We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Boise Cascade LLC | NYSE:BCC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
2.21 | 1.64% | 137.29 | 137.45 | 133.7796 | 135.41 | 252,021 | 00:58:58 |
Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $104.1 million, or $2.61 per share, on sales of $1.6 billion for the first quarter ended March 31, 2024, compared with net income of $96.7 million, or $2.43 per share, on sales of $1.5 billion for the first quarter ended March 31, 2023.
"I am pleased with the strong financial results that our team delivered during the first quarter. As expected, it was a period influenced by seasonal factors and the relative strength of new single-family starts," stated Nate Jorgensen, CEO. "As we enter the second quarter, economic and geopolitical uncertainties are prevalent, and the extent of the potential impact on the broader economy and residential construction activity is unknown. Despite the near-term environment, an undersupply of single-family homes remains, and I have great confidence in our team as we stay focused on the effective deployment of our outstanding balance sheet in support of our stakeholders."
First Quarter 2024 Highlights
1Q 2024
1Q 2023
% change
(in thousands, except per-share data and percentages)
Consolidated Results
Sales
$
1,645,420
$
1,544,329
7
%
Net income
104,124
96,733
8
%
Net income per common share - diluted
2.61
2.43
7
%
Adjusted EBITDA 1
168,496
158,674
6
%
Segment Results
Wood Products sales
$
468,928
$
437,428
7
%
Wood Products income
71,238
69,395
3
%
Wood Products EBITDA 1
95,622
93,185
3
%
Building Materials Distribution sales
1,505,021
1,379,242
9
%
Building Materials Distribution income
72,463
69,685
4
%
Building Materials Distribution EBITDA 1
83,570
76,755
9
%
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.
In first quarter 2024, total U.S. housing starts and single-family housing starts increased 1% and 27%, respectively, 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), increased $31.5 million, or 7%, to $468.9 million for the three months ended March 31, 2024, from $437.4 million for the three months ended March 31, 2023. The increase in sales was driven by higher sales volumes for I-joists and LVL (collectively referred to as EWP), as well as higher plywood sales prices. These increases were offset partially by decreased sales prices for EWP, as well as lower plywood sales volumes and other sales related to residual byproducts and lumber. Wood Products' segment income increased $1.8 million to $71.2 million for the three months ended March 31, 2024, from $69.4 million for the three months ended March 31, 2023. The increase in segment income was due primarily to higher EWP sales volumes and higher plywood sales prices. These increases in segment income were offset partially by lower EWP prices and higher wood fiber costs.
Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:
1Q 2024 vs. 1Q 2023
1Q 2024 vs. 4Q 2023
Average Net Selling Prices
LVL
(8)%
(4)%
I-joists
(7)%
(4)%
Plywood
3%
1%
Sales Volumes
LVL
31%
16%
I-joists
46%
5%
Plywood
(8)%
2%
Building Materials Distribution
BMD's sales increased $125.8 million, or 9%, to $1,505.0 million for the three months ended March 31, 2024, from $1,379.2 million for the three months ended March 31, 2023. Compared with the same quarter in the prior year, the increase in sales was driven by sales volume increases of 12%, offset partially by sales price decreases of 3%. By product line, commodity sales increased 1%, general line product sales increased 16%, and EWP sales (substantially all of which are sourced through our Wood Products segment) increased 12%. BMD segment income increased $2.8 million to $72.5 million for the three months ended March 31, 2024, from $69.7 million for the three months ended March 31, 2023. The increase in segment income was driven by a gross margin increase of $22.9 million, resulting primarily from higher sales volumes and improved margins on general line and commodity products. The gross margin improvement was offset partially by increased selling and distribution expenses and depreciation and amortization expense of $16.5 million and $4.0 million, respectively.
Balance Sheet and Liquidity
Boise Cascade ended first quarter 2024 with $890.2 million of cash and cash equivalents and $395.7 million of undrawn committed bank line availability, for total available liquidity of $1,286.0 million. The Company had $445.5 million of outstanding debt at March 31, 2024.
Capital Allocation
We expect capital expenditures in 2024, excluding potential acquisition spending, to total approximately $250 million to $270 million.
On May 2, 2024, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on June 17, 2024, to stockholders of record on June 3, 2024.
For the three months ended March 31, 2024, the Company paid $27.0 million for the repurchase of 205,938 shares of our common stock. As of March 31, 2024, approximately 1.7 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 generally consistent with 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 combined with elevated mortgage rates. However, with low unemployment and an undersupply of existing housing stock available for sale, new residential construction is expected to remain an important source of supply for homebuyers. Recent pressures on multi-family starts are expected to continue due to increased capital costs for developers combined with cooling rents and elevated supply. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending. In 2023, year-over-year growth rates in renovation spending moderated due to economic uncertainty and higher borrowing costs. While home improvement spending is expected to remain healthy compared to history, recent industry forecasts project mid-single-digit declines in 2024. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, 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 first quarter earnings on Tuesday, May 7, 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
March 31
December 31, 2023
2024
2023
Sales
$
1,645,420
$
1,544,329
$
1,644,256
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)
1,307,439
1,230,635
1,310,062
Depreciation and amortization
35,850
31,186
39,085
Selling and distribution expenses
144,110
128,788
143,796
General and administrative expenses
25,117
26,463
30,241
Other (income) expense, net
(78
)
(345
)
(104
)
1,512,438
1,416,727
1,523,080
Income from operations
132,982
127,602
121,176
Foreign currency exchange gain (loss)
(299
)
(73
)
362
Pension expense (excluding service costs)
(37
)
(41
)
(41
)
Interest expense
(6,070
)
(6,361
)
(6,445
)
Interest income
10,597
9,685
13,142
Change in fair value of interest rate swaps
(220
)
(804
)
(993
)
3,971
2,406
6,025
Income before income taxes
136,953
130,008
127,201
Income tax provision
(32,829
)
(33,275
)
(29,666
)
Net income
$
104,124
$
96,733
$
97,535
Weighted average common shares outstanding:
Basic
39,608
39,593
39,653
Diluted
39,956
39,838
40,020
Net income per common share:
Basic
$
2.63
$
2.44
$
2.46
Diluted
$
2.61
$
2.43
$
2.44
Dividends declared per common share
$
0.20
$
0.15
$
5.20
Wood Products Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
Three Months Ended
March 31
December 31, 2023
2024
2023
Segment sales
$
468,928
$
437,428
$
449,676
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)
357,721
327,739
340,845
Depreciation and amortization
24,384
23,790
28,565
Selling and distribution expenses
10,551
11,678
11,215
General and administrative expenses
5,020
5,178
4,844
Other (income) expense, net
14
(352
)
79
397,690
368,033
385,548
Segment income
$
71,238
$
69,395
$
64,128
(percentage of sales)
Segment sales
100.0
%
100.0
%
100.0
%
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)
76.3
%
74.9
%
75.8
%
Depreciation and amortization
5.2
%
5.4
%
6.4
%
Selling and distribution expenses
2.3
%
2.7
%
2.5
%
General and administrative expenses
1.1
%
1.2
%
1.1
%
Other (income) expense, net
—
%
(0.1
%)
—
%
84.8
%
84.1
%
85.7
%
Segment income
15.2
%
15.9
%
14.3
%
Building Materials Distribution Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
Three Months Ended
March 31
December 31, 2023
2024
2023
Segment sales
$
1,505,021
$
1,379,242
$
1,492,614
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)
1,278,421
1,175,550
1,265,493
Depreciation and amortization
11,107
7,070
10,116
Selling and distribution expenses
133,614
117,110
132,635
General and administrative expenses
9,534
10,030
14,100
Other (income) expense, net
(118
)
(203
)
(227
)
1,432,558
1,309,557
1,422,117
Segment income
$
72,463
$
69,685
$
70,497
(percentage of sales)
Segment sales
100.0
%
100.0
%
100.0
%
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)
84.9
%
85.2
%
84.8
%
Depreciation and amortization
0.7
%
0.5
%
0.7
%
Selling and distribution expenses
8.9
%
8.5
%
8.9
%
General and administrative expenses
0.6
%
0.7
%
0.9
%
Other (income) expense, net
—
%
—
%
—
%
95.2
%
94.9
%
95.3
%
Segment income
4.8
%
5.1
%
4.7
%
Segment Information
(in thousands) (unaudited)
Three Months Ended
March 31
December 31, 2023
2024
2023
Segment sales
Wood Products
$
468,928
$
437,428
$
449,676
Building Materials Distribution
1,505,021
1,379,242
1,492,614
Intersegment eliminations
(328,529
)
(272,341
)
(298,034
)
Total net sales
$
1,645,420
$
1,544,329
$
1,644,256
Segment income
Wood Products
$
71,238
$
69,395
$
64,128
Building Materials Distribution
72,463
69,685
70,497
Total segment income
143,701
139,080
134,625
Unallocated corporate costs
(10,719
)
(11,478
)
(13,449
)
Income from operations
$
132,982
$
127,602
$
121,176
Segment EBITDA
Wood Products
$
95,622
$
93,185
$
92,693
Building Materials Distribution
83,570
76,755
80,613
See accompanying summary notes to consolidated financial statements and segment information.
Boise Cascade Company
Consolidated Balance Sheets
(in thousands) (unaudited)
March 31, 2024
December 31, 2023
ASSETS
Current
Cash and cash equivalents
$
890,247
$
949,574
Receivables
Trade, less allowances of $4,020 and $3,278
480,579
352,780
Related parties
225
181
Other
13,476
20,740
Inventories
814,596
712,369
Prepaid expenses and other
17,549
21,170
Total current assets
2,216,672
2,056,814
Property and equipment, net
934,286
932,633
Operating lease right-of-use assets
61,378
62,868
Finance lease right-of-use assets
24,172
24,003
Timber deposits
6,898
7,208
Goodwill
170,254
170,254
Intangible assets, net
185,836
190,743
Deferred income taxes
4,748
4,854
Other assets
10,184
9,269
Total assets
$
3,614,428
$
3,458,646
Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data) (unaudited)
March 31, 2024
December 31, 2023
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade
$
460,244
$
310,175
Related parties
1,281
1,501
Accrued liabilities
Compensation and benefits
69,308
149,561
Income taxes payable
21,774
—
Interest payable
5,083
9,958
Other
127,036
122,921
Total current liabilities
684,726
594,116
Debt
Long-term debt
445,502
445,280
Other
Compensation and benefits
39,223
40,189
Operating lease liabilities, net of current portion
54,850
56,425
Finance lease liabilities, net of current portion
28,347
28,084
Deferred income taxes
87,078
82,014
Other long-term liabilities
17,500
16,874
226,998
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, 45,127 and 44,983 shares issued, respectively
451
450
Treasury stock, 5,649 and 5,443 shares at cost, respectively
(172,377
)
(145,335
)
Additional paid-in capital
553,821
560,697
Accumulated other comprehensive loss
(509
)
(517
)
Retained earnings
1,875,816
1,780,369
Total stockholders' equity
2,257,202
2,195,664
Total liabilities and stockholders' equity
$
3,614,428
$
3,458,646
Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands) (unaudited)
Three Months Ended March 31
2024
2023
Cash provided by (used for) operations
Net income
$
104,124
$
96,733
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other
36,621
31,853
Stock-based compensation
4,105
3,324
Pension expense
37
41
Deferred income taxes
5,062
3,393
Change in fair value of interest rate swaps
220
804
Other
55
(518
)
Decrease (increase) in working capital, net of acquisitions
Receivables
(119,235
)
(111,253
)
Inventories
(103,331
)
(41,247
)
Prepaid expenses and other
(1,689
)
(1,428
)
Accounts payable and accrued liabilities
75,041
36,181
Income taxes payable
25,834
28,631
Other
618
1,478
Net cash provided by operations
27,462
47,992
Cash provided by (used for) investment
Expenditures for property and equipment
(34,330
)
(30,063
)
Acquisitions of businesses and facilities, net of cash acquired
(3,387
)
—
Proceeds from sales of assets and other
559
565
Net cash used for investment
(37,158
)
(29,498
)
Cash provided by (used for) financing
Treasury stock purchased
(26,971
)
(1,482
)
Dividends paid on common stock
(11,205
)
(8,258
)
Tax withholding payments on stock-based awards
(10,980
)
(5,926
)
Other
(475
)
(451
)
Net cash used for financing
(49,631
)
(16,117
)
Net increase (decrease) in cash and cash equivalents
(59,327
)
2,377
Balance at beginning of the period
949,574
998,344
Balance at end of the period
$
890,247
$
1,000,721
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 three months ended March 31, 2024 and 2023, and December 31, 2023:
Three Months Ended
March 31
December 31, 2023
2024
2023
(in thousands)
Net income
$
104,124
$
96,733
$
97,535
Interest expense
6,070
6,361
6,445
Interest income
(10,597
)
(9,685
)
(13,142
)
Income tax provision
32,829
33,275
29,666
Depreciation and amortization
35,850
31,186
39,085
EBITDA
168,276
157,870
159,589
Change in fair value of interest rate swaps
220
804
993
Adjusted EBITDA
$
168,496
$
158,674
$
160,582
The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended March 31, 2024 and 2023, and December 31, 2023:
Three Months Ended
March 31
December 31, 2023
2024
2023
(in thousands)
Wood Products
Segment income
$
71,238
$
69,395
$
64,128
Depreciation and amortization
24,384
23,790
28,565
EBITDA
$
95,622
$
93,185
$
92,693
Building Materials Distribution
Segment income
$
72,463
$
69,685
$
70,497
Depreciation and amortization
11,107
7,070
10,116
EBITDA
$
83,570
$
76,755
$
80,613
Corporate
Unallocated corporate costs
$
(10,719
)
$
(11,478
)
$
(13,449
)
Foreign currency exchange gain (loss)
(299
)
(73
)
362
Pension expense (excluding service costs)
(37
)
(41
)
(41
)
Change in fair value of interest rate swaps
(220
)
(804
)
(993
)
Depreciation and amortization
359
326
404
EBITDA
(10,916
)
(12,070
)
(13,717
)
Change in fair value of interest rate swaps
220
804
993
Corporate adjusted EBITDA
$
(10,696
)
$
(11,266
)
$
(12,724
)
Total Company adjusted EBITDA
$
168,496
$
158,674
$
160,582
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506802952/en/
Investor Relations Contact - Chris Forrey investor@bc.com
Media Contact - Lisa Tschampl mediarelations@bc.com
1 Year Boise Cascade Chart |
1 Month Boise Cascade Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions