2013-03-07 14:47:05 -
For Immediate Release: March 7, 2013
BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC)
today reported financial results for the quarter and year ended December
31, 2012.
Fourth Quarter and Year End 2012 Operating Results
* Total sales in fourth quarter 2012 were $694.6 million, compared with $547.4
million in fourth quarter 2011. Total sales for the full year improved by
24% to $2,779.1 million: growth of 23% in our Building Materials
Distribution (BMD) segment and 32% in our Wood Products segment.
* Net income was $1.3 million in fourth quarter 2012, compared with a net loss
of $13.8 million in the same period last year. Net income improved to $41.5
million for the full year 2012, compared with a net loss of $46.4 million in
2011.
* Earnings before interest, taxes, depreciation, and amortization (EBITDA)
were $17.0 million for the fourth quarter 2012 and $96.6 million for the
full year.
U.S. housing starts improved 28% to 780,000 in 2012, compared with 609,000 in
2011. Housing start levels remain significantly below the historical average for
the last 20 years of approximately 1.4 million units per year. However, as of
February 2013, Blue Chip consensus forecast for 2013 is 990,000, a 27% increase
from 2012 levels.
"We experienced a fourth consecutive quarter of positive income from operations,
underscored by strong plywood prices and improved demand for the products we
manufacture and distribute. We are pleased with our successful initial public
offering (IPO) completed on February 11, 2013. The IPO, together with our debt
refinancing in early fourth quarter 2012, provides the Company with a strong
liquidity position to take advantage of continued improvement in the markets,
execute strategic initiatives within our existing operations, and evaluate
growth opportunities," stated Tom Carlile, CEO.
4Q 2012 4Q 2011 3Q 2012 2012 2011
------------- ------------- ------------- --------------- --------------
(thousands)
Total $ 694,580 $ 547,442 $ 764,596 $ 2,779,062 $ 2,248,088
sales
Net $ 1,278 $ (13,791 ) $ 23,503 $ 41,496 $ (46,363 )
income
(loss)
Total $ 17,006 $ 545 $ 36,821 $ 96,575 $ 9,479
Company
EBITDA
BMD $ 8,055 $ 1,344 $ 12,563 $ 32,874 $ 10,384
segment
EBITDA
Wood $ 13,233 $ 2,216 $ 28,628 $ 80,238 $ 13,316
Products
segment
EBITDA
Building Materials Distribution Segment
BMD segment sales were $553.1 million in the fourth quarter, up 29% from the
same quarter a year ago. Volumes for the segment were up approximately 14%, with
prices up about 13%. BMD reported $8.1 million of EBITDA in fourth quarter, up
from the $1.3 million reported in fourth quarter 2011. Gross margins were 11.5%
in the quarter, compared with 11.9% in the same quarter a year ago. Total
expenses were lower as a percent of sales, resulting in an increased operating
margin. For the full year 2012, BMD reported EBITDA of $32.9 million on $2.2
billion of sales, compared with 2011 EBITDA of $10.4 million on sales of $1.8
billion.
Wood Products Segment
Wood Products segment sales in the fourth quarter were $230.5 million, up 28%
from the same quarter a year ago. The sales increase was attributable primarily
to 28% higher plywood sales prices and 19% higher plywood sales volumes, 18%
higher laminated veneer lumber (LVL) sales volumes, 31% higher I-joist sales
volumes, and 28% higher lumber sales volumes. The segment reported $13.2 million
of EBITDA for the quarter, compared with $2.2 million of EBITDA reported in
fourth quarter 2011. The main factors contributing to the improved financial
performance were improved plywood pricing and lower per-unit manufacturing costs
resulting from higher sales volumes for engineered wood products (EWP) and
plywood. For the full year 2012, Wood Products reported sales of $943.3 million
and EBITDA of $80.2 million. This compares with 2011 sales of $712.5 million and
EBITDA of $13.3 million.
Balance Sheet
Boise Cascade ended 2012 with $54.5 million of cash and $195.6 million of
undrawn committed bank line availability, for total available liquidity of
$250.2 million. At December 31, 2012, Boise Cascade reported outstanding debt of
$275.0 million. In February 2013, we received net proceeds of approximately $263
million from our IPO.
Outlook
We expect to continue to experience demand below historical levels for the
products we manufacture and distribute. However, the housing industry is showing
signs of improvement in the U.S. and we remain optimistic that the recent
improvement in demand for our products will continue in 2013. Favorable
commodity wood product prices during 2012 have continued into 2013 but could be
volatile in response to operating rates and inventory levels in various
distribution channels. We expect to manage our production levels to our sales
demand, which will likely result in operating some of our facilities below their
capacity.
About Boise Cascade
Boise Cascade Company is a leading U.S. wholesale distributor of building
products and one of the largest producers of engineered wood products and
plywood in North America. 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, March 7, at
11 a.m. Eastern, at which time we will review the company's recent performance.
You can join the webcast through our website by going to www.bc.com and clicking
on the link to the webcast under the News & Events heading. Please go to the
website at least 15 minutes before the start of the webcast to register. To join
the conference call, dial 866-203-2528 (international callers should dial
617-213-8847), participant passcode 94625744, at least 10 minutes before the
start of the call.
The archived webcast will be available in the News & Events section of our
website. A replay of the conference call will be available from Thursday, March
7, at 2 p.m. Eastern through Thursday, March 14, at 11 p.m. Eastern. Playback
numbers are 888-286-8010 for U.S. calls and 617-801-6888 for international
calls, and the passcode will be 42814497.
Basis of Presentation
We present our consolidated financial statements in accordance with U.S.
generally accepted accounting principles (GAAP). Our earnings release also
supplements the GAAP presentations by reflecting EBITDA, a non-GAAP financial
measure. EBITDA is defined as income (loss) before interest (interest expense
and interest income), income taxes, and depreciation and amortization. EBITDA is
the primary measure used by our chief operating decision maker 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 internal decision makers 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 (loss), income (loss) 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 (loss) 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 the limitations of EBITDA 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
(in thousands)
Three Months Ended Year Ended
------------------------------------------- ------------------------------
December 31 September 30, December 31
--------------------------- 2012 ------------------------------
2012 2011 2012 2011
------------- ------------- --------------- --------------- --------------
Sales
Trade $ 689,486 $ 542,288 $ 759,330 $ 2,759,290 $
2,229,325
Related 5,094 5,154 5,266 19,772
18,763
parties
------------- ------------- --------------- --------------- --------------
694,580 547,442 764,596 2,779,062
2,248,088
------------- ------------- --------------- --------------- --------------
Costs and
expenses
Materials, 592,022 476,772 638,994 2,343,174
1,952,619
labor, and
other
operating
expenses
(excluding
depreciation)
Materials, 15,567 8,918 14,131 60,271
40,058
labor, and
other
operating
expenses from
related
parties
(excluding
depreciation)
Depreciation 8,489 9,522 8,461 33,407
37,022
and
amortization
Selling and 58,201 51,666 62,572 235,055
204,998
distribution
expenses
General and 11,200 8,786 12,185 43,122
37,242
administrative
expenses
Other (income) 496 854 121 902
3,195
expense, net
------------- ------------- --------------- --------------- --------------
685,975 556,518 736,464 2,715,931
2,275,134
------------- ------------- --------------- --------------- --------------
Income (loss) 8,605 (9,076 ) 28,132 63,131
(27,046 )
from
operations
------------- ------------- --------------- --------------- --------------
Foreign (88 ) 99 228 37
(497 )
exchange gain
(loss)
Interest (7,286 ) (4,813 ) (4,840 ) (21,757 ) (18,987
)
expense
Interest 111 93 87 392
407
income
------------- ------------- --------------- --------------- --------------
(7,263 ) (4,621 ) (4,525 ) (21,328 )
(19,077 )
------------- ------------- --------------- --------------- --------------
Income (loss) 1,342 (13,697 ) 23,607 41,803
(46,123 )
before income
taxes
Income tax (64 ) (94 ) (104 ) (307 ) (240
)
provision
------------- ------------- --------------- --------------- --------------
Net income $ 1,278 $ (13,791 ) $ 23,503 $ 41,496 $
(46,363 )
(loss)
------------- ------------- --------------- --------------- --------------
Segment Information
(in thousands)
Three Months Ended Year Ended
------------------------------------------- ------------------------------
December 31 September 30, December 31
--------------------------- 2012 ------------------------------
2012 2011 2012 2011
------------- ------------- --------------- --------------- --------------
Segment
sales
Building $ 553,068 $ 429,424 $ 605,206 $ 2,190,235 $ 1,779,369
Materials
Distribution
Wood 230,508 180,250 259,759 943,252 712,461
Products
Intersegment (88,996 ) (62,232 ) (100,369 ) (354,425 ) (243,742 )
eliminations
------------- ------------- --------------- --------------- --------------
$ 694,580 $ 547,442 $ 764,596 $ 2,779,062 $ 2,248,088
------------- ------------- --------------- --------------- --------------
Segment
income
(loss)
Building $ 5,852 $ (830 ) $ 10,300 $ 24,032 $ 1,988
Materials
Distribution
Wood 6,971 (5,073 ) 22,464 55,794 (15,071 )
Products
Corporate (4,306 ) (3,074 ) (4,404 ) (16,658 ) (14,460 )
and Other
------------- ------------- --------------- --------------- --------------
8,517 (8,977 ) 28,360 63,168 (27,543
)
------------- ------------- --------------- --------------- --------------
Interest (7,286 ) (4,813 ) (4,840 ) (21,757 ) (18,987 )
expense
Interest 111 93 87 392 407
income
------------- ------------- --------------- --------------- --------------
Income $ 1,342 $ (13,697 ) $ 23,607 $ 41,803 $ (46,123 )
(loss)
before
income taxes
------------- ------------- --------------- --------------- --------------
EBITDA (a)
Building $ 8,055 $ 1,344 $ 12,563 $ 32,874 $ 10,384
Materials
Distribution
Wood 13,233 2,216 28,628 80,238 13,316
Products
Corporate (4,282 ) (3,015 ) (4,370 ) (16,537 ) (14,221 )
and Other
------------- ------------- --------------- --------------- --------------
$ 17,006 $ 545 $ 36,821 $ 96,575 $ 9,479
------------- ------------- --------------- --------------- --------------
Boise Cascade Company
Consolidated Balance Sheets
(in thousands)
December 31
--------------------------
2012 2011
------------- ------------
ASSETS
Current
Cash and cash equivalents $ 54,507 $ 182,455
Receivables
Trade, less allowances of $2,696 and $2,142 134,743 118,901
Related parties 674 1,236
Other 6,204 3,796
Inventories 325,806 283,978
Prepaid expenses and other 5,523 4,864
------------- ------------
527,457 595,230
------------- ------------
Property and equipment, net 265,924 266,456
Timber deposits 6,221 8,327
Deferred financing costs 7,562 4,962
Goodwill 12,170 12,170
Intangible assets 8,900 8,900
Other assets 8,164 6,786
------------- ------------
Total assets $ 836,398 $ 902,831
------------- ------------
Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data)
December 31
--------------------------
2012 2011
------------- ------------
LIABILITIES AND STOCKHOLDER'S EQUITY
Current
Accounts payable
Trade $ 140,192 $ 116,758
Related parties 1,950 1,142
Accrued liabilities
Compensation and benefits 61,814 32,267
Interest payable 3,188 3,326
Other 29,043 24,486
------------- ------------
236,187 177,979
------------- ------------
Debt
Long-term debt 275,000 219,560
------------- ------------
Other
Compensation and benefits 206,668 200,248
Other long-term liabilities 14,336 13,676
------------- ------------
221,004 213,924
------------- ------------
Redeemable equity 6,443 8,749
------------- ------------
Commitments and contingent liabilities
Stockholder's 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; 300,000 297 297
shares authorized, 29,700 shares issued and
outstanding
Additional paid-in capital 256,927 482,894
Accumulated other comprehensive loss (121,229 ) (120,845 )
Accumulated deficit (38,231 ) (79,727 )
------------- ------------
Total stockholder's equity 97,764 282,619
------------- ------------
Total liabilities and stockholder's equity $ 836,398 $ 902,831
------------- ------------
Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31
-------------------------
2012 2011
------------ ------------
Cash provided by (used for) operations
Net income (loss) $ 41,496 $ (46,363 )
Items in net income (loss) not using (providing) cash
Depreciation and amortization, including deferred 37,211 39,232
financing costs and other
Pension expense 12,653 11,368
Other (471 ) 2,220
Decrease (increase) in working capital, net of
acquisitions
Receivables (17,238 ) (15,675 )
Inventories (41,828 ) (20,899 )
Prepaid expenses and other (652 ) (72 )
Accounts payable and accrued liabilities 53,041 1,878
Pension contributions (8,486 ) (13,621 )
Other 4,410 (1,049 )
------------ ------------
Net cash provided by (used for) operations 80,136 (42,981 )
------------ ------------
Cash provided by (used for) investment
Expenditures for property and equipment (27,386 ) (33,537 )
Acquisitions of businesses and facilities (2,355 ) (5,782 )
Proceeds from sales of assets 246 3,126
Other 61 (424 )
------------ ------------
Net cash used for investment (29,434 ) (36,617 )
------------ ------------
Cash provided by (used for) financing
Issuances of long-term debt 300,000 -
Payments of long-term debt (244,560 ) -
Distributions to Boise Cascade Holdings, L.L.C. (228,268 ) -
Financing costs (5,822 ) (2,548 )
------------ ------------
Net cash used for financing (178,650 ) (2,548 )
------------ ------------
Net decrease in cash and cash equivalents (127,948 ) (82,146 )
Balance at beginning of the period 182,455 264,601
------------ ------------
Balance at end of the period $ 54,507 $ 182,455
------------ ------------
Summary Notes to Consolidated Financial Statements and Segment Information
The Consolidated 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 2012 Form 10-K. Net income (loss) for all periods
presented involved estimates and accruals.
a. EBITDA represents income (loss) before interest (interest expense and
interest income), income taxes, and depreciation and amortization. The
following table reconciles net income (loss) to EBITDA for the three months
ended December 31, 2012 and December 31, 2011, and September 30, 2012 and
the years ended December 31, 2012 and 2011:
Three Months Ended Year Ended
------------------------------------- -----------------------
December 31 September December 31
------------------------ 30, -----------------------
2012 2011 2012 2012 2011
------------ ----------- ------------ ------------ ----------
(in thousands)
Net income (loss) 1,278 (13,791 ) 23,503 41,496 (46,363 )
Interest expense 7,286 4,813 4,840 21,757 18,987
Interest income (111 ) (93 ) (87 ) (392 ) (407 )
Income tax 64 94 104 307 240
provision
Depreciation and 8,489 9,522 8,461 33,407 37,022
amortization
------------ ----------- ------------ ------------ ----------
EBITDA $ 17,006 $ 545 $ 36,821 $ 96,575 $ 9,479
------------ ----------- ------------ ------------ ----------
The following table reconciles segment income (loss) to EBITDA for the three
months ended December 31, 2012 and December 31, 2011, and September 30, 2012 and
the years ended December 31, 2012 and 2011:
Three Months Ended Year Ended
--------------------------------------- -----------------------
December 31 September 30, December 31
----------------------- 2012 -----------------------
2012 2011 2012 2011
------------ ---------- --------------- ------------ ----------
(in thousands)
Building
Materials
Distribution
Segment income $ 5,852 $ (830 ) $ 10,300 $ 24,032 $ 1,988
(loss)
Depreciation 2,203 2,174 2,263 8,842 8,396
and
amortization
------------ ---------- --------------- ------------ ----------
EBITDA 8,055 1,344 12,563 32,874 10,384
------------ ---------- --------------- ------------ ----------
Wood Products
Segment income 6,971 (5,073 ) 22,464 55,794 (15,071 )
(loss)
Depreciation 6,262 7,289 6,164 24,444 28,387
and
amortization
------------ ---------- --------------- ------------ ----------
EBITDA 13,233 2,216 28,628 80,238 13,316
------------ ---------- --------------- ------------ ----------
Corporate and
Other
Segment loss (4,306 ) (3,074 ) (4,404 ) (16,658 ) (14,460 )
Depreciation 24 59 34 121 239
and
amortization
------------ ---------- --------------- ------------ ----------
EBITDA (4,282 ) (3,015 ) (4,370 ) (16,537 ) (14,221 )
------------ ---------- --------------- ------------ ----------
EBITDA $ 17,006 $ 545 $ 36,821 $ 96,575 $ 9,479
------------ ---------- --------------- ------------ ----------
Investor Contact: Wayne Rancourt, 208 384 6073
Media Contact: John Sahlberg, 208 384 6451
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Source: Boise Cascade Company via Thomson Reuters ONE
[HUG#1683576]
