Boise Cascade (BCC) Q2 Earnings & Sales Top Estimates, Down Y/Y

Core Insights - Boise Cascade Company (BCC) reported second-quarter 2024 results with earnings and sales exceeding the Zacks Consensus Estimate, although both metrics declined year-over-year [1][2] - The company's performance was affected by weak demand due to high mortgage rates and economic uncertainties, alongside lower volumes and prices in the Wood Products segment [1][2] - Despite current demand uncertainties, the company is optimistic about the second half of the year, focusing on providing value through its manufacturing and distribution network [1] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.84, surpassing the Zacks Consensus Estimate of $2.65 by 7.2%, but down from $3.67 in the prior year [2] - Quarterly sales reached $1.80 billion, exceeding the consensus estimate of $1.73 billion by 4%, but reflecting a 1% decline year-over-year [2] - Adjusted EBITDA was $181.2 million, down 18% from the previous year's quarter [2] Segment Analysis - Wood Products Segment: Sales totaled $489.8 million, an 8% decrease from the prior year, driven by lower plywood volumes and reduced prices in engineered wood products (EWP) [3] - Adjusted EBITDA for this segment was $95 million, down 25% from $127 million a year ago, with costs as a percentage of sales increasing to 85.1% from 80.4% [3] - Building Materials Distribution (BMD) Segment: Sales increased 1% year-over-year to $1.66 billion, primarily due to a 2% rise in sales volume [4] - Adjusted EBITDA for the BMD segment fell 8% year-over-year to $97.1 million, with costs as a percentage of sales rising to 94.8% from 94.0% [4] Liquidity and Capital Management - Total liquidity as of June 30, 2024, was $1.32 billion, down from $1.35 billion at the end of 2023, including $395.7 million of undrawn committed bank line availability [5] - Cash and cash equivalents were $922.1 million, a decrease from $949.6 million at the end of 2023 [5] - Long-term debt slightly increased to $445.7 million from $445.3 million at the end of 2023 [5] - Net cash provided by operations was $169.2 million, down from $290.2 million in the year-ago period [5][6] Shareholder Actions - In the first half of 2024, the company repurchased 677,845 shares of its common stock for a total value of $88.9 million [6]