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Everchem Updates
VOLUME XXI
September 14, 2023
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November 3, 2022
BROCK LEWIS OBITUARY
Brock Lewis (30) of Millington, NJ passed away on OCT 27, 2022 as a result of a motorcycle accident. He was surrounded by family. He was born and raised in Millington and a graduate of Watching Hills High School. He was finishing his education at RVCC on the Dean’s List.
He was employed by Everchem as a Chemical Sales representative. Brock was a member of the Stirling Elks.
Brock loved to boat, fish, ski, and snowboard. He played hockey and was a referee. He enjoyed being in Naples, FL and Tupper Lake in the Adirondack Mountains.
He is survived by his parents, Bill and Jill Lewis, and brother Troy Lewis. Grandmothers: Dee Huddilston, Mary Kennedy (John), and Dona Lewis. He leaves behind many Aunts, Uncles, cousins, and his girlfriend Leah.
Brock was predeceased by his Grandfathers: Bob Huddilston, William Lewis, and Charles Pienkowski.
A celebration Service will be held at the Shrine of Saint Joseph on SAT, NOV 5th at 9:30am. (1050 Long Hill Rd Stirling, NJ)
Special Thanks to the ICU nurses and staff at Morristown Memorial Hospital for their extraordinary care.
In lieu of flowers, donations can be made to the Stirling Elks Special Children’s fund for his Best friend’s daughter, Serenity. Checks can be sent to Stirling Elks lodge 2392 1138 Valley Rd Stirling, NJ 07980 Attn: Brock for Serenity
Arrangements are under the direction of the Valley memorial Funeral Home 1012 Valley Rd., Gillette, NJ. For more information and online condolences visit valleymemorialfuneralhome.net
Published by Valley Memorial Funeral Home on Nov. 1, 2022.
https://www.legacy.com/us/obituaries/name/brock-lewis-obituary?id=36959109
November 2, 2022
LP Building Solutions Reports Third Quarter of 2022 Results, Provides Capital Allocation Update, and Q4 2022 Outlook
News provided by LP Building Solutions
Nov 01, 2022, 06:00 ET
NASHVILLE, Tenn., Nov. 1, 2022 /PRNewswire/ — Louisiana-Pacific Corporation (LP) (NYSE: LPX) today reported its financial results for the three and nine months ended September 30, 2022.
Key Highlights for the Third Quarter of 2022, Compared to the Third Quarter of the Prior Year
- Net sales from continuing operations decreased by 16% to $852 million
- Siding Solutions net sales increased by 27% to $393 million
- OSB net sales decreased by 35% to $388 million
- Income from continuing operations attributed to LP decreased by $203 million to $129 million ($1.74 per diluted share)
- Adjusted EBITDA(1) was $200 million, a decrease of $281 million
- Adjusted Diluted EPS(1) was $1.72 per share, a decrease of $1.80 per share
- Cash provided by operating activities was $195 million
| (1) | This is a non-GAAP financial measure. See “Use of Non-GAAP Information”, “Reconciliation of Net Income to Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted Diluted EPS” below. |
Capital Expansion Strategy Update
- After Sagola, Michigan, the next SmartSide capacity addition will be the expansion of the Houlton, Maine facility, with production currently estimated to begin in mid to late 2024
- In addition to ongoing expansion projects at existing facilities, LP is planning to add ExpertFinish® capacity at a new facility to be built near Spokane, Washington, with production there estimated to begin in late 2024
Capital Allocation Update
- Received $217 million from the Engineered Wood Products (EWP) sale, resulting in a pre-tax gain of $118 million
- For the quarter, LP paid $325 million to repurchase 5.6 million of its common shares, leaving 71.7 million common shares outstanding at September 30, 2022
- Paid $86 million for capital expenditures during the third quarter
- Paid $16 million in cash dividends during the third quarter
- Cash and cash equivalents of $482 million as of September 30, 2022
- Declared a quarterly cash dividend of $0.22 per share
“Q3 of 2022 was another record quarter for LP’s Siding segment, which saw 27% sales growth with 9% higher volume and 16% higher prices than last year,” said Brad Southern, Chair and Chief Executive Officer of LP. “New residential construction appears to be slowing, and OSB prices have stabilized at a more historically normal level. However, demand for SmartSide siding remains strong, especially in repair & remodeling applications. LP is investing in long-term growth, including expanding the Houlton, Maine siding facility and plans to add new ExpertFinish capacity in Washington.”
Third Quarter 2022 Highlights
Net sales for the third quarter of 2022 decreased year-over-year by $166 million (or 16%). This included a decrease in OSB revenue of $212 million (or 35%, due to 39% lower prices and 5% higher volume) partially offset by Siding Solutions revenue growth of $83 million (or 27%, due to 16% higher prices and 9% higher volume).
Income from continuing operations attributed to LP for the third quarter of 2022 decreased year-over-year by $203 million (or 61%) to $129 million, or $1.74 per diluted share. This reflects a $281 million decrease in Adjusted EBITDA and a decrease in the provision for income tax of $67 million driven by lower pre-tax income in the current year.
Income from discontinued operations for the third quarter of 2022 increased year-over-year by $64 million to $97 million, or $1.31 per diluted share, primarily due to the gain on the sale of EWP, net of income taxes.
First Nine Months of 2022 Highlights
Net sales for the first nine months of 2022 increased year-over-year by $69 million (or 2%). This included Siding Solutions growth of $199 million (or 23%, primarily driven by 14% higher prices and 8% higher volumes). OSB revenue decreased by $112 million (14% lower OSB prices on 9% higher volumes) .
Income from continuing operations attributed to LP for the first nine months of 2022 decreased year-over-year by $237 million (or 21%) to $898 million, or $11.16 per diluted share. The decrease primarily reflects a $311 million decrease in Adjusted EBITDA, $15 million of insurance recoveries, and a $66 million decrease in the provision for income tax driven by lower pre-tax income in the current year.
Income from discontinued operations for the first nine months of 2022 increased year-over-year by $149 million to $196 million, or $2.43 per diluted share, primarily due to the gain on the sale of EWP, net of income taxes, and the first quarter of 2022 sale of LP’s 50% equity interest in two joint ventures that produce I-joists.
Oriented Strand Board (OSB)
The OSB segment manufactures and distributes OSB structural panel products including the value-added OSB portfolio known as LP Structural Solutions (LP® TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, and LP® FlameBlock® Fire-Rated Sheathing) and LP® TopNotch® Sub-Flooring. OSB is manufactured using wood strands arranged in layers and bonded with resins.
Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||
| Net sales | $ 388 | $ 600 | (35) % | $ 1,805 | $ 1,917 | (6) % | |||||
| Adjusted EBITDA | 113 | 381 | (70) % | 1,021 | 1,300 | (21) % |
| Three Months Ended September 30, 2022 versus 2021 | Nine Months Ended September 30, 2022 versus 2021 | ||||||
| Average Net Selling Price | Unit Shipments | Average Net Selling Price | Unit Shipments | ||||
| OSB – Structural Solutions | (39) % | 10 % | (11) % | 23 % | |||
| OSB – Commodity | (39) % | 2 % | (18) % | (2) % |
OSB average net selling prices decreased year-over-year by 39% on 5% higher OSB sales volume for the three months ended September 30, 2022, resulting in a 35% decrease in net sales. OSB average net selling prices decreased year-over-year by 14% on 9% higher OSB sales volume for the nine months ended September 30, 2022, resulting in a 6% decrease in net sales.
The year-over-year decrease in Adjusted EBITDA of $268 million for the three months ended September 30, 2022 reflects $252 million from lower prices, $25 million of increased raw material and wage inflation, and $10 million facility maintenance costs, partially offset by $29 million from higher sales volume and the positive incremental margin generated by Structural Solutions products compared to commodity OSB products. The year-over-year decrease in Adjusted EBITDA of $279 million for the nine months ended September 30, 2022 reflects $325 million from lower prices, $68 million of increased raw material and wage inflation, and $12 million facility maintenance costs, offset partially by $140 million from higher sales volume.
Q4 2022 Outlook and 2022 Capital Expenditure Guidance
Our guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under “Forward-Looking Statements.”
- Siding Solutions fourth quarter of 2022 year-over-year revenue growth expected to be greater than 30%
- OSB revenue in the fourth quarter of 2022 expected to be sequentially lower than the third quarter of 2022 by approximately 30%, assuming that OSB prices published by Random Lengths remain unchanged from those published on October 28, 2022. This is an assumption for modeling purposes and not a price forecast
- Adjusted EBITDA(2) for the fourth quarter of 2022 expected to be approximately $100 million
- Siding Solutions full-year 2022 expected year-over-year revenue growth continues to be approximately 24%
- Given our current outlook, capital expenditures for 2022 are expected to be in the range of $400 million to $420 million, including $190 million to $195 million for the mill conversions, $120 million to $130 million for sustaining maintenance, and $90 million to $95 million for other strategic growth projects
November 2, 2022
LP Building Solutions Reports Third Quarter of 2022 Results, Provides Capital Allocation Update, and Q4 2022 Outlook
News provided by LP Building Solutions
Nov 01, 2022, 06:00 ET
NASHVILLE, Tenn., Nov. 1, 2022 /PRNewswire/ — Louisiana-Pacific Corporation (LP) (NYSE: LPX) today reported its financial results for the three and nine months ended September 30, 2022.
Key Highlights for the Third Quarter of 2022, Compared to the Third Quarter of the Prior Year
- Net sales from continuing operations decreased by 16% to $852 million
- Siding Solutions net sales increased by 27% to $393 million
- OSB net sales decreased by 35% to $388 million
- Income from continuing operations attributed to LP decreased by $203 million to $129 million ($1.74 per diluted share)
- Adjusted EBITDA(1) was $200 million, a decrease of $281 million
- Adjusted Diluted EPS(1) was $1.72 per share, a decrease of $1.80 per share
- Cash provided by operating activities was $195 million
| (1) | This is a non-GAAP financial measure. See “Use of Non-GAAP Information”, “Reconciliation of Net Income to Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income, and Non-GAAP Adjusted Diluted EPS” below. |
Capital Expansion Strategy Update
- After Sagola, Michigan, the next SmartSide capacity addition will be the expansion of the Houlton, Maine facility, with production currently estimated to begin in mid to late 2024
- In addition to ongoing expansion projects at existing facilities, LP is planning to add ExpertFinish® capacity at a new facility to be built near Spokane, Washington, with production there estimated to begin in late 2024
Capital Allocation Update
- Received $217 million from the Engineered Wood Products (EWP) sale, resulting in a pre-tax gain of $118 million
- For the quarter, LP paid $325 million to repurchase 5.6 million of its common shares, leaving 71.7 million common shares outstanding at September 30, 2022
- Paid $86 million for capital expenditures during the third quarter
- Paid $16 million in cash dividends during the third quarter
- Cash and cash equivalents of $482 million as of September 30, 2022
- Declared a quarterly cash dividend of $0.22 per share
“Q3 of 2022 was another record quarter for LP’s Siding segment, which saw 27% sales growth with 9% higher volume and 16% higher prices than last year,” said Brad Southern, Chair and Chief Executive Officer of LP. “New residential construction appears to be slowing, and OSB prices have stabilized at a more historically normal level. However, demand for SmartSide siding remains strong, especially in repair & remodeling applications. LP is investing in long-term growth, including expanding the Houlton, Maine siding facility and plans to add new ExpertFinish capacity in Washington.”
Third Quarter 2022 Highlights
Net sales for the third quarter of 2022 decreased year-over-year by $166 million (or 16%). This included a decrease in OSB revenue of $212 million (or 35%, due to 39% lower prices and 5% higher volume) partially offset by Siding Solutions revenue growth of $83 million (or 27%, due to 16% higher prices and 9% higher volume).
Income from continuing operations attributed to LP for the third quarter of 2022 decreased year-over-year by $203 million (or 61%) to $129 million, or $1.74 per diluted share. This reflects a $281 million decrease in Adjusted EBITDA and a decrease in the provision for income tax of $67 million driven by lower pre-tax income in the current year.
Income from discontinued operations for the third quarter of 2022 increased year-over-year by $64 million to $97 million, or $1.31 per diluted share, primarily due to the gain on the sale of EWP, net of income taxes.
First Nine Months of 2022 Highlights
Net sales for the first nine months of 2022 increased year-over-year by $69 million (or 2%). This included Siding Solutions growth of $199 million (or 23%, primarily driven by 14% higher prices and 8% higher volumes). OSB revenue decreased by $112 million (14% lower OSB prices on 9% higher volumes) .
Income from continuing operations attributed to LP for the first nine months of 2022 decreased year-over-year by $237 million (or 21%) to $898 million, or $11.16 per diluted share. The decrease primarily reflects a $311 million decrease in Adjusted EBITDA, $15 million of insurance recoveries, and a $66 million decrease in the provision for income tax driven by lower pre-tax income in the current year.
Income from discontinued operations for the first nine months of 2022 increased year-over-year by $149 million to $196 million, or $2.43 per diluted share, primarily due to the gain on the sale of EWP, net of income taxes, and the first quarter of 2022 sale of LP’s 50% equity interest in two joint ventures that produce I-joists.
Oriented Strand Board (OSB)
The OSB segment manufactures and distributes OSB structural panel products including the value-added OSB portfolio known as LP Structural Solutions (LP® TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, and LP® FlameBlock® Fire-Rated Sheathing) and LP® TopNotch® Sub-Flooring. OSB is manufactured using wood strands arranged in layers and bonded with resins.
Segment sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||
| Net sales | $ 388 | $ 600 | (35) % | $ 1,805 | $ 1,917 | (6) % | |||||
| Adjusted EBITDA | 113 | 381 | (70) % | 1,021 | 1,300 | (21) % |
| Three Months Ended September 30, 2022 versus 2021 | Nine Months Ended September 30, 2022 versus 2021 | ||||||
| Average Net Selling Price | Unit Shipments | Average Net Selling Price | Unit Shipments | ||||
| OSB – Structural Solutions | (39) % | 10 % | (11) % | 23 % | |||
| OSB – Commodity | (39) % | 2 % | (18) % | (2) % |
OSB average net selling prices decreased year-over-year by 39% on 5% higher OSB sales volume for the three months ended September 30, 2022, resulting in a 35% decrease in net sales. OSB average net selling prices decreased year-over-year by 14% on 9% higher OSB sales volume for the nine months ended September 30, 2022, resulting in a 6% decrease in net sales.
The year-over-year decrease in Adjusted EBITDA of $268 million for the three months ended September 30, 2022 reflects $252 million from lower prices, $25 million of increased raw material and wage inflation, and $10 million facility maintenance costs, partially offset by $29 million from higher sales volume and the positive incremental margin generated by Structural Solutions products compared to commodity OSB products. The year-over-year decrease in Adjusted EBITDA of $279 million for the nine months ended September 30, 2022 reflects $325 million from lower prices, $68 million of increased raw material and wage inflation, and $12 million facility maintenance costs, offset partially by $140 million from higher sales volume.
Q4 2022 Outlook and 2022 Capital Expenditure Guidance
Our guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under “Forward-Looking Statements.”
- Siding Solutions fourth quarter of 2022 year-over-year revenue growth expected to be greater than 30%
- OSB revenue in the fourth quarter of 2022 expected to be sequentially lower than the third quarter of 2022 by approximately 30%, assuming that OSB prices published by Random Lengths remain unchanged from those published on October 28, 2022. This is an assumption for modeling purposes and not a price forecast
- Adjusted EBITDA(2) for the fourth quarter of 2022 expected to be approximately $100 million
- Siding Solutions full-year 2022 expected year-over-year revenue growth continues to be approximately 24%
- Given our current outlook, capital expenditures for 2022 are expected to be in the range of $400 million to $420 million, including $190 million to $195 million for the mill conversions, $120 million to $130 million for sustaining maintenance, and $90 million to $95 million for other strategic growth projects
November 1, 2022
LEGGETT & PLATT REPORTS 3Q RESULTS
Oct. 31, 2022 4:10 PM ETLeggett & Platt, Incorporated (LEG)
Q3: 2022-10-31 Earnings Summary
EPS of $0.52 beats by $0.03 | Revenue of $1.29B (-1.88% Y/Y) beats by $59.65M
CARTHAGE, Mo., Oct. 31, 2022 /PRNewswire/ —
- 3Q sales were $1.29 billion, a 2% decrease vs 3Q21
- 3Q EBIT of $113 million, down $31 million vs 3Q21
- 3Q EPS of $.52, a decrease of $.19 vs 3Q21
- 2022 guidance unchanged from October 10 announcement: sales of $5.1–$5.2 billion; EPS of $2.30–$2.45
Diversified manufacturer Leggett & Platt (LEG) reported third quarter sales of $1.29 billion, a 2% decrease versus third quarter last year.
- Organic sales1 were down 3%
- Volume was down 8%, primarily from continued demand softness in residential end markets, partially offset by growth in automotive and industrial end markets
- Raw material-related selling price increases added 8% to sales
- Currency impact decreased sales 3%
- Previously announced Hydraulic Cylinders and Textile acquisitions completed in August, net of small divestitures, added 1% to sales
Third quarter EBIT was $113 million, down $31 million from third quarter 2021.
- EBIT decreased primarily from lower volume, lower overhead absorption from reduced production, and operational inefficiencies in Specialty Foam, partially offset by metal margin expansion
- EBIT margin was 8.7%, down from 10.9% in the third quarter of 2021
Third quarter EPS was $.52. EPS decreased $.19 versus third quarter 2021 primarily reflecting lower EBIT.
CEO COMMENTS
President and CEO Mitch Dolloff commented, “The current global economic environment and its effect on the consumer negatively impacted our third quarter results. As anticipated, we continue to experience demand and margin recovery in our Specialized Products segment. The U.S. bedding market remains fairly stable but at relatively weak levels, and we began to see slowing in other markets such as European bedding, home furniture, work furniture, and steel. As a result of these lower demand levels and the increasingly challenging macroeconomic environment, we lowered our full year guidance on October 10th.
“Third quarter earnings per share were slightly better than expected primarily due to incentive compensation adjustments. At the midpoint of guidance, fourth quarter is now expected to be slightly lower than third quarter primarily due to further reductions in steel rod production in response to the slowing steel market.
“We continue to focus on things we can control and are taking action to mitigate the impact of these challenges by aligning costs, production levels, and inventory with demand; evaluating near-term opportunities with our customers and working with them on new product developments; and continuing to build out our existing businesses through acquisitions. Our strong balance sheet and cash flow give us confidence in our ability to navigate challenging markets while investing in long-term opportunities.”
November 1, 2022
LEGGETT & PLATT REPORTS 3Q RESULTS
Oct. 31, 2022 4:10 PM ETLeggett & Platt, Incorporated (LEG)
Q3: 2022-10-31 Earnings Summary
EPS of $0.52 beats by $0.03 | Revenue of $1.29B (-1.88% Y/Y) beats by $59.65M
CARTHAGE, Mo., Oct. 31, 2022 /PRNewswire/ —
- 3Q sales were $1.29 billion, a 2% decrease vs 3Q21
- 3Q EBIT of $113 million, down $31 million vs 3Q21
- 3Q EPS of $.52, a decrease of $.19 vs 3Q21
- 2022 guidance unchanged from October 10 announcement: sales of $5.1–$5.2 billion; EPS of $2.30–$2.45
Diversified manufacturer Leggett & Platt (LEG) reported third quarter sales of $1.29 billion, a 2% decrease versus third quarter last year.
- Organic sales1 were down 3%
- Volume was down 8%, primarily from continued demand softness in residential end markets, partially offset by growth in automotive and industrial end markets
- Raw material-related selling price increases added 8% to sales
- Currency impact decreased sales 3%
- Previously announced Hydraulic Cylinders and Textile acquisitions completed in August, net of small divestitures, added 1% to sales
Third quarter EBIT was $113 million, down $31 million from third quarter 2021.
- EBIT decreased primarily from lower volume, lower overhead absorption from reduced production, and operational inefficiencies in Specialty Foam, partially offset by metal margin expansion
- EBIT margin was 8.7%, down from 10.9% in the third quarter of 2021
Third quarter EPS was $.52. EPS decreased $.19 versus third quarter 2021 primarily reflecting lower EBIT.
CEO COMMENTS
President and CEO Mitch Dolloff commented, “The current global economic environment and its effect on the consumer negatively impacted our third quarter results. As anticipated, we continue to experience demand and margin recovery in our Specialized Products segment. The U.S. bedding market remains fairly stable but at relatively weak levels, and we began to see slowing in other markets such as European bedding, home furniture, work furniture, and steel. As a result of these lower demand levels and the increasingly challenging macroeconomic environment, we lowered our full year guidance on October 10th.
“Third quarter earnings per share were slightly better than expected primarily due to incentive compensation adjustments. At the midpoint of guidance, fourth quarter is now expected to be slightly lower than third quarter primarily due to further reductions in steel rod production in response to the slowing steel market.
“We continue to focus on things we can control and are taking action to mitigate the impact of these challenges by aligning costs, production levels, and inventory with demand; evaluating near-term opportunities with our customers and working with them on new product developments; and continuing to build out our existing businesses through acquisitions. Our strong balance sheet and cash flow give us confidence in our ability to navigate challenging markets while investing in long-term opportunities.”
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