For Immediate Release: July 22, 2013
BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported net income of $10.4 million in the second quarter, or $0.24 per share, on 43.2 million weighted average shares outstanding.
Second Quarter 2013 Highlights
- Second quarter sales of $852.3 million were 16% above the same quarter in 2012. Wood Products second quarter segment sales, including sales to the Company's Building Materials Distribution (BMD) segment, were $280.4 million, an increase of 16% from the year ago quarter. BMD segment sales were $681.5 million, an increase of 17% from the year ago quarter.
- The Company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $30.7 million, up 9% from the $28.2 million reported in second quarter 2012.
- Wood Products reported second quarter 2013 segment EBITDA of $29.6 million, up 36% from the $21.7 million reported in second quarter 2012.
- BMD reported segment EBITDA of $5.5 million, down from the $10.9 million reported in second quarter 2012.
- Subsequent to quarter end, we entered into an agreement to acquire two plywood plants for $102.0 million in cash.
Total and single-family U.S. housing starts improved approximately 17% and 14%, respectively, from the same period last year. The July 2013 Blue Chip consensus forecast for 2013 reflects 990,000 total U.S. housing starts, a 27% increase from 2012 levels. Total housing start levels remain below the historical average for the last 20 years of approximately 1.4 million units per year.
"Commodity pricing for structural panels and lumber was stronger than the prior year quarter, contributing to improved operating performance in our Wood Products segment. However, gross margins in our Building Materials Distribution segment were negatively impacted by a steady downward trajectory in commodity prices during the second quarter of 2013," commented Tom Carlile, CEO. "In addition, we are pleased with our previously announced agreement to acquire two plywood plants in North and South Carolina. These facilities will complement our existing plywood and engineered wood manufacturing businesses and enable us to better serve our customers in the eastern and southeastern United States."
| 2Q 2013 | 2Q 2012 | 1Q 2013 | ||||||||||
| (thousands) | ||||||||||||
| Total sales | $ | 852,295 | $ | 732,900 | $ | 744,878 | ||||||
| Net income | 10,412 | 15,047 | 80,836 | |||||||||
| Adjusted net income1 | 10,412 | 15,047 | 12,170 | |||||||||
| Wood Products segment sales | 280,417 | 241,842 | 269,216 | |||||||||
| Wood Products segment EBITDA1 | 29,562 | 21,661 | 27,061 | |||||||||
| BMD segment sales | 681,486 | 580,545 | 581,129 | |||||||||
| BMD segment EBITDA1 | 5,493 | 10,893 | 10,175 | |||||||||
1Reconciliations between our results reported in accordance with U.S. generally accepted accounting principles (GAAP) and adjusted net income and EBITDA are included in the summary notes at the end of this press release.
Wood Products Segment
Wood Products segment sales in the second quarter were $280.4 million, up 16% from the same quarter a year ago. The sales increase was attributable primarily to 13% higher plywood sales prices, 18% higher laminated veneer lumber (LVL) sales volumes, and 14% higher I-joist sales volumes. Higher EWP and lumber sales prices, as well as plywood and lumber sales volumes also contributed to segment sales growth. The segment reported EBITDA of $29.6 million for the quarter, compared with $21.7 million reported in second quarter 2012. The main factors contributing to the stronger financial performance were improved plywood, EWP, and lumber pricing. These improvements were offset partially by higher wood fiber costs.
Building Materials Distribution Segment
BMD segment sales were $681.5 million in the second quarter, up 17% from the same quarter a year ago. Price changes accounted for approximately 12% of the sales gain, with shipment volumes up approximately 5%. The largest sales gains were in commodity product and engineered wood product categories, with lower sales growth in general line products. BMD reported quarterly EBITDA of $5.5 million compared to $10.9 million in second quarter 2012. Second quarter 2013 gross margins at 9.1% were down 2.7 percentage points from the 11.8% reported in second quarter 2012. This decrease in gross margins, which includes lower of cost or market inventory write-downs, was primarily driven by a steady decline in commodity panel and lumber prices throughout second quarter 2013 with declines of more than 25% since early April 2013. The decline in gross margins was offset partially by positive sales growth leverage on selling and distribution expenses, as well as on general and administrative expenses.
Balance Sheet
Boise Cascade ended second quarter 2013 with $232.7 million of cash and cash equivalents and $290.7 million of undrawn committed bank line availability, for total available liquidity of $523.4 million. At June 30, 2013, Boise Cascade reported outstanding debt of $250.0 million.
Outlook
We expect to continue to experience demand below 20-year average historical levels for the products we manufacture and distribute for the balance of 2013. However, the housing industry has shown signs of improvement in the U.S. and we remain optimistic that the recent improvement in demand for our products will continue. Commodity product pricing began to rise again in July 2013; however, future pricing could be volatile in response to industry operating rates and inventory levels in various distribution channels. We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity until demand improves further.
About Boise Cascade
Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit our website at www.bc.com.
Webcast and Conference Call
Boise Cascade will host a webcast and conference call on Tuesday, July 23, at 8 a.m. Eastern, at which time we will review the company's recent performance. You can join the webcast through our website by going to www.bc.com and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15 minutes before the start of the webcast to register. To join the conference call, dial 866-515-2910 (international callers should dial 617-399-5124), participant passcode 65130670, at least 10 minutes before the start of the call.
The archived webcast will be available in the Investor Relations section of our website. A replay of the conference call will be available from Tuesday, July 23, at 12 p.m. Eastern through Tuesday, July 30, at 11 p.m. Eastern. Playback numbers are 888-286-8010 for U.S. calls and 617-801-6888 for international calls, and the passcode will be 50755646.
Basis of Presentation
We present our consolidated financial statements in accordance with GAAP. Our earnings release also supplements the GAAP presentations by reflecting EBITDA, a non-GAAP financial measure. EBITDA is defined as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is 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. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA, however, is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income (loss) or segment income (loss) has limitations as an analytical tool, 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 the limitations of EBITDA by relying on our GAAP results. Our measure of EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
Forward-Looking Statements
This news release contains statements that are "forward looking" within the Private Securities Litigation Reform Act of 1995. These statements speak only as of the date of this press release. While they are based on the current expectations and beliefs of management, they are subject to a number of uncertainties and assumptions that could cause actual results to differ from the expectations expressed in this release.
Boise Cascade Company
Consolidated Statements of Operations
(unaudited, in thousands, except per-share data)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2013 | June 30 | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| Sales | $ | 852,295 | $ | 732,900 | $ | 744,878 | $ | 1,597,173 | $ | 1,319,886 | |||||||||
| Costs and expenses | |||||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 750,996 | 632,607 | 644,847 | 1,395,843 | 1,142,731 | ||||||||||||||
| Depreciation and amortization | 8,766 | 8,338 | 8,477 | 17,243 | 16,457 | ||||||||||||||
| Selling and distribution expenses | 60,102 | 60,468 | 57,004 | 117,106 | 114,282 | ||||||||||||||
| General and administrative expenses | 10,251 | 10,689 | 10,046 | 20,297 | 19,737 | ||||||||||||||
| Other (income) expense, net | (39 | ) | 653 | (134 | ) | (173 | ) | 285 | |||||||||||
| 830,076 | 712,755 | 720,240 | 1,550,316 | 1,293,492 | |||||||||||||||
| Income from operations | 22,219 | 20,145 | 24,638 | 46,857 | 26,394 | ||||||||||||||
| Foreign exchange loss | (291 | ) | (289 | ) | (80 | ) | (371 | ) | (103 | ) | |||||||||
| Interest expense | (4,781 | ) | (4,818 | ) | (4,891 | ) | (9,672 | ) | (9,631 | ) | |||||||||
| Interest income | 62 | 87 | 62 | 124 | 194 | ||||||||||||||
| (5,010 | ) | (5,020 | ) | (4,909 | ) | (9,919 | ) | (9,540 | ) | ||||||||||
| Income before income taxes | 17,209 | 15,125 | 19,729 | 36,938 | 16,854 | ||||||||||||||
| Income tax (provision) benefit (a) | (6,797 | ) | (78 | ) | 61,107 | 54,310 | (139 | ) | |||||||||||
| Net income | $ | 10,412 | $ | 15,047 | $ | 80,836 | $ | 91,248 | $ | 16,715 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 43,229 | 29,700 | 37,569 | 40,415 | 29,700 | ||||||||||||||
| Diluted | 43,233 | 29,700 | 37,569 | 40,417 | 29,700 | ||||||||||||||
| Net income per common share: | |||||||||||||||||||
| Basic | $ | 0.24 | $ | 0.51 | $ | 2.15 | $ | 2.26 | $ | 0.56 | |||||||||
| Diluted | $ | 0.24 | $ | 0.51 | $ | 2.15 | $ | 2.26 | $ | 0.56 | |||||||||
See accompanying summary notes to consolidated financial statements and segment information.
Wood Products Segment
Statements of Operations
(unaudited, in thousands, except percentages)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2013 | June 30 | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| Segment sales | $ | 280,417 | $ | 241,842 | $ | 269,216 | $ | 549,633 | $ | 452,985 | |||||||||
| Costs and expenses | |||||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 241,745 | 210,404 | 233,384 | 475,129 | 396,800 | ||||||||||||||
| Depreciation and amortization | 6,517 | 6,113 | 6,253 | 12,770 | 12,018 | ||||||||||||||
| Selling and distribution expenses | 6,709 | 7,007 | 6,693 | 13,402 | 13,476 | ||||||||||||||
| General and administrative expenses | 2,408 | 2,112 | 2,131 | 4,539 | 4,020 | ||||||||||||||
| Other (income) expense, net | (7 | ) | 658 | (53 | ) | (60 | ) | 312 | |||||||||||
| 257,372 | 226,294 | 248,408 | 505,780 | 426,626 | |||||||||||||||
| Segment income | $ | 23,045 | $ | 15,548 | $ | 20,808 | $ | 43,853 | $ | 26,359 | |||||||||
| (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) | 86.2 | % | 87.0 % | 86.7 | % | 86.4 | % | 87.6 % | |||||||||||
| Depreciation and amortization | 2.3 | % | 2.5 % | 2.3 | % | 2.3 | % | 2.7 % | |||||||||||
| Selling and distribution expenses | 2.4 | % | 2.9 % | 2.5 | % | 2.4 | % | 3.0 % | |||||||||||
| General and administrative expenses | 0.9 | % | 0.9 % | 0.8 | % | 0.8 | % | 0.9 % | |||||||||||
| Other (income) expense, net | - | % | 0.3 % | - | % | - | % | 0.1 % | |||||||||||
| 91.8 | % | 93.6 % | 92.3 | % | 92.0 | % | 94.2 % | ||||||||||||
| Segment income | 8.2 | % | 6.4 % | 7.7 | % | 8.0 | % | 5.8 | % | ||||||||||
Building Materials Distribution Segment
Statements of Operations
(unaudited, in thousands, except percentages)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2013 | June 30 | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| Segment sales | $ | 681,486 | $ | 580,545 | $ | 581,129 | $ | 1,262,615 | $ | 1,031,961 | |||||||||
| Costs and expenses | |||||||||||||||||||
| Materials, labor, and other operating expenses (excluding depreciation) | 619,174 | 511,913 | 517,002 | 1,136,176 | 911,359 | ||||||||||||||
| Depreciation and amortization | 2,217 | 2,194 | 2,178 | 4,395 | 4,376 | ||||||||||||||
| Selling and distribution expenses | 53,393 | 53,461 | 50,311 | 103,704 | 100,806 | ||||||||||||||
| General and administrative expenses | 3,480 | 4,313 | 3,742 | 7,222 | 7,645 | ||||||||||||||
| Other (income) expense, net | (54 | ) | (35 | ) | (101 | ) | (155 | ) | (105 | ) | |||||||||
| 678,210 | 571,846 | 573,132 | 1,251,342 | 1,024,081 | |||||||||||||||
| Segment income | $ | 3,276 | $ | 8,699 | $ | 7,997 | $ | 11,273 | $ | 7,880 | |||||||||
| (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) | 90.9 | % | 88.2 | % | 89.0 | % | 90.0 | % | 88.3 | % | |||||||||
| Depreciation and amortization | 0.3 | % | 0.4 | % | 0.4 | % | 0.3 | % | 0.4 | % | |||||||||
| Selling and distribution expenses | 7.8 | % | 9.2 | % | 8.7 | % | 8.2 | % | 9.8 | % | |||||||||
| General and administrative expenses | 0.5 | % | 0.7 | % | 0.6 | % | 0.6 | % | 0.7 | % | |||||||||
| Other (income) expense, net | - | % | - | % | - | % | - | % | - | % | |||||||||
| 99.5 | % | 98.5 | % | 98.6 | % | 99.1 | % | 99.2 | % | ||||||||||
| Segment income | 0.5 | % | 1.5 | % | 1.4 | % | 0.9 | % | 0.8 | % | |||||||||
Segment Information
(unaudited, in thousands)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2013 | June 30 | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| Segment sales | |||||||||||||||||||
| Wood Products | $ | 280,417 | $ | 241,842 | $ | 269,216 | $ | 549,633 | $ | 452,985 | |||||||||
| Building Materials Distribution | 681,486 | 580,545 | 581,129 | 1,262,615 | 1,031,961 | ||||||||||||||
| Intersegment eliminations | (109,608 | ) | (89,487 | ) | (105,467 | ) | (215,075 | ) | (165,060 | ) | |||||||||
| $ | 852,295 | $ | 732,900 | $ | 744,878 | $ | 1,597,173 | $ | 1,319,886 | ||||||||||
| Segment income | |||||||||||||||||||
| Wood Products | $ | 23,045 | $ | 15,548 | $ | 20,808 | $ | 43,853 | $ | 26,359 | |||||||||
| Building Materials Distribution | 3,276 | 8,699 | 7,997 | 11,273 | 7,880 | ||||||||||||||
| Corporate and Other | (4,393 | ) | (4,391 | ) | (4,247 | ) | (8,640 | ) | (7,948 | ) | |||||||||
| 21,928 | 19,856 | 24,558 | 46,486 | 26,291 | |||||||||||||||
| Interest expense | (4,781 | ) | (4,818 | ) | (4,891 | ) | (9,672 | ) | (9,631 | ) | |||||||||
| Interest income | 62 | 87 | 62 | 124 | 194 | ||||||||||||||
| Income before income taxes | $ | 17,209 | $ | 15,125 | $ | 19,729 | $ | 36,938 | $ | 16,854 | |||||||||
| EBITDA (b) | |||||||||||||||||||
| Wood Products | $ | 29,562 | $ | 21,661 | $ | 27,061 | $ | 56,623 | $ | 38,377 | |||||||||
| Building Materials Distribution | 5,493 | 10,893 | 10,175 | 15,668 | 12,256 | ||||||||||||||
| Corporate and Other | (4,361 | ) | (4,360 | ) | (4,201 | ) | (8,562 | ) | (7,885 | ) | |||||||||
| $ | 30,694 | $ | 28,194 | $ | 33,035 | $ | 63,729 | $ | 42,748 | ||||||||||
See accompanying summary notes to consolidated financial statements and segment information.
Boise Cascade Company
Consolidated Balance Sheets
(unaudited, in thousands)
| June 30, 2013 | December 31, 2012 | |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | $ | 232,667 | $ | 54,507 | ||||
| Receivables | ||||||||
| Trade, less allowances of $2,546 and $2,696 | 205,722 | 134,743 | ||||||
| Related parties | 434 | 674 | ||||||
| Other | 6,612 | 6,204 | ||||||
| Inventories | 368,350 | 325,806 | ||||||
| Deferred income taxes | 19,749 | 2 | ||||||
| Prepaid expenses and other | 11,851 | 5,521 | ||||||
| Total current assets | 845,385 | 527,457 | ||||||
| Property and equipment, net | 261,309 | 265,924 | ||||||
| Timber deposits | 7,267 | 6,221 | ||||||
| Deferred financing costs | 7,279 | 7,562 | ||||||
| Goodwill | 12,170 | 12,170 | ||||||
| Intangible assets | 8,900 | 8,900 | ||||||
| Deferred income taxes | 44,819 | - | ||||||
| Other assets | 7,486 | 8,164 | ||||||
| Total assets | $ | 1,194,615 | $ | 836,398 | ||||
Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except per-share data)
| June 30, 2013 | December 31, 2012 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current | ||||||||
| Accounts payable | ||||||||
| Trade | $ | 195,206 | $ | 140,192 | ||||
| Related parties | 1,957 | 1,950 | ||||||
| Accrued liabilities | ||||||||
| Compensation and benefits | 42,039 | 61,814 | ||||||
| Interest payable | 2,745 | 3,188 | ||||||
| Other | 30,875 | 29,043 | ||||||
| 272,822 | 236,187 | |||||||
| Debt | ||||||||
| Long-term debt | 250,000 | 275,000 | ||||||
| Other | ||||||||
| Compensation and benefits | 195,384 | 206,668 | ||||||
| Other long-term liabilities | 14,447 | 14,336 | ||||||
| 209,831 | 221,004 | |||||||
| Redeemable equity | - | 6,443 | ||||||
| Commitments and contingent liabilities | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding | - | - | ||||||
| Common stock, $0.01 par value per share; 300,000 shares authorized, 43,229 and 29,700 shares issued and outstanding | 432 | 297 | ||||||
| Additional paid-in capital | 494,908 | 256,927 | ||||||
| Accumulated other comprehensive loss | (118,395 | ) | (121,229 | ) | ||||
| Retained earnings (accumulated deficit) | 85,017 | (38,231 | ) | |||||
| Total stockholders' equity | 461,962 | 97,764 | ||||||
| Total liabilities and stockholders' equity | $ | 1,194,615 | $ | 836,398 | ||||
Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited, in thousands)
| Six Months Ended | ||||||||
| June 30 | ||||||||
| 2013 | 2012 | |||||||
| Cash provided by (used for) operations | ||||||||
| Net income | $ | 91,248 | $ | 16,715 | ||||
| Items in net income not using (providing) cash | ||||||||
| Depreciation and amortization, including deferred financing costs and other | 18,131 | 17,664 | ||||||
| Stock-based compensation | 1,073 | - | ||||||
| Pension expense | 5,434 | 6,394 | ||||||
| Deferred income taxes | (66,314 | ) | - | |||||
| Other | (277 | ) | (469 | ) | ||||
| Decrease (increase) in working capital, net of acquisitions | ||||||||
| Receivables | (71,487 | ) | (59,482 | ) | ||||
| Inventories | (42,544 | ) | (35,154 | ) | ||||
| Prepaid expenses and other | (2,523 | ) | (2,251 | ) | ||||
| Accounts payable and accrued liabilities | 36,833 | 68,235 | ||||||
| Pension contributions | (9,970 | ) | (7,874 | ) | ||||
| Income taxes payable | (881 | ) | (29 | ) | ||||
| Other | (4,546 | ) | 1,034 | |||||
| Net cash provided by (used for) operations | (45,823 | ) | 4,783 | |||||
| Cash provided by (used for) investment | ||||||||
| Expenditures for property and equipment | (14,042 | ) | (10,952 | ) | ||||
| Acquisitions of businesses and facilities | - | (2,355 | ) | |||||
| Proceeds from sales of assets | 546 | 145 | ||||||
| Other | 10 | (1 | ) | |||||
| Net cash used for investment | (13,486 | ) | (13,163 | ) | ||||
| Cash provided by (used for) financing | ||||||||
| Net proceeds from issuance of common stock | 262,599 | - | ||||||
| Issuances of long-term debt | 55,000 | - | ||||||
| Payments of long-term debt | (80,000 | ) | - | |||||
| Financing costs | (321 | ) | - | |||||
| Other | 191 | - | ||||||
| Net cash provided by financing | 237,469 | - | ||||||
| Net increase (decrease) in cash and cash equivalents | 178,160 | (8,380 | ) | |||||
| Balance at beginning of the period | 54,507 | 182,455 | ||||||
| Balance at end of the period | $ | 232,667 | $ | 174,075 | ||||
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 do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the company's 2012 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.
a. First quarter 2013 includes $68.7 million of income tax benefit associated with recording net deferred tax assets upon our conversion from a limited liability company to a corporation. The following table reconciles net income to adjusted net income for the three months ended June 30, 2013 and 2012, and March 31, 2013, and the six months ended June 30, 2013 and 2012:
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30 | March 31, 2013 | June 30 | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
| (unaudited, in thousands, except per-share amounts) | ||||||||||||||||||||
| Net income (GAAP basis) | $ | 10,412 | $ | 15,047 | $ | 80,836 | $ | 91,248 | $ | 16,715 | ||||||||||
| Impact of deferred tax benefit | - | - | (68,666 | ) | (68,666 | ) | - | |||||||||||||
| Adjusted net income (non-GAAP basis) | $ | 10,412 | $ | 15,047 | $ | 12,170 | $ | 22,582 | $ | 16,715 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 43,229 | 29,700 | 37,569 | 40,415 | 29,700 | |||||||||||||||
| Diluted | 43,233 | 29,700 | 37,569 | 40,417 | 29,700 | |||||||||||||||
| Adjusted net income (non-GAAP basis), per share: | ||||||||||||||||||||
| Basic | $ | 0.24 | $ | 0.51 | $ | 0.32 | $ | 0.56 | $ | 0.56 | ||||||||||
| Diluted | $ | 0.24 | $ | 0.51 | $ | 0.32 | $ | 0.56 | $ | 0.56 | ||||||||||
b. EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. The following table reconciles net income to EBITDA for the three months ended June 30, 2013 and 2012, and March 31, 2013, and the six months ended June 30, 2013 and 2012:
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30 | March 31, 2013 | June 30 | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||
| Net income | $ | 10,412 | $ | 15,047 | $ | 80,836 | $ | 91,248 | $ | 16,715 | |||||||||
| Interest expense | 4,781 | 4,818 | 4,891 | 9,672 | 9,631 | ||||||||||||||
| Interest income | (62 | ) | (87 | ) | (62 | ) | (124 | ) | (194 | ) | |||||||||
| Income tax provision (benefit) | 6,797 | 78 | (61,107 | ) | (54,310 | ) | 139 | ||||||||||||
| Depreciation and amortization | 8,766 | 8,338 | 8,477 | 17,243 | 16,457 | ||||||||||||||
| EBITDA | $ | 30,694 | $ | 28,194 | $ | 33,035 | $ | 63,729 | $ | 42,748 | |||||||||
The following table reconciles segment income (loss) to EBITDA for the three months ended June 30, 2013 and 2012, and March 31, 2013, and six months ended June 30, 2013 and 2012:
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30 | March 31, 2013 | June 30 | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||||||
| Wood Products | ||||||||||||||||||||
| Segment income | $ | 23,045 | $ | 15,548 | $ | 20,808 | $ | 43,853 | $ | 26,359 | ||||||||||
| Depreciation and amortization | 6,517 | 6,113 | 6,253 | 12,770 | 12,018 | |||||||||||||||
| EBITDA | 29,562 | 21,661 | 27,061 | 56,623 | 38,377 | |||||||||||||||
| Building Materials Distribution | ||||||||||||||||||||
| Segment income | 3,276 | 8,699 | 7,997 | 11,273 | 7,880 | |||||||||||||||
| Depreciation and amortization | 2,217 | 2,194 | 2,178 | 4,395 | 4,376 | |||||||||||||||
| EBITDA | 5,493 | 10,893 | 10,175 | 15,668 | 12,256 | |||||||||||||||
| Corporate and Other | ||||||||||||||||||||
| Segment loss | (4,393 | ) | (4,391 | ) | (4,247 | ) | (8,640 | ) | (7,948 | ) | ||||||||||
| Depreciation and amortization | 32 | 31 | 46 | 78 | 63 | |||||||||||||||
| EBITDA | (4,361 | ) | (4,360 | ) | (4,201 | ) | (8,562 | ) | (7,885 | ) | ||||||||||
| Total Company EBITDA | $ | 30,694 | $ | 28,194 | $ | 33,035 | $ | 63,729 | $ | 42,748 | ||||||||||
Investor Relations Contact: Wayne Rancourt, 208-384-6073
Media Contact: John Sahlberg, 208-384-6451