Boise Cascade reported strong fourth quarter results, with net sales in the quarter increasing 36% on a year-over-year (YOY) basis to $1.5 billion. The company also posted a fourth quarter net income of $26.0 million, compared to net income of $14.6 million in the fourth quarter of 2019.
Boise Cascade’s wood product sales, including sales to building materials distribution, increased 21% YOY to $358.7 million during the fiscal fourth quarter. The increase was driven primarily by higher plywood and lumber prices, as well as higher sales volumes for I-joists. The company said demand for plywood during the fourth quarter outpaced industry production levels, causing upward pressure on pricing. Boise Cascade’s income from its wood products segment increased $32.8 million YOY to $40.8 million in the fourth quarter, driven largely by higher plywood and lumber prices.
For the full 2020 fiscal year, wood product sales increased 4% to $1.3 billion. Boise Cascade said the increase in sales compared to the 2019 fiscal year were driven by higher plywood prices, as well as higher sales volumes for I-joists. The increases were partially offset by lower sales volumes of plywood and LVL, and lower net sales for engineered wood products. Net income from the wood products segment for the full fiscal year increased $73.5 million YOY to $127.7 million.
Boise Cascade’s building materials distribution sales increased 35% YOY in the fourth quarter to $1.3 billion. The increase in sales was driven by sales prices and volume increases of 26% and 9%, respectively. Commodity sales increased 62% YOY in the quarter, general line product sales increased 16% YOY in the quarter, and sales of engineered wood products increased 15% YOY in the quarter.
For the full fiscal year, building materials distribution sales increased 20% to $5.0 billion, driven by sales price and sales volume increases of 13% and 7% respectively. The segment’s income in the full fiscal year increased $131.3 million to $247.5 million.
“In the face of many challenges presented by extraordinary market conditions and the pandemic, I am proud that we delivered the best safety performance in our company’s history in 2020,” CEO Nate Joregensen said in a prepared statement. “Our associates showed great resilience, and we fully leveraged our proven values to provide direction and clarity to our team during these unprecedented times.”
Boise Cascade said fourth quarter results included several non-cash items that negatively affected reported earnings, including $6.2 million of pre-tax pension settlement charges related to the elimination of the company’s defined benefit pension plan and $38.8 million of income tax expense. The full fiscal year’s reported earnings were also impacted by $15.0 million and $1.7 million, respectively, of pre-tax accelerated depreciation and other curtailment related costs due to the permanent curtailment of I-joist production in Roxboro, N.C., and a $14.0 million pre-tax loss on extinguishment of debt as the company refinanced its senior notes at a lower interest rate with an extended maturity.
“We reinvested in our businesses through door shop expansions in Texas, facility expansions in a few key distribution markets, and the log utilization center project at our Florien mill,” Jorgenense said. “We also provided dividends to our shareholders and supported our team and communities in response to natural disasters in Louisiana and Oregon. I am optimistic and confident about 2021 and the future of Boise Cascade.”
Boise, Idaho-based Boise Cascade products engineered wood products and plywood in North America and is a wholesale distributor of building products.
