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LouisianaPacific Corp. Reports Operating Results (10-K)

February 29, 2012 | About:
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10qk

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LouisianaPacific Corp. (LPX) filed Annual Report for the period ended 2011-12-31.

Louisiana Pac has a market cap of $1.08 billion; its shares were traded at around $8.3 with and P/S ratio of 0.8.

Highlight of Business Operations:

Net sales in 2011 were $1.36 billion, a decrease of 2% from 2010 net sales of $1.38 billion. Net sales in 2010 as compared to 2009 were higher by 30%. Sales in 2011 were negatively impacted by decreases in OSB selling prices relative to 2010, and more positively impacted by increases in OSB selling prices relative to 2009.

Siding sales volumes increased in our SmartSide® siding line due to continued penetration in several key focus markets, including retail (primarily driven by increases in the repair and remodel markets) and sheds. Sales prices in our SmartSide® siding product line for 2011 as compared to 2010 increased due to sales price increase announced in the first quarter of 2011.

During 2011, we used $40.2 million of cash in operations as compared to generating $47.8 million of cash from operations in 2010. This change was related to increased operating losses, higher inventories and lower tax refunds. During 2011, we received tax refunds of $25.0 million (net of payments). Trade receivables are relatively flat between 2011 and 2010. As of December 31, 2011, our trade receivables balance was 99% current, which is comparable with prior years with no substantial changes in terms of sales. Non-trade receivables decreased by $1.6 million due to lower interest receivables due to principal payments received during 2011. Our trade accounts payable increased by $4.8 million from the prior year primarily due to the increases in inventory and our salary and wages payable declined by $7.4 million due to reduction in expected management incentive payouts. During 2011, we made $2.3 million in contingency payments and $12.9 million in warranty payments.

During 2010, we generated $47.8 million of cash from operations as compared to $60.8 million in 2009. The decrease in cash provided from operations was related to higher inventories and higher pension payments and lower tax refunds, as partially offset by lower operating losses. During 2010, we received tax refunds of $45.7 million (net of payments). Trade receivables increased by $8.8 million due to higher sales in December of 2010 as compared to 2009. As of December 31, 2010, our trade receivables balance was 99% current, which is comparable with prior years with no substantial changes in terms of sales. Non-trade receivables decreased by $1.8 million due to lower interest receivables due to payments received during 2010. Our accounts payable increased from the prior year primarily due to the increases in inventory as well as changes in our funding of our employee benefit programs. During 2010, we made $9.8 million in contingency payments and $14.6 million in warranty payments.

During 2009, we generated $60.8 million of cash from operations as compared to a use of cash of $142.5 million in 2008. The increase in cash provided by operations was related to an intense focus on cash generation as well as lower operating losses. During 2009, due to the depressed new construction market, we curtailed operating production schedules at many of our facilities and reduced inventories throughout our process which allowed us to reduce our inventories by $57.2 million. During 2009, we received tax refunds of $79.3 million (net of payments). Trade receivables increased by $20.0 million due to higher sales in December of 2009 as compared to 2008. As of December 31, 2009, our trade receivables balance was 99% current, which is comparable with prior years with no substantial changes in terms of sales. Our accounts payable increased from the prior year primarily due to the increases in interest payable associated with the debt issued in 2009 and accruals for management incentive programs, with minimal increases in trade payables. During the year, we made $12.9 million in contingency payments and $10.3 million in warranty payments.

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