Boise Cascade Company reported its financial results for the nine months ended September 30, 2024, revealing a decline in both revenue and profitability compared to the same period in 2023. Net income for the nine months was $307.5 million, down from $386.1 million in the prior year. The company experienced a decrease in net cash provided by operations, which fell to $343.8 million from $521.1 million in 2023. This decline was attributed to increased working capital needs and higher cash outflows for capital expenditures and stock repurchases.
Total net sales for the nine months ended September 30, 2024, were $5.16 billion, a slight decrease from $5.19 billion in the same period last year. The Wood Products segment reported sales of $1.41 billion, down from $1.48 billion, while the Building Materials Distribution (BMD) segment saw a modest increase in sales to $4.73 billion from $4.69 billion. The overall decrease in sales was influenced by lower prices for engineered wood products (EWP) and plywood, alongside reduced sales volumes.
In terms of operational performance, income from operations for the nine months decreased to $397.3 million from $503.2 million in 2023. The Wood Products segment's income fell significantly, attributed to lower sales prices and higher conversion costs. The BMD segment also reported a decline in income due to increased selling and distribution expenses.
Boise Cascade made strategic moves during the period, including the acquisition of Brockway-Smith Company (BROSCO) for $166.2 million, completed on October 2, 2023, and a door and millwork operation in Boise, Idaho, for $3.5 million on August 5, 2024. These acquisitions are expected to enhance the company's market position in the building materials sector.
The company’s balance sheet showed total assets of $3.44 billion as of September 30, 2024, slightly down from $3.46 billion at the end of 2023. Cash and cash equivalents decreased to $761.6 million from $949.6 million, while total stockholders' equity fell to $2.12 billion from $2.20 billion. Long-term debt remained relatively stable at $445.9 million.
Boise Cascade's operational challenges were compounded by market conditions, including a forecasted decline in U.S. housing starts for 2024, which are expected to impact demand for its products. The company anticipates modest growth in home improvement spending in 2025, driven by an aging housing stock and homeowner equity levels.
About BOISE CASCADE Co
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