Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Q4 2018 Earnings Presentation
16 slides from Boise Cascade, L.l.c's earnings presentation, Feb 26, 2019
Slide 1: Fourth Quarter 2018 Earnings Webcast
Boise Cascade Company Fourth Quarter 2018 Earnings Webcast February 26, 2019
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: Strategic Objectives
Strategic Objectives u Wood Products: – Grow our operations with a continued focus on expanding our market position in EWP – Continue to improve our competitiveness through operational excellence u Distribution: – Grow market share – Further differentiate our products and services February 26, 2019
Slide 4: Strategic Progress
Strategic Progress u Wood Products: – Pursuing operational excellence and reliability – Capital spending aimed at veneer self-sufficiency and cost reductions – Rationalized operating footprint u Distribution: – Acquisitions in Tennessee, Oregon, and Ohio – Broadening customer base, product lines, an
Slide 5: Management Transitions
Management Transitions u Nate Jorgensen named COO as part of succession plan u Mike Brown taking over leadership of Wood Products, with Dan Hutchinson retiring April 1 u Erin Nuxoll promoted to SVP of HR u Jill Twedt promoted to general counsel u John Sahlberg retiring as SVP of HR and general couns
Slide 6: Executive Summary
Executive Summary u 4Q18 sales were $1.1 billion, down 2% from 4Q17. u 4Q18 net loss of $72.2 million, or $1.85 per share, compared to net income of $19.1 million, or $0.49 per share, in 4Q17. Ø $55.0 million and $2.8 million of pre-tax accelerated depreciation and other closure related costs, respe
Slide 7: 4Q 2018 Financial Highlights
4Q 2018 Financial Highlights Sales Adjusted EBITDA (2)% $1,065.8 $1,092.0 $ Millions $ Millions 922.2 931.8 $43.9 26.9 $(9.0) 307.1 330.9 24.2 13.8 (15.3) (7.2) (163.6) (170.7) (7.5) 4Q 2018 4Q 2017 4Q 2018 4Q 2017 n BMD n Wood n Eliminations & Other n BMD n Wood Corporate February 26, 2019 7
Slide 8: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 70 68 65 63 61 61 5.0 4.8 4.7 4.8 60 57 4.5 4.5 53 4.1 4.0 4.0 3.6 50 45 3.0 40 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $20 18.73 $1,300 1,261 18.25 18.33 $18 17.30 1,220 1,213 17.22 1,179 16.63 16.65 16.69 $1,200 1,157 1,116 1,124 $16 1,091 $
Slide 9: 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 $350 337 369 369 368 360 324 347 306 350 336 301 326 $300 282 300 $250 250 $200 200 $150 150 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 February 26, 2019 9
Slide 10: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $1,400 100 1,214 20 19 18 18 19 18 19 19 $1,200 1,159 1,046 80 992 981 $1,000 932 922 34 32 32 32 33 816 34 35 35 60 $800 $600 40 $400 46 46 48 50 49 50 48 46 20 $200 $0 0 1Q 2Q 3Q 4Q 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Co
Slide 11: Working Capital
Working Capital ($ Millions) 12/31/2018 9/30/2018 Change Receivables $ 229.2 $ 328.7 $ (99.4) Inventory 533.0 559.4 (26.4) Other current assets (a) 7.8 11.8 (4.0) 770.1 900.0 (129.9) Accounts payable 211.7 304.3 (92.7) Accrued liabilities (b) 151.4 161.7 (10.3) 363.1 466.1 (103.0) Net working capita
Slide 12: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 12/31/2018 9/30/2018 Net Debt Total debt $ 439.4 $ 439.1 Cash & cash equivalents (191.7) (181.3) Net debt $ 247.8 $ 257.8 Liquidity Position Bank line excess availability $ 364.6 $ 395.4 Cash & cash equivalents 191.7 181.3 Total liquidity $ 556.3 $ 576.7 Fe
Slide 13: Outlook
Outlook u Expect final 2018 U.S. housing starts to be reported at around 1.25 million, up 4% from 1.20 million million in 2017. A decline in the median single- family home size has offset some of the benefit of the increase in starts. u Pace of housing recovery being constrained by a number of facto
Slide 14: Appendix
joise Cascade @~=— 4 ae = L—=£r¢ — a Appendix February 26, 2019
Slide 15: Appendix
Appendix EBITDA represents income (loss) 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 extinguishm
Slide 16: Appendix
Appendix The following table reconciles segment income (loss) to EBITDA for the three months ended December 31, 2018 and 2017, and September 30, 2018: Three Months Ended ($ Millions) 4Q18 4Q17 3Q18 Wood Products Segment income (loss) $ (86.6) $ 6.8 $ 13.9 Depreciation and amortization 71.3 17.4 18.7
Boise Cascade Company — Q4 2018 Earnings Presentation on 6ix