Boise Cascade Company Reports Fourth Quarter and Full Year 2022 Results

Rhea-AI Summary

Boise Cascade Company (NYSE: BCC) reported a fourth quarter net income of $117.4 million ($2.95 per share) on sales of $1.6 billion, reflecting a 31% decrease in net income year-over-year. For the full year 2022, net income was $857.7 million ($21.56 per share) on sales of $8.4 billion, a 20% increase from 2021. The company faced challenges with a 15% decline in U.S. housing starts, impacting demand for its products. Despite these pressures, Boise Cascade is focused on expanding its distribution capabilities and maintaining a strong balance sheet with $998.3 million in cash and cash equivalents. A quarterly dividend of $0.15 per share was declared, payable March 15, 2023.

Positive

• Net income for 2022 increased 20% to $857.7 million.
• Sales for 2022 rose 6% to $8.4 billion compared to 2021.
• Strong liquidity with $998.3 million in cash and $396.2 million undrawn bank line.
• Declared a quarterly dividend of $0.15, demonstrating financial stability.

Negative

• Q4 2022 net income decreased 31% from Q4 2021.
• Sales in Q4 2022 declined by 9% year-over-year.
• 15% drop in U.S. housing starts negatively impacted sales.
• Increased wood fiber and manufacturing costs affected profit margins.

BOISE, Idaho--(BUSINESS WIRE)-- Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported fourth quarter net income of $117.4 million, or $2.95 per share, on sales of $1.6 billion. For the full year 2022, Boise Cascade reported net income of $857.7 million, or $21.56 per share, on sales of $8.4 billion. For 2021 comparative results, see the table below.

"As we close out 2022, I first want to recognize our associates for their tireless work, as they made our outstanding results possible. In addition to our financial results, we had strong performance in safety during a challenging period. I am also very pleased that we were able to take meaningful steps via acquisition and organic initiatives that will allow us to expand our EWP capacity and further grow our distribution capabilities," stated Nate Jorgensen, CEO. "Our balance sheet remains well positioned for us to execute the growth initiatives started during 2022. In addition, we have the flexibility to further demonstrate our balanced approach to capital allocation, including the ability to pursue additional growth initiatives that align with our strategy. We recognize the industry will face challenges during 2023 given current economic uncertainties and weaker near-term demand for new residential construction; however, we remain committed to providing high service levels to our vendor and customer partners through industry cycles."

Fourth Quarter and Year End 2022 Highlights

		4Q 2022			4Q 2021			% change		2022			2021			% change
		(in thousands, except per-share data and percentages)
Consolidated Results
Sales		$	1,628,306		$	1,782,183		(9)%		$	8,387,307		$	7,926,111		6 %
Net income			117,360			169,075		(31)%			857,658			712,486		20 %
Net income per common share - diluted			2.95			4.26		(31)%			21.56			17.97		20 %
Adjusted EBITDA 1			188,174			247,899		(24)%			1,257,564			1,052,470		19 %
Segment Results
Wood Products sales		$	425,602		$	446,584		(5)%		$	2,115,896		$	1,970,804		7 %
Wood Products income			74,978			98,366		(24)%			575,167			531,235		8 %
Wood Products EBITDA 1			99,708			112,227		(11)%			648,475			586,484		11 %
Building Materials Distribution sales			1,443,780			1,645,513		(12)%			7,643,615			7,174,278		7 %
Building Materials Distribution income			92,455			137,963		(33)%			627,091			481,085		30 %
Building Materials Distribution EBITDA 1			99,396			144,221		(31)%			654,096			505,092		30 %
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.

In fourth quarter 2022, total U.S. housing starts decreased 15%, driven by a decrease in single-family housing starts of 27% compared to the same period in 2021. For the full year 2022, total and single-family housing starts decreased 3% and 11%, respectively, compared to the same period in 2021. 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 $21.0 million, or 5%, to $425.6 million for the three months ended December 31, 2022, from $446.6 million for the three months ended December 31, 2021. The decrease in sales was driven primarily by lower sales volumes for I-joists and LVL (collectively referred to as EWP). EWP volumes decreased due to a decline in housing starts and significant inventory destocking through the customer channel. These decreases were offset partially by higher EWP sales prices and higher plywood sales volumes. The increase in plywood sales volumes was due to our acquisition of Coastal Plywood and its plywood manufacturing operations on July 25, 2022 (the Acquisition). Wood Products' segment income decreased $23.4 million to $75.0 million for the three months ended December 31, 2022, from $98.4 million for the three months ended December 31, 2021. The decrease in segment income was due primarily to lower EWP sales volumes and higher wood fiber costs and other manufacturing costs. In addition, the Acquisition was the primary driver of the increase in depreciation and amortization expense. These decreases in segment income were offset partially by higher EWP sales prices.

For the year ended December 31, 2022, sales, including sales to BMD, increased $145.1 million, or 7%, to $2,115.9 million from $1,970.8 million in 2021. The increase in sales was driven by higher EWP sales prices and higher plywood sales volumes. Plywood sales volumes increased due to the Acquisition. These increases were offset partially by lower plywood sales prices and EWP sales volumes. EWP volumes decreased due to a decline in housing starts and significant inventory destocking through the customer channel. Wood Products' segment income increased $44.0 million to $575.2 million for the year ended December 31, 2022, from $531.2 million for the year ended December 31, 2021. The increase in segment income was due primarily to higher EWP sales prices. This increase in segment income was offset partially by lower plywood sales prices, lower EWP sales volumes, and higher wood fiber costs and other manufacturing costs. In addition, the Acquisition was the primary driver of the increase in depreciation and amortization and general and administrative expenses during 2022.

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

		4Q 2022 vs. 4Q 2021		2022 vs. 2021
Average Net Selling Prices
LVL		32%		41%
I-joists		40%		44%
Plywood		(1)%		(14)%
Sales Volumes
LVL		(30)%		(3)%
I-joists		(55)%		(21)%
Plywood		29%		5%

Building Materials Distribution

BMD's sales decreased $201.7 million, or 12%, to $1,443.8 million for the three months ended December 31, 2022, from $1,645.5 million for the three months ended December 31, 2021. Compared with the same quarter in the prior year, the overall decrease in sales was driven by a sales volume decrease of 14%, offset partially by sales price increases of 2%. By product line, commodity sales decreased 17%, general line product sales decreased 2%, and sales of EWP (substantially all of which are sourced through our Wood Products segment) decreased 19%. BMD segment income decreased $45.5 million to $92.5 million for the three months ended December 31, 2022, from $138.0 million in the comparative prior year quarter. The decrease in segment income was driven primarily by a gross margin decrease of $39.7 million, resulting from decreased sales volumes and declining commodity prices during fourth quarter 2022. In addition, selling and distribution expenses increased $3.6 million.

For the year ended December 31, 2022, sales increased $469.3 million, or 7%, to $7,643.6 million from $7,174.3 million in 2021. The increase in sales was driven by sales price increases of 11%, offset partially by a sales volume decrease of 4%. By product line, commodity sales decreased 7%, general line product sales increased 17%, and sales of EWP increased 28%. BMD segment income increased $146.0 million to $627.1 million for the year ended December 31, 2022, from $481.1 million for the year ended December 31, 2021. The increase in segment income was driven by a gross margin increase of $215.5 million, primarily related to improved margins across our EWP and general line products. The improvement was offset partially by increased selling and distribution expenses and general and administrative expenses of $56.8 million and $7.8 million, respectively.

Unallocated Corporate Costs

Unallocated corporate expenses increased $3.9 million to $44.4 million for the year ended December 31, 2022, from $40.5 million for the year ended December 31, 2021. The increase was due primarily to higher employee-related expenses, offset partially by lower self-insurance losses during 2022.

Balance Sheet and Liquidity

Boise Cascade ended fourth quarter 2022 with $998.3 million of cash and cash equivalents and $396.2 million of undrawn committed bank line availability, for total available liquidity of $1,394.5 million. The Company had $444.4 million of outstanding debt at December 31, 2022.

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, which will allow us to better serve our customers in several high-growth markets, projects at our mills in the southeast to expand our EWP capacity, and the recently announced 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 February 7, 2023, our board of directors declared a quarterly dividend of $0.15 per share on our common stock, payable on March 15, 2023, to stockholders of record on February 22, 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. While mortgage rates have declined from peak levels in late 2022 and home price increases have moderated, home affordability remains a challenge for consumers. The Federal Reserve's upcoming actions in response to inflationary data and what impacts these actions have on mortgage rates and the broader economy will continue to influence the near-term demand environment. We expect a deceleration in housing starts, with various industry forecasts for 2023 single- and multi-family housing starts in the U.S generally ranging from 1.1 million to 1.3 million units, compared with actual housing starts of 1.55 million in 2022 and 1.60 million in 2021, as reported by the U.S. Census Bureau. As it relates to home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity provide a favorable backdrop for repair-and-remodel spending. While likely tempered by an economic slowdown, we anticipate the primary drivers of repair-and-remodeling activity to continue to be supportive of 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. We expect future commodity product pricing and commodity input costs to 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, we have experienced price erosion and reduced volumes on our EWP products due to slowing economic activity and decreased demand for new residential construction. As such, we have and will continue to manage our production levels to meet current and expected sales demand, which will result in operating some of our facilities below their capacity until demand improves.

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 fourth quarter and full year earnings on Wednesday, February 22, 2023, at 11 a.m. Eastern.

To join the webcast, go to the Investor Relations section at www.bc.com 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 Investor Relations 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, our ability to efficiently and effectively integrate the Coastal Plywood 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												Year Ended
		December 31								September 30, 2022				December 31
		2022				2021								2022				2021
Sales		$	1,628,306			$	1,782,183			$	2,154,647			$	8,387,307			$	7,926,111
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			1,288,717				1,390,714				1,655,979				6,472,540				6,300,076
Depreciation and amortization			31,982				20,495				28,374				101,593				80,753
Selling and distribution expenses			130,145				124,897				142,176				553,251				491,016
General and administrative expenses			22,375				18,976				27,622				103,750				83,228
Other (income) expense, net			(689	)			(280	)			1,126				(1,676	)			(765	)
			1,472,530				1,554,802				1,855,277				7,229,458				6,954,308
Income from operations			155,776				227,381				299,370				1,157,849				971,803
Foreign currency exchange gain (loss)			457				42				(1,674	)			(1,584	)			(10	)
Pension expense (excluding service costs)			(41	)			(19	)			(41	)			(294	)			(76	)
Interest expense			(6,443	)			(6,305	)			(6,398	)			(25,412	)			(24,806	)
Interest income			7,575				22				3,238				12,263				195
Change in fair value of interest rate swaps			(35	)			687				1,134				3,559				1,745
			1,513				(5,573	)			(3,741	)			(11,468	)			(22,952	)
Income before income taxes			157,289				221,808				295,629				1,146,381				948,851
Income tax provision			(39,929	)			(52,733	)			(76,042	)			(288,723	)			(236,365	)
Net income		$	117,360			$	169,075			$	219,587			$	857,658			$	712,486
Weighted average common shares outstanding:
Basic			39,544				39,442				39,544				39,526				39,420
Diluted			39,830				39,735				39,776				39,772				39,646
Net income per common share:
Basic		$	2.97			$	4.29			$	5.55			$	21.70			$	18.07
Diluted		$	2.95			$	4.26			$	5.52			$	21.56			$	17.97
Dividends declared per common share		$	1.15			$	3.12			$	0.12			$	4.01			$	5.42

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

		Three Months Ended												Year Ended
		December 31								September 30, 2022				December 31
		2022				2021								2022				2021
Segment sales		$	425,602			$	446,584			$	595,320			$	2,115,896			$	1,970,804
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			312,143				322,215				398,008				1,405,417				1,332,906
Depreciation and amortization			24,730				13,861				21,285				73,308				55,249
Selling and distribution expenses			10,397				8,783				11,164				41,140				35,741
General and administrative expenses			3,751				3,414				7,717				21,940				15,628
Other (income) expense, net			(397	)			(55	)			1,174				(1,076	)			45
			350,624				348,218				439,348				1,540,729				1,439,569
Segment income		$	74,978			$	98,366			$	155,972			$	575,167			$	531,235
		(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)			73.3	%			72.2	%			66.9	%			66.4	%			67.6	%
Depreciation and amortization			5.8	%			3.1	%			3.6	%			3.5	%			2.8	%
Selling and distribution expenses			2.4	%			2.0	%			1.9	%			1.9	%			1.8	%
General and administrative expenses			0.9	%			0.8	%			1.3	%			1.0	%			0.8	%
Other (income) expense, net			(0.1	%)			—	%			0.2	%			(0.1	%)			—	%
			82.4	%			78.0	%			73.8	%			72.8	%			73.0	%
Segment income			17.6	%			22.0	%			26.2	%			27.2	%			27.0	%

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

		Three Months Ended												Year Ended
		December 31								September 30, 2022				December 31
		2022				2021								2022				2021
Segment sales		$	1,443,780			$	1,645,513			$	1,956,802			$	7,643,615			$	7,174,278
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			1,216,198				1,378,206				1,655,257				6,438,103				6,184,290
Depreciation and amortization			6,941				6,258				6,760				27,005				24,007
Selling and distribution expenses			119,748				116,114				131,012				512,111				455,277
General and administrative expenses			8,387				7,230				9,480				39,651				31,857
Other (income) expense, net			51				(258	)			(143	)			(346	)			(2,238	)
			1,351,325				1,507,550				1,802,366				7,016,524				6,693,193
Segment income		$	92,455			$	137,963			$	154,436			$	627,091			$	481,085
		(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)			84.2	%			83.8	%			84.6	%			84.2	%			86.2	%
Depreciation and amortization			0.5	%			0.4	%			0.3	%			0.4	%			0.3	%
Selling and distribution expenses			8.3	%			7.1	%			6.7	%			6.7	%			6.3	%
General and administrative expenses			0.6	%			0.4	%			0.5	%			0.5	%			0.4	%
Other (income) expense, net			—	%			—	%			—	%			—	%			—	%
			93.6	%			91.6	%			92.1	%			91.8	%			93.3	%
Segment income			6.4	%			8.4	%			7.9	%			8.2	%			6.7	%

Segment Information
(in thousands) (unaudited)

		Three Months Ended												Year Ended
		December 31								September 30, 2022				December 31
			2022				2021								2022				2021
Segment sales
Wood Products		$	425,602			$	446,584			$	595,320			$	2,115,896			$	1,970,804
Building Materials Distribution			1,443,780				1,645,513				1,956,802				7,643,615				7,174,278
Intersegment eliminations			(241,076	)			(309,914	)			(397,475	)			(1,372,204	)			(1,218,971	)
Total net sales		$	1,628,306			$	1,782,183			$	2,154,647			$	8,387,307			$	7,926,111
Segment income
Wood Products		$	74,978			$	98,366			$	155,972			$	575,167			$	531,235
Building Materials Distribution			92,455				137,963				154,436				627,091				481,085
Total segment income			167,433				236,329				310,408				1,202,258				1,012,320
Unallocated corporate costs			(11,657	)			(8,948	)			(11,038	)			(44,409	)			(40,517	)
Income from operations		$	155,776			$	227,381			$	299,370			$	1,157,849			$	971,803
Segment EBITDA
Wood Products		$	99,708			$	112,227			$	177,257			$	648,475			$	586,484
Building Materials Distribution			99,396				144,221				161,196				654,096				505,092

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

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

		December 31, 2022			December 31, 2021
ASSETS
Current
Cash and cash equivalents		$	998,344		$	748,907
Receivables
Trade, less allowances of $3,264 and $2,054			297,237			444,325
Related parties			19			211
Other			23,023			17,692
Inventories			697,551			660,671
Prepaid expenses and other			47,878			14,072
Total current assets			2,064,052			1,885,878
Property and equipment, net			770,023			495,240
Operating lease right-of-use assets			55,582			62,663
Finance lease right-of-use assets			26,501			29,057
Timber deposits			7,519			9,461
Goodwill			137,958			60,382
Intangible assets, net			161,433			15,351
Deferred income taxes			6,116			6,589
Other assets			11,330			8,019
Total assets		$	3,240,514		$	2,572,640

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

		December 31, 2022				December 31, 2021
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade		$	269,785			$	334,985
Related parties			1,019				1,498
Accrued liabilities
Compensation and benefits			142,463				128,518
Interest payable			9,955				9,886
Other			122,606				165,859
Total current liabilities			545,828				640,746
Debt
Long-term debt			444,392				444,628
Other
Compensation and benefits			33,226				28,365
Operating lease liabilities, net of current portion			48,668				55,263
Finance lease liabilities, net of current portion			30,022				31,898
Deferred income taxes			63,454				3,641
Other long-term liabilities			16,949				15,480
			192,319				134,647
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, 44,827 and 44,698 shares issued, respectively			448				447
Treasury stock, 5,367 shares at cost			(138,909	)			(138,909	)
Additional paid-in capital			551,215				543,249
Accumulated other comprehensive loss			(520	)			(1,047	)
Retained earnings			1,645,741				948,879
Total stockholders' equity			2,057,975				1,352,619
Total liabilities and stockholders' equity		$	3,240,514			$	2,572,640

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

		Year Ended December 31
		2022				2021
Cash provided by (used for) operations
Net income		$	857,658			$	712,486
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other			103,879				82,489
Stock-based compensation			11,870				7,911
Pension expense			294				76
Deferred income taxes			59,666				(13,704	)
Change in fair value of interest rate swaps			(3,559	)			(1,745	)
Other			(1,043	)			712
Decrease (increase) in working capital, net of acquisitions
Receivables			158,073				(71,190	)
Inventories			(13,903	)			(158,472	)
Prepaid expenses and other			(2,834	)			(3,238	)
Accounts payable and accrued liabilities			(100,354	)			123,670
Pension contributions			(1,058	)			(470	)
Income taxes payable			(30,561	)			(10,057	)
Other			3,091				(1,484	)
Net cash provided by operations			1,041,219				666,984
Cash provided by (used for) investment
Expenditures for property and equipment			(114,117	)			(106,518	)
Acquisitions of businesses and facilities			(515,237	)			—
Proceeds from sales of assets and other			3,898				932
Net cash used for investment			(625,456	)			(105,586	)
Cash provided by (used for) financing
Borrowings of long-term debt, including revolving credit facility			—				28,000
Payments of long-term debt, including revolving credit facility			—				(28,000	)
Payments of deferring financing costs			(1,174	)			—
Dividends paid on common stock			(159,564	)			(213,681	)
Tax withholding payments on stock-based awards			(3,930	)			(2,729	)
Other			(1,658	)			(1,463	)
Net cash used for financing			(166,326	)			(217,873	)
Net increase in cash and cash equivalents			249,437				343,525
Balance at beginning of the period			748,907				405,382
Balance at end of the period		$	998,344			$	748,907

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 December 31, 2022 and 2021, (ii) the three months ended September 30, 2022, and (iii) the year ended December 31, 2022 and 2021:

		Three Months Ended												Year Ended
		December 31								September 30, 2022				December 31
		2022				2021								2022				2021
		(in thousands)
Net income		$	117,360			$	169,075			$	219,587			$	857,658			$	712,486
Interest expense			6,443				6,305				6,398				25,412				24,806
Interest income			(7,575	)			(22	)			(3,238	)			(12,263	)			(195	)
Income tax provision			39,929				52,733				76,042				288,723				236,365
Depreciation and amortization			31,982				20,495				28,374				101,593				80,753
EBITDA			188,139				248,586				327,163				1,261,123				1,054,215
Change in fair value of interest rate swaps			35				(687	)			(1,134	)			(3,559	)			(1,745	)
Adjusted EBITDA		$	188,174			$	247,899			$	326,029			$	1,257,564			$	1,052,470

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended December 31, 2022 and 2021, (ii) three months ended September 30, 2022, and (iii) the year ended December 31, 2022 and 2021:

		Three Months Ended												Year Ended
		December 31								September 30, 2022				December 31
		2022				2021								2022				2021
		(in thousands)
Wood Products
Segment income		$	74,978			$	98,366			$	155,972			$	575,167			$	531,235
Depreciation and amortization			24,730				13,861				21,285				73,308				55,249
EBITDA		$	99,708			$	112,227			$	177,257			$	648,475			$	586,484
Building Materials Distribution
Segment income		$	92,455			$	137,963			$	154,436			$	627,091			$	481,085
Depreciation and amortization			6,941				6,258				6,760				27,005				24,007
EBITDA		$	99,396			$	144,221			$	161,196			$	654,096			$	505,092
Corporate
Unallocated corporate costs		$	(11,657	)		$	(8,948	)		$	(11,038	)		$	(44,409	)		$	(40,517	)
Foreign currency exchange gain (loss)			457				42				(1,674	)			(1,584	)			(10	)
Pension expense (excluding service costs)			(41	)			(19	)			(41	)			(294	)			(76	)
Change in fair value of interest rate swaps			(35	)			687				1,134				3,559				1,745
Depreciation and amortization			311				376				329				1,280				1,497
EBITDA			(10,965	)			(7,862	)			(11,290	)			(41,448	)			(37,361	)
Change in fair value of interest rate swaps			35				(687	)			(1,134	)			(3,559	)			(1,745	)
Corporate adjusted EBITDA		$	(10,930	)		$	(8,549	)		$	(12,424	)		$	(45,007	)		$	(39,106	)
Total Company adjusted EBITDA		$	188,174			$	247,899			$	326,029			$	1,257,564			$	1,052,470

 

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Investor Relations Contact - Kelly Hibbs

208 384 3638

Media Contact - Lisa Tschampl

208 384 6552

Source: Boise Cascade Company

FAQ

What were the fourth quarter results for Boise Cascade in 2022?

Boise Cascade reported a net income of $117.4 million on sales of $1.6 billion for the fourth quarter of 2022.

How much did Boise Cascade earn in 2022?

The company reported a net income of $857.7 million for the full year 2022.

What is Boise Cascade’s stock symbol?

The stock symbol for Boise Cascade is BCC.

What is the dividend declared by Boise Cascade for March 2023?

Boise Cascade declared a quarterly dividend of $0.15 per share, payable on March 15, 2023.

How did housing starts affect Boise Cascade's sales?

In 2022, U.S. housing starts decreased by 15%, significantly impacting Boise Cascade's sales volumes.