Boise Cascade Co (BCC, Financial), a leading producer of engineered wood products (EWP) and plywood, reported its financial results for the second quarter ended June 30, 2024. The company operates in two segments: Wood Products and Building Materials Distribution, with the latter generating the majority of its revenue.
Performance Overview
Boise Cascade Co (BCC, Financial) reported net income of $112.3 million, or $2.84 per share, on sales of $1.8 billion for Q2 2024. This compares to net income of $146.3 million, or $3.67 per share, on sales of $1.8 billion for the same period in 2023. The reported EPS of $2.84 exceeded the analyst estimate of $2.69, while the revenue of $1.8 billion slightly beat the estimated $1.771 billion.
Segment Performance
In the Wood Products segment, sales decreased by 8% to $489.8 million, driven by lower plywood sales volumes and reduced sales prices for LVL and I-joists. Segment income also fell by 30% to $72.8 million due to higher wood fiber and conversion costs.
The Building Materials Distribution segment saw a 1% increase in sales to $1.655 billion, primarily due to a 2% increase in sales volume, partially offset by a 1% decrease in sales prices. Segment income decreased by 13% to $85.4 million, impacted by higher selling and distribution expenses.
Financial Achievements and Challenges
Despite a challenging demand environment influenced by elevated mortgage rates and economic uncertainties, Boise Cascade Co (BCC, Financial) managed to deliver solid financial performance. The company’s focus on organic growth projects and capital returns to shareholders, including a special dividend, underscores its commitment to value creation.
Our team delivered solid financial performance in the second quarter while operating in a somewhat tepid demand environment influenced by elevated mortgage rates and economic uncertainties," stated Nate Jorgensen, CEO.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Sales | $1,797,670 | $1,815,219 | (1)% |
| Net Income | $112,292 | $146,320 | (23)% |
| EPS (Diluted) | $2.84 | $3.67 | (23)% |
| Adjusted EBITDA | $181,207 | $220,976 | (18)% |
Balance Sheet and Liquidity
Boise Cascade Co (BCC, Financial) ended Q2 2024 with $922.1 million in cash and cash equivalents and $395.7 million in undrawn committed bank line availability, totaling $1.317 billion in available liquidity. The company had $445.7 million in outstanding debt as of June 30, 2024.
Capital Allocation
The company expects capital expenditures for 2024 to be between $250 million and $270 million, excluding potential acquisition spending. On August 1, 2024, the board declared a quarterly dividend of $0.21 per share and a special dividend of $5.00 per share, payable on September 16, 2024.
Outlook
Boise Cascade Co (BCC, Financial) remains cautiously optimistic about the near-term demand environment, despite uncertainties in the housing market and economic conditions. The company’s strategic focus on leveraging its manufacturing and distribution network positions it well to navigate these challenges.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Boise Cascade Co for further details.
