EX-99.1 2 bccexhibit9916302013.htm EARNINGS RELEASE BCC Exhibit 99.1 6.30.2013


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: July 22, 2013

Boise Cascade Company Reports Second Quarter 2013 Net Income of $10.4 Million

BOISE, Idaho - Boise Cascade Company (Boise Cascade or Company) (NYSE: BCC) today reported net income of $10.4 million in the second quarter, or $0.24 per share, on 43.2 million weighted average shares outstanding.

Second Quarter 2013 Highlights

•
Second quarter sales of $852.3 million were 16% above the same quarter in 2012. Wood Products second quarter segment sales, including sales to the Company's Building Materials Distribution (BMD) segment, were $280.4 million, an increase of 16% from the year ago quarter. BMD segment sales were $681.5 million, an increase of 17% from the year ago quarter.

•
The Company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $30.7 million, up 9% from the $28.2 million reported in second quarter 2012.

•
Wood Products reported second quarter 2013 segment EBITDA of $29.6 million, up 36% from the $21.7 million reported in second quarter 2012.

•
BMD reported segment EBITDA of $5.5 million, down from the $10.9 million reported in second quarter 2012.

•
Subsequent to quarter end, we entered into an agreement to acquire two plywood plants for $102.0 million in cash.

Total and single-family U.S. housing starts improved approximately 17% and 14%, respectively, from the same period last year. The July 2013 Blue Chip consensus forecast for 2013 reflects 990,000 total U.S. housing starts, a 27% increase from 2012 levels. Total housing start levels remain below the historical average for the last 20 years of approximately 1.4 million units per year.

“Commodity pricing for structural panels and lumber was stronger than the prior year quarter, contributing to improved operating performance in our Wood Products segment. However, gross margins in our Building Materials Distribution segment were negatively impacted by a steady downward trajectory in commodity prices during the second quarter of 2013,” commented Tom Carlile, CEO. "In addition, we are pleased with our previously announced agreement to acquire two plywood plants in North and South Carolina. These facilities will complement our existing plywood and engineered wood manufacturing businesses and enable us to better serve our customers in the eastern and southeastern United States."



 
 
2Q 2013
 
2Q 2012
 
1Q 2013
 
 
 
 
 
 
 
 
 
(thousands)
 
 
 
 
 
 
 
Total sales
 
$
852,295

 
$
732,900

 
$
744,878

Net income
 
10,412

 
15,047

 
80,836

Adjusted net income1
 
10,412

 
15,047

 
12,170

Wood Products segment sales
 
280,417

 
241,842

 
269,216

Wood Products segment EBITDA1
 
29,562

 
21,661

 
27,061

BMD segment sales
 
681,486

 
580,545

 
581,129

BMD segment EBITDA1
 
5,493

 
10,893

 
10,175

1Reconciliations between our results reported in accordance with U.S. generally accepted accounting principles (GAAP) and adjusted net income and EBITDA are included in the summary notes at the end of this press release.

Wood Products Segment

Wood Products segment sales in the second quarter were $280.4 million, up 16% from the same quarter a year ago. The sales increase was attributable primarily to 13% higher plywood sales prices, 18% higher laminated veneer lumber (LVL) sales volumes, and 14% higher I-joist sales volumes. Higher EWP and lumber sales prices, as well as plywood and lumber sales volumes also contributed to segment sales growth. The segment reported EBITDA of $29.6 million for the quarter, compared with $21.7 million reported in second quarter 2012. The main factors contributing to the stronger financial performance were improved plywood, EWP, and lumber pricing. These improvements were offset partially by higher wood fiber costs.
 
Building Materials Distribution Segment

BMD segment sales were $681.5 million in the second quarter, up 17% from the same quarter a year ago. Price changes accounted for approximately 12% of the sales gain, with shipment volumes up approximately 5%. The largest sales gains were in commodity product and engineered wood product categories, with lower sales growth in general line products. BMD reported quarterly EBITDA of $5.5 million compared to $10.9 million in second quarter 2012. Second quarter 2013 gross margins at 9.1% were down 2.7 percentage points from the 11.8% reported in second quarter 2012. This decrease in gross margins, which includes lower of cost or market inventory write-downs, was primarily driven by a steady decline in commodity panel and lumber prices throughout second quarter 2013 with declines of more than 25% since early April 2013. The decline in gross margins was offset partially by positive sales growth leverage on selling and distribution expenses, as well as on general and administrative expenses.

Balance Sheet

Boise Cascade ended second quarter 2013 with $232.7 million of cash and cash equivalents and $290.7 million of undrawn committed bank line availability, for total available liquidity of $523.4 million. At June 30, 2013, Boise Cascade reported outstanding debt of $250.0 million.

Outlook

We expect to continue to experience demand below 20-year average historical levels for the products we manufacture and distribute for the balance of 2013. However, the housing industry has shown signs of improvement in the U.S. and we remain optimistic that the recent improvement in demand for our products will continue. Commodity product pricing began to rise again in July 2013; however, future pricing could be volatile in response to industry operating rates and inventory levels in various distribution channels. 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.


2

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 our website at www.bc.com.

Webcast and Conference Call

Boise Cascade will host a webcast and conference call on Tuesday, July 23, at 8 a.m. Eastern, at which time we will review the company's recent performance. 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 866-515-2910 (international callers should dial 617-399-5124), participant passcode 65130670, 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 Tuesday, July 23, at 12 p.m. Eastern through Tuesday, July 30, at 11 p.m. Eastern. Playback numbers are 888-286-8010 for U.S. calls and 617-801-6888 for international calls, and the passcode will be 50755646.

Basis of Presentation

We present our consolidated financial statements in accordance with GAAP. Our earnings release also supplements the GAAP presentations by reflecting EBITDA, a non-GAAP financial measure. EBITDA is defined as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is 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 is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA, however, is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income (loss), income (loss) 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 instead of net income (loss) or segment income (loss) 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 the limitations of EBITDA by relying on our GAAP results. Our measure of EBITDA is 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.


3

Boise Cascade Company
Consolidated Statements of Operations
(unaudited, in thousands, except per-share data)
 
Three Months Ended
 
Six Months Ended
 
June 30
 
March 31,
2013
 
June 30
 
2013
 
2012
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
Sales
$
852,295

 
$
732,900

 
$
744,878

 
$
1,597,173

 
$
1,319,886

 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
 
 
Materials, labor, and other operating expenses (excluding depreciation)
750,996

 
632,607

 
644,847

 
1,395,843

 
1,142,731

Depreciation and amortization
8,766

 
8,338

 
8,477

 
17,243

 
16,457

Selling and distribution expenses
60,102

 
60,468

 
57,004

 
117,106

 
114,282

General and administrative expenses
10,251

 
10,689

 
10,046

 
20,297

 
19,737

Other (income) expense, net
(39
)
 
653

 
(134
)
 
(173
)
 
285

 
830,076

 
712,755

 
720,240

 
1,550,316

 
1,293,492

 
 
 
 
 
 
 
 
 
 
Income from operations
22,219

 
20,145

 
24,638

 
46,857

 
26,394

 
 
 
 
 
 
 
 
 
 
Foreign exchange loss
(291
)
 
(289
)
 
(80
)
 
(371
)
 
(103
)
Interest expense
(4,781
)
 
(4,818
)
 
(4,891
)
 
(9,672
)
 
(9,631
)
Interest income
62

 
87

 
62

 
124

 
194

 
(5,010
)
 
(5,020
)
 
(4,909
)
 
(9,919
)
 
(9,540
)
 
 
 
 
 
 
 
 
 
 
Income before income taxes
17,209

 
15,125

 
19,729

 
36,938

 
16,854

Income tax (provision) benefit (a)
(6,797
)
 
(78
)
 
61,107

 
54,310

 
(139
)
Net income
$
10,412

 
$
15,047

 
$
80,836

 
$
91,248

 
$
16,715

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
 
  Basic
43,229

 
29,700

 
37,569

 
40,415

 
29,700

  Diluted
43,233

 
29,700

 
37,569

 
40,417

 
29,700

 
 
 
 
 
 
 
 
 
 
Net income per common share:
 
 
 
 
 
 
 
 
 
  Basic
$
0.24

 
$
0.51

 
$
2.15

 
$
2.26

 
$
0.56

  Diluted
$
0.24

 
$
0.51

 
$
2.15

 
$
2.26

 
$
0.56


See accompanying summary notes to consolidated financial statements and segment information.

4


Wood Products Segment
Statements of Operations
(unaudited, in thousands, except percentages)
 
Three Months Ended
 
Six Months Ended
 
June 30
 
March 31,
2013
 
June 30
 
2013
 
2012
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
Segment sales
$
280,417

 
$
241,842

 
$
269,216

 
$
549,633

 
$
452,985

 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 

 
 

 
 

 
 

Materials, labor, and other operating expenses (excluding depreciation)
241,745

 
210,404

 
233,384

 
475,129

 
396,800

Depreciation and amortization
6,517

 
6,113

 
6,253

 
12,770

 
12,018

Selling and distribution expenses
6,709

 
7,007

 
6,693

 
13,402

 
13,476

General and administrative expenses
2,408

 
2,112

 
2,131

 
4,539

 
4,020

Other (income) expense, net
(7
)
 
658

 
(53
)
 
(60
)
 
312

 
257,372

 
226,294

 
248,408

 
505,780

 
426,626

 
 
 
 
 
 
 
 
 
 
Segment income
$
23,045

 
$
15,548

 
$
20,808

 
$
43,853

 
$
26,359

 
 
 
 
 
 
 
 
 
 
 
(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)
86.2
 %
 
87.0
%
 
86.7
 %
 
86.4
 %
 
87.6
%
Depreciation and amortization
2.3
 %
 
2.5
%
 
2.3
 %
 
2.3
 %
 
2.7
%
Selling and distribution expenses
2.4
 %
 
2.9
%
 
2.5
 %
 
2.4
 %
 
3.0
%
General and administrative expenses
0.9
 %
 
0.9
%
 
0.8
 %
 
0.8
 %
 
0.9
%
Other (income) expense, net
—
 %
 
0.3
%
 
—
 %
 
—
 %
 
0.1
%
 
91.8
 %
 
93.6
%
 
92.3
 %
 
92.0
 %
 
94.2
%
 
 
 
 
 
 
 
 
 
 
Segment income
8.2
 %
 
6.4
%
 
7.7
 %
 
8.0
 %
 
5.8
%



5

Building Materials Distribution Segment
Statements of Operations
(unaudited, in thousands, except percentages)

 
Three Months Ended
 
Six Months Ended
 
June 30
 
March 31,
2013
 
June 30
 
2013
 
2012
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
Segment sales
$
681,486

 
$
580,545

 
$
581,129

 
$
1,262,615

 
$
1,031,961

 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
 
 
Materials, labor, and other operating expenses (excluding depreciation)
619,174

 
511,913

 
517,002

 
1,136,176

 
911,359

Depreciation and amortization
2,217

 
2,194

 
2,178

 
4,395

 
4,376

Selling and distribution expenses
53,393

 
53,461

 
50,311

 
103,704

 
100,806

General and administrative expenses
3,480

 
4,313

 
3,742

 
7,222

 
7,645

Other (income) expense, net
(54
)
 
(35
)
 
(101
)
 
(155
)
 
(105
)
 
678,210

 
571,846

 
573,132

 
1,251,342

 
1,024,081

 
 
 
 
 
 
 
 
 
 
Segment income
$
3,276

 
$
8,699

 
$
7,997

 
$
11,273

 
$
7,880

 
 
 
 
 
 
 
 
 
 
 
(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)
90.9
 %
 
88.2
 %
 
89.0
 %
 
90.0
 %
 
88.3
 %
Depreciation and amortization
0.3
 %
 
0.4
 %
 
0.4
 %
 
0.3
 %
 
0.4
 %
Selling and distribution expenses
7.8
 %
 
9.2
 %
 
8.7
 %
 
8.2
 %
 
9.8
 %
General and administrative expenses
0.5
 %
 
0.7
 %
 
0.6
 %
 
0.6
 %
 
0.7
 %
Other (income) expense, net
—
 %
 
—
 %
 
—
 %
 
—
 %
 
—
 %
 
99.5
 %
 
98.5
 %
 
98.6
 %
 
99.1
 %
 
99.2
 %
 
 
 
 
 
 
 
 
 
 
Segment income
0.5
 %
 
1.5
 %
 
1.4
 %
 
0.9
 %
 
0.8
 %



6

Segment Information
(unaudited, in thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30
 
March 31,
2013
 
June 30
 
2013
 
2012
 
 
2013
 
2012
Segment sales
 
 
 
 
 
 
 
 
 
Wood Products
$
280,417

 
$
241,842

 
$
269,216

 
$
549,633

 
$
452,985

Building Materials Distribution
681,486

 
580,545

 
581,129

 
1,262,615

 
1,031,961

Intersegment eliminations
(109,608
)
 
(89,487
)
 
(105,467
)
 
(215,075
)
 
(165,060
)
 
$
852,295

 
$
732,900

 
$
744,878

 
$
1,597,173

 
$
1,319,886

 
 
 
 
 
 
 
 
 
 
Segment income
 
 
 
 
 
 
 
 
 
Wood Products
$
23,045

 
$
15,548

 
$
20,808

 
$
43,853

 
$
26,359

Building Materials Distribution
3,276

 
8,699

 
7,997

 
11,273

 
7,880

Corporate and Other
(4,393
)
 
(4,391
)
 
(4,247
)
 
(8,640
)
 
(7,948
)
 
21,928

 
19,856

 
24,558

 
46,486

 
26,291

 
 
 
 
 
 
 
 
 
 
Interest expense
(4,781
)
 
(4,818
)
 
(4,891
)
 
(9,672
)
 
(9,631
)
Interest income
62

 
87

 
62

 
124

 
194

Income before income taxes
$
17,209

 
$
15,125

 
$
19,729

 
$
36,938

 
$
16,854

 
 
 
 
 
 
 
 
 
 
EBITDA (b)
 
 
 
 
 
 
 
 
 
Wood Products
$
29,562

 
$
21,661

 
$
27,061

 
$
56,623

 
$
38,377

Building Materials Distribution
5,493

 
10,893

 
10,175

 
15,668

 
12,256

Corporate and Other
(4,361
)
 
(4,360
)
 
(4,201
)
 
(8,562
)
 
(7,885
)
 
$
30,694

 
$
28,194

 
$
33,035

 
$
63,729

 
$
42,748


See accompanying summary notes to consolidated financial statements and segment information.

7



Boise Cascade Company
Consolidated Balance Sheets
(unaudited, in thousands)
 
 
June 30,
2013
 
December 31,
2012
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
Cash and cash equivalents
 
$
232,667

 
$
54,507

Receivables
 
 
 
 
Trade, less allowances of $2,546 and $2,696
 
205,722

 
134,743

Related parties
 
434

 
674

Other
 
6,612

 
6,204

Inventories
 
368,350

 
325,806

Deferred income taxes
 
19,749

 
2

Prepaid expenses and other
 
11,851

 
5,521

Total current assets
 
845,385

 
527,457

 
 
 
 
 
Property and equipment, net
 
261,309

 
265,924

Timber deposits
 
7,267

 
6,221

Deferred financing costs
 
7,279

 
7,562

Goodwill
 
12,170

 
12,170

Intangible assets
 
8,900

 
8,900

Deferred income taxes
 
44,819

 
—

Other assets
 
7,486

 
8,164

Total assets
 
$
1,194,615

 
$
836,398



8

Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except per-share data)
 
 
June 30,
2013
 
December 31,
2012
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
Accounts payable
 
 
 
 
Trade
 
$
195,206

 
$
140,192

Related parties
 
1,957

 
1,950

Accrued liabilities
 
 
 
 
Compensation and benefits
 
42,039

 
61,814

Interest payable
 
2,745

 
3,188

Other
 
30,875

 
29,043

 
 
272,822

 
236,187

Debt
 
 
 
 
Long-term debt
 
250,000

 
275,000

 
 
 
 
 
Other
 
 
 
 
Compensation and benefits
 
195,384

 
206,668

Other long-term liabilities
 
14,447

 
14,336

 
 
209,831

 
221,004

 
 
 
 
 
Redeemable equity
 
—

 
6,443

 
 
 
 
 
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, 43,229 and 29,700 shares issued and outstanding
 
432

 
297

Additional paid-in capital
 
494,908

 
256,927

Accumulated other comprehensive loss
 
(118,395
)
 
(121,229
)
Retained earnings (accumulated deficit)
 
85,017

 
(38,231
)
Total stockholders' equity
 
461,962

 
97,764

Total liabilities and stockholders' equity
 
$
1,194,615

 
$
836,398



9

Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited, in thousands)
 
 
Six Months Ended
 
 
June 30
 
 
2013
 
2012
Cash provided by (used for) operations
 
 
 
 
Net income
 
$
91,248

 
$
16,715

Items in net income not using (providing) cash
 
 
 
 
Depreciation and amortization, including deferred financing costs and other
 
18,131

 
17,664

Stock-based compensation
 
1,073

 
—

Pension expense
 
5,434

 
6,394

Deferred income taxes
 
(66,314
)
 
—

Other
 
(277
)
 
(469
)
Decrease (increase) in working capital, net of acquisitions
 
 
 
 
Receivables
 
(71,487
)
 
(59,482
)
Inventories
 
(42,544
)
 
(35,154
)
Prepaid expenses and other
 
(2,523
)
 
(2,251
)
Accounts payable and accrued liabilities
 
36,833

 
68,235

Pension contributions
 
(9,970
)
 
(7,874
)
Income taxes payable
 
(881
)
 
(29
)
Other
 
(4,546
)
 
1,034

Net cash provided by (used for) operations
 
(45,823
)
 
4,783

 
 
 
 
 
Cash provided by (used for) investment
 
 
 
 
Expenditures for property and equipment
 
(14,042
)
 
(10,952
)
Acquisitions of businesses and facilities
 
—

 
(2,355
)
Proceeds from sales of assets
 
546

 
145

Other
 
10

 
(1
)
Net cash used for investment
 
(13,486
)
 
(13,163
)
 
 
 
 
 
Cash provided by (used for) financing
 
 
 
 
Net proceeds from issuance of common stock
 
262,599

 
—

Issuances of long-term debt
 
55,000

 
—

Payments of long-term debt
 
(80,000
)
 
—

Financing costs
 
(321
)
 
—

Other
 
191

 
—

Net cash provided by financing
 
237,469

 
—

 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
178,160

 
(8,380
)
 
 
 
 
 
Balance at beginning of the period
 
54,507

 
182,455

 
 
 
 
 
Balance at end of the period
 
$
232,667

 
$
174,075



10

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 2012 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)
First quarter 2013 includes $68.7 million of income tax benefit associated with recording net deferred tax assets upon our conversion from a limited liability company to a corporation. The following table reconciles net income to adjusted net income for the three months ended June 30, 2013 and 2012, and March 31, 2013, and the six months ended June 30, 2013 and 2012:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
March 31,
2013
 
June 30
 
 
2013
 
2012
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in thousands, except per-share amounts)
 
 
 
 
 
 
 
 
 
 
 
Net income (GAAP basis)
 
$
10,412

 
$
15,047

 
$
80,836

 
$
91,248

 
$
16,715

Impact of deferred tax benefit
 
—

 
—

 
(68,666
)
 
(68,666
)
 
—

Adjusted net income (non-GAAP basis)
 
$
10,412

 
$
15,047

 
$
12,170

 
$
22,582

 
$
16,715

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
 
43,229

 
29,700

 
37,569

 
40,415

 
29,700

Diluted
 
43,233

 
29,700

 
37,569

 
40,417

 
29,700

 
 
 
 
 
 
 
 
 
 
 
Adjusted net income (non-GAAP basis), per share:
 
 
 
 
 
 
 
 
 
 
  Basic
 
$
0.24

 
$
0.51

 
$
0.32

 
$
0.56

 
$
0.56

  Diluted
 
$
0.24

 
$
0.51

 
$
0.32

 
$
0.56

 
$
0.56


(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 June 30, 2013 and 2012, and March 31, 2013, and the six months ended June 30, 2013 and 2012:
 
Three Months Ended
 
Six Months Ended
 
June 30
 
March 31,
2013
 
June 30
 
2013
 
2012
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in thousands)
 
 
 
 
 
 
 
 
 
 
Net income
$
10,412

 
$
15,047

 
$
80,836

 
$
91,248

 
$
16,715

Interest expense
4,781

 
4,818

 
4,891

 
9,672

 
9,631

Interest income
(62
)
 
(87
)
 
(62
)
 
(124
)
 
(194
)
Income tax provision (benefit)
6,797

 
78

 
(61,107
)
 
(54,310
)
 
139

Depreciation and amortization
8,766

 
8,338

 
8,477

 
17,243

 
16,457

EBITDA
$
30,694

 
$
28,194

 
$
33,035

 
$
63,729

 
$
42,748



11

The following table reconciles segment income (loss) to EBITDA for the three months ended June 30, 2013 and 2012, and March 31, 2013, and six months ended June 30, 2013 and 2012:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
March 31,
2013
 
June 30
 
 
2013
 
2012
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in thousands)
Wood Products
 
 
 
 
 
 
 
 
 
 
Segment income
 
$
23,045

 
$
15,548

 
$
20,808

 
$
43,853

 
$
26,359

Depreciation and amortization
 
6,517

 
6,113

 
6,253

 
12,770

 
12,018

EBITDA
 
29,562

 
21,661

 
27,061

 
56,623

 
38,377

 
 
 
 
 
 
 
 
 
 
 
Building Materials Distribution
 
 
 
 
 
 
 
 
 
 
Segment income
 
3,276

 
8,699

 
7,997

 
11,273

 
7,880

Depreciation and amortization
 
2,217

 
2,194

 
2,178

 
4,395

 
4,376

EBITDA
 
5,493

 
10,893

 
10,175

 
15,668

 
12,256

 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
Segment loss
 
(4,393
)
 
(4,391
)
 
(4,247
)
 
(8,640
)
 
(7,948
)
Depreciation and amortization
 
32

 
31

 
46

 
78

 
63

EBITDA
 
(4,361
)
 
(4,360
)
 
(4,201
)
 
(8,562
)
 
(7,885
)
 
 
 
 
 
 
 
 
 
 
 
Total Company EBITDA
 
$
30,694

 
$
28,194

 
$
33,035

 
$
63,729

 
$
42,748



12