Boise Cascade Company (NYSE:BCC) Q1 2024 Earnings Call Transcript May 7, 2024

Boise Cascade Company isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: 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 First Quarter 2024 Conference Call. Please note all participations and in a listen only mode. After the speakers presentation there will question-and-answer session. [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, Finance and Investor Relations, Boise Cascade. Mr. Fory, you may begin your conference.

Chris Forrey: 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 statements. Also, please note that the appendix includes reconciliations from our GAAP net income to EBITDA and adjusted EBITDA and segment income to segment EBITDA. I will now turn the call over to Nate.

Nate Jorgensen: Thanks, Chris. Good morning, everyone. Thank you for joining us for our earnings call today. I'm on Slide #3. Total U.S. housing starts only increased 1%. However, single-family starts increased 27% compared to the prior year quarter. Our consolidated first quarter sales of $1.6 billion were up 7% from first quarter of 2023. Our net income was $104.1 million or $2.61 per share compared to net income of $96.7 million or $2.43 per share in the year ago quarter. Both of our businesses delivered strong financial results during the quarter, which were influenced by seasonal factors and the relative strength of new single-family housing starts. In addition, our expanded capital spending program is progressing consistent with our expectations as we provided meaningful returns to our shareholders through share price gains, dividends and share repurchases.

I want to thank our associates across the company who continue to execute our strategies that position us to serve and support each of our stakeholders. Kelly will now walk through our segment financial results and provide an update on capital allocation in more detail after which I'll provide our outlook before we take your questions. Kelly?

Kelly Hibbs: Thank you, Nate, and good morning, everyone. Wood Products sales in the first quarter, including sales to our distribution segment were $468.9 million compared to $437.4 million in first quarter 2023. Wood Products reported segment EBITDA of $95.6 million, up from EBITDA of $93.2 million reported in the year ago quarter. The increase in segment EBITDA was due primarily to higher EWP sales volumes and higher plywood sales prices. These increases were offset partially by lower EWP prices and higher wood fiber costs. BMD sales in the quarter were $1.5 billion, up 9% from first quarter 2023. BMD reported segment EBITDA of $83.6 million in the first quarter compared to segment EBITDA of $76.8 million in the prior year quarter.

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