Louisiana-Pacific Corp. (NYSE:LPX) Q4 2016 Earnings Conference Call - Preliminary Transcript

Feb 08, 2017 • 09:30 am ET


Louisiana-Pacific Corp. (NYSE:LPX) Q4 2016 Earnings Conference Call - Preliminary Transcript


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Good day.Ladies and gentlemen and welcome to the Louisiana Pacific Corporation fourth quarter 2016 earnings conference call. [Operator Instructions] As a reminder, this call may be recorded of knowledge. Introduce your host for today's conference, Sally Bailey, Executive Vice President and Chief Financial Officer. Please go ahead, ma'am.

Sallie B. Bailey

Great, thank you very much crispy and Good morning. Thank you for joining our conference call to discuss LPL Financial results for the Fourth Quarter and full year of 2016. I am Sallie Bailey, LPs Chief Financial Officer. And with me today are Curtis Stevens LPs Chief Executive Officer Brad Southern LPs Chief Operating Officer, as well as Mike Kinney and Becky Barclay, our primary Investor Relations contact.

I will begin the discussion today with a review of the financial results for the fourth quarter and full year 2016.This will be found by some comments on the performance of individual segments and selected balance sheet items. After I finished my remarks, Curt will discuss the general market environment in which lt has been operating and provide his perspective on our operating results and give some thoughts on the outlook.

As we have done in the past, we've opened up this call the public and are doing a webcast. The webcast can be accessed at www. lpcorp.com additionally, to help with the discussion, we have provided a presentation with supplemental information that should be reviewed in conjunction with the earnings release.

I will be referencing these slides and my comments this morning. We have filed an 8k this morning with some supplemental information and plan to file our 10 k next week. I want to remind all the participants about the forward looking statements comment on slide two of the presentation.

Please also be aware of discussion of our use of non GAAP financial information included on slide three of presentation the pandamic attach to a presentation has some of the necessary reconciliations that have been supplemented by the form 8k filing we made this morning. Rather than reading these two statements, I incorporate them with this reference.

For 2016 lp is reporting our highest adjusted EBITDA since 2005 when housing starts were almost 1 million higher than they were in 2016. Okay reporting revenue of $2.2 billion and adjusted EBITDA at $346 million for 2016.

Our citing segment has another record year with net sales of $752 million $154 million of adjusted EBITDA and an adjusted EBITDA margin of 20.5% with improved OSB pricing from 2015 and finding growth. We reported 2016 adjusted EBIT da margins over 15% in addition to the strong earnings and cash flow in 2016.

We also cleaned up our balance sheet refinanced our debt, lowered the interest rate and extended the maturity another four years and identified significant research tax credits. With that, let me go into the details. Moving to slides for the presentation for discussion of the fourth quarter and full year 2016 consolidated results.

We're reporting net sales of $550 million for the fourth quarter