Slide 1: Second Quarter 2020 Earnings Webcast and COVID-19 Business Update
Boise Cascade Company Second Quarter 2020 Earnings Webcast and COVID-19 Business Update August 3, 2020
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 2Q20 sales were $1.2 billion, up 1% from 2Q19. u 2Q20 net income was $33.6 million, or $0.85 per share, compared to net income of $27.7 million, or $0.71 per share, in 2Q19. u Wood Products reported 2Q20 segment income of $17.1 million, compared to segment income of $18.9 million
Slide 4: 2Q 2020 Financial Highlights
2Q 2020 Financial Highlights Sales Adjusted EBITDA 1% 11% $1,242.8 $1,230.1 $71.8 $64.5 48.8 $ Millions $ Millions 38.8 1,134.3 1,097.4 31.0 33.0 281.5 334.3 (8.0) (7.3) (173.0) (201.6) 2Q 2020 2Q 2019 2Q 2020 2Q 2019 n BMD n Wood n Eliminations n BMD n Wood Corporate August 3, 2020 4
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 70 59 60 60 5.0 4.7 4.6 4.6 60 4.3 4.3 54 52 3.8 50 4.0 50 3.0 40 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $20 18.87 $1,300 1,266 1,276 1,279 1,260 1,268 1,266 18.50 18.70 18.36 18.59 18.51 $18 $1,200 $16 $1,100 $14 $1,000 $12 $900 $10 $800 1Q
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 400 $400 350 343 343 $350 336 318 314 315 300 $300 287 287 267 272 254 251 250 $250 200 $200 150 $150 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2019 2020 August 3, 2020 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $1,400 100 20 20 19 21 20 17 $1,200 1,134 1,146 1,097 1,050 80 987 $1,000 908 36 40 38 40 60 39 38 $800 $600 40 $400 20 44 41 41 41 42 43 $200 $0 0 1Q 2Q 3Q 4Q 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2019 2020 Commodity General Line EWP August 3,
Slide 8: Lumber Composite Price
Lumber Composite Price First Quarter Second Quarter Third Quarter Fourth Quarter $650 627 $610 $570 $530 $490 $450 $410 $370 $330 $290 $250 1 3 5 7 9 11 13 15 17 18 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week 2017 2018 2019 2020 Source: Random Lengths August 3, 2020 8
Slide 9: Panel Composite Price
Panel Composite Price First Quarter Second Quarter Third Quarter Fourth Quarter $650 635 $610 $570 $530 $490 $450 $410 $370 $330 $290 $250 1 3 5 7 9 11 13 15 17 18 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week 2017 2018 2019 2020 Source: Random Lengths August 3, 2020 9
Slide 10: Working Capital
Working Capital ($ Millions) 6/30/2020 3/31/2020 Change Receivables $ 360.9 $ 340.1 $ 20.7 Inventory 456.1 536.3 (80.2) Other current assets (a) 14.7 10.9 3.8 831.7 887.4 (55.7) Accounts payable 322.7 309.7 13.0 Accrued liabilities (b) 148.5 127.5 21.0 471.2 437.2 34.0 Net working capital $ 360.5 $
Slide 11: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 6/30/2020 3/31/2020 Net Debt Total debt $ 440.2 $ 439.9 Cash & cash equivalents (361.4) (215.0) Net debt $ 78.7 $ 224.9 Liquidity Position Bank line excess availability $ 345.4 $ 345.4 Cash & cash equivalents 361.4 215.0 Total liquidity $ 706.8 $ 560.4 Augu
Slide 12: COVID-19 Business Update
COVID-19 Business Update u Restrictions were loosened or rescinded, construction activity resumed mid- quarter and continued at a robust pace through the end of the quarter. Ø Wood Products in process of attempting to restore production rates to pre- COVID-19 levels in response to strong end-product
Slide 13: Outlook
Outlook u Current consensus estimate for 2020 U.S. housing starts is 1.19 million, down 8% from 2019 levels. Longer-term impact of COVID-19 on residential housing preferences and new construction is uncertain, but near term demand remains favorable. u Operational focus in Wood Products: Ø Order file
Slide 14: Appendix
joise Cascade @~=— 4 ae = aes ti a Appendix August 3, 2020
Slide 15: 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. The following table reconcile
Slide 16: Appendix
Appendix The following table reconciles segment income to EBITDA for the three months ended June 30, 2020 and 2019, and March 31, 2020: Three Months Ended ($ Millions) 2Q20 2Q19 1Q20 Wood Products Segment income $ 17.1 $ 18.9 $ 3.8 Depreciation and amortization 13.9 14.1 29.6 Segment EBITDA $ 31.0 $