Document

"Our team delivered solid financial performance in the second quarter while operating in a somewhat tepid demand environment influenced by elevated mortgage rates and economic uncertainties. In addition, spending on our organic growth projects progressed as expected and returns of capital to our shareholders were again in clear focus, including the recent announcement of a meaningful special dividend that will fund in September,” stated Nate Jorgensen, CEO. “While the near-term demand environment is uncertain, I remain confident in our ability to deliver quality results through the second half of the year. Our proven team will accomplish this by leveraging our outstanding manufacturing and wholesale distribution network, and our relentless drive to deliver superior value to our customer and vendor partners."


	2Q 2024		2Q 2023		% change
	(in thousands, except per-share data and percentages)
Consolidated Results
Sales	$	1,797,670	$	1,815,219	(1)	%
Net income	112,292		146,320		(23)	%
Net income per common share - diluted	2.84		3.67		(23)	%
Adjusted EBITDA 1	181,207		220,976		(18)	%

Segment Results
Wood Products sales	$	489,823	$	530,273	(8)	%
Wood Products income	72,780		104,035		(30)	%
Wood Products EBITDA 1	95,050		127,040		(25)	%

Building Materials Distribution sales	1,655,221		1,636,538		1	%
Building Materials Distribution income	85,400		98,550		(13)	%
Building Materials Distribution EBITDA 1	97,141		105,936		(8)	%

In second quarter 2024, total U.S. housing starts decreased 7%, while single-family housing starts increased 7%, compared to the same period in 2023. On a year-to-date basis through June 2024, total housing starts decreased 3%, while single-family housing starts increased 16%, compared to the same period in 2023. Single-family housing starts are the key demand driver for our sales.

Wood Products' sales, including sales to Building Materials Distribution (BMD), decreased $40.5 million, or 8%, to $489.8 million for the three months ended June 30, 2024, from $530.3 million for the three months ended June 30, 2023. The decrease in sales was driven by lower plywood sales volumes, as well as lower sales prices for LVL and I-joists (collectively referred to as EWP). Other sales related to lumber and residual byproducts also decreased. These decreases were offset partially by increased sales volumes for EWP.

Wood Products' segment income decreased $31.3 million to $72.8 million for the three months ended June 30, 2024, from $104.0 million for the three months ended June 30, 2023. The decrease in segment income was due primarily to lower EWP sales prices, as well as higher wood fiber and conversion costs. These decreases in segment income were offset partially by higher EWP sales volumes.

BMD's sales increased $18.7 million, or 1%, to $1,655.2 million for the three months ended June 30, 2024, from $1,636.5 million for the three months ended June 30, 2023. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales volume increases of 2%, offset partially by sales price decreases of 1%. Excluding the impact of the BROSCO acquisition on October 2, 2023, sales would have decreased by 2%. By product line, commodity sales decreased 6%, general line product sales increased 8%, and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased less than 1%.

BMD segment income decreased $13.2 million to $85.4 million for the three months ended June 30, 2024, from $98.6 million for the three months ended June 30, 2023. The decrease in segment income was driven by increased selling and distribution expenses and depreciation and amortization expense of $10.9 million and $4.4 million, respectively. These decreases were offset partially by decreased general and administrative expenses of $2.0 million. Gross margins were flat when compared with the same quarter in the prior year.

Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Residential construction, particularly new single-family construction, is the key demand driver for the products we manufacture and distribute. Current industry forecasts for 2024 U.S. housing starts are slightly below actual housing starts of 1.42 million in 2023, as reported by the U.S. Census Bureau. Home affordability remains a challenge for many consumers due to the cost of housing, as well as persistent elevated mortgage rates. However, with low unemployment, an undersupply of existing housing stock available for sale, and favorable demographic trends, new residential construction is expected to remain an important source of supply for homebuyers. Multi-family starts have declined sharply from historic levels due to increased capital costs for developers, combined with elevated supply. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity will continue to provide a favorable backdrop for repair-and-remodel spending. However, while home improvement spending is expected to remain healthy compared to history, renovation spending has softened due to consumer uncertainty, labor availability, higher borrowing costs, and building material inflation. Ultimately, macroeconomic factors, the level and expectations for mortgage rates, home affordability, home equity levels, home size, and other factors will likely influence the near-term demand environment for the products we manufacture and distribute.

As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Future product pricing, particularly commodity products pricing and input costs, may be volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns.

We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as 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.

We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding our outlook. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, our ability to efficiently and effectively integrate the BROSCO acquisition, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.


	Three Months Ended						Six Months Ended
	June 30				March 31, 2024		June 30
	2024		2023				2024		2023

Sales	$	1,797,670	$	1,815,219	$	1,645,420	$	3,443,090	$	3,359,548

Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	1,440,680		1,426,436		1,307,439		2,748,119		2,657,071
Depreciation and amortization	34,367		30,722		35,850		70,217		61,908
Selling and distribution expenses	149,783		139,205		144,110		293,893		267,993
General and administrative expenses	25,943		30,147		25,117		51,060		56,610

Other (income) expense, net	(84)		(1,266)		(78)		(162)		(1,611)
	1,650,689		1,625,244		1,512,438		3,163,127		3,041,971

Income from operations	146,981		189,975		132,982		279,963		317,577

Foreign currency exchange gain (loss)	(104)		320		(299)		(403)		247
Pension expense (excluding service costs)	(37)		(41)		(37)		(74)		(82)
Interest expense	(6,105)		(6,339)		(6,070)		(12,175)		(12,700)
Interest income	10,543		11,519		10,597		21,140		21,204
Change in fair value of interest rate swaps	(487)		333		(220)		(707)		(471)

	3,810		5,792		3,971		7,781		8,198

Income before income taxes	150,791		195,767		136,953		287,744		325,775
Income tax provision	(38,499)		(49,447)		(32,829)		(71,328)		(82,722)
Net income	$	112,292	$	146,320	$	104,124	$	216,416	$	243,053

Weighted average common shares outstanding:
Basic	39,412		39,675		39,608		39,510		39,634
Diluted	39,608		39,834		39,956		39,766		39,818

Net income per common share:
Basic	$	2.85	$	3.69	$	2.63	$	5.48	$	6.13
Diluted	$	2.84	$	3.67	$	2.61	$	5.44	$	6.10

Dividends declared per common share	$	0.20	$	3.15	$	0.20	$	0.40	$	3.30


	Three Months Ended									Six Months Ended
	June 30						March 31, 2024			June 30
	2024			2023						2024			2023

Segment sales	$	489,823		$	530,273		$	468,928		$	958,751		$	967,701

Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	378,920			387,407			357,721			736,641			715,146
Depreciation and amortization	22,270			23,005			24,384			46,654			46,795
Selling and distribution expenses	11,114			11,437			10,551			21,665			23,115
General and administrative expenses	4,606			5,364			5,020			9,626			10,542

Other (income) expense, net	133			(975)			14			147			(1,327)
	417,043			426,238			397,690			814,733			794,271

Segment income	$	72,780		$	104,035		$	71,238		$	144,018		$	173,430

	(percentage of sales)

Segment sales	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	77.4		%	73.1		%	76.3		%	76.8		%	73.9		%
Depreciation and amortization	4.5		%	4.3		%	5.2		%	4.9		%	4.8		%
Selling and distribution expenses	2.3		%	2.2		%	2.3		%	2.3		%	2.4		%
General and administrative expenses	0.9		%	1.0		%	1.1		%	1.0		%	1.1		%

Other (income) expense, net	—		%	(0.2		%)	—		%	—		%	(0.1		%)
	85.1		%	80.4		%	84.8		%	85.0		%	82.1		%

Segment income	14.9		%	19.6		%	15.2		%	15.0		%	17.9		%


	Three Months Ended									Six Months Ended
	June 30						March 31, 2024			June 30
	2024			2023						2024			2023

Segment sales	$	1,655,221		$	1,636,538		$	1,505,021		$	3,160,242		$	3,015,780

Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	1,409,510			1,391,015			1,278,421			2,687,931			2,566,565
Depreciation and amortization	11,741			7,386			11,107			22,848			14,456
Selling and distribution expenses	138,716			127,786			133,614			272,330			244,896
General and administrative expenses	10,070			12,089			9,534			19,604			22,119
Other (income) expense, net	(216)			(288)			(118)			(334)			(491)
	1,569,821			1,537,988			1,432,558			3,002,379			2,847,545

Segment income	$	85,400		$	98,550		$	72,463		$	157,863		$	168,235

	(percentage of sales)

Segment sales	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	85.2		%	85.0		%	84.9		%	85.1		%	85.1		%
Depreciation and amortization	0.7		%	0.5		%	0.7		%	0.7		%	0.5		%
Selling and distribution expenses	8.4		%	7.8		%	8.9		%	8.6		%	8.1		%
General and administrative expenses	0.6		%	0.7		%	0.6		%	0.6		%	0.7		%
Other (income) expense, net	—		%	—		%	—		%	—		%	—		%
	94.8		%	94.0		%	95.2		%	95.0		%	94.4		%

Segment income	5.2		%	6.0		%	4.8		%	5.0		%	5.6		%


	Three Months Ended						Six Months Ended
	June 30				March 31, 2024		June 30
	2024		2023				2024		2023
Segment sales
Wood Products	$	489,823	$	530,273	$	468,928	$	958,751	$	967,701
Building Materials Distribution	1,655,221		1,636,538		1,505,021		3,160,242		3,015,780

Intersegment eliminations	(347,374)		(351,592)		(328,529)		(675,903)		(623,933)
Total net sales	$	1,797,670	$	1,815,219	$	1,645,420	$	3,443,090	$	3,359,548

Segment income
Wood Products	$	72,780	$	104,035	$	71,238	$	144,018	$	173,430
Building Materials Distribution	85,400		98,550		72,463		157,863		168,235
Total segment income	158,180		202,585		143,701		301,881		341,665
Unallocated corporate costs	(11,199)		(12,610)		(10,719)		(21,918)		(24,088)
Income from operations	$	146,981	$	189,975	$	132,982	$	279,963	$	317,577

Segment EBITDA
Wood Products	$	95,050	$	127,040	$	95,622	$	190,672	$	220,225
Building Materials Distribution	97,141		105,936		83,570		180,711		182,691


	June 30, 2024		December 31, 2023

ASSETS

Current
Cash and cash equivalents	$	922,076	$	949,574
Receivables
Trade, less allowances of $4,520 and $3,278	459,772		352,780
Related parties	249		181
Other	17,120		20,740
Inventories	832,241		712,369
Prepaid expenses and other	36,348		21,170
Total current assets	2,267,806		2,056,814

Property and equipment, net	948,841		932,633
Operating lease right-of-use assets	59,812		62,868
Finance lease right-of-use assets	23,548		24,003
Timber deposits	7,675		7,208
Goodwill	170,254		170,254
Intangible assets, net	180,928		190,743
Deferred income taxes	4,655		4,854
Other assets	8,445		9,269
Total assets	$	3,671,964	$	3,458,646


	June 30, 2024		December 31, 2023

LIABILITIES AND STOCKHOLDERS' EQUITY

Current
Accounts payable
Trade	$	438,235	$	310,175
Related parties	2,146		1,501
Accrued liabilities
Compensation and benefits	96,414		149,561

Interest payable	9,956		9,958

Other	144,755		122,921
Total current liabilities	691,506		594,116

Debt
Long-term debt	445,723		445,280

Other
Compensation and benefits	39,648		40,189
Operating lease liabilities, net of current portion	53,170		56,425
Finance lease liabilities, net of current portion	27,891		28,084
Deferred income taxes	93,062		82,014
Other long-term liabilities	17,988		16,874
	231,759		223,586

Commitments and contingent liabilities

Stockholders' equity
Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding	—		—
Common stock, $0.01 par value per share; 300,000 shares authorized, 45,130 and 44,983 shares issued, respectively	451		450
Treasury stock, 6,121 and 5,443 shares at cost, respectively	(234,879)		(145,335)
Additional paid-in capital	557,478		560,697
Accumulated other comprehensive loss	(502)		(517)
Retained earnings	1,980,428		1,780,369
Total stockholders' equity	2,302,976		2,195,664
Total liabilities and stockholders' equity	$	3,671,964	$	3,458,646


	Six Months Ended June 30
	2024		2023
Cash provided by (used for) operations
Net income	$	216,416	$	243,053
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other	71,832		63,293
Stock-based compensation	7,923		7,518
Pension expense	74		82
Deferred income taxes	11,088		2,749
Change in fair value of interest rate swaps	707		471

Other	115		(1,798)

Decrease (increase) in working capital, net of acquisitions
Receivables	(102,096)		(171,794)
Inventories	(120,976)		(5,482)
Prepaid expenses and other	(7,870)		(7,805)
Accounts payable and accrued liabilities	99,354		124,910

Income taxes payable	(6,251)		33,220
Other	(1,151)		1,801
Net cash provided by operations	169,165		290,218

Cash provided by (used for) investment
Expenditures for property and equipment	(74,099)		(68,287)
Acquisitions of businesses and facilities	(3,387)		—

Proceeds from sales of assets and other	819		1,918
Net cash used for investment	(76,667)		(66,369)

Cash provided by (used for) financing



Treasury stock purchased	(88,858)		(1,539)
Dividends paid on common stock	(19,069)		(132,967)
Tax withholding payments on stock-based awards	(11,117)		(5,926)


Other	(952)		(904)
Net cash used for financing	(119,996)		(141,336)

Net increase (decrease) in cash and cash equivalents	(27,498)		82,513

Balance at beginning of the period	949,574		998,344

Balance at end of the period	$	922,076	$	1,080,857

The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2023 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

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 reconciles net income to EBITDA and Adjusted EBITDA for the (i) three months ended June 30, 2024 and 2023, (ii) three months ended March 31, 2024, and (iii) six months ended June 30, 2024 and 2023:


	Three Months Ended						Six Months Ended
	June 30				March 31, 2024		June 30
	2024		2023				2024		2023
	(in thousands)
Net income	$	112,292	$	146,320	$	104,124	$	216,416	$	243,053
Interest expense	6,105		6,339		6,070		12,175		12,700
Interest income	(10,543)		(11,519)		(10,597)		(21,140)		(21,204)
Income tax provision	38,499		49,447		32,829		71,328		82,722
Depreciation and amortization	34,367		30,722		35,850		70,217		61,908
EBITDA	180,720		221,309		168,276		348,996		379,179
Change in fair value of interest rate swaps	487		(333)		220		707		471

Adjusted EBITDA	$	181,207	$	220,976	$	168,496	$	349,703	$	379,650


	Three Months Ended						Six Months Ended
	June 30				March 31, 2024		June 30
	2024		2023				2024		2023
	(in thousands)
Wood Products
Segment income	$	72,780	$	104,035	$	71,238	$	144,018	$	173,430
Depreciation and amortization	22,270		23,005		24,384		46,654		46,795
EBITDA	$	95,050	$	127,040	$	95,622	$	190,672	$	220,225

Building Materials Distribution
Segment income	$	85,400	$	98,550	$	72,463	$	157,863	$	168,235
Depreciation and amortization	11,741		7,386		11,107		22,848		14,456
EBITDA	$	97,141	$	105,936	$	83,570	$	180,711	$	182,691

Corporate
Unallocated corporate costs	$	(11,199)	$	(12,610)	$	(10,719)	$	(21,918)	$	(24,088)
Foreign currency exchange gain (loss)	(104)		320		(299)		(403)		247
Pension expense (excluding service costs)	(37)		(41)		(37)		(74)		(82)
Change in fair value of interest rate swaps	(487)		333		(220)		(707)		(471)

Depreciation and amortization	356		331		359		715		657
EBITDA	(11,471)		(11,667)		(10,916)		(22,387)		(23,737)
Change in fair value of interest rate swaps	487		(333)		220		707		471

Corporate adjusted EBITDA	$	(10,984)	$	(12,000)	$	(10,696)	$	(21,680)	$	(23,266)

Total Company adjusted EBITDA	$	181,207	$	220,976	$	168,496	$	349,703	$	379,650


Boise Cascade Company			Exhibit 99.1
1111 West Jefferson Street, Suite 300
Boise, ID 83702


	2Q 2024 vs. 2Q 2023	2Q 2024 vs. 1Q 2024

Average Net Selling Prices
LVL	(7)%	(2)%
I-joists	(6)%	(3)%
Plywood	(1)%	(4)%

Sales Volumes
LVL	8%	6%
I-joists	5%	16%
Plywood	(13)%	3%


Investor Relations Contact - Chris Forrey investor@bc.com						Media Contact - Amy Evans mediarelations@bc.com


News Release