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Boise Cascade Company Reports Second Quarter 2023 Results

Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported 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, compared with net income of $218.1 million, or $5.49 per share, on sales of $2.3 billion for the second quarter ended June 30, 2022.

"Both businesses again delivered solid financial performance during the second quarter as we continued to execute our integrated business model in support of our customer and supplier partners. Our associates' consistent focus, grit, and hard work remain key to driving our operating and financial results," stated Nate Jorgensen, CEO. "As we close out the first half of 2023, we are encouraged by the resiliency of market demand despite ongoing economic uncertainties, and our long-term view of the strength of residential construction remains. The focus on working capital performance is a priority as the channel looks to manage inventory risk and reward, and we are uniquely positioned on a national scale to deliver the service levels in support of those efforts. Lastly, our balance sheet remains well positioned for continued investment in our associates, key strategies and growth initiatives in our distribution and EWP businesses, and further shareholder returns."

Second Quarter 2023 Highlights

 

 

2Q 2023

 

2Q 2022

 

% change

 

 

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

Consolidated Results

 

 

 

 

 

 

Sales

 

$

1,815,219

 

$

2,278,072

 

(20)%

Net income

 

 

146,320

 

 

218,111

 

(33)%

Net income per common share - diluted

 

 

3.67

 

 

5.49

 

(33)%

Adjusted EBITDA 1

 

 

220,976

 

 

317,229

 

(30)%

Segment Results

 

 

 

 

 

 

Wood Products sales

 

$

530,273

 

$

536,030

 

(1)%

Wood Products income

 

 

104,035

 

 

154,101

 

(32)%

Wood Products EBITDA 1

 

 

127,040

 

 

167,754

 

(24)%

Building Materials Distribution sales

 

 

1,636,538

 

 

2,131,200

 

(23)%

Building Materials Distribution income

 

 

98,550

 

 

154,308

 

(36)%

Building Materials Distribution EBITDA 1

 

 

105,936

 

 

161,036

 

(34)%

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

In second quarter 2023, total U.S. housing starts and single-family housing starts decreased 11% and 14%, respectively, compared to the same period in 2022. On a year-to-date basis through June 2023, total housing starts decreased 15%, driven by a decrease in single-family housing starts of 21% compared to the same period in 2022. 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 $5.7 million, or 1%, to $530.3 million for the three months ended June 30, 2023, from $536.0 million for the three months ended June 30, 2022. The decrease in sales was driven by lower plywood sales prices and lower I-joists sales volumes. These decreases were offset partially by higher plywood sales volumes, higher sales prices for LVL and I-joists (collectively referred to as EWP), and higher LVL sales volumes.

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

 

 

2Q 2023 vs. 2Q 2022

 

2Q 2023 vs. 1Q 2023

 

 

 

 

 

Average Net Selling Prices

 

 

 

 

LVL

 

6%

 

(3)%

I-joists

 

1%

 

(4)%

Plywood

 

(36)%

 

(1)%

Sales Volumes

 

 

 

 

LVL

 

2%

 

29%

I-joists

 

(9)%

 

63%

Plywood

 

57%

 

8%

Wood Products' segment income decreased $50.1 million to $104.0 million for the three months ended June 30, 2023, from $154.1 million for the three months ended June 30, 2022. The decrease in segment income was due primarily to lower plywood sales prices. In addition, segment income was negatively impacted by an increase in depreciation and amortization expense due to the acquisition of two plywood facilities on July 25, 2022. These decreases in segment income were offset partially by higher plywood sales volumes, higher EWP sales prices, as well as lower wood fiber costs.

Building Materials Distribution

BMD's sales decreased $494.7 million, or 23%, to $1,636.5 million for the three months ended June 30, 2023, from $2,131.2 million for the three months ended June 30, 2022. Compared with the same quarter in the prior year, the overall decrease in sales was driven by sales price and sales volume decreases of 22% and 1%, respectively. By product line, commodity sales decreased 36%, general line product sales decreased 8%, and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased 21%.

BMD segment income decreased $55.7 million to $98.6 million for the three months ended June 30, 2023, from $154.3 million in the comparative prior year quarter. The decline in segment income was driven by a gross margin decrease of $49.8 million, resulting from lower margins on EWP and general line products, offset partially by margin improvements on commodity products. In addition, selling and distribution expenses increased $3.9 million.

Balance Sheet and Liquidity

Boise Cascade ended second quarter 2023 with $1,080.9 million of cash and cash equivalents and $395.9 million of undrawn committed bank line availability, for total available liquidity of $1,476.8 million. The Company had $444.8 million of outstanding debt at June 30, 2023.

We expect capital expenditures in 2023 to total approximately $120 million to $140 million. Our 2023 capital expenditures range includes funding for greenfield distribution centers in South Carolina and Texas, projects at our mills in the southeast to expand our EWP capacity, and the purchase of property to house an additional door shop assembly operation in Kansas City, Missouri. This level of capital expenditures could increase or decrease as a result of several factors, including acquisitions, efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

Dividends

On July 27, 2023, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on September 15, 2023, to stockholders of record on September 1, 2023.

Future dividend declarations, including amount per share, record date and payment date, will be made at the discretion of our board of directors and will depend upon, among other things, legal capital requirements and surplus, our future operations and earnings, general financial condition, material cash requirements, restrictions imposed by our asset-based credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant.

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. U.S. housing starts in June 2023 were approximately 1.4 million on a seasonally adjusted annual rate basis, as reported by the U.S. Census Bureau. However, home affordability remains a challenge for consumers, and the Federal Reserve's ongoing actions in response to inflationary data and what impacts these actions have on future mortgage rates and the broader economy will influence the near-term demand environment. As such, the outlook for the back half of 2023 remains uncertain and is reflected in various industry forecasts for 2023 U.S. housing starts that generally range from 1.3 million to 1.4 million units, compared with actual housing starts of 1.55 million in 2022, as reported by the U.S. Census Bureau. 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. However, industry forecasts project continued moderation of year-over-year growth in renovation spending, and economic uncertainty may also negatively impact homeowners' further investment in their residences.

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 commodity 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 commodity product pricing and commodity input costs may be volatile in response to economic uncertainties, industry operating rates, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. In addition, EWP volumes will continue to be influenced by demand for new residential construction, particularly single-family housing starts, and we expect modest EWP price erosion in the third quarter.

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 1, 2023, 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 (loss) 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 (loss), income (loss) 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 (loss) or segment income (loss) 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, 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,

2023

 

June 30

 

 

2023

 

2022

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

1,815,219

 

 

$

2,278,072

 

 

$

1,544,329

 

 

$

3,359,548

 

 

$

4,604,354

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

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

 

 

1,426,436

 

 

 

1,797,948

 

 

 

1,230,635

 

 

 

2,657,071

 

 

 

3,527,844

 

Depreciation and amortization

 

 

30,722

 

 

 

20,694

 

 

 

31,186

 

 

 

61,908

 

 

 

41,237

 

Selling and distribution expenses

 

 

139,205

 

 

 

134,279

 

 

 

128,788

 

 

 

267,993

 

 

 

280,930

 

General and administrative expenses

 

 

30,147

 

 

 

27,701

 

 

 

26,463

 

 

 

56,610

 

 

 

53,753

 

Other (income) expense, net

 

 

(1,266

)

 

 

375

 

 

 

(345

)

 

 

(1,611

)

 

 

(2,113

)

 

 

 

1,625,244

 

 

 

1,980,997

 

 

 

1,416,727

 

 

 

3,041,971

 

 

 

3,901,651

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

189,975

 

 

 

297,075

 

 

 

127,602

 

 

 

317,577

 

 

 

702,703

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange gain (loss)

 

 

320

 

 

 

(499

)

 

 

(73

)

 

 

247

 

 

 

(367

)

Pension expense (excluding service costs)

 

 

(41

)

 

 

(41

)

 

 

(41

)

 

 

(82

)

 

 

(212

)

Interest expense

 

 

(6,339

)

 

 

(6,317

)

 

 

(6,361

)

 

 

(12,700

)

 

 

(12,571

)

Interest income

 

 

11,519

 

 

 

1,385

 

 

 

9,685

 

 

 

21,204

 

 

 

1,450

 

Change in fair value of interest rate swaps

 

 

333

 

 

 

394

 

 

 

(804

)

 

 

(471

)

 

 

2,460

 

 

 

 

5,792

 

 

 

(5,078

)

 

 

2,406

 

 

 

8,198

 

 

 

(9,240

)

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

195,767

 

 

 

291,997

 

 

 

130,008

 

 

 

325,775

 

 

 

693,463

 

Income tax provision

 

 

(49,447

)

 

 

(73,886

)

 

 

(33,275

)

 

 

(82,722

)

 

 

(172,752

)

Net income

 

$

146,320

 

 

$

218,111

 

 

$

96,733

 

 

$

243,053

 

 

$

520,711

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

39,675

 

 

 

39,544

 

 

 

39,593

 

 

 

39,634

 

 

 

39,509

 

Diluted

 

 

39,834

 

 

 

39,763

 

 

 

39,838

 

 

 

39,818

 

 

 

39,762

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

3.69

 

 

$

5.52

 

 

$

2.44

 

 

$

6.13

 

 

$

13.18

 

Diluted

 

$

3.67

 

 

$

5.49

 

 

$

2.43

 

 

$

6.10

 

 

$

13.10

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

3.15

 

 

$

2.62

 

 

$

0.15

 

 

$

3.30

 

 

$

2.74

 

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

   

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31,

2023

 

June 30

 

 

2023

 

2022

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

$

530,273

 

 

$

536,030

 

 

$

437,428

 

 

$

967,701

 

 

$

1,094,974

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

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

 

 

387,407

 

 

 

351,557

 

 

 

327,739

 

 

 

715,146

 

 

 

695,266

 

Depreciation and amortization

 

 

23,005

 

 

 

13,653

 

 

 

23,790

 

 

 

46,795

 

 

 

27,293

 

Selling and distribution expenses

 

 

11,437

 

 

 

10,349

 

 

 

11,678

 

 

 

23,115

 

 

 

19,579

 

General and administrative expenses

 

 

5,364

 

 

 

5,826

 

 

 

5,178

 

 

 

10,542

 

 

 

10,472

 

Other (income) expense, net

 

 

(975

)

 

 

544

 

 

 

(352

)

 

 

(1,327

)

 

 

(1,853

)

 

 

 

426,238

 

 

 

381,929

 

 

 

368,033

 

 

 

794,271

 

 

 

750,757

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

104,035

 

 

$

154,101

 

 

$

69,395

 

 

$

173,430

 

 

$

344,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

73.1

%

 

 

65.6

%

 

 

74.9

%

 

 

73.9

%

 

 

63.5

%

Depreciation and amortization

 

 

4.3

%

 

 

2.5

%

 

 

5.4

%

 

 

4.8

%

 

 

2.5

%

Selling and distribution expenses

 

 

2.2

%

 

 

1.9

%

 

 

2.7

%

 

 

2.4

%

 

 

1.8

%

General and administrative expenses

 

 

1.0

%

 

 

1.1

%

 

 

1.2

%

 

 

1.1

%

 

 

1.0

%

Other (income) expense, net

 

 

(0.2

%)

 

 

0.1

%

 

 

(0.1

)%

 

 

(0.1

%)

 

 

(0.2

%)

 

 

 

80.4

%

 

 

71.3

%

 

 

84.1

%

 

 

82.1

%

 

 

68.6

%

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

19.6

%

 

 

28.7

%

 

 

15.9

%

 

 

17.9

%

 

 

31.4

%

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31,

2023

 

June 30

 

 

2023

 

2022

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

$

1,636,538

 

 

$

2,131,200

 

 

$

1,379,242

 

 

$

3,015,780

 

 

$

4,243,033

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

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

 

 

1,391,015

 

 

 

1,835,845

 

 

 

1,175,550

 

 

 

2,566,565

 

 

 

3,566,648

 

Depreciation and amortization

 

 

7,386

 

 

 

6,728

 

 

 

7,070

 

 

 

14,456

 

 

 

13,304

 

Selling and distribution expenses

 

 

127,786

 

 

 

123,930

 

 

 

117,110

 

 

 

244,896

 

 

 

261,351

 

General and administrative expenses

 

 

12,089

 

 

 

10,558

 

 

 

10,030

 

 

 

22,119

 

 

 

21,784

 

Other (income) expense, net

 

 

(288

)

 

 

(169

)

 

 

(203

)

 

 

(491

)

 

 

(254

)

 

 

 

1,537,988

 

 

 

1,976,892

 

 

 

1,309,557

 

 

 

2,847,545

 

 

 

3,862,833

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

98,550

 

 

$

154,308

 

 

$

69,685

 

 

$

168,235

 

 

$

380,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

85.0

%

 

 

86.1

%

 

 

85.2

%

 

 

85.1

%

 

 

84.1

%

Depreciation and amortization

 

 

0.5

%

 

 

0.3

%

 

 

0.5

%

 

 

0.5

%

 

 

0.3

%

Selling and distribution expenses

 

 

7.8

%

 

 

5.8

%

 

 

8.5

%

 

 

8.1

%

 

 

6.2

%

General and administrative expenses

 

 

0.7

%

 

 

0.5

%

 

 

0.7

%

 

 

0.7

%

 

 

0.5

%

Other (income) expense, net

 

 

%

 

 

%

 

 

%

 

 

%

 

 

%

 

 

 

94.0

%

 

 

92.8

%

 

 

94.9

%

 

 

94.4

%

 

 

91.0

%

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

6.0

%

 

 

7.2

%

 

 

5.1

%

 

 

5.6

%

 

 

9.0

%

Segment Information

(in thousands) (unaudited)

   

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31,

2023

 

June 30

 

 

2023

 

2022

 

 

2023

 

2022

Segment sales

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

530,273

 

 

$

536,030

 

 

$

437,428

 

 

$

967,701

 

 

$

1,094,974

 

Building Materials Distribution

 

 

1,636,538

 

 

 

2,131,200

 

 

 

1,379,242

 

 

 

3,015,780

 

 

 

4,243,033

 

Intersegment eliminations

 

 

(351,592

)

 

 

(389,158

)

 

 

(272,341

)

 

 

(623,933

)

 

 

(733,653

)

Total net sales

 

$

1,815,219

 

 

$

2,278,072

 

 

$

1,544,329

 

 

$

3,359,548

 

 

$

4,604,354

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

104,035

 

 

$

154,101

 

 

$

69,395

 

 

$

173,430

 

 

$

344,217

 

Building Materials Distribution

 

 

98,550

 

 

 

154,308

 

 

 

69,685

 

 

 

168,235

 

 

 

380,200

 

Total segment income

 

 

202,585

 

 

 

308,409

 

 

 

139,080

 

 

 

341,665

 

 

 

724,417

 

Unallocated corporate costs

 

 

(12,610

)

 

 

(11,334

)

 

 

(11,478

)

 

 

(24,088

)

 

 

(21,714

)

Income from operations

 

$

189,975

 

 

$

297,075

 

 

$

127,602

 

 

$

317,577

 

 

$

702,703

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

127,040

 

 

$

167,754

 

 

$

93,185

 

 

$

220,225

 

 

$

371,510

 

Building Materials Distribution

 

 

105,936

 

 

 

161,036

 

 

 

76,755

 

 

 

182,691

 

 

 

393,504

 

 

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

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

   

 

 

June 30, 2023

 

December 31, 2022

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

Cash and cash equivalents

 

$

1,080,857

 

$

998,344

Receivables

 

 

 

 

Trade, less allowances of $3,212 and $3,264

 

 

478,655

 

 

297,237

Related parties

 

 

174

 

 

19

Other

 

 

13,244

 

 

23,023

Inventories

 

 

703,033

 

 

697,551

Prepaid expenses and other

 

 

22,682

 

 

47,878

Total current assets

 

 

2,298,645

 

 

2,064,052

 

 

 

 

 

Property and equipment, net

 

 

784,562

 

 

770,023

Operating lease right-of-use assets

 

 

53,270

 

 

55,582

Finance lease right-of-use assets

 

 

25,264

 

 

26,501

Timber deposits

 

 

7,613

 

 

7,519

Goodwill

 

 

137,958

 

 

137,958

Intangible assets, net

 

 

152,834

 

 

161,433

Deferred income taxes

 

 

5,977

 

 

6,116

Other assets

 

 

10,265

 

 

11,330

Total assets

 

$

3,476,388

 

$

3,240,514

Boise Cascade Company

Consolidated Balance Sheets (continued)

(in thousands, except per-share data) (unaudited)

   

 

 

June 30, 2023

 

December 31, 2022

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

Accounts payable

 

 

 

 

Trade

 

$

415,387

 

 

$

269,785

 

Related parties

 

 

1,596

 

 

 

1,019

 

Accrued liabilities

 

 

 

 

Compensation and benefits

 

 

106,980

 

 

 

142,463

 

Interest payable

 

 

9,961

 

 

 

9,955

 

Other

 

 

133,420

 

 

 

122,606

 

Total current liabilities

 

 

667,344

 

 

 

545,828

 

 

 

 

 

 

Debt

 

 

 

 

Long-term debt

 

 

444,836

 

 

 

444,392

 

 

 

 

 

 

Other

 

 

 

 

Compensation and benefits

 

 

35,731

 

 

 

33,226

 

Operating lease liabilities, net of current portion

 

 

46,784

 

 

 

48,668

 

Finance lease liabilities, net of current portion

 

 

29,073

 

 

 

30,022

 

Deferred income taxes

 

 

65,944

 

 

 

63,454

 

Other long-term liabilities

 

 

18,152

 

 

 

16,949

 

 

 

 

195,684

 

 

 

192,319

 

 

 

 

 

 

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, 44,983 and 44,827 shares issued, respectively

 

 

450

 

 

 

448

 

Treasury stock, 5,393 and 5,367 shares at cost, respectively

 

 

(140,448

)

 

 

(138,909

)

Additional paid-in capital

 

 

552,805

 

 

 

551,215

 

Accumulated other comprehensive loss

 

 

(507

)

 

 

(520

)

Retained earnings

 

 

1,756,224

 

 

 

1,645,741

 

Total stockholders' equity

 

 

2,168,524

 

 

 

2,057,975

 

Total liabilities and stockholders' equity

 

$

3,476,388

 

 

$

3,240,514

 

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

   

 

 

Six Months Ended June 30

 

 

2023

 

2022

Cash provided by (used for) operations

 

 

 

 

Net income

 

$

243,053

 

 

$

520,711

 

Items in net income not using (providing) cash

 

 

 

 

Depreciation and amortization, including deferred financing costs and other

 

 

63,293

 

 

 

42,240

 

Stock-based compensation

 

 

7,518

 

 

 

5,403

 

Pension expense

 

 

82

 

 

 

212

 

Deferred income taxes

 

 

2,749

 

 

 

19,287

 

Change in fair value of interest rate swaps

 

 

471

 

 

 

(2,460

)

Other

 

 

(1,798

)

 

 

(1,987

)

Decrease (increase) in working capital

 

 

 

 

Receivables

 

 

(171,794

)

 

 

(129,993

)

Inventories

 

 

(5,482

)

 

 

(142,936

)

Prepaid expenses and other

 

 

(7,805

)

 

 

(7,602

)

Accounts payable and accrued liabilities

 

 

124,910

 

 

 

127,935

 

Pension contributions

 

 

(268

)

 

 

(794

)

Income taxes payable

 

 

33,220

 

 

 

4,507

 

Other

 

 

2,069

 

 

 

1,533

 

Net cash provided by operations

 

 

290,218

 

 

 

436,056

 

 

 

 

 

 

Cash provided by (used for) investment

 

 

 

 

Expenditures for property and equipment

 

 

(68,287

)

 

 

(40,808

)

Proceeds from sales of assets and other

 

 

1,918

 

 

 

2,864

 

Net cash used for investment

 

 

(66,369

)

 

 

(37,944

)

 

 

 

 

 

Cash provided by (used for) financing

 

 

 

 

Dividends paid on common stock

 

 

(132,967

)

 

 

(109,291

)

Tax withholding payments on stock-based awards

 

 

(5,926

)

 

 

(3,930

)

Treasury stock purchased

 

 

(1,539

)

 

 

 

Other

 

 

(904

)

 

 

(811

)

Net cash used for financing

 

 

(141,336

)

 

 

(114,032

)

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

82,513

 

 

 

284,080

 

 

 

 

 

 

Balance at beginning of the period

 

 

998,344

 

 

 

748,907

 

 

 

 

 

 

Balance at end of the period

 

$

1,080,857

 

 

$

1,032,987

 

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 2022 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 (i) the three months ended June 30, 2023 and 2022, (ii) the three months ended March 31, 2023, and (iii) the six months ended June 30, 2023 and 2022:

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31,

2023

 

June 30

 

 

2023

 

2022

 

 

2023

 

2022

 

 

(in thousands)

Net income

 

$

146,320

 

 

$

218,111

 

 

$

96,733

 

 

$

243,053

 

 

$

520,711

 

Interest expense

 

 

6,339

 

 

 

6,317

 

 

 

6,361

 

 

 

12,700

 

 

 

12,571

 

Interest income

 

 

(11,519

)

 

 

(1,385

)

 

 

(9,685

)

 

 

(21,204

)

 

 

(1,450

)

Income tax provision

 

 

49,447

 

 

 

73,886

 

 

 

33,275

 

 

 

82,722

 

 

 

172,752

 

Depreciation and amortization

 

 

30,722

 

 

 

20,694

 

 

 

31,186

 

 

 

61,908

 

 

 

41,237

 

EBITDA

 

 

221,309

 

 

 

317,623

 

 

 

157,870

 

 

 

379,179

 

 

 

745,821

 

Change in fair value of interest rate swaps

 

 

(333

)

 

 

(394

)

 

 

804

 

 

 

471

 

 

 

(2,460

)

Adjusted EBITDA

 

$

220,976

 

 

$

317,229

 

 

$

158,674

 

 

$

379,650

 

 

$

743,361

 

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended June 30, 2023 and 2022, (ii) three months ended March 31, 2023, and (iii) six months ended June 30, 2023 and 2022:

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

March 31,

2023

 

June 30

 

 

2023

 

2022

 

 

2023

 

2022

 

 

(in thousands)

Wood Products

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

104,035

 

 

$

154,101

 

 

$

69,395

 

 

$

173,430

 

 

$

344,217

 

Depreciation and amortization

 

 

23,005

 

 

 

13,653

 

 

 

23,790

 

 

 

46,795

 

 

 

27,293

 

EBITDA

 

$

127,040

 

 

$

167,754

 

 

$

93,185

 

 

$

220,225

 

 

$

371,510

 

 

 

 

 

 

 

 

 

 

 

 

Building Materials Distribution

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

98,550

 

 

$

154,308

 

 

$

69,685

 

 

$

168,235

 

 

$

380,200

 

Depreciation and amortization

 

 

7,386

 

 

 

6,728

 

 

 

7,070

 

 

 

14,456

 

 

 

13,304

 

EBITDA

 

$

105,936

 

 

$

161,036

 

 

$

76,755

 

 

$

182,691

 

 

$

393,504

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

Unallocated corporate costs

 

$

(12,610

)

 

$

(11,334

)

 

$

(11,478

)

 

$

(24,088

)

 

$

(21,714

)

Foreign currency exchange gain (loss)

 

 

320

 

 

 

(499

)

 

 

(73

)

 

 

247

 

 

 

(367

)

Pension expense (excluding service costs)

 

 

(41

)

 

 

(41

)

 

 

(41

)

 

 

(82

)

 

 

(212

)

Change in fair value of interest rate swaps

 

 

333

 

 

 

394

 

 

 

(804

)

 

 

(471

)

 

 

2,460

 

Depreciation and amortization

 

 

331

 

 

 

313

 

 

 

326

 

 

 

657

 

 

 

640

 

EBITDA

 

 

(11,667

)

 

 

(11,167

)

 

 

(12,070

)

 

 

(23,737

)

 

 

(19,193

)

Change in fair value of interest rate swaps

 

 

(333

)

 

 

(394

)

 

 

804

 

 

 

471

 

 

 

(2,460

)

Corporate adjusted EBITDA

 

$

(12,000

)

 

$

(11,561

)

 

$

(11,266

)

 

$

(23,266

)

 

$

(21,653

)

 

 

 

 

 

 

 

 

 

 

 

Total Company adjusted EBITDA

 

$

220,976

 

 

$

317,229

 

 

$

158,674

 

 

$

379,650

 

 

$

743,361

 

Contacts

Investor Relations Contact - Kelly Hibbs

208 384 3638

Media Contact - Lisa Tschampl

208 384 6552

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