Boise Cascade Company Reports Second Quarter 2023 Results
"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
Wood Products
Wood Products' sales, including sales to Building Materials Distribution (BMD), decreased
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 |
|
|
|
(3)% |
I-joists |
|
|
|
(4)% |
Plywood |
|
(36)% |
|
(1)% |
Sales Volumes |
|
|
|
|
LVL |
|
|
|
|
I-joists |
|
(9)% |
|
|
Plywood |
|
|
|
|
Wood Products' segment income decreased
Building Materials Distribution
BMD's sales decreased
BMD segment income decreased
Balance Sheet and Liquidity
Boise Cascade ended second quarter 2023 with
We expect capital expenditures in 2023 to total approximately
Dividends
On July 27, 2023, our board of directors declared a quarterly dividend of
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.
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
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
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,
|
|
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,
|
|
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,
|
|
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,
|
|
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 |
|
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, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
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,
|
|
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,
|
|
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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230731313362/en/
Investor Relations Contact - Kelly Hibbs
208 384 3638
Media Contact - Lisa Tschampl
208 384 6552
Source: Boise Cascade Company