Loading...
•
Mar 31, 2020
Boise Cascade Q1 2020 Earnings Report
Reported strong first quarter results despite COVID-19 uncertainties, with focus on associate safety and business continuity.
Key Takeaways
Boise Cascade reported a net income of $12.2 million, or $0.31 per share, on sales of $1.2 billion for the first quarter ended March 31, 2020. The results include pre-tax accelerated depreciation and other curtailment related costs of $15.0 million and $1.7 million respectively, due to the permanent curtailment of I-joist production at the Roxboro, North Carolina, facility.
First quarter net income was $12.2 million, or $0.31 per share.
Sales for the first quarter were $1.2 billion.
Wood Products sales increased slightly, driven by higher sales volumes for I-joists and LVL, offset by decreases in plywood sales prices and volumes.
Building Materials Distribution sales increased 16%, driven by a sales volume increase of 17%.
Forward Guidance
The full impacts of the global emergence of COVID-19 on our business and financial results are currently unknown. Economists predict that housing starts will be negatively impacted compared to expectations prior to the COVID-19 outbreak.
Positive Outlook
- The U.S. Department of Homeland Security (DHS) has designated the forest products industry, and thereby wood products manufacturing and building materials distribution, as part of the Essential Critical Infrastructure Workforce.
- To date, we have not experienced disruptions to our supply chain and have been able to source the necessary raw materials and finished goods needed by our operations.
- Current U.S. demographics are supportive of higher levels of housing starts.
- Robust construction activity in the first two months of 2020 drove sharp increases in commodity products pricing that peaked in mid-March.
- Cash flows from operations, combined with current cash levels and available borrowing capacity, will be adequate to fund debt service requirements and provide cash, as required, to support ongoing operations
Challenges Ahead
- State and local agencies are not mandated to follow the DHS designations, and in certain geographies across the U.S., additional restrictions have been imposed that further limit or preclude residential construction activity.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...