Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Q4 2023 Earnings Presentation
15 slides from Boise Cascade, L.l.c's earnings presentation, Feb 21, 2024
Slide 1: Fourth Quarter 2023 Earnings Webcast
Boise Cascade Company Fourth Quarter 2023 Earnings Webcast February 21, 2024
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, including, but not limited to, statements regardin
Slide 3: Executive Summary
Executive Summary u 2023 Highlights Ø Net income of $483.7 million, or EPS of $12.12, on sales of $6.8 billion Ø Resilient economy and stronger than anticipated new residential construction activity Ø Further execution of our growth strategies through organic and acquisition initiatives Ø Rewarded s
Slide 4: 4Q 2023 Financial Highlights
4Q 2023 Financial Highlights Sales Adjusted EBITDA 1% (15)% $1,644.3 $1,628.3 $ Millions $ Millions $188.2 1,492.6 1,443.8 $160.6 99.4 80.6 449.7 425.6 92.7 99.7 (298.0) (241.1) (12.7) (10.9) 4Q 2023 4Q 2022 4Q 2023 4Q 2022 n BMD n Wood n Eliminations n BMD n Wood Corporate February 21, 2024 4
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 80 5.2 69 4.9 70 65 64 64 5.0 4.6 4.6 4.7 63 4.1 60 54 4.0 3.6 50 3.2 3.0 39 40 30 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $2,600 2,553 2,429 $36 33.82 34.36 $2,400 $32 31.17 2,168 30.14 29.93 $2,200 2,093 28.47 29.08 2,066 2,088 2,035 $28 26.
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 450 440 $800 406 400 390 393 $700 689 363 350 $600 569 329 317 300 $500 477 281 396 250 $400 382 375 367 365 200 $300 150 $200 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2022 2023 February 21, 2024 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $2,200 2,112 2,131 100 $2,000 1,957 19 22 21 21 23 23 23 25 $1,800 80 1,637 1,670 $1,600 1,493 1,444 1,379 29 $1,400 60 33 37 39 35 40 40 40 $1,200 $1,000 40 $800 $600 52 45 42 $400 20 40 40 37 37 37 $200 $0 0 1Q 2Q 3Q 4Q 1Q22 2Q22 3Q22
Slide 8: Building Materials Distribution EBITDA
Building Materials Distribution EBITDA (EBITDA % of sales) 12.0% 12.0% 11.0% 10.0% 10.0% 8.6% 8.2% 8.0% 7.6% 8.0% 6.9% 7.0% 6.5% 6.3% 6.0% 6.0% 5.6% 5.4% 6.0% 5.5% 4.0% 4.0% 3.3% 2.0% 2.0% —% —% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2019 2020 2021 2022 2023 2022 2023 February 21, 2024 8
Slide 9: Lumber Composite Price
Lumber Composite Price First Quarter Second Quarter Third Quarter Fourth Quarter $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 2021 2022 2023 2024 Source: Random Lengths February 21, 2024 9
Slide 10: Panel Composite Price
Panel Composite Price First Quarter Second Quarter Third Quarter Fourth Quarter $1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week 2021 2022 2023 2024 Source: Random Leng
Slide 11: Capital Allocation
Capital Allocation u Capital Expenditures u Shareholder Returns Ø $215 million in 2023 Ø $346 million, or $8.70 per share, in dividends paid in 2023 l Wood - $59 million l BMD - $156 million Ø $6 million of share repurchases in 2023 Ø $250 million - $270 million planned for 2024 l Wood - $130 millio
Slide 12: Outlook
Outlook u Housing starts forecasts for 2024 are generally consistent with 2023 levels Ø Home affordability still a challenge, but new residential construction an important supply source for homebuyers Ø Optimistic for year over year growth in new single-family starts due to recent and anticipated fu
Slide 13: Appendix
Appendix February 21, 2024
Slide 14: Appendix: Net income to EBITDA reconciliation
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconcile
Slide 15: Appendix: Segment income to EBITDA reconciliation
Appendix The following table reconciles segment income to EBITDA for the three months ended December 31, 2023 and 2022, and September 30, 2023: Three Months Ended ($ Millions) 4Q23 4Q22 3Q23 Wood Products Segment income $ 64.1 $ 75.0 $ 99.6 Depreciation and amortization 28.6 24.7 23.4 Segment EBITDA