BCC - Earnings call transcript Q2 2021

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Operator

Good morning. My name is Cree and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Boise Cascade’s Second Quarter 2021 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.

management’s business they risks reflect a subject statements of number and these expectations are today, to Although uncertainties. Actual those results expressed from or implied may in this differ materially call.

may results the to Hibbs, refer Cascade’s Senior your to and my recent begin SEC. CFO may discussion pleasure anticipated, the Boise factors Treasurer, with Vice Mr. is a from results President, of cause For Hibbs, Boise Kelly actual It to filings to differ please you you that conference. Cascade. now introduce

Kelly Hibbs

Thank Good welcome everyone. earnings would you I to business XXXX and you, quarter morning, Cree. like Boise to Cascade’s call update. second

operations. on me Jeff today’s Brown, Mike Nate Wood and of our Distribution Products Joining Strom, our Jorgensen, our CEO; of Operations; call are Head Head Materials Building

point income over the to to and segment Turning information appendix segment will I the EBITDA. The statements. and turn Slide regarding EBITDA net reconciliations call forward-looking X, from GAAP I to income includes Nate. would out adjusted EBITDA our our to now

Nate Jorgensen

Kelly. Thanks, I #X. Thank Slide us joining on am call for our you earnings for today. morning, Good everyone.

of quarter XX% Our from sales XXXX. second were billion second $X.X quarter up

our year. share quarter. housing of U.S. million net to the income Our per volumes, Single-family primary $X.XX increased XX% XX%. $XX.X sales starts of in housing increased same In ago per last share starts, million the $XXX.X $X.XX year second period net quarter or total compared income or was XXXX, driver to compared the

financial results. on performed exceptional and and strength construction focus During in delivered our the and dedication both period, the to capitalize and with associates businesses operating residential

for quarter Products million the production second of strong business. historic particularly year’s also product end sales to improved Our pricing manufacturing benefited demand, to increase segment continued levels realization, Wood last Products year $XXX.X ago and volumes Wood compared compared our Products to the income continued reported rates Wood second align in EWP focus to – quarter. EWP business efforts realizations from sales with and plywood quarter. million $XX.X to manufacturing in

business of segment favorably of of driven the commodity Distribution billion home will prices construction to were in quarter. for Wood Kelly Products half Materials sales the sales higher impacted $XX.X income prior continued quarter, back Building the million on on comparative fell $XXX.X results the recorded income strength year billion and $X.X of by inventory Commodity by in Our of pricing, momentarily. activity. segment reported the speak BMD’s in new second adjustment quarter sharply we valuation to lumber million compared $X.X

the supply demand through I’ll half detail, in and back outlook to As home provide general sell then line that the we was a notable constraints of it our relates before product financial will in demand pause and through and EWP strong of center walk the the the back more in the results categories, remain channel. with and your exception products for Kelly take come Kelly? questions. quarter

Kelly Hibbs

million second in to XXXX. I am including segment were $XXX.X million compared our X. on Products $XXX.X distribution you, second quarter, the Nate. in sales Thank sales to Wood Slide quarter

of EBITDA plywood, $XXX.X the the for officer. with compared As Reported losses second Nate Phoenix was to second risk quarter forfeitures offset in in income of million, selling This second commodity mentioned, business the Included $XXX.X million offset sales in segment distribution losses second in offset income higher costs. quarter those higher particularly the of substantially were $XX.X second million estimated inventory These at to $XXX.X all compared The adjustment of This and was market primarily of quarter quarter. on sharp segment million our improvements in was of in and EBITDA the partially business prior segment $X.X Wood second impacting by part million sales $XX.X reported by the volumes. $XX.X absorbed lumber the reported in of due up were for and adjusted QX products million in gross fire lines, in and the lower of amounts $XXX.X net well as The increase was in prices program. in increased location. $XX.X expenses increase BMD The XXXX. caused or gross of negative segment the was from BMD’s in quarter. EWP results partially second XXXX. found sales $XX.X margin to driven million ago million after income quarter Products these compared income of resulting by incentive or margins items million prices BMD resulting quarter our award the due losses volumes prices million. quarter year higher as reported lower Sales $XXX.X unallocated billion, volumes quarter. margin commodity $XX XXXX. The EWP XX% be sales cost retention a of and in the quarter. product a and Corporate self-insured can other million EBITDA The departure our to reported $X.X segment due and The EBITDA $XX as a million lumber of with of EBITDA release. sales $X.X XXXX year by items million to negative were increase improvement half from increased income million decline by in quarter. costs the compensation X%, was compares earnings wood back in our year is tables quarter increase corporate from XX% primarily primarily of of the to partially up prior from respectively. fiber These improved an

quarter be by a XXXX and XXXX, XXXX. price housing X, were Demand announced Pricing second to higher temporary starts. in expire. Slide second increases the I-joist with sales up take protection for up volumes for and continue XX% in and to starts EWP compared LVL to of second quarter respectively, increased certain continues XX%, previously both fueled quarter I-joist to for as price Turning and were our single-family effect first LVL arrangements and X% compared proportion quarter strong

to Slide EWP thus increase during prices in XXXX. to pricing expect I and We reflecting in XXXX, continue far on XXXX sequentially actions am taken now late X.

compared million quarter second Our was second Wood sales feet volume in quarter XXX feet plywood million Products in XXXX. XXX to

was our and allowing up historical July from plywood in averages, above price to XXXX. veneer the our average plywood XXX% during quarter mills of strong modestly $XXX X,XXX well second quarter realizations the from were files. average per sales unusually well length us Our order price The benefit plywood net pricing. of QX operated above quarter, second because

However, plywood has necessary balancing to demand at assist demand pricing our and where transitioned in we lower since softened, and to plan facilities. meaningfully and as has supply take plywood curtailments as rolling

The X, the points sales Moving improved XX.X% were sales EWP XXXX. XXX%, XX% second mentioned second April will XXX and have and quarter year $X.X May our expansion second increased on leveraging for trajectory EBITDA BMD the expansion. the the gross margin year. improved as X.X% million distribution BMD’s by of sales move percentage evident our gross reported general from quarter increased financial quarter inventory XX.X%, through By meaningful impact due compared from previously generated area, a from sales the in balance to reported gross influence line The basis of in last costs. the to was quarter Slide in BMD’s quarter, selling products up and product including with percentage commodity margin for same prices XXXX. adjustment, quarter $XXX.X XX% and margin valuation BMD’s year. The in pricing margin results commodity Gross of quarter ago the we product billion, up margin commodity is of dollars BMD’s escalating second increased was XX%. in continued X.X% and the mix up the

XXXX Slide declines from the declines slide price of April X. BMD’s pricing customers. third COVID-XX improvement less we vaccines With our quarter. declining hesitancy remodel well marketplace of and rapidly volatile repair sharp to very rising lumber do-it-yourself sharp pandemic the activity, May, with panel the This price XXXX center and ago in I easing potential year time followed and quarter, remainder prices home in prices causing reduced most am shows indications to erosion. the be second expect are continued Given lumber for commodity quarter results on and home largely now home are during by spending due in quarter projects, and comparable resulting demand was on because below during in people restrictions, of expectations that at

declines Lengths the composite of quarter lumber in beginning both approximately lumber price quarter. Slide to declined index lagging Turning third the from reflects have end price declines, composite panel Random panel X, at levels XXXX. sharp the XX% Current the prices and by second although early

We demand particularly XXXX. environment accounts accrued both commodity Net of year. in key On accounts pricing the The working interest Inventories set BMD by vendors capital. cash, operating increase product second strong extended tax through higher to of during as items, current major June driven led in market of be in Slide movements was purchasing and quarter. dividends will million elevated continue XX, we and consumption and volatile the to we be in by commodity the receivable Pricing determined income capital, to the rest will Seasonally move activity by $XX.X working due industry offered increase levels terms payable segments, strength current payable. and increased our the likely out elements expect the sales from have the prices. end rates. excluding increased

XX.X rebates am and The In receivables, filed statistical We in on contributed payable the XX. by I $XXX cash. liabilities. addition, with detail. finished an data those to second accounts increase broken the information accrued increase million our accrued inventory down the X-K segment as Slide quarter to of in for Exhibit interested in now has

committed at liquidity debt available We reflects under June million $XXX XX, our total line. outstanding million, was availability and which of approximately bank had XXXX. June our Our XX cash at $XXX

Nashville, XXXX in $XX assembly the market. Texas, our plywood capital capital door our in million. operation new log veneer in Tennessee spending completion plant, a and expansion total Houston, project approximately our Florien capabilities at Included to of distribution expect of We and million $XXX utilization range to a the expenditures is in center

construction equipment with recently tax is to XXXX in and capital factors, we purchase acquisitions. exercise effective paid rates Our legislation of supplemental as our lease $X light increasing ongoing to future expected in increase our possibly could economic of of of dividend uses engineering anticipated options, and shareholders. After decrease In well organic federal of accelerate or be higher with dividend, a beyond. support XX% to including of the share initiatives internal balance, and availability our availability timing working activity and reserve and targeted a of last remain conditions, a results, our positioned between to result we acquisitions, financial as than range supplemental as capital XX% per quarter, tax rate opportunistic efforts and resources expenditure payment cash well XXXX of with and growth, number purchases. Consistent sufficient cash growth

take approach We allocation opportunities. M&A a to prudent and will capital when organic evaluating

have in past, ahead our us, cash to we to opportunities if of As demonstrated mechanisms utilize our we cash the shareholders. return will exceeds

will while grow on discuss remains outlook. capital. generating our I turn objective business overarching Our it to to to back over appropriate Nate shareholder business our successfully returns now

Nate Jorgensen

favorable, new continuation residential be Kelly. from in mortgage Thanks, on for and home continues construction #XX. by demographics I’m many environment work by practices rates, to Slide U.S. the demand of supported The low

in strength million expect consensus residential The X.X blue-chip year. U.S. We in to for into and continue XXXX for construction housing XXXX. activity starts is next

residential may current that and are U.S. times many starts constraints believe level continue extend activity. on forecasted homebuilders induced reporting demographics strong backlogs, activity the of supply labor build to we Although national and housing limit near-term support higher and shortages construction

leisure rescinded on home we repair efforts In are pricing are the addition, home spending, for provide restrictions expect will continue improvement strong, mitigate for spending and demand and while travel from availability housing lower and as EWP and inventory to remains impacts help in pent-up favorable term U.S. traction the solid the near occurs. decline demand pricing. will recent for Demand of plywood a and showing EWP stock backdrop age remodel to limited continue

in mass continue to innovation on products well in pressure customer effectively in impacts market to address the the to our changing BMD distribution opportunities manage as a commodity done to commercial terrific and service. timber. the results, as but opportunities pricing national establishing environment has near-term financial price BMD always, we products, the services and I’m will will products a level. ability without confident market to sacrificing of and at use In cost team rapidly local of the reduce job executing of As Declines their focus commodity responding arena, and

also Our us pursue with to continue affords balance growth ability to opportunities BMD. sheet the

As formal comments, Phoenix dedicated want associates early our of fire want safety focus we the our to and express BMD our branch, also one to minimize maintained inspired branch. suppliers. their on our I’m wrap to adjacent up properties at our disruption location, I on for as quarters An recognize in we appreciation our especially completed spread I associates efforts to my and June of record. have customers our stay and through by to safest

our through be the and foundation respect forward. of and excellence safety, us well has continue navigated as moving will incredibly served pursuit integrity, to we’ve pandemic of values proven Our

use will suppliers, continued Cree, shareholders. sure communities you open and joining this to you We are we welcome of and for to operating would up lines. our make Thank customers, We and interest. us phone financial your Cree, please any there? would support our benefit and strength at the time. continue questions today you the

Operator

BMO button Yes, was I Yes, with My And was okay. Capital me? opening the Mark of hear can you line Markets. mute on. Wilde

Nate Jorgensen

Good morning, Mark.

Jesse Barone

through? First price rolling you kind you kind about seeing as talk through. price progress wise roll order can of are increases of And increases kind through going file EWP, seeing the your of what question, more you effects kind are substitution of the just any the of if

Kelly Hibbs

Kelly. Yes, is hey, this Jesse,

So, yes.

EWP. through terms to of in price XXXX outlook actions pricing continues volumes we expect then files be seen in sequential into Demand be EWP, EWP continue and pricing see strong. consistent and to And in with continue order single-family the of So to starts to XXXX, increases strong. that end the we’ve

in Jesse. you for we QX or to And We seen are substitution high QX. versus is expecting haven’t increases direct give guidance we – I to EWP, price then the that, if QX really of QX, back of out forward EWP single-digits moving experienced terms

about floors. reducing the think labor required the level, install higher you EWP the terms a on just in the If much is value labor homebuilder constraints to proposition out at of

we so And haven’t seen just anything there.

Jesse Barone

you have it veneer, constraint seen of of kind know Great. loosening And then any the a kind was around of I last couple quarters?

Mike Brown

answer the Unfortunately, no. is Mike. It’s Jesse. morning, Good

for to the as the major all it I still think of that’s one bottlenecks relates making EWP manufacturers. principal

veneer are you are XX of was at last as while, production the fairly at the much where which the think aware, in all able supply, have supply, I in is open quarter. during reasons quite hasn’t one So, prior little months. significantly we our market self-sufficient been already last it veneer we over But changed from the to least increase

Jesse Barone

going the color then what are are to see And around last QX? of me, Thanks. you Great. QX to add you kind for some BMD could in you one just guys mitigate compression doing over that margin

Kelly Hibbs

Yes.

adjustment principally into lumber, really had, valuation $XX inventory we and million and we did late over June. kind which of tipped the May to So yes, speak that’s

to of mitigate, taking selling. in terms us every as what’s mentioned, sacrifice not meantime. would not day service But long. forward and and market in going to view But get to Nate are doing the In to we’re the you, ahead customer try at we’re tell a looking what certainly I of we’re we buying

act, but we’re balancing make long. also if that you sure So of our too it’s customers’ servicing needs kind to getting will, not

a end moving prices lumber given still of second quarter. done something obviously with And what time have and we’re panels commodity on. forward, have of And we some since so as it’s spending lot exposure

Nate Jorgensen

market people go about just to that is thing And kind in when distribution one commodities, like become Jesse, services. comments think to Kelly’s dependent market risk in correction much tend a end to the terms that more you of will it’s of Maybe reward that’s add Nate. upon they’ll short.

railcars, of units instead or trucks So trucks. maybe buying it’s and

moving terms that still well of in kind through so of incredibly process. And the our business distribution supports

expect at time their customers wanting velocity the again, on to to managing least short based in risk and probably So, good for being. part we stay be

Jesse Barone

over. I Great. turn it Thanks, will

Nate Jorgensen

Jesse. Thanks,

Operator

Susan Maklari is next with Goldman from Our question Sachs.

Nate Jorgensen

Sue. Hi,

Charles Perron

was in residential considering half, if the wondering you This outlook the same DIY at share time the I like taking some perspective morning. I the good can on framing out this for the today. expect at demand. guess, first, to industry Thanks a back how for to early play outlook to point? in of participants sign demand. lumber We’ve on of would see lumber And Charles for environment in Hey, question. is you new strength I construction? the stabilization that we from heard the my second Perron go Sue in do

Nate Jorgensen

This side single-family kind elevated. you you think think think significantly as for overall, remains in of I And start And to builder strong. with, multifamily, the about things, look of confidence trends framing is to, consumption start. frame is the single-family I’ll the of example, terms remained when Nate. single-family I at higher. compared of materials with if starts has And

the builder front the So good think through the year. of I we single-family of what is here feel about in them balance and

perhaps finished And we momentum is so the largely a bit I and again, the active through feels remodel. remains correction upon environment I remodeler the based that the some as the Repair resources there time repair remodel, we professional still think believe on cycle. described spending steady and And do-it-yourselfer, of elsewhere. a as regaining think that’s like demand their again, We looks quarter. and stable. and It earlier,

builder. of and the single-family momentum think, we material just the look good I the and the, for the some with year, exists given quarter the strength a demand part, balance that feel in we as So large products and have, services we about that of environment at the framing and overall third

Kelly Hibbs

I’d supply Canada, Charles, in the maybe on in to some multiple producers been wildfires add more of is have disruptions side, point And there due that, Canada. Western that late to one has Western had

are constraints is And So supply events. takeaways pretty point, some on there recent new strong. pro the that is still contractors to res and Nate’s the

Charles Perron

wondering I That’s transportation predominantly, guess, for Got color. pressures, My is, very share details was if given But on impacts? should to How the also, can Thanks costs. additional what I helpful measures follow-up in these fiber side, inflationary you offset business the demand. it. the could that. on guess, your we these to implement impact I overall going forward? And you expect

Mike Brown

Charles, So to fiber address I Mike. this is the side. hope

right, log cost, significant So has but some geographically pressure there more it’s been on yes, based. you’re

tend some general year-over-year. a be which some set a linked in log or are significant the trailing you movement isolated if Southeastern hasn’t quite but a operations, product put And really costs, be to we’ve operations, been in in time. seen also, a use have to to not the up the they market certainly it spike, to settle month some might Northwest, in contracts There either a cases, disruption, or together really In our So Pacific cases, look to recent circumstances levels past, costs, partly there methodology of in extended the for our it back where an log we at log much – short-term as not over as specifically are some leads as in change pricing. period storm pricing price way that the to increase of they a historically. pricing quarter. future And seen a which some tend relates to really

that Pacific currently market a happens really depend while log in really the prices going And probably Northwest what least little side, costs. Jeff on then they business think I it’ll levels of I in Yes, bit a tends seeing log that longer. the for the to to in at as little lumber I’ll we’re be well. in maybe as to more the the at drive and had Transportation increases are speak So the transportation moment mean, a let certainly side costs. our

in vacation they maybe specifically, there change in in people made Nate and what going are the less trucking. were a in today on the some as that’s resulting network, they talking transportation ago of X with are comments demand, economy you, which have ago the is means months think than around just I stress moment a focus less the worse where I’m

would tariffs. to ago, the still trucks of we quite good but say elevated. rail So price have good. months rail of been really side, basis compared been has availability bit most but the relatively And I done and today X pricing because a really There on of on is availability is the the for contracted part general well as little a it’s very the pressure, as

they of You what published. because sort know are are they

So you – have know, significant do Jeff, you to a don’t want transportation component? I

Jeff Strom

to up. Jeff. and speak difficult only the freight, is that challenging, ocean add still is incredibly The rail this is the truck, expensive. the challenging But one spoke component incredibly I Charles, and and as is didn’t incredibly it’s that and that Mike on would difficult it’s on eased Mike and not

Charles Perron

I And on there. provide operation I investment assembly days? in, can comment same add you door and the the can update you if one the if color on demand seen appetite wondering an the last also appreciate time, distribution to Nashville given your strength was in your projects capacities on I the these we’ve that can squeeze and if Houston at ongoing in

Jeff Strom

door shop. again. I’ll in with that is Houston this start Certainly, Jeff

frame. but about of very of excited running and late, quarter. been days about end door Nashville, really It’s XX up long In And that the We’re should project. that this same a by that opportunity. time it’s has be the kind shop again,

that. an on nearing end We’re

to We next things in have be able we rolling should and occupancy XX certificate do, there. and a days our we start the then few little of to have about will

we’re excited about opportunities. So really both

can that add know And business it’s a we our to to add with. customers areas and and As It’s know – can that absolutely value for the we we look, we’re locations, door many to in. we’re a as we It’s something like looking well expand then it expanding, far energy better as we business fit that, far footprint said as are in. I there times, we like we’ve business, we there there. our existing we add right is expand our can services our service, a about lot add of in and customers that, have, facility products with. And and decrease areas cost we footprint our serve our now can or constantly to to where we better a then addition serve of across that we customers looking

Charles Perron

you. Thank

Nate Jorgensen

welcome. Thank you. are You

Operator

with comes question Reuben from next Garner The Benchmark. Your

Reuben Garner

Thank you. Good morning everybody.

Nate Jorgensen

morning, Reuben. Good

Reuben Garner

for margin I But a – right we’re double-digit X.X% low So, held floor as Is margin what I haven’t now. just there it’s over. guys and that seen absorb anything Or able the the seeing seen that’s end like something quarter, before an expect the were surprised other think BMD been. good was environment I’d months we’ve I any you a as there guess little else in you by low is of the panels third the happened the given or just margins for environment, started an first in roll strong in And of Was in quarter? appreciate give margins question, back through couple EBITDA price well, could plummeting know to strength lumber a to so the the lumber that Was the part gross lowest like for in in kind it. a to as in environment – BMD, that color of the of that like were half? the we the I quarter. pressure

Kelly Hibbs

Yes. No.

lumber. mean saw in in had months if to some right, weakness your start in margins, margins of couple certainly to with You saw. pretty I given and first and the some outsized specifically I we will, we quarter June, described the commodity you the second on it and you’re commodities strength Reuben, that guess we pricing, then well,

that EWP, And – but strength of I business so the and on those is lines. also you the continue profile to like – product we and good, that line remind would general we margin

framed you – in how have I Reuben, up. it so described pretty so we it So of yes, terms would well,

of third QX, expect third downdraft terms that we in levels quarter we products given of signaled the pricing. hit when Now XXXX quarter strong forward report to XXXX, do going just in into we’ve commodity not

X.X% what to some kind more to yes, of been to say normalized I so more would for a X.X% And a referenced more a we is been historically kind that – you of margins EBITDA rate when around to back get history has X% us. of X% is

So BMD’s the in quarter. get to margin we depend go. influences commodity some squeeze from on more commodity levelization upon will results pressure we’re we point, is it’s more we third be all prices where there which had see here And panels and lumber going today, finding to side, as do and how the that find into or maybe

might third to until pricing. hard really products end it’s commodity through predict So get where up the we XXXX quarter we on quarter visibility more

Reuben Garner

this like us the what prices. mean get as that’s assume quarter? the there if bad of of don’t Can data – gross tell for I margin any follow-up, know way? maybe it I it of month first the Kelly, I can I have you and ask you look third even falling terms this Is could in as in front you, but

Kelly Hibbs

Yes.

But margins products the pricing. given closed books gross July the not you, have certainly commodity would Reuben. We yes, yet, on tell were constrained July I

Reuben Garner

Got a to would cycle, like that if and were instead level? line? X.X% earlier $XXX than looks lumber higher normal leverage lead the right a it. X% profile would that to in the that more normalizes panel on EBITDA the sort EBITDA a of may $XXX margin they the of SG&A around normal change $XXX, line way to is think and the In assume – And higher prices lumber what that of at longer it? to say, that about other margin, does bit folks words, be term, the still business EBITDA margin higher then – And that if would

Kelly Hibbs

Yes.

stable to level pricing, of I’d ways, So percentage, mix composite if – to normalized the a a gross couple get panel Reuben terms commodity, in or we that level guess answer margin terms in more of more and in kind get we what of normal a would in I of of lumber right, a lumber different compared But I direct our normal environment. XX% at percentage EWP. on $XXX expense still I $XXX, margin yes, get – would be. would line general we operating to you’re yes, normal leverage of you profile is sort towards terms if in gross some that a would XX.X% and to

Reuben Garner

Got more sneak in. to it. going I’m And one

guess, help commodity the capital, the more working how the to in on any back flow of declining and just think I year about half Given broadly? cash environment,

Kelly Hibbs

Yes.

So maybe to speak business. the I’ll distribution predominantly

just into as some started business So has half be as to of the seasonal we commodity we us later to due off. the year, come distribution capital thoughtful well have. then we’ve back into it we then specifically, as product prices mitigate get receivables, And will back receivables see working the as typically speak get as off as come the tail as as manage seasonal demand the to as this would just trying inventory down that to business, certainly that third into bit some the here off well little a to get we exposure as I’ll normal we tails come have to year. you’ll inventories And relative quarter,

Nate Jorgensen

Reuben, Nate. it’s Hey,

well. thing described Kelly one other to Just think it add is, I

continue like for we and as we that about are prepare areas and think general move to of as think EWP inventory to on BMD we’d grow I the those forward specifically, line XXXX. add

described, line our terms and as both So finish service we prepare year. in next for customers to of we in got this proposition right have Kelly of of important and our the part in terms inventory make sure a I think EWP as desire general really to year refinement, But the footprint commodity-based. largely

Reuben Garner

move of results, to Perfect. guys half the luck year. as good Congrats on the and we back strong the

Kelly Hibbs

Reuben. Thanks,

Operator

question America. [Operator is with Staphos of Instructions] George Bank Your next from

Kelly Hibbs

George. Hi,

George Staphos

I thought it anyway. the on the when was Congratulations a I saw morning. good quarter. press typo release, Hi,

Nate Jorgensen

Thanks, George.

George Staphos

are guys, Anything this. Products? on that there to to guarantees maybe the All the extents where it’s So we Or difficult, have a adding we of to would here $XXX the you gave first Wood you XQ? So to guess where you the in are very don’t in terms recognizing about than right the extent trying currently BMD. it. today be way to your operating wood wood plywood with you And now, X stayed little curtailments, lower has I be? pricing share could thing, Slide and no guidance We Should look wouldn’t some on guardrails establish that talk sit good. and that us then I on anything might in hold at the some you could know, us start. you comment, as they average bit that for price XQ? where can any as quantify $XXX, rolling instructive

Mike Brown

of if very need the million We on a it down a X a numbers, you if and which might of typo. at because depending that right? one. means sort average general I like George. we for the know we It’s at we you less, you some The Thanks week, mill, as are That’s them will usually, because curtailment if take it sort five a yet, out like in an specify that Yes, a you to rough – George, look know I’m schedule would less way about the for and comment if this we generally nitty-gritty you down first probably start mills plywood this, haven’t produce. we the But then of we yet. wood would some have of week using are I’ll as sort where be can higher announcement when about of the feet So think see the really guidance. do is rough to an our sure of of haven’t at this, have time. stab mills we got to taken Mike. one outage them like this, of

Some sort a guide, okay. general than that’s smaller, and of but of much that real larger mills are our some are

George Staphos

I Mike. that. appreciate great, That’s

Kelly Hibbs

the Yes, plywood question on thanks, sure. pricing, Mike. then forward And

to alluded of the pricing we mean, July I averages. files. order of QX ahead So in because actually our script, that was length George, slightly of the That was

September. question becomes, And about what so yes, and okay, then you think do the August

at of So the you’ve come quarter. end the second from we were off prices. seen they a random the And have where certainly, lot

Southern would to against historically I kind composite towards of steer between to our so have And of right those the compared you the directionally, in composite – XX-XX and bump of Western predict middle guess, would and is come of code that kind get we’re of hard the just it in out. the we realizations how would what typically kind kind metrics up how now. now you ZIP it’s right – the probably really storm yes, on we’re It’s the right right because of

George Staphos

Understood, Kelly. And I about July, sorry, do that now remember that that you said I missed earlier.

you assume of at quarter there? lumber So you’re your that, key assumptions, adjust levels terms BMD up, holding on? as should is needed that goes to in as thank the could but pricing we in us us the help these EWP the give commodities? What’s guidance, going across again, what and anything are else providing Obviously, you perhaps forward? assumptions With for built assuming goes

Nate Jorgensen

George, it’s Nate.

to I’ll start and you – think maybe me Let try I EWP. with general – line both if

be think I pricing strong. and both volumes will

the think for I products. two important So those very of the that framework obviously sets kind

when anything point, lumber, or at view In kind stabilized of it’s commodities, the in assuming different two the I side. stories maybe of found the the is, near being I And from think you we’re think plywood, at think on dramatic on perhaps this bottom. not, I tale lumber here, look probably have but there. the

has more think construction. much I to tied so single-family OSB

look as any plywood. maybe will maybe provide we’re the of additional lumber a kind as different change, on to little that context – really compared described, to So right perhaps and it’s of hard But feel that and of Kelly in that. kind middle bit

a about that happening. to to solution As we earlier, BMD again, are what’s And end. still as in feel good of George, as relevant I manage looking risk, they the customers commodities, takeaway mentioned their terms

think perhaps It’s middle through continues I and on a think to we’re Again, panels, it we’re through in just relative So correction. of lumber. of it flow. to volume other kind the and largely of of matter this the I side getting the

George Staphos

a I’ll activity do inventories and Are from to products? commodity are pretty trade over. extent we with sense you people it that in on the in Are this, that To the coming right are obviously into have good you any now and turn average? getting think you are one, where a now that window box Last below average, good through rebuild. luck some a similarly, pull bit And perhaps the channel and seeing time might the big from precautionary you guys it little DIY pricing retailers? quarter. a of Thanks more at sense stabilized. good the And has in be a standpoint, above

Jeff Strom

Jeff. that George, I’ll just start with this this. is

On universal the are thing lean, the everywhere. and the – that’s two, the general they on into line and channel, across inventories a very EWP breaking side,

is, from On a mixed bag. all what locations heard is the side, really it commodity the we’ve

is to hear to they You inventory And have then them once that move lean there some poised the accounts going – there. two need everybody a that with though, that are that the are and to coming the incredible still Nate you find very heavy fundamentals and trading some buy. is Once then that you have is off be mentioned, from level. do-it-yourself, on types we different over demand as are

those is homeowner, to and vast. into products very have have different of the and you remodel You do-it-yourself person, the repair sell variety markets person we the that

very takeaway and is still commodity products is that is of general So do-it-yourself person. we’re but for the the strong, – hearing EWP on but more side, on still strong. business There us, the

George Staphos

Jeff. Thanks,

Operator

time, questions. And at there no this are

Kelly Hibbs

talking interest, to Thank We forward and next Okay. appreciate to we look you you. quarter. your

Operator

concludes This conference. today’s

You disconnect. may now

Boise Cascade (BCC) 4 Aug 212021 Q2 Earnings call transcript