Boise Cascade, L.L.C.

Good morning. My name is Cree, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Boise Cascades second 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 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 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 results anticipated, please refer to Boise Cascades' recent filings with the SEC. It is now my pleasure to introduce your introduce you to Kelly Hibbs, Senior Vice President, CFO, and Treasurer, Boise Cascade. Mr. Hibbs, you may begin your conference.

Thank you, Cree. Good morning, everyone. I would like to welcome you to Boise Cascade second 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, and Jeff Strom, head of our building materials distribution operations. 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 second quarter sales at $2.4 billion were up 97% from second quarter of 2020. Our net income was $302.6 million. or $7.62 per share, compared to net income of $33.6 million, or $0.85 per share, in the year-ago quarter. In second quarter 2021, total U.S. housing starts increased 43% compared to the same period last year. Single-family housing starts, the primary driver of our sales volumes, increased 42%. During the period, our associates in both businesses performed with focus and dedication to capitalize on the strength in residential construction and delivered exceptional operating and financial results. Our wood products manufacturing business reported segment income of $213.8 million in the second quarter compared to $17.1 million in the year-ago quarter. Wood products benefited from historic plywood pricing levels and improved sales realization, EWP sales realizations and volumes compared to last year's second quarter. Wood products also continued efforts to increase manufacturing production rates to align with strong end product demand, particularly for our EWP business. Our building materials distribution business reported segment income of $206.3 million on sales of $2.2 billion for the second quarter, compared to $43.2 million of segment income on sales of $1.1 billion in the comparative prior year quarter. BMD's results were favorably impacted by higher commodity wood products pricing, driven by continued strength in new home construction activity. Commodity lumber prices fell sharply in the back half of the quarter, and Kelly will speak to the inventory valuation adjustment we recorded momentarily. As it relates to the general line and EWP product categories, supply constraints remain and demand was strong with the exception of a notable pause in demand in the back half of the quarter for products that sell through the home center channel. Kelly will walk through the financial results in more detail, and then I'll come back and provide our outlook before we take your questions.