Form 8-K BOISE CASCADE Co For: Oct 23
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 23, 2014
BOISE CASCADE COMPANY
(Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation) | 001-35805 (Commission File Number) | 20-1496201 (IRS Employer Identification No.) | ||
1111 West Jefferson Street, Suite 300
Boise, Idaho 83702-5389
(Address of principal executive offices) (Zip Code)
(208) 384-6161
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On October 23, 2014, we issued an earnings release announcing our third quarter 2014 financial results, a copy of which is furnished as Exhibit 99.1 to this Current Report on Form 8-K. Additionally, Exhibit 99.2, a copy of which is furnished, includes certain statistical information relative to our quarterly and year-to-date performance.
We have reconciled the non-GAAP financial measures to our reported financial performance in the financial notes that accompany our earnings release.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are furnished as part of this Report on Form 8-K:
Exhibit | Description | |
Exhibit 99.1 | Boise Cascade Company Earnings Release dated October 23, 2014. | |
Exhibit 99.2 | Boise Cascade Company Quarterly Statistical Information for third quarter 2014. | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BOISE CASCADE COMPANY | ||
By | /s/ John T. Sahlberg | |
John T. Sahlberg Senior Vice President, Human Resources and General Counsel | ||
Date: October 23, 2014 | ||
Boise Cascade | Exhibit 99.1 | ||
1111 West Jefferson Street Ste 300 PO Box 50 Boise, ID 83728 | |||
News Release |  |
Investor Relations Contact - Wayne Rancourt 208 384 6073 | Media Contact - John Sahlberg 208 384 6451 | |
For Immediate Release: October 23, 2014
Boise Cascade Company Reports 2014 Third Quarter Net Income of $32.3�Million on Sales of $983.3 Million
BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported net income of $32.3 million, or $0.82 per share, on sales of $983.3 million for the third quarter ended September�30, 2014.
Third Quarter 2014 Highlights
3Q 2014 | 3Q 2013 | % change | |||||||||
(thousands, except per-share data and percentages) | |||||||||||
Consolidated Results | |||||||||||
Sales | $ | 983,319 | $ | 877,979 | 12 | % | |||||
Net income | 32,285 | 15,860 | 104 | % | |||||||
Net income per common share - diluted | 0.82 | 0.39 | 110 | % | |||||||
EBITDA1 | 69,078 | 39,510 | 75 | % | |||||||
Segment Results | |||||||||||
Wood Products sales | $ | 355,697 | $ | 283,204 | 26 | % | |||||
Wood Products EBITDA1 | 51,342 | 24,614 | 109 | % | |||||||
Building Materials Distribution sales | 773,391 | 721,523 | 7 | % | |||||||
Building Materials Distribution EBITDA1 | 23,506 | 20,108 | 17 | % | |||||||
Corporate EBITDA1 | (5,770 | ) | (5,212 | ) | 11 | % | |||||
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.
In third quarter 2014, total and single-family U.S. housing starts increased approximately 15% and 7%, respectively, from the same period last year. The October 2014 Blue Chip consensus forecast for 2014 reflects 1.01�million total U.S. housing starts, a 9% expected increase from 2013 levels, but still well below the historical average for the last 20�years of approximately 1.4 million starts per year.
"Third quarter sales were consistent with our seasonal expectations for our manufacturing and distribution businesses. Our earnings benefited from strong plywood pricing in the quarter. In our engineered wood products business, we continue to capture solid volume growth and improved pricing. Forecasts for 2015 reflect further growth in U.S. housing starts and we remain confident in our ability to take advantage of market opportunities," stated Tom Carlile, CEO.
Wood Products
Sales, including sales to our Building Materials Distribution (BMD) segment, increased $72.5 million, or 26%, to $355.7 million for the three months ended September�30, 2014, from $283.2 million for the three months ended September�30, 2013. The sales growth was driven primarily by plywood and engineered wood products (EWP) sales volume and price increases. Plywood sales volumes increased 15% primarily due to the acquisition of two plywood manufacturing facilities on September 30, 2013, while plywood sales prices increased 11%. EWP sales improved with LVL and I-joists sales volumes up 20% and 12%, respectively, and I-joists and LVL sales prices up 8% and 5%, respectively. Improved lumber, particleboard, and byproduct sales also contributed to the increase in sales.
Wood Products EBITDA increased $26.7 million to $51.3 million for the three months ended September�30, 2014, from $24.6 million for the three months ended September�30, 2013. The improvement in EBITDA included $5.1�million related to the acquired plywood operations. Overall, the increase in EBITDA was due primarily to higher plywood, EWP, and lumber sales prices and higher plywood and EWP sales volumes.
Building Materials Distribution
Sales increased $51.9 million, or 7%, to $773.4 million for the three months ended September�30, 2014, from $721.5 million for the three months ended September�30, 2013. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales volume and sales price increases of 4% and 3%, respectively. By product line, sales of EWP increased 13%, general line product sales increased 10%, and commodity sales increased 3%.
BMD EBITDA increased $3.4 million to $23.5 million for the three months ended September�30, 2014, from $20.1 million for the three months ended September�30, 2013. The increase in EBITDA was driven primarily by a higher gross margin of $9.3 million, including an improvement in gross margin percentage of 40 basis points. The margin improvement in segment income was offset partially by increased selling and distribution expenses of $5.5�million.
Balance Sheet
Boise Cascade ended the third quarter with $170.0 million of cash and cash equivalents and $328.2 million of undrawn committed bank line availability, for total available liquidity of $498.2 million. The company reported $301.5 million of outstanding debt at September�30, 2014.
Outlook
We expect to experience seasonally slower demand in the fourth quarter of 2014. On an annual basis, housing starts in the U.S. improved in 2013 and 2012. This improvement in U.S. housing starts has continued into 2014 and we remain optimistic that the improvement in demand for our products will continue through 2015, but at forecasted levels below the 20-year historical average. Future commodity product pricing could be volatile in response to industry capacity restarts and operating rates, inventory levels in various 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 until demand improves further.
����
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.
2
Webcast and Conference Call
Boise Cascade will host a webcast and conference call on Thursday, October 23, at 11�a.m. Eastern, at which time we will review the Company's third 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 855-209-5834 (international callers should dial 315-625-6883), participant passcode 15586176, 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, October 23, at 2�p.m. Eastern through Thursday, October 30, at 11�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 15586176.
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 and interest income), 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 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.
3
Boise Cascade Company
Consolidated Statements of Operations
(unaudited, in thousands, except per-share data)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September�30 | June�30, 2014 | September�30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Sales | $ | 983,319 | $ | 877,979 | $ | 961,187 | $ | 2,711,686 | $ | 2,475,152 | |||||||||
Costs and expenses | � | � | � | � | |||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 827,890 | 759,777 | 823,532 | 2,324,030 | 2,155,620 | ||||||||||||||
Depreciation and amortization | 13,203 | 8,962 | 12,482 | 38,005 | 26,205 | ||||||||||||||
Selling and distribution expenses | 72,714 | 66,244 | 67,181 | 198,825 | 183,350 | ||||||||||||||
General and administrative expenses | 13,173 | 12,867 | 11,925 | 35,763 | 33,164 | ||||||||||||||
Other (income) expense, net | 148 | (350 | ) | 163 | (1,589 | ) | (523 | ) | |||||||||||
927,128 | 847,500 | 915,283 | 2,595,034 | 2,397,816 | |||||||||||||||
Income from operations | 56,191 | 30,479 | 45,904 | 116,652 | 77,336 | ||||||||||||||
Foreign currency exchange gain (loss) | (316 | ) | 69 | 266 | (139 | ) | (302 | ) | |||||||||||
Interest expense | (5,514 | ) | (5,174 | ) | (5,519 | ) | (16,545 | ) | (14,846 | ) | |||||||||
Interest income | 57 | 88 | 53 | 180 | 212 | ||||||||||||||
(5,773 | ) | (5,017 | ) | (5,200 | ) | (16,504 | ) | (14,936 | ) | ||||||||||
Income before income taxes | 50,418 | 25,462 | 40,704 | 100,148 | 62,400 | ||||||||||||||
Income tax (provision) benefit (a) | (18,133 | ) | (9,602 | ) | (14,286 | ) | (35,880 | ) | 44,708 | ||||||||||
Net income | $ | 32,285 | $ | 15,860 | $ | 26,418 | $ | 64,268 | $ | 107,108 | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
��Basic | 39,423 | 40,625 | 39,420 | 39,407 | 40,486 | ||||||||||||||
��Diluted | 39,481 | 40,640 | 39,463 | 39,459 | 40,492 | ||||||||||||||
Net income per common share: | |||||||||||||||||||
��Basic | $ | 0.82 | $ | 0.39 | $ | 0.67 | $ | 1.63 | $ | 2.65 | |||||||||
��Diluted | $ | 0.82 | $ | 0.39 | $ | 0.67 | $ | 1.63 | $ | 2.65 | |||||||||
See accompanying summary notes to consolidated financial statements and segment information.
4
Wood Products Segment
Statements of Operations
(unaudited, in thousands, except percentages)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September�30 | June�30, 2014 | September�30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Segment sales | $ | 355,697 | $283,204 | $ | 351,011 | $ | 999,982 | $832,837 | |||||||||||
Costs and expenses | � | � | � | � | |||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 293,569 | 249,037 | 299,993 | 854,425 | 724,166 | ||||||||||||||
Depreciation and amortization | 10,711 | 6,686 | 10,044 | 30,735 | 19,456 | ||||||||||||||
Selling and distribution expenses | 7,622 | 6,637 | 7,146 | 21,506 | 20,039 | ||||||||||||||
General and administrative expenses | 2,960 | 3,039 | 2,418 | 8,027 | 7,578 | ||||||||||||||
Other (income) expense, net | 204 | (123 | ) | 197 | 398 | (183 | ) | ||||||||||||
315,066 | 265,276 | 319,798 | 915,091 | 771,056 | |||||||||||||||
Segment income | $ | 40,631 | $ | 17,928 | $ | 31,213 | $ | 84,891 | $ | 61,781 | |||||||||
(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) | 82.5 | % | 87.9 | % | 85.5 | % | 85.4 | % | 87.0 | % | |||||||||
Depreciation and amortization | 3.0 | % | 2.4 | % | 2.9 | % | 3.1 | % | 2.3 | % | |||||||||
Selling and distribution expenses | 2.1 | % | 2.3 | % | 2.0 | % | 2.2 | % | 2.4 | % | |||||||||
General and administrative expenses | 0.8 | % | 1.1 | % | 0.7 | % | 0.8 | % | 0.9 | % | |||||||||
Other (income) expense, net | 0.1 | % | % | 0.1 | % | % | % | ||||||||||||
88.6 | % | 93.7 | % | 91.1 | % | 91.5 | % | 92.6 | % | ||||||||||
Segment income | 11.4 | % | 6.3 | % | 8.9 | % | 8.5 | % | 7.4 | �% | |||||||||
5
Building Materials Distribution Segment
Statements of Operations
(unaudited, in thousands, except percentages)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September�30 | June�30, 2014 | September�30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Segment sales | $ | 773,391 | $ | 721,523 | $ | 758,375 | $ | 2,117,296 | $ | 1,984,138 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 680,303 | 637,719 | 672,355 | 1,876,002 | 1,773,895 | ||||||||||||||
Depreciation and amortization | 2,448 | 2,245 | 2,394 | 7,149 | 6,640 | ||||||||||||||
Selling and distribution expenses | 65,092 | 59,607 | 60,035 | 177,319 | 163,311 | ||||||||||||||
General and administrative expenses | 4,557 | 4,175 | 4,232 | 12,555 | 11,397 | ||||||||||||||
Other (income) expense, net | (67 | ) | (86 | ) | (42 | ) | (2,049 | ) | (241 | ) | |||||||||
752,333 | 703,660 | 738,974 | 2,070,976 | 1,955,002 | |||||||||||||||
Segment income | $ | 21,058 | $ | 17,863 | $ | 19,401 | $ | 46,320 | $ | 29,136 | |||||||||
(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) | 88.0 | �% | 88.4 | �% | 88.7 | �% | 88.6 | �% | 89.4 | �% | |||||||||
Depreciation and amortization | 0.3 | �% | 0.3 | �% | 0.3 | �% | 0.3 | �% | 0.3 | �% | |||||||||
Selling and distribution expenses | 8.4 | �% | 8.3 | �% | 7.9 | �% | 8.4 | �% | 8.2 | �% | |||||||||
General and administrative expenses | 0.6 | �% | 0.6 | �% | 0.6 | �% | 0.6 | �% | 0.6 | �% | |||||||||
Other (income) expense, net | �% | �% | �% | (0.1 | )% | �% | |||||||||||||
97.3 | �% | 97.5 | �% | 97.4 | �% | 97.8 | �% | 98.5 | �% | ||||||||||
Segment income | 2.7 | �% | 2.5 | �% | 2.6 | �% | 2.2 | �% | 1.5 | �% | |||||||||
6
Segment Information
(unaudited, in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September�30 | June�30, 2014 | September�30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Segment sales | |||||||||||||||||||
Wood Products | $ | 355,697 | $ | 283,204 | $ | 351,011 | $ | 999,982 | $ | 832,837 | |||||||||
Building Materials Distribution | 773,391 | 721,523 | 758,375 | 2,117,296 | 1,984,138 | ||||||||||||||
Intersegment eliminations | (145,769 | ) | (126,748 | ) | (148,199 | ) | (405,592 | ) | (341,823 | ) | |||||||||
$ | 983,319 | $ | 877,979 | $ | 961,187 | $ | 2,711,686 | $ | 2,475,152 | ||||||||||
Segment income (loss) | |||||||||||||||||||
Wood Products | $ | 40,631 | $ | 17,928 | $ | 31,213 | $ | 84,891 | $ | 61,781 | |||||||||
Building Materials Distribution | 21,058 | 17,863 | 19,401 | 46,320 | 29,136 | ||||||||||||||
Corporate and Other | (5,814 | ) | (5,243 | ) | (4,444 | ) | (14,698 | ) | (13,883 | ) | |||||||||
55,875 | 30,548 | 46,170 | 116,513 | 77,034 | |||||||||||||||
Interest expense | (5,514 | ) | (5,174 | ) | (5,519 | ) | (16,545 | ) | (14,846 | ) | |||||||||
Interest income | 57 | 88 | 53 | 180 | 212 | ||||||||||||||
Income before income taxes | $ | 50,418 | $ | 25,462 | $ | 40,704 | $ | 100,148 | $ | 62,400 | |||||||||
EBITDA (b) | |||||||||||||||||||
Wood Products | $ | 51,342 | $ | 24,614 | $ | 41,257 | $ | 115,626 | $ | 81,237 | |||||||||
Building Materials Distribution | 23,506 | 20,108 | 21,795 | 53,469 | 35,776 | ||||||||||||||
Corporate and Other | (5,770 | ) | (5,212 | ) | (4,400 | ) | (14,577 | ) | (13,774 | ) | |||||||||
$ | 69,078 | $ | 39,510 | $ | 58,652 | $ | 154,518 | $ | 103,239 | ||||||||||
See accompanying summary notes to consolidated financial statements and segment information.
7
Boise Cascade Company
Consolidated Balance Sheets
(unaudited, in thousands)
September�30, 2014 | December�31, 2013 | |||||||
ASSETS | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 169,974 | $ | 118,249 | ||||
Receivables | � | |||||||
Trade, less allowances of $2,422 and $2,509 | 212,801 | 152,240 | ||||||
Related parties | 1,111 | 583 | ||||||
Other | 7,164 | 7,268 | ||||||
Inventories | 398,871 | 383,359 | ||||||
Deferred income taxes | 20,302 | 18,151 | ||||||
Prepaid expenses and other | 8,855 | 7,855 | ||||||
Total current assets | 819,078 | 687,705 | ||||||
� | ||||||||
Property and equipment, net | 362,500 | 360,985 | ||||||
Timber deposits | 11,304 | 6,266 | ||||||
Deferred financing costs | 7,453 | 8,334 | ||||||
Goodwill | 21,823 | 21,823 | ||||||
Intangible assets, net | 10,207 | 10,277 | ||||||
Deferred income taxes | 760 | |||||||
Other assets | 8,734 | 8,036 | ||||||
Total assets | $ | 1,241,099 | $ | 1,104,186 | ||||
8
Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except per-share data)
September�30, 2014 | December�31, 2013 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current | ||||||||
Accounts payable | ||||||||
Trade | $ | 185,420 | $ | 139,636 | ||||
Related parties | 2,975 | 2,484 | ||||||
Accrued liabilities | � | |||||||
Compensation and benefits | 69,695 | 60,527 | ||||||
Income taxes payable | 13,055 | 166 | ||||||
Interest payable | 8,076 | 3,294 | ||||||
Other | 40,011 | 32,910 | ||||||
Total current liabilities | 319,232 | 239,017 | ||||||
Debt | � | |||||||
Long-term debt | 301,466 | 301,613 | ||||||
Other | � | |||||||
Compensation and benefits | 81,198 | 96,536 | ||||||
Other long-term liabilities | 18,178 | 14,539 | ||||||
99,376 | 111,075 | |||||||
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, 43,274 and 43,229 shares issued, respectively | 433 | 432 | ||||||
Treasury Stock, 3,864 shares at cost | (100,000 | ) | (100,000 | ) | ||||
Additional paid-in capital | 500,879 | 496,593 | ||||||
Accumulated other comprehensive loss | (55,260 | ) | (55,249 | ) | ||||
Retained earnings | 174,973 | 110,705 | ||||||
Total stockholders' equity | 521,025 | 452,481 | ||||||
Total liabilities and stockholders' equity | $ | 1,241,099 | $ | 1,104,186 | ||||
9
Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Nine Months Ended | ||||||||
September�30 | ||||||||
2014 | 2013 | |||||||
Cash provided by (used for) operations | ||||||||
Net income | $ | 64,268 | $ | 107,108 | ||||
Items in net income not using (providing) cash | � | |||||||
Depreciation and amortization, including deferred financing costs and other | 39,223 | 27,573 | ||||||
Stock-based compensation | 4,186 | 1,862 | ||||||
Pension expense | 597 | 8,104 | ||||||
Deferred income taxes | 1,913 | (65,095 | ) | |||||
Other | (1,609 | ) | (628 | ) | ||||
Decrease (increase) in working capital, net of acquisitions | � | |||||||
Receivables | (61,002 | ) | (63,987 | ) | ||||
Inventories | (15,512 | ) | (36,440 | ) | ||||
Prepaid expenses and other | (1,695 | ) | (1,624 | ) | ||||
Accounts payable and accrued liabilities | 62,003 | 50,011 | ||||||
Pension contributions | (11,675 | ) | (10,352 | ) | ||||
Income taxes payable | 14,883 | 2,218 | ||||||
Other | (7,482 | ) | (862 | ) | ||||
Net cash provided by operations | 88,098 | 17,888 | ||||||
Cash provided by (used for) investment | ||||||||
Expenditures for property and equipment | (40,860 | ) | (29,935 | ) | ||||
Acquisitions of businesses and facilities | (102,002 | ) | ||||||
Proceeds from sales of assets | 4,726 | 1,536 | ||||||
Other | 41 | 9 | ||||||
Net cash used for investment | (36,093 | ) | (130,392 | ) | ||||
Cash provided by (used for) financing | ||||||||
Net proceeds from issuance of common stock | 262,488 | |||||||
Treasury stock purchased | (100,000 | ) | ||||||
Issuances of long-term debt, including revolving credit facility | 57,600 | 130,000 | ||||||
Payments of long-term debt, including revolving credit facility | (57,600 | ) | (80,000 | ) | ||||
Financing costs | (11 | ) | (1,854 | ) | ||||
Other | (269 | ) | 193 | |||||
Net cash provided by (used for) financing | (280 | ) | 210,827 | |||||
Net increase in cash and cash equivalents | 51,725 | 98,323 | ||||||
Balance at beginning of the period | 118,249 | 45,893 | ||||||
Balance at end of the period | $ | 169,974 | $ | 144,216 | ||||
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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 Companys 2013 Form 10-K and the Companys other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.
(a) | The nine months ended September 30, 2013 includes a $68.7 million income tax benefit associated with the recording of net deferred tax assets upon the Company's conversion from a limited liability company to a corporation. |
(b) | EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. The following table reconciles net income to EBITDA for the three months ended September�30, 2014 and 2013, and June�30, 2014, and the nine months ended September�30, 2014 and 2013: |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September�30 | June�30, 2014 | September�30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||
Net income | $ | 32,285 | $ | 15,860 | $ | 26,418 | $ | 64,268 | $ | 107,108 | |||||||||
Interest expense | 5,514 | 5,174 | 5,519 | 16,545 | 14,846 | ||||||||||||||
Interest income | (57 | ) | (88 | ) | (53 | ) | (180 | ) | (212 | ) | |||||||||
Income tax provision (benefit) | 18,133 | 9,602 | 14,286 | 35,880 | (44,708 | ) | |||||||||||||
Depreciation and amortization | 13,203 | 8,962 | 12,482 | 38,005 | 26,205 | ||||||||||||||
EBITDA | $ | 69,078 | $ | 39,510 | $ | 58,652 | $ | 154,518 | $ | 103,239 | |||||||||
11
The following table reconciles segment income (loss) to EBITDA for the three months ended September�30, 2014 and 2013, and June�30, 2014, and the nine months ended September�30, 2014 and 2013:
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September�30 | June�30, 2014 | September�30 | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Wood Products | ||||||||||||||||||||
Segment income | $ | 40,631 | $ | 17,928 | $ | 31,213 | $ | 84,891 | $ | 61,781 | ||||||||||
Depreciation and amortization | 10,711 | 6,686 | 10,044 | 30,735 | 19,456 | |||||||||||||||
EBITDA | 51,342 | 24,614 | 41,257 | 115,626 | 81,237 | |||||||||||||||
Building Materials Distribution | ||||||||||||||||||||
Segment income | 21,058 | 17,863 | 19,401 | 46,320 | 29,136 | |||||||||||||||
Depreciation and amortization | 2,448 | 2,245 | 2,394 | 7,149 | 6,640 | |||||||||||||||
EBITDA | 23,506 | 20,108 | 21,795 | 53,469 | 35,776 | |||||||||||||||
Corporate and Other | ||||||||||||||||||||
Segment loss | (5,814 | ) | (5,243 | ) | (4,444 | ) | (14,698 | ) | (13,883 | ) | ||||||||||
Depreciation and amortization | 44 | 31 | 44 | 121 | 109 | |||||||||||||||
EBITDA | (5,770 | ) | (5,212 | ) | (4,400 | ) | (14,577 | ) | (13,774 | ) | ||||||||||
Total Company EBITDA | $ | 69,078 | $ | 39,510 | $ | 58,652 | $ | 154,518 | $ | 103,239 | ||||||||||
12
Exhibit 99.2
Boise Cascade Company
Quarterly Statistical Information
Wood Products Segment | |||||||||||||||
2014 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
�LVL sales volume (MCF) | 2,642 | 3,434 | 3,602 | 9,678 | |||||||||||
�I-joist sales volume (MELF) | 39,839 | 56,813 | 56,403 | 153,055 | |||||||||||
�Plywood sales volume (MSF 3/8") | 414,443 | 430,404 | 396,339 | 1,241,186 | |||||||||||
�Lumber sales volume (MBF) | 45,883 | 56,799 | 57,261 | 159,943 | |||||||||||
�LVL mill net sales price ($/CF) | $ | 16.00 | $ | 16.28 | $ | 16.59 | $ | 16.32 | |||||||
�I-joist mill net sales price ($/MELF) | $ | 1,016 | $ | 1,068 | $ | 1,095 | $ | 1,064 | |||||||
�Plywood net sales price ($/MSF 3/8") | $ | 294 | $ | 301 | $ | 335 | $ | 309 | |||||||
�Lumber net sales price ($/MBF) | $ | 569 | $ | 574 | $ | 546 | $ | 563 | |||||||
�Segment sales (000) | $ | 293,274 | $ | 351,011 | $ | 355,697 | $ | 999,982 | |||||||
�Segment income (000) | $ | 13,047 | $ | 31,213 | $ | 40,631 | $ | 84,891 | |||||||
�Segment depreciation and amortization (000) | $ | 9,980 | $ | 10,044 | $ | 10,711 | $ | 30,735 | |||||||
�Segment EBITDA (000)1 | $ | 23,027 | $ | 41,257 | $ | 51,342 | $ | 115,626 | |||||||
�EBITDA as a percentage of sales | 7.9 | % | 11.8 | % | 14.4 | % | 11.6 | % | |||||||
�Capital spending (000) | $ | 9,714 | $ | 5,659 | $ | 11,541 | $ | 26,914 | |||||||
�Receivables (000) | $ | 62,203 | $ | 70,288 | $ | 66,882 | |||||||||
�Inventories (000) | $ | 154,412 | $ | 149,388 | $ | 158,324 | |||||||||
�Accounts payable (000) | $ | 45,719 | $ | 55,365 | $ | 55,581 | |||||||||
2013 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
�LVL sales volume (MCF) | 2,718 | 2,681 | 2,996 | 2,699 | 11,094 | ||||||||||
�I-joist sales volume (MELF) | 40,937 | 43,954 | 50,552 | 43,966 | 179,409 | ||||||||||
�Plywood sales volume (MSF 3/8") | 345,728 | 354,904 | 343,922 | 427,969 | 1,472,523 | ||||||||||
�Lumber sales volume (MBF) | 49,784 | 51,722 | 50,391 | 46,850 | 198,747 | ||||||||||
�LVL mill net sales price ($/CF) | $ | 15.25 | $ | 15.67 | $ | 15.85 | $ | 15.90 | $ | 15.68 | |||||
�I-joist mill net sales price ($/MELF) | $ | 964 | $ | 989 | $ | 1,017 | $ | 1,024 | $ | 1,000 | |||||
�Plywood net sales price ($/MSF 3/8") | $ | 331 | $ | 328 | $ | 303 | $ | 302 | $ | 316 | |||||
�Lumber net sales price ($/MBF) | $ | 463 | $ | 515 | $ | 515 | $ | 543 | $ | 509 | |||||
�Segment sales (000) | $ | 269,216 | $ | 280,417 | $ | 283,204 | $ | 301,252 | $ | 1,134,089 | |||||
�Segment income (000) | $ | 20,808 | $ | 23,045 | $ | 17,928 | $ | 15,892 | $ | 77,673 | |||||
�Segment depreciation and amortization (000) | $ | 6,253 | $ | 6,517 | $ | 6,686 | $ | 9,208 | $ | 28,664 | |||||
�Segment EBITDA (000)1 | $ | 27,061 | $ | 29,562 | $ | 24,614 | $ | 25,100 | $ | 106,337 | |||||
�EBITDA as a percentage of sales | 10.1 | % | 10.5 | % | 8.7 | % | 8.3 | % | 9.4 | % | |||||
�Capital spending (000)2 | $ | 3,519 | $ | 5,703 | $ | 9,065 | $ | 12,268 | $ | 30,555 | |||||
�Receivables (000) | $ | 60,386 | $ | 58,363 | $ | 64,815 | $ | 49,425 | |||||||
�Inventories (000) | $ | 124,030 | $ | 123,467 | $ | 145,198 | $ | 154,708 | |||||||
�Accounts payable (000) | $ | 40,661 | $ | 47,413 | $ | 54,150 | $ | 41,924 | |||||||
1
Boise Cascade Company
Quarterly Statistical Information (continued)
Wood Products Segment (continued) | |||||||||||||||
2012 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
�LVL sales volume (MCF) | 2,116 | 2,271 | 2,586 | 2,107 | 9,080 | ||||||||||
�I-joist sales volume (MELF) | 29,974 | 38,640 | 41,826 | 34,541 | 144,981 | ||||||||||
�Plywood sales volume (MSF 3/8") | 327,867 | 346,360 | 343,350 | 338,702 | 1,356,279 | ||||||||||
�Lumber sales volume (MBF) | 40,734 | 48,925 | 50,274 | 48,146 | 188,079 | ||||||||||
�LVL mill net sales price ($/CF) | $ | 15.05 | $ | 14.94 | $ | 14.75 | $ | 14.45 | $ | 14.80 | |||||
�I-joist mill net sales price ($/MELF) | $ | 935 | $ | 928 | $ | 915 | $ | 909 | $ | 921 | |||||
�Plywood net sales price ($/MSF 3/8") | $ | 267 | $ | 290 | $ | 318 | $ | 304 | $ | 295 | |||||
�Lumber net sales price ($/MBF) | $ | 414 | $ | 448 | $ | 430 | $ | 426 | $ | 430 | |||||
�Segment sales (000) | $ | 211,143 | $ | 241,842 | $ | 259,759 | $ | 230,508 | $ | 943,252 | |||||
�Segment income (000) | $ | 10,811 | $ | 15,548 | $ | 22,464 | $ | 6,971 | $ | 55,794 | |||||
�Segment depreciation and amortization (000) | $ | 5,905 | $ | 6,113 | $ | 6,164 | $ | 6,262 | $ | 24,444 | |||||
�Segment EBITDA (000)1 | $ | 16,716 | $ | 21,661 | $ | 28,628 | $ | 13,233 | $ | 80,238 | |||||
�EBITDA as a percentage of sales | 7.9 | % | 9.0 | % | 11.0 | % | 5.7 | % | 8.5 | % | |||||
�Capital spending (000)2 | $ | 2,762 | $ | 3,962 | $ | 5,324 | $ | 8,253 | $ | 20,301 | |||||
�Receivables (000) | $ | 46,748 | $ | 52,906 | $ | 52,813 | $ | 36,450 | |||||||
�Inventories (000) | $ | 107,764 | $ | 106,036 | $ | 119,322 | $ | 120,598 | |||||||
�Accounts payable (000) | $ | 31,409 | $ | 41,583 | $ | 44,460 | $ | 32,436 | |||||||
1Segment EBITDA is calculated as segment income before depreciation and amortization. | |||||||||||||||
2 Capital spending in fourth quarter 2013, third quarter 2013, and first quarter 2012 excludes $1.0 million, $102.0 million, and $2.4 million, respectively, of cash paid for the acquisitions of businesses and facilities. | |||||||||||||||
2
Boise Cascade Company
Quarterly Statistical Information (continued)
Building Materials Distribution Segment | |||||||||||||||
2014 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
�Commodity sales | 52.2 | % | 48.7 | % | 47.7 | % | 49.3 | % | |||||||
�General line sales | 31.9 | % | 33.7 | % | 34.8 | % | 33.6 | % | |||||||
�EWP sales | 15.9 | % | 17.6 | % | 17.5 | % | 17.1 | % | |||||||
�Total sales (000) | $ | 585,530 | $ | 758,375 | $ | 773,391 | $ | 2,117,296 | |||||||
�Gross margin1 | 10.6 | % | 11.3 | % | 12.0 | % | 11.4 | % | |||||||
�Segment income (000) | $ | 5,861 | $ | 19,401 | $ | 21,058 | $ | 46,320 | |||||||
�Segment depreciation and amortization (000) | $ | 2,307 | $ | 2,394 | $ | 2,448 | $ | 7,149 | |||||||
�Segment EBITDA (000)2 | $ | 8,168 | $ | 21,795 | $ | 23,506 | $ | 53,469 | |||||||
�EBITDA as a percentage of sales | 1.4 | % | 2.9 | % | 3.0 | % | 2.5 | % | |||||||
�Capital spending (000) | $ | 2,720 | $ | 3,551 | $ | 7,161 | $ | 13,432 | |||||||
�Receivables (000) | $ | 163,820 | $ | 181,390 | $ | 176,920 | |||||||||
�Inventories (000) | $ | 266,647 | $ | 261,176 | $ | 240,547 | |||||||||
�Accounts payable (000) | $ | 167,152 | $ | 174,402 | $ | 149,548 | |||||||||
2013 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
�Commodity sales | 54.1 | % | 51.2 | % | 49.5 | % | 50.9 | % | 51.3 | % | |||||
�General line sales | 31.0 | % | 34.4 | % | 33.9 | % | 32.2 | % | 33.0 | % | |||||
�EWP sales | 14.9 | % | 14.4 | % | 16.6 | % | 16.9 | % | 15.7 | % | |||||
�Total sales (000) | $ | 581,129 | $ | 681,486 | $ | 721,523 | $ | 615,467 | $ | 2,599,605 | |||||
�Gross margin1 | 11.0 | % | 9.1 | % | 11.6 | % | 11.7 | % | 10.9 | % | |||||
�Segment income (000) | $ | 7,997 | $ | 3,276 | $ | 17,863 | $ | 10,795 | $ | 39,931 | |||||
�Segment depreciation and amortization (000) | $ | 2,178 | $ | 2,217 | $ | 2,245 | $ | 2,593 | $ | 9,233 | |||||
�Segment EBITDA (000)2 | $ | 10,175 | $ | 5,493 | $ | 20,108 | $ | 13,388 | $ | 49,164 | |||||
�EBITDA as a percentage of sales | 1.8 | % | 0.8 | % | 2.8 | % | 2.2 | % | 1.9 | % | |||||
�Capital spending (000) | $ | 1,797 | $ | 3,023 | $ | 6,605 | $ | 3,273 | $ | 14,698 | |||||
�Receivables (000) | $ | 168,056 | $ | 172,505 | $ | 167,479 | $ | 126,399 | |||||||
�Inventories (000) | $ | 263,073 | $ | 244,883 | $ | 223,982 | $ | 228,752 | |||||||
�Accounts payable (000) | $ | 181,496 | $ | 156,483 | $ | 144,683 | $ | 110,231 | |||||||
3
Boise Cascade Company
Quarterly Statistical Information (continued)
Building Materials Distribution Segment (continued) | |||||||||||||||
2012 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
�Commodity sales | 50.2 | % | 48.0 | % | 49.4 | % | 52.3 | % | 49.9 | % | |||||
�General line sales | 36.5 | % | 38.6 | % | 36.2 | % | 33.8 | % | 36.3 | % | |||||
�EWP sales | 13.3 | % | 13.4 | % | 14.4 | % | 13.9 | % | 13.8 | % | |||||
�Total sales (000) | $ | 451,416 | $ | 580,545 | $ | 605,206 | $ | 553,068 | $ | 2,190,235 | |||||
�Gross margin1 | 11.5 | % | 11.8 | % | 12.0 | % | 11.5 | % | 11.7 | % | |||||
�Segment income (loss) (000) | $ | (819 | ) | $ | 8,699 | $ | 10,300 | $ | 5,852 | $ | 24,032 | ||||
�Segment depreciation and amortization (000) | $ | 2,182 | $ | 2,194 | $ | 2,263 | $ | 2,203 | $ | 8,842 | |||||
�Segment EBITDA (000)2 | $ | 1,363 | $ | 10,893 | $ | 12,563 | $ | 8,055 | $ | 32,874 | |||||
�EBITDA as a percentage of sales | 0.3 | % | 1.9 | % | 2.1 | % | 1.5 | % | 1.5 | % | |||||
�Capital spending (000) | $ | 1,960 | $ | 2,241 | $ | 1,405 | $ | 1,451 | $ | 7,057 | |||||
�Receivables (000) | $ | 132,401 | $ | 145,381 | $ | 139,579 | $ | 115,366 | |||||||
�Inventories (000) | $ | 210,832 | $ | 213,096 | $ | 199,255 | $ | 205,207 | |||||||
�Accounts payable (000) | $ | 145,058 | $ | 139,652 | $ | 128,540 | $ | 108,532 | |||||||
1We define gross margin as "Sales" less "Materials, labor, and other operating expenses (excluding depreciation)." Substantially all costs included in "Materials, labor, and other operating expenses (excluding depreciation)" for our Building Materials Distribution segment are for inventory purchased for resale. Gross margin percentage is gross margin as a percentage of segment sales. | |||||||||||||||
2Segment EBITDA is calculated as segment income (loss) before depreciation and amortization. | |||||||||||||||
4
Boise Cascade Company
Quarterly Statistical Information (continued)
Reconciliation of Non-GAAP Financial Measures
(000)
Total Boise Cascade Company | |||||||||||||||
EBITDA represents income before interest (interest expense and interest income), income taxes, depreciation and amortization. The following tables reconcile net income to EBITDA for the periods noted below: | |||||||||||||||
2014 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
Net income | $ | 5,565 | $ | 26,418 | $ | 32,285 | $ | 64,268 | |||||||
Interest expense | 5,512 | 5,519 | 5,514 | 16,545 | |||||||||||
Interest income | (70 | ) | (53 | ) | (57 | ) | (180 | ) | |||||||
Income tax provision | 3,461 | 14,286 | 18,133 | 35,880 | |||||||||||
Depreciation and amortization | 12,320 | 12,482 | 13,203 | 38,005 | |||||||||||
EBITDA | $ | 26,788 | $ | 58,652 | $ | 69,078 | $ | 154,518 | |||||||
2013 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
Net income1 | $ | 80,836 | $ | 10,412 | $ | 15,860 | $ | 9,828 | $ | 116,936 | |||||
Interest expense | 4,891 | 4,781 | 5,174 | 5,580 | 20,426 | ||||||||||
Interest income | (62 | ) | (62 | ) | (88 | ) | (29 | ) | (241 | ) | |||||
Income tax provision (benefit)1 | (61,107 | ) | 6,797 | 9,602 | 5,920 | (38,788 | ) | ||||||||
Depreciation and amortization | 8,477 | 8,766 | 8,962 | 11,833 | 38,038 | ||||||||||
EBITDA | $ | 33,035 | $ | 30,694 | $ | 39,510 | $ | 33,132 | $ | 136,371 | |||||
2012 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
Net income | $ | 1,668 | $ | 15,047 | $ | 23,503 | $ | 1,278 | $ | 41,496 | |||||
Interest expense | 4,813 | 4,818 | 4,840 | 7,286 | 21,757 | ||||||||||
Interest income | (107 | ) | (87 | ) | (87 | ) | (111 | ) | (392 | ) | |||||
Income tax provision | 61 | 78 | 104 | 64 | 307 | ||||||||||
Depreciation and amortization | 8,119 | 8,338 | 8,461 | 8,489 | 33,407 | ||||||||||
EBITDA | $ | 14,554 | $ | 28,194 | $ | 36,821 | $ | 17,006 | $ | 96,575 | |||||
1Net income for the three months ended March 31, 2013, and the year ended December 31, 2013, includes a $68.7 million income tax benefit associated with the recording of net deferred tax assets upon our conversion from a limited liability company to a corporation. | |||||||||||||||
5