0001328581false00013285812023-10-302023-10-30

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 30, 2023
BOISE CASCADE COMPANY
(Exact name of registrant as specified in its charter)
Delaware
1-35805
20-1496201
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

1111 West Jefferson Street, Suite 300
Boise, Idaho 83702-5389
(Address of principal executive offices) (Zip Code)
(208) 384-6161
(Registrant’s 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareBCCNew York Stock Exchange


Item 2.02 Results of Operations and Financial Condition.
On October 30, 2023, Boise Cascade Company (the Company) issued a press release announcing its third quarter 2023 financial results, a copy of which is furnished as Exhibit 99.1 to this Report on Form 8-K. Additionally, Exhibit 99.2, a copy of which is attached hereto, includes certain statistical information related to the Company's quarterly performance.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits.

The following exhibits are furnished as part of this Report on Form 8-K:
ExhibitDescription
101Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.



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/ Jill Twedt
Jill Twedt
Senior Vice President, General Counsel and Secretary
Date: October 30, 2023




Boise Cascade CompanyExhibit 99.1
1111 West Jefferson Street, Suite 300
Boise, ID 83702
News Release
bcclogoa02a05a.jpg

Investor Relations Contact - Kelly Hibbs
investor@bc.com
Media Contact - Lisa Tschampl
mediarelations@bc.com

For Immediate Release: October 30, 2023

Boise Cascade Company Reports Third Quarter 2023 Results

BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $143.1 million, or $3.58 per share, on sales of $1.8 billion for the third quarter ended September 30, 2023, compared with net income of $219.6 million, or $5.52 per share, on sales of $2.2 billion for the third quarter ended September 30, 2022.

“After another solid quarter of operating and financial performance, I want to first thank our associates for their continued focus, hard work, and loyalty. In addition, we are pleased to have recently completed the acquisition of BROSCO and welcome their outstanding team to Boise Cascade. The acquisition supports BMD's growth in the door and millwork business and brings us immediate scale in the Northeast markets,” stated Nate Jorgensen, CEO. “The strength and flexibility of our balance sheet allows us to remain committed to our reinvestment and growth strategies while also rewarding our shareholders, as evidenced by our most recent special dividend announcement. As we look forward to 2024, we are dedicated to supporting our vendor and customer partners and appreciate their ongoing confidence and trust in us. We are well positioned to navigate market uncertainties as near-term demand for new residential construction evolves.”

Third Quarter 2023 Highlights
3Q 20233Q 2022% change
(in thousands, except per-share data and percentages)
Consolidated Results
Sales$1,834,441 $2,154,647 (15)%
Net income143,068 219,587 (35)%
Net income per common share - diluted3.58 5.52 (35)%
Adjusted EBITDA 1
216,465 326,029 (34)%
Segment Results
Wood Products sales$515,225 $595,320 (13)%
Wood Products income99,574 155,972 (36)%
Wood Products EBITDA 1
122,924 177,257 (31)%
Building Materials Distribution sales1,670,296 1,956,802 (15)%
Building Materials Distribution income97,076 154,436 (37)%
Building Materials Distribution EBITDA 1
104,857 161,196 (35)%
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.



In third quarter 2023, total U.S. housing starts decreased 6%, driven by a decrease in multi-family housing starts compared to the same period in 2022. However, single-family housing starts increased 7% compared to the same period in 2022. On a year-to-date basis through September 2023, total housing starts and single-family housing starts decreased 12% and 13%, respectively, compared to the same period in 2022. Single-family housing starts are the key demand driver for our sales.

Wood Products

Wood Products' sales, including sales to Building Materials Distribution (BMD), decreased $80.1 million, or 13%, to $515.2 million for the three months ended September 30, 2023, from $595.3 million for the three months ended September 30, 2022. The decrease in sales was driven by lower plywood sales prices, lower sales prices for I-joists and LVL (collectively referred to as EWP), and lower LVL sales volumes. These decreases were offset partially by higher plywood sales volumes.

Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:
    
3Q 2023 vs. 3Q 20223Q 2023 vs. 2Q 2023
 Average Net Selling Prices
    LVL(14)%(4)%
    I-joists(16)%(3)%
    Plywood(20)%5%
 Sales Volumes
    LVL(5)%6%
    I-joists—%2%
    Plywood19%(11)%

Wood Products' segment income decreased $56.4 million to $99.6 million for the three months ended September 30, 2023, from $156.0 million for the three months ended September 30, 2022. The decrease in segment income was due primarily to lower EWP and plywood sales prices, as well as lower LVL sales volumes. These decreases in segment income were offset partially by lower wood fiber costs and higher plywood sales volumes.
    
Building Materials Distribution

BMD's sales decreased $286.5 million, or 15%, to $1,670.3 million for the three months ended September 30, 2023, from $1,956.8 million for the three months ended September 30, 2022. Compared with the same quarter in the prior year, the overall decrease in sales was driven by sales price and sales volume decreases of 14% and 1%, respectively. By product line, commodity sales decreased 20%, general line product sales decreased 5%, and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased 21%.

BMD segment income decreased $57.3 million to $97.1 million for the three months ended September 30, 2023, from $154.4 million in the comparative prior year quarter. The decline in segment income was driven by a gross margin decrease of $48.4 million, resulting primarily from lower margins on EWP. In addition, selling and distribution expenses increased $6.0 million.

2

Recent Developments

On October 2, 2023, the Company completed the acquisition of Brockway-Smith Company (BROSCO) for a purchase price of $168 million, inclusive of estimated working capital at closing of $51 million, which is subject to post-closing adjustments. The Company funded the acquisition and related costs with cash on hand.

Balance Sheet and Liquidity

Boise Cascade ended third quarter 2023 with $1,273.0 million of cash and cash equivalents and $395.9 million of undrawn committed bank line availability, for total available liquidity of $1,668.9 million. The Company had $445.1 million of outstanding debt at September 30, 2023.

Capital Allocation

Excluding acquisitions, we expect capital expenditures in 2023 to total approximately $190 million to $210 million. Our 2023 capital expenditures range includes funding for greenfield distribution centers in South Carolina and Texas, projects at our mills in the southeast to expand our EWP capacity, spending related to new door shop assembly operations in Kansas City, Missouri, and Denver, Colorado, and the purchase of a distribution center in West Palm Beach, Florida.
    
For the nine months ended September 30, 2023, the Company paid common stock dividends of $140.9 million. In addition, on October 26, 2023, our board of directors declared quarterly and special dividends of $0.20 per share and $5.00 per share, respectively, on our common stock. The fourth quarter dividends will total approximately $206 million and are payable on December 15, 2023, to stockholders of record on December 1, 2023.

As of September 30, 2023, approximately 2.0 million shares were available for repurchase under our existing share repurchase program.

Outlook

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. Various industry forecasts for 2023 U.S. housing starts are estimated to be 1.4 million units, compared with actual housing starts of 1.55 million in 2022, as reported by the U.S. Census Bureau. Throughout 2023, home affordability has been a challenge for consumers given higher mortgage rates and limited home price decreases. However, given a resilient economy and low levels of existing home inventory for sale, demand for new residential construction has been stronger than anticipated. Homebuilders have also addressed affordability challenges facing homebuyers in various ways, including smaller home sizes, fewer amenities, price incentives, and mortgage rate buydowns. Economic uncertainties, escalating mortgage rates, and home affordability are expected to continue to influence the near-term demand environment. Consensus forecasts for 2024 single- and multi-family housing starts in the U.S. generally range from 1.3 million to 1.4 million units, which is comparable with 2023. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending. However, industry forecasts project continued moderation of year-over-year growth in renovation spending, and economic uncertainty may also negatively impact homeowners' further investment in their residences.

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 commodity 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 commodity product pricing and commodity input costs may be volatile in response to economic uncertainties, industry operating rates, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. During fourth quarter 2023, we expect to experience seasonally slower demand for the products we manufacture and distribute, as well as modest EWP price erosion.
    
3

About Boise Cascade
    
Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com.

Webcast and Conference Call

Boise Cascade will host a webcast and conference call to discuss third quarter earnings on Tuesday, October 31, 2023, at 11 a.m. Eastern.

To join the webcast, go to the Investors section of our website at www.bc.com/investors and select the Event Calendar link. Analysts and investors who wish to ask questions during the Q&A session can register for the call here.

The archived webcast will be available in the Investors section of Boise Cascade's website.

Use of Non-GAAP Financial Measures
    
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 (loss) 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 (loss), income (loss) 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 (loss) or segment income (loss) 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.
    
4

Forward-Looking Statements

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.

5

Boise Cascade Company
Consolidated Statements of Operations
(in thousands, except per-share data) (unaudited)
Three Months EndedNine Months Ended
September 30June 30, 2023September 30
2023202220232022
Sales$1,834,441 $2,154,647 $1,815,219 $5,193,989 $6,759,001 
Costs and expenses 
Materials, labor, and other operating expenses (excluding depreciation)1,442,178 1,655,979 1,426,436 4,099,249 5,183,823 
Depreciation and amortization31,474 28,374 30,722 93,382 69,611 
Selling and distribution expenses147,714 142,176 139,205 415,707 423,106 
General and administrative expenses27,583 27,622 30,147 84,193 81,375 
Other (income) expense, net(141)1,126 (1,266)(1,752)(987)
1,648,808 1,855,277 1,625,244 4,690,779 5,756,928 
Income from operations185,633 299,370 189,975 503,210 1,002,073 
Foreign currency exchange gain (loss)(602)(1,674)320 (355)(2,041)
Pension expense (excluding service costs)(40)(41)(41)(122)(253)
Interest expense(6,351)(6,398)(6,339)(19,051)(18,969)
Interest income13,760 3,238 11,519 34,964 4,688 
Change in fair value of interest rate swaps(327)1,134 333 (798)3,594 
6,440 (3,741)5,792 14,638 (12,981)
Income before income taxes192,073 295,629 195,767 517,848 989,092 
Income tax provision(49,005)(76,042)(49,447)(131,727)(248,794)
Net income$143,068 $219,587 $146,320 $386,121 $740,298 
Weighted average common shares outstanding:
  Basic39,675 39,544 39,675 39,648 39,521 
  Diluted39,983 39,776 39,834 39,849 39,762 
Net income per common share:
  Basic$3.61 $5.55 $3.69 $9.74 $18.73 
  Diluted$3.58 $5.52 $3.67 $9.69 $18.62 
Dividends declared per common share$0.20 $0.12 $3.15 $3.50 $2.86 


6

Wood Products Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
Three Months EndedNine Months Ended
September 30June 30, 2023September 30
2023202220232022
Segment sales$515,225 $595,320 $530,273 $1,482,926 $1,690,294 
Costs and expenses    
Materials, labor, and other operating expenses (excluding depreciation)376,754 398,008 387,407 1,091,900 1,093,274 
Depreciation and amortization23,350 21,285 23,005 70,145 48,578 
Selling and distribution expenses10,786 11,164 11,437 33,901 30,743 
General and administrative expenses5,018 7,717 5,364 15,560 18,189 
Other (income) expense, net(257)1,174 (975)(1,584)(679)
415,651 439,348 426,238 1,209,922 1,190,105 
Segment income$99,574 $155,972 $104,035 $273,004 $500,189 
(percentage of sales)
Segment sales100.0  %100.0  %100.0 %100.0 %100.0 %
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)73.1 %66.9 %73.1 %73.6 %64.7 %
Depreciation and amortization4.5 %3.6 %4.3 %4.7 %2.9 %
Selling and distribution expenses2.1 %1.9 %2.2 %2.3 %1.8 %
General and administrative expenses1.0 %1.3 %1.0 %1.0 %1.1 %
Other (income) expense, net— %0.2 %(0.2)%(0.1 %)— %
80.7 %73.8 %80.4 %81.6 %70.4 %
Segment income19.3 %26.2 %19.6 %18.4 %29.6 %

7

Building Materials Distribution Segment
Statements of Operations
(in thousands, except percentages) (unaudited)
Three Months EndedNine Months Ended
September 30June 30, 2023September 30
2023202220232022
Segment sales$1,670,296 $1,956,802 $1,636,538 $4,686,076 $6,199,835 
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)1,417,153 1,655,257 1,391,015 3,983,718 5,221,905 
Depreciation and amortization7,781 6,760 7,386 22,237 20,064 
Selling and distribution expenses136,982 131,012 127,786 381,878 392,363 
General and administrative expenses11,195 9,480 12,089 33,314 31,264 
Other (income) expense, net109 (143)(288)(382)(397)
1,573,220 1,802,366 1,537,988 4,420,765 5,665,199 
Segment income $97,076 $154,436 $98,550 $265,311 $534,636 
(percentage of sales)
Segment sales100.0 %100.0 %100.0 %100.0 %100.0 %
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)84.8 %84.6 %85.0 %85.0 %84.2 %
Depreciation and amortization0.5 %0.3 %0.5 %0.5 %0.3 %
Selling and distribution expenses8.2 %6.7 %7.8 %8.1 %6.3 %
General and administrative expenses0.7 %0.5 %0.7 %0.7 %0.5 %
Other (income) expense, net— %— %— %— %— %
94.2 %92.1 %94.0 %94.3 %91.4 %
Segment income 5.8 %7.9 %6.0 %5.7 %8.6 %

8

Segment Information
(in thousands) (unaudited)
Three Months EndedNine Months Ended
September 30June 30, 2023September 30
2023202220232022
Segment sales
Wood Products$515,225 $595,320 $530,273 $1,482,926 $1,690,294 
Building Materials Distribution1,670,296 1,956,802 1,636,538 4,686,076 6,199,835 
Intersegment eliminations(351,080)(397,475)(351,592)(975,013)(1,131,128)
Total net sales$1,834,441 $2,154,647 $1,815,219 $5,193,989 $6,759,001 
Segment income
Wood Products$99,574 $155,972 $104,035 $273,004 $500,189 
Building Materials Distribution97,076 154,436 98,550 265,311 534,636 
Total segment income196,650 310,408 202,585 538,315 1,034,825 
Unallocated corporate costs(11,017)(11,038)(12,610)(35,105)(32,752)
Income from operations$185,633 $299,370 $189,975 $503,210 $1,002,073 
Segment EBITDA
Wood Products$122,924 $177,257 $127,040 $343,149 $548,767 
Building Materials Distribution104,857 161,196 105,936 287,548 554,700 

See accompanying summary notes to consolidated financial statements and segment information.


9

Boise Cascade Company
Consolidated Balance Sheets
(in thousands) (unaudited)
September 30, 2023December 31, 2022
ASSETS
Current
Cash and cash equivalents$1,272,963 $998,344 
Receivables 
Trade, less allowances of $4,190 and $3,264
463,086 297,237 
Related parties197 19 
Other15,752 23,023 
Inventories683,406 697,551 
Prepaid expenses and other30,839 47,878 
Total current assets2,466,243 2,064,052 
 
Property and equipment, net789,541 770,023 
Operating lease right-of-use assets50,812 55,582 
Finance lease right-of-use assets24,616 26,501 
Timber deposits8,890 7,519 
Goodwill137,958 137,958 
Intangible assets, net148,651 161,433 
Deferred income taxes5,831 6,116 
Other assets9,891 11,330 
Total assets$3,642,433 $3,240,514 

10

Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data) (unaudited)
September 30, 2023December 31, 2022
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade$403,682 $269,785 
Related parties1,599 1,019 
Accrued liabilities 
Compensation and benefits148,472 142,463 
Interest payable5,071 9,955 
Other135,900 122,606 
Total current liabilities694,724 545,828 
Debt 
Long-term debt445,058 444,392 
Other 
Compensation and benefits36,466 33,226 
Operating lease liabilities, net of current portion44,418 48,668 
Finance lease liabilities, net of current portion28,590 30,022 
Deferred income taxes67,535 63,454 
Other long-term liabilities18,047 16,949 
195,056 192,319 
 
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, 44,983 and 44,827 shares issued, respectively
450 448 
Treasury stock, 5,393 and 5,367 shares at cost, respectively
(140,448)(138,909)
Additional paid-in capital
556,805 551,215 
Accumulated other comprehensive loss
(501)(520)
Retained earnings1,891,289 1,645,741 
Total stockholders' equity2,307,595 2,057,975 
Total liabilities and stockholders' equity$3,642,433 $3,240,514 

11

Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands) (unaudited)
Nine Months Ended September 30
20232022
Cash provided by (used for) operations
Net income$386,121 $740,298 
Items in net income not using (providing) cash 
Depreciation and amortization, including deferred financing costs and other
95,516 71,213 
Stock-based compensation11,518 8,690 
Pension expense122 253 
Deferred income taxes4,351 45,365 
Change in fair value of interest rate swaps798 (3,594)
Other(1,877)(830)
Decrease (increase) in working capital, net of acquisitions 
Receivables(158,756)(51,027)
Inventories14,145 (83,539)
Prepaid expenses and other(6,604)(5,901)
Accounts payable and accrued liabilities152,303 78,444 
Pension contributions(403)(922)
Income taxes payable23,664 14,970 
Other231 705 
Net cash provided by operations521,129 814,125 
Cash provided by (used for) investment
Expenditures for property and equipment(99,251)(61,835)
Acquisitions of businesses and facilities— (516,881)
Proceeds from sales of assets and other2,450 3,094 
Net cash used for investment(96,801)(575,622)
Cash provided by (used for) financing
Dividends paid on common stock(140,885)(114,025)
Tax withholding payments on stock-based awards(5,926)(3,930)
Treasury stock purchased(1,539)— 
Payments of deferring financing costs— (1,170)
Other(1,359)(1,221)
Net cash used for financing(149,709)(120,346)
Net increase in cash and cash equivalents274,619 118,157 
Balance at beginning of the period998,344 748,907 
Balance at end of the period$1,272,963 $867,064 
12

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 presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2022 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 (i) the three months ended September 30, 2023 and 2022, (ii) the three months ended June 30, 2023, and (iii) the nine months ended September 30, 2023 and 2022:
Three Months EndedNine Months Ended
September 30June 30, 2023September 30
2023202220232022
(in thousands)
Net income$143,068 $219,587 $146,320 $386,121 $740,298 
Interest expense6,351 6,398 6,339 19,051 18,969 
Interest income(13,760)(3,238)(11,519)(34,964)(4,688)
Income tax provision49,005 76,042 49,447 131,727 248,794 
Depreciation and amortization31,474 28,374 30,722 93,382 69,611 
EBITDA216,138 327,163 221,309 595,317 1,072,984 
Change in fair value of interest rate swaps327 (1,134)(333)798 (3,594)
Adjusted EBITDA$216,465 $326,029 $220,976 $596,115 $1,069,390 
13

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the (i) three months ended September 30, 2023 and 2022, (ii) three months ended June 30, 2023, and (iii) nine months ended September 30, 2023 and 2022:
Three Months EndedNine Months Ended
September 30June 30, 2023September 30
2023202220232022
(in thousands)
Wood Products
Segment income$99,574 $155,972 $104,035 $273,004 $500,189 
Depreciation and amortization23,350 21,285 23,005 70,145 48,578 
EBITDA$122,924 $177,257 $127,040 $343,149 $548,767 
Building Materials Distribution
Segment income$97,076 $154,436 $98,550 $265,311 $534,636 
Depreciation and amortization7,781 6,760 7,386 22,237 20,064 
EBITDA$104,857 $161,196 $105,936 $287,548 $554,700 
Corporate
Unallocated corporate costs$(11,017)$(11,038)$(12,610)$(35,105)$(32,752)
Foreign currency exchange gain (loss)(602)(1,674)320 (355)(2,041)
Pension expense (excluding service costs)(40)(41)(41)(122)(253)
Change in fair value of interest rate swaps(327)1,134 333 (798)3,594 
Depreciation and amortization343 329 331 1,000 969 
EBITDA(11,643)(11,290)(11,667)(35,380)(30,483)
Change in fair value of interest rate swaps327 (1,134)(333)798 (3,594)
Corporate adjusted EBITDA$(11,316)$(12,424)$(12,000)$(34,582)$(34,077)
Total Company adjusted EBITDA$216,465 $326,029 $220,976 $596,115 $1,069,390 




14

Exhibit 99.2
Boise Cascade Company
Quarterly Statistical Information
Wood Products Segment
2023
Q1Q2Q3Q4YTD
 LVL sales volume (MCF)3,639 4,682 4,945 13,266 
 I-joist sales volume (MELF)38,711 62,950 64,125 165,786 
 Plywood sales volume (MSF 3/8")405,960 439,963 389,827 1,235,750 
 Lumber sales volume (MBF)31,560 32,528 31,729 95,817 
 LVL mill net sales price ($/CF)$31.17 $30.14 $29.08 $30.03 
 I-joist mill net sales price ($/MELF)$2,168 $2,088 $2,035 $2,086 
 Plywood net sales price ($/MSF 3/8")$367 $365 $382 $371 
 Lumber net sales price ($/MBF)$724 $707 $641 $691 
 Segment sales (000)$437,428 $530,273 $515,225 $1,482,926 
 Segment income (000)$69,395 $104,035 $99,574 $273,004 
 Segment depreciation and amortization (000)$23,790 $23,005 $23,350 $70,145 
 Segment EBITDA (000)1
$93,185 $127,040 $122,924 $343,149 
 EBITDA as a percentage of sales21.3 %24.0 %23.9 %23.1 %
 Capital spending (000)$7,262 $12,106 $11,807 $31,175 
 Receivables (000)$77,318 $97,229 $88,688 
 Inventories (000)$232,136 $200,948 $205,111 
 Accounts payable (000)$63,275 $60,656 $69,023 
2022
Q1Q2Q3Q4YTD
 LVL sales volume (MCF)4,641 4,586 5,190 3,176 17,593 
 I-joist sales volume (MELF)65,362 69,467 64,421 30,130 229,380 
 Plywood sales volume (MSF 3/8")316,941 280,594 328,586 392,975 1,319,096 
 Lumber sales volume (MBF)17,139 16,935 24,045 24,985 83,104 
 LVL mill net sales price ($/CF)$26.40 $28.47 $33.82 $34.36 $30.56 
 I-joist mill net sales price ($/MELF)$1,877 $2,066 $2,429 $2,553 $2,178 
 Plywood net sales price ($/MSF 3/8")$689 $569 $477 $396 $523 
 Lumber net sales price ($/MBF)$1,011 $1,214 $880 $720 $927 
 Segment sales (000)$558,944 $536,030 $595,320 $425,602 $2,115,896 
 Segment income (000)$190,116 $154,101 $155,972 $74,978 $575,167 
 Segment depreciation and amortization (000)$13,640 $13,653 $21,285 $24,730 $73,308 
 Segment EBITDA (000)1
$203,756 $167,754 $177,257 $99,708 $648,475 
 EBITDA as a percentage of sales36.5 %31.3 %29.8 %23.4 %30.6 %
 Capital spending (000)2
$8,986 $12,861 $12,949 $17,138 $51,934 
 Receivables (000)$120,960 $113,395 $94,017 $43,406 
 Inventories (000)$181,810 $191,411 $214,576 $229,361 
 Accounts payable (000)$53,797 $65,272 $72,877 $44,202 


1

Boise Cascade Company
Quarterly Statistical Information (continued)
Wood Products Segment (continued)
2021
Q1Q2Q3Q4YTD
 LVL sales volume (MCF)4,359 4,705 4,647 4,518 18,229 
 I-joist sales volume (MELF)71,586 75,697 76,218 66,983 290,484 
 Plywood sales volume (MSF 3/8")303,302 337,593 313,759 304,285 1,258,939 
 Lumber sales volume (MBF)19,273 21,138 17,658 18,935 77,004 
 LVL mill net sales price ($/CF)$19.00 $19.63 $22.30 $25.96 $21.73 
 I-joist mill net sales price ($/MELF)$1,319 $1,363 $1,575 $1,822 $1,514 
 Plywood net sales price ($/MSF 3/8")$556 $878 $561 $401 $606 
 Lumber net sales price ($/MBF)$975 $1,200 $1,184 $804 $1,043 
 Segment sales (000)$432,335 $594,569 $497,316 $446,584 $1,970,804 
 Segment income (000)$97,052 $213,761 $122,056 $98,366 $531,235 
 Segment depreciation and amortization (000)$13,346 $14,128 $13,914 $13,861 $55,249 
 Segment EBITDA (000)1
$110,398 $227,889 $135,970 $112,227 $586,484 
 EBITDA as a percentage of sales25.5 %38.3 %27.3 %25.1 %29.8 %
 Capital spending (000)$7,047 $7,673 $11,422 $22,138 $48,280 
 Receivables (000)$100,595 $124,757 $95,307 $164,373 
 Inventories (000)$167,618 $182,465 $173,854 $169,451 
 Accounts payable (000)$47,515 $69,939 $57,129 $45,662 
1Segment EBITDA is calculated as segment income before depreciation and amortization.
2Capital spending in 2022 excludes $515.2 million of cash paid for the acquisition of businesses and facilities.

2

Boise Cascade Company
Quarterly Statistical Information (continued)
Building Materials Distribution Segment
2023
Q1Q2Q3Q4YTD
 Commodity sales1
39.7 %37.5 %37.4 %38.1 %
 General line sales1
38.7 %39.6 %39.4 %39.3 %
 EWP sales1
21.6 %22.9 %23.2 %22.6 %
 Total sales (000)$1,379,242 $1,636,538 $1,670,296 $4,686,076 
 Gross margin2
14.8 %15.0 %15.2 %15.0 %
 Segment income (000)$69,685 $98,550 $97,076 $265,311 
 Segment depreciation and amortization (000)$7,070 $7,386 $7,781 $22,237 
 Segment EBITDA (000)3
$76,755 $105,936 $104,857 $287,548 
 EBITDA as a percentage of sales5.6 %6.5 %6.3 %6.1 %
 Capital spending (000)4
$22,659 $25,929 $19,135 $67,723 
 Receivables (000)$393,338 $445,991 $434,755 
 Inventories (000)$506,663 $502,085 $478,295 
 Accounts payable (000)$363,163 $390,840 $362,196 
2022
Q1Q2Q3Q4YTD
 Commodity sales1
52.2 %44.9 %39.6 %41.5 %44.9 %
 General line sales1
29.1 %32.9 %35.3 %37.1 %33.3 %
 EWP sales1
18.7 %22.2 %25.1 %21.4 %21.8 %
 Total sales (000)$2,111,833 $2,131,200 $1,956,802 $1,443,780 $7,643,615 
 Gross margin2
18.0 %13.9 %15.4 %15.8 %15.8 %
 Segment income (000)$225,892 $154,308 $154,436 $92,455 $627,091 
 Segment depreciation and amortization (000)$6,576 $6,728 $6,760 $6,941 $27,005 
 Segment EBITDA (000)3
$232,468 $161,036 $161,196 $99,396 $654,096 
 EBITDA as a percentage of sales11.0 %7.6 %8.2 %6.9 %8.6 %
 Capital spending (000)5
$7,892 $10,009 $7,938 $34,624 $60,463 
 Receivables (000)$616,040 $540,167 $479,876 $286,789 
 Inventories (000)$622,858 $612,196 $552,610 $468,189 
 Accounts payable (000)$479,584 $413,235 $355,170 $215,308 

3

Boise Cascade Company
Quarterly Statistical Information (continued)
Building Materials Distribution Segment (continued)
2021
Q1Q2Q3Q4YTD
 Commodity sales1
55.4 %60.2 %44.8 %43.7 %51.6 %
 General line sales1
28.9 %26.1 %33.7 %33.1 %30.2 %
 EWP sales1
15.7 %13.7 %21.5 %23.2 %18.2 %
 Total sales (000)$1,634,777 $2,172,744 $1,721,244 $1,645,513 $7,174,278 
 Gross margin2
15.1 %15.6 %7.9 %16.2 %13.8 %
 Segment income (000)$120,219 $206,338 $16,565 $137,963 $481,085 
 Segment depreciation and amortization (000)$5,819 $5,917 $6,013 $6,258 $24,007 
 Segment EBITDA (000)3
$126,038 $212,255 $22,578 $144,221 $505,092 
 EBITDA as a percentage of sales7.7 %9.8 %1.3 %8.8 %7.0 %
 Capital spending (000)6
$6,247 $10,499 $7,978 $32,833 $57,557 
 Receivables (000)$497,466 $542,524 $445,542 $408,948 
 Inventories (000)$444,082 $544,739 $470,516 $491,220 
 Accounts payable (000)$438,562 $474,906 $391,742 $377,563 
1Product line sales are shown as a percentage of total Building Materials Distribution (BMD) sales.
2We 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 BMD segment are for inventory purchased for resale. Gross margin percentage is gross margin as a percentage of segment sales.
3Segment EBITDA is calculated as segment income before depreciation and amortization.
4During 2023, capital spending in first quarter includes approximately $11 million to purchase a new facility in Kansas City, Missouri, to house an additional door shop assembly operation.
5During 2022, capital spending in fourth quarter includes approximately $13 million to purchase a previously leased BMD property in Milton, Florida.
6During 2021, capital spending in fourth quarter includes approximately $15 million to purchase a BMD property in Walton, Kentucky to expand our service capabilities in Cincinnati and the surrounding markets.


4

Boise Cascade Company
Quarterly Statistical Information (continued)
Reconciliation of Non-GAAP Financial Measures
(in thousands)
Total Boise Cascade Company
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 tables reconcile net income to EBITDA and Adjusted EBITDA for the periods noted below:
2023
Q1Q2Q3Q4YTD
Net income$96,733 $146,320 $143,068 $386,121 
Interest expense6,361 6,339 6,351 19,051 
Interest income(9,685)(11,519)(13,760)(34,964)
Income tax provision33,275 49,447 49,005 131,727 
Depreciation and amortization31,186 30,722 31,474 93,382 
EBITDA157,870 221,309 216,138 595,317 
Change in fair value of interest rate swaps804 (333)327 798 
Adjusted EBITDA$158,674 $220,976 $216,465 $596,115 
2022
Q1Q2Q3Q4YTD
Net income$302,600 $218,111 $219,587 $117,360 $857,658 
Interest expense6,254 6,317 6,398 6,443 25,412 
Interest income(65)(1,385)(3,238)(7,575)(12,263)
Income tax provision98,866 73,886 76,042 39,929 288,723 
Depreciation and amortization20,543 20,694 28,374 31,982 101,593 
EBITDA428,198 317,623 327,163 188,139 1,261,123 
Change in fair value of interest rate swaps(2,066)(394)(1,134)35 (3,559)
Adjusted EBITDA$426,132 $317,229 $326,029 $188,174 $1,257,564 
2021
Q1Q2Q3Q4YTD
Net income$149,156 $302,556 $91,699 $169,075 $712,486 
Interest expense5,875 6,347 6,279 6,305 24,806 
Interest income(59)(51)(63)(22)(195)
Income tax provision51,448 101,026 31,158 52,733 236,365 
Depreciation and amortization19,539 20,420 20,299 20,495 80,753 
EBITDA225,959 430,298 149,372 248,586 1,054,215 
Change in fair value of interest rate swaps(1,024)25 (59)(687)(1,745)
Adjusted EBITDA$224,935 $430,323 $149,313 $247,899 $1,052,470 

For additional information regarding the non-GAAP measures presented in this document, please refer to our press release announcing our third quarter 2023 financial results, a copy of which is attached as Exhibit 99.1 to our Current Report on Form 8-K furnished to the Securities and Exchange Commission on October 30, 2023.

5
v3.23.3
Document and Entity Information
Oct. 30, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 30, 2023
Entity Registrant Name BOISE CASCADE COMPANY
Entity Incorporation, State or Country Code DE
Entity File Number 1-35805
Entity Tax Identification Number 20-1496201
Entity Address, Address Line One 1111 West Jefferson Street, Suite 300
Entity Address, City or Town Boise
Entity Address, State or Province ID
Entity Address, Postal Zip Code 83702-5389
City Area Code 208
Local Phone Number 384-6161
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol BCC
Security Exchange Name NYSE
Entity Central Index Key 0001328581
Amendment Flag false
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