[Third Quarter 2024 Financial Performance](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Performance) Boise Cascade reported a decline in third-quarter 2024 financial results, with sales and net income decreasing significantly, while the CEO highlighted resilience in a moderate demand environment and ongoing strategic investments [Third Quarter 2024 Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) Boise Cascade reported a decline in its third-quarter 2024 financial results compared to the same period in 2023, with sales decreasing by 7% to $1.71 billion and net income falling by 36% to $91.0 million Consolidated Results Q3 2024 vs Q3 2023 (in millions, except per-share data) | Metric | 3Q 2024 | 3Q 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $1,713.7 | $1,834.4 | (7)% | | Net Income | $91.0 | $143.1 | (36)% | | Net Income per common share - diluted | $2.33 | $3.58 | (35)% | | Adjusted EBITDA | $154.5 | $216.5 | (29)% | - The financial results were achieved in what the company described as a 'moderate demand environment'[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Nate Jorgensen credited the company's associates and its integrated business model for delivering good financial results despite a moderate demand environment, confirming progress on strategic investments and capital deployment - The CEO highlighted the company's ability to deliver good financial results due to the efforts of its associates and its unique business model combining engineered wood products (EWP) with a nationwide wholesale distribution network[3](index=3&type=chunk) - The company is continuing to advance its key strategic investment initiatives and deploy capital to shareholders[3](index=3&type=chunk) - Looking ahead, the company expects normal seasonality through the winter and is prepared to adjust to changes in customer and vendor demand[3](index=3&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Both Wood Products and Building Materials Distribution segments experienced sales and income declines in Q3 2024, primarily due to lower prices and increased costs [Wood Products](index=2&type=section&id=Wood%20Products) The Wood Products segment experienced a 12% decrease in sales to $453.9 million and a 46% drop in segment income to $53.9 million in Q3 2024, driven by lower sales prices and reduced volumes Wood Products Segment Financials (in millions) | Metric | 3Q 2024 | 3Q 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $453.9 | $515.2 | (12)% | | Segment Income | $53.9 | $99.6 | (46)% | Price and Volume Changes (Q3 2024 vs. Q3 2023) | Product | Average Net Selling Prices | Sales Volumes | | :--- | :--- | :--- | | LVL | (5)% | —% | | I-joists | (6)% | (8)% | | Plywood | (13)% | —% | - The decrease in segment income was attributed to lower EWP and plywood sales prices, higher conversion costs, and lower I-joist sales volumes[7](index=7&type=chunk) [Building Materials Distribution](index=2&type=section&id=Building%20Materials%20Distribution) The Building Materials Distribution (BMD) segment reported a 6% decrease in sales to **$1.57 billion** and a 23% decrease in segment income to **$74.8 million** for Q3 2024, driven by lower prices and increased expenses BMD Segment Financials (in millions) | Metric | 3Q 2024 | 3Q 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $1,567.5 | $1,670.3 | (6)% | | Segment Income | $74.8 | $97.1 | (23)% | - The sales decrease was driven by a **6% decline in sales prices**, with sales volumes remaining flat year-over-year[8](index=8&type=chunk) - Excluding the BROSCO acquisition, sales would have decreased by **9%**[8](index=8&type=chunk) - By product line, commodity sales fell **12%** and EWP sales fell **14%**, while general line product sales increased by **4%**[8](index=8&type=chunk) - Segment income decreased due to a **$7.7 million reduction in gross margin** and increased selling, distribution, depreciation, and amortization expenses[9](index=9&type=chunk) [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%20and%20Capital%20Allocation) Boise Cascade maintains a strong liquidity position with substantial cash reserves and undrawn credit, while actively deploying capital through planned expenditures, dividends, and share repurchases [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of September 30, 2024, Boise Cascade maintained a strong liquidity position with **$1.16 billion** in total available liquidity, comprising **$761.6 million** in cash and **$395.7 million** in undrawn credit, against **$450.0 million** of outstanding debt Liquidity Position as of September 30, 2024 (in millions) | Component | Amount | | :--- | :--- | | Cash and cash equivalents | $761.6 | | Undrawn committed bank line | $395.7 | | **Total available liquidity** | **$1,157.3** | | Outstanding debt | $450.0 | [Capital Allocation](index=3&type=section&id=Capital%20Allocation) The company plans capital expenditures of $220-$240 million for 2024 and $200-$220 million for 2025, while actively returning capital to shareholders through dividends and share repurchases - Capital expenditure is projected to be between **$220 million and $240 million** in 2024, and between **$200 million and $220 million** in 2025[11](index=11&type=chunk) - A quarterly dividend of **$0.21 per share** was declared, payable on December 18, 2024[12](index=12&type=chunk) - The company repurchased **1,232,345 shares** for **$158.5 million** in the first nine months of 2024[13](index=13&type=chunk) - The board authorized an additional **1.4 million shares** for repurchase, leaving approximately **2 million shares** available under the program as of October 31, 2024[13](index=13&type=chunk) [Outlook](index=3&type=section&id=Outlook) The company's outlook is driven by residential construction trends and faces risks from commodity price volatility and rising input costs [Market Outlook](index=3&type=section&id=Market%20Outlook) The company's market outlook is tied to residential construction, with U.S. housing starts projected at 1.35 million in 2024 and 1.40 million in 2025, supported by demographics despite affordability challenges - Demand is primarily correlated with new residential construction, especially single-family housing starts[14](index=14&type=chunk) - Current industry forecasts for U.S. housing starts are approximately **1.35 million** in 2024 and modestly above **1.40 million** in 2025[14](index=14&type=chunk) - Home affordability remains a challenge, but large homebuilders are addressing it by reducing home sizes and offering mortgage rate buydowns[14](index=14&type=chunk) - Favorable demographic trends and low unemployment are expected to support demand[14](index=14&type=chunk) [Business Risks](index=3&type=section&id=Business%20Risks) The company faces significant business risks from commodity price volatility and rising input costs, which can lead to sales declines and margin compression in both its manufacturing and distribution segments - The company has sales and profitability exposure to declines in commodity product prices and rising input costs[15](index=15&type=chunk) - The distribution business faces margin pressure during periods of declining prices, which can negatively impact sales and profitability[15](index=15&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements detail the company's Q3 2024 performance, balance sheet position, and cash flow activities, reflecting decreased sales and profitability alongside a strong liquidity profile [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter of 2024, Boise Cascade generated sales of $1.71 billion, with income from operations at $117.4 million and net income at $91.0 million, representing a significant decrease from the prior-year quarter Q3 Consolidated Statements of Operations Highlights (in millions) | Line Item | 3Q 2024 | 3Q 2023 | | :--- | :--- | :--- | | Sales | $1,713.7 | $1,834.4 | | Income from operations | $117.4 | $185.6 | | Net income | $91.0 | $143.1 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, the company's balance sheet showed total assets of $3.44 billion, with cash and cash equivalents at $761.6 million, total liabilities at $1.32 billion, and total stockholders' equity at $2.12 billion Balance Sheet Highlights (in millions) | Line Item | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $761.6 | $949.6 | | Total current assets | $2,012.2 | $2,056.8 | | Total assets | $3,441.6 | $3,458.6 | | Total current liabilities | $643.2 | $594.1 | | Total stockholders' equity | $2,123.4 | $2,195.7 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operations was $343.8 million, while net cash used for financing activities significantly increased to $391.6 million, resulting in a net decrease in cash of $188.0 million Nine Months Ended Sep 30 Cash Flow Highlights (in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operations | $343.8 | $521.1 | | Net cash used for investment | ($140.1) | ($96.8) | | Net cash used for financing | ($391.6) | ($149.7) | | Net (decrease) increase in cash | ($188.0) | $274.6 | [Supplemental Information](index=6&type=section&id=Supplemental%20Information) This section provides detailed segment-level financial data and reconciliations of non-GAAP measures like Adjusted EBITDA to GAAP net income [Segment Information](index=6&type=section&id=Segment%20Information) In Q3 2024, the Wood Products segment generated sales of $453.9 million and income of $53.9 million, while the Building Materials Distribution segment had sales of $1.57 billion and income of $74.8 million Q3 2024 Segment Sales and Income (in millions) | Segment | Sales | Income | | :--- | :--- | :--- | | Wood Products | $453.9 | $53.9 | | Building Materials Distribution | $1,567.5 | $74.8 | | **Total Segment Income** | **-** | **$128.7** | [Reconciliation of Non-GAAP Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides a reconciliation from GAAP Net Income to non-GAAP measures EBITDA and Adjusted EBITDA, showing Net Income of $91.0 million reconciled to an Adjusted EBITDA of $154.5 million for Q3 2024 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | 3Q 2024 | 3Q 2023 | | :--- | :--- | :--- | | Net income | $91.0 | $143.1 | | Interest, Taxes, D&A | $62.6 | $73.1 | | EBITDA | $153.6 | $216.1 | | Change in fair value of interest rate swaps | $0.9 | $0.3 | | **Adjusted EBITDA** | **$154.5** | **$216.5** | Segment EBITDA (in millions) | Segment | 3Q 2024 | 3Q 2023 | | :--- | :--- | :--- | | Wood Products EBITDA | $77.4 | $122.9 | | Building Materials Distribution EBITDA | $87.7 | $104.9 |

Boise Cascade Company (NYSE:BCC) Q2 2024 Earnings Conference Call August 6, 2024 11:00 AM ET Company Participants Chris Forrey - IR Nate Jorgensen - CEO Kelly Hibbs - SVP, CFO and Treasurer Jeff Strom - Head-Building Materials Distribution Operations Troy Little - Head-Wood Products Operations Conference Call Participants Susan Maklari - Goldman Sachs Kurt Yinger - D.A. Davidson George Staphos - Bank of America Merrill Lynch Mike Roxland - Truist Securities Reuben Garner - Benchmark Operator Good morning. M ...

Boise Cascade Company Second Quarter 2024 Earnings Webcast August 6, 2024 Forward-Looking Statements u This presentation includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our outlook. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35805 Boise Cascade Company (Exact name of registrant as specified in its charter) Delaware 20-1496201 (State or other jurisdiction of incorpora ...

[Financial Performance Summary](index=1&type=section&id=Boise%20Cascade%20Company%20Reports%20Second%20Quarter%202024%20Results) Boise Cascade Company's second quarter 2024 results reflect a decline in profitability amidst a challenging demand environment [Second Quarter 2024 Highlights](index=1&type=section&id=Second%20Quarter%202024%20Highlights) Boise Cascade reported Q2 2024 net income of $112.3 million on $1.8 billion sales, a decline from Q2 2023, reflecting a challenging demand environment and focus on capital returns | Metric | 2Q 2024 | 2Q 2023 | % Change | | :--- | :--- | :--- | :--- | | **Consolidated Results** | | | | | Sales | $1,797.7M | $1,815.2M | (1)% | | Net Income | $112.3M | $146.3M | (23)% | | Diluted EPS | $2.84 | $3.67 | (23)% | | Adjusted EBITDA | $181.2M | $221.0M | (18)% | | **Segment Results** | | | | | Wood Products Sales | $489.8M | $530.3M | (8)% | | Wood Products Income | $72.8M | $104.0M | (30)% | | BMD Sales | $1,655.2M | $1,636.5M | 1% | | BMD Income | $85.4M | $98.6M | (13)% | - CEO Nate Jorgensen noted solid financial performance despite a 'somewhat tepid demand environment' and emphasized organic growth and capital returns, including a significant special dividend[4](index=4&type=chunk) - Single-family housing starts, a key demand driver, increased by **7% in Q2 2024** year-over-year and **16% year-to-date**, while total U.S. housing starts decreased by **7%** in the same quarter[6](index=6&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Analysis of Wood Products and Building Materials Distribution segments reveals varied performance influenced by pricing, volume, and operational costs [Wood Products](index=2&type=section&id=Wood%20Products) The Wood Products segment saw an 8% sales decrease and a 30% income drop, primarily due to lower plywood volumes and reduced EWP selling prices, partially offset by higher EWP volumes | Product | Avg. Net Selling Prices (2Q24 vs 2Q23) | Sales Volumes (2Q24 vs 2Q23) | | :--- | :--- | :--- | | LVL | (7)% | 8% | | I-joists | (6)% | 5% | | Plywood | (1)% | (13)% | - The decrease in sales was primarily driven by lower plywood sales volumes and lower sales prices for LVL and I-joists (EWP)[7](index=7&type=chunk) - Segment income fell mainly due to lower EWP sales prices, coupled with higher wood fiber and conversion costs, partially mitigated by increased EWP sales volumes[8](index=8&type=chunk) [Building Materials Distribution (BMD)](index=2&type=section&id=Building%20Materials%20Distribution) The BMD segment's sales grew 1% to $1.66 billion, driven by volume increases and the BROSCO acquisition, while segment income declined 13% due to increased expenses - Sales growth was driven by a **2% increase in volume**, partially offset by a **1% decrease in prices**, with the October 2023 BROSCO acquisition being a significant factor; excluding it, sales would have decreased by **2%**[9](index=9&type=chunk) - By product line, general line product sales increased by **8%**, while commodity sales decreased by **6%** and EWP sales decreased by less than **1%**[9](index=9&type=chunk) - The decrease in segment income was primarily caused by a **$10.9 million increase** in selling and distribution expenses and a **$4.4 million increase** in depreciation and amortization[10](index=10&type=chunk) [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%20and%20Capital%20Allocation) Boise Cascade maintains a strong financial position with substantial liquidity and a strategic approach to capital deployment [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2024, Boise Cascade maintained a robust $1.32 billion liquidity, including $922.1 million in cash, with total outstanding debt at $445.7 million | Metric | Amount (as of June 30, 2024) | | :--- | :--- | | Cash and cash equivalents | $922.1 million | | Undrawn committed bank line | $395.7 million | | **Total available liquidity** | **$1,317.8 million** | | Outstanding debt | $445.7 million | [Capital Allocation](index=3&type=section&id=Capital%20Allocation) The company projects $250-$270 million in 2024 capital expenditures, declared special and regular dividends, and repurchased $99.4 million in common stock - Expected capital expenditures for 2024 are projected to be between **$250 million and $270 million**, excluding potential acquisitions[12](index=12&type=chunk) - A special dividend of **$5.00 per share** and a quarterly dividend of **$0.21 per share** were declared, both payable on September 16, 2024[12](index=12&type=chunk) - The company repurchased **677,845 shares for $88.9 million** in the first six months of 2024, and an additional **90,000 shares for $10.5 million** in July 2024, with approximately **1.2 million shares** remaining available for repurchase[12](index=12&type=chunk) [Outlook](index=3&type=section&id=Outlook) The company's outlook anticipates near-term market challenges but remains optimistic about long-term housing fundamentals [Market Outlook](index=3&type=section&id=Market%20Outlook) The company anticipates near-term demand challenges from high mortgage rates and affordability issues, but expects long-term support from favorable housing fundamentals and healthy repair-and-remodel spending - Demand is primarily driven by new residential construction, especially single-family, and repair-and-remodeling activity[13](index=13&type=chunk) - Near-term challenges include home affordability issues, elevated mortgage rates, and consumer uncertainty, which have softened renovation spending[13](index=13&type=chunk) - Positive long-term drivers include low unemployment, an undersupply of existing housing stock, and favorable demographic trends, which are expected to keep new construction as an important source of housing supply[13](index=13&type=chunk) - The company faces risks from volatile commodity product prices and input costs, which can impact sales and profitability in both its manufacturing and distribution businesses[14](index=14&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including operations, balance sheets, and cash flows [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2024, the company reported $1.80 billion in sales and $112.3 million in net income, with six-month figures showing decreased profitability year-over-year | (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Sales | $1,797,670 | $1,815,219 | | Income from operations | $146,981 | $189,975 | | **Net income** | **$112,292** | **$146,320** | | Diluted EPS | $2.84 | $3.67 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased to $3.67 billion and total stockholders' equity grew to $2.30 billion from year-end 2023 | (in thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $922,076 | $949,574 | | Total current assets | $2,267,806 | $2,056,814 | | **Total assets** | **$3,671,964** | **$3,458,646** | | Total current liabilities | $691,506 | $594,116 | | Long-term debt | $445,723 | $445,280 | | **Total stockholders' equity** | **$2,302,976** | **$2,195,664** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash from operations decreased to $169.2 million, with significant cash used in investing and financing activities | (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operations | $169,165 | $290,218 | | Net cash used for investment | ($76,667) | ($66,369) | | Net cash used for financing | ($119,996) | ($141,336) | | **Net (decrease) in cash** | **($27,498)** | **$82,513** | [Reconciliation of Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures, including EBITDA and Adjusted EBITDA, to their most directly comparable GAAP measures [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This section reconciles Q2 2024 Net Income of $112.3 million to Adjusted EBITDA of $181.2 million, providing non-GAAP financial insights | (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income | $112,292 | $146,320 | | Adjustments (Interest, Taxes, D&A) | $68,428 | $75,089 | | EBITDA | $180,720 | $221,309 | | Change in fair value of interest rate swaps | $487 | ($333) | | **Adjusted EBITDA** | **$181,207** | **$220,976** | [Reconciliation of Segment Income to EBITDA](index=13&type=section&id=Reconciliation%20of%20Segment%20Income%20to%20EBITDA) This table reconciles Q2 2024 segment income to EBITDA for Wood Products ($72.8M to $95.1M) and Building Materials Distribution ($85.4M to $97.1M) | (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Wood Products** | | | | Segment income | $72,780 | $104,035 | | Depreciation and amortization | $22,270 | $23,005 | | **EBITDA** | **$95,050** | **$127,040** | | **Building Materials Distribution** | | | | Segment income | $85,400 | $98,550 | | Depreciation and amortization | $11,741 | $7,386 | | **EBITDA** | **$97,141** | **$105,936** |

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. ...

[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, ...

Financial Data and Key Metrics Changes - For the full year 2023, the company reported net income of $483.7 million or $12.12 per diluted share on sales of $6.8 billion [4] - Fourth quarter sales were $1.6 billion, up 1% from the fourth quarter of 2022, while net income was $97.5 million or $2.44 per share, down from $117.4 million or $2.95 per share in the prior year quarter [5] - The fourth quarter results included $6.2 million of pretax accelerated depreciation and approximately $3 million of transaction expenses related to the BROSCO acquisition [5][7] Business Line Data and Key Metrics Changes - Wood Products sales in the fourth quarter were $449.7 million, up from $425.6 million in the same quarter of 2022, with segment EBITDA of $92.7 million, down from $99.7 million [7] - Building Materials Distribution (BMD) sales were $1.5 billion, up 3% from the fourth quarter of 2022, with segment EBITDA of $80.6 million, down from $99.4 million [8][11] - Fourth quarter volumes for I-joists and LVL were up 79% and 29% respectively, driven by improved single-family housing starts [9] Market Data and Key Metrics Changes - Total U.S. housing starts increased by 4%, with single-family housing starts up 23% compared to the prior year quarter [4] - Plywood sales volumes in Wood Products decreased to 363 million feet from 393 million feet in the fourth quarter of 2022, with average net sales price down 5% year-over-year [10] Company Strategy and Development Direction - The company is focused on executing its growth strategy through organic and acquisition initiatives, with a balanced approach to capital allocation [5][15] - The 2024 capital expenditure plan includes significant investments in both Wood Products and BMD, with a total expected range of $250 million to $270 million [14][15] - The company aims to maintain a strong balance sheet while investing in existing assets and organic growth projects, with potential for M&A opportunities [15][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market, noting that new residential construction is expected to remain a key supply source for homebuyers despite challenges in home affordability [16][17] - The company anticipates continued robust home improvement spending due to the age of U.S. housing stock and elevated homeowner equity, although mid-single declines are projected for 2024 [17] - Management highlighted the importance of maintaining high service levels and inventory to meet demand during peak building seasons [32][35] Other Important Information - The company paid $346 million in dividends and completed $6.4 million in share repurchases in 2023, with a quarterly dividend of $0.20 per share recently approved [15][60] - Management acknowledged the upcoming retirements of key leadership team members and expressed confidence in the succession plans [19] Q&A Session Summary Question: EWP capacity and competitive positioning - Management discussed the capacity additions from the Coastal acquisition and emphasized their high level of veneer self-sufficiency, which positions them well in the market [22][24] Question: Share shifts in EWP categories - Management noted changes in demand dynamics during the pandemic and highlighted the favorable position of I-joists due to ease of installation and transportation [25][27] Question: Impact of builder preferences on capacity - Management explained that while the absolute level of starts is important, the penetration of I-joists and LVL into those starts is also crucial for growth [30][32] Question: General line performance and margin stability - Management indicated that investments in general line products have led to higher-margin growth, and they expect normalized margins to be better than pre-pandemic levels [46][48] Question: Pricing pressures in EWP - Management acknowledged ongoing pricing pressures in certain geographies but emphasized their strategy to maintain value through service and product offerings [61][63]

Part I [Business](index=7&type=section&id=Item%201.%20Business) Boise Cascade is a leading North American producer of engineered wood products and a major U.S. building materials distributor, leveraging an integrated model and strategic growth initiatives - Boise Cascade is one of the largest producers of engineered wood products (EWP) and plywood in North America and a leading U.S. wholesale distributor of building products[12](index=12&type=chunk) - The company operates through two highly integrated, reportable segments: Wood Products (manufacturing) and Building Materials Distribution (BMD) BMD is the largest customer of the Wood Products segment[16](index=16&type=chunk) - Key business strategies include increasing earnings and stability by growing EWP sales, expanding distribution capabilities through acquisitions (like BROSCO in 2023) and organic projects, leveraging its integrated model, and accelerating innovation and digital technology[20](index=20&type=chunk)[21](index=21&type=chunk)[31](index=31&type=chunk) 2023 Sales by Segment | Segment | Sales (in millions) | | :--- | :--- | | Wood Products | $1,932.6 | | Building Materials Distribution | $6,178.7 | [Segment Overview](index=8&type=section&id=Segment%20Overview) - The Wood Products segment manufactures EWP (LVL, I-joists, laminated beams), plywood, and lumber The Building Materials Distribution (BMD) segment operates a nationwide network distributing commodities, general line items, and EWP, with substantially all EWP sourced from the Wood Products segment[16](index=16&type=chunk) - The company's products are primarily used in new residential construction, repair-and-remodeling, and light commercial construction Demand is driven by factors like housing starts, interest rates, and GDP growth[17](index=17&type=chunk) [Our Business Strategies](index=9&type=section&id=Our%20Business%20Strategies) - The company aims to increase earnings and stability by growing EWP sales to divert veneer from the more volatile plywood market The 2022 acquisition of Coastal Plywood supports this EWP growth strategy[20](index=20&type=chunk) - BMD's growth strategy involves expanding product lines (e.g., doors and millwork via the 2023 BROSCO acquisition), market penetration through acquisitions, and organic expansion projects in Florida, Ohio, Oregon, California, Texas, and South Carolina[21](index=21&type=chunk) - The integrated model is a key advantage, with Wood Products' sales of EWP and plywood to BMD increasing from 2019 to 2023, capturing margin at both supply chain levels[31](index=31&type=chunk) - Innovation efforts include developing new products for commercial construction, using AI for safety analysis, leveraging business intelligence software in BMD, and investing in robotics for the door and millwork business[33](index=33&type=chunk)[34](index=34&type=chunk) [Segment Detail](index=14&type=section&id=Segment%20Detail) Wood Products Segment Financials (in millions) | Year | Segment Sales | Segment Income | Segment EBITDA | | :--- | :--- | :--- | :--- | | 2023 | $1,932.6 | $337.1 | $435.8 | | 2022 | $2,115.9 | $575.2 | $648.5 | | 2021 | $1,970.8 | $531.2 | $586.5 | Building Materials Distribution Segment Financials (in millions) | Year | Segment Sales | Segment Income | Segment EBITDA | | :--- | :--- | :--- | :--- | | 2023 | $6,178.7 | $335.8 | $368.2 | | 2022 | $7,643.6 | $627.1 | $654.1 | | 2021 | $7,174.3 | $481.1 | $505.1 | BMD Sales Mix by Product (2023) | Product Line | Percentage of Sales | | :--- | :--- | | Commodity | 37.8% | | General line | 39.5% | | Engineered wood products | 22.7% | - The BMD segment operates a nationwide network of **40 distribution facilities** In 2023, it expanded its door and millwork business into the Northeast U.S. through the acquisition of BROSCO[54](index=54&type=chunk) [Human Capital Management](index=19&type=section&id=Human%20Capital%20Management) - The company employs approximately **7,300 people** and emphasizes a core value of safety, focusing on leading indicators to prevent incidents[65](index=65&type=chunk) - A new integrated Human Capital Management (HCM) system was launched in October 2022 to improve automation and efficiency of HR processes, with additional modules for learning management and compensation rolled out in 2023[68](index=68&type=chunk) [Executive Officers and Key Management](index=21&type=section&id=Information%20About%20Our%20Executive%20Of%20icers%20and%20Key%20Management) - Nate Jorgensen serves as the Chief Executive Officer, appointed in March 2020[76](index=76&type=chunk)[77](index=77&type=chunk) - Kelly Hibbs is the Senior Vice President, Chief Financial Officer, and Treasurer, appointed in May 2021[76](index=76&type=chunk)[78](index=78&type=chunk) - Several key executives announced retirements effective in 2024, including Mike Brown (EVP, Wood Products), Tom Hoffmann (SVP of Purchasing, BMD), and Erin Nuxoll (SVP, Human Resources) Successors have been named[76](index=76&type=chunk)[78](index=78&type=chunk)[81](index=81&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from industry cyclicality, commodity price volatility, operational disruptions, customer concentration, and regulatory compliance - A portion of the company's products are commodities (OSB, plywood, lumber) with prices subject to high volatility based on supply and demand, which can significantly impact profitability[88](index=88&type=chunk)[89](index=89&type=chunk) - Demand is strongly correlated with new residential construction, which is historically volatile and influenced by interest rates, housing affordability, and other economic factors[91](index=91&type=chunk) - Cybersecurity risks, including data breaches and operational disruptions from system failures, could adversely affect business operations and result in lost sales[98](index=98&type=chunk)[99](index=99&type=chunk) - Financial risks include a high concentration of sales with a small number of customers; in 2023, the **top ten customers represented 47% of sales**, with one customer accounting for **12%**[122](index=122&type=chunk) [Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from the Securities and Exchange Commission (SEC) staff - The company has no unresolved comments from the SEC staff[150](index=150&type=chunk) [Cybersecurity](index=40&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk management is overseen by the Audit Committee, led by the IT Director using the COBIT framework, with no material threats identified in 2023 - The Audit Committee of the board of directors is responsible for overseeing cybersecurity risks, receiving quarterly updates from the IT Director[152](index=152&type=chunk)[153](index=153&type=chunk) - The company's cybersecurity risk management program is led by the IT Director and utilizes the COBIT framework, preventative controls like two-factor authentication, and mandatory employee training[155](index=155&type=chunk)[156](index=156&type=chunk) - An established cross-functional IT incident response team and a data breach response plan are in place to manage and communicate potential incidents effectively[160](index=160&type=chunk)[161](index=161&type=chunk) - In 2023, the company did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect its business strategy, results of operations, or financial condition[154](index=154&type=chunk) [Properties](index=42&type=section&id=Item%202.%20Properties) The company owns all Wood Products manufacturing facilities and operates 40 BMD distribution facilities, totaling 6.1 million square feet Wood Products Manufacturing Facilities | Facility Type | Number of Facilities | | :--- | :--- | | Plywood and veneer plants | 11 | | LVL/I-joist/laminated beam plants | 5 | | Sawmills | 2 | - The BMD segment operates **40 distribution facilities** across the U.S., with total warehouse space of **6.1 million square feet** (**3.2 million owned**, **2.9 million leased**)[167](index=167&type=chunk) [Legal Proceedings](index=42&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none expected to have a material adverse effect on its financial position - The company is party to legal proceedings in the ordinary course of business but does not expect any to have a material adverse effect[168](index=168&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[170](index=170&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=43&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Boise Cascade's common stock trades on the NYSE (BCC), with an active dividend policy and a share repurchase program in place - The company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol **BCC**[170](index=170&type=chunk) - A share repurchase program is active, with **1,921,311 shares** available for repurchase as of December 31, 2023[177](index=177&type=chunk) Q4 2023 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2023 | 0 | N/A | | Nov 2023 | 50,000 | $97.75 | | Dec 2023 | 0 | N/A | | **Total Q4** | **50,000** | **$97.75** | [RESERVED]](index=44&type=section&id=Item%206.%20%5BRESERVED%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Income from operations significantly decreased in 2023 due to lower sales prices and volumes across segments, despite a strong year-end liquidity position Key Financial Results (in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Sales | $6,838.2 | $8,387.3 | | Income from Operations | $624.4 | $1,157.8 | | Net Income | $483.7 | $857.7 | - The decrease in 2023 income was primarily due to lower sales prices for plywood and EWP in the Wood Products segment, and lower gross margins and sales volumes in the BMD segment[185](index=185&type=chunk) - On October 2, 2023, the company acquired Brockway-Smith Company (BROSCO), a wholesale distributor of doors and millwork, for a purchase price of **$162.8 million**, funded with cash on hand[186](index=186&type=chunk)[187](index=187&type=chunk) - The company ended 2023 with a strong liquidity position, including **$949.6 million in cash and cash equivalents** and **$395.9 million of unused committed bank line availability**[188](index=188&type=chunk)[222](index=222&type=chunk) [Our Operating Results](index=49&type=section&id=Our%20Operating%20Results) - Total sales decreased **18% to $6.84 billion** in 2023, driven by lower sales prices and volumes, influenced by a **9% decrease in U.S. housing starts** and significant declines in composite lumber (**-47%**) and panel (**-32%**) prices[210](index=210&type=chunk) - Wood Products sales decreased **9% to $1.93 billion**, primarily due to a **29% drop in plywood sales prices**, with EWP sales prices and volumes also declining[211](index=211&type=chunk) - BMD sales decreased **19% to $6.18 billion**, driven by a **16% decrease in sales prices** and a **3% decrease in sales volumes**, with commodity sales seeing the largest decline at **32%**[212](index=212&type=chunk) - Income from operations fell to **$624.4 million** in 2023 from **$1,157.8 million** in 2022, with Wood Products segment income decreasing by **$238.1 million** and BMD segment income decreasing by **$291.3 million**[217](index=217&type=chunk)[218](index=218&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Cash Flow Summary (in millions) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operations | $687.5 | $1,041.2 | | Net cash used for investment | ($375.6) | ($625.5) | | Net cash used for financing | ($360.7) | ($166.3) | - Cash from operations decreased by **$353.8 million** in 2023 primarily due to lower segment income[227](index=227&type=chunk) - Major uses of cash for investment in 2023 included **$215.4 million for capital expenditures** and **$162.8 million for the BROSCO acquisition**[230](index=230&type=chunk) - Financing activities in 2023 used **$360.7 million**, primarily for **$346.5 million in common stock dividend payments**[233](index=233&type=chunk) - The company anticipates capital expenditures of approximately **$250 million to $270 million** in 2024, excluding potential acquisitions[231](index=231&type=chunk) [Critical Accounting Estimates](index=61&type=section&id=Critical%20Accounting%20Estimates) - EWP rebates and allowances are a critical estimate, requiring forecasting sales through the supply chain to homebuilders, with accrued EWP rebates payable at **$63.0 million** at year-end 2023[273](index=273&type=chunk) - The company reviews long-lived assets for impairment when a triggering event occurs, requiring significant judgment in estimating future undiscounted cash flows, with no triggering event identified in 2023[274](index=274&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity price volatility and interest rate changes, with foreign currency risk not considered significant - The company faces significant commodity price risk as prices for its products (plywood, lumber) and inputs (logs, OSB) are volatile and determined by market supply and demand[247](index=247&type=chunk) - Interest rate risk on the **$50.0 million variable-rate ABL Term Loan** is mitigated by an interest rate swap agreement, which fixes the interest rate on the debt exposure until its expiration in June 2025[248](index=248&type=chunk)[249](index=249&type=chunk) [Financial Statements and Supplementary Data](index=63&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements and notes, with KPMG LLP providing an unqualified opinion and identifying EWP rebates as a critical audit matter Consolidated Statement of Operations Highlights (in thousands) | Line Item | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Sales | $6,838,245 | $8,387,307 | $7,926,111 | | Income from operations | $624,386 | $1,157,849 | $971,803 | | Net income | $483,656 | $857,658 | $712,486 | | Diluted EPS | $12.12 | $21.56 | $17.97 | Consolidated Balance Sheet Highlights (in thousands) | Line Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $2,056,814 | $2,064,052 | | Total Assets | $3,458,646 | $3,240,514 | | Total Current Liabilities | $594,116 | $545,828 | | Long-term Debt | $445,280 | $444,392 | | Total Stockholders' Equity | $2,195,664 | $2,057,975 | - The independent auditor, KPMG LLP, issued an unqualified opinion on the financial statements and internal controls, but identified the estimation of EWP customer rebates payable as a critical audit matter due to the high degree of subjective judgment required[444](index=444&type=chunk)[448](index=448&type=chunk)[450](index=450&type=chunk) [Changes In and Disagreements With Accountants on Accounting and Financial Disclosure](index=103&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles or financial disclosure - None[462](index=462&type=chunk) [Controls and Procedures](index=103&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, excluding the BROSCO acquisition - The CEO and CFO concluded that as of December 31, 2023, the company's disclosure controls and procedures were effective[463](index=463&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023[466](index=466&type=chunk) - The assessment of internal controls excluded the BROSCO acquisition completed on October 2, 2023, as permitted by SEC guidance[467](index=467&type=chunk) [Other Information](index=105&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during Q4 2023 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during the fourth quarter of 2023[470](index=470&type=chunk) [Holding Foreign Companies Accountable Act Disclosures](index=105&type=section&id=Item%209C.%20Holding%20Foreign%20Companies%20Accountable%20Act%20Disclosures) This item is not applicable to the company - Not applicable[471](index=471&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=105&type=section&id=Item%2010.%20Directors,%20Executive%20Officers,%20and%20Corporate%20Governance) Information on executive officers, directors, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information regarding directors and corporate governance is incorporated by reference from the company's 2024 Proxy Statement[474](index=474&type=chunk) [Executive Compensation](index=105&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the 2024 Proxy Statement - Information regarding executive compensation is incorporated by reference from the company's 2024 Proxy Statement[475](index=475&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=105&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management is incorporated by reference from the 2024 Proxy Statement - Information regarding security ownership is incorporated by reference from the company's 2024 Proxy Statement[476](index=476&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=106&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on related-person transactions and director independence is incorporated by reference from the 2024 Proxy Statement - Information regarding related transactions and director independence is incorporated by reference from the company's 2024 Proxy Statement[477](index=477&type=chunk) [Principal Accountant Fees and Services](index=106&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to KPMG LLP is incorporated by reference from the 'Audit Committee Report' section of the 2024 Proxy Statement - Information regarding principal accountant fees and services is incorporated by reference from the company's 2024 Proxy Statement[478](index=478&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=107&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists filed documents, including Consolidated Financial Statements, and provides an index to all exhibits, noting omitted schedules - This section contains the list of financial statements filed, notes the omission of financial statement schedules, and provides an index to exhibits[480](index=480&type=chunk)[481](index=481&type=chunk)