Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Q2 2023 Earnings Presentation
15 slides from Boise Cascade, L.l.c's earnings presentation, Aug 1, 2023
Slide 1: Second Quarter 2023 Earnings Webcast
Boise Cascade Company Second Quarter 2023 Earnings Webcast August 1, 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 Strong financial performance Ø Good execution in both businesses Ø Market demand more resilient than anticipated u Consolidated Results Ø 2Q23 sales were $1.8 billion, down 20% from 2Q22. Ø 2Q23 net income was $146.3 million, or $3.67 per share, compared to net income of $218.1 m
Slide 4: 2Q 2023 Financial Highlights
2Q 2023 Financial Highlights Sales Adjusted EBITDA (20)% $2,278.1 (30)% $1,815.2 $317.2 2,131.2 $ Millions $ Millions $221.0 161.0 1,636.5 105.9 167.8 530.3 536.0 127.0 (351.6) (389.2) (12.0) (11.6) 2Q 2023 2Q 2022 2Q 2023 2Q 2022 n BMD n Wood n Eliminations n BMD n Wood Corporate August 1, 2023 4
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 80 5.2 69 70 65 64 5.0 4.6 4.6 4.7 63 60 4.0 3.6 50 3.2 3.0 39 40 30 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/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 2,066 2,088 $28 26.40 $2,000 1,877 $24 $1,800 $20 $1,600
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 450 440 $800 406 400 393 $700 689 350 $600 569 329 317 300 $500 477 281 396 250 $400 367 365 200 $300 150 $200 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2022 2023 August 1, 2023 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $2,200 2,112 2,131 100 $2,000 1,957 19 22 21 21 23 25 $1,800 80 1,637 $1,600 1,444 1,379 29 $1,400 60 33 37 39 35 40 $1,200 $1,000 40 $800 $600 52 45 42 $400 20 40 40 37 $200 $0 0 1Q 2Q 3Q 4Q 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2022 2023 Comm
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% 6.1% 6.0% 5.5% 6.0% 5.6% 4.0% 3.3% 4.0% 2.0% 2.0% —% —% 2019 2020 2021 2022 YTD Q2 1Q 2Q 3Q 4Q 1Q 2Q 2023 2022 2023 August 1, 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 August 1, 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 Growth Ø $68 million in 2023 Ø EWP capacity expansion l Wood - $19 million Ø BMD organic growth initiatives l BMD - $49 million Ø M&A growth that aligns with our Ø $120 million - $140 million strategy planned for 2023 l Wood - $55 million - $65 million l B
Slide 12: Outlook
Outlook u Outlook for back half of 2023 carries uncertainty; various industry forecasts for full year 2023 housing starts generally range from 1.3 million to 1.4 million, compared with actual starts of 1.55 million in 2022. u Moderation of year-over-year growth in renovation spending. u Focus on str
Slide 13: Appendix
Appendix August 1, 2023
Slide 14: Appendix
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconcile
Slide 15: Appendix
Appendix The following table reconciles segment income to EBITDA for the three months ended June 30, 2023 and 2022, and March 31, 2023: Three Months Ended ($ Millions) 2Q23 2Q22 1Q23 Wood Products Segment income $ 104.0 $ 154.1 $ 69.4 Depreciation and amortization 23.0 13.7 23.8 Segment EBITDA $ 127