Boise Cascade (BCC) 7 May 242024 Q1 Earnings call transcript

Good day. My name is Corey, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascade's First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to introduce you to Chris Forrey, Vice President of Finance and Investor Relations, Boise Cascade. Mr.

your begin may you conference. Forrey,

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

Kelly are Head Little, our our Wood Jeff Jorgensen, call Building Treasurer; and of today's Operations; Head on CFO and me our Joining CEO; Strom, Hibbs, Products Materials our Troy operations. Nate of Distribution

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

Thanks, for us #X. increased for Chris. our on Thank U.S. earnings X%. housing morning, Good Slide you I'm only starts Total today. joining everyone. call

year to However, single-family starts prior compared increased the quarter. XX%

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

net $X.XX compared of of businesses or the new income strong our net $X.XX quarter. Both starts. during per million results strength quarter, which ago by was the influenced seasonal income financial factors or year to share $XX.X $XXX.X per delivered share of were relative in Our the million and single-family housing

and stakeholders. Kelly in segment will price serve shareholders to the on and to our each Kelly? consistent after execute share provide is we questions. now want results addition, our associates our across I'll your expectations dividends with repurchases. In more through which our we continue program detail an through company as walk meaningful allocation expanded provide outlook progressing capital update take to our position to our of our capital provided financial returns and that us our thank spending before who I strategies support gains, share

sales increased of $X.X $XX.X increase to XXXX. margin first compared EBITDA X% billion, year to increase general first plywood volumes in reported $XX.X and on These by driven quarter, improvement from the EBITDA to depreciation Wood reported in $X respectively. and segment by up prior Nate, prices. prices $XXX.X were quarter. segment year reported volumes Products million offset our quarter increases million, primarily segment million higher quarter higher in gross expense $XX.X sales amortization million good segment BMD million, resulting EBITDA selling from EWP quarter line offset the Products $XXX.X $XX.X sales and distribution fiber compared XXXX. including higher everyone. the morning, of sales Wood by quarter gross and $XX.X were up and primarily and to million, EBITDA segment in of EBITDA a ago partially margins and increase you, higher the million in the commodity sales were of margin million Thank EWP first first was EBITDA $XX.X from was and sales expenses lower distribution of products. The was costs. BMD quarter. improved segment and The in wood in due of The partially million in

$XXX and We approximately XXXX be in company million. expect amortization total to depreciation

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

over year-over-year up XX% and XX%, a Slide to X%. volumes were and by periods same XX% Turning for respectively, quarter On basis, the LVL up X. and volumes were and sequential comparative first I-joist

down and single-family LVL both start was for the Our EWP X% both I-joists periods. continued for volume comparative growth pricing pressure Sequential the to due exceeded pricing in housing market. underlying increases

expect the mortgage we our in On to optimism price during expect to rates, we to builders Looking production quarter, spite pricing, erosion and sequential increase second moderate forward increasing the volumes maintained EWP have of quarter. sequentially.

Turning to Slide X.

Products Wood XXX in million Our were first in feet quarter sales compared million feet XXXX. XXX to plywood first volume quarter

sales internally the into As higher average during volumes we current demand up plywood X% shifted our of proportion and quarter price the first price up plywood a per The decreased first first quarter second X% net EWP as was quarter veneer are for production XXXX, X,XXX the consistent from EWP. in produced quarter XXX realizations in average. sequentially. Thus quarter XXXX with expected, far given improved our of plywood

given expect pricing second the in we quarter However, as downward panel uncertainty move through we markets. the pressure

and billion, sales product the same first volume By XX% BMD's margin price quarter million sales X% and X%. products to driven to X on offset product quarter sales partially Slide of of EWP Moving higher as line, XX%. margin compared $X.X commodity offset X%. increased Gross general decreases increased sales $XX.X by quarter partially EWP. first from increased line when up sales commodity of lower dollars and increased by on dollars sales year were margin by X. were generated increases XXXX, last dollars line XX%, General

sequentially. percentage levels quarter basis points is still was from sequentially. above XXXX experienced X% in quarter first sales gross averages. up margin XX BMD quarter basis second the BMD's and daily XX XX.X% In with for sales first margin moderated from XXXX the has the the far basis slightly in flat ago XX.X%, overall approximately March, the X.X% pace down in and points EBITDA was reported year XX addition, thus points up of quarter, quarter strong but

given our sales move markets created strengthen the currently, we will anticipate environment daily weather. as hesitancy quarter, commodity and pace the seasonally have better Although healthy single-family in through we a marketplace

the the ultimate sales EBITDA to for period quarter pricing. Second margins will sensitive product be and trajectory of the pace

over X. last This for the weak quarters. pricing lumber the environment shows slide X Slide to Moving

of certain have are production and persists. geographies been announced there such, As additional reductions if capacity pricing speculation curtailments weak recent in

to first were increase supply driven to Moving limitations. single-family panel in Slide strength starts late prices OSB XX. quarter in by The due composite and

general. markets enter we panel OSB declines in quarter, second behavior in As the fire cautious created across price sharp have

first opportunity. our long-standing inventory trade maintain will having currently, business, to our base. I'm and hand now expenditures spending in For customer commodity with Slide in support of to $XX of approach million had periods million Despite and million Products markets distribution quarter uncertainty on the our $XX we both in $XX We risk uncertainty Wood of the on BMD. spending XX. capital in of

at million move spending XXXX range the million year. to to $XXX we capital pace for the $XXX remains through as with Our of spending accelerate

to paid of quarter. the million Speaking in million dividends $XX shareholders regular $XXX,XXX of first shareholder for approximately completed the returns, in common we repurchase shares $XX and our to

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

June investment our very balance approved XX. June our that shareholders approach balanced we strong, asset payable are summary, sheet projects for addition, Board share committed existing $X.XX returns shareholders. to recently dividend of organic In and our quarterly a remains includes per In and to in of our base, as Directors allocation growth of ongoing record our to capital X,

transaction to a our a return to over additional surpluses, Nate balance unless during M&A it turn combination to dividends two. I business we capital forward, will of our special to meaningful would of the repurchases shareholders via share the or back XXXX expect Looking or outlook. discuss

elevated U.S. challenge housing consistent remains starts on in XXXX consumers as of generally million Thanks, due U.S. #XX. many for housing are Slide housing Kelly. affordability industry rates. mortgage by forecasts a of XXXX Census cost starts X.XX to the actual reported Current with combined for Home with the Bureau. I'm

rents housing to cooling construction an cost However, stock available and for are with developers, undersupply expected combined supply and is new expected supply. an of on important for existing for of low with homebuyers. Recent to sale, multifamily residential to capital continue remain pressures due starts unemployment source increased elevated

homeowner of and and home moderated rates economic elevated borrowing Regarding spending, favorable higher have remodel uncertainty improvement for a XXXX, of U.S. age the levels costs. backdrop equity In year-over-year stock growth due housing provided spending. renovation spending to and and repair

to and for home compared industry Our expected history, factors forecasts in home factors, project for equity expectations products and and home the rates, affordability, to macro the remain we declines environment manufacture demand improvement distribute. mortgage recent is levels level that likely spending other XXXX. Ultimately, environment influence near-term mid-single-digit healthy

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

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

and execution around lines? us Cascade. continue today company. interest investments strategies at in would and focused the that welcome joining for support the the Corey, your time. phone please for Boise we you We great questions remain the Thank our any you such, clearly conviction As on grow and open to of would have continued this

Sachs. [Operator call comes Maklari from Goldman Susan Our Instructions] of first

now, obviously, margin right especially we about for when about for quarters. elevated in input on Perron specifically, but for you've first, encouraging together? to you significantly Charles should is moderating, Maybe about OSB volume think EWP, dynamic is which quarter, is rising that the term, erosion the dynamic, being I-joist obviously, But quite I-joist first near obviously, encouraging, the and cost through talked pricing coming dynamics the seen market outlook the talking see considering the prices those Susan. about the basically in you've think how for This it's EWP

Yes. Sure. Charles.

meaningful about we web yes, is in your And OSB input cost, question position in I-joists yes, and around So a good feel for our marketplace general. stock then really to the cost I-joist. specific

have we've our do kind which XX-week OSB. before, of we at pricing average mechanism procure As we a though, spoken a

of we also feel way on our good up, general. the kind And to and kind our in lagged about and across base continue to cost manage the we so ability of the way lagged down on EWP

point to in you price specifically, you what And inventories that's in the price predict the then And sticking margin environment the mentioned let's see is average Yes, commodity X that you've holding weakness? of you historical the BMD that this approach that extent some past? think X where Okay. how say, this for above segment, about helpful. about to to in do When your ability the to moving.

Yes.

we'll or me Jeff it then input see here. here want and So if let some kick provide to off Nate

you'll fallen bit certainly So still compared significantly, here. to discovery it's I guess, has very at fallen we But quite we're sharply. levels as of period high at OSB history, a a note. --

but weakness has south showing in bit the think it's a more West. well, as still kind in correlating just it's bit we're in there. been discovery than mode -- of that yes, the little little So a of OSB a regard of I in a Plywood with stable,

be day. ability every So and we're in marketplace to to our the going manage mitigate,

on We're what's cost of We're you'd good Jeff? We we're it. And turn Anything there going customers. ground, in love visibility work again, going -- is. it, down with our continuing the to going position. our keep not to have for we're fall what are going But position be we'll our to we to add, really move to and our inventory.

Yes. saw it to worked hit. position really, really just this we I would and before coming, add our overall, we hard that lighten

print when on it is, less So a as it. well obviously, comes to always for you'd bit pretty like have little positioned but we're big

That's there. Okay. helpful one maybe very color And one. last

On the sheet. balance

considering forward, way You stock going to about remaining distributing which think you When we your guys allocation the forward? this shareholders? something expect this favorite some repurchased about is that to to quarter, we your more think should encouraging see should Or capital leverage. dividends capital going was of

Yes. guess this I way, it say I'd No, Charles.

we're our committed we really and expectation capital expect appropriate our share do we special will additional playbook how committed wouldn't in the that approach. timing expanded but be shareholders, assuming repurchases M&A forum balance program. to returns, and very in and more So that But sizing capital to of returning the not terms We're it than additional to our our absent no both, of surfaces. And shareholder that in to meaningful to be out then plays year. is will we communicate M&A exactly. provide this there's dividends, reiterate includes I'd

the of question from next Mike line at Our comes Truist. Roxland

and Kelly, Nate, Chris. Jeff

a Just mentioned last price decline saw one. coming. this follow-up want of to you have on you Jeff, the sort commodity that

comment your you lumber, stand, lighten relative stand? So comment, you can OSB, you say Or -- worked do to hard where to book plywood where you really backlog physicians. Can normal?

very, get. you for get any the and I And very OSB, issues. relatively looking difficult available was quickly definitely run-up, would a there's I'll lumber people the say tell without more In on during to side, what need it. you you for can that now are it home

would you have Got of much a normal normalized of level relative inventory in let's say, you. level stock inventory how But your terms own -- where in to, and levels a that for, being be you utilized down lumber? you was given some coming? that Did level? say, foresight you it fact below take Are at the was that turn let's had the

good in actually to we're really There's of no the kind been shape. lumber on real take No, reason any studs. position

and ready, and we have so we're And to be say in we going do. stock

there. position OSB, We're get. was in there. a I bit. little In good was you tough which hard. plywood, we're to we a a had good work it did definitely We So -- plenty. think a On slowing tell could have I big it really run, spot And think down we're in really

So where we overall, I'd kind of and level. we're it's should of a say kind right be, normal

to of example. the bit kind to our Mike, add OSB I comments environments recent And in suppliers marketplace, off. have There's and come to where in safe Jeff's commodities hasn't see harbor. Maybe think look us well just Nate. it's most is these a as obviously is customers and is a a of obviously,

that. And instead units. And They're warehouse, of It trucks we're and buying well railcars more short. on going heavily and again, go so of to maybe going they're to be to really to deliver trucks. supported goes out

important stock customers opportunity. today value we remain important of service that in it's that So are and it need provide and and we our can when represents that in

great And just follow-up Its BMD. then one quick color. it. Got on

terrific be commodity You percent -- going mix sort a minimizing we're you're is to in seeing achieve targeting? given it over And volatility what guys general BMD to make of time and frame XX%? have line EWP job that? ultimately seen to of did the past, that you your looking XX% there in currently mean, a do shifting I while commodity, of you we the are and Is commodities,

Mike. Yes, good question,

the big Obviously, in influence pie I piece I how is. of quarter, around could yes, were, the of XX% guess, we the right sales So that ultimate, mean, first currently, the mix. price

invested I good. the We the not really The we're when I exiting strategy. many fully it. times, we in end it. is probably day, said the but at we've we're would like mid- be We're our as on we to think good low think not of XXs still return execute at commodity. But capital --

have We I'm commodity just going absolutely to that. the to add business.

that down it. last commodity few Now there on business the is the bit, in going other us, share hasn't been we're to because right just been print going the to with of weeks go customers start But But little of fun. and the in it's us, if our has growth a to rely good categories.

really through through. And how we're forward good Yes. team, I would I I near-term guess and kind how period awareness they a they sales just navigate look seeing commodity data, our to follow, us this of great working of

I'll question last One it. Got and over. it I'll just tie turn

growth Just, mentioned start this quarter increases. that the Kelly, you exceeded single-family volume EWP your

multifamily? correlation volumes Given that XX% family, to single given XX% EWP especially weakness had, to where additional in do the those

Yes.

So I I hear of you our to Mike. volumes the were please? heavy quite again, me guess follow that question. didn't Can single, balance

exceeded the well. of Sure, single-family I amount increases. your EWP start that the you sure. so volumes said you -- mean No

growth What XX% the So fact see that in EWP I your getting is EWP you guess some I'm given volume? have of what you towards absorbs that to goes single-family. at categories XX% of did other

sure, share this is our benefit it then point up to Yes. distributor, given on of good side really and think, a capture a manufacturing I leading nice national the but given I ability specifically, about bit feel job the and having our I share. also to the can't I capture having us mean helps shows well -- anecdotal, for

Our Staphos George of comes question America of Securities. from next Bank

currently on for This Lucas Hudson George Staphos. right is now. traveling is He actually

My is your and what details. or the do there what foremost, implications and is for first And projects BMD Wood? first in for pro outlook yourself for the repair-and-remodel? thanks are contractor? And So question momentum is, more

historically shift I off remodel -- but repair pro trends we it's that come good where the shoulder has is opening would of side a to repair-and-remodel as and the remarks above relative kind are. bit, and pretty typically of kind steady, I Nate. Lucas, maybe our it's is just over the say that to the still weekend, of crowd. think in still theme, Maybe described the

of backdrop on. housing there that, So think good work view there's them in a I the foundation to aging stock, terms homeowner still for of overall think repair-and-remodel is I good. And equity, again, that the

XX Again, still the and I of important what So it our experienced opportunity range company from for on we services. products think, XX, while represents, off last a months, over maybe it's an

color. great That's

initially Just BMD that if positive than revenue a better quick so, follow-up Was expected? created well. variance? as what And

BMD's pretty say were. would came with consistent what probably revenue I expectations out our

started think would very slower we quarter than the I it anticipated, have finished in March. and strong

call next comes line Mamtora Our from Ketan of the BMO. of

saw following well? additional in into March, that continued just question, First as that April you The on that. strength on you color can Any off that? provide has

Yes, sure, Ketan.

was -- so very March yes, strong. And so

April still momentum It BMD Products bit anticipated, the off a in on to head is in comments, little about then manufacturing it in the side, compared levels. we terms have for the was feeling might sales into but And would be healthy solid. prepared to we good -- here. to As still I slightly in alluded than the what March, of at weaker be pace EWP, continues as but May solid Wood

And sales helpful. shipping in Are Got that you daily any should up and talked differences there when day Kelly, of it. we be mindful sequentially. then, BMD, That's between about QX? QX X% being

are but into factored quarter. you, Yes, -- have workdays and XX I there I math both would in Ketan, those my first second gave we

Got it.

that still I'm the down BMD last if just be imply to if case, year's So math versus correctly? would doing second that's my quarter,

pace sales Yes, the fair. -- that we've the in that's had be maintain would same April, pace If we true.

will you what we better activity is. housing and how continue right But you to activity see see ultimate June weather May Now yes, pace, have as see in out question but the run seasonally we plays -- there. and the

one last one from just then And Got it. me.

from seasonally have down here sort recently, plywood, about in leverage some some side, pressure, QX. On then maybe. of you price the EWP, we just going volume But also pressure margin OSP margin talked

would think in it sort we about weigh As margin? those margins, factors QX's to as X.X% how of relates you

Yes.

May So around discovery to period were commodity here April is the prices good. be were margins healthy. going we've talked. They as

do pressure fundamentally, the here we on duration May. we've expect change. some depend weakness seen. of But of the And it we'll extent So in it, to the doesn't

While of putting kind we capability to some been we've still BMD be good second of forward get consistent moving because We underlying the might the market. feel in of pressure late. the what earnings of about commodity with up quarter here

as marketplace demand, is the and price a just Kelly's Ketan, on Maybe about in maybe think auto it's both again, to terms hesitancy has only Nate. of on warehouse comment to add you dependence increases. some services that

how So of a as terms about margin as and think you well. up that in sales out BMD, clear us tailwind volume shows of warehouse, for performance for that's

So up matter through what demand do we what quarter. kind is I well to environment no of again, think go the need do BMD, as to we're set we in the

Got helpful. erosion it. EWP the And moderating. you That's talked on prices, price about

QX, those tell after are stable to So it sort point? QX hard of at we to that it's levels? fair is this Or say at

Yes.

So Ketan, we declines about where we were of up -- going we and to with X%, expect sequential just moderate. was that that comment, put

So of kind is our current X% expectation. somewhere and between negative X

that, you it expect would difficult And point? at beyond stabilize to to this sort say of or

sort will demand it's It say in say. that market environment. be difficult of to I'd upon depending

supply the the of what and EWP, Ketan, Nate. sets it's mean, is I framework pricing. market demand really kind for it's the with --

So environment market input maybe costs more less around the it do has is. what to with

here, think I the hard remain to will second as half environment long as that EWP see steady, favorable pricing but So for well. be the as stable and point, from to Kelly's starts

comes Yinger question D.A. next Kurt our of Davidson. And from

kind some level, of curious, open and for would how at in to stage just pricing start kind I good topic of does in? you a know of wanted this usage. shifts that maybe those And you customer some it's it the high morning, kind the between of and competitive I'm than of and convert at everyone. this a inputs, factor differential I And harder builder X on after lot is different I-joist Thanks, a to customers describe back availability-driven Great. at would kind of complex a products? web between the have builder but how of thought getting off dynamics just stage.

it's obviously think Kurt, [indiscernible] in vice phenomenon. to the would Nate. the fortress not place That's comparison of is when I is say to on I preferred so to and I-Joist play it's are there a been just years. And new number versa. relative systems EWP, that times Yes, for a I-joist are --

competitive to when look think kind terms times. I at in up I-joists and the as fortresses, dynamic I think of environment both set of lead cost systems well play I as today, against well

I builders, cycle drive talked they think the the to it when out other about we've are equation. that time is that component of looking the comes to

dimensional again, drive at typically side I-joist allows, And so lumber versus system when an builder the to and fortress, time. play or it's speed down either construction you the on cycle is look the superior to

So value -- part they is and think how an of today which about forward. important going

EWP system up set think I important the do I-joist be job that think of is to I simplicity lumber site what dynamic and well the and add is expecting. to to So compete an again, And dimensional speed Trusses. continues we builder Open both about part against how

it. has the sort or we has EWP the Wood on a taking of think homes, builders, home mean, address your you obviously, affordability sort complexity Products relative anything business is kind of volume that, do or Got challenges, as impact how that there smaller in I kind building impacts think business? that of terms But medium-term jumps trying implication. those smaller any of Is perhaps current there to beyond that out. about attractiveness of some of products? potentially mind And to

Yes. Good question.

amount the EWP think the that if yes, in your -- general footprint sold. structural I will of on obviously point can be smaller, materials the in terms is to an think that have influence or I of

cost looking out. that's again, are place. And I to think So in builders the take

sometimes to when there the I have that builders the want going land. for look answer, cost -- are if given lower they at cost, how they right of vertical think the them, Kurt, times, do is

obviously terms that in story for of adding floor second EWP, vertical a creates go that given an they second construction. opportunity if so And

think, of terms as the that products going at I so we EWP yes, up as EWP the footage, But I So well. other think square and services look an to as in that be our as lower distribute important show it. we of is will part trade-offs, well in

Got it.

to you kind Okay. gross increase. Kelly, thought of I mentioned sales profit the That's I the gears BMD interesting. little switching lower dollars surprising EWP super BMD. And bit which, then sales on is within quarter guess, a considering double-digit just in

dynamic you're timing is the where just that? So pressuring margins? of there's that be is kind based on terms a of driving may a how little a in transferring bit pricing prices and sales there there, else bleed mismatch kind Or of something of

It's pricing, only market-based. not see seen It's just and that of pressure, function do-a-transfer Wood all we that. some the that obviously, the see of Products. as in of then distribution And market. as pricing like we've in anything well. some a And experienced to It's you

it. Got

right you're concern current kind levels, anything some that keeping Or it? XX% feeling that downward Jeff, to we've maybe sense. And quarters of of seen what ZIP I where BMD margins in in mean, consecutive X Is a are Okay. now the given just on seen OSB pretty EWP. gives we've the pressure kind of of kind there an else XX% lastly, that those could with you maybe comfortable state bit and market? gross little are then of Makes outside have code you of that eye

there There's out competition Yes. I'll say. is thing Sure. one always

the millwork over But you of what's on on. line and your are the the think if have what we've you about we've eye we've and which added, capacity past that ones. few keep some on all the going the that's to items, done general about years and that done growth higher-margin So

growth focus and But a we And from now, little where there's what's so on that is holding we on good. there's always feel But else. the and steady. sit competition everything millwork it And right our been side. pressure

comes Our next of Reuben from Benchmark. question Garner

side, on on understand Sorry right of you to And to harp become pretty inventory these more sort want the it's in I I clarify, I environments. guys think now. valuable just but critical this,

played shorter in something your the that there's uncertainty just destock? that's done already this Is You're you're your ongoing has suggesting April of business that to business? is where kind that and the Can go it quarter? Is when and maybe downside. channel stand customers first you commodity on inventory to impact and like we in continue expecting that sort and something impacted clarify on it out of

I -- if don't if exactly what as limited as it's just happening. need in destock buy you know can risk, wouldn't that's get you what it? much what's it the you when why And need a you

decelerating. on to prices So want as what right seeing now quick. the direct. for buy example, OSP as, step want as to we're side They don't get are People need to and in cover they

it seeing now And business, we're so up. our picking warehouse is right back

Are distribution channel, rate just you yourselves quarter? conservative in some different as uncertainty strong kick than general kind are Okay. And the I rates that time including like then about I Is Can guess, pretty jump line a pretty in aren't commodity certain looks how had and time? guess first update that? us got on areas are the general on a are some line side side, in your It some maybe thought? and thinking sensitive last we as hanging in categories. in, there saw destocked kind this it of you those trends thoughts and that of the of you there? different

that announced and difference buy Yes. line, increases some to the last the in compared big the I'd price this And were in one say in products. year that winter saw we general

-- year in this confidence the was what step people this last year, people for Before are example, market. of was there to in, going were hesitant know. to And year, they didn't just happen

those in when so And things them. jumped and they along, came people purchased

as don't we far goes, as destocking that. see So

of back to and some fact, buys, In more. winter in see step we're the people starting in some buy

been pretty really has line stable. general the So

within And anything there direction? outside then successful others? had going other the Great. certain more you BMD in Okay. increases, pricing, that are of categories facing some the than commodity like sounds are pressure It

Yes.

competition. for has that But the right driven lot the some would and And been early. of bit now, just right come like I things things always those little we're of the and and what it a some And components now. There's I think that. seeing that then side, that probably it there. by freight millwork EWP from has just X offshore been the areas pressure a biggest done in there's be mentioned pricing

Okay. Congrats a above. strong on quarter and

BMO. from Mamtora Ketan is Backup

to one Just geographic East call QX versus there terms in saw you regions, Anything there? in sort of any variations, quick Was West. April or what one. of in out

I think weather-driven Ketan, it's I in a don't Nate. strength shape But events can first of -- kind -- there pretty weaknesses that was mean, don't of unique perspective. was or kind from anything it there's I quarter. terms geographic Yes, of I think the always

steady was it kind think and consistent across franchise. of I our pretty

Got it.

then housing, last you here I'm just is sit one today, sort as still just curious kind on balance of, repair-and-remodeling. And obviously, capital the there's allocation. one sheet very Okay. of But around uncertainty strong.

about how it puts powder? even and share so talk Can of you versus do of dry maintaining So sort you is of takes sort kind approach far there? concerned repurchases more as

expanded have we the capital sheet program. mean execute I to balance sure. Yes, on our

to the M&A, optionality, of just got fortunately, thoughtful acquisitions if we'll still shareholders. We've to year if look in we'll got your in to going prudent. to to general, fruition, stay plenty is the we're returning So think and we'll and under capital to they again, abreast expect come develops. And And we powder plenty stay to yes. we'll uncertainty -- there of right the do we abreast market, be point, shareholder pursue have do the of make And that to and be thing again, forward I dry go But anticipate returns marketplace don't charge additional as there. that's sense. they we've if got

Susan comes the question next Goldman Sachs. from Our line of from Maklari

just for next look as wanted their And out kind quickly I acquisitions? the M&A about at line your hearing the and couple especially the and just across of got both of from as they I about to maybe the BMD ask partners in pipeline. of what just you're terms today, of some And in general guess key well think as then growth? potential further over years obviously, initiatives you've the businesses

Yes. than much channel. certainly, a sit I there, the fragmented in quite of bit the still dealer levels more mean, we I activity where marketplace guess,

thing It's and it's going For that aware do. near least view for be on us, focus, be main going not to deployment something it's be surfaces and is, we're be today. going term right to think it's to at driver our be if here to the But working we and I less organic. my our capital us, acquisitive of the will

Su, it's Nate. Yes.

our the about has in to aligned of values we think it's we to the terms how just and our always with marketplace. strategy I and who point, M&A think are also Kelly's -- be

the The the on other in as supplier. we be of both two, thing we to well serve than terms greater are pretty customers one one support has is insistent plus and as

important equation parts are think those and in of really So our -- about it. how we

continue And so emerge. we'll opportunities to at as look lens that

you earnings right. bullish, move the season. from them the in it helpful. through think strength I construction of business, just what And closings All the coming builders even your couple think lot actually taken that come move with for their that of and mean one I year expectations about continued this When we've we've recently. you pretty to through seen new quarters Okay. rates more on as commentary me. full to that think the have up a the as some then for That's they're just terms in for of you potential that side? guess we through home and seasonality some could do next imply about of

builders. Su, homes. to optimistic. be probably Yes, continue as necessary They into to you know They better around you're national deploy get folks -- sheet they continue to right, pretty their are balance the us and than

high seem balance be know, on broadly still, they that mid- don't kind the overall of cases, some little bit in to little average will, it digits, to terms I softer with across you of of then narrative you that single their growth expectations. But the marketplace. So a terms if a feels in in

of kind period in multiple sets we're commentary. interesting where there's and points -- of an and data here of kind kind there's so And data

interesting little out sort And quarter or kind how X. -- the in for so market it's the to we here us of next a shapes how

it's Sue, think, Nate. I Yes,

public production national comment The I other builders, think builders. large the thing builders, I on, would

great as others grow Kelly continue the got I is marketplace, really marketplace. described to to their compared balance clarity the on I well They've think their sheet. they're suspect serve. share strength given they'll relative And position the they the positioned to of as customers in

understanding financial part So and their their obviously given and important and both expect. an as I over they're think of today, continue we think strength what the as well time, that, from grow marketplace great of the perspective customers need their and marketplace a that to just will

Jorgensen This to would it concludes the Nate I closing turn now question-and-answer to for like session. remarks. back

and Great. everyone Cascade. for update, Please us joining thank continuing and our and morning appreciate well. safe support be Thank in for interest Boise you be Thanks. your you. We this

participation your for disconnect. does the you now today's conference. program, you may in and This conclude Thank