NYSE$BCC

Boise Cascade Company · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong third-quarter results driven by extraordinary market conditions and effective execution across both business segments.

Boise Cascade reported net income of $103.2 million, or $2.61 per share, on sales of $1.6 billion for the third quarter ended September 30, 2020. The results reflect significant increases compared to the third quarter of 2019, driven by extraordinary market conditions and strong execution.

  • Net income was $103.2 million, or $2.61 per share, compared to $27.2 million, or $0.69 per share, in Q3 2019.
  • Sales reached $1.6 billion, a 25% increase from $1.3 billion in Q3 2019.
  • Wood Products sales increased 12% to $363.7 million, driven by higher plywood prices and I-joist sales volumes.
  • Building Materials Distribution sales increased 25% to $1,437.7 million due to sales price increases.

Headline financials

Total Revenue

$1.59B

Previous: $1.27B+25.2%
EPS (adj)

$2.88

Previous: $0.72+300.0%
Capital Expenditures

-$47M

Previous: -$53.2M+11.7%
Free Cash Flow

$102M

Previous: $13M+682.7%
Net Income

$149M

Previous: $66.3M+124.8%
Operating Income

$159M

Previous: $44.9M+253.2%
Gross Profit

-$1.26B

Previous: -$1.08B-17.0%
Cash & Equivalents

$504M

Previous: $306M+64.4%
Total Assets

$2.06B

Previous: $1.79B+15.3%
Stock-Based Comp

$2.49M

Previous: $1.95M+28.1%

Revenue & EPS history

Boise Cascade · Revenue · Quarterly

$1.59B

Q3 2020+25.2%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

As we begin the fourth quarter, Wood Products continues to make efforts to restore production rates to pre-COVID-19 levels in response to strong end-product demand, particularly for our EWP. However, we continue to experience periodic short-term disruptions at many locations due to COVID-19.

Tailwinds

  • Strong end-product demand, particularly for EWP.
  • Low mortgage rates creating a favorable demand environment for new residential construction.
  • Continuation of work-from-home practices may continue to strengthen repair and remodel spending.
  • U.S. demographics support a higher level of housing starts.
  • Many national home builders are reporting strong near-term backlogs.

Headwinds

  • Periodic short-term disruptions at many locations due to COVID-19.
  • Activity levels across distribution network to continue to vary widely as COVID-19 impacts geographies across the U.S. to differing degrees.
  • A re-acceleration of COVID-19 cases could prompt state or local officials to reinstitute restrictions that could limit or constrain building activity.
  • Economic consequences of COVID-19 may adversely affect the pace of household formation rates and residential repair-and-remodeling activity.
  • October 2020 composite lumber and panel prices have declined by approximately 35% and 10% from the peaks reached in September 2020 and are at risk for further price erosion.

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 Q3 2020

Historical avgQ3 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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