Slide 1: Third Quarter 2023 Earnings Webcast
Boise Cascade Company Third Quarter 2023 Earnings Webcast October 31, 2023
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 Solid operating and financial performance Ø Good execution in both businesses Ø Resilient economy in rising rate environment Ø Stronger than anticipated new residential construction activity u Consolidated Results Ø 3Q23 sales were $1.8 billion, down 15% from 3Q22 Ø 3Q23 net inco
Slide 4: 3Q 2023 Financial Highlights
3Q 2023 Financial Highlights Sales Adjusted EBITDA (15)% $2,154.6 (34)% $1,834.4 $326.0 161.2 $ Millions $ Millions 1,956.8 $216.5 1,670.3 104.9 177.3 515.2 595.3 122.9 (351.1) (397.5) (11.3) (12.4) 3Q 2023 3Q 2022 3Q 2023 3Q 2022 n BMD n Wood n Eliminations n BMD n Wood Corporate October 31, 2023 4
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 80 5.2 69 4.9 70 65 64 64 5.0 4.6 4.6 4.7 63 60 4.0 3.6 50 3.2 3.0 39 40 30 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $2,600 2,553 2,429 $36 33.82 34.36 $2,400 $32 31.17 2,168 30.14 $2,200 28.47 29.08 2,066 2,088 2,035 $28 26.40 $2,000 1,877 $24
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 450 440 $800 406 400 390 393 $700 689 350 $600 569 329 317 300 $500 477 281 396 250 $400 382 367 365 200 $300 150 $200 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2022 2023 October 31, 2023 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $2,200 2,112 2,131 100 $2,000 1,957 19 22 21 21 23 23 25 $1,800 80 1,637 1,670 $1,600 1,444 1,379 29 $1,400 60 33 37 39 35 40 40 $1,200 $1,000 40 $800 $600 52 45 42 $400 20 40 40 37 37 $200 $0 0 1Q 2Q 3Q 4Q 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
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% 7.0% 6.9% 6.5% 6.3% 6.1% 6.0% 5.5% 6.0% 5.6% 4.0% 3.3% 4.0% 2.0% 2.0% —% —% 2019 2020 2021 2022 YTD Q3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2023 2022 2023 October 31, 2023 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 2020 2021 2022 2023 Source: Random Lengths October 31, 2023 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 2020 2021 2022 2023 Source: Random Leng
Slide 11: Capital Allocation
Capital Allocation u Capital Expenditures u Shareholder Returns Ø $99 million YTD Sept 2023 Ø $141 million in dividends paid YTD Sept 2023 l Wood - $31 million l BMD - $68 million Ø Board authorization of 4Q quarterly dividend of $0.20 per Ø $190 million - $210 million share and special dividend of
Slide 12: Brockway-Smith (BROSCO) Acquisition
Brockway-Smith (BROSCO) Acquisition u On October 2, 2023, closed on previously announced acquisition of Brockway-Smith Company (BROSCO), a leading wholesale distributor specializing in doors and millwork, for $168 million, inclusive of working capital of $51 million, which is subject to post- closin
Slide 13: Outlook
Outlook u Current estimates for 2023 housing starts are 1.4 million units, compared with actual starts of 1.55 million in 2022. Ø 2024 forecasts range from 1.3 million to 1.4 million units Ø Economic uncertainties, escalating mortgage rates, and home affordability will influence near-term demand u M
Slide 14: Appendix
Appendix October 31, 2023
Slide 15: Appendix
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconcile
Slide 16: Appendix
Appendix The following table reconciles segment income to EBITDA for the three months ended September 30, 2023 and 2022, and June 30, 2023: Three Months Ended ($ Millions) 3Q23 3Q22 2Q23 Wood Products Segment income $ 99.6 $ 156.0 $ 104.0 Depreciation and amortization 23.4 21.3 23.0 Segment EBITDA $