Louisiana-Pacific Corp (LPX) 2021 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter 2021 Louisiana-Pacific Corporation Earnings Release Conference call. (Operator Instructions) Please be advised that today's conference may be recorded. (Operator Instructions)

女士們，先生們，感謝你們的支持，歡迎來到 Louisiana-Pacific Corporation 2021 年第一季度收益發布電話會議。（操作員說明）請注意，今天的會議可能會被錄製。（操作員說明）

I would now like to turn the conference over to your speaker host, Mr. Aaron Howald, Director of Investor Relations. Please go ahead, sir.

我現在想將會議轉交給您的演講主持人，投資者關係總監 Aaron Howald 先生。請繼續，先生。

Thank you, operator, and good morning, everyone. Thank you for joining us today to discuss LP's results for the first quarter of 2021 as well as our Q2 outlook. My name is Aaron Howald, and I'm LP's Director of Investor Relations. I'm joined this morning by Brad Southern, LP's Chief Executive Officer, and Alan Haughie, LP's Chief Financial Officer.

謝謝接線員，大家早上好。感謝您今天加入我們，討論 LP 2021 年第一季度的業績以及我們的第二季度展望。我叫 Aaron Howald，是 LP 的投資者關係總監。今天早上，LP 的首席執行官 Brad Southern 和 LP 的首席財務官 Alan Haughie 加入了我的行列。

We are hosting a simultaneous webcast in addition to this conference call, and we have uploaded a presentation to which we will refer during this morning's discussion. We also filed our 8-K this morning with some additional information. All these materials are available on LP's Investor Relations website, www.investor.lpcorp.com.

除了本次電話會議之外，我們還同時舉辦了一次網絡直播，我們還上傳了一份演示文稿，我們將在今天上午的討論中參考該演示文稿。我們今天早上還提交了 8-K，其中包含一些額外信息。所有這些材料都可以在 LP 的投資者關係網站 www.investor.lpcorp.com 上找到。

Slides 2 and 3 of the accompanying presentation provide notices in detail about forward-looking statements and non-GAAP financial metrics. The appendix of the presentation also contains some necessary reconciliations that are further supplemented by this morning's 8-K filing. Rather than reading those statements, I will refer to you to those supplemental materials.

隨附演示文稿的幻燈片 2 和 3 提供了有關前瞻性陳述和非 GAAP 財務指標的詳細通知。演示文稿的附錄還包含一些必要的對賬，今天上午的 8-K 文件進一步補充了這些對賬。我不會閱讀這些陳述，而是請您參考這些補充材料。

And now I'll turn the call over to Brad.

現在我會把電話轉給布拉德。

Thanks, Aaron. Good morning, everyone, and thank you for joining us to discuss LP's results for the first quarter of 2021. Robust customer demand for all of LP's products has continued, driven by ongoing strength in homebuilding and remodeling, resulting in an outstanding quarter for LP.

謝謝，亞倫。大家早上好，感謝您加入我們討論LP 2021年第一季度的業績。在房屋建築和改建的持續強勁推動下，客戶對 LP 所有產品的強勁需求持續存在，導致 LP 的季度表現出色。

SmartSide net sales grew by nearly 50% versus Q1 of last year to $283 million and EBITDA more than doubled to $90 million. Smooth and ExpertFinish volumes more than doubled, with those innovative products reaching 8% of total SmartSide volume. OSB prices continued to climb throughout Q1, with the result that LP's OSB segment generated extraordinary cash flow.

SmartSide 淨銷售額與去年第一季度相比增長近 50%，達到 2.83 億美元，EBITDA 翻了一番多，達到 9000 萬美元。Smooth 和 ExpertFinish 的銷量增加了一倍多，這些創新產品達到 SmartSide 總銷量的 8%。OSB 價格在整個第一季度繼續攀升，結果是 LP 的 OSB 部門產生了非凡的現金流。

LP's South American segment also had a very strong quarter, with 50% more sales and 3x more EBITDA than the first quarter of last year. As a result, LP exceeded $1 billion in sales, generated $461 million in EBITDA and $314 million in operating cash flow and earned $3.01 per share, all of which are quarterly records.

LP 的南美分部也有一個非常強勁的季度，與去年第一季度相比，銷售額增長了 50%，EBITDA 增長了 3 倍。結果，LP 的銷售額超過 10 億美元，產生了 4.61 億美元的 EBITDA 和 3.14 億美元的運營現金流，每股收益 3.01 美元，均創下季度記錄。

Last quarter, we announced a phased integrated capacity expansion plan that included converting our mill in Houlton, Maine from LSL and OSB to SmartSide, the restart of our Peace Valley OSB mill in Fort St. John, British Columbia, and plans to convert our OSB mill in Sagola, Michigan to siding. Let me briefly update you on those projects.

上個季度，我們宣布了一項分階段的綜合產能擴張計劃，其中包括將我們位於緬因州霍爾頓的工廠從 LSL 和 OSB 轉換為 SmartSide，重啟我們位於聖路易斯堡的 Peace Valley OSB 工廠。約翰，不列顛哥倫比亞省，併計劃將我們位於密歇根州薩戈拉的定向刨花板工廠改造成壁板。讓我簡要介紹一下這些項目。

The Houlton conversion is underway and on schedule despite some expected difficulties with travel and contractor access presented by COVID. We expect to begin SmartSide production at Houlton less than a year from now in late Q1 of next year. We are excited about the capacity expansion that these investments in Houlton represent, and we are gratified by the enthusiastic responses from local and regional suppliers and community stakeholders. Given the strength of SmartSide demand, we are exploring options to accelerate the conversion of Sagola. We're also evaluating and prioritizing subsequent projects to add capacity by conversion and/or expansion of existing facilities as well as growing prefinishing capacity. SmartSide has a long runway for growth ahead as we innovate, capture share, expand addressable markets and execute an aggressive capacity expansion strategy.

儘管 COVID 帶來了旅行和承包商訪問方面的一些預期困難，但 Houlton 轉換正在進行中並按計劃進行。我們預計從現在起不到一年的時間即明年第一季度末開始在霍爾頓生產 SmartSide。我們對霍爾頓的這些投資所代表的產能擴張感到興奮，我們對當地和區域供應商以及社區利益相關者的熱情回應感到滿意。鑑於 SmartSide 的需求強勁，我們正在探索加速 Sagola 轉換的方案。我們還在評估和優先考慮後續項目，以通過轉換和/或擴展現有設施以及增加預加工能力來增加產能。隨著我們不斷創新、佔領市場份額、擴大潛在市場並執行積極的產能擴張戰略，SmartSide 未來的增長還有很長的路要走。

Process to resume OSB reduction in Peace Valley is also going quite well. I want to complement the small team that has maintained the mill since we idled it in the summer of 2019. They have kept the equipment in excellent condition, and we anticipate minimal impediments to an efficient restart. We're also pleased by the number of former employees who are returning to the mill, we're glad to welcome them back, and we look forward to resuming production in early Q3.

和平谷恢復 OSB 減少的進程也進展順利。自 2019 年夏天工廠閒置以來，我想補充維護工廠的小團隊。他們使設備保持良好狀態，我們預計有效重啟的障礙最小。我們也對返回工廠的前員工人數感到高興，我們很高興歡迎他們回來，我們期待在第三季度初恢復生產。

Last quarter, I spoke about the challenges presented by shortages of MDI, the resident use and manufacture of SmartSide and OSB. MDI availability has improved significantly, and we are essentially back to normal levels of supply with OSB mills once again using planned levels of MDI. This episode has highlighted the strategic value of having Siding and OSB integrated in LP's portfolio.

上個季度，我談到了 MDI 短缺、SmartSide 和 OSB 的常駐使用和製造帶來的挑戰。MDI 可用性已顯著提高，我們基本上恢復到正常供應水平，OSB 工廠再次使用計划水平的 MDI。這一事件突出了將 Siding 和 OSB 整合到 LP 產品組合中的戰略價值。

SmartSide uses MDI exclusively, but OSB can use alternate rests. When supply has become constrained, we were able to allocate scarce MDI from OSB to Siding. Without which Siding, we have struggled to achieve another outstanding quarter of growth.

SmartSide 專門使用 MDI，但 OSB 可以使用備用休息。當供應受到限制時，我們能夠將稀缺的 MDI 從 OSB 分配給 Siding。沒有 Siding，我們很難實現另一個出色的季度增長。

While the MDI supply has improved, global shortage of vinyl acetate-based adhesives has forced decreased production of TechShield, LP's Radiant Barrier sheeting product in the second quarter. The vinyl acetate supply situation is improving, and we expect to be back to normal levels of TechShield production by the end of the quarter. However, as COVID subsides in North America and the broader economy rebounds, supply chain disruptions and tight logistics availability are likely to present challenges going forward. We recognize the difficulties this creates for LP's customers, particularly in an environment with such strong demand. We're doing everything we can to mitigate the impact of these issues through strategic sourcing and network optimization, and we are adding SmartSide and OSB capacity as safely, efficiently and quickly as possible.

雖然 MDI 供應有所改善，但全球醋酸乙烯基粘合劑短缺迫使 LP 的 Radiant Barrier 片材產品 TechShield 在第二季度的產量下降。醋酸乙烯供應情況正在改善，我們預計到本季度末 TechShield 生產將恢復到正常水平。然而，隨著北美 COVID 消退和更廣泛的經濟反彈，供應鏈中斷和物流供應緊張可能會給未來帶來挑戰。我們認識到這給 LP 的客戶帶來的困難，尤其是在需求如此強勁的環境中。我們正在盡一切努力通過戰略採購和網絡優化來減輕這些問題的影響，並且我們正在盡可能安全、高效和快速地添加 SmartSide 和 OSB 容量。

Finally, I'm happy to announce that LP is in the initial phases of returning to our national headquarters after more than a year of working from home. While we are relieved and gratified to be slowly getting back to normal, I want to acknowledge that for the majority of LP's mill employees as well as many customers, working from home was not feasible.

最後，我很高興地宣布，經過一年多的在家工作，LP 正處於返回我們國家總部的初始階段。雖然我們對慢慢恢復正常感到欣慰和欣慰，但我想承認，對於大多數 LP 的工廠員工和許多客戶來說，在家工作是不可行的。

And while COVID-19 vaccines are now widely available in the U.S. and Chile, vaccination rates continue to lag in Canada and Brazil. The situation is improving, but we are not out of the woods yet. Ongoing diligence in care exercised by LP's pandemic response team and mill employees are helping minimize operational impacts from COVID, enabling LP to supply our customers the products they need to build and renovate homes. I encourage all of them and all of you on the call to continue to exercise appropriate precautions and get vaccinated as soon as possible.

儘管 COVID-19 疫苗現已在美國和智利廣泛使用，但加拿大和巴西的疫苗接種率仍然落後。情況正在好轉，但我們還沒有走出困境。LP 的大流行應對團隊和工廠員工持續勤勉盡責，有助於最大限度地減少 COVID 對運營的影響，使 LP 能夠為我們的客戶提供建造和翻新房屋所需的產品。我鼓勵他們所有人和所有在電話中的人繼續採取適當的預防措施並儘快接種疫苗。

LP had a remarkable first quarter. And while challenges remain, very strong housing in RNR markets resulting in intense demand for SmartSide and OSB, keeping our near-term outlook exceptionally positive.

LP 第一季度表現出色。儘管挑戰依然存在，但 RNR 市場非常強勁的住房導致對 SmartSide 和 OSB 的強烈需求，使我們的近期前景非常樂觀。

With that, I will turn the call over to Alan for a more detailed discussion of LP's financial results for Q1 and outlook for Q2.

有了這個，我將把電話轉給艾倫，以更詳細地討論 LP 第一季度的財務業績和第二季度的展望。

Thanks, Brad. Slide 6 shows summarized results for the quarter, which, much like the fourth quarter, are clean and straightforward with ongoing SmartSide growth and higher OSB prices as the most significant drivers.

謝謝，布拉德。幻燈片 6 顯示了本季度的總結結果，與第四季度非常相似，乾淨明了，持續的 SmartSide 增長和更高的 OSB 價格是最重要的驅動因素。

Compared to the first quarter of last year, net sales increased by 74% to just over $1 billion, driven by 49% growth in SmartSide and over $330 million of significantly higher OSB prices. The resulting EBITDA of $461 million is more than 5x last year's result. We generated $314 million of operating cash flow, including increased capital investments and heavy spending on logs, common practice for LP in the first quarter. The $3.01 per share of adjusted earnings is 10x that in the first quarter last year.

與去年第一季度相比，受 SmartSide 增長 49% 和 OSB 價格大幅上漲超過 3.3 億美元的推動，淨銷售額增長了 74%，達到略高於 10 億美元。由此產生的 EBITDA 為 4.61 億美元，是去年結果的 5 倍多。我們產生了 3.14 億美元的運營現金流，包括增加的資本投資和大量原木支出，這是 LP 在第一季度的常見做法。調整後每股收益為 3.01 美元，是去年第一季度的 10 倍。

In terms of capital allocation, we paid $17 million in dividends in the first quarter and spent $122 million to repurchase 2.4 million shares. We've continued buying back shares through the second quarter and as of the close of business yesterday, had just $32 million remaining of our existing $300 million buyback authorization. All else equal, that remaining authorization will be exhausted by the end of this week. I'm therefore delighted to report that LP's Board of Directors has authorized a further $1 billion of share repurchases, which we plan to launch immediately. LP's Board also declared a dividend of $0.16 per share payable on June 1.

在資本配置方面，我們在第一季度支付了 1700 萬美元的股息，並花費 1.22 億美元回購了 240 萬股股票。我們在第二季度繼續回購股票，截至昨天營業結束，我們現有的 3 億美元回購授權僅剩 3200 萬美元。在其他條件相同的情況下，剩餘的授權將在本週末用完。因此，我很高興地向大家報告，LP 的董事會已批准再進行 10 億美元的股票回購，我們計劃立即啟動。LP 董事會還宣布將於 6 月 1 日派發每股 0.16 美元的股息。

Slide 7 highlights the cleanliness of the quarter from a reporting perspective. Continued SmartSide growth and OSB price appreciation resulted in $93 million and $333 million, respectively, of incremental revenue for the quarter, compared to which everything else is really just a rounding error. All $333 million of the incremental OSB pricing and 55% of the incremental SmartSide revenue translated into EBITDA, with everything else aggregating to a net negative of $6 million.

幻燈片 7 從報告的角度強調了本季度的清潔度。SmartSide 的持續增長和 OSB 價格的上漲分別為本季度帶來了 9300 萬美元和 3.33 億美元的增量收入，與此相比，其他一切實際上只是一個舍入誤差。所有 3.33 億美元的增量 OSB 定價和 55% 的增量 SmartSide 收入都轉化為 EBITDA，其他所有因素加起來為 600 萬美元的淨負值。

Slide 8 provides an update on our transformation. On a trailing 12-month basis, SmartSide revenue grew at twice the rate of single-family housing starts. Consequently, and as the table on the right shows, SmartSide growth dominates the first quarter, accounting for $53 million of $65 million transformation in the quarter. The resident substitution, which Brad referenced earlier, accounts for the negative $4 million in efficiency.

幻燈片 8 提供了我們轉型的最新情況。在連續 12 個月的基礎上，SmartSide 收入的增長速度是單戶住宅開工率的兩倍。因此，如右表所示，SmartSide 增長主導了第一季度，佔本季度 6500 萬美元轉型中的 5300 萬美元。Brad 之前提到的居民替代導致了 400 萬美元的負效率。

Given that SmartSide growth contributes the lion's share of our transformation dollars in the quarter, Slide 9 looks a little deep into that growth. The bar chart on the left is not repeat of Slide 8. This chart shows SmartSide revenue growth for just the quarter relative to single family starts. The pie chart on the right provides more resolution of the sources of SmartSide growth. While total volume grew by 39%, the volume of the more innovative smooth, prefinished and shake products grew to 140%. As such, their share of the total volume increased from under 5% to just over 8%. The substantially higher average selling prices of these new products also contributed 1 point to overall price growth in the fourth quarter.

鑑於 SmartSide 的增長貢獻了本季度我們轉型資金的最大份額，幻燈片 9 對這種增長看起來有點深入。左側的條形圖不是幻燈片 8 的重複。此圖表顯示了 SmartSide 僅在本季度相對於單戶家庭開工的收入增長。右邊的餅圖提供了 SmartSide 增長來源的更多解析。雖然總銷量增長了 39%，但更具創新性的柔滑、預製和奶昔產品的銷量增長到了 140%。因此，它們在總量中的份額從不到 5% 增加到略高於 8%。這些新產品的平均售價大幅上漲也為第四季度的整體價格增長貢獻了 1 個百分點。

The waterfalls on Slides 10 and 11 show year-over-year revenue and EBITDA growth in the Siding and OSB segments for the quarter. Slide 10 covers Siding. The 49% revenue growth for SmartSide is the result of 39% volume growth compounded by 7% price growth and adds $93 million in sales and $51 million in EBITDA, for an incremental EBITDA margin of 55%. OEE and sales and marketing efficiencies offset increased costs for freight and the dwindling nonrecurrence of fiber sales reduced revenue by $20 million and EBITDA by $2 million. The resulting Siding segment EBITDA of $90 million on $285 million of revenue, yields an EBITDA margin of 32%.

幻燈片 10 和 11 上的瀑布顯示了本季度 Siding 和 OSB 部分的同比收入和 EBITDA 增長。幻燈片 10 蓋壁板。SmartSide 49% 的收入增長是 39% 的銷量增長和 7% 的價格增長的結果，銷售額增加了 9300 萬美元，EBITDA 增加了 5100 萬美元，EBITDA 利潤率增加了 55%。OEE 以及銷售和營銷效率的提高抵消了貨運成本的增加以及纖維銷售的減少使收入減少了 2000 萬美元，EBITDA 減少了 200 萬美元。由此產生的 Siding 部門 EBITDA 為 9000 萬美元，收入為 2.85 億美元，EBITDA 利潤率為 32%。

Slide 11 shows the quarter in more detail for OSB and is dominated by ongoing record high OSB prices. We estimate the impact of MDI scarcity and alternate resin substitution at roughly 80 million square feet or 7% of volume due to reduced operating efficiency or OEE. And as Brad said, the supply chain for that resin seems to have stabilized. We will, of course, continue to monitor that situation and other potential supply chain interruptions closely. LP's ability to substitute alternate resins for OSB production and therefore, to be able to strategically allocate all available MDI to the Siding segment was a unanticipated benefit of having these segments under the LP umbrella. OSB prices will continue to grab headlines for sure, but LP's results this quarter are in no small measure a testament to the agility of the Siding and OSB operations team and LP's strategic sourcing team as they collaboratively navigated the MDI shortage.

幻燈片 11 更詳細地顯示了本季度的 OSB，主要是持續創紀錄的 OSB 價格。由於運營效率或 OEE 降低，我們估計 MDI 稀缺和替代樹脂替代的影響約為 8000 萬平方英尺或體積的 7%。正如布拉德所說，該樹脂的供應鏈似乎已經穩定下來。當然，我們將繼續密切監視這種情況和其他潛在的供應鏈中斷。LP 有能力用替代樹脂替代 OSB 生產，因此能夠戰略性地將所有可用的 MDI 分配給壁板部分，這是將這些部分置於 LP 保護傘下的意外好處。OSB 價格肯定會繼續成為頭條新聞，但 LP 本季度的業績在很大程度上證明了 Siding 和 OSB 運營團隊以及 LP 的戰略採購團隊在協同應對 MDI 短缺方面的敏捷性。

And as you will see in the cash flow summary on Page 14 of the appendix of the accompanying presentation other than cash taxes, the only meaningful difference between EBITDA and operating cash flow is a substantial increase in working capital. And this is almost entirely the result of higher OSB prices raising accounts receivable balances and the normal seasonal accumulation of logs I mentioned earlier.

正如您將在隨附演示文稿附錄第 14 頁的現金流摘要中看到的那樣，除現金稅外，EBITDA 與運營現金流之間唯一有意義的區別是營運資金的大幅增加。而這幾乎完全是由於更高的 OSB 價格提高了應收賬款餘額以及我之前提到的原木的正常季節性積累。

The bridge from the $314 million of operating cash flow to the net change in cash is similarly uneventful. With buybacks, CapEx, dividends and payments associated with refinancing, our long-term debt as the only material items. Reconciliations of net income to both adjusted EBITDA and adjusted income are also straightforward with depreciation and a rather large but appropriately proportional provision for taxes as the only items I've not already mentioned.

從 3.14 億美元的運營現金流到現金淨變化的過渡也同樣平穩。通過回購、資本支出、股息和與再融資相關的付款，我們的長期債務是唯一的重要項目。淨收入與調整後 EBITDA 和調整後收入的對賬也很簡單，折舊和相當大但比例適當的稅收準備金是我唯一沒有提到的項目。

Slide 12 provides updated guidance for capital expenditures for the year. As Brad said, we are exploring opportunities to accelerate our siding capacity expansion. The Houlton conversion, restarting Peace Valley, other growth capital and the basis of sustaining maintenance, altogether, bring our capital expenditures for the full year in the range of $230 million to $250 million. In other words, we're raising our CapEx guidance by about $10 million.

幻燈片 12 提供了本年度資本支出的最新指南。正如布拉德所說，我們正在探索加速側線產能擴張的機會。霍爾頓轉換、重啟和平谷、其他增長資本和持續維護的基礎，使我們全年的資本支出在 2.3 億美元至 2.5 億美元之間。換句話說，我們將資本支出指導提高了約 1000 萬美元。

And with extremely robust housing and repair and remodel markets, fueling intense demand for SmartSide and OSB, our order files give us some visibility into the remainder of the second quarter. For the OSB segment, prices continue to climb, with the result that we believe OSB revenue will be at least 30% sequentially higher in the second quarter than in the first. We also expect another strong quarter of SmartSide growth with revenue for the second quarter, at least 30% higher than last year, which would mark the fourth consecutive quarter of growth above 20%.

憑藉極其強勁的住房和維修和改造市場，推動了對 SmartSide 和 OSB 的強烈需求，我們的訂單文件讓我們對第二季度剩餘時間有了一些了解。對於 OSB 部分，價格繼續攀升，因此我們認為第二季度 OSB 收入將至少比第一季度高出 30%。我們還預計 SmartSide 的第二季度收入將再次強勁增長，至少比去年高出 30%，這將標誌著連續第四個季度增長超過 20%。

Assuming the Siding and OSB scenarios I just detailed and given all the usual caveats about certain demand shocks or other unforeseeable events, we expect EBITDA for the second quarter to be at least $580 million, another quarter of record results and outstanding cash flow generation.

假設我剛剛詳述的 Siding 和 OSB 情景，並給出了關於某些需求衝擊或其他不可預見事件的所有常見警告，我們預計第二季度的 EBITDA 至少為 5.8 億美元，這是另一個創紀錄的季度業績和出色的現金流生成。

Before handing the call over for Q&A, I do want to discuss our expectations for full year revenue growth for SmartSide. Demand continues to be very strong, and we expect to continue running our mills at or near capacity for the remainder of the year. Also, ExpertFinish, Smooth and Shakes, should continue to grow as a percentage of total Smartside volume and revenue. However, given the acceleration of growth in the second half of last year, we simply cannot increase year-over-year revenue by much more than 10% in the second half of 2021. So all said, this would bring full year SmartSide growth to roughly twice our previous long-term guidance of 10% to 12% per year.

在接聽電話進行問答之前，我確實想討論一下我們對 SmartSide 全年收入增長的預期。需求繼續非常強勁，我們預計在今年餘下的時間裡，我們的工廠將繼續以滿負荷或接近滿負荷運行。此外，ExpertFinish、Smooth 和 Shakes 佔 Smartside 總銷量和收入的百分比應該會繼續增長。但是，考慮到去年下半年的加速增長，我們在 2021 年下半年的收入同比增長根本不可能超過 10%。總而言之，這將使 SmartSide 的全年增長達到我們之前每年 10% 至 12% 的長期指導的大約兩倍。

And with that, we'll be happy to take your questions.

因此，我們很樂意回答您的問題。

(Operator Instructions) And our first question coming from the line of Mark Weintraub with Seaport Global.

（操作員說明）我們的第一個問題來自 Seaport Global 的 Mark Weintraub。

Congratulations. Obviously, fantastic times for you. In terms of the alternative growth in Siding and some of the things that you're looking at, can you give us a sense as to what they might represent? And perhaps if we can understand the magnitude of volume they could represent and the cost to get it recognizing that these would be preliminary indications?

恭喜。顯然，這對你來說是美好的時光。就 Siding 的替代增長以及您正在關注的一些事物而言，您能否告訴我們它們可能代表什麼？也許我們是否能夠了解它們可能代表的數量級以及將其認識到這些將是初步跡象的成本？

Yes, Mark, I'll talk really 3 areas of -- 3 types of investments we're looking at making for continued growth, and this is not in any priority order. First of all would be adding additional press capacity at existing facilities that currently make SmartSide. We like the idea of having a trained workforce on the ground. So those locations that have sufficient wood supply to accommodate significant growth. In most cases, that would mean at least doubling of growth.

是的，馬克，我真的會談 3 個領域——我們正在考慮進行的 3 種類型的投資，以實現持續增長，這沒有任何優先順序。首先是在目前生產 SmartSide 的現有設施上增加額外的壓力機產能。我們喜歡在實地擁有訓練有素的員工隊伍的想法。因此，那些有足夠木材供應以適應顯著增長的地方。在大多數情況下，這將意味著至少增長一倍。

From a press standpoint, we're looking at that as what's called a brownfield scenario. Secondly, we -- even after Sagola, we will have Maniwaki and Peace Valley, both producing OSB and Aspen wood baskets. And so those 2 facilities are certainly candidates for conversion. And then finally, what would be more of a greenfield scenario, which is the best example would be the cook, Minnesota piece of land that we own that would -- that has had, as we've planned on in the past as far as greenfielding a siding mill. So honestly, some combination of those 3 type of opportunities will play out, in my view, over the next 10 years as we continue to grow siding capacity.

從媒體的角度來看，我們將其視為所謂的棕地情景。其次，即使在 Sagola 之後，我們還將擁有 Maniwaki 和 Peace Valley，它們都生產定向刨花板和白楊木籃子。因此，這 2 個設施肯定是轉換的候選對象。最後，更像是綠地的情景，最好的例子就是廚師，我們擁有的明尼蘇達州的一塊土地，就像我們過去計劃的那樣新建壁板廠。所以老實說，在我看來，隨著我們繼續增加側線容量，這 3 種機會的某種組合將在未來 10 年內發揮作用。

From a capacity standpoint, just to I mean speak generally, not to be overly obvious about things, converting an existing OSB mill is probably the most -- without doubt the most efficient use of capital because, obviously, utilizing a lot of redundant resources. And then a brownfield facility at an existing location, it wouldn't be -- there would be capital efficiency associated with that. But not buying land, there are certain components of the mill that would not have to double up on. And then, obviously, more of a greenfield scenario would be the most expensive.

從產能的角度來看，我的意思是一般來說，不要過於明顯，轉換現有的 OSB 工廠可能是最多的——毫無疑問，這是最有效的資本利用，因為很明顯，它利用了大量的冗餘資源。然後在現有位置的棕地設施，它不會 - 與此相關的資本效率。但不是購買土地，工廠的某些組件不必加倍。然後，顯然，更多的綠地方案將是最昂貴的。

Great. And curious, Val-d'Or didn't get a mention there. Is that no longer a consideration? Or...

偉大的。奇怪的是，那裡沒有提到 Val-d'Or。是不是不再考慮了？或者...

Sorry, sorry. That's an oversight on my part, which would be a restart of a shutdown ability in Val-d'Or, yes.

實在抱歉。這是我的一個疏忽，這將是 Val-d'Or 中關閉功能的重啟，是的。

Okay, super. And then -- and just as a quick follow-up, 32% margins in Siding. I know -- just I think it was last quarter, you increased your expectations on what the business can drive over the long haul. That's -- this 32% is a lot higher than even where your longer-term updated view had been. Any thoughts as to how sustainable this type of margin can potentially be?

好的，超級。然後——作為快速跟進，Siding 的利潤率為 32%。我知道——我認為是上個季度，你提高了對業務長期發展的期望。那就是——這個 32% 比你的長期更新觀點高得多。關於這種利潤率的可持續性有何想法？

Yes. I would say that the sustainability comes from improved mix, which is the -- why we emphasized so much the new products that we've launched over the last 3 or 4 years, which with Prefinish Shakes, Smooth, all carry a premium over what we -- over our basic prime product. As I've mentioned before too on the call, if we bias mix to Trim, and that can be very favorable to price as well. So that's -- so we're looking at our innovation strategy as a means to increase margin, and it certainly does. I will say that the constraint on that as we gain market share, there is a competitive nature, obviously, to a big base of business that we have in lap and panel. And so we are keeping our options open, if that's the right way of saying it, to be competitive when it comes to big builder business. And our business at the home centers, which can be a little more competitive from a pricing standpoint.

是的。我會說可持續性來自改進的組合，這就是為什麼我們如此強調我們在過去 3 或 4 年推出的新產品，這些產品與 Prefinish Shakes、Smooth 相比，都具有溢價我們 - 我們的基本主要產品。正如我之前在電話會議上提到的那樣，如果我們偏向於 Trim，那麼價格也可能非常有利。這就是 - 所以我們正在將我們的創新戰略視為增加利潤的一種手段，而且確實如此。我要說的是，隨著我們獲得市場份額，對我們擁有的大型業務基礎顯然具有競爭性的限制。因此，我們保持開放的選擇，如果這是正確的說法，那麼在涉及大型建築商業務時具有競爭力。我們在家庭中心的業務，從定價的角度來看可能更具競爭力。

And our next question coming from the line of Ketan Mamtora with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Ketan Mamtora。

Congrats, Brad, Alan. Obviously, a very strong start to the year. Maybe just coming back to Sagola, I mean you are talking about kind of pulling forward the timeline of that. Last quarter, you were talking about potentially 2023 Q3 start-up, but sounds like sooner. I'm just curious, given that you've got Houlton going on right now. When is the earliest you could you could convert that mill, obviously, if demand remains strong?

恭喜，布拉德，艾倫。顯然，今年的開局非常強勁。也許只是回到 Sagola，我的意思是你說的是將時間線提前。上個季度，您談到可能在 2023 年第三季度啟動，但聽起來更早。我只是很好奇，因為你現在已經讓 Houlton 繼續了。顯然，如果需求保持強勁，您最早什麼時候可以轉換該工廠？

Ketan, I would say, the earliest we could get production from that mill would be probably a year after the Houlton start-up, which should be Q1 of 2023, give me a little latitude on that as we continue to work on the engineering. But we are on a parallel path, obviously, with a huge focus on Houlton first, but we intend to bring that -- to convert that facility over to siding as quickly as we can, given the work that's ahead of us to do the Houlton conversion first. So let's -- why don't we target Q1 of 2023, and then we'll continue to update you on the calls as that either moves forward a quarter or back a quarter or 2, given, a, what we need to do from a demand standpoint, but also as we refine our engineering work on Sagola.

Ketan，我想說，我們最早可以從該工廠開始生產可能是在 Houlton 啟動一年後，也就是 2023 年第一季度，在我們繼續進行工程設計的過程中給我一點自由度。但顯然，我們在平行的道路上，首先非常關注霍爾頓，但我們打算把它——盡快將該設施轉換為側線，因為我們前面要做的工作是做霍爾頓先轉換。那麼讓我們 - 為什麼我們不以 2023 年第一季度為目標，然後我們將繼續向您通報最新情況，因為這會向前移動四分之一或向後移動一個季度或兩個，給定，a，我們需要做什麼一個需求的觀點，同時也是我們在 Sagola 上改進我們的工程工作。

Got it. That's helpful. And then maybe you talked about kind of demand has remained strong in both OSB and Siding. Maybe talk about kind of what do the order backlogs look like for this time of the year in both OSB and Siding?

知道了。這很有幫助。然後也許你談到了 OSB 和 Siding 的需求仍然強勁。也許談談 OSB 和 Siding 每年這個時候的訂單積壓情況如何？

Yes. They're extremely strong in both products, throw EWP in there as well. The -- I mean just -- it's unprecedentedly strong, but it's always strong in Q2. So I mean, that's -- the seasonality has kicked in. But there has been no weakening in the order file in any of our 3. Well, I'll throw South America and there too -- any of our core businesses, very strong order files.

是的。他們在這兩種產品中都非常強大，也將 EWP 投入其中。- 我的意思是 - 它空前強大，但它在第二季度一直很強勁。所以我的意思是，那是 - 季節性已經開始。但是我們 3 個中的任何一個的訂單文件都沒有減弱。好吧，我會拋出南美和那裡 - 我們的任何核心業務，非常強大的訂單文件。

And then just final question around capital allocation. Balance sheet is in a very strong position. Q2 cash will be kind of really robust as well, and you -- Alan just mentioned that with the $1 billion authorization announced your plan to launch this week. What is the right way of sort of thinking about the cadence around share repurchases? I'm not asking about sort of specific quarterly guidance. But given the strong balance sheet, sort of what is the right way to think about kind of leverage for LP and the way you think about deploying cash for repurchases?

然後是關於資本配置的最後一個問題。資產負債表處於非常有利的地位。Q2 現金也將非常強勁，而你——艾倫剛剛提到，在 10 億美元的授權下，你宣布了本週推出的計劃。思考股票回購節奏的正確方法是什麼？我不是在問某種特定的季度指導。但鑑於強勁的資產負債表，考慮 LP 槓桿類型的正確方法以及您考慮部署現金進行回購的方式是什麼？

So Ketan, the -- our balance sheet, as you mentioned, is very strong. Our balance sheet will be strong after we execute this share repurchase authorization. So there's -- in our view, in my view, specifically, we're not risking the company at all by this $1 billion, certainly doable from a cash generation standpoint. We'll remind you this is an authorization not a plan to spend it. So we've got some flexibility if things were to slow down later in the year or next year. But obviously, our plan is to deploy that authorization promptly to begin the deployment promptly. The rationale behind the share repurchase as a capital allocation tool, is it even at $70 share price? Which I don't know if we're there at that moment. I don't have it in front of me, but we were at the beginning of the call. I still think, and Alan, I think, shares this and certainly our Board, we still believe we're significantly undervalued. And so we feel that there's a good justification. Just on that note to buy back shares, not only just because we have the money. So our rationale behind that is that it remains a good investment for our shareholders to be in an aggressive share repurchase mindset at LP, and then I will reassure our shareholders that we will be prudent about that and deploy it in a way that makes sense given the economic reality at the time.

所以 Ketan，正如你提到的，我們的資產負債表非常強勁。在我們執行此股份回購授權後，我們的資產負債表將會強勁。因此，在我們看來，特別是在我看來，我們根本不會拿這 10 億美元來冒險，從現金產生的角度來看，這當然是可行的。我們會提醒您，這是一項授權，而不是一項支出計劃。因此，如果事情在今年晚些時候或明年放緩，我們有一些靈活性。但很明顯，我們的計劃是立即部署該授權以立即開始部署。股票回購作為資本配置工具背後的基本原理，甚至是 70 美元的股價嗎？我不知道我們當時是否在場。我面前沒有它，但我們是在通話開始時。我仍然認為，艾倫，我認為，分享這一點，當然還有我們的董事會，我們仍然認為我們被嚴重低估了。因此，我們認為這是一個很好的理由。就在那張票據上回購股票，不僅僅是因為我們有錢。因此，我們這樣做的理由是，對於我們的股東來說，在 LP 積極回購股票仍然是一項很好的投資，然後我會向我們的股東保證，我們將對此持謹慎態度，並以合理的方式進行部署當時的經濟現實。

But then again, I'm very -- I feel I'm very bullish about the next 4 quarters for the housing, repair and remodel and LP. So we anticipate spending that money over the next -- I don't want to set a time frame, but we plan to begin using that authorization immediately, and we'll probably buy back shares from a dollar standpoint about on the pace that we've been doing it over the past year or so.

但話又說回來，我非常——我覺得我對未來 4 個季度的住房、維修和改造以及 LP 非常看好。所以我們預計接下來會花這筆錢——我不想設定一個時間框架，但我們計劃立即開始使用該授權，我們可能會從美元的角度按照我們的步伐回購股票在過去一年左右的時間裡一直在這樣做。

Got it. Very helpful. Good luck in the back half of the year, Brad.

知道了。很有幫助。祝你下半年好運，布拉德。

Thank you, Ketan.

謝謝你，科坦。

Your next question coming from the line of John Babcock with Bank of America.

你的下一個問題來自美國銀行的 John Babcock。

I guess just starting out, I was wondering if you might be able to just talk a little bit about -- I mean, obviously, like you've seen tremendous growth in SmartSide. And so on that point, if you could kind of talk about how that's maybe influencing the visibility of your brand and ability to kind of grow off of that. I mean, obviously, over time, you can get more scale as you grow and have more market share, but I want to get a sense for how this is ultimately helping to maybe compound growth to some extent, if that's [pertinent].

我想剛剛開始，我想知道你是否可以談談 - 我的意思是，很明顯，就像你已經看到 SmartSide 的巨大增長一樣。在這一點上，如果你能談談這可能如何影響你的品牌知名度以及從中成長的能力。我的意思是，很明顯，隨著時間的推移，隨著你的成長和擁有更多的市場份額，你可以獲得更大的規模，但我想了解這最終如何在某種程度上幫助實現複合增長，如果那是 [相關的話]。

John, it's funny. As you were asking the question, I wrote down as a note "compounding" and then you said the word before I did. But that is certainly brand equity and credibility of the brand comes with scale, and it comes with a -- maybe call it broad scale, which is penetration in several different kinds of markets. Our position in retail makes it a brand that the consumer, the DIYer sees. And that's -- we value that a lot. We value our position on the retail websites where a lot of business is moving for the big box retailers. Repair and remodel is -- for a reside project, is typically a project that's sold in the home. And so a consumer brand and a contractor can educate and convince a consumer kind of figuratively at their kitchen table about using SmartSide as a way to build brand credibility.

約翰，這很有趣。當你問這個問題時，我寫下了“複合”的註釋，然後你在我之前說了這個詞。但這肯定是品牌資產和品牌信譽伴隨著規模，它伴隨著 - 也許稱之為廣泛的規模，這是在幾種不同類型的市場中的滲透。我們在零售業的地位使其成為消費者和 DIYer 看到的品牌。那就是——我們非常重視這一點。我們重視我們在零售網站上的地位，那裡有很多業務正在為大型零售商轉移。維修和改造是——對於居住項目，通常是在家裡出售的項目。因此，消費者品牌和承包商可以在廚房餐桌上比喻地教育和說服消費者使用 SmartSide 作為建立品牌信譽的一種方式。

And then finally, as we expand with the builder, that really allows us to access a contractor base on the installing side. So -- and then we could go on with other examples, but the -- being a brand that has that kind of wide opportunity to be exposed and then taking advantage of that is, I believe -- does provide a compounding effect. And then on top of that, our launch of ExpertFinish and the ability to access the Prefinished side of that market, which is somewhat the same as when I was talking about repair and remodel, really also brings an aesthetic appeal to the brand that moves it beyond the contractor or consumer thinking of it as just a prime product. So this has been the fruit of past investments in marketing and sales that we've made and talked about on a lot of these calls. We continue to really focus on that and make sure that we support the brand in a way that ensures future growth.

最後，隨著我們與建築商一起擴展，這真的讓我們能夠在安裝方面訪問承包商基地。所以 - 然後我們可以繼續其他例子，但是 - 作為一個擁有這種廣泛曝光機會的品牌，然後利用它，我相信 - 確實提供了複合效應。然後最重要的是，我們推出了 ExpertFinish 並能夠進入該市場的 Prefinished 方面，這與我在談論維修和改造時有些相同，確實也為移動它的品牌帶來了審美吸引力超越承包商或消費者將其視為主要產品的範圍。因此，這是我們過去在許多此類電話中所做和討論的營銷和銷售投資的成果。我們繼續真正專注於此，並確保我們以確保未來增長的方式支持品牌。

And I'll just make one more point on that, is one of the things that we've learned through the COVID experience is you can effectively do that online. I think our contractors, contract customers have moved to getting educated about -- or got more comfortable being educated about brand and installation etcetera online. The consumer certainly has. And then once again, the big box retailer is really educating the public on how to source building products by starting online. And so we do have a strong focus there. And I'm really pleased with the progress we've made so far.

我還要再說一點，我們從 COVID 經驗中學到的一件事是你可以有效地在線完成。我認為我們的承包商、合同客戶已經開始接受有關品牌和安裝等方面的教育，或者更願意接受在線教育。消費者當然有。再一次，這家大型零售商真的在教育公眾如何從網上開始採購建築產品。因此，我們確實非常關注那裡。我對我們迄今為止取得的進展感到非常滿意。

Okay. And then I did notice that you had a pretty sizable increase in SmartSide pricing this quarter. Can you just remind us what the price increase was -- or price increases that have been announced for that product?

好的。然後我確實注意到本季度 SmartSide 定價有相當大的增長。您能否提醒我們提價是多少——或者該產品已宣布的提價？

Yes. We announced a 4% to 6% across the board in that with a variety of regions. It varies by region, it varies by SKU, but 4% to 6% overall. And we've been -- what we're realizing now is maybe 3% to 4% overall, and then the mix change has been very positive, added about another percent on that pricing. So I would say it's -- but we've probably gotten a little bit stronger price realization on the back end of the increase than we've gotten in prior years, but it's just the strength of the demand right now is available to hold on -- allowed us to hold on some of that list pricing that we increased at the beginning of the year.

是的。我們宣佈在多個地區全面提高 4% 至 6%。它因地區而異，因 SKU 而異，但總體而言為 4% 至 6%。而且我們一直 - 我們現在意識到的整體可能是 3% 到 4%，然後混合變化非常積極，在該定價上又增加了大約一個百分點。所以我會說它是 - 但我們可能在增加的後端獲得比前幾年更強的價格實現，但這只是目前可以保持的需求強度- 允許我們保留我們在年初增加的一些清單定價。

So I would -- from a modeling standpoint, I would say, if you carry over where we are right now and give us a little bit of leeway on mix, it would be a pretty good way of looking at the rest of the year as far as our price increase realization.

所以我會 - 從建模的角度來看，我會說，如果你繼續我們現在的位置並給我們一點混合的餘地，這將是一個很好的看待今年剩餘時間的方式就我們的價格上漲實現而言。

That's useful. And then as far as overall demand for both Siding and OSB, can you just remind me when that tends to peak seasonally? I think it's sometime during the summer, but what is kind of the typical seasonal pattern here?

這很有用。然後就壁板和 OSB 的總體需求而言，您能否提醒我什麼時候會出現季節性高峰？我想是在夏天的某個時候，但是這裡典型的季節性模式是怎樣的呢？

Yes, John, really for -- in my experience here, and most of my time, I was in Siding and a little bit in OSB, really, September, October, historically in Siding has been really good. I think that's also true for OSB as people move into the winter and try to button up some jobs and get the houses siding or sheathed. So we've typically seen really good seasonal demand now, had that demand plateau in the summer as it kind of hit a constant rate of construction. And then we would generally see a little surge in demand September, October as people were trying, as I was mentioning, trying to -- what I think was people trying to complete some jobs before the winter weather hit. So we're certainly in a -- historically in a really good time and season right now, and we're expecting to see continued very strong order files at least until October.

是的，約翰，真的——根據我在這裡的經驗，以及我的大部分時間，我在 Siding 和 OSB 有一點，真的，九月，十月，歷史上在 Siding 一直非常好。我認為對於 OSB 來說也是如此，因為人們進入冬天並試圖完成一些工作並讓房屋壁板或護套。因此，我們現在通常會看到非常好的季節性需求，夏季需求穩定，因為它達到了一個恆定的建設速度。然後我們通常會看到 9 月和 10 月的需求激增，因為人們正在嘗試，正如我提到的那樣，我認為人們試圖在冬季天氣來襲之前完成一些工作。因此，我們肯定處於 - 從歷史上看，現在處於一個非常好的時間和季節，我們預計至少在 10 月之前會看到持續非常強勁的訂單文件。

But given the lack of inventory in the channel right now for both OSB, Siding and throw EWP in there as well, I anticipate that even in the winter, we'll see pretty good order files as distributors and dealers take that opportunity to rebuild some inventory, they're looking into what we expect to be a strong building season next year as well.

但鑑於目前渠道中 OSB、Siding 和 throw EWP 的庫存不足，我預計即使在冬天，我們也會看到相當不錯的訂單文件，因為分銷商和經銷商會藉此機會重建一些庫存，他們正在研究我們預計明年也是一個強勁的建築季節。

That's very helpful. And then just last question before I turn it over. The South America results were clearly quite strong. And I was wondering on that point if you might be able to talk about the sustainability of this level of EBITDA.

這很有幫助。然後是最後一個問題，然後我把它翻過來。南美的結果顯然非常強勁。我想知道你是否可以談談這種 EBITDA 水平的可持續性。

Yes. From a volume standpoint, I feel really good about the sustainability. And we're doing some -- in the scale of things, it's not big dollars, but we're doing some major mill improvements down there just from the little extra capital spend that we've allocated down there for the next couple of years. So I see the capacity of South America growing significantly over the next 18 months or so. And we're seeing really good market growth -- market size growth down there. And some of that is attributed to good economies, especially in Chile, but also our expansion into Argentina, Peru and Colombia has really helped as well. So diversified the markets a little bit.

是的。從數量的角度來看，我對可持續性感到非常滿意。我們正在做一些事情——在規模上，這不是大筆資金，但我們正在那裡進行一些重大的工廠改進，只是我們在未來幾年在那里分配的少量額外資本支出.因此，我認為在未來 18 個月左右的時間裡，南美洲的產能將顯著增長。我們看到了非常好的市場增長——那裡的市場規模增長。其中一些要歸功於良好的經濟，尤其是在智利，而且我們向阿根廷、秘魯和哥倫比亞的擴張也確實起到了幫助作用。因此，市場多樣化了一點。

Look, there is a pricing component of that as well. I mean, it is in no way directly tied to North America. But when things were as tight as they are right now in North America, the pressure from imports in South America diminishes and gives us a little more pricing strength in that kind of environment. And so that -- we have seen price improvement down there as well. Historically, we've been able to retain that. But it's hard for me to predict that, that will be true in the future. But we've seen good price appreciation and really good volumes down there.

看，這也有一個定價部分。我的意思是，它與北美沒有直接關係。但是，當北美的情況像現在這樣緊張時，來自南美的進口壓力就會減弱，並在這種環境下給我們帶來更多的定價優勢。因此——我們也看到那裡的價格有所改善。從歷史上看，我們一直能夠保留這一點。但我很難預測，未來會是這樣。但我們已經看到了良好的價格上漲和非常好的交易量。

And our next question coming from the line of Sean Steuart with TD Securities.

我們的下一個問題來自道明證券的 Sean Steuart。

A couple of questions. Alan, wondering if you can speak to SG&A. It was kept in check to a surprising extent, relative to our expectation, given the top line strength. Can you give context on SG&A trend this quarter and sustainability of these levels going forward?

幾個問題。艾倫，想知道你是否可以和 SG&A 談談。考慮到頂線實力，相對於我們的預期，它被控製到令人驚訝的程度。您能否介紹本季度 SG&A 趨勢以及這些級別未來的可持續性？

Yes, sure. One thing to bear in mind is that this time last year, we significantly cut SG&A as we entered the COVID environment. And that had the benefit, if you like, of giving us a new muscle. So as -- certainly, as we sort of step back up unnecessary spending on things like selling and marketing, we don't necessarily replicate the cost in exactly the same manner. So we've got some what you might call, unexpected and implicit efficiencies.

是的，當然。要記住的一件事是，去年這個時候，我們在進入 COVID 環境時大幅削減了 SG&A。如果你願意的話，這樣做的好處是給了我們新的肌肉。因此——當然，當我們減少在銷售和營銷等方面的不必要支出時，我們不一定會以完全相同的方式複製成本。所以我們有一些你可能稱之為意想不到的隱性效率。

We are looking to increase our selling and marketing expenditure with -- particularly within -- for Siding as we go forward through the remainder of the year. And -- but to put it in context, that's already sort of baked into the Q2 guidance that we gave you. So there will be an increase in SG&A as we continue to invest in the future of the Siding business. But that's really the only fundamental change that you'll see. So...

我們希望在今年剩餘時間裡增加我們的銷售和營銷支出，特別是在 Siding 內部。而且——但是為了把它放在上下文中，這已經融入了我們給你的第二季度指南中。因此，隨著我們繼續投資於 Siding 業務的未來，SG&A 將會增加。但這確實是您將看到的唯一根本性變化。所以...

Okay. Understood. On EWP, you had indicated last quarter that you were undertaking a strategic review for the business. Can you give us any update on how that process has evolved, if at all, over the last quarter?

好的。明白了。在 EWP 上，您在上個季度表示您正在對業務進行戰略審查。您能否向我們介紹該流程在上個季度的進展情況（如果有的話）？

It has evolved, I'm pleased with the progress and the response. We've had quite a bit of interest in the business. There's nothing to share today. We're just in some discovery phase and as far as the process that we're -- that we've launched and having some very interesting discussions about the future of that business. We are focused on continuity of the business because typically, what we think is going to happen is the acquirer will inherit our distribution base. It is also our distribution base for Siding and to a large extent, Structural Solutions. So continuity is important to us. It's part -- one of the components for getting out of that business, and that's certainly a factor that we're talking to the interested parties about.

它已經發展，我對進展和響應感到滿意。我們對這項業務很感興趣。今天沒有什麼可分享的。我們只是處於一些發現階段，就我們所啟動的流程而言，我們已經啟動了該流程，並且就該業務的未來進行了一些非常有趣的討論。我們專注於業務的連續性，因為通常情況下，我們認為會發生的是收購方將繼承我們的分銷基礎。它也是我們的 Siding 分銷基地，在很大程度上是 Structural Solutions 的分銷基地。因此，連續性對我們很重要。它是一部分 - 退出該業務的組成部分之一，這當然是我們正在與感興趣的各方討論的一個因素。

But good progress within the quarter, and we'll continue to report out when we can.

但本季度進展良好，我們會在可能的時候繼續報告。

The rest of my questions have been answered.

我的其餘問題已得到解答。

And our next question coming from the line of Kurt Yinger with D.A. Davidson.

我們的下一個問題來自 Kurt Yinger 和 D.A.戴維森。

I just wanted to start off on the competitive dynamics in Siding. I mean what would you kind of consider the one or two things that have been most impactful in terms of your ability to gain share here in the last year? And as we look ahead to the next couple of years, I mean, are those factors any different? Or what do you think is kind of highest on the priority list there?

我只想從 Siding 的競爭動態開始。我的意思是，您認為在過去一年中對您在這裡獲得份額的能力影響最大的一兩件事是什麼？當我們展望未來幾年時，我的意思是，這些因素有什麼不同嗎？或者您認為那裡的優先級列表中最高的是什麼？

Okay. So looking back the last 12 months or so with the good market share gains, as we've mentioned before, our position at retail has been very beneficial to us. We've seen incredible growth there along with the Depot lows and Menards -- well, Menards doesn't report but lows in Depot's growth that they have seen. So our position there was really good. Also, the rebound in the Shed business, which is another big panel consumer for us, has been extremely strong. And then, I would say, overall, just the strength in housing has also been very positive for us, and I believe we've picked up some market share gain there as well. But the bigger market share gains have come through our position in retail and in shed.

好的。因此，回顧過去 12 個月左右的市場份額增長，正如我們之前提到的，我們在零售業的地位對我們非常有利。我們在那裡看到了令人難以置信的增長以及 Depot 的低點和 Menards——好吧，Menards 沒有報告，但他們看到了 Depot 增長的低點。所以我們在那裡的位置真的很好。此外，我們的另一個大型面板消費者 Shed 業務的反彈非常強勁。然後，我想說，總的來說，住房市場的強勢對我們也非常有利，我相信我們也在那裡獲得了一些市場份額。但更大的市場份額收益來自我們在零售和棚屋中的地位。

Looking forward, however, our launch is smooth and prefinish is certainly focused on a market share gain in repair and remodel. And while there is -- we do have geographic strength there, we do not have broad national strength in repair and remodel. So there's a lot of opportunity in front of us to grow in the repair and remodel segment, which is the reason behind the innovation.

然而，展望未來，我們的發布是順利的，並且 prefinish 肯定側重於在維修和改造中獲得市場份額。雖然我們在那裡確實有地理優勢，但我們在維修和改造方面沒有廣泛的國家實力。所以我們面前有很多機會在維修和改造領域發展，這就是創新背後的原因。

And then our other focus area for us for where we believe we're currently underpenetrated is with a large national builder, and we've got a product that we're launching this year to help us address that along with other sales and marketing strategies associated with that.

然後我們認為我們目前尚未滲透的另一個重點領域是與一家大型國家建築商合作，我們今年推出了一款產品，以幫助我們解決這個問題以及其他銷售和營銷策略與之相關。

So I think -- and let me just back up from that specific answer. And just to say, I think one of the strengths of our Siding business is the diversity of channels that we sell into and the strength and diversity of our product portfolio. We're just -- we're not solely dependent on growing lap siding because of our position in panel. We're not solely depending on an panel because our position in trim. And then as we add products like Prefinished and Shakes, it expands and diversifies that product portfolio where we can take advantage of opportunities when they arise in these different segments. And that really has been historic -- long-term historic strength of the portfolio, and I think it's going to serve us well as we expand it and look at further market penetration in this good market environment.

所以我認為 - 讓我從那個具體的答案中退出。只是說，我認為我們 Siding 業務的優勢之一是我們銷售渠道的多樣性以及我們產品組合的實力和多樣性。我們只是 - 由於我們在面板中的位置，我們不僅僅依賴於增加搭接壁板。我們不僅僅依賴面板，因為我們的位置在調整中。然後，當我們添加 Prefinished 和 Shakes 等產品時，它擴展了產品組合併使其多樣化，我們可以在這些不同的細分市場出現機會時利用這些機會。這確實具有歷史意義——投資組合的長期歷史實力，我認為隨著我們擴大它並在這個良好的市場環境中進一步滲透市場，它會很好地為我們服務。

Got it. That's very helpful color. And then I guess, my second one, when you talk about perhaps accelerating the Sagola conversion, if we were to see OSB markets remain strong, not necessarily where things stand today, but if they remain strong, how would you think about potentially backfilling what type of OSB capacity you'd lose with Sagola?

知道了。這是非常有用的顏色。然後我想，我的第二個，當你談到可能加速 Sagola 轉換時，如果我們看到 OSB 市場保持強勁，不一定是今天的情況，但如果它們保持強勁，你會如何考慮可能回填什麼Sagola 會損失多少類型的 OSB 產能？

Well, just to remind you, Kurt, that was our thinking around part of the justification for restarting Peace Valley was the integrated way we looked at capacity expansion across the 2 businesses. And so we feel like we're addressing, especially the customers in that midwest part of the country that we can access from Peace Valley, so with Peace Valley start-up plan for later this year or second half of this year, we want to have that facility up and running fully by the time we start bringing Sagola down. So that was really how we are addressing it is through Peace Valley start-up and then continued OEE improvement across our entire OSB network. But we're really focused on growth in Siding. And Sagola is the next great idea in front of us as far as doing that. So we're pretty single-minded in getting that mill up and running as quickly as possible and our expectation is that our OSB market share, though, will be protected by the start-up of Peace Valley.

好吧，只是提醒你，庫爾特，我們圍繞重新啟動和平谷的部分理由的思考是我們看待這兩個業務的產能擴張的綜合方式。因此，我們覺得我們正在解決問題，尤其是我們可以從 Peace Valley 訪問的美國中西部地區的客戶，因此根據今年晚些時候或今年下半年的 Peace Valley 啟動計劃，我們希望在我們開始將 Sagola 關閉時，該設施已啟動並全面運行。因此，我們真正解決這個問題的方式是通過 Peace Valley 啟動，然後在我們整個 OSB 網絡中持續改進 OEE。但我們真正專注於 Siding 的增長。就此而言，Sagola 是擺在我們面前的下一個好主意。因此，我們非常一心一意地讓該工廠盡快啟動和運行，我們的期望是我們的 OSB 市場份額將受到 Peace Valley 的啟動保護。

Got it. Okay. Makes sense. Well, good luck here in Q2.

知道了。好的。說得通。好吧，祝你在第二季度好運。

Thank you.

謝謝。

And our next question coming from the line of Mark Connelly with Stephens Inc.

我們的下一個問題來自 Stephens Inc. 的 Mark Connelly。

This is John Rider on for Mark. So first question, when you look at this period of tight supply in OSB, has it changed your thinking on how OSB inventory should be managed whether on your side or between you and distributors? And has working capital gotten too lean here?

這是 John Rider 替 Mark 做的。那麼第一個問題，當您看到這段 OSB 供應緊張的時期時，是否改變了您對應該如何管理 OSB 庫存的想法，無論是在您這邊還是在您與分銷商之間？這裡的營運資金是不是太少了？

There's no question that working capital has gotten very lean, and one could argue too lean. If we -- if we, being us and our channel partners, had been able to foresee the rebound in product demand in May and June, July of last year, obviously, we would not have taken the mill downtime that we've taken. And I would assume our distributor partners would not have brought their inventories down as well. So I don't know if this will change the way the industry looks at inventory management because I think that we're all trying to rebuild inventories back to some kind of normal level. But it is evidenced that the caution that went into the cash generation mindset that we all had in late spring of last year -- or early spring of last year has really put us in a position to struggle to keep up with demand. So I think it's more of an anomaly than a long-term change and philosophy around working capital.

毫無疑問，營運資金已經變得非常精簡，而且可以說過於精簡了。如果我們——如果我們，作為我們和我們的渠道合作夥伴，能夠預見到去年 5 月和 6 月、7 月產品需求的反彈，顯然，我們就不會採取我們已經採取的工廠停機時間。而且我認為我們的分銷商合作夥伴也不會降低他們的庫存。所以我不知道這是否會改變行業看待庫存管理的方式，因為我認為我們都在努力將庫存恢復到某種正常水平。但有證據表明，我們在去年春末或去年春初對現金產生心態的謹慎態度確實讓我們難以跟上需求。所以我認為這更像是一種反常現象，而不是圍繞營運資金的長期變化和理念。

Okay, okay. That's really helpful. And then we were hoping you could talk a bit more about your ESG programs. We're seeing rising scrutiny of environmental claims, particularly in Europe right now, and do you clearly have a good sustainability story? We're curious what sort of ESG targets you have set for OSB and Siding? And how you think you stack up in the building materials space?

好吧好吧。這真的很有幫助。然後我們希望您能多談談您的 ESG 計劃。我們看到對環境聲明的審查越來越嚴格，尤其是目前在歐洲，您顯然有一個好的可持續發展故事嗎？我們很好奇您為 OSB 和 Siding 設定了什麼樣的 ESG 目標？你認為你在建築材料領域的地位如何？

Well, let me start by saying, I think we stack up very well, given our footprint, the sustainability of our wood procurement mindset or strategy. And we are working on right now, setting some other type of ESG, environmental targets. And we're in the data collection mode right now because obviously, this will be a data-driven exercise for us. We are focused on it. We have reconfigured a board committee to provide board oversight to this and are seeing and participating and then setting high expectations for advancement there. And so we'll be coming back later in the year to set out specific targets around other ESG parameters other than just wood procurement sustainability.

好吧，讓我首先說，考慮到我們的足跡、木材採購思維或戰略的可持續性，我認為我們的表現非常好。我們現在正在努力，設定一些其他類型的 ESG，環境目標。我們現在處於數據收集模式，因為顯然，這對我們來說將是一個數據驅動的練習。我們專注於此。我們已經重新配置了一個董事會委員會來對此提供董事會監督，並且正在觀察和參與，然後對那裡的進步設定很高的期望。因此，我們將在今年晚些時候回來圍繞其他 ESG 參數設定具體目標，而不僅僅是木材採購的可持續性。

I will mention just as from a concept standpoint, I feel like we have a really good story. When you're nailing siding on the side of a house for the 50-year warranty or you are sheathing a house, you're nailing a sheet of carbon to the house. So we're -- I believe we're going to have a really good story, and -- but we want to make sure that the data that we report is accurate and that the goals we set are reasonable and something that we can do and deliver on but that work is underway. And if you'll give us another quarter or 2, we'll be back with a robust discussion on that before the end of the year.

我會從概念的角度提到，我覺得我們有一個非常好的故事。當您為 50 年保修期在房屋的一側釘壁板或為房屋加蓋時，您就是在將一塊碳板釘在房屋上。所以我們——我相信我們會有一個非常好的故事，而且——但我們要確保我們報告的數據是準確的，我們設定的目標是合理的，並且是我們可以做的並繼續，但這項工作正在進行中。如果你再給我們一個或兩個季度，我們將在年底前對此進行強有力的討論。

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

我們的下一個問題來自 RBC Capital Markets 的 Paul Quinn。

Just wow, what a quarter, but looks even more robust in Q2. Just maybe start on the SmartSide business. Just wondering what your -- that order file, is it that strong that you would have a potential for a second price increase in '21? Or is that something you don't want to do and you really want to gain market share?

哇，多麼棒的一個季度，但在第二季度看起來更加強勁。也許只是開始 SmartSide 業務。只是想知道你的 - 那個訂單文件，你有可能在 21 年第二次提價嗎？還是您不想做而您真的想獲得市場份額？

Well, there's pricing strength in the product offering right now. And so I mean, the price increase is something that's always on our mind. We'll be clear about that. There's various ways of getting that, and one of them was kind of hinted to earlier on the question about the price realization is working on the back end rebate part of it. And so we're -- I'm going to say we're taking advantage of the strength -- the demand strength right now to manage prices, I think, appropriately. But we have to be competitive. And while there can be short-term opportunities for pricing at the end of the day, in most all cases, we're eventually going to get bid against a competitive substrate. And so we're maintaining a competitive position, even in the time of tight demand is something that we're mindful of, especially with the builder, these agreements are at least multiquarter, if not multiyear. And so we are focused on maintaining a competitive price situation because we are focused on gaining market share.

好吧，現在產品的價格優勢。所以我的意思是，價格上漲是我們一直在考慮的事情。我們會清楚這一點。有多種方法可以做到這一點，其中一種方法早些時候曾暗示過有關價格實現的問題正在處理它的後端回扣部分。所以我們 - 我要說我們正在利用實力 - 我認為現在的需求實力來適當地管理價格。但我們必須要有競爭力。雖然在一天結束時可能會有短期的定價機會，但在大多數情況下，我們最終會針對有競爭力的基板進行投標。因此，我們保持競爭地位，即使在需求緊張的時候，我們也注意到這一點，尤其是與建築商，這些協議即使不是多年，也至少是多季度的。因此，我們專注於保持有競爭力的價格狀況，因為我們專注於獲得市場份額。

I know I'm being a little bit two-faced on that answer because we also take advantage of whenever we can get price, we can get it, but we don't do that foolishly, and we want to make sure that we maintain a competitive position and that our distributors and dealer partners could be competitive as well. So it's a balancing act, I guess, is the right way to answer it, and it's something that we're really managing daily.

我知道我在回答這個問題時有點兩面性，因為我們也會利用任何可以得到價格的機會，我們可以得到它，但我們不會愚蠢地這樣做，我們想確保我們保持競爭地位，我們的分銷商和經銷商合作夥伴也可以具有競爭力。所以我想這是一種平衡的行為，是回答它的正確方法，這是我們每天都在真正管理的事情。

Okay. That's fair. And then just on the margin uplift in SmartSide was pretty impressive. Is that solely to do with a higher percentage of Prefinish? Or is that cost reductions in the segment as well?

好的。這還算公平。然後就在 SmartSide 的利潤率提升方面，令人印象深刻。這僅僅與更高百分比的 Prefinish 有關嗎？還是該部門的成本也有所降低？

Yes. It's both. We've had a -- we run the facilities full out now, and the operating leverage for the -- from OSB and Siding both is very strong. So Paul, on the margin, last 1 million feet of product, the production that we sell out of Siding is at a very high margin. So it is really amazing what the mill profitability can be when you're sold out and running at full production. And so it's -- the price increase certainly helped, but that overall operating efficiency is a key to that.

是的。兩者都是。我們已經 - 我們現在已經全面運行設施，並且 - 來自 OSB 和 Siding 的運營槓桿都非常強大。所以保羅，在利潤率上，最後 100 萬英尺的產品，我們從 Siding 出售的產品的利潤率非常高。因此，當您售罄並滿負荷生產時，工廠的盈利能力真的令人驚訝。所以它 - 價格上漲肯定有所幫助，但整體運營效率是關鍵。

And then just over on OSB, you've got Peace Valley starting up in the second half of the year. Maybe you could give us an idea of what kind of volume you expect to be able to ship to the market in '21? Is that going to be a slow start or a faster start?

然後就在 OSB 上，Peace Valley 在今年下半年啟動。也許您可以告訴我們您希望在 21 年能夠向市場投放多少數量的產品？這將是一個緩慢的開始還是更快的開始？

And then lastly, if you could give us an update on Entekra.

最後，如果你能給我們介紹一下 Entekra 的最新情況。

Yes. So we're looking at about 150 million feet in Q3 -- oh, I'm sorry, for -- in all of '21 out of Peace Valley. So for the second half of the year, 150 million feet. And then Entekra, we continue to be very pleased with the order file at Entekra. We are in the process of validating the model as far as getting that ever-increasing order file through the facility. I see a challenge for us there. I will say that's been the one part of our business where labor availability as we start-up that facility has been a little bit more -- a lot more of a challenge than our more mature facilities, maintaining the workforce is what I mean. And then from a profit standpoint, that business has been challenged by the rising lumber prices. The agreements with the builders have a lag on lumber pricing pass-through, and that's been -- that's obviously hurt us.

是的。所以我們在第三季度看到了大約 1.5 億英尺——哦，對不起，因為——在和平谷的整個 21 年。所以今年下半年，1.5 億英尺。然後是 Entekra，我們仍然對 Entekra 的訂單文件感到非常滿意。我們正在驗證模型，直到通過該設施獲得不斷增加的訂單文件。我在那裡看到了我們的挑戰。我要說的是，這是我們業務的一部分，在我們啟動該設施時，勞動力可用性有點多——比我們更成熟的設施更具挑戰性，維持勞動力就是我的意思。然後從利潤的角度來看，該業務受到木材價格上漲的挑戰。與建築商的協議在木材定價傳遞方面存在滯後，這顯然傷害了我們。

But market validation, Paul, is very solid for Entekra. We're still figuring out how to meet the order file as it continues to rise, the way it has so aggressively, and then we're also trying to figure out how to properly priced the product on these kind of highly volatile times as far as lumber pricing. But I'm encouraged by what we're doing strategically there. But we're still -- it's still a start-up business. That's for sure.

但保羅，市場驗證對 Entekra 來說非常可靠。我們仍在弄清楚如何滿足訂單文件的需求，因為它繼續上漲，如此激進，然後我們還在努力弄清楚如何在目前這種高度波動的時期正確定價產品作為木材定價。但我對我們在那裡的戰略性行動感到鼓舞。但我們仍然 - 它仍然是一家初創企業。這是肯定的。

And no more immediate capital requirement?

沒有更直接的資本要求？

No. We do some minor working capital provisions for them, but yes, no immediate capital that's in any way meaningful.

不。我們為他們做了一些小的營運資金準備金，但是，是的，沒有任何有意義的直接資金。

And our next question coming from the line of Mark Wilde with Bank of Montreal.

我們的下一個問題來自蒙特利爾銀行的 Mark Wilde。

Brad, I'm just curious, if you just think about the OSB market overall right now, if we were to see housing starts continue to move up, and let's say, we moved up to 2 million starts. Is it the capacity then there to serve 2 million starts?

布拉德，我很好奇，如果你現在只考慮整個 OSB 市場，如果我們看到房屋開工繼續上升，比方說，我們上升到 200 萬套。是否有能力為 200 萬次啟動提供服務？

No. The capacity after the start-up of Peace and Chambord be 1.6 million, 1.7 million, probably. So we're looking at the -- so yes. Well, you think about it this way, Mark, in 2007, 2006, the industry was serving the 2 million start housing market. And we shut down and didn't start back up 2 or 3 facilities to -- and converted 3 or so to Siding. And then if you look at all the permanently shuttered plants since then, there hasn't been an offset in greenfields to get us back to that level. So the industry is more of a 1.5 million, 1.6 million, 1.7 million, with creep taking advantage, creep in there. So it could be tight for a while.

不。Peace和Chambord開工後的產能是160萬，大概是170萬。所以我們正在研究 - 所以是的。嗯，你這樣想，馬克，在 2007 年、2006 年，該行業服務於 200 萬起步的住房市場。我們關閉了 2 或 3 個設施，並沒有啟動備份到 - 並將 3 個左右轉換為 Siding。然後，如果你看看從那時起所有永久關閉的工廠，就會發現綠地並沒有抵消讓我們回到那個水平。因此，該行業更多的是 150 萬、160 萬、170 萬，其中有 creep 趁機潛入其中。所以它可能會緊張一段時間。

Okay. And just remind me, like 100,000 starts is what, like 1.5 billion square feet?

好的。提醒我，100,000 個啟動是什麼，比如 15 億平方英尺？

Yes, Mark, this is Aaron Howald. The 2 rules of thumb to keep in mind are about 100,000 starts consumes about 1 billion feet of OSB. And you have to adjust that for the single-family mix. So a single-family start consumes about 3x as much OSB and Siding as a multifamily start. So the market we're in right now is single-family mix north of 70%. You want to adjust that 1 billion feet per 100,000 starts upwards a little bit to account for that.

是的，馬克，這是亞倫霍華德。要記住的 2 個經驗法則是大約 100,000 次啟動消耗大約 10 億英尺的 OSB。而且您必須針對單戶組合進行調整。因此，單戶住宅消耗的 OSB 和壁板是多戶住宅的 3 倍。所以我們現在所處的市場是超過 70% 的單戶組合。你想稍微向上調整每 100,000 英尺 10 億英尺以解決這個問題。

Okay. And then, Brad, I'm just curious, I mean, we're so far beyond anything that we have ever seen in terms of both lumber and OSB pricing. Are you guys sensing any areas in the market where you think there's some demand destruction taking place or demand deferral taking place right now?

好的。然後，布拉德，我只是好奇，我的意思是，我們在木材和 OSB 定價方面遠遠超出了我們所見過的任何東西。你們是否感覺到市場上的任何領域，您認為現在正在發生一些需求破壞或需求延期？

Well, yes, demand deferral, yes, I think there's -- I mean I know a guy who wants to build a deck. He's not going to build a deck until lumber prices come down. So again, there's 1 person who's delaying a job that I specifically know. But I do think that there is an issue around that from an affordability standpoint, of our projects for and maybe even some housing starts, and I think there could be some housing starts deferred just from an availability standpoint. I don't currently believe there's demand destruction going on, yet. You know that export, panel exports, there's a little bit more coming in than in the past. But most other local markets are pretty strong. We're certainly seeing that in South America, I believe it's similar in Europe. And so I don't -- what we haven't hit yet is any kind of substitution threat. But I think we have to be realistic and think there probably is some deferral happening either due to affordability or lack of availability of immediate supply.

好吧，是的，要求延期，是的，我認為有——我的意思是我認識一個想要建造甲板的人。在木材價格下降之前，他不會建造甲板。再一次，有一個人在拖延我特別了解的工作。但我確實認為，從負擔能力的角度來看，我們的項目甚至可能是一些房屋開工存在一個問題，而且我認為僅從可用性的角度來看，可能會有一些房屋開工被推遲。我目前不認為需求破壞正在發生。你知道出口，面板出口，比過去多了一點。但大多數其他本地市場都相當強勁。我們肯定會在南美看到這種情況，我相信在歐洲也是如此。所以我沒有——我們還沒有遇到任何形式的替代威脅。但我認為我們必須現實一點，並且認為由於負擔能力或缺乏即時供應，可能會出現一些延期。

Okay. All right. And the last one for me. I just -- I think a quarter or 2 ago, you mentioned that you were trying to do some of the downstream products, like I think Siding products down in the Latin American business. Just any update on the uptake of those kinds of products in the Latin American market. I know kind of changing building preferences, changing building codes is not an easy thing to do.

好的。好的。最後一個給我。我只是 - 我想一兩個季度前，你提到你正在嘗試做一些下游產品，就像我認為拉美業務中的 Siding 產品一樣。只是關於拉丁美洲市場對這些產品的吸收情況的任何更新。我知道改變建築偏好、改變建築規範並不是一件容易的事。

Yes. So let me -- we are actively working that in Brazil, where it is harder, and Chile's building codes have adapted. So we're -- that's not a constraint in Chile and not in Argentina either. But in Brazil, it certainly is. Just quickly to explain it is highly local in Brazil. So you can't like do a macro change in building. It's harder to do a macro change. So you end up having to kind of almost project-by-project basis. What we would consider changing code is what's required down there. So we've got a team working on that, and it's successful, but it's slow.

是的。所以讓我 - 我們正在巴西積極開展工作，那裡更難，智利的建築規範已經適應。所以我們 - 這不是智利的限制，也不是阿根廷的限制。但在巴西，它肯定是。很快就可以解釋它在巴西是高度本地化的。所以你不能喜歡在建築中做一個宏觀的改變。做宏觀改變更難。所以你最終不得不以幾乎逐個項目為基礎。我們考慮更改代碼的是那裡所需要的。所以我們有一個團隊致力於此，它很成功，但速度很慢。

In Chile, building codes are not an issue as far as that conversion. So -- but our focus down there is really growing our SmartSide business. Because of the fact that we've been capacity constrained in the past and the margins for OSB have been really good down there historically, we really haven't had EBITDA incentive to grow Siding but as we've increased press capacity down there, it's opened up some opportunities for us to look at expanding the portfolio. And while we we've always -- we've sold siding down there since the start-up of the Panguipulli, 20 years ago. It really hasn't been as much of a focus area as it's going to be in the future because as we've grown our market share for sheathing, we are pushing up against some constraints there. And we see a Siding as the next really good growth platform for us down in South America where perhaps sheathing will be more of a growth with the market versus growth in market share.

在智利，就轉換而言，建築規範不是問題。所以——但我們在那裡的重點是真正發展我們的 SmartSide 業務。由於過去我們的產能受到限制，而且 OSB 的利潤率在歷史上一直非常好，我們確實沒有 EBITDA 的動力來增長 Siding，但隨著我們在那裡增加壓機產能，它是為我們擴大投資組合提供了一些機會。雖然我們一直 - 自 20 年前 Panguipulli 成立以來，我們一直在那裡銷售側板。它實際上並沒有像未來那樣成為重點領域，因為隨著我們在護套市場份額的增長，我們正在克服那裡的一些限制。我們認為 Siding 是我們在南美的下一個非常好的增長平台，在那裡，與市場份額的增長相比，護套可能更多地是隨著市場的增長而增長。

Yes. I'm encouraged by our opportunity there, especially the other -- just kind of put a period on that, and we're very underpenetrated in Argentina, Peru and Colombia, which are -- which do have -- do use wood construction. So there also is a geographic growth element to our strategy down there.

是的。我對我們在那裡的機會感到鼓舞，尤其是另一個 - 只是有點時間，我們在阿根廷，秘魯和哥倫比亞的滲透率非常低，這些 - 確實有 - 確實使用木結構。因此，我們在那裡的戰略也有地理增長因素。

And our next question coming from the line of Mark Weintraub with Seaport Global.

我們的下一個問題來自 Seaport Global 的 Mark Weintraub。

One just quick follow-up. We've got a pretty incredible variation geographically in OSB pricing right now with the Random Lengths, at least Western Canada at $1,600, a couple of regions more in the $1,200, some regions in the $1,000-type area. Any thoughts on why there's these enormous spreads and any implications?

一個只是快速跟進。我們現在的 OSB 定價在地理上有一個非常令人難以置信的變化，隨機長度，至少加拿大西部為 1,600 美元，幾個地區在 1,200 美元以上，一些地區在 1,000 美元類型的地區。關於為什麼會有這些巨大的價差和任何影響，有什麼想法嗎？

Yes. Mark, this is Aaron. As you know in more typical times, when you see regional spreads start to open up, OSB gets shipped around the continent to address those arbitrage opportunities and that happens when there's available wood. The demand is so strong in just about every market that's consuming OSB now that there really isn't as much -- there isn't enough available wood to address that. And so in more normal times, if we saw prices, it's different region-to-region, you'd see a wave of OSB heading West to satisfy those markets. The only way that's possible now is by starving building in the Southeast. And so it's just -- it's less possible now.

是的。馬克，這是亞倫。正如您所知，在更典型的時期，當您看到區域價差開始擴大時，OSB 會被運往整個大陸以應對這些套利機會，而這種情況會在有可用木材時發生。幾乎每個消費 OSB 的市場的需求都如此強勁，現在實際上並沒有那麼多——沒有足夠的可用木材來解決這個問題。因此，在更正常的時期，如果我們看到價格，它在不同地區之間是不同的，你會看到一波 OSB 前往西方以滿足這些市場。現在唯一可能的方法是在東南部建設飢餓建築。所以它只是 - 現在不太可能了。

So why -- and so why wouldn't prices in Southeast, et cetera, why wouldn't they just quickly go towards that $1,600 price in Western Canada?

那麼為什麼 - 那麼為什麼東南部的價格不會，等等，為什麼他們不會很快在加拿大西部達到 1,600 美元的價格？

Well, they typically would in an environment where wood was leaving the southeast to satisfy the western -- West Coast demand, that would create scarcity in the Southeast, and those prices would tend towards equilibrium. But that phenomenon is less likely to happen in an environment where there is so little available product that there isn't extra to ship.

好吧，他們通常會在木材離開東南部以滿足西部 - 西海岸需求的環境中，這會在東南部造成稀缺，並且這些價格會趨於平衡。但這種現像不太可能發生在可用產品太少以至於沒有多餘的產品可以運送的環境中。

That is all contracted out.

那都是外包的。

Exactly.

確切地。

Dead on.

死了。

Now part of the other issue, Mark, is that the -- there's -- the product is so scarce that they -- that the open market transactions themselves are less common, which means that there's less data to be reported, which means that -- which further reduces the opportunity for that arbitrage to be recognized and reflected in price.

馬克，現在另一個問題的一部分是 - 有 - 產品非常稀缺，以至於他們 - 公開市場交易本身不太常見，這意味著要報告的數據較少，這意味著 - - 這進一步減少了套利被認可並反映在價格中的機會。

Well, with no further questions, that will end our conference. Yes. With no further questions, we'll end there. Thank you for joining us to discuss our results for the first quarter of 2021. We'll look forward to talking to you soon. Have a great day, and a stay safe, everyone.

好了，沒有其他問題了，我們的會議到此結束。是的。沒有進一步的問題，我們將在那裡結束。感謝您加入我們討論我們 2021 年第一季度的業績。我們期待盡快與您交談。祝大家度過美好的一天，並保持安全。

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

女士們，先生們，我們今天的會議到此結束。感謝您的參與。您現在可以斷開連接。