BOISE CASCADE Co

We ended third quarter 2024 with $761.6 million of cash and cash equivalents and $450.0 million of debt. At September 30, 2024, we had $1,157.3 million of available liquidity (cash and cash equivalents and undrawn committed bank line availability). Our cash and cash equivalents decreased by $188.0 million during the nine months ended September 30, 2024, as cash provided by operations was offset by capital spending, dividends paid on our common stock, and treasury stock purchases. Further descriptions of our cash sources and uses for the nine-month comparative periods are noted below.

We believe that our cash flows from operations, combined with our current cash levels and available borrowing capacity, will be adequate to fund debt service requirements and provide cash, as required, to support our ongoing operations, capital expenditures, lease obligations, working capital, income tax payments, and to pay cash dividends to holders of our common stock over the next 12 months. We expect to fund our seasonal and intra-month working capital requirements in the remainder of 2024 from cash on hand and, if necessary, borrowings under our revolving credit facility.

Sources and Uses of Cash

We generate cash primarily from sales of our products, as well as short-term and long-term borrowings. Our primary uses of cash are for expenses related to the manufacture and distribution of building products, including inventory purchased for resale, wood fiber, labor, energy, and glues and resins. In addition to paying for ongoing operating costs, we use cash to invest in our business, service our debt and lease obligations, and return cash to our shareholders through dividends or common stock repurchases. Below is a discussion of our sources and uses of cash for operating activities, investing activities, and financing activities.

Operating Activities

For the nine months ended September 30, 2024, our operating activities generated $343.8 million of cash, compared with $521.1 million of cash generated in the same period in 2023. The $177.4 million decrease in cash provided by operations was due primarily to an increase in working capital, as well as a decrease in income from operations, offset partially by a $13.7 million decrease in cash paid for taxes, net of refunds, compared to the same period in 2023. Working capital increased $94.1 million during the nine months ended September 30, 2024, compared with a $1.1 million decrease for the same period in the prior year. See "Our Operating Results" in this Management's Discussion and Analysis of Financial Condition and Results of Operations for more information related to factors affecting our operating results.

The increase in working capital during the nine months ended September 30, 2024 was primarily attributable to higher inventories and receivables, offset by an increase in accounts payable and accrued liabilities. The decrease in working capital during the nine months ended September 30, 2023 was primarily attributable to an increase in accounts payable and decreased inventories, offset partially by higher receivables. The increase in receivables in both periods primarily reflect increased sales of approximately 9% and 30%, comparing sales for the months of September 2024 and 2023 with sales for the months of December 2023 and 2022, respectively. During the nine months ended September 30, 2024 inventories increased in preparation and response to the building season. During the nine months ended September 30, 2023 inventories decreased in our Wood Products segment due to improved demand compared to fourth quarter 2022. However, our BMD segment inventories increased during the nine months ended September 30, 2023 due to seasonal building, steady housing demand, and location expansions. During the nine months ended September 30, 2024, the increase in accounts payable and accrued liabilities was primarily related to the increase in inventories, offset partially by employee incentive compensation payouts made during the period. The increase in accounts payable during the nine months ended September 30, 2023 was related to increased purchasing in response to improved demand compared to fourth quarter 2022 and extended terms offered by certain BMD vendors.

Investment Activities

During the nine months ended September 30, 2024 and 2023, we used $135.8 million and $99.3 million, respectively, of cash for purchases of property and equipment, including business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance. During the nine months ended September 30, 2024, we also used $5.6 million of cash for acquisitions of businesses and facilities, which consisted of $3.4 million for post-transaction closing adjustments related to the BROSCO acquisition, as well as $2.2 million for acquired assets of a door and millwork operation in Boise, Idaho. For further discussion on these acquisitions, see Note 5, Acquisitions, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q. During the nine months ended September 30, 2023, we received $1.0 million of earn-out income related to a previous asset sale in our Wood Products segment.

Excluding potential acquisitions, we expect capital expenditures in 2024 to total approximately $220 million to $240 million. We expect our capital spending, excluding acquisitions, to be approximately $200 million to $220 million in 2025. Capital spending in 2024 and 2025 will be for business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance. In addition, our 2024 capital expenditures range includes spending on previously announced projects to convert a plywood layup line to a parallel laminated veneer line at our Chapman, Alabama plywood facility, as well as add I-joist production capabilities at our Thorsby, Alabama EWP mill which will be completed in

2025. At our Oakdale, Louisiana facility, multiple investment projects are underway and planned for 2025 which include upgrade and redesign of the log utilization center, a new veneer dryer and press, and modification of an existing veneer dryer. Our 2024 and 2025 capital expenditures range also includes spending on the previously announced greenfield distribution centers in Texas and South Carolina in our BMD segment. These levels of capital expenditures could increase or decrease as a result of several factors, including acquisitions, efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

Financing Activities

During the nine months ended September 30, 2024, our financing activities used $391.6 million of cash, including $220.5 million in common stock dividend payments, $158.5 million for the repurchase of 1,232,345 shares of our common stock, and $11.1 million of tax withholding payments on stock-based awards. During the nine months ended September 30, 2024, we did not borrow under our revolving credit facility and therefore have no borrowings outstanding on the facility as of September 30, 2024.

During the nine months ended September 30, 2023, our financing activities used $149.7 million of cash, including $140.9 million in common stock dividend payments, $5.9 million of tax withholding payments on stock-based awards, and $1.5 million for the repurchase of 25,678 shares of our common stock. During the nine months ended September 30, 2023, we did not borrow under our revolving credit facility.

Future dividend declarations, including amount per share, record date and payment date, will be made at the discretion of our board of directors and will depend upon, among other things, legal capital requirements and surplus, our future operations and earnings, general financial condition, material cash requirements, restrictions imposed by our asset-based credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant.

For more information related to our debt transactions and structure, our dividend policy, and our stock repurchase program, see the discussion in Note 7, Debt, and Note 10, Stockholders' Equity, respectively, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q.

Other Material Cash Requirements

For information about other material cash requirements, see Liquidity and Capital Resources in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2023 Form 10-K. As of September 30, 2024, there have been no material changes in other material cash requirements outside the ordinary course of business since December 31, 2023.