Louisiana-Pacific (LPX) 3 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Louisiana-Pacific Corporation Q3 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I'd now like to introduce your host for today's conference call, Mr. Aaron Howald, Director of Investor Relations.

begin. may You

My and today us Kevin, Chief third everyone. you Haughie, Investor Executive QX Thank of I'm Chief Howald, Thank Director LP's Brad LP's to good Officer, Southern discuss Financial joining of outlook. our as today as I'm the and is LP's for respectively. Aaron XXXX and joined you, Relations. well morning, name by results Officer quarter Alan for and

hosting done a this have the in addition we are webcast we to simultaneous As conference past, in call.

morning's we We have to presentation uploaded a will which refer during this comments.

filed this information. also with some We additional our X-K morning

the of All financial today's the them discussion. on of by than are everyone has the provide IR appendix Brad. our incorporate call and accompanying I The this The reference. call about turn over presentation Form Slides to the metrics website reconciliations supplemented reading during X-K X morning's and on detail. presentation filing. Rather X And now non-GAAP herein that statements, www.investor.lpcorp.com. these forward-looking of are want of remind I'll materials also I to more by statements available those use necessary

many joining ago morning, and the then all Aaron, you since starting spoke a changed mostly transformation. then, on this focus moving our at with I'll market you for thank We morning. with our Thanks, Investor This to of month us Day. what has

of of by low. also and record transformation Compared XX%, grew continued was volume our record This strength multi-year is cash showing produced XXXX, flows. for an is course, significant a prices. And X% in of higher higher XX% SmartSide to OSB quarter revenue. of aftermarket prices volume Cost and ahead all-time production Our with was QX SmartSide revenue pace.

and you was historic $X.XX adjusted in in quarter inventory comfortably for for per at XXXX, the starts single-family the builder QX than diluted and in XXXX sure a share. There Mortgage are most and in As we all-time of months morning, housing this finished at on starts ahead at EBITDA I'm guidance in $XXX creating sentiment US supply measured than is since saw any X-K million the quarter we any are quarter more released highs, low. the and our is of existing in as a of result, recent since strong rates demand earnings lows, our an all-time other percentage products. higher homes of the in

construction, LP are All which of indicators leading these positioned. is continued well strong new in strength for

multi-family positive building times ongoing seeing are evidence of LP from areas. This home stabilized to rural OSB also Investor We much in Random prices more have shift concerns for on away is flat preference cities Since as a single-family Lengths' continued since average very urban prices about from single-family to OSB home. Day, upside our weeks. multi-family intervening as and and X in with

supply approaching prices While relative be equilibrium. high eventually stability they normalize surely demand, as will OSB unusually may term a of sign near and remain and price

and managing SmartSide goals. with value. we'll shows to long-term toward that We continue OSB progress drive growing transformation are X strategic and transformation our our confident our efficiency of strategy agility, Slide

EBITDA of is incremental million impact target XXXX. Our by $XXX

in QX. We of progress pace are and well our ahead accelerated

followed the been We SmartSide has OSB in factor, have XXXX. of achieved three SmartSide closely in more we The contributing EBITDA sourcing. by all largest XXXX did gains single impact OEE quarters is of through than strategic growth and

ahead almost As for to a our with achieved, XXXX OSB benefits These of year we prices. result, are $XXX cumulative targets. million normalized a improvements pace hit in are

by a current way growth inflated efficiency sustainable as no and Our strategic transformation is prices. driven OSB by improvements,

Investor announced the Day. results a Alan gains strategic strategy repurchases at sustainable for as produced capital a detailed our you transformation, of last by allocation few well our minutes. give as update in our the will a we've more Given share quarters, of two resumption

by now, of supply types is alternate and steps in has precursor curtailed of shift Due sources weeks. resin may production facility of have suppliers and Strand where by have chemicals. to As MDI at the production Delta, possible. you secure Maine resin for we taking our four the EWP heard supply, of different lack to Laminated to Houlton, of Lumber in impacts LP US been hurricanes Laura constrained

We have We teams are recovery logistics housing fluid impacts with market continued working performance is impact The the The agility and to SmartSide to or the of of our was out production result do not of customers anticipate disruption. LP's But the market of the which currently disruption. prices operations situation and merely with minimize are chain, this OSB. proud managed high. through strong this. this supply OSB and not I'm

the many customers Our our the threaten employees' in helped teams adapted overcame in do and quarter. our to our Multiple quarter and communities challenges the and mills same. hurricanes

of helped with through truck and pandemic. inventories, challenges demand. and by Our COVID-XX times we're course, ongoing work shrinking still tightening customers' all availability, teams dealing our the of lead unprecedented also increased rail And

our near of mills are Some located COVID hotspots.

a We thankfully, in cases. the uptick of number all employees impacted recovering. or employees recovered But slight have are have seen

COVID-XX safeguard other. Our each to necessary teams minimize take of themselves the precautions to continue and spread and

our as and mill our on to have these Despite for have strategy. caused will long We executed necessary and vendors these any to precautions by we relentlessly closures customers outbreaks keep employees, challenges, as COVID-XX safe. we maintain yet

are ongoing of generate Structural high XX%, sustainable. lots quarter, an course, gains cash. $XX and in growth of Solutions, Of Both, SmartSide prices additional all efficiency OSB the million growth which in

by Our much results driven more prices. OSB than high were

had improvements, our flat of result given EBITDA QX that if still been efficiency last year, year, would of prices initiatives. our be nearly and as double efficiency growth OSB growth a to last and even In fact, of

staying will for call more outstanding adaptability to on And your record While of determination the we in while safe. LP's Alan the before celebrate that, a and by about our Haughie results take I'm year, I details challenging that results, inspired together, we over we grateful results questions. working employees with very and achieved turn

good Thanks, and everyone. Brad, morning,

which prices, OSB CanExel to million, us The growth brings $XX have of repair detail reduction LP's As EBITDA revenue the related Brad the overall $XX alone. the Investor million. said, $X recovery which And strategic a performance the result by if mentioned an contributed added the provided million impact, continued speed partly markets the But remaining SmartSide The those capital transformation growth of growth quarter Day. for guidance of a EBITDA, This morning, aspect results, update EBITDA, moment million housing and we to from I'll strategic everything fiber accelerated. out just remodel else every a EBITDA million, company's offer $XXX the is on has I of on and the million fiber and allocation It increased is quarter. include to reduced quarter. $XXX exceeded due view total fourth prices that not insight and $XXX by strategy, and you million XXXX XXXX. higher some SmartSide million of forward a the back in million SmartSide while $XX ago. of revenue. we million the quarter increased into price elements including is believe impressive offset exit to revenue in revenue, $XX $XX Slide of we growth is roll OSB $XX highlighting of X increase, characterize by the summarized third with Starting then OSB our EBITDA, and

OSB easily while would in our it of price point So portfolio. OSB things before EBITDA the almost then move the all, put admittedly if everything on. value current to being million. not else rigorously equal, difference other our but to One cash in prices prices powerful last repeat of, had and OSB point is $XX And the high the this climate, doubled have point and between lost creation all long-term it in perspective, at this on demonstrates risen slide, almost the I generation

Our shows and South net the they million, P&L increased and $X had quarter, respectively. million an compared American But quarter to by business by million XXXX. $XX revenue currency $X currency absent million. increased third $X EBITDA fluctuations, Slide X of movements, outstanding

although price and the As of the was I volume related, said, revenue mix. is $XXX majority in million increase the remainder

fell reflects performance control. general OEE, cost X% outstanding on sourcing and that fact sales cost million, by the So or $XX savings of

Additionally, cumulative year million that's SG&A from third $X SmartSide XX% Slide X EBITDA of for revenue Income net in adjusted resulting million operations million, by impact were was margin by The $XXX better of reaching transformation or diluted $X.XX million. XX%, reduced the of $XX income Siding. impressive of share XX%. growth an and and expenses revenue last million, $X.XX. of was by per up incremental $XXX waterfall quarter driven $XXX earnings than shows

segment its we're third in record average OSB sustain us support today company's as are presentation This entirely quarter XXXX, of here we're and when a not the price prices, grow enjoying not surprisingly a mill growing segment is flat like, is has versus the for obvious XX the earning dividend. theme a This returns and it return is Lengths' OSB it confidence conversion, Siding when last The generation Random ability at was only prices XX% SmartSide in is a of to but the higher investments the can looks its reflective to marketing year by for we But for point more the the then and OSB Slide when similar selling on year-over-year profitably any the played from if throes dominated past. running what Not from this part. hence presented of in large impact. EBITDA and simpler our well below OSB power as of cash the in segment we not average, cycle alone, waterfall, price time of creation, the value higher the out. cleaner, than gives a SmartSide. Now, margin is almost

of $XX EBITDA back lower more Beyond pricing, a and impressive high on million further was a improvement, of mix the products. the all richer volumes there value-added of

including for $XXX second million, in drive creating So which long-term on value operating Slide regardless to quarter business quarter. Note flow we're a brings $XX for this cash the OSB that Structural XXXX. from quarter, is continuing and through growth taxes, cash efficiency, third relentless compared million the us was catch-up a cash to paid Which flow Solutions prices. XX, million the we in of transform $XX to in

allocation payments buying cash execute million addition million course, from resumed late buying in shareholders strategy, Accordingly, the cash. to $XX to third our To of capital million cash XX% shares back quarter, the expenditures capital making $XXX required free ended shares. of We dividend strategic operations our in significant remains in at excess in least in unchanged. spent $XX the given return Our of flow quarter and back generation, and quarter, we in with transformation. to

$XXX of spent and have we expect million of today, complete generation our balance million strong of for given share by year. end our share authorization quarter, remaining repurchases. we the the cash expectations As for And the authorization repurchases $XXX for Board sheet to fourth the of our

fourth the broader So Election those surrounds, let's COVID, the economy quarter and Much underway speak, cover uncertainties US we housing. expectations. as still even

us our the to some However, visibility provide quarter into gives order files guidance. enough limited

fourth EBITDA sudden to Subject than a third We quarter third. for capital million, million should the within million the quarter. as SmartSide in third. little the no likely spending expect the and this Assuming the these XX%. compared the typical steep plan in contrast $XX drop, $XX have third for of higher average like be assumptions, since the to look of events, aggregate result prices circumstances OSB quarter quarter be communicated. expected fourth neighborhood growth do about unforeseen to to steady growth to would year slowdown, in in previously should of heavily the quarter is be see projects fourth XX% revenue the resulting so, to in year we over permit, to levels. in point year-over-year. still about revenue and spend will fourth held more seasonal SmartSide bringing a At the the quarter lot full in steady Day, prices the absent climb $XX Investor this on OSB the the If

the said, our million. year of transformation strategic year, through goals. by a of Brad $XXX quarter of of As impact have cumulative the relative we we're achieved ahead of XXXX We this $XXX almost impact targeted million pace third a to EBITDA end cumulative and

purely a the quarter outlined. fourth aspects it's just pan out, I've as So operational of

in since and to SmartSide growth if other by products in overshadowed historic its at we OSB that by prices of raw clouded Siding transformation or target the low was revenue OSB expect And the the with profitability and We it's OSB the the And to OSB doubt, of OSB apply avoidance routinely the million from $XXX year. of hit only let costs. material the trajectory, have impacts in realization no third that reiterate was me prices way quarter But segment. that end in SmartSide benefit quarters price be for higher these high, generates would hidden prices. these the puts talk have by the prices, volume segment segment ascribe OSB context, enough to SmartSide record million. all-time been at of to OSB that impressive revenues in cash LP's we realizations, of more And an often been Earlier prices that it alone, sure, business. be outstanding there quarter XXXX, LP's flows current third segment OSB and quarter volumes situation this $XXX where fact the to the were X would high tempting value about and

harder the SmartSide very margins, story, it's With incredible $X plain in much it's take and your harder happy in with hide So to billion we'll questions. high and getting be growth to now side. approaches revenue and this stable hiding that,

first the Inc. Instructions] Our Connelly of question Stephens comes line [Operator Mark from

open. is line Your

is John Rider Mark. morning. This for Good on

correctly, assets. acquisition note, capital? recently, with building balance shares acquire the working pros be for of in a and is we your operation clearly could related a one-third that a your And if that priority, it strategic are purpose-built to of How your while a against going the of it and ultimately like own of to So prefinishers? more way probably that on siding is and sales? to you've does end network take And market What cons said a you cost? and standardized that sort said almost that do prefinished up to mean of you hodgepodge prefinishing remember -- you what

try miss to -- those correct them of John, there. in some I cover But all. if do Okay. to I'll I me, sub-questions want

on update me now. just let provide So are an where we

our have two which prefinished able facilities small equipment, operations, Carolina. at a of of of convert. in in relatively Roaring capital was which as far millions a modular the facility these We of investment, standpoint expandable be acquired, as in to are three kind one a homegrown dollars North single-digit, were They're River, also From on way. to

and Missouri which capital you things need grow basically in Siding do Carolina. will -- We a relates we growth, again low North OSB the see is placed that it St we as we're very as -- business, add prefinishing need of continued Green businesses. pipeline, when So geographies Bay, what River, Roaring the Louis, the and scheme in today to with and Wisconsin,

couple the or the the business another so constraint that as of place facility production to were a we our in years. possibility is two. prefinished capability, so or grow capacity in next is build not we build on we over there orders, And out in acquire certainly have or the ability But place partnerships eastern that

capital, Now from efficient a or as question. capital great in have arrangements our And is as SmartSide. significant had, it we relates to a It's currently departure relates prefinished, to prefinishing it working have working

in both offer this, sufficient your market so at if Just lab that in offered needs And it good XX-ish XX and colors. think there be in be channel colors, skew locations prime inventory now you order used customer important, the the accommodate in to servicing to only real it those in about is service. is prime, XX our to

build to distributor rely load working internally require we distributor be for ad, it our partners on serve Now a able to carry do on the us base. but does to our capital

part there question, of I then, that that answer. was didn't another And Okay.

no. No,

do last pros no the of How cons one. -- balance you own building think just one versus acquisition and business? actually prefinishing your homegrown I started,

Yes, great question.

where the look, hardboard -- the a of we homegrown was history Carolina, So we had a the one acquire, doing had is one that did mill a not that North prefinishing.

most I say, would rather rather was mill on it us SmartSide bid other to incorporate not market. location. prefinishing end to it's more logical there. necessarily be areas optimal in We So for for us

than for biased more to would as -- scenario, as decisions. at being both acquisition, So both growth of best probably and build to would competency we'll make far acquisition buying But each I cases there's future say, the toward are the homegrown, to I'm look a acquisition future, out one the saying an you're having a strategy homegrown, hide leaning versus internally. I forecasting the than the

get benefited us into So from we have to business. did that acquisitions two we the the

you. over. I'll turn it Okay. And Thank

John. you, Thank

you. Thank

next Babcock Our John of comes of from America. Bank question

Your question, please?

starting Good talk the substitution OSB, if now? cap seeing of wondering morning with in where you're the from way whether price I was staying thanks and can particularly I my questions. plywood much for is you just guess, about taking of out, it

anecdotal actually that not speculation and at of our heard don't No. But have I evidence certainly we order it's is if way, have no that -- be some happening. file. way impact could or this I know, meaningful seen and any

guess in Okay. the you how about very any costs, you at you also, talked impact that's and your that limit had to limit facility. can the of evidence OSB there then And about or anecdotal impact I to there? and Golden any earlier been US about impacting there region? of purchase you mills production the OSB out, Has going then have And is any just mills if production talk sort briefly any if next,

Yes.

cost So phenolic what first side, MDI. we're substituting doing on resin for is the

I overall well. the a India -- there. two immaterial, our pretty cost from we this between impact And, standpoint, situation no it's think industry really, handle So immaterial difference results, the the

our ourselves we and So just between significant it as the switch back retain capability heard limits. and anywhere and I'll we've we've retained for restrictions to relates MDI of of resin. most production facilities, phenolic to any speak not MDI

done of have done well. competitors that's what we've assume some and So that's our as I what

And thanks question Okay, for just before I over. turn that. then it last

you're Just to XQ pretty in that? on I of is things, as around strong. your will the obviously like into were the strong well, your thinking that impact you demand kind Siding very sounds of continue demand mean, and side demand this typical do pricing how It expecting schedule how around if XXXX,

or John, to that OSB related question was Siding.

Siding.

yes. Siding,

we yes, QX that a nail. are working increase on implemented price but So we

that underlying product, on relative on And works I there. haven't do a the to the with marketplace. do we're in our good -- a for even volume There position But the demand of on we the pricing. prefinish we're so to really some I prime in as product stress good a ongoing to want focused decision is SKU far streams and growth us made to But offering obviously, don't as get in that. our ability given which puts and expansion smooth position

is on be price on you share increases maintain to order and side one focus in off-market have competitive to that. Our

and So that given of the needs kind we we two growing within current balance those SmartSide, have business, our focus is the the in competing on volume. margins the

you. Thank Yes.

Thank you.

Our the comes Ketan Capital BMO next question of Markets. line from Mamtora of

Your question, please?

you. Thank

Siding, in on trended your how give you thus Siding sense volumes I have if us just QX? of question was some curious, can First far in

far. We have QX, thus volumes strong in

I think, Alan...

I think are us our volume we that as and said, I -- XX% the say year-over-year. to at the it revenue majority book, now. vast just, gives confidence growth right order Obviously, of that I I said looking from

of kind all there the on I'm pulling are Siding strong at given strong September, volumes okay. talked XXXX. if in the a volumes any curious, you through how Got forward you really sometime XXXX, so of about are just decision is with been? have early rethink next And then timing being end it, project

this where it a now. right only at wouldn't call describe I rethink, we're

steam next full on are Siding conversion. ahead the We

do planning site We that place time and have lead items can that long for begun place, agnostic. be some -- orders our to

that of So words, we're we regardless know in going equipment site. to other need

at And year is looking underway and so for that project. now. early the Board announcement still We're next approval

cover yet. you the where tipping is to just talking time well the process, until we with there so that capital careful as impacts converted we're equipment of about last that employee-base all in we on in part we to and year, were I chosen and where folks think I at we where sure But facility. associated cost want Creek hand But LP. we it's choose, that this of be make the with the want bases other Dawson want year to our we are we locally if we can if the the underway kind the -- just of acquiring the up understand -- about haven't planning start-up still remind we end last do you process the caller -- and that. community

-- distributor quarters, XXXX to about the can we're of a and and and us the winter or position the year last we but seen in just COVID in this market in our kind catch-up eight that another the So feel over if inventory for in by I inventory quarters able the next. base obviously, into for little related build a Especially, mill next the our got we've good the start-up couple for to mean, distributor ability over growth a supply been and I we'll situation position year. and of good so. should it's continue that be last be then good

capital rough looking just on rough And that may on sort conversion? I'm not kind ballpark of be Brad, a Got it. then at helpful. the of That's the any precise required. number, sense very a

Dawson Yes. we've is we dependent, to and is that's understand. I -- million. know range. in on million But think say wide an This would Creek, done it know Swan Ketan, you I $XX what I a site $XXX based

that that, get be little the out. range quarters to it we a start you good as that would But will about if more. over number of couple plan will next more some We we talk a narrow -- around

helpful. turn luck we it very move over. XXXX. that's as Good I'll No, into

Ketan. Thank you,

you. Thank

the line Davidson. Steve D.A. of Chercover question Our next of from comes

Your line open. is

everyone. Thanks. morning, Good

OSB of rates Siding and are first operating So in your both XX. in all, upper the

materials? additional and next raw demand mid-XXs expenditure get there without beyond you assuming can really the any year to So manpower is

have are scheduled in may I OEE us we're to our can be certainly But now sustained believe for time high we across consistently not low-XXs be we and we that Siding given and XX% OEE. approached both our would in I we while XX% journey. to to system downtime But maintenance to that's including running, mid-XXs now where high-XXs OSB have and do. to think right the pretty

XX% feel over good now. that, about I us about at would a year. I for we're be So stretch right essentially, the entire that talking mean,

grows, it conceivable to as the size allocation the housing demand Is and in propel from that both way poised both starts OSB? be if that it, burbs on the you perhaps looks we almost Siding move and more to could

Well.

So now QX we'll be winter QX. through the order I and open in we Siding price dependent. be in doing and the were in allow It growth in of implementing -- -- yes, allocation think believe don't inventories increase is we're we I get after allocation will that in spring. we the because go we more some built into this files

Siding. then, won't don't, situation, the I we mean opinion allocation or really kind off availability. on be of through you allocation wood OSB, don't And year but it's in really, possible, in the our market because depending market open market my on it's we So next is, I of on do

of in time operate in we open OSB to it's really don't you next not across OSB year that meaningful And that. anyway. there OSB have not in extended I period And a order But allocation forward and how times your ration so base. customer doesn't I foresee any file when good way. mean don't see It market not is

also and high OSB Okay. I'm results pretty because OSB, us Siding -- about is good And the as on EWP, pretty input. I'm was taking something sufficient really on assuming gave upbeat you talked guidance which pricing But such my were some not elsewhere. an and questions and it absorbing you

that was or there spending price, in increase is operations So price a EWP?

to was primary results or is this meaningful. the group after we're that that OEE driver on want just EWP. years really in has all of the the to past gains We I a the issue. our but on glad. way quarter last for proud about you improvements the don't the got it our efficiency saw minute, take really three that over So been calls, a EWP talk lot I'm

of -- the we've increases price our implementing behind more I and on EWP And in We results price OSB It's we're way is QX are it. a rising in by to nail, this caught to impacted EWP increase, is go look reason process is be us lumber, are going other the little had guess EWP. along participants with with that, right the out which industry put to business.

the file I stressed focus little so And real will a side think as efficiency bit well. we'll really more QX, and the our say on the are I margin files in EWP strong be that order -- order in

fighting have through on we material our pressure the we price be work So volume, it as increase the will raw price for some QX. finished products EWP in

earned Bond the Another Die Well, paraphrase to Day. James maybe to right

they're there XX% decent and America, rate. contribution only South at Similarly, a a last Okay, operating to making question. in

that demand So have is materializes? say assuming significant it to they the upside fair that

be through line a or be and thermal last significant in at some will have the up down oil so. expansion year we upside. have which They We press really installed will quarter that mill next that unit we're there working And we're some put a do -- constraints in still there around full open capacity.

we're in for year. that line the expecting next year. continued has in Because been new see South American press of that So, business our a startup to about good of growth operation

Great. Thanks my for taking questions.

Welcome.

you. Thank

Our of from next Steuart Securities. TD question Sean comes

Your line open. is

for $XXX questions, the and for million other stages. Are if this But still projects XXXX? year? appreciate there and you're next you. $XXX at is, we're next CapEx in you're for million siding both of Good the bet spending year morning. any next planning is million Thank for million to year at maybe $XX $XXX to safe Couple CapEx the the conversion nuances thinking midpoint

All right, here. it's Alan

right ballpark. So you're the about

of we the spend mill. end up whatever $XXX sort in spending next a of into year plus, on million base divided As maybe Siding

So the spend reasonable as results from be estimate $XX let's based, would which that's we'll update million our say $XXX on exciting when plus, we million announce though. XXXX QX

a is reasonable into us yes, So year, number maybe for populations. two divided million, $XXX next

any Understood. the you September, positive can Peace the since some provide for other on Day had thinking that your details And We've you housing restart? any on can single-family provide is in late data Valley context, to restart? Investor

a out, Not Investor on continued housing, are following numbers as has closely. good Day, lot you we changed other than which since pointed

got our and Our for housing what of outlook We've a strategy is monitor were window in us. least continue -- plan to to front two-year confident. at

that So feel internally that's housing, of justify when we good can we a facility. restart strengthening the and like

since So Investor we're is watching Day. we on it talked about closely. -- But changed nothing we

appreciate Okay, thanks time. very much. the I

Welcome.

you. Thank

question comes Global. Mark from next of Seaport Our Weintraub

Your line is open.

you. Thank

more First if question could what in the perhaps the expecting third us fourth give been Siding to some that growth you've quarter the and both in and expect on quarter. there strong seen what color to business, you see was you've

we you think some through repair are? color residential and big Sheds give if on what geography, new the of drivers it or remodel As could us

it We get all go item-by-item. through But I over. will

really and stores last new just timing our that panel there. we've lap through other with the the numbers earnings certainly get even mean as pull phenomenal given we're centers have volume really really retail at on year, by or above home they average on just also hit where phenomenal or we growth home report and been better the offering. introduced I the SKUs their So their It's -- But and well, driven several are good retail centers releases, just over along many throughs. trim now then

And mean, extremely as the segments been area strong so growth been as has the Shed goes retail, in well. certainly I as far and biggest

not from like of in. on -- more and been call, not and the remember office well. real got either that's Sheds buying Shed Shed phenomenal change the hear even we day using need a or and next an Although, of home putting somebody said, about and a QX anecdotally we're activity that Shed anecdotal customers our by as lot seeing and junking as a I your out for I'd growth from question for I a hear the space -- there. clear We offices I

positioned well -- all a in So have And for as That's that inside while. of we've house. that's we've you know, it's for an can you been segment -- your office been been real.

Single-family regions. So across, we've you well well seeing ask as really smile good about especially the in is growth going the there.

So great our more establishing from us in then And for a distribution should has maybe a reestablishing single-family or strong. prefinish in has very the Mid-Atlantic, repair perspective, I offering, of remodel, the been for been say, and around Southeast, Texas us market distribution. that

West that the good is Investor And we've that, Midwest us this future, part to ask But to the that pulls say and able all the we exactly, is good California. and just us, continue drive us. the it's very growth remodel don't distributor as on of and visibility been a seen on Central repair be building this as a the need a did So quickly that's have of as position up we which because in of -- outlined we our there. for Day. network geography, I have plan ending and look year Southeast is South play on course, into well region and good to to certainly Coast for we're more strong for in you extremely quite that Mid-Atlantic the we strong

obviously, just been there's there to some due the standpoint, a I has start we've well. a market from the been for least positioned out been Well So done of West, the it's kind we've out and fire there, situation think in market weaker the there, summer but COVID a where done as good homebuilding, are housing as at West. tough we -- a

to trying as improving was get you where I did versus really what overall a is be to market Thanks. the of to And I to get may everywhere trying this gains which instance much sense product of you hard you well seeing guess, from etcetera. is, was how sort I get it's to initiatives,

can you If there. helpful. That'd provide color more be

year. While improving that, we and I is, question it don't that I then about market to Shed say, expect think our single-family anything strong. but the and there this in single-family no growth especially market sustain is are share strong, market there seen The gains very that will percentage overall improving there but is so near from what we've proving a is I

from no, that's a that movement could somewhere, retail from environment, retail but retail for not strong and competitive positioning people there and some that there sticking as been realigned market new small that of order contractors mark the around that that's growth think the that then to it's retail, me credit think some do I from because I might share temporariness as recalled, our a to some and be distribution very aligned I is to is be into coming think question a stickiness really the demand. has But standpoint. there been

the have As way online, the and you they this part can order offerings, etcetera. of pandemic in

that that all it's we want so somebody is answer, driver I good now we've comes one of advantage for tailwind from it's market new a key without Mark, take But what's right a that. think driving a can if and that the standpoint home single-family got buying you fortunate strength, question, position a And us. there from

magnitude. more, the we if I It million And fourth -- going talked about million. -- it's on at you could look the big allocation. two dividends your be CapEx look on million, quarter million, mean in quarters kind to $XX the quarter of those $XX one picture, had for CapEx just And similar, a $XXX third if Great. the if beyond needs. order I you was another capital of would XX% $XXX

expectation getting million, completing $XX you've the since you've -- I million, authorized $XX another be the $XX right. way that arguably quarter the So I'm with million, it, quarters. then extra a share million, sounds there and today? like you've you've I'm two what how is does on to that Is be that not seem But don't numbers be round suggest in that go $XXX based think if a, would spent or could earnings, got $XXX million needed the think which third it timing is to math, would the by my covered got then work it repurchase discrete because of about million would and which that to $XXX had those

Yes.

million clarify me the quarter. let So my $XX comments in from third earlier, we spent

the As also share which and year, be $XXX of to as we've will September, end quarter $XXX spend of another since million spent between at the million buybacks end of fourth million. going means was today, we're another it today the $XX

I Thank Perfect. nicely. It missed great. That's fits that. you.

you. Thank

Capital from Thank of RBC you. the of [Operator line Instructions] comes Markets. Paul Our next question Quinn

line open. Your is

Yes, thanks. Good guys. morning,

Just i.e. hardy the will you of you to the Is a multiple? transformation, that done, great market when to end like leases give the $XXX building you question think a the have sort of on million, actually the when is see, program? you're ahead, that do year this

Okay.

just Solutions about me about talk the Structural Let like for talk multiple. party

near-term our FlameBlock, our believe XX% to stop legacy offering new the generate ton products, got target We So flooring are not we we our there and with believe and as opportunities, FlameBlock in particularly growth well. have WRB will ability there. we -- for we've

And -- certainly day hope may much cost we're opportunities. so we a Structural the Solutions of in that's but not XXX% for I OSB, us, the be are, value-add to going Paul, one I that rather would happen of the target

us business Siding, I the better for authorities. is multiple questions which mean, grow Our to is continuing kind key key, just than our and think Siding talk the about to growth I is of

certainly the production if Solutions, stable into grow takes and my continue multiple that legacy of of like And So WRB arguably then I that that OSB view to move higher bit add mentioned personal could higher that. to part value FlameBlock Structural panels. on is more can higher especially we have a margin items and commodity

key so Paul. what to us that's focused the -- we're And that's on, for

been way at that's XX executing, really of smarter. to where getting done Look, for years, prefinish had had three work as dollars good doing know, I to for around market think two we and years, budgets day, only about a focused six we've over for what are. the getting you just and come plans But and I year, for I job WRB around on on smooth we're a months, think the on and spend we've work every in -- looking -- on and we then in another As marketing legacy months. last

growth of we've this So gains. that market have a a and of for we got cadre room share differentiated products really valuable lot contract

relates to OSB, And And -- LP. to well. but so converting conversion Siding I as including positioned for is it over think story we're not mills on the at

Okay, thanks for that.

in middle book even yet. to And the not

Okay. consider Would monetizing transformation quick the last over Valley maybe on could us and the you to give a Entekra month? the you update selling ever accelerate Peace

Yes.

Western converted which Dawson, the yes. in US. selling, mill that like only now market that So I Canadian it's from our consider of the the Western access standpoint mill can

right serving the everything for but candid that it better Paul, to at reestablish that's But not is to you restart facility you, for plan with to some is we be in time of West be just our now Dawson converted the say, the to where the right since despite I to plans mindset the kind That's wouldn't pipelines Coast. Texas. part we're right use out have I'm and near-term price. So of of retain market sale our and

seen acceptance happy continued be freight update recognize through said order market So in growth working the there really to mean, names of having file, in I is, I'm start-up that in Investor Day, system. our encouraged and some a standpoint, file we're of file, Entekra from facility we've advantages really that. of But facility customer in by the would on quality even are would I'm The the if technology. Modesto. about our that order of big you the order the

So shifts there with There of we credibility the from could operation base, marketplace very with quality, still now. very start-up is encouraging, trying is an an far I from and the a one that story. right in so time Entekra to reliable doing But were on mean, standpoint were framing much file in a good. so standpoint, are But chapter a our in it we're customer it reliability alternative be from that mode. that. order for stick good the our going And standpoint, a from in not we're even build a all job to lot build what's market that delivering

luck. of Excellent. Best

Paul. Thanks,

you, does ladies and That you today. the gentlemen. participating. Thank and conference for Q&A conclude our Thank portion for

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