Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Investor Presentation (December 2013)
27 slides from Boise Cascade, L.l.c's investor presentation, Dec 11, 2013
Slide 1: Boise Cascade Company Investor Presentation December 2013
0 Boise Cascade Company Investor Presentation July 2013 Investor Presentation December 2013
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: Company at a Glance
2 Company at a Glance Pro Forma Sales (1) (LTM Sep-2013) $3,308 million Note: 9/30/13 LTM pro forma sales and EBITDA have been calculated to give effect to the acquisition of Chester Wood Products LLC and Moncure Plywood LLC (acquired 9/30/13). (1) Segment percentages are calculated before intersegm
Slide 4: Facilities
3 Facilities 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 Headquarters EWP Manufacturing Facilities (4) Plywood/Veneer Manufacturing Facilities (9) Lumber Manufacturing Facilities (5) Particleboard
Slide 5: Vertical Integration Drives Value
4 BCC’s focus is to optimize the “Value Chain” from raw material procurement (e.g., logs) through wholesale distribution • Manufacturing has superior access and visibility to the market through committed distributor • BMD benefits from committed manufacturing partnership • Joint service offering pro
Slide 6: Wood Products Manufacturing Segment Description
5 • Market leading positions across portfolio • #2 EWP producer in North America • #2 plywood producer in North America • Leading producer of Ponderosa Pine lumber • Vertically-integrated from logs to distribution • Allows for optimization and reliable supply • Long-term wood supply agreements • Acc
Slide 7: Wood Products Manufacturing – Plywood
6 Wood Products Manufacturing – Plywood
Slide 8: Favorable Plywood Industry Dynamics
7 Source: RISI. (Billion square ft. 3/8-inch basis) Industry Plywood Demand 20 18 17 17 17 17 16 15 12 10 11 11 11 11 11 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E Plywood Available Capacity Favorable Plywood Industry Dynamics
Slide 9: Wood Products Manufacturing Engineered Wood Products (EWP)
8 Wood Products Manufacturing Engineered Wood Products (EWP) LVL I-Joist
Slide 10: Wood Products Manufacturing Engineered Wood Products
9 Wood Products Manufacturing Engineered Wood Products EWP primarily used in new residential construction • Increased use in residential construction • Stronger and longer than lumber • Fewer pieces used • Open rooms and taller walls • Lower installed cost • Reduced need for skilled labor • Simplifi
Slide 11: Real Growth in BCC’s EWP Sales
10 Real Growth in BCC’s EWP Sales Usage of EWP per start per start increasing significantly
Slide 12: BCC’s EWP Operating Rate, LVL Utilization, Volume and Pricing
11 68% 63% 41% 29% 36% 39% 52% 63% 2006 2007 2008 2009 2010 2011 2012 YTD 9/30/13 Housing Starts (1) (mm): 1.801 1.355 0.906 0.554 0.587 0.609 0.780 0.696(2) BCC’s EWP Operating Rate BCC LVL Press Utilization BCC LVL Sales Volume and Pricing Significant excess LVL capacity to meet growing demand Sou
Slide 13: BCC’s Manufacturing Value Chain
12 BCC’s 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 14: BCC’s Unique Value Chain
13 BCC’s Unique Value Chain EWP Veneer Plywood Lumber Pulp Mills Particleboard Building Materials Distribution Independent Wholesalers Retail Lumberyards (Pro Dealers) Home Improvement Centers Industrial Converters Third-Party Building Products Wood Products
Slide 15: Building Materials Distribution
14 Building Materials Distribution • One of largest U.S. wholesale building products distributors with 31 facilities • Broad product line • 3.9 million square feet of warehouse space • 1,000 – 3,000 SKUs per location • ~75% new residential / ~25% repair & remodel, and industrial and other • More tha
Slide 16: Distribution Channels
15 Distribution Channels MANUFACTURING EXPORT OFFICE WHOLESALERS STOCKING WHOLESALERS BUYING GROUPS COMMERCIAL INDUSTRIAL HOME BUILDER LBM DEALERS PROFESSIONAL REPAIR AND REMODEL HOME CENTERS CONSUMER DO-IT- YOURSELF REPAIR AND REMODEL NEW RESIDENTIAL Distribution provides distinctive logistics and
Slide 17: BCC’s National Distribution Platform
16 Capable of handling demands of national retail/contractor yard distributors, but have local market focus. Independent Pro Dealers Pro Dealer Chains Industrial / Other Home Centers Key Suppliers BCC’s National Distribution Platform 54% 21% 16% 9% Key Customers Customer Sales Breakdown
Slide 18: Growth Strategies
17 Growth Strategies • Grow in existing geographic markets/branches • Leverage advantages of national scale • Opportunistically expand into adjacent markets • Leverage Wood Products sales through internal distribution Significant Available Capacity Ample capacity to leverage opportunities that provi
Slide 19: New Residential Construction
18 New Residential Construction New residential construction primary driver
Slide 20: BCC’s Growth and Value Enhancement Strategies
19 BCC’s Growth and Value Enhancement Strategies • Leverage Distribution relationship to drive returns • Continue to lower production costs • Optimize veneer utilization between EWP and plywood operations • Increase veneer production to support profitable growth • Reinvest to enhance competitive pos
Slide 21: Acquisitions
20 Acquisitions • Pursue opportunistic acquisitions • Veneer based • Wood basket efficiency • Distribution footprint • Evaluate opportunities that would extend Manufacturing’s and/or Distribution’s product line • Screening criteria: • Return on invested capital • Likely, wood fiber based products •
Slide 22: 2014 Outlook
21 2014 Outlook • Continued improvement in new residential construction • Increased demand for EWP • Higher sales volume and improved operating rates • Leverage on fixed costs • Top-line gains and fixed cost leverage in Distribution • Improved residential construction spending in both new constructi
Slide 23: Investment Highlights
22 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 Significant Capital Investment and
Slide 24: Appendix
Appendix
Slide 25: Historical Financial Performance
24 Historical Financial Performance (1) Gives effect to the acquisition of Chester Wood Products LLC and Moncure Plywood LLC (acquired 9/30/13). LTM Dollars in Millions 2009 2010 2011 2012 (1) Sept-2013 (1) Building Materials Distribution $1,610 $1,778 $1,779 $2,190 $2,537 Wood Products 551 687 712
Slide 26: Total Company EBITDA Reconciliation
25 Total Company EBITDA Reconciliation 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 i
Slide 27: Segment EBITDA Reconciliations
26 Segment EBITDA Reconciliations 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 a
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