8-K
BOISE CASCADE Co (BCC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 31, 2023
BOISE CASCADE COMPANY
(Exact name of registrant as specified in its charter)
| Delaware | 1-35805 | 20-1496201 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1111 West Jefferson Street, Suite 300
Boise, Idaho 83702-5389
(Address of principal executive offices) (Zip Code)
(208) 384-6161
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value per share | BCC | New York Stock Exchange |
Item 2.02 Results of Operations and Financial Condition.
On July 31, 2023, Boise Cascade Company (the Company) issued a press release announcing its second quarter 2023 financial results, a copy of which is furnished as Exhibit 99.1 to this Report on Form 8-K. Additionally, Exhibit 99.2, a copy of which is attached hereto, includes certain statistical information related to the Company's quarterly performance.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are furnished as part of this Report on Form 8-K:
| Exhibit | Description |
|---|---|
| 99.1 | Boise Cascade Company Earnings Release dated July 31, 2023. |
| 99.2 | Boise Cascade Company Quarterly Statistical Information. |
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
| 104 | The cover page from this Current Report on Form 8-K, formatted as Inline XBRL. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BOISE CASCADE COMPANY | ||
|---|---|---|
| By | /s/ Jill Twedt | |
| Jill Twedt<br><br>Senior Vice President, General Counsel and Secretary | ||
| Date: July 31, 2023 |
Document
| Boise Cascade Company | Exhibit 99.1 | ||
|---|---|---|---|
| 1111 West Jefferson Street, Suite 300 | |||
| Boise, ID 83702 | News Release | ||
| --- | Investor Relations Contact - Kelly Hibbs<br><br>208 384 3638 | Media Contact - Lisa Tschampl<br><br>208 384 6552 | |
| --- | --- |
For Immediate Release: July 31, 2023
Boise Cascade Company Reports Second Quarter 2023 Results
BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $146.3 million, or $3.67 per share, on sales of $1.8 billion for the second quarter ended June 30, 2023, compared with net income of $218.1 million, or $5.49 per share, on sales of $2.3 billion for the second quarter ended June 30, 2022.
“Both businesses again delivered solid financial performance during the second quarter as we continued to execute our integrated business model in support of our customer and supplier partners. Our associates' consistent focus, grit, and hard work remain key to driving our operating and financial results,” stated Nate Jorgensen, CEO. "As we close out the first half of 2023, we are encouraged by the resiliency of market demand despite ongoing economic uncertainties, and our long-term view of the strength of residential construction remains. The focus on working capital performance is a priority as the channel looks to manage inventory risk and reward, and we are uniquely positioned on a national scale to deliver the service levels in support of those efforts. Lastly, our balance sheet remains well positioned for continued investment in our associates, key strategies and growth initiatives in our distribution and EWP businesses, and further shareholder returns."
Second Quarter 2023 Highlights
| 2Q 2023 | 2Q 2022 | % change | ||||
|---|---|---|---|---|---|---|
| (in thousands, except per-share data and percentages) | ||||||
| Consolidated Results | ||||||
| Sales | $ | 1,815,219 | $ | 2,278,072 | (20) | % |
| Net income | 146,320 | 218,111 | (33) | % | ||
| Net income per common share - diluted | 3.67 | 5.49 | (33) | % | ||
| Adjusted EBITDA 1 | 220,976 | 317,229 | (30) | % | ||
| Segment Results | ||||||
| Wood Products sales | $ | 530,273 | $ | 536,030 | (1) | % |
| Wood Products income | 104,035 | 154,101 | (32) | % | ||
| Wood Products EBITDA 1 | 127,040 | 167,754 | (24) | % | ||
| Building Materials Distribution sales | 1,636,538 | 2,131,200 | (23) | % | ||
| Building Materials Distribution income | 98,550 | 154,308 | (36) | % | ||
| Building Materials Distribution EBITDA 1 | 105,936 | 161,036 | (34) | % |
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.
In second quarter 2023, total U.S. housing starts and single-family housing starts decreased 11% and 14%, respectively, compared to the same period in 2022. On a year-to-date basis through June 2023, total housing starts decreased 15%, driven by a decrease in single-family housing starts of 21% 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), decreased $5.7 million, or 1%, to $530.3 million for the three months ended June 30, 2023, from $536.0 million for the three months ended June 30, 2022. The decrease in sales was driven by lower plywood sales prices and lower I-joists sales volumes. These decreases were offset partially by higher plywood sales volumes, higher sales prices for LVL and I-joists (collectively referred to as EWP), and higher LVL sales volumes.
Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:
| 2Q 2023 vs. 2Q 2022 | 2Q 2023 vs. 1Q 2023 | |
|---|---|---|
| Average Net Selling Prices | ||
| LVL | 6% | (3)% |
| I-joists | 1% | (4)% |
| Plywood | (36)% | (1)% |
| Sales Volumes | ||
| LVL | 2% | 29% |
| I-joists | (9)% | 63% |
| Plywood | 57% | 8% |
Wood Products' segment income decreased $50.1 million to $104.0 million for the three months ended June 30, 2023, from $154.1 million for the three months ended June 30, 2022. The decrease in segment income was due primarily to lower plywood sales prices. In addition, segment income was negatively impacted by an increase in depreciation and amortization expense due to the acquisition of two plywood facilities on July 25, 2022. These decreases in segment income were offset partially by higher plywood sales volumes, higher EWP sales prices, as well as lower wood fiber costs.
Building Materials Distribution
BMD's sales decreased $494.7 million, or 23%, to $1,636.5 million for the three months ended June 30, 2023, from $2,131.2 million for the three months ended June 30, 2022. Compared with the same quarter in the prior year, the overall decrease in sales was driven by sales price and sales volume decreases of 22% and 1%, respectively. By product line, commodity sales decreased 36%, general line product sales decreased 8%, and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased 21%.
BMD segment income decreased $55.7 million to $98.6 million for the three months ended June 30, 2023, from $154.3 million in the comparative prior year quarter. The decline in segment income was driven by a gross margin decrease of $49.8 million, resulting from lower margins on EWP and general line products, offset partially by margin improvements on commodity products. In addition, selling and distribution expenses increased $3.9 million.
Balance Sheet and Liquidity
Boise Cascade ended second quarter 2023 with $1,080.9 million of cash and cash equivalents and $395.9 million of undrawn committed bank line availability, for total available liquidity of $1,476.8 million. The Company had $444.8 million of outstanding debt at June 30, 2023.
We expect capital expenditures in 2023 to total approximately $120 million to $140 million. Our 2023 capital expenditures range includes funding for greenfield distribution centers in South Carolina and Texas, projects at our mills in the southeast to expand our EWP capacity, and the purchase of property to house an additional door shop assembly operation in Kansas City, Missouri. This level 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.
Dividends
On July 27, 2023, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on September 15, 2023, to stockholders of record on September 1, 2023.
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, material cash requirements, 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
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. U.S. housing starts in June 2023 were approximately 1.4 million on a seasonally adjusted annual rate basis, as reported by the U.S. Census Bureau. However, home affordability remains a challenge for consumers, and the Federal Reserve's ongoing actions in response to inflationary data and what impacts these actions have on future mortgage rates and the broader economy will influence the near-term demand environment. As such, the outlook for the back half of 2023 remains uncertain and is reflected in various industry forecasts for 2023 U.S. housing starts that generally range from 1.3 million to 1.4 million units, compared with actual housing starts of 1.55 million in 2022, as reported by the U.S. Census Bureau. 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. However, industry forecasts project continued moderation of year-over-year growth in renovation spending, and economic uncertainty may also negatively impact homeowners' further investment in their residences.
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. Future commodity product pricing and commodity input costs may be volatile in response to economic uncertainties, industry operating rates, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. In addition, EWP volumes will continue to be influenced by demand for new residential construction, particularly single-family housing starts, and we expect modest EWP price erosion in the third quarter.
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 second quarter earnings on Tuesday, August 1, 2023, 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 (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.
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, 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, 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 | Six Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31, 2023 | June 30 | ||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Sales | $ | 1,815,219 | $ | 2,278,072 | $ | 1,544,329 | $ | 3,359,548 | $ | 4,604,354 | ||
| Costs and expenses | ||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 1,426,436 | 1,797,948 | 1,230,635 | 2,657,071 | 3,527,844 | |||||||
| Depreciation and amortization | 30,722 | 20,694 | 31,186 | 61,908 | 41,237 | |||||||
| Selling and distribution expenses | 139,205 | 134,279 | 128,788 | 267,993 | 280,930 | |||||||
| General and administrative expenses | 30,147 | 27,701 | 26,463 | 56,610 | 53,753 | |||||||
| Other (income) expense, net | (1,266) | 375 | (345) | (1,611) | (2,113) | |||||||
| 1,625,244 | 1,980,997 | 1,416,727 | 3,041,971 | 3,901,651 | ||||||||
| Income from operations | 189,975 | 297,075 | 127,602 | 317,577 | 702,703 | |||||||
| Foreign currency exchange gain (loss) | 320 | (499) | (73) | 247 | (367) | |||||||
| Pension expense (excluding service costs) | (41) | (41) | (41) | (82) | (212) | |||||||
| Interest expense | (6,339) | (6,317) | (6,361) | (12,700) | (12,571) | |||||||
| Interest income | 11,519 | 1,385 | 9,685 | 21,204 | 1,450 | |||||||
| Change in fair value of interest rate swaps | 333 | 394 | (804) | (471) | 2,460 | |||||||
| 5,792 | (5,078) | 2,406 | 8,198 | (9,240) | ||||||||
| Income before income taxes | 195,767 | 291,997 | 130,008 | 325,775 | 693,463 | |||||||
| Income tax provision | (49,447) | (73,886) | (33,275) | (82,722) | (172,752) | |||||||
| Net income | $ | 146,320 | $ | 218,111 | $ | 96,733 | $ | 243,053 | $ | 520,711 | ||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 39,675 | 39,544 | 39,593 | 39,634 | 39,509 | |||||||
| Diluted | 39,834 | 39,763 | 39,838 | 39,818 | 39,762 | |||||||
| Net income per common share: | ||||||||||||
| Basic | $ | 3.69 | $ | 5.52 | $ | 2.44 | $ | 6.13 | $ | 13.18 | ||
| Diluted | $ | 3.67 | $ | 5.49 | $ | 2.43 | $ | 6.10 | $ | 13.10 | ||
| Dividends declared per common share | $ | 3.15 | $ | 2.62 | $ | 0.15 | $ | 3.30 | $ | 2.74 |
Wood Products Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31, 2023 | June 30 | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| Segment sales | $ | 530,273 | $ | 536,030 | $ | 437,428 | $ | 967,701 | $ | 1,094,974 | |||||||
| Costs and expenses | |||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 387,407 | 351,557 | 327,739 | 715,146 | 695,266 | ||||||||||||
| Depreciation and amortization | 23,005 | 13,653 | 23,790 | 46,795 | 27,293 | ||||||||||||
| Selling and distribution expenses | 11,437 | 10,349 | 11,678 | 23,115 | 19,579 | ||||||||||||
| General and administrative expenses | 5,364 | 5,826 | 5,178 | 10,542 | 10,472 | ||||||||||||
| Other (income) expense, net | (975) | 544 | (352) | (1,327) | (1,853) | ||||||||||||
| 426,238 | 381,929 | 368,033 | 794,271 | 750,757 | |||||||||||||
| Segment income | $ | 104,035 | $ | 154,101 | $ | 69,395 | $ | 173,430 | $ | 344,217 | |||||||
| (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) | 73.1 | % | 65.6 | % | 74.9 | % | 73.9 | % | 63.5 | % | |||||||
| Depreciation and amortization | 4.3 | % | 2.5 | % | 5.4 | % | 4.8 | % | 2.5 | % | |||||||
| Selling and distribution expenses | 2.2 | % | 1.9 | % | 2.7 | % | 2.4 | % | 1.8 | % | |||||||
| General and administrative expenses | 1.0 | % | 1.1 | % | 1.2 | % | 1.1 | % | 1.0 | % | |||||||
| Other (income) expense, net | (0.2 | %) | 0.1 | % | (0.1) | % | (0.1 | %) | (0.2 | %) | |||||||
| 80.4 | % | 71.3 | % | 84.1 | % | 82.1 | % | 68.6 | % | ||||||||
| Segment income | 19.6 | % | 28.7 | % | 15.9 | % | 17.9 | % | 31.4 | % |
Building Materials Distribution Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31, 2023 | June 30 | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| Segment sales | $ | 1,636,538 | $ | 2,131,200 | $ | 1,379,242 | $ | 3,015,780 | $ | 4,243,033 | |||||||
| Costs and expenses | |||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 1,391,015 | 1,835,845 | 1,175,550 | 2,566,565 | 3,566,648 | ||||||||||||
| Depreciation and amortization | 7,386 | 6,728 | 7,070 | 14,456 | 13,304 | ||||||||||||
| Selling and distribution expenses | 127,786 | 123,930 | 117,110 | 244,896 | 261,351 | ||||||||||||
| General and administrative expenses | 12,089 | 10,558 | 10,030 | 22,119 | 21,784 | ||||||||||||
| Other (income) expense, net | (288) | (169) | (203) | (491) | (254) | ||||||||||||
| 1,537,988 | 1,976,892 | 1,309,557 | 2,847,545 | 3,862,833 | |||||||||||||
| Segment income | $ | 98,550 | $ | 154,308 | $ | 69,685 | $ | 168,235 | $ | 380,200 | |||||||
| (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) | 85.0 | % | 86.1 | % | 85.2 | % | 85.1 | % | 84.1 | % | |||||||
| Depreciation and amortization | 0.5 | % | 0.3 | % | 0.5 | % | 0.5 | % | 0.3 | % | |||||||
| Selling and distribution expenses | 7.8 | % | 5.8 | % | 8.5 | % | 8.1 | % | 6.2 | % | |||||||
| General and administrative expenses | 0.7 | % | 0.5 | % | 0.7 | % | 0.7 | % | 0.5 | % | |||||||
| Other (income) expense, net | — | % | — | % | — | % | — | % | — | % | |||||||
| 94.0 | % | 92.8 | % | 94.9 | % | 94.4 | % | 91.0 | % | ||||||||
| Segment income | 6.0 | % | 7.2 | % | 5.1 | % | 5.6 | % | 9.0 | % |
Segment Information
(in thousands) (unaudited)
| Three Months Ended | Six Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31, 2023 | June 30 | ||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Segment sales | ||||||||||||
| Wood Products | $ | 530,273 | $ | 536,030 | $ | 437,428 | $ | 967,701 | $ | 1,094,974 | ||
| Building Materials Distribution | 1,636,538 | 2,131,200 | 1,379,242 | 3,015,780 | 4,243,033 | |||||||
| Intersegment eliminations | (351,592) | (389,158) | (272,341) | (623,933) | (733,653) | |||||||
| Total net sales | $ | 1,815,219 | $ | 2,278,072 | $ | 1,544,329 | $ | 3,359,548 | $ | 4,604,354 | ||
| Segment income | ||||||||||||
| Wood Products | $ | 104,035 | $ | 154,101 | $ | 69,395 | $ | 173,430 | $ | 344,217 | ||
| Building Materials Distribution | 98,550 | 154,308 | 69,685 | 168,235 | 380,200 | |||||||
| Total segment income | 202,585 | 308,409 | 139,080 | 341,665 | 724,417 | |||||||
| Unallocated corporate costs | (12,610) | (11,334) | (11,478) | (24,088) | (21,714) | |||||||
| Income from operations | $ | 189,975 | $ | 297,075 | $ | 127,602 | $ | 317,577 | $ | 702,703 | ||
| Segment EBITDA | ||||||||||||
| Wood Products | $ | 127,040 | $ | 167,754 | $ | 93,185 | $ | 220,225 | $ | 371,510 | ||
| Building Materials Distribution | 105,936 | 161,036 | 76,755 | 182,691 | 393,504 |
See accompanying summary notes to consolidated financial statements and segment information.
Boise Cascade Company
Consolidated Balance Sheets
(in thousands) (unaudited)
| June 30, 2023 | December 31, 2022 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Current | ||||
| Cash and cash equivalents | $ | 1,080,857 | $ | 998,344 |
| Receivables | ||||
| Trade, less allowances of $3,212 and $3,264 | 478,655 | 297,237 | ||
| Related parties | 174 | 19 | ||
| Other | 13,244 | 23,023 | ||
| Inventories | 703,033 | 697,551 | ||
| Prepaid expenses and other | 22,682 | 47,878 | ||
| Total current assets | 2,298,645 | 2,064,052 | ||
| Property and equipment, net | 784,562 | 770,023 | ||
| Operating lease right-of-use assets | 53,270 | 55,582 | ||
| Finance lease right-of-use assets | 25,264 | 26,501 | ||
| Timber deposits | 7,613 | 7,519 | ||
| Goodwill | 137,958 | 137,958 | ||
| Intangible assets, net | 152,834 | 161,433 | ||
| Deferred income taxes | 5,977 | 6,116 | ||
| Other assets | 10,265 | 11,330 | ||
| Total assets | $ | 3,476,388 | $ | 3,240,514 |
Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data) (unaudited)
| June 30, 2023 | December 31, 2022 | |||
|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current | ||||
| Accounts payable | ||||
| Trade | $ | 415,387 | $ | 269,785 |
| Related parties | 1,596 | 1,019 | ||
| Accrued liabilities | ||||
| Compensation and benefits | 106,980 | 142,463 | ||
| Interest payable | 9,961 | 9,955 | ||
| Other | 133,420 | 122,606 | ||
| Total current liabilities | 667,344 | 545,828 | ||
| Debt | ||||
| Long-term debt | 444,836 | 444,392 | ||
| Other | ||||
| Compensation and benefits | 35,731 | 33,226 | ||
| Operating lease liabilities, net of current portion | 46,784 | 48,668 | ||
| Finance lease liabilities, net of current portion | 29,073 | 30,022 | ||
| Deferred income taxes | 65,944 | 63,454 | ||
| Other long-term liabilities | 18,152 | 16,949 | ||
| 195,684 | 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, 5,393 and 5,367 shares at cost, respectively | (140,448) | (138,909) | ||
| Additional paid-in capital | 552,805 | 551,215 | ||
| Accumulated other comprehensive loss | (507) | (520) | ||
| Retained earnings | 1,756,224 | 1,645,741 | ||
| Total stockholders' equity | 2,168,524 | 2,057,975 | ||
| Total liabilities and stockholders' equity | $ | 3,476,388 | $ | 3,240,514 |
Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands) (unaudited)
| Six Months Ended June 30 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Cash provided by (used for) operations | ||||
| Net income | $ | 243,053 | $ | 520,711 |
| Items in net income not using (providing) cash | ||||
| Depreciation and amortization, including deferred financing costs and other | 63,293 | 42,240 | ||
| Stock-based compensation | 7,518 | 5,403 | ||
| Pension expense | 82 | 212 | ||
| Deferred income taxes | 2,749 | 19,287 | ||
| Change in fair value of interest rate swaps | 471 | (2,460) | ||
| Other | (1,798) | (1,987) | ||
| Decrease (increase) in working capital | ||||
| Receivables | (171,794) | (129,993) | ||
| Inventories | (5,482) | (142,936) | ||
| Prepaid expenses and other | (7,805) | (7,602) | ||
| Accounts payable and accrued liabilities | 124,910 | 127,935 | ||
| Pension contributions | (268) | (794) | ||
| Income taxes payable | 33,220 | 4,507 | ||
| Other | 2,069 | 1,533 | ||
| Net cash provided by operations | 290,218 | 436,056 | ||
| Cash provided by (used for) investment | ||||
| Expenditures for property and equipment | (68,287) | (40,808) | ||
| Proceeds from sales of assets and other | 1,918 | 2,864 | ||
| Net cash used for investment | (66,369) | (37,944) | ||
| Cash provided by (used for) financing | ||||
| Dividends paid on common stock | (132,967) | (109,291) | ||
| Tax withholding payments on stock-based awards | (5,926) | (3,930) | ||
| Treasury stock purchased | (1,539) | — | ||
| Other | (904) | (811) | ||
| Net cash used for financing | (141,336) | (114,032) | ||
| Net increase in cash and cash equivalents | 82,513 | 284,080 | ||
| Balance at beginning of the period | 998,344 | 748,907 | ||
| Balance at end of the period | $ | 1,080,857 | $ | 1,032,987 |
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 2022 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 June 30, 2023 and 2022, (ii) the three months ended March 31, 2023, and (iii) the six months ended June 30, 2023 and 2022:
| Three Months Ended | Six Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31, 2023 | June 30 | ||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| (in thousands) | ||||||||||||
| Net income | $ | 146,320 | $ | 218,111 | $ | 96,733 | $ | 243,053 | $ | 520,711 | ||
| Interest expense | 6,339 | 6,317 | 6,361 | 12,700 | 12,571 | |||||||
| Interest income | (11,519) | (1,385) | (9,685) | (21,204) | (1,450) | |||||||
| Income tax provision | 49,447 | 73,886 | 33,275 | 82,722 | 172,752 | |||||||
| Depreciation and amortization | 30,722 | 20,694 | 31,186 | 61,908 | 41,237 | |||||||
| EBITDA | 221,309 | 317,623 | 157,870 | 379,179 | 745,821 | |||||||
| Change in fair value of interest rate swaps | (333) | (394) | 804 | 471 | (2,460) | |||||||
| Adjusted EBITDA | $ | 220,976 | $ | 317,229 | $ | 158,674 | $ | 379,650 | $ | 743,361 |
The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended June 30, 2023 and 2022, (ii) three months ended March 31, 2023, and (iii) six months ended June 30, 2023 and 2022:
| Three Months Ended | Six Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31, 2023 | June 30 | ||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| (in thousands) | ||||||||||||
| Wood Products | ||||||||||||
| Segment income | $ | 104,035 | $ | 154,101 | $ | 69,395 | $ | 173,430 | $ | 344,217 | ||
| Depreciation and amortization | 23,005 | 13,653 | 23,790 | 46,795 | 27,293 | |||||||
| EBITDA | $ | 127,040 | $ | 167,754 | $ | 93,185 | $ | 220,225 | $ | 371,510 | ||
| Building Materials Distribution | ||||||||||||
| Segment income | $ | 98,550 | $ | 154,308 | $ | 69,685 | $ | 168,235 | $ | 380,200 | ||
| Depreciation and amortization | 7,386 | 6,728 | 7,070 | 14,456 | 13,304 | |||||||
| EBITDA | $ | 105,936 | $ | 161,036 | $ | 76,755 | $ | 182,691 | $ | 393,504 | ||
| Corporate | ||||||||||||
| Unallocated corporate costs | $ | (12,610) | $ | (11,334) | $ | (11,478) | $ | (24,088) | $ | (21,714) | ||
| Foreign currency exchange gain (loss) | 320 | (499) | (73) | 247 | (367) | |||||||
| Pension expense (excluding service costs) | (41) | (41) | (41) | (82) | (212) | |||||||
| Change in fair value of interest rate swaps | 333 | 394 | (804) | (471) | 2,460 | |||||||
| Depreciation and amortization | 331 | 313 | 326 | 657 | 640 | |||||||
| EBITDA | (11,667) | (11,167) | (12,070) | (23,737) | (19,193) | |||||||
| Change in fair value of interest rate swaps | (333) | (394) | 804 | 471 | (2,460) | |||||||
| Corporate adjusted EBITDA | $ | (12,000) | $ | (11,561) | $ | (11,266) | $ | (23,266) | $ | (21,653) | ||
| Total Company adjusted EBITDA | $ | 220,976 | $ | 317,229 | $ | 158,674 | $ | 379,650 | $ | 743,361 |
13
Document
Exhibit 99.2
Boise Cascade Company
Quarterly Statistical Information
| Wood Products Segment | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| LVL sales volume (MCF) | 3,639 | 4,682 | 8,321 | ||||||||||||
| I-joist sales volume (MELF) | 38,711 | 62,950 | 101,661 | ||||||||||||
| Plywood sales volume (MSF 3/8") | 405,960 | 439,963 | 845,923 | ||||||||||||
| Lumber sales volume (MBF) | 31,560 | 32,528 | 64,088 | ||||||||||||
| LVL mill net sales price ($/CF) | $ | 31.17 | $ | 30.14 | $ | 30.59 | |||||||||
| I-joist mill net sales price ($/MELF) | $ | 2,168 | $ | 2,088 | $ | 2,118 | |||||||||
| Plywood net sales price ($/MSF 3/8") | $ | 367 | $ | 365 | $ | 366 | |||||||||
| Lumber net sales price ($/MBF) | $ | 724 | $ | 707 | $ | 715 | |||||||||
| Segment sales (000) | $ | 437,428 | $ | 530,273 | $ | 967,701 | |||||||||
| Segment income (000) | $ | 69,395 | $ | 104,035 | $ | 173,430 | |||||||||
| Segment depreciation and amortization (000) | $ | 23,790 | $ | 23,005 | $ | 46,795 | |||||||||
| Segment EBITDA (000)1 | $ | 93,185 | $ | 127,040 | $ | 220,225 | |||||||||
| EBITDA as a percentage of sales | 21.3 | % | 24.0 | % | 22.8 | % | |||||||||
| Capital spending (000) | $ | 7,262 | $ | 12,106 | $ | 19,368 | |||||||||
| Receivables (000) | $ | 77,318 | $ | 97,229 | |||||||||||
| Inventories (000) | $ | 232,136 | $ | 200,948 | |||||||||||
| Accounts payable (000) | $ | 63,275 | $ | 60,656 | |||||||||||
| 2022 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| LVL sales volume (MCF) | 4,641 | 4,586 | 5,190 | 3,176 | 17,593 | ||||||||||
| I-joist sales volume (MELF) | 65,362 | 69,467 | 64,421 | 30,130 | 229,380 | ||||||||||
| Plywood sales volume (MSF 3/8") | 316,941 | 280,594 | 328,586 | 392,975 | 1,319,096 | ||||||||||
| Lumber sales volume (MBF) | 17,139 | 16,935 | 24,045 | 24,985 | 83,104 | ||||||||||
| LVL mill net sales price ($/CF) | $ | 26.40 | $ | 28.47 | $ | 33.82 | $ | 34.36 | $ | 30.56 | |||||
| I-joist mill net sales price ($/MELF) | $ | 1,877 | $ | 2,066 | $ | 2,429 | $ | 2,553 | $ | 2,178 | |||||
| Plywood net sales price ($/MSF 3/8") | $ | 689 | $ | 569 | $ | 477 | $ | 396 | $ | 523 | |||||
| Lumber net sales price ($/MBF) | $ | 1,011 | $ | 1,214 | $ | 880 | $ | 720 | $ | 927 | |||||
| Segment sales (000) | $ | 558,944 | $ | 536,030 | $ | 595,320 | $ | 425,602 | $ | 2,115,896 | |||||
| Segment income (000) | $ | 190,116 | $ | 154,101 | $ | 155,972 | $ | 74,978 | $ | 575,167 | |||||
| Segment depreciation and amortization (000) | $ | 13,640 | $ | 13,653 | $ | 21,285 | $ | 24,730 | $ | 73,308 | |||||
| Segment EBITDA (000)1 | $ | 203,756 | $ | 167,754 | $ | 177,257 | $ | 99,708 | $ | 648,475 | |||||
| EBITDA as a percentage of sales | 36.5 | % | 31.3 | % | 29.8 | % | 23.4 | % | 30.6 | % | |||||
| Capital spending (000)2 | $ | 8,986 | $ | 12,861 | $ | 12,949 | $ | 17,138 | $ | 51,934 | |||||
| Receivables (000) | $ | 120,960 | $ | 113,395 | $ | 94,017 | $ | 43,406 | |||||||
| Inventories (000) | $ | 181,810 | $ | 191,411 | $ | 214,576 | $ | 229,361 | |||||||
| Accounts payable (000) | $ | 53,797 | $ | 65,272 | $ | 72,877 | $ | 44,202 |
Boise Cascade Company
Quarterly Statistical Information (continued)
| Wood Products Segment (continued) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q3 | Q4 | YTD | |||||||||||
| LVL sales volume (MCF) | 4,705 | 4,647 | 4,518 | 18,229 | ||||||||||
| I-joist sales volume (MELF) | 75,697 | 76,218 | 66,983 | 290,484 | ||||||||||
| Plywood sales volume (MSF 3/8") | 337,593 | 313,759 | 304,285 | 1,258,939 | ||||||||||
| Lumber sales volume (MBF) | 21,138 | 17,658 | 18,935 | 77,004 | ||||||||||
| LVL mill net sales price (/CF) | 19.00 | $ | 19.63 | $ | 22.30 | $ | 25.96 | $ | 21.73 | |||||
| I-joist mill net sales price (/MELF) | 1,319 | $ | 1,363 | $ | 1,575 | $ | 1,822 | $ | 1,514 | |||||
| Plywood net sales price (/MSF 3/8") | 556 | $ | 878 | $ | 561 | $ | 401 | $ | 606 | |||||
| Lumber net sales price (/MBF) | 975 | $ | 1,200 | $ | 1,184 | $ | 804 | $ | 1,043 | |||||
| Segment sales (000) | 432,335 | $ | 594,569 | $ | 497,316 | $ | 446,584 | $ | 1,970,804 | |||||
| Segment income (000) | 97,052 | $ | 213,761 | $ | 122,056 | $ | 98,366 | $ | 531,235 | |||||
| Segment depreciation and amortization (000) | 13,346 | $ | 14,128 | $ | 13,914 | $ | 13,861 | $ | 55,249 | |||||
| Segment EBITDA (000)1 | 110,398 | $ | 227,889 | $ | 135,970 | $ | 112,227 | $ | 586,484 | |||||
| EBITDA as a percentage of sales | % | 38.3 | % | 27.3 | % | 25.1 | % | 29.8 | % | |||||
| Capital spending (000) | 7,047 | $ | 7,673 | $ | 11,422 | $ | 22,138 | $ | 48,280 | |||||
| Receivables (000) | 100,595 | $ | 124,757 | $ | 95,307 | $ | 164,373 | |||||||
| Inventories (000) | 167,618 | $ | 182,465 | $ | 173,854 | $ | 169,451 | |||||||
| Accounts payable (000) | 47,515 | $ | 69,939 | $ | 57,129 | $ | 45,662 | |||||||
| 1Segment EBITDA is calculated as segment income before depreciation and amortization. | ||||||||||||||
| 2Capital spending in 2022 excludes 515.2 million of cash paid for the acquisition of businesses and facilities. |
All values are in US Dollars.
Boise Cascade Company
Quarterly Statistical Information (continued)
| Building Materials Distribution Segment | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Commodity sales | 39.7 | % | 37.5 | % | 38.5 | % | |||||||||
| General line sales | 38.7 | % | 39.6 | % | 39.2 | % | |||||||||
| EWP sales | 21.6 | % | 22.9 | % | 22.3 | % | |||||||||
| Total sales (000) | $ | 1,379,242 | $ | 1,636,538 | $ | 3,015,780 | |||||||||
| Gross margin1 | 14.8 | % | 15.0 | % | 14.9 | % | |||||||||
| Segment income (000) | $ | 69,685 | $ | 98,550 | $ | 168,235 | |||||||||
| Segment depreciation and amortization (000) | $ | 7,070 | $ | 7,386 | $ | 14,456 | |||||||||
| Segment EBITDA (000)2 | $ | 76,755 | $ | 105,936 | $ | 182,691 | |||||||||
| EBITDA as a percentage of sales | 5.6 | % | 6.5 | % | 6.1 | % | |||||||||
| Capital spending (000)3 | $ | 22,659 | $ | 25,929 | $ | 48,588 | |||||||||
| Receivables (000) | $ | 393,338 | $ | 445,991 | |||||||||||
| Inventories (000) | $ | 506,663 | $ | 502,085 | |||||||||||
| Accounts payable (000) | $ | 363,163 | $ | 390,840 | |||||||||||
| 2022 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Commodity sales | 52.2 | % | 44.9 | % | 39.6 | % | 41.5 | % | 44.9 | % | |||||
| General line sales | 29.1 | % | 32.9 | % | 35.3 | % | 37.1 | % | 33.3 | % | |||||
| EWP sales | 18.7 | % | 22.2 | % | 25.1 | % | 21.4 | % | 21.8 | % | |||||
| Total sales (000) | $ | 2,111,833 | $ | 2,131,200 | $ | 1,956,802 | $ | 1,443,780 | $ | 7,643,615 | |||||
| Gross margin1 | 18.0 | % | 13.9 | % | 15.4 | % | 15.8 | % | 15.8 | % | |||||
| Segment income (000) | $ | 225,892 | $ | 154,308 | $ | 154,436 | $ | 92,455 | $ | 627,091 | |||||
| Segment depreciation and amortization (000) | $ | 6,576 | $ | 6,728 | $ | 6,760 | $ | 6,941 | $ | 27,005 | |||||
| Segment EBITDA (000)2 | $ | 232,468 | $ | 161,036 | $ | 161,196 | $ | 99,396 | $ | 654,096 | |||||
| EBITDA as a percentage of sales | 11.0 | % | 7.6 | % | 8.2 | % | 6.9 | % | 8.6 | % | |||||
| Capital spending (000)4 | $ | 7,892 | $ | 10,009 | $ | 7,938 | $ | 34,624 | $ | 60,463 | |||||
| Receivables (000) | $ | 616,040 | $ | 540,167 | $ | 479,876 | $ | 286,789 | |||||||
| Inventories (000) | $ | 622,858 | $ | 612,196 | $ | 552,610 | $ | 468,189 | |||||||
| Accounts payable (000) | $ | 479,584 | $ | 413,235 | $ | 355,170 | $ | 215,308 |
Boise Cascade Company
Quarterly Statistical Information (continued)
| Building Materials Distribution Segment (continued) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q3 | Q4 | YTD | |||||||||||
| Commodity sales | % | 60.2 | % | 44.8 | % | 43.7 | % | 51.6 | % | |||||
| General line sales | % | 26.1 | % | 33.7 | % | 33.1 | % | 30.2 | % | |||||
| EWP sales | % | 13.7 | % | 21.5 | % | 23.2 | % | 18.2 | % | |||||
| Total sales (000) | 1,634,777 | $ | 2,172,744 | $ | 1,721,244 | $ | 1,645,513 | $ | 7,174,278 | |||||
| Gross margin1 | % | 15.6 | % | 7.9 | % | 16.2 | % | 13.8 | % | |||||
| Segment income (000) | 120,219 | $ | 206,338 | $ | 16,565 | $ | 137,963 | $ | 481,085 | |||||
| Segment depreciation and amortization (000) | 5,819 | $ | 5,917 | $ | 6,013 | $ | 6,258 | $ | 24,007 | |||||
| Segment EBITDA (000)2 | 126,038 | $ | 212,255 | $ | 22,578 | $ | 144,221 | $ | 505,092 | |||||
| EBITDA as a percentage of sales | % | 9.8 | % | 1.3 | % | 8.8 | % | 7.0 | % | |||||
| Capital spending (000)5 | 6,247 | $ | 10,499 | $ | 7,978 | $ | 32,833 | $ | 57,557 | |||||
| Receivables (000) | 497,466 | $ | 542,524 | $ | 445,542 | $ | 408,948 | |||||||
| Inventories (000) | 444,082 | $ | 544,739 | $ | 470,516 | $ | 491,220 | |||||||
| Accounts payable (000) | 438,562 | $ | 474,906 | $ | 391,742 | $ | 377,563 | |||||||
| 1We define gross margin as "Sales" less "Materials, labor, and other operating expenses (excluding depreciation)." Substantially all costs included in "Materials, labor, and other operating expenses (excluding depreciation)" for our Building Materials Distribution segment are for inventory purchased for resale. Gross margin percentage is gross margin as a percentage of segment sales. | ||||||||||||||
| 2Segment EBITDA is calculated as segment income before depreciation and amortization. | ||||||||||||||
| 3During 2023, capital spending in first quarter includes approximately 11 million to purchase a new facility in Kansas City, Missouri, to house an additional door shop assembly operation. | ||||||||||||||
| 4During 2022, capital spending in fourth quarter includes approximately 13 million to purchase a previously leased BMD property in Milton, Florida. | ||||||||||||||
| 5During 2021, capital spending in fourth quarter includes approximately 15 million to purchase a BMD property in Walton, Kentucky to expand our service capabilities in Cincinnati and the surrounding markets. |
All values are in US Dollars.
Boise Cascade Company
Quarterly Statistical Information (continued)
Reconciliation of Non-GAAP Financial Measures
(in thousands)
| Total Boise Cascade Company | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 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 tables reconcile net income to EBITDA and Adjusted EBITDA for the periods noted below: | ||||||||||
| 2023 | ||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Net income | $ | 96,733 | $ | 146,320 | $ | 243,053 | ||||
| Interest expense | 6,361 | 6,339 | 12,700 | |||||||
| Interest income | (9,685) | (11,519) | (21,204) | |||||||
| Income tax provision | 33,275 | 49,447 | 82,722 | |||||||
| Depreciation and amortization | 31,186 | 30,722 | 61,908 | |||||||
| EBITDA | 157,870 | 221,309 | 379,179 | |||||||
| Change in fair value of interest rate swaps | 804 | (333) | 471 | |||||||
| Adjusted EBITDA | $ | 158,674 | $ | 220,976 | $ | 379,650 | ||||
| 2022 | ||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Net income | $ | 302,600 | $ | 218,111 | $ | 219,587 | $ | 117,360 | $ | 857,658 |
| Interest expense | 6,254 | 6,317 | 6,398 | 6,443 | 25,412 | |||||
| Interest income | (65) | (1,385) | (3,238) | (7,575) | (12,263) | |||||
| Income tax provision | 98,866 | 73,886 | 76,042 | 39,929 | 288,723 | |||||
| Depreciation and amortization | 20,543 | 20,694 | 28,374 | 31,982 | 101,593 | |||||
| EBITDA | 428,198 | 317,623 | 327,163 | 188,139 | 1,261,123 | |||||
| Change in fair value of interest rate swaps | (2,066) | (394) | (1,134) | 35 | (3,559) | |||||
| Adjusted EBITDA | $ | 426,132 | $ | 317,229 | $ | 326,029 | $ | 188,174 | $ | 1,257,564 |
| 2021 | ||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Net income | $ | 149,156 | $ | 302,556 | $ | 91,699 | $ | 169,075 | $ | 712,486 |
| Interest expense | 5,875 | 6,347 | 6,279 | 6,305 | 24,806 | |||||
| Interest income | (59) | (51) | (63) | (22) | (195) | |||||
| Income tax provision | 51,448 | 101,026 | 31,158 | 52,733 | 236,365 | |||||
| Depreciation and amortization | 19,539 | 20,420 | 20,299 | 20,495 | 80,753 | |||||
| EBITDA | 225,959 | 430,298 | 149,372 | 248,586 | 1,054,215 | |||||
| Change in fair value of interest rate swaps | (1,024) | 25 | (59) | (687) | (1,745) | |||||
| Adjusted EBITDA | $ | 224,935 | $ | 430,323 | $ | 149,313 | $ | 247,899 | $ | 1,052,470 |
For additional information regarding the non-GAAP measures presented in this document, please refer to our press release announcing our second quarter 2023 financial results, a copy of which is attached as Exhibit 99.1 to our Current Report on Form 8-K furnished to the Securities and Exchange Commission on July 31, 2023.
5