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Mar 31, 2021
Boise Cascade Q1 2021 Earnings Report
Reported strong first quarter results driven by robust construction activity and higher commodity wood products pricing.
Key Takeaways
Boise Cascade reported a significant increase in net income and sales for the first quarter of 2021 compared to the same period in 2020. Net income reached $149.2 million, or $3.76 per share, on sales of $1.8 billion, driven by strong demand and higher commodity prices.
First quarter net income was $149.2 million, or $3.76 per share.
Sales for the first quarter reached $1.8 billion, a 56% increase from the prior year.
Wood Products sales increased 35% driven by higher plywood and lumber prices, as well as higher sales volumes for I-joists.
Building Materials Distribution sales increased 56% due to sales volume and sales price increases.
Boise Cascade
Boise Cascade
Boise Cascade Revenue by Segment
Revenue by Segment
Wood Products Revenue
CapyFin.comBuilding Materials Distribution Revenue
CapyFin.com Forward Guidance
The company expects a favorable demand environment for new residential construction to continue in 2021 and into next year. Repair and remodel spending may also remain elevated. Supply side constraints and COVID-19 impacts may continue to affect operations.
Positive Outlook
- Low mortgage rates are expected to continue.
- Work-from-home practices are expected to continue, driving housing demand.
- U.S. demographics support a higher level of forecasted housing starts.
- Many national home builders are reporting strong near-term backlogs.
- Repair and remodel spending may remain elevated as homeowners invest in existing homes.
Challenges Ahead
- There continues to be a heightened level of economic uncertainty due to the pandemic.
- Supply induced constraints on residential construction and repair-and-remodeling activity may continue to extend build times and limit activity.
- COVID-19 related short-term disruptions at BMD locations.
- Activity levels across distribution network continue to vary widely as COVID-19 or weather impacts geographies across the U.S. to differing degrees.
- Future commodity product pricing will be dependent on the impact of COVID-19 on residential construction, capacity restoration and industry operating rates, net import and export activity, transportation constraints or disruptions, inventory levels in various distribution channels, and seasonal demand patterns.
Revenue & Expenses
Visualization of income flow from segment revenue to net income