UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report: |
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October 21, 2003 |
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Date of Earliest Event Reported: |
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October 21, 2003 |
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BOISE CASCADE CORPORATION |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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1-5057 |
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82-0100960 |
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(State
or other jurisdiction of |
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(Commission
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(I.R.S.
Employer |
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1111 West Jefferson Street |
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83728-0001 |
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(Address of principal executive offices) |
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(Zip Code) |
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208/384-6161 |
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(Registrant’s telephone number, including area code) |
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Item 7. Financial Statements and Exhibits
(c) Exhibits.
Exhibit 99.1 Boise Cascade Corporation earnings release dated October 21, 2003
Exhibit 99.2 Selected pages from Boise Cascade Corporation’s Third Quarter 2003 Fact Book
Item 12. Results of Operations and Financial Condition.
On October 21, 2003, we issued an earnings release announcing our third-quarter 2003 financial results, a copy of which is attached as Exhibit 99.1. Additionally, executive management will discuss our third-quarter earnings during a webcast and conference call to be held today, October 21, at 12 noon (ET). To access the webcast or conference call, please go to our website at www.bc.com.
We will issue our Third Quarter 2003 Fact Book after we file our third-quarter Form 10-Q in November. In the interim period, selected pages from the Fact Book (Financial Highlights, Summary of Operations, Statistical Review/2003, and Statistical Review/2002) are attached as Exhibit 99.2.
We present our consolidated financial statements in accordance with generally accepted accounting principles (GAAP). To supplement the GAAP presentations, we also present the results of our operations before nonroutine gains and losses. For example, in the attached press release, we present results from the third quarter of 2003 and the first nine months of 2002 and 2003 that exclude items such as asset write-downs, the effect of accounting changes, and other items we believe are not indicative of our ongoing operations.
We believe our presentation of results before nonroutine items provides useful information to both investors and management by excluding gains and losses that are not indicative of our core operating results.
We have reconciled the non-GAAP financial measures to our reported financial performance in the financial notes that accompany our press release.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BOISE CASCADE CORPORATION |
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By |
/s/ Karen E. Gowland |
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Karen E. Gowland |
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Vice President and Corporate Secretary |
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Date: October 21, 2003 |
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3
EXHIBIT INDEX
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Number |
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Description |
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99.1 |
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Boise Cascade Corporation earnings release dated October 21, 2003 |
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99.2 |
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Selected pages from Boise Cascade Corporation’s Third Quarter 2003 Fact Book |
4
Exhibit 99.1
Boise Cascade Corporation |
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Corporate Communications Department |
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1111 West Jefferson Street PO Box 50 Boise, ID 83728 |
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News Release
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Media Contact |
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Investor Contact |
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Ralph Poore |
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Vincent Hannity |
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Office 208 384 7294 Home 208 331 2023 |
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Office 208 384 6390 Cell 208 890 6385 |
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For Immediate Release: October 21, 2003
BOISE ANNOUNCES THIRD QUARTER 2003 FINANCIAL RESULTS
BOISE, Idaho – Boise Cascade Corporation (NYSE:BCC) today reported third-quarter net income of $32.9 million, or 48 cents per diluted share, compared with net income of $8.5 million, or 9 cents per diluted share, in third quarter 2002. Before nonroutine items, the results were $30.0 million, or 43 cents per diluted share. Included in net income for the quarter is a net $2.9 million one-time tax benefit, or 5 cents per share, related to a favorable tax court ruling. A reconciliation of this item to our reported financial performance is included in the notes to the consolidated financial statements. In second quarter 2003, Boise reported a net loss of $3.9 million, or 12 cents per diluted share.
FINANCIAL HIGHLIGHTS
($ in millions, except per-share amounts)
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3Q |
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3Q |
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2Q |
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Sales |
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$ |
2,111 |
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$ |
1,935 |
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$ |
1,929 |
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Net income (loss) |
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$ |
32.9 |
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$ |
8.5 |
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$ |
(3.9 |
) |
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Net income (loss) per diluted share |
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$ |
0.48 |
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$ |
0.09 |
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$ |
(0.12 |
) |
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BEFORE NONROUTINE ITEMS |
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Net income (loss) |
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$ |
30.0 |
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$ |
8.5 |
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$ |
(3.9 |
) |
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Net income (loss) per diluted share |
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$ |
0.43 |
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$ |
0.09 |
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$ |
(0.12 |
) |
Sales in third quarter 2003 increased 9% to $2.11 billion, compared with $1.94 billion in the third quarter a year ago. Sales in second quarter 2003 were $1.93 billion.
Boise Office Solutions
($ in millions)
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3Q |
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3Q |
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2Q |
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Sales |
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$ |
934 |
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$ |
900 |
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$ |
905 |
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Operating income |
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$ |
31.0 |
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$ |
29.8 |
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$ |
23.9 |
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Operating income in Boise Office Solutions in the third quarter was $31.0 million, up from $29.8 million in the same quarter a year ago and from $23.9 million in second quarter. Segment sales, income, and operating margin increased sequentially in the third quarter. The operating margin was 3.3% in the third quarter of both years and 2.6% in second quarter 2003.
Third quarter 2003 sales, as well as sales for locations operating in both periods, increased 4% year over year to $934 million. Sales of office supplies and paper rose 2%, technology products and furniture sales both increased 7%. Excluding foreign exchange gains, third-quarter sales were flat with those of a year ago. Boise’s office papers sold through Boise Office Solutions increased 2% to 142,000 tons, compared with a year ago. Compared with second quarter 2003, total sales and same-location sales in the third quarter increased 3%.
Boise Building Solutions
($ in millions)
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3Q |
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3Q |
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2Q |
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Sales |
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$ |
828 |
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$ |
671 |
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$ |
693 |
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Operating income |
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$ |
56.4 |
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$ |
14.5 |
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$ |
9.8 |
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Boise Building Solutions reported operating income of $56.4 million in the third quarter 2003, compared with $14.5 million in the same quarter a year ago and $9.8 million in second quarter 2003. The combination of high housing starts, a compressed building season, low inventories, and other factors led to sharp increases in wood product prices in the third-quarter.
Relative to third quarter 2002, average plywood prices increased 28%; lumber prices declined 5%. Plywood unit sales volume rose 8% year over year, while lumber volume declined 9%. Sales of engineered wood products grew 25%, compared with third quarter 2002. Building materials distribution sales increased 28% year over year.
Relative to second quarter 2003, average plywood and lumber prices increased 28% and 12%, respectively. Unit sales volumes were 5% higher in plywood but decreased 3% in lumber. Engineered
2
wood products sales increased 13% from the previous quarter. Building materials distribution sales increased 19% from second quarter 2003.
Boise Paper Solutions
($ in millions)
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3Q |
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3Q |
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2Q |
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Sales |
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$ |
474 |
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$ |
485 |
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$ |
459 |
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Operating income |
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$ |
0.2 |
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$ |
17.2 |
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$ |
1.0 |
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Operating income in Boise Paper Solutions was $200,000 in third quarter 2003, compared with $17.2 million in the same quarter a year ago and $1.0 million in second quarter 2003. Average paper prices were flat with year-ago prices. Results were lower than those of a year ago because of lower unit sales volume and increased unit manufacturing costs. Combined energy and chemical unit costs were 5% higher than a year ago. Fiber costs rose 7%.
Relative to second quarter 2003, modestly lower average product prices were offset by higher volumes and lower unit costs. Boise took approximately 32,000 tons of market-related curtailment in the third quarter, compared with 16,000 tons in the year-ago third quarter and 67,000 tons in second quarter 2003.
OUTLOOK
“In the fourth quarter of 2003, we expect year-over-year same-location sales in Boise Office Solutions to remain positive, and operating income in that business to be similar to third-quarter performance,” said George J. Harad, chairman and chief executive officer. “We expect building products markets to weaken seasonally and Boise Building Solutions to post lower income in the fourth quarter than in the third quarter. Finally, in our paper business, we expect market conditions to continue to be lackluster. Boise Paper Solutions performance in the fourth quarter is likely to be similar to that of the third quarter.”
Boise delivers office, building, and paper solutions that help our customers manage productive offices and construct well-built homes — two of the most important activities in our society. Boise’s 24,000 employees help people work more efficiently, build more effectively, and create new ways to meet business challenges. Boise also provides constructive solutions for environmental conservation by managing natural resources for the benefit of future generations. Boise posted sales of $7.4 billion in 2002. Visit the Boise website at http://www.bc.com.
3
WEBCAST AND CONFERENCE CALL
Boise will host an audiovisual webcast and conference call on Tuesday, October 21, 2003, at noon Eastern Daylight Time, at which we will review the company’s recent performance and discuss the outlook for our businesses. You can join the webcast through the Boise website. Go to www.bc.com, and click on Investor Relations to find the link to the webcast. Please go to the website at least 15 minutes before the start of the webcast to register and to download and install any necessary audio software. To join the conference call, dial (800) 374-0165 — international callers should dial (706) 634-0995 — at least 10 minutes before the start of the call. The archived webcast will be available on the Presentations page of the Investor Relations section of Boise’s website.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Statements that are not historical or current facts, including statements about our expectations, are forward-looking statements. These statements include the words “expect,” “should,” “is likely,” or similar expressions. These forward-looking statements cover our anticipated financial results and future business prospects. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected. Those risks and uncertainties include, in addition to those contained in our filings with the SEC: i) general economic or industry conditions could be less favorable than expected, resulting in a decrease in the demand for our products or an increase in our costs; ii) competitive pressures, including changes in foreign and domestic production capacity, could change and affect our profitability particularly in our commodity paper and wood products businesses; iii) extreme weather or other natural disasters, such as fire, could impact our financial results, particularly our cost structure; and iv) our announced acquisition of OfficeMax and exploration of strategic alternatives for our other businesses could impact customer demand, increase our cost of procuring financing, or create other impacts on our financial results. Forward-looking statements speak only as of the date of this release. We undertake no obligation to update them in light of new information.
4
BOISE CASCADE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(thousands, except per-share amounts)
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Three Months Ended |
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September 30 |
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June 30, |
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2003 |
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2002 |
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2003 |
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Sales |
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$ |
2,110,601 |
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$ |
1,935,231 |
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$ |
1,928,984 |
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Costs and expenses |
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Materials, labor, and other operating expenses |
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1,695,809 |
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1,574,391 |
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1,578,445 |
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Depreciation, amortization, and cost of company timber harvested |
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78,019 |
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78,346 |
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73,730 |
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Selling and distribution expenses |
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224,405 |
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197,135 |
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217,472 |
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General and administrative expenses |
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38,576 |
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39,151 |
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35,297 |
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Other (income) expense, net |
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1,133 |
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(74 |
) |
1,836 |
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2,037,942 |
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1,888,949 |
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1,906,780 |
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Equity in net income (loss) of affiliates |
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4,038 |
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(299 |
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474 |
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Income from operations |
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76,697 |
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45,983 |
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22,678 |
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Interest expense |
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(31,657 |
) |
(28,731 |
) |
(27,753 |
) |
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Interest income |
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221 |
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285 |
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318 |
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|||
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Foreign exchange gain (loss) |
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133 |
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(671 |
) |
1,860 |
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|||
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(31,303 |
) |
(29,117 |
) |
(25,575 |
) |
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Income (loss) before income taxes and minority interest |
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45,394 |
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16,866 |
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(2,897 |
) |
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Income tax (provision) benefit |
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(12,510 |
) |
(6,324 |
) |
985 |
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Income (loss) before minority interest |
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32,884 |
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10,542 |
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(1,912 |
) |
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Minority interest, net of income tax |
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— |
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(2,032 |
) |
(2,022 |
) |
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Net income (loss) |
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32,884 |
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8,510 |
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(3,934 |
) |
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Preferred dividends |
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(3,191 |
) |
(3,262 |
) |
(3,287 |
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Net income (loss) applicable to common shareholders |
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$ |
29,693 |
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$ |
5,248 |
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$ |
(7,221 |
) |
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Net income (loss) per common share |
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|
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Basic |
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$ |
0.51 |
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$ |
0.09 |
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$ |
(0.12 |
) |
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Diluted |
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$ |
0.48 |
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$ |
0.09 |
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$ |
(0.12 |
) |
5
SEGMENT INFORMATION
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Three Months Ended |
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September 30 |
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June 30, |
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2003 |
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2002 |
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(thousands) |
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Segment sales |
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Boise Office Solutions |
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$ |
934,050 |
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$ |
899,883 |
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$ |
904,929 |
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Boise Building Solutions |
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828,097 |
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671,477 |
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692,843 |
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Boise Paper Solutions |
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474,167 |
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485,155 |
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459,376 |
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Intersegment eliminations and other |
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(125,713 |
) |
(121,284 |
) |
(128,164 |
) |
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$ |
2,110,601 |
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$ |
1,935,231 |
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$ |
1,928,984 |
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|
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Segment income (loss) |
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Boise Office Solutions |
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$ |
30,961 |
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$ |
29,783 |
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$ |
23,883 |
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|
Boise Building Solutions |
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56,445 |
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14,515 |
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9,820 |
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Boise Paper Solutions |
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191 |
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17,171 |
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1,023 |
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Corporate and Other |
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(10,546 |
) |
(15,872 |
) |
(9,870 |
) |
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77,051 |
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45,597 |
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24,856 |
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|||
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Interest expense |
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(31,657 |
) |
(28,731 |
) |
(27,753 |
) |
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Income (loss) before income taxes and minority interest |
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$ |
45,394 |
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$ |
16,866 |
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$ |
(2,897 |
) |
6
BOISE CASCADE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(thousands, except per-share amounts)
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|
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Nine Months Ended September 30 |
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||||
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2003 |
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2002 |
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Sales |
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$ |
5,892,828 |
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$ |
5,611,481 |
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|
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Costs and expenses |
|
|
|
|
|
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Materials, labor, and other operating expenses |
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4,789,443 |
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4,575,402 |
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||
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Depreciation, amortization, and cost of company timber harvested |
|
227,331 |
|
229,770 |
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Selling and distribution expenses |
|
656,039 |
|
583,907 |
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||
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General and administrative expenses |
|
109,246 |
|
115,020 |
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||
|
Other (income) expense, net |
|
14,121 |
|
29,215 |
|
||
|
|
|
5,796,180 |
|
5,533,314 |
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||
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|
|
|
|
|
|
||
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Equity in net income (loss) of affiliates |
|
4,453 |
|
(2,354 |
) |
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|
|
|
|
|
|
|
||
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Income from operations |
|
101,101 |
|
75,813 |
|
||
|
|
|
|
|
|
|
||
|
Interest expense |
|
(88,290 |
) |
(88,789 |
) |
||
|
Interest income |
|
653 |
|
1,340 |
|
||
|
Foreign exchange gain (loss) |
|
2,949 |
|
(528 |
) |
||
|
|
|
(84,688 |
) |
(87,977 |
) |
||
|
Income (loss) before income taxes, minority interest, and cumulative effect of accounting changes |
|
16,413 |
|
(12,164 |
) |
||
|
Income tax (provision) benefit |
|
(2,161 |
) |
23,342 |
|
||
|
|
|
|
|
|
|
||
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Income before minority interest and cumulative effect of accounting changes |
|
14,252 |
|
11,178 |
|
||
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Minority interest, net of income tax |
|
(4,045 |
) |
(6,045 |
) |
||
|
|
|
|
|
|
|
||
|
Income before cumulative effect of accounting changes |
|
10,207 |
|
5,133 |
|
||
|
Cumulative effect of accounting changes, net of income tax |
|
(8,803 |
) |
— |
|
||
|
|
|
|
|
|
|
||
|
Net income |
|
1,404 |
|
5,133 |
|
||
|
Preferred dividends |
|
(9,744 |
) |
(9,812 |
) |
||
|
|
|
|
|
|
|
||
|
Net loss applicable to common shareholders |
|
$ |
(8,340 |
) |
$ |
(4,679 |
) |
|
|
|
|
|
|
|
||
|
Net income (loss) per common share |
|
|
|
|
|
||
|
Basic and diluted before cumulative effect of accounting changes |
|
$ |
0.01 |
|
$ |
(0.08 |
) |
|
Cumulative effect of accounting changes |
|
(0.15 |
) |
— |
|
||
|
Basic and diluted |
|
$ |
(0.14 |
) |
$ |
(0.08 |
) |
7
SEGMENT INFORMATION (1)
|
|
|
Nine Months Ended September 30 |
|
||||
|
|
|
2003 |
|
2002 |
|
||
|
|
|
(thousands) |
|
||||
|
Segment sales |
|
|
|
|
|
||
|
Boise Office Solutions |
|
$ |
2,777,258 |
|
$ |
2,639,874 |
|
|
Boise Building Solutions |
|
2,095,584 |
|
1,901,520 |
|
||
|
Boise Paper Solutions |
|
1,401,756 |
|
1,422,701 |
|
||
|
Intersegment eliminations and other |
|
(381,770 |
) |
(352,614 |
) |
||
|
|
|
$ |
5,892,828 |
|
$ |
5,611,481 |
|
|
|
|
|
|
|
|
||
|
Segment income (loss) |
|
|
|
|
|
||
|
Boise Office Solutions |
|
$ |
75,516 |
|
$ |
90,603 |
|
|
Boise Building Solutions |
|
57,812 |
|
37,341 |
|
||
|
Boise Paper Solutions |
|
529 |
|
15,176 |
|
||
|
Corporate and Other |
|
(29,154 |
) |
(66,495 |
) |
||
|
|
|
104,703 |
|
76,625 |
|
||
|
|
|
|
|
|
|
||
|
Interest expense |
|
(88,290 |
) |
(88,789 |
) |
||
|
|
|
|
|
|
|
||
|
Income (loss) before income taxes, minority interest, and cumulative effect of accounting changes |
|
$ |
16,413 |
|
$ |
(12,164 |
) |
|
|
|
|
|
|
|
||
|
Before nonroutine items |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Segment income (loss) |
|
|
|
|
|
||
|
Boise Office Solutions |
|
$ |
84,739 |
|
$ |
90,603 |
|
|
Boise Building Solutions |
|
57,812 |
|
37,341 |
|
||
|
Boise Paper Solutions |
|
730 |
|
15,176 |
|
||
|
Corporate and Other |
|
(28,464 |
) |
(42,849 |
) |
||
|
|
|
114,817 |
|
100,271 |
|
||
|
|
|
|
|
|
|
||
|
Interest expense |
|
(88,290 |
) |
(88,789 |
) |
||
|
|
|
|
|
|
|
||
|
Income before income taxes, minority interest, and cumulative effect of accounting changes |
|
$ |
26,527 |
|
$ |
11,482 |
|
8
(1) Financial Information
The Consolidated Statements of Income (Loss) and Segment Information are unaudited statements, which do not include all Notes to Consolidated Financial Statements, and should be read in conjunction with the company’s 2002 Annual Report on Form 10-K. In all periods presented, net income (loss) involved estimates and accruals.
(2) Reconciliation of Net Income (Loss) and Diluted Income (Loss) Per Share Before Nonroutine Items and Cumulative Effect of Accounting Changes
We evaluate our results of operations both before and after nonroutine gains and losses. We believe our presentation of financial measures before nonroutine items enhances our investors’ overall understanding of our recurring operational performance and our prospects for the future. Specifically, we believe the results before nonroutine items provide useful information to both investors and management by excluding gains and losses that are not indicative of our core operating results.
There were no nonroutine items during the three months ended June 30, 2003, or September 30, 2002. In the following table, we reconcile our financial measures before nonroutine items to our reported financial results for the three months ended September 30, 2003, and the nine months ended September 30, 2003 and 2002 (see Notes 3, 4, and 5).
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||||||||||||||
|
|
|
September 30, 2003 |
|
September 30, 2003 |
|
September 30, 2002 |
|
|||||||||||||||||||||
|
|
|
As |
|
Non- |
|
Before |
|
As |
|
Non- |
|
Before |
|
As |
|
Non- |
|
Before |
|
|||||||||
|
|
|
(millions, except per-share amounts) |
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Boise Office Solutions |
|
$ |
31.0 |
|
$ |
— |
|
$ |
31.0 |
|
$ |
75.5 |
|
$ |
9.2 |
|
$ |
84.7 |
|
$ |
90.6 |
|
$ |
— |
|
$ |
90.6 |
|
|
Boise Building Solutions |
|
56.4 |
|
— |
|
56.4 |
|
57.8 |
|
— |
|
57.8 |
|
37.3 |
|
— |
|
37.3 |
|
|||||||||
|
Boise Paper Solutions |
|
0.2 |
|
— |
|
0.2 |
|
0.5 |
|
0.2 |
|
0.7 |
|
15.2 |
|
— |
|
15.2 |
|
|||||||||
|
Corporate and Other |
|
(10.5 |
) |
— |
|
(10.5 |
) |
(29.1 |
) |
0.7 |
|
(28.4 |
) |
(66.5 |
) |
23.6 |
|
(42.9 |
) |
|||||||||
|
|
|
77.1 |
|
— |
|
77.1 |
|
104.7 |
|
10.1 |
|
114.8 |
|
76.6 |
|
23.6 |
|
100.2 |
|
|||||||||
|
Interest expense |
|
(31.7 |
) |
— |
|
(31.7 |
) |
(88.3 |
) |
— |
|
(88.3 |
) |
(88.8 |
) |
— |
|
(88.8 |
) |
|||||||||
|
Income (loss) before income taxes, minority interest, and cumulative effect of accounting changes |
|
45.4 |
|
— |
|
45.4 |
|
16.4 |
|
10.1 |
|
26.5 |
|
(12.2 |
) |
23.6 |
|
11.4 |
|
|||||||||
|
Income tax (provision) benefit |
|
(12.5 |
) |
(2.9 |
) |
(15.4 |
) |
(2.2 |
) |
(6.8 |
) |
(9.0 |
) |
23.3 |
|
(27.6 |
) |
(4.3 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Income before minority interest and cumulative effect of accounting changes |
|
32.9 |
|
(2.9 |
) |
30.0 |
|
14.2 |
|
3.3 |
|
17.5 |
|
11.1 |
|
(4.0 |
) |
7.1 |
|
|||||||||
|
Minority interest, net of income tax |
|
— |
|
— |
|
— |
|
(4.0 |
) |
— |
|
(4.0 |
) |
(6.0 |
) |
— |
|
(6.0 |
) |
|||||||||
|
Income before cumulative effect of accounting changes |
|
32.9 |
|
(2.9 |
) |
30.0 |
|
10.2 |
|
3.3 |
|
13.5 |
|
5.1 |
|
(4.0 |
) |
1.1 |
|
|||||||||
|
Cumulative effect of accounting changes, net of income tax |
|
— |
|
— |
|
— |
|
(8.8 |
) |
8.8 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||
|
Net income |
|
$ |
32.9 |
|
$ |
(2.9 |
) |
$ |
30.0 |
|
$ |
1.4 |
|
$ |
12.1 |
|
$ |
13.5 |
|
$ |
5.1 |
|
$ |
(4.0 |
) |
$ |
1.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income (loss) per common share (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Diluted before cumulative effect of accounting changes |
|
$ |
0.48 |
|
$ |
(0.05 |
) |
$ |
0.43 |
|
$ |
0.01 |
|
$ |
0.06 |
|
$ |
0.07 |
|
$ |
(0.08 |
) |
$ |
(0.07 |
) |
$ |
(0.15 |
) |
|
Cumulative effect of accounting changes |
|
— |
|
— |
|
— |
|
(0.15 |
) |
0.15 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||
|
Diluted |
|
$ |
0.48 |
|
$ |
(0.05 |
) |
$ |
0.43 |
|
$ |
(0.14 |
) |
$ |
0.21 |
|
$ |
0.07 |
|
$ |
(0.08 |
) |
$ |
(0.07 |
) |
$ |
(0.15 |
) |
(a) Calculated using 62.7 million, 58.3 million, and 58.2 million average diluted shares outstanding for the three months ended September 30, 2003 and the nine months ended September 30, 2003, and 2002 (see Note 7).
9
(3) 2003 Nonroutine Items
In March 2003, we announced measures to reduce 2003 operating costs by approximately $45 million, net of severance costs, and to hold capital spending to approximately $245 million, before acquisitions. We took these actions because of continued economic weakness, higher pension costs, higher energy costs, business disruptions from severe winter weather in the eastern United States, and global political uncertainty. We are reducing operating costs by freezing salaries, severely restricting hiring, reducing discretionary spending at all levels of the company, and eliminating about 700 job positions. We will eliminate these positions by terminating approximately 550 employees and leaving vacant positions unfilled. At September 30, 2003, we had terminated about 460 employees, and we expect most of the remaining employees to be terminated during fourth quarter 2003.
Under our severance policy, in first quarter 2003, we recorded a pretax charge of $10.1 million for employee-related costs in “Other (income) expense, net” in the Consolidated Statement of Income for the nine months ended September 30, 2003. We recorded these costs in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 112, Employers’ Accounting for Postemployment Benefits. We recorded $9.2 million in Boise Office Solutions, $0.2 million in Boise Paper Solutions, and $0.7 million in our Corporate and Other segment. Employee-related costs are primarily for severance payments, most of which will be paid in 2003 with the remainder in 2004. This nonroutine item decreased net income $6.1 million and diluted income per share 11 cents for the nine months ended September 30, 2003.
During third quarter 2003, we recorded a net $2.9 million, or 5 cents per diluted share, one-time tax benefit related to a favorable tax court ruling.
For the nine months ended September 30, 2003, these nonroutine items decreased net income $3.3 million or 6 cents per diluted share.
(4) 2002 Nonroutine Item
In December 2001, we wrote down our 29% investment in IdentityNow by $54.3 million to its estimated fair value of $25 million and recorded $4.6 million of tax benefits associated with the write-down. In May 2002, we sold all of the stock of our wholly owned subsidiary that held our investment in IdentityNow. In second quarter 2002, we recorded a $23.6 million pretax loss related to this sale in our Corporate and Other segment and in “Other (income) expense, net” in the Statement of Income for the nine months ended September 30, 2002. We also recorded $27.6 million of tax benefits associated with this sale and our previous write-down in “Income tax (provision) benefit.” For the nine months ended September 30, 2002, this transaction resulted in a net after-tax gain of $4 million, or 7 cents per basic and diluted share.
10
(5) Cumulative Effect of Accounting Changes
Effective January 1, 2003, we adopted the provisions of Statement of Financial Accounting Standards (SFAS) No. 143, Accounting for Asset Retirement Obligations, which affects the way we account for landfill closure costs. This statement requires us to record an asset and a liability (discounted) for estimated closure and closed-site monitoring costs and to depreciate the asset over the landfill’s expected useful life. Previously, we accrued for the closure costs over the life of the landfill and expensed monitoring costs as incurred. On January 1, 2003, we recorded a one-time after-tax charge of $4.1 million, or 7 cents per share, as a cumulative-effect adjustment for the difference between the amounts recognized in our consolidated financial statements prior to the adoption of this statement and the amount recognized after adopting the provisions of SFAS No. 143.
Effective January 1, 2003, we adopted an accounting change for vendor allowances to comply with the guidelines issued by the Financial Accounting Standards Board’s (FASB) Emerging Issues Task Force (EITF) 02-16, Accounting by a Reseller for Cash Consideration Received From a Vendor. Under EITF 02-16, consideration received from a vendor is presumed to be a reduction of the cost of the vendor’s products or services, unless it is for a specific incremental cost to sell the product. As a result, for the three months ended June 30, and September 30, 2003, and the nine months ended September 30, 2003, approximately $11 million, $10 million, and $31 million of vendor allowances reduced “Materials, labor, and other operating expenses” that would have previously been recognized primarily as a reduction of “Selling and distribution expenses.” In accordance with the provisions of EITF 02-16, prior-period financial statements have not been reclassified to conform with the current year’s presentation.
In addition, under the new guidance, vendor allowances reside in inventory with the product and are recognized when the product is sold, changing the timing of our recognition of these items. For the nine months ended September 30, 2003, this change resulted in a one-time, noncash, after-tax charge of $4.7 million, or 8 cents per share.
(6) Income Taxes
Our effective tax provision rate for the nine months ended September 30, 2003, was 13.2%, compared with an effective tax benefit rate of 191.9% for the nine months ended September 30, 2002. Before the nonroutine items discussed in Notes 3 and 4 above, our estimated tax provision rates for the nine months ended September 30, 2003 and 2002, were 34.0% and 37.5%. The difference between the estimated tax provision rates, before nonroutine items, was due to the sensitivity of the rate to changing income levels and the mix of domestic and foreign sources of income.
11
(7) Net Income (Loss) Per Common Share
Net income (loss) per common share was determined by dividing net income (loss), as adjusted, by applicable shares outstanding. For the three months ended June 30, 2003, and the nine months ended September 30, 2003, and 2002, the computation of diluted loss per share was antidilutive; therefore, amounts reported for basic and diluted loss were the same.
|
|
|
Three Months Ended |
|
|||||||
|
|
|
September 30 |
|
June 30, |
|
|||||
|
|
|
2003 |
|
2002 |
|
2003 |
|
|||
|
|
|
(thousands, except per-share amounts ) |
|
|||||||
|
BASIC |
|
|
|
|
|
|
|
|||
|
Net income (loss) |
|
$ |
32,884 |
|
$ |
8,510 |
|
$ |
(3,934 |
) |
|
Preferred dividends |
|
(3,191 |
) |
(3,262 |
) |
(3,287 |
) |
|||
|
Basic income (loss) |
|
$ |
29,693 |
|
$ |
5,248 |
|
$ |
(7,221 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Average shares used to determine basic income (loss) per common share |
|
58,411 |
|
58,269 |
|
58,300 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Basic income (loss) per common share |
|
$ |
0.51 |
|
$ |
0.09 |
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|||
|
DILUTED |
|
|
|
|
|
|
|
|||
|
Basic income (loss) |
|
$ |
29,693 |
|
$ |
5,248 |
|
$ |
(7,221 |
) |
|
Preferred dividends eliminated |
|
3,191 |
|
3,262 |
|
— |
|
|||
|
Supplemental ESOP contribution |
|
(2,891 |
) |
(2,925 |
) |
— |
|
|||
|
Diluted income (loss) |
|
$ |
29,993 |
|
$ |
5,585 |
|
$ |
(7,221 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Average shares used to determine basic income (loss) per common share |
|
58,411 |
|
58,269 |
|
58,300 |
|
|||
|
Stock options and other |
|
956 |
|
239 |
|
— |
|
|||
|
Series D Convertible Preferred Stock |
|
3,330 |
|
3,499 |
|
— |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Average shares used to determine diluted income (loss) per common share |
|
62,697 |
|
62,007 |
|
58,300 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Diluted income (loss) per common share |
|
$ |
0.48 |
|
$ |
0.09 |
|
$ |
(0.12 |
) |
12
|
|
|
Nine Months Ended September 30 |
|
||||
|
|
|
2003 |
|
2002 |
|
||
|
|
|
(thousands, |
|
||||
|
|
|
|
|
|
|
||
|
Income before cumulative effect of accounting changes |
|
$ |
10,207 |
|
$ |
5,133 |
|
|
Preferred dividends (a) |
|
(9,744 |
) |
(9,812 |
) |
||
|
Basic and diluted income (loss) before cumulative effect of accounting changes |
|
463 |
|
(4,679 |
) |
||
|
Cumulative effect of accounting changes, net of income tax |
|
(8,803 |
) |
— |
|
||
|
Basic and diluted loss |
|
$ |
(8,340 |
) |
$ |
(4,679 |
) |
|
|
|
|
|
|
|
||
|
Average shares used to determine basic and diluted loss per common share |
|
58,334 |
|
58,194 |
|
||
|
|
|
|
|
|
|
||
|
Basic and diluted income (loss) per common share before cumulative effect of accounting changes |
|
$ |
0.01 |
|
$ |
(0.08 |
) |
|
Cumulative effect of accounting changes |
|
(0.15 |
) |
— |
|
||
|
Basic and diluted loss per common share |
|
$ |
(0.14 |
) |
$ |
(0.08 |
) |
(a) The dividend attributable to our Series D Convertible Preferred Stock held by our ESOP (employee stock ownership plan) is net of a tax benefit.
-end-
13
Financial Highlights Boise and Subsidiaries
|
|
|
|
|
|
|
|
|
2003 |
|
|||||||||||||||
|
|
|
2000 |
|
2001 |
|
2002 |
|
First |
|
Second |
|
Third |
|
Fourth |
|
Year |
|
|||||||
|
|
|
(millions, except per-share amounts) |
|
|||||||||||||||||||||
|
Sales and Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Sales |
|
$ |
7,806.7 |
|
$ |
7,422.2 |
|
$ |
7,412.3 |
|
$ |
1,853.2 |
|
$ |
1,929.0 |
|
$ |
2,110.6 |
|
|
|
$ |
5,892.8 |
|
|
Income from operations |
|
444.0 |
|
81.1 |
|
118.3 |
|
1.7 |
|
22.7 |
|
76.7 |
|
|
|
101.1 |
|
|||||||
|
Net income (loss) before cumulative effect of accounting changes |
|
$ |
178.6 |
|
$ |
(42.5 |
) |
$ |
11.3 |
|
$ |
(18.7 |
) |
$ |
(4.0 |
) |
$ |
32.9 |
|
|
|
$ |
10.2 |
|
|
Cumulative effect of accounting changes, net of income tax |
|
— |
|
— |
|
— |
|
(8.8 |
) |
— |
|
— |
|
|
|
(8.8 |
) |
|||||||
|
Net income (loss) |
|
$ |
178.6 |
|
$ |
(42.5 |
) |
$ |
11.3 |
|
$ |
(27.5 |
) |
$ |
(4.0 |
) |
$ |
32.9 |
|
|
|
$ |
1.4 |
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Diluted before cumulative effect of accounting changes |
|
$ |
2.73 |
|
$ |
(.96 |
) |
$ |
(.03 |
) |
$ |
(.38 |
) |
$ |
(.12 |
) |
$ |
.48 |
|
|
|
$ |
.01 |
|
|
Cumulative effect of accounting changes |
|
— |
|
— |
|
— |
|
(.15 |
) |
— |
|
— |
|
|
|
(.15 |
) |
|||||||
|
Diluted |
|
$ |
2.73 |
|
$ |
(.96 |
) |
$ |
(.03 |
) |
$ |
(.53 |
) |
$ |
(.12 |
) |
$ |
.48 |
|
|
|
$ |
(.14 |
) |
|
Cash dividends paid per common share |
|
$ |
.60 |
|
$ |
.60 |
|
$ |
.60 |
|
$ |
.15 |
|
$ |
.15 |
|
$ |
.15 |
|
|
|
$ |
.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Financial Condition |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Capital expenditures |
|
485.8 |
|
380.0 |
|
266.2 |
|
48.5 |
|
69.4 |
|
44.5 |
|
|
|
162.4 |
|
|||||||
|
Total assets |
|
5,266.9 |
|
4,934.0 |
|
4,947.4 |
|
4,970.9 |
|
4,989.9 |
|
5,066.8 |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Long-term debt, less current portion |
|
$ |
1,714.8 |
|
$ |
1,062.9 |
|
$ |
1,387.4 |
|
$ |
1,472.7 |
|
$ |
1,494.4 |
|
$ |
1,517.1 |
|
|
|
|
|
|
|
Current portion of long-term debt and short-term borrowings |
|
93.3 |
|
440.0 |
|
153.7 |
|
105.5 |
|
76.5 |
|
85.1 |
|
|
|
|
|
|||||||
|
Company-obligated mandatorily redeemable securities of subsidiary trust holding solely debentures of parent |
|
— |
|
— |
|
— |
|
— |
|
— |
|
172.5 |
|
|
|
|
|
|||||||
|
Guarantee of ESOP debt |
|
107.9 |
|
80.9 |
|
51.4 |
|
51.4 |
|
40.5 |
|
40.5 |
|
|
|
|
|
|||||||
|
Total debt |
|
$ |
1,916.0 |
|
$ |
1,583.8 |
|
$ |
1,592.5 |
|
$ |
1,629.6 |
|
$ |
1,611.4 |
|
$ |
1,815.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Shareholders’ equity |
|
$ |
1,757.0 |
|
$ |
1,578.4 |
|
$ |
1,399.5 |
|
$ |
1,372.1 |
|
$ |
1,384.2 |
|
$ |
1,411.4 |
|
|
|
|
|
|
|
Shareholders’ equity per common share |
|
$ |
28.85 |
|
$ |
25.10 |
|
$ |
21.59 |
|
$ |
21.17 |
|
$ |
21.23 |
|
$ |
21.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Financial Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Return on sales |
|
2.3 |
% |
(.6 |
)% |
.2 |
% |
(1.5 |
)% |
(.2 |
)% |
1.6 |
% |
|
|
0 |
% |
|||||||
|
Debt to equity |
|
1.09:1 |
|
1.00:1 |
|
1.14:1 |
|
1.19:1 |
|
1.16:1 |
|
1.29:1 |
|
|
|
|
|
|||||||
|
Debt to total capitalization |
|
52.0 |
% |
47.5 |
% |
50.3 |
% |
51.3 |
% |
50.9 |
% |
56.3 |
% |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Effective tax (provision) benefit rate |
|
(39.0% |
) |
11.5 |
% |
NM |
(1) |
35.9 |
% |
34.0 |
% |
(27.6 |
)% |
|
|
(13.2 |
)% |
|||||||
|
Number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
outstanding at the end of the period (thousands) |
|
57,337 |
|
58,062 |
|
58,284 |
|
58,292 |
|
58,314 |
|
59,549 |
|
|
|
|
|
|||||||
|
Average number of common shares (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Basic |
|
57,288 |
|
57,680 |
|
58,216 |
|
58,289 |
|
58,300 |
|
58,411 |
|
|
|
58,334 |
|
|||||||
|
Diluted(2) |
|
61,413 |
|
61,797 |
|
62,090 |
|
61,880 |
|
61,844 |
|
62,697 |
|
|
|
62,143 |
|
|||||||
|
Common stock price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
High |
|
$ |
43.94 |
|
$ |
38.00 |
|
$ |
38.81 |
|
$ |
28.15 |
|
$ |
26.30 |
|
$ |
29.20 |
|
|
|
|
|
|
|
Low |
|
$ |
21.75 |
|
$ |
26.99 |
|
$ |
19.61 |
|
$ |
20.72 |
|
$ |
21.48 |
|
$ |
21.48 |
|
|
|
|
|
|
|
Close |
|
$ |
33.63 |
|
$ |
34.01 |
|
$ |
25.22 |
|
$ |
21.85 |
|
$ |
23.90 |
|
$ |
27.60 |
|
|
|
|
|
|
(1) NM = not meaningful.
(2) For the first and second quarters of 2003, the nine months ended September 30, 2003, and the years ended December 31, 2001 and 2002, the computation of diluted net loss per share was antidilutive; accordingly, diluted net loss per share was calculated using the average basic shares outstanding.
1
Summary of Operations Boise and Subsidiaries
|
|
|
2002 |
|
|||||||||||||
|
Quarterly Results by Segment (Unaudited)(1) |
|
First |
|
Second |
|
Third |
|
Fourth |
|
Year |
|
|||||
|
|
|
(millions, except per-share amounts) |
|
|||||||||||||
|
Sales by Segment |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Boise Office Solutions |
|
$ |
884.5 |
|
$ |
855.5 |
|
$ |
899.9 |
|
$ |
905.9 |
|
$ |
3,545.8 |
|
|
Boise Building Solutions |
|
560.2 |
|
669.9 |
|
671.5 |
|
568.2 |
|
2,469.7 |
|
|||||
|
Boise Paper Solutions |
|
456.0 |
|
481.6 |
|
485.2 |
|
455.3 |
|
1,878.0 |
|
|||||
|
Other |
|
18.3 |
|
19.4 |
|
19.4 |
|
18.9 |
|
76.0 |
|
|||||
|
|
|
1,919.0 |
|
2,026.4 |
|
2,075.9 |
|
1,948.3 |
|
7,969.5 |
|
|||||
|
Intersegment eliminations |
|
(130.8 |
) |
(138.4 |
) |
(140.7 |
) |
(147.4 |
) |
(557.2 |
) |
|||||
|
Trade sales |
|
$ |
1,788.2 |
|
$ |
1,888.0 |
|
$ |
1,935.3 |
|
$ |
1,800.8 |
|
$ |
7,412.3 |
|
|
Income (Loss) by Segment |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Boise Office Solutions |
|
$ |
37.4 |
|
$ |
23.4 |
|
$ |
29.8 |
|
$ |
32.4 |
|
$ |
123.0 |
|
|
Boise Building Solutions |
|
8.8 |
|
14.0 |
|
14.5 |
|
2.3 |
|
39.7 |
|
|||||
|
Boise Paper Solutions |
|
(10.8 |
) |
8.8 |
|
17.2 |
|
23.4 |
|
38.6 |
|
|||||
|
Corporate and Other |
|
(12.8 |
) |
(37.9 |
) |
(15.9 |
) |
(15.3 |
) |
(81.8 |
) |
|||||
|
|
|
22.6 |
|
8.4 |
|
45.6 |
|
42.9 |
|
119.5 |
|
|||||
|
Interest expense |
|
(30.0 |
) |
(30.0 |
) |
(28.7 |
) |
(29.7 |
) |
(118.5 |
) |
|||||
|
Income (loss) before income taxes and minority interest |
|
(7.4 |
) |
(21.6 |
) |
16.9 |
|
13.2 |
|
1.0 |
|
|||||
|
Income tax (provision) benefit |
|
2.8 |
|
26.9 |
|
(6.3 |
) |
(4.9 |
) |
18.4 |
|
|||||
|
Income (loss) before minority interest |
|
(4.6 |
) |
5.3 |
|
10.5 |
|
8.2 |
|
19.4 |
|
|||||
|
Minority interest, net of income tax |
|
(2.0 |
) |
(2.0 |
) |
(2.0 |
) |
(2.0 |
) |
(8.1 |
) |
|||||
|
Net income (loss) |
|
$ |
(6.6 |
) |
$ |
3.2 |
|
$ |
8.5 |
|
$ |
6.2 |
|
$ |
11.3 |
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Diluted |
|
$ |
(.17 |
) |
$ |
.00 |
|
$ |
.09 |
|
$ |
.05 |
|
$ |
(.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
2003 |
|
|||||||||||||
|
|
|
First |
|
Second |
|
Third |
|
Fourth |
|
Year |
|
|||||
|
|
|
(millions, except per-share amounts) |
|
|||||||||||||
|
Sales by Segment |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Boise Office Solutions |
|
$ |
938.3 |
|
$ |
904.9 |
|
$ |
934.1 |
|
|
|
$ |
2,777.3 |
|
|
|
Boise Building Solutions |
|
574.6 |
|
692.8 |
|
828.1 |
|
|
|
2,095.6 |
|
|||||
|
Boise Paper Solutions |
|
468.2 |
|
459.4 |
|
474.2 |
|
|
|
1,401.8 |
|
|||||
|
Other |
|
19.4 |
|
18.8 |
|
20.6 |
|
|
|
58.8 |
|
|||||
|
|
|
2,000.5 |
|
2,075.9 |
|
2,256.9 |
|
|
|
6,333.4 |
|
|||||
|
Intersegment eliminations |
|
(147.3 |
) |
(146.9 |
) |
(146.3 |
) |
|
|
(440.5 |
) |
|||||
|
Trade sales |
|
$ |
1,853.2 |
|
$ |
1,929.0 |
|
$ |
2,110.6 |
|
|
|
$ |
5,892.8 |
|
|
|
Income (Loss) by Segment |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Boise Office Solutions |
|
$ |
20.7 |
|
$ |
23.9 |
|
$ |
31.0 |
|
|
|
$ |
75.5 |
|
|
|
Boise Building Solutions |
|
(8.5 |
) |
9.8 |
|
56.4 |
|
|
|
57.8 |
|
|||||
|
Boise Paper Solutions |
|
(0.7 |
) |
1.0 |
|
0.2 |
|
|
|
0.5 |
|
|||||
|
Corporate and Other |
|
(8.7 |
) |
(9.9 |
) |
(10.5 |
) |
|
|
(29.1 |
) |
|||||
|
|
|
2.8 |
|
24.9 |
|
77.1 |
|
|
|
104.7 |
|
|||||
|
Interest expense |
|
(28.9 |
) |
(27.8 |
) |
(31.7 |
) |
|
|
(88.3 |
) |
|||||
|
Income (loss) before income taxes, minority interest, and cumulative effect of accounting changes |
|
(26.1 |
) |
(2.9 |
) |
45.4 |
|
|
|
16.4 |
|
|||||
|
Income tax (provision) benefit |
|
9.4 |
|
1.0 |
|
(12.5 |
) |
|
|
(2.2 |
) |
|||||
|
Income (loss) before minority interest and cumulative effect of accounting changes |
|
(16.7 |
) |
(1.9 |
) |
32.9 |
|
|
|
14.2 |
|
|||||
|
Minority interest, net of income tax |
|
(2.0 |
) |
(2.0 |
) |
— |
|
|
|
(4.0 |
) |
|||||
|
Income (loss) before cumulative effect of accounting changes |
|
(18.7 |
) |
(4.0 |
) |
32.9 |
|
|
|
10.2 |
|
|||||
|
Cumulative effect of accounting changes, net of income tax |
|
(8.8 |
) |
— |
|
— |
|
|
|
(8.8 |
) |
|||||
|
Net income (loss) |
|
$ |
(27.5 |
) |
$ |
(4.0 |
) |
$ |
32.9 |
|
|
|
$ |
1.4 |
|
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Diluted net income (loss) before cumulative effect of accounting changes |
|
$ |
(.38 |
) |
$ |
(.12 |
) |
$ |
.48 |
|
|
|
$ |
.01 |
|
|
|
Cumulative effect of accounting changes |
|
(.15 |
) |
— |
|
— |
|
|
|
(.15 |
) |
|||||
|
Diluted |
|
$ |
(.53 |
) |
$ |
(.12 |
) |
$ |
.48 |
|
|
|
$ |
(.14 |
) |
|
(1) Columns may not add due to rounding.
2
Statistical Review / 2002
|
|
|
2002 |
|
|||||||||||||
|
|
|
First |
|
Second |
|
Third |
|
Fourth |
|
Year |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Boise Office Solutions |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales by Product Line (millions) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Office supplies and paper |
|
$ |
549 |
|
$ |
531 |
|
$ |
545 |
|
$ |
556 |
|
$ |
2,181 |
|
|
Technology products |
|
244 |
|
239 |
|
263 |
|
256 |
|
1,002 |
|
|||||
|
Office furniture |
|
91 |
|
86 |
|
92 |
|
94 |
|
363 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales by Geography (millions) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
United States |
|
$ |
686 |
|
$ |
665 |
|
$ |
707 |
|
$ |
701 |
|
$ |
2,759 |
|
|
International |
|
198 |
|
191 |
|
193 |
|
205 |
|
787 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales Growth |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales growth |
|
(9 |
)% |
(1 |
)% |
6 |
% |
6 |
% |
0 |
% |
|||||
|
Same-location sales growth |
|
(8 |
)% |
(1 |
)% |
6 |
% |
5 |
% |
0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Margins (percentage of sales) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gross profit margin |
|
23.6 |
% |
23.1 |
% |
22.4 |
% |
23.5 |
% |
23.1 |
% |
|||||
|
Operating profit |
|
4.2 |
% |
2.7 |
% |
3.3 |
% |
3.6 |
% |
3.5 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Boise Building Solutions |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales Volumes |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Plywood (thousand square feet) (3/8” basis) |
|
440,525 |
|
462,648 |
|
460,952 |
|
424,078 |
|
1,788,203 |
|
|||||
|
OSB (thousand square feet) (3/8” basis) (1) |
|
100,161 |
|
98,273 |
|
107,176 |
|
111,076 |
|
416,686 |
|
|||||
|
Particleboard (thousand square feet) (3/4” basis) |
|
49,749 |
|
51,182 |
|
47,617 |
|
40,675 |
|
189,223 |
|
|||||
|
Lumber (thousand board feet) |
|
95,911 |
|
108,455 |
|
99,858 |
|
91,057 |
|
395,281 |
|
|||||
|
LVL (hundred cubic feet) |
|
17,895 |
|
20,844 |
|
20,879 |
|
17,925 |
|
77,543 |
|
|||||
|
I-joists (thousand equivalent lineal feet) |
|
34,995 |
|
47,102 |
|
46,954 |
|
36,714 |
|
165,765 |
|
|||||
|
Engineered wood products (millions) |
|
$ |
60 |
|
$ |
76 |
|
$ |
77 |
|
$ |
61 |
|
$ |
274 |
|
|
Building materials distribution (millions) |
|
$ |
375 |
|
$ |
464 |
|
$ |
470 |
|
$ |
387 |
|
$ |
1,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Selected Prices (average net selling prices) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Plywood (thousand square feet) (3/8” basis) |
|
$ |
231 |
|
$ |
238 |
|
$ |
227 |
|
$ |
220 |
|
$ |
229 |
|
|
OSB (thousand square feet) (3/8” basis) |
|
131 |
|
136 |
|
127 |
|
128 |
|
130 |
|
|||||
|
Particleboard (thousand square feet) (3/4” basis) |
|
230 |
|
248 |
|
254 |
|
223 |
|
239 |
|
|||||
|
Lumber (thousand board feet) |
|
481 |
|
465 |
|
470 |
|
446 |
|
466 |
|
|||||
|
LVL (hundred cubic feet) |
|
1,491 |
|
1,485 |
|
1,498 |
|
1,454 |
|
1,483 |
|
|||||
|
I-joists (thousand equivalent lineal feet) |
|
896 |
|
886 |
|
890 |
|
872 |
|
886 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Boise Paper Solutions |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales Volumes (thousands of short tons) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Uncoated free sheet |
|
355 |
|
370 |
|
364 |
|
336 |
|
1,425 |
|
|||||
|
Containerboard |
|
160 |
|
167 |
|
168 |
|
159 |
|
654 |
|
|||||
|
Newsprint |
|
84 |
|
111 |
|
110 |
|
101 |
|
406 |
|
|||||
|
Other |
|
49 |
|
62 |
|
37 |
|
31 |
|
179 |
|
|||||
|
|
|
648 |
|
710 |
|
679 |
|
627 |
|
2,664 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Corrugated containers (millions of square feet) |
|
1,061 |
|
1,065 |
|
1,205 |
|
1,132 |
|
4,463 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Selected Prices (average net selling prices per short ton) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Uncoated free sheet |
|
$ |
712 |
|
$ |
712 |
|
$ |
722 |
|
$ |
746 |
|
$ |
722 |
|
|
Containerboard |
|
327 |
|
332 |
|
351 |
|
361 |
|
343 |
|
|||||
|
Newsprint |
|
368 |
|
349 |
|
367 |
|
371 |
|
363 |
|
|||||
(1) Includes 100% of the sales volume of Voyageur Panel, of which we own 47%.
3
Statistical Review / 2003
|
|
|
2003 |
|
|||||||||||
|
|
|
First |
|
Second |
|
Third |
|
Fourth |
|
Year |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Boise Office Solutions |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Sales by Product Line (millions) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Office supplies and paper |
|
$ |
567 |
|
$ |
539 |
|
$ |
555 |
|
|
|
|
|
|
Technology products |
|
277 |
|
275 |
|
280 |
|
|
|
|
|
|||
|
Office furniture |
|
94 |
|
91 |
|
99 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Sales by Geography (millions) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
United States |
|
$ |
709 |
|
$ |
682 |
|
712 |
|
|
|
|
|
|
|
International |
|
229 |
|
223 |
|
222 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Sales Growth |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Sales growth |
|
6 |
% |
6 |
% |
4 |
% |
|
|
|
|
|||
|
Same-location sales growth |
|
6 |
% |
6 |
% |
4 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Margins (percentage of sales) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Gross profit margin |
|
23.8 |
% |
23.8 |
% |
24.2 |
% |
|
|
|
|
|||
|
Operating profit |
|
2.2 |
% |
2.6 |
% |
3.3 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Boise Building Solutions |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Sales Volumes |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Plywood (thousand square feet) (3/8” basis) |
|
466,537 |
|
476,896 |
|
499,323 |
|
|
|
|
|
|||
|
OSB (thousand square feet) (3/8” basis) (1) |
|
106,851 |
|
112,652 |
|
111,775 |
|
|
|
|
|
|||
|
Particleboard (thousand square feet) (3/4” basis) |
|
41,192 |
|
38,609 |
|
36,524 |
|
|
|
|
|
|||
|
Lumber (thousand board feet) |
|
93,524 |
|
93,113 |
|
90,522 |
|
|
|
|
|
|||
|
LVL (hundred cubic feet) |
|
20,685 |
|
25,063 |
|
28,431 |
|
|
|
|
|
|||
|
I-joists (thousand equivalent lineal feet) |
|
40,534 |
|
53,271 |
|
60,275 |
|
|
|
|
|
|||
|
Engineered wood products (millions) |
|
$ |
68 |
|
$ |
85 |
|
$ |
96 |
|
|
|
|
|
|
Building materials distribution (millions) |
|
$ |
391 |
|
$ |
505 |
|
$ |
603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Selected Prices (average net selling prices) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Plywood (thousand square feet) (3/8” basis) |
|
$ |
220 |
|
$ |
228 |
|
$ |
291 |
|
|
|
|
|
|
OSB (thousand square feet) (3/8” basis) |
|
141 |
|
165 |
|
258 |
|
|
|
|
|
|||
|
Particleboard (thousand square feet) (3/4” basis) |
|
219 |
|
230 |
|
243 |
|
|
|
|
|
|||
|
Lumber (thousand board feet) |
|
412 |
|
400 |
|
446 |
|
|
|
|
|
|||
|
LVL (hundred cubic feet) |
|
1,453 |
|
1,447 |
|
1,440 |
|
|
|
|
|
|||
|
I-joists (thousand equivalent lineal feet) |
|
867 |
|
861 |
|
865 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Boise Paper Solutions |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Sales Volumes (thousands of short tons) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Uncoated free sheet |
|
353 |
|
351 |
|
353 |
|
|
|
|
|
|||
|
Containerboard |
|
158 |
|
154 |
|
170 |
|
|
|
|
|
|||
|
Newsprint |
|
106 |
|
89 |
|
101 |
|
|
|
|
|
|||
|
Other |
|
33 |
|
31 |
|
47 |
|
|
|
|
|
|||
|
|
|
650 |
|
625 |
|
671 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Corrugated containers (millions of square feet) |
|
1,122 |
|
1,151 |
|
1,204 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Selected Prices (average net selling prices per short ton) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Uncoated free sheet |
|
$ |
747 |
|
$ |
734 |
|
$ |
713 |
|
|
|
|
|
|
Containerboard |
|
341 |
|
347 |
|
342 |
|
|
|
|
|
|||
|
Newsprint |
|
374 |
|
399 |
|
412 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(1) Represents 100% of the sales volume of Voyageur Panel, of which we own 47%.
4