Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Boise Cascade Company Reports First Quarter 2024 Results By: Boise Cascade Company via Business Wire May 06, 2024 at 16:10 PM EDT Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $104.1 million, or $2.61 per share, on sales of $1.6 billion for the first quarter ended March 31, 2024, compared with net income of $96.7 million, or $2.43 per share, on sales of $1.5 billion for the first quarter ended March 31, 2023. "I am pleased with the strong financial results that our team delivered during the first quarter. As expected, it was a period influenced by seasonal factors and the relative strength of new single-family starts," stated Nate Jorgensen, CEO. "As we enter the second quarter, economic and geopolitical uncertainties are prevalent, and the extent of the potential impact on the broader economy and residential construction activity is unknown. Despite the near-term environment, an undersupply of single-family homes remains, and I have great confidence in our team as we stay focused on the effective deployment of our outstanding balance sheet in support of our stakeholders." First Quarter 2024 Highlights 1Q 2024 1Q 2023 % change (in thousands, except per-share data and percentages) Consolidated Results Sales $ 1,645,420 $ 1,544,329 7 % Net income 104,124 96,733 8 % Net income per common share - diluted 2.61 2.43 7 % Adjusted EBITDA 1 168,496 158,674 6 % Segment Results Wood Products sales $ 468,928 $ 437,428 7 % Wood Products income 71,238 69,395 3 % Wood Products EBITDA 1 95,622 93,185 3 % Building Materials Distribution sales 1,505,021 1,379,242 9 % Building Materials Distribution income 72,463 69,685 4 % Building Materials Distribution EBITDA 1 83,570 76,755 9 % 1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release. In first quarter 2024, total U.S. housing starts and single-family housing starts increased 1% and 27%, respectively, compared to the same period in 2023. Single-family housing starts are the key demand driver for our sales. Wood Products Wood Products' sales, including sales to Building Materials Distribution (BMD), increased $31.5 million, or 7%, to $468.9 million for the three months ended March 31, 2024, from $437.4 million for the three months ended March 31, 2023. The increase in sales was driven by higher sales volumes for I-joists and LVL (collectively referred to as EWP), as well as higher plywood sales prices. These increases were offset partially by decreased sales prices for EWP, as well as lower plywood sales volumes and other sales related to residual byproducts and lumber. Wood Products' segment income increased $1.8 million to $71.2 million for the three months ended March 31, 2024, from $69.4 million for the three months ended March 31, 2023. The increase in segment income was due primarily to higher EWP sales volumes and higher plywood sales prices. These increases in segment income were offset partially by lower EWP prices and higher wood fiber costs. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows: 1Q 2024 vs. 1Q 2023 1Q 2024 vs. 4Q 2023 Average Net Selling Prices LVL (8)% (4)% I-joists (7)% (4)% Plywood 3% 1% Sales Volumes LVL 31% 16% I-joists 46% 5% Plywood (8)% 2% Building Materials Distribution BMD's sales increased $125.8 million, or 9%, to $1,505.0 million for the three months ended March 31, 2024, from $1,379.2 million for the three months ended March 31, 2023. Compared with the same quarter in the prior year, the increase in sales was driven by sales volume increases of 12%, offset partially by sales price decreases of 3%. By product line, commodity sales increased 1%, general line product sales increased 16%, and EWP sales (substantially all of which are sourced through our Wood Products segment) increased 12%. BMD segment income increased $2.8 million to $72.5 million for the three months ended March 31, 2024, from $69.7 million for the three months ended March 31, 2023. The increase in segment income was driven by a gross margin increase of $22.9 million, resulting primarily from higher sales volumes and improved margins on general line and commodity products. The gross margin improvement was offset partially by increased selling and distribution expenses and depreciation and amortization expense of $16.5 million and $4.0 million, respectively. Balance Sheet and Liquidity Boise Cascade ended first quarter 2024 with $890.2 million of cash and cash equivalents and $395.7 million of undrawn committed bank line availability, for total available liquidity of $1,286.0 million. The Company had $445.5 million of outstanding debt at March 31, 2024. Capital Allocation We expect capital expenditures in 2024, excluding potential acquisition spending, to total approximately $250 million to $270 million. On May 2, 2024, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on June 17, 2024, to stockholders of record on June 3, 2024. For the three months ended March 31, 2024, the Company paid $27.0 million for the repurchase of 205,938 shares of our common stock. As of March 31, 2024, approximately 1.7 million shares were available for repurchase under our existing share repurchase program. Outlook Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Residential construction, particularly new single-family construction, is the key demand driver for the products we manufacture and distribute. Current industry forecasts for 2024 U.S. housing starts are generally consistent with actual housing starts of 1.42 million in 2023, as reported by the U.S. Census Bureau. Home affordability remains a challenge for many consumers due to the cost of housing combined with elevated mortgage rates. However, with low unemployment and an undersupply of existing housing stock available for sale, new residential construction is expected to remain an important source of supply for homebuyers. Recent pressures on multi-family starts are expected to continue due to increased capital costs for developers combined with cooling rents and elevated supply. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending. In 2023, year-over-year growth rates in renovation spending moderated due to economic uncertainty and higher borrowing costs. While home improvement spending is expected to remain healthy compared to history, recent industry forecasts project mid-single-digit declines in 2024. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, and other factors will likely influence the near-term demand environment for the products we manufacture and distribute. As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Future product pricing, particularly commodity products pricing and input costs, may be volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. About Boise Cascade Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com. Webcast and Conference Call Boise Cascade will host a webcast and conference call to discuss first quarter earnings on Tuesday, May 7, 2024, at 11 a.m. Eastern. To join the webcast, go to the Investors section of our website at www.bc.com/investors and select the Event Calendar link. Analysts and investors who wish to ask questions during the Q&A session can register for the call here. The archived webcast will be available in the Investors section of Boise Cascade's website. Use of Non-GAAP Financial Measures We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Forward-Looking Statements This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding our outlook. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, our ability to efficiently and effectively integrate the BROSCO acquisition, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release. Boise Cascade Company Consolidated Statements of Operations (in thousands, except per-share data) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Sales $ 1,645,420 $ 1,544,329 $ 1,644,256 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 1,307,439 1,230,635 1,310,062 Depreciation and amortization 35,850 31,186 39,085 Selling and distribution expenses 144,110 128,788 143,796 General and administrative expenses 25,117 26,463 30,241 Other (income) expense, net (78 ) (345 ) (104 ) 1,512,438 1,416,727 1,523,080 Income from operations 132,982 127,602 121,176 Foreign currency exchange gain (loss) (299 ) (73 ) 362 Pension expense (excluding service costs) (37 ) (41 ) (41 ) Interest expense (6,070 ) (6,361 ) (6,445 ) Interest income 10,597 9,685 13,142 Change in fair value of interest rate swaps (220 ) (804 ) (993 ) 3,971 2,406 6,025 Income before income taxes 136,953 130,008 127,201 Income tax provision (32,829 ) (33,275 ) (29,666 ) Net income $ 104,124 $ 96,733 $ 97,535 Weighted average common shares outstanding: Basic 39,608 39,593 39,653 Diluted 39,956 39,838 40,020 Net income per common share: Basic $ 2.63 $ 2.44 $ 2.46 Diluted $ 2.61 $ 2.43 $ 2.44 Dividends declared per common share $ 0.20 $ 0.15 $ 5.20 Wood Products Segment Statements of Operations (in thousands, except percentages) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales $ 468,928 $ 437,428 $ 449,676 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 357,721 327,739 340,845 Depreciation and amortization 24,384 23,790 28,565 Selling and distribution expenses 10,551 11,678 11,215 General and administrative expenses 5,020 5,178 4,844 Other (income) expense, net 14 (352 ) 79 397,690 368,033 385,548 Segment income $ 71,238 $ 69,395 $ 64,128 (percentage of sales) Segment sales 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 76.3 % 74.9 % 75.8 % Depreciation and amortization 5.2 % 5.4 % 6.4 % Selling and distribution expenses 2.3 % 2.7 % 2.5 % General and administrative expenses 1.1 % 1.2 % 1.1 % Other (income) expense, net — % (0.1 %) — % 84.8 % 84.1 % 85.7 % Segment income 15.2 % 15.9 % 14.3 % Building Materials Distribution Segment Statements of Operations (in thousands, except percentages) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales $ 1,505,021 $ 1,379,242 $ 1,492,614 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 1,278,421 1,175,550 1,265,493 Depreciation and amortization 11,107 7,070 10,116 Selling and distribution expenses 133,614 117,110 132,635 General and administrative expenses 9,534 10,030 14,100 Other (income) expense, net (118 ) (203 ) (227 ) 1,432,558 1,309,557 1,422,117 Segment income $ 72,463 $ 69,685 $ 70,497 (percentage of sales) Segment sales 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 84.9 % 85.2 % 84.8 % Depreciation and amortization 0.7 % 0.5 % 0.7 % Selling and distribution expenses 8.9 % 8.5 % 8.9 % General and administrative expenses 0.6 % 0.7 % 0.9 % Other (income) expense, net — % — % — % 95.2 % 94.9 % 95.3 % Segment income 4.8 % 5.1 % 4.7 % Segment Information (in thousands) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales Wood Products $ 468,928 $ 437,428 $ 449,676 Building Materials Distribution 1,505,021 1,379,242 1,492,614 Intersegment eliminations (328,529 ) (272,341 ) (298,034 ) Total net sales $ 1,645,420 $ 1,544,329 $ 1,644,256 Segment income Wood Products $ 71,238 $ 69,395 $ 64,128 Building Materials Distribution 72,463 69,685 70,497 Total segment income 143,701 139,080 134,625 Unallocated corporate costs (10,719 ) (11,478 ) (13,449 ) Income from operations $ 132,982 $ 127,602 $ 121,176 Segment EBITDA Wood Products $ 95,622 $ 93,185 $ 92,693 Building Materials Distribution 83,570 76,755 80,613 See accompanying summary notes to consolidated financial statements and segment information. Boise Cascade Company Consolidated Balance Sheets (in thousands) (unaudited) March 31, 2024 December 31, 2023 ASSETS Current Cash and cash equivalents $ 890,247 $ 949,574 Receivables Trade, less allowances of $4,020 and $3,278 480,579 352,780 Related parties 225 181 Other 13,476 20,740 Inventories 814,596 712,369 Prepaid expenses and other 17,549 21,170 Total current assets 2,216,672 2,056,814 Property and equipment, net 934,286 932,633 Operating lease right-of-use assets 61,378 62,868 Finance lease right-of-use assets 24,172 24,003 Timber deposits 6,898 7,208 Goodwill 170,254 170,254 Intangible assets, net 185,836 190,743 Deferred income taxes 4,748 4,854 Other assets 10,184 9,269 Total assets $ 3,614,428 $ 3,458,646 Boise Cascade Company Consolidated Balance Sheets (continued) (in thousands, except per-share data) (unaudited) March 31, 2024 December 31, 2023 LIABILITIES AND STOCKHOLDERS' EQUITY Current Accounts payable Trade $ 460,244 $ 310,175 Related parties 1,281 1,501 Accrued liabilities Compensation and benefits 69,308 149,561 Income taxes payable 21,774 — Interest payable 5,083 9,958 Other 127,036 122,921 Total current liabilities 684,726 594,116 Debt Long-term debt 445,502 445,280 Other Compensation and benefits 39,223 40,189 Operating lease liabilities, net of current portion 54,850 56,425 Finance lease liabilities, net of current portion 28,347 28,084 Deferred income taxes 87,078 82,014 Other long-term liabilities 17,500 16,874 226,998 223,586 Commitments and contingent liabilities Stockholders' equity Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value per share; 300,000 shares authorized, 45,127 and 44,983 shares issued, respectively 451 450 Treasury stock, 5,649 and 5,443 shares at cost, respectively (172,377 ) (145,335 ) Additional paid-in capital 553,821 560,697 Accumulated other comprehensive loss (509 ) (517 ) Retained earnings 1,875,816 1,780,369 Total stockholders' equity 2,257,202 2,195,664 Total liabilities and stockholders' equity $ 3,614,428 $ 3,458,646 Boise Cascade Company Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31 2024 2023 Cash provided by (used for) operations Net income $ 104,124 $ 96,733 Items in net income not using (providing) cash Depreciation and amortization, including deferred financing costs and other 36,621 31,853 Stock-based compensation 4,105 3,324 Pension expense 37 41 Deferred income taxes 5,062 3,393 Change in fair value of interest rate swaps 220 804 Other 55 (518 ) Decrease (increase) in working capital, net of acquisitions Receivables (119,235 ) (111,253 ) Inventories (103,331 ) (41,247 ) Prepaid expenses and other (1,689 ) (1,428 ) Accounts payable and accrued liabilities 75,041 36,181 Income taxes payable 25,834 28,631 Other 618 1,478 Net cash provided by operations 27,462 47,992 Cash provided by (used for) investment Expenditures for property and equipment (34,330 ) (30,063 ) Acquisitions of businesses and facilities, net of cash acquired (3,387 ) — Proceeds from sales of assets and other 559 565 Net cash used for investment (37,158 ) (29,498 ) Cash provided by (used for) financing Treasury stock purchased (26,971 ) (1,482 ) Dividends paid on common stock (11,205 ) (8,258 ) Tax withholding payments on stock-based awards (10,980 ) (5,926 ) Other (475 ) (451 ) Net cash used for financing (49,631 ) (16,117 ) Net increase (decrease) in cash and cash equivalents (59,327 ) 2,377 Balance at beginning of the period 949,574 998,344 Balance at end of the period $ 890,247 $ 1,000,721 Summary Notes to Consolidated Financial Statements and Segment Information The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2023 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals. EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2024 and 2023, and December 31, 2023: Three Months Ended March 31 December 31, 2023 2024 2023 (in thousands) Net income $ 104,124 $ 96,733 $ 97,535 Interest expense 6,070 6,361 6,445 Interest income (10,597 ) (9,685 ) (13,142 ) Income tax provision 32,829 33,275 29,666 Depreciation and amortization 35,850 31,186 39,085 EBITDA 168,276 157,870 159,589 Change in fair value of interest rate swaps 220 804 993 Adjusted EBITDA $ 168,496 $ 158,674 $ 160,582 The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended March 31, 2024 and 2023, and December 31, 2023: Three Months Ended March 31 December 31, 2023 2024 2023 (in thousands) Wood Products Segment income $ 71,238 $ 69,395 $ 64,128 Depreciation and amortization 24,384 23,790 28,565 EBITDA $ 95,622 $ 93,185 $ 92,693 Building Materials Distribution Segment income $ 72,463 $ 69,685 $ 70,497 Depreciation and amortization 11,107 7,070 10,116 EBITDA $ 83,570 $ 76,755 $ 80,613 Corporate Unallocated corporate costs $ (10,719 ) $ (11,478 ) $ (13,449 ) Foreign currency exchange gain (loss) (299 ) (73 ) 362 Pension expense (excluding service costs) (37 ) (41 ) (41 ) Change in fair value of interest rate swaps (220 ) (804 ) (993 ) Depreciation and amortization 359 326 404 EBITDA (10,916 ) (12,070 ) (13,717 ) Change in fair value of interest rate swaps 220 804 993 Corporate adjusted EBITDA $ (10,696 ) $ (11,266 ) $ (12,724 ) Total Company adjusted EBITDA $ 168,496 $ 158,674 $ 160,582 View source version on businesswire.com: https://www.businesswire.com/news/home/20240506802952/en/Contacts Investor Relations Contact - Chris Forrey investor@bc.com Media Contact - Lisa Tschampl mediarelations@bc.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Boise Cascade Company Reports First Quarter 2024 Results By: Boise Cascade Company via Business Wire May 06, 2024 at 16:10 PM EDT Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $104.1 million, or $2.61 per share, on sales of $1.6 billion for the first quarter ended March 31, 2024, compared with net income of $96.7 million, or $2.43 per share, on sales of $1.5 billion for the first quarter ended March 31, 2023. "I am pleased with the strong financial results that our team delivered during the first quarter. As expected, it was a period influenced by seasonal factors and the relative strength of new single-family starts," stated Nate Jorgensen, CEO. "As we enter the second quarter, economic and geopolitical uncertainties are prevalent, and the extent of the potential impact on the broader economy and residential construction activity is unknown. Despite the near-term environment, an undersupply of single-family homes remains, and I have great confidence in our team as we stay focused on the effective deployment of our outstanding balance sheet in support of our stakeholders." First Quarter 2024 Highlights 1Q 2024 1Q 2023 % change (in thousands, except per-share data and percentages) Consolidated Results Sales $ 1,645,420 $ 1,544,329 7 % Net income 104,124 96,733 8 % Net income per common share - diluted 2.61 2.43 7 % Adjusted EBITDA 1 168,496 158,674 6 % Segment Results Wood Products sales $ 468,928 $ 437,428 7 % Wood Products income 71,238 69,395 3 % Wood Products EBITDA 1 95,622 93,185 3 % Building Materials Distribution sales 1,505,021 1,379,242 9 % Building Materials Distribution income 72,463 69,685 4 % Building Materials Distribution EBITDA 1 83,570 76,755 9 % 1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release. In first quarter 2024, total U.S. housing starts and single-family housing starts increased 1% and 27%, respectively, compared to the same period in 2023. Single-family housing starts are the key demand driver for our sales. Wood Products Wood Products' sales, including sales to Building Materials Distribution (BMD), increased $31.5 million, or 7%, to $468.9 million for the three months ended March 31, 2024, from $437.4 million for the three months ended March 31, 2023. The increase in sales was driven by higher sales volumes for I-joists and LVL (collectively referred to as EWP), as well as higher plywood sales prices. These increases were offset partially by decreased sales prices for EWP, as well as lower plywood sales volumes and other sales related to residual byproducts and lumber. Wood Products' segment income increased $1.8 million to $71.2 million for the three months ended March 31, 2024, from $69.4 million for the three months ended March 31, 2023. The increase in segment income was due primarily to higher EWP sales volumes and higher plywood sales prices. These increases in segment income were offset partially by lower EWP prices and higher wood fiber costs. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows: 1Q 2024 vs. 1Q 2023 1Q 2024 vs. 4Q 2023 Average Net Selling Prices LVL (8)% (4)% I-joists (7)% (4)% Plywood 3% 1% Sales Volumes LVL 31% 16% I-joists 46% 5% Plywood (8)% 2% Building Materials Distribution BMD's sales increased $125.8 million, or 9%, to $1,505.0 million for the three months ended March 31, 2024, from $1,379.2 million for the three months ended March 31, 2023. Compared with the same quarter in the prior year, the increase in sales was driven by sales volume increases of 12%, offset partially by sales price decreases of 3%. By product line, commodity sales increased 1%, general line product sales increased 16%, and EWP sales (substantially all of which are sourced through our Wood Products segment) increased 12%. BMD segment income increased $2.8 million to $72.5 million for the three months ended March 31, 2024, from $69.7 million for the three months ended March 31, 2023. The increase in segment income was driven by a gross margin increase of $22.9 million, resulting primarily from higher sales volumes and improved margins on general line and commodity products. The gross margin improvement was offset partially by increased selling and distribution expenses and depreciation and amortization expense of $16.5 million and $4.0 million, respectively. Balance Sheet and Liquidity Boise Cascade ended first quarter 2024 with $890.2 million of cash and cash equivalents and $395.7 million of undrawn committed bank line availability, for total available liquidity of $1,286.0 million. The Company had $445.5 million of outstanding debt at March 31, 2024. Capital Allocation We expect capital expenditures in 2024, excluding potential acquisition spending, to total approximately $250 million to $270 million. On May 2, 2024, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on June 17, 2024, to stockholders of record on June 3, 2024. For the three months ended March 31, 2024, the Company paid $27.0 million for the repurchase of 205,938 shares of our common stock. As of March 31, 2024, approximately 1.7 million shares were available for repurchase under our existing share repurchase program. Outlook Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Residential construction, particularly new single-family construction, is the key demand driver for the products we manufacture and distribute. Current industry forecasts for 2024 U.S. housing starts are generally consistent with actual housing starts of 1.42 million in 2023, as reported by the U.S. Census Bureau. Home affordability remains a challenge for many consumers due to the cost of housing combined with elevated mortgage rates. However, with low unemployment and an undersupply of existing housing stock available for sale, new residential construction is expected to remain an important source of supply for homebuyers. Recent pressures on multi-family starts are expected to continue due to increased capital costs for developers combined with cooling rents and elevated supply. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending. In 2023, year-over-year growth rates in renovation spending moderated due to economic uncertainty and higher borrowing costs. While home improvement spending is expected to remain healthy compared to history, recent industry forecasts project mid-single-digit declines in 2024. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, and other factors will likely influence the near-term demand environment for the products we manufacture and distribute. As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Future product pricing, particularly commodity products pricing and input costs, may be volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. About Boise Cascade Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com. Webcast and Conference Call Boise Cascade will host a webcast and conference call to discuss first quarter earnings on Tuesday, May 7, 2024, at 11 a.m. Eastern. To join the webcast, go to the Investors section of our website at www.bc.com/investors and select the Event Calendar link. Analysts and investors who wish to ask questions during the Q&A session can register for the call here. The archived webcast will be available in the Investors section of Boise Cascade's website. Use of Non-GAAP Financial Measures We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Forward-Looking Statements This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding our outlook. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, our ability to efficiently and effectively integrate the BROSCO acquisition, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release. Boise Cascade Company Consolidated Statements of Operations (in thousands, except per-share data) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Sales $ 1,645,420 $ 1,544,329 $ 1,644,256 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 1,307,439 1,230,635 1,310,062 Depreciation and amortization 35,850 31,186 39,085 Selling and distribution expenses 144,110 128,788 143,796 General and administrative expenses 25,117 26,463 30,241 Other (income) expense, net (78 ) (345 ) (104 ) 1,512,438 1,416,727 1,523,080 Income from operations 132,982 127,602 121,176 Foreign currency exchange gain (loss) (299 ) (73 ) 362 Pension expense (excluding service costs) (37 ) (41 ) (41 ) Interest expense (6,070 ) (6,361 ) (6,445 ) Interest income 10,597 9,685 13,142 Change in fair value of interest rate swaps (220 ) (804 ) (993 ) 3,971 2,406 6,025 Income before income taxes 136,953 130,008 127,201 Income tax provision (32,829 ) (33,275 ) (29,666 ) Net income $ 104,124 $ 96,733 $ 97,535 Weighted average common shares outstanding: Basic 39,608 39,593 39,653 Diluted 39,956 39,838 40,020 Net income per common share: Basic $ 2.63 $ 2.44 $ 2.46 Diluted $ 2.61 $ 2.43 $ 2.44 Dividends declared per common share $ 0.20 $ 0.15 $ 5.20 Wood Products Segment Statements of Operations (in thousands, except percentages) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales $ 468,928 $ 437,428 $ 449,676 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 357,721 327,739 340,845 Depreciation and amortization 24,384 23,790 28,565 Selling and distribution expenses 10,551 11,678 11,215 General and administrative expenses 5,020 5,178 4,844 Other (income) expense, net 14 (352 ) 79 397,690 368,033 385,548 Segment income $ 71,238 $ 69,395 $ 64,128 (percentage of sales) Segment sales 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 76.3 % 74.9 % 75.8 % Depreciation and amortization 5.2 % 5.4 % 6.4 % Selling and distribution expenses 2.3 % 2.7 % 2.5 % General and administrative expenses 1.1 % 1.2 % 1.1 % Other (income) expense, net — % (0.1 %) — % 84.8 % 84.1 % 85.7 % Segment income 15.2 % 15.9 % 14.3 % Building Materials Distribution Segment Statements of Operations (in thousands, except percentages) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales $ 1,505,021 $ 1,379,242 $ 1,492,614 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 1,278,421 1,175,550 1,265,493 Depreciation and amortization 11,107 7,070 10,116 Selling and distribution expenses 133,614 117,110 132,635 General and administrative expenses 9,534 10,030 14,100 Other (income) expense, net (118 ) (203 ) (227 ) 1,432,558 1,309,557 1,422,117 Segment income $ 72,463 $ 69,685 $ 70,497 (percentage of sales) Segment sales 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 84.9 % 85.2 % 84.8 % Depreciation and amortization 0.7 % 0.5 % 0.7 % Selling and distribution expenses 8.9 % 8.5 % 8.9 % General and administrative expenses 0.6 % 0.7 % 0.9 % Other (income) expense, net — % — % — % 95.2 % 94.9 % 95.3 % Segment income 4.8 % 5.1 % 4.7 % Segment Information (in thousands) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales Wood Products $ 468,928 $ 437,428 $ 449,676 Building Materials Distribution 1,505,021 1,379,242 1,492,614 Intersegment eliminations (328,529 ) (272,341 ) (298,034 ) Total net sales $ 1,645,420 $ 1,544,329 $ 1,644,256 Segment income Wood Products $ 71,238 $ 69,395 $ 64,128 Building Materials Distribution 72,463 69,685 70,497 Total segment income 143,701 139,080 134,625 Unallocated corporate costs (10,719 ) (11,478 ) (13,449 ) Income from operations $ 132,982 $ 127,602 $ 121,176 Segment EBITDA Wood Products $ 95,622 $ 93,185 $ 92,693 Building Materials Distribution 83,570 76,755 80,613 See accompanying summary notes to consolidated financial statements and segment information. Boise Cascade Company Consolidated Balance Sheets (in thousands) (unaudited) March 31, 2024 December 31, 2023 ASSETS Current Cash and cash equivalents $ 890,247 $ 949,574 Receivables Trade, less allowances of $4,020 and $3,278 480,579 352,780 Related parties 225 181 Other 13,476 20,740 Inventories 814,596 712,369 Prepaid expenses and other 17,549 21,170 Total current assets 2,216,672 2,056,814 Property and equipment, net 934,286 932,633 Operating lease right-of-use assets 61,378 62,868 Finance lease right-of-use assets 24,172 24,003 Timber deposits 6,898 7,208 Goodwill 170,254 170,254 Intangible assets, net 185,836 190,743 Deferred income taxes 4,748 4,854 Other assets 10,184 9,269 Total assets $ 3,614,428 $ 3,458,646 Boise Cascade Company Consolidated Balance Sheets (continued) (in thousands, except per-share data) (unaudited) March 31, 2024 December 31, 2023 LIABILITIES AND STOCKHOLDERS' EQUITY Current Accounts payable Trade $ 460,244 $ 310,175 Related parties 1,281 1,501 Accrued liabilities Compensation and benefits 69,308 149,561 Income taxes payable 21,774 — Interest payable 5,083 9,958 Other 127,036 122,921 Total current liabilities 684,726 594,116 Debt Long-term debt 445,502 445,280 Other Compensation and benefits 39,223 40,189 Operating lease liabilities, net of current portion 54,850 56,425 Finance lease liabilities, net of current portion 28,347 28,084 Deferred income taxes 87,078 82,014 Other long-term liabilities 17,500 16,874 226,998 223,586 Commitments and contingent liabilities Stockholders' equity Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value per share; 300,000 shares authorized, 45,127 and 44,983 shares issued, respectively 451 450 Treasury stock, 5,649 and 5,443 shares at cost, respectively (172,377 ) (145,335 ) Additional paid-in capital 553,821 560,697 Accumulated other comprehensive loss (509 ) (517 ) Retained earnings 1,875,816 1,780,369 Total stockholders' equity 2,257,202 2,195,664 Total liabilities and stockholders' equity $ 3,614,428 $ 3,458,646 Boise Cascade Company Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31 2024 2023 Cash provided by (used for) operations Net income $ 104,124 $ 96,733 Items in net income not using (providing) cash Depreciation and amortization, including deferred financing costs and other 36,621 31,853 Stock-based compensation 4,105 3,324 Pension expense 37 41 Deferred income taxes 5,062 3,393 Change in fair value of interest rate swaps 220 804 Other 55 (518 ) Decrease (increase) in working capital, net of acquisitions Receivables (119,235 ) (111,253 ) Inventories (103,331 ) (41,247 ) Prepaid expenses and other (1,689 ) (1,428 ) Accounts payable and accrued liabilities 75,041 36,181 Income taxes payable 25,834 28,631 Other 618 1,478 Net cash provided by operations 27,462 47,992 Cash provided by (used for) investment Expenditures for property and equipment (34,330 ) (30,063 ) Acquisitions of businesses and facilities, net of cash acquired (3,387 ) — Proceeds from sales of assets and other 559 565 Net cash used for investment (37,158 ) (29,498 ) Cash provided by (used for) financing Treasury stock purchased (26,971 ) (1,482 ) Dividends paid on common stock (11,205 ) (8,258 ) Tax withholding payments on stock-based awards (10,980 ) (5,926 ) Other (475 ) (451 ) Net cash used for financing (49,631 ) (16,117 ) Net increase (decrease) in cash and cash equivalents (59,327 ) 2,377 Balance at beginning of the period 949,574 998,344 Balance at end of the period $ 890,247 $ 1,000,721 Summary Notes to Consolidated Financial Statements and Segment Information The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2023 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals. EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2024 and 2023, and December 31, 2023: Three Months Ended March 31 December 31, 2023 2024 2023 (in thousands) Net income $ 104,124 $ 96,733 $ 97,535 Interest expense 6,070 6,361 6,445 Interest income (10,597 ) (9,685 ) (13,142 ) Income tax provision 32,829 33,275 29,666 Depreciation and amortization 35,850 31,186 39,085 EBITDA 168,276 157,870 159,589 Change in fair value of interest rate swaps 220 804 993 Adjusted EBITDA $ 168,496 $ 158,674 $ 160,582 The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended March 31, 2024 and 2023, and December 31, 2023: Three Months Ended March 31 December 31, 2023 2024 2023 (in thousands) Wood Products Segment income $ 71,238 $ 69,395 $ 64,128 Depreciation and amortization 24,384 23,790 28,565 EBITDA $ 95,622 $ 93,185 $ 92,693 Building Materials Distribution Segment income $ 72,463 $ 69,685 $ 70,497 Depreciation and amortization 11,107 7,070 10,116 EBITDA $ 83,570 $ 76,755 $ 80,613 Corporate Unallocated corporate costs $ (10,719 ) $ (11,478 ) $ (13,449 ) Foreign currency exchange gain (loss) (299 ) (73 ) 362 Pension expense (excluding service costs) (37 ) (41 ) (41 ) Change in fair value of interest rate swaps (220 ) (804 ) (993 ) Depreciation and amortization 359 326 404 EBITDA (10,916 ) (12,070 ) (13,717 ) Change in fair value of interest rate swaps 220 804 993 Corporate adjusted EBITDA $ (10,696 ) $ (11,266 ) $ (12,724 ) Total Company adjusted EBITDA $ 168,496 $ 158,674 $ 160,582 View source version on businesswire.com: https://www.businesswire.com/news/home/20240506802952/en/Contacts Investor Relations Contact - Chris Forrey investor@bc.com Media Contact - Lisa Tschampl mediarelations@bc.com
Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $104.1 million, or $2.61 per share, on sales of $1.6 billion for the first quarter ended March 31, 2024, compared with net income of $96.7 million, or $2.43 per share, on sales of $1.5 billion for the first quarter ended March 31, 2023. "I am pleased with the strong financial results that our team delivered during the first quarter. As expected, it was a period influenced by seasonal factors and the relative strength of new single-family starts," stated Nate Jorgensen, CEO. "As we enter the second quarter, economic and geopolitical uncertainties are prevalent, and the extent of the potential impact on the broader economy and residential construction activity is unknown. Despite the near-term environment, an undersupply of single-family homes remains, and I have great confidence in our team as we stay focused on the effective deployment of our outstanding balance sheet in support of our stakeholders." First Quarter 2024 Highlights 1Q 2024 1Q 2023 % change (in thousands, except per-share data and percentages) Consolidated Results Sales $ 1,645,420 $ 1,544,329 7 % Net income 104,124 96,733 8 % Net income per common share - diluted 2.61 2.43 7 % Adjusted EBITDA 1 168,496 158,674 6 % Segment Results Wood Products sales $ 468,928 $ 437,428 7 % Wood Products income 71,238 69,395 3 % Wood Products EBITDA 1 95,622 93,185 3 % Building Materials Distribution sales 1,505,021 1,379,242 9 % Building Materials Distribution income 72,463 69,685 4 % Building Materials Distribution EBITDA 1 83,570 76,755 9 % 1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release. In first quarter 2024, total U.S. housing starts and single-family housing starts increased 1% and 27%, respectively, compared to the same period in 2023. Single-family housing starts are the key demand driver for our sales. Wood Products Wood Products' sales, including sales to Building Materials Distribution (BMD), increased $31.5 million, or 7%, to $468.9 million for the three months ended March 31, 2024, from $437.4 million for the three months ended March 31, 2023. The increase in sales was driven by higher sales volumes for I-joists and LVL (collectively referred to as EWP), as well as higher plywood sales prices. These increases were offset partially by decreased sales prices for EWP, as well as lower plywood sales volumes and other sales related to residual byproducts and lumber. Wood Products' segment income increased $1.8 million to $71.2 million for the three months ended March 31, 2024, from $69.4 million for the three months ended March 31, 2023. The increase in segment income was due primarily to higher EWP sales volumes and higher plywood sales prices. These increases in segment income were offset partially by lower EWP prices and higher wood fiber costs. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows: 1Q 2024 vs. 1Q 2023 1Q 2024 vs. 4Q 2023 Average Net Selling Prices LVL (8)% (4)% I-joists (7)% (4)% Plywood 3% 1% Sales Volumes LVL 31% 16% I-joists 46% 5% Plywood (8)% 2% Building Materials Distribution BMD's sales increased $125.8 million, or 9%, to $1,505.0 million for the three months ended March 31, 2024, from $1,379.2 million for the three months ended March 31, 2023. Compared with the same quarter in the prior year, the increase in sales was driven by sales volume increases of 12%, offset partially by sales price decreases of 3%. By product line, commodity sales increased 1%, general line product sales increased 16%, and EWP sales (substantially all of which are sourced through our Wood Products segment) increased 12%. BMD segment income increased $2.8 million to $72.5 million for the three months ended March 31, 2024, from $69.7 million for the three months ended March 31, 2023. The increase in segment income was driven by a gross margin increase of $22.9 million, resulting primarily from higher sales volumes and improved margins on general line and commodity products. The gross margin improvement was offset partially by increased selling and distribution expenses and depreciation and amortization expense of $16.5 million and $4.0 million, respectively. Balance Sheet and Liquidity Boise Cascade ended first quarter 2024 with $890.2 million of cash and cash equivalents and $395.7 million of undrawn committed bank line availability, for total available liquidity of $1,286.0 million. The Company had $445.5 million of outstanding debt at March 31, 2024. Capital Allocation We expect capital expenditures in 2024, excluding potential acquisition spending, to total approximately $250 million to $270 million. On May 2, 2024, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on June 17, 2024, to stockholders of record on June 3, 2024. For the three months ended March 31, 2024, the Company paid $27.0 million for the repurchase of 205,938 shares of our common stock. As of March 31, 2024, approximately 1.7 million shares were available for repurchase under our existing share repurchase program. Outlook Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Residential construction, particularly new single-family construction, is the key demand driver for the products we manufacture and distribute. Current industry forecasts for 2024 U.S. housing starts are generally consistent with actual housing starts of 1.42 million in 2023, as reported by the U.S. Census Bureau. Home affordability remains a challenge for many consumers due to the cost of housing combined with elevated mortgage rates. However, with low unemployment and an undersupply of existing housing stock available for sale, new residential construction is expected to remain an important source of supply for homebuyers. Recent pressures on multi-family starts are expected to continue due to increased capital costs for developers combined with cooling rents and elevated supply. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending. In 2023, year-over-year growth rates in renovation spending moderated due to economic uncertainty and higher borrowing costs. While home improvement spending is expected to remain healthy compared to history, recent industry forecasts project mid-single-digit declines in 2024. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, and other factors will likely influence the near-term demand environment for the products we manufacture and distribute. As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Future product pricing, particularly commodity products pricing and input costs, may be volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. About Boise Cascade Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com. Webcast and Conference Call Boise Cascade will host a webcast and conference call to discuss first quarter earnings on Tuesday, May 7, 2024, at 11 a.m. Eastern. To join the webcast, go to the Investors section of our website at www.bc.com/investors and select the Event Calendar link. Analysts and investors who wish to ask questions during the Q&A session can register for the call here. The archived webcast will be available in the Investors section of Boise Cascade's website. Use of Non-GAAP Financial Measures We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Forward-Looking Statements This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding our outlook. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, our ability to efficiently and effectively integrate the BROSCO acquisition, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release. Boise Cascade Company Consolidated Statements of Operations (in thousands, except per-share data) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Sales $ 1,645,420 $ 1,544,329 $ 1,644,256 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 1,307,439 1,230,635 1,310,062 Depreciation and amortization 35,850 31,186 39,085 Selling and distribution expenses 144,110 128,788 143,796 General and administrative expenses 25,117 26,463 30,241 Other (income) expense, net (78 ) (345 ) (104 ) 1,512,438 1,416,727 1,523,080 Income from operations 132,982 127,602 121,176 Foreign currency exchange gain (loss) (299 ) (73 ) 362 Pension expense (excluding service costs) (37 ) (41 ) (41 ) Interest expense (6,070 ) (6,361 ) (6,445 ) Interest income 10,597 9,685 13,142 Change in fair value of interest rate swaps (220 ) (804 ) (993 ) 3,971 2,406 6,025 Income before income taxes 136,953 130,008 127,201 Income tax provision (32,829 ) (33,275 ) (29,666 ) Net income $ 104,124 $ 96,733 $ 97,535 Weighted average common shares outstanding: Basic 39,608 39,593 39,653 Diluted 39,956 39,838 40,020 Net income per common share: Basic $ 2.63 $ 2.44 $ 2.46 Diluted $ 2.61 $ 2.43 $ 2.44 Dividends declared per common share $ 0.20 $ 0.15 $ 5.20 Wood Products Segment Statements of Operations (in thousands, except percentages) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales $ 468,928 $ 437,428 $ 449,676 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 357,721 327,739 340,845 Depreciation and amortization 24,384 23,790 28,565 Selling and distribution expenses 10,551 11,678 11,215 General and administrative expenses 5,020 5,178 4,844 Other (income) expense, net 14 (352 ) 79 397,690 368,033 385,548 Segment income $ 71,238 $ 69,395 $ 64,128 (percentage of sales) Segment sales 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 76.3 % 74.9 % 75.8 % Depreciation and amortization 5.2 % 5.4 % 6.4 % Selling and distribution expenses 2.3 % 2.7 % 2.5 % General and administrative expenses 1.1 % 1.2 % 1.1 % Other (income) expense, net — % (0.1 %) — % 84.8 % 84.1 % 85.7 % Segment income 15.2 % 15.9 % 14.3 % Building Materials Distribution Segment Statements of Operations (in thousands, except percentages) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales $ 1,505,021 $ 1,379,242 $ 1,492,614 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 1,278,421 1,175,550 1,265,493 Depreciation and amortization 11,107 7,070 10,116 Selling and distribution expenses 133,614 117,110 132,635 General and administrative expenses 9,534 10,030 14,100 Other (income) expense, net (118 ) (203 ) (227 ) 1,432,558 1,309,557 1,422,117 Segment income $ 72,463 $ 69,685 $ 70,497 (percentage of sales) Segment sales 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 84.9 % 85.2 % 84.8 % Depreciation and amortization 0.7 % 0.5 % 0.7 % Selling and distribution expenses 8.9 % 8.5 % 8.9 % General and administrative expenses 0.6 % 0.7 % 0.9 % Other (income) expense, net — % — % — % 95.2 % 94.9 % 95.3 % Segment income 4.8 % 5.1 % 4.7 % Segment Information (in thousands) (unaudited) Three Months Ended March 31 December 31, 2023 2024 2023 Segment sales Wood Products $ 468,928 $ 437,428 $ 449,676 Building Materials Distribution 1,505,021 1,379,242 1,492,614 Intersegment eliminations (328,529 ) (272,341 ) (298,034 ) Total net sales $ 1,645,420 $ 1,544,329 $ 1,644,256 Segment income Wood Products $ 71,238 $ 69,395 $ 64,128 Building Materials Distribution 72,463 69,685 70,497 Total segment income 143,701 139,080 134,625 Unallocated corporate costs (10,719 ) (11,478 ) (13,449 ) Income from operations $ 132,982 $ 127,602 $ 121,176 Segment EBITDA Wood Products $ 95,622 $ 93,185 $ 92,693 Building Materials Distribution 83,570 76,755 80,613 See accompanying summary notes to consolidated financial statements and segment information. Boise Cascade Company Consolidated Balance Sheets (in thousands) (unaudited) March 31, 2024 December 31, 2023 ASSETS Current Cash and cash equivalents $ 890,247 $ 949,574 Receivables Trade, less allowances of $4,020 and $3,278 480,579 352,780 Related parties 225 181 Other 13,476 20,740 Inventories 814,596 712,369 Prepaid expenses and other 17,549 21,170 Total current assets 2,216,672 2,056,814 Property and equipment, net 934,286 932,633 Operating lease right-of-use assets 61,378 62,868 Finance lease right-of-use assets 24,172 24,003 Timber deposits 6,898 7,208 Goodwill 170,254 170,254 Intangible assets, net 185,836 190,743 Deferred income taxes 4,748 4,854 Other assets 10,184 9,269 Total assets $ 3,614,428 $ 3,458,646 Boise Cascade Company Consolidated Balance Sheets (continued) (in thousands, except per-share data) (unaudited) March 31, 2024 December 31, 2023 LIABILITIES AND STOCKHOLDERS' EQUITY Current Accounts payable Trade $ 460,244 $ 310,175 Related parties 1,281 1,501 Accrued liabilities Compensation and benefits 69,308 149,561 Income taxes payable 21,774 — Interest payable 5,083 9,958 Other 127,036 122,921 Total current liabilities 684,726 594,116 Debt Long-term debt 445,502 445,280 Other Compensation and benefits 39,223 40,189 Operating lease liabilities, net of current portion 54,850 56,425 Finance lease liabilities, net of current portion 28,347 28,084 Deferred income taxes 87,078 82,014 Other long-term liabilities 17,500 16,874 226,998 223,586 Commitments and contingent liabilities Stockholders' equity Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value per share; 300,000 shares authorized, 45,127 and 44,983 shares issued, respectively 451 450 Treasury stock, 5,649 and 5,443 shares at cost, respectively (172,377 ) (145,335 ) Additional paid-in capital 553,821 560,697 Accumulated other comprehensive loss (509 ) (517 ) Retained earnings 1,875,816 1,780,369 Total stockholders' equity 2,257,202 2,195,664 Total liabilities and stockholders' equity $ 3,614,428 $ 3,458,646 Boise Cascade Company Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31 2024 2023 Cash provided by (used for) operations Net income $ 104,124 $ 96,733 Items in net income not using (providing) cash Depreciation and amortization, including deferred financing costs and other 36,621 31,853 Stock-based compensation 4,105 3,324 Pension expense 37 41 Deferred income taxes 5,062 3,393 Change in fair value of interest rate swaps 220 804 Other 55 (518 ) Decrease (increase) in working capital, net of acquisitions Receivables (119,235 ) (111,253 ) Inventories (103,331 ) (41,247 ) Prepaid expenses and other (1,689 ) (1,428 ) Accounts payable and accrued liabilities 75,041 36,181 Income taxes payable 25,834 28,631 Other 618 1,478 Net cash provided by operations 27,462 47,992 Cash provided by (used for) investment Expenditures for property and equipment (34,330 ) (30,063 ) Acquisitions of businesses and facilities, net of cash acquired (3,387 ) — Proceeds from sales of assets and other 559 565 Net cash used for investment (37,158 ) (29,498 ) Cash provided by (used for) financing Treasury stock purchased (26,971 ) (1,482 ) Dividends paid on common stock (11,205 ) (8,258 ) Tax withholding payments on stock-based awards (10,980 ) (5,926 ) Other (475 ) (451 ) Net cash used for financing (49,631 ) (16,117 ) Net increase (decrease) in cash and cash equivalents (59,327 ) 2,377 Balance at beginning of the period 949,574 998,344 Balance at end of the period $ 890,247 $ 1,000,721 Summary Notes to Consolidated Financial Statements and Segment Information The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2023 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals. EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2024 and 2023, and December 31, 2023: Three Months Ended March 31 December 31, 2023 2024 2023 (in thousands) Net income $ 104,124 $ 96,733 $ 97,535 Interest expense 6,070 6,361 6,445 Interest income (10,597 ) (9,685 ) (13,142 ) Income tax provision 32,829 33,275 29,666 Depreciation and amortization 35,850 31,186 39,085 EBITDA 168,276 157,870 159,589 Change in fair value of interest rate swaps 220 804 993 Adjusted EBITDA $ 168,496 $ 158,674 $ 160,582 The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended March 31, 2024 and 2023, and December 31, 2023: Three Months Ended March 31 December 31, 2023 2024 2023 (in thousands) Wood Products Segment income $ 71,238 $ 69,395 $ 64,128 Depreciation and amortization 24,384 23,790 28,565 EBITDA $ 95,622 $ 93,185 $ 92,693 Building Materials Distribution Segment income $ 72,463 $ 69,685 $ 70,497 Depreciation and amortization 11,107 7,070 10,116 EBITDA $ 83,570 $ 76,755 $ 80,613 Corporate Unallocated corporate costs $ (10,719 ) $ (11,478 ) $ (13,449 ) Foreign currency exchange gain (loss) (299 ) (73 ) 362 Pension expense (excluding service costs) (37 ) (41 ) (41 ) Change in fair value of interest rate swaps (220 ) (804 ) (993 ) Depreciation and amortization 359 326 404 EBITDA (10,916 ) (12,070 ) (13,717 ) Change in fair value of interest rate swaps 220 804 993 Corporate adjusted EBITDA $ (10,696 ) $ (11,266 ) $ (12,724 ) Total Company adjusted EBITDA $ 168,496 $ 158,674 $ 160,582 View source version on businesswire.com: https://www.businesswire.com/news/home/20240506802952/en/
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