Boise Cascade Company Reports Fourth Quarter and Full Year 2019 Results
Fourth Quarter and Year End 2019 Highlights |
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4Q 2019 |
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4Q 2018 |
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%
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2019 |
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2018 |
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%
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(in thousands, except per-share data and percentages) |
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Consolidated Results |
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Sales |
|
$ |
1,101,713 |
|
|
$ |
1,065,805 |
|
|
3 |
% |
|
$ |
4,643,404 |
|
|
$ |
4,995,290 |
|
|
(7 |
)% |
Net income (loss) |
|
14,647 |
|
|
(72,246 |
) |
|
N/M |
|
80,925 |
|
|
20,477 |
|
|
N/M |
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Net income (loss) per common share - diluted |
|
0.37 |
|
|
(1.85 |
) |
|
N/M |
|
2.06 |
|
|
0.52 |
|
|
N/M |
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Adjusted EBITDA 1 |
|
45,243 |
|
|
(8,997 |
) |
|
N/M |
|
214,575 |
|
|
192,932 |
|
|
11 |
% |
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Segment Results |
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Wood Products sales |
|
$ |
296,286 |
|
|
$ |
307,124 |
|
|
(4 |
)% |
|
$ |
1,275,167 |
|
|
$ |
1,533,270 |
|
|
(17 |
)% |
Wood Products income (loss) |
|
8,062 |
|
|
(86,554 |
) |
|
N/M |
|
54,197 |
|
|
(10,022 |
) |
|
N/M |
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Wood Products EBITDA 1 |
|
22,651 |
|
|
(15,289 |
) |
|
N/M |
|
111,868 |
|
|
116,967 |
|
|
(4 |
)% |
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Building Materials Distribution sales |
|
986,969 |
|
|
922,234 |
|
|
7 |
% |
|
4,137,719 |
|
|
4,287,702 |
|
|
(3 |
)% |
||||
Building Materials Distribution income |
|
26,254 |
|
|
8,905 |
|
|
195 |
% |
|
116,236 |
|
|
112,510 |
|
|
3 |
% |
||||
Building Materials Distribution EBITDA 1 |
|
31,585 |
|
|
13,811 |
|
|
129 |
% |
|
137,005 |
|
|
130,790 |
|
|
5 |
% |
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release. |
In the fourth quarter 2019, total
“We had stronger than expected financial performance in the quarter as favorable weather allowed homebuilders to maintain solid activity levels, driving product demand. Our full year results illustrate our strategic progress since our initial public offering in 2013. Both businesses performed well given limited residential construction growth and persistent weakness in commodity wood products pricing. Our continued progress towards growing our engineered wood products and distribution businesses has increased our earnings stability,” commented
Other Items Impacting 2018 Results
Fourth quarter 2018 results included
Full year 2018 results included the above items, as well as
Wood Products
Wood Products sales, including sales to
For the year ended
Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:
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4Q 2019 vs. 4Q 2018 |
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2019 vs. 2018 |
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Average Net Selling Prices |
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LVL |
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(1)% |
|
3% |
I-joists |
|
4% |
|
4% |
Plywood |
|
(18)% |
|
(24)% |
Sales Volumes |
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|
LVL |
|
21% |
|
1% |
I-joists |
|
20% |
|
(4)% |
Plywood |
|
(3)% |
|
(6)% |
Building Materials Distribution
BMD's sales increased
For the year ended
Balance Sheet
Boise Cascade ended fourth quarter 2019 with
We adopted the new lease accounting standard on
During 2019, Boise Cascade transferred
Dividends
On
Outlook
The
As both a manufacturer and a distributor, our 2019 financial results were impacted by lower lumber, OSB, and plywood pricing compared to pricing in 2018. Additional industry capacity brought on in 2018, and more plywood imports from
On
Consistent with historical patterns, we expect working capital increases to use cash in the first quarter of 2020. In addition, we expect our capital spending, excluding acquisitions, to be
About Boise Cascade
Webcast and Conference Call
Boise Cascade will host a webcast and conference call to discuss fourth quarter and full year earnings on
To participate in the conference call, dial 844-795-4410 and use participant passcode 1196288 (international callers should dial 661-378-9637). To join the webcast go to the Investor Relations section at www.bc.com and select the Event Calendar link.
A replay of the conference call will be available from
Use of Non-GAAP Financial Measures
We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in
We believe EBITDA and Adjusted EBITDA 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. We also believe EBITDA and Adjusted EBITDA 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. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income (loss) or segment income (loss) have limitations as analytical tools, 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 EBITDA 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 press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. 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, changes in the competitive position of our products, commodity input costs, 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
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Consolidated Statements of Operations |
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(in thousands, except per-share data) |
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Three Months Ended |
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Year Ended |
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2019 |
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2018 |
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2019 |
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2019 |
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2018 |
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Sales |
$ |
1,101,713 |
|
|
$ |
1,065,805 |
|
|
$ |
1,269,524 |
|
|
$ |
4,643,404 |
|
|
$ |
4,995,290 |
|
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Costs and expenses |
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Materials, labor, and other operating expenses (excluding depreciation) |
939,375 |
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|
940,878 |
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|
1,078,924 |
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|
3,965,776 |
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|
4,307,594 |
|
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Depreciation and amortization |
20,501 |
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|
76,549 |
|
|
20,969 |
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|
80,141 |
|
|
146,837 |
|
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Selling and distribution expenses |
98,280 |
|
|
89,546 |
|
|
106,567 |
|
|
390,739 |
|
|
363,138 |
|
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General and administrative expenses |
19,008 |
|
|
16,057 |
|
|
18,603 |
|
|
71,072 |
|
|
68,811 |
|
||||||
Loss on sale and curtailment of facilities |
— |
|
|
27,288 |
|
|
— |
|
|
— |
|
|
38,314 |
|
||||||
Other (income) expense, net |
(226 |
) |
|
(236 |
) |
|
(437 |
) |
|
(783 |
) |
|
(1,442 |
) |
||||||
|
1,076,938 |
|
|
1,150,082 |
|
|
1,224,626 |
|
|
4,506,945 |
|
|
4,923,252 |
|
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Income (loss) from operations |
24,775 |
|
|
(84,277 |
) |
|
44,898 |
|
|
136,459 |
|
|
72,038 |
|
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Foreign currency exchange gain (loss) |
239 |
|
|
(672 |
) |
|
(200 |
) |
|
449 |
|
|
(944 |
) |
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Pension expense (excluding service costs) |
(272 |
) |
|
(597 |
) |
|
(1,613 |
) |
|
(2,474 |
) |
|
(24,999 |
) |
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Interest expense |
(6,596 |
) |
|
(6,666 |
) |
|
(6,532 |
) |
|
(26,051 |
) |
|
(26,193 |
) |
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Interest income |
1,066 |
|
|
648 |
|
|
837 |
|
|
2,811 |
|
|
1,649 |
|
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Change in fair value of interest rate swaps |
140 |
|
|
(1,868 |
) |
|
(569 |
) |
|
(2,963 |
) |
|
551 |
|
||||||
|
(5,423 |
) |
|
(9,155 |
) |
|
(8,077 |
) |
|
(28,228 |
) |
|
(49,936 |
) |
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Income (loss) before income taxes |
19,352 |
|
|
(93,432 |
) |
|
36,821 |
|
|
108,231 |
|
|
22,102 |
|
||||||
Income tax (provision) benefit |
(4,705 |
) |
|
21,186 |
|
|
(9,650 |
) |
|
(27,306 |
) |
|
(1,625 |
) |
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Net income (loss) |
$ |
14,647 |
|
|
$ |
(72,246 |
) |
|
$ |
27,171 |
|
|
$ |
80,925 |
|
|
$ |
20,477 |
|
|
|
|
|
|
|
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Weighted average common shares outstanding: |
|
|
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|
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|
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Basic |
39,093 |
|
|
38,968 |
|
|
39,087 |
|
|
39,039 |
|
|
38,932 |
|
||||||
Diluted |
39,418 |
|
|
38,968 |
|
|
39,292 |
|
|
39,242 |
|
|
39,387 |
|
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Net income (loss) per common share: |
|
|
|
|
|
|
|
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|
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Basic |
$ |
0.37 |
|
|
$ |
(1.85 |
) |
|
$ |
0.70 |
|
|
$ |
2.07 |
|
|
$ |
0.53 |
|
|
Diluted |
$ |
0.37 |
|
|
$ |
(1.85 |
) |
|
$ |
0.69 |
|
|
$ |
2.06 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
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Dividends declared per common share |
$ |
1.10 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
1.37 |
|
|
$ |
1.30 |
|
See accompanying summary notes to consolidated financial statements and segment information.
Wood Products Segment |
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Statements of Operations |
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(in thousands, except percentages) |
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Three Months Ended |
|
Year Ended |
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|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
|
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|
|
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|
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Segment sales |
$ |
296,286 |
|
|
$ |
307,124 |
|
|
$ |
325,102 |
|
|
$ |
1,275,167 |
|
|
$ |
1,533,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Costs and expenses |
|
|
|
|
|
|
|
|
|
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Materials, labor, and other operating expenses (excluding depreciation) |
261,611 |
|
|
282,795 |
|
|
283,354 |
|
|
1,117,540 |
|
|
1,328,012 |
|
||||||
Depreciation and amortization |
14,589 |
|
|
71,265 |
|
|
15,252 |
|
|
57,671 |
|
|
126,989 |
|
||||||
Selling and distribution expenses |
8,201 |
|
|
7,886 |
|
|
7,718 |
|
|
31,485 |
|
|
33,190 |
|
||||||
General and administrative expenses |
3,962 |
|
|
4,642 |
|
|
3,379 |
|
|
14,442 |
|
|
18,043 |
|
||||||
Loss on sale and curtailment of facilities |
— |
|
|
27,288 |
|
|
— |
|
|
— |
|
|
38,314 |
|
||||||
Other (income) expense, net |
(139 |
) |
|
(198 |
) |
|
(198 |
) |
|
(168 |
) |
|
(1,256 |
) |
||||||
|
288,224 |
|
|
393,678 |
|
|
309,505 |
|
|
1,220,970 |
|
|
1,543,292 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment income (loss) |
$ |
8,062 |
|
|
$ |
(86,554 |
) |
|
$ |
15,597 |
|
|
$ |
54,197 |
|
|
$ |
(10,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
(percentage of sales) |
|||||||||||||||||||
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|
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|
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|
|||||||||||
Segment sales |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Costs and expenses |
|
|
|
|
|
|
|
|
|
|||||||||||
Materials, labor, and other operating expenses (excluding depreciation) |
88.3 |
% |
|
92.1 |
% |
|
87.2 |
% |
|
87.6 |
% |
|
86.6 |
% |
||||||
Depreciation and amortization |
4.9 |
% |
|
23.2 |
% |
|
4.7 |
% |
|
4.5 |
% |
|
8.3 |
% |
||||||
Selling and distribution expenses |
2.8 |
% |
|
2.6 |
% |
|
2.4 |
% |
|
2.5 |
% |
|
2.2 |
% |
||||||
General and administrative expenses |
1.3 |
% |
|
1.5 |
% |
|
1.0 |
% |
|
1.1 |
% |
|
1.2 |
% |
||||||
Loss on sale and curtailment of facilities |
— |
% |
|
8.9 |
% |
|
— |
% |
|
— |
% |
|
2.5 |
% |
||||||
Other (income) expense, net |
— |
% |
|
(0.1 |
%) |
|
(0.1 |
)% |
|
— |
% |
|
(0.1 |
%) |
||||||
|
97.3 |
% |
|
128.2 |
% |
|
95.2 |
% |
|
95.7 |
% |
|
100.7 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment income (loss) |
2.7 |
% |
|
(28.2 |
%) |
|
4.8 |
% |
|
4.3 |
% |
|
(0.7 |
)% |
Building Materials Distribution Segment |
||||||||||||||||||||
Statements of Operations |
||||||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment sales |
$ |
986,969 |
|
|
$ |
922,234 |
|
|
$ |
1,145,621 |
|
|
$ |
4,137,719 |
|
|
$ |
4,287,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Costs and expenses |
|
|
|
|
|
|
|
|
|
|||||||||||
Materials, labor, and other operating expenses (excluding depreciation) |
859,102 |
|
|
821,703 |
|
|
996,313 |
|
|
3,617,477 |
|
|
3,804,496 |
|
||||||
Depreciation and amortization |
5,331 |
|
|
4,906 |
|
|
5,278 |
|
|
20,769 |
|
|
18,280 |
|
||||||
Selling and distribution expenses |
90,027 |
|
|
81,596 |
|
|
98,797 |
|
|
359,039 |
|
|
329,691 |
|
||||||
General and administrative expenses |
6,365 |
|
|
5,164 |
|
|
6,759 |
|
|
24,785 |
|
|
22,909 |
|
||||||
Other (income) expense, net |
(110 |
) |
|
(40 |
) |
|
(191 |
) |
|
(587 |
) |
|
(184 |
) |
||||||
|
960,715 |
|
|
913,329 |
|
|
1,106,956 |
|
|
4,021,483 |
|
|
4,175,192 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment income |
$ |
26,254 |
|
|
$ |
8,905 |
|
|
$ |
38,665 |
|
|
$ |
116,236 |
|
|
$ |
112,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
(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) |
87.0 |
% |
|
89.1 |
% |
|
87.0 |
% |
|
87.4 |
% |
|
88.7 |
% |
||||||
Depreciation and amortization |
0.5 |
% |
|
0.5 |
% |
|
0.5 |
% |
|
0.5 |
% |
|
0.4 |
% |
||||||
Selling and distribution expenses |
9.1 |
% |
|
8.8 |
% |
|
8.6 |
% |
|
8.7 |
% |
|
7.7 |
% |
||||||
General and administrative expenses |
0.6 |
% |
|
0.6 |
% |
|
0.6 |
% |
|
0.6 |
% |
|
0.5 |
% |
||||||
Other (income) expense, net |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
||||||
|
97.3 |
% |
|
99.0 |
% |
|
96.6 |
% |
|
97.2 |
% |
|
97.4 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment income |
2.7 |
% |
|
1.0 |
% |
|
3.4 |
% |
|
2.8 |
% |
|
2.6 |
% |
Segment Information |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
Segment sales |
|
|
|
|
|
|
|
|
|
|||||||||||
Wood Products |
$ |
296,286 |
|
|
$ |
307,124 |
|
|
$ |
325,102 |
|
|
$ |
1,275,167 |
|
|
$ |
1,533,270 |
|
|
Building Materials Distribution |
986,969 |
|
|
922,234 |
|
|
1,145,621 |
|
|
4,137,719 |
|
|
4,287,702 |
|
||||||
Intersegment eliminations and other |
(181,542 |
) |
|
(163,553 |
) |
|
(201,199 |
) |
|
(769,482 |
) |
|
(825,682 |
) |
||||||
Total net sales |
$ |
1,101,713 |
|
|
$ |
1,065,805 |
|
|
$ |
1,269,524 |
|
|
$ |
4,643,404 |
|
|
$ |
4,995,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment income (loss) |
|
|
|
|
|
|
|
|
|
|||||||||||
Wood Products |
$ |
8,062 |
|
|
$ |
(86,554 |
) |
|
$ |
15,597 |
|
|
$ |
54,197 |
|
|
$ |
(10,022 |
) |
|
Building Materials Distribution |
26,254 |
|
|
8,905 |
|
|
38,665 |
|
|
116,236 |
|
|
112,510 |
|
||||||
Total segment income (loss) |
34,316 |
|
|
(77,649 |
) |
|
54,262 |
|
|
170,433 |
|
|
102,488 |
|
||||||
Unallocated corporate |
(9,541 |
) |
|
(6,628 |
) |
|
(9,364 |
) |
|
(33,974 |
) |
|
(30,450 |
) |
||||||
Income (loss) from operations |
$ |
24,775 |
|
|
$ |
(84,277 |
) |
|
$ |
44,898 |
|
|
$ |
136,459 |
|
|
$ |
72,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment EBITDA (a) |
|
|
|
|
|
|
|
|
|
|||||||||||
Wood Products |
$ |
22,651 |
|
|
$ |
(15,289 |
) |
|
$ |
30,849 |
|
|
$ |
111,868 |
|
|
$ |
116,967 |
|
|
Building Materials Distribution |
31,585 |
|
|
13,811 |
|
|
43,943 |
|
|
137,005 |
|
|
130,790 |
|
See accompanying summary notes to consolidated financial statements and segment information.
|
||||||||
Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
|
|
|
|
|||||
|
|
|||||||
ASSETS |
|
|
|
|||||
|
|
|
|
|||||
Current |
|
|
|
|||||
Cash and cash equivalents |
$ |
285,237 |
|
|
$ |
191,671 |
|
|
Receivables |
|
|
|
|||||
Trade, less allowances of |
215,894 |
|
|
214,338 |
|
|||
Related parties |
568 |
|
|
436 |
|
|||
Other |
15,184 |
|
|
14,466 |
|
|||
Inventories |
497,596 |
|
|
533,049 |
|
|||
Prepaid expenses and other |
8,285 |
|
|
31,818 |
|
|||
Total current assets |
1,022,764 |
|
|
985,778 |
|
|||
|
|
|
|
|||||
Property and equipment, net |
476,949 |
|
|
487,224 |
|
|||
Operating lease right-of-use assets |
64,228 |
|
|
— |
|
|||
Finance lease right-of-use assets |
21,798 |
|
|
— |
|
|||
Timber deposits |
12,287 |
|
|
12,568 |
|
|||
|
60,382 |
|
|
59,159 |
|
|||
Intangible assets, net |
17,797 |
|
|
16,851 |
|
|||
Deferred income taxes |
7,952 |
|
|
8,211 |
|
|||
Other assets |
9,194 |
|
|
11,457 |
|
|||
Total assets |
$ |
1,693,351 |
|
|
$ |
1,581,248 |
|
|
||||||||
Consolidated Balance Sheets (continued) |
||||||||
(in thousands, except per-share data) |
||||||||
|
|
|
|
|||||
|
|
|||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||||
|
|
|
|
|||||
Current |
|
|
|
|||||
Accounts payable |
|
|
|
|||||
Trade |
$ |
222,930 |
|
|
$ |
210,587 |
|
|
Related parties |
1,624 |
|
|
1,070 |
|
|||
Accrued liabilities |
|
|
|
|||||
Compensation and benefits |
83,943 |
|
|
87,911 |
|
|||
Interest payable |
6,723 |
|
|
6,748 |
|
|||
Other |
69,772 |
|
|
63,509 |
|
|||
Total current liabilities |
384,992 |
|
|
369,825 |
|
|||
|
|
|
|
|||||
Debt |
|
|
|
|||||
Long-term debt |
440,544 |
|
|
439,428 |
|
|||
|
|
|
|
|||||
Other |
|
|
|
|||||
Compensation and benefits |
45,586 |
|
|
41,283 |
|
|||
Operating lease liabilities, net of current portion |
58,029 |
|
|
— |
|
|||
Finance lease liabilities, net of current portion |
23,419 |
|
|
— |
|
|||
Deferred income taxes |
26,694 |
|
|
19,218 |
|
|||
Other long-term liabilities |
12,757 |
|
|
38,904 |
|
|||
|
166,485 |
|
|
99,405 |
|
|||
|
|
|
|
|||||
Commitments and contingent liabilities |
|
|
|
|||||
|
|
|
|
|||||
Stockholders' equity |
|
|
|
|||||
Preferred stock, |
— |
|
|
— |
|
|||
Common stock, |
444 |
|
|
441 |
|
|||
|
(138,909 |
) |
|
(138,909 |
) |
|||
Additional paid-in capital |
533,345 |
|
|
528,654 |
|
|||
Accumulated other comprehensive loss |
(50,248 |
) |
|
(47,652 |
) |
|||
Retained earnings |
356,698 |
|
|
330,056 |
|
|||
Total stockholders' equity |
701,330 |
|
|
672,590 |
|
|||
Total liabilities and stockholders' equity |
$ |
1,693,351 |
|
|
$ |
1,581,248 |
|
|
||||||||
Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
|
Year Ended |
|||||||
|
2019 |
|
2018 |
|||||
Cash provided by (used for) operations |
|
|
|
|||||
Net income |
$ |
80,925 |
|
|
$ |
20,477 |
|
|
Items in net income not using (providing) cash |
|
|
|
|||||
Depreciation and amortization, including deferred financing costs and other |
82,377 |
|
|
148,937 |
|
|||
Stock-based compensation |
7,973 |
|
|
8,831 |
|
|||
Pension expense |
3,121 |
|
|
25,793 |
|
|||
Deferred income taxes |
9,025 |
|
|
(7,965 |
) |
|||
Change in fair value of interest rate swaps |
2,963 |
|
|
(551 |
) |
|||
Loss on sale and curtailment of facilities (excluding severance) |
— |
|
|
37,331 |
|
|||
Other |
(353 |
) |
|
(1,688 |
) |
|||
Decrease (increase) in working capital, net of acquisitions |
|
|
|
|||||
Receivables |
2,160 |
|
|
37,561 |
|
|||
Inventories |
40,176 |
|
|
(64,190 |
) |
|||
Prepaid expenses and other |
(132 |
) |
|
(500 |
) |
|||
Accounts payable and accrued liabilities |
5,212 |
|
|
(14,531 |
) |
|||
Pension contributions |
(5,238 |
) |
|
(26,081 |
) |
|||
Income taxes payable |
19,387 |
|
|
(4,186 |
) |
|||
Other |
(1,949 |
) |
|
4,373 |
|
|||
Net cash provided by operations |
245,647 |
|
|
163,611 |
|
|||
|
|
|
|
|||||
Cash provided by (used for) investment |
|
|
|
|||||
Expenditures for property and equipment |
(82,720 |
) |
|
(79,987 |
) |
|||
Acquisitions of businesses and facilities |
(15,676 |
) |
|
(25,482 |
) |
|||
Proceeds from sales of facilities |
2,493 |
|
|
15,003 |
|
|||
Proceeds from sales of assets and other |
1,838 |
|
|
1,209 |
|
|||
Net cash used for investment |
(94,065 |
) |
|
(89,257 |
) |
|||
|
|
|
|
|||||
Cash provided by (used for) financing |
|
|
|
|||||
Borrowings of long-term debt, including revolving credit facility |
5,500 |
|
|
7,500 |
|
|||
Payments of long-term debt, including revolving credit facility |
(5,500 |
) |
|
(7,500 |
) |
|||
|
— |
|
|
(4,930 |
) |
|||
Dividends paid on common stock |
(53,954 |
) |
|
(50,615 |
) |
|||
Tax withholding payments on stock-based awards |
(3,574 |
) |
|
(5,135 |
) |
|||
Other |
(488 |
) |
|
857 |
|
|||
Net cash used for financing |
(58,016 |
) |
|
(59,823 |
) |
|||
|
|
|
|
|||||
Net increase in cash and cash equivalents |
93,566 |
|
|
14,531 |
|
|||
|
|
|
|
|||||
Balance at beginning of the period |
191,671 |
|
|
177,140 |
|
|||
|
|
|
|
|||||
Balance at end of the period |
$ |
285,237 |
|
|
$ |
191,671 |
|
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 presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2019 Form 10-K and the Company's other filings with the
(a) EBITDA represents income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA for the three months ended |
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
|
(in thousands) |
|||||||||||||||||||
Net income (loss) |
$ |
14,647 |
|
|
$ |
(72,246 |
) |
|
$ |
27,171 |
|
|
$ |
80,925 |
|
|
$ |
20,477 |
|
|
Interest expense |
6,596 |
|
|
6,666 |
|
|
6,532 |
|
|
26,051 |
|
|
26,193 |
|
||||||
Interest income |
(1,066 |
) |
|
(648 |
) |
|
(837 |
) |
|
(2,811 |
) |
|
(1,649 |
) |
||||||
Income tax provision (benefit) |
4,705 |
|
|
(21,186 |
) |
|
9,650 |
|
|
27,306 |
|
|
1,625 |
|
||||||
Depreciation and amortization |
20,501 |
|
|
76,549 |
|
|
20,969 |
|
|
80,141 |
|
|
146,837 |
|
||||||
EBITDA |
45,383 |
|
|
(10,865 |
) |
|
63,485 |
|
|
211,612 |
|
|
193,483 |
|
||||||
Change in fair value of interest rate swaps |
(140 |
) |
|
1,868 |
|
|
569 |
|
|
2,963 |
|
|
(551 |
) |
||||||
Adjusted EBITDA |
$ |
45,243 |
|
|
$ |
(8,997 |
) |
|
$ |
64,054 |
|
|
$ |
214,575 |
|
|
$ |
192,932 |
|
The following table reconciles segment income (loss) and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
|
(in thousands) |
|||||||||||||||||||
Wood Products |
|
|
|
|
|
|
|
|
|
|||||||||||
Segment income (loss) |
$ |
8,062 |
|
|
$ |
(86,554 |
) |
|
$ |
15,597 |
|
|
$ |
54,197 |
|
|
$ |
(10,022 |
) |
|
Depreciation and amortization |
14,589 |
|
|
71,265 |
|
|
15,252 |
|
|
57,671 |
|
|
126,989 |
|
||||||
EBITDA |
$ |
22,651 |
|
|
$ |
(15,289 |
) |
|
$ |
30,849 |
|
|
$ |
111,868 |
|
|
$ |
116,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Building Materials Distribution |
|
|
|
|
|
|
|
|
|
|||||||||||
Segment income |
$ |
26,254 |
|
|
$ |
8,905 |
|
|
$ |
38,665 |
|
|
$ |
116,236 |
|
|
$ |
112,510 |
|
|
Depreciation and amortization |
5,331 |
|
|
4,906 |
|
|
5,278 |
|
|
20,769 |
|
|
18,280 |
|
||||||
EBITDA |
$ |
31,585 |
|
|
$ |
13,811 |
|
|
$ |
43,943 |
|
|
$ |
137,005 |
|
|
$ |
130,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Corporate |
|
|
|
|
|
|
|
|
|
|||||||||||
Unallocated corporate expenses |
$ |
(9,541 |
) |
|
$ |
(6,628 |
) |
|
$ |
(9,364 |
) |
|
$ |
(33,974 |
) |
|
$ |
(30,450 |
) |
|
Foreign currency exchange gain (loss) |
239 |
|
|
(672 |
) |
|
(200 |
) |
|
449 |
|
|
(944 |
) |
||||||
Pension expense (excluding service costs) |
(272 |
) |
|
(597 |
) |
|
(1,613 |
) |
|
(2,474 |
) |
|
(24,999 |
) |
||||||
Change in fair value of interest rate swaps |
140 |
|
|
(1,868 |
) |
|
(569 |
) |
|
(2,963 |
) |
|
551 |
|
||||||
Depreciation and amortization |
581 |
|
|
378 |
|
|
439 |
|
|
1,701 |
|
|
1,568 |
|
||||||
EBITDA |
(8,853 |
) |
|
(9,387 |
) |
|
(11,307 |
) |
|
(37,261 |
) |
|
(54,274 |
) |
||||||
Change in fair value of interest rate swaps |
(140 |
) |
|
1,868 |
|
|
569 |
|
|
2,963 |
|
|
(551 |
) |
||||||
Corporate adjusted EBITDA |
$ |
(8,993 |
) |
|
$ |
(7,519 |
) |
|
$ |
(10,738 |
) |
|
$ |
(34,298 |
) |
|
$ |
(54,825 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total company adjusted EBITDA |
$ |
45,243 |
|
|
$ |
(8,997 |
) |
|
$ |
64,054 |
|
|
$ |
214,575 |
|
|
$ |
192,932 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200224005832/en/
Investor Relations Contact
208 384 6073
Media Contact
208 384 6552
Source:
Investor Relations Contact
Wayne Rancourt
208 384 6073
Media Contact
Lisa Chapman
208 384 6552