Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Q3 2019 Earnings Presentation
14 slides from Boise Cascade, L.l.c's earnings presentation, Nov 7, 2019
Slide 1: Boise Cascade Company Third Quarter 2019 Earnings Webcast
Boise Cascade Company Third Quarter 2019 Earnings Webcast November 7, 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: Executive Summary
Executive Summary u 3Q19 sales were $1.3 billion, down 5% from 3Q18. u 3Q19 net income was $27.2 million, or $0.69 per share, up from $0.35 per share in 3Q18. Ø Current year results include $1.0 million of net after-tax losses, or $0.03 per share, from a non-cash pension settlement charge. Ø Prior y
Slide 4: 3Q 2019 Financial Highlights
3Q 2019 Financial Highlights Sales Adjusted EBITDA (5)% 50% $1,338.5 $1,269.5 $64.1 $ Millions 1,159.3 $ Millions $42.7 1,145.6 43.9 28.3 30.8 32.7 325.1 402.7 (10.7) (18.2) (201.2) (223.5) 3Q 2019 3Q 2018 3Q 2019 3Q 2018 n BMD n Wood n Eliminations & Other n BMD n Wood Corporate November 7, 2019 4
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 70 68 63 60 61 60 5.0 4.8 4.8 4.6 4.5 4.6 60 4.3 52 4.0 3.6 50 45 3.0 40 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $20 1,279 18.87 $1,300 1,266 1,261 1,268 18.70 18.73 18.25 18.33 18.59 1,220 1,213 $18 17.30 $1,200 1,179 $16 $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) 400 $400 379 369 368 360 356 357 350 343 343 $350 336 326 306 300 $300 287 272 254 250 $250 200 $200 150 $150 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2018 2019 November 7, 2019 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $1,400 100 1,214 19 18 19 19 20 20 19 $1,200 1,159 1,146 1,097 80 992 $1,000 922 908 32 32 33 35 36 60 39 40 $800 $600 40 $400 49 50 48 46 20 44 41 41 $200 $0 0 1Q 2Q 3Q 4Q 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 2018 2019 Commodity General
Slide 8: Working Capital
Working Capital ($ Millions) 9/30/2019 6/30/2019 Change Receivables $ 311.9 $ 328.7 $ (16.7) Inventory 492.6 524.5 (31.9) Other current assets (a) 13.5 15.1 (1.6) 818.1 868.3 (50.2) Accounts payable 289.1 275.2 13.9 Accrued liabilities (b) 153.9 142.2 11.7 443.0 417.4 25.6 Net working capital $ 375.
Slide 9: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 9/30/2019 6/30/2019 Net Debt Total debt $ 440.3 $ 440.0 Cash & cash equivalents (306.4) (202.4) Net debt $ 133.8 $ 237.6 Liquidity Position Bank line excess availability $ 365.4 $ 365.4 Cash & cash equivalents 306.4 202.4 Total liquidity $ 671.8 $ 567.8 Nov
Slide 10: Outlook
Outlook u Current consensus estimate for 2019 U.S. housing starts is 1.25 million, which is flat with 2018 levels. u Pace of housing recovery being constrained by a number of factors, including affordability and construction labor availability. Consensus forecast for 2020 housing starts is 1.27 mill
Slide 11: Appendix
joise Cascade @~=— 4 ae = L—=£r¢ — a Appendix November 7, 2019
Slide 12: 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 13: Appendix: Segment Income to EBITDA Reconciliation
Appendix The following table reconciles segment income to EBITDA for the three months ended September 30, 2019 and 2018, and June 30, 2019: Three Months Ended ($ Millions) 3Q19 3Q18 2Q19 Wood Products Segment income $ 15.6 $ 13.9 $ 18.9 Depreciation and amortization 15.3 18.7 14.1 Segment EBITDA $ 3
Slide 14: Appendix: 2018 Transactions
Appendix 2018 Transactions u 2Q 2018 Ø $12.0 million of pre-tax pension settlement charges, or $0.23 per share after-tax, due to pension risk transfer transaction. u 3Q 2018 Ø $11.0 million of pre-tax impairment and sale related losses, or $0.21 per share after-tax, related to the sale of three Wood