Boise Cascade Company Reports Third Quarter 2024 Results

Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $91.0 million, or $2.33 per share, on sales of $1.7 billion for the third quarter ended September 30, 2024, compared with net income of $143.1 million, or $3.58 per share, on sales of $1.8 billion for the third quarter ended September 30, 2023.

"In what has proven to be a moderate demand environment, once again, we were able to deliver good financial results in the third quarter. We could not have done this without the tremendous efforts of our associates and our unique combination of best-in-class engineered wood products and an unmatched nationwide wholesale distribution network,” stated Nate Jorgensen, CEO. “In addition, we continue to progress on our key strategic investment initiatives and thoughtfully deploy capital to shareholders. Looking forward, we expect normal seasonality through the winter months, and are well positioned to serve and support our customer and vendor partners as changes in demand dictate."

Third Quarter 2024 Highlights

 

 

3Q 2024

3Q 2023

% change

 

(in thousands, except per-share data and percentages)

Consolidated Results

 

 

 

Sales

$

1,713,724

$

1,834,441

(7

)%

Net income

 

91,038

 

143,068

(36

)%

Net income per common share - diluted

 

2.33

 

3.58

(35

)%

Adjusted EBITDA 1

 

154,480

 

216,465

(29

)%

Segment Results

 

 

 

Wood Products sales

$

453,896

$

515,225

(12

)%

Wood Products income

 

53,853

 

99,574

(46

)%

Wood Products EBITDA 1

 

77,404

 

122,924

(37

)%

Building Materials Distribution sales

 

1,567,466

 

1,670,296

(6

)%

Building Materials Distribution income

 

74,821

 

97,076

(23

)%

Building Materials Distribution EBITDA 1

 

87,749

 

104,857

(16

)%

1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.

In third quarter 2024, total U.S. housing starts and single-family housing starts decreased 3% and 1%, respectively, compared to the same period in 2023. On a year-to-date basis through September 2024, total housing starts decreased 3%, while single-family housing starts increased 10%, 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 $61.3 million, or 12%, to $453.9 million for the three months ended September 30, 2024, from $515.2 million for the three months ended September 30, 2023. The decrease in sales was driven by lower plywood sales prices, as well as lower sales prices for LVL and I-joists (collectively referred to as EWP). In addition, lower sales volumes for I-joists decreased sales, while sales volumes for LVL and plywood were flat. Other sales related to lumber and residual byproducts also decreased.

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

 

3Q 2024 vs. 3Q 2023

3Q 2024 vs. 2Q 2024

 

 

 

Average Net Selling Prices

 

 

LVL

(5)%

(2)%

I-joists

(6)%

(2)%

Plywood

(13)%

(8)%

Sales Volumes

 

 

LVL

—%

(2)%

I-joists

(8)%

(10)%

Plywood

—%

2%

Wood Products' segment income decreased $45.7 million to $53.9 million for the three months ended September 30, 2024, from $99.6 million for the three months ended September 30, 2023. The decrease in segment income was due primarily to lower EWP and plywood sales prices, as well as higher conversion costs. In addition, lower I-joist sales volumes contributed to the decrease in segment income.

Building Materials Distribution

BMD's sales decreased $102.8 million, or 6%, to $1,567.5 million for the three months ended September 30, 2024, from $1,670.3 million for the three months ended September 30, 2023. Compared with the same quarter in the prior year, the overall decrease in sales was driven by a sales price decrease of 6%, as sales volumes were flat. Excluding the impact of the BROSCO acquisition on October 2, 2023, sales would have decreased by 9%. By product line, commodity sales decreased 12%, general line product sales increased 4%, and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased 14%.

BMD segment income decreased $22.3 million to $74.8 million for the three months ended September 30, 2024, from $97.1 million for the three months ended September 30, 2023. The decrease in segment income was driven by increased selling and distribution expenses and depreciation and amortization expense of $10.0 million and $5.1 million, respectively. In addition, gross margin decreased $7.7 million, driven by lower margins on commodity products and EWP, offset partially by improved margins on general line products.

Balance Sheet and Liquidity

Boise Cascade ended third quarter 2024 with $761.6 million of cash and cash equivalents and $395.7 million of undrawn committed bank line availability, for total available liquidity of $1,157.3 million. The Company had $450.0 million of outstanding debt at September 30, 2024.

Capital Allocation

We expect capital expenditures in 2024, excluding potential acquisition spending, to total approximately $220 million to $240 million. In addition, we expect capital expenditures in 2025 to total approximately $200 million to $220 million. These levels of capital expenditures could increase or decrease as a result of several factors, including acquisitions, efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

For the nine months ended September 30, 2024, the Company paid $220.5 million in common stock dividends. On October 30, 2024, our board of directors declared a quarterly dividend of $0.21 per share on our common stock, payable on December 18, 2024, to stockholders of record on December 2, 2024.

For the three and nine months ended September 30, 2024, the Company paid $69.7 million and $158.5 million, respectively, for the repurchase of 554,500 and 1,232,345 shares of our common stock, respectively. Furthermore, in October 2024, the Company repurchased an additional 50,000 shares of our common stock at a cost of $6.9 million. On October 30, 2024, our board of directors authorized the repurchase of an additional 1.4 million shares of our common stock. This increase is in addition to the remaining authorized shares under our prior common stock repurchase program. As of October 31, 2024, approximately 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. As reported by the U.S. Census Bureau, housing starts were 1.42 million in 2023. Current industry forecasts for U.S. housing starts are approximately 1.35 million in 2024 followed by 2025 starts at or modestly above 1.40 million. For the nine months ended September 2024, single-family starts are outpacing 2023 levels by 10% whereas multi-family starts have declined sharply from historic levels due to increased capital costs for developers, combined with historic levels of multi-family unit completions in 2024. Home affordability remains a challenge for many consumers due to home prices and the cost of financing, with the level of mortgage rates also limiting the supply of existing housing stock available for sale. Large homebuilders are addressing affordability challenges by reducing home sizes and plan complexity, as well as offering mortgage rate buydowns. New residential construction will continue to be an important source of supply for the demand created by undersupplied housing, favorable demographic trends, and low unemployment. We expect 2025 to reflect modest growth in home improvement spending, as 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. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, home size, and other factors will 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 third quarter earnings on Tuesday, November 5, 2024, at 10 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

Nine Months Ended

 

September 30

June 30, 2024

September 30

 

2024

2023

2024

2023

 

 

 

 

 

 

Sales

$

1,713,724

 

$

1,834,441

 

$

1,797,670

 

$

5,156,814

 

$

5,193,989

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

1,375,719

 

 

1,442,178

 

 

1,440,680

 

 

4,123,838

 

 

4,099,249

 

Depreciation and amortization

 

36,861

 

 

31,474

 

 

34,367

 

 

107,078

 

 

93,382

 

Selling and distribution expenses

 

157,522

 

 

147,714

 

 

149,783

 

 

451,415

 

 

415,707

 

General and administrative expenses

 

26,172

 

 

27,583

 

 

25,943

 

 

77,232

 

 

84,193

 

Other (income) expense, net

 

94

 

 

(141

)

 

(84

)

 

(68

)

 

(1,752

)

 

 

1,596,368

 

 

1,648,808

 

 

1,650,689

 

 

4,759,495

 

 

4,690,779

 

 

 

 

 

 

 

Income from operations

 

117,356

 

 

185,633

 

 

146,981

 

 

397,319

 

 

503,210

 

 

 

 

 

 

 

Foreign currency exchange gain (loss)

 

300

 

 

(602

)

 

(104

)

 

(103

)

 

(355

)

Pension expense (excluding service costs)

 

(37

)

 

(40

)

 

(37

)

 

(111

)

 

(122

)

Interest expense

 

(6,082

)

 

(6,351

)

 

(6,105

)

 

(18,257

)

 

(19,051

)

Interest income

 

10,168

 

 

13,760

 

 

10,543

 

 

31,308

 

 

34,964

 

Change in fair value of interest rate swaps

 

(866

)

 

(327

)

 

(487

)

 

(1,573

)

 

(798

)

 

 

3,483

 

 

6,440

 

 

3,810

 

 

11,264

 

 

14,638

 

 

 

 

 

 

 

Income before income taxes

 

120,839

 

 

192,073

 

 

150,791

 

 

408,583

 

 

517,848

 

Income tax provision

 

(29,801

)

 

(49,005

)

 

(38,499

)

 

(101,129

)

 

(131,727

)

Net income

$

91,038

 

$

143,068

 

$

112,292

 

$

307,454

 

$

386,121

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

Basic

 

38,848

 

 

39,675

 

 

39,412

 

 

39,286

 

 

39,648

 

Diluted

 

39,063

 

 

39,983

 

 

39,608

 

 

39,521

 

 

39,849

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

Basic

$

2.34

 

$

3.61

 

$

2.85

 

$

7.83

 

$

9.74

 

Diluted

$

2.33

 

$

3.58

 

$

2.84

 

$

7.78

 

$

9.69

 

 

 

 

 

 

 

Dividends declared per common share

$

5.21

 

$

0.20

 

$

0.20

 

$

5.61

 

$

3.50

 

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

 

 

Three Months Ended

Nine Months Ended

 

September 30

June 30, 2024

September 30

 

2024

2023

2024

2023

 

 

 

 

 

 

Segment sales

$

453,896

 

$

515,225

 

$

489,823

 

$

1,412,647

 

$

1,482,926

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

361,313

 

 

376,754

 

 

378,920

 

 

1,097,954

 

 

1,091,900

 

Depreciation and amortization

 

23,551

 

 

23,350

 

 

22,270

 

 

70,205

 

 

70,145

 

Selling and distribution expenses

 

10,587

 

 

10,786

 

 

11,114

 

 

32,252

 

 

33,901

 

General and administrative expenses

 

4,640

 

 

5,018

 

 

4,606

 

 

14,266

 

 

15,560

 

Other (income) expense, net

 

(48

)

 

(257

)

 

133

 

 

99

 

 

(1,584

)

 

 

400,043

 

 

415,651

 

 

417,043

 

 

1,214,776

 

 

1,209,922

 

 

 

 

 

 

 

Segment income

$

53,853

 

$

99,574

 

$

72,780

 

$

197,871

 

$

273,004

 

 

 

 

 

 

 

 

(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)

 

79.6

%

 

73.1

%

 

77.4

%

 

77.7

%

 

73.6

%

Depreciation and amortization

 

5.2

%

 

4.5

%

 

4.5

%

 

5.0

%

 

4.7

%

Selling and distribution expenses

 

2.3

%

 

2.1

%

 

2.3

%

 

2.3

%

 

2.3

%

General and administrative expenses

 

1.0

%

 

1.0

%

 

0.9

%

 

1.0

%

 

1.0

%

Other (income) expense, net

 

—

%

 

—

%

 

—

%

 

—

%

 

(0.1

%)

 

 

88.1

%

 

80.7

%

 

85.1

%

 

86.0

%

 

81.6

%

 

 

 

 

 

 

Segment income

 

11.9

%

 

19.3

%

 

14.9

%

 

14.0

%

 

18.4

%

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

 

 

Three Months Ended

Nine Months Ended

 

September 30

June 30, 2024

September 30

 

2024

2023

2024

2023

 

 

 

 

 

 

Segment sales

$

1,567,466

 

$

1,670,296

 

$

1,655,221

 

$

4,727,708

 

$

4,686,076

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

1,322,001

 

 

1,417,153

 

 

1,409,510

 

 

4,009,932

 

 

3,983,718

 

Depreciation and amortization

 

12,928

 

 

7,781

 

 

11,741

 

 

35,776

 

 

22,237

 

Selling and distribution expenses

 

146,994

 

 

136,982

 

 

138,716

 

 

419,324

 

 

381,878

 

General and administrative expenses

 

10,580

 

 

11,195

 

 

10,070

 

 

30,184

 

 

33,314

 

Other (income) expense, net

 

142

 

 

109

 

 

(216

)

 

(192

)

 

(382

)

 

 

1,492,645

 

 

1,573,220

 

 

1,569,821

 

 

4,495,024

 

 

4,420,765

 

 

 

 

 

 

 

Segment income

$

74,821

 

$

97,076

 

$

85,400

 

$

232,684

 

$

265,311

 

 

 

 

 

 

 

 

(percentage of sales)

 

 

 

 

 

 

Segment sales

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

Materials, labor, and other operating expenses (excluding depreciation)

 

84.3

%

 

84.8

%

 

85.2

%

 

84.8

%

 

85.0

%

Depreciation and amortization

 

0.8

%

 

0.5

%

 

0.7

%

 

0.8

%

 

0.5

%

Selling and distribution expenses

 

9.4

%

 

8.2

%

 

8.4

%

 

8.9

%

 

8.1

%

General and administrative expenses

 

0.7

%

 

0.7

%

 

0.6

%

 

0.6

%

 

0.7

%

Other (income) expense, net

 

—

%

 

—

%

 

—

%

 

—

%

 

—

%

 

 

95.2

%

 

94.2

%

 

94.8

%

 

95.1

%

 

94.3

%

 

 

 

 

 

 

Segment income

 

4.8

%

 

5.8

%

 

5.2

%

 

4.9

%

 

5.7

%

Segment Information

(in thousands) (unaudited)

 

 

Three Months Ended

Nine Months Ended

 

September 30

June 30, 2024

September 30

 

2024

2023

2024

2023

Segment sales

 

 

 

 

 

Wood Products

$

453,896

 

$

515,225

 

$

489,823

 

$

1,412,647

 

$

1,482,926

 

Building Materials Distribution

 

1,567,466

 

 

1,670,296

 

 

1,655,221

 

 

4,727,708

 

 

4,686,076

 

Intersegment eliminations

 

(307,638

)

 

(351,080

)

 

(347,374

)

 

(983,541

)

 

(975,013

)

Total net sales

$

1,713,724

 

$

1,834,441

 

$

1,797,670

 

$

5,156,814

 

$

5,193,989

 

 

 

 

 

 

 

Segment income

 

 

 

 

 

Wood Products

$

53,853

 

$

99,574

 

$

72,780

 

$

197,871

 

$

273,004

 

Building Materials Distribution

 

74,821

 

 

97,076

 

 

85,400

 

 

232,684

 

 

265,311

 

Total segment income

 

128,674

 

 

196,650

 

 

158,180

 

 

430,555

 

 

538,315

 

Unallocated corporate costs

 

(11,318

)

 

(11,017

)

 

(11,199

)

 

(33,236

)

 

(35,105

)

Income from operations

$

117,356

 

$

185,633

 

$

146,981

 

$

397,319

 

$

503,210

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

Wood Products

$

77,404

 

$

122,924

 

$

95,050

 

$

268,076

 

$

343,149

 

Building Materials Distribution

 

87,749

 

 

104,857

 

 

97,141

 

 

268,460

 

 

287,548

 

 

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

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

 

 

September 30, 2024

December 31, 2023

 

 

ASSETS

 

 

 

 

 

Current

 

 

Cash and cash equivalents

$

761,599

$

949,574

Receivables

 

 

Trade, less allowances of $4,979 and $3,278

 

408,487

 

352,780

Related parties

 

289

 

181

Other

 

17,411

 

20,740

Inventories

 

792,356

 

712,369

Prepaid expenses and other

 

32,024

 

21,170

Total current assets

 

2,012,166

 

2,056,814

 

 

 

Property and equipment, net

 

985,808

 

932,633

Operating lease right-of-use assets

 

50,039

 

62,868

Finance lease right-of-use assets

 

22,925

 

24,003

Timber deposits

 

9,078

 

7,208

Goodwill

 

171,945

 

170,254

Intangible assets, net

 

177,028

 

190,743

Deferred income taxes

 

4,605

 

4,854

Other assets

 

8,033

 

9,269

Total assets

$

3,441,627

$

3,458,646

Boise Cascade Company

Consolidated Balance Sheets (continued)

(in thousands, except per-share data) (unaudited)

 

 

September 30, 2024

December 31, 2023

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

Current

 

 

Accounts payable

 

 

Trade

$

372,199

 

$

310,175

 

Related parties

 

2,216

 

 

1,501

 

Accrued liabilities

 

 

Compensation and benefits

 

122,000

 

 

149,561

 

Interest payable

 

5,086

 

 

9,958

 

Other

 

141,741

 

 

122,921

 

Total current liabilities

 

643,242

 

 

594,116

 

 

 

 

Debt

 

 

Long-term debt

 

445,945

 

 

445,280

 

 

 

 

Other

 

 

Compensation and benefits

 

42,864

 

 

40,189

 

Operating lease liabilities, net of current portion

 

43,550

 

 

56,425

 

Finance lease liabilities, net of current portion

 

27,492

 

 

28,084

 

Deferred income taxes

 

96,967

 

 

82,014

 

Other long-term liabilities

 

18,134

 

 

16,874

 

 

 

229,007

 

 

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, 6,675 and 5,443 shares at cost, respectively

 

(305,227

)

 

(145,335

)

Additional paid-in capital

 

561,223

 

 

560,697

 

Accumulated other comprehensive loss

 

(495

)

 

(517

)

Retained earnings

 

1,867,481

 

 

1,780,369

 

Total stockholders' equity

 

2,123,433

 

 

2,195,664

 

Total liabilities and stockholders' equity

$

3,441,627

 

$

3,458,646

 

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

 

 

Nine Months Ended September 30

 

2024

2023

Cash provided by (used for) operations

 

 

Net income

$

307,454

 

$

386,121

 

Items in net income not using (providing) cash

 

 

Depreciation and amortization, including deferred financing costs and other

 

109,531

 

 

95,516

 

Stock-based compensation

 

11,668

 

 

11,518

 

Pension expense

 

111

 

 

122

 

Deferred income taxes

 

15,096

 

 

4,351

 

Change in fair value of interest rate swaps

 

1,573

 

 

798

 

Other

 

322

 

 

(1,877

)

Decrease (increase) in working capital, net of acquisitions

 

 

Receivables

 

(51,192

)

 

(158,756

)

Inventories

 

(80,739

)

 

14,145

 

Prepaid expenses and other

 

(6,697

)

 

(6,604

)

Accounts payable and accrued liabilities

 

44,547

 

 

152,303

 

Income taxes payable

 

(3,970

)

 

23,664

 

Other

 

(3,952

)

 

(172

)

Net cash provided by operations

 

343,752

 

 

521,129

 

 

 

 

Cash provided by (used for) investment

 

 

Expenditures for property and equipment

 

(135,760

)

 

(99,251

)

Acquisitions of businesses and facilities

 

(5,581

)

 

—

 

Proceeds from sales of assets and other

 

1,197

 

 

2,450

 

Net cash used for investment

 

(140,144

)

 

(96,801

)

 

 

 

Cash provided by (used for) financing

 

 

Treasury stock purchased

 

(158,509

)

 

(1,539

)

Dividends paid on common stock

 

(220,485

)

 

(140,885

)

Tax withholding payments on stock-based awards

 

(11,141

)

 

(5,926

)

Other

 

(1,448

)

 

(1,359

)

Net cash used for financing

 

(391,583

)

 

(149,709

)

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(187,975

)

 

274,619

 

 

 

 

Balance at beginning of the period

 

949,574

 

 

998,344

 

 

 

 

Balance at end of the period

$

761,599

 

$

1,272,963

 

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 September 30, 2024 and 2023, (ii) three months ended June 30, 2024, and (iii) nine months ended September 30, 2024 and 2023:

 

Three Months Ended

Nine Months Ended

 

September 30

June 30, 2024

September 30

 

2024

2023

2024

2023

 

(in thousands)

Net income

$

91,038

 

$

143,068

 

$

112,292

 

$

307,454

 

$

386,121

 

Interest expense

 

6,082

 

 

6,351

 

 

6,105

 

 

18,257

 

 

19,051

 

Interest income

 

(10,168

)

 

(13,760

)

 

(10,543

)

 

(31,308

)

 

(34,964

)

Income tax provision

 

29,801

 

 

49,005

 

 

38,499

 

 

101,129

 

 

131,727

 

Depreciation and amortization

 

36,861

 

 

31,474

 

 

34,367

 

 

107,078

 

 

93,382

 

EBITDA

 

153,614

 

 

216,138

 

 

180,720

 

 

502,610

 

 

595,317

 

Change in fair value of interest rate swaps

 

866

 

 

327

 

 

487

 

 

1,573

 

 

798

 

Adjusted EBITDA

$

154,480

 

$

216,465

 

$

181,207

 

$

504,183

 

$

596,115

 

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

 

Three Months Ended

Nine Months Ended

 

September 30

June 30, 2024

September 30

 

2024

2023

2024

2023

 

(in thousands)

Wood Products

 

 

 

 

 

Segment income

$

53,853

 

$

99,574

 

$

72,780

 

$

197,871

 

$

273,004

 

Depreciation and amortization

 

23,551

 

 

23,350

 

 

22,270

 

 

70,205

 

 

70,145

 

EBITDA

$

77,404

 

$

122,924

 

$

95,050

 

$

268,076

 

$

343,149

 

 

 

 

 

 

 

Building Materials Distribution

 

 

 

 

 

Segment income

$

74,821

 

$

97,076

 

$

85,400

 

$

232,684

 

$

265,311

 

Depreciation and amortization

 

12,928

 

 

7,781

 

 

11,741

 

 

35,776

 

 

22,237

 

EBITDA

$

87,749

 

$

104,857

 

$

97,141

 

$

268,460

 

$

287,548

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Unallocated corporate costs

$

(11,318

)

$

(11,017

)

$

(11,199

)

$

(33,236

)

$

(35,105

)

Foreign currency exchange gain (loss)

 

300

 

 

(602

)

 

(104

)

 

(103

)

 

(355

)

Pension expense (excluding service costs)

 

(37

)

 

(40

)

 

(37

)

 

(111

)

 

(122

)

Change in fair value of interest rate swaps

 

(866

)

 

(327

)

 

(487

)

 

(1,573

)

 

(798

)

Depreciation and amortization

 

382

 

 

343

 

 

356

 

 

1,097

 

 

1,000

 

EBITDA

 

(11,539

)

 

(11,643

)

 

(11,471

)

 

(33,926

)

 

(35,380

)

Change in fair value of interest rate swaps

 

866

 

 

327

 

 

487

 

 

1,573

 

 

798

 

Corporate adjusted EBITDA

$

(10,673

)

$

(11,316

)

$

(10,984

)

$

(32,353

)

$

(34,582

)

 

 

 

 

 

 

Total Company adjusted EBITDA

$

154,480

 

$

216,465

 

$

181,207

 

$

504,183

 

$

596,115

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104417522/en/

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