Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Investor Presentation (December 2015)
24 slides from Boise Cascade, L.l.c's investor presentation, Dec 9, 2015
Slide 1: Boise Cascade Company Investor Presentation
0 Boise Cascade Company Investor Presentation July 2013 Investor Presentation December 2015
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 LTM Sept-2015 Sales (1) $3,619 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 (Manufacturing) •
Slide 4: Vertical Integration Drives Value Proposition
3 Vertical Integration Drives Value Proposition • Manufacturing has superior access to the market through committed distributor • BMD benefits from committed manufacturing partnership • Joint service offerings provide unique and significant value to customers • On Manufacturing sales through BMD, we
Slide 5: Overview: Manufacturing and BMD Facilities
4 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 6: Wood Products Manufacturing Value Chain
5 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 7: North American Softwood Plywood Capacity
6 North American Softwood Plywood Capacity
Slide 8: Softwood Plywood Net Imports and Total Demand
7 Softwood Plywood Net Imports and Total Demand
Slide 9: Quarterly BCC Wood Products Realization vs Random Lengths Composite Indexes
8 Quarterly BCC Wood Products Realization vs Random Lengths Composite Indexes
Slide 10: Total Structural Panel Usage for North America
9 Total Structural Panel Usage for North America
Slide 11: Wood Products Manufacturing: LVL
10 Housing Starts (mm): 1.801 1.355 0.906 0.554 0.587 0.609 0.781 0.925 1.003 0.854 Wood Products Manufacturing LVL Operating Rate Industry’s LVL Press Utilization BCC’s LVL Sales Volume and Pricing Industry operating rates moving higher in EWP
Slide 12: Wood Products Manufacturing: I-joists
11 Wood Products Manufacturing I-joists Operating Rate Industry’s I-joists Utilization BCC’s I-joists Sales Volume and Pricing Industry operating rates moving higher in EWP Housing Starts (mm): 1.801 1.355 0.906 0.554 0.587 0.609 0.781 0.925 1.003 0.854
Slide 13: Organic Growth in Distribution
12 Organic Growth in Distribution
Slide 14: Leveraging In-house Distribution
13 Leveraging “In-house” Distribution
Slide 15: Composite Lumber Price 2012 - 2015
14 Composite Lumber Price 2012 - 2015
Slide 16: Panel Composite 2012 – 2015
15 Panel Composite 2012 – 2015
Slide 17: Housing Recovery Expected to Continue
16 Household formation key driver of new construction New residential construction should return to long-term trend demand levels Housing Recovery Expected to Continue
Slide 18: Housing Recovery Expected to Continue
17 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 BMD growth driven primarily by increases in new single-family construction • EWP currently operating near
Slide 19: Balance sheet supports planned growth initiatives
18 Balance sheet supports planned growth initiatives Balance Sheet Metrics Sep-30-2015 Dec-31-2014 ($millions) Net Debt Long-term debt 351.3$ 301.4$ Cash & cash equivalents (212.8) (163.5) Net Debt 138.5$ 137.9$ Liquidity Postion ABL excess availability 292.7$ 266.8$ Cash & cash equivalents 212.8 16
Slide 20: Capital Allocation Priorities
19 Capital Allocation Priorities ■ Accelerate organic growth New dryer at South Carolina plywood operation (completed late 2Q-2015) N.E. Oregon log utilization center upgrade (completed late 3Q-2015) Modernization project at Florien, LA plywood operations (estimated completion 2H-2016) ■ Pursu
Slide 21: Appendix
Appendix
Slide 22: Historical Financial Performance
21 Historical Financial Performance YTD Dollars in millions 2010 2011 2012 2013 2014 Q3-2015 Segment income (loss) ($8.1) ($15.1) $55.8 $77.7 $108.4 $66.5 Depreciation and amortization 27.1 28.4 24.4 28.7 41.5 32.2 Segment EBITDA $19.0 $13.3 $80.2 $106.3 $149.8 $98.7 Litigation gain (0.5) - - - - -
Slide 23: Total Company EBITDA Reconciliation
22 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 24: Brazilian Real Exchange Rate
23 Brazilian Real Exchange Rate
BOISE CASCADE — Investor Presentation (December 2015) on 6ix