BCC - Earnings call 3 2023 | Boise Cascade Company

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Operator

Good morning. My name is Chris, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascade's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] It is now my pleasure to introduce you to Kelly Hibbs, Senior Vice President, CFO and Treasurer of Boise Cascade. Mr. your begin may you conference. Hibbs,

Kelly Hibbs

and Thank like Earnings everyone. Update. would morning, welcome you, Call you Business XXXX Chris, to Quarter to I Third good Boise and Cascade's

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

with these the Turning to warning forward-looking will that slides in associated to income press our call in statements the and statements. over presentation now regarding forward-looking note EBITDA EBITDA please from will our Slide the call contain X, segment reconciliations statements. Also, the our and with Nate. appendix GAAP filings release, to and risks to I the this the includes segment EBITDA. Please SEC net on income turn adjusted review

Nathan Jorgensen

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

quarter third consolidated XX% XXXX. were billion quarter Our third of from sales down $X.X

income net was million net quarter. per $XXX.X multifamily X%, year $X.XX housing per in Total prior or $X.XX driven of U.S. ago decrease to quarter. starts or year the income Our housing in a share declined compared to $XXX.X by share compared million

X% of uncertainties. However, want solid loyalty economic we to the starts focus, work increase in continued our ongoing hard associates XXXX. Both thank continue navigate to and to as single-family and period financial our housing same delivered again I to businesses compared operating results. for their

their completed the team announced, we BROSCO Cascade. I'm to As of outstanding recently and pleased to Boise acquisition welcome

provide provide before discuss detail, acquisition capital through our more our after BROSCO transaction an the your Kelly? results, of walk results. Kelly we on in which financial will this details additional questions. financial our the now outlook I'll allocation update on provide our take following will We and segment discussion

Kelly Hibbs

plywood million of The in million, Products Products quarter EBITDA sales down segment quarter, EBITDA of was $XXX.X million volumes. to segment our BMD's EWP volumes. These to segment and distribution by sales in Wood including $XXX.X comparison. fiber the lower higher were reported Nate. third quarter revenue decrease XXXX. quarter. across quarter EBITDA decreases third XX% and were XXXX. sales the plywood Wood ago sales million compared impacted reported in partially third pricing year-over-year negatively $XXX.X billion, the well $XXX.X costs in to down you, lower Thank as product primarily in LVL from year BMD prices due wood sales were sales $X.X lower offset lines from Lower as

during third However, by The EBITDA quarter. BMD's a $XX.X segment segment gross strong the profit in the segment the quarter gross was EBITDA of quarter. BMD in decline third of $XXX.X again $XXX.X reported million EBITDA million. and year were in decrease prior to EBITDA margins of million margin driven compared

$X distribution addition, expenses and million. increased In selling

I-joists On X%, basis, X%, On X. basis, Slide X%. to and I-joist X% and LVL for Moving down and volumes Sequential LVL third X% volumes flat, a a sequential while quarter was LVL were and volumes for increased year-over-year respectively. for by down I-joists pricing respectively. for were

lead consistent demand quarter base XXXX. to in and in times to a Wood Our strong testament ability our customer stronger-than-expected team to and great volumes their the respond third are to our Products

construction levels activity. the expected the modestly third of slowdown indicative volumes quarter, our fourth below quarter declines average to forward October in Looking files are monthly recent order seasonal with in

declines expect meaningful pricing, but such, EWP increases. fourth fourth sequential quarter. in price we On modest currently expect quarter, sequential As declines the volume year-over-year in would we single-digit

X. Slide to Turning

was feet in Wood volumes sales compared million plywood XXXX. to Products quarter third XXX third in XXX feet Our million quarter

Thus our to Chapman acquisition impacted replace also third incremental volumes facility. volumes The quarter XX% our and plywood downtime the including at from are modestly opportunities, average. per Havana by in were X% average $XXX quarter price third Chester, was above sequentially. to realizations related negatively quarter, the sales the quarter of plywood dryer the in XXXX plywood sale up year team down South was sales price and effective in taken Carolina Our the finding far mills. Prior an net third of existing fourth X,XXX market plywood

Moving to were of respectively. volume X. quarter price and Slide XX% down BMD $X.X By sales and from sales and XXXX, driven sales X%, third third quarter product X decreases billion, by XX% dollars line, decreased line third compared same decreased last X%, quarter million of in decreased XX%. Gross product commodity General sales and decreased quarter with by XX%. sales the sales EWP $XX.X year. margin

margin price expected, environment of in dollars principal the results. driver negatively with lower EWP of of margins the declining impact impacting were the decline a instead As on rising a

basis and However, down experienced thus in XX during pace XXXX. BMD's XXXX sales third gross X.X% EBITDA the XX BMD's approximately fourth overall only that avoided in XXXX XX.X% the strong sequentially. year points quarter. impacts declining the the below for environment from points down averages down in the weaker at far sales reported quarter, held basis quarter commodity daily was X.X% from a third we quarter is XX.X%, quarter ago negative as from seasonally pricing margin we percentage BMD or reported in X% margin

we However, the channel as most XXXX across supply positioned clear management, lines. for view product in a inventory with in and inventory a appropriately industry focus chain, restored the

costs as potential when decline, indicated price look margins degradation from last fourth anticipate margin and fourth to takeaways of product BROSCO fixed remain expect and resulting events strong customers of gross market with to volume quarter, the risk. We erosion. on price in as as from expected deleveraging of the manage to lower inventory And the reliance align acquisition-related EBITDA is costs before, distribution sales activity year. to X-step destocking we quarter we'd opposed such, generally As have

XX. trajectory XXXX for compared quarter. slides and panel These the generally X quarter Slides to year pricing environment the pricing the Moving and stable during prior downward during with third show lumber

to we during capital capacity base. I'm nine price our a ended and months with Southeast now City XXXX, on with future hand customer our of in our Slide BMD. approach our the $XX purchase million continue including projects Kansas Products we on Wood million shops to inventory support is million and $XX center of had volatility in While Wood XX, XX. and execution BMD, September likely, maintain of of multiyear continues, the progress spending $XX spending in door Palm of We the will Denver having Florida. to organic In U.S. distribution growth in Products, our Beach, In West expansion expenditures

spending full Our $XXX capital is to million $XXX range expected XXXX now million. year for

of -- projects a and have ahead $XXX towards additional for projects good growth of XXXX, capital maintenance, expect announced also it plans but to resilience expect finalize We million previously exceed mix to growth our us. have it yet we work be completion would to spending of would and as

in approved special per and Speaking quarterly months dividends million. regular to to XXXX a quarter of per ended will the Including $XXX XX, full approximately share And XXXX. Board fourth nine dividends paid returns, during dividend million amounts, a shareholders be $X.XX dividend. shareholder our we Directors last September special expected share and $XXX year $X week, the

capital unchanged. remains under In million is we have addition, very which approximately are In our to summary, balance our sheet share and for repurchases our available to program. another manner X shareholders, share allocation and strong, repurchase approach our repurchase cash can shares in we return

that We repurchases. fixed business opportunistically committed our capital dividends dividend to pursue our appropriate and aligns and to strategy, as with to invest return cycle our in or continue existing base through the asset shareholders via organic will share remain M&A special additional growth projects

Turning to Slide XX.

doors, including price cash working We purchase transaction with and million, for distribution our We to Northeast. X mix, and nice are to with moldings, estimated line these respectively. Along outlook. price and of Portland, over exterior million to and of LTM and $XXX completed the Hatfield, Nate in a September hand. customer revenue other purchase business capital BROSCO legacy able on I The our acquisition we product acquisition enhancement BMD's also products. discuss with offer are back EBITDA to addition turn the million, are centers approximately $XX to products the these provides of stair in included closing million. Northeast parts the a $XXX will base BROSCO's product two facilities of general windows, pleased have to immediate Maine offering of us of $XX The be the on October line general scale at railings, offer it full-scale expanded to and funded an Massachusetts in excited and interior

Nathan Jorgensen

Thanks, I'm Kelly. on Slide #XX.

the starts of for as home consumers decreases. Our housing rates X.X higher current U.S. million Bureau. been reported in Census XXXX Throughout challenge XXXX are U.S. units estimates a for price affordability and limited XXXX, has actual housing by X.XX with mortgage compared million home given starts

also affordability rates including XXXX. housing have in which demand sale of construction sizes, price home X.X near-term given the and than ways, XXXX, to mortgage comparable home in fewer home million residential a anticipated. Homebuilders economy stronger and low single homebuyers forecast the affordability demand multifamily continue for However, for levels has various Consensus escalating existing resilient generally million and rate to units, mortgage for new are U.S. to from uncertainties, starts buydowns. Economic incentives expected challenges facing X.X range been is environment. and to influence inventory amenities, smaller addressed

industry low to new for their supported remodeling negatively uncertainties, and spending be long-term U.S. continue strong residential forecasts uncertainty by project residences. Despite in homeowners trends, the in stock. economic demand drivers near-term Regarding improvement spending, home further inventory these moderation also repair and home the renovation investment growth continued believe and of and may age construction housing impact we year-over-year demographic favorable, activity

focused the company. and of As to clearly investments such, will conviction great we strategies our on our around execution grow remain the have

and our the early my associates all acquired keeping sharp Lastly, the related a this Boise associates and I BROSCO express We any gratitude for welcome the customers including newest throughout I'm at support focus want would you continued to very our facilities. organization, Chris, for of pleased phone please to effectively. Thank interest the We're would with joining on efforts newly safely BROSCO. integration to in time. and questions at us and our open lines. working your you today Cascade.

Operator

Our Susan of come question will first from [Operator Maklari Instructions] GS.

Susan Maklari

of bit gave are start little of talk move R&R that re-acceleration the the end we that pace terms demand environment. new seeing think color stays that your in this the appreciate prepared saw flowing question business through thinking I in I the is talking the ability markets, can and I start that year. guess I we're my you a you you how about divergence remarks. construction capture a current in first about through to while your we the guess, But the about as fairly home resilient. And bit

Nathan Jorgensen

Yes.

maybe think on pace good then our repair and I home it's Sue, just in the new and still of repair remodel activity, also -- business. see we and sales. So terms the today, remodel

speaks it things, me, think so that I supporting steady. importance distribution the terms X-step And that really I to a of -- couple in remains to of And marketplace. activity think of that including

Obviously, in So about we on the have we that marketplace. we supply have kind that the of good feel support business. that of And the alignment that of business. again, with the relationships side pace

the be distribution again, kind remodel of for in would prepared So new terms on pretty is, home Products the to maybe the kind team the in pace the item me, would demonstrated resiliency team and say, team consistency that and of probably I that key and good. repair XXXX. of Wood demonstrated the remains construction

the What of some staying recurring we frankly backdrop and business prepare we -- together. making XXXX, you support a pace to the working terms upside. And think marketplace upside our planning housing be terms teams that production we that kind I with there marketplace both the surprised that. put sure important with really sure a had associated should putting to that the early levels think we inventory capacity of are? we was, think decisions close risk same our Kelly, the positions were work as and clarity and I marketplace made plans on make or think effective and closely and at of remodel? were -- what and we have base would on were in serve add great the to surprise and an in and anything customer their We thoughtful we're downside have just to about we'll that I of Su diligence

Kelly Hibbs

happy to, Nate. Yes,

it guess and builders to still I Su, new bullish, I relatively single continue close national to and and with out their are position the they starting to single-family. first. increase like land you're want very So And maybe the homebuilders seems know, build

concerns a So could there as pause, single-family 'XX. around actually that, bit that bigger does flat to how be is seems a for oversupply. more plays of driver 'XX out. On know, to potentially a that be to us. up We'll somewhat seem And be to financing multifamily, see there that new you year-over-year, and

spending relates those a typically R&R to think I in bit, equity that we homes. of terms think held existing this fair people sales that as a R&R In R&R, of speaks are purchased But know, a as amenities yet think they all maybe up homes bit down a of year. the which we didn't they has And two their it to they have have quite and ago a I amount the of fact or good wanted. year home maybe fair

And so because a of little dynamic. there maybe spending we're bit R&R seeing that more

Susan Maklari

I product should as acquisition? Good prices margins with encouraging. that. to those And implications hear we how turning the Any moving guess BROSCO any margins of lower. a on to could And about in conversation kind consider maybe too, bit. wood thoughts world BMD we That's the BMD a from be where that think the

Kelly Hibbs

Yes.

And so in guess, certainly see compression those expect seasonally, we to to alluded not able our costs. fixed and to to as as some come here, leverage points, down we're speaking quarter fourth our I we third sales

we executing have strategy acquisition. make good what terms really product able would about to profile. of our and So BROSCO feel quite volatile some last we're what's is, to been margin is there. said a couple we And which mix been and deleveraging has in margin that do like to things the we'll have years their of profile include a richer But what that BMD higher upon

Susan Maklari

squeeze me is a investments initiatives, the which City, strategic Kansas acquisition the Florida in of door that Denver, mentioned in, one shops let you your more ongoing And the in you in Okay. closed. lot and

how progressing? on further those details update any there? are any And Just

Kelly Hibbs

Yes.

plan things. have expect balance a we us the of we XXXX, then So working spending this a a amount still again, good capital but of have, pretty year. pretty of we're in And in of to ahead sizable number

detail speak at XXXX to any in won't we So this point.

for in a bought did We in which market, West BMD, yes, Beach. new center great. But quarter, distribution expands we presence that fourth we the that got the is which our example, announce there, in Palm

the yet, soon. we up in forever landed door but And ago. on or quarter. We rolling here running then not the shop. will continue to build Marion, we hope two out relocation close It's started that and it we're stock completing chasing quite We're here year Ohio Denver fourth get the be a that to

of South those ground terms Those -- get to those Hondo, of a a the of sites couple In bit projects time pieces takes bare other and bought big other greenfields. Carolina. in being BMD Texas prepared. Walterboro, it of We and fair were

us a we be while fair of those. to have So yet And on up. spending a ahead of those will still come bit

in uncommon, some we slower stuff and a this In quarter. terms holiday terms advantage those fairly here the this have say would fourth in year, periods, in that's to course that's of seasonally again, hefty I random And like periods pretty we not projects, balance take and some products, do spend When we some stackers complete wood of some of West. the capital to normal expect again of right? times that

Chapman relatively some We've City, For in do mass bit -- -- which small little able is line, in a White on spending fair to in that part of of MVP. of again, And of got the a then Oregon. being maintenance That's quarter. it just Veneer. bit fourth put that's -- and our timber lot terms here project a great. in veneer of a capacity to PLV capture expansion

stop I'll there, Su. So

Operator

of from The D.A. Kurt Davidson. question come next Yinger will

Kurt Yinger

see anything I X%. XXXX, to of on decent and prices good prices margin demand normalized. on I volumes EBITDA Susan's margins. above is Thanks, to some But question segment that right. potential bit. a kind a profile? wanted to largely deleveraging, material a and as have I fixed you that nicely look off softer still just follow commodity risk there for EWP BMD absent you cost as come environment mean morning, guess up everyone. All a moderated maybe the today margin amount,

Kelly Hibbs

I price the commodities, could in risks, risk And modest here line general across seeing hit and mean you then your through flow there. that price volumes some EWP. we're across I and think Kurt, demands always comments around in on Yes. material risk there's

an So comment I guess, Nate here. has additional

Nathan Jorgensen

Nate. it's Kurt, Yes,

its other maybe thing that in to Just year. way early the and next is we think remarks continues the the it's is, year-end, described as in think a marketplace work about to as our opening I channel through

I think of continues dependence support the high. importance be on to out the warehouse of

pieces. packs unit and job So business

for a that as compared for think So segment those higher margin and about direct. of generally to as -- services the profile EBITDA you bit are little margin

So about well And is obviously, warehouse that that given the direct other that's We to we're obviously. at support mix of to we're think component component where this positioned seasonality, probably I warehouse. that. both, like time of of and strengthens to versus think year, out

Kurt Yinger

Got countercyclical warehouse do more out weaker those people great on think and of managing and in guys to that's mix, that's feeling almost closely you environment, kind of is you requirement. where versus relying more about of end a markets the it. And that a inventories less are

actually kind on in be tail side? So the -- a margin softer maybe demand tailwind continues of backdrop, a to a a that's

Nathan Jorgensen

so. I Yes, think

I well. think you said it

a services. Generally, Probably some both we -- I and think on think margin customers excited upon general for say realizations demand I of new the growth remains partners they that the of line us component opportunity, supported units we're And bit new job other think, we're I think that risk distribution in on in people especially of SKUs. transition as from X-step truckload kind look high. I is think, largely our based pieces well dependence and again on products represents, people think about, a wanting and I direct the getting opportunity to of basis. of again, as versus importance is that at reward, packs as served be pricing, and very a and and that about on -- of terms a there's terms introduce

Kurt Yinger

Got it.

you where Okay. And amount log year? headwind coming a this do QX? flow So And products prices? items then cost of kind could next as together seen going see on mean costs But OSB higher Western set how just a web imagine the stage I of through. those pressure also be we've I at in prices bit on fair into that a least you does wood stock of at up side,

Dean Brown

Yes. Kurt, it's Mike.

So stock I around our think I've XX-week rolling finished use think a as web product costs. basis. We you're And web cost I the previously, stock correct the into on way average. is not mentioned a spot we

some to on buffering So every week. occur that and see indices there's the downs you that the ups

So not time, bit clearly, trend is if of tremendous up, an it's impact, a over then the is impact but a there immediately.

some recent the and of the we're now availability down, downs of terms speaking, to profile in issue flat. ups and that relates year, log a to in a data. I else. United of you in on of general logs. it to it's way the that been the in sort say can geographical anything Pacific cost our more position would end I that's generally As flat we've Southeastern I see And say than of the tend then good that in States and log had very the times, costs, is think Between in would Northwest,

at about particularly federal of concerned general more same that. pressure availability, from has a been not the lands. lack there because of But time, we're So the in bit

looks I'll a to able be as to the to put logs so industry And itself position say have available. in

in the our guess, the at pricing. West. I And increases log dollars average linked year, you're for to the have be of But quarterly that on at any We've costs And bit in you, over the term, should log higher extra I very come buying on costs spent that some remind least are would between massive case, of that log longer a now moment, see finished down. product think and well end coming few logs the don't costs than see you I a a available basis. our the aware we

has the has now of And assisted do I that the so so continue and that given where to and certainly end particularly between suspect. gone, would, year, we'll I us

Operator

question come Mamtora Next BMO. from will Ketan of

Ketan Mamtora

some of the on are the us and how give of which you in you understand kind levels order books of change sense noticed activity of can QX. sort side question, But any in the books? First of component, your seasonal of we your terms just slows have order EWP outside sort

Dean Brown

Yes, have question. a about words the few for Ketan, Thanks that. I

which very important. So in a I calendar speaking, about the the generally the we we to order, everybody see end single-family forget construction. to that of relates realizes files on the just I'm normally seasonality, call year, yes, is that if as construction, particularly order sure get as decline

of have files we quite I both of terms terms veneer ourselves to meet inventory put around how manufacturing to also in having comments order demand, on this Our been and Nate And strong. in think earlier really in cluster position the available. referred people ground his a and in

relatively our to files like And our they're is strong do were are come to they, speaking, not orders while as three as way customer ago, like base order in. strong be strong. as as ship to months today that quite So we not able perhaps we the quickly manage quite when the still they are

that, things to summarize than they three orders I'd they some today. yes, the still been strong I good but that much So relative other were more are considered, months not think challenging quite it ago, as all have times as saying are they're

Ketan Mamtora

the that area years? expanded learned expect on further to as of Understood. at helpful. you of you the business, you of sort you've the kind to that the side switching as several of sort talk side we the sorry. of business? an side to the where millwork sort a over Is what what look then growth opportunity. acquisition, made next And BROSCO trends, door, should have you've guys this of lot progress Can windows, of No, of side I'm the on BMD the And growing that's and

Jeff Strom

do the Keith, the and we've with with good fits same that we've done It right past learnings we're we've serving we lot doing. we're tell customers what now. this some for a It's a customers. in We've business you would our take and one, I learned learn. we gotten is what lot gone opened, each Jeff. improve better in as each a us. It's currently one,

so we're forward And continuing with to it. move

system. can the BROSCO I of With tell acquisition, there's in them go. short of the future a the to It's in do actively and that you the know tell a enjoy and been processes we're for roll I do? learnings have we of place you want lot across more a from then in We They've we our millwork we looking. business time, know good still that And some can we just them. it, of it, what there's they period business, a can long time. take to

Ketan Mamtora

by would more would it. that let's normalized? activity, that say that? consider say, look quarters? as last characterize or I kind still Got performance, Or three helped And at How four would you of the then LTM just you you elevated was when the

Kelly Hibbs

Yes.

reasonable a we of line through some existing some them where customers served customers we at representation feel run-up to be they time, be that's their the going opportunity recently, run a that's would bit our Jeff of more as terms that we're we pretty what more rate normalized have just we said, to of And fair to products we then more of start but but like from. excited also a pricing, not some a well. full of and think have BROSCO, -- like previously, rundown in offer can pretty will us, as about experienced I little think there's products not same can offer

and about So BROSCO that, the team at really good. we're excited is

So there. we're excited

Operator

Michael will from question next Our Truist come Securities. Roxland of

Michael Roxland

had you on good your higher products margins Just maintaining you mentioned than historically. last guys call,

number more You referenced upgrades than and replacements decade that ongoing have that a you a for of now. been

targeting margin So that as the business what's dryers, you in over profile, ultimately what cetera, you're deploy frame? pressers, for the terms and of continue time et margin new to

Kelly Hibbs

Yes.

we're would yes, So the quarter. business is I tell margin I had targeting from EBITDA that question you last forward. that in mid-double-digit going And

right? your referenced to but some don't spending necessarily of they LUCs, the certainly aren't customers. maintenance, presses, things. of profile, Those you of support frankly, those sustain the is, Dryers, And -- those -- increase that sorts your some capabilities

And strategy the number of nice the we've so focusing is of business last job as done I years, playing hoped. think out a that and we really over

Michael Roxland

it. Got

quick We're digit. follow-up. one Just mid-double saying

You saw a about about Or if and XX%, type that XX% frame? go-forward think how on is EBITDA so, the Or you margins XXXX? time -- XXXX, do basis?

Kelly Hibbs

No, was I 'XXs, Mike. thinking I mid-teens. speaking in wasn't the the

Michael Roxland

okay. Mid-teens,

Kelly Hibbs

today we're as And above that you've seen.

Michael Roxland

longer And it. Got share just have any any lumber penetration share shift construction, weaker question where regained single-family lumber? prices in the EWP home one quick today? prices on Expecting to given EWP. back Given those are trending

Dean Brown

Yes. this Mike. is Mike,

other the I honest. a one or to be shift sure been way would not there's I'm So say

to that I EWP products. It anything to shift one versus as sees necessarily another lumber as wood do to approach or is of engineered that that a general much not building combination else. particular the lot availability of in have with caters think way can

EWP all would the, over movement preceding when used you or little a be the there's great saw as Yes, but allocation. it generally in of bit, of lumber I and years something think, few think, on not can else when available, to any EWP speaking, of slippage lumber, place of seen EWP nothing we or was have happens I say, EWP. was that that's So magnitude. But

construction speed quality, that the brings EWP one to relative availability other of it obviously the and consistency is and Our for largest is products and story lumber.

Nathan Jorgensen

And Mike, maybe just to add comments. to Mike's

site. reduction point, the speedy time construction. just The for cycle think not on his I on about really think homebuilders pushing when last you the are job

trend And that answer cycle. Mike in terms will head there is out of that in and important so the about into described, feel as of we we to of good And very the EWP and taking time that. continuing EWP really XXXX as opportunity much construction part role a continue play

Operator

will Inc. America of from come George Staphos of question Bank Securities, next Our

George Staphos

try I'll you and some keep and may have your joining think One, extend you to Sorry, about lead EWP talked quick. similar for covered covered so point, their peers you business. the related some Have I late, a might your of times of phenomenon have discussion. this in already. have it this seen

laminated be In EWP. for terms in Mike, At construction. to? momentum in single-family would that trusses as else juncture, already, -- we your you perhaps terms share need back seeing you're EWP just Are this open is price erosion versus you that gaining seasonal? seeing something last web Or in that see further the question discussed and And of of any this some I-joist share? lumber you seeing Or that then you're there? to for is matter, where of erosion just me, there the or looking

Dean Brown

there, the Thanks Yes. for questions George.

have Let comments colleagues these. at here. my stab additional there'll from Maybe a me be

our building building lead was say, just positioned primarily out small way relatively And the due to over season. moved the times, ourselves we the I'd amount coming a So season. into that

so inventory good and on we had employed. we rates. had And a kept lot And of the people we operating ground,

anybody in as to were we able the meet so well or I'll else this in say, particular than demand, upswing And better sector.

And manufacturers. good you extensions see other maybe still we're the to So position. we are from didn't referring in a that

and all, well quite continues very in So strategy I work all think well. our to worked

or You not question price seasonality the had around this. and erosion a of

So really seasonal think I se. per issue don't it's a

around presents I specific as a commodity have in think opportunity follow certain that at nature. market-related EWP does attention aware, seasonality But that when there is doesn't an really what the doesn't we I'm you're require of specific and it's times sure certainly sort a markets because BMD have pricing more itself, is. discussions that locations cyclical like

going see movement we think truss I open point, low that certainly forward, we than might anything but very question. more as to that. The of sort web modest Kelly's single-digit don't So see yes, very,

it to think I So fair that of to open saw would that some was the of be EWP, say momentum truss lack of due I-joist. availability a specifically web

Okay.

it large again, aware, I-joist to are so And quantities you're I'm produce available. large and and a we continue have we producer very of sure we

capacity. I orientated the have at additional to of quite terms moment positive anything, sales availability. We're we nationally actually if garner think our for us in the So the is because opportunity

web open more months they any see don't than threat being I trusses of were so X ago. And

maybe think about less fact, I it. when In

George Staphos

I'll comment one make the call in higher? Mike, inflecting EWP wanted when that the worries, start over. on turn to Did it we pricing but And no you you one record. sure on and got just you if the quickly, on last to haven't, expect

Kelly Hibbs

sequentially comment We Yes. we expect forward erosion. beyond modest is what George, quarter, didn't price fourth in the which

Operator

Kurt And Yinger D.A. Davidson. of from we a have follow-up

Kurt Yinger

Just capital two quick ones on allocation.

can of component Kelly, kind the million this is you what go-forward versus this remind $XXX CapEx year? more First, the at within for guide maintenance stage us discretionary

Kelly Hibbs

Yes. Sure, Kurt.

in normalized we're we a of million, think range kind given going our we of to be of before but the opportunities moderate terms probably I us. good growth given some to years in $XXX level, spend, or a So have few we down expect that probably that think it's of take, to give ahead

Kurt Yinger

is Got it. BMD? and And Products that evenly Wood pretty between split

Kelly Hibbs

kind normalize. No. of it's bit BMD little say once it we probably a I'd Wood than to is heavier Products

Kurt Yinger

I need that a mean, little at you priorities? change lastly, to Does of just here Great. appetite would and bit. And terms the for to activity your all share then around move back stock that see up in repurchase maybe has what allocation Okay. capital pulled

Kelly Hibbs

Yes. No, question. good

repurchases think capital is restrictions it all our this, which are I'll have many allocation Kurt, for still we there's options. So on -- much stock you And as toolkit repurchases. stock times where like in you very hit I know,

transactions you're transactions, to fortunately, years. in able If several evaluating we've couple been of last the and do nice

times. restricted set opportunity at our somewhat So has been

there's point guess, assuming at restrictions. and I so no And this

We attractive that capital opportunities. so, as at view our will to cash doing other an buy time allocation that we shares. If relative being

Operator

the closing no for see now I remarks. to Jorgensen to back Nate in would conference queue. turn questions I the like further

Nathan Jorgensen

update, appreciate that, on We the Thank safe and everyone Chris. please for call you. morning the this thank us joining interest for your and and well. With Cascade. support be of Boise Thanks, you continued be

Operator

call. This all Thank concludes today's you participating. for conference

disconnect, You and pleasant may day. now have a

Boise Cascade (BCC) 31 Oct 232023 Q3 Earnings call transcript