Core Viewpoint - The market anticipates Boise Cascade (BCC) will report a year-over-year decline in earnings due to lower revenues, with the actual results being crucial for stock price movement [1] Earnings Expectations - Boise Cascade is expected to report quarterly earnings of $2.65 per share, reflecting a year-over-year decrease of 27.8% [2] - Revenues are projected to be $1.73 billion, down 4.8% from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised down by 13.78% over the last 30 days, indicating a reassessment by analysts [2] - The Most Accurate Estimate for Boise Cascade is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.40% [5] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading can indicate a likely earnings beat, especially when combined with a strong Zacks Rank [4] - Boise Cascade currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [5][6] Historical Performance - In the last reported quarter, Boise Cascade exceeded the expected earnings of $2.30 per share by delivering $2.61, resulting in a surprise of +13.48% [7] - Over the past four quarters, the company has beaten consensus EPS estimates three times [7] Conclusion - While Boise Cascade does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions [8]

A month has gone by since the last earnings report for Boise Cascade (BCC) . Shares have added about 1.1% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Boise Cascade due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Boise Cascade Q1 Earnings & Sales Top Estimates, ...

Boise Cascade Company (NYSE:BCC) Q1 2024 Results Conference Call May 7, 2024 11:00 AM ET Company Participants Chris Forrey - IR Nate Jorgensen - Chief Executive Officer Kelly Hibbs - Senior Vice President, Chief Financial Officer and Treasurer Troy Little - Head-Wood Products Operations Jeff Strom - Head-Building Materials Distribution Operations Conference Call Participants Charles Perron - Goldman Sachs Mike Roxland - Truist Lucas Hudson - Bank of America Securities Ketan Mamtora - BMO Kurt Yinger - D.A. ...

Boise Cascade Company (BCC) reported splendid first-quarter 2024 results, wherein earnings and sales topped the Zacks Consensus Estimate and increased year over year.The uptrend in the company’s results was attributable to the seasonal tailwinds and strength in new single-family housing starts, resulting in sales volume growth. These factors aided the increased contributions from BCC’s two reportable segments.The company remains optimistic about the increasing trajectory of single-family housing starts, giv ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) For Q1 2024, Boise Cascade reported a 6.5% sales increase to $1.65 billion and a 7.6% net income increase to $104.1 million, with diluted EPS of $2.61, while operating cash flow decreased to $27.5 million due to increased working capital [Nature of Operations and Consolidation](index=10&type=section&id=1.%20Nature%20of%20Operations%20and%20Consolidation) Boise Cascade operates through two segments: Wood Products (EWP and plywood manufacturing) and Building Materials Distribution (wholesale distribution) - The company operates through two primary segments: Wood Products, which manufactures EWP and plywood, and Building Materials Distribution (BMD), a wholesale distributor[27](index=27&type=chunk) [Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) The company's accounting policies involve significant estimates for valuations and contingencies, with revenue recognized upon transfer of control and a notable concentration of credit risk from two major customers - The preparation of financial statements requires management to make significant estimates and assumptions regarding valuations, contingencies, and rebates[30](index=30&type=chunk) - As of March 31, 2024, two customers represented a significant concentration of credit risk, accounting for **19%** and **11%** of total receivables[48](index=48&type=chunk) [Income Taxes](index=14&type=section&id=3.%20Income%20Taxes) The company recorded an income tax provision of $32.8 million for Q1 2024, with an effective tax rate of 24.0%, primarily influenced by state taxes Income Tax Provision and Effective Rate | Period | Income Tax Expense (millions) | Effective Tax Rate | | :--- | :--- | :--- | | Q1 2024 | $32.8 | 24.0% | | Q1 2023 | $33.3 | 25.6% | [Net Income Per Common Share](index=14&type=section&id=4.%20Net%20Income%20Per%20Common%20Share) For Q1 2024, basic net income per share was $2.63 and diluted net income per share was $2.61, an increase from Q1 2023 Net Income Per Common Share | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Basic EPS | $2.63 | $2.44 | | Diluted EPS | $2.61 | $2.43 | [Acquisition](index=15&type=section&id=5.%20Acquisition) On October 2, 2023, the company's BMD subsidiary acquired Brockway-Smith Company (BROSCO) for $166.2 million in cash, adding $32.3 million in goodwill and $47.0 million in intangible assets - Completed the acquisition of Brockway-Smith Company (BROSCO) on October 2, 2023, for a net purchase price of **$166.2 million**, funded with cash on hand[56](index=56&type=chunk) BROSCO Acquisition - Preliminary Fair Value Allocation | Asset/Liability Category | Fair Value (thousands) | | :--- | :--- | | Inventories | $36,000 | | Property and equipment | $57,331 | | Intangible assets | $47,000 | | Goodwill | $32,296 | | **Net assets acquired** | **$170,170** | [Goodwill and Intangible Assets](index=16&type=section&id=6.%20Goodwill%20and%20Intangible%20Assets) As of March 31, 2024, goodwill remained stable at $170.3 million, with net intangible assets at $185.8 million, and amortization expense for Q1 2024 was $4.9 million - The total goodwill balance remained unchanged at **$170.3 million** as of March 31, 2024[63](index=63&type=chunk) - Amortization expense for intangible assets was **$4.9 million** for Q1 2024, compared to **$4.3 million** for Q1 2023[63](index=63&type=chunk) [Debt](index=17&type=section&id=7.%20Debt) Total long-term debt as of March 31, 2024, was $445.5 million, comprising a $50.0 million term loan and $400.0 million in senior notes, with $395.7 million available under its revolving credit facility Long-Term Debt Composition (March 31, 2024) | Component | Amount (thousands) | | :--- | :--- | | Asset-based credit facility term loan due 2027 | $50,000 | | 4.875% senior notes due 2030 | $400,000 | | Deferred financing costs | ($4,498) | | **Total Long-term debt** | **$445,502** | - At March 31, 2024, there were no borrowings outstanding under the Revolving Credit Facility, and availability was **$395.7 million**[68](index=68&type=chunk)[71](index=71&type=chunk) [Leases](index=19&type=section&id=8.%20Leases) Total lease cost for Q1 2024 was $7.6 million, with future minimum lease payment obligations of $84.4 million for operating leases and $48.2 million for finance leases as of March 31, 2024 Lease Costs (Q1 2024 vs Q1 2023) | Component | Q1 2024 (thousands) | Q1 2023 (thousands) | | :--- | :--- | :--- | | Operating lease cost | $3,475 | $3,317 | | Finance lease cost | $1,158 | $1,178 | | Variable & Short-term lease cost | $3,041 | $2,936 | | **Total lease cost** | **$7,627** | **$7,378** | - As of March 31, 2024, long-term lease obligations totaled **$54.9 million** for operating leases and **$28.3 million** for finance leases[83](index=83&type=chunk) [Stock-Based Compensation](index=21&type=section&id=9.%20Stock-Based%20Compensation) The company recognized $4.1 million in stock-based compensation expense in Q1 2024, with $32.5 million of unrecognized expense remaining for nonvested awards Stock-Based Compensation Expense | Period | Expense (thousands) | | :--- | :--- | | Q1 2024 | $4,105 | | Q1 2023 | $3,324 | - As of March 31, 2024, total unrecognized compensation expense was **$32.5 million**, to be recognized over a weighted-average of **2.2 years**[91](index=91&type=chunk) [Stockholders' Equity](index=22&type=section&id=10.%20Stockholders%27%20Equity) The board declared a quarterly dividend of $0.20 per share, and the company repurchased 205,938 shares for $27.0 million in Q1 2024, with 1.72 million shares remaining for repurchase - A quarterly dividend of **$0.20 per share** was declared, payable on June 17, 2024[92](index=92&type=chunk) - In Q1 2024, the company repurchased **205,938 shares** for **$27.0 million**, at an average price of **$130.97 per share**[94](index=94&type=chunk) [Transactions With Related Party](index=23&type=section&id=11.%20Transactions%20With%20Related%20Party) The company conducts transactions with Louisiana Timber Procurement Company, L.L.C. (LTP), a 50%-owned unconsolidated entity, including $2.6 million in sales to LTP and $19.8 million in wood fiber purchases from LTP in Q1 2024 - The company holds a **50%** interest in Louisiana Timber Procurement Company, L.L.C. (LTP), an unconsolidated variable-interest entity[95](index=95&type=chunk) Related Party Transactions with LTP (Q1 2024) | Transaction Type | Amount (millions) | | :--- | :--- | | Sales to LTP | $2.6 | | Wood fiber purchases from LTP | $19.8 | [Segment Information](index=24&type=section&id=12.%20Segment%20Information) In Q1 2024, the Building Materials Distribution (BMD) segment led with $1.51 billion in sales and $72.5 million in operating income, while the Wood Products segment contributed $468.9 million in sales and $71.2 million in operating income, with both segments showing improved operating income year-over-year Segment Performance (Q1 2024 vs Q1 2023) | Segment | Net Sales (thousands) | Operating Income (thousands) | | :--- | :--- | :--- | | **Q1 2024** | | | | Wood Products | $468,928 | $71,238 | | Building Materials Distribution | $1,505,021 | $72,463 | | **Q1 2023** | | | | Wood Products | $437,428 | $69,395 | | Building Materials Distribution | $1,379,242 | $69,685 | [Commitments, Legal Proceedings and Contingencies, and Guarantees](index=25&type=section&id=13.%20Commitments%2C%20Legal%20Proceedings%20and%20Contingencies%2C%20and%20Guarantees) The company reports no material changes to its commitments, legal proceedings, contingencies, or guarantees as disclosed in its 2023 Form 10-K, and is not party to any legal action expected to have a material adverse effect on its financial position - As of March 31, 2024, there have been no material changes to commitments, legal proceedings, or guarantees from those disclosed in the 2023 Form 10-K[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 7% year-over-year sales increase in Q1 2024, driven by strong demand in single-family residential construction, with operating income rising to $133.0 million as improved BMD margins offset Wood Products' lower EWP pricing and higher input costs, maintaining a strong liquidity position of $1.29 billion [Executive Overview](index=27&type=section&id=Executive%20Overview) Q1 2024 operating income increased to $133.0 million, driven by higher EWP sales volumes in Wood Products and increased gross margin from higher volumes and better product margins in BMD, with the company ending the quarter with $1.29 billion in liquidity - Income from operations was **$133.0 million** in Q1 2024, an increase from **$127.6 million** in Q1 2023[113](index=113&type=chunk) - The company ended Q1 2024 with total available liquidity of **$1.29 billion**, comprising **$890.2 million** in cash and **$395.7 million** in undrawn bank line availability[114](index=114&type=chunk) - Management notes that while home affordability remains a challenge, new residential construction is expected to be a key source of supply for homebuyers in 2024, supporting demand[115](index=115&type=chunk) [Our Operating Results](index=30&type=section&id=Our%20Operating%20Results) Total sales for Q1 2024 increased by 7% to $1.65 billion, driven by a 27% rise in single-family housing starts, with Wood Products sales growing 7% due to higher EWP volumes despite price declines, and BMD sales rising 9% on a 12% volume increase Key Performance Indicators (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | U.S. Single-family Starts (thousands) | 239.1 | 188.2 | +27% | | Wood Products LVL Volume (Mcf) | 4.8 | 3.6 | +33% | | Wood Products I-joist Volume (Mlf) | 57 | 39 | +46% | | Wood Products LVL Price ($/cf) | $28.75 | $31.17 | -8% | | Wood Products I-joist Price ($/Mlf) | $2,018 | $2,168 | -7% | | BMD Gross Margin % | 15.1% | 14.8% | +30 bps | - Wood Products sales increased by **$31.5 million (7%)** due to higher EWP sales volumes, partially offset by lower EWP sales prices and decreased plywood volumes[128](index=128&type=chunk) - BMD sales increased by **$125.8 million (9%)**, driven by a **12%** sales volume increase across all product lines, partially offset by a **3%** price decrease[129](index=129&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position decreased by $59.3 million in Q1 2024 to $890.2 million, with net cash from operations at $27.5 million due to increased working capital, and projected 2024 capital expenditures are $250 million to $270 million Summary of Cash Flows (Q1 2024) | Activity | Cash Flow (thousands) | | :--- | :--- | | Net cash provided by operations | $27,462 | | Net cash used for investment | ($37,158) | | Net cash used for financing | ($49,631) | - The decrease in operating cash flow was primarily due to a **$149.2 million** increase in working capital in Q1 2024, compared to a **$117.7 million** increase in the prior-year period[142](index=142&type=chunk) - The company expects capital expenditures for 2024 to be approximately **$250 million to $270 million**, including spending on I-joist production expansion and greenfield distribution centers[145](index=145&type=chunk) [Seasonal Influences](index=35&type=section&id=Seasonal%20Influences) The company's business is subject to seasonal factors, with sales volumes typically lower in the first and fourth quarters due to weather impacting construction, and higher in the second and third quarters - Sales volumes are typically lower in Q1 and Q4 and higher in Q2 and Q3 due to seasonal weather patterns affecting construction activity[150](index=150&type=chunk) [Employees](index=36&type=section&id=Employees) As of April 28, 2024, Boise Cascade had approximately 7,310 employees, with 18% covered by collective bargaining agreements, and five agreements covering about 460 employees were set to expire on May 31, 2024 - As of April 28, 2024, the company had approximately **7,310 employees**, with **18%** unionized[152](index=152&type=chunk) - Five collective bargaining agreements covering approximately **460 employees** were set to expire on May 31, 2024, presenting a near-term negotiation risk[152](index=152&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As of March 31, 2024, the company reports no material changes in its exposure to market risks, including commodity prices, interest rates, and foreign currency exchange rates, from those disclosed in its 2023 Form 10-K - There have been no material changes in the company's exposure to market risk since the 2023 Form 10-K[157](index=157&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the first quarter - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective[159](index=159&type=chunk) - No changes occurred in internal control over financial reporting during Q1 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[160](index=160&type=chunk) [PART II—OTHER INFORMATION](index=38&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings but does not anticipate any current actions will have a material adverse effect on its financial position, results, or cash flows - The company does not believe it is party to any legal action that could reasonably be expected to have a material adverse effect on its financial position, results of operations, or cash flows[162](index=162&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The report refers to the risk factors detailed in the company's 2023 Form 10-K and other SEC filings, with no new or updated risk factors presented in this quarterly report - The report directs readers to review the risk factors listed in the company's 2023 Form 10-K[163](index=163&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, Boise Cascade repurchased 205,938 shares of its common stock for $27.0 million at an average price of $130.97 per share under its board-authorized program - During Q1 2024, the company repurchased **205,938 shares** under its authorized program at a cost of **$27.0 million**[164](index=164&type=chunk) Share Repurchases (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 2024 | — | — | 1,921,311 | | Feb 2024 | 85,711 | $131.12 | 1,835,600 | | Mar 2024 | 120,227 | $130.86 | 1,715,373 | | **Total** | **205,938** | **$130.97** | **1,715,373** | [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) The company disclosed that during the first quarter of 2024, none of its directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during Q1 2024[167](index=167&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) The report lists several exhibits filed with the Form 10-Q, including forms of stock unit agreements, CEO and CFO certifications pursuant to the Sarbanes-Oxley Act, and Inline XBRL data files - Exhibits filed include CEO/CFO certifications (**31.1, 31.2, 32.1, 32.2**) and various stock unit agreements (**10.1, 10.2, 10.3**)[168](index=168&type=chunk)

Boise Cascade Company Exhibit 99.1 1111 West Jefferson Street, Suite 300 Boise, ID 83702 News Release | --- | --- | |-----------------------------------------------------|---------------------------------------| | | | | | | | | | | Investor Relations Contact - Chris Forrey | Media Contact - Lisa Tschampl | | investor@bc.com | mediarelations@bc.com | For Immediate Release: May 6, 2024 Boise Cascade Company Reports First Quarter 2024 Results BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company, ...

Core Viewpoint - The Zacks Construction sector is expected to report improved results due to a recovering housing market and the Federal Reserve's decision to pause interest rate hikes, with new single-family construction projects offsetting the lack of non-residential infrastructure projects [1] Factors Shaping Quarterly Performance - The performance of the Zacks Construction sector in Q1 2024 will be influenced by distinct trends in residential and non-residential markets [2] - Rising mortgage rates, which have remained between 6.6% and 7% since the start of 2024, are hindering potential buyers in the housing industry [2] - Weather-related impacts and high labor costs may negatively affect overall performance, but limited existing home availability, increased repair and remodeling activities, and cost management efforts are likely to drive growth [2] Non-Residential Market Insights - The non-residential sector benefits from global trends in infrastructure modernization, energy transition, national security, and supply-chain investments [3] - Investments in telecommunications networks, particularly in 5G technologies, as well as environmental remediation and climate resilience, are expected to support performance [3] - Challenges such as weather-related issues, capital spending fluctuations, and commodity price volatility remain concerns [3] Q1 Expectations - Overall earnings for the Zacks Construction sector are projected to rise by 3.8% in Q1 2024, an increase from the 2.6% growth in Q4 2023 [4] - Revenue growth is expected to be 4.2%, showing a deceleration from the 5.1% growth in the previous quarter [4] Stock Picks - The Zacks methodology identifies five construction stocks likely to exceed earnings estimates this earnings season: United Rentals, KBR, Boise Cascade, Louisiana-Pacific, and Dream Finders Homes [3][5] - Stocks with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) combined with a positive Earnings ESP have a 70% chance of beating earnings estimates [5] Winning Stocks - United Rentals is expected to report Q1 2024 results on April 24, with an EPS estimate of $8.35, reflecting a 5% increase year-over-year [7] - KBR is set to report on April 30, with an EPS estimate of $0.70, indicating a 4.5% increase from the previous year [8] - Boise Cascade's EPS estimate is $2.29, showing a 5.8% decline year-over-year, but it benefits from a vertically integrated business model [9] - Louisiana-Pacific's EPS estimate is $1.13, representing a 232.4% increase from the prior year, supported by strategic investments and cost-reduction initiatives [10] - Dream Finders Homes has an EPS estimate of $0.70, indicating a 55.6% increase year-over-year, driven by strong product demand [10]

Core Viewpoint - Boise Cascade (BCC) has shown strong stock performance recently, returning +15.3% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.5% change, while the Zacks Building Products - Wood industry has declined by 0.7% [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Boise Cascade is $2.24 per share, reflecting a decrease of -7.8% year-over-year, but the Zacks Consensus Estimate has increased by +7.4% in the last 30 days [3] - For the current fiscal year, the consensus earnings estimate is $11.58, indicating a -4.5% change from the previous year, with a +2.1% increase in estimates over the last month [3] - The next fiscal year's consensus earnings estimate is $12.23, showing a +5.6% change year-over-year, with a +3.4% increase in estimates over the past month [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $1.56 billion, indicating a year-over-year increase of +1.2% [5] - For the current fiscal year, revenue estimates are $7.02 billion, reflecting a +2.6% change, while the next fiscal year's estimate is $7.26 billion, indicating a +3.5% change [5] Last Reported Results and Surprise History - Boise Cascade reported revenues of $1.64 billion in the last quarter, a +1% year-over-year change, with an EPS of $2.44 compared to $2.95 a year ago [6] - The reported revenues exceeded the Zacks Consensus Estimate of $1.59 billion by +3.69%, while the EPS fell short by -0.41% [6] - Over the last four quarters, Boise Cascade has surpassed consensus EPS estimates three times and revenue estimates three times [7] Valuation - Boise Cascade's valuation is assessed through various multiples, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to determine if the stock is fairly valued, overvalued, or undervalued [8] - The Zacks Value Style Score grades Boise Cascade as A, indicating it is trading at a discount compared to its peers [9]

Boise Cascade (BCC) closed the latest trading day at $151.38, indicating a -0.51% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq added 0.17%.Shares of the engineered wood products and plywood company witnessed a gain of 20.24% over the previous month, beating the performance of the Construction sector with its gain of 10.87% and the S&P 500's gain of 5.34%.The upcoming earnings release of Boise Cascade wi ...

In the latest trading session, Boise Cascade (BCC) closed at $127.87, marking a -1.11% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.3%.Prior to today's trading, shares of the engineered wood products and plywood company had lost 7.59% over the past month. This has lagged the Construction sector's gain of 9.88% and the S&P 500's gain of 4.42% in that time.The investment community will be pay ...