- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day. And thank you for standing by. Welcome to the Third Quarter Louisiana Pacific Corporation Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Aaron Howald, Vice President Investor Relations and Business Development. Please go ahead.

Aaron Howald

operator. you, Thank everyone. Good morning, year. you for for as discuss thank and us updated joining third quarter results full quarter the fourth well for LP's of outlook And the to XXXX our as

I'm As the operator morning Development. President LP's my and name by Business Financial Brad Investor and joined Chief Chief LP's Executive Alan Howald, Relations Officer; is of I'm Vice Aaron said, and this Southern, Officer. LP's Haughie,

accompanying we this is presentation conference an and refer During webpage, investor.lpcorp.com. that webcast on is will IR morning's LP’s available to call which

are is And our Slides and on here and filing turn materials. reference. forward-looking and I X-K Statements also also by press other than presentation. the available are to X reconciliations supplemented Our call Rather available filing. and that, appendix there this by them with those various metrics statements X-K contains statements, incorporate over earnings will reading X along regarding of that further financial non-GAAP And with earnings release the I morning's the Brad.

Brad Southern

morning Aaron. outlook. for discuss to us full the thank in results And for Thanks, joining LP’s third year you quarter everyone. Good our

significant of all segment products, against LP’s drove OSB backdrop a the no growth. transformation of third the you saw and in value continued specialty commodity OSB in remodel LP’s on strategic focus construction. demonstrate new normalization quarter for which the provides slowdown challenge higher the residential opportunity As housing repair to a and value-added market single-family prices. also starts, doubt a an the know, to is contributed slowdown of This but results,

Solutions more than from within QX. of the fact, the revenue Structural the OSB, revenue the the segment OSB in Siding portfolio. And In generated segment majority came specialized more

about is continue OSB It committed million the phases and The with Insulated progressing is SmartSide planning. total edition siding capacity roughly year from siding capacity Michigan, square show in and NovaCore future in LP grew year. to launched in was the the will to capacity including a in to Our of and capacity discipline the where feet X EWP strategic drive portfolio, sale. of the to In $XXX growth we that presentation ExpertFinish million received for and near about LP in three this the the Structural future links. run proceeds Siding's after X.X to should schedule Pages repurchase and million balance in shares. quarters. capacity over newest innovation. very available X million support EBITDA another is capital year BuilderSeries remains to and quarter enable bulk and from cash, the and our finish invested $XXX XX% high connected billion from soffit in OSB the the in panel $XX linear million start Solutions strong Houlton ramp produce necessary running of quarter. volume to conversion annually, to some level update product Page feet shows QX, XXX innovation with January on and XX a necessary about volume $XXX next LP in earned $XXX X% million goes to growth. returned process. square only of by the and liquidity. Sheathing, capacity product trailing strategy the Sagola, only roughly continues starts year. over about of of press single-family the to investment an last solutions rated increase growing to capital volume shareholders, about once X.X prioritize XX-month results about not more launch X allocation this Structural quarter, random of up expected by ended of which product Houlton of spent quarter. with detail third running at both single-family into growth. which Siding fully to lap XXX Comparing to categories Structural XX%. This applications. revenue same within DIY QX quarter. But and then volume new basis. continues setting to SmartSide grew trim capacity. starts, Siding should and on week past cease will XX% X Siding X% up production ahead Siding final RNR, and XX% by the XX% Siding, XX% Solutions, failed production quarter records drive bringing and and volume Siding for ramp the up prior grew and XX% and compared In over construction both new dedicated solutions on full Sagola volume Slide investments up ExpertFinish ExpertFinish to start the to to next single-family QX, Recall, compared months. rate of Through new were priceless NovaCore the price Siding contrast, by Siding shares add by million four Solutions the made by projects In a million $X growth. to grew sales week. making shows growth a to in down in fastest to products are the with growing has feet. is billion other last the quarter. net Houlton full In a remove officially majority sheet, edition ultimately XX% price

press latest in finishing Pending in of market. complete. in begin the two-line by is line add in expected Siding on success facility we Green a Bay the project QX with nearly with build production from today project conversion regulators ExpertFinish we as in business. can the announce in final local more will two other For ExpertFinish Holten and project expanding of to project that New This additions XXXX. the on will joining The the Bath, add will northeastern York siding second Hayward state important stakeholders new our expansion LP’s facility. of Holten mill. strategically This approvals schedule remains capacity And capacity forming and

New New accelerate XXXX. prefinished capacity housing And add the demand. geographic despite And to believe expansion baseline on in green siding second ExpertFinish bring over Pacific pre-finished in R&R press our siding there term to Washington will These should We range, the and fundamentals to a remain LP processes. of ExpertFinish, plan we we by that production the down that long-term and plus begin improving very more mid York Holten pace than XXXX projects existing scale, and and late the new facility new will add end more path favorable X.X in billion facilities, utilization capacity, to to Compared sheer Holten's driving to for growth, finishing to investing for efficiency than the while double simultaneously State double meet capacity Siding cost. line near pre-finishing are double on total the capacity XXXX roughly are capacity will turbulence. XXXX. sites square puts capacity of at and feet. again by To the serve growing markets to ExpertFinish we better a Washington in Northwest.

desire value meaningful files, business that that that who waste and and order is generate emission, ensure sequester a responsibly enhancing the fiber over talent second QX emitted potentially ExpertFinish. and distribution more COX negative just plan order remain their products that to to inclusive at we capacity managed carbon model. for into visibility we In the report current remaining can efficient volume we all of order on inventory focused outlined, Sagola This We our on I for growth. to prime sustainable least is production levels, access contribute file to that anticipate next in year includes LP’s our publish for processes welcoming and throughout in manufacturing building and products until expansions the have tomorrow. sustainability to XXXX long-term, managed long-term our minimize and team Given resources, provides than

our stay sustainability for performance detail and more So about tuned strategy.

a As year, but to wage more more Mortgage far, rate is for raw this to affordability QX especially market potentially and worsen material a moment, than two in so continues detail on likely impact softening into or offset the this housing and more we X% for continue buyers, inflation. home as a will will pressures factors. housing Alan I optimistic headwind. about weaker provide growth inflationary head first we and provide LP’s to factor of next look starts. towards cost But contributing remain time

our ever than will capacity over and housing the And with & I the in right approach about and growing for more Structural is long-term turn take remodeling. bullish that convinced of that am of the for remain second, and I discipline capital we LPs First, your Solutions managing the detailed quarter repair Siding I with market. questions. and review more call strategy fundamentals to a before any Alan And

Alan Haughie

Thanks Brad.

Solutions, mix Revenue grew rather revenue of to direct year-over-year by $XX XXXX last which quarter grow million of the a of OSB EBITDA, Volumes increases LP together are inflation. higher Volume materials. or believe continued of added materials the and As growth the Houlton a in million, to $XX which slowing million $X rose in to of two continues EBITDA $XX waterfall material These contributed EBITDA. $XX shows prices of single-family as X% permanent points cost combined largely Slide improvement million third result price, increased of higher waterfall prices raw and starts, cost price final we summary past general of in growth with higher three wage we've or Siding. million The to equipment more were not, the list increases the of mills offset business. Siding. freight. headwinds, provides set of to overall housing of $XXX to mill's quarters Slide prices in maintenance the effective due new Structural XX which said, million MRO the which $XX relates the inflation, X healthy a XX% Inflation as over OEE, And the well million $XX last and and offset compared is from as result for in million and ramp-up, $XX than were the and on growth was impacts quarter the of for was the hope to produced year Despite and million economic ExpertFinish. for $XX a But year. ongoing XX% sustaining Siding effectiveness X margin. raw third and we XX% revenue summary, in million records that addition continues and headwinds EBITDA. lift revenue of in for

Now, of equal reflects $XX broadly waterfall by impact and raw by and for more the realization, growth commodity $XXX resulting XX which high inflationary price by volume crude which gas million impacts overshadowed EBITDA which siding inputs headwind natural OEE. of were increased EBITDA and story EBITDA million. are severe. with pressures investments it material volume Peace selling in both $X purposes $XX million algorithmic whole. inflationary Structural falling reduced this similarity margin and prices. as inflation. million OSB has the this Page the raw and other against Structural is potential somewhat in wage higher show costs sell a freight LP million the is, the oil, prices up and results key which is material that growth all net million in Structural increased the commodity the But added slightly The of Valley's from of mill EBITDA, is growth maintenance of positive that listed $XX summary to and Siding and offsetting for OSB been increases by including million on added inbound course reduced again is components commodity consistent million a $XX substantial. the prices, costs Solutions. from $XX for our over-year-revenue past the level would've cost $XX The million drop largest costs as million waterfalls of factor marketing from shows inflation. when is Solutions EBITDA outperformed paints American benzene, ramped a The normalized, and commodity The $XXX year. waxes $XX single in I North favorable in of will due growth the without then representing that inflation businesses, else of growth primarily million these the increases in Solutions in in analysis, The million once commodity $XX But opportunity is the enhancement for both LPs largely final of the and of instead in guidance which EBITDA lost part difference driven offset and aggregates And freight the in resins, revenue net inflationary over headwind. of outbound. output deduct margin the volume with prices $XX in to OSB overlays, to impact

inflow flat million EBITDA continuing at $XX quarter XX% end a of South by as reduction we hovering Slide it in be constant very Brad the the as have the ended invested in in appears LPs not also to point million, billion slowing undrawn in over under EWP $XXX $XXX balance but of or exchange tells Taxes XXXX quarter almost quarter was we Cash generated story consistent $XXX $X share shareholders. allocation. from meaningfully returned the raw took the third I with count from operations revenue and in more so to our million, just material to XX% in diluted million. quarter, said, in business, diversity Slide EBITDA $XX when repurchases proportionately. end slow combined when repurchase have buybacks XX% will of we revolver of prices the LPSA share needed produced past and with cash repurchases cash lowered $XXX the inflation a we shows out plus dollar had July. would $XX.X XX per in and share want a that around to liquidity. the the demand million the over The cash with while year-over-year $XX lower produced what share for earnings capital to LP America XX million, essentially been activity right on fell $XXX America, been began result similar and flow flow. Segment million movements, in of referred rates saw from by this million this proceeds million another than fell North and experiencing $X.XX working another the of that capital the earnest. EWP share some of OSB reduced may have flows it are $X.XX cash or adjusted share, Furthermore, now per And magnitude months. for lower and

Our capital allocation unchanged. strategy remains

cash, quarter OSB the bringing on total fourth converting between mill for somewhere in invest the We shows year, XX for guidance XXXX. will earn production the to full quarter highest specifically year. return this work CapEx continue million will in Sagola and growth for and shareholders in be $XXX the Slide balance fourth to accelerating to With us $XXX million the Siding spending order. to and that

that growth spend between Houlton. while to of under $XXX ExpertFinish maintenance. of and in just for and projects Solutions continue $XXX capacity $XXX as we other ultimately spend And expansion capacity conversions, million $XXX Structural and was mill add planned earlier, in Just on the million million sustaining to with Brad Siding and under expand said the Sagola million

Now, mill. be pressure converting adding than will and at line Houlton substantially expensive more an a existing new forming

of that will significantly of be seem with for order Spending cost Houlton CapEx XX%. rate preview to early As the million an to order. about of of in The project an $XXX of expansion such will return XXXX million. expected next on a would there than is And to this outlays the capital delay likely in in total flexibility these should is with warrant. to be $XXX closer the system $XXX-ish part that result latter the year's ramp-up substantial year circumstances million of CapEx XXXX

from growth Siding as by revenue in press additional non-recurrence demand However, rebuild demand ramp-up, as Houlton's quarter capacity the a sales remains and XX% strong for is of the fourth the the last levels, about and bring we XX% OSB their that and been This year-over-year soft of admittedly to for taking and essentially current maintain enabled weeks, about the year, flat past continuing of comparison, fall at we expect we by least in given. quarter to as expect fourth OSB well assume growth if prices Siding which XX%. quarter-over-quarter. provided full-year several revenue growth sequentially would this an have they

price a fire be caused result by interruption addition to in of to by Clarke the year reductions, output and as LP margin fourth $XXX Siding the will end outages. turn In October Siding this expect revenue with and conversion quarter maintenance fourth a Siding for EBITDA in due $XX million to County million, a impacted The over least at would XX%. $XXX all Sagola's call the be the typical that around quarter of I'll EBITDA fourth we for of that, And Q&A. whole million a at to quarter back around within of for lower operator

Operator

Thank question from our from comes Goldman Maklari Susan Sachs. Instructions] first you. [Operator And

Please open. Your ahead. line go is

Susan Maklari

you. product question looking about lot at heard you are obviously to that everyone. this there and business, can starting morning on talk this rates? Thank what building the We've bit Good in weeks things overall of companies of inventories last order couple little ground. of terms channel a My is first a seeing from you're moderate Siding just

help just what to relative the understand in seeing there and happening us industry? contrasting broader So can you what's growth better you're your

Brad Southern

lean would be at of of now to still for them in and the side of are pulls on Susan, file remarks, Channel time still right we and order order at year, on stay managed the this mentioned Siding strong. so this to inventories I like least year. demand QX remain file next our we're prepared managed expect as on where and through

all you're the much several look to file, volume pretty order we're oversold sell it's over it. sure the standpoint the if incremental next file Houlton remains when provide currently or capacity it quarters. going that from could sell not additions to particularly stable. had and These the of is hard But managed you more so this And order strength how you to

so very today the still And situation managed it of change, file file. could healthy order order but as

Susan Maklari

And macro a and inflation price coming up, been supply the to to thinking more and you've does especially couple you're the we margins moderate how those costs about the segment? sustain little can That's over through And bit as next Siding then the talk housing hold that the chain the seeing, Okay. helpful. ability following quarters? and in as about

Brad Southern

feel up I Susan, I his so list mean, but Alan historically sticky. work to pricing in for feel rebates has XX been customers, it Once years situations. you that with know, good to I price Yes, specific the respond competitive we've gotten our essentially good year. we've to sometimes especially very remarks, around on as this I get the it we We can or given mentioned never the Siding last about pricing

are another of and that now. help planning go we to to inflation increase to We experiencing X% some – out offset the were announcement list later year's this X% with late January price

but being anticipate far next through able ability to the to year going kind we've channel part don't anticipate like using price market. keep price and feel is us inflation cetera, typically get And It's able of I to can that next timing; at. the et this goes that's not cost I it's well. been ratio in do to where So of the our of it to always up so increase to stay demand price matter get to a and with product of year, ahead generate as how first I our

Susan Maklari

and for Thanks color Okay. everything. the luck with good

Brad Southern

Thank you.

Operator

Sean [Operator Steuart question. your question for TD Instructions] the you And from next with Securities. Thank is

Please open. is line go ahead. Your

Unidentified Analyst

to [indiscernible] X% It's Xst. the everyone. implemented factor price morning on quarter? in just you what to this Sean. X% this Sticking know good the theme, Siding, Can mix with played for on think price filling actually line I relative July they comment to I for X% height on the were of realizations follow-up Hi, on you quarter up QX.

Brad Southern

sentence up Actually, your you last question. – of broke of last part the the right at

Unidentified Analyst

problem. No

can comment on a this played Sorry about just role extent what I'm Brad. if to that, wondering mix quarter? you

Brad Southern

but Mix play role, attributed was that Yes. of a can price price increase. most the increase to major

was all pricing. X% right maybe the but So from mix, rest

Unidentified Analyst

anything tandem commented $XXX how But activity in right can your Okay. And think I you current markets share know have activities much and date? you QX million is bit much with buyback commodity a down program? slowing you the just in was down. it left on on us I left authorization. slowing any if just to buybacks, How return remind now,

Brad Southern

authorization We share there's quarter. this to have buybacks on no and the $XXX million remaining date

Unidentified Analyst

the context. I for Thanks appreciate it turn wonderful. it. Okay, over. I'll

Operator

Bank Thank you George your very from Securities. go Please And our ahead. America much for question. comes of question with Staphos next

line Your is open.

George Staphos

next Thanks hold green costs; in wanted – congratulations Aaron ask on to morning very you kind you and expectation seeing then or Sagola Brad you won't recovery see if material to as supply XX% labor, is off the have in year. curve on you'd on question don't level much. questions? I that demand freight first life, can the shoot and current to Siding. and any up you get you chain of go the drop related two expect about Alan, maybe those are things planned in especially would maintain good we How guarantees on will of in that this, to especially and improvement there no but if progress. us and comes a your margin as your we think

Brad Southern

are improved more that free we experienced has trucking also availability seeing and freight so and Well on of freight impacted yes, chain all we've cost. supply really than year somewhat up certainly

would oil I labor the some then in our fighting worse associated material, certainly and are it's we're that because cost to in base contracts side, in any way mean, a sales, not maintain those half big year. overall our are And still of indexed as way supply most of I the of operations and gotten as most certain the second far staffing of to the – at not say green to we're extent group currently the ramp-up but And On seeing as haven't XX% will directly. associated we're Sagola be some there been for with relief that. shoots not and the obviously far next year currently margin closely. for if it next downward year rate inefficiencies oil was then some with certainly We're And could be reductions, cost any with that, cost on there trend watching to as at if seen but that. opportunities seen though,

We our have or cost, input the raw costing finalized the next have our initiate process, far increase. year not as we budget decided back to material our of year as for price at the beginning

So depending given I cost the rate. again it no and But – mean, material on there's could well around we I of more depending back – to number ramp increases think unknowns around a of make lot incremental raw I the and and that on about and and demonstrating XX% price Sagola doing get We've around around the place. and stuff been raw we pricing. can. feel and specifically material about ramp control I the will where say can good good Sagola But it on when discipline uncertainty Siding up this, in we what we're we getting the

So – our far that margins. to on protecting as we'll and as focus continue

George Staphos

I'll other over. questions Thanks it Brad. Two Siding on and turn

a scale. making, to Houlton additional it's going could bit but us along when give So of fiber the have a the Maybe take other have done want you're that you to to talk basket with I first can there. ability you're investments the second that offering said of that parameters to And pre-refinishing all, say then prepared on just about in you of line? with around non-event you're remarks going Houlton, you're your if you

would go you, guys. with when Thank other and pre-finishing Houlton back with X the you capabilities through what kind If you're you'll done could inside the of and great? that Line operations additional be have

Brad Southern

Sean expanding [ph], very first the good. reasons of of wood all is of availability that we're the are basket. the because They primary Yes. one Houlton in of

years area been manufacturing and has wood state related some the loss the the Over Maine there of Maine. in

good pulpwood the Aspen is basket, basket is prefer well. as good. which very up So wood there we The wood

the drivers as of deciding far adding one Houlton. the particularly to Bay, we the was to the that relates And doing reminder which so the to we coating pre-finish lines currently a a are – expansions we're expand then pre-finish And so in have in in. as business, in just for that of production Green Siding the as facilities manufacturing it

coast a We which North will within that Louis, by in facility Washington. we're just a adding to be state pipelines on facility St. facility facility Bath, we building a of in I large mentioned have the expandable New York, in do engineering a We're beginning in Where is Carolina. the growth And opportunity of west see I capacity east will the like further part haves addition for central St. in as far of of the New country is the Washington as then Carolina our then Louis. North past in and well the feel fairly Bath, with covered. York facility

order capacity add beyond items at be – then And low a a we'll – we're because efficiently. additions paint growth once or be lines little critical a easier growth the so additional just as And and lines X. the in Houlton in is get to certainly So, a able Line picture, expansions capacity we are infrastructure continue basic to the capital be press will paint can that grow we pretty Siding, that the big in to to place, increase facilities relatively capacity. those those added existing prefinished

George Staphos

Thank you, Brad.

Operator

Davidson. your Instructions] question next [Operator with comes D.A. from Kurt And for you Thank Yinger our questions.

open. is ahead. go Your line Please

Kurt Yinger

good Great, thanks morning and everyone.

mill you, and Just Sagola that to OSB County think some guess, the of on with us the about outlook is volume noise wanted that? how on Clarke much the in could of to be down I embedded start help sales for around sequentially XX% versus off price

Alan Haughie

to down and capacity mid quarter, We shut capacity quarter. it XXX per annually. less the Sagola about Sagola we're purchases a over there is XXX the because that call So than be, that's it little but now going

there likely end some But be common is a combination component this typical is volume price larger as of to volume. that of that Sagola quarter and than are year. coming out So time a outages of maintenance that

Kurt Yinger

it. Got

the in that, as the on the XXXX would mid-to-late if think for but point two-partner isn't about think startup; it? to just you of for getting macro? dependent of the not that running that and get on how And a you then there production to the you I to the guess And expanding facility kind justify work will about go be ready mill but Thanks a and fixed everything's of Houlton capacity necessarily costs much pacing demand Alan. associated Okay. how positioned with additional

Brad Southern

as currently It's demand, would was be around don't get good back, have. especially we obviously the early. dire all we push are purchases and gaining to capacity harder where some that made stuff, we which Siding Line and comes Houlton today, to those the to question we it gets X a when so easy expansion it closer it we the And to as delay construction had outlook that

back me can are engaged necessarily answer explain bit equipment. actively that plates secure machinery in from in to that manufacturing and the little and – of that presses we early because doing and a up we as embossing procurement to material that much are tight, as Let so those order

is orders, as labor the harder a mean, standpoint cost from place on equipment, and around now I we harder that right we could as far beginning really where erecting gets construction it. push so lay, the those And to as

once deck Houlton to we talk can it'll over we're obviously because the something be all need getting But that quarters, going up Sagola next expecting we go up, as be year, X through hands Line about couple quarter-to-quarter. we get it'll capacity. and So next on and

forgot Okay. second part. though. part I Seemed the two like questions

Kurt Yinger

of the big one guess No, basket, the mean, chose just alternatives alright. there Houlton that talked expansion last about of some factors about? kind that versus I but the any you I capacity talked of is to you of go other other the were kind that that outside fiber that's with you

Brad Southern

of magnitude Greenfield, felt the biggest to get oh like We in The – others. And is there I'll really of the timing. our with second two line, get mill we add the given infrastructure was running thing ability that place quicker faster factor. with and than the was certainly that OSB no than the conversions that – up could that was order and driving so a have done. doing any that

the Houlton is X quality the is of Line as at well conversion how high. workforce is of is facility that going. First evidence This Houlton our very

obviously really we more again gives on repair coast the repair a the far that construction push the project. the a being the remodel are to ability versus execute the And of good geographic concentrated New market. that So capacity transportation country of And our Houlton of And would which part prefinished really diversity lot the us adding central Bath. then remodel also in be compliments York mid-Atlantic and phase very about is and with confidence we and as all manufacturing. down east a in between little have efficient and ramp-up Bath, us Northeast northeast, both as thirdly, where really it

our and that those of all us. a the alternatives in Houlton made for no-brainer apply context more So a to mean few really, of I criteria kind

Kurt Yinger

Okay. Great. in and here good Well thanks for luck guys. QX that Brad,

Brad Southern

you. Thank

Operator

with Global Thank Seaport for your is Securities. much Mark next Weintraub you so Instructions] [Operator our person question. And

open. now is ahead. Go line Your phone

Mark Weintraub

Thank you. lines Two of inquiry.

expansion I XXX million it square also type if the Houlton in a Alan, return I of and suggested was mentioned heard million capacity. that incremental about foot think, capital, XX% you $XXX on right, First,

say, XX% your was, you So, would of kind the like and increment? I in And type million pricing question $XXX million I guess now then Siding have really high have look well margins. XX% of the average I I take going am right be margins, at $XXX plus that if to the or simplistically EBITDA so so if

and sweeter it see is you. a Houlton in be low you economics help higher Thank of for Now, us average how the the is mean this expansion? you just has out can work of understanding as I it kind really course, or it so prices, cost? could mix

Alan Haughie

it You Mark. kind got right of

margin right margin the a level the on. given you we've of independent very delivers So high isolation as Fundamentally, an are a so high about XX% in made siding mill on pricing, about and mix, and mill. EBITDA progress

selling doesn't we costs, costs, in Now set included fixed and costs, marketing EBITDA obviously analysis. margin deliver have so that the business now XX% and right necessarily aren't of because a

And we already from another operating there leverage it, the effective mill is economically get into network. described yes, So, mill right. adding significant Yes. an

Mark Weintraub

the be well prices can the Thank to you quarter what And on fourth quarter? us relative your third currently average where you. great. maybe are then and – Okay, give quarter-to-date OSB guidance, might

Alan Haughie

with Well, Mark we've the several stuck past Friday. the this quarters. is prices random And approach Alan. last from that the in algorithmic The consistently guide links why using print

on think I was Friday. the about basis XXX last North XXX Central

guide the So assumes stable that at purposes for that remains that modeling that level.

Mark Weintraub

And have so from averaged in or quarter? you decline would $XX is $XX that the roughly a what third

Alan Haughie

Again, Mark, good. your pretty Yes, math that close right. is is

Mark Weintraub

in revenue, if then down I'm want make XX% just sure. And to Okay.

volumes else, I decline a so from am like XX% basically, something I'm because down? So expecting or or

Brad Southern

at I earlier a think years in out about the three you of take the roughly for assumed. of that about level Kurt's little I just remind And we volume question the to end week. And may you volume. Sagola finally account first bit year room those holidays. have would the some downtime comes for breathing to Yes, around time maintenance-related the combination the this that of then of was it will effects

Mark Weintraub

Got it.

Brad Southern

full of terms volume. quarter In

Alan Haughie

Both incorporated algorithmic guide. of are our in which loosely

Mark Weintraub

Got it.

Okay, thank you.

Brad Southern

Mark. Thanks,

Operator

your for Mike And Securities. next question you Truist setting is person. our for we're Mark. Thank from next up person Roxland the And

Your line Go is open. ahead. now

Michael Roxland

much very Thanks taking the questions. for

Brad Southern

Yes.

Michael Roxland

Sorry about that.

markets a the in housing are – is market that So relatively there higher. are any broadly are market, you noted broader decline are you've any Are rolling any Siding question that markets the to that housing noted Are is are you market? the the on brand showing national there in that up of seeing we're strengths? quick relative of you've rates obviously your strength well. cancellation – terms particularly more held know over. there the pockets Just seeing Builders

Brad Southern

construction, our And single-family generally Siding. So in that than within south seeing both north. polls new for speaking, in is market we're OSB and the stronger

the see north. may as as speaking how Some is we'll south of season, the that get and weather-related we December But through in stronger and impacted. be fall into and November the relatively the south plays it

Michael Roxland

you. Got

the stress the just the Is and Okay. fared? some or components given growing And housing? of which just still slowdown Siding product of demand has BuilderSeries, in facing, to how one on fastest tends you the be a then that trading have just seen that strong given many particularly are builders

Brad Southern

growth Obviously about year Demand strong really was percentage got that. when for last we zero. careful is be to still

that very given launch. address So and And the But it of engineered I growth. pressure costing cost both a was very some with to of labor makes percentage pressure, product do high it those. availability believe for we're pleased issues, the

it that's a with has have us And to put a position builders proposition pretty the in value so larger attractive. particularly

have well have and the led orders conversations given we the very with outlook honestly, for that to this pleased so, been I then that given, And product mean, environment.

that obviously got feel So a housing regional will we've year, provide market will share I will that is from national a I say next opportunity significantly large if be headwind I our and to increase mean product. market that like – But to way down an builders. share standpoint, with

Michael Roxland

Got order question, it. you And I this think, mentioned file allocation. last signing on on one files, quarter

any your think of you OSB? and Siding you Again OSB, files of four order books of weeks of line sight in sight both two in weeks six order Any not order I weakness, in terms of that the line seeing order but reiterated Siding, out. you change four to terms and earlier. to had in the files are

Brad Southern

file right a certainly plus quarter, as Siding orders, balanced we Not strength report were the length. weeks in we're we're call and far then thing in in in pretty not the obviously we're pretty same the up order Siding allocating in the shown so where really. so file. for would pricing the And similar now. out much the I six outlook of OSB. place as last to And the market random the that's six that But on it's order

Michael Roxland

Great. [Indiscernible]

Brad Southern

be as managed that's answer yes, close. the it file, an I simple just the OSB order not to going controlling we're controls kind obviously as the of just situation can now. a order mean that I file is because I'm of – – mean, length it

that's surprising of for where time, order weeks So six that we've is shouldn't be it been the that whatever we're that managing file kind since worth.

Michael Roxland

all Makes good the appreciate of Bard. the sense. for I the luck year. No, the balance And color

Brad Southern

Thank you.

Operator

our John. is John John Tumazos Thank question question, Independent you from for next go ahead, [Operator of Instructions] your Very And Mike. Research Please LLC. Tumazos

John Tumazos

ago, $X,XXX measure they were few worked hard. for my bought taking other applications cost there hundred question. is than the that. that SmartSide to they house, that for prefinished, a car if implementation I'm improve your or enable the the $XX,XXX countertops Could They me the productivity there in install the improve installation technology. feet you that improve bathtub lasers that added, And the six you you talk which bit cost. XXXX would to on few mats granite a to phase a or the before train square efforts the installed It my is worked your And SmartSide, dollars I of through installers XX%, months more you I with. ad me potential productivity your And laser installed product? charge about value it the people of measured more the things customer XXXs. A and And the so installers versus might to in of crew which for realization maybe of it are more sales you to that of cost Thank pleased for pleasure is charge per just fixtures, good. had of that, since what and by hours, little to the matters in very the enable putting lot of precision people like use a about the of TV like SmartSide XX the floor it struck

Brad Southern

product installer certainly question all, to set of the hear testament to to contractors. I'm that a is putting with That a your of thank in We it and house. pleased first direction the kind you on of SmartSide for your work well, do focused. went is your actively well. John,

training experience and for in-person to it's various on it as mentioned, has for loyalty to about in the up have functional provide online we depth being John because We be installed. product once both to how programs efficiently, homeowner, that really beautiful and want where Siding we and well put them see, the our install

accessories of sure making enabled directed product is at for for opportunity that market on the contractor his a to him the of improving for of wall. the corners spin really a understand is have with like Siding it purposes pre-finished efficiency us step, mean, the to that of the those opportunity about dimensional sales launched utilize contractor couple install products is provide kind to that base when of think and our those one around the related increase our things so, But and last objective that of There that efficiency. it, process. concept if over most whole better the you step it's painting related the to labor to as and ultimately profitability as is the years, we labor install an that the far we've where enhancement then the of And R&R efficiently. to you eliminating do product is this and save as lot three efficiency, us can that the lower labor, allows cost contractor part marketing of an big I are both secondary

profit repair innovation product. and for improves observation around improvement, So, now. the into propositions and features you're that innovation dead-on. ideas really that remodel and playing sales attractive want supports continued turning I our in most we're of segment efficiency is our at And contractor that base one we of of of and that watching the value the and your to the get good those installed Siding service certainly product the being mean,

John Tumazos

on I the or an If your – so do for continue, order high could cost markup? Do product the the you of to your distributors it's customer? is installers of demand ordinate that one-tenth distributors fair are the you be think in realization for getting the think the of mill that installed

Brad Southern

believe. No, I don't

specialty, And profitability proud believe network. to of to I is providing fair are And complex that do have product contractor we focused distributor the ultimately more we with a But is partners model efficiently word, the specialty years really opportunities for that our have good I a business look, actively transactions. can think and don't centered on there upgraded you our to install were to decided you But base. that throughout over feel around have delivered trying that take that business want channel – – we in improving as way margin price on compelled by improve directly be profitability. out managing it so the any right your a is pricing. to no cost of enough to home and now our quoted. the profitability we control our that working We in to means given channel by the we

John Tumazos

let and Ian south everything you. the two months me Thank of And done after add me job the upgrade. Hurricane was ten passed miles held

Operator

Thank you so much for your John. questions,

Alan Haughie

Great hear safe. you that to guys are

Operator

Thank so much. you

John Tumazos

picture. Good

Operator

And ahead, for And is our RBC our you question Go Markets. here. Paul, up next next with we're setting live. from question are Capital Paul Quinn

Paul Quinn

Okay, thanks. Good guys. morning

if Just you a get When Houlton. the there can signing, question OSB, Line up on still run demand X right? not is for you

Brad Southern

OSB historically run OSB we that. at have we'll online, to have ability our system. other ability the also various We've and Paul, the then Houlton at one run mills with Yes in

able ultimate our is previous meet ago. that's to we we Certainly there grow haven't why that, if do the run it, to mean to maintain question all market probably handle far was we our Siding machine in pretty any as that that. in time demand immediately up And capacity the need to volume and maintain it it's system that last and to three run a the I as come since that to we've years the about ramp a And fixed was could COVID, now. as – into historically being not we ability that, done do there but OSB productivity efficiently do have cost OSB do able place. so coverage we've when be

Paul Quinn

Great. had Yes, you that flexibility. thought I

you the end capacity to of by and the in that able on ExpertFinish it to Like of ExpertFinish? XXXX, mentioned XXXX. Brad double then be it XX% are and does the double get the to you that XX% end by your percentage does of of again, you capacity? things On will of XXXX do those end get siding doubling you then the by What it two again of will terms

Brad Southern

us give would of time. that Yes, period that about XX% capacity over

Paul Quinn

then on any update just Okay. Entekra? And lastly

Brad Southern

that growth. continue in a given Paul, now so Solutions, we the our give platform opportunity Yes, Entekra is viewing but are optimize our longer big no Badesto, capacity we to update that Siding look as facility for Structural are and expansions where in right the with I'll to we

the also that term related for housing. of Some near to outlook

we're we're to So Alan in our able our improving on profitability given OSB to talked in feel investment spent OSB our Siding the is Entekra to into of has going the now Solutions continue demonstrate Structural OEE capital the returns, I by further work program. But like allocation facility. about, better

not very do Entekra us to that the but necessary model work to have term. the it providing about still for business long Badesto, in returns to optimize we So, seeing is we're excited be

Paul Quinn

enough. had. luck. I That's Fair all guys. Okay. of Best Thanks

Operator

I question. will for Aaron it Thank closing now over you for turn to comments. back very much, Paul, your Howald

Aaron Howald

Okay, XXXX. again you operator. of all joining soon. there. Stay us LP's thank forward to look thank and we'll And the discuss further safe to speaking With for everyone results questions for you third close quarter you no to the we’ll bring call with a

Operator

conference. for you your does in participation Thank today's This the program. conclude

now may You disconnect.

Louisiana-Pacific (LPX) 1 Nov 222022 Q3 Earnings call transcript