Boise Cascade Company Second Quarter 2013 Earnings Webcast July - PowerPoint PPT Presentation

Boise Cascade Company Second Quarter 2013 Earnings Webcast July 23, 2013

Forward-Looking Statements This presentation includes statements about our expectations of future operational and  financial performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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, the effect of general economic conditions, 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 presentation. 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 presentation. This presentation includes references to EBITDA and adjusted net income, which are  non-GAAP financial measures within the meaning of the Securities and Exchange Commission’s Regulation G. Reconciliations of net income to EBITDA, segment income (loss) to segment EBITDA, and net income to adjusted net income are included as an appendix and are posted on the company’s website at www.bc.com. Slide 2 July 23, 2013

Executive Summary Total U.S. housing starts increased approximately 17% compared with  2Q12. Single-family starts increased approximately 14% Second quarter sales were $852.3 million, up 16% from 2Q12:  Higher plywood average net sales realization  Continued robust EWP volume growth versus prior year quarter   Price increases on many products purchased and sold by Building Materials Distribution (BMD) Second quarter net income was $10.4 million, or $0.24 per share  Commodity pricing began a steep descent early in the second quarter with  composite panel and lumber prices dropping more than 25% by quarter end Announced agreement to acquire two plywood facilities in southeastern  United States Slide 3 July 23, 2013

Composite Lumber Price 480 First Quarter Second Quarter Third Quarter Fourth Quarter 440 400 360 320 280 240 200 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week 2013 2012 Source: Random Lengths Slide 4 July 23, 2013

Panel Composite Price 560 First Quarter Second Quarter Third Quarter Fourth Quarter 520 480 440 400 360 320 280 240 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week 2013 2012 Source: Random Lengths Slide 5 July 23, 2013

2Q 2013 Financial Highlights Sales EBITDA $ Millions $ Millions $1,000 $40 $900 $35 $800 5.5 $30 $30.7 $700 10.9 $852.3 681.5 $600 $25 580.5 $500 $20 $400 +16% +9% $15 29.6 $300 21.7 $200 $10 $732.9 280.4 241.8 $28.2 $100 $5 $0 (89.4) (109.6) $0 ($100) (4.4) (4.4) ($200) -$5 2Q 2012 2Q 2013 2Q 2012 2Q 2013 Wood BMD Eliminations Wood BMD Corporate Slide 6 July 23, 2013

Wood Products Plywood Net Sales Price Sales Volume (mmsf 3/8” basis) ($/msf 3/8” basis) 400 $350 331 328 318 355 304 346 346 343 339 350 290 $300 328 267 300 $250 250 $200 200 $150 150 $100 100 $50 50 0 $0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013 Slide 7 July 23, 2013

Wood Products EWP LVL I-Joists (mmcf) (mmelf) 44 3.0 45 42 41 2.7 2.7 2.6 39 40 35 2.5 2.3 35 2.1 2.1 30 2.0 30 25 1.5 20 1.0 15 10 0.5 5 0.0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) 989 $18 $1,000 964 935 928 915 909 $900 15.7 $16 15.3 15.1 14.9 14.8 14.5 $800 $14 $700 $12 $600 $10 $500 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013 Slide 8 July 23, 2013

Building Materials Distribution Sales ($ Millions) (% of Sales) $800 100 13 13 14 14 15 15 681 $700 605 80 581 581 $600 553 31 34 37 35 39 36 $500 451 60 $400 40 $300 54 52 $200 51 50 49 48 20 $100 $0 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 1Q 2Q 3Q 4Q Commodity General Line EWP 2012 2013 Slide 9 July 23, 2013

Working Capital ($ Millions) 6/30/2013 3/31/2013 Change Receivables $ 212.8 $ 209.9 $ 2.9 Inventory 368.4 387.1 (18.7) Other current assets (excluding cash and deferred taxes) 11.9 8.3 3.6 593.1 605.3 (12.2) Accounts payable 197.2 218.5 (21.3) Accrued liabilities 75.7 82.6 (6.9) 272.9 301.1 (28.2) Net working capital (excluding cash and deferred taxes) $ 320.2 $ 304.2 $ 16.0 Slide 10 July 23, 2013

Debt and Liquidity Highlights ($ Millions) 6/30/2013 3/31/2013 Net Debt Long-term debt $ 250.0 $ 250.0 Cash & cash equivalents (232.7) (233.5) Net debt $ 17.3 $ 16.5 Liquidity Position ABL excess availability $ 290.7 $ 290.2 Cash & cash equivalents 232.7 233.5 Total liquidity $ 523.4 $ 523.8 Slide 11 July 23, 2013

Outlook The current consensus estimate for 2013 U.S. housing starts is 990,000 vs.  780,000 in 2012. We believe the long-term demand fundamentals for housing are still sound  based on demographics in the U.S. We are focused on meeting our customers’ needs as demand continues to  strengthen. Pricing for the commodity wood products we manufacture and/or distribute  (e.g., plywood, OSB, dimension lumber) have improved modestly since quarter end. Future pricing could be volatile in response to operating rates and inventory levels in various distribution channels. Pricing for our engineered wood products is improving in response to higher  demand and higher operating rates. Acquisition of southeastern plywood operations expected to close late third  quarter. Slide 12 July 23, 2013

Appendix July 23, 2013

Appendix 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 June 30, 2013 and 2012, and March 31, 2013: ($ Millions) 2Q13 2Q12 1Q13 Net income $ 10.4 $ 15.0 $ 80.8 Interest expense 4.8 4.8 4.9 Interest income (0.1) (0.1) (0.1) Income tax provision (benefit) 6.8 0.1 (61.1) Depreciation and amortization 8.8 8.3 8.5 EBITDA $ 30.7 $ 28.2 $ 33.0 Slide 14 July 23, 2013

Appendix Segment EBITDA represents segment income (loss) before depreciation and amortization. The following table reconciles segment income (loss) to segment EBITDA for the three months ended June 30, 2013 and 2012, and March 31, 2013: ($ Millions) 2Q13 2Q12 1Q13 Wood Products Segment income $ 23.0 $ 15.5 $ 20.8 Depreciation and amortization 6.5 6.1 6.3 Segment EBITDA $ 29.6 $ 21.7 $ 27.1 Building Materials Distribution Segment income $ 3.3 $ 8.7 $ 8.0 Depreciation and amortization 2.2 2.2 2.2 Segment EBITDA $ 5.5 $ 10.9 $ 10.2 Slide 15 July 23, 2013

Appendix First quarter 2013 includes $68.7 million of income tax benefit associated with recording net deferred tax assets upon our conversion from a limited liability company to a corporation. The following table reconciles GAAP net income to adjusted non-GAAP net income for the three months ended June 30, 2013 and 2012, and March 31, 2013: ($ Millions, except per-share amounts) 2Q13 2Q12 1Q13 Net income (GAAP basis) $ 10.4 $ 15.0 $ 80.8 Impact of deferred tax benefit - - (68.7) Adjusted net income (non-GAAP basis) $ 10.4 $ 15.0 $ 12.1 Weighted average common shares outstanding Basic 43,229 29,700 37,569 Diluted 43,233 29,700 37,569 Adjusted net income (non-GAAP basis), per share: Basic $ 0.24 $ 0.51 $ 0.32 Diluted $ 0.24 $ 0.51 $ 0.32 Slide 16 July 23, 2013