Owens Corning Inc · NYSE:OC
Owens Corning — Q4 2019 Earnings Presentation
18 slides from Owens Corning's earnings presentation, Feb 19, 2020
Slide 1: Fourth-Quarter and Full-Year 2019 Results
FOURTH-QUARTER AND FULL-YEAR 2019 RESULTS Brian Chambers | Chief Executive Officer Prith Gandhi | Vice President, Chief Financial Officer (interim) February 19, 2020 | Q4 & FY 2019
Slide 2: Forward-Looking Statements and Non-GAAP Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation and the associated remarks contain forward-looking statements. We caution you against relying on these statements as they involve risks and uncertainties that are difficult to predict and the Company’s actual results may differ mater
Slide 3: Agenda
AGENDA Fourth-quarter and full-year review Brian Chambers Financial results Prith Gandhi Questions and discussion All Closing remarks Brian Chambers Company Delivered Net Sales of $7.2 Billion, Generated Record Operating Cash Flow of $1 Billion in 2019 3
Slide 4: 2019 Highlights
2019 HIGHLIGHTS • Sustained high level of safety performance • Grew revenue to $7.2b; 3% growth on a constant currency basis • Delivered adjusted EBIT of $828mm • Produced strong operating cash flow of $1b and free cash flow of $590mm for the year INSULATION COMPOSITES ROOFING Delivered $230mm of EB
Slide 5: Key Financial Data
KEY FINANCIAL DATA ($ in millions, except per share data) Q4 2019 Q4 2018 FY 2019 FY 2018 Net sales 1,692 1,724 7,160 7,057 Net earnings attributable to Owens Corning 73 171 405 545 Diluted earnings per share (EPS) attributable $0.66 $1.55 $3.68 $4.89 to Owens Corning common stockholders Earnings be
Slide 6: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $47 $28 $828 $753 Pension Restructuring settlement losses costs and other FY 2019 EBIT FY 2019 Adj. EBIT Numbers in millions. From left to right, green denotes increase. 6
Slide 7: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $21 $4 $60 $10 $861 $828 Roofing Composites Insulation Corporate FY 2018 Adj. EBIT FY 2019 Adj. EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 7
Slide 8: Insulation Business
INSULATION BUSINESS Current year financial performance ($ in millions) Q4 2019 Q4 2018 2019 2018 Net sales 723 732 2,668 2,720 EBIT 89 115 230 290 Delivered $230mm of EBIT EBIT as % of net sales 12% 16% 9% 11% D&A 48 48 194 186 Generated earnings growth in the technical and other Five-year financial
Slide 9: Composites Business
COMPOSITES BUSINESS Current year financial performance ($ in millions) Q4 2019 Q4 2018 2019 2018 Net sales 480 481 2,059 2,041 2019 revenue growth at constant currency of 3% in a EBIT 56 56 247 251 relatively flat market EBIT as % of net sales 12% 12% 12% 12% D&A 40 38 154 147 Produced 12% EBIT marg
Slide 10: Roofing Business
ROOFING BUSINESS Current year financial performance ($ in millions) Q4 2019 Q4 2018 2019 2018 Net sales 529 546 2,634 2,492 Grew revenue by 6% on above- EBIT 87 83 455 434 market volume growth EBIT as % of net sales 16% 15% 17% 17% D&A 14 13 54 51 Improved EBIT by $21mm, Five-year financial performa
Slide 11: 2019 Highlights
2019 HIGHLIGHTS • Generated free cash flow of $590 million, an increase of $324 million from 2018, resulting in free cash flow conversion of 118% • Returned $95 million of cash to shareholders through dividends • Repurchased 1.0 million shares of common stock for $48 million; as of the end of 2019,
Slide 12: 2020 Corporate Outlook
2020 CORPORATE OUTLOOK • First-quarter 2020 cash dividend of $0.24 per share • Corporate expense of $125mm to $135mm • Capital additions in line with depreciation and amortization of approximately $460mm • Interest expense of approximately $115mm • Cash taxes of approximately 10% to 12% and effectiv
Slide 13: 2020 Business Outlook
2020 BUSINESS OUTLOOK Outlook based on consensus global industrial production, U.S. housing starts, and global commercial and industrial construction indices INSULATION COMPOSITES ROOFING Favorable market outlook for U.S. Weaker first-half glass fiber market Relatively flat U.S. shingle industry new
Slide 14: Questions and Discussion
QUESTIONS AND DISCUSSION
Slide 15: Appendix A: Non-GAAP Reconciliations – Table 1
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 1 15
Slide 16: Appendix A: Non-GAAP Reconciliations – Table 2
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 2 16
Slide 17: Appendix A: Non-GAAP Reconciliations – Table 3
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 3 17
Slide 18: Appendix A: Non-GAAP Reconciliations – Table 4
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 4 18