Boise Cascade Company : Boise Cascade Company Reports Financial Results for First Quarter 2013 For Immediate Release: April 22, 2013 BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported financial results for its quarter ended March 31, 2013. First Quarter 2013 Highlights oOn February 11, 2013, we issued 13,529,412 shares of common stock in our initial public offering. As a result of this initial public offering, we received proceeds of $262.7 million, net of underwriting discounts and offering expenses. oFirst quarter sales of $744.9 million were 27% above the same quarter in 2012. Wood Products first quarter segment sales, including sales to the Company's Building Materials Distribution (BMD) segment, were $269.2 million, an increase of 28% from the year ago quarter. BMD segment sales were $581.1million, an increase of 29% from the year ago quarter. oThe Company reported net income of $80.8 million in the first quarter, which included a $68.7million income tax benefit associated with recording net deferred tax assets upon our conversion to a corporation in February 2013. Net income for the quarter excluding the tax item was $12.2 million, or $0.32per share, on 37.6 million weighted average shares outstanding. Net income in first quarter 2012 was $1.7million, or $0.06 per share, on 29.7 million weighted averages shares outstanding. As of April 22, the Company had 43.2 million shares outstanding. oWood Products reported first quarter 2013 segment earnings before interest, taxes, depreciation, and amortization (EBITDA) of $27.1 million, up 62% from the $16.7 million reported in the same period in 2012. oBMD reported segment EBITDA of $10.2 million, a sharp improvement from the $1.4 million reported in first quarter 2012. Total and single-family U.S. housing starts improved approximately 36% and 28%, respectively, from the same period last year. Housing start levels remain below the historical average for the last 20 years of approximately 1.4million units per year. The April 2013 Blue Chip consensus forecast for 2013 reflects 1,000,000 U.S. housing starts, a 28% increase from 2012 levels. "2013 has started with strong commodity pricing for structural panels and lumber, which clearly contributed to our financial performance in both operating segments. Demand improved compared to the prior year quarter primarily driven by increased new home construction activity. Our businesses are doing a good job of leveraging the stronger housing-related activity into higher sales and earnings," commented Tom Carlile, CEO. 1Q 2013 1Q 2012 4Q 2012 (thousands) Total sales $ 744,878 $ 586,986 $ 694,580 Net income 80,836 1,668 1,278 Adjusted net income^1 12,170 1,668 1,278 Wood Products segment sales 269,216 211,143 230,508 Wood Products segment EBITDA^1 27,061 16,716 13,233 BMD segment sales 581,129 451,416 553,068 BMD segment EBITDA^1 10,175 1,363 8,055 ^1Reconciliations between our results reported in accordance with U.S. generally accepted accounting principles (GAAP) and adjusted net income and EBITDA are included in the summary notes at the end of this press release. Wood Products Segment Wood Products segment sales in the first quarter were $269.2 million, up 28% from the same quarter a year ago. The sales increase was attributable primarily to 24% higher plywood sales prices, 28% higher laminated veneer lumber (LVL) sales volumes, and 37% higher I-joist sales volumes. Higher lumber sales volumes and prices, as well as plywood sales volumes also contributed to segment sales growth. The segment reported EBITDAof $27.1 million for the quarter, compared with $16.7 million reported in first quarter 2012. The main factors contributing to the improved financial performance were improved plywood, lumber, and EWP pricing, offset partially by higher wood fiber costs. Building Materials Distribution Segment BMD segment sales were $581.1 million in the first quarter, up 29% from the same quarter a year ago. Price changes accounted for approximately 18% of the sales gain, with shipment volumes up approximately 9%. The largest sales gains were in commodity products and engineered wood products categories, with lower sales growth in general line products. BMD reported quarterly EBITDA of $10.2 million compared to $1.4 million in first quarter 2012. Gross margins at 11.0% were down 0.5% from the 11.5% reported in first quarter 2012; however, positive sales growth leverage on selling and distribution expenses, as well as on general and administrative expenses, contributed to significantly improved earnings in the segment. Balance Sheet Boise Cascade received net IPO proceeds of $262.7 million in February and ended the first quarter with $233.5 million of cash. At March 31, 2013, the Company had $290.2 million of undrawn committed bank line availability, for total available liquidity of $523.8 million including cash. The Company reported $250.0 million of long-term debt, which was down $25.0 million from year-end 2012. Outlook We expect to continue to experience demand below 20-year average historical levels for the products we manufacture and distribute. However, the housing industry has shown signs of improvement in the U.S. and we remain optimistic that the recent improvement in demand for our products will continue. Commodity wood product prices in first quarter 2013, including structural panels and lumber, were well above 5-year average historical levels. Future pricing could be volatile in response to operating rates and inventory levels in various distribution channels. We expect to manage our production levels to our sales demand, which will likely result in operating our engineered wood products facilities below their capacity until demand improves further. About Boise Cascade Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit our website at www.bc.com. Webcast and Conference Call Boise Cascade will host a webcast and conference call on Monday, April 22, at 11a.m. Eastern, at which time we will review the company's recent performance. You can join the webcast through our website by going to www.bc.com and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15minutes before the start of the webcast to register. To join the conference call, dial 866-277-1184 (international callers should dial 617-597-5360), participant passcode 76736434, at least 10minutes before the start of the call. The archived webcast will be available in the Investor Relations section of our website. A replay of the conference call will be available from Monday, April 22, at 2p.m. Eastern through Monday, April 29, at 11p.m. Eastern. Playback numbers are 888-286-8010 for U.S. calls and 617-801-6888 for international calls, and the passcode will be 85535636. Basis of Presentation We present our consolidated financial statements in accordance with GAAP. Our earnings release also supplements the GAAP presentations by reflecting EBITDA, a non-GAAP financial measure. EBITDA is defined as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA, however, is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income (loss) or segment income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for the limitations of EBITDA by relying on our GAAP results. Our measure of EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Forward-Looking Statements This news release contains statements that are "forward looking" within the Private Securities Litigation Reform Act of 1995. These statements speak only as of the date of this press release. While they are based on the current expectations and beliefs of management, they are subject to a number of uncertainties and assumptions that could cause actual results to differ from the expectations expressed in this release. Boise Cascade Company Consolidated Statements of Operations (unaudited, in thousands, except per-share data) Three Months Ended March31 December31, 2013 2012 2012 Sales Trade $ 744,878 $ 586,986 $ 694,580 Costs and expenses Materials, labor, and other operating 644,847 510,124 607,589 expenses (excluding depreciation) Depreciation and amortization 8,477 8,119 8,489 Selling and distribution expenses 57,004 53,814 58,201 General and administrative expenses 10,046 9,048 11,200 Other (income) expense, net (134 ) (368 ) 496 720,240 580,737 685,975 Income from operations 24,638 6,249 8,605 Foreign exchange gain (loss) (80 ) 186 (88 ) Interest expense (4,891 ) (4,813 ) (7,286 ) Interest income 62 107 111 (4,909 ) (4,520 ) (7,263 ) Income before income taxes 19,729 1,729 1,342 Income tax (provision) benefit (a) 61,107 (61 ) (64 ) Net income $ 80,836 $ 1,668 $ 1,278 Weighted average common shares outstanding: Basic 37,569 29,700 29,700 Diluted 37,569 29,700 29,700 Net income per common share: Basic $ 2.15 $ 0.06 $ 0.04 Diluted $ 2.15 $ 0.06 $ 0.04 See accompanying summary notes to consolidated financial statements and segment information. Wood Products Segment Statements of Operations (unaudited, in thousands) Three Months Ended March31 December31, 2013 2012 2012 Sales Segment $ 269,216 $ 211,143 $ 230,508 Costs and expenses Materials, labor, and other operating 233,384 186,396 207,112 expenses (excluding depreciation) Depreciation and amortization 6,253 5,905 6,262 Selling and distribution expenses 6,693 6,469 6,952 General and administrative expenses 2,131 1,908 2,691 Other (income) expense, net (53 ) (346 ) 520 248,408 200,332 223,537 Segment income $ 20,808 $ 10,811 $ 6,971 (percentage of sales) Sales Segment 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating 86.7 % 88.3 % 89.9 % expenses (excluding depreciation) Depreciation and amortization 2.3 % 2.8 % 2.7 % Selling and distribution expenses 2.5 % 3.1 % 3.0 % General and administrative expenses 0.8 % 0.9 % 1.2 % Other (income) expense, net - % (0.2 )% 0.2 % 92.3 % 94.9 % 97.0 % Segment income 7.7 % 5.1 % 3.0 % Building Materials Distribution Segment Statements of Operations (unaudited, in thousands) Three Months Ended March31 December31, 2013 2012 2012 Sales Segment $ 581,129 $ 451,416 $ 553,068 Costs and expenses Materials, labor, and other operating 517,002 399,446 489,627 expenses (excluding depreciation) Depreciation and amortization 2,178 2,182 2,203 Selling and distribution expenses 50,311 47,345 51,249 General and administrative expenses 3,742 3,332 4,193 Other (income) expense, net (101 ) (70 ) (56 ) 573,132 452,235 547,216 Segment income (loss) $ 7,997 $ (819 ) $ 5,852 (percentage of sales) Sales Segment 100.0 % 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating 89.0 % 88.5 % 88.5 % expenses (excluding depreciation) Depreciation and amortization 0.4 % 0.5 % 0.4 % Selling and distribution expenses 8.7 % 10.5 % 9.3 % General and administrative expenses 0.6 % 0.7 % 0.8 % Other (income) expense, net - % - % - % 98.6 % 100.2 % 98.9 % Segment income (loss) 1.4 % (0.2 )% 1.1 % Segment Information (unaudited, in thousands) Three Months Ended March31 December31, 2013 2012 2012 Segment sales Wood Products $ 269,216 $ 211,143 $ 230,508 Building Materials Distribution 581,129 451,416 553,068 Intersegment eliminations (105,467 ) (75,573 ) (88,996 ) $ 744,878 $ 586,986 $ 694,580 Segment income (loss) Wood Products $ 20,808 $ 10,811 $ 6,971 Building Materials Distribution 7,997 (819 ) 5,852 Corporate and Other (4,247 ) (3,557 ) (4,306 ) 24,558 6,435 8,517 Interest expense (4,891 ) (4,813 ) (7,286 ) Interest income 62 107 111 Income before income taxes $ 19,729 $ 1,729 $ 1,342 EBITDA (b) Wood Products $ 27,061 $ 16,716 $ 13,233 Building Materials Distribution 10,175 1,363 8,055 Corporate and Other (4,201 ) (3,525 ) (4,282 ) $ 33,035 $ 14,554 $ 17,006 See accompanying summary notes to consolidated financial statements and segment information. Boise Cascade Company Consolidated Balance Sheets (unaudited, in thousands) March31, December31, 2013 2012 ASSETS Current Cash and cash equivalents $ 233,547 $ 54,507 Receivables Trade, less allowances of $2,776 and $2,696 205,575 134,743 Related parties 430 674 Other 3,905 6,204 Inventories 387,103 325,806 Deferred income taxes 19,023 2 Prepaid expenses and other 8,279 5,521 Total current assets 857,862 527,457 Property and equipment, net 261,221 265,924 Timber deposits 7,027 6,221 Deferred financing costs 7,441 7,562 Goodwill 12,170 12,170 Intangible assets 8,900 8,900 Deferred income taxes 48,128 - Other assets 7,048 8,164 Total assets $ 1,209,797 $ 836,398 Boise Cascade Company Consolidated Balance Sheets (continued) (unaudited, in thousands, except per-share data) March31, December31, 2013 2012 LIABILITIES AND STOCKHOLDERS' EQUITY Current Accounts payable Trade $ 216,388 $ 140,192 Related parties 2,092 1,950 Accrued liabilities Compensation and benefits 42,779 61,814 Interest payable 7,160 3,188 Other 32,692 29,043 301,111 236,187 Debt Long-term debt 250,000 275,000 Other Compensation and benefits 195,169 206,668 Other long-term liabilities 14,084 14,336 209,253 221,004 Redeemable equity - 6,443 Commitments and contingent liabilities Stockholders' equity Preferred stock, $0.01 par value per share; - - 50,000 shares authorized, no shares issued and outstanding Common stock, $0.01 par value per share; 300,000 432 297 shares authorized, 43,229 and 29,700 shares issued and outstanding, respectively Additional paid-in capital 494,216 256,927 Accumulated other comprehensive loss (119,820 ) (121,229 ) Retained earnings (accumulated deficit) 74,605 (38,231 ) Total stockholders' equity 449,433 97,764 Total liabilities and stockholders' equity $ 1,209,797 $ 836,398 Boise Cascade Company Consolidated Statements of Cash Flows (unaudited, in thousands) Three Months Ended March31 2013 2012 Cash provided by (used for) operations Net income $ 80,836 $ 1,668 Items in net income not using (providing) cash Depreciation and amortization, including deferred 8,888 8,720 financing costs and other Pension expense 2,726 3,235 Deferred income taxes (68,018 ) - Other 11 (428 ) Decrease (increase) in working capital, net of acquisitions Receivables (68,635 ) (42,486 ) Inventories (61,297 ) (34,617 ) Prepaid expenses and other (384 ) (196 ) Accounts payable and accrued liabilities 57,494 58,784 Pension contributions (9,663 ) (3,941 ) Current and deferred income taxes 6,772 64 Other (2,472 ) (764 ) Net cash used for operations (53,742 ) (9,961 ) Cash provided by (used for) investment Expenditures for property and equipment (5,316 ) (4,727 ) Acquisitions of businesses and facilities - (2,355 ) Proceeds from sales of assets 489 88 Other 22 (1,059 ) Net cash used for investment (4,805 ) (8,053 ) Cash provided by (used for) financing Net proceeds from issuance of common stock 262,736 - Issuances of long-term debt 55,000 - Payments of long-term debt (80,000 ) - Financing costs (149 ) - Net cash provided by financing 237,587 - Net increase (decrease) in cash and cash equivalents 179,040 (18,014 ) Balance at beginning of the period 54,507 182,455 Balance at end of the period $ 233,547 $ 164,441 Summary Notes to Consolidated Financial Statements and Segment Information The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the company's 2012 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals. (a) First quarter 2013 includes $68.7 million of income tax benefit associated with recording net deferred tax assets upon our conversion from a limited liability company to a corporation. The following table reconciles GAAP net income to adjusted non-GAAP net income for the three months ended March31, 2013 and 2012, and December31, 2012: Three Months Ended March31 December31, 2013 2012 2012 (unaudited, in thousands, except per-share amounts) Net income (GAAP basis) $ 80,836 $ 1,668 $ 1,278 Impact of deferred tax (68,666 ) - - benefit Adjusted net income $ 12,170 $ 1,668 $ 1,278 (non-GAAP basis) Adjusted net income (non-GAAP basis), per share: Basic $ 0.32 $ 0.06 $ 0.04 Diluted $ 0.32 $ 0.06 $ 0.04 (b)EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. The following table reconciles net income to EBITDA for the three months ended March31, 2013 and 2012, and December31, 2012: Three Months Ended March31 December31, 2013 2012 2012 (unaudited, in thousands) Net income $ 80,836 $ 1,668 $ 1,278 Interest expense 4,891 4,813 7,286 Interest income (62 ) (107 ) (111 ) Income tax provision (benefit) (61,107 ) 61 64 Depreciation and amortization 8,477 8,119 8,489 EBITDA $ 33,035 $ 14,554 $ 17,006 The following table reconciles segment income (loss) to EBITDA for the three months ended March31, 2013 and 2012, and December31, 2012: Three Months Ended March31 December31, 2013 2012 2012 (unaudited, in thousands) Wood Products Segment income $ 20,808 $ 10,811 $ 6,971 Depreciation and amortization 6,253 5,905 6,262 EBITDA 27,061 16,716 13,233 Building Materials Distribution Segment income (loss) $ 7,997 $ (819 ) $ 5,852 Depreciation and amortization 2,178 2,182 2,203 EBITDA 10,175 1,363 8,055 Corporate and Other Segment loss (4,247 ) (3,557 ) (4,306 ) Depreciation and amortization 46 32 24 EBITDA (4,201 ) (3,525 ) (4,282 ) Total Company EBITDA $ 33,035 $ 14,554 $ 17,006 Investor contact: Wayne Rancourt, 208-384-6073 Media contact: John Sahlberg, 208-384-6451 Source: Boise Cascade Company ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Boise Cascade Company via Thomson Reuters ONE HUG#1694684
Boise Cascade Company : Boise Cascade Company Reports Financial Results for First Quarter 2013
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