Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BOISE CASCADE Co | bcc8-k12312014.htm |
| EX-99.2 - QUARTERLY STATISTICAL INFORMATION - BOISE CASCADE Co | bccexhibit99212312014.htm |
Boise Cascade | Exhibit 99.1 | ||
1111 West Jefferson Street Ste 300 PO Box 50 Boise, ID 83728 | |||
News Release |  |
Investor Relations Contact - Wayne Rancourt 208 384 6073 | Media Contact - John Sahlberg 208 384 6451 | |
For Immediate Release: February 19, 2015
Boise Cascade Company Reports 2014 Net Income of $80.0 Million on Sales of $3.6 Billion
BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported financial results for the fourth quarter and year ended December 31, 2014.
Fourth Quarter and Year End 2014 Highlights
4Q 2014 | 4Q 2013 | % change | 2014 | 2013 | % change | |||||||||||||||||
(in thousands, except per-share data and percentages) | ||||||||||||||||||||||
Consolidated Results | ||||||||||||||||||||||
Sales | $ | 862,046 | $ | 798,344 | 8 | % | $ | 3,573,732 | $ | 3,273,496 | 9 | % | ||||||||||
EBITDA 1 | 42,038 | 33,132 | 27 | % | 196,556 | 136,371 | 44 | % | ||||||||||||||
Net income | 15,741 | 9,828 | 60 | % | 80,009 | 116,936 | (32 | )% | ||||||||||||||
Adjusted net income 1 | 15,741 | 9,828 | 60 | % | 80,009 | 48,270 | 66 | % | ||||||||||||||
Net income per common share - diluted | $ | 0.40 | $ | 0.25 | 60 | % | $ | 2.03 | $ | 2.91 | (30 | )% | ||||||||||
Adjusted net income per common share - diluted | $ | 0.40 | $ | 0.25 | 60 | % | $ | 2.03 | $ | 1.20 | 69 | % | ||||||||||
Segment Results | ||||||||||||||||||||||
Wood Products sales | $ | 317,019 | $ | 301,252 | 5 | % | $ | 1,317,001 | $ | 1,134,089 | 16 | % | ||||||||||
Wood Products EBITDA 1 | 34,205 | 25,100 | 36 | % | 149,831 | 106,337 | 41 | % | ||||||||||||||
BMD sales | 669,367 | 615,467 | 9 | % | 2,786,663 | 2,599,605 | 7 | % | ||||||||||||||
BMD EBITDA 1 | 13,012 | 13,388 | (3 | )% | 66,481 | 49,164 | 35 | % | ||||||||||||||
Corporate EBITDA 1 | (5,179 | ) | (5,356 | ) | 3 | % | (19,756 | ) | (19,130 | ) | (3 | )% | ||||||||||
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.
Total U.S. housing starts improved 8% in 2014, with single-family starts up 5% from 2013. The February 2015 Blue Chip consensus forecast for 2015 reflects 1.16 million total U.S. housing starts, a 16% expected increase from 2014 levels. Total housing activity levels remain below the historical average for the last 20 years of approximately 1.4 million starts per year.
"We are pleased by our results in 2014, a year in which the Company generated near double-digit revenue growth and almost $200 million in EBITDA. I would like to recognize the efforts of our employees who helped us achieve those results in spite of U.S. housing starts that remain well below historical averages. With our leading position in both the manufacturing and distribution businesses, we are optimistic about our future," commented Tom Carlile, CEO. "In 2015, I expect the Company to take further advantage of improvements in construction activity. As I move into retirement after 42 years with the Company, I'm pleased with the strength of the leadership team and the culture of the Company. The Company's Board is looking forward to supporting Tom Corrick as he leads the Company in continuing the focus on operating excellence and both organic and strategic growth."
Wood Products
Sales, including sales to our Building Materials Distribution (BMD) segment, increased $15.8 million, or 5%, to $317.0 million for the three months ended December 31, 2014, from $301.3 million for the three months ended December 31, 2013. The sales growth was driven primarily by plywood and engineered wood products (EWP) price increases, offset partially by sales volume decreases in plywood and EWP. Plywood prices increased 9%, while plywood volumes were 4% lower than prior year results. I-joists and LVL prices increased 7% and 3%, respectively, while I-joists and LVL sales volumes decreased by 10% and 1%, respectively. Improved lumber, particleboard, and byproduct sales volumes also contributed to the increase in sales. Wood Products EBITDA increased $9.1 million to $34.2 million for the three months ended December 31, 2014, from $25.1 million for the three months ended December 31, 2013. The increase in EBITDA was due primarily to higher plywood and EWP sales prices, offset partially by higher log costs.
For the year ended December 31, 2014, sales, including sales to BMD, increased $182.9 million, or 16%, to $1,317.0 million from $1,134.1 million for the year ended December 31, 2013. Higher plywood and EWP sales volumes, along with higher EWP prices were the primary drivers of the increased sales. Plywood sales volumes increased 12% primarily due to the acquisition of two plywood facilities on September 30, 2013, while plywood sales prices decreased 1%. LVL and I-joists sales volumes were up 11% and 7%, respectively, and LVL and I-joists sales prices increased 4% and 7%, respectively. Improved lumber, particleboard, and byproduct sales also contributed to the increase in sales. Wood Products EBITDA increased $43.5 million to $149.8 million for the year ended December 31, 2014, from $106.3 million for the year ended December 31, 2013. The increase in EBITDA was due primarily to improved operating results in our EWP business from higher pricing and lower OSB costs, higher plywood sales volumes, and higher lumber sales prices. These improvements were offset partially by higher log costs.
Comparative average net selling prices and sales volume changes for plywood and EWP are as follows:
4Q 2014 vs. 4Q 2013 | 2014 vs. 2013 | |||
Average Net Selling Prices | ||||
Plywood | 9% | (1)% | ||
LVL | 3% | 4% | ||
I-joists | 7% | 7% | ||
Sales Volumes | ||||
Plywood | (4)% | 12% | ||
LVL | (1)% | 11% | ||
I-joists | (10)% | 7% | ||
Building Materials Distribution
Sales increased $53.9 million, or 9%, to $669.4 million for the three months ended December 31, 2014, from $615.5 million for the three months ended December 31, 2013. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales volume and sales price increases of 7% and 2%, respectively. By product line, sales of general line products increased 14%, EWP increased 7%,
2
and commodity sales increased 6%. BMD's EBITDA decreased $0.4 million from the comparative prior year quarter, as results were negatively impacted by a 50 basis point decrease in gross margin percentage driven by lower margins on commodity lumber products. The gross margin percent decline combined with growth in selling and distribution expenses resulting from higher sales volumes more than offset an additional $3.2 million in gross margins generated by increased sales.
For the year ended December 31, 2014, sales increased $187.1 million, or 7%, to $2,786.7 million from $2,599.6 million for the year ended December 31, 2013. The increase in sales was driven primarily by improvements in sales volumes of 8%, offset partially by a decrease in sales prices of 1%. By product line, sales of EWP increased 16%, general line product sales increased 9%, and commodity sales increased 3%. BMD EBITDA increased $17.3 million to $66.5 million for the year ended December 31, 2014, from $49.2 million for the year ended December 31, 2013. The increase in EBITDA was driven primarily by a higher gross margin of $34.2 million, including an improvement in gross margin percentage of 50 basis points, as well as a $1.6 million gain in other income from the sale of two surplus properties. These improvements were offset partially by increased selling and distribution expenses of $17.5 million.
Balance Sheet
Boise Cascade ended 2014 with $163.5 million of cash and cash equivalents and $266.8 million of undrawn committed bank line availability, for total available liquidity of $430.3 million. The Company reported $301.4 million of outstanding debt at December 31, 2014.
Outlook
As in recent years, we expect to continue to experience modest demand growth for the products we manufacture and distribute in 2015. However, the level of construction activity is expected to remain well below 20-year average historical levels. Future commodity product pricing could be volatile in response to industry capacity restarts and operating rates, inventory levels in various distribution channels, and seasonal demand patterns. We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity until demand improves further.
In first quarter 2015, we expect to report improved EBITDA in our Wood Products business compared to first quarter 2014 primarily as a result of higher plywood prices. Our first quarter 2015 EBITDA results in BMD are expected to be similar to the EBITDA results reported in first quarter 2014.
About Boise Cascade
Boise Cascade Company is one of the largest producers of plywood and engineered wood products in North America and a leading U.S. wholesale distributor of building products. For more information, please visit our website at www.bc.com.
Webcast and Conference Call
Boise Cascade will host a webcast and conference call on Thursday, February 19, at 11 a.m. Eastern, at which time we will review the Company's fourth quarter and year-end results.
You can join the webcast through our website by going to www.bc.com and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15 minutes before the start of the webcast to register. To join the conference call, dial 855-209-5834 (international callers should dial 315-625-6883), participant passcode 71340479, at least 10 minutes before the start of the call.
The archived webcast will be available in the Investor Relations section of our website. A replay of the conference call will be available from Thursday, February 19, at 2 p.m. Eastern through Thursday, February 26, at 11 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. calls and 404-537-3406 for international calls, and the passcode will be 71340479.
3
Basis of Presentation
We refer to the terms EBITDA and adjusted net income in this earnings release. EBITDA and adjusted net income are supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States ("GAAP"). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. We define adjusted net income as net income before certain unusual items.
EBITDA is the primary measure used by our management to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA and adjusted net income are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. We believe EBITDA and adjusted net income are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA and adjusted net income, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income, income from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and adjusted net income instead of net income or segment income has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and adjusted net income are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
Forward-Looking Statements
This news release contains statements that are "forward looking" within the Private Securities Litigation Reform Act of 1995. These statements speak only as of the date of this press release. While they are based on the current expectations and beliefs of management, they are subject to a number of uncertainties and assumptions that could cause actual results to differ from the expectations expressed in this release.
4
Boise Cascade Company
Consolidated Statements of Operations
(in thousands, except per-share data)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31 | September 30, 2014 | December 31 | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Sales | $ | 862,046 | $ | 798,344 | $ | 983,319 | $ | 3,573,732 | $ | 3,273,496 | ||||||||||
Costs and expenses | ||||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 741,641 | 690,994 | 827,890 | 3,065,671 | 2,846,614 | |||||||||||||||
Depreciation and amortization | 13,434 | 11,833 | 13,203 | 51,439 | 38,038 | |||||||||||||||
Selling and distribution expenses | 65,348 | 61,933 | 72,714 | 264,173 | 245,283 | |||||||||||||||
General and administrative expenses | 12,726 | 12,325 | 13,173 | 48,489 | 45,489 | |||||||||||||||
Other (income) expense, net | — | (162 | ) | 148 | (1,589 | ) | (685 | ) | ||||||||||||
833,149 | 776,923 | 927,128 | 3,428,183 | 3,174,739 | ||||||||||||||||
Income from operations | 28,897 | 21,421 | 56,191 | 145,549 | 98,757 | |||||||||||||||
Foreign currency exchange loss | (293 | ) | (122 | ) | (316 | ) | (432 | ) | (424 | ) | ||||||||||
Interest expense | (5,504 | ) | (5,580 | ) | (5,514 | ) | (22,049 | ) | (20,426 | ) | ||||||||||
Interest income | 57 | 29 | 57 | 237 | 241 | |||||||||||||||
(5,740 | ) | (5,673 | ) | (5,773 | ) | (22,244 | ) | (20,609 | ) | |||||||||||
Income before income taxes | 23,157 | 15,748 | 50,418 | 123,305 | 78,148 | |||||||||||||||
Income tax (provision) benefit (a) | (7,416 | ) | (5,920 | ) | (18,133 | ) | (43,296 | ) | 38,788 | |||||||||||
Net income | $ | 15,741 | $ | 9,828 | $ | 32,285 | $ | 80,009 | $ | 116,936 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 39,428 | 39,365 | 39,423 | 39,412 | 40,203 | |||||||||||||||
Diluted | 39,604 | 39,435 | 39,481 | 39,492 | 40,226 | |||||||||||||||
Net income per common share: | ||||||||||||||||||||
Basic | $ | 0.40 | $ | 0.25 | $ | 0.82 | $ | 2.03 | $ | 2.91 | ||||||||||
Diluted | $ | 0.40 | $ | 0.25 | $ | 0.82 | $ | 2.03 | $ | 2.91 | ||||||||||
See accompanying summary notes to consolidated financial statements and segment information.
5
Wood Products Segment
Statements of Operations
(in thousands, except percentages)
Three Months Ended | Year Ended | ||||||||||||||||||
December 31 | September 30, 2014 | December 31 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Segment sales | $ | 317,019 | $ | 301,252 | $ | 355,697 | $ | 1,317,001 | $ | 1,134,089 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 272,697 | 265,916 | 293,569 | 1,127,122 | 990,082 | ||||||||||||||
Depreciation and amortization | 10,722 | 9,208 | 10,711 | 41,457 | 28,664 | ||||||||||||||
Selling and distribution expenses | 7,144 | 7,188 | 7,622 | 28,650 | 27,227 | ||||||||||||||
General and administrative expenses | 2,859 | 3,121 | 2,960 | 10,886 | 10,699 | ||||||||||||||
Other (income) expense, net | 114 | (73 | ) | 204 | 512 | (256 | ) | ||||||||||||
293,536 | 285,360 | 315,066 | 1,208,627 | 1,056,416 | |||||||||||||||
Segment income | $ | 23,483 | $ | 15,892 | $ | 40,631 | $ | 108,374 | $ | 77,673 | |||||||||
(percentage of sales) | |||||||||||||||||||
Segment sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 86.0 | % | 88.3 | % | 82.5 | % | 85.6 | % | 87.3 | % | |||||||||
Depreciation and amortization | 3.4 | % | 3.1 | % | 3.0 | % | 3.1 | % | 2.5 | % | |||||||||
Selling and distribution expenses | 2.3 | % | 2.4 | % | 2.1 | % | 2.2 | % | 2.4 | % | |||||||||
General and administrative expenses | 0.9 | % | 1.0 | % | 0.8 | % | 0.8 | % | 0.9 | % | |||||||||
Other (income) expense, net | — | % | — | % | 0.1 | % | — | % | — | % | |||||||||
92.6 | % | 94.7 | % | 88.6 | % | 91.8 | % | 93.2 | % | ||||||||||
Segment income | 7.4 | % | 5.3 | % | 11.4 | % | 8.2 | % | 6.8 | % | |||||||||
6
Building Materials Distribution Segment
Statements of Operations
(in thousands, except percentages)
Three Months Ended | Year Ended | ||||||||||||||||||
December 31 | September 30, 2014 | December 31 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Segment sales | $ | 669,367 | $ | 615,467 | $ | 773,391 | $ | 2,786,663 | $ | 2,599,605 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 594,143 | 543,404 | 680,303 | 2,470,145 | 2,317,299 | ||||||||||||||
Depreciation and amortization | 2,653 | 2,593 | 2,448 | 9,802 | 9,233 | ||||||||||||||
Selling and distribution expenses | 58,204 | 54,745 | 65,092 | 235,523 | 218,056 | ||||||||||||||
General and administrative expenses | 4,132 | 4,039 | 4,557 | 16,687 | 15,436 | ||||||||||||||
Other (income) expense, net | (124 | ) | (109 | ) | (67 | ) | (2,173 | ) | (350 | ) | |||||||||
659,008 | 604,672 | 752,333 | 2,729,984 | 2,559,674 | |||||||||||||||
Segment income | $ | 10,359 | $ | 10,795 | $ | 21,058 | $ | 56,679 | $ | 39,931 | |||||||||
(percentage of sales) | |||||||||||||||||||
Segment sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 88.8 | % | 88.3 | % | 88.0 | % | 88.6 | % | 89.1 | % | |||||||||
Depreciation and amortization | 0.4 | % | 0.4 | % | 0.3 | % | 0.4 | % | 0.4 | % | |||||||||
Selling and distribution expenses | 8.7 | % | 8.9 | % | 8.4 | % | 8.5 | % | 8.4 | % | |||||||||
General and administrative expenses | 0.6 | % | 0.7 | % | 0.6 | % | 0.6 | % | 0.6 | % | |||||||||
Other (income) expense, net | — | % | — | % | — | % | (0.1 | )% | — | % | |||||||||
98.5 | % | 98.2 | % | 97.3 | % | 98.0 | % | 98.5 | % | ||||||||||
Segment income | 1.5 | % | 1.8 | % | 2.7 | % | 2.0 | % | 1.5 | % | |||||||||
7
Segment Information
(in thousands)
Three Months Ended | Year Ended | ||||||||||||||||||
December 31 | September 30, 2014 | December 31 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Segment sales | |||||||||||||||||||
Wood Products | $ | 317,019 | $ | 301,252 | $ | 355,697 | $ | 1,317,001 | $ | 1,134,089 | |||||||||
Building Materials Distribution | 669,367 | 615,467 | 773,391 | 2,786,663 | 2,599,605 | ||||||||||||||
Intersegment eliminations | (124,340 | ) | (118,375 | ) | (145,769 | ) | (529,932 | ) | (460,198 | ) | |||||||||
$ | 862,046 | $ | 798,344 | $ | 983,319 | $ | 3,573,732 | $ | 3,273,496 | ||||||||||
Segment income (loss) | |||||||||||||||||||
Wood Products | $ | 23,483 | $ | 15,892 | $ | 40,631 | $ | 108,374 | $ | 77,673 | |||||||||
Building Materials Distribution | 10,359 | 10,795 | 21,058 | 56,679 | 39,931 | ||||||||||||||
Corporate and Other | (5,238 | ) | (5,388 | ) | (5,814 | ) | (19,936 | ) | (19,271 | ) | |||||||||
$ | 28,604 | $ | 21,299 | $ | 55,875 | $ | 145,117 | $ | 98,333 | ||||||||||
Interest expense | (5,504 | ) | (5,580 | ) | (5,514 | ) | (22,049 | ) | (20,426 | ) | |||||||||
Interest income | 57 | 29 | 57 | 237 | 241 | ||||||||||||||
Income before income taxes | $ | 23,157 | $ | 15,748 | $ | 50,418 | $ | 123,305 | $ | 78,148 | |||||||||
EBITDA (b) | |||||||||||||||||||
Wood Products | $ | 34,205 | $ | 25,100 | $ | 51,342 | $ | 149,831 | $ | 106,337 | |||||||||
Building Materials Distribution | 13,012 | 13,388 | 23,506 | 66,481 | 49,164 | ||||||||||||||
Corporate and Other | (5,179 | ) | (5,356 | ) | (5,770 | ) | (19,756 | ) | (19,130 | ) | |||||||||
$ | 42,038 | $ | 33,132 | $ | 69,078 | $ | 196,556 | $ | 136,371 | ||||||||||
See accompanying summary notes to consolidated financial statements and segment information.
8
Boise Cascade Company
Consolidated Balance Sheets
(in thousands)
December 31 | ||||||||
2014 | 2013 | |||||||
ASSETS | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 163,549 | $ | 118,249 | ||||
Receivables | ||||||||
Trade, less allowances of $2,062 and $2,696 | 172,314 | 152,240 | ||||||
Related parties | 821 | 583 | ||||||
Other | 7,311 | 7,268 | ||||||
Inventories | 394,461 | 383,359 | ||||||
Deferred income taxes | 20,311 | 18,151 | ||||||
Prepaid expenses and other | 14,857 | 7,855 | ||||||
Total current assets | 773,624 | 687,705 | ||||||
Property and equipment, net | 368,128 | 360,985 | ||||||
Timber deposits | 13,819 | 6,266 | ||||||
Deferred financing costs | 7,149 | 8,334 | ||||||
Goodwill | 21,823 | 21,823 | ||||||
Intangible assets, net | 10,183 | 10,277 | ||||||
Deferred income taxes | 16,684 | 760 | ||||||
Other assets | 9,075 | 8,036 | ||||||
Total assets | $ | 1,220,485 | $ | 1,104,186 | ||||
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Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data)
December 31 | ||||||||
2014 | 2013 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current | ||||||||
Accounts payable | ||||||||
Trade | $ | 150,693 | $ | 139,636 | ||||
Related parties | 1,743 | 2,484 | ||||||
Accrued liabilities | ||||||||
Compensation and benefits | 66,170 | 60,527 | ||||||
Interest payable | 3,298 | 3,294 | ||||||
Other | 33,286 | 33,076 | ||||||
Total current liabilities | 255,190 | 239,017 | ||||||
Debt | ||||||||
Long-term debt | 301,415 | 301,613 | ||||||
Other | ||||||||
Compensation and benefits | 156,218 | 96,536 | ||||||
Other long-term liabilities | 15,274 | 14,539 | ||||||
171,492 | 111,075 | |||||||
Commitments and contingent liabilities | ||||||||
Stockholders' equity | ||||||||
Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding | — | — | ||||||
Common stock, $0.01 par value per share; 300,000 shares authorized, 43,282 and 43,229 shares issued, respectively | 433 | 432 | ||||||
Treasury stock, 3,864 shares at cost | (100,000 | ) | (100,000 | ) | ||||
Additional paid-in capital | 502,739 | 496,593 | ||||||
Accumulated other comprehensive loss | (101,498 | ) | (55,249 | ) | ||||
Retained earnings | 190,714 | 110,705 | ||||||
Total stockholders' equity | 492,388 | 452,481 | ||||||
Total liabilities and stockholders' equity | $ | 1,220,485 | $ | 1,104,186 | ||||
10
Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31 | ||||||||
2014 | 2013 | |||||||
Cash provided by (used for) operations | ||||||||
Net income | $ | 80,009 | $ | 116,936 | ||||
Items in net income not using (providing) cash | ||||||||
Depreciation and amortization, including deferred financing costs and other | 53,052 | 39,810 | ||||||
Stock-based compensation | 5,916 | 2,869 | ||||||
Pension expense | 838 | 10,989 | ||||||
Deferred income taxes | 10,705 | (59,600 | ) | |||||
Other | (1,589 | ) | (789 | ) | ||||
Decrease (increase) in working capital, net of acquisitions | ||||||||
Receivables | (20,277 | ) | (11,014 | ) | ||||
Inventories | (11,102 | ) | (50,958 | ) | ||||
Prepaid expenses and other | 143 | (515 | ) | |||||
Accounts payable and accrued liabilities | 15,418 | 1,151 | ||||||
Pension contributions | (12,071 | ) | (10,739 | ) | ||||
Income taxes payable | (7,766 | ) | (2,016 | ) | ||||
Other | (11,433 | ) | (2,697 | ) | ||||
Net cash provided by operations | 101,843 | 33,427 | ||||||
Cash provided by (used for) investment | ||||||||
Expenditures for property and equipment | (61,217 | ) | (45,751 | ) | ||||
Acquisitions of businesses and facilities | — | (103,029 | ) | |||||
Proceeds from sales of assets | 4,814 | 2,167 | ||||||
Other | (1 | ) | (67 | ) | ||||
Net cash used for investment | (56,404 | ) | (146,680 | ) | ||||
Cash provided by (used for) financing | ||||||||
Issuances of long-term debt, including revolving credit facility | 57,600 | 130,000 | ||||||
Payments of long-term debt, including revolving credit facility | (57,600 | ) | (105,010 | ) | ||||
Net proceeds from issuance of common stock | — | 262,488 | ||||||
Treasury stock purchased | — | (100,000 | ) | |||||
Financing costs | (11 | ) | (2,061 | ) | ||||
Other | (128 | ) | 192 | |||||
Net cash provided by (used for) financing | (139 | ) | 185,609 | |||||
Net increase in cash and cash equivalents | 45,300 | 72,356 | ||||||
Balance at beginning of the period | 118,249 | 45,893 | ||||||
Balance at end of the period | $ | 163,549 | $ | 118,249 | ||||
11
Summary Notes to Consolidated Financial Statements and Segment Information
The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.
(a) | Adjusted net income represents net income before certain unusual items. The year ended December 31, 2013 includes a $68.7 million income tax benefit associated with the recording of net deferred tax assets upon the Company's conversion from a limited liability company to a corporation. The following table reconciles net income to adjusted net income for the years ended December 31, 2014 and 2013: |
Year ended | |||||||
December 31 | |||||||
2014 | 2013 | ||||||
(in thousands, except per-share amounts) | |||||||
Net income (GAAP basis) | $ | 80,009 | $ | 116,936 | |||
Impact of deferred tax benefit | — | (68,666 | ) | ||||
Adjusted net income (non-GAAP basis) | $ | 80,009 | $ | 48,270 | |||
Weighted average common shares outstanding: | |||||||
Basic | 39,412 | 40,203 | |||||
Diluted | 39,492 | 40,226 | |||||
Adjusted net income (non-GAAP basis), per share: | |||||||
Basic | $ | 2.03 | $ | 1.20 | |||
Diluted | $ | 2.03 | $ | 1.20 | |||
(b) | EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. The following table reconciles net income to EBITDA for the three months ended December 31, 2014 and 2013, and September 30, 2014, and the years ended December 31, 2014 and 2013: |
Three Months Ended | Year Ended | ||||||||||||||||||
December 31 | September 30, 2014 | December 31 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Net income | $ | 15,741 | $ | 9,828 | $ | 32,285 | $ | 80,009 | $ | 116,936 | |||||||||
Interest expense | 5,504 | 5,580 | 5,514 | 22,049 | 20,426 | ||||||||||||||
Interest income | (57 | ) | (29 | ) | (57 | ) | (237 | ) | (241 | ) | |||||||||
Income tax provision (benefit) | 7,416 | 5,920 | 18,133 | 43,296 | (38,788 | ) | |||||||||||||
Depreciation and amortization | 13,434 | 11,833 | 13,203 | 51,439 | 38,038 | ||||||||||||||
EBITDA | $ | 42,038 | $ | 33,132 | $ | 69,078 | $ | 196,556 | $ | 136,371 | |||||||||
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The following table reconciles segment income (loss) to EBITDA for the three months ended December 31, 2014 and 2013, and September 30, 2014, and the years ended December 31, 2014 and 2013:
Three Months Ended | Year Ended | |||||||||||||||||||
December 31 | September 30, 2014 | December 31 | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Wood Products | ||||||||||||||||||||
Segment income | $ | 23,483 | $ | 15,892 | $ | 40,631 | $ | 108,374 | $ | 77,673 | ||||||||||
Depreciation and amortization | 10,722 | 9,208 | 10,711 | 41,457 | 28,664 | |||||||||||||||
EBITDA | 34,205 | 25,100 | 51,342 | 149,831 | 106,337 | |||||||||||||||
Building Materials Distribution | ||||||||||||||||||||
Segment income | 10,359 | 10,795 | 21,058 | 56,679 | 39,931 | |||||||||||||||
Depreciation and amortization | 2,653 | 2,593 | 2,448 | 9,802 | 9,233 | |||||||||||||||
EBITDA | 13,012 | 13,388 | 23,506 | 66,481 | 49,164 | |||||||||||||||
Corporate and Other | ||||||||||||||||||||
Segment loss | (5,238 | ) | (5,388 | ) | (5,814 | ) | (19,936 | ) | (19,271 | ) | ||||||||||
Depreciation and amortization | 59 | 32 | 44 | 180 | 141 | |||||||||||||||
EBITDA | (5,179 | ) | (5,356 | ) | (5,770 | ) | (19,756 | ) | (19,130 | ) | ||||||||||
Total Company EBITDA | $ | 42,038 | $ | 33,132 | $ | 69,078 | $ | 196,556 | $ | 136,371 | ||||||||||
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