Boise Cascade(US:BCC)2021-05-05 16:00Financial Performance - Boise Cascade recorded income from operations of $205.3 million for Q1 2021, a significant increase from $25.5 million in Q1 2020 [108]. - Total sales for Q1 2021 were $1.82 billion, compared to $1.17 billion in Q1 2020, reflecting a 55.5% year-over-year increase [117]. - Income from operations increased by $179.7 million to $205.3 million for the three months ended March 31, 2021, compared to $25.5 million in the same period in 2020 [129]. - Net cash provided by operations was $72.3 million for the three months ended March 31, 2021, compared to a cash used of $42.5 million in the same period in 2020 [138]. - Operating activities generated $72.3 million of cash for the three months ended March 31, 2021, compared to $42.5 million used in the same period in 2020, marking a $114.7 million increase [139]. Segment Performance - The Wood Products segment saw income rise to $97.1 million, up from $3.8 million, driven by higher sales prices and volumes [108]. - The Building Materials Distribution segment's income increased to $120.2 million from $29.3 million, attributed to a gross margin increase of $115.3 million [108]. - Wood Products segment sales increased by $112.3 million, or 35%, to $432.3 million, primarily due to higher plywood prices, which rose by 108% [124]. - Building Materials Distribution segment sales increased by $584.8 million, or 56%, to $1,634.8 million, driven by sales volume and price increases of 34% and 22%, respectively [124]. Costs and Expenses - Costs and expenses for Q1 2021 were $1.62 billion, up from $1.15 billion in Q1 2020, with materials, labor, and other operating expenses rising to $1.45 billion [117]. - Gross margin percentage improved to 15.1% from 12.6% in the prior year, reflecting better sales volumes and pricing [124]. Liquidity and Capital - The company ended Q1 2021 with $457.0 million in cash and cash equivalents and $345.3 million in undrawn committed bank lines, totaling $802.3 million in available liquidity [109]. - The company ended the first quarter of 2021 with $457.0 million in cash and cash equivalents and $444.0 million in debt, resulting in $802.3 million of available liquidity [135]. - Capital expenditures for 2021 are expected to total approximately $90 million to $100 million, focusing on business improvement and expansion projects [142]. Market Conditions - The forecast for U.S. single-family housing starts in 2021 is 1.55 million units, up from 1.38 million in 2020, indicating strong demand [112]. - U.S. housing starts increased by 10%, with single-family starts up 20% from the same period in 2020, driving demand for sales [123]. - The average net selling prices for key products in the Wood Products segment increased significantly due to supply/demand imbalances [113]. - Future commodity product pricing will depend on various factors, including COVID-19 impacts, capacity restoration, and seasonal demand patterns [113]. Operational Challenges - The company experienced supply constraints due to COVID-19 and weather impacts, affecting production rates and inventory levels [111]. - The company expects to continue facing seasonal fluctuations in sales volumes and expenses due to weather conditions affecting the building products industry [149]. Employee and Financing Information - As of March 31, 2021, the company had approximately 6,060 employees, with 23% working under collective bargaining agreements [150]. - Financing activities used $7.5 million of cash during the three months ended March 31, 2021, including $4.4 million for common stock dividends [143]. - The increase in accounts payable provided $125.1 million of cash during the three months ended March 31, 2021, compared to $55.6 million in the same period a year ago [140]. - The company did not borrow under its revolving credit facility during the three months ended March 31, 2021, leaving no outstanding borrowings [143]. Other Notable Events - West Fraser Timber Co. Ltd. acquired Norbord Inc. in a transaction that closed in the first quarter of 2021, which is not expected to materially impact future operations [133]. - There have been no material changes in contractual obligations since December 31, 2020 [145]. - As of March 31, 2021, there were no material changes to financial market risks disclosed in the 2020 Form 10-K [151].