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Sep 30, 2020
Boise Cascade Q3 2020 Earnings Report
Reported strong third-quarter results driven by extraordinary market conditions and effective execution across both business segments.
Key Takeaways
Boise Cascade reported net income of $103.2 million, or $2.61 per share, on sales of $1.6 billion for the third quarter ended September 30, 2020. The results reflect significant increases compared to the third quarter of 2019, driven by extraordinary market conditions and strong execution.
Net income was $103.2 million, or $2.61 per share, compared to $27.2 million, or $0.69 per share, in Q3 2019.
Sales reached $1.6 billion, a 25% increase from $1.3 billion in Q3 2019.
Wood Products sales increased 12% to $363.7 million, driven by higher plywood prices and I-joist sales volumes.
Building Materials Distribution sales increased 25% to $1,437.7 million due to 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
As we begin the fourth quarter, Wood Products continues to make efforts to restore production rates to pre-COVID-19 levels in response to strong end-product demand, particularly for our EWP. However, we continue to experience periodic short-term disruptions at many locations due to COVID-19.
Positive Outlook
- Strong end-product demand, particularly for EWP.
- Low mortgage rates creating a favorable demand environment for new residential construction.
- Continuation of work-from-home practices may continue to strengthen repair and remodel spending.
- U.S. demographics support a higher level of housing starts.
- Many national home builders are reporting strong near-term backlogs.
Challenges Ahead
- Periodic short-term disruptions at many locations due to COVID-19.
- Activity levels across distribution network to continue to vary widely as COVID-19 impacts geographies across the U.S. to differing degrees.
- A re-acceleration of COVID-19 cases could prompt state or local officials to reinstitute restrictions that could limit or constrain building activity.
- Economic consequences of COVID-19 may adversely affect the pace of household formation rates and residential repair-and-remodeling activity.
- October 2020 composite lumber and panel prices have declined by approximately 35% and 10% from the peaks reached in September 2020 and are at risk for further price erosion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income