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 5, 2017
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):
å | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
å | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
å | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
å | 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, Exhibit 99.2 and Exhibit 99.3, 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 5, 2017, Louisiana - Pacific Corporation (LP) issued a press release announcing financial results for the quarter ended March 31, 2017, a copy of which is attached hereto as Exhibit 99.1 and incorporated 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”) which is a non-GAAP financial measure. Additionally, it discloses Adjusted EBITDA which further adjusts EBITDA to exclude stock-based compensation expense, (gain) loss on sale or impairment of long lived assets, other operating credits and charges and investment income. It also discloses Adjusted income from continuing operations which excludes (gain) loss on sale or impairment of long-lived assets, other operating credits and charges, net, interest outside of normal operations, early debt extinguishment and adjusts for a normalized tax rate. EBITDA, Adjusted EBITDA and Adjusted income 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 income from continuing operations, EBITDA and Adjusted EBITDA for the quarter ended March 31, 2017 and 2016 is attached hereto as Exhibit 99.2 and Exhibit 99.3 and incorporated herein by reference.
We have EBITDA and Adjusted EBITDA 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 and Adjusted EBITDA 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 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 from continuing operations, which excludes (gain) loss on sale or impairment of long-lived assets, other operating credits and charges, net, interest outside of normal operations, and early debt extinguishment, adjusted for a normalized tax rate is a useful measure for evaluating our ability to generate earnings 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 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 5, 2017, regarding financial results for the quarter ended March 31, 2017. |
99.2 | Reconciliation of EBITDA and Adjusted EBITDA for the quarter ended March 31, 2017 and 2016. |
99.3 | Reconciliation of Adjusted income from continuing operations for the quarter ended March 31, 2017 and 2016 and for the quarter ended December 31, 2016. |
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 5, 2017
LP Reports First Quarter 2017 Results
Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported results today for the first quarter of 2017, which included the following:
• | Sales for the first quarter of $611 million were higher by 21 percent compared to the year ago quarter. |
• | Net income was $55 million ($0.38 per diluted share). |
• | Non-GAAP adjusted income from operations was $48 million ($0.33 per diluted share). |
• | Adjusted EBITDA for the first quarter was $112 million compared to $52 million in the first quarter of 2016. |
• | Cash and cash equivalents were $650 million as of March 31, 2017. |
"LP had an outstanding first quarter led by higher OSB prices and a 16% volume increase in Siding,” said Curt Stevens, CEO. “South America had solid results and EWP returned to profitability."
FIRST QUARTER RESULTS
For the first quarter of 2017, LP reported net sales of $611 million, up from $505 million in the same quarter of 2016. LP reported net income of $55 million, or $0.38 per diluted share, as compared to $10 million, or $0.07 per diluted share for the first quarter of 2016. Adjusted EBITDA for the first quarter of 2017 was $112 million compared to $52 million in the first quarter of 2016.
ORIENTED STRAND BOARD (OSB) SEGMENT
LP's OSB segment manufactures and distributes OSB structural panel products. The OSB segment reported net sales of $268 million, a $51 million increase from $217 million of net sales in the first quarter of 2016. For the first quarter of 2017, the OSB segment reported operating income of $60 million compared to $15 million in the first quarter of 2016. The OSB segment's adjusted EBITDA increased by $45 million compared to the first quarter of 2016. For the first quarter of 2017, sales volumes were flat with the same quarter of 2016 and sales prices increased by 25 percent. The increase in selling price favorably impacted operating results and adjusted EBITDA by approximately $54 million for the quarter as compared to the first quarter of 2016.
SIDING SEGMENT
LP's Siding segment consists of SmartSide siding as well as LP's prefinished CanExel siding line and a minor amount of OSB. These products are used in new construction, repair and remodeling and non-residential markets. The Siding segment reported net sales of $214 million in the first quarter of 2017, an increase of $33 million from $181 million in the year-ago first quarter. For
the first quarter of 2017, the Siding segment reported operating income of $40 million compared to $27 million in the year-ago quarter. The Siding segment reported $49 million in adjusted EBITDA, an increase of $14 million compared to the first quarter of 2016. The increase in OSB sales prices sold in this segment accounted for approximately $3 million of the increase in both operating results and adjusted EBITDA.
ENGINEERED WOOD PRODUCTS SEGMENT (EWP)
The EWP segment is comprised of I-Joist (IJ), Laminated Veneer Lumber and Laminated Strand Lumber (LVL and LSL). EWP reported net sales of $82 million in the first quarter of 2017, up 14 percent from the year-ago quarter. Operating income increased to $1 million for the first quarter of 2017 compared to a $3 million loss in the first quarter of 2016. For the first quarter, the EWP segment showed an increase of $4 million in adjusted EBITDA as compared to the same quarter in 2016.
SOUTH AMERICA SEGMENT
The South American segment consists of facilities in Chile and Brazil. The segment reported net sales in the first quarter of 2017 of $38 million, up $7 million from $31 million in the first quarter of 2016. Operating income and adjusted EBITDA remained flat at $5 million and $7 million for the first quarter of 2017 compared to the first quarter of 2016.
COMPANY OUTLOOK
“With OSB prices continuing to rise so far this quarter, continued siding growth, several new product launches and relatively flat raw material pricing, I’m optimistic that we will have solid results again this quarter,” continued Stevens. “Housing and building activity was on forecast for the first quarter and all indications are that this will continue into the near future.”
Louisiana-Pacific Corporation is a leading manufacturer of quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction. From manufacturing facilities in the U.S., Canada, Chile and Brazil, LP products are sold to builders and homeowners through building materials distributors and dealers and retail home centers. Founded in 1973, LP is headquartered in Nashville, Tennessee and traded on the New York Stock Exchange under LPX. 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, | |||||||
2017 | 2016 | ||||||
Net sales | $ | 610.9 | $ | 504.6 | |||
Income from operations | $ | 72.7 | $ | 18.9 | |||
Income before taxes and equity in income of unconsolidated affiliates | $ | 69.4 | $ | 13.2 | |||
Non-GAAP adjusted income | $ | 48.4 | $ | 9.6 | |||
Net income | $ | 55.0 | $ | 10.3 | |||
Net income per share - diluted | $ | 0.38 | $ | 0.07 | |||
Weighted average shares of common stock outstanding - basic | 144.2 | 142.9 | |||||
Weighted average shares of common stock outstanding - diluted | 145.9 | 145.2 | |||||
CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended March 31, | |||||||
2017 | 2016 | ||||||
Net sales | $ | 610.9 | $ | 504.6 | |||
Operating costs and expenses: | |||||||
Cost of sales | 455.0 | 415.5 | |||||
Depreciation and amortization | 30.6 | 27.9 | |||||
Selling and administrative | 48.6 | 42.3 | |||||
Loss on sale or impairment of long-lived assets, net | 0.6 | — | |||||
Other operating credits and charges, net | 3.4 | — | |||||
Total operating costs and expenses | 538.2 | 485.7 | |||||
Income from operations | 72.7 | 18.9 | |||||
Non-operating income (expense): | |||||||
Interest expense, net of capitalized interest | (5.0 | ) | (8.0 | ) | |||
Investment income | 2.0 | 1.8 | |||||
Other non-operating items | (0.3 | ) | 0.5 | ||||
Total non-operating income (expense) | (3.3 | ) | (5.7 | ) | |||
Income before taxes and equity in income of unconsolidated affiliates | 69.4 | 13.2 | |||||
Provision for income taxes | 15.5 | 4.4 | |||||
Equity in income of unconsolidated affiliates | (1.1 | ) | (1.5 | ) | |||
Net income | $ | 55.0 | $ | 10.3 | |||
Net income per share of common stock: | |||||||
Net income per share - basic | $ | 0.38 | $ | 0.07 | |||
Net income per share - diluted | $ | 0.38 | $ | 0.07 | |||
Weighted average shares of stock outstanding - basic | 144.2 | 142.9 | |||||
Weighted average shares of stock outstanding - diluted | 145.9 | 145.2 | |||||
CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 649.5 | $ | 659.3 | |||
Receivables, net of allowance for doubtful accounts of $1.0 million at March 31, 2017 and December 31, 2016 | 149.1 | 108.3 | |||||
Inventories | 260.0 | 234.6 | |||||
Prepaid expenses and other current assets | 7.3 | 6.1 | |||||
Assets held for sale | 8.1 | 8.2 | |||||
Total current assets | 1,074.0 | 1,016.5 | |||||
Timber and timberlands | 52.4 | 53.5 | |||||
Property, plant and equipment | 2,426.4 | 2,410.8 | |||||
Accumulated depreciation | (1,549.5 | ) | (1,527.6 | ) | |||
Property, plant and equipment, net | 876.9 | 883.2 | |||||
Goodwill | 9.7 | 9.7 | |||||
Notes receivable from asset sales | 22.2 | 22.2 | |||||
Investments in and advances to affiliates | 6.8 | 6.2 | |||||
Restricted cash | 13.1 | 13.2 | |||||
Other assets | 23.4 | 22.4 | |||||
Long-term deferred tax asset | 1.7 | 4.3 | |||||
Total assets | $ | 2,080.2 | $ | 2,031.2 | |||
LIABILITIES AND EQUITY | |||||||
Current portion of long-term debt | $ | 1.6 | $ | 2.6 | |||
Accounts payable and accrued liabilities | 210.5 | 222.8 | |||||
Current portion of contingency reserves | 3.4 | 3.4 | |||||
Total current liabilities | 215.5 | 228.8 | |||||
Long-term debt, excluding current portion | 374.6 | 374.4 | |||||
Deferred income taxes | 28.5 | 27.7 | |||||
Contingency reserves, excluding current portion | 12.5 | 12.7 | |||||
Other long-term liabilities | 195.0 | 191.9 | |||||
Stockholders’ equity: | |||||||
Common stock | 153.4 | 153.4 | |||||
Additional paid-in capital | 469.0 | 478.2 | |||||
Retained earnings | 945.3 | 890.3 | |||||
Treasury stock | (180.4 | ) | (189.0 | ) | |||
Accumulated comprehensive loss | (133.2 | ) | (137.2 | ) | |||
Total stockholders’ equity | 1,254.1 | 1,195.7 | |||||
Total liabilities and stockholders’ equity | $ | 2,080.2 | $ | 2,031.2 | |||
CONSOLIDATED CASH FLOW STATEMENT
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Quarter Ended March 31, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 55.0 | $ | 10.3 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 30.6 | 27.9 | |||||
Equity in income of unconsolidated affiliates, including dividends | (0.6 | ) | 0.5 | ||||
Loss on sale or impairment of long-lived assets, net | 0.6 | — | |||||
Other operating credits and charges, net | 3.4 | — | |||||
Stock-based compensation related to stock plans | 4.1 | 3.0 | |||||
Exchange loss on remeasurement | 0.2 | 0.1 | |||||
Cash settlements of warranties, net of accruals | (3.2 | ) | (3.5 | ) | |||
Pension expense, net of contributions | 1.4 | 0.4 | |||||
Non-cash interest expense, net | 0.1 | 0.4 | |||||
Other adjustments, net | 0.3 | (0.3 | ) | ||||
Changes in assets and liabilities: | |||||||
Increase in receivables | (39.7 | ) | (47.8 | ) | |||
Increase in inventories | (24.8 | ) | (26.9 | ) | |||
(Increase) decrease in prepaid expenses | (0.6 | ) | 1.1 | ||||
Increase (decrease) in accounts payable and accrued liabilities | (19.9 | ) | 26.0 | ||||
Increase in income taxes | 13.9 | 3.9 | |||||
Net cash provided by (used in) operating activities | 20.8 | (4.9 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Property, plant and equipment additions | (26.1 | ) | (26.3 | ) | |||
Other financing activities | 0.1 | 0.1 | |||||
Net cash used in investing activities | (26.0 | ) | (26.2 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repayment of long-term debt | (1.2 | ) | (1.1 | ) | |||
Sale of common stock | 0.4 | 0.1 | |||||
Taxes paid related to net share settlement of equity awards | (4.7 | ) | (0.9 | ) | |||
Net cash used in financing activities | (5.5 | ) | (1.9 | ) | |||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 0.9 | 2.5 | |||||
Net decrease in cash and cash equivalents | (9.8 | ) | (30.5 | ) | |||
Cash and cash equivalents at beginning of period | 659.3 | 434.7 | |||||
Cash and cash equivalents at end of period | $ | 649.5 | $ | 404.2 | |||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter Ended March 31, | |||||||
Dollar amounts in millions | 2017 | 2016 | |||||
Net sales: | |||||||
OSB | $ | 268.4 | $ | 217.0 | |||
Siding | 214.0 | 181.3 | |||||
EWP | 82.1 | 71.8 | |||||
South America | 37.8 | 30.5 | |||||
Other | 8.7 | 6.1 | |||||
Intersegment sales | (0.1 | ) | (2.1 | ) | |||
$ | 610.9 | $ | 504.6 | ||||
Operating profit (loss): | |||||||
OSB | $ | 60.4 | $ | 15.3 | |||
Siding | 40.2 | 26.9 | |||||
EWP | 0.6 | (2.5 | ) | ||||
South America | 5.1 | 5.1 | |||||
Other | (0.2 | ) | (0.4 | ) | |||
Other operating credits and charges, net | (3.4 | ) | — | ||||
Loss on sale or impairment of long-lived assets, net | (0.6 | ) | — | ||||
General corporate and other expenses, net | (28.3 | ) | (24.0 | ) | |||
Interest expense, net of capitalized interest | (5.0 | ) | (8.0 | ) | |||
Investment income | 2.0 | 1.8 | |||||
Other non-operating items | (0.3 | ) | 0.5 | ||||
Income from operations before taxes | 70.5 | 14.7 | |||||
Provision for income taxes | 15.5 | 4.4 | |||||
Net income | $ | 55.0 | $ | 10.3 | |||
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SUMMARY OF PRODUCTION VOLUMES
The following table sets forth production volumes for the quarter ended March 31, 2017 and 2016.
Quarter Ended | |||||
March 31, | |||||
2017 | 2016 | ||||
Oriented strand board, million square feet 3/8" basis | 1,055 | 1,052 | |||
Oriented strand board, million square feet 3/8" basis (produced by North America non-OSB segment mills) | 67 | 64 | |||
Wood-based siding, million square feet 3/8" basis | 350 | 331 | |||
Engineered I-Joist, million lineal feet (1) | 21 | 19 | |||
Laminated veneer lumber (LVL), thousand cubic feet and laminated strand lumber (LSL), thousand cubic feet (1) (2) | 2,754 | 2,529 | |||
(1) Includes purchases of products from joint ventures or purchased under contract manufacturing arrangements.
(2) Includes LVL and LSL production which is used in the production of I-Joist as well as sold as end products.
Exhibit 99.2 Reconciliation of EBITDA and Adjusted EBITDA for the quarter ended March 31, 2017 and 2016.
Three Months Ended March 31, 2017 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Net Sales | $ | 268.4 | $ | 214.0 | $ | 82.1 | $ | 37.8 | $ | 8.7 | $ | (0.1 | ) | $ | 610.9 | ||||||||||||
Depreciation and amortization | 14.7 | 8.1 | 3.8 | 2.2 | 0.9 | 0.9 | 30.6 | ||||||||||||||||||||
Cost of sales and selling and administrative | 193.3 | 165.7 | 78.8 | 30.5 | 8.0 | 27.3 | 503.6 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets, net | — | — | — | — | — | 0.6 | 0.6 | ||||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 3.4 | 3.4 | ||||||||||||||||||||
Total operating costs | 208.0 | 173.8 | 82.6 | 32.7 | 8.9 | 32.2 | 538.2 | ||||||||||||||||||||
Income (loss) from operations | 60.4 | 40.2 | (0.5 | ) | 5.1 | (0.2 | ) | (32.3 | ) | 72.7 | |||||||||||||||||
Total non-operating expense | — | — | — | — | — | (3.3 | ) | (3.3 | ) | ||||||||||||||||||
Income (loss) before income taxes and equity in income of unconsolidated affiliates | 60.4 | 40.2 | (0.5 | ) | 5.1 | (0.2 | ) | (35.6 | ) | 69.4 | |||||||||||||||||
Income tax provision | — | — | — | — | — | 15.5 | 15.5 | ||||||||||||||||||||
Equity in income of unconsolidated affiliates | — | — | (1.1 | ) | — | — | — | (1.1 | ) | ||||||||||||||||||
Net income (loss) | $ | 60.4 | $ | 40.2 | $ | 0.6 | $ | 5.1 | $ | (0.2 | ) | $ | (51.1 | ) | $ | 55.0 | |||||||||||
Reconciliation of net income (loss) to Adjusted EBITDA | |||||||||||||||||||||||||||
Net income (loss) | $ | 60.4 | $ | 40.2 | $ | 0.6 | $ | 5.1 | $ | (0.2 | ) | $ | (51.1 | ) | $ | 55.0 | |||||||||||
Income tax provision | — | — | — | — | — | 15.5 | 15.5 | ||||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 5.0 | 5.0 | ||||||||||||||||||||
Depreciation and amortization | 14.7 | 8.1 | 3.8 | 2.2 | 0.9 | 0.9 | 30.6 | ||||||||||||||||||||
EBITDA | 75.1 | 48.3 | 4.4 | 7.3 | 0.7 | (29.7 | ) | 106.1 | |||||||||||||||||||
Stock-based compensation expense | 0.2 | 0.2 | 0.1 | — | — | 3.6 | 4.1 | ||||||||||||||||||||
Loss on sale or impairment of long lived assets, net | — | — | — | — | — | 0.6 | 0.6 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (2.0 | ) | (2.0 | ) | ||||||||||||||||||
Other operating credits and charges, net | — | — | — | — | — | 3.4 | 3.4 | ||||||||||||||||||||
Adjusted EBITDA | $ | 75.3 | $ | 48.5 | $ | 4.5 | $ | 7.3 | $ | 0.7 | $ | (24.1 | ) | $ | 112.2 | ||||||||||||
Three Months Ended March 31, 2016 (Dollar amounts in millions) | OSB | Siding | EWP | South America | Other | Corporate | Total | ||||||||||||||||||||
Net Sales | $ | 217.0 | $ | 181.3 | $ | 71.8 | $ | 30.5 | $ | 6.1 | $ | (2.1 | ) | $ | 504.6 | ||||||||||||
Depreciation and amortization | 14.5 | 7.2 | 3.1 | 1.9 | 0.4 | 0.8 | 27.9 | ||||||||||||||||||||
Cost of sales and selling and administrative | 187.2 | 147.2 | 72.7 | 23.5 | 6.1 | 21.1 | 457.8 | ||||||||||||||||||||
Total operating costs | 201.7 | 154.4 | 75.8 | 25.4 | 6.5 | 21.9 | 485.7 | ||||||||||||||||||||
Income (loss) from operations | 15.3 | 26.9 | (4.0 | ) | 5.1 | (0.4 | ) | (24.0 | ) | 18.9 | |||||||||||||||||
Total non-operating expense | — | — | — | — | — | (5.7 | ) | (5.7 | ) | ||||||||||||||||||
Income (loss) before taxes and equity in income of unconsolidated affiliates | 15.3 | 26.9 | (4.0 | ) | 5.1 | (0.4 | ) | (29.7 | ) | 13.2 | |||||||||||||||||
Income tax provision | — | — | — | — | — | 4.4 | 4.4 | ||||||||||||||||||||
Equity in income of unconsolidated affiliates | — | — | (1.5 | ) | — | — | — | (1.5 | ) | ||||||||||||||||||
Net income (loss) | $ | 15.3 | $ | 26.9 | $ | (2.5 | ) | $ | 5.1 | $ | (0.4 | ) | $ | (34.1 | ) | $ | 10.3 | ||||||||||
Reconciliation of net income (loss) to Adjusted EBITDA | |||||||||||||||||||||||||||
Net income (loss) | $ | 15.3 | $ | 26.9 | $ | (2.5 | ) | $ | 5.1 | $ | (0.4 | ) | $ | (34.1 | ) | $ | 10.3 | ||||||||||
Income tax provision | — | — | — | — | — | 4.4 | 4.4 | ||||||||||||||||||||
Interest expense, net of capitalized interest | — | — | — | — | — | 8.0 | 8.0 | ||||||||||||||||||||
Depreciation and amortization | 14.5 | 7.2 | 3.1 | 1.9 | 0.4 | 0.8 | 27.9 | ||||||||||||||||||||
EBITDA | 29.8 | 34.1 | 0.6 | 7.0 | — | (20.9 | ) | 50.6 | |||||||||||||||||||
Stock-based compensation expense | 0.2 | 0.3 | 0.2 | — | — | 2.3 | 3.0 | ||||||||||||||||||||
Investment income | — | — | — | — | — | (1.8 | ) | (1.8 | ) | ||||||||||||||||||
Adjusted EBITDA | $ | 30.0 | $ | 34.4 | $ | 0.8 | $ | 7.0 | $ | — | $ | (20.4 | ) | $ | 51.8 | ||||||||||||
Exhibit 99.3 Reconciliation of Adjusted income from continuing operations
As reported Quarter Ended March 31, 2017 | Adjustments | As adjusted Quarter Ended March 31, 2017 | As reported Quarter Ended December 31, 2016 | Adjustments | As adjusted Quarter Ended December 31, 2016 | As reported Quarter Ended March 31, 2016 | Adjustments | As adjusted Quarter Ended March 31, 2016 | |||||||||||||||||||
Net sales | $ | 610.9 | $ | 610.9 | $ | 550.0 | $ | 550.0 | $ | 504.6 | $ | 504.6 | |||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 455.0 | 455.0 | 422.8 | 422.8 | 415.5 | 415.5 | |||||||||||||||||||||
Depreciation and amortization | 30.6 | 30.6 | 26.8 | 26.8 | 27.9 | 27.9 | |||||||||||||||||||||
Selling and administrative | 48.6 | 48.6 | 47.8 | 47.8 | 42.3 | 42.3 | |||||||||||||||||||||
(Gain) loss on sale or impairment of long-lived assets, net | 0.6 | (0.6 | ) | — | (9.4 | ) | 9.4 | — | — | — | |||||||||||||||||
Other operating credits and charges, net | 3.4 | (3.4 | ) | — | 6.0 | (6.0 | ) | — | — | — | |||||||||||||||||
Total operating costs and expenses | 538.2 | 534.2 | 494.0 | 497.4 | 485.7 | 485.7 | |||||||||||||||||||||
Income from operations | 72.7 | 76.7 | 56.0 | 52.6 | 18.9 | 18.9 | |||||||||||||||||||||
Non-operating income (expense): | |||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (5.0 | ) | — | (5.0 | ) | (5.8 | ) | 0.3 | (5.5 | ) | (8.0 | ) | (8.0 | ) | |||||||||||||
Investment income | 2.0 | 2.0 | 1.8 | 1.8 | 1.8 | 1.8 | |||||||||||||||||||||
Other non-operating items | (0.3 | ) | (0.3 | ) | (3.4 | ) | 4.1 | 0.7 | 0.5 | 0.5 | |||||||||||||||||
Total non-operating income (expense) | (3.3 | ) | (3.3 | ) | (7.4 | ) | (3.0 | ) | (5.7 | ) | (5.7 | ) | |||||||||||||||
Income from continuing operations before taxes and equity in income of unconsolidated affiliates | 69.4 | 73.4 | 48.6 | 49.6 | 13.2 | 13.2 | |||||||||||||||||||||
Provision for income taxes | 15.5 | (15.5 | ) | — | 6.7 | (6.7 | ) | — | 4.4 | (4.4 | ) | — | |||||||||||||||
"Normalized" tax rate @ 35% | — | 26.1 | 26.1 | — | 17.6 | 17.6 | — | 5.1 | 5.1 | ||||||||||||||||||
Equity in income of unconsolidated affiliates | (1.1 | ) | (1.1 | ) | (0.8 | ) | — | (0.8 | ) | (1.5 | ) | (1.5 | ) | ||||||||||||||
Income from continuing operations | 55.0 | 48.4 | 42.7 | 32.8 | 10.3 | 9.6 | |||||||||||||||||||||
Loss from discontinued operations before taxes | — | — | (0.8 | ) | (0.8 | ) | — | — | |||||||||||||||||||
Benefit for income taxes | — | — | (0.3 | ) | (0.3 | ) | — | ||||||||||||||||||||
Loss from discontinued operations | — | — | (0.5 | ) | (0.5 | ) | — | — | |||||||||||||||||||
Net income | $ | 55.0 | $ | 48.4 | $ | 42.2 | $ | 32.3 | $ | 10.3 | $ | 9.6 | |||||||||||||||
Net income per share of common stock (basic): | |||||||||||||||||||||||||||
Income from continuing operations | $ | 0.38 | $ | 0.34 | $ | 0.30 | $ | 0.23 | $ | 0.07 | $ | 0.07 | |||||||||||||||
Loss from discontinued operations | — | — | (0.01 | ) | — | — | — | ||||||||||||||||||||
Net income per share - basic | $ | 0.38 | $ | 0.34 | $ | 0.29 | $ | 0.23 | $ | 0.07 | $ | 0.07 | |||||||||||||||
Net income per share of common stock (diluted): | |||||||||||||||||||||||||||
Income from continuing operations | $ | 0.38 | $ | 0.33 | $ | 0.29 | $ | 0.23 | $ | 0.07 | $ | 0.07 | |||||||||||||||
Loss from discontinued operations | — | — | — | — | — | — | |||||||||||||||||||||
Net income per share - diluted | $ | 0.38 | $ | 0.33 | $ | 0.29 | $ | 0.23 | $ | 0.07 | $ | 0.07 | |||||||||||||||
Average shares of stock outstanding - basic | 144.2 | 144.2 | 143.7 | 143.7 | 142.9 | 142.9 | |||||||||||||||||||||
Average shares of stock outstanding - diluted | 145.9 | 145.9 | 145.5 | 145.5 | 145.2 | 145.2 | |||||||||||||||||||||