Boise Cascade (BCC) 8-K Boise Cascade Company Reports Second Quarter 2013 Net Income of $10.4 Million

Boise Cascade	Exhibit 99.1
1111 West Jefferson Street Ste 300 PO Box 50 Boise, ID 83728

News Release

Investor Relations Contact - Wayne Rancourt 208 384 6073 Media Contact - John Sahlberg 208 384 6451

For Immediate Release: July 22, 2013

Boise Cascade Company Reports Second Quarter 2013 Net Income of $10.4 Million

BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported net income of $10.4 million in the second quarter, or $0.24 per share, on 43.2 million weighted average shares outstanding.

Second Quarter 2013 Highlights

• Second quarter sales of $852.3 million were 16% above the same quarter in 2012. Wood Products second quarter segment sales, including sales to the Company's Building Materials Distribution (BMD) segment, were $280.4 million, an increase of 16% from the year ago quarter. BMD segment sales were $681.5 million, an increase of 17% from the year ago quarter.

• The Company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $30.7 million, up 9% from the $28.2 million reported in second quarter 2012.

• Wood Products reported second quarter 2013 segment EBITDA of $29.6 million, up 36% from the $21.7 million reported in second quarter 2012.

• BMD reported segment EBITDA of $5.5 million, down from the $10.9 million reported in second quarter 2012.

• Subsequent to quarter end, we entered into an agreement to acquire two plywood plants for $102.0 million in cash.

Total and single-family U.S. housing starts improved approximately 17% and 14%, respectively, from the same period last year. The July 2013 Blue Chip consensus forecast for 2013 reflects 990,000 total U.S. housing starts, a 27% increase from 2012 levels. Total housing start levels remain below the historical average for the last 20 years of approximately 1.4 million units per year.

“Commodity pricing for structural panels and lumber was stronger than the prior year quarter, contributing to improved operating performance in our Wood Products segment. However, gross margins in our Building Materials Distribution segment were negatively impacted by a steady downward trajectory in commodity prices during the second quarter of 2013,” commented Tom Carlile, CEO. "In addition, we are pleased with our previously announced agreement to acquire two plywood plants in North and South Carolina. These facilities will complement our existing plywood and engineered wood manufacturing businesses and enable us to better serve our customers in the eastern and southeastern United States."

	2Q 2013		2Q 2012		1Q 2013
	(thousands)
Total sales	$	852,295	$	732,900	$	744,878
Net income	10,412		15,047		80,836
Adjusted net income1	10,412		15,047		12,170
Wood Products segment sales	280,417		241,842		269,216
Wood Products segment EBITDA1	29,562		21,661		27,061
BMD segment sales	681,486		580,545		581,129
BMD segment EBITDA1	5,493		10,893		10,175

¹Reconciliations between our results reported in accordance with U.S. generally accepted accounting principles (GAAP) and adjusted net income and EBITDA are included in the summary notes at the end of this press release.

Wood Products Segment

Wood Products segment sales in the second quarter were $280.4 million, up 16% from the same quarter a year ago. The sales increase was attributable primarily to 13% higher plywood sales prices, 18% higher laminated veneer lumber (LVL) sales volumes, and 14% higher I-joist sales volumes. Higher EWP and lumber sales prices, as well as plywood and lumber sales volumes also contributed to segment sales growth. The segment reported EBITDA of $29.6 million for the quarter, compared with $21.7 million reported in second quarter 2012. The main factors contributing to the stronger financial performance were improved plywood, EWP, and lumber pricing. These improvements were offset partially by higher wood fiber costs.

Building Materials Distribution Segment

BMD segment sales were $681.5 million in the second quarter, up 17% from the same quarter a year ago. Price changes accounted for approximately 12% of the sales gain, with shipment volumes up approximately 5%. The largest sales gains were in commodity product and engineered wood product categories, with lower sales growth in general line products. BMD reported quarterly EBITDA of $5.5 million compared to $10.9 million in second quarter 2012. Second quarter 2013 gross margins at 9.1% were down 2.7 percentage points from the 11.8% reported in second quarter 2012. This decrease in gross margins, which includes lower of cost or market inventory write-downs, was primarily driven by a steady decline in commodity panel and lumber prices throughout second quarter 2013 with declines of more than 25% since early April 2013. The decline in gross margins was offset partially by positive sales growth leverage on selling and distribution expenses, as well as on general and administrative expenses.

Balance Sheet

Boise Cascade ended second quarter 2013 with $232.7 million of cash and cash equivalents and $290.7 million of undrawn committed bank line availability, for total available liquidity of $523.4 million. At June 30, 2013, Boise Cascade reported outstanding debt of $250.0 million.

Outlook

We expect to continue to experience demand below 20-year average historical levels for the products we manufacture and distribute for the balance of 2013. However, the housing industry has shown signs of improvement in the U.S. and we remain optimistic that the recent improvement in demand for our products will continue. Commodity product pricing began to rise again in July 2013; however, future pricing could be volatile in response to industry operating rates and inventory levels in various distribution channels. We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity until demand improves further.

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About Boise Cascade

Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit our website at www.bc.com.

Webcast and Conference Call

Boise Cascade will host a webcast and conference call on Tuesday, July 23, at 8a.m. Eastern, at which time we will review the company's recent performance. You can join the webcast through our website by going to www.bc.com and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15minutes before the start of the webcast to register. To join the conference call, dial 866-515-2910 (international callers should dial 617-399-5124), participant passcode 65130670, at least 10minutes before the start of the call.

The archived webcast will be available in the Investor Relations section of our website. A replay of the conference call will be available from Tuesday, July 23, at 12 p.m. Eastern through Tuesday, July 30, at 11p.m. Eastern. Playback numbers are 888-286-8010 for U.S. calls and 617-801-6888 for international calls, and the passcode will be 50755646.

Basis of Presentation

We present our consolidated financial statements in accordance with GAAP. Our earnings release also supplements the GAAP presentations by reflecting EBITDA, a non-GAAP financial measure. EBITDA is defined as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA, however, is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income (loss) or segment income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for the limitations of EBITDA by relying on our GAAP results. Our measure of EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

Forward-Looking Statements

This news release contains statements that are “forward looking” within the Private Securities Litigation Reform Act of 1995. These statements speak only as of the date of this press release. While they are based on the current expectations and beliefs of management, they are subject to a number of uncertainties and assumptions that could cause actual results to differ from the expectations expressed in this release.

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Boise Cascade Company

Consolidated Statements of Operations

(unaudited, in thousands, except per-share data)

	Three Months Ended									Six Months Ended
	June 30						March 31, 2013			June 30
	2013			2012						2013			2012
Sales	$	852,295		$	732,900		$	744,878		$	1,597,173		$	1,319,886
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	750,996			632,607			644,847			1,395,843			1,142,731
Depreciation and amortization	8,766			8,338			8,477			17,243			16,457
Selling and distribution expenses	60,102			60,468			57,004			117,106			114,282
General and administrative expenses	10,251			10,689			10,046			20,297			19,737
Other (income) expense, net	(39		)	653			(134		)	(173		)	285
	830,076			712,755			720,240			1,550,316			1,293,492
Income from operations	22,219			20,145			24,638			46,857			26,394
Foreign exchange loss	(291		)	(289		)	(80		)	(371		)	(103		)
Interest expense	(4,781		)	(4,818		)	(4,891		)	(9,672		)	(9,631		)
Interest income	62			87			62			124			194
	(5,010		)	(5,020		)	(4,909		)	(9,919		)	(9,540		)
Income before income taxes	17,209			15,125			19,729			36,938			16,854
Income tax (provision) benefit (a)	(6,797		)	(78		)	61,107			54,310			(139		)
Net income	$	10,412		$	15,047		$	80,836		$	91,248		$	16,715
Weighted average common shares outstanding:
Basic	43,229			29,700			37,569			40,415			29,700
Diluted	43,233			29,700			37,569			40,417			29,700
Net income per common share:
Basic	$	0.24		$	0.51		$	2.15		$	2.26		$	0.56
Diluted	$	0.24		$	0.51		$	2.15		$	2.26		$	0.56

See accompanying summary notes to consolidated financial statements and segment information.

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Wood Products Segment

Statements of Operations

(unaudited, in thousands, except percentages)

	Three Months Ended									Six Months Ended
	June 30						March 31, 2013			June 30
	2013			2012						2013			2012
Segment sales	$	280,417		$	241,842		$	269,216		$	549,633		$	452,985
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	241,745			210,404			233,384			475,129			396,800
Depreciation and amortization	6,517			6,113			6,253			12,770			12,018
Selling and distribution expenses	6,709			7,007			6,693			13,402			13,476
General and administrative expenses	2,408			2,112			2,131			4,539			4,020
Other (income) expense, net	(7		)	658			(53		)	(60		)	312
	257,372			226,294			248,408			505,780			426,626
Segment income	$	23,045		$	15,548		$	20,808		$	43,853		$	26,359
	(percentage of sales)
Segment sales	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	86.2		%	87.0		%	86.7		%	86.4		%	87.6		%
Depreciation and amortization	2.3		%	2.5		%	2.3		%	2.3		%	2.7		%
Selling and distribution expenses	2.4		%	2.9		%	2.5		%	2.4		%	3.0		%
General and administrative expenses	0.9		%	0.9		%	0.8		%	0.8		%	0.9		%
Other (income) expense, net	—		%	0.3		%	—		%	—		%	0.1		%
	91.8		%	93.6		%	92.3		%	92.0		%	94.2		%
Segment income	8.2		%	6.4		%	7.7		%	8.0		%	5.8		%

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Building Materials Distribution Segment

Statements of Operations

(unaudited, in thousands, except percentages)

	Three Months Ended									Six Months Ended
	June 30						March 31, 2013			June 30
	2013			2012						2013			2012
Segment sales	$	681,486		$	580,545		$	581,129		$	1,262,615		$	1,031,961
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	619,174			511,913			517,002			1,136,176			911,359
Depreciation and amortization	2,217			2,194			2,178			4,395			4,376
Selling and distribution expenses	53,393			53,461			50,311			103,704			100,806
General and administrative expenses	3,480			4,313			3,742			7,222			7,645
Other (income) expense, net	(54		)	(35		)	(101		)	(155		)	(105		)
	678,210			571,846			573,132			1,251,342			1,024,081
Segment income	$	3,276		$	8,699		$	7,997		$	11,273		$	7,880
	(percentage of sales)
Segment sales	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	90.9		%	88.2		%	89.0		%	90.0		%	88.3		%
Depreciation and amortization	0.3		%	0.4		%	0.4		%	0.3		%	0.4		%
Selling and distribution expenses	7.8		%	9.2		%	8.7		%	8.2		%	9.8		%
General and administrative expenses	0.5		%	0.7		%	0.6		%	0.6		%	0.7		%
Other (income) expense, net	—		%	—		%	—		%	—		%	—		%
	99.5		%	98.5		%	98.6		%	99.1		%	99.2		%
Segment income	0.5		%	1.5		%	1.4		%	0.9		%	0.8		%

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Segment Information

(unaudited, in thousands)

	Three Months Ended									Six Months Ended
	June 30						March 31, 2013			June 30
	2013			2012						2013			2012
Segment sales
Wood Products	$	280,417		$	241,842		$	269,216		$	549,633		$	452,985
Building Materials Distribution	681,486			580,545			581,129			1,262,615			1,031,961
Intersegment eliminations	(109,608		)	(89,487		)	(105,467		)	(215,075		)	(165,060		)
	$	852,295		$	732,900		$	744,878		$	1,597,173		$	1,319,886
Segment income
Wood Products	$	23,045		$	15,548		$	20,808		$	43,853		$	26,359
Building Materials Distribution	3,276			8,699			7,997			11,273			7,880
Corporate and Other	(4,393		)	(4,391		)	(4,247		)	(8,640		)	(7,948		)
	21,928			19,856			24,558			46,486			26,291
Interest expense	(4,781		)	(4,818		)	(4,891		)	(9,672		)	(9,631		)
Interest income	62			87			62			124			194
Income before income taxes	$	17,209		$	15,125		$	19,729		$	36,938		$	16,854
EBITDA (b)
Wood Products	$	29,562		$	21,661		$	27,061		$	56,623		$	38,377
Building Materials Distribution	5,493			10,893			10,175			15,668			12,256
Corporate and Other	(4,361		)	(4,360		)	(4,201		)	(8,562		)	(7,885		)
	$	30,694		$	28,194		$	33,035		$	63,729		$	42,748

See accompanying summary notes to consolidated financial statements and segment information.

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Boise Cascade Company

Consolidated Balance Sheets

(unaudited, in thousands)

	June 30, 2013		December 31, 2012
ASSETS
Current
Cash and cash equivalents	$	232,667	$	54,507
Receivables
Trade, less allowances of $2,546 and $2,696	205,722		134,743
Related parties	434		674
Other	6,612		6,204
Inventories	368,350		325,806
Deferred income taxes	19,749		2
Prepaid expenses and other	11,851		5,521
Total current assets	845,385		527,457
Property and equipment, net	261,309		265,924
Timber deposits	7,267		6,221
Deferred financing costs	7,279		7,562
Goodwill	12,170		12,170
Intangible assets	8,900		8,900
Deferred income taxes	44,819		—
Other assets	7,486		8,164
Total assets	$	1,194,615	$	836,398

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Boise Cascade Company

Consolidated Balance Sheets (continued)

(unaudited, in thousands, except per-share data)

	June 30, 2013			December 31, 2012
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade	$	195,206		$	140,192
Related parties	1,957			1,950
Accrued liabilities
Compensation and benefits	42,039			61,814
Interest payable	2,745			3,188
Other	30,875			29,043
	272,822			236,187
Debt
Long-term debt	250,000			275,000
Other
Compensation and benefits	195,384			206,668
Other long-term liabilities	14,447			14,336
	209,831			221,004
Redeemable equity	—			6,443
Commitments and contingent liabilities
Stockholders' equity
Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding	—			—
Common stock, $0.01 par value per share; 300,000 shares authorized, 43,229 and 29,700 shares issued and outstanding	432			297
Additional paid-in capital	494,908			256,927
Accumulated other comprehensive loss	(118,395		)	(121,229		)
Retained earnings (accumulated deficit)	85,017			(38,231		)
Total stockholders' equity	461,962			97,764
Total liabilities and stockholders' equity	$	1,194,615		$	836,398

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Boise Cascade Company

Consolidated Statements of Cash Flows

(unaudited, in thousands)

	Six Months Ended
	June 30
	2013			2012
Cash provided by (used for) operations
Net income	$	91,248		$	16,715
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other	18,131			17,664
Stock-based compensation	1,073			—
Pension expense	5,434			6,394
Deferred income taxes	(66,314		)	—
Other	(277		)	(469		)
Decrease (increase) in working capital, net of acquisitions
Receivables	(71,487		)	(59,482		)
Inventories	(42,544		)	(35,154		)
Prepaid expenses and other	(2,523		)	(2,251		)
Accounts payable and accrued liabilities	36,833			68,235
Pension contributions	(9,970		)	(7,874		)
Income taxes payable	(881		)	(29		)
Other	(4,546		)	1,034
Net cash provided by (used for) operations	(45,823		)	4,783
Cash provided by (used for) investment
Expenditures for property and equipment	(14,042		)	(10,952		)
Acquisitions of businesses and facilities	—			(2,355		)
Proceeds from sales of assets	546			145
Other	10			(1		)
Net cash used for investment	(13,486		)	(13,163		)
Cash provided by (used for) financing
Net proceeds from issuance of common stock	262,599			—
Issuances of long-term debt	55,000			—
Payments of long-term debt	(80,000		)	—
Financing costs	(321		)	—
Other	191			—
Net cash provided by financing	237,469			—
Net increase (decrease) in cash and cash equivalents	178,160			(8,380		)
Balance at beginning of the period	54,507			182,455
Balance at end of the period	$	232,667		$	174,075

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Summary Notes to Consolidated Financial Statements and Segment Information

The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the company’s 2012 Form 10-K and the Company’s other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

(a) First quarter 2013 includes $68.7 million of income tax benefit associated with recording net deferred tax assets upon our conversion from a limited liability company to a corporation. The following table reconciles net income to adjusted net income for the three months ended June 30, 2013 and 2012, and March 31, 2013, and the six months ended June 30, 2013 and 2012:

	Three Months Ended							Six Months Ended
	June 30				March 31, 2013			June 30
	2013		2012					2013			2012
	(unaudited, in thousands, except per-share amounts)
Net income (GAAP basis)	$	10,412	$	15,047	$	80,836		$	91,248		$	16,715
Impact of deferred tax benefit	—		—		(68,666		)	(68,666		)	—
Adjusted net income (non-GAAP basis)	$	10,412	$	15,047	$	12,170		$	22,582		$	16,715
Weighted average common shares outstanding:
Basic	43,229		29,700		37,569			40,415			29,700
Diluted	43,233		29,700		37,569			40,417			29,700
Adjusted net income (non-GAAP basis), per share:
Basic	$	0.24	$	0.51	$	0.32		$	0.56		$	0.56
Diluted	$	0.24	$	0.51	$	0.32		$	0.56		$	0.56

(b) EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. The following table reconciles net income to EBITDA for the three months ended June 30, 2013 and 2012, and March 31, 2013, and the six months ended June 30, 2013 and 2012:

	Three Months Ended									Six Months Ended
	June 30						March 31, 2013			June 30
	2013			2012						2013			2012
	(unaudited, in thousands)
Net income	$	10,412		$	15,047		$	80,836		$	91,248		$	16,715
Interest expense	4,781			4,818			4,891			9,672			9,631
Interest income	(62		)	(87		)	(62		)	(124		)	(194		)
Income tax provision (benefit)	6,797			78			(61,107		)	(54,310		)	139
Depreciation and amortization	8,766			8,338			8,477			17,243			16,457
EBITDA	$	30,694		$	28,194		$	33,035		$	63,729		$	42,748

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The following table reconciles segment income (loss) to EBITDA for the three months ended June 30, 2013 and 2012, and March 31, 2013, and six months ended June 30, 2013 and 2012:

	Three Months Ended									Six Months Ended
	June 30						March 31, 2013			June 30
	2013			2012						2013			2012
	(unaudited, in thousands)
Wood Products
Segment income	$	23,045		$	15,548		$	20,808		$	43,853		$	26,359
Depreciation and amortization	6,517			6,113			6,253			12,770			12,018
EBITDA	29,562			21,661			27,061			56,623			38,377
Building Materials Distribution
Segment income	3,276			8,699			7,997			11,273			7,880
Depreciation and amortization	2,217			2,194			2,178			4,395			4,376
EBITDA	5,493			10,893			10,175			15,668			12,256
Corporate and Other
Segment loss	(4,393		)	(4,391		)	(4,247		)	(8,640		)	(7,948		)
Depreciation and amortization	32			31			46			78			63
EBITDA	(4,361		)	(4,360		)	(4,201		)	(8,562		)	(7,885		)
Total Company EBITDA	$	30,694		$	28,194		$	33,035		$	63,729		$	42,748

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