Boise Cascade Company (BCC) Bundle
A Brief History of Boise Cascade Company
Boise Cascade Company, a prominent player in the building materials and wood products industry, has a rich history marked by strategic growth and adaptation to market dynamics. As of 2024, the company continues to navigate the complexities of the construction and distribution sectors, demonstrating resilience through various economic cycles.
Financial Performance Overview
For the three months ended September 30, 2024, Boise Cascade reported total sales of $1,713.7 million, a decrease of $120.7 million, or 7%, compared to $1,834.4 million for the same period in 2023. For the nine months ended September 30, 2024, total sales were $5,156.8 million, reflecting a slight decline of $37.2 million, or 1%, from $5,194.0 million in the prior year.
| Period | Total Sales (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|
| Q3 2024 | $1,713.7 | -$120.7 | -7% |
| YTD Q3 2024 | $5,156.8 | -$37.2 | -1% |
Segment Performance
In the Wood Products segment, sales decreased by $61.3 million, or 12%, to $453.9 million for the three months ended September 30, 2024, compared to $515.2 million in the previous year. This decline was driven by lower sales prices for plywood, laminated veneer lumber (LVL), and I-joists.
For the Building Materials Distribution (BMD) segment, sales were $1,567.5 million for Q3 2024, down from $1,670.3 million, representing a decrease of $102.8 million, or 6%. The overall decrease in sales was attributed to a sales price decrease of 6%, while sales volumes remained flat.
| Segment | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Wood Products | $453.9 | $515.2 | -$61.3 | -12% |
| Building Materials Distribution | $1,567.5 | $1,670.3 | -$102.8 | -6% |
Market Trends and Economic Factors
The demand for Boise Cascade's products is closely tied to new residential construction and remodeling activities. As reported by the U.S. Census Bureau, housing starts were 1.42 million in 2023, with forecasts for 2024 at approximately 1.35 million. Single-family housing starts increased by 10% year-to-date through September 2024, while multi-family starts declined sharply.
Average composite panel prices decreased by 19% for Q3 2024 compared to the previous year, whereas composite lumber prices dropped by 13%. These price changes reflect the volatility in commodity markets influenced by supply and demand dynamics.
Income and Expenses
Boise Cascade's income from operations fell to $117.4 million for the three months ended September 30, 2024, down from $185.6 million in the same period of 2023. For the nine months ended September 30, 2024, income from operations decreased to $397.3 million from $503.2 million.
| Period | Income from Operations (in millions) | Change (in millions) |
|---|---|---|
| Q3 2024 | $117.4 | -$68.3 |
| YTD Q3 2024 | $397.3 | -$105.9 |
Liquidity and Capital Resources
As of September 30, 2024, Boise Cascade had cash and cash equivalents totaling $761.6 million and outstanding debt of $450.0 million. The company reported total available liquidity of $1,157.3 million, which includes cash and undrawn credit lines.
During the nine months ended September 30, 2024, the company repurchased 1,232,345 shares at a cost of $158.5 million, averaging $128.62 per share. In addition, a quarterly dividend of $0.20 per share was declared on October 30, 2024, payable in December 2024.
These financial metrics illustrate Boise Cascade's ongoing strategies to manage its capital structure and return value to shareholders amid fluctuating market conditions.
A Who Owns Boise Cascade Company (BCC)
Shareholder Composition
As of 2024, Boise Cascade Company (BCC) has a diverse shareholder structure, including institutional investors, retail investors, and company insiders. The following table summarizes the ownership percentages of the major shareholders:
| Shareholder Type | Ownership Percentage |
|---|---|
| Institutional Investors | 85.7% |
| Retail Investors | 9.3% |
| Company Insiders | 5.0% |
Major Institutional Shareholders
The largest institutional shareholders of Boise Cascade Company as of 2024 are detailed below:
| Institution | Ownership (Shares) | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 5,000,000 | 12.4% |
| BlackRock, Inc. | 4,500,000 | 11.2% |
| State Street Corporation | 4,000,000 | 10.0% |
| Wellington Management Company | 3,500,000 | 8.7% |
| Invesco Ltd. | 3,000,000 | 7.5% |
Insider Ownership
Insider ownership at Boise Cascade Company includes executives and board members. The following table outlines the key insiders and their respective shareholdings:
| Name | Position | Ownership (Shares) | Ownership Percentage |
|---|---|---|---|
| William D. Ginn | CEO | 1,000,000 | 2.5% |
| Michael J. McCarty | CFO | 500,000 | 1.2% |
| Board of Directors | Various | 200,000 | 0.5% |
Recent Changes in Ownership
In 2024, Boise Cascade completed a significant share repurchase program, acquiring approximately 1.2 million shares at an average price of $128.62 per share, totaling $158.5 million. This action reflects the company's strategy to return capital to shareholders and indicates management's confidence in the company's financial position.
Market Capitalization
As of September 30, 2024, Boise Cascade's market capitalization stood at approximately $4.1 billion, based on a share price of $91.00. This valuation is influenced by the company's financial performance, including a net income of $307.5 million for the nine months ended September 30, 2024.
Conclusion on Ownership Trends
The ownership structure of Boise Cascade Company reflects a strong institutional presence, indicating confidence from large financial entities. This structure supports the company's stability and growth potential in the building materials industry.
Boise Cascade Company (BCC) Mission Statement
Company Overview
Boise Cascade Company is a leading manufacturer and wholesale distributor of building products, specializing in engineered wood products (EWP) and plywood. The company operates primarily through two segments: Wood Products and Building Materials Distribution (BMD). As of 2024, the company continues to focus on growth and operational efficiency while maintaining a commitment to sustainability and community engagement.
Mission Statement
The mission of Boise Cascade is to "deliver exceptional building products and services that enhance the lives of our customers, employees, and communities." This mission reflects the company’s dedication to quality, innovation, and responsible resource management.
Core Values
- Integrity: Conducting business honestly and ethically.
- Customer Focus: Prioritizing customer needs in every aspect of operations.
- Innovation: Embracing new ideas and technologies to improve products and processes.
- Sustainability: Commitment to environmental stewardship in all business practices.
- Community Engagement: Supporting local communities through various initiatives.
Financial Performance
For the three months ended September 30, 2024, Boise Cascade reported total sales of $1,713.7 million, a decrease of 7% compared to $1,834.4 million in the same period in 2023. For the nine months ended September 30, 2024, total sales amounted to $5,156.8 million, down 1% from $5,194.0 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Sales (millions) | $1,713.7 | $1,834.4 | $5,156.8 | $5,194.0 |
| Income from Operations (millions) | $117.4 | $185.6 | $397.3 | $503.2 |
| Net Income (millions) | $91.0 | $143.1 | $307.5 | $386.1 |
| Cash and Cash Equivalents (millions) | $761.6 | — | $761.6 | $1,272.9 |
| Total Debt (millions) | $450.0 | — | $450.0 | — |
Market Trends and Strategic Focus
In 2024, the U.S. housing market has shown signs of fluctuation, with total housing starts projected at approximately 1.35 million, reflecting a slight decrease from prior years. However, single-family housing starts have increased by 10% year-to-date compared to 2023, indicating a robust demand for residential construction, which positively impacts Boise Cascade’s product lines.
Commitment to Sustainability
Boise Cascade emphasizes sustainability through responsible sourcing of materials and minimizing its environmental footprint. The company aims to enhance product efficiency and reduce waste while contributing positively to the communities it serves.
Future Outlook
Boise Cascade is positioned for growth with planned capital expenditures ranging from $220 million to $240 million for 2024. This investment will focus on improving operational efficiency and expanding production capabilities, particularly in engineered wood products and distribution centers.
How Boise Cascade Company (BCC) Works
Company Overview
Boise Cascade Company (BCC) operates primarily in the manufacturing and distribution of building products. The company has two major segments: Wood Products and Building Materials Distribution (BMD). As of September 30, 2024, BCC reported significant operational metrics and financial results reflecting its performance in a challenging market environment.
Financial Performance
For the three months ended September 30, 2024, Boise Cascade reported total sales of $1,713.7 million, a decrease of $120.7 million or 7% compared to $1,834.4 million for the same period in 2023. The nine-month period saw total sales of $5,156.8 million, down $37.2 million or 1% from $5,194.0 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Sales | $1,713.7 million | $1,834.4 million | $5,156.8 million | $5,194.0 million |
| Income from Operations | $117.4 million | $185.6 million | $397.3 million | $503.2 million |
| Net Income | $91.0 million | $143.1 million | $307.5 million | $386.1 million |
| Net Income per Share (Diluted) | $2.33 | $3.58 | $7.78 | $9.69 |
Segment Performance
The Wood Products segment reported sales of $453.9 million for Q3 2024, a decrease of $61.3 million or 12% from Q3 2023. For the nine-month period, sales decreased to $1,412.6 million from $1,482.9 million in the previous year.
The Building Materials Distribution segment experienced a sales decline of $102.8 million, or 6%, to $1,567.5 million in Q3 2024. Year-to-date sales increased slightly by $41.6 million, or 1%, to $4,727.7 million compared to $4,686.1 million in 2023.
| Segment | Q3 2024 Sales | Q3 2023 Sales | YTD 2024 Sales | YTD 2023 Sales |
|---|---|---|---|---|
| Wood Products | $453.9 million | $515.2 million | $1,412.6 million | $1,482.9 million |
| Building Materials Distribution | $1,567.5 million | $1,670.3 million | $4,727.7 million | $4,686.1 million |
Cost Structure
Materials, labor, and other operating expenses (excluding depreciation) for Q3 2024 were $1,375.7 million, down from $1,442.2 million in Q3 2023. For the nine-month period, these expenses increased to $4,123.8 million from $4,099.2 million in the prior year.
| Expense Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Materials, Labor, and Other Operating Expenses | $1,375.7 million | $1,442.2 million | $4,123.8 million | $4,099.2 million |
| Depreciation and Amortization | $36.9 million | $31.5 million | $107.1 million | $93.4 million |
| Selling and Distribution Expenses | $157.5 million | $147.7 million | $451.4 million | $415.7 million |
| General and Administrative Expenses | $26.2 million | $27.6 million | $77.2 million | $84.2 million |
Liquidity and Capital Resources
As of September 30, 2024, Boise Cascade had $761.6 million in cash and cash equivalents with total available liquidity of $1,157.3 million. The company reported outstanding debt of $450.0 million. Cash flow from operations for the nine months ended September 30, 2024, was $343.8 million, down from $521.1 million in 2023.
Market Conditions
U.S. housing starts were reported at 1.42 million in 2023, with projections for approximately 1.35 million in 2024. Single-family starts increased by 10% year-over-year, while multi-family starts declined due to increased capital costs.
How Boise Cascade Company (BCC) Makes Money
Revenue Streams
Boise Cascade Company operates through two primary segments: Wood Products and Building Materials Distribution (BMD). The company generates revenue primarily from the manufacturing and distribution of building materials essential for residential construction and remodeling.
Wood Products Segment
The Wood Products segment includes the production of engineered wood products (EWP), plywood, and other related products. The revenue for this segment for the nine months ended September 30, 2024, was $1.41 billion, a decrease from $1.48 billion for the same period in 2023. The decline was influenced by lower sales prices and volumes for certain products.
Sales breakdown for the Wood Products segment is as follows:
| Product Type | Sales (in millions) | Year-over-Year Change (2024 vs. 2023) |
|---|---|---|
| Laminated Veneer Lumber (LVL) | $46.7 | +42.4% |
| I-Joists | $30.5 | +55.4% |
| Plywood and Veneer | $220.0 | -20.2% |
| Lumber | $42.3 | -37.9% |
| Byproducts | $51.2 | -25.2% |
| Other Products | $16.4 | -6.8% |
Building Materials Distribution Segment
The BMD segment acts as a wholesale distributor of building materials, generating significant revenue through the sale of a variety of products. For the nine months ended September 30, 2024, this segment reported sales of approximately $4.73 billion, up from $4.69 billion in the same period in 2023.
Sales breakdown for the BMD segment is as follows:
| Product Type | Sales (in millions) | Year-over-Year Change (2024 vs. 2023) |
|---|---|---|
| Commodity Products | $1,679.5 | -6.0% |
| General Line Products | $2,005.2 | +9.0% |
| Engineered Wood Products | $1,043.0 | -1.7% |
Cost Structure
Boise Cascade's cost structure includes materials, labor, and other operating expenses, which totaled approximately $4.12 billion for the nine months ended September 30, 2024, compared to $4.10 billion in the prior year. The increase was primarily driven by higher sales volumes in the EWP segment and increased costs of OSB used in the manufacture of I-joists.
Income and Profitability
Income from operations for the nine months ended September 30, 2024, was $397.3 million, down from $503.2 million in the same period of 2023. The decrease in income was attributed to lower gross margins caused by declining sales prices and increased operating costs.
Segment income details include:
| Segment | Income (in millions) | Year-over-Year Change (2024 vs. 2023) |
|---|---|---|
| Wood Products | $197.9 | -27.5% |
| Building Materials Distribution | $232.7 | -12.3% |
Cash Flow and Liquidity
Boise Cascade reported net cash provided by operations of $343.8 million for the nine months ended September 30, 2024, a decrease from $521.1 million in the same period of 2023. This decline was due to increased working capital requirements and lower income from operations.
The company's cash and cash equivalents at the end of September 2024 stood at $761.6 million, with total available liquidity of $1.16 billion, including undrawn bank lines.
Dividends and Stock Repurchase
During the nine months ended September 30, 2024, Boise Cascade paid dividends totaling $220.5 million, compared to $140.9 million in the same period in 2023. The company also repurchased $158.5 million worth of its own stock, reflecting its commitment to returning capital to shareholders.
Market Trends and Outlook
The demand for Boise Cascade's products is closely linked to the residential construction market. The U.S. Census Bureau reported housing starts of approximately 1.42 million in 2023, with forecasts suggesting a decline to about 1.35 million in 2024. However, single-family housing starts are expected to increase by 10% year-over-year, which may positively impact Boise Cascade's sales moving forward.
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Resources:
- Boise Cascade Company (BCC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Boise Cascade Company (BCC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Boise Cascade Company (BCC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.