Boise Cascade Company

Transcription

1 Boise Cascade Company Second Qarter 2018 Earnings Webcast Agst 6, 2018

2 Forward-Looking Statements This presentation incldes statements abot or expectations of ftre operational and financial performance that are forward-looking statements within the meaning of the Private Secrities Litigation Reform Act of The accracy of sch statements is sbject to a nmber of risks, ncertainties, and assmptions that cold case or actal reslts to differ materially from those projected, inclding, bt not limited to, prices for bilding prodcts, commodity inpt costs, the effect of general economic conditions, mortgage rates and availability, hosing demand, hosing vacancy rates, governmental reglations, nforeseen prodction disrptions, as well as natral disasters. These and other factors that cold case actal reslts to differ materially from sch forward-looking statements are discssed in greater detail in or filings with the Secrities and Exchange Commission. Forward-looking statements speak only as of the date of this presentation. We ndertake no obligation to revise them in light of new information. Finally, we ndertake no obligation to review or confirm analyst expectations or estimates that might be derived from this presentation. This presentation incldes references to EBITDA and Adjsted EBITDA, which are non-gaap financial measres within the meaning of the Secrities and Exchange Commission s Reglation G. Reconciliations of net income to EBITDA and Adjsted EBITDA and segment income to segment EBITDA are inclded as an appendix. Slide 2 Agst 6, 2018

3 Exective Smmary 2Q18 sales were $1.4 billion, p 24% from 2Q17. 2Q18 net income was $41.8 million, or $1.06 per share, p from $0.57 per share in 2Q17. Net income inclded $9.0 million, or $0.23 per share, of after-tax losses from non-cash pension settlement charges. Wood Prodcts reported 2Q18 segment income of $36.5 million, compared to $15.4 million in 2Q17: Ø Higher sales prices for plywood and EWP lifted operating margins, partially offset by higher log and OSB inpt costs. BMD reported 2Q18 segment income of $47.7 million, p from $34.5 million in 2Q17. Ø Revene growth driven by prodct price inflation and increased volme generated higher gross margin dollars and operating expense leverage. Slide 3 Agst 6, 2018

4 2Q 2018 Financial Highlights $ 1,408.1 Sales Adjsted EBITDA + 24% + 38% $1,138.9 $85.8 $ Millions 1, $ Millions 52.2 $ (231.1) (192.0) 55.9 (22.3) 30.7 (7.0) 2Q Q Q Q 2017 BMD Wood Eliminations & Other BMD Wood Corporate Slide 4 Agst 6, 2018

5 Wood Prodcts EWP (mmcf) LVL (mmelf) I-joists Q 2Q 3Q 4Q 20 1Q 2Q 3Q 4Q ($/cf) $18 $ ($/melf) $1,300 $1,200 $1,100 1,179 1,116 1,220 1,157 1,091 1,124 $14 $1,000 $900 $12 $800 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Slide 5 Agst 6, 2018

6 Wood Prodcts Plywood Sales Volme (mmsf 3/8" basis) Net Sales Price ($/msf 3/8" basis) $ $ $ $250 $200 $150 $100 $50 0 1Q 2Q 3Q 4Q $0 1Q 2Q 3Q 4Q Slide 6 Agst 6, 2018

7 Slide 7 Agst 6, 2018

8 Bilding Materials Distribtion Sales ($ Millions) (% of Sales) $1, $1,200 $1,000 $ ,214 1, $ $400 $ $0 0 1Q 2Q 3Q 4Q 1Q17 2Q17 3Q17 4Q17 1Q18 2Q Commodity General Line EWP Slide 8 Agst 6, 2018

9 Working Capital Balance Sheet Items ($ Millions) 6/30/2018 3/31/2018 Change Receivables $ $ $ 26.1 Inventory Other crrent assets (a) Acconts payable Accred liabilities (b) Net working capital $ $ $ (21.9) (a) Excldes cash and tax related items. (b) Excldes income taxes payable and interest payable. Slide 9 Agst 6, 2018

10 Debt and Liqidity Highlights ($ Millions) 6/30/2018 3/31/2018 Net Debt Total Debt $ $ Cash & cash eqivalents (210.0) (134.7) Net Debt $ $ Liqidity Position Bank lines excess availability $ $ Cash & cash eqivalents Total liqidity $ $ Slide 10 Agst 6, 2018

11 Capital Allocation Priorities Strategic capital spending in Wood Prodcts: Ø Log tilization center pgrade and dryer replacement at Chester, SC. BMD fill-in acqisitions. Additional $1.00 per share dividend payable September 17. $20 million discretionary pension contribtion. Slide 11 Agst 6, 2018

12 Otlook Crrent consenss estimate for 2018 U.S. hosing starts is 1.32 million, p abot 10% from 1.20 million million in Long-term demand fndamentals expected to spport recovery in U.S. hosing to 1.4 to 1.5 million starts over next few years. Operational focs in Wood Prodcts: Ø Ø Ø Contine to improve EWP net sales realizations. Optimize veneer flows into EWP. Drive operational changes to increase retrns on invested capital. Prsing organic and acqisition-driven growth in BMD. Deploy free cashflow effectively. Commodity wood prodcts pricing favorable bt declining, with indstry capacity additions coming on line. Slide 12 Agst 6, 2018

13 Appendix Agst 6, 2018

14 Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjsted EBITDA, which frther adjsts EBITDA to exclde the change in fair vale of interest rate swaps and loss on extingishment of debt. The following table reconciles net income to EBITDA and Adjsted EBITDA for the three months ended Jne 30, 2018 and 2017, and March 31, 2018: Three Months Ended ($ Millions) 2Q18 2Q17 1Q18 Net income $ 41.8 $ 22.2 $ 37.1 Interest expense Interest income (0.2) (0.1) (0.3) Income tax provision Depreciation and amortization EBITDA $ 86.3 $ 61.3 $ 75.0 Change in fair vale of interest rate swaps (0.5) 0.7 (1.6) Adjsted EBITDA $ 85.8 $ 62.1 $ 73.4 Slide 14 Agst 6, 2018

15 Appendix The following table reconciles segment income to EBITDA for the three months ended Jne 30, 2018 and 2017, and March 31, 2018: Three Months Ended ($ Millions) 2Q18 2Q17 1Q18 Wood Prodcts Segment income $ 36.5 $ 15.4 $ 26.1 Depreciation and amortization Segment EBITDA $ 55.9 $ 30.7 $ 43.7 Bilding Materials Distribtion Segment income $ 47.7 $ 34.5 $ 32.4 Depreciation and amortization Segment EBITDA $ 52.2 $ 38.4 $ 36.6 Slide 15 Agst 6, 2018