Boise Cascade, L.L.C.

Good morning. My name is Vincent, and I'll be your conference facilitator today. At this time, I would like to welcome everyone to the Boise Cascades second quarter 2019 conference call. All lines have been placed on me to prevent any background noise. After the speaker's remarks, there will be a question and answer period. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. Questions will be taken in the order they are received. If you would like to withdraw a question, press the pound key. Before we begin, I remind you that this call may contain forward-looking statements about the company's future business prospects and anticipated financial performance. These statements are not guarantees of the future performance and the company undertakes no duty to update them. Although these statements reflect management's expectations today, they are subject to a number of business risks and uncertainties. Actual results may differ materially from those expressed or implied in this call. For a discussion of the factors that may cost actual results to differ from the results anticipated, please refer to Boise Cascade's recent filings with the SEC. It is now my pleasure to introduce to you to Wayne Rancourt, Executive Vice President, CFO, and Treasurer, Boise Cascade. Mr. Rancourt, you may begin your conference.

Thank you, Vincent. Good morning, everyone. I would like to welcome you to Boise Cascade's second quarter 2019 earnings call and business update. Joining me on today's call are Tom Cork, our CEO, Nate Jorgensen, our Chief Operating Officer, Mike Brown, Head of our Wood Products Operations, and Nick Stokes, Head of our Building Materials. distribution operations. Tom is participating on the call remotely today, so Nate will step in and provide the executive summary comments, and we'll wrap up with our outlook. Tom will be available for the Q&A session. Turning to slide two, I would point out the information regarding our forward-looking statement. The appendix includes reconciliations from our GAAP net income to EBITDA and adjusted EBITDA. I will now turn the call over to Nate.

Thanks, Wayne. Good morning, everyone. Thank you for joining us for our earnings call today. I'm on slide three. Our second quarter sales of $1.2 billion were down 13 percent from second quarter 2018. Our net income was $27.7 million, or 71 cents per share, down from $1.06 per share in the year-ago quarter. Second quarter 2018 results included $9 million of net after-tax losses, or 23 cents a share, from non-cash pension settlement charges. Overall, the second quarter of 2019 results reflected weaker financial performances in both businesses, principally as a result of lower commodity wood products pricing. Total housing starts were flat compared to the same period last year. Single-family starts, the primary driver of our sales, decreased 6%, while multifamily starts increased 16%. Our operating performance in both businesses was quite good considering the environment. Consistent with our strategy, the volatility of our earnings has continued to decline as we emphasize growth in distribution in engineered wood products. Our wood products manufacturing business reported segment income of $18.9 million in the second quarter compared to $36.5 million in the year-ago quarter. Our building materials distribution business reported segment income of $33.8 million on quarterly sales of $1.1 billion for the second quarter comparative $47.7 million of segment income on quarterly sales of $1.2 billion in the comparative prior year quarter. Wayne will walk through the financial results in more detail, and then I'll come back to provide our outlook before we take your questions.