Boise Cascade Co (BCC, Financial) released its 8-K filing on November 4, 2024, reporting a net income of $91.0 million, or $2.33 per share, on sales of $1.7 billion for the third quarter ended September 30, 2024. This compares to a net income of $143.1 million, or $3.58 per share, on sales of $1.8 billion for the same period in 2023. Boise Cascade Co is a leading producer of engineered wood products and plywood, operating through its Wood Products and Building Materials Distribution segments. The company generates a majority of its revenue from the Building Materials Distribution segment.
Performance and Challenges
Boise Cascade Co's performance in the third quarter of 2024 reflects a challenging market environment, with sales declining by 7% year-over-year. The company's earnings per share of $2.33 slightly exceeded the analyst estimate of $2.32, while revenue fell short of the estimated $1,719.20 million. The decrease in sales was primarily driven by lower prices and volumes in the Wood Products segment, particularly for plywood and engineered wood products (EWP) such as laminated veneer lumber (LVL) and I-joists.
Financial Achievements
Despite the decline in sales, Boise Cascade Co managed to maintain a solid financial position, ending the quarter with $761.6 million in cash and cash equivalents and $395.7 million in undrawn committed bank line availability, totaling $1,157.3 million in available liquidity. The company's ability to generate cash and maintain liquidity is crucial in the building materials industry, where market conditions can be volatile.
Income Statement and Key Metrics
The company's net income for the third quarter of 2024 was $91.0 million, a 36% decrease from the previous year. The Wood Products segment saw a 12% decline in sales to $453.9 million, while the Building Materials Distribution segment experienced a 6% decrease to $1,567.5 million. The decline in segment income was attributed to lower sales prices and increased costs.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Sales | $1,713.7 million | $1,834.4 million | -7% |
| Net Income | $91.0 million | $143.1 million | -36% |
| EPS (Diluted) | $2.33 | $3.58 | -35% |
Analysis and Commentary
The company's performance highlights the impact of a moderate demand environment and fluctuating commodity prices. Boise Cascade Co's CEO, Nate Jorgensen, stated,
In what has proven to be a moderate demand environment, once again, we were able to deliver good financial results in the third quarter. We could not have done this without the tremendous efforts of our associates and our unique combination of best-in-class engineered wood products and an unmatched nationwide wholesale distribution network."
Looking ahead, Boise Cascade Co anticipates normal seasonality through the winter months and remains well-positioned to adapt to changes in demand. The company's strategic investments and capital deployment to shareholders are expected to support its long-term growth objectives.
Explore the complete 8-K earnings release (here) from Boise Cascade Co for further details.
