Louisiana-Pacific Corp. (NYSE:LPX) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 11:00 am ET


Louisiana-Pacific Corp. (NYSE:LPX) Q3 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Ladies and gentlemen, thank you for standing by and welcome to the Third quarter 2019 Louisiana-Pacific Corporation Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Mr. Aaron Howald, Director of Investor Relations. Please go ahead, sir.

Aaron Howald

Thank you, Sidney. Good morning everyone and thank you for joining us today to discuss LP's financial results for the third quarter of 2019. My name is Aaron Howald and I'm LPs, Director of Investor Relations. I'm joined today by Brad Southern, LP's Chief Executive Officer and Alan Haughie, our Chief Financial Officer.

As we have done in the past, we are hosting a simultaneous webcast. In addition to this public conference call, the webcast can be accessed at our website www.lpcorp.com we have also provided a presentation with supplemental materials to which we will refer during this morning's comments. And finally, we have filed our 10-Q and 8-K this morning with some supplemental information.

I want to remind all participants on the call about forward-looking statements and our use of non-GAAP financial information. During our discussion, I will refer you to slides 2 and 3 of the accompanying presentation for more detail. The appendix attached to the presentation has some necessary reconciliations that have been supplemented by the Form 8-K filing we made this morning rather than reading those statements I incorporate them here in by reference.

Now let me turn the call over to Brad.

Brad Southern

Thanks, Aaron. And thank you all for joining us this morning, I'll begin today's call with a few highlights from the third quarter and an update on our transformation, particularly with regard to our growth and efficiency initiatives in the context of the current market environment.

I will then turn the call over to Alan for more detailed look at our financial results. First I want to acknowledge and welcome the Nicole Daniel who recently joined LP, as our Senior Vice President, General Counsel and Corporate Secretary. Nicole earned her Juris Doctorate from the from Indiana University and has both an impressive legal background and a wealth of senior leadership experience. Welcome to LP, Nicole. We are glad to have you on the team.

I'm pleased to discuss our performance relative to a market that remains challenging. The sluggish housing starts and stagnant OSB pricing, specifically, I will talk about four highlights for the quarter. First, we are ahead of pace to achieve our long-term targets for growth and efficiency. Second, we hit our growth targets for SmartSide Strand, setting records this quarter for sales and for safe operations. Third, we significantly rationalized our OSB production at our mill in Peace Valley and curtailing OSB production in our siding mills. And finally, we generated excellent operating cash flow difficult housing and price climate I discussed during Q2's earnings call continued into the third quarter. Single Family Starts were a little over 3% compared to Q3 of last year. However, on both a year-to-date and trailing 12-month basis starts