Q2 2024 Boise Cascade Co Earnings Call Transcript
Key Points
- Boise Cascade Co (BCC) reported consolidated second quarter sales of $1.8 billion, demonstrating resilience despite a 1% decrease from the prior year.
- The company achieved a net income of $112.3 million or $2.84 per share, showcasing strong profitability.
- BMD sales increased by 1% year-over-year, reaching $1.7 billion, indicating growth in the Building Materials Distribution segment.
- Boise Cascade Co (BCC) paid $19 million in regular dividends and executed share repurchases worth approximately $100 million, reflecting a commitment to shareholder returns.
- The company is investing in organic growth projects, including the modernization of the Oakdale facility and a new distribution facility in Hondo, Texas, indicating a focus on long-term growth.
- Total US housing starts decreased by 7%, driven by lower multi-family starts, which could impact future demand.
- Wood product sales declined to $489.8 million from $530.3 million in the previous year, primarily due to lower EWP sales prices and higher wood fiber and conversion costs.
- Segment EBITDA for Wood Products decreased to $95.1 million from $127 million, indicating a decline in profitability for this segment.
- BMD's gross margin percentage decreased by 20 basis points year-over-year, reflecting margin pressure in the Building Materials Distribution segment.
- The company anticipates mid to high single-digit sequential volume declines in EWP for the third quarter, indicating potential challenges in maintaining sales volumes.
Good morning. My name is Felicia Crabtree, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascade's second quarter 2024 earnings conference call. (operator instructions) After the speaker's remarks, there will be a question and answer period.
It is now my pleasure to introduce you to Chris Forrey, Vice President, Finance and Investor Relations of Boise Cascade. Mr. Forrey, you may now begin your conference.
Thank you, Felicia, and good morning, everyone.
I would like to welcome you to Boise Cascade's second quarter 2024 earnings call and business update. Joining me on today's call are Nate Jorgensen, our CEO; Kelly Hibbs, our CFO and Treasurer; Troy Little, Head of our Wood Products Operations; and Jeff Strom Head of our Building Materials Distribution Operations.
Turning to Slide 2. This call will contain forward-looking statements. Please review the warning statements in our press release, on
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