Core Viewpoint - Boise Cascade Company (BCC) reported mixed fourth-quarter 2024 results, with earnings missing estimates while sales exceeded expectations, reflecting a decline in both top and bottom lines year-over-year [1][5]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were $1.78, missing the Zacks Consensus Estimate of $1.82 by 2.2%, down from $2.44 in the same quarter last year [5]. - Quarterly sales reached $1.57 billion, surpassing the consensus mark of $1.55 billion by 1.2%, but decreased by 5% year-over-year [5]. - Adjusted EBITDA for the quarter was $128.7 million, a decline of 20% from the prior-year quarter [5]. Segment Analysis - **Wood Products**: Sales were $419.7 million, down 7% year-over-year due to lower engineered wood products and plywood sales prices. Adjusted EBITDA fell 39% to $56.6 million [6]. - **Building Materials Distribution (BMD)**: Sales decreased by 4% year-over-year to $1.44 billion, attributed to lower plywood sales prices and reduced I-joist sales volumes. Adjusted EBITDA increased by 5% to $84.5 million [7][8]. Yearly Overview - Full-year sales declined by 2% to $6.72 billion, with Wood Products sales down 5% to $1.83 billion and BMD sales remaining flat at $6.17 billion [9]. - Consolidated adjusted EBITDA for the year tumbled 16% to $632.8 million from $756.7 million [9]. - Full-year adjusted EPS was $9.57, a decline of 21% from $12.12 reported in 2023 [10]. Liquidity and Debt - As of December 31, 2024, total liquidity was $1.109 billion, down from $1.35 billion at the end of 2023, including $395.7 million of undrawn committed bank line availability [11]. - Cash and cash equivalents were $713.3 million, down from $949.6 million at the end of 2023 [11]. - Net long-term debt increased slightly to $446.2 million from $445.3 million reported at the end of 2023 [11]. Operational Cash Flow - Net cash provided by operations in 2024 was $438.3 million, down from $687.5 million in the previous year [12]. - The company repurchased approximately 1.5 million shares of common stock for a total value of $194.9 million during 2024 [12].

February 2025 Investor Presentation INTEGRITY SAFETY RESPECT EXCELLENCE Leading Building Materials Manufacturer and Distributor 347% Total Shareholder Return – Five years ending December 2024* Leading manufacturer of Engineered Wood Products (EWP) & Plywood $1.53 Billion invested in company via M&A/Capex and $1.28 Billion in shareholder returns since 2019 482 bps of improvement in EBITDA margin 2019 vs 2024 $6.7 Billion 2024 Revenue We serve a diversified array of customer segments from independent dealers ...

Financial Data and Key Metrics Changes - The company reported full-year net income of $376.4 million or $9.57 per diluted share, with fourth quarter sales of $1.6 billion down 5% from the previous year [7][9] - Fourth quarter net income was $68.9 million or $1.78 per share, compared to $97.5 million or $2.44 per share in the year-ago quarter [9][10] - The decrease in earnings per share in the year-ago quarter was negatively impacted by approximately $0.18 per share from accelerated depreciation and transaction expenses [10] Business Line Data and Key Metrics Changes - Wood product sales in the fourth quarter, including distribution segment sales, were $419.7 million, down 7% compared to the fourth quarter of 2023 [11] - The Wood Products segment EBITDA was $56.6 million, down from $92.7 million in the prior year quarter, primarily due to lower EWP and plywood sales prices [11] - BMD sales in the quarter were $1.4 billion, down 4% from the fourth quarter of 2023, but reported segment EBITDA of $84.5 million, up from $80.6 million in the prior year quarter [12] Market Data and Key Metrics Changes - Total U.S. housing starts and single-family housing starts decreased 6% and 4% respectively compared to the prior year quarter [8] - Fourth quarter plywood sales volume was 371 million feet, with an average net sales price down 7% year-over-year but up 5% sequentially [15][16] - The company expects total U.S. housing starts to be around 1.35 million for 2025, essentially flat with 2024 levels [26] Company Strategy and Development Direction - The company is focused on capital investments to support its EWP growth strategy and has made significant progress in its distribution business through organic and acquisition initiatives [7][8] - Capital expenditures for 2024 were $230 million, with expectations for 2025 to be between $220 million and $240 million, including investments in EWP production capabilities [22] - The company aims for a balanced approach to capital allocation, including ongoing investments, organic growth projects, and returns to shareholders [23] Management's Comments on Operating Environment and Future Outlook - Management noted that affordability remains a key concern for builders, impacting home prices and the cost of money [62] - There is optimism about the medium to long-term housing fundamentals, despite short-term uncertainties related to the macro economy and policy decisions [27] - The company anticipates modest growth in home improvement spending in 2025 due to the aging U.S. housing stock and elevated homeowner equity [27] Other Important Information - The company paid $220 million in regular and special dividends in 2024, including a $5 per share special dividend [23] - The board approved a $0.21 per share quarterly dividend on common stock, with payment scheduled for March 9 [24] - The company repurchased approximately 1.75 million shares for about $225 million, with 1.6 million shares remaining available for repurchase [24] Q&A Session Summary Question: Impact of tariffs on EWP supply - Management acknowledged the uncertainty surrounding tariffs and their potential impact on supply and demand dynamics, particularly regarding affordability challenges [34][36] Question: EWP pricing and market equilibrium - Management indicated that while there is competition for share, the market is close to finding equilibrium, but modest price erosion is expected if demand remains stable [46][48] Question: Operating environment and builder sentiment - Builders are managing their operations cautiously due to affordability concerns, but there remains optimism about the long-term outlook for housing [62][66] Question: BMD margin performance - Management attributed the strong BMD margin in Q4 to warehouse sales and favorable commodity pricing, but expects erosion in Q1 due to declining sales pace [78][81] Question: Growth in LVL sales - The company reported an 11% increase in LVL sales volume, attributed to effective sales strategies and strong demand for beams and headers [82][85] Question: M&A opportunities - Management expressed interest in M&A opportunities, particularly on the distribution side, as seller expectations moderate [111][112]

Core Viewpoint - Boise Cascade reported quarterly earnings of $1.78 per share, missing the Zacks Consensus Estimate of $1.82 per share, and down from $2.44 per share a year ago, indicating a -2.20% earnings surprise [1] Financial Performance - The company posted revenues of $1.57 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.24%, but down from $1.64 billion year-over-year [2] - Over the last four quarters, Boise Cascade has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Boise Cascade shares have lost about 0.5% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The current Zacks Rank for Boise Cascade is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $2.21 on revenues of $1.68 billion, and for the current fiscal year, it is $10.15 on revenues of $6.92 billion [7] - The estimate revisions trend for Boise Cascade is mixed, which could change following the recent earnings report [6] Industry Context - The Building Products - Wood industry, to which Boise Cascade belongs, is currently in the top 10% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - In 2024, the Wood Products segment generated segment sales of $6,166.5 million, a slight decrease from $6,178.7 million in 2023[58]. - Segment income for the Wood Products segment in 2024 was $303.4 million, down from $335.8 million in 2023, reflecting a decline of approximately 9.5%[58]. - The segment EBITDA for Wood Products in 2024 was $352.9 million, compared to $368.2 million in 2023, indicating a decrease of about 4.3%[58]. - Total sales for 2024 were $6,724,294, a decrease of 1.67% from $6,838,245 in 2023 and a significant decline of 19.8% from $8,387,307 in 2022[307]. - Net income for 2024 was $376,354, down 22.2% from $483,656 in 2023 and a decrease of 56.1% from $857,658 in 2022[307]. - Basic net income per share for 2024 was $9.63, compared to $12.20 in 2023, reflecting a decline of 20.5%[307]. - Operating income for 2024 was $490,038, a decrease of 21.5% from $624,386 in 2023[307]. - Comprehensive income for 2024 was $376,411 thousand, down from $483,659 thousand in 2023, reflecting a decline of about 22.2%[309]. - Income before income taxes for the year ended December 31, 2024, was $501.8 million, a decrease of 22.1% from $645.0 million in 2023[372]. Costs and Expenses - Total costs and expenses for 2024 were $6,234,256, slightly up from $6,213,859 in 2023[307]. - Interest income decreased to $39,139 in 2024 from $48,106 in 2023, a decline of 18.8%[307]. - The company reported a foreign currency exchange loss of $1,164 in 2024, compared to a gain of $7 in 2023[307]. - The company’s Building Materials Distribution segment reported shipping and handling costs of $253.8 million for the year ended December 31, 2024, up from $238.8 million in 2023, a 6% increase[367]. Assets and Liabilities - Total current assets decreased to $1,886,068 thousand in 2024 from $2,056,814 thousand in 2023, a reduction of about 8.3%[312]. - Cash and cash equivalents at the end of 2024 were $713,260 thousand, down from $949,574 thousand in 2023, indicating a decrease of approximately 25%[318]. - Total assets decreased to $3,369,383 thousand in 2024 from $3,458,646 thousand in 2023, a decline of approximately 2.6%[312]. - Long-term debt remained relatively stable at $446,167 thousand in 2024 compared to $445,280 thousand in 2023[315]. - The company had $91.4 million in rebates payable to customers as of December 31, 2024, compared to $87.9 million in 2023, indicating a 2% increase[366]. Investments and Acquisitions - In 2024, the company acquired assets of door and millwork facilities in Boise, Idaho, and Lakeland, Florida, to expand its operational capabilities[59]. - The company acquired BROSCO for $166.2 million in October 2023, with acquisition-related costs of $5.1 million recorded in 2023[383]. Stock and Dividends - The company declared dividends of $5.82 per common share in 2024, down from $8.70 in 2023[307]. - Common stock dividends paid in 2024 were $228,507 thousand, down from $349,028 thousand in 2023, a reduction of approximately 34.5%[321]. - The total number of shares of common stock outstanding as of December 31, 2024, was 38,182,989, compared to 39,539,825 shares as of December 31, 2023, indicating a decrease of approximately 3.4%[428]. - In 2024, the company repurchased 1,513,095 shares at a cost of $194.9 million, averaging $128.81 per share[436]. Employee and Human Capital Management - The company emphasizes human capital management, focusing on safety and talent development for its 7,560 employees to support strategic objectives[71]. - The company had approximately 7,530 employees as of December 31, 2024, with 18% working under collective bargaining agreements[354]. Environmental and Regulatory - The company has implemented technology tools to enhance tracking and reporting of Scope 1 and Scope 2 greenhouse gas emissions data[74]. - Seasonal factors continue to impact quarterly sales volumes and expenses, which is common in the building products industry[77]. Miscellaneous - The company operates through two segments: Wood Products and Building Materials Distribution, focusing on engineered wood products and wholesale distribution[324]. - The company completed its annual goodwill impairment assessment for 2024 and determined no impairment was necessary, indicating stability in the fair value of reporting units[349].

Financial Performance - Fourth quarter net income was $68.9 million, or $1.78 per share, on sales of $1.6 billion, representing a 29% decrease in net income compared to Q4 2023[1][3] - For the full year 2024, net income totaled $376.4 million, or $9.57 per share, on sales of $6.7 billion, a 22% decrease in net income compared to 2023[1][3] - Total sales for the three months ended December 31, 2024, were $1,567,480, a decrease of 4.7% compared to $1,644,256 for the same period in 2023[26] - Net income for the three months ended December 31, 2024, was $68,900, down 29.4% from $97,535 in the same period last year[26] - Basic net income per common share for the three months ended December 31, 2024, was $1.79, a decrease from $2.46 in the same period last year[26] - Net income for the year ended December 31, 2024, was $376,354, down 22.2% from $483,656 in 2023[40] Segment Performance - Wood Products sales decreased by $30.0 million, or 7%, to $419.7 million in Q4 2024, driven by lower sales prices for engineered wood products (EWP) and plywood[5][6] - The Wood Products Segment reported sales of $419,670 for the three months ended December 31, 2024, a decline of 6.7% from $449,676 in the previous year[28] - Segment income for the Wood Products Segment was $33,583 for the three months ended December 31, 2024, down 47.6% from $64,128 in the same period last year[28] - The Building Materials Distribution Segment achieved sales of $1,492,614 for the three months ended December 31, 2023, compared to $1,438,785 in the previous quarter, reflecting a growth of 3.7%[29] - Building Materials Distribution segment income for Q4 2024 was $70,701,000, a slight increase of 0.3% from $70,497,000 in Q4 2023[44] Cash and Liquidity - The company ended Q4 2024 with $713.3 million in cash and cash equivalents and $395.7 million in undrawn committed bank lines, totaling $1,109.0 million in available liquidity[11] - The company reported a decrease in cash and cash equivalents to $713,260 as of December 31, 2024, down 24.9% from $949,574 in 2023[40] Dividends and Share Repurchases - The company paid $228.8 million in dividends for the year ended December 31, 2024, including a special dividend of $5.00 per share[13] - For the year ended December 31, 2024, the company repurchased approximately 1.5 million shares at a cost of $194.9 million, with an additional 250,000 shares repurchased in January 2025[14] Future Outlook - Current industry forecasts for U.S. housing starts are approximately 1.35 million in 2025, with single-family starts expected to remain around 1.0 million[15] - The company anticipates continued challenges in the market due to economic conditions and commodity input costs, impacting future performance[23] Costs and Expenses - Total costs and expenses for the three months ended December 31, 2024, were $1,474,761, a decrease from $1,523,080 in the same period last year[26] - Total segment income for the year ended December 31, 2024, was $534,839, a decline of 20.5% compared to $672,940 in 2023[32] - Cash provided by operations for the year ended December 31, 2024, was $438,320, a decrease of 36.3% from $687,458 in 2023[40] Assets and Liabilities - Total assets as of December 31, 2024, were $3,369,383, a decrease of 2.6% from $3,458,646 in 2023[35] - Long-term debt, net, as of December 31, 2024, was $446,167, slightly up from $445,280 in 2023[37] - Total current liabilities decreased to $564,016 as of December 31, 2024, from $594,116 in 2023, reflecting a reduction of 5.1%[37] EBITDA Analysis - Adjusted EBITDA for the year ended December 31, 2024, was $632,838, down 16.4% from $756,697 in 2023[43] - Total Company Adjusted EBITDA for the year ended December 31, 2024, was $632,838,000, a decrease of 16.4% compared to $756,697,000 in 2023[44] - Wood Products segment EBITDA for Q4 2024 was $56,581,000, down 38.9% from $92,693,000 in Q4 2023[44] - Building Materials Distribution segment EBITDA for Q4 2024 was $84,459,000, an increase of 4.7% from $80,613,000 in Q4 2023[44] - Total Company EBITDA for the year ended December 31, 2024, was $(46,776,000), compared to $(49,097,000) in 2023[44]

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Boise Cascade Company (BCC) has completed the purchase of the Parksite door shop in Lakeland, FL, thereby adding the 15th millwork location to its portfolio.BCC stock lost 2% during Tuesday’s trading hours, post the announcement of the news.Boise Cascade’s New Florida LocationThe purchase agreement between Boise Cascade and Parksite involves only the Florida door shop location among the 22 locations. This strategic transaction will expand BCC’s millwork business in the Southern region, allowing it to expand ...