Boise Cascade Company Reports Third Quarter 2021 Results

Rhea-AI Summary

Boise Cascade reported third-quarter 2021 net income of $91.7 million, or $2.31 per share, on $1.9 billion in sales, up 18% from $1.6 billion in Q3 2020. Despite strong wood product sales, net income decreased 11% year-over-year, with adjusted EBITDA down 16%. Wood Products sales surged 37%, while Building Materials Distribution sales rose by 20%, although income plummeted 85%. The company declared a quarterly dividend of $0.12 and a supplemental dividend of $3.00. Looking forward, positive demand for residential construction is anticipated, amidst potential concerns from COVID-19 variants and commodity price volatility.

Positive

• Net income of $91.7 million, or $2.31 per share, reflects a strong sales increase.
• Sales increased 18% year-over-year to $1.9 billion, driven by Wood Products and Building Materials Distribution.
• Wood Products segment income rose 85% to $122.1 million, boosted by higher plywood and engineered wood product prices.
• The company has strong balance sheet liquidity, with $786.9 million in cash and available bank lines totaling $1.1 billion.
• Declared a dividend of $0.12 per share and a supplemental dividend of $3.00 per share.

Negative

• Net income declined 11% year-over-year, indicating potential profitability concerns.
• Building Materials Distribution segment income dropped 85% due to a significant decrease in commodity prices.
• Adjusted EBITDA fell 16%, indicating reduced overall profitability across segments.
• Ongoing risks from COVID-19 variants may impact operations and costs.

BOISE, Idaho--(BUSINESS WIRE)-- Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $91.7 million, or $2.31 per share, on sales of $1.9 billion for the third quarter ended September 30, 2021, compared with net income of $103.2 million, or $2.61 per share, on sales of $1.6 billion for the third quarter ended September 30, 2020. Third quarter 2020 results include a $10.5 million after-tax loss on extinguishment of debt, or $0.27 per share, as the Company refinanced its senior notes.

“Strong sales of our engineered wood and general line products helped to mitigate the negative impact of historic declines in commodity products pricing during the quarter. Our associates’ performance was outstanding in the face of a very challenging backdrop," stated Nate Jorgensen, CEO. "Looking forward, we are optimistic about the demand environment for new residential construction for the balance of this year and 2022. In addition, we recently announced additional dividends to our shareholders, and our balance sheet strength provides us the ability to remain focused on the execution of our strategies, including future organic and acquisition growth opportunities."

Third Quarter 2021 Highlights

		3Q 2021				3Q 2020				% change
		(in thousands, except per-share data and percentages)
Consolidated Results
Sales		$	1,879,451			$	1,589,313			18	%
Net income		91,699				103,192				(11	)%
Net income per common share - diluted		2.31				2.61				(11	)%
Adjusted EBITDA 1		149,313				178,564				(16	)%
Segment Results
Wood Products sales		$	497,316			$	363,674			37	%
Wood Products income		122,056				66,035				85	%
Wood Products EBITDA 1		135,970				79,973				70	%
Building Materials Distribution sales		1,721,244				1,437,683				20	%
Building Materials Distribution income		16,565				107,901				(85	)%
Building Materials Distribution EBITDA 1		22,578				113,587				(80	)%
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.

In the third quarter 2021, total U.S. housing starts increased 8% compared to the same period in 2020. Single-family housing starts, the primary driver of our sales volumes, also increased 5%. On a year-to-date basis through September 2021, total and single-family housing starts both increased 20% compared with the same period in 2020.

Wood Products

Wood Products' sales, including sales to BMD, increased $133.6 million, or 37%, to $497.3 million for the three months ended September 30, 2021, from $363.7 million for the three months ended September 30, 2020. The increase in sales was driven primarily by higher plywood prices, as well as higher net sales prices and sales volumes for I-joists and LVL (collectively referred to as EWP). In addition, improved lumber sales prices contributed to the increase in sales. Plywood sales volumes were flat compared with the same period in the prior year. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

		3Q 2021 vs. 3Q 2020		3Q 2021 vs. 2Q 2021
Average Net Selling Prices
LVL		23%		14%
I-joists		27%		16%
Plywood		31%		(36)%
Sales Volumes
LVL		2%		(1)%
I-joists		21%		1%
Plywood		(1)%		(7)%

Wood Products' segment income increased $56.0 million to $122.1 million for the three months ended September 30, 2021, from $66.0 million for the three months ended September 30, 2020. The increase in segment income was due primarily to higher EWP, plywood, and lumber sales prices, as well as higher EWP sales volumes. These improvements were offset partially by higher wood fiber costs and lower margins on inventory purchased for resale through certain customer programs.

Building Materials Distribution

BMD's sales increased $283.6 million, or 20%, to $1,721.2 million for the three months ended September 30, 2021, from $1,437.7 million for the three months ended September 30, 2020. Compared with the same quarter in the prior year, the overall increase in sales was driven by a sales price increase of 23%, offset partially by a sales volume decrease of 3%. By product line, commodity sales increased 7%, general line product sales increased 20%, and sales of EWP (substantially all of which is sourced through our Wood Products segment) increased 57%.

BMD segment income decreased $91.3 million to $16.6 million for the three months ended September 30, 2021, from $107.9 million in the comparative prior year quarter. The decline in segment income was driven primarily by a gross margin decrease of $100.5 million, resulting from a sharp decline in commodity prices during third quarter 2021. The negative impacts from commodity price declines were offset partially by higher sales volumes and gross margin percentages for EWP and general line products, as well as decreased selling and distribution expenses of $7.8 million.

Unallocated Corporate Costs

Unallocated corporate expenses decreased $6.1 million to $9.2 million for the three months ended September 30, 2021, from $15.4 million for the same period in the prior year. The decrease was due primarily to lower employee-related expenses of $3.0 million, most of which relates to incentive compensation. In addition, as part of our self-insured risk retention program, corporate absorbed approximately $3.2 million of estimated business interruption losses at Wood Products facilities in third quarter 2020.

Balance Sheet and Liquidity

Boise Cascade ended third quarter 2021 with $786.9 million of cash and cash equivalents and $345.3 million of undrawn committed bank line availability, for total available liquidity of $1,132.2 million. The Company had $444.4 million of outstanding debt at September 30, 2021.

We expect capital expenditures in 2021 to total approximately $90 million to $100 million. Included in our capital spending range is the completion of a log utilization center project at our Florien plywood and veneer plant, a new door assembly operation in Houston, and expansion of our distribution capabilities in the Nashville market. We expect our capital spending, excluding acquisitions, to be approximately $100-to-$130 million in 2022. These levels of capital expenditures could increase or decrease as a result of a number of factors, including acquisitions, efforts to 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 October 28, 2021, our board of directors declared a quarterly dividend of $0.12 per share on our common stock, as well as a supplemental dividend of $3.00 per share on our common stock, both payable on December 15, 2021, to stockholders of record on December 1, 2021.

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, contractual obligations, 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

After seeing fewer pandemic-related disruptions during second quarter 2021, we experienced short-term disruptions at many locations during the third quarter as COVID-19 variants spread throughout the United States. We continue to conduct business with certain modifications to mill and distribution center housekeeping and cleanliness protocols, employee travel, employee work locations, and virtualization or cancellation of certain sales and marketing events, among other modifications. In addition, we continue to actively monitor evolving developments, including the impact of COVID-19 variants, and may take actions that alter our business operations as may be required by federal, state, or local authorities, or that we determine are in the best interests of our employees, customers, suppliers, communities, and stockholders. Furthermore, we are monitoring the development of government mandates that companies ensure workers are vaccinated or tested regularly for COVID-19. While we educate our associates on the effectiveness of vaccines and strongly encourage vaccination for its long-term health benefits, the new regulation may have the near-term effect of increasing costs, straining company resources, interrupting operations, reducing employee morale, or increasing employee turnover, which could adversely affect our business, results of operations, or financial condition.

Economic uncertainty due to the pandemic continues. However, low mortgage rates, continuation of work-from-home practices by many in the economy, and demographics in the U.S. have created a favorable demand environment for new residential construction, particularly single-family housing starts, which we expect to continue in 2021 and into next year. As of October 2021, the Blue Chip Economic Indicators consensus forecast for 2021 and 2022 single- and multi-family housing starts in the U.S. were 1.59 million and 1.57 million units, respectively, compared with actual housing starts of 1.38 million in 2020, as reported by the U.S. Census Bureau. In addition, the age of the U.S. housing stock and limited home inventory availability will continue to provide a favorable backdrop for repair-and-remodel spending. Although we believe that current U.S. demographics support a higher level of forecasted housing starts, and many national home builders are reporting strong near-term backlogs, labor shortages and supply induced constraints on residential construction activity may continue to extend build times and limit activity. In addition, the pace of residential construction and repair-and-remodeling activity may be affected by the economic impact of the cost of building materials and construction, housing affordability, mortgage interest rates, wage growth, prospective home buyers' access to financing, consumer confidence, as well as other factors.

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. Reflected in our operating results, lumber and panel pricing was very volatile during second and third quarters 2021, with rapidly rising prices in April and most of May followed by sharp price declines through the month of August before stabilizing in September. Future commodity product pricing and commodity input costs could be volatile in response to capacity restoration and industry operating rates, the impact of COVID-19 on residential construction, net import and export activity, transportation constraints or disruptions, 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 third quarter earnings on Tuesday, November 2, 2021, at 11 a.m. Eastern.

To participate in the conference call, dial 844-795-4410 and use participant passcode 1675748 (international callers should dial 661-378-9637). To join the webcast, go to the Investor Relations section at www.bc.com and select the Event Calendar link.

A replay of the conference call will be available from Tuesday, November 2, 2021, at 2 p.m. Eastern through Tuesday, November 9, 2021, at 2 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. callers and 404-537-3406 for international callers with a passcode of 1675748. 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 and loss on extinguishment of debt.

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. 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, the effect of COVID-19 and related state or federal vaccine mandates, 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												Nine Months Ended
		September 30								June 30, 2021				September 30
		2021				2020								2021				2020
Sales		$	1,879,451			$	1,589,313			$	2,443,161			$	6,143,928			$	4,002,607
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)		1,594,405				1,261,697				1,864,523				4,909,362				3,302,869
Depreciation and amortization		20,299				20,029				20,420				60,258				75,260
Selling and distribution expenses		114,466				122,884				130,736				366,119				325,913
General and administrative expenses		21,002				26,060				17,988				64,252				60,899
Loss on curtailment of facility		—				—				—				—				1,707
Other (income) expense, net		(107		)		71				(281		)		(485		)		70
		1,750,065				1,430,741				2,033,386				5,399,506				3,766,718
Income from operations		129,386				158,572				409,775				744,422				235,889
Foreign currency exchange gain (loss)		(353		)		265				147				(52		)		(199		)
Pension expense (excluding service costs)		(19		)		(302		)		(19		)		(57		)		(991		)
Interest expense		(6,279		)		(7,002		)		(6,347		)		(18,501		)		(20,056		)
Interest income		63				113				51				173				958
Change in fair value of interest rate swaps		59				147				(25		)		1,058				(2,681		)
Loss on extinguishment of debt		—				(13,968		)		—				—				(13,968		)
		(6,529		)		(20,747		)		(6,193		)		(17,379		)		(36,937		)
Income before income taxes		122,857				137,825				403,582				727,043				198,952
Income tax provision		(31,158		)		(34,633		)		(101,026		)		(183,632		)		(49,974		)
Net income		$	91,699			$	103,192			$	302,556			$	543,411			$	148,978
Weighted average common shares outstanding:
Basic		39,442				39,315				39,442				39,413				39,264
Diluted		39,661				39,526				39,688				39,623				39,396
Net income per common share:
Basic		$	2.32			$	2.62			$	7.67			$	13.79			$	3.79
Diluted		$	2.31			$	2.61			$	7.62			$	13.71			$	3.78
Dividends declared per common share		$	0.10			$	1.70			$	2.10			$	2.30			$	1.90

Wood Products Segment Statements of Operations (in thousands, except percentages) (unaudited)
		Three Months Ended												Nine Months Ended
		September 30								June 30, 2021				September 30
		2021				2020								2021				2020
Segment sales		$	497,316			$	363,674			$	594,569			$	1,524,220			$	965,240
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)		348,167				268,930				353,916				1,010,691				782,590
Depreciation and amortization		13,914				13,938				14,128				41,388				57,472
Selling and distribution expenses		9,124				9,684				8,835				26,958				25,220
General and administrative expenses		4,023				5,084				3,872				12,214				11,547
Loss on curtailment of facility		—				—				—				—				1,707
Other (income) expense, net		32				3				57				100				(168		)
		375,260				297,639				380,808				1,091,351				878,368
Segment income		$	122,056			$	66,035			$	213,761			$	432,869			$	86,872
		(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)		70.0		%		73.9		%		59.5		%		66.3		%		81.1		%
Depreciation and amortization		2.8		%		3.8		%		2.4		%		2.7		%		6.0		%
Selling and distribution expenses		1.8		%		2.7		%		1.5		%		1.8		%		2.6		%
General and administrative expenses		0.8		%		1.4		%		0.7		%		0.8		%		1.2		%
Loss on curtailment of facility		—		%		—		%		—		%		—		%		0.2		%
Other (income) expense, net		—		%		—		%		—		%		—		%		—		%
		75.5		%		81.8		%		64.0		%		71.6		%		91.0		%
Segment income		24.5		%		18.2		%		36.0		%		28.4		%		9.0		%

Building Materials Distribution Segment Statements of Operations (in thousands, except percentages) (unaudited)
		Three Months Ended												Nine Months Ended
		September 30								June 30, 2021				September 30
		2021				2020								2021				2020
Segment sales		$	1,721,244			$	1,437,683			$	2,172,744			$	5,528,765			$	3,621,940
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)		1,585,804				1,201,722				1,832,929				4,806,084				3,101,948
Depreciation and amortization		6,013				5,686				5,917				17,749				16,614
Selling and distribution expenses		105,342				113,146				121,901				339,163				300,527
General and administrative expenses		7,816				9,282				7,230				24,627				22,623
Other (income) expense, net		(296		)		(54		)		(1,571		)		(1,980		)		(185		)
		1,704,679				1,329,782				1,966,406				5,185,643				3,441,527
Segment income		$	16,565			$	107,901			$	206,338			$	343,122			$	180,413
		(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)		92.1		%		83.6		%		84.4		%		86.9		%		85.6		%
Depreciation and amortization		0.3		%		0.4		%		0.3		%		0.3		%		0.5		%
Selling and distribution expenses		6.1		%		7.9		%		5.6		%		6.1		%		8.3		%
General and administrative expenses		0.5		%		0.6		%		0.3		%		0.4		%		0.6		%
Other (income) expense, net		—		%		—		%		(0.1		)%		—		%		—		%
		99.0		%		92.5		%		90.5		%		93.8		%		95.0		%
Segment income		1.0		%		7.5		%		9.5		%		6.2		%		5.0		%

Segment Information (in thousands) (unaudited)
		Three Months Ended												Nine Months Ended
		September 30								June 30, 2021				September 30
		2021				2020								2021				2020
Segment sales
Wood Products		$	497,316			$	363,674			$	594,569			$	1,524,220			$	965,240
Building Materials Distribution		1,721,244				1,437,683				2,172,744				5,528,765				3,621,940
Intersegment eliminations		(339,109		)		(212,044		)		(324,152		)		(909,057		)		(584,573		)
Total net sales		$	1,879,451			$	1,589,313			$	2,443,161			$	6,143,928			$	4,002,607
Segment income
Wood Products		$	122,056			$	66,035			$	213,761			$	432,869			$	86,872
Building Materials Distribution		16,565				107,901				206,338				343,122				180,413
Total segment income		138,621				173,936				420,099				775,991				267,285
Unallocated corporate costs		(9,235		)		(15,364		)		(10,324		)		(31,569		)		(31,396		)
Income from operations		$	129,386			$	158,572			$	409,775			$	744,422			$	235,889
Segment EBITDA (a)
Wood Products		$	135,970			$	79,973			$	227,889			$	474,257			$	144,344
Building Materials Distribution		22,578				113,587				212,255				360,871				197,027

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

Boise Cascade Company Consolidated Balance Sheets (in thousands) (unaudited)
		September 30, 2021			December 31, 2020
ASSETS
Current
Cash and cash equivalents		$	786,886		$	405,382
Receivables
Trade, less allowances of $3,393 and $1,111		473,727			375,865
Related parties		180			201
Other		17,016			15,067
Inventories		644,370			503,480
Prepaid expenses and other		15,812			8,860
Total current assets		1,937,991			1,308,855
Property and equipment, net		459,254			461,456
Operating lease right-of-use assets		64,678			62,447
Finance lease right-of-use assets		27,549			29,523
Timber deposits		9,333			11,761
Goodwill		60,382			60,382
Intangible assets, net		15,657			16,574
Deferred income taxes		6,969			7,460
Other assets		6,552			7,260
Total assets		$	2,588,365		$	1,965,718

Boise Cascade Company Consolidated Balance Sheets (continued) (in thousands, except per-share data) (unaudited)
		September 30, 2021					December 31, 2020
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade		$		412,097			$		307,653
Related parties		1,184					1,199
Accrued liabilities
Compensation and benefits		118,926					118,400
Income taxes payable		109					8,101
Interest payable		5,004					8,477
Other		162,975					80,172
Total current liabilities		700,295					524,002
Debt
Long-term debt		444,419					443,792
Other
Compensation and benefits		28,600					25,951
Operating lease liabilities, net of current portion		57,468					56,001
Finance lease liabilities, net of current portion		30,263					31,607
Deferred income taxes		5,720					18,263
Other long-term liabilities		15,995					15,303
		138,046					147,125
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, 44,698 and 44,568 shares issued, respectively		447					446
Treasury stock, 5,367 shares at cost		(138,909			)		(138,909			)
Additional paid-in capital		541,022					538,006
Accumulated other comprehensive loss		(1,088			)		(1,078			)
Retained earnings		904,133					452,334
Total stockholders' equity		1,305,605					850,799
Total liabilities and stockholders' equity		$		2,588,365			$		1,965,718

Boise Cascade Company Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Nine Months Ended September 30
		2021			2020
Cash provided by (used for) operations
Net income		$	543,411		$	148,978
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other		61,559			76,784
Stock-based compensation		5,684			5,839
Pension expense		57			1,492
Deferred income taxes		(12,017)			(2,460)
Change in fair value of interest rate swaps		(1,058)			2,681
Loss on curtailment of facility (excluding severance)		—			1,476
Other		928			205
Loss on extinguishment of debt		—			13,968
Decrease (increase) in working capital
Receivables		(99,881)			(205,995)
Inventories		(142,171)			42,904
Prepaid expenses and other		(7,007)			(9,641)
Accounts payable and accrued liabilities		186,090			213,935
Pension contributions		(229)			(12,659)
Income taxes payable		(7,927)			17,121
Other		(348)			(857)
Net cash provided by operations		527,091			293,771
Cash provided by (used for) investment
Expenditures for property and equipment		(51,460)			(46,994)
Proceeds from sales of assets and other		636			563
Net cash used for investment		(50,824)			(46,431)
Cash provided by (used for) financing
Borrowings of long-term debt, including revolving credit facility		28,000			400,000
Payments of long-term debt, including revolving credit facility		(28,000)			(405,774)
Payments of deferring financing costs		—			(6,222)
Dividends paid on common stock		(90,969)			(12,553)
Tax withholding payments on stock-based awards		(2,729)			(3,309)
Other		(1,065)			(784)
Net cash used for financing		(94,763)			(28,642)
Net increase in cash and cash equivalents		381,504			218,698
Balance at beginning of the period		405,382			285,237
Balance at end of the period		$	786,886		$	503,935

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 2020 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.

(a)	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 and loss on extinguishment of debt. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended September 30, 2021 and 2020, and June 30, 2021, and the nine months ended September 30, 2021 and 2020:
		Three Months Ended												Nine Months Ended
		September 30								June 30, 2021				September 30
		2021				2020								2021				2020
		(in thousands)
Net income		$	91,699			$	103,192			$	302,556			$	543,411			$	148,978
Interest expense		6,279				7,002				6,347				18,501				20,056
Interest income		(63)				(113)				(51)				(173)				(958)
Income tax provision		31,158				34,633				101,026				183,632				49,974
Depreciation and amortization		20,299				20,029				20,420				60,258				75,260
EBITDA		149,372				164,743				430,298				805,629				293,310
Change in fair value of interest rate swaps		(59)				(147)				25				(1,058)				2,681
Loss on extinguishment of debt		—				13,968				—				—				13,968
Adjusted EBITDA		$	149,313			$	178,564			$	430,323			$	804,571			$	309,959

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended September 30, 2021 and 2020, and June 30, 2021, and the nine months ended September 30, 2021 and 2020:
		Three Months Ended												Nine Months Ended
		September 30								June 30, 2021				September 30
		2021				2020								2021				2020
		(in thousands)
Wood Products
Segment income		$	122,056			$	66,035			$	213,761			$	432,869			$	86,872
Depreciation and amortization		13,914				13,938				14,128				41,388				57,472
EBITDA		$	135,970			$	79,973			$	227,889			$	474,257			$	144,344
Building Materials Distribution
Segment income		$	16,565			$	107,901			$	206,338			$	343,122			$	180,413
Depreciation and amortization		6,013				5,686				5,917				17,749				16,614
EBITDA		$	22,578			$	113,587			$	212,255			$	360,871			$	197,027
Corporate
Unallocated corporate costs		$	(9,235)			$	(15,364)			$	(10,324)			$	(31,569)			$	(31,396)
Foreign currency exchange gain (loss)		(353)				265				147				(52)				(199)
Pension expense (excluding service costs)		(19)				(302)				(19)				(57)				(991)
Change in fair value of interest rate swaps		59				147				(25)				1,058				(2,681)
Loss on extinguishment of debt		—				(13,968)				—				—				(13,968)
Depreciation and amortization		372				405				375				1,121				1,174
EBITDA		(9,176)				(28,817)				(9,846)				(29,499)				(48,061)
Change in fair value of interest rate swaps		(59)				(147)				25				(1,058)				2,681
Loss on extinguishment of debt		—				13,968				—				—				13,968
Corporate adjusted EBITDA		$	(9,235)			$	(14,996)			$	(9,821)			$	(30,557)			$	(31,412)
Total Company adjusted EBITDA		$	149,313			$	178,564			$	430,323			$	804,571			$	309,959

 

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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 are Boise Cascade's earnings for Q3 2021?

Boise Cascade reported net income of $91.7 million, or $2.31 per share, for Q3 2021.

How much did Boise Cascade's sales increase in Q3 2021?

Sales increased by 18% year-over-year to $1.9 billion in Q3 2021.

What dividends did Boise Cascade declare in 2021?

Boise Cascade declared a quarterly dividend of $0.12 per share and a supplemental dividend of $3.00 per share.

How did the Wood Products segment perform in Q3 2021?

The Wood Products segment saw sales increase by 37% and segment income rise by 85% compared to Q3 2020.

What challenges did Boise Cascade face in Q3 2021?

The company faced challenges like a decline in Building Materials Distribution segment income and potential impacts from COVID-19 variants.