Boise Cascade Co (BCC) Reports Q3 2023 Earnings: Net Income Drops 35% Year-Over-Year
Boise Cascade Co (NYSE:BCC) reported a net income of $143.1 million in Q3 2023, a 35% decrease from Q3 2022.
The company's sales also decreased by 15%, amounting to $1.8 billion in Q3 2023.
BCC completed the acquisition of BROSCO, supporting BMD's growth in the door and millwork business.
The company ended Q3 2023 with $1,273.0 million of cash and cash equivalents.
Boise Cascade Co (NYSE:BCC) released its Q3 2023 earnings report on October 30, 2023. The company reported a net income of $143.1 million, or $3.58 per share, on sales of $1.8 billion for the third quarter ended September 30, 2023. This is a significant decrease compared to the net income of $219.6 million, or $5.52 per share, on sales of $2.2 billion for the third quarter ended September 30, 2022.
Financial Performance and Highlights
Boise Cascade Co's Wood Products sales decreased by 13% to $515.2 million, and the Wood Products income decreased by 36% to $99.6 million. The Building Materials Distribution sales also decreased by 15% to $1,670.3 million, and its income decreased by 37% to $97.1 million.
Despite the decrease in sales and income, the company completed the acquisition of BROSCO, which supports BMD's growth in the door and millwork business and brings immediate scale in the Northeast markets. The company also declared quarterly and special dividends of $0.20 per share and $5.00 per share, respectively, on their common stock.
Balance Sheet and Liquidity
Boise Cascade Co ended Q3 2023 with $1,273.0 million of cash and cash equivalents and $395.9 million of undrawn committed bank line availability, for total available liquidity of $1,668.9 million. The company had $445.1 million of outstanding debt at the end of September 2023.
Outlook
The company's demand for products is correlated with new residential construction, residential repair-and-remodeling activity, and light commercial construction. Despite economic uncertainties, escalating mortgage rates, and home affordability challenges, the company is well-positioned to navigate market uncertainties as near-term demand for new residential construction evolves.
About Boise Cascade Co
Boise Cascade Co 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.
Explore the complete 8-K earnings release (here) from Boise Cascade Co for further details.
This article first appeared on GuruFocus.
