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| | | |
Boise Cascade | | Exhibit 99.1 | |
1111 West Jefferson Street Ste 300 PO Box 50 Boise, ID 83728 | | | |
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Investor Relations Contact - Wayne Rancourt 208 384 6073 | | Media Contact - John Sahlberg 208 384 6451 |
For Immediate Release: July 23, 2015
Boise Cascade Company Reports 2015 Second Quarter Net Income of
$20.2 Million on Sales of $955.4 Million
BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported net income of $20.2 million, or $0.51 per share, on sales of $955.4 million for the second quarter ended June 30, 2015.
Second Quarter 2015 Highlights
|
| | | | | | | | | | | |
| | 2Q 2015 | | 2Q 2014 | | % change |
| | | | | | |
| | (thousands, except per-share data and percentages) |
| | | | | | |
Consolidated Results | | | | | | |
Sales | | $ | 955,397 |
| | $ | 961,187 |
| | (1 | )% |
Net income | | 20,230 |
| | 26,418 |
| | (23 | )% |
Net income per common share - diluted | | 0.51 |
| | 0.67 |
| | (24 | )% |
EBITDA1 | | 50,681 |
| | 58,652 |
| | (14 | )% |
Segment Results | | | | | | |
Wood Products sales | | $ | 339,869 |
| | $ | 351,011 |
| | (3 | )% |
Wood Products EBITDA1 | | 34,053 |
| | 41,257 |
| | (17 | )% |
Building Materials Distribution sales | | 762,078 |
| | 758,375 |
| | — | % |
Building Materials Distribution EBITDA1 | | 22,450 |
| | 21,795 |
| | 3 | % |
Corporate EBITDA1 | | (5,822 | ) | | (4,400 | ) | | (32 | )% |
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.
In second quarter 2015, total and single-family U.S. housing starts increased approximately 16% and 12%, respectively, from the same period last year. The July 2015 Blue Chip consensus forecast for 2015 reflects 1.11 million total U.S. housing starts, an 11% expected increase from 2014 levels. At that level, total housing starts would remain below the historical average for the last 20 years of approximately 1.3 million starts per year.
"Building Materials Distribution (BMD) performed better this quarter as commodity prices stabilized and gross margins improved; however, sales volumes in April and May were disappointing, partially due to unusually wet weather in Texas and the Southeast. June sales and earnings results for BMD were much stronger. Wood Products’ performance was negatively impacted by lower lumber prices and operating challenges at our North and South Carolina plywood operations during the quarter. We were able to make good progress on the start-up of the new
dryer at our South Carolina operation in June after working through construction and installation issues in April and May. I am pleased by the way our other Wood Products regions performed during the quarter. We continue to believe the demand for new residential construction will be modestly higher in the second half of 2015, which should benefit both of our businesses,” commented Tom Corrick, CEO.
Wood Products
Sales, including sales to BMD, decreased $11.1 million, or 3%, to $339.9 million for the three months ended June 30, 2015, from $351.0 million for the three months ended June 30, 2014. The decrease in sales was driven primarily by decreases in plywood sales volumes and lumber sales prices of 5% and 16%, respectively. These decreases were offset partially by a sales price increase of 3% in I-joists. Sales volumes of I-joists, LVL, and lumber, as well as plywood and LVL sales prices, were relatively flat compared with the three months ended June 30, 2014.
Wood Products EBITDA decreased $7.2 million to $34.1 million for the three months ended June 30, 2015, from $41.3 million for the three months ended June 30, 2014. The decline in EBITDA was due primarily to lower lumber sales prices, as well as higher per-unit labor and other manufacturing costs due to lower plywood sales volumes, offset partially by higher I-joist sales prices.
Building Materials Distribution
Sales increased $3.7 million to $762.1 million for the three months ended June 30, 2015, from $758.4 million for the three months ended June 30, 2014. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales volume increases of 3%, offset by a decrease in sales prices of 3%. By product line, commodity sales decreased 7%, general line product sales increased 10%, and sales of engineered wood products (substantially all of which are sourced through our Wood Products segment) increased 2%.
BMD EBITDA increased $0.7 million to $22.5 million for the three months ended June 30, 2015, from $21.8 million for the three months ended June 30, 2014. The increase in EBITDA was driven primarily by a higher gross margin of $1.6 million, offset partially by increased selling and distribution expenses of $0.9 million.
Corporate and Other
Segment EBITDA was negative $5.9 million for the three months ended June 30, 2015, an increase of $1.4 million, from negative $4.4 million for the three months ended June 30, 2014. Beginning in first quarter 2015, all pension expense is reported in our Corporate and Other segment. We reported $0.8 million of pension expense in second quarter 2015 which drove the negative variance in Corporate and Other. For comparison, pension expense was less than $0.1 million in second quarter 2014, most of which was recorded in Wood Products and BMD.
Balance Sheet
Boise Cascade ended the second quarter with $194.9 million of cash and cash equivalents and $314.7 million of undrawn committed bank line availability, for total available liquidity of $509.6 million. The Company reported $351.3 million of outstanding debt at June 30, 2015.
In May, the Company amended its bank credit facility to add a $50 million seven-year term loan and extend the maturity of the $350 million revolving credit component of the facility to April 30, 2020. Proceeds from the term loan were used to fund a $40 million discretionary contribution to the Company’s pension plan, with the remaining proceeds used for general corporate purposes.
During second quarter 2015, the Company repurchased 175,085 shares of its common stock for $6.1 million. In July, the Company repurchased an additional 58,661 shares for $2.0 million.
Outlook
We expect to experience modest demand growth for the products we manufacture and distribute during the balance of 2015 and remain optimistic that the overall improvement in demand for our products will continue as
housing recovers to historic trend levels. 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. Composite structural panel and lumber prices have been historically volatile and future commodity product pricing could be volatile in response to industry capacity restarts and operating rates, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns.
About Boise Cascade
Boise Cascade Company is one of the largest producers of plywood and engineered wood products 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 Thursday, July 23, at 11 a.m. Eastern, at which time we will review the Company's second quarter.
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 15 minutes before the start of the webcast to register. To join the conference call, dial 855-209-5834 (international callers should dial 315-625-6883), participant passcode 80898677, at least 10 minutes 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 Thursday, July 23, at 2 p.m. Eastern through Thursday, July 30, at 11 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. calls and 404-537-3406 for international calls, and the passcode will be 80898677.
Basis of Presentation
We refer to the term EBITDA in this earnings release as a supplemental measure of our performance and liquidity that is not required by or presented in accordance with generally accepted accounting principles in the United States ("GAAP"). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization.
EBITDA is the primary measure used by our management 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 management 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, income 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 or segment income 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 these limitations 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.
Boise Cascade Company
Consolidated Statements of Operations
(unaudited, in thousands, except per-share data)
|
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| June 30 | | March 31, 2015 | | June 30 |
| 2015 | | 2014 | | | 2015 | | 2014 |
| | | | | | | | | |
Sales | $ | 955,397 |
| | $ | 961,187 |
| | $ | 809,903 |
| | $ | 1,765,300 |
| | $ | 1,728,367 |
|
| | | | | | | | | |
Costs and expenses | | | | | | | | | |
Materials, labor, and other operating expenses (excluding depreciation) | 824,583 |
| | 823,532 |
| | 705,039 |
| | 1,529,622 |
| | 1,496,140 |
|
Depreciation and amortization | 13,281 |
| | 12,482 |
| | 13,587 |
| | 26,868 |
| | 24,802 |
|
Selling and distribution expenses | 68,254 |
| | 67,181 |
| | 61,880 |
| | 130,134 |
| | 126,111 |
|
General and administrative expenses | 12,018 |
| | 11,925 |
| | 12,008 |
| | 24,026 |
| | 22,590 |
|
Other (income) expense, net | (98 | ) | | 163 |
| | (299 | ) | | (397 | ) | | (1,737 | ) |
| 918,038 |
| | 915,283 |
| | 792,215 |
| | 1,710,253 |
| | 1,667,906 |
|
| | | | | | | | | |
Income from operations | 37,359 |
| | 45,904 |
| | 17,688 |
| | 55,047 |
| | 60,461 |
|
| | | | | | | | | |
Foreign currency exchange gain (loss) | 41 |
| | 266 |
| | (107 | ) | | (66 | ) | | 177 |
|
Interest expense | (5,591 | ) | | (5,519 | ) | | (5,481 | ) | | (11,072 | ) | | (11,031 | ) |
Interest income | 58 |
| | 53 |
| | 90 |
| | 148 |
| | 123 |
|
| (5,492 | ) | | (5,200 | ) | | (5,498 | ) | | (10,990 | ) | | (10,731 | ) |
| | | | | | | | | |
Income before income taxes | 31,867 |
| | 40,704 |
| | 12,190 |
| | 44,057 |
| | 49,730 |
|
Income tax provision | (11,637 | ) | | (14,286 | ) | | (4,573 | ) | | (16,210 | ) | | (17,747 | ) |
Net income | $ | 20,230 |
| | $ | 26,418 |
| | $ | 7,617 |
| | $ | 27,847 |
| | $ | 31,983 |
|
| | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | |
Basic | 39,494 |
| | 39,420 |
| | 39,498 |
| | 39,496 |
| | 39,399 |
|
Diluted | 39,600 |
| | 39,463 |
| | 39,622 |
| | 39,604 |
| | 39,458 |
|
| | | | | | | | | |
Net income per common share: | | | | | | | | | |
Basic | $ | 0.51 |
| | $ | 0.67 |
| | $ | 0.19 |
| | $ | 0.71 |
| | $ | 0.81 |
|
Diluted | $ | 0.51 |
| | $ | 0.67 |
| | $ | 0.19 |
| | $ | 0.70 |
| | $ | 0.81 |
|
Wood Products Segment
Statements of Operations
(unaudited, in thousands, except percentages)
|
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| June 30 | | March 31, 2015 | | June 30 |
| 2015 | | 2014 | | | 2015 | | 2014 |
| | | | | | | | | |
Segment sales | $ | 339,869 |
| | $ | 351,011 |
| | $ | 309,316 |
| | $ | 649,185 |
| | $644,285 |
| | | | | | | | | |
Costs and expenses | | | |
| | |
| | |
| | |
|
Materials, labor, and other operating expenses (excluding depreciation) | 296,276 |
| | 299,993 |
| | 268,420 |
| | 564,696 |
| | 560,856 |
|
Depreciation and amortization | 10,341 |
| | 10,044 |
| | 10,791 |
| | 21,132 |
| | 20,024 |
|
Selling and distribution expenses | 7,030 |
| | 7,146 |
| | 6,675 |
| | 13,705 |
| | 13,884 |
|
General and administrative expenses | 2,514 |
| | 2,418 |
| | 2,512 |
| | 5,026 |
| | 5,067 |
|
Other (income) expense, net | (4 | ) | | 197 |
| | 22 |
| | 18 |
| | 194 |
|
| 316,157 |
| | 319,798 |
| | 288,420 |
| | 604,577 |
| | 600,025 |
|
| | | | | | | | | |
Segment income | $ | 23,712 |
| | $ | 31,213 |
| | $ | 20,896 |
| | $ | 44,608 |
| | $ | 44,260 |
|
| | | | | | | | | |
| (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) | 87.2 | % | | 85.5 | % | | 86.8 | % | | 87.0 | % | | 87.1 | % |
Depreciation and amortization | 3.0 | % | | 2.9 | % | | 3.5 | % | | 3.3 | % | | 3.1 | % |
Selling and distribution expenses | 2.1 | % | | 2.0 | % | | 2.2 | % | | 2.1 | % | | 2.2 | % |
General and administrative expenses | 0.7 | % | | 0.7 | % | | 0.8 | % | | 0.8 | % | | 0.8 | % |
Other (income) expense, net | — | % | | 0.1 | % | | — | % | | — | % | | — | % |
| 93.0 | % | | 91.1 | % | | 93.2 | % | | 93.1 | % | | 93.1 | % |
| | | | | | | | | |
Segment income | 7.0 | % | | 8.9 | % | | 6.8 | % | | 6.9 | % | | 6.9 | % |
Building Materials Distribution Segment
Statements of Operations
(unaudited, in thousands, except percentages)
|
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| June 30 | | March 31, 2015 | | June 30 |
| 2015 | | 2014 | | | 2015 | | 2014 |
| | | | | | | | | |
Segment sales | $ | 762,078 |
| | $ | 758,375 |
| | $ | 622,905 |
| | $ | 1,384,983 |
| | $ | 1,343,905 |
|
| | | | | | | | | |
Costs and expenses | | | | | | | | | |
Materials, labor, and other operating expenses (excluding depreciation) | 674,503 |
| | 672,355 |
| | 558,361 |
| | 1,232,864 |
| | 1,195,699 |
|
Depreciation and amortization | 2,874 |
| | 2,394 |
| | 2,739 |
| | 5,613 |
| | 4,701 |
|
Selling and distribution expenses | 60,910 |
| | 60,035 |
| | 54,650 |
| | 115,560 |
| | 112,227 |
|
General and administrative expenses | 4,311 |
| | 4,232 |
| | 3,928 |
| | 8,239 |
| | 7,998 |
|
Other (income) expense, net | (96 | ) | | (42 | ) | | (119 | ) | | (215 | ) | | (1,982 | ) |
| 742,502 |
| | 738,974 |
| | 619,559 |
| | 1,362,061 |
| | 1,318,643 |
|
| | | | | | | | | |
Segment income | $ | 19,576 |
| | $ | 19,401 |
| | $ | 3,346 |
| | $ | 22,922 |
| | $ | 25,262 |
|
| | | | | | | | | |
| (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) | 88.5 | % | | 88.7 | % | | 89.6 | % | | 89.0 | % | | 89.0 | % |
Depreciation and amortization | 0.4 | % | | 0.3 | % | | 0.4 | % | | 0.4 | % | | 0.3 | % |
Selling and distribution expenses | 8.0 | % | | 7.9 | % | | 8.8 | % | | 8.3 | % | | 8.4 | % |
General and administrative expenses | 0.6 | % | | 0.6 | % | | 0.6 | % | | 0.6 | % | | 0.6 | % |
Other (income) expense, net | — | % | | — | % | | — | % | | — | % | | (0.1 | )% |
| 97.4 | % | | 97.4 | % | | 99.5 | % | | 98.3 | % | | 98.1 | % |
| | | | | | | | | |
Segment income | 2.6 | % | | 2.6 | % | | 0.5 | % | | 1.7 | % | | 1.9 | % |
Segment Information
(unaudited, in thousands)
|
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| June 30 | | March 31, 2015 | | June 30 |
| 2015 | | 2014 | | | 2015 | | 2014 |
Segment sales | | | | | | | | | |
Wood Products | $ | 339,869 |
| | $ | 351,011 |
| | $ | 309,316 |
| | $ | 649,185 |
| | $ | 644,285 |
|
Building Materials Distribution | 762,078 |
| | 758,375 |
| | 622,905 |
| | 1,384,983 |
| | 1,343,905 |
|
Intersegment eliminations | (146,550 | ) | | (148,199 | ) | | (122,318 | ) | | (268,868 | ) | | (259,823 | ) |
| $ | 955,397 |
| | $ | 961,187 |
| | $ | 809,903 |
| | $ | 1,765,300 |
| | $ | 1,728,367 |
|
| | | | | | | | | |
Segment income (loss) | | | | | | | | | |
Wood Products | $ | 23,712 |
| | $ | 31,213 |
| | $ | 20,896 |
| | $ | 44,608 |
| | $ | 44,260 |
|
Building Materials Distribution | 19,576 |
| | 19,401 |
| | 3,346 |
| | 22,922 |
| | 25,262 |
|
Corporate and Other (b) | (5,888 | ) | | (4,444 | ) | | (6,661 | ) | | (12,549 | ) | | (8,884 | ) |
| 37,400 |
| | 46,170 |
| | 17,581 |
| | 54,981 |
| | 60,638 |
|
| | | | | | | | | |
Interest expense | (5,591 | ) | | (5,519 | ) | | (5,481 | ) | | (11,072 | ) | | (11,031 | ) |
Interest income | 58 |
| | 53 |
| | 90 |
| | 148 |
| | 123 |
|
Income before income taxes | $ | 31,867 |
| | $ | 40,704 |
| | $ | 12,190 |
| | $ | 44,057 |
| | $ | 49,730 |
|
| | | | | | | | | |
EBITDA (a) | | | | | | | | | |
Wood Products | $ | 34,053 |
| | $ | 41,257 |
| | $ | 31,687 |
| | $ | 65,740 |
| | $ | 64,284 |
|
Building Materials Distribution | 22,450 |
| | 21,795 |
| | 6,085 |
| | 28,535 |
| | 29,963 |
|
Corporate and Other (b) | (5,822 | ) | | (4,400 | ) | | (6,604 | ) | | (12,426 | ) | | (8,807 | ) |
| $ | 50,681 |
| | $ | 58,652 |
| | $ | 31,168 |
| | $ | 81,849 |
| | $ | 85,440 |
|
See accompanying summary notes to consolidated financial statements and segment information.
Boise Cascade Company
Consolidated Balance Sheets
(unaudited, in thousands)
|
| | | | | | | | |
| | June 30, 2015 | | December 31, 2014 |
| | |
ASSETS | | | | |
| | | | |
Current | | | | |
Cash and cash equivalents | | $ | 194,927 |
| | $ | 163,549 |
|
Receivables | | | | |
Trade, less allowances of $1,694 and $2,062 | | 236,515 |
| | 172,314 |
|
Related parties | | 487 |
| | 821 |
|
Other | | 5,329 |
| | 7,311 |
|
Inventories | | 415,114 |
| | 394,461 |
|
Deferred income taxes | | 19,292 |
| | 20,311 |
|
Prepaid expenses and other | | 10,189 |
| | 14,857 |
|
Total current assets | | 881,853 |
| | 773,624 |
|
| | | | |
Property and equipment, net | | 374,013 |
| | 368,128 |
|
Timber deposits | | 12,568 |
| | 13,819 |
|
Deferred financing costs | | 7,199 |
| | 7,149 |
|
Goodwill | | 21,823 |
| | 21,823 |
|
Intangible assets, net | | 10,137 |
| | 10,183 |
|
Deferred income taxes | | — |
| | 16,684 |
|
Other assets | | 10,851 |
| | 9,075 |
|
Total assets | | $ | 1,318,444 |
| | $ | 1,220,485 |
|
Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except per-share data)
|
| | | | | | | |
| June 30, 2015 | | December 31, 2014 |
| |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| | | |
Current | | | |
Accounts payable | | | |
Trade | $ | 238,312 |
| | $ | 150,693 |
|
Related parties | 3,445 |
| | 1,743 |
|
Accrued liabilities | | | |
Compensation and benefits | 48,038 |
| | 66,170 |
|
Interest payable | 3,375 |
| | 3,298 |
|
Other | 39,573 |
| | 33,286 |
|
Total current liabilities | 332,743 |
| | 255,190 |
|
| | | |
Debt | | | |
Long-term debt | 351,312 |
| | 301,415 |
|
| | | |
Other | | | |
Compensation and benefits | 84,783 |
| | 156,218 |
|
Other long-term liabilities | 19,005 |
| | 15,274 |
|
| 103,788 |
| | 171,492 |
|
| | | |
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, 43,400 and 43,282 shares issued, respectively | 434 |
| | 433 |
|
Treasury Stock, 4,039 and 3,864 shares at cost, respectively | (106,109 | ) | | (100,000 | ) |
Additional paid-in capital | 505,188 |
| | 502,739 |
|
Accumulated other comprehensive loss | (87,473 | ) | | (101,498 | ) |
Retained earnings | 218,561 |
| | 190,714 |
|
Total stockholders' equity | 530,601 |
| | 492,388 |
|
Total liabilities and stockholders' equity | $ | 1,318,444 |
| | $ | 1,220,485 |
|
Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited, in thousands)
|
| | | | | | | |
| Six Months Ended |
| June 30 |
| 2015 | | 2014 |
Cash provided by (used for) operations | | | |
Net income | $ | 27,847 |
| | $ | 31,983 |
|
Items in net income not using (providing) cash | | | |
Depreciation and amortization, including deferred financing costs and other | 27,638 |
| | 25,616 |
|
Stock-based compensation | 2,898 |
| | 2,310 |
|
Pension expense | 2,881 |
| | 357 |
|
Deferred income taxes | 7,187 |
| | 2,721 |
|
Other | (622 | ) | | (1,729 | ) |
Decrease (increase) in working capital | | | |
Receivables | (61,885 | ) | | (65,953 | ) |
Inventories | (20,653 | ) | | (27,206 | ) |
Prepaid expenses and other | (3,375 | ) | | (3,424 | ) |
Accounts payable and accrued liabilities | 78,457 |
| | 58,393 |
|
Pension contributions | (53,203 | ) | | (780 | ) |
Income taxes payable | 14,499 |
| | 10,993 |
|
Other | (1,954 | ) | | (3,956 | ) |
Net cash provided by operations | 19,715 |
| | 29,325 |
|
| | | |
Cash provided by (used for) investment | | | |
Expenditures for property and equipment | (31,433 | ) | | (21,971 | ) |
Proceeds from sales of assets | 263 |
| | 4,669 |
|
Net cash used for investment | (31,170 | ) | | (17,302 | ) |
| | | |
Cash provided by (used for) financing | | | |
Borrowings of long-term debt, including revolving credit facility | 50,000 |
| | 57,600 |
|
Payments on revolving credit facility | — |
| | (57,600 | ) |
Treasury stock purchased | (6,109 | ) | | — |
|
Financing costs | (655 | ) | | (11 | ) |
Other | (403 | ) | | (342 | ) |
Net cash provided by (used for) financing | 42,833 |
| | (353 | ) |
| | | |
Net increase in cash and cash equivalents | 31,378 |
| | 11,670 |
|
| | | |
Balance at beginning of the period | 163,549 |
| | 118,249 |
|
| | | |
Balance at end of the period | $ | 194,927 |
| | $ | 129,919 |
|
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 2014 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) | 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, 2015 and 2014, and March 31, 2015, and the six months ended June 30, 2015 and 2014: |
|
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| June 30 | | March 31, 2015 | | June 30 |
| 2015 | | 2014 | | | 2015 | | 2014 |
| | | | | | | | | |
| (unaudited, in thousands) | | | | |
| | | | | | | | | |
Net income | $ | 20,230 |
| | $ | 26,418 |
| | $ | 7,617 |
| | $ | 27,847 |
| | $ | 31,983 |
|
Interest expense | 5,591 |
| | 5,519 |
| | 5,481 |
| | 11,072 |
| | 11,031 |
|
Interest income | (58 | ) | | (53 | ) | | (90 | ) | | (148 | ) | | (123 | ) |
Income tax provision | 11,637 |
| | 14,286 |
| | 4,573 |
| | 16,210 |
| | 17,747 |
|
Depreciation and amortization | 13,281 |
| | 12,482 |
| | 13,587 |
| | 26,868 |
| | 24,802 |
|
EBITDA | $ | 50,681 |
| | $ | 58,652 |
| | $ | 31,168 |
| | $ | 81,849 |
| | $ | 85,440 |
|
The following table reconciles segment income (loss) to EBITDA for the three months ended June 30, 2015 and 2014, and March 31, 2015, and the six months ended June 30, 2015 and 2014:
|
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| June 30 | | March 31, 2015 | | June 30 |
| 2015 | | 2014 | | | 2015 | | 2014 |
| | | | | | | | | |
| (unaudited, in thousands) | | | | |
Wood Products | | | | | | | | | |
Segment income | $ | 23,712 |
| | $ | 31,213 |
| | $ | 20,896 |
| | $ | 44,608 |
| | $ | 44,260 |
|
Depreciation and amortization | 10,341 |
| | 10,044 |
| | 10,791 |
| | 21,132 |
| | 20,024 |
|
EBITDA | 34,053 |
| | 41,257 |
| | 31,687 |
| | 65,740 |
| | 64,284 |
|
| | | | | | | | | |
Building Materials Distribution | | | | | | | | | |
Segment income | 19,576 |
| | 19,401 |
| | 3,346 |
| | 22,922 |
| | 25,262 |
|
Depreciation and amortization | 2,874 |
| | 2,394 |
| | 2,739 |
| | 5,613 |
| | 4,701 |
|
EBITDA | 22,450 |
| | 21,795 |
| | 6,085 |
| | 28,535 |
| | 29,963 |
|
| | | | | | | | | |
Corporate and Other | | | | | | | | | |
Segment loss | (5,888 | ) | | (4,444 | ) | | (6,661 | ) | | (12,549 | ) | | (8,884 | ) |
Depreciation and amortization | 66 |
| | 44 |
| | 57 |
| | 123 |
| | 77 |
|
EBITDA | (5,822 | ) | | (4,400 | ) | | (6,604 | ) | | (12,426 | ) | | (8,807 | ) |
| | | | | | | | | |
Total Company EBITDA | $ | 50,681 |
| | $ | 58,652 |
| | $ | 31,168 |
| | $ | 81,849 |
| | $ | 85,440 |
|
| |
(b) | Prior to first quarter 2015, pension expense (which is primarily comprised of interest cost, expected return on plan assets, and amortization of actuarial losses) was recorded in each of our segments based on the associated individual employee roles and responsibilities. However, pension benefits are frozen for most employees and only a small number of hourly employees continue to accrue benefits. Therefore, management believes that recording pension expense in the Corporate and Other segment provides a clearer view of segment operating performance. In first quarter 2015, we made a change in our segment measurement method by recording all pension expense to the Corporate and Other segment. This change in measurement only impacts our segment disclosures, and thus it has no impact on our overall consolidated financial statements. Historical segment income (loss) and EBITDA have not been recast. For the three and six months ended June 30, 2014, less than $0.1 million and $0.2 million, respectively, of pension expense was recorded in each of the Wood Products and Building Materials Distribution segments. Pension expense recorded in Corporate and Other was $0.8 million and $2.9 million, respectively, for the three and six months ended June 30, 2015, compared with less than $0.1 million for each of the three and six months ended June 30, 2014. |