Boise Cascade, L.L.C.

Good morning. My name is Jonathan, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascades' second quarter 2022 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 1 1 on your telephone keypad. Questions will be taken in the order they are received. 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, Senior Vice President, CFO, and Treasurer, Boise Cascades. Mr. Hibbs, you may begin your call.

Thank you, Jonathan, and good morning, everyone. I would like to welcome you to Boise Cascades second quarter 2022 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 NIT income to EBITDA and adjusted EBITDA and segment income to segment EBITDA. In addition, our second quarter press release and fully revamped investor presentation are available at the investor relations section of our website. I will now turn the call over to Nate.

Thanks, Kelly. Good morning, everyone. Thank you for joining us for Ernie's call today. I'm on slide number three. As recently announced, we completed the acquisition of the Coastal Flywood Company and I'm pleased to welcome our new associates to the Boise Cascade team. We will provide additional details on this transaction following the discussion of our financial results. Our consolidated second quarter sales of $2.3 billion were down 7% from second quarter 2021. Our net income was $218.1 million, or $5.49 per share, compared to net income of $302.6 million, or $7.62 per share in the year-ago quarter. Both of our businesses continue to operate well during the second quarter. In second quarter 2022, total U.S. housing starts increased 3% compared to the same period last year. Multi-family starts drove the increase, as single-family housing starts decreased 3% compared to the prior year quarter. Wood Products reported segment EBITDA of $167.8 million in the second quarter, compared to $227.9 million in the year-ago quarter. Wood products results were impacted by lower plywood sales prices as well as higher per-unit costs due to lower plywood and EWP sales volumes. However, improved EWP sales realizations helped mitigate these negative effects when compared to the prior year quarter. Building materials distribution reported segment EBITDA of $161 million on sales of $2.1 billion for the second quarter compared to $212.3 million of segment EBITDA on sales of $2.2 billion in the comparative prior year quarter. BMD results were negatively impacted by declining commodity wood products pricing during the quarter. However, margin improvements for both our EWP and general line products help offset commodity price declines. Kelly will now walk through the financial results and the coal supply wood acquisition in more detail, after which I'll come back to provide our outlook before we take your questions.