Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BOISE CASCADE Co | bcc8-k12312012.htm |
| EX-99.2 - QUARTERLY STATISTICAL INFORMATION - BOISE CASCADE Co | bccexhibit99212312012.htm |
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: March 7, 2013
Boise Cascade Company Reports Financial Results for Fourth Quarter and Year End 2012
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 sales | $ | 694,580 | $ | 547,442 | $ | 764,596 | $ | 2,779,062 | $ | 2,248,088 | ||||||||||
Net income (loss) | $ | 1,278 | $ | (13,791 | ) | $ | 23,503 | $ | 41,496 | $ | (46,363 | ) | ||||||||
Total Company EBITDA | $ | 17,006 | $ | 545 | $ | 36,821 | $ | 96,575 | $ | 9,479 | ||||||||||
BMD segment EBITDA | $ | 8,055 | $ | 1,344 | $ | 12,563 | $ | 32,874 | $ | 10,384 | ||||||||||
Wood Products segment EBITDA | $ | 13,233 | $ | 2,216 | $ | 28,628 | $ | 80,238 | $ | 13,316 | ||||||||||
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.
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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.
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Boise Cascade Company
Consolidated Statements of Operations
(in thousands)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31 | September 30, 2012 | December 31 | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Sales | ||||||||||||||||||||
Trade | $ | 689,486 | $ | 542,288 | $ | 759,330 | $ | 2,759,290 | $ | 2,229,325 | ||||||||||
Related parties | 5,094 | 5,154 | 5,266 | 19,772 | 18,763 | |||||||||||||||
694,580 | 547,442 | 764,596 | 2,779,062 | 2,248,088 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 592,022 | 476,772 | 638,994 | 2,343,174 | 1,952,619 | |||||||||||||||
Materials, labor, and other operating expenses from related parties (excluding depreciation) | 15,567 | 8,918 | 14,131 | 60,271 | 40,058 | |||||||||||||||
Depreciation and amortization | 8,489 | 9,522 | 8,461 | 33,407 | 37,022 | |||||||||||||||
Selling and distribution expenses | 58,201 | 51,666 | 62,572 | 235,055 | 204,998 | |||||||||||||||
General and administrative expenses | 11,200 | 8,786 | 12,185 | 43,122 | 37,242 | |||||||||||||||
Other (income) expense, net | 496 | 854 | 121 | 902 | 3,195 | |||||||||||||||
685,975 | 556,518 | 736,464 | 2,715,931 | 2,275,134 | ||||||||||||||||
Income (loss) from operations | 8,605 | (9,076 | ) | 28,132 | 63,131 | (27,046 | ) | |||||||||||||
Foreign exchange gain (loss) | (88 | ) | 99 | 228 | 37 | (497 | ) | |||||||||||||
Interest expense | (7,286 | ) | (4,813 | ) | (4,840 | ) | (21,757 | ) | (18,987 | ) | ||||||||||
Interest income | 111 | 93 | 87 | 392 | 407 | |||||||||||||||
(7,263 | ) | (4,621 | ) | (4,525 | ) | (21,328 | ) | (19,077 | ) | |||||||||||
Income (loss) before income taxes | 1,342 | (13,697 | ) | 23,607 | 41,803 | (46,123 | ) | |||||||||||||
Income tax provision | (64 | ) | (94 | ) | (104 | ) | (307 | ) | (240 | ) | ||||||||||
Net income (loss) | $ | 1,278 | $ | (13,791 | ) | $ | 23,503 | $ | 41,496 | $ | (46,363 | ) | ||||||||
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Segment Information
(in thousands)
Three Months Ended | Year Ended | ||||||||||||||||||
December 31 | September 30, 2012 | December 31 | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Segment sales | |||||||||||||||||||
Building Materials Distribution | $ | 553,068 | $ | 429,424 | $ | 605,206 | $ | 2,190,235 | $ | 1,779,369 | |||||||||
Wood Products | 230,508 | 180,250 | 259,759 | 943,252 | 712,461 | ||||||||||||||
Intersegment eliminations | (88,996 | ) | (62,232 | ) | (100,369 | ) | (354,425 | ) | (243,742 | ) | |||||||||
$ | 694,580 | $ | 547,442 | $ | 764,596 | $ | 2,779,062 | $ | 2,248,088 | ||||||||||
Segment income (loss) | |||||||||||||||||||
Building Materials Distribution | $ | 5,852 | $ | (830 | ) | $ | 10,300 | $ | 24,032 | $ | 1,988 | ||||||||
Wood Products | 6,971 | (5,073 | ) | 22,464 | 55,794 | (15,071 | ) | ||||||||||||
Corporate and Other | (4,306 | ) | (3,074 | ) | (4,404 | ) | (16,658 | ) | (14,460 | ) | |||||||||
8,517 | (8,977 | ) | 28,360 | 63,168 | (27,543 | ) | |||||||||||||
Interest expense | (7,286 | ) | (4,813 | ) | (4,840 | ) | (21,757 | ) | (18,987 | ) | |||||||||
Interest income | 111 | 93 | 87 | 392 | 407 | ||||||||||||||
Income (loss) before income taxes | $ | 1,342 | $ | (13,697 | ) | $ | 23,607 | $ | 41,803 | $ | (46,123 | ) | |||||||
EBITDA (a) | |||||||||||||||||||
Building Materials Distribution | $ | 8,055 | $ | 1,344 | $ | 12,563 | $ | 32,874 | $ | 10,384 | |||||||||
Wood Products | 13,233 | 2,216 | 28,628 | 80,238 | 13,316 | ||||||||||||||
Corporate and Other | (4,282 | ) | (3,015 | ) | (4,370 | ) | (16,537 | ) | (14,221 | ) | |||||||||
$ | 17,006 | $ | 545 | $ | 36,821 | $ | 96,575 | $ | 9,479 | ||||||||||
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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 | ||||
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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 shares authorized, 29,700 shares issued and outstanding | 297 | 297 | ||||||
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 | ||||
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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 financing costs and other | 37,211 | 39,232 | ||||||
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 | ||||
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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 30, 2012 | December 31 | |||||||||||||||||
2012 | 2011 | 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 provision | 64 | 94 | 104 | 307 | 240 | ||||||||||||||
Depreciation and amortization | 8,489 | 9,522 | 8,461 | 33,407 | 37,022 | ||||||||||||||
EBITDA | $ | 17,006 | $ | 545 | $ | 36,821 | $ | 96,575 | $ | 9,479 | |||||||||
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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, 2012 | December 31 | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Building Materials Distribution | ||||||||||||||||||||
Segment income (loss) | $ | 5,852 | $ | (830 | ) | $ | 10,300 | $ | 24,032 | $ | 1,988 | |||||||||
Depreciation and amortization | 2,203 | 2,174 | 2,263 | 8,842 | 8,396 | |||||||||||||||
EBITDA | 8,055 | 1,344 | 12,563 | 32,874 | 10,384 | |||||||||||||||
Wood Products | ||||||||||||||||||||
Segment income (loss) | 6,971 | (5,073 | ) | 22,464 | 55,794 | (15,071 | ) | |||||||||||||
Depreciation and amortization | 6,262 | 7,289 | 6,164 | 24,444 | 28,387 | |||||||||||||||
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 and amortization | 24 | 59 | 34 | 121 | 239 | |||||||||||||||
EBITDA | (4,282 | ) | (3,015 | ) | (4,370 | ) | (16,537 | ) | (14,221 | ) | ||||||||||
EBITDA | $ | 17,006 | $ | 545 | $ | 36,821 | $ | 96,575 | $ | 9,479 | ||||||||||
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