Earnings Call Transcript - LPX Q4 2020

Operator, Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Louisiana-Pacific Corporation Fourth Quarter and Full Year 2020 Earnings Results 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. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Aaron Howald, Director, Investor Relations. Thank you. Please go ahead, sir.

Aaron Howald, Director, Investor Relations

Thank you, operator, and good morning, everyone. Thank you for joining us today to discuss LP's results for the fourth quarter and full year of 2020 as well as our Q1 outlook. My name is Aaron Howald, and I'm LP's Director of Investor Relations. I'm joined today by Brad Southern, LP's Chief Executive Officer; and Alan Haughie, LP's Chief Financial Officer.

Brad Southern, CEO

Thanks, Aaron, and thank you all for joining us this morning to discuss LP's results for the fourth quarter and full year 2020. As you all know, the housing and repair and remodel markets that LP serves continue to show remarkable resiliency despite the ongoing COVID-19 pandemic, and demand for our products has remained very strong. Q4 was another record for SmartSide as sales increased by 30% to $259 million, and Siding EBITDA nearly doubled year-over-year to $77 million. OSB prices remained exceptionally high throughout the quarter, resulting in $250 million in EBITDA for the OSB segment. All business segments continue to demonstrate outstanding cost control. As a result, LP ended 2020 with $2.8 billion in sales, $781 million in EBITDA, $660 million in operating cash flow, and $4.31 in earnings per share. It was a very strong ending to a uniquely challenging year that leaves LP well positioned for continued growth. Two years ago, we introduced a strategic transformation plan for LP. That plan included a 3-year target of $165 million in cumulative EBITDA improvements from growth, operating efficiency, and strategic sourcing. Today, I am proud to announce that we have exceeded this target a year ahead of schedule, with $177 million in cumulative impact delivered in only 2 years. I want to stress that we measure these results using normalized OSB and raw material prices. So this achievement is not merely an artifact of unusually high OSB prices or favorable movements in the cost of logs or resins. Rather, it is a result of the incredible dedication, creativity, and grit of our sales, operations, logistics, and sourcing teams. Having achieved significantly greater efficiency, we will not only hold those gains, but raise the bar as we continue to drive our growth and value creation strategy.

Alan Haughie, CFO

Thanks, Brad. Slide 8 shows summarized results for the quarter, which are very clean and straightforward. Net sales increased by 60% to $860 million, primarily due to 30% growth of SmartSide and $246 million of higher OSB prices. The resulting EBITDA of $328 million is 7 times last year's result and translated nearly dollar-for-dollar to operating cash flow of $321 million with the benefit of $45 million in tax refunds. We further lowered our year-end share count to 106 million shares after spending $171 million in the quarter to buy back a little over 5 million shares. And with taxes as the only meaningful adjustment to net income, adjusted earnings per share was $2.01 compared to U.S. GAAP earnings per share of $2.34.

Operator, Operator

Our first question comes from the line of John Babcock from Bank of America.

John Babcock, Analyst

I was wondering if you could discuss the Houlton mill a bit more. What makes the Sagola mill in Michigan appealing, whether it's the wood supply or other reasons? Also, could you give us an idea of what the conversion costs might be?

Brad Southern, CEO

Okay. John, did you ask the first part of that question was some of the specifics about why Houlton and then why Sagola? Was that the...

John Babcock, Analyst

Yes. Sorry, I didn't ask that well. I mean, basically, I was just wondering with regards to Sagola. What makes that mill attractive for a Siding conversion just because I don't remember that being mentioned in the past? And then also, if you could just kind of talk about the capital cost for that?

Brad Southern, CEO

Okay. So from a Houlton standpoint, probably the primary attractive part or number one on the list is the fact that it's located in the Northeast. As we've mentioned on earlier calls, we are targeting repair and remodel as a key focus area for growth in Siding, and that Northern and Mid-Atlantic region of the U.S. is a really strong repair and remodel market. So that is what really got us focusing in on Houlton. And then also, we do net present value analyses of these conversions. And to a certain extent, Houlton was more optimal for us because of the LSL capacity there not producing the kind of returns that we see in our OSB mills. From a Sagola standpoint, great wood basket as well. We do like making siding in the central part of the country. Most of our mills are there, but that central location allows us to access the West Coast, the Central part of the U.S., and the East pretty efficiently. Also, the press size for that mill is a good size for Siding conversion. From a capital standpoint, just look back at what we spent on Dawson and Swan; it's a very similar mill configuration to what we have in Sagola. While we haven't made the decision on the finishing capability we want to put into that plant because that can impact capital cost, if you plan around a range of what cost us to convert Swan and Dawson, that would be good guidance for where we are right now.

John Babcock, Analyst

Okay. And then with regards to the Peace Valley OSB mill, I was just wondering if you might be able to provide some sense as to, first of all, why this was one of the mills that was curtailed a little while ago, just so we have a little bit of kind of just what's around that? And then also just general, how we should think about the economics of that? And on a forward base, how you're going to consider whether or not to keep that running? It sounds like it's something that you have in your longer-term plan, but just want some more color on that.

Brad Southern, CEO

John, that's a great question. So at the time of the shutdown, there were two factors worth mentioning. First of all, at the time of the shutdown, the Western Canadian OSB pricing zone was one of the worst zones, if not the worst zone for selling OSB. A good bit of capacity was added to that region over the last decade or so, resulting in really low pricing there. And candidly, we have struggled from a cost management standpoint at that mill in the past. When we looked at those two together, it was a rather obvious decision over the analysis to concentrate the shutdown there. Also, being one of our larger mills with a capacity of 100 million square feet, it presented a significant reduction in volume. Now, why are we confident for starting it up? Well, the pricing dynamics have changed across the various OSB regions, but also the $10 million in capital and the $12 million overall we're planning to spend to restart the mill is focused on some of the bottlenecks that we've experienced in that facility that limited our ability to achieve the cost position we want to have. With the scale of that mill, it should be, and it was originally designed to be one of the low-cost mills in the OSB industry, certainly within our network. We are confident, given our experience with OEE across our other facilities, and with our experience over the last couple of years in reducing costs at Peace Valley’s sister mill, which is our Clark County, Alabama mill, we are in a position to get that mill to be a very low-cost producer in our network and overall for the OSB network. So we're starting this mill up with the expectation that we would run it for a long time. And as we look forward into the next downturn, we would evaluate our entire network and optimize accordingly, but our expectation is we can get Peace Valley to a really good cost position.

John Babcock, Analyst

And just adding to that, will you have any notable change in the product mix that comes out of that facility?

Brad Southern, CEO

Not from the time when we shut it down. That has been a really good TechShield mill for us, and we basically lost a good bit of that volume on the West Coast because it was inefficient for us to replace it from the East. That's also a long press. So we make long-length panels there, which are unique for us. We can only do that in Clark and Peace Valley. We are excited about bringing those Structural Solutions products back into the portfolio on the West Coast with our Peace Valley operation.

John Babcock, Analyst

And then just last question before I turn it over. I was just wondering, you've done really well with the transformation targets and achieving both your growth and efficiency goals there. Will you be able to provide some color on how you're thinking about that for the year ahead? I think you've touched enough on the growth side of things, but on the efficiency side, it might be useful to have some more color there.

Brad Southern, CEO

Well, the combined target for this year, and this includes the Siding growth, is a combined target of $75 million of improvement for this year. We certainly have plans to extend that beyond this year. I want you to know we still have, in OSB and Siding, two to three percentage points improvements in OEE out there just to provide a sense of the target across the board, we are at the 90% OEE, which is our original target for both businesses. We are always working on sourcing savings. So I want to clarify that we're reporting that we hit our year 3 target in year 2, but that annual pace of improvement will continue into the future. We will continue to discuss that on these calls, but when we talk about Siding growth, Structural Solutions growth, improvements in OEE and sourcing savings, those are the four key areas we will focus on as we move into the future.

Operator, Operator

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

Ketan Mamtora, Analyst

Brad, Alan, congrats on a very strong finish to the year. First question, can you talk about the growth that you saw in Q4 and maybe fiscal year 2020 in ExpertFinish? I know you wanted to get it over the next few years, maybe a quarter or a third of your total sales. Can you just remind us where it is in terms of your total sales right now in Siding?

Alan Haughie, CFO

Well, Ketan, it's about 5% of our total sales in Siding. It was our fastest-growing product line in Siding, obviously from a very small base. So it's growth basically from zero to 5%, and it is a clear focus area for us for this year and onward as we continue to grow in the repair and remodel segment.

Ketan Mamtora, Analyst

Got it. And how much headroom do you have in terms of capacity with the three facilities that you currently have for prefinished siding?

Alan Haughie, CFO

Yes. It's a good question. Certainly, we have enough headroom in this year's budget to hit it. But Ketan, the thing about that is that those additional tapelines, either at our existing facilities or greenfield are relatively inexpensive and quick-start projects. I don't foresee any issue with us being constrained on prefinished capacity as we move forward. Let me just add to that question that, given the fact that we will have Houlton making lap siding next year, we will have a decision to make on where to concentrate that Northeast production for prefinish. We haven't decided on that yet, and that solution could include us continuing to do it in our North Carolina facility but really focusing in on that as we go through the year to understand the optimal place to produce that will be important to us. I don't think of prefinished capacity as being a financial constraint for us because it's pretty easy to add on lines at our existing facilities, and they all have the space where we can do that pretty efficiently.

Ketan Mamtora, Analyst

Got it. And then last question. You have $30 million to $35 million CapEx on strategic growth projects. I thought I heard Alan also talk about some new products. So maybe if you can just highlight those two things you're looking at in 2021 and beyond in terms of some of the new product launches?

Brad Southern, CEO

Yes. One of the larger consumers of this strategic capital, other than Houlton conversion, is we make a shake product out of strand siding that we've currently been making at our North Carolina facility. We make the panels for that product. The substrate of that product is in Manitoba. So we're going to put a shake machine in Swan to help significantly increase the capacity of our shake product. Also, that puts it in a more central location as far as reaching the West Coast and the Upper Midwest. That is a really beautiful product and a high-margin product for us. This would be a good example of how we're using capital this year to grow the product portfolio.

Operator, Operator

Our next question comes from the line of Mark Connelly from Stephens.

Mark Connelly, Analyst

Just two things. Are your WeatherLogic and FlameBlock products available in all of the markets where you sell OSB? I assume that TechShield isn't because the value would vary by region, but I'm just curious about the rest of your Structural Solutions?

Brad Southern, CEO

Yes. FlameBlock is available in all regions. WeatherLogic has been a little bit constrained more from a capacity standpoint than any kind of geographic limitations, but we are going into this year with full capability to supply the market for WeatherLogic. There were some constraints last year, though.

Mark Connelly, Analyst

Okay. That's helpful. And then just quickly on the business that you're exiting the fiber siding and CanExel, how much of that business were you able to convert over to SmartSide strength? I'm just trying to understand how much of your strand business was able to capture existing customers or is it all had to come from mill?

Brad Southern, CEO

Mark, that's a good question. From a CanExel standpoint, while prefinished is obviously a focus area for us, you may recall that product line is focused in kind of an Eastern Canadian and European market. We haven't really focused on that or made a hard push to convert that business. I'm not saying we're not picking up some around the edges, but that's not been a focus area for us. Conversely, for fiber production, especially the fiber production that was in retail, that has been a focus area. We did not want to lose the shelf space that we had earned over the years for the fiber panel that we had in there. We have been actively converting that volume over to the strand when we can.

Operator, Operator

Our next question comes from the line of Paul Quinn from RBC Capital Markets.

Paul Quinn, Analyst

Maybe just spend a couple of minutes on Siding here. Just taking a look at Slide 7 with the capacity additions, it looks like your graph is based off that 11% volume CAGR. You did 26% in Q4 and 13% in 2020. Are we being conservative on the 11%? Is it accelerating? Is it decelerating?

Alan Haughie, CFO

Well, Paul, obviously, it's accelerating over the last little while. Looking into next quarter, I don't think 35% is sustainable year-over-year but the changes that we've made in distribution and the new products we've offered, from a volume standpoint, I think 11% is a good number. We are watching from a timing standpoint, that very closely and will adjust the Sagola timing accordingly. If we feel like we're up to more 15% annual volume growth right now, I’m talking not just revenue. Obviously, volume is what's important for capacity. I feel good about where we are from the timing of the Houlton conversion. I wish that was a little bit bigger mill to convert, but that’s the reason for going ahead and getting started on Sagola. I feel good about it. But as you point out, there's not a lot of headroom from a capacity standpoint if we're continuing to grow volume at a 15% rate or so over the next couple of years. We would stay pretty tight until we could get the Sagola conversion.

Paul Quinn, Analyst

Okay. Great. And then maybe, Brad, if you could give us some color just on where you're seeing that regional volume growth? And then, also, what's anticipated for the finishing end at Houlton?

Brad Southern, CEO

Yes. So, the Houlton will be primarily LAP and Trim for us, so the 16-foot product. Where we're seeing growth in distribution is across all geographies. The retail business, as Alan reported, has really been unbelievably strong. We've done a great job of getting shelf space there, retaining it, and adding SKUs. That's been very helpful. Our shed business, after being slow at the beginning of COVID, has really taken off. We’re moving a lot of panel through distribution straight into the shed manufacturer. I would say, LAP and Trim into new construction and repair and remodel has been a little stronger than we would have expected. The panel products through retail and into shed have also been really strong.

Paul Quinn, Analyst

Yes. And just lastly, over the last three or four years, you've introduced a number of new products into the Siding segment. Just wondering what you're seeing—what are the big takeaways from that? What's worked? What hasn't? Where do you go with new product launches?

Brad Southern, CEO

Okay. Let me back up to what's worked, and then I'll look forward. What's been solid for us on the OSB side has been Legacy Flooring and FlameBlock, which has been really good. We learned from the WeatherLogic experience that we really need to have a rounded portfolio of that product, which we rounded out last year. So we feel good about the growth we’ve had; however, it was somewhat constrained by us not having the full portfolio. We've remedied that, and we're ready to increase that product offering as we move into this year. On the Siding side, there have been a lot of good products. We're seeing strong growth with smooth and prefinishes from a very small base, but the market acceptance and need as we push into repair and remodel has made the growth strong. I foresee continued strong percentage growth in those products, largely due to a smaller base. To go from zero to 5% penetration with ExpertFinish is a win. As we look forward, to achieve the double-digit growth we talk about in Siding, we must continue to innovate. Fortunately, our product is very adaptive to innovation. Continuing to build out the portfolio of repair and remodel type products will be important, and shake is one of those products I mentioned earlier. We also need to compete with large builders with a product that we plan to launch this year. These are targeted new products that can fill an edge or provide a real platform for growth. There’s no insight into our innovation initiative here because that’s how we achieve double-digit volume growth, and we intend to be innovative for that.

Operator, Operator

Our next question comes from the line of Mark Weintraub from Seaport Global.

Mark Weintraub, Analyst

Brad, in 2020, I think you produced about 3.54 billion square feet of OSB, just under 1.4 billion in Siding. With the various actions that you're taking, assuming demand is very strong, how much OSB do you think you could be producing in '21 and similarly for SmartSide?

Brad Southern, CEO

There was some downtime in OSB during Q2 due to anticipated COVID-related issues that ultimately did not occur. So regarding the potential OSB capacity in 2021, Aaron, please proceed.

Aaron Howald, Director, Investor Relations

Yes. The COVID downtime was about 100 million feet total taken out, and the capacity for 2021 will be similar plus whatever ramp-up we see in Peace Valley.

Brad Southern, CEO

And then on the Siding side, we've got a capacity of about 400 million square feet a quarter. We do have a press rebuild at Swan scheduled for Q3, which could take that mill down potentially for a month, including the ramp-up time. Other than that, that's the only major scheduled downtime we have, aside from ordinary maintenance downtime.

Mark Weintraub, Analyst

Okay. And just to make sure I'm reading the Slide 7 right. So does the Peace Valley ramp begin at about mid-year or when is that ramp scheduled to begin?

Brad Southern, CEO

For this chart, the earliest we could see production in Peace Valley is Q3, and there wouldn't be a lot in Q3. We’re really looking at Q4 as the first full ramp-up quarter. As I mentioned sometime late Q3 or Q4 of 2022, we expect to hit full capacity there.

Mark Weintraub, Analyst

And then on the cap allocation question, thanks for all the color. If I look at what you've laid out, the $230 million to $220 million for CapEx, you have about $300 million share repurchase authorization, and dividends are an order of magnitude of $70 million a year, that gets to about $600 million. Right now, you're performing even better than last year per your first quarter guidance. If you are generating anywhere close to or even more than what you did this year, what do you think happens with the cash flow above that $600 million that's been allocated already?

Brad Southern, CEO

Yes. We still believe that the company is significantly undervalued. We will continue with our shareholder-focused strategy of returning excess cash to shareholders. You are correct in your assumption that the current $300 million share buyback authorization could be exhausted rather rapidly. That cash flow will ultimately be returned. We're not going to hold cash in.

Operator, Operator

Our next question comes from the line of Kurt Yinger from D.A. Davidson.

Kurt Yinger, Analyst

Just starting on the Siding business and growth. As we look back, I guess, at the back half and the Q1 guide, is there any way to bucket some of the different drivers there between what you would view as underlying market growth, distribution wins, or benefits from new product introductions?

Brad Southern, CEO

Yes. This is an estimate on my part, but I would say the underlying growth, which is happening right now across new construction and repair and remodel, could be in the range of 20% year-over-year. The accelerated growth for us has been the strength in retail and the strength in sheds.

Kurt Yinger, Analyst

Yes. Yes. That's very helpful.

Brad Southern, CEO

The growth in ExpertFinish and our penetration in repair and remodel is also disproportionate because it's off a smaller base.

Kurt Yinger, Analyst

Right. Right. Okay. That makes sense. And I guess, just sticking with ExpertFinish and growing that out, is that something where you need the finishing assets in each geographic market? And could you just remind us what markets you introduced that in, in 2020, and where you're really looking to expand that here this year?

Brad Southern, CEO

Yes. Great question. We started with our first manufacturing base in Green Bay, Wisconsin, near our mill network. We quickly expanded with a facility in St. Louis and then expanded further within our facility at Roaring River, North Carolina. That’s the current footprint. Our focus is currently on the Eastern part of the U.S., including the Upper Midwest, but we are also selling prefinished in the West, working with an independent prefinished network there. Right now, we have made a decision to focus on the Eastern Coast to expand that. We are looking at options to acquire facilities or build our own. Overall, outside the upper part of the Northeast, we aren't limited in our ability to grow prefinished because we get good coverage from our existing network.

Kurt Yinger, Analyst

Got it. So that would be something that distribution would just have it branded as their product and to the extent you chose to add capabilities in certain markets, you could bring that under the LP banner, is that the right way to think about it?

Brad Southern, CEO

Yes. ExpertFinish is everything we sell out of the facilities we have, which are branded ExpertFinish sold as one LP product offering into our distribution network. On the West Coast, those tend to be branded more as SmartSide. We want to control the brand where we make it, and that’s how we've been operating to date.

Kurt Yinger, Analyst

Okay. Makes sense. And lastly, and I apologize if I missed this, but you talked about Houlton's OSB capacity at about 250 million square feet. What's the right way to think about what that mill was actually producing? Is it similar to that?

Brad Southern, CEO

No. It was less than that.

Aaron Howald, Director, Investor Relations

Kurt, this is Aaron. That mill produced both laminated strand lumber and OSB, and the volumes of those ebbed and flowed. It's been a while since Houlton produced its full capacity as oriented strand board. We're just describing that capacity in apples-to-apples terms, so people understand the context of the capacity impacts of that conversion.

Operator, Operator

Our next question comes from the line of Sean Steuart from TD Securities.

Sean Steuart, Analyst

Just a couple of follow-ups. I appreciate all the thoughtful answers so far. On the Siding conversion front, I mean, it doesn't sound like you guys have really seen any cost inflation for these conversion projects, and a bit of an apples-to-oranges comparison. But in the lumber industry, we have seen inflation for large-scale sawmill rebuilds. So I'm wondering if you can provide any context there? And then you touched on your NPV analysis for these types of projects. I'm curious if you can disclose how returns on the capital you’re deploying to these conversions have trended? I assume it's positive, but any context you can give on how those returns have moved over time for these types of projects?

Brad Southern, CEO

Sure. Well, from the capital cost inflation perspective, that is a factor in these rebuilds. We've consistently found a range of conversion costs. There are moving parts within the project, between the different facilities, what we must do from a building standpoint—for Houlton, part of this includes a press rebuild that the other two projects didn't require at the time of conversion. So we've kind of hit on this $120 million to $140 million target for each of the last three conversions from different angles. In some cases, inflation has been offset by a less complicated scope in subsequent projects, but it isn’t a material issue. From a return standpoint, these conversions have been great. We've continued to receive pricing increases that weren’t always baked into our pro forma as aggressively as we've managed to achieve. Additionally, the strength of our Siding growth has quickly filled these plants up with utilization. Therefore, those returns are strong. If you look at the ROIC on our Siding segment, it’s impressive. So we enjoy these conversions. Typically, we're converting high-cost OSB mills into high-return Siding mills.

Sean Steuart, Analyst

Understood. And last question for me. The 25% EBITDA margin for Siding that you're targeting, which has crept higher over time, is the increment just that much more market tension and your ability to raise prices over the long run? Or is it optimization of operations and taking unit costs down over time? Any context on what's driving that gradual improvement to the margin trends?

Brad Southern, CEO

Yes. Both things drive the margin improvement. Firstly, our ability to continue to achieve price improvement annually. Secondly, the ROE initiative around Siding has been outstandingly executed, meaning we're running the mills much more efficiently. Lastly, we are converting mills that were higher-cost into lower-cost mills. Adding these mills lowers the overall cost profile for our network. One of the efficiencies we’ve seen is thanks to the logistics optimization around having Dawson present on the West Coast. All of the investments pay off from a cost perspective, and we historically manage to get efficient pricing that spreads our margins nicely.

Alan Haughie, CFO

I would add that the business has phenomenal operating leverage. If you look at the fourth quarter waterfall as well as the full-year waterfall, in the appendix, look at the ratio of the EBITDA generated that we isolate from SmartSide growth alone—it’s about a 50% incremental margin on each additional dollar. Again, that fundamentally comes from operating leverage with price improvement factored in. This growth at that rate, producing that EBITDA is another way of pushing the underlying long-term margin higher.

Operator, Operator

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

Ketan Mamtora, Analyst

Maybe coming back to Siding. Can you tell us if you've announced any price increase on siding for 2021? And if yes, how is that progressing?

Brad Southern, CEO

Yes. We announced a price increase effective January 1, and we do it by SKU, by geography. The increase is typically in the 3% to 5% range, and overall, we have been successful in getting that pricing.

Ketan Mamtora, Analyst

Got it. And was there any sort of pre-buy in the Q4 numbers? I know in the past, you've allowed something like 110% of Q4's allocation. How was it this time?

Brad Southern, CEO

Ketan, we were so tight. We had a great Q4 and a great December, but I wouldn't call that move-up volume. Distributors do try to get orders in before price increases. However, our order management showed we were so stretched that there wasn't significant volume moved out of January into December as a result. We're just running tightly.

Ketan Mamtora, Analyst

Got it. And then obviously, with what you've announced today with Houlton and Sagola, I'm just curious kind of any updated thoughts around Val-d'Or and the Cook projects that you discussed in the past? How are you thinking about those options?

Brad Southern, CEO

Ketan, we plan to continue growing Siding beyond the Sagola conversion. We will continue to look at all available options for the next fill after that. We own a nice plant site in Cook, as you know, and we have a facility in Val-d'Or, Québec. We also have a newer facility in Maniwaki, Québec, that uses aspen wood. We have Peace Valley and also expansion opportunities within our current mill network. Additionally, there are other companies owning OSB mills in aspen wood baskets that we have periodic conversations with. All of those will be on the table as we think about options beyond the Sagola conversion.

Ketan Mamtora, Analyst

Got it. That's helpful. And one last question. Obviously, we've seen a big rally in a lot of wood product commodities, whether it's lumber, OSB, plywood—are you seeing any signs that this big rally is starting to have any negative impact on demand?

Brad Southern, CEO

Ketan, I've heard from housing experts that product inflation can become an issue around affordability, especially for first-time homebuyers. I can see how that risk would make sense, but we're not seeing any demand impacts in our business right now. The inventories are as lean as they can be, and it's the middle of February. When it comes to the spring building season, it might be one of the constraints out there, but I think there's so much momentum that we will see the growth people forecast over the next couple of years. So while I hear it, and I believe it can be an issue, we aren't seeing evidence of that in our order file.

Aaron Howald, Director, Investor Relations

Thank you, everyone. There appear to be no more questions in the queue. So we will conclude the fourth quarter and year-end earnings call for LP Building Solutions there. Stay safe, everyone, and we look forward to speaking with you again soon. Thank you, operator.

Operator, Operator

Ladies and gentlemen, this concludes today's conference call. Thanks for participating. You may now disconnect.