BOISE CASCADE CORP - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(X)	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2002

( )	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to __________________

Commission File Number: 1-5057

BOISE CASCADE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

82-0100960

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1111 West Jefferson Street
P.O. Box 50
Boise, Idaho

83728

(Address of principal executive officers) (208) 384-6161 (Registrant's telephone number, including area code)	(Zip Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class
Common Stock, $2.50 par value

Shares Outstanding
as of October 31, 2002
58,282,458

PART I - FINANCIAL INFORMATION
BOISE CASCADE CORPORATION AND SUBSIDIARIES
STATEMENTS OF INCOME
(thousands, except per-share amounts)

ITEM 1.

FINANCIAL STATEMENTS

	Three Months Ended September 30
	_______________________
	2002			2001
	_________			_________
	(unaudited)
Revenues
Sales	$	1,935,231		$	1,874,436
	_________			_________
Costs and expenses
Materials, labor, and other operating expenses		1,574,391			1,522,915
Depreciation, amortization, and cost of company timber harvested		78,346			72,048
Selling and distribution expenses		197,135			189,106
General and administrative expenses		39,151			34,126
Other (income) expense, net		(74	)		3,635
	_________			_________
		1,888,949			1,821,830
	_________			_________
Equity in net loss of affiliates		(299	)		(1,504	)
	_________			_________
Income from operations		45,983			51,102
	_________			_________

Interest expense		(28,731	)		(31,592	)
Interest income		285			451
Foreign exchange loss		(671	)		(859	)
	_________			_________
		(29,117	)		(32,000	)
	_________			_________
Income before income taxes and minority interest		16,866			19,102
Income tax provision		(6,324	)		(4,122	)
	_________			_________
Income before minority interest		10,542			14,980
Minority interest, net of income tax		(2,032	)		-
	_________			_________
Net income		8,510			14,980
Preferred dividends		(3,262	)		(3,138	)
	_________			_________

Net income applicable to common shareholders	$	5,248		$	11,842
	=========			=========
Net income per common share
Basic		$0.09			$0.21
	=====			=====
Diluted		$0.09			$0.20
	=====			=====

See accompanying notes to financial statements.

PART I - FINANCIAL INFORMATION
BOISE CASCADE CORPORATION AND SUBSIDIARIES
STATEMENTS OF INCOME (LOSS)
(thousands, except per-share amounts)

	Nine Months Ended September 30
	_______________________
	2002			2001
	_________			_________
	(unaudited)
Revenues
Sales	$	5,611,481		$	5,665,475
	_________			_________
Costs and expenses
Materials, labor, and other operating expenses		4,575,402			4,574,236
Depreciation, amortization, and cost of company timber harvested		229,770			220,169
Selling and distribution expenses		583,907			597,417
General and administrative expenses		115,020			96,115
Other (income) expense, net		29,215			77,349
	_________			_________
		5,533,314			5,565,286
	_________			_________
Equity in net loss of affiliates		(2,354	)		(5,527	)
	_________			_________
Income from operations		75,813			94,662
	_________			_________

Interest expense		(88,789	)		(97,878	)
Interest income		1,340			1,618
Foreign exchange loss		(528	)		(3,183	)
	_________			_________
		(87,977	)		(99,443	)
	_________			_________
Loss before income taxes and minority interest		(12,164	)		(4,781	)
Income tax benefit		23,342			3,745
	_________			_________
Income (loss) before minority interest		11,178			(1,036	)
Minority interest, net of income tax		(6,045	)		195
	_________			_________
Net income (loss)		5,133			(841	)
Preferred dividends		(9,812	)		(9,604	)
	_________			_________

Net loss applicable to common shareholders	$	(4,679	)	$	(10,445	)
	=========			=========
Net loss per common share
Basic		$(0.08	)		$(0.18	)
	=====			=====
Diluted		$(0.08	)		$(0.18	)
	=====			=====

See accompanying notes to financial statements.

BOISE CASCADE CORPORATION AND SUBSIDIARIES
BALANCE SHEETS
(thousands)

ASSETS

	September 30						December 31
	_________________________						___________
	2002				2001		2001
	_________			___________			___________
	(unaudited)
Current
Cash and cash equivalents	$	89,529		$	69,894		$	56,702
Receivables, less allowances
of $12,695, $10,190, and $11,534		525,733			528,537			424,722
Inventories		618,371			627,365			652,953
Deferred income tax benefits		70,505			65,104			65,004
Other		36,575			32,502			45,646
	__________			___________			___________
		1,340,713			1,323,402			1,245,027
	__________			___________			___________
Property
Property and equipment
Land and land improvements		69,795			65,344			68,482
Buildings and improvements		701,042			661,818			675,905
Machinery and equipment		4,649,969			4,559,945			4,606,102
	__________			___________			___________
		5,420,806			5,287,107			5,350,489
Accumulated depreciation		(2,877,880	)		(2,698,252	)		(2,742,650	)
	__________			___________			___________
		2,542,926			2,588,855			2,607,839
Timber, timberlands, and timber deposits		314,100			295,313			322,132
	__________			___________			___________
		2,857,026			2,884,168			2,929,971
	__________			___________			___________
Goodwill, net of amortization of
$56,910, $54,115, and $56,910		396,296			405,613			385,185
Investments in equity affiliates		35,911			119,966			62,162
Other assets		351,401			295,134			311,623
	__________			___________			___________
Total assets	$	4,981,347		$	5,028,283		$	4,933,968
	==========			===========			===========

See accompanying notes to financial statements.

BOISE CASCADE CORPORATION AND SUBSIDIARIES
BALANCE SHEETS
(thousands, except per-share amounts)

LIABILITIES AND SHAREHOLDERS' EQUITY

	September 30						December 31
	_______________________						___________
	2002			2001			2001
	_________			_________			___________
	(unaudited)
Current
Short-term borrowings	$	37,100		$	51,600		$	48,700
Current portion of long-term debt		90,654			575,735			391,379
Income taxes payable		-			9,128			-
Accounts payable		527,472			514,364			503,402
Accrued liabilities
Compensation and benefits		221,213			156,392			151,094
Interest payable		26,027			27,617			25,510
Other		146,865			156,680			145,866
	_________			_________			___________
		1,049,331			1,491,516			1,265,951
	_________			_________			___________
Debt
Long-term debt, less current portion		1,402,873			1,038,369			1,062,866
Guarantee of ESOP debt		71,184			99,415			80,889
	_________			_________			___________
		1,474,057			1,137,784			1,143,755
	_________			_________			___________
Other
Deferred income taxes		301,040			377,462			308,305
Other long-term liabilities		411,635			282,764			465,104
	_________			_________			___________
		712,675			660,226			773,409
	_________			_________			___________
Minority interest
Company-obligated mandatorily redeemable securities of subsidiary trust holding solely debentures of parent	172,500			- -			172,500
	_________			_________			___________
Commitments and contingencies

Shareholders' equity
Preferred stock -- no par value; 10,000,000 shares authorized;
Series D ESOP: $.01 stated value; 4,326,841, 4,507,459, and 4,480,580 shares outstanding		194,708			202,836			201,626
Deferred ESOP benefit		(71,184	)		(99,415	)		(80,889	)
Common stock -- $2.50 par value; 200,000,000 shares authorized; 58,282,573, 58,027,779, and 58,061,762 shares outstanding		145,706			145,069			145,154
Additional paid-in capital		472,944			474,175			466,952
Retained earnings		964,388			1,045,823			985,311
Accumulated other comprehensive income (loss)		(133,778	)		(29,731	)		(139,801	)
	_________			_________			___________
Total shareholders' equity		1,572,784			1,738,757			1,578,353
	_________			_________			___________
Total liabilities and shareholders' equity	$	4,981,347		$	5,028,283		$	4,933,968
	=========			=========			===========

See accompanying notes to financial statements.

BOISE CASCADE CORPORATION AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(thousands)

	Nine Months Ended September 30
	____________________________
	2002			2001
	___________			___________
	(unaudited)
Cash provided by (used for) operations
Net income (loss)	$	5,133		$	(841	)
Items in net income (loss) not using (providing) cash
Equity in net loss of affiliates		2,354			5,527
Depreciation, amortization, and cost of company timber harvested		229,770			220,169
Deferred income tax benefit		(28,910	)		(11,680	)
Minority interest, net of income tax		-			(195	)
Restructuring activities		(750	)		57,929
Write-down of assets		23,646			-
Other		(860	)		14,054
Receivables		(73,225	)		(25,703	)
Inventories		34,722			118,672
Accounts payable and accrued liabilities		28,881			(95,981	)
Current and deferred income taxes		(9,413	)		(6,183	)
Other		11,815			(2,347	)
	___________			___________
Cash provided by operations		223,163			273,421
	___________			___________
Cash provided by (used for) investment
Expenditures for property and equipment		(147,265	)		(219,317	)
Expenditures for timber and timberlands		(7,001	)		(11,102	)
Investments in equity affiliates		-			(783	)
Purchases of facilities		(1,406	)		(4,655	)
Sales of assets		-			160,984
Other		(20,394	)		(28,212	)
	___________			___________
Cash used for investment		(176,066	)		(103,085	)
	___________			___________
Cash provided by (used for) financing
Cash dividends paid
Common stock		(26,175	)		(25,842	)
Preferred stock		(7,383	)		(7,709	)
	___________			___________
		(33,558	)		(33,551	)

Short-term borrowings		(11,600	)		(400	)
Additions to long-term debt		232,139			14,559
Payments of long-term debt		(196,644	)		(156,664	)
Other		(4,607	)		12,794
	___________			___________
Cash used for financing		(14,270	)		(163,262	)
	___________			___________

Increase in cash and cash equivalents		32,827			7,074
Balance at beginning of the year		56,702			62,820
	___________			___________
Balance at September 30	$	89,529		$	69,894
	===========			===========

See accompanying notes to financial statements.

NOTES TO QUARTERLY FINANCIAL STATEMENTS (unaudited)

(1)

BASIS OF PRESENTATION. We have prepared the quarterly financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Some information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to those rules and regulations. These statements should be read together with the statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2001.

The quarterly financial statements have not been audited by independent public accountants, but in the opinion of management, all adjustments nece