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Press release content from Business Wire. The AP news staff was not involved in its creation.

Boise Cascade Company Reports Third Quarter 2021 Results

November 1, 2021 GMT

BOISE, Idaho--(BUSINESS WIRE)--Nov 1, 2021--

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.”

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Third Quarter 2021 Highlights

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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

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211101005909/en/

CONTACT: Investor Relations Contact - Kelly Hibbs

208 384 3638

Media Contact - Lisa Tschampl

208 384 6552

KEYWORD: UNITED STATES NORTH AMERICA IDAHO

INDUSTRY KEYWORD: FOREST PRODUCTS RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE NATURAL RESOURCES CONSTRUCTION & PROPERTY BUILDING SYSTEMS

SOURCE: Boise Cascade Company

Copyright Business Wire 2021.

PUB: 11/01/2021 04:05 PM/DISC: 11/01/2021 04:06 PM

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