537.5 | ||||||||||||
Depreciation and amortization | 8.4 | 3.9 | 3.3 | 2.6 | 0.1 | 0.4 | 18.7 | ||||||||||||||||||||
Cost of sales and selling and administrative | 188.2 | 109.2 | 63.4 | 36.3 | 9.3 | 21.6 | 428.0 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.6 | 1.6 | ||||||||||||||||||||
Total operating costs | 196.6 | 113.1 | 66.7 | 38.9 | 9.4 | 23.6 | 448.3 | ||||||||||||||||||||
Income (loss) from operations | 90.1 | 20.7 | (3.3 | ) | 6.2 | (0.3 | ) | (24.2 | ) | 89.2 | |||||||||||||||||
Total non-operating expense | — | — | — | — | — | (7.8 | ) | (7.8 | ) | ||||||||||||||||||
Income (loss) before income taxes and equity in (income) loss of unconsolidated affiliates | 90.1 | 20.7 | (3.3 | ) | 6.2 | (0.3 | ) | (32.0 | ) | 81.4 | |||||||||||||||||
Provision for income taxes | — | — | — | — | — | 23.2 | 23.2 | ||||||||||||||||||||
Equity in (income) loss of unconsolidated affiliates | (8.0 | ) | — | 0.2 | — | 0.6 | — | (7.2 | ) | ||||||||||||||||||
Income (loss) from continuing operations | $ | 98.1 | $ | 20.7 | $ | (3.5 | ) | $ | 6.2 | $ | (0.9 | ) | $ | (55.2 | ) | $ | 65.4 | ||||||||||
Reconciliation of income (loss) from continuing operations to adjusted EBITDA from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 98.1 | $ | 20.7 | $ | (3.5 | ) | $ | 6.2 | $ | (0.9 | ) | $ | (55.2 | ) | $ | 65.4 | ||||||||||
Provision for income taxes | — | — | — | — | — | 23.2 | 23.2 | ||||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 10.6 | 10.6 | ||||||||||||||||||||
Depreciation and amortization | 8.4 | 3.9 | 3.3 | 2.6 | 0.1 | 0.4 | 18.7 | ||||||||||||||||||||
EBITDA from continuing operations | 106.5 | 24.6 | (0.2 | ) | 8.8 | (0.8 | ) | (21.0 | ) | 117.9 | |||||||||||||||||
Stock based compensation expense | 0.2 | 0.1 | 0.1 | — | — | 1.7 | 2.1 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (3.5 | ) | (3.5 | ) | ||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 1.6 | 1.6 | ||||||||||||||||||||
Depreciation included in equity in (income) loss of unconsolidated affiliates | 2.0 | — | — | — | 0.8 | — | 2.8 | ||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 108.7 | $ | 24.7 | $ | (0.1 | ) | $ | 8.8 | $ | — | $ | (21.2 | ) | $ | 120.9 | |||||||||||
Three Months Ended March 31, 2012 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Sales | $ | 149.0 | $ | 113.1 | $ | 48.6 | $ | 42.4 | $ | 10.0 | $ | (1.6 | ) | $ | 361.5 | ||||||||||||
Depreciation and amortization | 8.7 | 4.2 | 2.8 | 2.9 | 0.2 | 0.3 | 19.1 | ||||||||||||||||||||
Cost of sales and selling and administrative | 139.4 | 92.1 | 48.6 | 36.4 | 9.9 | 18.2 | 344.6 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | (0.2 | ) | (0.2 | ) | ||||||||||||||||||
Total operating costs | 148.1 | 96.3 | 51.4 | 39.3 | 10.1 | 18.4 | 363.6 | ||||||||||||||||||||
Income (loss) from operations | 0.9 | 16.8 | (2.8 | ) | 3.1 | (0.1 | ) | (20.0 | ) | (2.1 | ) | ||||||||||||||||
Total non-operating expense | — | — | — | — | — | (8.5 | ) | (8.5 | ) | ||||||||||||||||||
Income (loss) before income taxes and equity in loss of unconsolidated affiliates | 0.9 | 16.8 | (2.8 | ) | 3.1 | (0.1 | ) | (28.5 | ) | (10.6 | ) | ||||||||||||||||
Benefit for income taxes | — | — | — | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||||||||
Equity in loss of unconsolidated affiliates | 1.2 | — | — | — | 0.6 | — | 1.8 | ||||||||||||||||||||
Income (loss) from continuing operations | $ | (0.3 | ) | $ | 16.8 | $ | (2.8 | ) | $ | 3.1 | $ | (0.7 | ) | $ | (27.3 | ) | $ | (11.2 | ) | ||||||||
Reconciliation of income (loss) from continuing operations to adjusted EBITDA from continuing operations | |||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (0.3 | ) | $ | 16.8 | $ | (2.8 | ) | $ | 3.1 | $ | (0.7 | ) | $ | (27.3 | ) | $ | (11.2 | ) | ||||||||
Benefit for income taxes | — | — | — | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 12.6 | 12.6 | ||||||||||||||||||||
Depreciation and amortization | 8.7 | 4.2 | 2.8 | 2.9 | 0.2 | 0.3 | 19.1 | ||||||||||||||||||||
EBITDA from continuing operations | 8.4 | 21.0 | — | 6.0 | (0.5 | ) | (15.6 | ) | 19.3 | ||||||||||||||||||
Stock based compensation expense | 0.2 | 0.1 | 0.2 | — | — | 2.2 | 2.7 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (4.2 | ) | (4.2 | ) | ||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | (0.2 | ) | (0.2 | ) | ||||||||||||||||||
Depreciation included in equity in loss of unconsolidated affiliates | 2.0 | — | 0.1 | — | 1.0 | — | 3.1 | ||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 10.6 | $ | 21.1 | $ | 0.3 | $ | 6.0 | $ | 0.5 | $ | (17.7 | ) | $ | 20.8 | ||||||||||||
Exhibit 99.3 Reconciliation of Adjusted income from continuing operations
As reported Quarter Ended March 31, 2013 | As adjusted Quarter Ended March 31, 2013 | As reported Quarter Ended December 31, 2012 | As adjusted Quarter Ended December 31, 2012 | As reported Quarter Ended March 31, 2012 | As adjusted Quarter Ended March 31, 2012 | |||||||||||||||||||||
Adjustments | Adjustments | Adjustments | ||||||||||||||||||||||||
Net sales | $ | 537.5 | $ | 537.5 | $ | 458.7 | $ | 458.7 | $ | 361.5 | $ | 361.5 | ||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||
Cost of sales | 392.6 | 392.6 | 360.6 | 360.6 | 313.3 | 313.3 | ||||||||||||||||||||
Depreciation and amortization | 18.7 | 18.7 | 18.0 | 18.0 | 19.1 | 19.1 | ||||||||||||||||||||
Selling and administrative | 35.4 | 35.4 | 36.8 | 36.8 | 31.3 | 31.3 | ||||||||||||||||||||
Loss on sale or impairment of long-lived assets, net | — | — | — | 0.4 | (0.4 | ) | — | 0.1 | (0.1 | ) | — | |||||||||||||||
Other operating credits and charges, net | 1.6 | (1.6 | ) | — | (4.1 | ) | 4.1 | — | (0.2 | ) | 0.2 | — | ||||||||||||||
Total operating costs and expenses | 448.3 | 446.7 | 411.7 | 415.4 | 363.6 | 363.7 | ||||||||||||||||||||
Income (loss) from operations | 89.2 | 90.8 | 47.0 | 43.3 | (2.1 | ) | (2.2 | ) | ||||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (10.6 | ) | (10.6 | ) | (12.9 | ) | 2.7 | (10.2 | ) | (12.6 | ) | (1.0 | ) | (13.6 | ) | |||||||||||
Investment income | 3.5 | 3.5 | 3.1 | 3.1 | 4.2 | 4.2 | ||||||||||||||||||||
Other non-operating items | (0.7 | ) | (0.7 | ) | 19.6 | (20.0 | ) | (0.4 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||
Total non-operating income (expense) | (7.8 | ) | (7.8 | ) | 9.8 | (7.5 | ) | (8.5 | ) | (9.5 | ) | |||||||||||||||
Income (loss) from continuing operations before taxes and equity in income (loss) of unconsolidated affiliates | 81.4 | 83.0 | 56.8 | 35.8 | (10.6 | ) | (11.7 | ) | ||||||||||||||||||
Provision (benefit) for income taxes | 23.2 | (23.2 | ) | — | 12.0 | (12.0 | ) | — | (1.2 | ) | 1.2 | — | ||||||||||||||
"Normalized" tax rate @ 35% | — | 31.6 | 31.6 | — | 14.0 | 14.0 | — | (4.7 | ) | (4.7 | ) | |||||||||||||||
Equity in (income) loss of unconsolidated affiliates | (7.2 | ) | (7.2 | ) | (4.3 | ) | (4.3 | ) | 1.8 | 1.8 | ||||||||||||||||
Income (loss) from continuing operations | 65.4 | 58.6 | 49.1 | 26.1 | (11.2 | ) | (8.8 | ) | ||||||||||||||||||
Loss from discontinued operations before taxes | (0.1 | ) | (0.1 | ) | (3.8 | ) | (3.8 | ) | (0.2 | ) | (0.2 | ) | ||||||||||||||
Benefit for income taxes | — | — | (0.8 | ) | (0.8 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Loss from discontinued operations | (0.1 | ) | (0.1 | ) | (3.0 | ) | (3.0 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||
Net income (loss) | $ | 65.3 | $ | 58.5 | $ | 46.1 | $ | 23.1 | $ | (11.3 | ) | $ | (8.9 | ) | ||||||||||||
Income (loss) per share of common stock (basic): | ||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.47 | $ | 0.42 | $ | 0.35 | $ | 0.19 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
Loss from discontinued operations | — | — | (0.02 | ) | (0.02 | ) | — | — | ||||||||||||||||||
Net income (loss) per share | $ | 0.47 | $ | 0.42 | $ | 0.33 | $ | 0.17 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
Income (loss) per share of common stock (diluted): | ||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.45 | $ | 0.41 | $ | 0.34 | $ | 0.18 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
Loss from discontinued operations | — | — | (0.02 | ) | (0.02 | ) | — | — | ||||||||||||||||||
Net income (loss) per share | $ | 0.45 | $ | 0.41 | $ | 0.32 | $ | 0.16 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
Average shares of stock outstanding - basic | 138.4 | 138.4 | 138.6 | 138.6 | 136.6 | 136.6 | ||||||||||||||||||||
Average shares of stock outstanding - diluted | 144.4 | 144.4 | 143.3 | 143.3 | 136.6 | 136.6 | ||||||||||||||||||||