Slide 1: Second Quarter 2022 Earnings Webcast
Boise Cascade Company Second Quarter 2022 Earnings Webcast August 2, 2022
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 Wood Products completed acquisition of Coastal Plywood on July 25th. u 2Q22 sales were $2.3 billion, down 7% from 2Q21. u 2Q22 net income was $218.1 million, or $5.49 per share, compared to net income of $302.6 million, or $7.62 per share, in 2Q21. u Wood Products reported 2Q22 s
Slide 4: 2Q 2022 Financial Highlights
2Q 2022 Financial Highlights Sales Adjusted EBITDA $430.3 $2,443.2 $2,278.1 (26)% (7)% $317.2 212.3 2,172.7 2,131.2 $ Millions 161.0 $ Millions 227.9 594.6 167.8 536.0 (389.2) (324.2) (11.6) (9.8) 2Q 2022 2Q 2021 2Q 2022 2Q 2021 n BMD n Wood n Eliminations n BMD n Wood Corporate August 2, 2022 4
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 80 76 76 72 5.0 4.7 4.6 69 4.6 4.6 4.5 70 67 4.4 65 4.0 60 3.0 50 2.0 1Q 2Q 3Q 4Q 40 1Q 2Q 3Q 4Q ($/cf) ($/melf) $2,100 2,066 $30 28.47 $2,000 $28 1,877 26.40 25.96 $1,900 1,822 $26 $1,800 $24 22.30 $1,700 $22 1,575 19.63 $1,600 $20 19.00 $1,500 $18
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 400 $900 878 $800 350 338 317 689 314 $700 303 304 300 281 $600 569 556 561 250 $500 401 $400 200 $300 150 $200 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2021 2022 August 2, 2022 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) 2,173 2,131 100 $2,200 2,112 16 14 $2,000 21 23 19 22 $1,800 1,721 80 1,635 1,646 $1,600 26 29 29 $1,400 34 33 60 33 $1,200 $1,000 40 $800 60 $600 55 52 45 44 45 20 $400 $200 $0 0 1Q 2Q 3Q 4Q 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2021 2022 Comm
Slide 8: 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 2019 2020 2021 2022 Source: Random Lengths August 2, 2022 8
Slide 9: 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 $200 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week 2019 2020 2021 2022 Source: Random Leng
Slide 10: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 6/30/2022 3/31/2022 Net Debt Total debt $ 445.0 $ 444.8 Cash & cash equivalents (1,033.0) (922.7) Net debt (cash) $ (588.0) $ (477.9) Liquidity Position Bank line excess availability $ 346.0 $ 346.0 Cash & cash equivalents 1,033.0 922.7 Total liquidity $ 1,
Slide 11: Coastal Plywood Acquisition - Transaction Summary
Coastal Plywood Acquisition - Transaction Summary u On July 25th closed on the purchase of Coastal Plywood Company for $517 million, inclusive of estimated working capital at closing of $27 million. u Two manufacturing locations: Ø Chapman, AL: 240 MMSF of plywood capacity Ø Havana, FL: 290 MMSF of
Slide 12: Coastal Plywood Acquisition - Strategic Rationale & Fit
Coastal Plywood Acquisition - Strategic Rationale & Fit u Improves ability to support southern and eastern housing construction u Provides incremental stress rated veneer Ø Removes constraint for full utilization of existing southeast U.S. EWP production capacity Ø Provides avenue for EWP capacity g
Slide 13: Coastal Plywood Acquisition - Expectations & Plans
Coastal Plywood Acquisition - Expectations & Plans u EPS accretive in 2022 u EBITDA impacts Ø Coastal’s three-year average EBITDA (excluding extraordinary 2021) was ~$50 million Ø Expect mid-cycle EBITDA impact of $80 million when fully integrated u Southeast operations capital spending of ~$50 mill
Slide 14: Outlook
Outlook u Current estimates for 2022 housing starts around 1.6 million, flat from 2021 levels. Ø Expect pace of new residential construction to slow in the second half of 2022. Ø At or near low-double digit declines in 2023 anticipated by many economists. u Primary drivers of repair-and-remodeling a
Slide 15: Appendix
AL AS 7 LN Boise Cascade’ Appendix August 2, 2022
Slide 16: Appendix: Net income to EBITDA reconciliation
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconcile
Slide 17: Appendix: Segment income to EBITDA reconciliation
Appendix The following table reconciles segment income to EBITDA for the three months ended June 30, 2022 and 2021, and March 31, 2022: Three Months Ended ($ Millions) 2Q22 2Q21 1Q22 Wood Products Segment income $ 154.1 $ 213.8 $ 190.1 Depreciation and amortization 13.7 14.1 13.6 Segment EBITDA $ 16