Boise Cascade Company Reports 2016 Second Quarter Net Income of $19.2 Million on Sales of $1,043.8 Million
For Immediate Release: July 28, 2016
BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported net income of $19.2 million, or $0.49 per share, on sales of $1,043.8 million for the second quarter ended June 30, 2016.
Second Quarter 2016 Highlights
| 2Q 2016 | 2Q 2015 | % change | ||||||||
| (thousands, except per-share data and percentages) | ||||||||||
| Consolidated Results | ||||||||||
| Sales | $ | 1,043,773 | $ | 955,397 | 9 | % | ||||
| Net income | 19,228 | 20,230 | (5 | )% | ||||||
| Net income per common share - diluted | 0.49 | 0.51 | (4 | )% | ||||||
| EBITDA1 | 56,447 | 50,681 | 11 | % | ||||||
| Segment Results | ||||||||||
| Wood Products sales | $ | 346,358 | $ | 339,869 | 2 | % | ||||
| Wood Products income | 16,309 | 23,712 | (31 | )% | ||||||
| Wood Products EBITDA1 | 31,078 | 34,053 | (9 | )% | ||||||
| Building Materials Distribution sales | 850,042 | 762,078 | 12 | % | ||||||
| Building Materials Distribution income | 29,117 | 19,576 | 49 | % | ||||||
| Building Materials Distribution EBITDA1 | 32,471 | 22,450 | 45 | % | ||||||
| Corporate loss | (7,531 | ) | (5,888 | ) | (28 | )% | ||||
| Corporate EBITDA1 | (7,102 | ) | (5,822 | ) | (22 | )% | ||||
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.
In second quarter 2016, total and single-family U.S. housing starts increased approximately 1% and 7%, respectively, from the same period last year. Total U.S. housing starts from the July 2016 Blue Chip consensus forecast for 2016 and 2017 reflect 1.20 million and 1.32 million, respectively, or expected annual increases of 8% and 10%.
"The integration of the Thorsby and Roxboro engineered wood products facilities has gone very well. We are pleased with the additional capabilities the facilities provide as we support the ongoing growth of our customers," stated Tom Corrick, CEO. "Our distribution business had an outstanding second quarter that reflected solid volume growth across its product lines and the benefit of favorable tailwinds on many commodity product prices. We still face oversupply challenges in our plywood business, but did see improvement in pricing compared to the first quarter. We expect modest growth in residential housing construction for the balance of the year, which should drive additional demand for our products and services."
Wood Products
Sales, including sales to Building Materials Distribution (BMD), increased $6.5 million, or 2%, to $346.4 million for the three months ended June 30, 2016, from $339.9 million for the three months ended June 30, 2015. The increase in sales was driven primarily by increases in sales volumes and prices of laminated veneer lumber and I-joists (collectively EWP). The EWP volume increases were due primarily to our acquisition of two EWP facilities on March 31, 2016. These increases were offset partially by decreases in plywood and lumber sales volumes and prices.
Wood Products segment income decreased $7.4 million to $16.3 million for the three months ended June 30, 2016, from $23.7 million for the three months ended June 30, 2015. The decline in income was due primarily to lower plywood and lumber sales prices, as well as higher oriented strand board (OSB) costs used in the manufacture of I-joists. In addition, depreciation and amortization expense increased $4.4 million due to the acquisition of two EWP facilities on March 31, 2016, and other capital expenditures. These decreases were offset partially by improved sales volumes and prices of EWP.
Comparative average net selling prices and sales volume changes for plywood, EWP, and lumber are as follows:
| 2Q 2016 vs. 2Q 2015 | 2Q 2016 vs. 1Q 2016 | |||
| Average Net Selling Prices | ||||
| Plywood | (10)% | 4% | ||
| LVL | 2% | -% | ||
| I-joists | 3% | -% | ||
| Lumber | (4)% | 3% | ||
| Sales Volumes | ||||
| Plywood | (8)% | -% | ||
| LVL | 33% | 30% | ||
| I-joists | 14% | 29% | ||
| Lumber | (12)% | 3% |
Building Materials Distribution
Sales increased $88.0 million, or 12%, to $850.0 million for the three months ended June 30, 2016, from $762.1 million for the three months ended June 30, 2015. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales volume increases of 13%, offset partially by a decrease in sales prices of 1%. By product line, commodity sales increased 12%, general line product sales increased 10%, and sales of EWP (substantially all of which are sourced through our Wood Products segment) increased 13%.
BMD segment income increased $9.5 million to $29.1 million for the three months ended June 30, 2016, from $19.6 million for the three months ended June 30, 2015. The increase in income was driven primarily by a higher gross margin of $18.8 million, including an improvement in gross margin percentage of 100 basis points, which was largely driven by favorable trending prices in OSB and lumber during second quarter 2016, as well as stronger margin contribution within our general line products. These increases were offset partially by increased selling and distribution expenses and general and administrative expenses of $7.7 million and $1.0 million, respectively.
Corporate and Other
Segment loss was $7.5 million for the three months ended June 30, 2016, compared with $5.9 million for the three months ended June 30, 2015. The change was due primarily to higher incentive compensation costs.
Balance Sheet
Boise Cascade ended the second quarter with $96.1 million of cash and cash equivalents and $319.1 million of undrawn committed bank line availability, for total available liquidity of $415.2 million. The Company reported $464.6 million of outstanding debt at June 30, 2016.
Outlook
The Company expects its capital expenditures during 2016 to be $85-$95 million, inclusive of costs associated with the newly acquired EWP facilities.
As in recent years, we expect to continue to experience modest demand growth for the products we manufacture and distribute in 2016, and we remain optimistic that the overall improvement in demand for our products will continue as household formation rates and residential construction recover. Future commodity product pricing could be volatile in response to industry operating rates, net import and export activity, inventory levels in our distribution channels, and seasonal demand patterns. We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity, and could also include temporary plant curtailments such as those recently taken in our plywood operations.
About Boise Cascade
Boise Cascade Company is one of the largest producers of plywood and engineered wood products in North America and a leading U.S. wholesale distributor of building products. For more information, please visit our website at www.bc.com.
Webcast and Conference Call
Boise Cascade will host a webcast and conference call on Thursday, July 28, at 11 a.m. Eastern, at which time we will review the Company's second quarter.
You can join the webcast through our website by going to www.bc.com and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15 minutes before the start of the webcast to register. To join the conference call, dial 844-795-4410 (international callers should dial 661-378-9637), participant passcode 51270007, at least 10 minutes before the start of the call.
The archived webcast will be available in the Investor Relations section of our website. A replay of the conference call will be available from Thursday, July 28, at 2 p.m. Eastern through Thursday, August 4, at 2 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. calls and 404-537-3406 for international calls, and the passcode will be 51270007.
Basis of Presentation
We refer to the term EBITDA in this earnings release as a supplemental measure of our performance and liquidity that is 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, interest income, and change in fair value of interest rate swaps), income taxes, and depreciation and amortization.
EBITDA is the primary measure used by our management to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides 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 it is 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. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA, however, is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income, income from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income or segment income (loss) has limitations as an analytical tool, 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 measure of EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
Forward-Looking Statements
This news release contains statements that are "forward looking" within the Private Securities Litigation Reform Act of 1995. These statements speak only as of the date of this press release. While they are based on the current expectations and beliefs of management, they are subject to a number of uncertainties and assumptions that could cause actual results to differ from the expectations expressed in this release.
Boise Cascade Company
Consolidated Statements of Operations
(unaudited, in thousands, except per-share data)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2016 | June 30 | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Sales | $ | 1,043,773 | $ | 955,397 | $ | 880,695 | $ | 1,924,468 | $ | 1,765,300 | |||||||||
| Costs and expenses | |||||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 894,715 | 824,583 | 769,544 | 1,664,259 | 1,529,622 | ||||||||||||||
| Depreciation and amortization | 18,552 | 13,281 | 15,238 | 33,790 | 26,868 | ||||||||||||||
| Selling and distribution expenses | 76,855 | 68,254 | 68,041 | 144,896 | 130,134 | ||||||||||||||
| General and administrative expenses | 15,612 | 12,018 | 16,052 | 31,664 | 24,026 | ||||||||||||||
| Other (income) expense, net | 172 | (98 | ) | (1,585 | ) | (1,413 | ) | (397 | ) | ||||||||||
| 1,005,906 | 918,038 | 867,290 | 1,873,196 | 1,710,253 | |||||||||||||||
| Income from operations | 37,867 | 37,359 | 13,405 | 51,272 | 55,047 | ||||||||||||||
| Foreign currency exchange gain (loss) | 28 | 41 | 198 | 226 | (66 | ) | |||||||||||||
| Interest expense | (6,427 | ) | (5,591 | ) | (5,802 | ) | (12,229 | ) | (11,072 | ) | |||||||||
| Interest income | 27 | 58 | 149 | 176 | 148 | ||||||||||||||
| Change in fair value of interest rate swaps | (1,532 | ) | - | (69 | ) | (1,601 | ) | - | |||||||||||
| (7,904 | ) | (5,492 | ) | (5,524 | ) | (13,428 | ) | (10,990 | ) | ||||||||||
| Income before income taxes | 29,963 | 31,867 | 7,881 | 37,844 | 44,057 | ||||||||||||||
| Income tax provision | (10,735 | ) | (11,637 | ) | (2,931 | ) | (13,666 | ) | (16,210 | ) | |||||||||
| Net income | $ | 19,228 | $ | 20,230 | $ | 4,950 | $ | 24,178 | $ | 27,847 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 38,814 | 39,494 | 38,853 | 38,834 | 39,496 | ||||||||||||||
| Diluted | 38,972 | 39,600 | 38,880 | 38,850 | 39,604 | ||||||||||||||
| Net income per common share: | |||||||||||||||||||
| Basic | $ | 0.50 | $ | 0.51 | $ | 0.13 | $ | 0.62 | $ | 0.71 | |||||||||
| Diluted | $ | 0.49 | $ | 0.51 | $ | 0.13 | $ | 0.62 | $ | 0.70 | |||||||||
Wood Products Segment
Statements of Operations
(unaudited, in thousands, except percentages)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2016 | June 30 | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Segment sales | $ | 346,358 | $ | 339,869 | $ | 303,457 | $ | 649,815 | $649,185 | ||||||||||
| Costs and expenses | |||||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 303,803 | 296,276 | 273,942 | 577,745 | 564,696 | ||||||||||||||
| Depreciation and amortization | 14,769 | 10,341 | 11,634 | 26,403 | 21,132 | ||||||||||||||
| Selling and distribution expenses | 8,108 | 7,030 | 7,375 | 15,483 | 13,705 | ||||||||||||||
| General and administrative expenses | 3,173 | 2,514 | 6,098 | 9,271 | 5,026 | ||||||||||||||
| Other (income) expense, net | 196 | (4 | ) | (1,477 | ) | (1,281 | ) | 18 | |||||||||||
| 330,049 | 316,157 | 297,572 | 627,621 | 604,577 | |||||||||||||||
| Segment income | $ | 16,309 | $ | 23,712 | $ | 5,885 | $ | 22,194 | $ | 44,608 | |||||||||
| (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) | 87.7 | % | 87.2 | % | 90.3 | % | 88.9 | % | 87.0 | % | |||||||||
| Depreciation and amortization | 4.3 | % | 3.0 | % | 3.8 | % | 4.1 | % | 3.3 | % | |||||||||
| Selling and distribution expenses | 2.3 | % | 2.1 | % | 2.4 | % | 2.4 | % | 2.1 | % | |||||||||
| General and administrative expenses | 0.9 | % | 0.7 | % | 2.0 | % | 1.4 | % | 0.8 | % | |||||||||
| Other (income) expense, net | 0.1 | % | - | % | (0.5 | )% | (0.2 | )% | - | % | |||||||||
| 95.3 | % | 93.0 | % | 98.1 | % | 96.6 | % | 93.1 | % | ||||||||||
| Segment income | 4.7 | % | 7.0 | % | 1.9 | % | 3.4 | % | 6.9 | % | |||||||||
Building Materials Distribution Segment
Statements of Operations
(unaudited, in thousands, except percentages)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31 | June 30 | |||||||||||||||||
| 2016 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||
| Segment sales | $ | 850,042 | $ | 762,078 | $ | 717,254 | $ | 1,567,296 | $ | 1,384,983 | |||||||||
| Costs and expenses | |||||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 743,700 | 674,503 | 635,778 | 1,379,478 | 1,232,864 | ||||||||||||||
| Depreciation and amortization | 3,354 | 2,874 | 3,235 | 6,589 | 5,613 | ||||||||||||||
| Selling and distribution expenses | 68,574 | 60,910 | 60,502 | 129,076 | 115,560 | ||||||||||||||
| General and administrative expenses | 5,356 | 4,311 | 4,503 | 9,859 | 8,239 | ||||||||||||||
| Other (income) expense, net | (59 | ) | (96 | ) | (137 | ) | (196 | ) | (215 | ) | |||||||||
| 820,925 | 742,502 | 703,881 | 1,524,806 | 1,362,061 | |||||||||||||||
| Segment income | $ | 29,117 | $ | 19,576 | $ | 13,373 | $ | 42,490 | $ | 22,922 | |||||||||
| (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) | 87.5 | % | 88.5 | % | 88.6 | % | 88.0 | % | 89.0 | % | |||||||||
| Depreciation and amortization | 0.4 | % | 0.4 | % | 0.5 | % | 0.4 | % | 0.4 | % | |||||||||
| Selling and distribution expenses | 8.1 | % | 8.0 | % | 8.4 | % | 8.2 | % | 8.3 | % | |||||||||
| General and administrative expenses | 0.6 | % | 0.6 | % | 0.6 | % | 0.6 | % | 0.6 | % | |||||||||
| Other (income) expense, net | - | % | - | % | - | % | - | % | - | % | |||||||||
| 96.6 | % | 97.4 | % | 98.1 | % | 97.3 | % | 98.3 | % | ||||||||||
| Segment income | 3.4 | % | 2.6 | % | 1.9 | % | 2.7 | % | 1.7 | % | |||||||||
Segment Information
(unaudited, in thousands)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2016 | June 30 | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Segment sales | |||||||||||||||||||
| Wood Products | $ | 346,358 | $ | 339,869 | $ | 303,457 | $ | 649,815 | $ | 649,185 | |||||||||
| Building Materials Distribution | 850,042 | 762,078 | 717,254 | 1,567,296 | 1,384,983 | ||||||||||||||
| Corporate and Other | 103 | - | 186 | 289 | - | ||||||||||||||
| Intersegment eliminations | (152,730 | ) | (146,550 | ) | (140,202 | ) | (292,932 | ) | (268,868 | ) | |||||||||
| $ | 1,043,773 | $ | 955,397 | $ | 880,695 | $ | 1,924,468 | $ | 1,765,300 | ||||||||||
| Segment income (loss) | |||||||||||||||||||
| Wood Products | $ | 16,309 | $ | 23,712 | $ | 5,885 | $ | 22,194 | $ | 44,608 | |||||||||
| Building Materials Distribution | 29,117 | 19,576 | 13,373 | 42,490 | 22,922 | ||||||||||||||
| Corporate and Other | (7,531 | ) | (5,888 | ) | (5,655 | ) | (13,186 | ) | (12,549 | ) | |||||||||
| 37,895 | 37,400 | 13,603 | 51,498 | 54,981 | |||||||||||||||
| Interest expense | (6,427 | ) | (5,591 | ) | (5,802 | ) | (12,229 | ) | (11,072 | ) | |||||||||
| Interest income | 27 | 58 | 149 | 176 | 148 | ||||||||||||||
| Change in fair value of interest rate swaps | (1,532 | ) | - | (69 | ) | (1,601 | ) | - | |||||||||||
| Income before income taxes | $ | 29,963 | $ | 31,867 | $ | 7,881 | $ | 37,844 | $ | 44,057 | |||||||||
| EBITDA (a) | |||||||||||||||||||
| Wood Products | $ | 31,078 | $ | 34,053 | $ | 17,519 | $ | 48,597 | $ | 65,740 | |||||||||
| Building Materials Distribution | 32,471 | 22,450 | 16,608 | 49,079 | 28,535 | ||||||||||||||
| Corporate and Other | (7,102 | ) | (5,822 | ) | (5,286 | ) | (12,388 | ) | (12,426 | ) | |||||||||
| $ | 56,447 | $ | 50,681 | $ | 28,841 | $ | 85,288 | $ | 81,849 | ||||||||||
See accompanying summary notes to consolidated financial statements and segment information.
Boise Cascade Company
Consolidated Balance Sheets
(unaudited, in thousands)
| June 30, 2016 | December 31, 2015 | ||||||
| ASSETS | |||||||
| Current | |||||||
| Cash and cash equivalents | $ | 96,089 | $ | 184,496 | |||
| Receivables | |||||||
| Trade, less allowances of $1,121 and $1,734 | 278,704 | 187,138 | |||||
| Related parties | 376 | 1,065 | |||||
| Other | 7,388 | 10,861 | |||||
| Inventories | 461,998 | 384,857 | |||||
| Prepaid expenses and other | 10,755 | 17,153 | |||||
| Total current assets | 855,310 | 785,570 | |||||
| Property and equipment, net | 552,776 | 402,666 | |||||
| Timber deposits | 12,246 | 15,848 | |||||
| Goodwill | 55,433 | 21,823 | |||||
| Intangible assets, net | 15,893 | 10,090 | |||||
| Other assets | 11,830 | 12,609 | |||||
| Total assets | $ | 1,503,488 | $ | 1,248,606 | |||
Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except per-share data)
| June 30, 2016 | December 31, 2015 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current | |||||||
| Accounts payable | |||||||
| Trade | $ | 247,740 | $ | 159,029 | |||
| Related parties | 1,954 | 1,442 | |||||
| Accrued liabilities | |||||||
| Compensation and benefits | 57,250 | 54,712 | |||||
| Interest payable | 3,403 | 3,389 | |||||
| Other | 50,786 | 40,078 | |||||
| Total current liabilities | 361,133 | 258,650 | |||||
| Debt | |||||||
| Long-term debt | 464,586 | 344,589 | |||||
| Other | |||||||
| Compensation and benefits | 93,614 | 93,355 | |||||
| Other long-term liabilities | 24,136 | 17,342 | |||||
| 117,750 | 110,697 | ||||||
| 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, 43,518 and 43,413 shares issued, respectively | 435 | 434 | |||||
| Treasury Stock, 4,767 and 4,587 shares at cost, respectively | (126,343 | ) | (123,711 | ) | |||
| Additional paid-in capital | 511,097 | 508,066 | |||||
| Accumulated other comprehensive loss | (92,244 | ) | (93,015 | ) | |||
| Retained earnings | 267,074 | 242,896 | |||||
| Total stockholders' equity | 560,019 | 534,670 | |||||
| Total liabilities and stockholders' equity | $ | 1,503,488 | $ | 1,248,606 | |||
Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited, in thousands)
| Six Months Ended | |||||||
| June 30 | |||||||
| 2016 | 2015 | ||||||
| Cash provided by (used for) operations | |||||||
| Net income | $ | 24,178 | $ | 27,847 | |||
| Items in net income not using (providing) cash | |||||||
| Depreciation and amortization, including deferred financing costs and other | 34,661 | 27,638 | |||||
| Stock-based compensation | 3,866 | 2,898 | |||||
| Pension expense | 1,212 | 2,881 | |||||
| Deferred income taxes | 3,901 | 7,187 | |||||
| Change in fair value of interest rate swaps | 1,601 | - | |||||
| Other | 72 | (622 | ) | ||||
| Decrease (increase) in working capital, net of acquisitions | |||||||
| Receivables | (76,937 | ) | (61,885 | ) | |||
| Inventories | (59,304 | ) | (20,653 | ) | |||
| Prepaid expenses and other | (4,508 | ) | (3,375 | ) | |||
| Accounts payable and accrued liabilities | 96,403 | 78,457 | |||||
| Pension contributions | (2,778 | ) | (53,203 | ) | |||
| Income taxes payable | 18,696 | 14,499 | |||||
| Other | 4,955 | (1,954 | ) | ||||
| Net cash provided by operations | 46,018 | 19,715 | |||||
| Cash provided by (used for) investment | |||||||
| Expenditures for property and equipment | (35,101 | ) | (31,433 | ) | |||
| Acquisitions of businesses and facilities | (215,900 | ) | - | ||||
| Proceeds from sales of assets and other | 255 | 263 | |||||
| Net cash used for investment | (250,746 | ) | (31,170 | ) | |||
| Cash provided by (used for) financing | |||||||
| Borrowings of long-term debt, including revolving credit facility | 352,700 | 50,000 | |||||
| Payments on revolving credit facility | (232,700 | ) | - | ||||
| Treasury stock purchased | (2,632 | ) | (6,109 | ) | |||
| Financing costs | (543 | ) | (655 | ) | |||
| Tax withholding payments on stock-based awards | (383 | ) | (1,063 | ) | |||
| Other | (121 | ) | 660 | ||||
| Net cash provided by financing | 116,321 | 42,833 | |||||
| Net increase (decrease) in cash and cash equivalents | (88,407 | ) | 31,378 | ||||
| Balance at beginning of the period | 184,496 | 163,549 | |||||
| Balance at end of the period | $ | 96,089 | $ | 194,927 | |||
Summary Notes to Consolidated Financial Statements and Segment Information
The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the Company's 2015 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.
a. EBITDA represents income before interest (interest expense, interest income, and change in fair value of interest rate swaps), income taxes, and depreciation and amortization. The following table reconciles net income to EBITDA for the three months ended June 30, 2016 and 2015, and March 31, 2016, and the six months ended June 30, 2016 and 2015:
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2016 | June 30 | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||
| Net income | $ | 19,228 | $ | 20,230 | $ | 4,950 | $ | 24,178 | $ | 27,847 | |||||||||
| Interest expense | 6,427 | 5,591 | 5,802 | 12,229 | 11,072 | ||||||||||||||
| Interest income | (27 | ) | (58 | ) | (149 | ) | (176 | ) | (148 | ) | |||||||||
| Change in fair value of interest rate swaps | 1,532 | - | 69 | 1,601 | - | ||||||||||||||
| Income tax provision | 10,735 | 11,637 | 2,931 | 13,666 | 16,210 | ||||||||||||||
| Depreciation and amortization | 18,552 | 13,281 | 15,238 | 33,790 | 26,868 | ||||||||||||||
| EBITDA | $ | 56,447 | $ | 50,681 | $ | 28,841 | $ | 85,288 | $ | 81,849 | |||||||||
The following table reconciles segment income (loss) to EBITDA for the three months ended June 30, 2016 and 2015, and March 31, 2016, and the six months ended June 30, 2016 and 2015:
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2016 | June 30 | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||
| Wood Products | |||||||||||||||||||
| Segment income | $ | 16,309 | $ | 23,712 | $ | 5,885 | $ | 22,194 | $ | 44,608 | |||||||||
| Depreciation and amortization | 14,769 | 10,341 | 11,634 | 26,403 | 21,132 | ||||||||||||||
| EBITDA | 31,078 | 34,053 | 17,519 | 48,597 | 65,740 | ||||||||||||||
| Building Materials Distribution | |||||||||||||||||||
| Segment income | 29,117 | 19,576 | 13,373 | 42,490 | 22,922 | ||||||||||||||
| Depreciation and amortization | 3,354 | 2,874 | 3,235 | 6,589 | 5,613 | ||||||||||||||
| EBITDA | 32,471 | 22,450 | 16,608 | 49,079 | 28,535 | ||||||||||||||
| Corporate and Other | |||||||||||||||||||
| Segment loss | (7,531 | ) | (5,888 | ) | (5,655 | ) | (13,186 | ) | (12,549 | ) | |||||||||
| Depreciation and amortization | 429 | 66 | 369 | 798 | 123 | ||||||||||||||
| EBITDA | (7,102 | ) | (5,822 | ) | (5,286 | ) | (12,388 | ) | (12,426 | ) | |||||||||
| Total Company EBITDA | $ | 56,447 | $ | 50,681 | $ | 28,841 | $ | 85,288 | $ | 81,849 | |||||||||
Investor contact: Wayne Rancourt, 208 384 6073
Media contact: John Sahlberg, 208 384 6451
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Boise Cascade Company via Globenewswire