BCC Boise Cascade LLC

Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $112.3 million, or $2.84 per share, on sales of $1.8 billion for the second quarter ended June 30, 2024, compared with net income of $146.3 million, or $3.67 per share, on sales of $1.8 billion for the second quarter ended June 30, 2023.

"Our team delivered solid financial performance in the second quarter while operating in a somewhat tepid demand environment influenced by elevated mortgage rates and economic uncertainties. In addition, spending on our organic growth projects progressed as expected and returns of capital to our shareholders were again in clear focus, including the recent announcement of a meaningful special dividend that will fund in September," stated Nate Jorgensen, CEO. "While the near-term demand environment is uncertain, I remain confident in our ability to deliver quality results through the second half of the year. Our proven team will accomplish this by leveraging our outstanding manufacturing and wholesale distribution network, and our relentless drive to deliver superior value to our customer and vendor partners."

Second Quarter 2024 Highlights

 

 

2Q 2024

 

2Q 2023

 

% change

 

 

(in thousands, except per-share data and percentages)

Consolidated Results

 

 

 

 

 

 

Sales

 

$

1,797,670

 

$

1,815,219

 

(1

)%

Net income

 

 

112,292

 

 

146,320

 

(23

)%

Net income per common share - diluted

 

 

2.84

 

 

3.67

 

(23

)%

Adjusted EBITDA 1

 

 

181,207

 

 

220,976

 

(18

)%

Segment Results

 

 

 

 

 

 

Wood Products sales

 

$

489,823

 

$

530,273

 

(8

)%

Wood Products income

 

 

72,780

 

 

104,035

 

(30

)%

Wood Products EBITDA 1

 

 

95,050

 

 

127,040

 

(25

)%

Building Materials Distribution sales

 

 

1,655,221

 

 

1,636,538

 

1

%

Building Materials Distribution income

 

 

85,400

 

 

98,550

 

(13

)%

Building Materials Distribution EBITDA 1

 

 

97,141

 

 

105,936

 

(8

)%

1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.

In second quarter 2024, total U.S. housing starts decreased 7%, while single-family housing starts increased 7%, compared to the same period in 2023. On a year-to-date basis through June 2024, total housing starts decreased 3%, while single-family housing starts increased 16%, 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), decreased $40.5 million, or 8%, to $489.8 million for the three months ended June 30, 2024, from $530.3 million for the three months ended June 30, 2023. The decrease in sales was driven by lower plywood sales volumes, as well as lower sales prices for LVL and I-joists (collectively referred to as EWP). Other sales related to lumber and residual byproducts also decreased. These decreases were offset partially by increased sales volumes for EWP.

Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

 

 

2Q 2024 vs. 2Q 2023

 

2Q 2024 vs. 1Q 2024

 

 

 

 

 

Average Net Selling Prices

 

 

 

 

LVL

 

(7)%

 

(2)%

I-joists

 

(6)%

 

(3)%

Plywood

 

(1)%

 

(4)%

Sales Volumes

 

 

 

 

LVL

 

8%

 

6%

I-joists

 

5%

 

16%

Plywood

 

(13)%

 

3%

Wood Products' segment income decreased $31.3 million to $72.8 million for the three months ended June 30, 2024, from $104.0 million for the three months ended June 30, 2023. The decrease in segment income was due primarily to lower EWP sales prices, as well as higher wood fiber and conversion costs. These decreases in segment income were offset partially by higher EWP sales volumes.

Building Materials Distribution

BMD's sales increased $18.7 million, or 1%, to $1,655.2 million for the three months ended June 30, 2024, from $1,636.5 million for the three months ended June 30, 2023. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales volume increases of 2%, offset partially by sales price decreases of 1%. Excluding the impact of the BROSCO acquisition on October 2, 2023, sales would have decreased by 2%. By product line, commodity sales decreased 6%, general line product sales increased 8%, and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased less than 1%.

BMD segment income decreased $13.2 million to $85.4 million for the three months ended June 30, 2024, from $98.6 million for the three months ended June 30, 2023. The decrease in segment income was driven by increased selling and distribution expenses and depreciation and amortization expense of $10.9 million and $4.4 million, respectively. These decreases were offset partially by decreased general and administrative expenses of $2.0 million. Gross margins were flat when compared with the same quarter in the prior year.

Balance Sheet and Liquidity

Boise Cascade ended second quarter 2024 with $922.1 million of cash and cash equivalents and $395.7 million of undrawn committed bank line availability, for total available liquidity of $1,317.8 million. The Company had $445.7 million of outstanding debt at June 30, 2024.

Capital Allocation

We expect capital expenditures in 2024, excluding potential acquisition spending, to total approximately $250 million to $270 million.

On August 1, 2024, our board of directors declared a quarterly dividend of $0.21 per share, as well as a special dividend of $5.00 per share, on our common stock. The dividends will be paid on September 16, 2024, to stockholders of record on September 3, 2024.

For the six months ended June 30, 2024, the Company paid $88.9 million for the repurchase of 677,845 shares of our common stock. Furthermore, in July 2024, the Company repurchased 90,000 shares of our common stock at a cost of $10.5 million. As of July 31, 2024, approximately 1.2 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 slightly below 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, as well as persistent elevated mortgage rates. However, with low unemployment, an undersupply of existing housing stock available for sale, and favorable demographic trends, new residential construction is expected to remain an important source of supply for homebuyers. Multi-family starts have declined sharply from historic levels due to increased capital costs for developers, combined with elevated supply. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity will continue to provide a favorable backdrop for repair-and-remodel spending. However, while home improvement spending is expected to remain healthy compared to history, renovation spending has softened due to consumer uncertainty, labor availability, higher borrowing costs, and building material inflation. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, home size, 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 second quarter earnings on Tuesday, August 6, 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

 

Six Months Ended

 

 

June 30

 

March 31, 2024

 

June 30

 

 

2024

 

2023

 

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

1,797,670

 

 

$

1,815,219

 

 

$

1,645,420

 

 

$

3,443,090

 

 

$

3,359,548

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

 

1,440,680

 

 

 

1,426,436

 

 

 

1,307,439

 

 

 

2,748,119

 

 

 

2,657,071

 

Depreciation and amortization

 

 

34,367

 

 

 

30,722

 

 

 

35,850

 

 

 

70,217

 

 

 

61,908

 

Selling and distribution expenses

 

 

149,783

 

 

 

139,205

 

 

 

144,110

 

 

 

293,893

 

 

 

267,993

 

General and administrative expenses

 

 

25,943

 

 

 

30,147

 

 

 

25,117

 

 

 

51,060

 

 

 

56,610

 

Other (income) expense, net

 

 

(84

)

 

 

(1,266

)

 

 

(78

)

 

 

(162

)

 

 

(1,611

)

 

 

 

1,650,689

 

 

 

1,625,244

 

 

 

1,512,438

 

 

 

3,163,127

 

 

 

3,041,971

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

146,981

 

 

 

189,975

 

 

 

132,982

 

 

 

279,963

 

 

 

317,577

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange gain (loss)

 

 

(104

)

 

 

320

 

 

 

(299

)

 

 

(403

)

 

 

247

 

Pension expense (excluding service costs)

 

 

(37

)

 

 

(41

)

 

 

(37

)

 

 

(74

)

 

 

(82

)

Interest expense

 

 

(6,105

)

 

 

(6,339

)

 

 

(6,070

)

 

 

(12,175

)

 

 

(12,700

)

Interest income

 

 

10,543

 

 

 

11,519

 

 

 

10,597

 

 

 

21,140

 

 

 

21,204

 

Change in fair value of interest rate swaps

 

 

(487

)

 

 

333

 

 

 

(220

)

 

 

(707

)

 

 

(471

)

 

 

 

3,810

 

 

 

5,792

 

 

 

3,971

 

 

 

7,781

 

 

 

8,198

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

150,791

 

 

 

195,767

 

 

 

136,953

 

 

 

287,744

 

 

 

325,775

 

Income tax provision

 

 

(38,499

)

 

 

(49,447

)

 

 

(32,829

)

 

 

(71,328

)

 

 

(82,722

)

Net income

 

$

112,292

 

 

$

146,320

 

 

$

104,124

 

 

$

216,416

 

 

$

243,053

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

39,412

 

 

 

39,675

 

 

 

39,608

 

 

 

39,510

 

 

 

39,634

 

Diluted

 

 

39,608

 

 

 

39,834

 

 

 

39,956

 

 

 

39,766

 

 

 

39,818

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.85

 

 

$

3.69

 

 

$

2.63

 

 

$

5.48

 

 

$

6.13

 

Diluted

 

$

2.84

 

 

$

3.67

 

 

$

2.61

 

 

$

5.44

 

 

$

6.10

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.20

 

 

$

3.15

 

 

$

0.20

 

 

$

0.40

 

 

$

3.30

 

 

Wood Products Segment Statements of Operations (in thousands, except percentages) (unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31, 2024

 

June 30

 

 

2024

 

2023

 

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

$

489,823

 

 

$

530,273

 

 

$

468,928

 

 

$

958,751

 

 

$

967,701

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

 

378,920

 

 

 

387,407

 

 

 

357,721

 

 

 

736,641

 

 

 

715,146

 

Depreciation and amortization

 

 

22,270

 

 

 

23,005

 

 

 

24,384

 

 

 

46,654

 

 

 

46,795

 

Selling and distribution expenses

 

 

11,114

 

 

 

11,437

 

 

 

10,551

 

 

 

21,665

 

 

 

23,115

 

General and administrative expenses

 

 

4,606

 

 

 

5,364

 

 

 

5,020

 

 

 

9,626

 

 

 

10,542

 

Other (income) expense, net

 

 

133

 

 

 

(975

)

 

 

14

 

 

 

147

 

 

 

(1,327

)

 

 

 

417,043

 

 

 

426,238

 

 

 

397,690

 

 

 

814,733

 

 

 

794,271

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

72,780

 

 

$

104,035

 

 

$

71,238

 

 

$

144,018

 

 

$

173,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(percentage of sales)

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

 

77.4

%

 

 

73.1

%

 

 

76.3

%

 

 

76.8

%

 

 

73.9

%

Depreciation and amortization

 

 

4.5

%

 

 

4.3

%

 

 

5.2

%

 

 

4.9

%

 

 

4.8

%

Selling and distribution expenses

 

 

2.3

%

 

 

2.2

%

 

 

2.3

%

 

 

2.3

%

 

 

2.4

%

General and administrative expenses

 

 

0.9

%

 

 

1.0

%

 

 

1.1

%

 

 

1.0

%

 

 

1.1

%

Other (income) expense, net

 

 

—

%

 

 

(0.2

%)

 

 

—

%

 

 

—

%

 

 

(0.1

%)

 

 

 

85.1

%

 

 

80.4

%

 

 

84.8

%

 

 

85.0

%

 

 

82.1

%

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

14.9

%

 

 

19.6

%

 

 

15.2

%

 

 

15.0

%

 

 

17.9

%

 

Building Materials Distribution Segment Statements of Operations (in thousands, except percentages) (unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31, 2024

 

June 30

 

 

2024

 

2023

 

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

$

1,655,221

 

 

$

1,636,538

 

 

$

1,505,021

 

 

$

3,160,242

 

 

$

3,015,780

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

 

1,409,510

 

 

 

1,391,015

 

 

 

1,278,421

 

 

 

2,687,931

 

 

 

2,566,565

 

Depreciation and amortization

 

 

11,741

 

 

 

7,386

 

 

 

11,107

 

 

 

22,848

 

 

 

14,456

 

Selling and distribution expenses

 

 

138,716

 

 

 

127,786

 

 

 

133,614

 

 

 

272,330

 

 

 

244,896

 

General and administrative expenses

 

 

10,070

 

 

 

12,089

 

 

 

9,534

 

 

 

19,604

 

 

 

22,119

 

Other (income) expense, net

 

 

(216

)

 

 

(288

)

 

 

(118

)

 

 

(334

)

 

 

(491

)

 

 

 

1,569,821

 

 

 

1,537,988

 

 

 

1,432,558

 

 

 

3,002,379

 

 

 

2,847,545

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

85,400

 

 

$

98,550

 

 

$

72,463

 

 

$

157,863

 

 

$

168,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(percentage of sales)

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

 

85.2

%

 

 

85.0

%

 

 

84.9

%

 

 

85.1

%

 

 

85.1

%

Depreciation and amortization

 

 

0.7

%

 

 

0.5

%

 

 

0.7

%

 

 

0.7

%

 

 

0.5

%

Selling and distribution expenses

 

 

8.4

%

 

 

7.8

%

 

 

8.9

%

 

 

8.6

%

 

 

8.1

%

General and administrative expenses

 

 

0.6

%

 

 

0.7

%

 

 

0.6

%

 

 

0.6

%

 

 

0.7

%

Other (income) expense, net

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

 

94.8

%

 

 

94.0

%

 

 

95.2

%

 

 

95.0

%

 

 

94.4

%

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

5.2

%

 

 

6.0

%

 

 

4.8

%

 

 

5.0

%

 

 

5.6

%

 

Segment Information (in thousands) (unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31, 2024

 

June 30

 

 

2024

 

2023

 

 

2024

 

2023

Segment sales

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

489,823

 

 

$

530,273

 

 

$

468,928

 

 

$

958,751

 

 

$

967,701

 

Building Materials Distribution

 

 

1,655,221

 

 

 

1,636,538

 

 

 

1,505,021

 

 

 

3,160,242

 

 

 

3,015,780

 

Intersegment eliminations

 

 

(347,374

)

 

 

(351,592

)

 

 

(328,529

)

 

 

(675,903

)

 

 

(623,933

)

Total net sales

 

$

1,797,670

 

 

$

1,815,219

 

 

$

1,645,420

 

 

$

3,443,090

 

 

$

3,359,548

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

72,780

 

 

$

104,035

 

 

$

71,238

 

 

$

144,018

 

 

$

173,430

 

Building Materials Distribution

 

 

85,400

 

 

 

98,550

 

 

 

72,463

 

 

 

157,863

 

 

 

168,235

 

Total segment income

 

 

158,180

 

 

 

202,585

 

 

 

143,701

 

 

 

301,881

 

 

 

341,665

 

Unallocated corporate costs

 

 

(11,199

)

 

 

(12,610

)

 

 

(10,719

)

 

 

(21,918

)

 

 

(24,088

)

Income from operations

 

$

146,981

 

 

$

189,975

 

 

$

132,982

 

 

$

279,963

 

 

$

317,577

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

95,050

 

 

$

127,040

 

 

$

95,622

 

 

$

190,672

 

 

$

220,225

 

Building Materials Distribution

 

 

97,141

 

 

 

105,936

 

 

 

83,570

 

 

 

180,711

 

 

 

182,691

 

 

See accompanying summary notes to consolidated financial statements and segment information.

 

Boise Cascade Company Consolidated Balance Sheets (in thousands) (unaudited)

 

 

June 30, 2024

 

December 31, 2023

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

Cash and cash equivalents

 

$

922,076

 

$

949,574

Receivables

 

 

 

 

Trade, less allowances of $4,520 and $3,278

 

 

459,772

 

 

352,780

Related parties

 

 

249

 

 

181

Other

 

 

17,120

 

 

20,740

Inventories

 

 

832,241

 

 

712,369

Prepaid expenses and other

 

 

36,348

 

 

21,170

Total current assets

 

 

2,267,806

 

 

2,056,814

 

 

 

 

 

Property and equipment, net

 

 

948,841

 

 

932,633

Operating lease right-of-use assets

 

 

59,812

 

 

62,868

Finance lease right-of-use assets

 

 

23,548

 

 

24,003

Timber deposits

 

 

7,675

 

 

7,208

Goodwill

 

 

170,254

 

 

170,254

Intangible assets, net

 

 

180,928

 

 

190,743

Deferred income taxes

 

 

4,655

 

 

4,854

Other assets

 

 

8,445

 

 

9,269

Total assets

 

$

3,671,964

 

$

3,458,646

 

Boise Cascade Company Consolidated Balance Sheets (continued) (in thousands, except per-share data) (unaudited)

 

 

June 30, 2024

 

December 31, 2023

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

Accounts payable

 

 

 

 

Trade

 

$

438,235

 

 

$

310,175

 

Related parties

 

 

2,146

 

 

 

1,501

 

Accrued liabilities

 

 

 

 

Compensation and benefits

 

 

96,414

 

 

 

149,561

 

Interest payable

 

 

9,956

 

 

 

9,958

 

Other

 

 

144,755

 

 

 

122,921

 

Total current liabilities

 

 

691,506

 

 

 

594,116

 

 

 

 

 

 

Debt

 

 

 

 

Long-term debt

 

 

445,723

 

 

 

445,280

 

 

 

 

 

 

Other

 

 

 

 

Compensation and benefits

 

 

39,648

 

 

 

40,189

 

Operating lease liabilities, net of current portion

 

 

53,170

 

 

 

56,425

 

Finance lease liabilities, net of current portion

 

 

27,891

 

 

 

28,084

 

Deferred income taxes

 

 

93,062

 

 

 

82,014

 

Other long-term liabilities

 

 

17,988

 

 

 

16,874

 

 

 

 

231,759

 

 

 

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, 45,130 and 44,983 shares issued, respectively

 

 

451

 

 

 

450

 

Treasury stock, 6,121 and 5,443 shares at cost, respectively

 

 

(234,879

)

 

 

(145,335

)

Additional paid-in capital

 

 

557,478

 

 

 

560,697

 

Accumulated other comprehensive loss

 

 

(502

)

 

 

(517

)

Retained earnings

 

 

1,980,428

 

 

 

1,780,369

 

Total stockholders' equity

 

 

2,302,976

 

 

 

2,195,664

 

Total liabilities and stockholders' equity

 

$

3,671,964

 

 

$

3,458,646

 

 

Boise Cascade Company Consolidated Statements of Cash Flows (in thousands) (unaudited)

 

 

Six Months Ended June 30

 

 

2024

 

2023

Cash provided by (used for) operations

 

 

 

 

Net income

 

$

216,416

 

 

$

243,053

 

Items in net income not using (providing) cash

 

 

 

 

Depreciation and amortization, including deferred financing costs and other

 

 

71,832

 

 

 

63,293

 

Stock-based compensation

 

 

7,923

 

 

 

7,518

 

Pension expense

 

 

74

 

 

 

82

 

Deferred income taxes

 

 

11,088

 

 

 

2,749

 

Change in fair value of interest rate swaps

 

 

707

 

 

 

471

 

Other

 

 

115

 

 

 

(1,798

)

Decrease (increase) in working capital, net of acquisitions

 

 

 

 

Receivables

 

 

(102,096

)

 

 

(171,794

)

Inventories

 

 

(120,976

)

 

 

(5,482

)

Prepaid expenses and other

 

 

(7,870

)

 

 

(7,805

)

Accounts payable and accrued liabilities

 

 

99,354

 

 

 

124,910

 

Income taxes payable

 

 

(6,251

)

 

 

33,220

 

Other

 

 

(1,151

)

 

 

1,801

 

Net cash provided by operations

 

 

169,165

 

 

 

290,218

 

 

 

 

 

 

Cash provided by (used for) investment

 

 

 

 

Expenditures for property and equipment

 

 

(74,099

)

 

 

(68,287

)

Acquisitions of businesses and facilities

 

 

(3,387

)

 

 

—

 

Proceeds from sales of assets and other

 

 

819

 

 

 

1,918

 

Net cash used for investment

 

 

(76,667

)

 

 

(66,369

)

 

 

 

 

 

Cash provided by (used for) financing

 

 

 

 

Treasury stock purchased

 

 

(88,858

)

 

 

(1,539

)

Dividends paid on common stock

 

 

(19,069

)

 

 

(132,967

)

Tax withholding payments on stock-based awards

 

 

(11,117

)

 

 

(5,926

)

Other

 

 

(952

)

 

 

(904

)

Net cash used for financing

 

 

(119,996

)

 

 

(141,336

)

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

(27,498

)

 

 

82,513

 

 

 

 

 

 

Balance at beginning of the period

 

 

949,574

 

 

 

998,344

 

 

 

 

 

 

Balance at end of the period

 

$

922,076

 

 

$

1,080,857

 

 

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 (i) three months ended June 30, 2024 and 2023, (ii) three months ended March 31, 2024, and (iii) six months ended June 30, 2024 and 2023:

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31, 2024

 

June 30

 

 

2024

 

2023

 

 

2024

 

2023

 

 

(in thousands)

Net income

 

$

112,292

 

 

$

146,320

 

 

$

104,124

 

 

$

216,416

 

 

$

243,053

 

Interest expense

 

 

6,105

 

 

 

6,339

 

 

 

6,070

 

 

 

12,175

 

 

 

12,700

 

Interest income

 

 

(10,543

)

 

 

(11,519

)

 

 

(10,597

)

 

 

(21,140

)

 

 

(21,204

)

Income tax provision

 

 

38,499

 

 

 

49,447

 

 

 

32,829

 

 

 

71,328

 

 

 

82,722

 

Depreciation and amortization

 

 

34,367

 

 

 

30,722

 

 

 

35,850

 

 

 

70,217

 

 

 

61,908

 

EBITDA

 

 

180,720

 

 

 

221,309

 

 

 

168,276

 

 

 

348,996

 

 

 

379,179

 

Change in fair value of interest rate swaps

 

 

487

 

 

 

(333

)

 

 

220

 

 

 

707

 

 

 

471

 

Adjusted EBITDA

 

$

181,207

 

 

$

220,976

 

 

$

168,496

 

 

$

349,703

 

 

$

379,650

 

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended June 30, 2024 and 2023, (ii) three months ended March 31, 2024, and (iii) six months ended June 30, 2024 and 2023:

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31, 2024

 

June 30

 

 

2024

 

2023

 

 

2024

 

2023

 

 

(in thousands)

Wood Products

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

72,780

 

 

$

104,035

 

 

$

71,238

 

 

$

144,018

 

 

$

173,430

 

Depreciation and amortization

 

 

22,270

 

 

 

23,005

 

 

 

24,384

 

 

 

46,654

 

 

 

46,795

 

EBITDA

 

$

95,050

 

 

$

127,040

 

 

$

95,622

 

 

$

190,672

 

 

$

220,225

 

 

 

 

 

 

 

 

 

 

 

 

Building Materials Distribution

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

85,400

 

 

$

98,550

 

 

$

72,463

 

 

$

157,863

 

 

$

168,235

 

Depreciation and amortization

 

 

11,741

 

 

 

7,386

 

 

 

11,107

 

 

 

22,848

 

 

 

14,456

 

EBITDA

 

$

97,141

 

 

$

105,936

 

 

$

83,570

 

 

$

180,711

 

 

$

182,691

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

Unallocated corporate costs

 

$

(11,199

)

 

$

(12,610

)

 

$

(10,719

)

 

$

(21,918

)

 

$

(24,088

)

Foreign currency exchange gain (loss)

 

 

(104

)

 

 

320

 

 

 

(299

)

 

 

(403

)

 

 

247

 

Pension expense (excluding service costs)

 

 

(37

)

 

 

(41

)

 

 

(37

)

 

 

(74

)

 

 

(82

)

Change in fair value of interest rate swaps

 

 

(487

)

 

 

333

 

 

 

(220

)

 

 

(707

)

 

 

(471

)

Depreciation and amortization

 

 

356

 

 

 

331

 

 

 

359

 

 

 

715

 

 

 

657

 

EBITDA

 

 

(11,471

)

 

 

(11,667

)

 

 

(10,916

)

 

 

(22,387

)

 

 

(23,737

)

Change in fair value of interest rate swaps

 

 

487

 

 

 

(333

)

 

 

220

 

 

 

707

 

 

 

471

 

Corporate adjusted EBITDA

 

$

(10,984

)

 

$

(12,000

)

 

$

(10,696

)

 

$

(21,680

)

 

$

(23,266

)

 

 

 

 

 

 

 

 

 

 

 

Total Company adjusted EBITDA

 

$

181,207

 

 

$

220,976

 

 

$

168,496

 

 

$

349,703

 

 

$

379,650

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805203074/en/

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Media Contact - Amy Evans mediarelations@bc.com