Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Q2 2018 Earnings Presentation
15 slides from Boise Cascade, L.l.c's earnings presentation, Aug 6, 2018
Slide 1: Second Quarter 2018 Earnings Webcast
Boise Cascade Company Second Quarter 2018 Earnings Webcast August 6, 2018
Slide 2: Forward-Looking Statements
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. The accuracy of such statements is subject to a nu
Slide 3: Executive Summary
Executive Summary u 2Q18 sales were $1.4 billion, up 24% from 2Q17. u 2Q18 net income was $41.8 million, or $1.06 per share, up from $0.57 per share in 2Q17. Net income included $9.0 million, or $0.23 per share, of after-tax losses from non-cash pension settlement charges. u Wood Products reported 2
Slide 4: 2Q 2018 Financial Highlights
2Q 2018 Financial Highlights Sales Adjusted EBITDA + 24% + 38% $ 1,408.1 $85.8 $ 1,138.9 1,213.8 52.2 $62.1 $ Millions $ Millions 980.7 38.4 55.9 425.5 30.7 350.3 (7.0) (231.1) (192.0) (22.3) 2Q 2018 2Q 2017 2Q 2018 2Q 2017 n BMD n Wood n Eliminations & Other n BMD n Wood Corporate Slide 4 August 6,
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 70 68 65 63 4.8 4.7 4.8 61 5.0 4.5 60 57 4.1 4.0 53 4.0 50 3.0 40 2.0 30 1.0 0.0 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) 18.25 ($/melf) $18 17.30 17.22 $1,300 16.63 16.65 16.69 1,220 $1,200 1,179 1,157 $16 1,116 1,124 1,091 $1,100 $14 $1,000 $900 $12 $800
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 450 $400 379 405 356 400 $350 337 360 369 369 324 347 301 350 336 $300 282 300 $250 250 $200 200 $150 150 $100 100 50 $50 0 $0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 Slide 6 August 6, 2018
Slide 7: Panel Composite Price
Boise Cascade Panel Composite Price a First Quarter Second Quarter ! Third Quarter \ Fourth Quarter $560 ! as T $520 / \ aan 80 t ' t $4) rj \ 462 ' Se 1 T 1 1 1 T 1 1 1 TTT 1 $320 ! ! ! $280 13 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 41 43 45 47 49 51 Week Source: Random Lengths 2016 2017 2
Slide 8: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $1,400 100 1,214 20 19 18 18 19 18 $1,200 1,046 80 992 981 $1,000 932 34 32 32 32 816 34 35 60 $800 $600 40 $400 46 46 48 50 49 50 20 $200 $0 0 1Q 2Q 3Q 4Q 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 2017 2018 Commodity General Line EWP Slide 8 Augus
Slide 9: Working Capital
Working Capital Balance Sheet Items ($ Millions) 6/30/2018 3/31/2018 Change Receivables $ 375.2 $ 349.0 $ 26.1 Inventory 572.6 538.7 33.9 Other current assets (a) 13.4 10.6 2.8 961.2 898.4 62.8 Accounts payable 351.7 314.3 37.4 Accrued liabilities (b) 159.1 111.8 47.3 510.8 426.0 84.7 Net working ca
Slide 10: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 6/30/2018 3/31/2018 Net Debt Total Debt $ 438.9 $ 438.6 Cash & cash equivalents (210.0) (134.7) Net Debt $ 228.9 $ 303.9 Liquidity Position Bank lines excess availability $ 395.4 $ 395.3 Cash & cash equivalents 210.0 134.7 Total liquidity $ 605.4 $ 530.0 Sl
Slide 11: Capital Allocation Priorities
Capital Allocation Priorities u Strategic capital spending in Wood Products: Ø Log utilization center upgrade and dryer replacement at Chester, SC. u BMD fill-in acquisitions. u Additional $1.00 per share dividend payable September 17. u $20 million discretionary pension contribution. Slide 11 Augus
Slide 12: Outlook
Outlook u Current consensus estimate for 2018 U.S. housing starts is 1.32 million, up about 10% from 1.20 million million in 2017. u Long-term demand fundamentals expected to support recovery in U.S. housing to 1.4 to 1.5 million starts over next few years. u Operational focus in Wood Products: Ø Co
Slide 13: Appendix
Boise Cascade Appendix August 6, 2018
Slide 14: Appendix
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of
Slide 15: Appendix
Appendix The following table reconciles segment income to EBITDA for the three months ended June 30, 2018 and 2017, and March 31, 2018: Three Months Ended ($ Millions) 2Q18 2Q17 1Q18 Wood Products Segment income $ 36.5 $ 15.4 $ 26.1 Depreciation and amortization 19.5 15.3 17.5 Segment EBITDA $ 55.9
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