Q1 2024 Boise Cascade Co Earnings Call Transcript
Key Points
- Boise Cascade Co reported a 7% increase in consolidated first quarter sales, reaching $1.6 billion compared to the first quarter of 2023.
- Net income for the first quarter was $104.1 million, or $2.61 per share, up from $96.7 million, or $2.43 per share, in the year-ago quarter.
- Wood Products segment EBITDA increased due to higher sales volumes and plywood sales prices, despite some offsetting factors.
- Building Materials Distribution (BMD) segment saw a 9% increase in sales, with EBITDA also rising due to improved gross margins from higher sales volumes and margins on general line and commodity products.
- Capital expenditures were managed effectively, with $34 million spent in the first quarter and a robust plan for continued investment throughout 2024.
- The increase in segment EBITDA for Wood Products was partially offset by lower engineered wood products (EWP) prices and higher wood fiber costs.
- Increased selling and distribution expenses and depreciation and amortization expenses partially offset the gross margin improvements in the BMD segment.
- First quarter plywood volumes decreased as production shifted towards EWP due to higher demand, indicating potential volatility in product focus.
- Pricing pressure in the market led to a sequential decrease in pricing for I-joists and LVL by 4%, with expectations of continued, albeit moderated, price erosion.
- Uncertainty in panel markets is expected to lead to downward pricing pressure on plywood as the company moves through the second quarter of 2024.
Good day. My name is Corey, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascade's First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.
It is now my pleasure to introduce you to Chris Forrey, Vice President of Finance and Investor Relations, Boise Cascade. Mr. Forrey, you may begin your conference.
Thank you, Corey, and good morning, everyone. I would like to welcome you to Boise Cascade's First 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 the presentation slides and in our filings with the SEC regarding the risks associated with these forward-looking
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