Louisiana-Pacific (LPX) 3 May 222022 Q1 Earnings call transcript

Hello. Thank you for standing by and welcome to the First Quarter of 2022 Louisiana-Pacific Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand of Aaron and Development. would to conference Investor I Business speaker your Howald, Instructions] like the to over Relations [Operator Vice President Please ahead. go

Good morning discuss our and for for President by operator. Thank our is thank XXXX Officer. quarter the results Aaron Southern, everyone, LP's I'm the Howald updated Solutions to Building of full outlook the Vice you for Investor you today name joining LP's morning, Development. Haughie, Relations of My Executive LP and first year. and quarter joined Chief I'm this Brad LP's Alan Officer, Business and and and Financial Chief second

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

along also filing earnings with Our materials. release and there X-K our is available other press

also in We of supplemented and provide few Rather by to reference. the a contains days. expect Slides regarding over with I presentation statements, that forward-looking this are them detail The And incorporate call our non-GAAP and file and earnings further that reading notices those of X-K. presentation I'll than metrics Brad. statements. to the morning's turn necessary reconciliations XX-Q X X the financial some by appendix

sales an by to Thanks QX strong Financially, very no start $X.XX begin is XX% first to operating will quarterly share growth now of business a our price year-over-year mix and count welcome Good another we diluted record moment QX. This a $X.XX quarter, exceeded share of resulting set material The points was the raw a expansion X,XXX average cost Aaron. was our repurchases recognizing represents inflation, Sales selling LP's feet Siding capacity growth. have morning, earnings margin of for of with square XXX record. and in off and during Siding everyone record thanking in ongoing sales of remarkable. XX% billion by freight million for $XXX to volume Siding a Solutions the a million. for rate injuries. get Accelerated net XX reduced quarterly feet. percentage and per despite in million in EBITDA team I'll recordable projects. has and LP's the revenue Solutions siding including adjusted segment review the combined which year X% simultaneous per quarterly call earnings volume of that of and square $XXX EBITDA $XXX quarter with effect, growth been price share effect with is of of XXXX. increases LP

million CAGR a is a growth siding segment is XXX growth. rates strategic results for thousand XX%. in seen LP square me XX% in and feet. the let on of for has in Siding price, revenue transformation, million much of product significant products. a in of this in volume feet XXXX, price $XXX three $XXX an at long-term Past net compound of put So average sales sales earlier SmartSide In QX years these generated strand of in context. per annual value-added compound A higher component doubled years, of three X% resulting EBITDA shift mix growth has annual volume to XX% for which

driven shipping in growth QX repair As this is total new and of Shakes of Houlton of March growing quarter announce meet can happy of and remodeling SmartSide investments SmartSide is and strong the this as all This started the to demand A-grade and expert fastest customer residential we and volume that increasingly accounted construction LP Smooth, To X of demand, speak. strong and I'm in SmartSide BuilderSeries you portfolio. with especially finish the ongoing is on production Corners, XX% see in making subset addition capacity. on ExpertFinish, product applications. presentation, past for the schedule by slide are XXXX since new demand

Sagola are of next We options in Sagola Michigan. future is a There on mills. XXXX start-up of our including capacity facilities runway long greenfield schedule for QX for conversion after existing mill conversions, a expansions siding and

one also it will The think best We market builders capacity that to and receive New this SmartSide the facilities growing to additions and potential huge for a soon. ratifying seem available from future will building not about details share a by a I York. demand expert with while existing number ideally that We SmartSide. while is located to regionally facility contractors expanding Houlton, siding agree. and Bath add finish We're distribute finished is capacity product adding it SmartSide our homeowners Bath Prime is new surprising. is it of in

growth feet supports As of portfolio of will which the contribute exceeded last is to percentage points eight the in it Structural OSB named sustainable OSB all-time to Solutions negative be Solutions year, higher than producer total new also carbon specialty the we products Structural which Solutions in Green is record. first Builder segment building most recognized QX leading recognition quarter, of in accounted in Structural value-added announced driving LP's year. two mix. volume, the which XXX million an as Structural SmartSide specialty Media released recently last Solutions a the products. siding volume The and both OSB category. for ambition XX% segment of product

contribute installation durability Premium Legacy which is is Adhesive flooring designed and quality the systems. of Sub-Floor and to first improve to efficiency The

This insulation double Jimmy I Mason, insulation. direct segment. through standard will than a to a thermal as been self General to and in spacing The done second Sheathing, the can Lumber. South EBITDA strong am such that demand at continue processes. OSB quarters. past. had generated critical to acoustic Obviously, named of as NovaCore proud for to prices that years $XXX of quarter year very a produced the substitute EWP Manager expanded also for year last Wood level OSB this OSB I'm year-end. framing combines in extraordinary to full in NovaCore in results just cash $XX structural the with other LP polystyrene strong return is Vice be OSB for Manufacturing. to Veneer several generated Insulated sharply And I-Joist most and America has internally which revenue in us Jimmy adding and President only which and of $XXX LP's second Executive confident of this on and strength shareholders. layer Vice President will position. over the promote bench as allows million used integrity I of congratulate at nearly sheathing with EBITDA has consistently climbed the by so the Sheathing QX of business leadership and better in prior QX million Engineered want after million fill sell who Siding and Laminated role he the flow,

South America challenges truck should in million from most and surprise It come face raw million no LP the with $XX delivered availability Canada to well material sales continues headwinds in Box cost as gaps. and that as logistics $XX acute as Car in as EBITDA. inflation,

key issue with a is cost availability freight, For secondary.

to for providers to We challenges customers get these time. through we some and with logistics are persist this, expect but working

downtime had more And to take and review with a cost turn of before for questions. capital that, their Alan Alan Canadian detail will some far, availability more at and siding LP's OSB the our freight impacts. your pressures provide logistics results has impact will on challenges update on these on So limited mills. I detrimented have we call our over financial detailed strategy an allocation forced

for joining all this and Thanks us you Brad, thank morning.

discussing As in quarter XX% quarter more story of LP year during out price impacts But detail, drive revenue round $XX offset of a and I'll $X.X company this overview Siding performance. point segments structural million Despite of last of which I EBITDA inflation. we sales. obvious reported continue of the for that higher siding And $XXX second over billion XX% $XXX solutions million on mix climb quarter generated $XX actually price cash, shareholders. cash quarter repurchases, an said, more brief than is and the We than square share the on lower, fundamentally must added love per the increase first the and details the we and return and making of to negative $XX million exceptionally that million The more record adjusted strong. earnings namely over can of Page for Siding. before million give reduced raw OSB the quarter my significant would Less is numbers, XX% was control $XXX total Brad $X growth same million EBITDA. XX% million for The generated $X.X to to of than both by the billion operating the technically material record million is freight months. prices. $XXX the the CapEx. OSB things in of by of spent but $X.XX flow of year significant in of result higher nearly OSB and a share share it The our that been for last was was which selling have X last the XXX Volume the in which increased X% feet. waterfall count revenue have XX LP's increase

margin inflation Houlton volume including XX% aforementioned remarkable selling and on million this overlays, record only time resulting rising was million The million restart the volume. made by This is projects growth were of more from and sold expansion. the million of Sagola. of resulting Given of Houlton growth consistent did inflation transporting combined as growth of this remainder million the logs OSB quickly. the commodity and bulk and of OSB already a OSB as price drove ramping system-wide high the $XXX full with as that of mills. in volume volume that margin just even offset million in The long-term the and combined expansion significant at of and Solutions simultaneous operations minimal costs despite of waterfall of to increase and oil both includes Solutions resins and long-term and shows was impact chemicals Houlton at deliver by it two-thirds was X%, possible a inflationary mill at up prices. eight-point OSB Naturally in over the increased transformation a on increases. strategic periods costs this up but time Siding logistics. X at total Structural Structural having we LP's year-over-year of to the first marketing can capacity spend. impressive quarter quarter, derivative of however The volume $X segment revenue the And driven higher to the price increase $XX XX% Peace $XX $XX the came delivered million in and shift of Solutions is up given an by start mix. it operating of reach started investments by demonstrates shipped and $X in in of EBITDA. of the basically increased last start-up from well impacts crude This performance higher Page year, of $XX than $XX the cost The Valley The Structural in EBITDA Investments grew capacity Peace by Valley revenue of XX% with million fell about

prices, Siding million on has the while on freight have in quarter. customers, a in that freight presented sold inflation is OSB OSB $XX the largely material Siding passed meaning to segment raw increases costs EBITDA. headwind impact minimal As But delivered business, at in

business, of to $XXX of cash by offset whole. decrease returning of million, in million, million, dynamic OSB strategic the controllable the $XX inflationary the million mentioned, Structural middle is to resulted less already million, quarter another of impacts. commodity similar of So which in bulk to million. summarizes minus $XX million. $XX efforts price America. $XX Siding incredible plus the $XX offsets of in in for Solutions South process the EBITDA inflation but shareholders. impact growth the million. in increase which and $XX $XX $XX impact it's The $XX is $XXX of growth That the a LP's EBITDA of corresponding direct sales in I a America, your the aggregates controllable This million. million as and in of attention OSB $XX section, only nearly a are North That million, quarter But net America impact North want added million impacts $XX of $X we the million. Page of LP XX OSB million $XX I've minus plus a generation million not volume double revenue in negative was

good in of we of continued predict as headwinds capital costs million towards flow. with cash the $XXX and and core $XXX LP's EBITDA capital, to other on inventory offense But with that of for flow. minimal can't The on case in LP's the LP The our We and $XX best transformation spent of in million is a prices is of drive control component I-Joist time. the inventory $XX an million cash balances. the a accounts We Products. million course Page receivable goes. started for increase generated stuff, growth relentless the do $XXX and inflationary is $XXX sale value or the some accounts million the in Forest Now And million The cash. offense by effect offset business by working in of million increase future quarter million $X.XX effect partly $XXX proceeds inevitable operating we increase specialty summarizes maintenance remainder. $XXX is which divestitures the the log rising at are the defenses of which After from at strategy. the joint seasonal Resolute normal XX expect venture generated products, the of state largest returned unit same in in shareholders. was quarter

net XX from quarter result associated As is cash, and this $XXX end, both a been to increase in the The $XXX net allocation. to a million XX.X note, gain adjusted at brings from raising million all million million share course to income. The million side which it capital has spent of EBITDA adjusted $XX repurchases lowered on excluded $XXX share me shares. million our count of

and leaves bringing and we million share million Board LP's the million $XXX we of spent million, Page to bringing morning for CapEx as of Monday authorization LP Directors continue remain $XXX brings year count And XXXX million yesterday to authorization. that X.X our yesterday Accordingly will be as $XXX guidance. has XX to approved significantly $XX.X This undervalued. LP's million $XXX of repurchase shares me range. in which $XXX repurchases morning remaining morning, to for total a under further updated of to As quarter share full further $XXX million a more million. believe to preexisting $XXX the our million shares second

to quarter Given at raising we first and this full the remarkable year ongoing up ramp revenue least quarter of Houlton, are growth of both guidance and XX%. our siding year-over-year second

Friday's the for providing and worsening significant remain revenue price the on quarter guidance about As from Should in did we scenario. last OSB X% would without segment offer length OSB, a a prices second logistics predicated prediction, will the levels no of unchanged first random generate availability, quarter. assuming in it than price less

to in freight any sudden Clarke to inflation. assuming course, and dramatic that, XXXX material be consolidated quarter take the in to with Peace the technology. add from control and or questions. should reliability happy the including On and And quarter second cost of improve Siding for both least County no to flooring of headwinds be million. demand costs, at to OSB basis And $XXX that we'll emissions in continue Valley premium invest LP's Now, both second increases EBITDA growth, reversals businesses in and continue raw face projects capability of

with you. America. comes John first Thank from Instructions] Our [Operator question Babcock of

may your question. You with proceed

would seeing you the And and and about robot turning repair Good taking I you prices just could higher be with of for rates, you're also, on that home markets demand some out, morning that guess if indications and any in rising seeing slowing housing a marketplace? other are questions. great there? what Thanks. it factors thanks the my the in and of exist then there talk point, out

little we our speaking prices are up Order the inventories. seeing little laying that the hearing in And we're I generally positive, for that the outlook board was activity. three OSB of Pro -- businesses. partners the There across on more outlook think question, our distributor for builder not a partners fell, I across the I our businesses, from for generally types a files the across as Retail buildup but ordered are than still all John. any we're have. way Good different and three we're specifically say let American partner. inventories the strong And would still are very still Retail distributor would lean similar say North all speaking, in Pro and

impacting but believe, today do or affordability, I it's and outlook. headwinds order mortgage with near-term not certainly there's rates our file our So, housing

for outlook, XX% from greater then just Got you And greater than raised to than growth Thanks that. signing on you. the XX%. obviously

but your then this all? that missed you at it, that You about, driving might also, if the what's Siding project for just impact new talk does plans touched have maybe I and on And outlook next growth can increase? how

it. the also, Well, John, possible. the the part ahead next as on the one we and full planning one the It were you doesn't that impact in Sagola for one yes, the knew start after quickly I siding with because steam And of for I'll last the referencing might then been that. after the have plans that Sagola, say would after one as we're which project

growth outlook it's as So we we as large since well, I the on our result this do still year. we a mill availability that in will making parts Siding get have mill distributors ahead, because a extra over demand the production good pleasing standpoint, strong we've Houlton, we'll little volume on through that that next such that on as With the as our Sagola, staying or file get as remarkably can seeing. been been have system order resilient a into coming business. rest it in an capacity throughout a conversion. see to order start-up file we're in inventory. large And we managed year expecting and and so a our on -- year. really then we're good quickly capacity still order QX. for sell, year get of could can certainly last us as We're we can catch mill rather managed now are get just I mean ordered engaged them file. the be managing and From in see And to has to confident -- It's a that been beginning the so conversions growth A-grade volume Sagola our a growing and production there right year But bit bit we quarters and build little next growth we as some hopefully a a four much-needed the can so. of move of

question I over. last Okay. it turn before And just then

Just you conditions relative on just South there America feel, talk to how market a done could about ago? quarter

has market The remained strong. Yes.

While an and is moves imported volume America directly America. LP obviously America South North the in pricing to with market. out impact of South There is correlated not as

we were for So -- fortunately. than we're pricing demand resilient and has we've planning seen there more good down been

So that good a really quarter. resulted in

with that capital be years. capacity to volume grow capacity into are couple of We we'll grow that expectation some -- that there over putting Chile to into some continuing the next the full our

the has America really market kind the across turmoil South down the of OSB there been all despite So, political resilient.

answers. it. all Okay. the for the questions – all Appreciate Thanks Great.

next Our comes Mamtora question from Ketan Instructions] Markets. with BMO [Operator Capital

proceed with may question. You your

on you a quarter. congrats and Thank strong

the couple Siding percentage how side out you quickly seen I'm strong kind curious as a very the the products years you've your portfolio current of pretty Brad of over business. product in as next total in XX%? on Siding look the from the growth of the you -- innovative a do see on innovative Just

growth Yes. the ability finish then way. have our that's And been with that finish Look continued focused tremendous be a and BuilderSeries. And sell, Obviously, that Ketan build platform builders key That's driver with is innovate on there. obviously more products. future product a expert products. market with portfolio we'll be see key and national other is large regional us. our to We attractive for around substrate moving to capacity installation a to our as we our of can growth price a tailored growth new point is for the does builders, expert upside as come for

not trim that those products preferred volume contract key product be will have kind so subsiding smooth innovative to of a drive that us. have ancillary supplier volume maybe and able then being certainly incremental us two But of a we our other not offering also, in be to the into included pieces products workhorse whole the for And but much myriad as are is distributor base. can – as

really doing. So, we're part of it's a important what

as As to that success these you far platforms with XX% and the as continue and mentioned, continue as like and innovative we're going ExpertFinish. XX% to find we we at now see high XX% we high-growth into right innovate BuilderSeries potentially to --

then And just my as Okay. follow-up.

post given sense continues ahead make how terms demand terms -- mentioned and for thinking Siding more in is? with what there point few capacity, of Sagola this in terms up-full any there remain the at your options update out demand had you laid capacity, about us of in update As is a strong to of any might strong you is team

not. there's call. the Ketan, it talked it on I mean since to No, we've about on we continue last work

those mentioned intensity I've myriad press have get cons, regional particular location, of of that, as to and specific before say, or a far options. certain question I and a won't repetitive different a unless options, around of I a Each make got a pros offering. be product As as capital we've ability let's but

little situation but that items, want we have sure base that not a our we're wait that fits business. continuing And And because, we long the make or shift, as to decision don't see to shifts preferences to customer decision today. -- we make current of next secure the time our engineering, so, product we're just we're to do continuing bit lead to

not We're make working there's options. today. reason to on it, decision of tons a got but a we've So,

patterns So to before order file to study we and the continue order call. want that make we

Got luck into queue. the rest it. I’ll back jump of Good the for the year.

Thank you, Ketan.

Thank you.

Goldman question Susan Sachs. Our with comes next Maklari from

You with your may proceed question.

we Thank talk morning, does when My to you're on the Siding thinking the think through comps the will side first some especially there how cadence you about quarters question of over ramp. that as of that Good you about Can face comes the as ramp this you. relative fully volumes the everyone. as upcoming growth, is thinking new just come to the online? incremental of facility

Yes Susan. Good morning.

So plan the year. capacity of rate that line million that be at the We of for Siding square is running by about feet. end to expect XXX and the

would So that at that there's to from pretty in capacity in ramp-up. next capacity in curve goes ramp-up we zero linear of obviously all for a full basically year. And then, February December full be

how it. and much volume certainly it's planning needed. We're selling on thinking So, having about we're that's that

So, find answer helpful. I hope you that

that's channel and around you. is, EWP inventories of lot No, question as definitely OSB, when Yes. helpful. for especially lean to our homebuilders, do it That's And checks ground. we it exceptionally on are good. even the my Thank the like a next relates sounds then,

I on producers, of on EWP side lot a got that You've there. allocation are still the especially think

on And that continuing you're transportation the some to so, think bottlenecks those you side. of about as face

it to back As that might relates to about that we as do start we we some pricing the different into those pulls potentially for and what as to demand get through. think and year? and dynamics supply starts mean those of volume the do kinds the and How of pushes this as of summer ease and half look to the come spring

they I'll as at the so of to through market if you as the Susan, know, -- flow, the markets, a have year builders challenges I is of at to of even think the active, – outlook, then, I And production level get capacity of any some the warehouses you, are go the backlog kind would are rest kind do, before inventory distribution is as lean, the of going OSB free and service just build year. up very specific And to more That kilter. if second a logistics will, higher the even could out housing, and price the of move look, so growth the in but a to give free year, restocking, supply bit they the believe OSB the can a in the and would your be channel big as just product I not Hey, half look, mills me for so on and builders think be into we good busy, very volume. a tell but demand speak of other our market the nature EWP I'm nice bottlenecks let EWP pace. pull chain question. of normal up, even

of winter, on expect time side. the demand some rest we see restocking particularly has a to typically really inventory, a been for market the the capacity I happening, year. remain OSB period standpoint from So, where to tight the of the When that get we

is industry. us on the imbalanced year. my now outlook That's right part struggled on November. ratio getting that personal get too to capacity of of the until an in the we that to building demand dependent see just just I Some really of slowing during much situation

good Yes. and that helpful. I appreciate No, luck Thank everything. very with color. you That’s

Thank you, Susan.

Thank you.

Mark with Our next Research. Weintraub question comes from Seaport

Your may proceed with question. your

quarter. Sure. questions of couple Thank you. another Congrats mixed on In phenomenal a too.

time? margins, color with you OSB more to share what have volatility, On type over or towards of what a it more that's reduce or does Can we structural that you're see Does increasing increase it of the business impact Structural side, as on the financially? big business does percentage Solutions. us, move can that the solutions

things. Two

markets up margins. both, and You improved and more mentioned but resilient

to push some have structural Solutions the so solutions does, secondary random of have it in incremental But significant that the Structural our a that So lengths from today what that decreased as And OSB effect, commodity a solutions pricing disconnected be. volatility. we'd as products goals It is, impacted, resiliency as more volatility of don't margin into structural much is a as portfolio. to sustainable around one our be -- like any the there point we so that base the of candidly, in market, way our to is we down move margin. have enough of for

it's And resilient play it margin pricing than a a of is more so, play. volatility

So there pricing example, list. that the is off a some of price do we for FlameBlock, like

products have of pipeline, product, SKUs TechShield that from big off that including random. flooring NovaCore Some get it's of for we'll disconnected this difficult we it our I innovation try disconnection. But in position our to and random. mean, for to the

products, wood going really your Okay. on Thank vis-à-vis change the sale thought of engineered what's update you. on And pickup there. business the nice -- process? Any and/or potential in in earnings

in change No process. thought

are running we making are process process We a that on progress speak. we as and

So on that Mark. to more come

I'll queue. Super. let that go that in -- you OSB Can is also to products into us product? myself negative. the you then a back Would to one I'll talked alternative being as carbon sense Siding. about and give And But the Okay. also then is SmartSide that differentiated get carbon-negative? be more from

Yes.

Siding the a In is OSB carbon there. with up as capturing it the long the is it's it's a reality than the wall comes time. the long case it So we Mark, really of carbon good and on home story as story year case a of guarantee. when In and there to have more fifth nailing for

facility we because And PVC to all wood. comes And friendly is we the of carbon so our process standpoint and material wood percent are remarkably almost that obviously material manufacturing that business. this is from a being And business, XX-plus in siding form in the used very than the that -- into we -- cement. capture composite rather carbon or fiber better are of

the think business of will provide to we've we in Wood Products standpoint really And advantage good us good story our a So from competitive competitors ultimately carbon-friendly the a a -- that tell like as there. got well. most

Appreciate Super. it.

you. Thank

question Steuart next TD Your comes from Sean with Securities.

proceed wit may You question. your

bit you Thanks. industry. the Can Good inflation resin chemical but with that on A much us supply respect morning, other to you all? And and OSB at was I granularity are questions. there a how issues respect right for on us inflation. general across resin of anything versus Siding securing security hearing of heard of input year-over-year specifically give now? haven't it wood? With overall trends any for resin a supply gave for is We're concern inputs more everyone. cost to couple

with quarter as crossed had input security say start have tight. supply into that challenges file we we are I would things this through. not supply I'll of any we manage the and could

feel we is right So like availability now. good

to those has because to an while. pricing. index quickly, had Of of inflationary hurricane as a the we the that chain oil really we supply the a course, standpoint in materials securing through relationship haven't that reported far any than and most in most need. derivative inflation Gulf Obviously, but issues better with can been change pretty we material resin From that derivative that an as driving the big we've mostly in due and hold is it's of happened increases that that see not it's

primarily the into don't to add to the on get the you -- some seen fact side, increases material some stumpage truck, if obviously – haul So the I significant distances, know, that. But haven't on pricing North But rail, from fuel that America. on we wood diesel want more facility, color has it's and that. the price – in to or impacted Alan, trucks

mean, I anything is the raw primary fundamentally of oil-based. Yeah. material increase is source that the

Siding are So so. our use Wax XX%-odd. PMDI we resin is in or up costs XX% that

based, the that the oil impacts as oil-based I the driving fiber. almost and overlays majority increases fundamentally some cost. waxes, said it the cost really, the in oil. the are anything is resins it's both There is the fundamentally of of But is up modest So papers, it

Thanks That's much. useful very detail.

follow mix I that And of how the economics. trying a the touched element you sense I'm business. to the just you remind get just getting And reached target there? If on to that in QX that OSB up fast Solutions margin or question, dynamics? wanted the XX% is you do there the a us of the you anticipate Structural of those on could ratio? that Second the objective for for ceiling

that with in part XX% of we set That's strategic last to – setting year we with target XXXX, from of Structural plan. our Solutions. a our a Board it we Sean, In Board. target our XX% November, of three-year as revised Sure,

basically overlay changes it it's XX%. very focused mean, XX% a a to I – great raise getting substrate. on So it And all good get substrate be But vulnerable OSB ahead achieving would to to to to running is then ultimately. we swings. add We back but steam Obviously, facilities. we're And value certainly on commodity the add price – call, that awesome want you be or we'll it full to know for mean, I when in when And mentioned would again. we before on be the order OSB we're resin as that, our flooring, – there. you position get commodity beef build out off. what we're we're between this is or only at in of value sanded an as from up case And where way a certainly can I've LP

the enhancer value So our incremental really margin looking as we're on for a business.

Thanks much, all That's I have. details. very That's great Brad.

you. Thank

Markets. comes Our Paul next from with question Capital Quinn RBC

question. may proceed your You with

so Siding, Siding that want pretty is start XX% file. Good impressive order much. Thanks given just Yeah. morning, growth with to guys. the I just manager

where regional are wondering little on sort that areas growing growth slower? a in Just growing bit a which fastest seeing basis, which areas are of you're

the Off year-over-year. growth for except exception, good we've one board, seen really Paul,

QX not most retail just evenly that inventory and pretty component had significantly is is of consumer there's a build shed for year there. – a So last tough last QX not it's that compared or the for it's – a the we no order strength stronger volumes segment-wise, and another. the our than did that's super the good We in of file, any concerns channel-wise year. of across distributed. both good so off regional see to saw comps And softening channel, such It's we geographically that. But

across been to be the more I volume just taking weaknesses stronger. the strengths have we issue And can that to that we It's are. don't even we the it's able think allocation are allocate across volume different had be So with to, Maybe enough for board. off really and see could find all it to sell this board, customers them. our

the then, produce just Side, that million Okay. it's Smart to around linear sounds and whole the with And like I expect it XXX maybe capacity going square foot guess well projection. on growth you square that that is mills it that feet or million this you existing it plus your XXX Does in are Siding -- running year. XX% is the as in that XXXX, gets well? just

we're And can done Houlton helps. getting Paul too, really that's right of as we good all operate two facilities, the rail allocation because There's, on and ability we've -- certain we for what But the the things. regions. estimate of what your SKUs our Certainly system. to far come the And you're year. volume and as more a can be our truck to way little produce will job volume we optimal way the out run we the a be we this ballpark and on ship, match from to

we're system scheduled have to job, we're get Siding for the running optimizing of get the And team the we even out growth, through so can, want of we we're maintenance capital mill I incrementally we're I than order Solutions to optimizing volume just XX/X, -- to other try finding facilities. where our capacity. what good That's is through a as running incremental our course get But volume doing mean out out as except system downtime. of kind seeing flow ways is Houlton. really volume we at much everything to though or mean of

Okay.

going Is What substrates? areas some So extremely Is terms fiber this vinyl markets? of obviously are into in growth competition it for Where in other well. you? cement? is you it the in competition running Siding is

And actually lab of DIY TX-XX. And those, plywood wood cement. then but trim, that market mentioned. vinyl from primarily We against part [ph], Yeah. on we in fiber in Both compete PVC, every shed. mean, I siding I And of and cement it's some SolidStart, shed as a particularly some big looking in a compete shed day, against. then, fiber the a from its SolidStart standpoint,

the a plywood -- fiber cement for or But on the vinyl it depends panels PVC in yeah for and little then the the it's trim. for product. lap So and bit

that? last question And Sagola, the remind Okay. us on just Can just of again? what's then you capacity

a as be OSB. about to will the for Paul XXX XXX. It's this And it of is siding neighborhood Aaron. in XXX

Okay.

be to that would one have That good online. Yeah. it

had wish Definitely, it you right now.

why That's said. I

too. Meet

Thank you.

Our comes next BMO with Mamtora Ketan from Capital Markets. question

with You question. may proceed your

us can performing? how a you. on Thank But Entekra is you quick give update

Yeah.

to good So intake order see Entekra we for continue the facility.

as facility in progress to we We not want it's are operationally making though it well, the where be.

kind slower. there's made, on we We're a I'm Siding, significant learning would run is to facility on is being progress question see. than cost. and -- progress Paul's like I we back mix So, I think it mean particularly to slower go has efficiency that we as If the of through impact the

match so in plant's California And that the area. Northern how the market we're capability of learning to to the reality

got grow slow would We I So, it's side. still the we operations say on it's towards order would that capital be more more into okay some but plow prove to business Ketan, a it. in progress to ready

what of it. around Brad? a the numbers kind way look this kind Got some of Is there point have to revenues at like

XX million around for we're $XX talking months. Well, last the so

-- it. a million For is of the for bit it's last not trailing in months a kind last little it and is of XX money $XX losing months XX actually we're

I'll turn helpful it color. Good Understood. over. luck. That’s

you. Thank

from Weintraub comes question Mark next Seaport Our Research. with

proceed may with your You question.

follow-ups. quick Three Thanks.

Entekra, So, green light are light/red we just still this year on expecting or necessarily? sometime not

are on on we business green position red call making this -- understanding focused light, light. in our would Mark really that That's that. and yellow totally we focused light, on No, year a

what second little next expect a million square for later linear ballpark? up may feet? magnitude good XXX start feet it in XXX a bit the And about should we Sagola, a Okay. I use similar and order be realize year, on type would or of calendar million square of

yes, need But ballpark we that's agree Mark say I'd now. as And number. a assumption Yes, that next get to for would if quarter or I the two, will. good that's we a we to refine good

quarter of I kind EBITDA about year. Super. margins lastly Alan generally you believe last maybe Siding And XX% this then talked

it the first worse? You some or reasons or that through quarter obviously Is be in despite there the a use came to number that be for still of good better to headwinds. might

long-term margin most that tailwind behind to but say I I'm think guidance, the that's definitely going moment. that I a would at moment, the say At the there's

of thinking Okay. was say that about And when this terms you in year?

was for it long-term Siding business our margin may at in of business what be. terms the No, this

had last you said quarter. I misunderstood Okay. Maybe what

of sort XXXX to a XX%. was misinterpret? that directional you for did -- So I Had

No, still not unreasonable. it's

the have long-term. in may those aren't moment, At answered the dissimilar. I Although

Okay, Thanks much. super. so

Thank you. Babcock, John comes next America. Instructions] from Our question [Operator Bank of

You may with your proceed question.

Hey.

thoughts about quarter play would I how this that wondering, pretty if just wondering so just to here. I but Structural alone. last pullback And generally to products. the this want to there availability quickly quarters on are mix get see was go on. any sheer any how I might I other There at of range, factors other big Also, might you sense again. could So, we I as think or wanted was lack this, assume might get a jumped Solutions the mix some contributed was have if from to I just a of driven much just we just was the for touch that share there? the XX% from by want mix of this quarter

Yeah. Good question.

or our have that to capability is tight contracts to markets, let's Solutions Structural also have are we ability product it Valley, market modify good emphasize for the a into then West take and did the people John in -- these at does not product push again for to availability And what factors around good the contract that's Peace for volume solution offering. that several look We our willing So could they One that the helped. this Coast. restructure structural year, really forget TechShield a get.

tech the able Coast the have strong in we're So curve, Valley field back some ship as to into in we West into past. the we been ramp-up where markets ramped on go Peace

lot a makes still Valley Peace look of commodity. Now

So standpoint volume for it's Structural -- certainly but overall that strategy. an hurt. But our really, didn't from it's Solutions

valid the can we more we easily extremely strong, is in is into offering market. maybe Solutions tight assume down in get market that to but ability the a distress it a little product than Our and a to that Structural have some market, portfolio

coming QX an shipped add sense. is size might Brad year-over-year, that problems. on record we the year's But million the absolute as is increase obviously a that square resin over $XXX of in said back in feet I the of last

Yeah. Understood.

That’s all have. I Thanks. Okay.

the Well, we'll you conclude speaking call a we'll the earnings joining there. first Thank quarter call with again seeing for further close This Thank you us. questions, to will you, for Louisiana-Pacific draw look to no forward soon. everyone and operator.

you concludes for call. you. participating. Thank today's This conference Thank

may You disconnect. now