Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Investor Presentation (May 2016)
32 slides from Boise Cascade, L.l.c's investor presentation, May 9, 2016
Slide 1: Investor Presentation May 2016
Investor Presentation May 2016
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: Investment Highlights
2 Investment Highlights Leadership Positions in Wood Products Manufacturing and Building Materials Distribution on a National Scale Distinctive Competence in Managing Vertical Integration to Create Value Low-Cost Manufacturing and Distribution Footprint Driven by Business Models and Capital Investme
Slide 4: Business Strategy
3 Business Strategy • Grow in engineered wood products • Optimize veneer use within manufacturing system • Drive continuous improvement in cost position Wood Products Manufacturing • Leverage footprint in place • Grow market share Building Materials Distribution • Access to downstream customers • Le
Slide 5: EWP Acquisition Summary
4 EWP Acquisition Summary ■ Purchased Georgia-Pacific’s engineered lumber business for $215.6 million, subject to post-closing adjustments based on a working capital target Acquisition and transaction costs funded with cash on-hand, a new $75 million term loan, and a $55 million bank revolver draw
Slide 6: Manufacturing and Distribution Footprint
5 Manufacturing and Distribution Footprint ID FL NM DE MD TX OK KS NE SD ND MT WY CO UT AZ NV WA CA OR KY ME NY VT NH MA RI CT WV IN IL NC TN SC AL MS AR LA MO IA MN WI NJ GA DC VA MI OH PA Thorsby, AL Roxboro, NC Headquarters EWP Manufacturing Facilities (6) Plywood/Veneer Manufacturing Facilities
Slide 7: Overview – 2015 Product Sales
6 Overview – 2015 Product Sales Wood Products * $1,282.1 Million Building Materials Distribution $2,891.3 Million * Includes intersegment sales to BMD of $540.0 million
Slide 8: Overview – Primary Operations (2015)
7 Overview – Primary Operations (2015) Dry Veneer Production(1) 2,312 mmsf BCC Distribution Plywood/PLV Production 1,951 mmsf Sold as Plywood 1,635 mmsf Production LVL/Flange 20.1 mmcf I-joist 198 mmlf Sales LVL 13.1 mmcf I-joist 201 mmlf 1,951 mmsf veneer 361 mmsf veneer 26% of plywood volume 66% o
Slide 9: Leveraging “In-house” Distribution
8 Leveraging “In-house” Distribution
Slide 10: Overview – Wood Products
9 Overview – Wood Products 80 100 120 140 160 180 200 2010 2011 2012 2013 2014 2015 Ind e x e d t o 1 0 0 EWP Pricing and Volume LVL Price LVL Volume I-J Price I-J Volume 80 100 120 140 160 180 200 2010 2011 2012 2013 2014 2015 Ind e x e d t o 1 0 0 Plywood Price and Volume PWD Price PWD Volume 0 20
Slide 11: Overview – BMD
10 Overview – BMD 40 60 80 100 120 140 160 180 200 220 240 $0 $10 $20 $30 $40 $50 $60 $70 $80 2010 2011 2012 2013 2014 2015 Ind e x e d t o 1 0 0 E BIT D A $ Mil lion s EBITDA Sales Gross Margin Op Exp EBITDA Margin
Slide 12: Primary Driver of New Residential Construction
11 Population growth and resulting household formation key driver of new construction Cumulative immigration and natural increases will drive continued population growth Primary Driver of New Residential Construction
Slide 13: Increasing Influence of Millennials
12 Millennials entering stage of life where family formation typically begins Millennials and baby boomers shifting into differing stages of life Increasing Influence of Millennials
Slide 14: Housing starts will increase from here…
13 Population in 2013 (Millions) Households in 2013 (Millions) Housing starts will increase from here… Source: Harvard Joint Center for Housing Studies The large, diverse millennial generation is only now beginning to form households Black Hispanic Asian/Other White
Slide 15: Housing Recovery Expected to Continue
14 Household formation key driver of new construction New residential construction should return to long-term trend demand levels Housing Recovery Expected to Continue
Slide 16: Total Structural Panel Usage for North America
15 Total Structural Panel Usage for North America
Slide 17: Estimated Plywood Capacities
16 Estimated Plywood Capacities
Slide 18: Plywood Capacity by Region
17 Plywood Capacity by Region
Slide 19: Softwood Plywood Net Imports and Total Demand
18 Softwood Plywood Net Imports and Total Demand
Slide 20: Estimated EWP Capacities
19 Estimated EWP Capacities Total industry capacity of 125 million cubic feet includes veneer and stranded products
Slide 21: Overview – BMD Product Sales
20 Overview – BMD Product Sales $ Millions Product Examples 2015 Sales - $2,891 Key Services LVL Logistics I-joists Truckload shipments Glulams Break bulk / Packaging Mill direct shipments Composite Decking Siding Financial Metal Products Credit Housewrap Price Risk Mitigation - Commodities Rebar Sa
Slide 22: Overview – Capital Allocation
21 Overview – Capital Allocation
Slide 23: Capital Allocation Priorities
22 Capital Allocation Priorities ■ Support organic growth Newly acquired EWP facilities Modernization project at Florien, LA plywood operations (dryer completion 2Q 2016) ■ Pursue distribution acquisitions ■ Repurchase shares opportunistically Authorization for up to 2 million shares announced
Slide 24: Acquisition financing maintains financial flexibility
23 Acquisition financing maintains financial flexibility Balance Sheet Metrics Dec. 31, 2015 Mar. 31, 2016 ($millions) Net Debt Long-term debt 344.6$ 474.4$ Cash & cash equivalents (184.5) (81.2) Net Debt 160.1$ 393.2$ Liquidity Postion ABL excess availability (1) 258.6$ 288.9$ Cash & cash equivalen
Slide 25: Appendix
Appendix
Slide 26: Historical Financial Performance
25 Historical Financial Performance Dollars in millions 2011 2012 2013 2014 2015 Q1-2016 Segment income (loss) ($15.1) $55.8 $77.7 $108.4 $64.2 $5.9 Depreciation and amortization 28.4 24.4 28.7 41.5 43.3 11.6 Segment EBITDA $13.3 $80.2 $106.3 $149.8 $107.5 $17.5 Dollars in millions 2011 2012 2013 20
Slide 27: Total Company EBITDA Reconciliation and Supplemental Segment Information
26 EBITDA represents income (loss) before interest (interest expense, interest income and change in fair value of interest rate swaps), income taxes, and depreciation and amortization. Total Company EBITDA Reconciliation and Supplemental Segment Information 2011 2012 2013 2014 2015 Q1-2016 Dollars i
Slide 28: Housing Starts by Geography
27 Housing Starts by Geography Total starts (thousands) by state for period 2016 through 2020 Source: IHS Global Insights (March 2016)
Slide 29: Residential Improvement Spending by Geography
28 Residential Improvement Spending by Geography Total Real ($2009) Residential Improvement Expenditures (2016 through 2020) Source: FEA (December 2015)
Slide 30: Quarterly BCC Wood Products Realization vs Random Lengths Composite Indexes
29 Quarterly BCC Wood Products Realization vs Random Lengths Composite Indexes
Slide 31: Brazilian Real Exchange Rate
30 Brazilian Real Exchange Rate 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Thomson Eikon
Slide 32: Plywood Imports
Plywood Imports Boise Cascade U.S. Plywood Imports by Country Source: APA 60 Pe ee a ae |Brazil S& Canada Chile & Other Million Sq. Ft. 3/8" Basis x