Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Investor Presentation (December 2014)
20 slides from Boise Cascade, L.l.c's investor presentation, Dec 10, 2014
Slide 1: Boise Cascade Company Investor Presentation
0 Boise Cascade Company Investor Presentation July 2013 Investor Presentation December 2014
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
1 Forward-Looking Statements / Non-GAAP Financial Measures Forward-Looking Statements During the course of this presentation, we may make forward-looking statements or provide forward- looking information. All statements that address expectations or projections about the future are forward-looking s
Slide 3: Overview
2 YTD September 30, 2014 Sales (1) $3,117 million (1) Segment percentages are calculated before intersegment eliminations. (2) Segment percentages exclude Corporate and Other segment expenses. • Large, vertically-integrated building products company operating two businesses: • Wood Products (“Manufa
Slide 4: Overview: Facilities Footprint
3 Headquarters EWP Manufacturing Facilities (4) Plywood/Veneer Manufacturing Facilities (9) Lumber Manufacturing Facilities (5) Particleboard Manufacturing Facility (1) BMD Facilities (32) Truss Manufacturing Plant (1) • National distribution footprint capable of servicing larger metro areas • Manuf
Slide 5: Business Strategy
4 Business Strategy • Increase low-cost veneer production capacity • Optimize veneer utilization between plywood and EWP Wood Products Manufacturing • Leverage footprint in place • Grow market share Building Materials Distribution • Access to downstream customers • Leverage relationship between manu
Slide 6: Housing Recovery Expected to Continue
5 Bulk of demand improvement will be from new residential construction New residential construction should return to long-term trend demand levels Housing Recovery Expected to Continue EWP and Distribution growth driven primarily by increases in new single-family construction • EWP currently operati
Slide 7: Positioned for Further Growth
6 Continuing to demonstrate earnings leverage in 2014 Positioned for Further Growth Year-over-year housing starts up approximately 10%, but YTD- 2014 EBITDA up 50% over 2013 Continued improvement in financial performance expected as housing recovers • Growth in EWP demand • Higher EWP pricing result
Slide 8: Wood Products Manufacturing Value Chain
7 Wood Products Manufacturing Value Chain Veneer Purchased Logs Plywood I-joist Conversion Costs Conversion Costs Conversion Costs Purchased Veneer / Lumber / OSB Purchased Plywood Maximize total return on raw materials purchased LVL
Slide 9: Wood Products Manufacturing: EWP Operating Rates
8 Housing Starts (mm): 1.801 1.355 0.906 0.554 0.587 0.609 0.781 0.925 0.763 Wood Products Manufacturing EWP Operating Rate Industry’s LVL Press Utilization BCC LVL Sales Volume and Pricing Industry operating rates moving higher in EWP
Slide 10: Plywood Industry Supply / Demand Balance
9 Wood Products Manufacturing Plywood Industry Supply / Demand Balance Very favorable industry operating rates in plywood Mill and Effective Industry Demand / Capacity Ratio
Slide 11: Leveraging "In-house" Distribution
10 Leveraging “In-house” Distribution
Slide 12: Distribution Capacity for Growth
11 Distribution Capacity for Growth Source: U.S. Census Bureau and Blue Chip Economic Indicators. BMD Sales per U.S. Start and Gross Margin Significant Available Capacity Recent capacity additions provide significant operating leverage opportunity in BMD
Slide 13: Capital Invested
12 • Acquired Pilot Rock, OR sawmill • New dryer Medford, OR • Relocated Atlanta, GA distribution center • Acquired EWP/ truss plant Saco, ME • Expanded distribution yard Minneapolis, MN Company continues to reinvest to add capacity and improve efficiency 2010 2009 2011 2012 2013 • New dryer Medford
Slide 14: Balance sheet supports planned growth initiatives
13 Balance sheet supports planned growth initiatives Balance Sheet Metrics Sep-30-2014 Dec-31-2013 ($millions) Net Debt Long-term debt due in 2020 301.5$ 301.6$ Cash & cash equivalents (170.0) (118.2) Net Debt 131.5$ 183.4$ Liquidity Postion ABL excess availability 328.2$ 258.3$ Cash & cash equivale
Slide 15: Appendix
Appendix
Slide 16: Composite Lumber Price 2011 - 2014
15 Composite Lumber Price 2011 - 2014 366 $200 $240 $280 $320 $360 $400 $440 $480 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 2011 2012 2013 2014 Week
Slide 17: Panel Composite 2011 – 2014
16 Panel Composite 2011 – 2014 390 $240 $280 $320 $360 $400 $440 $480 $520 $560 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 2011 2012 2013 2014 Week
Slide 18: Historical Financial Performance
17 Historical Financial Performance YTD Dollars in millions 2007 2008 2009 2010 2011 2012 2013 Sep-2014 Segment income (loss) $23.6 ($55.1) ($77.3) ($8.1) ($15.1) $55.8 $77.7 $84.9 Depreciation and amortization 30.0 27.7 33.0 27.1 28.4 24.4 28.7 30.7 Segment EBITDA $53.7 ($27.4) ($44.3) $19.0 $13.3
Slide 19: Total Company EBITDA Reconciliation
18 EBITDA represents income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. Adjusted EBITDA represents EBITDA as further adjusted to exclude certain special items. The following table reconciles net income (loss) to EBITDA and Adjusted
Slide 20: Segment EBITDA Reconciliations
19 Segment EBITDA represents segment income (loss) before depreciation and amortization. Adjusted segment EBITDA represents segment EBITDA as further adjusted to exclude certain special items. The following table reconciles segment income (loss) to segment EBITDA and adjusted segment EBITDA. Segment
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