Boise Cascade Company Reports Second Quarter 2024 Results

Rhea-AI Summary

Boise Cascade Company (NYSE: BCC) reported Q2 2024 results with net income of $112.3 million, or $2.84 per share, on sales of $1.8 billion. This represents a 23% decrease in net income compared to Q2 2023. Key highlights include:

- Wood Products sales decreased 8% to $489.8 million
- Building Materials Distribution sales increased 1% to $1,655.2 million
- Total available liquidity of $1,317.8 million
- Declared quarterly dividend of $0.21 per share and special dividend of $5.00 per share
- Repurchased 677,845 shares for $88.9 million in first half of 2024

The company expects capital expenditures of $250-270 million in 2024. Despite a tepid demand environment, Boise Cascade remains confident in delivering quality results through the second half of the year.

Positive

• Declared special dividend of $5.00 per share
• Building Materials Distribution sales increased 1% to $1,655.2 million
• Strong liquidity position with $1,317.8 million available
• Continued share repurchases, with 677,845 shares bought back in H1 2024

Negative

• Net income decreased 23% year-over-year to $112.3 million
• Wood Products sales decreased 8% to $489.8 million
• Wood Products segment income decreased by $31.3 million to $72.8 million
• Building Materials Distribution segment income decreased by $13.2 million to $85.4 million

Insights

Financial Analyst

Boise Cascade's Q2 2024 results show a mixed performance in a challenging market. Net income decreased by 23% to $112.3 million, with EPS falling to $2.84 from $3.67 year-over-year. Despite this, the company maintained stable sales at $1.8 billion.

The Wood Products segment saw an 8% revenue decline, primarily due to lower plywood volumes and EWP prices. However, the Building Materials Distribution segment slightly increased sales by 1%, boosted by the BROSCO acquisition.

With $1.3 billion in available liquidity, Boise Cascade remains financially robust. The announcement of a $5.00 special dividend signals confidence in cash flow generation. Investors should monitor housing market trends and commodity prices, as these significantly impact the company's performance.

Market Research Analyst

The housing market dynamics are important for Boise Cascade's outlook. While Q2 2024 saw a 7% decrease in total U.S. housing starts, single-family starts increased by 7% year-over-year. This shift towards single-family homes could benefit Boise Cascade, as it's a key demand driver for their products.

However, challenges persist with elevated mortgage rates and economic uncertainties affecting demand. The company's performance in this "somewhat tepid demand environment" demonstrates resilience. The repair-and-remodel market, supported by an aging housing stock and high homeowner equity, presents opportunities despite recent softening.

Investors should watch for potential volatility in commodity prices and input costs, which can significantly impact profitability. The company's diverse product mix and strong distribution network provide some buffer against market fluctuations.

Supply Chain Expert

Boise Cascade's integrated business model, combining manufacturing and distribution, provides a competitive advantage in managing supply chain challenges. The company's ability to maintain stable sales despite market headwinds demonstrates effective inventory management and pricing strategies.

The 1% increase in Building Materials Distribution sales, partly due to the BROSCO acquisition, highlights the importance of strategic expansions in strengthening the distribution network. However, the 8% decrease in Wood Products sales indicates ongoing supply-demand imbalances in certain product categories.

Looking ahead, supply chain efficiency will be crucial. The company's $250-270 million capital expenditure plan for 2024 suggests continued investment in operational improvements. Monitoring transportation constraints, inventory levels and import/export activities will be key for investors assessing Boise Cascade's supply chain resilience.

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

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

Second Quarter 2024 Highlights

		2Q 2024			2Q 2023			% change
		(in thousands, except per-share data and percentages)
Consolidated Results
Sales		$	1,797,670		$	1,815,219		(1	)%
Net income			112,292			146,320		(23	)%
Net income per common share - diluted			2.84			3.67		(23	)%
Adjusted EBITDA 1			181,207			220,976		(18	)%
Segment Results
Wood Products sales		$	489,823		$	530,273		(8	)%
Wood Products income			72,780			104,035		(30	)%
Wood Products EBITDA 1			95,050			127,040		(25	)%
Building Materials Distribution sales			1,655,221			1,636,538		1	%
Building Materials Distribution income			85,400			98,550		(13	)%
Building Materials Distribution EBITDA 1			97,141			105,936		(8	)%
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.

In second quarter 2024, total U.S. housing starts decreased 7%, while single-family housing starts increased 7%, compared to the same period in 2023. On a year-to-date basis through June 2024, total housing starts decreased 3%, while single-family housing starts increased 16%, compared to the same period in 2023. Single-family housing starts are the key demand driver for our sales.

Wood Products

Wood Products' sales, including sales to Building Materials Distribution (BMD), decreased $40.5 million, or 8%, to $489.8 million for the three months ended June 30, 2024, from $530.3 million for the three months ended June 30, 2023. The decrease in sales was driven by lower plywood sales volumes, as well as lower sales prices for LVL and I-joists (collectively referred to as EWP). Other sales related to lumber and residual byproducts also decreased. These decreases were offset partially by increased sales volumes for EWP.

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

		2Q 2024 vs. 2Q 2023		2Q 2024 vs. 1Q 2024
Average Net Selling Prices
LVL		(7)%		(2)%
I-joists		(6)%		(3)%
Plywood		(1)%		(4)%
Sales Volumes
LVL		8%		6%
I-joists		5%		16%
Plywood		(13)%		3%

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

Building Materials Distribution

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

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

Balance Sheet and Liquidity

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

Capital Allocation

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

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

For the six months ended June 30, 2024, the Company paid $88.9 million for the repurchase of 677,845 shares of our common stock. Furthermore, in July 2024, the Company repurchased 90,000 shares of our common stock at a cost of $10.5 million. As of July 31, 2024, approximately 1.2 million shares were available for repurchase under our existing share repurchase program.

Outlook

Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Residential construction, particularly new single-family construction, is the key demand driver for the products we manufacture and distribute. Current industry forecasts for 2024 U.S. housing starts are slightly below actual housing starts of 1.42 million in 2023, as reported by the U.S. Census Bureau. Home affordability remains a challenge for many consumers due to the cost of housing, as well as persistent elevated mortgage rates. However, with low unemployment, an undersupply of existing housing stock available for sale, and favorable demographic trends, new residential construction is expected to remain an important source of supply for homebuyers. Multi-family starts have declined sharply from historic levels due to increased capital costs for developers, combined with elevated supply. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity will continue to provide a favorable backdrop for repair-and-remodel spending. However, while home improvement spending is expected to remain healthy compared to history, renovation spending has softened due to consumer uncertainty, labor availability, higher borrowing costs, and building material inflation. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, home size, and other factors will likely influence the near-term demand environment for the products we manufacture and distribute.

As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Future product pricing, particularly commodity products pricing and input costs, may be volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns.

About Boise Cascade

Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com.

Webcast and Conference Call

Boise Cascade will host a webcast and conference call to discuss second quarter earnings on Tuesday, August 6, 2024, at 11 a.m. Eastern.

To join the webcast, go to the Investors section of our website at www.bc.com/investors and select the Event Calendar link. Analysts and investors who wish to ask questions during the Q&A session can register for the call here.

The archived webcast will be available in the Investors section of Boise Cascade's website.

Use of Non-GAAP Financial Measures

We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps.

We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

Forward-Looking Statements

This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding our outlook. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, our ability to efficiently and effectively integrate the BROSCO acquisition, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.

 

Boise Cascade Company
Consolidated Statements of Operations
(in thousands, except per-share data) (unaudited)

		Three Months Ended												Six Months Ended
		June 30								March 31, 2024				June 30
		2024				2023								2024				2023
Sales		$	1,797,670			$	1,815,219			$	1,645,420			$	3,443,090			$	3,359,548
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			1,440,680				1,426,436				1,307,439				2,748,119				2,657,071
Depreciation and amortization			34,367				30,722				35,850				70,217				61,908
Selling and distribution expenses			149,783				139,205				144,110				293,893				267,993
General and administrative expenses			25,943				30,147				25,117				51,060				56,610
Other (income) expense, net			(84	)			(1,266	)			(78	)			(162	)			(1,611	)
			1,650,689				1,625,244				1,512,438				3,163,127				3,041,971
Income from operations			146,981				189,975				132,982				279,963				317,577
Foreign currency exchange gain (loss)			(104	)			320				(299	)			(403	)			247
Pension expense (excluding service costs)			(37	)			(41	)			(37	)			(74	)			(82	)
Interest expense			(6,105	)			(6,339	)			(6,070	)			(12,175	)			(12,700	)
Interest income			10,543				11,519				10,597				21,140				21,204
Change in fair value of interest rate swaps			(487	)			333				(220	)			(707	)			(471	)
			3,810				5,792				3,971				7,781				8,198
Income before income taxes			150,791				195,767				136,953				287,744				325,775
Income tax provision			(38,499	)			(49,447	)			(32,829	)			(71,328	)			(82,722	)
Net income		$	112,292			$	146,320			$	104,124			$	216,416			$	243,053
Weighted average common shares outstanding:
Basic			39,412				39,675				39,608				39,510				39,634
Diluted			39,608				39,834				39,956				39,766				39,818
Net income per common share:
Basic		$	2.85			$	3.69			$	2.63			$	5.48			$	6.13
Diluted		$	2.84			$	3.67			$	2.61			$	5.44			$	6.10
Dividends declared per common share		$	0.20			$	3.15			$	0.20			$	0.40			$	3.30

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

		Three Months Ended												Six Months Ended
		June 30								March 31, 2024				June 30
		2024				2023								2024				2023
Segment sales		$	489,823			$	530,273			$	468,928			$	958,751			$	967,701
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			378,920				387,407				357,721				736,641				715,146
Depreciation and amortization			22,270				23,005				24,384				46,654				46,795
Selling and distribution expenses			11,114				11,437				10,551				21,665				23,115
General and administrative expenses			4,606				5,364				5,020				9,626				10,542
Other (income) expense, net			133				(975	)			14				147				(1,327	)
			417,043				426,238				397,690				814,733				794,271
Segment income		$	72,780			$	104,035			$	71,238			$	144,018			$	173,430
		(percentage of sales)
Segment sales			100.0	%			100.0	%			100.0	%			100.0	%			100.0	%
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			77.4	%			73.1	%			76.3	%			76.8	%			73.9	%
Depreciation and amortization			4.5	%			4.3	%			5.2	%			4.9	%			4.8	%
Selling and distribution expenses			2.3	%			2.2	%			2.3	%			2.3	%			2.4	%
General and administrative expenses			0.9	%			1.0	%			1.1	%			1.0	%			1.1	%
Other (income) expense, net			—	%			(0.2	%)			—	%			—	%			(0.1	%)
			85.1	%			80.4	%			84.8	%			85.0	%			82.1	%
Segment income			14.9	%			19.6	%			15.2	%			15.0	%			17.9	%

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

		Three Months Ended												Six Months Ended
		June 30								March 31, 2024				June 30
		2024				2023								2024				2023
Segment sales		$	1,655,221			$	1,636,538			$	1,505,021			$	3,160,242			$	3,015,780
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			1,409,510				1,391,015				1,278,421				2,687,931				2,566,565
Depreciation and amortization			11,741				7,386				11,107				22,848				14,456
Selling and distribution expenses			138,716				127,786				133,614				272,330				244,896
General and administrative expenses			10,070				12,089				9,534				19,604				22,119
Other (income) expense, net			(216	)			(288	)			(118	)			(334	)			(491	)
			1,569,821				1,537,988				1,432,558				3,002,379				2,847,545
Segment income		$	85,400			$	98,550			$	72,463			$	157,863			$	168,235
		(percentage of sales)
Segment sales			100.0	%			100.0	%			100.0	%			100.0	%			100.0	%
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)			85.2	%			85.0	%			84.9	%			85.1	%			85.1	%
Depreciation and amortization			0.7	%			0.5	%			0.7	%			0.7	%			0.5	%
Selling and distribution expenses			8.4	%			7.8	%			8.9	%			8.6	%			8.1	%
General and administrative expenses			0.6	%			0.7	%			0.6	%			0.6	%			0.7	%
Other (income) expense, net			—	%			—	%			—	%			—	%			—	%
			94.8	%			94.0	%			95.2	%			95.0	%			94.4	%
Segment income			5.2	%			6.0	%			4.8	%			5.0	%			5.6	%

Segment Information
(in thousands) (unaudited)

		Three Months Ended												Six Months Ended
		June 30								March 31, 2024				June 30
		2024				2023								2024				2023
Segment sales
Wood Products		$	489,823			$	530,273			$	468,928			$	958,751			$	967,701
Building Materials Distribution			1,655,221				1,636,538				1,505,021				3,160,242				3,015,780
Intersegment eliminations			(347,374	)			(351,592	)			(328,529	)			(675,903	)			(623,933	)
Total net sales		$	1,797,670			$	1,815,219			$	1,645,420			$	3,443,090			$	3,359,548
Segment income
Wood Products		$	72,780			$	104,035			$	71,238			$	144,018			$	173,430
Building Materials Distribution			85,400				98,550				72,463				157,863				168,235
Total segment income			158,180				202,585				143,701				301,881				341,665
Unallocated corporate costs			(11,199	)			(12,610	)			(10,719	)			(21,918	)			(24,088	)
Income from operations		$	146,981			$	189,975			$	132,982			$	279,963			$	317,577
Segment EBITDA
Wood Products		$	95,050			$	127,040			$	95,622			$	190,672			$	220,225
Building Materials Distribution			97,141				105,936				83,570				180,711				182,691
See accompanying summary notes to consolidated financial statements and segment information.

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

		June 30, 2024			December 31, 2023
ASSETS
Current
Cash and cash equivalents		$	922,076		$	949,574
Receivables
Trade, less allowances of $4,520 and $3,278			459,772			352,780
Related parties			249			181
Other			17,120			20,740
Inventories			832,241			712,369
Prepaid expenses and other			36,348			21,170
Total current assets			2,267,806			2,056,814
Property and equipment, net			948,841			932,633
Operating lease right-of-use assets			59,812			62,868
Finance lease right-of-use assets			23,548			24,003
Timber deposits			7,675			7,208
Goodwill			170,254			170,254
Intangible assets, net			180,928			190,743
Deferred income taxes			4,655			4,854
Other assets			8,445			9,269
Total assets		$	3,671,964		$	3,458,646

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

		June 30, 2024				December 31, 2023
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade		$	438,235			$	310,175
Related parties			2,146				1,501
Accrued liabilities
Compensation and benefits			96,414				149,561
Interest payable			9,956				9,958
Other			144,755				122,921
Total current liabilities			691,506				594,116
Debt
Long-term debt			445,723				445,280
Other
Compensation and benefits			39,648				40,189
Operating lease liabilities, net of current portion			53,170				56,425
Finance lease liabilities, net of current portion			27,891				28,084
Deferred income taxes			93,062				82,014
Other long-term liabilities			17,988				16,874
			231,759				223,586
Commitments and contingent liabilities
Stockholders' equity
Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding			—				—
Common stock, $0.01 par value per share; 300,000 shares authorized, 45,130 and 44,983 shares issued, respectively			451				450
Treasury stock, 6,121 and 5,443 shares at cost, respectively			(234,879	)			(145,335	)
Additional paid-in capital			557,478				560,697
Accumulated other comprehensive loss			(502	)			(517	)
Retained earnings			1,980,428				1,780,369
Total stockholders' equity			2,302,976				2,195,664
Total liabilities and stockholders' equity		$	3,671,964			$	3,458,646

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

		Six Months Ended June 30
		2024				2023
Cash provided by (used for) operations
Net income		$	216,416			$	243,053
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other			71,832				63,293
Stock-based compensation			7,923				7,518
Pension expense			74				82
Deferred income taxes			11,088				2,749
Change in fair value of interest rate swaps			707				471
Other			115				(1,798	)
Decrease (increase) in working capital, net of acquisitions
Receivables			(102,096	)			(171,794	)
Inventories			(120,976	)			(5,482	)
Prepaid expenses and other			(7,870	)			(7,805	)
Accounts payable and accrued liabilities			99,354				124,910
Income taxes payable			(6,251	)			33,220
Other			(1,151	)			1,801
Net cash provided by operations			169,165				290,218
Cash provided by (used for) investment
Expenditures for property and equipment			(74,099	)			(68,287	)
Acquisitions of businesses and facilities			(3,387	)			—
Proceeds from sales of assets and other			819				1,918
Net cash used for investment			(76,667	)			(66,369	)
Cash provided by (used for) financing
Treasury stock purchased			(88,858	)			(1,539	)
Dividends paid on common stock			(19,069	)			(132,967	)
Tax withholding payments on stock-based awards			(11,117	)			(5,926	)
Other			(952	)			(904	)
Net cash used for financing			(119,996	)			(141,336	)
Net increase (decrease) in cash and cash equivalents			(27,498	)			82,513
Balance at beginning of the period			949,574				998,344
Balance at end of the period		$	922,076			$	1,080,857

Summary Notes to Consolidated Financial Statements and Segment Information

The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2023 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconciles net income to EBITDA and Adjusted EBITDA for the (i) three months ended June 30, 2024 and 2023, (ii) three months ended March 31, 2024, and (iii) six months ended June 30, 2024 and 2023:

		Three Months Ended												Six Months Ended
		June 30								March 31, 2024				June 30
		2024				2023								2024				2023
		(in thousands)
Net income		$	112,292			$	146,320			$	104,124			$	216,416			$	243,053
Interest expense			6,105				6,339				6,070				12,175				12,700
Interest income			(10,543	)			(11,519	)			(10,597	)			(21,140	)			(21,204	)
Income tax provision			38,499				49,447				32,829				71,328				82,722
Depreciation and amortization			34,367				30,722				35,850				70,217				61,908
EBITDA			180,720				221,309				168,276				348,996				379,179
Change in fair value of interest rate swaps			487				(333	)			220				707				471
Adjusted EBITDA		$	181,207			$	220,976			$	168,496			$	349,703			$	379,650

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

		Three Months Ended												Six Months Ended
		June 30								March 31, 2024				June 30
		2024				2023								2024				2023
		(in thousands)
Wood Products
Segment income		$	72,780			$	104,035			$	71,238			$	144,018			$	173,430
Depreciation and amortization			22,270				23,005				24,384				46,654				46,795
EBITDA		$	95,050			$	127,040			$	95,622			$	190,672			$	220,225
Building Materials Distribution
Segment income		$	85,400			$	98,550			$	72,463			$	157,863			$	168,235
Depreciation and amortization			11,741				7,386				11,107				22,848				14,456
EBITDA		$	97,141			$	105,936			$	83,570			$	180,711			$	182,691
Corporate
Unallocated corporate costs		$	(11,199	)		$	(12,610	)		$	(10,719	)		$	(21,918	)		$	(24,088	)
Foreign currency exchange gain (loss)			(104	)			320				(299	)			(403	)			247
Pension expense (excluding service costs)			(37	)			(41	)			(37	)			(74	)			(82	)
Change in fair value of interest rate swaps			(487	)			333				(220	)			(707	)			(471	)
Depreciation and amortization			356				331				359				715				657
EBITDA			(11,471	)			(11,667	)			(10,916	)			(22,387	)			(23,737	)
Change in fair value of interest rate swaps			487				(333	)			220				707				471
Corporate adjusted EBITDA		$	(10,984	)		$	(12,000	)		$	(10,696	)		$	(21,680	)		$	(23,266	)
Total Company adjusted EBITDA		$	181,207			$	220,976			$	168,496			$	349,703			$	379,650

 

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Investor Relations Contact - Chris Forrey

investor@bc.com

Media Contact - Amy Evans

mediarelations@bc.com

Source: Boise Cascade Company

FAQ

What was Boise Cascade's (BCC) net income for Q2 2024?

Boise Cascade reported net income of $112.3 million, or $2.84 per share, for Q2 2024.

How did Boise Cascade's (BCC) Q2 2024 results compare to Q2 2023?

Boise Cascade's Q2 2024 net income of $112.3 million was 23% lower than the $146.3 million reported in Q2 2023.

What special dividend did Boise Cascade (BCC) declare in August 2024?

Boise Cascade declared a special dividend of $5.00 per share, in addition to a quarterly dividend of $0.21 per share, on August 1, 2024.

How much did Boise Cascade (BCC) spend on share repurchases in the first half of 2024?

Boise Cascade spent $88.9 million to repurchase 677,845 shares of its common stock in the first half of 2024.