Boise Cascade Company (NYSE:BCC) Q1 2023 Results Conference Call May 5, 2023 11:00 AM ET

Company Participants

Kelly Hibbs - SVP, CFO, & Treasurer

Nate Jorgensen - CEO & Director

Mike Brown - Head, Wood Products Operations

Jeff Strom - Head, Building Materials Distribution

Conference Call Participants

Kurt Yinger - D.A. Davidson

Susan Maklari - Goldman Sachs

George Staphos - Bank of America

Ketan Mamtora - BMO

Michael Roxland - Truist

Operator

Good morning. My name is Michelle, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Boise Cascade's First Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer period. [Operator Instructions]

It is now my pleasure to introduce you to Kelly Hibbs, Senior Vice President, CFO and Treasurer, Boise Cascade. Mr. Hibbs, you may begin your conference.

Kelly Hibbs

Thank you, Michelle, and good morning, everyone. I would like to welcome you to Boise Cascade's first quarter 2023 earnings call and business update. Joining me on today's call are Nate Jorgensen, our CEO; Mike Brown, Head of our Wood Products Operations; and Jeff Strom, Head of our Building Materials Distribution operations.

Turning to Slide 2. This call will contain forward-looking statements. Please review the warning statements in our press release, on the presentation slides and in our filings with the SEC regarding the risks associated with these forward-looking statements. Also, please note that the appendix includes reconciliations from our GAAP net income to EBITDA and adjusted EBITDA and segment income to segment EBITDA.

I will now turn the call over to Nate.

Nate Jorgensen

Thanks, Kelly. Good morning, everyone. Thank you for joining its earnings call today. I'm on Slide 3. Both of our businesses delivered solid financial results despite the expected weaker environment from lower single-family housing starts and commodity product pricing. Total U.S. housing starts declined 18%, driven by a decrease in single-family housing starts at 29% compared to the prior year quarter.

Our consolidated first quarter sales of $1.5 billion were down 34% from first quarter 2022. Our net income was $96.7 million or $2.43 per share compared to net income of $302.6 million or $7.61 per share in the year ago quarter. Wood Products reported segment EBITDA of $93.2 million in the first quarter compared to $203.8 million in the year ago quarter. Wood Products team delivered very good financial results in an environment that requires thoughtful management of production levels given the uncertainties relative to demand.