Financial Data and Key Metrics Changes - Consolidated first quarter sales were $1.5 billion, down 7% from Q1 2024 [6] - Net income was $40.3 million or $1.06 per share, compared to $104.1 million or $2.61 per share in the prior year quarter [6] - Wood Products sales were $415.8 million, down 11% year-over-year [8] - BMD sales were $1.4 billion, down 7% from Q1 2024 [9] - Overall EBITDA for Wood Products was $40.2 million, significantly lower than $95.6 million in the previous year [8] Business Line Data and Key Metrics Changes - Wood Products segment EBITDA decreased primarily due to lower EWP and plywood sales prices and volumes [8] - BMD's gross margin was 14.7%, a decline of 40 basis points year-over-year [10] - EWP volumes were down 3%, which was better than the 6% decline in single-family housing starts [10] - Plywood sales volume was 363 million feet, down from 372 million feet in Q1 2024 [11] Market Data and Key Metrics Changes - U.S. housing starts decreased by 26% year-over-year, impacting demand [6] - Daily sales pace in BMD improved in March, exceeding $24 million per day [12] - April's daily sales pace was approximately 13% higher than Q1 2025, indicating a rebound in demand [15] Company Strategy and Development Direction - The company is focused on strategic investments and returning capital to shareholders, supported by a strong balance sheet [7] - Capital expenditures for 2025 are projected between $220 million and $240 million, with significant investments in EWP production capabilities [16] - The company is prepared to respond to economic changes while maintaining a focus on long-term demand drivers in residential construction [20] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 end market demand expectations are difficult to predict, with forecasts ranging from flat to mid-single-digit declines [20] - The company remains confident in its ability to execute across all market conditions, emphasizing the strength of its team [21] - Long-term demand drivers remain strong, characterized by an undersupply of housing units and aging housing stock [22] Other Important Information - The Oakdale facility's modernization is expected to be completed by the end of Q2, which will enhance EWP production [7] - The company repurchased $71 million of common stock in the first four months of 2025 [18] - A quarterly dividend of $10 million was paid during the quarter, with plans for future dividends [17] Q&A Session Summary Question: Thoughts on general line side of the business and inventory positions - Management noted that customers are relying heavily on two-step distribution for inventory management and just-in-time services [25] Question: Update on the Oakdale project and macro environment - The Oakdale facility is expected to resume operations, with veneer supply shifting back to EWP production [29] Question: Capital allocation priorities and M&A pipeline - Management indicated a quiet M&A pipeline but remains open to opportunities that align with growth strategy [30] Question: EWP pricing expectations for Q2 - Management expects low single-digit sequential pricing declines, similar to Q1 [38] Question: Competitive pressures in EWP - Competitive challenges are primarily from existing EWP producers rather than dimensional lumber or open web trusses [49] Question: Update on LVL volumes and share gains - LVL volumes are starting to outpace production, indicating a positive trend [62] Question: Inventory levels and market conditions - Management feels confident about inventory levels, which are aligned with market demands [76] Question: Impact of recent transactions in the industry - Management believes they are well-positioned amidst ongoing industry consolidation and will focus on high-level execution [78]

Financial Performance - Net sales decreased by 23% year-over-year to $709 million[16, 22, 24] - Gross profit decreased by 13% year-over-year to $111 million[12, 22] - Gross margin decreased by 190 bps year-over-year to 157%[16, 22, 24] - Adjusted EBITDA decreased by 496% year-over-year to $196 million, representing 28% of net sales[16, 22, 24] - Adjusted net income decreased by 88% year-over-year to $23 million[16, 22] - Free cash flow was negative $40 million[16, 22, 24] Product Category Performance - Specialty product net sales decreased by 5% to $479 million, representing approximately 70% of total net sales[24, 26] - Structural product net sales increased by 3% to $230 million[24, 29] - Specialty product gross profit was $90 million, representing approximately 81% of total gross profit[26] - Structural product gross profit was $21 million, representing approximately 19% of total gross profit[29] Balance Sheet and Liquidity - Cash and cash equivalents totaled $449 million at the end of Q1 2025[38] - Total available liquidity was $795 million at the end of Q1 2025[38] - Net debt was negative $75 million[38] - Net leverage ratio was negative 07x[16, 38]