Louisiana-Pacific Corporation (LPX) has reported a 433.98 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $55 million, or $0.38 a share in the quarter, compared with $10.30 million, or $0.07 a share for the same period last year. On an adjusted basis, net profit for the quarter was $48.40 million, when compared with $9.60 million in the last year period. Revenue during the quarter grew 21.07 percent to $610.90 million from $504.60 million in the previous year period. Gross margin for the quarter expanded 786 basis points over the previous year period to 25.52 percent. Total expenses were 88.10 percent of quarterly revenues, down from 96.25 percent for the same period last year. This has led to an improvement of 815 basis points in operating margin to 11.90 percent.
Operating income for the quarter was $72.70 million, compared with $18.90 million in the previous year period.
"LP had an outstanding first quarter led by higher OSB prices and a 16% volume increase in Siding,” said Curt Stevens, chief executive officer. “South America had solid results and EWP returned to profitability."
Operating cash flow turns positive
Louisiana-Pacific Corporation has generated cash of $20.80 million from operating activities during the quarter as against cash outgo of $4.90 million in the last year period. The company has spent $26 million cash to meet investing activities during the quarter as against cash outgo of $26.20 million in the last year period.
The company has spent $5.50 million cash to carry out financing activities during the quarter as against cash outgo of $1.90 million in the last year period.
Cash and cash equivalents stood at $649.50 million as on Mar. 31, 2017, up 60.69 percent or $245.30 million from $404.20 million on Mar. 31, 2016.
Working capital increases sharply
Louisiana-Pacific Corporation has recorded an increase in the working capital over the last year. It stood at $858.50 million as at Mar. 31, 2017, up 32.02 percent or $208.20 million from $650.30 million on Mar. 31, 2016. Current ratio was at 4.98 as on Mar. 31, 2017, up from 4.93 on Mar. 31, 2016.
Days sales outstanding went down to 18 days for the quarter compared with 22 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 52 days for the previous year period.
Debt comes down significantly
Louisiana-Pacific Corporation has recorded a decline in total debt over the last one year. It stood at $376.20 million as on Mar. 31, 2017, down 50.10 percent or $377.70 million from $753.90 million on Mar. 31, 2016. Total debt was 18.08 percent of total assets as on Mar. 31, 2017, compared with 34.03 percent on Mar. 31, 2016. Debt to equity ratio was at 0.30 as on Mar. 31, 2017, down from 0.72 as on Mar. 31, 2016. Interest coverage ratio improved to 14.54 for the quarter from 2.36 for the same period last year.
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