Business Wire | Nov 1, 2021 04:05PM EDT

Boise Cascade Company Reports Third Quarter 2021 Results

Nov. 01, 2021

BOISE, Idaho--(BUSINESS WIRE)--Nov. 01, 2021--Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $91.7 million, or $2.31 per share, on sales of $1.9 billion for the third quarter ended September 30, 2021, compared with net income of $103.2 million, or $2.61 per share, on sales of $1.6 billion for the third quarter ended September 30, 2020. Third quarter 2020 results include a $10.5 million after-tax loss on extinguishment of debt, or $0.27 per share, as the Company refinanced its senior notes.

"Strong sales of our engineered wood and general line products helped to mitigate the negative impact of historic declines in commodity products pricing during the quarter. Our associates' performance was outstanding in the face of a very challenging backdrop," stated Nate Jorgensen, CEO. "Looking forward, we are optimistic about the demand environment for new residential construction for the balance of this year and 2022. In addition, we recently announced additional dividends to our shareholders, and our balance sheet strength provides us the ability to remain focused on the execution of our strategies, including future organic and acquisition growth opportunities."

Third Quarter 2021 Highlights

3Q 2021 3Q 2020 % change

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

Consolidated Results

Sales $ 1,879,451 $ 1,589,313 18 %

Net income 91,699 103,192 (11 )%

Net income per common share - diluted 2.31 2.61 (11 )%

Adjusted EBITDA ^1 149,313 178,564 (16 )%

Segment Results

Wood Products sales $ 497,316 $ 363,674 37 %

Wood Products income 122,056 66,035 85 %

Wood Products EBITDA ^1 135,970 79,973 70 %

Building Materials Distribution sales 1,721,244 1,437,683 20 %

Building Materials Distribution 16,565 107,901 (85 )%income

Building Materials Distribution 22,578 113,587 (80 )%EBITDA ^1

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

In the third quarter 2021, total U.S. housing starts increased 8% compared to the same period in 2020. Single-family housing starts, the primary driver of our sales volumes, also increased 5%. On a year-to-date basis through September 2021, total and single-family housing starts both increased 20% compared with the same period in 2020.

Wood Products

Wood Products' sales, including sales to BMD, increased $133.6 million, or 37%, to $497.3 million for the three months ended September 30, 2021, from $363.7 million for the three months ended September 30, 2020. The increase in sales was driven primarily by higher plywood prices, as well as higher net sales prices and sales volumes for I-joists and LVL (collectively referred to as EWP). In addition, improved lumber sales prices contributed to the increase in sales. Plywood sales volumes were flat compared with the same period in the prior year. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

3Q 2021 vs. 3Q 2020 3Q 2021 vs. 2Q 2021



Average Net Selling Prices

LVL 23% 14%

I-joists 27% 16%

Plywood 31% (36)%

Sales Volumes

LVL 2% (1)%

I-joists 21% 1%

Plywood (1)% (7)%

Wood Products' segment income increased $56.0 million to $122.1 million for the three months ended September 30, 2021, from $66.0 million for the three months ended September 30, 2020. The increase in segment income was due primarily to higher EWP, plywood, and lumber sales prices, as well as higher EWP sales volumes. These improvements were offset partially by higher wood fiber costs and lower margins on inventory purchased for resale through certain customer programs.

Building Materials Distribution

BMD's sales increased $283.6 million, or 20%, to $1,721.2 million for the three months ended September 30, 2021, from $1,437.7 million for the three months ended September 30, 2020. Compared with the same quarter in the prior year, the overall increase in sales was driven by a sales price increase of 23%, offset partially by a sales volume decrease of 3%. By product line, commodity sales increased 7%, general line product sales increased 20%, and sales of EWP (substantially all of which is sourced through our Wood Products segment) increased 57%.

BMD segment income decreased $91.3 million to $16.6 million for the three months ended September 30, 2021, from $107.9 million in the comparative prior year quarter. The decline in segment income was driven primarily by a gross margin decrease of $100.5 million, resulting from a sharp decline in commodity prices during third quarter 2021. The negative impacts from commodity price declines were offset partially by higher sales volumes and gross margin percentages for EWP and general line products, as well as decreased selling and distribution expenses of $7.8 million.

Unallocated Corporate Costs

Unallocated corporate expenses decreased $6.1 million to $9.2 million for the three months ended September 30, 2021, from $15.4 million for the same period in the prior year. The decrease was due primarily to lower employee-related expenses of $3.0 million, most of which relates to incentive compensation. In addition, as part of our self-insured risk retention program, corporate absorbed approximately $3.2 million of estimated business interruption losses at Wood Products facilities in third quarter 2020.

Balance Sheet and Liquidity

Boise Cascade ended third quarter 2021 with $786.9 million of cash and cash equivalents and $345.3 million of undrawn committed bank line availability, for total available liquidity of $1,132.2 million. The Company had $444.4 million of outstanding debt at September 30, 2021.

We expect capital expenditures in 2021 to total approximately $90 million to $100 million. Included in our capital spending range is the completion of a log utilization center project at our Florien plywood and veneer plant, a new door assembly operation in Houston, and expansion of our distribution capabilities in the Nashville market. We expect our capital spending, excluding acquisitions, to be approximately $100-to-$130 million in 2022. These levels of capital expenditures could increase or decrease as a result of a number of factors, including acquisitions, efforts to accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

Dividends

On October 28, 2021, our board of directors declared a quarterly dividend of $0.12 per share on our common stock, as well as a supplemental dividend of $3.00 per share on our common stock, both payable on December 15, 2021, to stockholders of record on December 1, 2021.

Future dividend declarations, including amount per share, record date and payment date, will be made at the discretion of our board of directors and will depend upon, among other things, legal capital requirements and surplus, our future operations and earnings, general financial condition, contractual obligations, restrictions imposed by our asset-based credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant.

Outlook

After seeing fewer pandemic-related disruptions during second quarter 2021, we experienced short-term disruptions at many locations during the third quarter as COVID-19 variants spread throughout the United States. We continue to conduct business with certain modifications to mill and distribution center housekeeping and cleanliness protocols, employee travel, employee work locations, and virtualization or cancellation of certain sales and marketing events, among other modifications. In addition, we continue to actively monitor evolving developments, including the impact of COVID-19 variants, and may take actions that alter our business operations as may be required by federal, state, or local authorities, or that we determine are in the best interests of our employees, customers, suppliers, communities, and stockholders. Furthermore, we are monitoring the development of government mandates that companies ensure workers are vaccinated or tested regularly for COVID-19. While we educate our associates on the effectiveness of vaccines and strongly encourage vaccination for its long-term health benefits, the new regulation may have the near-term effect of increasing costs, straining company resources, interrupting operations, reducing employee morale, or increasing employee turnover, which could adversely affect our business, results of operations, or financial condition.

Economic uncertainty due to the pandemic continues. However, low mortgage rates, continuation of work-from-home practices by many in the economy, and demographics in the U.S. have created a favorable demand environment for new residential construction, particularly single-family housing starts, which we expect to continue in 2021 and into next year. As of October 2021, the Blue Chip Economic Indicators consensus forecast for 2021 and 2022 single- and multi-family housing starts in the U.S. were 1.59 million and 1.57 million units, respectively, compared with actual housing starts of 1.38 million in 2020, as reported by the U.S. Census Bureau. In addition, the age of the U.S. housing stock and limited home inventory availability will continue to provide a favorable backdrop for repair-and-remodel spending. Although we believe that current U.S. demographics support a higher level of forecasted housing starts, and many national home builders are reporting strong near-term backlogs, labor shortages and supply induced constraints on residential construction activity may continue to extend build times and limit activity. In addition, the pace of residential construction and repair-and-remodeling activity may be affected by the economic impact of the cost of building materials and construction, housing affordability, mortgage interest rates, wage growth, prospective home buyers' access to financing, consumer confidence, as well as other factors.

As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of commodity products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Reflected in our operating results, lumber and panel pricing was very volatile during second and third quarters 2021, with rapidly rising prices in April and most of May followed by sharp price declines through the month of August before stabilizing in September. Future commodity product pricing and commodity input costs could be volatile in response to capacity restoration and industry operating rates, the impact of COVID-19 on residential construction, net import and export activity, transportation constraints or disruptions, inventory levels in various distribution channels, and seasonal demand patterns.

About Boise Cascade

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

Webcast and Conference Call

Boise Cascade will host a webcast and conference call to discuss third quarter earnings on Tuesday, November 2, 2021, at 11 a.m. Eastern.

To participate in the conference call, dial 844-795-4410 and use participant passcode 1675748 (international callers should dial 661-378-9637). To join the webcast, go to the Investor Relations section at www.bc.com and select the Event Calendar link.

A replay of the conference call will be available from Tuesday, November 2, 2021, at 2 p.m. Eastern through Tuesday, November 9, 2021, at 2 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. callers and 404-537-3406 for international callers with a passcode of 1675748. The archived webcast will be available in the Investor Relations section of Boise Cascade's website.

Use of Non-GAAP Financial Measures

We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of debt.

We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income (loss) or segment income (loss) have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

Forward-Looking Statements

This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, the effect of COVID-19 and related state or federal vaccine mandates, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.

Boise Cascade Company

Consolidated Statements of Operations

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

Three Months Ended Nine Months Ended

September 30 June 30, September 30 2021 2021 2020 2021 2020



Sales $ 1,879,451 $ 1,589,313 $ 2,443,161 $ 6,143,928 $ 4,002,607



Costs and expenses

Materials,labor, andotheroperating 1,594,405 1,261,697 1,864,523 4,909,362 3,302,869 expenses(excludingdepreciation)

Depreciationand 20,299 20,029 20,420 60,258 75,260 amortization

Selling anddistribution 114,466 122,884 130,736 366,119 325,913 expenses

General andadministrative 21,002 26,060 17,988 64,252 60,899 expenses

Loss oncurtailment of - - - - 1,707 facility

Other (income) (107 ) 71 (281 ) (485 ) 70 expense, net

1,750,065 1,430,741 2,033,386 5,399,506 3,766,718



Income from 129,386 158,572 409,775 744,422 235,889 operations



Foreigncurrency (353 ) 265 147 (52 ) (199 )exchange gain(loss)

Pensionexpense (19 ) (302 ) (19 ) (57 ) (991 )(excludingservice costs)

Interest (6,279 ) (7,002 ) (6,347 ) (18,501 ) (20,056 )expense

Interest 63 113 51 173 958 income

Change in fairvalue of 59 147 (25 ) 1,058 (2,681 )interest rateswaps

Loss onextinguishment - (13,968 ) - - (13,968 )of debt

(6,529 ) (20,747 ) (6,193 ) (17,379 ) (36,937 )



Income before 122,857 137,825 403,582 727,043 198,952 income taxes

Income tax (31,158 ) (34,633 ) (101,026 ) (183,632 ) (49,974 )provision

Net income $ 91,699 $ 103,192 $ 302,556 $ 543,411 $ 148,978



Weightedaverage common sharesoutstanding:

Basic 39,442 39,315 39,442 39,413 39,264

Diluted 39,661 39,526 39,688 39,623 39,396



Net income per common share:

Basic $ 2.32 $ 2.62 $ 7.67 $ 13.79 $ 3.79

Diluted $ 2.31 $ 2.61 $ 7.62 $ 13.71 $ 3.78



Dividendsdeclared per $ 0.10 $ 1.70 $ 2.10 $ 2.30 $ 1.90 common share

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended

Nine Months Ended

September 30

June 30, 2021

September 30

2021

2020

2021

2020

Segment sales

$

497,316

$

363,674

$

594,569

$

1,524,220

$

965,240

Costs and expenses

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

348,167

268,930

353,916

1,010,691

782,590

Depreciation and amortization

13,914

13,938

14,128

41,388

57,472

Selling and distribution expenses

9,124

9,684

8,835

26,958

25,220

General and administrative expenses

4,023

5,084

3,872

12,214

11,547

Loss on curtailment of facility

-

-

-

-

1,707

Other (income) expense, net

32

3

57

100

(168

)

375,260

297,639

380,808

1,091,351

878,368

Segment income

$

122,056

$

66,035

$

213,761

$

432,869

$

86,872

(percentage of sales)

Segment sales

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Costs and expenses

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

70.0

%

73.9

%

59.5

%

66.3

%

81.1

%

Depreciation and amortization

2.8

%

3.8

%

2.4

%

2.7

%

6.0

%

Selling and distribution expenses

1.8

%

2.7

%

1.5

%

1.8

%

2.6

%

General and administrative expenses

0.8

%

1.4

%

0.7

%

0.8

%

1.2

%

Loss on curtailment of facility

-

%

-

%

-

%

-

%

0.2

%

Other (income) expense, net

-

%

-

%

-

%

-

%

-

%

75.5

%

81.8

%

64.0

%

71.6

%

91.0

%

Segment income

24.5

%

18.2

%

36.0

%

28.4

%

9.0

%

Wood Products Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended Nine Months Ended

September 30 June 30, September 30 2021 2021 2020 2021 2020



Segment sales $ 497,316 $ 363,674 $ 594,569 $ 1,524,220 $ 965,240



Costs and expenses

Materials,labor, andotheroperating 348,167 268,930 353,916 1,010,691 782,590 expenses(excludingdepreciation)

Depreciationand 13,914 13,938 14,128 41,388 57,472 amortization

Selling anddistribution 9,124 9,684 8,835 26,958 25,220 expenses

General andadministrative 4,023 5,084 3,872 12,214 11,547 expenses

Loss oncurtailment of - - - - 1,707 facility

Other (income) 32 3 57 100 (168 )expense, net

375,260 297,639 380,808 1,091,351 878,368



Segment income $ 122,056 $ 66,035 $ 213,761 $ 432,869 $ 86,872



(percentage of sales)



Segment sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Costs and expenses

Materials,labor, andotheroperating 70.0 % 73.9 % 59.5 % 66.3 % 81.1 %expenses(excludingdepreciation)

Depreciationand 2.8 % 3.8 % 2.4 % 2.7 % 6.0 %amortization

Selling anddistribution 1.8 % 2.7 % 1.5 % 1.8 % 2.6 %expenses

General andadministrative 0.8 % 1.4 % 0.7 % 0.8 % 1.2 %expenses

Loss oncurtailment of - % - % - % - % 0.2 %facility

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

75.5 % 81.8 % 64.0 % 71.6 % 91.0 %



Segment income 24.5 % 18.2 % 36.0 % 28.4 % 9.0 %

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended

Nine Months Ended

September 30

June 30, 2021

September 30

2021

2020

2021

2020

Segment sales

$

1,721,244

$

1,437,683

$

2,172,744

$

5,528,765

$

3,621,940

Costs and expenses

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

1,585,804

1,201,722

1,832,929

4,806,084

3,101,948

Depreciation and amortization

6,013

5,686

5,917

17,749

16,614

Selling and distribution expenses

105,342

113,146

121,901

339,163

300,527

General and administrative expenses

7,816

9,282

7,230

24,627

22,623

Other (income) expense, net

(296

)

(54

)

(1,571

)

(1,980

)

(185

)

1,704,679

1,329,782

1,966,406

5,185,643

3,441,527

Segment income

$

16,565

$

107,901

$

206,338

$

343,122

$

180,413

(percentage of sales)

Segment sales

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Costs and expenses

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

92.1

%

83.6

%

84.4

%

86.9

%

85.6

%

Depreciation and amortization

0.3

%

0.4

%

0.3

%

0.3

%

0.5

%

Selling and distribution expenses

6.1

%

7.9

%

5.6

%

6.1

%

8.3

%

General and administrative expenses

0.5

%

0.6

%

0.3

%

0.4

%

0.6

%

Other (income) expense, net

-

%

-

%

(0.1

)%

-

%

-

%

99.0

%

92.5

%

90.5

%

93.8

%

95.0

%

Segment income

1.0

%

7.5

%

9.5

%

6.2

%

5.0

%

Building Materials Distribution Segment

Statements of Operations

(in thousands, except percentages) (unaudited)

Three Months Ended Nine Months Ended

September 30 June 30, September 30 2021 2021 2020 2021 2020



Segment sales $ 1,721,244 $ 1,437,683 $ 2,172,744 $ 5,528,765 $ 3,621,940



Costs and expenses

Materials,labor, andotheroperating 1,585,804 1,201,722 1,832,929 4,806,084 3,101,948 expenses(excludingdepreciation)

Depreciationand 6,013 5,686 5,917 17,749 16,614 amortization

Selling anddistribution 105,342 113,146 121,901 339,163 300,527 expenses

General andadministrative 7,816 9,282 7,230 24,627 22,623 expenses

Other (income) (296 ) (54 ) (1,571 ) (1,980 ) (185 )expense, net

1,704,679 1,329,782 1,966,406 5,185,643 3,441,527



Segment income $ 16,565 $ 107,901 $ 206,338 $ 343,122 $ 180,413



(percentage of sales)



Segment sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Costs and expenses

Materials,labor, andotheroperating 92.1 % 83.6 % 84.4 % 86.9 % 85.6 %expenses(excludingdepreciation)

Depreciationand 0.3 % 0.4 % 0.3 % 0.3 % 0.5 %amortization

Selling anddistribution 6.1 % 7.9 % 5.6 % 6.1 % 8.3 %expenses

General andadministrative 0.5 % 0.6 % 0.3 % 0.4 % 0.6 %expenses

Other (income) - % - % (0.1 ) - % - %expense, net %

99.0 % 92.5 % 90.5 % 93.8 % 95.0 %



Segment income 1.0 % 7.5 % 9.5 % 6.2 % 5.0 %

Segment Information

(in thousands) (unaudited)

Three Months Ended

Nine Months Ended

September 30

June 30, 2021

September 30

2021

2020

2021

2020

Segment sales

Wood Products

$

497,316

$

363,674

$

594,569

$

1,524,220

$

965,240

Building Materials Distribution

1,721,244

1,437,683

2,172,744

5,528,765

3,621,940

Intersegment eliminations

(339,109

)

(212,044

)

(324,152

)

(909,057

)

(584,573

)

Total net sales

$

1,879,451

$

1,589,313

$

2,443,161

$

6,143,928

$

4,002,607

Segment income

Wood Products

$

122,056

$

66,035

$

213,761

$

432,869

$

86,872

Building Materials Distribution

16,565

107,901

206,338

343,122

180,413

Total segment income

138,621

173,936

420,099

775,991

267,285

Unallocated corporate costs

(9,235

)

(15,364

)

(10,324

)

(31,569

)

(31,396

)

Income from operations

$

129,386

$

158,572

$

409,775

$

744,422

$

235,889

Segment EBITDA (a)

Wood Products

$

135,970

$

79,973

$

227,889

$

474,257

$

144,344

Building Materials Distribution

22,578

113,587

212,255

360,871

197,027

Segment Information

(in thousands) (unaudited)

Three Months Ended Nine Months Ended

September 30 June 30, September 30 2021 2021 2020 2021 2020

Segment sales

Wood $ 497,316 $ 363,674 $ 594,569 $ 1,524,220 $ 965,240 Products

BuildingMaterials 1,721,244 1,437,683 2,172,744 5,528,765 3,621,940 Distribution

Intersegment (339,109 ) (212,044 ) (324,152 ) (909,057 ) (584,573 )eliminations

Total net $ 1,879,451 $ 1,589,313 $ 2,443,161 $ 6,143,928 $ 4,002,607 sales



Segment income

Wood $ 122,056 $ 66,035 $ 213,761 $ 432,869 $ 86,872 Products

BuildingMaterials 16,565 107,901 206,338 343,122 180,413 Distribution

Totalsegment 138,621 173,936 420,099 775,991 267,285 income

Unallocatedcorporate (9,235 ) (15,364 ) (10,324 ) (31,569 ) (31,396 )costs

Income from $ 129,386 $ 158,572 $ 409,775 $ 744,422 $ 235,889 operations



Segment EBITDA (a)

Wood $ 135,970 $ 79,973 $ 227,889 $ 474,257 $ 144,344 Products

BuildingMaterials 22,578 113,587 212,255 360,871 197,027 Distribution

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

See accompanying summary notes to consolidated financial statements and segmentinformation.

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

September 30, 2021

December 31, 2020

ASSETS

Current

Cash and cash equivalents

$

786,886

$

405,382

Receivables

Trade, less allowances of $3,393 and $1,111

473,727

375,865

Related parties

180

201

Other

17,016

15,067

Inventories

644,370

503,480

Prepaid expenses and other

15,812

8,860

Total current assets

1,937,991

1,308,855

Property and equipment, net

459,254

461,456

Operating lease right-of-use assets

64,678

62,447

Finance lease right-of-use assets

27,549

29,523

Timber deposits

9,333

11,761

Goodwill

60,382

60,382

Intangible assets, net

15,657

16,574

Deferred income taxes

6,969

7,460

Other assets

6,552

7,260

Total assets

$

2,588,365

$

1,965,718

Boise Cascade Company

Consolidated Balance Sheets

(in thousands) (unaudited)

September 30, December 31, 2021 2020



ASSETS



Current

Cash and cash equivalents $ 786,886 $ 405,382

Receivables

Trade, less allowances of $3,393 and 473,727 375,865$1,111

Related parties 180 201

Other 17,016 15,067

Inventories 644,370 503,480

Prepaid expenses and other 15,812 8,860

Total current assets 1,937,991 1,308,855



Property and equipment, net 459,254 461,456

Operating lease right-of-use assets 64,678 62,447

Finance lease right-of-use assets 27,549 29,523

Timber deposits 9,333 11,761

Goodwill 60,382 60,382

Intangible assets, net 15,657 16,574

Deferred income taxes 6,969 7,460

Other assets 6,552 7,260

Total assets $ 2,588,365 $ 1,965,718

Boise Cascade Company

Consolidated Balance Sheets (continued)

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

September 30, 2021

December 31, 2020

LIABILITIES AND STOCKHOLDERS' EQUITY

Current

Accounts payable

Trade

$

412,097

$

307,653

Related parties

1,184

1,199

Accrued liabilities

Compensation and benefits

118,926

118,400

Income taxes payable

109

8,101

Interest payable

5,004

8,477

Other

162,975

80,172

Total current liabilities

700,295

524,002

Debt

Long-term debt

444,419

443,792

Other

Compensation and benefits

28,600

25,951

Operating lease liabilities, net of current portion

57,468

56,001

Finance lease liabilities, net of current portion

30,263

31,607

Deferred income taxes

5,720

18,263

Other long-term liabilities

15,995

15,303

138,046

147,125

Commitments and contingent liabilities

Stockholders' equity

Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding

-

-

Common stock, $0.01 par value per share; 300,000 shares authorized, 44,698 and 44,568 shares issued, respectively

447

446

Treasury stock, 5,367 shares at cost

(138,909

)

(138,909

)

Additional paid-in capital

541,022

538,006

Accumulated other comprehensive loss

(1,088

)

(1,078

)

Retained earnings

904,133

452,334

Total stockholders' equity

1,305,605

850,799

Total liabilities and stockholders' equity

$

2,588,365

$

1,965,718

Boise Cascade Company

Consolidated Balance Sheets (continued)

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

September 30, December 31, 2021 2020



LIABILITIES AND STOCKHOLDERS' EQUITY



Current

Accounts payable

Trade $ 412,097 $ 307,653

Related parties 1,184 1,199

Accrued liabilities

Compensation and benefits 118,926 118,400

Income taxes payable 109 8,101

Interest payable 5,004 8,477

Other 162,975 80,172

Total current liabilities 700,295 524,002



Debt

Long-term debt 444,419 443,792



Other

Compensation and benefits 28,600 25,951

Operating lease liabilities, net of current 57,468 56,001 portion

Finance lease liabilities, net of current 30,263 31,607 portion

Deferred income taxes 5,720 18,263

Other long-term liabilities 15,995 15,303

138,046 147,125



Commitments and contingent liabilities



Stockholders' equity

Preferred stock, $0.01 par value per share;50,000 shares authorized, no shares issued - - and outstanding

Common stock, $0.01 par value per share;300,000 shares authorized, 44,698 and 44,568 447 446 shares issued, respectively

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

Additional paid-in capital 541,022 538,006

Accumulated other comprehensive loss (1,088 ) (1,078 )

Retained earnings 904,133 452,334

Total stockholders' equity 1,305,605 850,799

Total liabilities and stockholders' equity $ 2,588,365 $ 1,965,718

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Nine Months Ended September 30

2021

2020

Cash provided by (used for) operations

Net income

$

543,411

$

148,978

Items in net income not using (providing) cash

Depreciation and amortization, including deferred financing costs and other

61,559

76,784

Stock-based compensation

5,684

5,839

Pension expense

57

1,492

Deferred income taxes

(12,017)

(2,460)

Change in fair value of interest rate swaps

(1,058)

2,681

Loss on curtailment of facility (excluding severance)

-

1,476

Other

928

205

Loss on extinguishment of debt

-

13,968

Decrease (increase) in working capital

Receivables

(99,881)

(205,995)

Inventories

(142,171)

42,904

Prepaid expenses and other

(7,007)

(9,641)

Accounts payable and accrued liabilities

186,090

213,935

Pension contributions

(229)

(12,659)

Income taxes payable

(7,927)

17,121

Other

(348)

(857)

Net cash provided by operations

527,091

293,771

Cash provided by (used for) investment

Expenditures for property and equipment

(51,460)

(46,994)

Proceeds from sales of assets and other

636

563

Net cash used for investment

(50,824)

(46,431)

Cash provided by (used for) financing

Borrowings of long-term debt, including revolving credit facility

28,000

400,000

Payments of long-term debt, including revolving credit facility

(28,000)

(405,774)

Payments of deferring financing costs

-

(6,222)

Dividends paid on common stock

(90,969)

(12,553)

Tax withholding payments on stock-based awards

(2,729)

(3,309)

Other

(1,065)

(784)

Net cash used for financing

(94,763)

(28,642)

Net increase in cash and cash equivalents

381,504

218,698

Balance at beginning of the period

405,382

285,237

Balance at end of the period

$

786,886

$

503,935

Summary Notes to Consolidated Financial Statements and Segment Information

The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company's 2020 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

Boise Cascade Company

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Nine Months Ended September 30

2021 2020

Cash provided by (used for) operations

Net income $ 543,411 $ 148,978

Items in net income not using (providing) cash

Depreciation and amortization, including deferred 61,559 76,784financing costs and other

Stock-based compensation 5,684 5,839

Pension expense 57 1,492

Deferred income taxes (12,017) (2,460)

Change in fair value of interest rate swaps (1,058) 2,681

Loss on curtailment of facility (excluding severance) - 1,476

Other 928 205

Loss on extinguishment of debt - 13,968

Decrease (increase) in working capital

Receivables (99,881) (205,995)

Inventories (142,171) 42,904

Prepaid expenses and other (7,007) (9,641)

Accounts payable and accrued liabilities 186,090 213,935

Pension contributions (229) (12,659)

Income taxes payable (7,927) 17,121

Other (348) (857)

Net cash provided by operations 527,091 293,771



Cash provided by (used for) investment

Expenditures for property and equipment (51,460) (46,994)

Proceeds from sales of assets and other 636 563

Net cash used for investment (50,824) (46,431)



Cash provided by (used for) financing

Borrowings of long-term debt, including revolving 28,000 400,000credit facility

Payments of long-term debt, including revolving (28,000) (405,774)credit facility

Payments of deferring financing costs - (6,222)

Dividends paid on common stock (90,969) (12,553)

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

Other (1,065) (784)

Net cash used for financing (94,763) (28,642)



Net increase in cash and cash equivalents 381,504 218,698



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



Balance at end of the period $ 786,886 $ 503,935

Summary Notes to Consolidated Financial Statements and Segment Information

The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company's 2020 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

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(a) in fair value of interest rate swaps and loss on extinguishment of debt. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended September 30, 2021 and 2020, and June 30, 2021, and the nine months ended September 30, 2021 and 2020:

Three Months Ended Nine Months Ended

September 30 June 30, September 30 2021 2021 2020 2021 2020

(in thousands)

Net income $ 91,699 $ 103,192 $ 302,556 $ 543,411 $ 148,978

Interest 6,279 7,002 6,347 18,501 20,056 expenseInterest (63) (113) (51) (173) (958) incomeIncome tax 31,158 34,633 101,026 183,632 49,974 provisionDepreciation 20,299 20,029 20,420 60,258 75,260 andamortizationEBITDA 149,372 164,743 430,298 805,629 293,310

Change in fairvalue of (59) (147) 25 (1,058) 2,681 interest rateswapsLoss on - 13,968 - - 13,968 extinguishmentof debtAdjusted $ 149,313 $ 178,564 $ 430,323 $ 804,571 $ 309,959 EBITDAThe following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended September 30, 2021 and 2020, and June 30, 2021, and the nine months ended September 30, 2021 and 2020:Three Months Ended

Nine Months Ended

September 30

June 30, 2021

September 30

2021

2020

2021

2020

(in thousands)

Wood ProductsSegment income$

122,056

$

66,035

$

213,761

$

432,869

$

86,872

Depreciation and amortization13,914

13,938

14,128

41,388

57,472

EBITDA$

135,970

$

79,973

$

227,889

$

474,257

$

144,344

Building Materials DistributionSegment income$

16,565

$

107,901

$

206,338

$

343,122

$

180,413

Depreciation and amortization6,013

5,686

5,917

17,749

16,614

EBITDA$

22,578

$

113,587

$

212,255

$

360,871

$

197,027

CorporateUnallocated corporate costs$

(9,235)

$

(15,364)

$

(10,324)

$

(31,569)

$

(31,396)

Foreign currency exchange gain (loss)(353)

265

147

(52)

(199)

Pension expense (excluding service costs)(19)

(302)

(19)

(57)

(991)

Change in fair value of interest rate swaps59

147

(25)

1,058

(2,681)

Loss on extinguishment of debt-

(13,968)

-

-

(13,968)

Depreciation and amortization372

405

375

1,121

1,174

EBITDA(9,176)

(28,817)

(9,846)

(29,499)

(48,061)

Change in fair value of interest rate swaps(59)

(147)

25

(1,058)

2,681

Loss on extinguishment of debt-

13,968

-

-

13,968

Corporate adjusted EBITDA$

(9,235)

$

(14,996)

$

(9,821)

$

(30,557)

$

(31,412)

Total Company adjusted EBITDA$

149,313

$

178,564

$

430,323

$

804,571

$

309,959

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005909/en/

CONTACT: Investor Relations Contact - Kelly Hibbs 208 384 3638 Media Contact - Lisa Tschampl 208 384 6552