The following is a summary of the Boise Cascade Company (BCC) Q3 2024 Earnings Call Transcript:
Financial Performance:
Boise Cascade reported Q3 total sales of $1.7 billion, a decrease of 7% from the previous year.
Net income for Q3 was $91 million or $2.33 per share, down from $143.1 million or $3.58 per share in the previous year.
Wood Products segment EBITDA was $77.4 million, down from $122.9 million, mainly due to lower sales prices for EWP and plywood, and higher conversion costs.Building Materials Distribution (BMD) segment sales were $1.6 billion, down 6% with a reported EBITDA of $87.7 million compared to $104.9 million in the prior year.
Business Progress:
Boise Cascade continues capital deployment with $136 million spent on capital expenditures across Wood Products and BMD in the first nine months of 2024, focusing on growth projects and equipment delays.
The company is pursuing organic growth opportunities and returning capital to shareholders, expecting to increase spending significantly in the fourth quarter.
Opportunities:
The company targets areas with expected modest growth in home improvement spending and development of new residential construction. They also expect stable growth in 2025 driven by the older US housing stock and high homeowner equity levels.
Risks:
Boise Cascade faces potential seasonal sales declines and anticipates single-digit sequential price declines in EWP and plywood pricing for Q4. Additionally, housing affordability issues and economic uncertainties might constrain demand.
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