NYSE$BCC

Boise Cascade Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported strong first quarter results despite COVID-19 uncertainties, with focus on associate safety and business continuity.

Boise Cascade reported a net income of $12.2 million, or $0.31 per share, on sales of $1.2 billion for the first quarter ended March 31, 2020. The results include pre-tax accelerated depreciation and other curtailment related costs of $15.0 million and $1.7 million respectively, due to the permanent curtailment of I-joist production at the Roxboro, North Carolina, facility.

  • First quarter net income was $12.2 million, or $0.31 per share.
  • Sales for the first quarter were $1.2 billion.
  • Wood Products sales increased slightly, driven by higher sales volumes for I-joists and LVL, offset by decreases in plywood sales prices and volumes.
  • Building Materials Distribution sales increased 16%, driven by a sales volume increase of 17%.

Headline financials

Total Revenue

$1.17B

Previous: $1.04B+12.3%
EPS (adj)

$0.63

Previous: $0.29+117.2%
Capital Expenditures

-$18.6M

Previous: -$14.3M-29.4%
Free Cash Flow

-$6.36M

Previous: -$2.96M-115.1%
Net Income

$12.2M

Previous: $11.4M+7.1%
Operating Income

$25.5M

Previous: $21.7M+18.0%
Gross Profit

-$992M

Previous: $132K-751790.2%
Cash & Equivalents

$215M

Previous: $136M+57.8%
Total Assets

$1.76B

Previous: $1.69B+4.0%
Stock-Based Comp

$1.67M

Previous: $2.2M-23.9%

Revenue & EPS history

Boise Cascade · Revenue · Quarterly

$1.17B

Q1 2020+12.3%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The full impacts of the global emergence of COVID-19 on our business and financial results are currently unknown. Economists predict that housing starts will be negatively impacted compared to expectations prior to the COVID-19 outbreak.

Tailwinds

  • The U.S. Department of Homeland Security (DHS) has designated the forest products industry, and thereby wood products manufacturing and building materials distribution, as part of the Essential Critical Infrastructure Workforce.
  • To date, we have not experienced disruptions to our supply chain and have been able to source the necessary raw materials and finished goods needed by our operations.
  • Current U.S. demographics are supportive of higher levels of housing starts.
  • Robust construction activity in the first two months of 2020 drove sharp increases in commodity products pricing that peaked in mid-March.
  • Cash flows from operations, combined with current cash levels and available borrowing capacity, will be adequate to fund debt service requirements and provide cash, as required, to support ongoing operations

Headwinds

  • State and local agencies are not mandated to follow the DHS designations, and in certain geographies across the U.S., additional restrictions have been imposed that further limit or preclude residential construction activity.
  • Given the current outlook and with sufficient inventory on hand, our Wood Products segment has implemented changes to reduce the volume of EWP and plywood it will produce.
  • In April 2020, we temporarily curtailed or reduced operating schedules at essentially all of our manufacturing facilities, and we expect to continue temporary curtailment of certain operations until market conditions improve.
  • We expect activity levels across our distribution network to continue to vary widely as COVID-19 impacts geographies across the U.S. to differing degrees and federal, state or local restrictions are implemented or rescinded.
  • COVID-19 is expected to adversely affect the pace of household formation rates and residential repair-and-remodeling activity due to high unemployment rates, lower wages, low consumer confidence, prospective home buyers' lack of ability to view homes in person, prospective home buyers' access to and cost of financing, and housing affordability, as well as other factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.4%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-1.1%

Avg return

30 days after

47%

27 / 57 earnings

Positive

+20.1%

Q3 2015

Best reaction

-28.5%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%-9.5%-12.6%
Q4 2025+8.1%+2.7%-7.8%
Q3 2025+2.7%+3.4%+8.7%
Q1 2025-4.5%-4.2%-5.4%
Q4 2024-8.1%-10.7%-14.6%
Q3 2024+3.2%+6.0%+9.5%
Q2 2024+0.6%-1.4%-2.4%
Q1 2024-4.0%-1.7%-1.8%
Q4 2023-10.6%-7.5%+8.7%
Q3 2023+0.8%+12.3%+21.8%
Q2 2023+4.7%+7.4%+7.4%
Q1 2023+2.7%+8.0%+10.6%
Q4 2022-2.8%-4.8%-19.5%
Q3 2022-1.5%-2.9%+9.0%
Q2 2022-4.0%-2.2%-11.9%
Q1 2022-10.6%-7.9%-4.3%
Q4 2021-21.6%-7.5%-13.4%
Q3 2021+10.2%+23.2%+14.8%
Q2 2021+1.7%+4.4%+12.1%
Q1 2021+3.8%+5.1%-6.8%
Q4 2020-10.6%-3.6%+5.2%
Q3 2020+9.5%+17.3%+16.7%
Q2 2020+1.2%-4.7%+3.3%
Q1 2020+6.5%-2.3%+25.3%
Q4 2019-10.0%-13.4%-43.7%
Q3 2019+2.3%+4.8%+2.6%
Q2 2019+11.9%+9.1%+10.5%
Q1 2019-8.4%-7.5%-19.4%
Q4 2018+2.2%-3.1%-6.4%
Q3 2018-6.7%-12.0%-20.0%
Q2 2018+0.0%-0.9%+1.2%
Q1 2018+2.9%+4.7%+16.6%
Q4 2017-6.3%-9.8%-13.7%
Q3 2017+1.6%+5.1%+9.1%
Q2 2017+3.0%-0.3%-5.3%
Q1 2017-4.4%-4.2%-7.9%
Q4 2016-2.2%+5.4%-1.7%
Q3 2016-14.2%-19.9%-6.3%
Q2 2016-2.0%-0.0%-9.4%
Q1 2016-4.3%
Q4 2015-28.5%
Q3 2015+20.1%
Q2 2015-7.1%
Q1 2015-2.6%
Q4 2014-13.3%
Q3 2014+5.0%
Q2 2014+6.0%
Q1 2014-0.9%
Q4 2013+0.2%
Q3 2012+0.8%
Q3 2013+7.9%
Q2 2012-0.4%
Q2 2013+0.8%
Q4 2011-3.1%
Q1 2012-3.1%
Q1 2013+6.6%
Q4 2012-5.1%
Q3 2011

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