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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): October 31, 2022
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 October 31, 2022, Boise Cascade Company (the "Company") issued a press release announcing its third quarter 2022 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
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
Senior Vice President, General Counsel and Secretary
Date: October 31, 2022



EX-99.1 2 bccexhibit9919302022.htm EARNINGS RELEASE Document

Boise Cascade Company Exhibit 99.1
1111 West Jefferson Street, Suite 300
Boise, ID 83702
News Release
bcclogoa02a05.jpg
Investor Relations Contact - Kelly Hibbs
208 384 3638
Media Contact - Lisa Tschampl
208 384 6552

For Immediate Release: October 31, 2022

Boise Cascade Company Reports Third Quarter 2022 Results

BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $219.6 million, or $5.52 per share, on sales of $2.2 billion for the third quarter ended September 30, 2022, compared with 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.

"The outstanding work of associates across our organization was evident as both businesses reported strong financial results during the third quarter despite the softening economic landscape. In addition, we have made good progress on successfully integrating the recently acquired Coastal operations as we work to expand our EWP capacity and further leverage our integrated business model," commented Nate Jorgensen, CEO. "We also recently rewarded our shareholders with an increase in our quarterly dividend and an additional special dividend without sacrificing significant balance sheet flexibility. We remain committed to supporting our vendor and customer partners and executing our key strategic priorities as we navigate market uncertainties and clear signals of weaker near-term demand for new residential construction."
Third Quarter 2022 Highlights
3Q 2022 3Q 2021 % change
(in thousands, except per-share data and percentages)
Consolidated Results
Sales $ 2,154,647  $ 1,879,451  15  %
Net income 219,587  91,699  139  %
Net income per common share - diluted 5.52  2.31  139  %
Adjusted EBITDA 1
326,029  149,313  118  %
Segment Results
Wood Products sales $ 595,320  $ 497,316  20  %
Wood Products income 155,972  122,056  28  %
Wood Products EBITDA 1
177,257  135,970  30  %
Building Materials Distribution sales 1,956,802  1,721,244  14  %
Building Materials Distribution income 154,436  16,565  832  %
Building Materials Distribution EBITDA 1
161,196  22,578  614  %
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.




    In third quarter 2022, total U.S. housing starts decreased 7%, driven by a decrease in single-family housing starts of 18% compared to the same period in 2021. On a year-to-date basis through September 2022, total housing starts increased 1%, driven by an increase in multi-family housing starts compared to the same period in 2021. However, single-family housing starts decreased 6% when compared with the same period in 2021. Single-family housing starts are the key demand driver for our sales.

Wood Products

    Wood Products' sales, including sales to Building Materials Distribution (BMD), increased $98.0 million, or 20%, to $595.3 million for the three months ended September 30, 2022, from $497.3 million for the three months ended September 30, 2021. The increase in sales was driven primarily by higher sales prices for I-joists and LVL (collectively referred to as EWP) and higher sales volumes for LVL. In addition, plywood sales volumes increased due to our acquisition of Coastal Plywood and its plywood manufacturing operations on July 25, 2022 (the Acquisition). These increases were offset partially by lower plywood sales prices and lower sales volumes for I-joists.

    Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:
    
3Q 2022 vs. 3Q 2021 3Q 2022 vs. 2Q 2022
 Average Net Selling Prices
    LVL 52% 19%
    I-joists 54% 18%
    Plywood (15)% (16)%
 Sales Volumes
    LVL 12% 13%
    I-joists (15)% (7)%
    Plywood 5% 17%

    Wood Products' segment income increased $33.9 million to $156.0 million for the three months ended September 30, 2022, from $122.1 million for the three months ended September 30, 2021. The increase in segment income was due primarily to higher EWP sales prices, offset partially by lower plywood sales prices, as well as higher manufacturing costs. In addition, the Acquisition was the primary driver of the increase in depreciation and amortization and general and administrative expenses.
    
Building Materials Distribution

    BMD's sales increased $235.6 million, or 14%, to $1,956.8 million for the three months ended September 30, 2022, from $1,721.2 million for the three months ended September 30, 2021. Compared with the same quarter in the prior year, the overall increase in sales was driven by a sales price increase of 15%, offset partially by a sales volume decrease of 1%. By product line, commodity sales increased 1%, general line product sales increased 19%, and sales of EWP (substantially all of which are sourced through our Wood Products segment) increased 33%.

    BMD segment income increased $137.8 million to $154.4 million for the three months ended September 30, 2022, from $16.6 million in the comparative prior year quarter. The increase in segment income was driven primarily by a gross margin increase of $166.1 million, resulting primarily from margin improvements on commodity products. In addition, selling and distribution expenses increased $25.7 million.

Balance Sheet and Liquidity

    Boise Cascade ended third quarter 2022 with $867.1 million of cash and cash equivalents and $396.2 million of undrawn committed bank line availability, for total available liquidity of $1,263.2 million. The Company had $444.2 million of outstanding debt at September 30, 2022.

2


    On September 9, 2022, we entered into the Eighth Amendment to the Amended and Restated Credit Agreement (the Amendment) related to the Company's senior secured asset-based revolving credit facility and term loan. The Amendment increases the maximum amount available for revolving loans from $350 million to $400 million, extends the maturity date of the agreement, and replaced the LIBOR rate with Secured Overnight Financing Rate (SOFR). The term loan remains at $50.0 million. For additional information regarding the Amendment, see our Form 10-Q for the quarterly period ended September 30, 2022, filed with the Securities and Exchange Commission.    

    Excluding acquisitions, we expect capital expenditures in 2022 to total approximately $100 million to $120 million. Our 2022 capital expenditures range includes funding for our BMD organic expansions in Ohio, Kentucky, and Minnesota, replacement of a dryer at our Chester, South Carolina, veneer and plywood plant, and post-acquisition veneer equipment related spending at our Chapman, Alabama facility. We expect capital expenditures in 2023 to total approximately $120 million to $140 million. These levels of capital expenditures could increase or decrease as a result of several factors, including acquisitions, efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

Dividends
    
    On October 27, 2022, our board of directors declared a quarterly dividend of $0.15 per share on our common stock, as well as a special dividend of $1.00 per share on our common stock, both payable on December 15, 2022, to stockholders of record on December 1, 2022.

    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. Consensus forecasts for 2022 single- and multi-family housing starts in the U.S are between 1.5 million and 1.6 million units, or essentially flat compared to 2021. In addition, the age of U.S. housing stock and elevated levels of homeowner equity provide a favorable backdrop for repair-and-remodel spending. However, continued actions by the Federal Reserve to increase interest rates to combat high levels of inflation have significantly increased mortgage rates and created a great deal of uncertainty broadly across the U.S. economy. As such, due to home affordability constraints and a weakening economy, the pace of new residential construction has slowed and we expect demand to continue to decline for the remainder of 2022 and into 2023. Consensus forecasts for 2023 single- and multi-family housing starts in the U.S. are estimated to be 15% to 20% below 2022 levels. While likely tempered by an economic slowdown, we anticipate the primary drivers of repair-and-remodeling activity to continue to be supportive of 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. We expect future commodity product pricing and commodity input costs to 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, we expect future price erosion on our EWP and general line products as economic activity slows and demand weakens for new residential construction.
    
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.

3


Webcast and Conference Call

    Boise Cascade will host a webcast and conference call to discuss third quarter earnings on Tuesday, November 1, 2022, at 11 a.m. Eastern.

    To join the webcast, go to the Investor Relations section at www.bc.com 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 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.

    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, our ability to efficiently and effectively integrate the Coastal Plywood acquisition, the effect of COVID-19 and related variants, 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.

4


Boise Cascade Company
Consolidated Statements of Operations
(in thousands, except per-share data) (unaudited)
Three Months Ended Nine Months Ended
September 30 June 30, 2022 September 30
2022 2021 2022 2021
Sales $ 2,154,647  $ 1,879,451  $ 2,278,072  $ 6,759,001  $ 6,143,928 
Costs and expenses  
Materials, labor, and other operating expenses (excluding depreciation) 1,655,979  1,594,405  1,797,948  5,183,823  4,909,362 
Depreciation and amortization 28,374  20,299  20,694  69,611  60,258 
Selling and distribution expenses 142,176  114,466  134,279  423,106  366,119 
General and administrative expenses 27,622  21,002  27,701  81,375  64,252 
Other (income) expense, net 1,126  (107) 375  (987) (485)
1,855,277  1,750,065  1,980,997  5,756,928  5,399,506 
Income from operations 299,370  129,386  297,075  1,002,073  744,422 
Foreign currency exchange loss (1,674) (353) (499) (2,041) (52)
Pension expense (excluding service costs) (41) (19) (41) (253) (57)
Interest expense (6,398) (6,279) (6,317) (18,969) (18,501)
Interest income 3,238  63  1,385  4,688  173 
Change in fair value of interest rate swaps 1,134  59  394  3,594  1,058 
(3,741) (6,529) (5,078) (12,981) (17,379)
Income before income taxes 295,629  122,857  291,997  989,092  727,043 
Income tax provision (76,042) (31,158) (73,886) (248,794) (183,632)
Net income $ 219,587  $ 91,699  $ 218,111  $ 740,298  $ 543,411 
Weighted average common shares outstanding:
  Basic 39,544  39,442  39,544  39,521  39,413 
  Diluted 39,776  39,661  39,763  39,762  39,623 
Net income per common share:
  Basic $ 5.55  $ 2.32  $ 5.52  $ 18.73  $ 13.79 
  Diluted $ 5.52  $ 2.31  $ 5.49  $ 18.62  $ 13.71 
Dividends declared per common share $ 0.12  $ 0.10  $ 2.62  $ 2.86  $ 2.30 


5


Wood Products Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
Three Months Ended Nine Months Ended
September 30 June 30, 2022 September 30
2022 2021 2022 2021
Segment sales $ 595,320  $ 497,316  $ 536,030  $ 1,690,294  $ 1,524,220 
Costs and expenses        
Materials, labor, and other operating expenses (excluding depreciation) 398,008  348,167  351,557  1,093,274  1,010,691 
Depreciation and amortization 21,285  13,914  13,653  48,578  41,388 
Selling and distribution expenses 11,164  9,124  10,349  30,743  26,958 
General and administrative expenses 7,717  4,023  5,826  18,189  12,214 
Other (income) expense, net 1,174  32  544  (679) 100 
439,348  375,260  381,929  1,190,105  1,091,351 
Segment income $ 155,972  $ 122,056  $ 154,101  $ 500,189  $ 432,869 
(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) 66.9  % 70.0  % 65.6  % 64.7  % 66.3  %
Depreciation and amortization 3.6  % 2.8  % 2.5  % 2.9  % 2.7  %
Selling and distribution expenses 1.9  % 1.8  % 1.9  % 1.8  % 1.8  %
General and administrative expenses 1.3  % 0.8  % 1.1  % 1.1  % 0.8  %
Other (income) expense, net 0.2  % —  % 0.1  % —  % —  %
73.8  % 75.5  % 71.3  % 70.4  % 71.6  %
Segment income 26.2  % 24.5  % 28.7  % 29.6  % 28.4  %

6


Building Materials Distribution Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
Three Months Ended Nine Months Ended
September 30 June 30, 2022 September 30
2022 2021 2022 2021
Segment sales $ 1,956,802  $ 1,721,244  $ 2,131,200  $ 6,199,835  $ 5,528,765 
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation) 1,655,257  1,585,804  1,835,845  5,221,905  4,806,084 
Depreciation and amortization 6,760  6,013  6,728  20,064  17,749 
Selling and distribution expenses 131,012  105,342  123,930  392,363  339,163 
General and administrative expenses 9,480  7,816  10,558  31,264  24,627 
Other (income) expense, net (143) (296) (169) (397) (1,980)
1,802,366  1,704,679  1,976,892  5,665,199  5,185,643 
Segment income $ 154,436  $ 16,565  $ 154,308  $ 534,636  $ 343,122 
(percentage of sales)
Segment sales 100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation) 84.6  % 92.1  % 86.1  % 84.2  % 86.9  %
Depreciation and amortization 0.3  % 0.3  % 0.3  % 0.3  % 0.3  %
Selling and distribution expenses 6.7  % 6.1  % 5.8  % 6.3  % 6.1  %
General and administrative expenses 0.5  % 0.5  % 0.5  % 0.5  % 0.4  %
Other (income) expense, net —  % —  % —  % —  % —  %
92.1  % 99.0  % 92.8  % 91.4  % 93.8  %
Segment income 7.9  % 1.0  % 7.2  % 8.6  % 6.2  %

7


Segment Information
(in thousands) (unaudited)
Three Months Ended Nine Months Ended
September 30 June 30, 2022 September 30
2022 2021 2022 2021
Segment sales
Wood Products $ 595,320  $ 497,316  $ 536,030  $ 1,690,294  $ 1,524,220 
Building Materials Distribution 1,956,802  1,721,244  2,131,200  6,199,835  5,528,765 
Intersegment eliminations (397,475) (339,109) (389,158) (1,131,128) (909,057)
Total net sales $ 2,154,647  $ 1,879,451  $ 2,278,072  $ 6,759,001  $ 6,143,928 
Segment income
Wood Products $ 155,972  $ 122,056  $ 154,101  $ 500,189  $ 432,869 
Building Materials Distribution 154,436  16,565  154,308  534,636  343,122 
Total segment income 310,408  138,621  308,409  1,034,825  775,991 
Unallocated corporate costs (11,038) (9,235) (11,334) (32,752) (31,569)
Income from operations $ 299,370  $ 129,386  $ 297,075  $ 1,002,073  $ 744,422 
Segment EBITDA (a)
Wood Products $ 177,257  $ 135,970  $ 167,754  $ 548,767  $ 474,257 
Building Materials Distribution 161,196  22,578  161,036  554,700  360,871 

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


8


Boise Cascade Company
Consolidated Balance Sheets
(in thousands) (unaudited)
September 30, 2022 December 31, 2021
ASSETS
Current
Cash and cash equivalents $ 867,064  $ 748,907 
Receivables  
Trade, less allowances of $3,165 and $2,054
511,047  444,325 
Related parties 191  211 
Other 18,004  17,692 
Inventories 767,187  660,671 
Prepaid expenses and other 17,944  14,072 
Total current assets 2,181,437  1,885,878 
 
Property and equipment, net 744,547  495,240 
Operating lease right-of-use assets 59,631  62,663 
Finance lease right-of-use assets 27,151  29,057 
Timber deposits 9,563  9,461 
Goodwill 134,356  60,382 
Intangible assets, net 169,538  15,351 
Deferred income taxes 7,852  6,589 
Other assets 14,459  8,019 
Total assets $ 3,348,534  $ 2,572,640 

9


Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data) (unaudited)
September 30, 2022 December 31, 2021
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade $ 398,397  $ 334,985 
Related parties 1,988  1,498 
Accrued liabilities  
Compensation and benefits 147,548  128,518 
Income taxes payable 12,365  — 
Interest payable 5,081  9,886 
Other 174,084  165,859 
Total current liabilities 739,463  640,746 
Debt  
Long-term debt 444,175  444,628 
Other  
Compensation and benefits 30,562  28,365 
Operating lease liabilities, net of current portion 51,992  55,263 
Finance lease liabilities, net of current portion 30,547  31,898 
Deferred income taxes 50,884  3,641 
Other long-term liabilities 17,839  15,480 
181,824  134,647 
 
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, 44,815 and 44,698 shares issued, respectively
448  447 
Treasury stock, 5,367 shares at cost
(138,909) (138,909)
Additional paid-in capital
548,035  543,249 
Accumulated other comprehensive loss
(902) (1,047)
Retained earnings 1,574,400  948,879 
Total stockholders' equity 1,983,072  1,352,619 
Total liabilities and stockholders' equity $ 3,348,534  $ 2,572,640 

10


Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands) (unaudited)
Nine Months Ended September 30
2022 2021
Cash provided by (used for) operations
Net income $ 740,298  $ 543,411 
Items in net income not using (providing) cash  
Depreciation and amortization, including deferred financing costs and other
71,213  61,559 
Stock-based compensation 8,690  5,684 
Pension expense 253  57 
Deferred income taxes 45,365  (12,017)
Change in fair value of interest rate swaps (3,594) (1,058)
Other (830) 928 
Decrease (increase) in working capital, net of acquisitions  
Receivables (51,027) (99,881)
Inventories (83,539) (142,171)
Prepaid expenses and other (5,901) (7,007)
Accounts payable and accrued liabilities 78,444  186,090 
Pension contributions (922) (229)
Income taxes payable 14,970  (7,927)
Other 705  (348)
Net cash provided by operations 814,125  527,091 
Cash provided by (used for) investment
Expenditures for property and equipment (61,835) (51,460)
Acquisitions of businesses and facilities (516,881) — 
Proceeds from sales of assets and other 3,094  636 
Net cash used for investment (575,622) (50,824)
Cash provided by (used for) financing
Borrowings of long-term debt, including revolving credit facility —  28,000 
Payments of long-term debt, including revolving credit facility —  (28,000)
Payments of deferring financing costs (1,170) — 
Dividends paid on common stock (114,025) (90,969)
Tax withholding payments on stock-based awards (3,930) (2,729)
Other (1,221) (1,065)
Net cash used for financing (120,346) (94,763)
Net increase in cash and cash equivalents 118,157  381,504 
Balance at beginning of the period 748,907  405,382 
Balance at end of the period $ 867,064  $ 786,886 
11


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 2021 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. The following table reconciles net income to EBITDA and Adjusted EBITDA for (i) the three months ended September 30, 2022 and 2021, (ii) the three months ended June 30, 2022, and (iii) the nine months ended September 30, 2022 and 2021:
Three Months Ended Nine Months Ended
September 30 June 30, 2022 September 30
2022 2021 2022 2021
(in thousands)
Net income $ 219,587  $ 91,699  $ 218,111  $ 740,298  $ 543,411 
Interest expense 6,398  6,279  6,317  18,969  18,501 
Interest income (3,238) (63) (1,385) (4,688) (173)
Income tax provision 76,042  31,158  73,886  248,794  183,632 
Depreciation and amortization 28,374  20,299  20,694  69,611  60,258 
EBITDA 327,163  149,372  317,623  1,072,984  805,629 
Change in fair value of interest rate swaps (1,134) (59) (394) (3,594) (1,058)
Adjusted EBITDA $ 326,029  $ 149,313  $ 317,229  $ 1,069,390  $ 804,571 
12


    The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended September 30, 2022 and 2021, (ii) three months ended June 30, 2022, and (iii) the nine months ended September 30, 2022 and 2021:
Three Months Ended Nine Months Ended
September 30 June 30, 2022 September 30
2022 2021 2022 2021
(in thousands)
Wood Products
Segment income $ 155,972  $ 122,056  $ 154,101  $ 500,189  $ 432,869 
Depreciation and amortization 21,285  13,914  13,653  48,578  41,388 
EBITDA $ 177,257  $ 135,970  $ 167,754  $ 548,767  $ 474,257 
Building Materials Distribution
Segment income $ 154,436  $ 16,565  $ 154,308  $ 534,636  $ 343,122 
Depreciation and amortization 6,760  6,013  6,728  20,064  17,749 
EBITDA $ 161,196  $ 22,578  $ 161,036  $ 554,700  $ 360,871 
Corporate
Unallocated corporate costs $ (11,038) $ (9,235) $ (11,334) $ (32,752) $ (31,569)
Foreign currency exchange loss (1,674) (353) (499) (2,041) (52)
Pension expense (excluding service costs) (41) (19) (41) (253) (57)
Change in fair value of interest rate swaps 1,134  59  394  3,594  1,058 
Depreciation and amortization 329  372  313  969  1,121 
EBITDA (11,290) (9,176) (11,167) (30,483) (29,499)
Change in fair value of interest rate swaps (1,134) (59) (394) (3,594) (1,058)
Corporate adjusted EBITDA $ (12,424) $ (9,235) $ (11,561) $ (34,077) $ (30,557)
Total Company adjusted EBITDA $ 326,029  $ 149,313  $ 317,229  $ 1,069,390  $ 804,571 




13
EX-99.2 3 bccexhibit9929302022.htm QUARTERLY STATISTICAL INFORMATION Document

Exhibit 99.2
Boise Cascade Company
Quarterly Statistical Information
Wood Products Segment
2022
Q1 Q2 Q3 Q4 YTD
 LVL sales volume (MCF) 4,641  4,586  5,190  14,417 
 I-joist sales volume (MELF) 65,362  69,467  64,421  199,250 
 Plywood sales volume (MSF 3/8") 316,941  280,594  328,586  926,121 
 Lumber sales volume (MBF) 17,139  16,935  24,045  58,119 
 LVL mill net sales price ($/CF) $ 26.40  $ 28.47  $ 33.82  $ 29.73 
 I-joist mill net sales price ($/MELF) $ 1,877  $ 2,066  $ 2,429  $ 2,121 
 Plywood net sales price ($/MSF 3/8") $ 689  $ 569  $ 477  $ 577 
 Lumber net sales price ($/MBF) $ 1,011  $ 1,214  $ 880  $ 1,016 
 Segment sales (000) $ 558,944  $ 536,030  $ 595,320  $ 1,690,294 
 Segment income (000) $ 190,116  $ 154,101  $ 155,972  $ 500,189 
 Segment depreciation and amortization (000) $ 13,640  $ 13,653  $ 21,285  $ 48,578 
 Segment EBITDA (000)1
$ 203,756  $ 167,754  $ 177,257  $ 548,767 
 EBITDA as a percentage of sales 36.5  % 31.3  % 29.8  % 32.5  %
 Capital spending (000)3
$ 8,986  $ 12,861  $ 12,949  $ 34,796 
 Receivables (000) $ 120,960  $ 113,395  $ 94,017 
 Inventories (000) $ 181,810  $ 191,411  $ 214,576 
 Accounts payable (000) $ 53,797  $ 65,272  $ 72,877 
2021
Q1 Q2 Q3 Q4 YTD
 LVL sales volume (MCF) 4,359  4,705  4,647  4,518  18,229 
 I-joist sales volume (MELF) 71,586  75,697  76,218  66,983  290,484 
 Plywood sales volume (MSF 3/8") 303,302  337,593  313,759  304,285  1,258,939 
 Lumber sales volume (MBF) 19,273  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 25.5  % 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 


1


Boise Cascade Company
Quarterly Statistical Information (continued)
Wood Products Segment (continued)
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 
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.
3Capital spending in third quarter 2022 excludes $516.9 million of cash paid for the acquisition of businesses and facilities.

2


Boise Cascade Company
Quarterly Statistical Information (continued)
Building Materials Distribution Segment
2022
Q1 Q2 Q3 Q4 YTD
 Commodity sales 52.2  % 44.9  % 39.6  % 45.7  %
 General line sales 29.1  % 32.9  % 35.3  % 32.4  %
 EWP sales 18.7  % 22.2  % 25.1  % 21.9  %
 Total sales (000) $ 2,111,833  $ 2,131,200  $ 1,956,802  $ 6,199,835 
 Gross margin1
18.0  % 13.9  % 15.4  % 15.8  %
 Segment income (000) $ 225,892  $ 154,308  $ 154,436  $ 534,636 
 Segment depreciation and amortization (000) $ 6,576  $ 6,728  $ 6,760  $ 20,064 
 Segment EBITDA (000)2
$ 232,468  $ 161,036  $ 161,196  $ 554,700 
 EBITDA as a percentage of sales 11.0  % 7.6  % 8.2  % 8.9  %
 Capital spending (000) $ 7,892  $ 10,009  $ 7,938  $ 25,839 
 Receivables (000) $ 616,040  $ 540,167  $ 479,876 
 Inventories (000) $ 622,858  $ 612,196  $ 552,610 
 Accounts payable (000) $ 479,584  $ 413,235  $ 355,170 
2021
Q1 Q2 Q3 Q4 YTD
 Commodity sales 55.4  % 60.2  % 44.8  % 43.7  % 51.6  %
 General line sales 28.9  % 26.1  % 33.7  % 33.1  % 30.2  %
 EWP sales 15.7  % 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
15.1  % 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 7.7  % 9.8  % 1.3  % 8.8  % 7.0  %
 Capital spending (000)3
$ 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 

3


Boise Cascade Company
Quarterly Statistical Information (continued)
Building Materials Distribution Segment (continued)
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 
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 2021, capital spending in fourth quarter includes approximately $15 million to purchase a BMD property in Walton, Kentucky to expand our service capabilities in the Cincinnati and surrounding markets.


4


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:
2022
Q1 Q2 Q3 Q4 YTD
Net income $ 302,600  $ 218,111  $ 219,587  $ 740,298 
Interest expense 6,254  6,317  6,398  18,969 
Interest income (65) (1,385) (3,238) (4,688)
Income tax provision 98,866  73,886  76,042  248,794 
Depreciation and amortization 20,543  20,694  28,374  69,611 
EBITDA 428,198  317,623  327,163  1,072,984 
Change in fair value of interest rate swaps (2,066) (394) (1,134) (3,594)
Adjusted EBITDA $ 426,132  $ 317,229  $ 326,029  $ 1,069,390 
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 
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 

For additional information regarding the non-GAAP measures presented in this document, please refer to our press release announcing our third quarter 2022 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 October 31, 2022.

5