Boise Cascade (BCC) 21 Feb 242023 Q4 Earnings call transcript

Good morning. My name is Lisa, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascade Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce you to Kelly Hibbs, Senior Vice President, CFO and Treasurer of Boise Cascade. Mr. your begin may you conference. Hibbs,

and Thank like Earnings everyone. Update. would morning, welcome you, Call you Business XXXX Lisa, to Quarter to I Fourth good Boise and Cascade's

Jeff are Operations; outstanding Distribution Mike XX after to will Brown, Wood service Jorgensen, call be Building our and today's Boise of years operations, on of our of me our Joining Cascade. an CEO; Products Strom, Head retiring Head Materials X Nate who May

income review filings note Please call warning call our presentation risks forward-looking will income adjusted SEC contain our to to Also, please Turning includes segment will release, appendix statements regarding to and Nate. GAAP Slide press statements. in segment X. This slides turn forward-looking and now with that the the to these on over EBITDA. I the the with in net from reconciliations EBITDA associated our statements. and the EBITDA the

morning, call net position on the diluted also across organic company acquisition We through thank Good dividends. who to results. and sales strategy customer through Kelly. $XXX.X I on to and everyone. growth us our partners. share reflect gains reported serve us vendor associates and our for on joining returns $XX.XX initiatives, continue provided or executed our and and to we meaningful price shareholders support million billion. few of to as that of strategy our I our share A our execute want year full I'm further Thanks, #X. We today. $X.X our highlights you earnings income XXXX Thank per for Slide

housing X%. to turn fourth U.S. starts a increased modest now me quarter results. Let Total

to results. XX% year starts reflecting a the Both financial our and delivered strong in was single-family of housing increase However, again the businesses prior rebound operating quarter. evident, compared

quarter XXXX. Our X% sales fourth were up billion of from fourth $X.X consolidated quarter

in ago or $X.XX $X.XX results quarter. Fourth compared share curtailment in $XX.X was to pretax million year or Chapman, of depreciation by I'm of lumber with delivered million our per related integration thus the the results per million far income included new of and acquisition. financial accelerated of of $X.X the teammates. to Our BROSCO $XXX.X BROSCO to the net share quarter status our Alabama, efforts $X income pleased million approximately related net XXXX and expenses production transaction the

XXXX, to growth on As more to now an and questions. Kelly? our our committed sheet we financial capital to expanded we strong update detail, walk capital We forward allocation capital an remain which plan. Kelly start our in look through our very balanced in I'll after included segment and will approach balance take our our allocation. executing and remains reinvestment provide your provide results before outlook projects

offset EWP Products distribution by EBITDA the quarter the fiber lower $XX.X partially million selling same $XXX.X in to prices $X.XX EWP distribution The the quarter. volumes fourth of previously in decline increased plywood $XX.X increase segment in were in of million manufacturing to costs. These of million, XXXX. and the mentioned of fourth in quarter Thank down $XX.X to in share the million but and by was from costs. expenses curtailment to you, EBITDA negatively The approximately ago EBITDA prior other $XX.X Wood segment did per depreciation EBITDA, sales share. BMD quarter in quarter an accelerated were billion, $X.X EBITDA reported X% by XXXX. sales from Nate. the not our quarter and was Chapman lower and primarily decrease year year million our segment fourth compared were BMD including of to from sales of reported Wood segment in segment in reported $XX.X $XXX.X prior lumber million million our quarter. the compared quarter, year. of Products million the EBITDA EBITDA pretax driven The sales $X.X compared the wood our decreases due affect fourth in per higher impact up did quarter sales in segment earnings

of increased In had expenses on addition, costs, $X.X impact general million, our earnings administrative share. approximately and BROSCO $X per were which approximately of share reported per million negative a acquisition-related which $X.XX

XXXX transaction. from We and company total $XXX the and our incremental amortization assets depreciation million. BROSCO This approximately acquired expect in depreciation amortization to the includes in be recent

rate In remains tax addition, at XX%. our anticipated effective

X. to for in both LVL driven market volumes Sequential the I-joists improvement Slide X% and respectively, that XX% conditions single-family net for positive due and price to fourth XX%, quarter were sharp housing year-over-year starts. had and rebate on quarter On up fourth realizations. impact Turning by pricing better-than-expected and adjustments was basis, a LVL a up I-joists

higher for pricing, I-joist On basis. to Looking first quarter, to volumes experience sequential single-family in starts setup a sales mid-single-digit EWP high forward modestly where and single-digit on we a volumes sequential the good volumes, momentum growth is in LVL expect declines. expect nice we

to Turning X. Slide

the XXX the our down during in compared X% plywood far plywood produced quarter change fourth Our X% sales with into million price EWP. The shifted from and average. average in a we our consistent as million the Thus quarter $XXX was Wood realizations XXXX, proportion fourth Products current for fourth fourth demand quarter quarter veneer quarter quarter Plywood XXXX of volumes quarter XXXX. higher in net to feet sales production, fourth XXX plywood were internally in EWP feet volumes given first price in sequentially. of down per was X,XXX decreased

X% $X.X by volume partially by fourth XX%, driven XX%. offset of BMD's X increases Moving sales sales of quarter to decreases price XXXX, were Slide up and quarter sales from fourth billion, X.

were products. of EWP flat. By offset on generated when Excluding last year, product dollars margin margin the line XX% dollars increased the general were EWP BROSCO line, line XX%. BMD were sales by of to the flat sales sales X%. lower sales and acquisition, decreased commodity same impact compared increased margin higher general product as Gross on dollars quarter

margin mentioned X.X quarter, was from XX.X%, basis XXXX. EMD's points and -- was including in quarter In down quarter excuse XX from down me, gross XX.X% costs, addition, ago percentage overall X.X% sequentially. for the in XX down acquisition-related the X.X% reported the year the basis reported the fourth EBITDA points margin, BMD's previously

BMD's XXXX our as around a of year-end extreme far to season. Broadly January, we have will typically As most country well the view margins expect and first in pace we our we in anticipate for of most inventory building daily for inventory positioned is good we the are X-step fourth grown spring channel first speaking, since across do, lines, the thus to product with in sales sites. We quarter support the pace quarter upcoming as daily averages through backdrop sales quarter the our distribution. sales approximately providing to many weather shipments X%. move accelerate XX% below EBITDA be job quarter and XXXX delaying lean

the compared the Slides slides These stable with for show trajectory and and the X downward environment Moving XX. lumber prior during year to quarter. during of pricing generally panel pricing quarter XXXX fourth

we lumber has XXXX, and entered commodity As pricing remained stable.

pricing million in $XXX we support Wood door centers our spending and projects capital related We spending Modesto, included and hand of inventory of While million at purchase volatility on EWP new always that of having had City of Products, West now our included and maintain in Slide spending a Florida approach Beach, base. I'm Kansas Wood support in our facilities build-out BMD. millwork of capital the to XX. In will commodity production. In BMD, future $XXX distribution capital to Denver, in expenditures and mills Products a with million our on customer XXXX, new Ohio, spending possibility, $XX distribution and the and center is start-up veneer in Marion, California. Palm in

our veneer a distribution notable momentum utilization design in gain projects to include expenditure centers mill spending years, South center, and plan the additional will of In our spending production Chapman, the our plan Oakdale, in driver. In we locations. next log in our a our in Alabama, upgrade greenfield plywood work 'XX in XXXX new Texas Beach layup Modesto site has We and Alabama, and are previously veneer capital and line X and drier convert expenditure BMD, existing at Wood Products, on the for facility. At our Palm includes capital projects we towards on permits, Louisiana XXXX. XXXX, includes our and and which to expect to the Thorsby, Carolina veneer anticipated West excited capabilities EWP and add investment multiple modification line plan capital laminated on respectively. as over work an planned about of those announced I-joists been redesign expanded but new facility, Progress spending are press parallel locations slow, 'XX, of XXXX start-up

upon ability of expenditures resources and construction will of As availability our we've $XXX before, equipment our to timing the capital million XXXX. noted execute of plan influence million $XXX purchases engineering and for availability the and in to

Speaking XXXX, dividends or to repurchases. share $X.X shareholder combined and we also returns paid $XXX of special in $X.XX and million a share regular in per completed million

shares X.X approximately have share still repurchase for million available We our program. under repurchase

sheet Board approved capital through XX. In while committed invest XX, our base and allocation share our dividend remaining our record growth payable focus as asset strong remains cycle. our February fixed per recently Directors dividend March of to business organic our balance quarterly addition, of In $X.XX summary, for in principal of existing a this shareholders very is and projects to

Nate as M&A our it dividends capital strategy it return Directors outlook. to Board deemed special repurchases. I will and via evaluate aligns additional over turn to of appropriate will with our We shareholders share our by also business opportunistically as back discuss to and

Slide Despite a U.S. XXXX mechanisms by Recent rates homebuilders with housing consistent declines in starts $X.XX are and Kelly. million home actual attract Census #XX. on the I'm for housing XXXX industry for reported generally responding various as in mortgage Thanks, with remains to affordability challenge starts now Bureau. of recent buyers, consumers. forecasts U.S.

with and the starts rates to for residential growth. mortgage single-family home inventory supply residential expected for and rates, for has new potential recent will elevated in optimism resilient that future existing new reduction remain reflect sale, However, year-over-year which important construction, homebuyers. With created limits a an of source reductions is construction rate economy

elevated However, to reservation that multifamily with recent due capital may and combined developers record there's rents from supply. highs back cooling for starts cost pull

spending. spending, stock remodel favorable Regarding levels housing repair homeowner U.S. of and of the age elevated equity provided have home a of backdrop and improvement

recent is in spending expected robust remain declines project compared to XXXX. history, to forecasts improvement industry While mid-single

our and organic As capital both businesses XXXX positioned to mentioned, base well in spending robust our we reflected asset in as opportunities invest Kelly remain in growth existing plans.

view and housing on fundamentals stock. demographic underbilled favorable, is supported housing longer-term trends by Our

to such, As execution great our strategies clearly our investments have grow around the of conviction we on and remain focused company.

and to thank upcoming their members Finally, this to our congratulate of take opportunity I would on team X leadership like retirements.

years XX outstanding dedication to after communicated in service retiring of January, Hoffmann As Tom will be Boise Cascade. and

As across on years Vice yesterday President afternoon, numerous Senior Erin, we Resources, the of announced of after service company. Human XX our X, accomplishments retired May and

helps Among leadership and he in of and Cascade Angella in President be benefit Boise dedicated of Resources a our company. what's from organization. Mike that an a and terms of after Cascade as into service. Mike, support. excited safety passion his And Vice stepping both Broesch our of that what organization, those are was number in Further, We is the we work systems culture today we serve for years that for conviction Brown will possible. by of safety from expected the and of and on Mike will retiring impact be role finally, XX delivered Human Boise your across and achievements fundamental building establish grateful

forward. we'd team the as We complete organization division has to lines? moved have you I approach a continue we'll move phone Products of build set has better Lisa, best success. would with well-deserved clarity the this retirement. At on great you will same confidence time, momentum our Troy bar please very and into consistency move maintain Mike, open welcome all and are any made result. Mike your Products that Wood as safer and Little the he Wood successful, we a questions. for on the what as and division. We forward and that high

Instructions] of Yinger Davidson. Kurt first [Operator is from today we coming The question have that D.A.

capacity I some the you're EWP capacity. do competitive single-family haven't Great. really a could of capacity positions over the lot we a announcements. And with moves, standpoint? second, start of we you just what as outside see grow own of whole the Coastal hoping I within you whole. your Should How starts added industry years? Can level that momentum already seen was set adding coming outlined you and we between mean, us recent continue think how a much to of just kind you've on on from

guess This Yes. here I'll the Kurt. well. Mike as it's I Thanks in question right by for jump capacity. question, -- me the around start Kelly, and let is let

that, so had relief we shown nameplate we list that And XX-K that and so spoke have what opportunity our did that Coastal nameplate around be see we our our provided us to when the run that veneer volumes a was were to to to in filed acquisition you'll we would our capacity. And better we yesterday. capacity constraints able closer in

X% And so we by was talked 'XX 'XX and talked kind I of about. about XX%, capacity numbers and the believe, we

in of we've to the not referenced Anything some then So very seasons in to but demand, the terms and helps summertime what through our specifically building our add, you'd the helps run much and our some us increases into talking more nameplate the it's there. to the see nameplate, additions when the capacity weren't we certainly of important ability to much we growing things be demands peak through us be meet of capacity we're closer about produce line other I-joist in Mike? able to cycle note of we've terms in that able that ability seasonal before. And the we talked and the to that get product, to --

could. I Good.

compared and when as that production. we this the a EWP only very veneer to strong other in level point really strategy our we've to, think a to puts because prepared make to of level position time have a had have self-sufficiency I'd as for long some the today, as only product. high the us market the be but of not So for future position, And manufacturers far self-sufficiency relative of to I I'm the probably it say, veneer requires relates aware, highest is

very, we point and that's an demand. of majority quickly see see in seasonal the Kelly period. we actually summer we uptick the during think had starts, obviously, the able starts I respond the about very housing the the we this when -- and making we housing where of starts is to in summer should were that of also housing nature So did sort pandemic to really spring see, And

Got it.

and a were back, couple sticking you second, shifted factor last years choppiness take to terms with if has would share say have a we of last you Trusses going forward Web over the Okay. seen and And then the EWP, of in risk of couple is of how step some years solid-sawn think between in how volumes, substitution but big I-joist, Open decisions? as about pricing you

Yes.

Okay.

stab So too, I'll Kurt. take a at that one,

in Web that's to I the during think or of web we the pandemic, the favor. some of where of of the saw marketplace. changes mainly people, changed say, I supply relatively because of the, Trusses constrained sort yes, terms you some dynamic don't think capacity saw of gained I-joist lack the in Open due the So prices I'll And in open

where think a I-joist, very and However, relative product the it line the longer you very, are ourselves is to to times, of specifically transport ease starting I'll demand when by. we ability to gone because it put installation you to we improved, product think what's happening, significantly the see of line, favorable about not distances. And our insignificantly in say, about times compared I-joist when been recent

particularly disappear, to prices but the are a season. unit building we So lot not going open during make more per web time, can peak

as times our that's to Kurt, on I-joists, floor side. dimensional the point builders look out there other other point they're is looking of just lumber at in trusses data or job versus the it's the reduce certainly with competitive backdrop terms theme Maybe Nate. cycle one on you of

what if products very And of of cycle lower you are okay, and at, time tools improve that solutions or are time help look kind the and much so drive answer. that cycle part I-joists performance,

really think good So the the we needs times as to are side, cycle are I for feel the being what reducing and about, builder. think again, an you important expectations I-joist job the about answer on

QX, Thanks and Mike. the here retirement, and guys. in good it. Got to luck Got that, thanks, Nate, on

be of Sachs. Susan from will question next Our Maklari coming Goldman

that My increasingly with first about realize on the as kind is, the the EWP. products, eventually? impactful? Or absolute your starts you're guess I the the starts operating how want question the think around to adding the do industry capacity considering the between when capacity to is trade-off builder starts increasing builders that or of labor efficiencies you I-joist level in using that mix you about on think level actual that's and of perhaps to those of of When the differently I the actual achieve and discussion does this about they're ground to of that through not that order think build in want you preferences? So or do the shift coming mean that relative capacity you're the getting at, that volume level is you

I your make sure we to So question, kind it. understand of guess rephrase

guess there's opportunity is you there's X those starts. into or starts. -- what then are I-joist absolute So And your the whether There I of for components to is saying point. level be penetration it the LVL

good. talk okay, As we -- yes,

start really So created. is as where depends before, we've on it talked that

but Denver, systems if for LVL, really of because parts it's for floor very do crawl the there. of in that's on a like lot still have spaces you many you not example, a construction slab much Southeast, whereas opportunity So good grain you for a for have in I-joist, opportunity opportunity

and we the to have housing components doing is we're around feel answering make we the your term We about gives around sure us about medium good product feel I to may question, not be our So projects really available. good position. there directly long single-family and conviction yes, but X

I might one is just other So I point. Mike. add might add -- this

your we've thinking really to aim sort about things. a of couple do kind the So projects question, announced of of that recently

of to prior I my have want attempting to XXX% have indicated as you at capacity. So a it run Kurt, to in product sort one be my available. at of your of you machinery to don't running -- answers And

as future able pricing at will as I at the very position Thorsby, anybody a be product because building market that is we're good about Kelly's reiterated think quickly. doing to what the there's the is level. And related think increase. the season, very puts as we us. in is strong not correlation to clearly as construction we earlier, feed is the footprint we in good a faster is and to type. But when it nature in I-joist make starts more good staff for the get So else Texas be we're with still the of particularly starts because I strategy, that a our point foreseeable even maybe can middle in and starts, as or that we there efficiently if not for need to And the though I very because housing to competitive than in it to example, think we XXX% housing of is fast us of housing product up may South, use correlated get have a will doing go it I-joist we housing to view be available I think linear that capacity of we projects starts, site -- many our with And very have as demand for the now the geographical correct, going that

Yes.

Okay.

is, to level a basis, than say, service if level then, slightly And like we the where side still season? on levels lower, or where volume during out relative able the a let's what those you're units from you got to saying busy state that incrementally the starts service it. is component could because steady sounds it it's of So even get and you've that you're are on see currently higher benefit

Yes.

manufacturer I the I think as And think that relationship a the part that's of fair. that's Products distributor BMD as has. Wood and

and as can get it well our our we distribution as sites, inventory have quickly. there We at very sites manufacturing

I'll compared We to, the the of service level have a very industry. high say, remainder

Yes.

Okay.

is is us one to I big certainly think think driver an for EWP yes, But for the maybe as too, for EWP. single multifamily opportunity further about, also to is well. other thing attack

Yes.

All And to then Okay. color. BMD all right. well. That's do helpful as to I shift want

the you the things, the I how investments when business existing how think on the growth making with in volume your and any upside you're And time? support? doors that over side on do about much So these the those how investments of terms distribution centers And guess, about capacity the of And over you you and do that time? there will about thoughts there think today? think

question, Good Yes. Su.

in you've of very as earnings over -- we've many seen And in and we and recent is organic made company. BMD the earnings in years to stability lot so we that and as the years, have investment a of look the particularly -- grow purposeful

where so growing after our And some a sales published and will see that time. And lines call, that nicely. product actually of period in included shown we're be you'll this deck IR shortly we've over pretty see across -- all you'll start those per

that purposely here really mix in shifting to been Nate business, business. we a product been be very we continue we've like said well. like that the distribution all as to able has And that to rich grow mix that's looks the comment along, to So

Su, it's Nate.

support of and backdrop is how our you the marketplace, the context do as and suppliers. of think as part the for we important in our And BMD serve maybe about responsibility on on will continue Just working really think working they're some services. as the and they'll have what new what and new you and -- about been out to of products focused be things roll all that

getting probably customers think strategy their obviously, support our the important and not as execute to cases, supply are really for terms in Those our So of the about is new In all to BMD you us SKU of services. downstream. there's partners bigger, opportunities smaller. supplier our importance intensity products, many new both help

place through next that narrative think in I -- XXXX still we been go and So will grow continue has as year. will and into to

Okay.

that across trying to in but for Wood make those to one-on-one squeeze fourth gross want to one not held but most I'm margin Okay. the of the I came more me, Which in. pricing this question the Products in. in more I want is products. down get a just just one quarter,

And or thoughts for Did on thoughts through? downtime there? drove decrease? volumes more what so in were that that where first you coming take And go the quarter? the any could Is that any on it maintenance then

Yes.

So in projects that it is downtime the for fourth whatnot. the quarter, do we typical take holidays and around some

the so we that in And did quarter. see fourth

we I of we go of in competitive here, As volume expect forward which play pressures highlighted quarter a we growth season couple things, building continued to the be will mean, kind pricing. key out from of out EWP of around what spring there's the terms see and do in then first

key highlight. things So those the probably are I'd

So...

[Operator Instructions] be will Mamtora question coming of from BMO. Ketan Our next

to side, in prices a have the quite the and prices last have fair normalized X on BMD Maybe also EWP margins well. come commodity up the X bit start in held quarters, with have or yet

kind sort part now distribution you you in to it can historically? you business you more that here. would the in a target. talk general is seeing of little margins this line get done normalized in for of mix margins ability of highlighted have and about And sort second sort QX what the business? to performance be where consider of than higher what you've question the X-part are bit what you category One, So that Is to

Yes.

Kelly. kind back margin there, general kind this mix maybe profile. the to and question Ketan, take is the Go Jeff. let speak and Let the of Jeff then line I'll of have and -- I'll I'll -- ahead, come me around have

Okay.

of and question expand back our previous growth, what line, I the general get to general our millwork has with say go every and everything you we to along deeper been is the would items. you with On about if to the intention to the products made, wider investment line there

with working expansion higher-margin so And those well very the of it's growth, items to exactly do. profile we're that there, us trying for are and what seeing you're what

a your -- margin it's question, question. Yes. And on Ketan, then normalized so good

EBITDA a starts that growth of if at and would And by versus in I I XXXX start you periods of conversation up more and guess think And us our I I through extraordinary there so recognize XXXX probably call XXXX a comparison that in would number very having period XXXX over time And those of reasonable frame. exclude that think you'll during is events all of business XX% was to all margins it, circumstances we because be would XXXX. both in see both compared only our time, meaningful look we've XXXX. in seen earnings time. But

we earnings and stability. So how our is of think and grow grow to why that? it's focus of because the execution strategy earnings and Well,

ability did XXXX. I'm And on business, a not our so look feel our our while they put about do really earnings either in going to margin focus percentage we and to for than fine point an for strategy, our EBITDA good to continue better meaningfully

And on one just follow-up that. helpful. That's Understood.

into terms provide of -- for these you couple move terms activity but more levels 'XX? are big color are how ones as of product you can some the a category, not obviously, of all of seeing not line categories, general categories in the you little performing, in what maybe a Within of you

inventory confidence general we that certain the people Like buy The is a have into for what's went just and winter -- really or through the lean, of this is doing coming little they the things, channel. price little a year still that last seen then some when -- a the bit all in little put for those one didn't thing really seeing said to And I is of the Yes. this pike. items. them it's increases destocking and on these bit ground holding up. year reflection willingness we but bit you, I'd different some year, see year we the a a well we're have buys down on more maybe on tell on than line last that

helpful. And That's one from me. then it. last one Got just

XXXX? mid-single-digit about there price at point is move downward kind that? in too QX. more this as are talked point? to say through of You at prices Or incremental early post this that say is it erosion pressure stabilizing EWP Or in Would you we

you it's Thanks definitive Ketan, too tell Well, Mike. question. that think that I specific there the in for get the a early of start have clearly a maybe building think I we going So are into still we'll season. it's to the of can to pressures idea what's have pricing time I view once happen. geographies. in a the bit is year the better And

and has a the for month a -- then of gone April It's going the speaking, of the crazy. But demand say really excluding as alleviated, we not I March in starting season. generally to by, in year bit but as last the pricing pressure into comes just February demand see to If in happen building further historically, statement, some So out it to be been start from a don't what's few have exactly February. generalized would know pass, uptick an we going has, through hope halfway yet and to been which best that the in peak that May. will EWP bit times historically years, early

Benchmark. question will coming Reuben of next be from Our Garner

few in Mike, your great years. been It's retirement. the on Congrats, hearing me last for

So that your over time. I appreciate support

to of kind is comparing this Kelly, XXXX. your about a comment today guess, I follow-up So to

of gives has it's I ago whether up pricing XX%, think, One the changed time have internally versus hold, that EWP your about a than X, I power of frame. adjust the X starts I a to will things of in more confidence up methodology? standpoint you levels from the that these X is kind talk that think obviously been, categories. Can you think pricing pricing you've or what's the done lot some biggest are years competitive that -- over in shown, today that especially things changed you EWP that's the guys

what's any of how kind -- you So confident make changed how and on kind are to you that happen? color of internally

Yes, good question, Reuben.

my to yes, XXXX break So XXXX let's into few a that framework, buckets.

averages. look you and about looks they -- did a If a it like 'XX 'XX the back lot lot if -- think go at looks you a like composite commodities, looked today lot

So is the similar. pricing there

up. sticky holding general have pricing? in Yes. line EWP Yes. Have seen line and Now pricing? growth growth pricing is we Today, in seen pretty general we

in to really EWP. strategy together, think alluded BMD you the in But back i.e., business. just continued rich mix, comes in terms we've grow to in very we've We scale it that. stay if in I general are bundle that line, if And seeing we've some but to you pricing done of to And product that looking much pressures all the EWP, commodities. also grow all

And share think market capture so time we as over well.

those So bar. we That pretty Reuben. higher I all a it's of been confident things, have that think think us combination we set a makes

feel to good day, how just BMD plan. that's Reuben, showing in strategy think and Yes, EWP our really to and both each customers again, and outlined continues the -- is certainly, front, Nate. for Maybe just point -- Maybe marketplace and veneer about suppliers. we the Kelly reinforce I every Plywood the that the Products Wood the just up us. obviously, franchise be focal our And that it's our that, the to on supports and for

years plus and some our where stability, that of So cases, ago, terms products were as also, we performance think volume our our some simply terms footprint capabilities, in EWP I think in no you compared to in strengthened longer we've about earnings, X our produce. as overall taken franchise that of out we've maybe and we

given in we're be place over that think answer years. going, that taking well. good will important Wood I an Alabama And and next Products couple in we investments that part focus about, our Louisiana been of the clarity obviously, the of and as feel here has So where

to to whether the all any been to returning since going built capital places Or if a work of any maybe there's versus in obviously just years, repurchases shareholders, questions, that anticipate way it's organic I'm change in a cash if philosophy similar the philosophy few be the and change a sheet. or dividend think for I'm to past? just of you'll you to Okay. have or a you growth ramping have guys one. good jump share for guys took have you fortress curious balance bit out put if allocation Great. The to it a M&A? And paid a my forward going last don't too. assuming you Su I'm stick you the

Reuben. Yes, sure. question. Good Thanks,

reinvestment us opportunities of growth we going 'XX obviously, and or strategy M&A spend unchanged. and capital focus a via ahead So the here is capital allocation to have overarching and organic and We're in big on 'XX.

our dividends then XXXX over speaking look to I into as be as to get on I little returns further want special I shareholders, a so topic think the in grow the guess regular of my puts look bit, the work our could be to don't in and in my sitting continue shareholder and terms we'll how of through those expectation a of dividend returned stock today. or would and the time. X. that's we form way to And here expectation of terms But frankly, ahead forward that be absent will M&A, we that but takes here or combination repurchases it, of about to XXXX, board we

Yinger a D.A. have We Davison. Kurt coming follow-up of question from

down pushback general of underlying and of dealers, kind into pick say late beat I kind maybe kind go dead pricing some and Is this season, are guess, more comment wanted bit of import ahead here on to a the Great. Not buying trickle certain geographies. XXXX EWP, Mike, that mean competitors start I some I to potentially that your to of a volume to to secure from drivers would what up back around we've pressure building horse but slow of of biggest builders primarily you share pockets and persisting even competition? in discounting seen, the or XXXX?

Yes., sure, Kurt.

annoyance bit is sort much a that spasmodic. of in times, asked you issue overarching part very okay? answer They a tends thing, certain but the up of really maybe of of So an of around disappear. that's The imports, certain geographies at to the kind be show the are little manufacturing. They not and

I of that a won't you are have -- producer in but bring in a some things. as as and this, we lead And we into, It's there one we so It's not go geographies, price. And the in specifics, And a supply. accordingly. we particular package where obviously, in to items is of think all respond result, variety know combination market certain I answer we a the necessarily know have, that with of folks geographies. sort particular way going of

So the obviously, BMD service, there's provides. the product, there's the

obviously as well outsource systems. as software have We

is over our what do different So in are support. to is we to the we very structure those good have others. term, But different others. that in we just that that that's to pricing bring to the partners look longer to because we would that And the wish And at intermediary hence, it value we times, we we those product that geographies we have react geographies. sell into have to need because like sometimes

Nate. Maybe just to it's Mike's to comments. Kurt, add

this of I of year, EWP, think time. if through is of go you pricing the look at not unusual you kind kind a conversation time when of back this

had of that the environment market we was maybe some represented by by COVID I fact look was the something So described, think, typical a period during Mike terms as in hadn't case conversations. And is, competitive that different. those maybe we'll the market. of at case, This

the capability side I competitive, and down that both things think to building as it obviously, homebuilders. critical, think marketplace. I great but transition experience the you for the then season, well building comes have lumber as support provide it's be And season that move to you have yard as obviously during to, always serve really and -- of always the the we the can that conversation

builder And so continue well that's feel execution to be there, partners center do to for the that we we earn business again, going be as out that that making well, -- we'll stays can and both is the to our and our on from that team sure our us. as extent partners. dealer very And front focused

who my this not good again, that as about and will described, in Mike positioned feel to how unusual things kind as conversation we're do of tension support be can moment business, again, But So the today. we're we of that. serve and

Thank session. remarks. like back call to you. now the closing for Nate I over Q&A Jorgensen concludes to turn This today's would

Great. Thanks, Lisa.

Just the of well, morning this we be update, Boise your us thank you. on for Thank and call interest we you appreciate everyone safe. and With and that, joining continued Cascade. be our support for

concludes you conference. Thank joining for today's conference call. all This today's

disconnect. may all You