Financial News

Boise Cascade Company Reports Fourth Quarter and Full Year 2022 Results

Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported fourth quarter net income of $117.4 million, or $2.95 per share, on sales of $1.6 billion. For the full year 2022, Boise Cascade reported net income of $857.7 million, or $21.56 per share, on sales of $8.4 billion. For 2021 comparative results, see the table below.

"As we close out 2022, I first want to recognize our associates for their tireless work, as they made our outstanding results possible. In addition to our financial results, we had strong performance in safety during a challenging period. I am also very pleased that we were able to take meaningful steps via acquisition and organic initiatives that will allow us to expand our EWP capacity and further grow our distribution capabilities," stated Nate Jorgensen, CEO. "Our balance sheet remains well positioned for us to execute the growth initiatives started during 2022. In addition, we have the flexibility to further demonstrate our balanced approach to capital allocation, including the ability to pursue additional growth initiatives that align with our strategy. We recognize the industry will face challenges during 2023 given current economic uncertainties and weaker near-term demand for new residential construction; however, we remain committed to providing high service levels to our vendor and customer partners through industry cycles."

Fourth Quarter and Year End 2022 Highlights

 

 

4Q 2022

 

4Q 2021

 

% change

 

2022

 

2021

 

% change

 

 

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

Consolidated Results

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

1,628,306

 

$

1,782,183

 

(9)%

 

$

8,387,307

 

$

7,926,111

 

6 %

Net income

 

 

117,360

 

 

169,075

 

(31)%

 

 

857,658

 

 

712,486

 

20 %

Net income per common share - diluted

 

 

2.95

 

 

4.26

 

(31)%

 

 

21.56

 

 

17.97

 

20 %

Adjusted EBITDA 1

 

 

188,174

 

 

247,899

 

(24)%

 

 

1,257,564

 

 

1,052,470

 

19 %

Segment Results

 

 

 

 

 

 

 

 

 

 

 

 

Wood Products sales

 

$

425,602

 

$

446,584

 

(5)%

 

$

2,115,896

 

$

1,970,804

 

7 %

Wood Products income

 

 

74,978

 

 

98,366

 

(24)%

 

 

575,167

 

 

531,235

 

8 %

Wood Products EBITDA 1

 

 

99,708

 

 

112,227

 

(11)%

 

 

648,475

 

 

586,484

 

11 %

Building Materials Distribution sales

 

 

1,443,780

 

 

1,645,513

 

(12)%

 

 

7,643,615

 

 

7,174,278

 

7 %

Building Materials Distribution income

 

 

92,455

 

 

137,963

 

(33)%

 

 

627,091

 

 

481,085

 

30 %

Building Materials Distribution EBITDA 1

 

 

99,396

 

 

144,221

 

(31)%

 

 

654,096

 

 

505,092

 

30 %

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

In fourth quarter 2022, total U.S. housing starts decreased 15%, driven by a decrease in single-family housing starts of 27% compared to the same period in 2021. For the full year 2022, total and single-family housing starts decreased 3% and 11%, respectively, compared to 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), decreased $21.0 million, or 5%, to $425.6 million for the three months ended December 31, 2022, from $446.6 million for the three months ended December 31, 2021. The decrease in sales was driven primarily by lower sales volumes for I-joists and LVL (collectively referred to as EWP). EWP volumes decreased due to a decline in housing starts and significant inventory destocking through the customer channel. These decreases were offset partially by higher EWP sales prices and higher plywood sales volumes. The increase in plywood sales volumes was due to our acquisition of Coastal Plywood and its plywood manufacturing operations on July 25, 2022 (the Acquisition). Wood Products' segment income decreased $23.4 million to $75.0 million for the three months ended December 31, 2022, from $98.4 million for the three months ended December 31, 2021. The decrease in segment income was due primarily to lower EWP sales volumes and higher wood fiber costs and other manufacturing costs. In addition, the Acquisition was the primary driver of the increase in depreciation and amortization expense. These decreases in segment income were offset partially by higher EWP sales prices.

For the year ended December 31, 2022, sales, including sales to BMD, increased $145.1 million, or 7%, to $2,115.9 million from $1,970.8 million in 2021. The increase in sales was driven by higher EWP sales prices and higher plywood sales volumes. Plywood sales volumes increased due to the Acquisition. These increases were offset partially by lower plywood sales prices and EWP sales volumes. EWP volumes decreased due to a decline in housing starts and significant inventory destocking through the customer channel. Wood Products' segment income increased $44.0 million to $575.2 million for the year ended December 31, 2022, from $531.2 million for the year ended December 31, 2021. The increase in segment income was due primarily to higher EWP sales prices. This increase in segment income was offset partially by lower plywood sales prices, lower EWP sales volumes, and higher wood fiber costs and other manufacturing costs. In addition, the Acquisition was the primary driver of the increase in depreciation and amortization and general and administrative expenses during 2022.

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

 

 

4Q 2022 vs. 4Q 2021

 

2022 vs. 2021

 

 

 

 

 

Average Net Selling Prices

 

 

 

 

LVL

 

32%

 

41%

I-joists

 

40%

 

44%

Plywood

 

(1)%

 

(14)%

Sales Volumes

 

 

 

 

LVL

 

(30)%

 

(3)%

I-joists

 

(55)%

 

(21)%

Plywood

 

29%

 

5%

Building Materials Distribution

BMD's sales decreased $201.7 million, or 12%, to $1,443.8 million for the three months ended December 31, 2022, from $1,645.5 million for the three months ended December 31, 2021. Compared with the same quarter in the prior year, the overall decrease in sales was driven by a sales volume decrease of 14%, offset partially by sales price increases of 2%. By product line, commodity sales decreased 17%, general line product sales decreased 2%, and sales of EWP (substantially all of which are sourced through our Wood Products segment) decreased 19%. BMD segment income decreased $45.5 million to $92.5 million for the three months ended December 31, 2022, from $138.0 million in the comparative prior year quarter. The decrease in segment income was driven primarily by a gross margin decrease of $39.7 million, resulting from decreased sales volumes and declining commodity prices during fourth quarter 2022. In addition, selling and distribution expenses increased $3.6 million.

For the year ended December 31, 2022, sales increased $469.3 million, or 7%, to $7,643.6 million from $7,174.3 million in 2021. The increase in sales was driven by sales price increases of 11%, offset partially by a sales volume decrease of 4%. By product line, commodity sales decreased 7%, general line product sales increased 17%, and sales of EWP increased 28%. BMD segment income increased $146.0 million to $627.1 million for the year ended December 31, 2022, from $481.1 million for the year ended December 31, 2021. The increase in segment income was driven by a gross margin increase of $215.5 million, primarily related to improved margins across our EWP and general line products. The improvement was offset partially by increased selling and distribution expenses and general and administrative expenses of $56.8 million and $7.8 million, respectively.

Unallocated Corporate Costs

Unallocated corporate expenses increased $3.9 million to $44.4 million for the year ended December 31, 2022, from $40.5 million for the year ended December 31, 2021. The increase was due primarily to higher employee-related expenses, offset partially by lower self-insurance losses during 2022.

Balance Sheet and Liquidity

Boise Cascade ended fourth quarter 2022 with $998.3 million of cash and cash equivalents and $396.2 million of undrawn committed bank line availability, for total available liquidity of $1,394.5 million. The Company had $444.4 million of outstanding debt at December 31, 2022.

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, which will allow us to better serve our customers in several high-growth markets, projects at our mills in the southeast to expand our EWP capacity, and the recently announced 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 February 7, 2023, our board of directors declared a quarterly dividend of $0.15 per share on our common stock, payable on March 15, 2023, to stockholders of record on February 22, 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. While mortgage rates have declined from peak levels in late 2022 and home price increases have moderated, home affordability remains a challenge for consumers. The Federal Reserve's upcoming actions in response to inflationary data and what impacts these actions have on mortgage rates and the broader economy will continue to influence the near-term demand environment. We expect a deceleration in housing starts, with various industry forecasts for 2023 single- and multi-family housing starts in the U.S generally ranging from 1.1 million to 1.3 million units, compared with actual housing starts of 1.55 million in 2022 and 1.60 million in 2021, as reported by the U.S. Census Bureau. As it relates to home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity provide a favorable backdrop for repair-and-remodel spending. 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 have experienced price erosion and reduced volumes on our EWP products due to slowing economic activity and decreased demand for new residential construction. As such, we have and will continue to manage our production levels to meet current and expected sales demand, which will result in operating some of our facilities below their capacity until demand improves.

About Boise Cascade

Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com.

Webcast and Conference Call

Boise Cascade will host a webcast and conference call to discuss fourth quarter and full year earnings on Wednesday, February 22, 2023, 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, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.

Boise Cascade Company

Consolidated Statements of Operations

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

 

 

Three Months Ended

 

Year Ended

 

 

December 31

 

September 30,

2022

 

December 31

 

 

2022

 

2021

 

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

1,628,306

 

 

$

1,782,183

 

 

$

2,154,647

 

 

$

8,387,307

 

 

$

7,926,111

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

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

 

 

1,288,717

 

 

 

1,390,714

 

 

 

1,655,979

 

 

 

6,472,540

 

 

 

6,300,076

 

Depreciation and amortization

 

 

31,982

 

 

 

20,495

 

 

 

28,374

 

 

 

101,593

 

 

 

80,753

 

Selling and distribution expenses

 

 

130,145

 

 

 

124,897

 

 

 

142,176

 

 

 

553,251

 

 

 

491,016

 

General and administrative expenses

 

 

22,375

 

 

 

18,976

 

 

 

27,622

 

 

 

103,750

 

 

 

83,228

 

Other (income) expense, net

 

 

(689

)

 

 

(280

)

 

 

1,126

 

 

 

(1,676

)

 

 

(765

)

 

 

 

1,472,530

 

 

 

1,554,802

 

 

 

1,855,277

 

 

 

7,229,458

 

 

 

6,954,308

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

155,776

 

 

 

227,381

 

 

 

299,370

 

 

 

1,157,849

 

 

 

971,803

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange gain (loss)

 

 

457

 

 

 

42

 

 

 

(1,674

)

 

 

(1,584

)

 

 

(10

)

Pension expense (excluding service costs)

 

 

(41

)

 

 

(19

)

 

 

(41

)

 

 

(294

)

 

 

(76

)

Interest expense

 

 

(6,443

)

 

 

(6,305

)

 

 

(6,398

)

 

 

(25,412

)

 

 

(24,806

)

Interest income

 

 

7,575

 

 

 

22

 

 

 

3,238

 

 

 

12,263

 

 

 

195

 

Change in fair value of interest rate swaps

 

 

(35

)

 

 

687

 

 

 

1,134

 

 

 

3,559

 

 

 

1,745

 

 

 

 

1,513

 

 

 

(5,573

)

 

 

(3,741

)

 

 

(11,468

)

 

 

(22,952

)

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

157,289

 

 

 

221,808

 

 

 

295,629

 

 

 

1,146,381

 

 

 

948,851

 

Income tax provision

 

 

(39,929

)

 

 

(52,733

)

 

 

(76,042

)

 

 

(288,723

)

 

 

(236,365

)

Net income

 

$

117,360

 

 

$

169,075

 

 

$

219,587

 

 

$

857,658

 

 

$

712,486

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

39,544

 

 

 

39,442

 

 

 

39,544

 

 

 

39,526

 

 

 

39,420

 

Diluted

 

 

39,830

 

 

 

39,735

 

 

 

39,776

 

 

 

39,772

 

 

 

39,646

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.97

 

 

$

4.29

 

 

$

5.55

 

 

$

21.70

 

 

$

18.07

 

Diluted

 

$

2.95

 

 

$

4.26

 

 

$

5.52

 

 

$

21.56

 

 

$

17.97

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

1.15

 

 

$

3.12

 

 

$

0.12

 

 

$

4.01

 

 

$

5.42

 

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

 

 

Three Months Ended

 

Year Ended

 

 

December 31

 

September 30,

2022

 

December 31

 

 

2022

 

2021

 

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

$

425,602

 

 

$

446,584

 

 

$

595,320

 

 

$

2,115,896

 

 

$

1,970,804

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

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

 

 

312,143

 

 

 

322,215

 

 

 

398,008

 

 

 

1,405,417

 

 

 

1,332,906

 

Depreciation and amortization

 

 

24,730

 

 

 

13,861

 

 

 

21,285

 

 

 

73,308

 

 

 

55,249

 

Selling and distribution expenses

 

 

10,397

 

 

 

8,783

 

 

 

11,164

 

 

 

41,140

 

 

 

35,741

 

General and administrative expenses

 

 

3,751

 

 

 

3,414

 

 

 

7,717

 

 

 

21,940

 

 

 

15,628

 

Other (income) expense, net

 

 

(397

)

 

 

(55

)

 

 

1,174

 

 

 

(1,076

)

 

 

45

 

 

 

 

350,624

 

 

 

348,218

 

 

 

439,348

 

 

 

1,540,729

 

 

 

1,439,569

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

74,978

 

 

$

98,366

 

 

$

155,972

 

 

$

575,167

 

 

$

531,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

73.3

%

 

 

72.2

%

 

 

66.9

%

 

 

66.4

%

 

 

67.6

%

Depreciation and amortization

 

 

5.8

%

 

 

3.1

%

 

 

3.6

%

 

 

3.5

%

 

 

2.8

%

Selling and distribution expenses

 

 

2.4

%

 

 

2.0

%

 

 

1.9

%

 

 

1.9

%

 

 

1.8

%

General and administrative expenses

 

 

0.9

%

 

 

0.8

%

 

 

1.3

%

 

 

1.0

%

 

 

0.8

%

Other (income) expense, net

 

 

(0.1

%)

 

 

%

 

 

0.2

%

 

 

(0.1

%)

 

 

%

 

 

 

82.4

%

 

 

78.0

%

 

 

73.8

%

 

 

72.8

%

 

 

73.0

%

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

17.6

%

 

 

22.0

%

 

 

26.2

%

 

 

27.2

%

 

 

27.0

%

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

 

 

Three Months Ended

 

Year Ended

 

 

December 31

 

September 30,

2022

 

December 31

 

 

2022

 

2021

 

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

Segment sales

 

$

1,443,780

 

 

$

1,645,513

 

 

$

1,956,802

 

 

$

7,643,615

 

 

$

7,174,278

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

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

 

 

1,216,198

 

 

 

1,378,206

 

 

 

1,655,257

 

 

 

6,438,103

 

 

 

6,184,290

 

Depreciation and amortization

 

 

6,941

 

 

 

6,258

 

 

 

6,760

 

 

 

27,005

 

 

 

24,007

 

Selling and distribution expenses

 

 

119,748

 

 

 

116,114

 

 

 

131,012

 

 

 

512,111

 

 

 

455,277

 

General and administrative expenses

 

 

8,387

 

 

 

7,230

 

 

 

9,480

 

 

 

39,651

 

 

 

31,857

 

Other (income) expense, net

 

 

51

 

 

 

(258

)

 

 

(143

)

 

 

(346

)

 

 

(2,238

)

 

 

 

1,351,325

 

 

 

1,507,550

 

 

 

1,802,366

 

 

 

7,016,524

 

 

 

6,693,193

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

92,455

 

 

$

137,963

 

 

$

154,436

 

 

$

627,091

 

 

$

481,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

84.2

%

 

 

83.8

%

 

 

84.6

%

 

 

84.2

%

 

 

86.2

%

Depreciation and amortization

 

 

0.5

%

 

 

0.4

%

 

 

0.3

%

 

 

0.4

%

 

 

0.3

%

Selling and distribution expenses

 

 

8.3

%

 

 

7.1

%

 

 

6.7

%

 

 

6.7

%

 

 

6.3

%

General and administrative expenses

 

 

0.6

%

 

 

0.4

%

 

 

0.5

%

 

 

0.5

%

 

 

0.4

%

Other (income) expense, net

 

 

%

 

 

%

 

 

%

 

 

%

 

 

%

 

 

 

93.6

%

 

 

91.6

%

 

 

92.1

%

 

 

91.8

%

 

 

93.3

%

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

6.4

%

 

 

8.4

%

 

 

7.9

%

 

 

8.2

%

 

 

6.7

%

Segment Information

(in thousands) (unaudited)

 

 

Three Months Ended

 

Year Ended

 

 

December 31

 

September 30,

2022

 

December 31

 

 

 

2022

 

 

 

2021

 

 

 

 

2022

 

 

 

2021

 

Segment sales

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

425,602

 

 

$

446,584

 

 

$

595,320

 

 

$

2,115,896

 

 

$

1,970,804

 

Building Materials Distribution

 

 

1,443,780

 

 

 

1,645,513

 

 

 

1,956,802

 

 

 

7,643,615

 

 

 

7,174,278

 

Intersegment eliminations

 

 

(241,076

)

 

 

(309,914

)

 

 

(397,475

)

 

 

(1,372,204

)

 

 

(1,218,971

)

Total net sales

 

$

1,628,306

 

 

$

1,782,183

 

 

$

2,154,647

 

 

$

8,387,307

 

 

$

7,926,111

 

 

 

 

 

 

 

 

 

 

 

 

Segment income

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

74,978

 

 

$

98,366

 

 

$

155,972

 

 

$

575,167

 

 

$

531,235

 

Building Materials Distribution

 

 

92,455

 

 

 

137,963

 

 

 

154,436

 

 

 

627,091

 

 

 

481,085

 

Total segment income

 

 

167,433

 

 

 

236,329

 

 

 

310,408

 

 

 

1,202,258

 

 

 

1,012,320

 

Unallocated corporate costs

 

 

(11,657

)

 

 

(8,948

)

 

 

(11,038

)

 

 

(44,409

)

 

 

(40,517

)

Income from operations

 

$

155,776

 

 

$

227,381

 

 

$

299,370

 

 

$

1,157,849

 

 

$

971,803

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

 

 

 

Wood Products

 

$

99,708

 

 

$

112,227

 

 

$

177,257

 

 

$

648,475

 

 

$

586,484

 

Building Materials Distribution

 

 

99,396

 

 

 

144,221

 

 

 

161,196

 

 

 

654,096

 

 

 

505,092

 

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

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

 

 

December 31, 2022

 

December 31, 2021

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

Cash and cash equivalents

 

$

998,344

 

$

748,907

Receivables

 

 

 

 

Trade, less allowances of $3,264 and $2,054

 

 

297,237

 

 

444,325

Related parties

 

 

19

 

 

211

Other

 

 

23,023

 

 

17,692

Inventories

 

 

697,551

 

 

660,671

Prepaid expenses and other

 

 

47,878

 

 

14,072

Total current assets

 

 

2,064,052

 

 

1,885,878

 

 

 

 

 

Property and equipment, net

 

 

770,023

 

 

495,240

Operating lease right-of-use assets

 

 

55,582

 

 

62,663

Finance lease right-of-use assets

 

 

26,501

 

 

29,057

Timber deposits

 

 

7,519

 

 

9,461

Goodwill

 

 

137,958

 

 

60,382

Intangible assets, net

 

 

161,433

 

 

15,351

Deferred income taxes

 

 

6,116

 

 

6,589

Other assets

 

 

11,330

 

 

8,019

Total assets

 

$

3,240,514

 

$

2,572,640

Boise Cascade Company

Consolidated Balance Sheets (continued)

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

 

 

December 31, 2022

 

December 31, 2021

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

Accounts payable

 

 

 

 

Trade

 

$

269,785

 

 

$

334,985

 

Related parties

 

 

1,019

 

 

 

1,498

 

Accrued liabilities

 

 

 

 

Compensation and benefits

 

 

142,463

 

 

 

128,518

 

Interest payable

 

 

9,955

 

 

 

9,886

 

Other

 

 

122,606

 

 

 

165,859

 

Total current liabilities

 

 

545,828

 

 

 

640,746

 

 

 

 

 

 

Debt

 

 

 

 

Long-term debt

 

 

444,392

 

 

 

444,628

 

 

 

 

 

 

Other

 

 

 

 

Compensation and benefits

 

 

33,226

 

 

 

28,365

 

Operating lease liabilities, net of current portion

 

 

48,668

 

 

 

55,263

 

Finance lease liabilities, net of current portion

 

 

30,022

 

 

 

31,898

 

Deferred income taxes

 

 

63,454

 

 

 

3,641

 

Other long-term liabilities

 

 

16,949

 

 

 

15,480

 

 

 

 

192,319

 

 

 

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, 44,827 and 44,698 shares issued, respectively

 

 

448

 

 

 

447

 

Treasury stock, 5,367 shares at cost

 

 

(138,909

)

 

 

(138,909

)

Additional paid-in capital

 

 

551,215

 

 

 

543,249

 

Accumulated other comprehensive loss

 

 

(520

)

 

 

(1,047

)

Retained earnings

 

 

1,645,741

 

 

 

948,879

 

Total stockholders' equity

 

 

2,057,975

 

 

 

1,352,619

 

Total liabilities and stockholders' equity

 

$

3,240,514

 

 

$

2,572,640

 

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

 

 

Year Ended December 31

 

 

2022

 

2021

Cash provided by (used for) operations

 

 

 

 

Net income

 

$

857,658

 

 

$

712,486

 

Items in net income not using (providing) cash

 

 

 

 

Depreciation and amortization, including deferred financing costs and other

 

 

103,879

 

 

 

82,489

 

Stock-based compensation

 

 

11,870

 

 

 

7,911

 

Pension expense

 

 

294

 

 

 

76

 

Deferred income taxes

 

 

59,666

 

 

 

(13,704

)

Change in fair value of interest rate swaps

 

 

(3,559

)

 

 

(1,745

)

Other

 

 

(1,043

)

 

 

712

 

Decrease (increase) in working capital, net of acquisitions

 

 

 

 

Receivables

 

 

158,073

 

 

 

(71,190

)

Inventories

 

 

(13,903

)

 

 

(158,472

)

Prepaid expenses and other

 

 

(2,834

)

 

 

(3,238

)

Accounts payable and accrued liabilities

 

 

(100,354

)

 

 

123,670

 

Pension contributions

 

 

(1,058

)

 

 

(470

)

Income taxes payable

 

 

(30,561

)

 

 

(10,057

)

Other

 

 

3,091

 

 

 

(1,484

)

Net cash provided by operations

 

 

1,041,219

 

 

 

666,984

 

 

 

 

 

 

Cash provided by (used for) investment

 

 

 

 

Expenditures for property and equipment

 

 

(114,117

)

 

 

(106,518

)

Acquisitions of businesses and facilities

 

 

(515,237

)

 

 

 

Proceeds from sales of assets and other

 

 

3,898

 

 

 

932

 

Net cash used for investment

 

 

(625,456

)

 

 

(105,586

)

 

 

 

 

 

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

 

 

(1,174

)

 

 

 

Dividends paid on common stock

 

 

(159,564

)

 

 

(213,681

)

Tax withholding payments on stock-based awards

 

 

(3,930

)

 

 

(2,729

)

Other

 

 

(1,658

)

 

 

(1,463

)

Net cash used for financing

 

 

(166,326

)

 

 

(217,873

)

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

249,437

 

 

 

343,525

 

 

 

 

 

 

Balance at beginning of the period

 

 

748,907

 

 

 

405,382

 

 

 

 

 

 

Balance at end of the period

 

$

998,344

 

 

$

748,907

 

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 December 31, 2022 and 2021, (ii) the three months ended September 30, 2022, and (iii) the year ended December 31, 2022 and 2021:

 

 

Three Months Ended

 

Year Ended

 

 

December 31

 

September 30,

2022

 

December 31

 

 

2022

 

2021

 

 

2022

 

2021

 

 

(in thousands)

Net income

 

$

117,360

 

 

$

169,075

 

 

$

219,587

 

 

$

857,658

 

 

$

712,486

 

Interest expense

 

 

6,443

 

 

 

6,305

 

 

 

6,398

 

 

 

25,412

 

 

 

24,806

 

Interest income

 

 

(7,575

)

 

 

(22

)

 

 

(3,238

)

 

 

(12,263

)

 

 

(195

)

Income tax provision

 

 

39,929

 

 

 

52,733

 

 

 

76,042

 

 

 

288,723

 

 

 

236,365

 

Depreciation and amortization

 

 

31,982

 

 

 

20,495

 

 

 

28,374

 

 

 

101,593

 

 

 

80,753

 

EBITDA

 

 

188,139

 

 

 

248,586

 

 

 

327,163

 

 

 

1,261,123

 

 

 

1,054,215

 

Change in fair value of interest rate swaps

 

 

35

 

 

 

(687

)

 

 

(1,134

)

 

 

(3,559

)

 

 

(1,745

)

Adjusted EBITDA

 

$

188,174

 

 

$

247,899

 

 

$

326,029

 

 

$

1,257,564

 

 

$

1,052,470

 

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended December 31, 2022 and 2021, (ii) three months ended September 30, 2022, and (iii) the year ended December 31, 2022 and 2021:

 

 

Three Months Ended

 

Year Ended

 

 

December 31

 

September 30,

2022

 

December 31

 

 

2022

 

2021

 

 

2022

 

2021

 

 

(in thousands)

Wood Products

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

74,978

 

 

$

98,366

 

 

$

155,972

 

 

$

575,167

 

 

$

531,235

 

Depreciation and amortization

 

 

24,730

 

 

 

13,861

 

 

 

21,285

 

 

 

73,308

 

 

 

55,249

 

EBITDA

 

$

99,708

 

 

$

112,227

 

 

$

177,257

 

 

$

648,475

 

 

$

586,484

 

 

 

 

 

 

 

 

 

 

 

 

Building Materials Distribution

 

 

 

 

 

 

 

 

 

 

Segment income

 

$

92,455

 

 

$

137,963

 

 

$

154,436

 

 

$

627,091

 

 

$

481,085

 

Depreciation and amortization

 

 

6,941

 

 

 

6,258

 

 

 

6,760

 

 

 

27,005

 

 

 

24,007

 

EBITDA

 

$

99,396

 

 

$

144,221

 

 

$

161,196

 

 

$

654,096

 

 

$

505,092

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

Unallocated corporate costs

 

$

(11,657

)

 

$

(8,948

)

 

$

(11,038

)

 

$

(44,409

)

 

$

(40,517

)

Foreign currency exchange gain (loss)

 

 

457

 

 

 

42

 

 

 

(1,674

)

 

 

(1,584

)

 

 

(10

)

Pension expense (excluding service costs)

 

 

(41

)

 

 

(19

)

 

 

(41

)

 

 

(294

)

 

 

(76

)

Change in fair value of interest rate swaps

 

 

(35

)

 

 

687

 

 

 

1,134

 

 

 

3,559

 

 

 

1,745

 

Depreciation and amortization

 

 

311

 

 

 

376

 

 

 

329

 

 

 

1,280

 

 

 

1,497

 

EBITDA

 

 

(10,965

)

 

 

(7,862

)

 

 

(11,290

)

 

 

(41,448

)

 

 

(37,361

)

Change in fair value of interest rate swaps

 

 

35

 

 

 

(687

)

 

 

(1,134

)

 

 

(3,559

)

 

 

(1,745

)

Corporate adjusted EBITDA

 

$

(10,930

)

 

$

(8,549

)

 

$

(12,424

)

 

$

(45,007

)

 

$

(39,106

)

 

 

 

 

 

 

 

 

 

 

 

Total Company adjusted EBITDA

 

$

188,174

 

 

$

247,899

 

 

$

326,029

 

 

$

1,257,564

 

 

$

1,052,470

 

 

Contacts

Investor Relations Contact - Kelly Hibbs

208 384 3638

Media Contact - Lisa Tschampl

208 384 6552

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