Business Wire | May 6, 2021 04:10PM EDT

Boise Cascade Company Reports First Quarter 2021 Results

May 06, 2021

BOISE, Idaho--(BUSINESS WIRE)--May 06, 2021--Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $149.2 million, or $3.76 per share, on sales of $1.8 billion for the first quarter ended March 31, 2021, compared with net income of $12.2 million, or $0.31 per share, on sales of $1.2 billion for the first quarter ended March 31, 2020. First quarter 2020 results included $15.0 million and $1.7 million, respectively, of pre-tax accelerated depreciation and other curtailment related costs, or $0.32 per share after-tax, due to the permanent curtailment of I-joist production at our Roxboro, North Carolina, facility.

"I am very proud of our associates across the Company and am inspired by their tireless efforts to work safely and support the needs of our customer and supplier partners during these extraordinary market conditions. Their dedication and execution were key to delivering tremendous financial results in the first quarter," commented Nate Jorgensen, CEO. "Our proven Values have served us incredibly well as we have navigated through the pandemic and will continue to be our foundation moving forward. We also effectively deployed our succession planning process as we start 2021, and I am confident that Jeff and Kelly, supported by their strong teams, are ready to lead in their new roles. The demand outlook for new residential construction remains strong. We are looking forward to the future and the continued execution of our strategy."

First Quarter 2021 Highlights

1Q 2021 1Q 2020 % change

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

Consolidated Results

Sales $ 1,821,316 $ 1,170,534 56 %

Net income 149,156 12,200 1,123 %

Net income per common share - diluted 3.76 0.31 1,113 %

Adjusted EBITDA ^1 224,935 59,619 277 %

Segment Results

Wood Products sales $ 432,335 $ 320,061 35 %

Wood Products income 97,052 3,763 2,479 %

Wood Products EBITDA ^1 110,398 33,366 231 %

Building Materials Distribution sales 1,634,777 1,049,997 56 %

Building Materials Distribution income 120,219 29,302 310 %

Building Materials Distribution EBITDA 126,038 34,646 264 %^1

1

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

As both a manufacturer and a distributor, our first quarter 2021 financial results were favorably impacted by higher commodity wood products pricing compared to pricing in the same period last year. The momentum of robust construction activity experienced in the latter half of 2020 continued throughout first quarter 2021, with stronger than typical demand during the winter months. Across commodity product lines, product demand in the first quarter exceeded supply, and certain producers also struggled with production due to raw material constraints or winter storms, causing significant increases in commodity products prices. While not subject to the significant price fluctuations of commodity products, demand also exceeded supply for many of the general line products and engineered wood products (EWP) distributed by Building Materials Distribution (BMD). Our BMD warehouse sales were strong throughout the first quarter as our retail lumberyard customers relied on our broad base of inventory and high service levels to minimize their working capital investment given historically high commodity product prices. In addition, we have had strong demand from our home center customers in response to elevated repair and remodel and "do-it-yourself" activity as people are spending more time at home during the pandemic.

In the first quarter 2021, total U.S. housing starts increased 10% compared to the same period in 2020. Single-family housing starts, the primary driver of our sales volumes, also increased 20%.

Wood Products

Wood Products' sales, including sales to BMD, increased $112.3 million, or 35%, to $432.3 million for the three months ended March 31, 2021, from $320.1 million for the three months ended March 31, 2020. The increase in sales was driven primarily by higher plywood and lumber prices, as well as higher sales volumes for I-joists. Net sales prices for I-joists and LVL (collectively referred to as EWP) also increased compared to the prior period. These increases were offset partially by lower sales volumes for LVL and plywood. The lower volume for plywood sales reflects our continued work to optimize veneer into EWP production, as well as rolling curtailments at our Elgin plywood facility as we manage environmental permits and log supply availability, periodic short-term disruptions related to COVID-19, and a significant winter storm in Louisiana during February 2021. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

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

As both a manufacturer and a distributor, our first quarter 2021 financial results were favorably impacted by higher commodity wood products pricing compared to pricing in the same period last year. The momentum of robust construction activity experienced in the latter half of 2020 continued throughout first quarter 2021, with stronger than typical demand during the winter months. Across commodity product lines, product demand in the first quarter exceeded supply, and certain producers also struggled with production due to raw material constraints or winter storms, causing significant increases in commodity products prices. While not subject to the significant price fluctuations of commodity products, demand also exceeded supply for many of the general line products and engineered wood products (EWP) distributed by Building Materials Distribution (BMD). Our BMD warehouse sales were strong throughout the first quarter as our retail lumberyard customers relied on our broad base of inventory and high service levels to minimize their working capital investment given historically high commodity product prices. In addition, we have had strong demand from our home center customers in response to elevated repair and remodel and "do-it-yourself" activity as people are spending more time at home during the pandemic.

In the first quarter 2021, total U.S. housing starts increased 10% compared to the same period in 2020. Single-family housing starts, the primary driver of our sales volumes, also increased 20%.

Wood Products

Wood Products' sales, including sales to BMD, increased $112.3 million, or 35%, to $432.3 million for the three months ended March 31, 2021, from $320.1 million for the three months ended March 31, 2020. The increase in sales was driven primarily by higher plywood and lumber prices, as well as higher sales volumes for I-joists. Net sales prices for I-joists and LVL (collectively referred to as EWP) also increased compared to the prior period. These increases were offset partially by lower sales volumes for LVL and plywood. The lower volume for plywood sales reflects our continued work to optimize veneer into EWP production, as well as rolling curtailments at our Elgin plywood facility as we manage environmental permits and log supply availability, periodic short-term disruptions related to COVID-19, and a significant winter storm in Louisiana during February 2021. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

1Q 2021 vs. 1Q 2020 1Q 2021 vs. 4Q 2020



Average Net Selling Prices

LVL 3% 5%

I-joists 3% 9%

Plywood 108% 37%

Sales Volumes

LVL (7)% 2%

I-joists 20% 4%

Plywood (5)% (1)%

Wood Products' segment income increased $93.3 million to $97.1 million for the three months ended March 31, 2021, from $3.8 million for the three months ended March 31, 2020. The increase in segment income was due primarily to higher plywood, lumber and EWP sales prices, as well as higher I-joists sales volumes. In addition, first quarter 2020 results included accelerated depreciation and amortization expense and loss on curtailment of facility of $15.0 million and $1.7 million, respectively, related to the permanent curtailment of I-joist production at our Roxboro, North Carolina facility. These improvements were offset partially by higher wood fiber and other manufacturing costs.

Building Materials Distribution

BMD's sales increased $584.8 million, or 56%, to $1,634.8 million for the three months ended March 31, 2021, from $1,050.0 million for the three months ended March 31, 2020. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales volume and sales price increases of 34% and 22%, respectively. By product line, commodity sales increased 106%, general line product sales increased 19%, and sales of EWP (substantially all of which is sourced through our Wood Products segment) increased 21%.

BMD segment income increased $90.9 million to $120.2 million for the three months ended March 31, 2021, from $29.3 million in the comparative prior year quarter. The improvement in segment income was driven by a gross margin increase of $115.3 million, resulting primarily from improved sales volumes and gross margins on substantially all product lines, particularly commodity products, compared with first quarter 2020. The margin improvement was offset partially by increased selling and distribution expenses and general and administrative expenses of $20.5 million and $3.4 million, respectively.

Unallocated Corporate Costs

Unallocated corporate expenses increased $4.5 million to $12.0 million for the three months ended March 31, 2021, from $7.5 million for the same period in the prior year. The increase was due primarily to higher employee-related expenses, most of which relates to incentive compensation.

Balance Sheet and Liquidity

Boise Cascade ended first quarter 2021 with $457.0 million of cash and cash equivalents and $345.3 million of undrawn committed bank line availability, for total available liquidity of $802.3 million. The Company had $444.0 million of outstanding debt at March 31, 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. This level 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 May 6, 2021, our board of directors declared a quarterly dividend of $0.10 per share on our common stock, payable on June 15, 2021, to stockholders of record on June 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

Wood Products continues to experience periodic short-term disruptions at many locations due to COVID-19 as we continue efforts to increase production rates in response to strong end-product demand, particularly for our EWP. In addition, we have experienced COVID-19 related short-term disruptions at our BMD locations, and our activity levels across our distribution network continue to vary widely as COVID-19 or weather impacts geographies across the U.S. to differing degrees. Furthermore, supply side constraints across product lines and lean inventories throughout the supply chain have limited the industry's ability to meet underlying demand. We continue to conduct business with 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 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.

While there continues to be a heightened level of economic uncertainty due to the pandemic, 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. Furthermore, with homeowners spending more time at home, repair and remodel spending may remain elevated as homeowners invest in existing homes. As of April 2021, the Blue Chip Economic Indicators consensus forecast for 2021 and 2022 single- and multi-family housing starts in the U.S. were 1.55 million and 1.54 million units, respectively, compared with actual housing starts of 1.38 million in 2020, as reported by the U.S. Census Bureau. Although we believe that current U.S. demographics support the higher level of forecasted housing starts, and many national home builders are reporting strong near-term backlogs, supply induced constraints on residential construction and repair-and-remodeling activity may continue to extend build times and limit activity.

Strong demand when coupled with capacity constraints in first quarter 2021 created supply/demand imbalances in the marketplace and historically high pricing levels for commodity lumber and panel products. Future commodity product pricing will be dependent on the impact of COVID-19 on residential construction, capacity restoration and industry operating rates, net import and export activity, transportation constraints or disruptions, inventory levels in various distribution channels, and seasonal demand patterns. As a wholesale distributor of a broad mix of commodity products and a manufacturer of certain commodity products, our sales and profitability are influenced by changes in commodity product prices.

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 first quarter earnings on Friday, May 7, 2021, at 11 a.m. Eastern.

To participate in the conference call, dial 844-795-4410 and use participant passcode 5849652 (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 Friday, May 7, 2021, at 2 p.m. Eastern through Friday, May 14, 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 5849652. 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. 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, 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 CompanyConsolidated Statements of Operations(in thousands, except per-share data) (unaudited)

Three Months Ended

March 31 December 31, 2020 2021 2020



Sales $ 1,821,316 $ 1,170,534 $ 1,472,231



Costs and expenses

Materials, labor, and otheroperating expenses 1,450,434 992,270 1,233,182 (excluding depreciation)

Depreciation and 19,539 35,332 19,909 amortization

Selling and distribution 120,917 99,463 102,366 expenses

General and administrative 25,262 16,084 17,737 expenses

Loss on curtailment of - 1,669 - facility

Other (income) expense, net (97 ) 169 (103 )

1,616,055 1,144,987 1,373,091



Income from operations 205,261 25,547 99,140



Foreign currency exchange 154 (873 ) 556 gain (loss)

Pension expense (excluding (19 ) (387 ) (6,466 ) service costs)

Interest expense (5,875 ) (6,421 ) (6,167 )

Interest income 59 655 41

Change in fair value of 1,024 (2,314 ) 255 interest rate swaps

(4,657 ) (9,340 ) (11,781 )



Income before income taxes 200,604 16,207 87,359

Income tax provision (51,448 ) (4,007 ) (61,358 )

Net income $ 149,156 $ 12,200 $ 26,001



Weighted average common shares outstanding:

Basic 39,355 39,163 39,317

Diluted 39,630 39,405 39,587



Net income per common share:

Basic $ 3.79 $ 0.31 $ 0.66

Diluted $ 3.76 $ 0.31 $ 0.66



Dividends declared per $ 0.10 $ 0.10 $ 0.10 common share

Wood Products Segment Statements of Operations(in thousands, except percentages) (unaudited)

Three Months Ended

March 31

December 31, 2020

2021

2020

Segment sales

$

432,335

$

320,061

$

358,661

Costs and expenses

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

308,608

274,034

292,425

Depreciation and amortization

13,346

29,603

13,669

Selling and distribution expenses

8,999

7,984

8,147

General and administrative expenses

4,319

3,012

3,508

Loss on curtailment of facility

-

1,669

-

Other (income) expense, net

11

(4

)

64

335,283

316,298

317,813

Segment income

$

97,052

$

3,763

$

40,848

(percentage of sales)

Segment sales

100.0

%

100.0

%

100.0

%

Costs and expenses

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

71.4

%

85.6

%

81.5

%

Depreciation and amortization

3.1

%

9.2

%

3.8

%

Selling and distribution expenses

2.1

%

2.5

%

2.3

%

General and administrative expenses

1.0

%

0.9

%

1.0

%

Loss on curtailment of facility

-

%

0.5

%

-

%

Other (income) expense, net

-

%

-

%

-

%

77.6

%

98.8

%

88.6

%

Segment income

22.4

%

1.2

%

11.4

%

Wood Products SegmentStatements of Operations(in thousands, except percentages) (unaudited)

Three Months Ended

March 31 December 31, 2021 2020 2020



Segment sales $ 432,335 $ 320,061 $ 358,661



Costs and expenses

Materials, labor, and other operating 308,608 274,034 292,425 expenses (excluding depreciation)

Depreciation and amortization 13,346 29,603 13,669

Selling and distribution expenses 8,999 7,984 8,147

General and administrative expenses 4,319 3,012 3,508

Loss on curtailment of facility - 1,669 -

Other (income) expense, net 11 (4 ) 64

335,283 316,298 317,813



Segment income $ 97,052 $ 3,763 $ 40,848



(percentage of sales)



Segment sales 100.0 % 100.0 % 100.0 %



Costs and expenses

Materials, labor, and other operating 71.4 % 85.6 % 81.5 %expenses (excluding depreciation)

Depreciation and amortization 3.1 % 9.2 % 3.8 %

Selling and distribution expenses 2.1 % 2.5 % 2.3 %

General and administrative expenses 1.0 % 0.9 % 1.0 %

Loss on curtailment of facility - % 0.5 % - %

Other (income) expense, net - % - % - %

77.6 % 98.8 % 88.6 %



Segment income 22.4 % 1.2 % 11.4 %

Building Materials Distribution Segment Statements of Operations(in thousands, except percentages) (unaudited)

Three Months Ended

March 31

December 31, 2020

2021

2020

Segment sales

$

1,634,777

$

1,049,997

$

1,330,078

Costs and expenses

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

1,387,351

917,841

1,156,836

Depreciation and amortization

5,819

5,344

5,846

Selling and distribution expenses

111,920

91,423

94,162

General and administrative expenses

9,581

6,135

6,322

Other (income) expense, net

(113

)

(48

)

(169

)

1,514,558

1,020,695

1,262,997

Segment income

$

120,219

$

29,302

$

67,081

(percentage of sales)

Segment sales

100.0

%

100.0

%

100.0

%

Costs and expenses

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

84.9

%

87.4

%

87.0

%

Depreciation and amortization

0.4

%

0.5

%

0.4

%

Selling and distribution expenses

6.8

%

8.7

%

7.1

%

General and administrative expenses

0.6

%

0.6

%

0.5

%

Other (income) expense, net

-

%

-

%

-

%

92.6

%

97.2

%

95.0

%

Segment income

7.4

%

2.8

%

5.0

%

Building Materials Distribution SegmentStatements of Operations(in thousands, except percentages) (unaudited)

Three Months Ended

March 31 December 31, 2020 2021 2020



Segment sales $ 1,634,777 $ 1,049,997 $ 1,330,078



Costs and expenses

Materials, labor, and otheroperating expenses 1,387,351 917,841 1,156,836 (excluding depreciation)

Depreciation and 5,819 5,344 5,846 amortization

Selling and distribution 111,920 91,423 94,162 expenses

General and administrative 9,581 6,135 6,322 expenses

Other (income) expense, net (113 ) (48 ) (169 )

1,514,558 1,020,695 1,262,997



Segment income $ 120,219 $ 29,302 $ 67,081



(percentage of sales)



Segment sales 100.0 % 100.0 % 100.0 %



Costs and expenses

Materials, labor, and otheroperating expenses 84.9 % 87.4 % 87.0 %(excluding depreciation)

Depreciation and 0.4 % 0.5 % 0.4 %amortization

Selling and distribution 6.8 % 8.7 % 7.1 %expenses

General and administrative 0.6 % 0.6 % 0.5 %expenses

Other (income) expense, net - % - % - %

92.6 % 97.2 % 95.0 %



Segment income 7.4 % 2.8 % 5.0 %

Segment Information(in thousands) (unaudited)

Three Months Ended

March 31

December 31, 2020

2021

2020

Segment sales

Wood Products

$

432,335

$

320,061

$

358,661

Building Materials Distribution

1,634,777

1,049,997

1,330,078

Intersegment eliminations

(245,796

)

(199,524

)

(216,508

)

Total net sales

$

1,821,316

$

1,170,534

$

1,472,231

Segment income

Wood Products

$

97,052

$

3,763

$

40,848

Building Materials Distribution

120,219

29,302

67,081

Total segment income

217,271

33,065

107,929

Unallocated corporate costs

(12,010

)

(7,518

)

(8,789

)

Income from operations

$

205,261

$

25,547

$

99,140

Segment EBITDA (a)

Wood Products

$

110,398

$

33,366

$

54,517

Building Materials Distribution

126,038

34,646

72,927

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

Segment Information(in thousands) (unaudited)

Three Months Ended

March 31 December 31, 2020 2021 2020

Segment sales

Wood Products $ 432,335 $ 320,061 $ 358,661

Building Materials 1,634,777 1,049,997 1,330,078 Distribution

Intersegment eliminations (245,796 ) (199,524 ) (216,508 )

Total net sales $ 1,821,316 $ 1,170,534 $ 1,472,231



Segment income

Wood Products $ 97,052 $ 3,763 $ 40,848

Building Materials 120,219 29,302 67,081 Distribution

Total segment income 217,271 33,065 107,929

Unallocated corporate costs (12,010 ) (7,518 ) (8,789 )

Income from operations $ 205,261 $ 25,547 $ 99,140



Segment EBITDA (a)

Wood Products $ 110,398 $ 33,366 $ 54,517

Building Materials 126,038 34,646 72,927 Distribution

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

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

March 31, 2021 December 31, 2020



ASSETS



Current

Cash and cash equivalents $ 456,982 $ 405,382

Receivables

Trade, less allowances of $1,840 and $1,111 540,197 375,865

Related parties 416 201

Other 12,261 15,067

Inventories 611,700 503,480

Prepaid expenses and other 11,304 8,860

Total current assets 1,632,860 1,308,855



Property and equipment, net 456,067 461,456

Operating lease right-of-use assets 60,065 62,447

Finance lease right-of-use assets 28,744 29,523

Timber deposits 10,025 11,761

Goodwill 60,382 60,382

Intangible assets, net 16,268 16,574

Deferred income taxes 7,329 7,460

Other assets 6,997 7,260

Total assets $ 2,278,737 $ 1,965,718

Boise Cascade Company Consolidated Balance Sheets (continued)(in thousands, except per-share data) (unaudited)

March 31, 2021

December 31, 2020

LIABILITIES AND STOCKHOLDERS' EQUITY

Current

Accounts payable

Trade

$

457,132

$

307,653

Related parties

1,026

1,199

Accrued liabilities

Compensation and benefits

87,907

118,400

Income taxes payable

60,677

8,101

Interest payable

5,011

8,477

Other

84,761

80,172

Total current liabilities

696,514

524,002

Debt

Long-term debt

444,001

443,792

Other

Compensation and benefits

27,176

25,951

Operating lease liabilities, net of current portion

53,437

56,001

Finance lease liabilities, net of current portion

31,059

31,607

Deferred income taxes

15,783

18,263

Other long-term liabilities

15,506

15,303

142,961

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

537,431

538,006

Accumulated other comprehensive loss

(1,082

)

(1,078

)

Retained earnings

597,374

452,334

Total stockholders' equity

995,261

850,799

Total liabilities and stockholders' equity

$

2,278,737

$

1,965,718

Boise Cascade CompanyConsolidated Balance Sheets (continued)(in thousands, except per-share data) (unaudited)

March 31, 2021 December 31, 2020



LIABILITIES AND STOCKHOLDERS' EQUITY



Current

Accounts payable

Trade $ 457,132 $ 307,653

Related parties 1,026 1,199

Accrued liabilities

Compensation and benefits 87,907 118,400

Income taxes payable 60,677 8,101

Interest payable 5,011 8,477

Other 84,761 80,172

Total current liabilities 696,514 524,002



Debt

Long-term debt 444,001 443,792



Other

Compensation and benefits 27,176 25,951

Operating lease liabilities, net of current 53,437 56,001 portion

Finance lease liabilities, net of current 31,059 31,607 portion

Deferred income taxes 15,783 18,263

Other long-term liabilities 15,506 15,303

142,961 147,125



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 44,568 447 446 shares issued, respectively

Treasury stock, 5,367 shares at cost (138,909 ) (138,909 )

Additional paid-in capital 537,431 538,006

Accumulated other comprehensive loss (1,082 ) (1,078 )

Retained earnings 597,374 452,334

Total stockholders' equity 995,261 850,799

Total liabilities and stockholders' equity $ 2,278,737 $ 1,965,718

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Three Months Ended March 31

2021

2020

Cash provided by (used for) operations

Net income

$

149,156

$

12,200

Items in net income not using (providing) cash

Depreciation and amortization, including deferred financing costs and other

19,950

35,859

Stock-based compensation

2,092

1,674

Pension expense

19

555

Deferred income taxes

(2,244

)

1,197

Change in fair value of interest rate swaps

(1,024

)

2,314

Loss on curtailment of facility (excluding severance)

-

1,438

Other

4

155

Decrease (increase) in working capital

Receivables

(161,833

)

(108,229

)

Inventories

(108,220

)

(39,045

)

Prepaid expenses and other

(2,444

)

(3,205

)

Accounts payable and accrued liabilities

125,064

55,629

Pension contributions

(78

)

(726

)

Income taxes payable

52,565

(2,111

)

Other

(756

)

(172

)

Net cash provided by (used for) operations

72,251

(42,467

)

Cash provided by (used for) investment

Expenditures for property and equipment

(13,301

)

(18,563

)

Proceeds from sales of assets and other

136

103

Net cash used for investment

(13,165

)

(18,460

)

Cash provided by (used for) financing

Dividends paid on common stock

(4,440

)

(4,645

)

Tax withholding payments on stock-based awards

(2,729

)

(3,309

)

Other

(317

)

(1,364

)

Net cash used for financing

(7,486

)

(9,318

)

Net increase (decrease) in cash and cash equivalents

51,600

(70,245

)

Balance at beginning of the period

405,382

285,237

Balance at end of the period

$

456,982

$

214,992

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.

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Three Months Ended March 31

2021 2020

Cash provided by (used for) operations

Net income $ 149,156 $ 12,200

Items in net income not using (providing) cash

Depreciation and amortization, including deferred 19,950 35,859 financing costs and other

Stock-based compensation 2,092 1,674

Pension expense 19 555

Deferred income taxes (2,244 ) 1,197

Change in fair value of interest rate swaps (1,024 ) 2,314

Loss on curtailment of facility (excluding - 1,438 severance)

Other 4 155

Decrease (increase) in working capital

Receivables (161,833 ) (108,229 )

Inventories (108,220 ) (39,045 )

Prepaid expenses and other (2,444 ) (3,205 )

Accounts payable and accrued liabilities 125,064 55,629

Pension contributions (78 ) (726 )

Income taxes payable 52,565 (2,111 )

Other (756 ) (172 )

Net cash provided by (used for) operations 72,251 (42,467 )



Cash provided by (used for) investment

Expenditures for property and equipment (13,301 ) (18,563 )

Proceeds from sales of assets and other 136 103

Net cash used for investment (13,165 ) (18,460 )



Cash provided by (used for) financing

Dividends paid on common stock (4,440 ) (4,645 )

Tax withholding payments on stock-based awards (2,729 ) (3,309 )

Other (317 ) (1,364 )

Net cash used for financing (7,486 ) (9,318 )



Net increase (decrease) in cash and cash equivalents 51,600 (70,245 )



Balance at beginning of the period 405,382 285,237



Balance at end of the period $ 456,982 $ 214,992

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.

EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we(a) 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 the three months ended March 31, 2021 and 2020, and December 31, 2020:

Three Months Ended

March 31

December 31, 2020

2021

2020

(in thousands)

Net income

$

149,156

$

12,200

$

26,001

Interest expense

5,875

6,421

6,167

Interest income

(59

)

(655

)

(41

)

Income tax provision

51,448

4,007

61,358

Depreciation and amortization

19,539

35,332

19,909

EBITDA

225,959

57,305

113,394

Change in fair value of interest rate swaps

(1,024

)

2,314

(255

)

Adjusted EBITDA

$

224,935

$

59,619

$

113,139

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended March 31, 2021 and 2020, and December 31, 2020:

Three Months Ended

March 31 December 31, 2020 2021 2020

(in thousands)

Net income $ 149,156 $ 12,200 $ 26,001

Interest expense 5,875 6,421 6,167

Interest income (59 ) (655 ) (41 )

Income tax provision 51,448 4,007 61,358

Depreciation and amortization 19,539 35,332 19,909

EBITDA 225,959 57,305 113,394

Change in fair value of interest rate (1,024 ) 2,314 (255 ) swaps

Adjusted EBITDA $ 224,935 $ 59,619 $ 113,139

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended March 31, 2021 and 2020, and December 31, 2020:

Three Months Ended

March 31 December 31, 2020 2021 2020

(in thousands)

Wood Products

Segment income $ 97,052 $ 3,763 $ 40,848

Depreciation and amortization 13,346 29,603 13,669

EBITDA $ 110,398 $ 33,366 $ 54,517



Building Materials Distribution

Segment income $ 120,219 $ 29,302 $ 67,081

Depreciation and amortization 5,819 5,344 5,846

EBITDA $ 126,038 $ 34,646 $ 72,927



Corporate

Unallocated corporate costs $ (12,010 ) $ (7,518 ) $ (8,789 )

Foreign currency exchange gain (loss) 154 (873 ) 556

Pension expense (excluding service (19 ) (387 ) (6,466 ) costs)

Change in fair value of interest rate 1,024 (2,314 ) 255 swaps

Depreciation and amortization 374 385 394

EBITDA (10,477 ) (10,707 ) (14,050 )

Change in fair value of interest rate (1,024 ) 2,314 (255 ) swaps

Corporate adjusted EBITDA $ (11,501 ) $ (8,393 ) $ (14,305 )



Total Company adjusted EBITDA $ 224,935 $ 59,619 $ 113,139

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CONTACT: Media Lisa Tschampl 208 384 6552