Boise Cascade Q3 Earnings Lag Estimates, Sales Beat, Both Dip Y/Y

Core Insights - Boise Cascade Company (BCC) reported disappointing third-quarter 2024 results, with earnings falling short of the Zacks Consensus Estimate and declining year over year [1][4] - Although quarterly sales slightly exceeded consensus expectations, they still represented a 7% year-over-year decline [4] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.33, missing the Zacks Consensus Estimate of $2.37 by 1.7%, compared to $3.58 in the same quarter last year [4] - Quarterly sales amounted to $1.714 billion, slightly above the consensus mark of $1.711 billion, but down 7% from the previous year [4] Segment Analysis - Wood Products Segment: Sales decreased by 12% year over year to $453.9 million, driven by lower plywood prices and reduced sales of engineered wood products (EWP) [5] - Adjusted EBITDA for this segment fell 37% to $77.4 million from $122.9 million a year ago [5] - Building Materials Distribution (BMD) Segment: Sales dropped 6% year over year to $1.57 billion, primarily due to a 6% decrease in sales prices, with sales volumes remaining flat [6] - Adjusted EBITDA for the BMD segment decreased 16% year over year to $87.7 million from $104.9 million [7] Cost and Expenses - In the Wood Products segment, costs and expenses as a percentage of sales increased to 88.1% from 80.7% year over year, attributed to rising materials and labor costs [6] - For the BMD segment, costs and expenses as a percentage of sales rose to 95.2% from 94.2%, influenced by higher selling and distribution expenses [7] Liquidity and Cash Flow - Total liquidity as of September 30, 2024, was $1.157 billion, down from $1.35 billion at the end of 2023, including $395.7 million of undrawn committed bank line availability [8] - Cash and cash equivalents decreased to $761.6 million from $949.6 million at the end of 2023 [8] - Net cash provided by operations for the nine months ended September 30, 2024, was $343.8 million, down from $521.1 million in the prior year [9] Share Repurchase - During the first nine months of 2024, the company repurchased 1,232,345 shares of its common stock for a total value of $158.5 million [10]