Boise Cascade, L.L.C.

Good morning. My name is Jeff, and I'll be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascades' first quarter 2021 conference call. All lines have been placed on mute 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 and then the number one on your telephone keypad. Questions 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'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 cause 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 you to Kelly Hibbs, Incoming Senior Vice President CFO and Treasurer of Boise Cascades. Mr. Hibbs, you may begin your conference.

Thank you, Jeff. Good morning, everyone. I would like to welcome you to Boise Cascades first quarter 2021 earnings call and business update. Joining me on today's call are Nate Jorgensen, our CEO, Mike Brown, head of our wood products operations, Jeff Strom, head of our building materials distribution operations, and Wayne Rancourt, our CFO, who will be retiring a week from today after nearly 36 years of outstanding service to Boise Cascade. Turning to slide two, I would point out the information regarding our forward-looking statements. 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.

Thanks, Kelly. Good morning, everyone. Thank you for joining us for our earnings call today. I'm on slide number three. Our first quarter sales of $1.8 billion were up 56% from first quarter 2020. Our net income was $149.2 million, or $3.76 per share, compared to net income of $12.2 million, or $0.31 per share, in the year-ago quarter. First quarter 2020 results included $15 million of pre-taxed accelerated appreciation, and $1.7 million of other closure-related costs, or $0.32 per share after tax due to the permanent curtailment of high-joice production at our Roxborough, North Carolina facility. In first quarter 2021, total U.S. housing starts increased 10% compared to the same period last year. Single-family housing starts, the primary driver of our sales volumes, increased 20%. Given the extraordinary market conditions caused by stronger-than-typical demand during the winter months, In ongoing imbalance between industry supply and end product demand for wood-based commodities, both businesses delivered tremendous financial results during the period. Our wood products manufacturing business reported segment income of $97.1 million in the first quarter compared to $3.8 million in the year-ago quarter. Wood products continued its focus on increasing manufacturing production rates in response to strong end product demand, particularly for EWP. Our building materials distribution business reported segment income of $120.2 million on sales of $1.6 billion for the first quarter, compared to $29.3 million of segment income on sales of $1 billion in a comparative prior year quarter. BMD's sales and income were strong throughout the first quarter as our retail lumberyard customers relied on our broad base of inventory and high service levels to minimize their working capital investment, given the historically high commodity product prices. Kelly will walk through the financial results in more detail, and then I'll come back and provide an outlook before we take your questions.