Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Q3 2018 Earnings Presentation
16 slides from Boise Cascade, L.l.c's earnings presentation, Nov 6, 2018
Slide 1: Third Quarter 2018 Earnings Webcast
Boise Cascade Company Third Quarter 2018 Earnings Webcast November 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 3Q18 sales were $1.3 billion, up 9% from 3Q17. u 3Q18 net income was $13.8 million, or $0.35 per share, down from $0.81 per share in 3Q17. Ø Net income included $16.3 million, or $0.41 per share, of after-tax losses from a non-cash pension settlement charge and a non-cash impairm
Slide 4: 3Q 2018 Financial Highlights
3Q 2018 Financial Highlights Sales Adjusted EBITDA + 9% - (44)% $1,338.5 $1,226.6 $75.8 1,159.3 $ Millions $ Millions 1,045.6 $42.7 43.3 28.3 32.7 39.4 402.7 366.9 (6.9) (185.9) (18.2) (223.5) 3Q 2018 3Q 2017 3Q 2018 3Q 2017 n BMD n Wood n Eliminations & Other n BMD n Wood Corporate Slide 4 November
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 70 68 65 63 61 61 5.0 4.8 4.7 4.8 60 57 4.5 4.5 53 4.1 4.0 4.0 50 3.0 40 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $20 18.25 18.33 $1,300 1,261 $18 17.30 1,220 17.22 1,179 16.63 16.65 16.69 $1,200 1,157 1,116 1,124 $16 1,091 $1,100 $14 $1,000 $1
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 450 $400 379 405 356 357 400 $350 337 369 369 368 360 324 347 350 336 301 $300 282 300 $250 250 $200 200 $150 150 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 Slide 6 November 6, 2018
Slide 7: Lumber Composite Price
Lumber Composite Price $650 First Quarter Second Quarter Third Quarter Fourth Quarter $610 $570 $530 $490 $450 $410 $370 $330 337 $290 $250 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 42 43 44 45 47 49 51 Week 2016 2017 2018 Source: Random Lengths Slide 7 November 6, 2018
Slide 8: Panel Composite Price
Panel Composite Price $650 First Quarter Second Quarter Third Quarter Fourth Quarter $610 $570 $530 $490 $450 $410 387 $370 $330 $290 $250 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 42 43 44 45 47 49 51 Week 2016 2017 2018 Source: Random Lengths Slide 8 November 6, 2018
Slide 9: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $1,400 100 1,214 20 19 18 18 19 18 19 $1,200 1,159 1,046 80 992 981 $1,000 932 34 32 32 32 33 816 34 35 60 $800 $600 40 $400 46 46 48 50 49 50 48 20 $200 $0 0 1Q 2Q 3Q 4Q 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2017 2018 Commodity General Li
Slide 10: Working Capital
Working Capital ($ Millions) 9/30/2018 6/30/2018 Change Receivables $ 328.7 $ 375.2 $ (46.5) Inventory 559.4 572.6 (13.2) Other current assets (a) 11.8 13.4 (1.6) 900.0 961.2 (61.2) Accounts payable 304.3 351.7 (47.3) Accrued liabilities (b) 161.7 159.1 2.6 466.1 510.8 (44.7) Net working capital $ 4
Slide 11: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 9/30/2018 6/30/2018 Net Debt Total Debt $ 439.1 $ 438.9 Cash & cash equivalents (181.3) (210.0) Net Debt $ 257.8 $ 228.9 Liquidity Position Bank lines excess availability $ 395.4 $ 395.4 Cash & cash equivalents 181.3 210.0 Total liquidity $ 576.7 $ 605.4 Sl
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities u Strategic capital spending in Wood Products: Ø Log utilization center upgrade and dryer replacement at Chester, SC. Ø Log utilization center upgrade at Florien, LA. u Increase in quarterly dividend from $0.07 to $0.09. u BMD fill-in acquisitions. Slide 12 November 6,
Slide 13: Outlook
Outlook u Current consensus estimate for 2018 U.S. housing starts is 1.28 million, up about 7% from 1.20 million million in 2017. u Pace of housing recovery being constrained by a number of factors, including affordability and construction labor. Consensus forecast for 2019 housing starts is 1.32 mi
Slide 14: Appendix
Boise Cascade Appendix November 6, 2018
Slide 15: Appendix
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of
Slide 16: Appendix
Appendix The following table reconciles segment income to EBITDA for the three months ended September 30, 2018 and 2017, and June 30, 2018: Three Months Ended ($ Millions) 3Q18 3Q17 2Q18 Wood Products Segment income $ 13.9 $ 24.0 $ 36.5 Depreciation and amortization 18.7 15.3 19.5 Segment EBITDA $ 3
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