Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BOISE CASCADE Co | bcc8-k9302013.htm |
| EX-99.2 - QUARTERLY STATISTICAL INFORMATION - BOISE CASCADE Co | bccexhibit9929302013.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: October 21, 2013
Boise Cascade Company Reports Third Quarter 2013 Net Income of $15.9 Million on Sales of $878.0 Million
BOISE, Idaho - Boise Cascade Company (NYSE: BCC) today reported third quarter sales of $878.0 million, 15% above the same quarter in 2012. Net income was $15.9 million in the third quarter, or $0.39 per share, on 40.6 million weighted average shares outstanding.
Third Quarter 2013 Highlights
• | The Company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $39.5 million, up 7% from the $36.8 million reported in third quarter 2012. |
• | Wood Products third quarter segment sales, including sales to the Company's Building Materials Distribution (BMD) segment, were $283.2 million, an increase of 9% from the year ago quarter. EBITDA was $24.6 million, down 14% from the $28.6 million reported in third quarter 2012 primarily as a result of higher wood fiber costs and lower plywood sales prices. |
• | BMD segment sales were $721.5 million, an increase of 19% from the year ago quarter. EBITDA was $20.1 million, up 60% from the $12.6 million reported in third quarter 2012 due to higher gross margin dollars and positive expense leverage from higher sales. |
• | The Company repurchased 3.9 million shares of its common stock for $100.0 million of cash in July. |
• | In August, the Company issued an additional $50 million of 6 3/8% senior notes at a price of 103.5% and increased its committed bank line capacity to $350 million to facilitate future growth opportunities. |
• | The Company acquired two plywood plants for $102.0 million in cash on September 30, 2013. |
Using the available July and August 2013 data, total U.S. housing starts were up 18%, with single-family starts up approximately 15% from the same period in 2012. The October 2013 Blue Chip consensus forecast for 2013 reflects 930,000 total U.S. housing starts, a 19% increase from 2012 levels. Total housing activity levels remain below the historical average for the last 20 years of approximately 1.4 million starts per year.
“We had solid operating performances in both businesses in the third quarter. Our distribution business rebounded sharply from a challenging second quarter and posted strong sales and earnings growth sequentially and compared to the prior year quarter. Wood Products executed well on internal veneer production, which allowed us to grow engineered wood product sales while maintaining plywood sales volumes. On the last day of the quarter, we completed the acquisition of two plywood operations in the Carolinas. These added facilities position us well to
support our existing, as well as new, customers in the Southeast,” commented Tom Carlile, CEO. "We remained focused on opportunities to grow revenues and earnings."
3Q 2013 | 3Q 2012 | 2Q 2013 | ||||||||||
(thousands) | ||||||||||||
Consolidated Results | ||||||||||||
Sales | $ | 877,979 | $ | 764,596 | $ | 852,295 | ||||||
EBITDA1 | 39,510 | 36,821 | 30,694 | |||||||||
Net income | 15,860 | 23,503 | 10,412 | |||||||||
Segment Results | ||||||||||||
Wood Products segment sales | $ | 283,204 | $ | 259,759 | $ | 280,417 | ||||||
Wood Products segment EBITDA1 | 24,614 | 28,628 | 29,562 | |||||||||
BMD segment sales | 721,523 | 605,206 | 681,486 | |||||||||
BMD segment EBITDA1 | 20,108 | 12,563 | 5,493 | |||||||||
Corporate segment EBITDA1 | (5,212 | ) | (4,370 | ) | (4,361 | ) | ||||||
1Reconciliations between our results reported in accordance with U.S. generally accepted accounting principles (GAAP) and EBITDA are included in the summary notes at the end of this press release.
Wood Products Segment
Wood Products segment sales in the third quarter were $283.2 million, up 9% or $23.4 million from the same quarter a year ago. The sales increase was attributable primarily to increased engineered wood products (EWP) volumes and prices, resulting in increases of $14.0 million and $10.2 million, respectively. Higher lumber prices contributed an additional $4.3 million to sales compared to the year ago quarter. The sales gains were partially offset by lower plywood sales prices. The segment reported EBITDA of $24.6 million for the quarter, compared with $28.6 million reported in third quarter 2012. The decrease in EBITDA was due primarily to higher wood fiber costs and lower plywood sales prices, offset partially by higher EWP and lumber sales prices.
Building Materials Distribution Segment
BMD segment sales were $721.5 million in the third quarter, up 19% or $116.3 million from the same quarter a year ago. The gains were driven by improvements in volume and in prices of 16% and 2%, respectively. Commodity sales increased $58.3 million; EWP sales increased $32.3 million; and general line product sales increased $25.7 million. BMD reported quarterly EBITDA of $20.1 million compared with $12.6 million in third quarter 2012. While third quarter 2013 gross margins at 11.6% were down 0.4 percentage points from the 12.0% reported in third quarter 2012, the strong growth in sales resulted in the generation of significantly higher gross margin dollars. In addition, the business achieved positive sales growth leverage on selling and distribution expenses, as well as on general and administrative expenses.
Balance Sheet
Boise Cascade ended third quarter 2013 with $157.0 million of cash and cash equivalents and $274.7 million of undrawn committed bank line availability, for total available liquidity of $431.7 million. At September 30, 2013, Boise Cascade had outstanding debt of $326.7 million.
Outlook
For the balance of 2013, we expect to continue to experience demand below 20-year average historical levels for the products we manufacture and distribute. However, the housing industry has shown signs of improvement in the U.S., and we remain optimistic that the improvement in demand for our products will continue. Commodity product pricing was more stable in third quarter 2013 than in the first half of the year. Future pricing
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could be volatile in response to industry operating rates, inventory levels in various distribution channels, and seasonal demand patterns. We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity until demand improves further.
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 our website at www.bc.com.
Webcast and Conference Call
Boise Cascade will host a webcast and conference call on Monday, October 21, at 11 a.m. Eastern, at which time we will review the Company's third quarter results.
You can join the webcast through our website by going to www.bc.com and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15 minutes before the start of the webcast to register. The archived webcast will be available in the Investor Relations section of our website.
To participate in the conference call, dial 866-271-5140 and use passcode 80336097 (international callers should dial 617-213-8893) at least 10 minutes before the start of the call. A replay of the conference call will be available from October 21 at 3 p.m. Eastern through October 28, at 11 p.m. Playback numbers are 888-286-8010 for U.S. callers and 617-801-6888 for international callers. The replay passcode will be 57261872.
Basis of Presentation
We refer to the terms EBITDA and adjusted net income in this earnings release. EBITDA and adjusted net income are 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 before interest (interest expense and interest income), income taxes, and depreciation and amortization. We define adjusted net income as net income before certain unusual items.
EBITDA is the primary measure used by our management to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA and adjusted net income 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. We believe EBITDA and adjusted net income 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. EBITDA and adjusted net income, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income, income 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 and adjusted net income instead of net income or segment income 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 these limitations by relying on our GAAP results. Our measures of EBITDA and adjusted net income are 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
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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
(unaudited, in thousands, except per-share data)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2013 | September 30 | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Sales | $ | 877,979 | $ | 764,596 | $ | 852,295 | $ | 2,475,152 | $ | 2,084,482 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 759,777 | 653,125 | 750,996 | 2,155,620 | 1,795,856 | ||||||||||||||
Depreciation and amortization | 8,962 | 8,461 | 8,766 | 26,205 | 24,918 | ||||||||||||||
Selling and distribution expenses | 66,244 | 62,572 | 60,102 | 183,350 | 176,854 | ||||||||||||||
General and administrative expenses | 12,867 | 12,185 | 10,251 | 33,164 | 31,922 | ||||||||||||||
Other (income) expense, net | (350 | ) | 121 | (39 | ) | (523 | ) | 406 | |||||||||||
847,500 | 736,464 | 830,076 | 2,397,816 | 2,029,956 | |||||||||||||||
Income from operations | 30,479 | 28,132 | 22,219 | 77,336 | 54,526 | ||||||||||||||
Foreign exchange gain (loss) | 69 | 228 | (291 | ) | (302 | ) | 125 | ||||||||||||
Interest expense | (5,174 | ) | (4,840 | ) | (4,781 | ) | (14,846 | ) | (14,471 | ) | |||||||||
Interest income | 88 | 87 | 62 | 212 | 281 | ||||||||||||||
(5,017 | ) | (4,525 | ) | (5,010 | ) | (14,936 | ) | (14,065 | ) | ||||||||||
Income before income taxes | 25,462 | 23,607 | 17,209 | 62,400 | 40,461 | ||||||||||||||
Income tax (provision) benefit (a) | (9,602 | ) | (104 | ) | (6,797 | ) | 44,708 | (243 | ) | ||||||||||
Net income | $ | 15,860 | $ | 23,503 | $ | 10,412 | $ | 107,108 | $ | 40,218 | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 40,625 | 29,700 | 43,229 | 40,486 | 29,700 | ||||||||||||||
Diluted | 40,640 | 29,700 | 43,233 | 40,492 | 29,700 | ||||||||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.39 | $ | 0.79 | $ | 0.24 | $ | 2.65 | $ | 1.35 | |||||||||
Diluted | $ | 0.39 | $ | 0.79 | $ | 0.24 | $ | 2.65 | $ | 1.35 | |||||||||
See accompanying summary notes to consolidated financial statements and segment information.
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Wood Products Segment
Statements of Operations
(unaudited, in thousands, except percentages)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2013 | September 30 | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Segment sales | $ | 283,204 | $ | 259,759 | $ | 280,417 | $ | 832,837 | $ | 712,744 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 249,037 | 221,328 | 241,745 | 724,166 | 618,128 | ||||||||||||||
Depreciation and amortization | 6,686 | 6,164 | 6,517 | 19,456 | 18,182 | ||||||||||||||
Selling and distribution expenses | 6,637 | 7,059 | 6,709 | 20,039 | 20,535 | ||||||||||||||
General and administrative expenses | 3,039 | 2,608 | 2,408 | 7,578 | 6,628 | ||||||||||||||
Other (income) expense, net | (123 | ) | 136 | (7 | ) | (183 | ) | 448 | |||||||||||
265,276 | 237,295 | 257,372 | 771,056 | 663,921 | |||||||||||||||
Segment income | $ | 17,928 | $ | 22,464 | $ | 23,045 | $ | 61,781 | $ | 48,823 | |||||||||
(percentage of sales) | |||||||||||||||||||
Segment sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 87.9 | % | 85.2 | % | 86.2 | % | 87.0 | % | 86.7 | % | |||||||||
Depreciation and amortization | 2.4 | % | 2.4 | % | 2.3 | % | 2.3 | % | 2.6 | % | |||||||||
Selling and distribution expenses | 2.3 | % | 2.7 | % | 2.4 | % | 2.4 | % | 2.9 | % | |||||||||
General and administrative expenses | 1.1 | % | 1.0 | % | 0.9 | % | 0.9 | % | 0.9 | % | |||||||||
Other (income) expense, net | — | % | 0.1 | % | — | % | — | % | 0.1 | % | |||||||||
93.7 | % | 91.4 | % | 91.8 | % | 92.6 | % | 93.1 | % | ||||||||||
Segment income | 6.3 | % | 8.6 | % | 8.2 | % | 7.4 | % | 6.9 | % | |||||||||
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Building Materials Distribution Segment
Statements of Operations
(unaudited, in thousands, except percentages)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2013 | September 30 | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Segment sales | $ | 721,523 | $ | 605,206 | $ | 681,486 | $ | 1,984,138 | $ | 1,637,167 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 637,719 | 532,812 | 619,174 | 1,773,895 | 1,444,171 | ||||||||||||||
Depreciation and amortization | 2,245 | 2,263 | 2,217 | 6,640 | 6,639 | ||||||||||||||
Selling and distribution expenses | 59,607 | 55,513 | 53,393 | 163,311 | 156,319 | ||||||||||||||
General and administrative expenses | 4,175 | 4,372 | 3,480 | 11,397 | 12,017 | ||||||||||||||
Other (income) expense, net | (86 | ) | (54 | ) | (54 | ) | (241 | ) | (159 | ) | |||||||||
703,660 | 594,906 | 678,210 | 1,955,002 | 1,618,987 | |||||||||||||||
Segment income | $ | 17,863 | $ | 10,300 | $ | 3,276 | $ | 29,136 | $ | 18,180 | |||||||||
(percentage of sales) | |||||||||||||||||||
Segment sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 88.4 | % | 88.0 | % | 90.9 | % | 89.4 | % | 88.2 | % | |||||||||
Depreciation and amortization | 0.3 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.4 | % | |||||||||
Selling and distribution expenses | 8.3 | % | 9.2 | % | 7.8 | % | 8.2 | % | 9.5 | % | |||||||||
General and administrative expenses | 0.6 | % | 0.7 | % | 0.5 | % | 0.6 | % | 0.7 | % | |||||||||
Other (income) expense, net | — | % | — | % | — | % | — | % | — | % | |||||||||
97.5 | % | 98.3 | % | 99.5 | % | 98.5 | % | 98.9 | % | ||||||||||
Segment income | 2.5 | % | 1.7 | % | 0.5 | % | 1.5 | % | 1.1 | % | |||||||||
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Segment Information
(unaudited, in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2013 | September 30 | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Segment sales | |||||||||||||||||||
Wood Products | $ | 283,204 | $ | 259,759 | $ | 280,417 | $ | 832,837 | $ | 712,744 | |||||||||
Building Materials Distribution | 721,523 | 605,206 | 681,486 | 1,984,138 | 1,637,167 | ||||||||||||||
Intersegment eliminations | (126,748 | ) | (100,369 | ) | (109,608 | ) | (341,823 | ) | (265,429 | ) | |||||||||
$ | 877,979 | $ | 764,596 | $ | 852,295 | $ | 2,475,152 | $ | 2,084,482 | ||||||||||
Segment income | |||||||||||||||||||
Wood Products | $ | 17,928 | $ | 22,464 | $ | 23,045 | $ | 61,781 | $ | 48,823 | |||||||||
Building Materials Distribution | 17,863 | 10,300 | 3,276 | 29,136 | 18,180 | ||||||||||||||
Corporate and Other | (5,243 | ) | (4,404 | ) | (4,393 | ) | (13,883 | ) | (12,352 | ) | |||||||||
30,548 | 28,360 | 21,928 | 77,034 | 54,651 | |||||||||||||||
Interest expense | (5,174 | ) | (4,840 | ) | (4,781 | ) | (14,846 | ) | (14,471 | ) | |||||||||
Interest income | 88 | 87 | 62 | 212 | 281 | ||||||||||||||
Income before income taxes | $ | 25,462 | $ | 23,607 | $ | 17,209 | $ | 62,400 | $ | 40,461 | |||||||||
EBITDA (b) | |||||||||||||||||||
Wood Products | $ | 24,614 | $ | 28,628 | $ | 29,562 | $ | 81,237 | $ | 67,005 | |||||||||
Building Materials Distribution | 20,108 | 12,563 | 5,493 | 35,776 | 24,819 | ||||||||||||||
Corporate and Other | (5,212 | ) | (4,370 | ) | (4,361 | ) | (13,774 | ) | (12,255 | ) | |||||||||
$ | 39,510 | $ | 36,821 | $ | 30,694 | $ | 103,239 | $ | 79,569 | ||||||||||
See accompanying summary notes to consolidated financial statements and segment information.
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Boise Cascade Company
Consolidated Balance Sheets
(unaudited, in thousands)
September 30, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 157,019 | $ | 54,507 | ||||
Receivables | ||||||||
Trade, less allowances of $3,150 and $2,696 | 203,935 | 134,743 | ||||||
Related parties | 470 | 674 | ||||||
Other | 8,643 | 6,204 | ||||||
Inventories | 369,180 | 325,806 | ||||||
Deferred income taxes | 21,324 | 2 | ||||||
Prepaid expenses and other | 8,997 | 5,521 | ||||||
Total current assets | 769,568 | 527,457 | ||||||
Property and equipment, net | 355,091 | 265,924 | ||||||
Timber deposits | 5,701 | 6,221 | ||||||
Deferred financing costs | 8,437 | 7,562 | ||||||
Goodwill | 20,477 | 12,170 | ||||||
Intangible assets | 10,300 | 8,900 | ||||||
Deferred income taxes | 41,133 | — | ||||||
Other assets | 7,252 | 8,164 | ||||||
Total assets | $ | 1,217,959 | $ | 836,398 | ||||
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Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except per-share data)
September 30, 2013 | December 31, 2012 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current | ||||||||
Accounts payable | ||||||||
Trade | $ | 191,613 | $ | 140,192 | ||||
Related parties | 2,159 | 1,950 | ||||||
Accrued liabilities | ||||||||
Compensation and benefits | 59,177 | 61,814 | ||||||
Interest payable | 8,073 | 3,188 | ||||||
Other | 40,793 | 29,043 | ||||||
Total current liabilities | 301,815 | 236,187 | ||||||
Debt | ||||||||
Long-term debt | 326,694 | 275,000 | ||||||
Other | ||||||||
Compensation and benefits | 194,346 | 206,668 | ||||||
Other long-term liabilities | 15,146 | 14,336 | ||||||
209,492 | 221,004 | |||||||
Redeemable equity | — | 6,443 | ||||||
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, 43,229 issued and 39,365 outstanding and 29,700 shares issued and outstanding | 432 | 297 | ||||||
Treasury Stock, 3,864 and 0 shares at cost | (100,000 | ) | — | |||||
Additional paid-in capital | 495,587 | 256,927 | ||||||
Accumulated other comprehensive loss | (116,938 | ) | (121,229 | ) | ||||
Retained earnings (accumulated deficit) | 100,877 | (38,231 | ) | |||||
Total stockholders' equity | 379,958 | 97,764 | ||||||
Total liabilities and stockholders' equity | $ | 1,217,959 | $ | 836,398 | ||||
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Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Nine Months Ended | ||||||||
September 30 | ||||||||
2013 | 2012 | |||||||
Cash provided by (used for) operations | ||||||||
Net income | $ | 107,108 | $ | 40,218 | ||||
Items in net income not using (providing) cash | ||||||||
Depreciation and amortization, including deferred financing costs and other | 27,573 | 26,732 | ||||||
Stock-based compensation | 1,862 | — | ||||||
Pension expense | 8,104 | 9,398 | ||||||
Deferred income taxes | (65,095 | ) | — | |||||
Other | (628 | ) | (500 | ) | ||||
Decrease (increase) in working capital, net of acquisitions | ||||||||
Receivables | (63,987 | ) | (53,308 | ) | ||||
Inventories | (36,440 | ) | (34,599 | ) | ||||
Prepaid expenses and other | (1,624 | ) | (1,973 | ) | ||||
Accounts payable and accrued liabilities | 54,200 | 82,333 | ||||||
Pension contributions | (10,352 | ) | (8,181 | ) | ||||
Income taxes payable | 2,218 | 67 | ||||||
Other | (862 | ) | 4,685 | |||||
Net cash provided by operations | 22,077 | 64,872 | ||||||
Cash provided by (used for) investment | ||||||||
Expenditures for property and equipment | (29,935 | ) | (17,682 | ) | ||||
Acquisitions of businesses and facilities | (102,002 | ) | (2,355 | ) | ||||
Proceeds from sales of assets | 1,536 | 171 | ||||||
Other | 9 | (3 | ) | |||||
Net cash used for investment | (130,392 | ) | (19,869 | ) | ||||
Cash provided by (used for) financing | ||||||||
Net proceeds from issuance of common stock | 262,488 | — | ||||||
Treasury stock purchased | (100,000 | ) | — | |||||
Issuances of long-term debt | 130,000 | — | ||||||
Payments of long-term debt | (80,000 | ) | — | |||||
Distributions to members | — | (2,790 | ) | |||||
Financing costs | (1,854 | ) | (250 | ) | ||||
Other | 193 | — | ||||||
Net cash provided by (used for) financing | 210,827 | (3,040 | ) | |||||
Net increase in cash and cash equivalents | 102,512 | 41,963 | ||||||
Balance at beginning of the period | 54,507 | 182,455 | ||||||
Balance at end of the period | $ | 157,019 | $ | 224,418 | ||||
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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 do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the company’s 2012 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.
(a) | Adjusted net income represents net income before certain unusual items. The nine months ended September 30, 2013 includes $68.7 million of income tax benefit associated with recording net deferred tax assets upon the Company's conversion from a limited liability company to a corporation. The following table reconciles net income to adjusted net income for the nine months ended September 30, 2013 and 2012: |
Nine Months Ended | ||||||||
September 30 | ||||||||
2013 | 2012 | |||||||
(unaudited, in thousands, except per-share amounts) | ||||||||
Net income (GAAP basis) | $ | 107,108 | $ | 40,218 | ||||
Impact of deferred tax benefit | (68,666 | ) | — | |||||
Adjusted net income (non-GAAP basis) | $ | 38,442 | $ | 40,218 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 40,486 | 29,700 | ||||||
Diluted | 40,492 | 29,700 | ||||||
Adjusted net income (non-GAAP basis), per share: | ||||||||
Basic | $ | 0.95 | $ | 1.35 | ||||
Diluted | $ | 0.95 | $ | 1.35 | ||||
(b) | EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. The following table reconciles net income to EBITDA for the three months ended September 30, 2013 and 2012, and June 30, 2013, and the nine months ended September 30, 2013 and 2012: |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2013 | September 30 | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||
Net income | $ | 15,860 | $ | 23,503 | $ | 10,412 | $ | 107,108 | $ | 40,218 | |||||||||
Interest expense | 5,174 | 4,840 | 4,781 | 14,846 | 14,471 | ||||||||||||||
Interest income | (88 | ) | (87 | ) | (62 | ) | (212 | ) | (281 | ) | |||||||||
Income tax provision (benefit) | 9,602 | 104 | 6,797 | (44,708 | ) | 243 | |||||||||||||
Depreciation and amortization | 8,962 | 8,461 | 8,766 | 26,205 | 24,918 | ||||||||||||||
EBITDA | $ | 39,510 | $ | 36,821 | $ | 30,694 | $ | 103,239 | $ | 79,569 | |||||||||
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The following table reconciles segment income (loss) to EBITDA for the three months ended September 30, 2013 and 2012, and June 30, 2013, and nine months ended September 30, 2013 and 2012:
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30 | June 30, 2013 | September 30 | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Wood Products | ||||||||||||||||||||
Segment income | $ | 17,928 | $ | 22,464 | $ | 23,045 | $ | 61,781 | $ | 48,823 | ||||||||||
Depreciation and amortization | 6,686 | 6,164 | 6,517 | 19,456 | 18,182 | |||||||||||||||
EBITDA | 24,614 | 28,628 | 29,562 | 81,237 | 67,005 | |||||||||||||||
Building Materials Distribution | ||||||||||||||||||||
Segment income | 17,863 | 10,300 | 3,276 | 29,136 | 18,180 | |||||||||||||||
Depreciation and amortization | 2,245 | 2,263 | 2,217 | 6,640 | 6,639 | |||||||||||||||
EBITDA | 20,108 | 12,563 | 5,493 | 35,776 | 24,819 | |||||||||||||||
Corporate and Other | ||||||||||||||||||||
Segment loss | (5,243 | ) | (4,404 | ) | (4,393 | ) | (13,883 | ) | (12,352 | ) | ||||||||||
Depreciation and amortization | 31 | 34 | 32 | 109 | 97 | |||||||||||||||
EBITDA | (5,212 | ) | (4,370 | ) | (4,361 | ) | (13,774 | ) | (12,255 | ) | ||||||||||
Total Company EBITDA | $ | 39,510 | $ | 36,821 | $ | 30,694 | $ | 103,239 | $ | 79,569 | ||||||||||
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