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Boise Cascade Company Reports Fourth Quarter and Full Year 2023 Results

2024-02-20 16:05 ET - News Release


BOISE, Idaho -- (Business Wire)

Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported fourth quarter net income of $97.5 million, or $2.44 per share, on sales of $1.6 billion. For the full year 2023, Boise Cascade reported net income of $483.7 million, or $12.12 per share, on sales of $6.8 billion. For 2022 comparative results, see the table below.

"We closed out 2023 with a fourth quarter that delivered strong financial performance, further execution of our growth strategies through organic and acquisition initiatives, and meaningful returns to our shareholders through share price gains and dividends. I remain humbled and grateful for our team as we continue to execute on strategies that position us to serve and support our vendor and customer partners into the future," stated Nate Jorgensen, CEO. "As we look forward to 2024, we are optimistic about new single-family residential construction activity and have great confidence in our people to execute our strategy independent of the market backdrop. In addition, our balance sheet remains strong, and we remain committed to our balanced approach to capital allocation and look forward to executing our reinvestment and growth projects included in our expanded capital plan."

Fourth Quarter and Year End 2023 Highlights

 

 

 

 

4Q 2023

 

 

 

4Q 2022

 

 

% change

 

 

2023

 

 

 

2022

 

 

% change

 

 

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

Consolidated Results

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

1,644,256

 

$

1,628,306

 

1

%

 

$

6,838,245

 

$

8,387,307

 

(18

)%

Net income

 

 

97,535

 

 

 

117,360

 

 

(17

)%

 

 

483,656

 

 

 

857,658

 

 

(44

)%

Net income per common share - diluted

 

 

2.44

 

 

 

2.95

 

 

(17

)%

 

 

12.12

 

 

 

21.56

 

 

(44

)%

Adjusted EBITDA 1

 

 

160,582

 

 

 

188,174

 

 

(15

)%

 

 

756,697

 

 

 

1,257,564

 

 

(40

)%

Segment Results

 

 

 

 

 

 

 

 

 

 

 

 

Wood Products sales

 

$

449,676

 

 

$

425,602

 

 

6

%

 

$

1,932,602

 

 

$

2,115,896

 

 

(9

)%

Wood Products income

 

 

64,128

 

 

 

74,978

 

 

(14

)%

 

 

337,132

 

 

 

575,167

 

 

(41

)%

Wood Products EBITDA 1

 

 

92,693

 

 

 

99,708

 

 

(7

)%

 

 

435,842

 

 

 

648,475

 

 

(33

)%

Building Materials Distribution sales

 

 

1,492,614

 

 

 

1,443,780

 

 

3

%

 

 

6,178,690

 

 

 

7,643,615

 

 

(19

)%

Building Materials Distribution income

 

 

70,497

 

 

 

92,455

 

 

(24

)%

 

 

335,808

 

 

 

627,091

 

 

(46

)%

Building Materials Distribution EBITDA 1

 

 

80,613

 

 

 

99,396

 

 

(19

)%

 

 

368,161

 

 

 

654,096

 

 

(44

)%

1

 

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

In fourth quarter 2023, total U.S. housing starts and single-family housing starts increased 4% and 23%, respectively, compared to the same period in 2022. For the full year 2023, total and single-family housing starts decreased 9% and 6%, respectively, compared to the same period in 2022. 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 $24.1 million, or 6%, to $449.7 million for the three months ended December 31, 2023, from $425.6 million for the three months ended December 31, 2022. The increase in sales was driven by higher sales volumes for I-joists and LVL (collectively referred to as EWP). The increase was offset partially by lower sales prices across all product lines and lower plywood sales volumes. Wood Products' segment income decreased $10.9 million to $64.1 million for the three months ended December 31, 2023, from $75.0 million for the three months ended December 31, 2022. The decrease in segment income was due primarily to lower EWP and plywood sales prices, accelerated depreciation of $6.2 million for the previously announced indefinite curtailment of lumber production at our Chapman, Alabama facility, and an increase in other manufacturing costs. These decreases in segment income were offset partially by higher EWP sales volumes and lower wood fiber costs.

For the year ended December 31, 2023, sales, including sales to BMD, decreased $183.3 million, or 9%, to $1,932.6 million from $2,115.9 million in 2022. The decrease in sales was driven by lower sales prices across all product lines and lower EWP sales volumes. These decreases were offset partially by higher plywood sales volumes. Wood Products' segment income decreased $238.1 million to $337.1 million for the year ended December 31, 2023, from $575.2 million for the year ended December 31, 2022. The decrease in segment income was due primarily to lower plywood and EWP sales prices, as well as lower EWP sales volumes. In addition, segment income was negatively impacted by an increase in depreciation and amortization expense related to the Coastal Plywood acquisition and accelerated depreciation on lumber production assets, as mentioned above. These decreases in segment income were offset partially by lower wood fiber costs and higher plywood sales volumes.

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

 

 

4Q 2023 vs. 4Q 2022

 

2023 vs. 2022

 

 

 

 

 

Average Net Selling Prices

 

 

 

 

LVL

 

(13)%

 

(2)%

I-joists

 

(18)%

 

(4)%

Plywood

 

(5)%

 

(29)%

Sales Volumes

 

 

 

 

LVL

 

29%

 

(1)%

I-joists

 

79%

 

(4)%

Plywood

 

(8)%

 

21%

Building Materials Distribution

BMD's sales increased $48.8 million, or 3%, to $1,492.6 million for the three months ended December 31, 2023, from $1,443.8 million for the three months ended December 31, 2022. Compared with the same quarter in the prior year, the increase in sales was driven by sales volume increases of 13%, offset partially by sales price decreases of 10%. By product line, commodity sales decreased 8%, general line product sales increased 13%, and EWP sales (substantially all of which are sourced through our Wood Products segment) increased 10%. BMD segment income decreased $22.0 million to $70.5 million for the three months ended December 31, 2023, from $92.5 million for the three months ended December 31, 2022. The decline in segment income was driven by increased selling and distribution expenses of $12.9 million compared with the same quarter in the prior year. In addition, general and administrative expenses increased $5.7 million, due partially to acquisition-related costs for the previously announced BROSCO acquisition. Depreciation and amortization expenses also increased $3.2 million due primarily to increased capital expenditures, as well as the BROSCO acquisition. BMD's gross margins were flat when compared with the same quarter in the prior year.

For the year ended December 31, 2023, sales decreased $1,464.9 million, or 19%, to $6,178.7 million from $7,643.6 million in 2022. The decrease in sales was driven by sales price and sales volume decreases of 16% and 3%, respectively. By product line, commodity sales decreased 32%, general line product sales decreased 4%, and EWP sales decreased 16%. BMD segment income decreased $291.3 million to $335.8 million for the year ended December 31, 2023, from $627.1 million for the year ended December 31, 2022. The decrease in segment income was driven by a gross margin decrease of $276.0 million, resulting primarily from gross margin declines on EWP and commodity products and lower sales volumes across all product lines compared with 2022. In addition, general and administrative expenses increased $7.8 million, due partially to acquisition-related costs for the BROSCO acquisition. Depreciation and amortization expenses also increased $5.3 million due primarily to increased capital expenditures, as well as the BROSCO acquisition.

Balance Sheet and Liquidity

Boise Cascade ended fourth quarter 2023 with $949.6 million of cash and cash equivalents and $395.9 million of undrawn committed bank line availability, for total available liquidity of $1,345.5 million. The Company had $445.3 million of outstanding debt at December 31, 2023.

Capital Allocation

During the year ended December 31, 2023, the Company used a combined $378.2 million of cash for capital spending and the acquisition of BROSCO. We expect capital expenditures in 2024, excluding potential acquisition spending, to total approximately $250 million to $270 million. Our 2024 capital expenditures range includes spending on previously announced projects to add I-joist production capabilities at our Thorsby EWP mill and converting a plywood layup line to a parallel laminated veneer line at our Chapman, Alabama plywood facility. At our Oakdale, Louisiana facility, multiple investment projects are planned over the next two years which include upgrade and redesign of the log utilization center, a new veneer dryer and press, and modification of an existing veneer dryer. In addition, our 2024 capital expenditures range includes spending on the previously announced greenfield distribution centers in Texas and South Carolina in our BMD segment.

For the year ended December 31, 2023, the Company paid common stock dividends of $346.5 million, or $8.70 per share. In addition, on February 6, 2024, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on March 15, 2024, to stockholders of record on February 23, 2024.

For the year ended December 31, 2023, the Company paid $6.4 million for the repurchase of 75,678 shares of our common stock. As of December 31, 2023, approximately 1.9 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. Recent 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. Despite recent declines in mortgage rates and homebuilders responding with various mechanisms to attract buyers, home affordability remains a challenge for consumers. However, with a resilient economy and elevated mortgage rates, which limits existing home inventory for sale, new residential construction is expected to remain an important source of supply for homebuyers. Within new residential construction, the recent reduction in rates and potential for future rate reductions has created optimism that single-family starts will reflect year-over-year growth. However, there is reservation that multi-family starts may pull back from recent record highs due to 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 robust 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 fourth quarter and full year earnings on Wednesday, February 21, 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 and Coastal Plywood acquisitions, 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

 

Year Ended

 

December 31

 

September 30,

2023

 

December 31

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

Sales

$

1,644,256

 

 

$

1,628,306

 

 

$

1,834,441

 

 

$

6,838,245

 

 

$

8,387,307

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

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

 

1,310,062

 

 

 

1,288,717

 

 

 

1,442,178

 

 

 

5,409,311

 

 

 

6,472,540

 

Depreciation and amortization

 

39,085

 

 

 

31,982

 

 

 

31,474

 

 

 

132,467

 

 

 

101,593

 

Selling and distribution expenses

 

143,796

 

 

 

130,145

 

 

 

147,714

 

 

 

559,503

 

 

 

553,251

 

General and administrative expenses

 

30,241

 

 

 

22,375

 

 

 

27,583

 

 

 

114,434

 

 

 

103,750

 

Other (income) expense, net

 

(104

)

 

 

(689

)

 

 

(141

)

 

 

(1,856

)

 

 

(1,676

)

 

 

1,523,080

 

 

 

1,472,530

 

 

 

1,648,808

 

 

 

6,213,859

 

 

 

7,229,458

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

121,176

 

 

 

155,776

 

 

 

185,633

 

 

 

624,386

 

 

 

1,157,849

 

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange gain (loss)

 

362

 

 

 

457

 

 

 

(602

)

 

 

7

 

 

 

(1,584

)

Pension expense (excluding service costs)

 

(41

)

 

 

(41

)

 

 

(40

)

 

 

(163

)

 

 

(294

)

Interest expense

 

(6,445

)

 

 

(6,443

)

 

 

(6,351

)

 

 

(25,496

)

 

 

(25,412

)

Interest income

 

13,142

 

 

 

7,575

 

 

 

13,760

 

 

 

48,106

 

 

 

12,263

 

Change in fair value of interest rate swaps

 

(993

)

 

 

(35

)

 

 

(327

)

 

 

(1,791

)

 

 

3,559

 

 

 

6,025

 

 

 

1,513

 

 

 

6,440

 

 

 

20,663

 

 

 

(11,468

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

127,201

 

 

 

157,289

 

 

 

192,073

 

 

 

645,049

 

 

 

1,146,381

 

Income tax provision

 

(29,666

)

 

 

(39,929

)

 

 

(49,005

)

 

 

(161,393

)

 

 

(288,723

)

Net income

$

97,535

 

 

$

117,360

 

 

$

143,068

 

 

$

483,656

 

 

$

857,658

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

39,653

 

 

 

39,544

 

 

 

39,675

 

 

 

39,649

 

 

 

39,526

 

Diluted

 

40,020

 

 

 

39,830

 

 

 

39,983

 

 

 

39,901

 

 

 

39,772

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

$

2.46

 

 

$

2.97

 

 

$

3.61

 

 

$

12.20

 

 

$

21.70

 

Diluted

$

2.44

 

 

$

2.95

 

 

$

3.58

 

 

$

12.12

 

 

$

21.56

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

5.20

 

 

$

1.15

 

 

$

0.20

 

 

$

8.70

 

 

$

4.01

 

 

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

 

 

Three Months Ended

 

Year Ended

 

December 31

 

September 30,

2023

 

December 31

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

Segment sales

$

449,676

 

 

$

425,602

 

 

$

515,225

 

 

$

1,932,602

 

 

$

2,115,896

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

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

 

340,845

 

 

 

312,143

 

 

 

376,754

 

 

 

1,432,745

 

 

 

1,405,417

 

Depreciation and amortization

 

28,565

 

 

 

24,730

 

 

 

23,350

 

 

 

98,710

 

 

 

73,308

 

Selling and distribution expenses

 

11,215

 

 

 

10,397

 

 

 

10,786

 

 

 

45,116

 

 

 

41,140

 

General and administrative expenses

 

4,844

 

 

 

3,751

 

 

 

5,018

 

 

 

20,404

 

 

 

21,940

 

Other (income) expense, net

 

79

 

 

 

(397

)

 

 

(257

)

 

 

(1,505

)

 

 

(1,076

)

 

 

385,548

 

 

 

350,624

 

 

 

415,651

 

 

 

1,595,470

 

 

 

1,540,729

 

 

 

 

 

 

 

 

 

 

 

Segment income

$

64,128

 

 

$

74,978

 

 

$

99,574

 

 

$

337,132

 

 

$

575,167

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

75.8

%

 

 

73.3

%

 

 

73.1

%

 

 

74.1

%

 

 

66.4

%

Depreciation and amortization

 

6.4

%

 

 

5.8

%

 

 

4.5

%

 

 

5.1

%

 

 

3.5

%

Selling and distribution expenses

 

2.5

%

 

 

2.4

%

 

 

2.1

%

 

 

2.3

%

 

 

1.9

%

General and administrative expenses

 

1.1

%

 

 

0.9

%

 

 

1.0

%

 

 

1.1

%

 

 

1.0

%

Other (income) expense, net

 

%

 

 

(0.1

%)

 

 

%

 

 

(0.1

%)

 

 

(0.1

%)

 

 

85.7

%

 

 

82.4

%

 

 

80.7

%

 

 

82.6

%

 

 

72.8

%

 

 

 

 

 

 

 

 

 

 

Segment income

 

14.3

%

 

 

17.6

%

 

 

19.3

%

 

 

17.4

%

 

 

27.2

%

 

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

 

 

Three Months Ended

 

Year Ended

 

December 31

 

September 30,

2023

 

December 31

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

Segment sales

$

1,492,614

 

 

$

1,443,780

 

 

$

1,670,296

 

 

$

6,178,690

 

 

$

7,643,615

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

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

 

1,265,493

 

 

 

1,216,198

 

 

 

1,417,153

 

 

 

5,249,211

 

 

 

6,438,103

 

Depreciation and amortization

 

10,116

 

 

 

6,941

 

 

 

7,781

 

 

 

32,353

 

 

 

27,005

 

Selling and distribution expenses

 

132,635

 

 

 

119,748

 

 

 

136,982

 

 

 

514,513

 

 

 

512,111

 

General and administrative expenses

 

14,100

 

 

 

8,387

 

 

 

11,195

 

 

 

47,414

 

 

 

39,651

 

Other (income) expense, net

 

(227

)

 

 

51

 

 

 

109

 

 

 

(609

)

 

 

(346

)

 

 

1,422,117

 

 

 

1,351,325

 

 

 

1,573,220

 

 

 

5,842,882

 

 

 

7,016,524

 

 

 

 

 

 

 

 

 

 

 

Segment income

$

70,497

 

 

$

92,455

 

 

$

97,076

 

 

$

335,808

 

 

$

627,091

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

84.8

%

 

 

84.2

%

 

 

84.8

%

 

 

85.0

%

 

 

84.2

%

Depreciation and amortization

 

0.7

%

 

 

0.5

%

 

 

0.5

%

 

 

0.5

%

 

 

0.4

%

Selling and distribution expenses

 

8.9

%

 

 

8.3

%

 

 

8.2

%

 

 

8.3

%

 

 

6.7

%

General and administrative expenses

 

0.9

%

 

 

0.6

%

 

 

0.7

%

 

 

0.8

%

 

 

0.5

%

Other (income) expense, net

 

%

 

 

%

 

 

%

 

 

%

 

 

%

 

 

95.3

%

 

 

93.6

%

 

 

94.2

%

 

 

94.6

%

 

 

91.8

%

 

 

 

 

 

 

 

 

 

 

Segment income

 

4.7

%

 

 

6.4

%

 

 

5.8

%

 

 

5.4

%

 

 

8.2

%

 

Segment Information

(in thousands) (unaudited)

 

 

Three Months Ended

 

Year Ended

 

December 31

 

September 30,

2023

 

December 31

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

Segment sales

 

 

 

 

 

 

 

 

 

Wood Products

$

449,676

 

 

$

425,602

 

 

$

515,225

 

 

$

1,932,602

 

 

$

2,115,896

 

Building Materials Distribution

 

1,492,614

 

 

 

1,443,780

 

 

 

1,670,296

 

 

 

6,178,690

 

 

 

7,643,615

 

Intersegment eliminations

 

(298,034

)

 

 

(241,076

)

 

 

(351,080

)

 

 

(1,273,047

)

 

 

(1,372,204

)

Total net sales

$

1,644,256

 

 

$

1,628,306

 

 

$

1,834,441

 

 

$

6,838,245

 

 

$

8,387,307

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

 

 

 

 

 

 

 

Wood Products

$

64,128

 

 

$

74,978

 

 

$

99,574

 

 

$

337,132

 

 

$

575,167

 

Building Materials Distribution

 

70,497

 

 

 

92,455

 

 

 

97,076

 

 

 

335,808

 

 

 

627,091

 

Total segment income

 

134,625

 

 

 

167,433

 

 

 

196,650

 

 

 

672,940

 

 

 

1,202,258

 

Unallocated corporate costs

 

(13,449

)

 

 

(11,657

)

 

 

(11,017

)

 

 

(48,554

)

 

 

(44,409

)

Income from operations

$

121,176

 

 

$

155,776

 

 

$

185,633

 

 

$

624,386

 

 

$

1,157,849

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

 

 

Wood Products

$

92,693

 

 

$

99,708

 

 

$

122,924

 

 

$

435,842

 

 

$

648,475

 

Building Materials Distribution

 

80,613

 

 

 

99,396

 

 

 

104,857

 

 

 

368,161

 

 

 

654,096

 

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

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

 

 

December 31, 2023

 

December 31, 2022

 

 

ASSETS

 

 

 

 

 

 

 

Current

 

 

 

Cash and cash equivalents

$

949,574

 

$

998,344

Receivables

 

 

 

Trade, less allowances of $3,278 and $3,264

 

352,780

 

 

 

297,237

 

Related parties

 

181

 

 

 

19

 

Other

 

20,740

 

 

 

23,023

 

Inventories

 

712,369

 

 

 

697,551

 

Prepaid expenses and other

 

21,170

 

 

 

47,878

 

Total current assets

 

2,056,814

 

 

 

2,064,052

 

 

 

 

 

Property and equipment, net

 

932,633

 

 

 

770,023

 

Operating lease right-of-use assets

 

62,868

 

 

 

55,582

 

Finance lease right-of-use assets

 

24,003

 

 

 

26,501

 

Timber deposits

 

7,208

 

 

 

7,519

 

Goodwill

 

170,254

 

 

 

137,958

 

Intangible assets, net

 

190,743

 

 

 

161,433

 

Deferred income taxes

 

4,854

 

 

 

6,116

 

Other assets

 

9,269

 

 

 

11,330

 

Total assets

$

3,458,646

 

 

$

3,240,514

 

 

Boise Cascade Company

Consolidated Balance Sheets (continued)

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

 

 

December 31, 2023

 

December 31, 2022

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current

 

 

 

Accounts payable

 

 

 

Trade

$

310,175

 

 

$

269,785

 

Related parties

 

1,501

 

 

 

1,019

 

Accrued liabilities

 

 

 

Compensation and benefits

 

149,561

 

 

 

142,463

 

Interest payable

 

9,958

 

 

 

9,955

 

Other

 

122,921

 

 

 

122,606

 

Total current liabilities

 

594,116

 

 

 

545,828

 

 

 

 

 

Debt

 

 

 

Long-term debt

 

445,280

 

 

 

444,392

 

 

 

 

 

Other

 

 

 

Compensation and benefits

 

40,189

 

 

 

33,226

 

Operating lease liabilities, net of current portion

 

56,425

 

 

 

48,668

 

Finance lease liabilities, net of current portion

 

28,084

 

 

 

30,022

 

Deferred income taxes

 

82,014

 

 

 

63,454

 

Other long-term liabilities

 

16,874

 

 

 

16,949

 

 

 

223,586

 

 

 

192,319

 

 

 

 

 

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, 44,983 and 44,827 shares issued, respectively

 

450

 

 

 

448

 

Treasury stock, 5,443 and 5,367 shares at cost, respectively

 

(145,335

)

 

 

(138,909

)

Additional paid-in capital

 

560,697

 

 

 

551,215

 

Accumulated other comprehensive loss

 

(517

)

 

 

(520

)

Retained earnings

 

1,780,369

 

 

 

1,645,741

 

Total stockholders' equity

 

2,195,664

 

 

 

2,057,975

 

Total liabilities and stockholders' equity

$

3,458,646

 

 

$

3,240,514

 

 

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

 

 

Year Ended December 31

 

 

2023

 

 

 

2022

 

Cash provided by (used for) operations

 

 

 

Net income

$

483,656

 

 

$

857,658

 

Items in net income not using (providing) cash

 

 

 

Depreciation and amortization, including deferred financing costs and other

 

135,414

 

 

 

103,879

 

Stock-based compensation

 

15,410

 

 

 

11,870

 

Pension expense

 

163

 

 

 

294

 

Deferred income taxes

 

(180

)

 

 

59,666

 

Change in fair value of interest rate swaps

 

1,791

 

 

 

(3,559

)

Other

 

(1,898

)

 

 

(1,043

)

Decrease (increase) in working capital, net of acquisitions

 

 

 

Receivables

 

(35,024

)

 

 

158,073

 

Inventories

 

22,286

 

 

 

(13,903

)

Prepaid expenses and other

 

(824

)

 

 

(2,834

)

Accounts payable and accrued liabilities

 

37,146

 

 

 

(100,354

)

Pension contributions

 

(553

)

 

 

(1,058

)

Income taxes payable

 

28,590

 

 

 

(30,561

)

Other

 

1,481

 

 

 

3,091

 

Net cash provided by operations

 

687,458

 

 

 

1,041,219

 

 

 

 

 

Cash provided by (used for) investment

 

 

 

Expenditures for property and equipment

 

(215,438

)

 

 

(114,117

)

Acquisitions of businesses and facilities, net of cash acquired

 

(162,774

)

 

 

(515,237

)

Proceeds from sales of assets and other

 

2,660

 

 

 

3,898

 

Net cash used for investment

 

(375,552

)

 

 

(625,456

)

 

 

 

 

Cash provided by (used for) financing

 

 

 

Dividends paid on common stock

 

(346,493

)

 

 

(159,564

)

Tax withholding payments on stock-based awards

 

(5,926

)

 

 

(3,930

)

Treasury stock purchased

 

(6,426

)

 

 

 

Payments of deferring financing costs

 

 

 

 

(1,174

)

Other

 

(1,831

)

 

 

(1,658

)

Net cash used for financing

 

(360,676

)

 

 

(166,326

)

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(48,770

)

 

 

249,437

 

 

 

 

 

Balance at beginning of the period

 

998,344

 

 

 

748,907

 

 

 

 

 

Balance at end of the period

$

949,574

 

 

$

998,344

 

 

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 (i) the three months ended December 31, 2023 and 2022, (ii) the three months ended September 30, 2023, and (iii) the year ended December 31, 2023 and 2022:

 

Three Months Ended

 

Year Ended

 

December 31

 

September 30,

2023

 

December 31

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

(in thousands)

Net income

$

97,535

 

 

$

117,360

 

 

$

143,068

 

 

$

483,656

 

 

$

857,658

 

Interest expense

 

6,445

 

 

 

6,443

 

 

 

6,351

 

 

 

25,496

 

 

 

25,412

 

Interest income

 

(13,142

)

 

 

(7,575

)

 

 

(13,760

)

 

 

(48,106

)

 

 

(12,263

)

Income tax provision

 

29,666

 

 

 

39,929

 

 

 

49,005

 

 

 

161,393

 

 

 

288,723

 

Depreciation and amortization

 

39,085

 

 

 

31,982

 

 

 

31,474

 

 

 

132,467

 

 

 

101,593

 

EBITDA

 

159,589

 

 

 

188,139

 

 

 

216,138

 

 

 

754,906

 

 

 

1,261,123

 

Change in fair value of interest rate swaps

 

993

 

 

 

35

 

 

 

327

 

 

 

1,791

 

 

 

(3,559

)

Adjusted EBITDA

$

160,582

 

 

$

188,174

 

 

$

216,465

 

 

$

756,697

 

 

$

1,257,564

 

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended December 31, 2023 and 2022, (ii) three months ended September 30, 2023, and (iii) year ended December 31, 2023 and 2022:

 

Three Months Ended

 

Year Ended

 

December 31

 

September 30,

2023

 

December 31

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

(in thousands)

Wood Products

 

 

 

 

 

 

 

 

 

Segment income

$

64,128

 

 

$

74,978

 

 

$

99,574

 

 

$

337,132

 

 

$

575,167

 

Depreciation and amortization

 

28,565

 

 

 

24,730

 

 

 

23,350

 

 

 

98,710

 

 

 

73,308

 

EBITDA

$

92,693

 

 

$

99,708

 

 

$

122,924

 

 

$

435,842

 

 

$

648,475

 

 

 

 

 

 

 

 

 

 

 

Building Materials Distribution

 

 

 

 

 

 

 

 

 

Segment income

$

70,497

 

 

$

92,455

 

 

$

97,076

 

 

$

335,808

 

 

$

627,091

 

Depreciation and amortization

 

10,116

 

 

 

6,941

 

 

 

7,781

 

 

 

32,353

 

 

 

27,005

 

EBITDA

$

80,613

 

 

$

99,396

 

 

$

104,857

 

 

$

368,161

 

 

$

654,096

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

Unallocated corporate costs

$

(13,449

)

 

$

(11,657

)

 

$

(11,017

)

 

$

(48,554

)

 

$

(44,409

)

Foreign currency exchange gain (loss)

 

362

 

 

 

457

 

 

 

(602

)

 

 

7

 

 

 

(1,584

)

Pension expense (excluding service costs)

 

(41

)

 

 

(41

)

 

 

(40

)

 

 

(163

)

 

 

(294

)

Change in fair value of interest rate swaps

 

(993

)

 

 

(35

)

 

 

(327

)

 

 

(1,791

)

 

 

3,559

 

Depreciation and amortization

 

404

 

 

 

311

 

 

 

343

 

 

 

1,404

 

 

 

1,280

 

EBITDA

 

(13,717

)

 

 

(10,965

)

 

 

(11,643

)

 

 

(49,097

)

 

 

(41,448

)

Change in fair value of interest rate swaps

 

993

 

 

 

35

 

 

 

327

 

 

 

1,791

 

 

 

(3,559

)

Corporate adjusted EBITDA

$

(12,724

)

 

$

(10,930

)

 

$

(11,316

)

 

$

(47,306

)

 

$

(45,007

)

 

 

 

 

 

 

 

 

 

 

Total Company adjusted EBITDA

$

160,582

 

 

$

188,174

 

 

$

216,465

 

 

$

756,697

 

 

$

1,257,564

 

 

Contacts:

Investor Relations Contact - Kelly Hibbs
investor@bc.com

Media Contact - Lisa Tschampl
mediarelations@bc.com

Source: Boise Cascade Company

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