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): November 1, 2021
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 November 1, 2021, Boise Cascade Company (the "Company") issued a press release announcing its third quarter 2021 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 furnished hereby, includes certain statistical information relative to the Company's quarterly performance.
The Company has reconciled all non-GAAP measures presented to the most directly comparable GAAP measure.
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 November 1, 2021. |
| 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: November 1, 2021 |
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: November 1, 2021
Boise Cascade Company Reports Third Quarter 2021 Results
BOISE, Idaho - 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."
Third Quarter 2021 Highlights
| 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 |
14
Document
Exhibit 99.2
Boise Cascade Company
Quarterly Statistical Information
| Wood Products Segment | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| LVL sales volume (MCF) | 4,359 | 4,705 | 4,647 | 13,711 | |||||||||||
| I-joist sales volume (MELF) | 71,586 | 75,697 | 76,218 | 223,501 | |||||||||||
| Plywood sales volume (MSF 3/8") | 303,302 | 337,593 | 313,759 | 954,654 | |||||||||||
| Lumber sales volume (MBF) | 19,273 | 21,138 | 17,658 | 58,069 | |||||||||||
| LVL mill net sales price ($/CF) | $ | 19.00 | $ | 19.63 | $ | 22.30 | $ | 20.33 | |||||||
| I-joist mill net sales price ($/MELF) | $ | 1,319 | $ | 1,363 | $ | 1,575 | $ | 1,421 | |||||||
| Plywood net sales price ($/MSF 3/8") | $ | 556 | $ | 878 | $ | 561 | $ | 672 | |||||||
| Lumber net sales price ($/MBF) | $ | 975 | $ | 1,200 | $ | 1,184 | $ | 1,120 | |||||||
| Segment sales (000) | $ | 432,335 | $ | 594,569 | $ | 497,316 | $ | 1,524,220 | |||||||
| Segment income (000) | $ | 97,052 | $ | 213,761 | $ | 122,056 | $ | 432,869 | |||||||
| Segment depreciation and amortization (000) | $ | 13,346 | $ | 14,128 | $ | 13,914 | $ | 41,388 | |||||||
| Segment EBITDA (000)1 | $ | 110,398 | $ | 227,889 | $ | 135,970 | $ | 474,257 | |||||||
| EBITDA as a percentage of sales | 25.5 | % | 38.3 | % | 27.3 | % | 31.1 | % | |||||||
| Capital spending (000) | $ | 7,047 | $ | 7,673 | $ | 11,422 | $ | 26,142 | |||||||
| Receivables (000) | $ | 100,595 | $ | 124,757 | $ | 95,307 | |||||||||
| Inventories (000) | $ | 167,618 | $ | 182,465 | $ | 173,854 | |||||||||
| Accounts payable (000) | $ | 47,515 | $ | 69,939 | $ | 57,129 | |||||||||
| 2020 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| LVL sales volume (MCF) | 4,673 | 3,847 | 4,560 | 4,262 | 17,342 | ||||||||||
| I-joist sales volume (MELF) | 59,487 | 49,514 | 63,000 | 68,784 | 240,785 | ||||||||||
| Plywood sales volume (MSF 3/8") | 317,843 | 313,995 | 315,950 | 305,159 | 1,252,947 | ||||||||||
| Lumber sales volume (MBF) | 22,807 | 21,901 | 21,592 | 19,794 | 86,094 | ||||||||||
| LVL mill net sales price ($/CF) | $ | 18.50 | $ | 18.36 | $ | 18.14 | $ | 18.04 | $ | 18.26 | |||||
| I-joist mill net sales price ($/MELF) | $ | 1,276 | $ | 1,260 | $ | 1,237 | $ | 1,212 | $ | 1,244 | |||||
| Plywood net sales price ($/MSF 3/8") | $ | 267 | $ | 287 | $ | 428 | $ | 407 | $ | 347 | |||||
| Lumber net sales price ($/MBF) | $ | 520 | $ | 535 | $ | 596 | $ | 820 | $ | 612 | |||||
| Segment sales (000) | $ | 320,061 | $ | 281,505 | $ | 363,674 | $ | 358,661 | $ | 1,323,901 | |||||
| Segment income (000) | $ | 3,763 | $ | 17,074 | $ | 66,035 | $ | 40,848 | $ | 127,720 | |||||
| Segment depreciation and amortization (000)2 | $ | 29,603 | $ | 13,931 | $ | 13,938 | $ | 13,669 | $ | 71,141 | |||||
| Segment EBITDA (000)1 | $ | 33,366 | $ | 31,005 | $ | 79,973 | $ | 54,517 | $ | 198,861 | |||||
| EBITDA as a percentage of sales | 10.4 | % | 11.0 | % | 22.0 | % | 15.2 | % | 15.0 | % | |||||
| Capital spending (000) | $ | 11,341 | $ | 5,644 | $ | 6,316 | $ | 14,929 | $ | 38,230 | |||||
| Receivables (000) | $ | 69,136 | $ | 67,674 | $ | 86,892 | $ | 62,994 | |||||||
| Inventories (000) | $ | 164,230 | $ | 140,120 | $ | 136,681 | $ | 149,374 | |||||||
| Accounts payable (000) | $ | 44,315 | $ | 38,898 | $ | 48,194 | $ | 44,593 |
Boise Cascade Company
Quarterly Statistical Information (continued)
| Wood Products Segment (continued) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q3 | Q4 | YTD | |||||||||||
| LVL sales volume (MCF) | 4,594 | 4,632 | 4,343 | 17,901 | ||||||||||
| I-joist sales volume (MELF) | 60,402 | 60,018 | 53,966 | 226,552 | ||||||||||
| Plywood sales volume (MSF 3/8") | 343,035 | 343,422 | 314,769 | 1,337,215 | ||||||||||
| Lumber sales volume (MBF) | 22,059 | 22,001 | 20,816 | 85,270 | ||||||||||
| LVL mill net sales price (/CF) | 18.87 | $ | 18.70 | $ | 18.59 | $ | 18.51 | $ | 18.66 | |||||
| I-joist mill net sales price (/MELF) | 1,266 | $ | 1,279 | $ | 1,268 | $ | 1,266 | $ | 1,270 | |||||
| Plywood net sales price (/MSF 3/8") | 287 | $ | 272 | $ | 254 | $ | 251 | $ | 266 | |||||
| Lumber net sales price (/MBF) | 653 | $ | 637 | $ | 601 | $ | 552 | $ | 611 | |||||
| Segment sales (000) | 319,523 | $ | 334,256 | $ | 325,102 | $ | 296,286 | $ | 1,275,167 | |||||
| Segment income (000) | 11,630 | $ | 18,908 | $ | 15,597 | $ | 8,062 | $ | 54,197 | |||||
| Segment depreciation and amortization (000) | 13,738 | $ | 14,092 | $ | 15,252 | $ | 14,589 | $ | 57,671 | |||||
| Segment EBITDA (000)1 | 25,368 | $ | 33,000 | $ | 30,849 | $ | 22,651 | $ | 111,868 | |||||
| EBITDA as a percentage of sales | % | 9.9 | % | 9.5 | % | 7.6 | % | 8.8 | % | |||||
| Capital spending (000) | 10,694 | $ | 10,883 | $ | 9,045 | $ | 22,838 | $ | 53,460 | |||||
| Receivables (000) | 65,977 | $ | 69,742 | $ | 65,340 | $ | 46,712 | |||||||
| Inventories (000) | 183,413 | $ | 163,846 | $ | 153,801 | $ | 158,746 | |||||||
| Accounts payable (000) | 45,370 | $ | 50,589 | $ | 46,238 | $ | 44,356 | |||||||
| 1Segment EBITDA is calculated as segment income before depreciation and amortization. | ||||||||||||||
| 2Segment depreciation and amortization in first quarter 2020 includes accelerated depreciation of 15.0 million to fully depreciate the curtailed I-joist production assets at our Roxboro, North Carolina facility. |
All values are in US Dollars.
Boise Cascade Company
Quarterly Statistical Information (continued)
| Building Materials Distribution Segment | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Commodity sales | 55.4 | % | 60.2 | % | 44.8 | % | 54.0 | % | |||||||
| General line sales | 28.9 | % | 26.1 | % | 33.7 | % | 29.3 | % | |||||||
| EWP sales | 15.7 | % | 13.7 | % | 21.5 | % | 16.7 | % | |||||||
| Total sales (000) | $ | 1,634,777 | $ | 2,172,744 | $ | 1,721,244 | $ | 5,528,765 | |||||||
| Gross margin1 | 15.1 | % | 15.6 | % | 7.9 | % | 13.1 | % | |||||||
| Segment income (000) | $ | 120,219 | $ | 206,338 | $ | 16,565 | $ | 343,122 | |||||||
| Segment depreciation and amortization (000) | $ | 5,819 | $ | 5,917 | $ | 6,013 | $ | 17,749 | |||||||
| Segment EBITDA (000)2 | $ | 126,038 | $ | 212,255 | $ | 22,578 | $ | 360,871 | |||||||
| EBITDA as a percentage of sales | 7.7 | % | 9.8 | % | 1.3 | % | 6.5 | % | |||||||
| Capital spending (000) | $ | 6,247 | $ | 10,499 | $ | 7,978 | $ | 24,724 | |||||||
| Receivables (000) | $ | 497,466 | $ | 542,524 | $ | 445,542 | |||||||||
| Inventories (000) | $ | 444,082 | $ | 544,739 | $ | 470,516 | |||||||||
| Accounts payable (000) | $ | 438,562 | $ | 474,906 | $ | 391,742 | |||||||||
| 2020 | |||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Commodity sales | 41.9 | % | 43.2 | % | 50.0 | % | 49.7 | % | 46.6 | % | |||||
| General line sales | 37.9 | % | 39.5 | % | 33.6 | % | 32.6 | % | 35.6 | % | |||||
| EWP sales | 20.2 | % | 17.3 | % | 16.4 | % | 17.7 | % | 17.8 | % | |||||
| Total sales (000) | $ | 1,049,997 | $ | 1,134,260 | $ | 1,437,683 | $ | 1,330,078 | $ | 4,952,018 | |||||
| Gross margin1 | 12.6 | % | 13.4 | % | 16.4 | % | 13.0 | % | 14.0 | % | |||||
| Segment income (000) | $ | 29,302 | $ | 43,210 | $ | 107,901 | $ | 67,081 | $ | 247,494 | |||||
| Segment depreciation and amortization (000) | $ | 5,344 | $ | 5,584 | $ | 5,686 | $ | 5,846 | $ | 22,460 | |||||
| Segment EBITDA (000)2 | $ | 34,646 | $ | 48,794 | $ | 113,587 | $ | 72,927 | $ | 269,954 | |||||
| EBITDA as a percentage of sales | 3.3 | % | 4.3 | % | 7.9 | % | 5.5 | % | 5.5 | % | |||||
| Capital spending (000) | $ | 6,528 | $ | 4,358 | $ | 11,708 | $ | 17,382 | $ | 39,976 | |||||
| Receivables (000) | $ | 304,082 | $ | 322,430 | $ | 386,236 | $ | 349,628 | |||||||
| Inventories (000) | $ | 372,084 | $ | 316,008 | $ | 317,646 | $ | 354,106 | |||||||
| Accounts payable (000) | $ | 282,886 | $ | 297,147 | $ | 357,381 | $ | 269,650 |
Boise Cascade Company
Quarterly Statistical Information (continued)
| Building Materials Distribution Segment (continued) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q3 | Q4 | YTD | |||||||||||
| Commodity sales | % | 41.0 | % | 40.8 | % | 41.4 | % | 41.7 | % | |||||
| General line sales | % | 39.2 | % | 39.7 | % | 37.8 | % | 38.2 | % | |||||
| EWP sales | % | 19.8 | % | 19.5 | % | 20.8 | % | 20.1 | % | |||||
| Total sales (000) | 907,708 | $ | 1,097,421 | $ | 1,145,621 | $ | 986,969 | $ | 4,137,719 | |||||
| Gross margin1 | % | 12.4 | % | 13.0 | % | 13.0 | % | 12.6 | % | |||||
| Segment income (000) | 17,517 | $ | 33,800 | $ | 38,665 | $ | 26,254 | $ | 116,236 | |||||
| Segment depreciation and amortization (000) | 5,132 | $ | 5,028 | $ | 5,278 | $ | 5,331 | $ | 20,769 | |||||
| Segment EBITDA (000)2 | 22,649 | $ | 38,828 | $ | 43,943 | $ | 31,585 | $ | 137,005 | |||||
| EBITDA as a percentage of sales | % | 3.5 | % | 3.8 | % | 3.2 | % | 3.3 | % | |||||
| Capital spending (000)3 | 3,634 | $ | 5,163 | $ | 10,582 | $ | 5,667 | $ | 25,046 | |||||
| Receivables (000) | 264,867 | $ | 288,032 | $ | 276,407 | $ | 204,410 | |||||||
| Inventories (000) | 390,447 | $ | 360,605 | $ | 338,787 | $ | 338,851 | |||||||
| Accounts payable (000) | 259,368 | $ | 238,932 | $ | 257,818 | $ | 177,155 | |||||||
| 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 2019, capital spending in second quarter excludes 15.7 million of cash paid for the acquisition of businesses and facilities. |
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 and loss on extinguishment of debt. The following tables reconcile net income to EBITDA and Adjusted EBITDA for the periods noted below: | ||||||||||
| 2021 | ||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Net income | $ | 149,156 | $ | 302,556 | $ | 91,699 | $ | 543,411 | ||
| Interest expense | 5,875 | 6,347 | 6,279 | 18,501 | ||||||
| Interest income | (59) | (51) | (63) | (173) | ||||||
| Income tax provision | 51,448 | 101,026 | 31,158 | 183,632 | ||||||
| Depreciation and amortization | 19,539 | 20,420 | 20,299 | 60,258 | ||||||
| EBITDA | 225,959 | 430,298 | 149,372 | 805,629 | ||||||
| Change in fair value of interest rate swaps | (1,024) | 25 | (59) | (1,058) | ||||||
| Adjusted EBITDA | $ | 224,935 | $ | 430,323 | $ | 149,313 | $ | 804,571 | ||
| 2020 | ||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Net income | $ | 12,200 | $ | 33,586 | $ | 103,192 | $ | 26,001 | $ | 174,979 |
| Interest expense | 6,421 | 6,633 | 7,002 | 6,167 | 26,223 | |||||
| Interest income | (655) | (190) | (113) | (41) | (999) | |||||
| Income tax provision | 4,007 | 11,334 | 34,633 | 61,358 | 111,332 | |||||
| Depreciation and amortization | 35,332 | 19,899 | 20,029 | 19,909 | 95,169 | |||||
| EBITDA | 57,305 | 71,262 | 164,743 | 113,394 | 406,704 | |||||
| Change in fair value of interest rate swaps | 2,314 | 514 | (147) | (255) | 2,426 | |||||
| Loss on extinguishment of debt | — | — | 13,968 | — | 13,968 | |||||
| Adjusted EBITDA | $ | 59,619 | $ | 71,776 | $ | 178,564 | $ | 113,139 | $ | 423,098 |
| 2019 | ||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Net income | $ | 11,389 | $ | 27,718 | $ | 27,171 | $ | 14,647 | $ | 80,925 |
| Interest expense | 6,437 | 6,486 | 6,532 | 6,596 | 26,051 | |||||
| Interest income | (492) | (416) | (837) | (1,066) | (2,811) | |||||
| Income tax provision | 3,200 | 9,751 | 9,650 | 4,705 | 27,306 | |||||
| Depreciation and amortization | 19,217 | 19,454 | 20,969 | 20,501 | 80,141 | |||||
| EBITDA | 39,751 | 62,993 | 63,485 | 45,383 | 211,612 | |||||
| Change in fair value of interest rate swaps | 983 | 1,551 | 569 | (140) | 2,963 | |||||
| Adjusted EBITDA | $ | 40,734 | $ | 64,544 | $ | 64,054 | $ | 45,243 | $ | 214,575 |
For additional information regarding the non-GAAP measures presented in this document, please refer to our press release announcing our third quarter 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 November 1, 2021.
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