Boise Cascade, L.L.C.

Good morning. My name is Livia, and I'll be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascades' third quarter 2019 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll 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. Question will be taken in the order they are received. If you would like to withdraw your 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 future performance, and the company undertakes no duty to update them. Although these statements reflect management 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 discussion of the factors that may cause actual results to differ from the results anticipated, please refer to Boise Cascades' recent filings with the SEC. It is now my pleasure to introduce you to Wayne Wancourt, Executive Vice President, CFO, and Treasurer, Boise Cascades. Mr. Wancourt, you may begin your conference.

Thank you, Olivia. Good morning, everyone. I would like to welcome you to Boise Cascades third quarter 2019 earnings call and business update. Joining me on today's call are Tom Cork, our CEO, Nate Jorgensen, our COO, Mike Brown, head of our wood products operations, and Nick Stokes, head of our building materials distribution operations. Turning to slide two, I would point out the information regarding our forward-looking statements. The appendix of the presentation includes reconciliations from our gap net income to EBITDA and adjusted EBITDA and segment income to segment EBITDA. I will now turn the call over to Tom.

Thanks, Wayne. Good morning, everyone. Thank you for joining us for our earnings call today. I'm on slide three. Our third quarter sales of $1.3 billion were down 5% from third quarter 2018. Our net income was $27.2 million, or 69 cents per share, up from 35 cents per share in the year-ago quarter. Third quarter 2019 results include a $1 million after-tax loss, or 3 cents per share, from a non-cash pension settlement charge. Third quarter 2018 results included $16.7 million of net after-tax losses, or 42 cents per share, from a non-cash pension settlement charge and impairment in sale-related losses. Our operating performance in both businesses was solid, considering the limited demand growth and ongoing weakness in the plywood pricing environment. Consistent with our strategy, the volatility of our earnings has continued to decline as we emphasize growth in distribution and engineered wood products. Our wood products manufacturing business reported segment income of $15.6 million in the third quarter, compared to $13.9 million in the year-ago quarter. Wood products third quarter 2018 results included $11 million of pre-tax charges for asset impairment and sale-related losses. Our building materials distribution business reported segment income of $38.7 million on quarterly sales of $1.1 billion for the third quarter, compared to $23.5 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 will come back to provide our outlook before we take your questions.