Boise Cascade Company (NYSE:BCC) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 11:00 am ET

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Boise Cascade Company (NYSE:BCC) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Olivia and I'll be your conference facilitator today. At this time I would like to welcome everyone to Boise Cascade's Third Quarter 2019 Conference Call. [Operator Instructions] Before we begin I remind you that this call may contain forward-looking statements about the company's future business prospects and anticipated financial performance. These statements are not guarantees of future performance and the company undertakes no duty to update them. Although these statements reflects management's expectations today they are subject to a number of business risks and uncertainties. Actual results may differ materially from those expressed or implied in this call. For a discussion of the factors that may cause actual results to differ from the results anticipated please refer to Boise Cascade's recent filings with the SEC.

It is now my pleasure to introduce you to Wayne Rancourt Executive Vice President CFO and Treasurer Boise Cascade. Mr. Rancourt you may begin your conference.

Executive
Wayne Rancourt

Thank you Olivia. Good morning everyone. I would like to welcome you to Boise Cascade's Third Quarter 2019 Earnings Call and Business Update. Joining me on today's call are Tom Corrick our CEO; Nate Jorgensen our COO; Mike Brown Head of our Wood Products Operations; and Nick Stokes Head of our Building Materials Distribution Operations. Turning to slide two. I would point out the information regarding our forward-looking statements. The appendix of the presentation includes reconciliations from our GAAP net income to EBITDA and adjusted EBITDA and segment income to segment EBITDA.

I will now turn the call over to Tom.

Executive
Thomas K Corrick

Thanks Wayne. Good morning everyone. Thank you for joining us for our earnings call today. I'm on slide three. Our third quarter sales of $1.3 billion were down 5% from third quarter 2018. Our net income was $27.2 million or $0.69 per share up from $0.35 per share in the year ago quarter. Third quarter of 2019 results include $1 million after-tax loss or $0.03 per share from a noncash pension settlement charge. Third quarter 2018 results included $16.7 million of net after-tax losses or $0.42 per share from a noncash pension settlement charge and impairment in sales-related losses. Our operating performance in both businesses was solid considering the limited demand growth and ongoing weakness in the plywood pricing environment. Consistent with our strategy the volatility of our earnings has continued to decline as we emphasize growth and distribution and engineered wood products. Our Wood Products manufacturing business reported segment income of $15.6 million in the third quarter compared to $13.9 million in the year ago quarter. Wood Products third quarter 2018 results included $11 million of pretax charges for asset impairment and sale related losses. Our Building Materials Distribution business reported segment income of $38.7 million on quarterly sales of $1.1 billion for the third quarter compared to $23.5 million of segment income on quarterly sales of $1.2 billion in the comparative prior year quarter.

Wayne will walk through the financial results in more detail and then I will come back to provide