分组1 - Boise Cascade reported quarterly earnings of $1.06 per share, missing the Zacks Consensus Estimate of $1.36 per share, and down from $2.61 per share a year ago, representing an earnings surprise of -22.06% [1] - The company posted revenues of $1.54 billion for the quarter, surpassing the Zacks Consensus Estimate by 5.67%, but down from $1.65 billion year-over-year [2] - Over the last four quarters, Boise Cascade has surpassed consensus revenue estimates four times, but has only exceeded EPS estimates once [2] 分组2 - The stock has underperformed, losing about 19.1% since the beginning of the year, compared to the S&P 500's decline of -3.3% [3] - The current consensus EPS estimate for the coming quarter is $2.29 on revenues of $1.81 billion, and for the current fiscal year, it is $7.97 on revenues of $6.54 billion [7] - The Zacks Industry Rank for Building Products - Wood is currently in the bottom 24% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

PART I—FINANCIAL INFORMATION This section presents the company's unaudited financial statements, management's analysis, market risks, and internal controls for the quarter [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited consolidated financial statements including operations, balance sheets, cash flows, and notes for Q1 2025 [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's sales, income from operations, net income, and earnings per share for the quarter Financial Performance (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :------------------------------------------------ | :--------------- | :--------------- | :----------- | | Sales | $1,536,494 | $1,645,420 | -6.6% | | Income from operations | $54,519 | $132,982 | -59.0% | | Net income | $40,348 | $104,124 | -61.2% | | Basic EPS | $1.06 | $2.63 | -59.7% | | Diluted EPS | $1.06 | $2.61 | -59.7% | | Dividends declared per common share | $0.21 | $0.20 | +5.0% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents net income and other comprehensive income components, leading to total comprehensive income for the period Comprehensive Income (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :----------------------- | :--------------- | :--------------- | :----------- | | Net income | $40,348 | $104,124 | -61.2% | | Other comprehensive income, net of tax | $6 | $8 | -25.0% | | Comprehensive income | $40,354 | $104,132 | -61.2% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Outlines the company's financial position, including assets, liabilities, and stockholders' equity at period-end Balance Sheet Highlights (as of) | Metric | March 31, 2025 (thousands) | December 31, 2024 (thousands) | Change | | :-------------------------------- | :------------------------- | :-------------------------- | :------- | | Total assets | $3,481,644 | $3,369,383 | +3.3% | | Total current assets | $1,979,524 | $1,886,068 | +4.9% | | Cash and cash equivalents | $561,781 | $713,260 | -21.3% | | Inventories | $921,434 | $803,296 | +14.7% | | Total liabilities | $1,354,567 | $1,218,109 | +11.2% | | Total stockholders' equity | $2,127,077 | $2,151,274 | -1.1% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities, and the net change in cash for the quarter Cash Flow Summary (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :------------------------------------ | :--------------- | :--------------- | :----------- | | Net cash provided by (used for) operations | $(28,476) | $27,462 | -203.7% | | Net cash used for investment | $(52,225) | $(37,158) | +40.6% | | Net cash used for financing | $(70,778) | $(49,631) | +42.6% | | Net decrease in cash and cash equivalents | $(151,479) | $(59,327) | +155.3% | | Balance at end of the period | $561,781 | $890,247 | -36.9% | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Details changes in stockholders' equity, including net income, treasury stock, and dividends, for the reporting period - Stockholders' equity at March 31, 2025, was **$2,127,077 thousand**, reflecting net income of **$40,348 thousand**, offset by treasury stock purchases of **$(53,884) thousand** and common stock dividends of **$(8,060) thousand**[23](index=23&type=chunk) - For the three months ended March 31, 2024, stockholders' equity was **$2,257,202 thousand**, with net income of **$104,124 thousand**, treasury stock purchases of **$(26,971) thousand**, and common stock dividends of **$(8,677) thousand**[26](index=26&type=chunk) [Condensed Notes to Unaudited Quarterly Consolidated Financial Statements](index=11&type=section&id=Condensed%20Notes%20to%20Unaudited%20Quarterly%20Consolidated%20Financial%20Statements) Provides detailed disclosures on accounting policies, segment information, and other financial notes supporting the statements [1. Nature of Operations and Consolidation](index=11&type=section&id=1.%20Nature%20of%20Operations%20and%20Consolidation) Describes the company's business segments and the basis of presentation for the unaudited financial statements - Boise Cascade operates two reportable segments: Wood Products (manufactures engineered wood products and plywood) and Building Materials Distribution (wholesale distributor of building materials)[29](index=29&type=chunk) - The accompanying quarterly consolidated financial statements are unaudited but include all adjustments necessary for fair presentation, with certain information condensed or omitted compared to annual statements[30](index=30&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines key accounting principles, estimates, revenue recognition, inventory valuation, and new accounting standards - Management makes estimates and assumptions for financial statements, including valuation of accounts receivable, inventories, goodwill, intangible assets, and legal contingencies, which are evaluated on an ongoing basis[32](index=32&type=chunk) - Revenue is recognized when control of promised goods or services is transferred to customers. Shipping and handling fees charged to customers are included in 'Sales'[33](index=33&type=chunk)[34](index=34&type=chunk) - Customer rebates are estimated and recorded as a decrease in 'Sales', totaling **$66.5 million** at March 31, 2025. Vendor rebates reduce 'Materials, labor, and other operating expenses'[35](index=35&type=chunk)[36](index=36&type=chunk) Inventories (as of) | Category | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :-------------------------- | :------------------------- | :-------------------------- | | Finished goods and work in process | $812,218 | $695,901 | | Logs | $49,726 | $50,152 | | Other raw materials and supplies | $59,490 | $57,243 | | **Total Inventories** | **$921,434** | **$803,296** | Property and Equipment, Net (as of) | Category | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :------------------------------------------ | :------------------------- | :-------------------------- | | Land | $94,591 | $94,591 | | Buildings | $364,038 | $360,518 | | Improvements | $88,674 | $87,512 | | Mobile equipment, information technology, and office furniture | $302,529 | $296,604 | | Machinery and equipment | $1,093,056 | $1,089,117 | | Construction in progress | $179,138 | $147,668 | | Less: accumulated depreciation | $(1,046,560) | $(1,028,927) | | **Total Property and Equipment, Net** | **$1,075,466** | **$1,047,083** | - The company uses an interest rate swap to mitigate variable interest rate exposure, fixing the rate on **$50.0 million** of variable rate debt at an annual fixed rate of **0.41%**, expiring in June 2025[47](index=47&type=chunk) - Receivables from two customers accounted for approximately **17%** and **10%** of total receivables at March 31, 2025, indicating a concentration of credit risk[48](index=48&type=chunk) - The company is evaluating the impact of new accounting standards ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures) on its financial statements[49](index=49&type=chunk)[50](index=50&type=chunk) [3. Income Taxes](index=15&type=section&id=3.%20Income%20Taxes) Details the income tax provision and effective tax rates for the reporting period Income Tax Provision (Three Months Ended March 31) | Metric | 2025 (millions) | 2024 (millions) | Effective Rate | | :-------------------- | :-------------- | :-------------- | :------------- | | Income tax provision | $13.8 | $32.8 | 25.5% (2025), 24.0% (2024) | - Cash paid for taxes, net of refunds, decreased to **$1.5 million** in Q1 2025 from **$1.9 million** in Q1 2024[53](index=53&type=chunk) [4. Net Income Per Common Share](index=15&type=section&id=4.%20Net%20Income%20Per%20Common%20Share) Presents the calculation of basic and diluted earnings per common share for the quarter Net Income Per Common Share (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (YoY) | | :------------------------------------------------ | :--- | :--- | :----------- | | Net income | $40,348 | $104,124 | -61.2% | | Weighted average common shares outstanding (basic) | 38,017 | 39,608 | -4.0% | | Weighted average common shares (diluted) | 38,215 | 39,956 | -4.4% | | Basic EPS | $1.06 | $2.63 | -59.7% | | Diluted EPS | $1.06 | $2.61 | -59.7% | [5. Goodwill and Intangible Assets](index=16&type=section&id=5.%20Goodwill%20and%20Intangible%20Assets) Reports the carrying values and changes in goodwill and other intangible assets - Goodwill remained constant at **$171.9 million** for both March 31, 2025, and December 31, 2024, allocated between Building Materials Distribution (**$45.8 million**) and Wood Products (**$126.2 million**)[57](index=57&type=chunk) - Net intangible assets decreased from **$173.0 million** at December 31, 2024, to **$167.9 million** at March 31, 2025, with amortization expense of **$5.1 million** in Q1 2025[57](index=57&type=chunk)[58](index=58&type=chunk) [6. Debt](index=16&type=section&id=6.%20Debt) Details the company's long-term debt structure, recent financing activities, and interest payments Long-term Debt (as of) | Category | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :------------------------------------ | :------------------------- | :-------------------------- | | Asset-based credit facility term loan due 2027 | $50,000 | $50,000 | | 4.875% senior notes due 2030 | $400,000 | $400,000 | | Deferred financing costs | $(3,611) | $(3,833) | | **Total Long-term debt** | **$446,389** | **$446,167** | - On April 14, 2025, the company entered into a new **$450.0 million** revolving facility, maturing April 14, 2030, and used **$50.0 million** from it to repay the ABL Term Loan, terminating the previous Amended Agreement[70](index=70&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Cash payments for interest were **$9.2 million** for the three months ended March 31, 2025, a decrease from **$10.0 million** in the prior year[79](index=79&type=chunk) [7. Leases](index=20&type=section&id=7.%20Leases) Summarizes total lease costs, cash flows from leases, and future minimum lease payment obligations Total Lease Cost (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :---------------- | :--------------- | :--------------- | :----------- | | Total lease cost | $7,651 | $7,627 | +0.3% | - Operating cash flows from operating leases were **$3.365 million** and from finance leases were **$0.502 million** for the three months ended March 31, 2025[81](index=81&type=chunk) - As of March 31, 2025, total future minimum lease payments are **$63.5 million** for operating leases and **$43.8 million** for finance leases[82](index=82&type=chunk) [8. Stock-Based Compensation](index=21&type=section&id=8.%20Stock-Based%20Compensation) Reports stock-based compensation expense, unit grants, and unrecognized compensation expense Stock-Based Compensation Expense (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :---------------- | :--------------- | :--------------- | :----------- | | PSUs | $1,832 | $2,277 | -19.6% | | RSUs | $1,925 | $1,828 | +5.3% | | **Total** | **$3,757** | **$4,105** | **-8.4%** | - During Q1 2025, the company granted **83,616** Performance Stock Units (PSUs) and **98,327** Restricted Stock Units (RSUs)[84](index=84&type=chunk)[86](index=86&type=chunk) - Total unrecognized compensation expense related to nonvested share-based compensation arrangements was **$30.9 million** as of March 31, 2025, expected to be recognized over a weighted-average period of **2.2 years**[87](index=87&type=chunk) [9. Stockholders' Equity](index=23&type=section&id=9.%20Stockholders%27%20Equity) Details dividend declarations and common stock repurchase activities during the period - On May 1, 2025, the board declared a quarterly dividend of **$0.21** per share, payable on June 18, 2025[90](index=90&type=chunk) Stock Repurchases (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Shares repurchased | 482,700 | 205,938 | +134.4% | | Cost of repurchases (millions) | $53.9 | $27.0 | +99.6% | | Average price per share | $111.63 | $130.97 | -14.8% | - As of March 31, 2025, **1,325,516 shares** of common stock remained authorized for repurchase under the program[93](index=93&type=chunk) [10. Transactions With Related Party](index=23&type=section&id=10.%20Transactions%20With%20Related%20Party) Reports sales and purchases with a related party, Louisiana Timber Procurement Company, L.L.C - Related-party sales to Louisiana Timber Procurement Company, L.L.C. (LTP) from the Wood Products segment decreased to **$1.6 million** in Q1 2025 from **$2.6 million** in Q1 2024[96](index=96&type=chunk) - Related-party wood fiber purchases from LTP decreased to **$14.8 million** in Q1 2025 from **$19.8 million** in Q1 2024[97](index=97&type=chunk) [11. Segment Information](index=25&type=section&id=11.%20Segment%20Information) Provides financial data broken down by Wood Products and Building Materials Distribution segments Segment Sales to External Customers (Three Months Ended March 31) | Segment | 2025 (millions) | 2024 (millions) | Change (YoY) | | :-------------------------- | :-------------- | :-------------- | :----------- | | Wood Products | $129.4 | $140.4 | -7.8% | | Building Materials Distribution | $1,407.1 | $1,505.0 | -6.6% | | **Total** | **$1,536.5** | **$1,645.4** | **-6.6%** | Segment Income from Operations (Three Months Ended March 31) | Segment | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :-------------------------- | :--------------- | :--------------- | :----------- | | Wood Products | $17,709 | $71,238 | -75.1% | | Building Materials Distribution | $48,417 | $72,463 | -33.2% | | **Total Income from Operations** | **$54,519** | **$132,982** | **-59.0%** | Capital Expenditures (Three Months Ended March 31) | Segment | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :-------------------------- | :--------------- | :--------------- | :----------- | | Wood Products | $30,689 | $19,643 | +56.2% | | Building Materials Distribution | $22,431 | $14,672 | +52.9% | | Corporate | $85 | $15 | +466.7% | | **Total Capital Expenditures** | **$53,205** | **$34,330** | **+55.0%** | [12. Commitments, Legal Proceedings and Contingencies, and Guarantees](index=27&type=section&id=12.%20Commitments%2C%20Legal%20Proceedings%20and%20Contingencies%2C%20and%20Guarantees) Addresses material changes in commitments, legal actions, and guarantees since the last annual report - There have been no material changes to the company's long-term log supply agreements, purchase obligations, or other commitments since the 2024 Form 10-K[105](index=105&type=chunk) - The company does not believe any current legal action could reasonably be expected to have a material adverse effect on its financial position, results of operations, or cash flows[106](index=106&type=chunk) - No material changes to the company's guarantees have occurred since the 2024 Form 10-K[108](index=108&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=29&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, condition, and operational results for Q1 2025, highlighting income decline and liquidity [Understanding Our Financial Information](index=29&type=section&id=Understanding%20Our%20Financial%20Information) Introduces the company's business model and the forward-looking nature of the financial discussion - Boise Cascade is an integrated wood products manufacturer and building materials distributor, operating through Wood Products and Building Materials Distribution segments[110](index=110&type=chunk) - The discussion includes forward-looking statements based on management's estimates and assumptions, which are inherently uncertain and subject to numerous risks[109](index=109&type=chunk) [Executive Overview](index=30&type=section&id=Executive%20Overview) Summarizes key financial results, including income from operations, segment performance, and liquidity position - Income from operations decreased significantly to **$54.5 million** in Q1 2025 from **$133.0 million** in Q1 2024, driven by lower sales prices and volumes in both Wood Products and BMD segments[112](index=112&type=chunk) - The Wood Products segment's income decreased by **$53.5 million** due to lower EWP and plywood sales prices, higher per-unit conversion costs from modernization downtime, and lower EWP sales volumes[112](index=112&type=chunk) - The BMD segment's income decreased by **$24.0 million**, primarily due to a **$20.4 million** gross margin decrease from lower sales volumes and reduced margins on commodity and EWP products[112](index=112&type=chunk) - The company ended Q1 2025 with **$957.5 million** in total available liquidity (**$561.8 million** cash and **$395.7 million** undrawn bank line), despite using **$151.5 million** cash for working capital, capital spending, treasury stock purchases, and dividends[113](index=113&type=chunk) - 2025 end market demand expectations are uncertain, with housing starts forecasts ranging from flat to mid-single digit year-over-year declines, influenced by macroeconomic factors like mortgage rates and home affordability[114](index=114&type=chunk) [Factors That Affect Our Operating Results and Trends](index=30&type=section&id=Factors%20That%20Affect%20Our%20Operating%20Results%20and%20Trends) Identifies key external and internal factors influencing the company's operational performance and financial trends - Operating results are influenced by commodity product price movements, industry competition, demand declines, disruptions to information systems, and major equipment failures at manufacturing facilities[116](index=116&type=chunk) - Other influencing factors include labor disruptions or shortages, dependence on third-party suppliers, cost and availability of raw materials, ability to execute growth strategies, and compliance with government regulations[117](index=117&type=chunk) [Our Operating Results](index=32&type=section&id=Our%20Operating%20Results) Analyzes sales, expenses, and income performance across segments, detailing year-over-year changes and drivers Operating Results (Three Months Ended March 31) | Metric | 2025 (millions) | 2024 (millions) | Change (YoY) | | :------------------------------------------------ | :-------------- | :-------------- | :----------- | | Sales | $1,536.5 | $1,645.4 | -6.6% | | Materials, labor, and other operating expenses | $1,276.2 | $1,307.4 | -2.4% | | Income from operations | $54.5 | $133.0 | -59.0% | | Income before income taxes | $54.2 | $137.0 | -60.5% | | Net income | $40.3 | $104.1 | -61.2% | - Total U.S. housing starts decreased **2%** in Q1 2025 compared to Q1 2024, with single-family housing starts down **6%**[120](index=120&type=chunk) - Wood Products sales decreased **$53.1 million (11%)** due to lower sales prices (**9%** for LVL and I-joists) and volumes (**3%** for LVL and I-joists, **2%** for plywood)[121](index=121&type=chunk) - Building Materials Distribution sales decreased **$97.9 million (7%)** due to overall sales volume and price decreases of **5%** and **2%**, respectively, impacting commodity, general line, and EWP products[122](index=122&type=chunk) - Wood Products' materials, labor, and other operating expenses (MLO) rate increased by **1,100 basis points**, primarily due to lower EWP and plywood sales prices and decreased leveraging of manufacturing costs[123](index=123&type=chunk) - BMD's MLO rate increased **40 basis points**, driven by lower margin percentages on commodity and EWP products[123](index=123&type=chunk) - Segment income for Wood Products decreased by **$53.5 million** to **$17.7 million**, while Building Materials Distribution segment income decreased by **$24.0 million** to **$48.4 million**[128](index=128&type=chunk)[129](index=129&type=chunk) - Interest income decreased **$5.1 million** to **$5.5 million** due to lower average balances of cash equivalents and lower interest rates[131](index=131&type=chunk) - The income tax provision decreased to **$13.8 million** in Q1 2025 from **$32.8 million** in Q1 2024, with effective rates of **25.5%** and **24.0%** respectively, primarily due to state taxes[133](index=133&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash position, available liquidity, cash flow activities, and planned capital expenditures - The company maintained strong liquidity with **$957.5 million** available at March 31, 2025, comprising **$561.8 million** in cash and cash equivalents and **$395.7 million** in undrawn committed bank line availability[134](index=134&type=chunk) - Cash and cash equivalents decreased by **$151.5 million** in Q1 2025, used to fund seasonal working capital increases, capital spending, treasury stock purchases, and dividends[134](index=134&type=chunk) - Operating activities used **$28.5 million** of cash in Q1 2025, a **$55.9 million** decrease compared to cash generated in Q1 2024, primarily due to a decrease in income from operations[139](index=139&type=chunk) - Working capital increased by **$123.7 million** in Q1 2025, mainly driven by higher receivables and inventories in preparation for the spring building season[139](index=139&type=chunk)[140](index=140&type=chunk) - Capital expenditures for property and equipment increased to **$53.2 million** in Q1 2025 from **$34.3 million** in Q1 2024[141](index=141&type=chunk) - Expected capital expenditures for 2025 are **$220 million** to **$240 million**, including multi-year investments at the Thorsby EWP mill, Oakdale veneer and plywood mills, and greenfield distribution centers[142](index=142&type=chunk) - Financing activities used **$70.8 million** of cash in Q1 2025, including **$53.9 million** for common stock repurchases and **$10.5 million** for dividend payments[144](index=144&type=chunk) - Post-quarter-end, on April 14, 2025, the company entered into a new **$450.0 million** revolving facility, using **$50.0 million** to repay the ABL Term Loan and terminating the previous credit agreement[136](index=136&type=chunk) [Guarantees](index=37&type=section&id=Guarantees) Confirms no material changes to the company's guarantees since the last annual report - There have been no material changes to the company's guarantees as disclosed in the 2024 Form 10-K[148](index=148&type=chunk) [Seasonal Influences](index=37&type=section&id=Seasonal%20Influences) Explains how seasonal weather patterns impact sales volumes, working capital, and operating costs - The company experiences lower sales volumes in the first and fourth quarters due to poor weather impacting construction, with higher sales volumes typically in the second and third quarters[149](index=149&type=chunk) - Working capital is typically higher in the first and second quarters in preparation for the building season, and cold weather increases energy consumption costs at manufacturing facilities[149](index=149&type=chunk) [Employees](index=38&type=section&id=Employees) Provides employee count and details on collective bargaining agreements and their potential impact - As of April 27, 2025, the company had approximately **7,670 employees**, with about **17%** working under collective bargaining agreements[150](index=150&type=chunk) - Two collective bargaining agreements covering approximately **750 employees** at the Oakdale and Florien plywood plants are set to expire on July 15, 2025, posing potential risks of labor disruptions or increased costs[150](index=150&type=chunk) [Disclosures of Financial Market Risks](index=38&type=section&id=Disclosures%20of%20Financial%20Market%20Risks) States no material changes to the company's exposure to financial market risks since the 2024 Form 10-K - There have been no material changes to the company's exposure to financial market risks, including commodity prices, interest rates, and foreign currency exchange rates, since the 2024 Form 10-K[151](index=151&type=chunk) [Environmental](index=38&type=section&id=Environmental) Confirms no material changes to environmental issues previously disclosed in the 2024 Form 10-K - There have been no material changes to environmental issues disclosed in the 2024 Form 10-K[152](index=152&type=chunk) [Critical Accounting Estimates](index=38&type=section&id=Critical%20Accounting%20Estimates) Reports no material changes to critical accounting estimates from those in the 2024 Form 10-K - There have been no material changes to the company's critical accounting estimates from those disclosed in the 2024 Form 10-K[153](index=153&type=chunk) [New and Recently Adopted Accounting Standards](index=38&type=section&id=New%20and%20Recently%20Adopted%20Accounting%20Standards) Refers to Note 2 for information on new and recently adopted accounting standards - For information related to new and recently adopted accounting standards, refer to Note 2, Summary of Significant Accounting Policies, in Item 1 of this Form 10-Q[154](index=154&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=38&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in the company's exposure to market risk have occurred since the 2024 Form 10-K - No material changes in the company's exposure to market risk have occurred since the 2024 Form 10-K[155](index=155&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=39&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Confirms the effectiveness of disclosure controls and reports no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=39&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Confirms the effectiveness of the company's disclosure controls and procedures as of March 31, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, ensuring timely and accurate reporting of required information[156](index=156&type=chunk) [Changes in Internal Control Over Financial Reporting](index=39&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports no material changes in internal control over financial reporting during the first quarter of 2025 - There were no changes in internal control over financial reporting during the three months ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[157](index=157&type=chunk) PART II—OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, and other miscellaneous disclosures [ITEM 1. LEGAL PROCEEDINGS](index=40&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in routine legal proceedings but does not anticipate any material adverse effects on its financial position, results of operations, or cash flows - The company does not believe any current legal action could reasonably be expected to have a material adverse effect on its financial position, results of operations, or cash flows[159](index=159&type=chunk) - A disclosure threshold of **$1 million** or more is used for proceedings arising under federal, state, or local environmental provisions[160](index=160&type=chunk) [ITEM 1A. RISK FACTORS](index=40&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section advises readers that the report contains forward-looking statements and directs them to review the comprehensive risk factors detailed in the company's 2024 Form 10-K - The report contains forward-looking statements, and readers should review the risk factors listed in 'Item 1A. Risk Factors' in the 2024 Form 10-K for potential risks and uncertainties[161](index=161&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=40&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 482,700 shares of common stock for $53.9 million during Q1 2025 under its authorized repurchase program, with 1,325,516 shares remaining for future repurchases Share Repurchases (Q1 2025) | Period | Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | The Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | | :--------------------------------- | :--------------- | :--------------------------- | :----------------------------------------------------------------------- | :-------------------------------------------------------------------------------- | | January 1, 2025 - January 31, 2025 | 250,000 | $120.51 | 250,000 | 1,558,216 | | February 1, 2025 - February 28, 2025 | 80,000 | $105.27 | 80,000 | 1,478,216 | | March 1, 2025 - March 31, 2025 | 152,700 | $100.43 | 152,700 | 1,325,516 | | **Total** | **482,700** | **$111.63** | **482,700** | **1,325,516** | - On October 30, 2024, the board authorized the repurchase of an additional **1.4 million shares** of common stock under the existing program[162](index=162&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=40&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[164](index=164&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=40&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - This item is not applicable[165](index=165&type=chunk) [ITEM 5. OTHER INFORMATION](index=41&type=section&id=ITEM%205.%20OTHER%20INFORMATION) None of Boise Cascade's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025 - None of Boise Cascade's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[166](index=166&type=chunk) [ITEM 6. EXHIBITS](index=41&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including various stock unit agreements, CEO/CFO certifications, and Inline XBRL documents - Exhibits include forms for 2025 Restricted Stock Unit Agreement, 2025 Performance Stock Unit Agreement, 2025 Director Restricted Stock Unit Agreement, CEO/CFO Certifications (Sarbanes-Oxley Act), and Inline XBRL documents[167](index=167&type=chunk) [Signatures](index=42&type=section&id=Signatures) The report is formally signed by Kelly E. Hibbs, Senior Vice President, Chief Financial Officer and Treasurer, on behalf of Boise Cascade Company - The report is signed by Kelly E. Hibbs, Senior Vice President, Chief Financial Officer and Treasurer, on May 5, 2025[171](index=171&type=chunk)

Boise Cascade Company Exhibit 99.1 1111 West Jefferson Street, Suite 300 Boise, ID 83702 For Immediate Release: May 5, 2025 Boise Cascade Company Reports First Quarter 2025 Results BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $40.3 million, or $1.06 per share, on sales of $1.5 billion for the first quarter ended March 31, 2025, compared with net income of $104.1 million, or $2.61 per share, on sales of $1.6 billion for the fir ...

Company Overview - Boise Cascade (BCC) has undergone a significant transformation over the past 5 years and is currently experiencing near-term tailwinds [1] Financial Performance - Revenue increased by 45% from 2020 to 2021, driven by a boom in the housing market [1]

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]

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]

Financial Data and Key Metrics Changes - Consolidated third quarter sales were $1.7 billion, down 7% from the third quarter of 2023 [5] - Net income was $91 million or $2.33 per share, compared to $143.1 million or $3.58 per share in the prior year quarter [5] - Wood Products sales were $453.9 million, down 12% year-over-year [7] - BMD sales were $1.6 billion, down 6% from the third quarter of 2023 [9] - Segment EBITDA for Wood Products was $77.4 million, down from $122.9 million in the previous year [8] - BMD reported segment EBITDA of $87.7 million, down from $104.9 million in the prior year [9] Business Line Data and Key Metrics Changes - Wood Products segment saw a decrease in sales primarily due to lower EWP and plywood sales prices and higher conversion costs [8] - I-joists sales volumes were down 8% year-over-year and 10% sequentially, influenced by housing starts and competition from other products [10] - Plywood sales volume was flat year-over-year at 391 million feet, but the average net sales price decreased by 13% year-over-year [12] - BMD's gross margin percentage was 15.7%, up 50 basis points year-over-year, reflecting growth in general line sales [15] Market Data and Key Metrics Changes - Total US housing starts decreased by 3% year-over-year, with single-family housing starts down 1% [5] - Single-family housing starts are outpacing 2023 levels by 10%, while multifamily starts have declined sharply [23] - Home affordability remains a challenge due to high home prices and financing costs, impacting the supply of existing housing stock [24] Company Strategy and Development Direction - The company continues to deploy capital through organic growth projects and returns to shareholders, with capital expenditures of $136 million in the first nine months of 2024 [18][19] - The company expects capital spending to be between $200 million and $220 million in 2025 [19] - The strategy includes ongoing investments in existing assets and the potential for M&A opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about medium to long-term housing fundamentals despite near-term uncertainties [26] - The company expects modest growth in home improvement spending in 2025 due to the aging housing stock and homeowner equity [25] - Management highlighted the importance of two-step distribution and the ability to pivot quickly in a volatile market [50] Other Important Information - The company paid $220 million in combined regular and special dividends during the nine months ended September 30, 2024 [19] - Share repurchases totaled approximately $165 million year-to-date, with an additional 1.4 million shares authorized for repurchase [20] Q&A Session Summary Question: Can you talk about the progression of sales in BMD during the quarter? - Management noted that daily sales pace was steady through the quarter, with September impacted by two fewer sales days [29] Question: What are you hearing from major customers in BMD regarding demand and inventory levels? - Customers are proceeding cautiously, with a focus on distribution in the current market [30] Question: How do you see EWP pricing correlating with lumber pricing? - Management indicated that EWP pricing is primarily driven by demand and operating rates rather than lumber prices [33] Question: Can you discuss the performance of the BROSCO business? - The BROSCO business has performed well, exceeding expectations [51] Question: What is the timeline for the Oakdale, Louisiana plant modernization? - The project will start this week with demolition, and the plant will operate at about 50% capacity during the first quarter [43] Question: How are you approaching inventories in your distribution business? - Management emphasized the need to balance inventory levels to serve customers while preparing for seasonal slowdowns [42]

Financial Performance - Income from operations for Q3 2024 was $117.4 million, down from $185.6 million in Q3 2023, representing a decrease of 36.7%[112] - Total sales for Q3 2024 were $1,713.7 million, a decline from $1,834.4 million in Q3 2023, marking a decrease of 6.6%[119] - Total sales decreased by $120.7 million, or 7%, to $1,713.7 million for the three months ended September 30, 2024, compared to $1,834.4 million for the same period in 2023[124] - For the nine months ended September 30, 2024, total sales decreased by $37.2 million, or 1%, to $5,156.8 million compared to $5,194.0 million for the same period in the prior year[124] - Segment income for the nine months ended September 30, 2024, decreased by $75.1 million to $197.9 million from $273.0 million for the same period in 2023, primarily due to lower EWP and plywood sales prices and higher wood fiber and conversion costs[136] Segment Performance - In the Wood Products segment, income decreased by $45.7 million to $53.9 million due to lower engineered wood products (EWP) and plywood sales prices, as well as higher conversion costs[112] - The Building Materials Distribution (BMD) segment saw income decrease by $22.3 million to $74.8 million, driven by increased selling and distribution expenses and depreciation and amortization expenses of $10.0 million and $5.1 million, respectively[112] - Wood Products segment sales decreased by $61.3 million, or 12%, to $453.9 million for the three months ended September 30, 2024, driven by lower plywood sales prices of 13%[125] - Building Materials Distribution sales decreased by $102.8 million, or 6%, to $1,567.5 million for the three months ended September 30, 2024, with commodity sales down 12%[127] - Building Materials Distribution segment income decreased by $22.3 million to $74.8 million for the three months ended September 30, 2024, driven by increased selling and distribution expenses and a decrease in gross margin[137] Cost and Expenses - Material costs, labor, and other operating expenses (excluding depreciation) for Q3 2024 were $1,375.7 million, accounting for 80.3% of sales, compared to 78.6% in Q3 2023[119] - Depreciation and amortization expenses increased to $36.9 million in Q3 2024 from $31.5 million in Q3 2023[119] - Materials, labor, and other operating expenses decreased by $66.5 million, or 5%, to $1,375.7 million for the three months ended September 30, 2024[129] - Average composite panel prices were 19% lower for the three months ended September 30, 2024, compared to the same period in the prior year[124] - Average composite lumber prices decreased by 13% for the three months ended September 30, 2024, compared to the same period in the prior year[124] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q3 2024 were $761.6 million, with total available liquidity of $1,157.3 million, while outstanding debt was $450.0 million[113] - For the nine months ended September 30, 2024, net cash provided by operations was $343.8 million, a decrease of $177.4 million compared to $521.1 million in the same period in 2023, primarily due to an increase in working capital[148] - The company used $135.8 million for purchases of property and equipment during the nine months ended September 30, 2024, compared to $99.3 million in the same period in 2023[150] - Financing activities used $391.6 million of cash during the nine months ended September 30, 2024, including $220.5 million in common stock dividend payments and $158.5 million for stock repurchases[153] - As of September 30, 2024, the company had $761.6 million in cash and cash equivalents and $450.0 million in debt, resulting in $1,157.3 million of available liquidity[143] Market Outlook - U.S. housing starts are forecasted to be approximately 1.35 million in 2024, down from 1.42 million in 2023, with single-family starts outpacing 2023 levels by 10%[114] - The company expects modest growth in home improvement spending in 2025, driven by the aging U.S. housing stock and elevated homeowner equity[114] Risks and Controls - The company faces risks related to commodity price fluctuations, economic conditions, and competition, which may impact future sales and profitability[116] - As of September 30, 2024, there have been no material changes in the company's exposure to market risk compared to the disclosures in the 2023 Form 10-K[165] - The company's disclosure controls and procedures were evaluated and deemed effective as of September 30, 2024, by the CEO and CFO[166] - There were no changes in the internal control over financial reporting during the three months ended September 30, 2024, that materially affected the reporting[167] - The company is involved in legal proceedings typical of its business operations, but does not anticipate any material adverse effects on its financial position[169] - The company uses a threshold of $1 million for disclosing environmental proceedings as per SEC regulations[170] Tax and Interest - Interest income decreased by $3.6 million to $10.2 million for the three months ended September 30, 2024, compared to $13.8 million for the same period in 2023, primarily due to lower average balances of cash equivalents[140] - The effective income tax rate for the nine months ended September 30, 2024, was 24.8%, down from 25.4% for the same period in 2023[142] Capital Expenditures - The company expects capital expenditures in 2024 to total approximately $220 million to $240 million, focusing on business improvement and efficiency projects[151]