Boise Cascade Company (NYSE:BCC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 03, 2020 • 11:00 am ET

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Boise Cascade Company (NYSE:BCC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, my name is Sydney and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascade's Second Quarter 2020 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period.

[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 reflect 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.

Executive
Wayne Rancourt

Thank you, Sydney. Good morning everyone. I would like to welcome you to Boise Cascade's second quarter 2020 earnings call and business update. Joining me on today's call are Nate Jorgensen, our CEO; Mike Brown, Head of our Wood Products Operations; and Nick Stokes Head of our Building Materials Distribution Operations.

Turning to Slide 2, 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 Nate.

Executive
Nate Jorgensen

Thanks, Wayne. Good morning everyone. Thank you for joining us for our earnings call today.

I'm on Slide number 3. Our second quarter sales of $1.2 billion were up 1% from second quarter 2019. Our net income was $33.6 million or $0.85 per share compared to net income of $27.7 million or $0.71 per share in the year ago quarter. Total U.S. housing starts decreased 17% compared to the same period last year. Single-family starts, the primary driver of our sales volumes, also decreased 13%. Despite the decline in new residential construction activity, our operating and financial performance at both businesses were strong in this unprecedented environment.

Our Wood Products manufacturing business reported segment income of $17.1 million in the second quarter compared to $18.9 million in the year ago quarter. Wood Products' continued focus on manufacturing cost improvements was especially notable, given the production schedule modifications and temporary curtailment actions taken in the second quarter. Our Building Materials Distribution business reported segment income of $43.2 million on sales of $1.1 billion for the second quarter compared to $33.8 million of segment income on sales of $1.1 billion in the comparative prior-year quarter. BMD sales and income were robust, and our long-term strategy and commitment to consistently carry a broad base of in-stock products, supported by high service levels and solid financial position, continues to deliver value