Attached files
| file | filename |
|---|---|
| EX-99.2 - QUARTERLY STATISTICAL INFORMATION - BOISE CASCADE Co | bccexhibit9929302017.htm |
| 8-K - 8-K - BOISE CASCADE Co | bcc8-k9302017.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: October 31, 2017
Boise Cascade Company Reports 2017 Third Quarter Net Income of
$31.7 Million on Sales of $1.23 Billion
BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $31.7 million, or $0.81 per share, on sales of $1.23 billion for the third quarter ended September 30, 2017. Third quarter 2016 net income of $10.0 million, or $0.26 per share, included a $9.5 million pre-tax loss on debt extinguishment, or a $0.15 per share after-tax impact.
Third Quarter 2017 Highlights
3Q 2017 | 3Q 2016 | % change | ||||||||
(thousands, except per-share data and percentages) | ||||||||||
Consolidated Results | ||||||||||
Sales | $ | 1,226,644 | $ | 1,067,214 | 15 | % | ||||
Net income | 31,661 | 9,981 | 217 | % | ||||||
Net income per common share - diluted | 0.81 | 0.26 | 212 | % | ||||||
Adjusted EBITDA1 | 75,784 | 50,726 | 49 | % | ||||||
Segment Results | ||||||||||
Wood Products sales | $ | 366,920 | $ | 340,928 | 8 | % | ||||
Wood Products income | 24,027 | 11,564 | 108 | % | ||||||
Wood Products EBITDA1 | 39,364 | 27,189 | 45 | % | ||||||
Building Materials Distribution sales | 1,045,646 | 889,026 | 18 | % | ||||||
Building Materials Distribution income | 39,379 | 26,415 | 49 | % | ||||||
Building Materials Distribution EBITDA1 | 43,289 | 29,929 | 45 | % | ||||||
1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.
“Distribution posted an exceptional quarter, with excellent execution and tailwinds from a strong commodity price environment. Improved results in Wood Products were driven by strong plywood prices and the impact of previously announced EWP price increases. The catastrophic storms in the southern U.S. created incremental plywood demand, and our sales and operations teams did a great job of responding to customer needs,” commented Tom Corrick, CEO. “We expect to experience seasonally slower demand in the fourth quarter, and commodity pricing will be subject to downside risks. We remain well positioned to support single-family housing starts growth that
continues to post solid year-over-year gains.”
In third quarter 2017, total U.S. housing starts increased by approximately 1% compared to the same period last year, driven by an approximate 11% increase in single-family starts, offset by an approximate 18% decrease in multi-family starts. Single-family residential construction is the primary demand driver of our sales. On a year-to-date basis, total U.S. housing starts improved 3% compared to the same period last year, driven by an approximate 9% increase in single-family starts.
Wood Products
Wood Products sales, including sales to Building Materials Distribution (BMD), increased $26.0 million, or 8%, to $366.9 million for the three months ended September 30, 2017, from $340.9 million for the three months ended September 30, 2016. The increase in sales was driven primarily by higher plywood sales prices and volumes, as well as higher sales prices for I-joists and LVL (collectively EWP). In addition, increased lumber sales prices contributed to the increase in sales. These increases were offset by decreases in EWP sales volumes.
Wood Products segment income increased $12.5 million to $24.0 million for the three months ended September 30, 2017, from $11.6 million for the three months ended September 30, 2016. The increase in segment income was due primarily to higher sales prices of plywood, EWP, and lumber, offset partially by higher OSB costs used in the manufacture of I-joists.
Comparative average net selling prices and sales volume changes for EWP, plywood, and lumber are as follows:
3Q 2017 vs. 3Q 2016 | 3Q 2017 vs. 2Q 2017 | |||
Average Net Selling Prices | ||||
LVL | 4% | 3% | ||
I-joists | 5% | 6% | ||
Plywood | 13% | 8% | ||
Lumber | 15% | 1% | ||
Sales Volumes | ||||
LVL | (7)% | (12)% | ||
I-joists | (8)% | (12)% | ||
Plywood | 5% | 10% | ||
Lumber | (4)% | 3% | ||
Building Materials Distribution
BMD sales increased $156.6 million, or 18%, to $1,045.6 million for the three months ended September 30, 2017, from $889.0 million for the three months ended September 30, 2016. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales price and sales volume increases of 10% and 8%, respectively. By product line, commodity sales increased 21%; general line product sales increased 14%; and sales of EWP (substantially all of which are sourced through our Wood Products segment) increased 16%.
BMD segment income increased $13.0 million to $39.4 million for the three months ended September 30, 2017, from $26.4 million for the three months ended September 30, 2016. The improvement in segment income was driven primarily by a gross margin increase of $22.3 million generated from a sales increase of 18%, offset partially by increased selling and distribution expenses of $7.6 million.
2
Balance Sheet
Boise Cascade ended the third quarter with $172.2 million of cash and cash equivalents and $393.6 million of undrawn committed bank line availability, for total available liquidity of $565.8 million. The Company had $438.0 million of outstanding debt at September 30, 2017. With our sound financial position, we continue to review organic growth and acquisition opportunities, along with ongoing evaluation of alternatives to return cash to our shareholders.
Outlook
We expect to experience seasonally slower demand in fourth quarter 2017. On an annual basis, total housing starts in the U.S. continue to show modest improvement, with single-family starts growth offsetting weakness in multi-family starts in 2017. We remain optimistic that the improvement in demand for our products will continue as household formation rates and residential construction recover and we will continue to manage our production levels to our sales demand. As in past years, we plan to take scheduled capital and maintenance-related downtime at certain plywood facilities during the fourth quarter.
Future commodity product pricing could be volatile in response to industry operating rates, net import and export activity, the North American softwood lumber trade dispute, inventory levels in our distribution channels, and seasonal demand patterns. Furthermore, commodity product pricing is currently above historical levels. As a wholesale distributor of a broad mix of commodity products and a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices.
We also expect to begin depreciation on approximately $45 million of veneer and LVL related assets at our Roxboro, North Carolina EWP facility in the fourth quarter as we make further progress on start-up activities.
About Boise Cascade
Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com.
Webcast and Conference Call
Boise Cascade will host a webcast and conference call on Tuesday, October 31, at 11 a.m. Eastern, to review the Company's third quarter results.
You can join the webcast through the Company's 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 844-795-4410 (international callers should dial 661-378-9637), participant passcode 1613314, at least 10 minutes before the start of the call.
The archived webcast will be available in the Investor Relations section of the Company's website. A replay of the conference call will be available from Tuesday, October 31, at 2 p.m. Eastern through Tuesday, November 7, at 1 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. callers and 404-537-3406 for international callers, and the passcode will be 1613314.
Basis of Presentation
As of January 1, 2017, we operate our business using two reportable segments: Wood Products and Building Materials Distribution. Prior to January 1, 2017, we operated our business using three reportable segments: Wood Products, Building Materials Distribution, and Corporate and Other. This change is based on Corporate and Other no longer earning revenue as of January 1, 2017 and thus no longer meeting the definition of a reportable segment. Corporate and Other results are now presented as reconciling items to arrive at total net sales and operating income. Corresponding information for the three and nine months ended September 30, 2016 has been revised to conform with current presentation.
3
We refer to the terms EBITDA and Adjusted EBITDA in this earnings release as 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. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of debt.
We believe EBITDA and Adjusted EBITDA 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. We also believe EBITDA and Adjusted EBITDA 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. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income (loss) have limitations as analytical tools, 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 EBITDA 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 press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, the effect of general economic conditions, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.
4
Boise Cascade Company
Consolidated Statements of Operations
(unaudited, in thousands, except per-share data)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2017 | September 30 | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Sales | $ | 1,226,644 | $ | 1,067,214 | $ | 1,138,939 | $ | 3,340,026 | $ | 2,991,682 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 1,045,772 | 922,101 | 980,226 | 2,872,765 | 2,586,360 | ||||||||||||||
Depreciation and amortization | 19,686 | 19,459 | 19,601 | 58,631 | 53,249 | ||||||||||||||
Selling and distribution expenses | 87,564 | 80,026 | 82,336 | 243,601 | 224,922 | ||||||||||||||
General and administrative expenses | 16,476 | 14,367 | 15,565 | 45,613 | 46,031 | ||||||||||||||
Other (income) expense, net | 1,138 | (46 | ) | (1,238 | ) | (135 | ) | (1,459 | ) | ||||||||||
1,170,636 | 1,035,907 | 1,096,490 | 3,220,475 | 2,909,103 | |||||||||||||||
Income from operations | 56,008 | 31,307 | 42,449 | 119,551 | 82,579 | ||||||||||||||
Foreign currency exchange gain (loss) | 90 | (40 | ) | 13 | 131 | 186 | |||||||||||||
Interest expense | (6,295 | ) | (7,135 | ) | (6,491 | ) | (19,150 | ) | (19,364 | ) | |||||||||
Interest income | 167 | 60 | 54 | 254 | 236 | ||||||||||||||
Change in fair value of interest rate swaps | (33 | ) | 836 | (724 | ) | (462 | ) | (765 | ) | ||||||||||
Loss on extinguishment of debt | — | (9,525 | ) | — | — | (9,525 | ) | ||||||||||||
(6,071 | ) | (15,804 | ) | (7,148 | ) | (19,227 | ) | (29,232 | ) | ||||||||||
Income before income taxes | 49,937 | 15,503 | 35,301 | 100,324 | 53,347 | ||||||||||||||
Income tax provision | (18,276 | ) | (5,522 | ) | (13,147 | ) | (36,489 | ) | (19,188 | ) | |||||||||
Net income | $ | 31,661 | $ | 9,981 | $ | 22,154 | $ | 63,835 | $ | 34,159 | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 38,660 | 38,814 | 38,643 | 38,601 | 38,827 | ||||||||||||||
Diluted | 39,139 | 39,120 | 39,002 | 38,962 | 38,950 | ||||||||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.82 | $ | 0.26 | $ | 0.57 | $ | 1.65 | $ | 0.88 | |||||||||
Diluted | $ | 0.81 | $ | 0.26 | $ | 0.57 | $ | 1.64 | $ | 0.88 | |||||||||
5
Wood Products Segment
Statements of Operations
(unaudited, in thousands, except percentages)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2017 | September 30 | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Segment sales | $ | 366,920 | $ | 340,928 | $ | 350,277 | $ | 1,042,854 | $ | 990,743 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 315,421 | 302,667 | 309,876 | 917,757 | 880,412 | ||||||||||||||
Depreciation and amortization | 15,337 | 15,625 | 15,264 | 45,752 | 42,028 | ||||||||||||||
Selling and distribution expenses | 7,580 | 7,594 | 7,563 | 22,879 | 23,077 | ||||||||||||||
General and administrative expenses | 3,408 | 2,978 | 3,213 | 9,491 | 12,249 | ||||||||||||||
Other (income) expense, net | 1,147 | 500 | (1,034 | ) | 165 | (781 | ) | ||||||||||||
342,893 | 329,364 | 334,882 | 996,044 | 956,985 | |||||||||||||||
Segment income | $ | 24,027 | $ | 11,564 | $ | 15,395 | $ | 46,810 | $ | 33,758 | |||||||||
(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 | % | 88.8 | % | 88.5 | % | 88.0 | % | 88.9 | % | |||||||||
Depreciation and amortization | 4.2 | % | 4.6 | % | 4.4 | % | 4.4 | % | 4.2 | % | |||||||||
Selling and distribution expenses | 2.1 | % | 2.2 | % | 2.2 | % | 2.2 | % | 2.3 | % | |||||||||
General and administrative expenses | 0.9 | % | 0.9 | % | 0.9 | % | 0.9 | % | 1.2 | % | |||||||||
Other (income) expense, net | 0.3 | % | 0.1 | % | (0.3 | )% | — | % | (0.1 | %) | |||||||||
93.5 | % | 96.6 | % | 95.6 | % | 95.5 | % | 96.6 | % | ||||||||||
Segment income | 6.5 | % | 3.4 | % | 4.4 | % | 4.5 | % | 3.4 | % | |||||||||
6
Building Materials Distribution Segment
Statements of Operations
(unaudited, in thousands, except percentages)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2017 | September 30 | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Segment sales | $ | 1,045,646 | $ | 889,026 | $ | 980,706 | $ | 2,842,035 | $ | 2,456,322 | |||||||||
Costs and expenses | |||||||||||||||||||
Materials, labor, and other operating expenses (excluding depreciation) | 916,340 | 781,978 | 862,349 | 2,499,988 | 2,161,456 | ||||||||||||||
Depreciation and amortization | 3,910 | 3,514 | 3,856 | 11,492 | 10,103 | ||||||||||||||
Selling and distribution expenses | 79,846 | 72,237 | 74,648 | 220,342 | 201,313 | ||||||||||||||
General and administrative expenses | 6,189 | 5,451 | 5,548 | 16,730 | 15,310 | ||||||||||||||
Other (income) expense, net | (18 | ) | (569 | ) | (204 | ) | (370 | ) | (765 | ) | |||||||||
1,006,267 | 862,611 | 946,197 | 2,748,182 | 2,387,417 | |||||||||||||||
Segment income | $ | 39,379 | $ | 26,415 | $ | 34,509 | $ | 93,853 | $ | 68,905 | |||||||||
(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) | 87.6 | % | 88.0 | % | 87.9 | % | 88.0 | % | 88.0 | % | |||||||||
Depreciation and amortization | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | |||||||||
Selling and distribution expenses | 7.6 | % | 8.1 | % | 7.6 | % | 7.8 | % | 8.2 | % | |||||||||
General and administrative expenses | 0.6 | % | 0.6 | % | 0.6 | % | 0.6 | % | 0.6 | % | |||||||||
Other (income) expense, net | — | % | (0.1 | )% | — | % | — | % | — | % | |||||||||
96.2 | % | 97.0 | % | 96.5 | % | 96.7 | % | 97.2 | % | ||||||||||
Segment income | 3.8 | % | 3.0 | % | 3.5 | % | 3.3 | % | 2.8 | % | |||||||||
7
Segment Information
(unaudited, in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2017 | September 30 | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Segment sales | |||||||||||||||||||
Wood Products | $ | 366,920 | $ | 340,928 | $ | 350,277 | $ | 1,042,854 | $ | 990,743 | |||||||||
Building Materials Distribution | 1,045,646 | 889,026 | 980,706 | 2,842,035 | 2,456,322 | ||||||||||||||
Intersegment eliminations and other | (185,922 | ) | (162,740 | ) | (192,044 | ) | (544,863 | ) | (455,383 | ) | |||||||||
Total net sales | $ | 1,226,644 | $ | 1,067,214 | $ | 1,138,939 | $ | 3,340,026 | $ | 2,991,682 | |||||||||
Segment income | |||||||||||||||||||
Wood Products | $ | 24,027 | $ | 11,564 | $ | 15,395 | $ | 46,810 | $ | 33,758 | |||||||||
Building Materials Distribution | 39,379 | 26,415 | 34,509 | 93,853 | 68,905 | ||||||||||||||
Total segment income | 63,406 | 37,979 | 49,904 | 140,663 | 102,663 | ||||||||||||||
Unallocated corporate and other | (7,398 | ) | (6,672 | ) | (7,455 | ) | (21,112 | ) | (20,084 | ) | |||||||||
Income from operations | $ | 56,008 | $ | 31,307 | $ | 42,449 | $ | 119,551 | $ | 82,579 | |||||||||
Segment EBITDA (a) | |||||||||||||||||||
Wood Products | $ | 39,364 | $ | 27,189 | $ | 30,659 | $ | 92,562 | $ | 75,786 | |||||||||
Building Materials Distribution | 43,289 | 29,929 | 38,365 | 105,345 | 79,008 | ||||||||||||||
See accompanying summary notes to consolidated financial statements and segment information.
8
Boise Cascade Company
Consolidated Balance Sheets
(unaudited, in thousands)
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current | |||||||
Cash and cash equivalents | $ | 172,185 | $ | 103,978 | |||
Receivables | |||||||
Trade, less allowances of $1,227 and $1,459 | 315,336 | 199,191 | |||||
Related parties | 285 | 506 | |||||
Other | 9,424 | 10,952 | |||||
Inventories | 459,864 | 433,451 | |||||
Prepaid expenses and other | 10,209 | 12,381 | |||||
Total current assets | 967,303 | 760,459 | |||||
Property and equipment, net | 555,197 | 568,702 | |||||
Timber deposits | 14,704 | 14,901 | |||||
Goodwill | 55,433 | 55,433 | |||||
Intangible assets, net | 15,260 | 15,547 | |||||
Deferred income taxes | 8,502 | 8,840 | |||||
Other assets | 14,151 | 15,315 | |||||
Total assets | $ | 1,630,550 | $ | 1,439,197 | |||
9
Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except per-share data)
September 30, 2017 | December 31, 2016 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current | |||||||
Accounts payable | |||||||
Trade | $ | 283,089 | $ | 194,010 | |||
Related parties | 2,235 | 1,903 | |||||
Accrued liabilities | |||||||
Compensation and benefits | 71,338 | 67,752 | |||||
Interest payable | 1,803 | 6,860 | |||||
Other | 68,460 | 42,339 | |||||
Total current liabilities | 426,925 | 312,864 | |||||
Debt | |||||||
Long-term debt | 438,033 | 437,629 | |||||
Other | |||||||
Compensation and benefits | 83,537 | 83,164 | |||||
Deferred income taxes | 12,434 | 6,339 | |||||
Other long-term liabilities | 20,308 | 19,197 | |||||
116,279 | 108,700 | ||||||
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, 43,727 and 43,520 shares issued, respectively | 437 | 435 | |||||
Treasury Stock, 5,167 shares at cost | (133,979 | ) | (133,979 | ) | |||
Additional paid-in capital | 520,220 | 515,410 | |||||
Accumulated other comprehensive loss | (82,246 | ) | (83,012 | ) | |||
Retained earnings | 344,881 | 281,150 | |||||
Total stockholders' equity | 649,313 | 580,004 | |||||
Total liabilities and stockholders' equity | $ | 1,630,550 | $ | 1,439,197 | |||
10
Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Nine Months Ended | |||||||
September 30 | |||||||
2017 | 2016 | ||||||
Cash provided by (used for) operations | |||||||
Net income | $ | 63,835 | $ | 34,159 | |||
Items in net income not using (providing) cash | |||||||
Depreciation and amortization, including deferred financing costs and other | 60,097 | 54,609 | |||||
Stock-based compensation | 6,931 | 5,980 | |||||
Pension expense | 1,074 | 1,749 | |||||
Deferred income taxes | 6,019 | 7,008 | |||||
Change in fair value of interest rate swaps | 462 | 765 | |||||
Other | (125 | ) | 67 | ||||
Loss on extinguishment of debt | — | 9,525 | |||||
Decrease (increase) in working capital, net of acquisitions | |||||||
Receivables | (110,646 | ) | (62,794 | ) | |||
Inventories | (26,413 | ) | (48,362 | ) | |||
Prepaid expenses and other | (2,389 | ) | (3,678 | ) | |||
Accounts payable and accrued liabilities | 108,099 | 102,313 | |||||
Pension contributions | (1,666 | ) | (3,338 | ) | |||
Income taxes payable | 11,051 | 13,623 | |||||
Restricted cash deposits with trustee for interest payments | — | (3,681 | ) | ||||
Other | 807 | 5,309 | |||||
Net cash provided by operations | 117,136 | 113,254 | |||||
Cash provided by (used for) investment | |||||||
Expenditures for property and equipment | (48,060 | ) | (55,426 | ) | |||
Acquisitions of businesses and facilities | — | (215,900 | ) | ||||
Proceeds from sales of assets and other | 2,089 | 546 | |||||
Net cash used for investment | (45,971 | ) | (270,780 | ) | |||
Cash provided by (used for) financing | |||||||
Borrowings of long-term debt, including revolving credit facility | 410,400 | 835,000 | |||||
Payments on long-term debt, including revolving credit facility | (410,400 | ) | (602,096 | ) | |||
Restricted cash deposits with trustee for debt payments | — | (119,175 | ) | ||||
Treasury stock purchased | — | (2,632 | ) | ||||
Financing costs | (478 | ) | (6,319 | ) | |||
Tax withholding payments on stock-based awards | (2,901 | ) | (383 | ) | |||
Other | 421 | (181 | ) | ||||
Net cash provided by (used for) financing | (2,958 | ) | 104,214 | ||||
Net increase (decrease) in cash and cash equivalents | 68,207 | (53,312 | ) | ||||
Balance at beginning of the period | 103,978 | 184,496 | |||||
Balance at end of the period | $ | 172,185 | $ | 131,184 | |||
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 presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2016 Form 10-K and the Company’s other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.
(a) | EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of debt. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended September 30, 2017 and 2016, and June 30, 2017, and the nine months ended September 30, 2017 and 2016: |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2017 | September 30 | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||
Net income | $ | 31,661 | $ | 9,981 | $ | 22,154 | $ | 63,835 | $ | 34,159 | |||||||||
Interest expense | 6,295 | 7,135 | 6,491 | 19,150 | 19,364 | ||||||||||||||
Interest income | (167 | ) | (60 | ) | (54 | ) | (254 | ) | (236 | ) | |||||||||
Income tax provision | 18,276 | 5,522 | 13,147 | 36,489 | 19,188 | ||||||||||||||
Depreciation and amortization | 19,686 | 19,459 | 19,601 | 58,631 | 53,249 | ||||||||||||||
EBITDA | 75,751 | 42,037 | 61,339 | 177,851 | 125,724 | ||||||||||||||
Change in fair value of interest rate swaps | 33 | (836 | ) | 724 | 462 | 765 | |||||||||||||
Loss on extinguishment of debt | — | 9,525 | — | — | 9,525 | ||||||||||||||
Adjusted EBITDA | $ | 75,784 | $ | 50,726 | $ | 62,063 | $ | 178,313 | $ | 136,014 | |||||||||
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The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended September 30, 2017 and 2016, and June 30, 2017, and the nine months ended September 30, 2017 and 2016:
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | June 30, 2017 | September 30 | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||
Wood Products | |||||||||||||||||||
Segment income | $ | 24,027 | $ | 11,564 | $ | 15,395 | $ | 46,810 | $ | 33,758 | |||||||||
Depreciation and amortization | 15,337 | 15,625 | 15,264 | 45,752 | 42,028 | ||||||||||||||
EBITDA | $ | 39,364 | $ | 27,189 | $ | 30,659 | $ | 92,562 | $ | 75,786 | |||||||||
Building Materials Distribution | |||||||||||||||||||
Segment income | $ | 39,379 | $ | 26,415 | $ | 34,509 | $ | 93,853 | $ | 68,905 | |||||||||
Depreciation and amortization | 3,910 | 3,514 | 3,856 | 11,492 | 10,103 | ||||||||||||||
EBITDA | $ | 43,289 | $ | 29,929 | $ | 38,365 | $ | 105,345 | $ | 79,008 | |||||||||
Corporate and Other | |||||||||||||||||||
Unallocated corporate expenses | $ | (7,398 | ) | $ | (6,672 | ) | $ | (7,455 | ) | $ | (21,112 | ) | $ | (20,084 | ) | ||||
Foreign currency exchange gain (loss) | 90 | (40 | ) | 13 | 131 | 186 | |||||||||||||
Change in fair value of interest rate swaps | (33 | ) | 836 | (724 | ) | (462 | ) | (765 | ) | ||||||||||
Loss on extinguishment of debt | — | (9,525 | ) | — | — | (9,525 | ) | ||||||||||||
Depreciation and amortization | 439 | 320 | 481 | 1,387 | 1,118 | ||||||||||||||
EBITDA | (6,902 | ) | (15,081 | ) | (7,685 | ) | (20,056 | ) | (29,070 | ) | |||||||||
Change in fair value of interest rate swaps | 33 | (836 | ) | 724 | 462 | 765 | |||||||||||||
Loss on extinguishment of debt | — | 9,525 | — | — | 9,525 | ||||||||||||||
Corporate and other adjusted EBITDA | $ | (6,869 | ) | $ | (6,392 | ) | $ | (6,961 | ) | $ | (19,594 | ) | $ | (18,780 | ) | ||||
Total company adjusted EBITDA | $ | 75,784 | $ | 50,726 | $ | 62,063 | $ | 178,313 | $ | 136,014 | |||||||||
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