Boise Cascade Holdings Reports Fourth Quarter 2009 Financial Results


    



    
</pre>
<p><span class="xn-location">BOISE</span>, Idaho, <span class="xn-chron">March 1</span> /CNW/ -- <span class="xn-location">Boise</span> Cascade Holdings, L.L.C. (BC Holdings or Company) announced net income of <span class="xn-money">$33.6 million</span> for the quarter ended <span class="xn-chron">December 31, 2009</span>.  Included in its net income was a <span class="xn-money">$41.8 million</span> gain on the sale of 17.6 million <span class="xn-location">Boise</span> Inc. shares held by the Company, as well as <span class="xn-money">$18.2 million</span> of noncash income associated with the Company's remaining equity investment in <span class="xn-location">Boise</span> Inc.</p>
<p/>
<p>In fourth quarter 2009, BC Holdings' building products subsidiary, <span class="xn-location">Boise</span> Cascade, L.L.C., reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of negative <span class="xn-money">$12.4 million</span>.  This compared to negative EBITDA of <span class="xn-money">$31.5 million</span> in fourth quarter 2008.  With <span class="xn-money">$80 million</span> of net proceeds received from the sale of the <span class="xn-location">Boise</span> Inc. shares in the quarter, we concluded 2009 with a cash balance of <span class="xn-money">$287 million</span>.</p>
<p/>
<p>New residential construction remained weak in the fourth quarter, with housing starts down 16% from the same quarter of 2008.  New residential construction was extraordinarily low throughout 2009, which was reflected in the substantially reduced demand for the products we distribute and manufacture.  The 0.55 million U.S. housing start level experienced in 2009 was only 36% of the annual average level experienced over the prior 50-year period and was 39% below the second worst year on record, which occurred in 2008.  "2009 presented unprecedented challenges for our employees and management team and they performed very well," commented <span class="xn-person">Tom Carlile</span>, CEO.  The individual segment results are discussed in more detail below.</p>
<p/>
<p>Building Materials Distribution segment sales were <span class="xn-money">$368.9 million</span> in the fourth quarter, down 10% from the same quarter a year ago.  However, through improved gross margins, as well as cost reductions and operating improvements implemented over the past year, BMD was able to register a positive <span class="xn-money">$1.0 million</span> in EBITDA for the fourth quarter.  This represented a <span class="xn-money">$3.9 million</span> increase in EBITDA from the same quarter in 2008 despite the decline in housing starts and 5% lower product prices.</p>
<p/>
<p>Wood Products segment sales in the fourth quarter were <span class="xn-money">$136.8 million</span>, down 12% from the same quarter a year ago.  In 2009, the Wood Products team performed well in a very difficult environment, reducing working capital, improving operating efficiencies, and working safely.  Segment EBITDA was negative <span class="xn-money">$9.4 million</span> in the fourth quarter of this year, a marked improvement from the negative <span class="xn-money">$24.7 million</span> reported in fourth quarter 2008.  The reduction in the quarterly EBITDA loss from the same quarter a year ago occurred in the face of lower average prices for our key manufactured products.  Plywood and EWP prices were down 5% and 4%, respectively, compared to fourth quarter 2008.</p>
<p/>
<p>In <span class="xn-chron">February 2010</span>, we sold 13.1 million <span class="xn-location">Boise</span> Inc. shares for expected net proceeds of approximately <span class="xn-money">$61 million</span>.  All of the sales will be settled by <span class="xn-chron">March 3, 2010</span>.  At <span class="xn-chron">February 28, 2010</span>, we owned less than 10% of <span class="xn-location">Boise</span> Inc. and we will account for the remaining investment under the cost method.  We expect to sell our remaining 5.2 million <span class="xn-location">Boise</span> Inc. shares under the trading plan adopted in fourth quarter 2009.</p>
<pre>
    

    Outlook
    
</pre>
<p>We expect 2010 end-product demand to remain weak when compared to normal historical demand levels; however, most economists and building products industry forecasters do expect 2010 demand for new residential construction to show modest improvement from the record low levels experienced in 2009.  Absent a change in unemployment trends, stronger levels of consumer confidence, and a reduction in foreclosures, we will continue to have weak demand for the products we distribute and manufacture.  Industry product sales volumes are likely to remain depressed and commodity wood product prices will largely depend on operating rates.  We expect to manage our production levels to our sales demand, which will likely cause us to operate our facilities below their capacity.</p>
<pre>
    

    About Boise Cascade
    
</pre>
<p>BC Holdings is a privately held company headquartered in <span class="xn-location">Boise</span>, Idaho.  Our wholly owned subsidiary, <span class="xn-location">Boise</span> Cascade, L.L.C., is a leading U.S. wholesale distributor of building products and one of the largest producers of engineered wood products and plywood in <span class="xn-location">North America</span>.  BC Holdings is also a shareholder of <span class="xn-location">Boise</span> Inc., a publicly traded North American paper and packaging producer listed on the New York Stock Exchange.  For more information, please visit our website at <a href="http://www.bc.com">www.bc.com</a>.</p>
<pre>
    

    Webcast and Conference Call
    
</pre>
<p>BC Holdings will host a webcast and conference call on <span class="xn-chron">Tuesday, March 2</span>, at <span class="xn-chron">11:00 a.m.</span> Eastern, at which time we will review the company's recent performance.  You can join the webcast through the <span class="xn-location">Boise</span> Cascade website.  Go to <a href="http://www.bc.com">www.bc.com</a> and click on the link to the webcast under the News & Events heading. Please go to the website at least 15 minutes before the start of the webcast to register.  To join the conference call, dial 800-374-0165 (international callers should dial 706-902-1407) at least 10 minutes before the start of the call.</p>
<p/>
<p>The archived webcast will be available in the News & Events section of <span class="xn-location">Boise</span> Cascade's website.  A replay of the conference call will be available from <span class="xn-chron">Tuesday, March 2</span> at <span class="xn-chron">2:00 p.m.</span> Eastern through <span class="xn-chron">Tuesday, March 16</span>, at <span class="xn-chron">11:59 p.m.</span> Eastern.  Playback numbers are 800-642-1687 for U.S. calls and 706-645-9291 for international calls, and the passcode will be 56430652.</p>
<pre>
    

    Basis of Presentation
    
</pre>
<p>We present our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP).  Our earnings release also supplements the GAAP presentations by reflecting EBITDA.  EBITDA represents income (loss) before interest (interest expense, interest income, and change in fair value of interest rate swaps), income taxes, and depreciation and amortization.  EBITDA is the primary measure used by our chief operating decision makers to evaluate segment operating performance and to decide how to allocate resources to segments.  We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is frequently used by investors and other interested parties in the evaluation of companies.  We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance.  For example, we believe that the inclusion of items such as taxes, interest expense, and interest income distorts management's ability to assess and view the core operating trends in our segments.  EBITDA, however, is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.  The use of EBITDA instead of net income (loss) or segment income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense, interest income, change in fair value of interest rate swaps, and associated significant cash requirements; and the exclusion of depreciation and amortization.  Management compensates for these limitations by relying on our GAAP results.  Our measures of EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.</p>
<pre>
    

    Forward-Looking Statements
    
</pre>
<p>This news release contains statements that are "forward looking" within the Private Securities Litigation Reform Act of 1995.  These statements speak only as of the date of this press release.  While they are based on the current expectations and beliefs of management, they are subject to a number of uncertainties and assumptions that could cause actual results to differ from the expectations expressed in this release.</p>
<p/>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                           Boise Cascade Holdings, L.L.C.
                      Consolidated Statements of Income (Loss)
                             (unaudited, in thousands)
    
</pre>
<p> </p>
<pre>
    
                                                    Three Months Ended
                                                    ------------------
                                                 December 31     September 30,
                                                 -----------     
                                               2009        2008      2009
                                               ----        ----      ----
    Sales
    Trade                                   $447,739    $501,169  $567,643
    Related parties                           11,897      15,433    11,364
                                              ------      ------    ------
                                             459,636     516,602   579,007
                                             -------     -------   -------
    Costs and expenses
    Materials, labor, and other
     operating expenses                      410,412     462,162   501,886
    Materials, labor, and other
     operating expenses
     from related parties                      5,199      21,792     6,094
    Depreciation and amortization              8,680       8,788     9,627
    Selling and distribution expenses         46,705      48,043    50,714
    General and administrative expenses        6,772       6,786     6,841
    General and administrative expenses
     from related party                        2,551       2,133     2,682
    Loss on sale of Paper and Packaging
     & Newsprint assets (a)                        -          81         -
    Other (income) expense, net (b)              487       6,709      (575)
                                                ----       -----      ----
                                             480,806     556,494   577,269
                                             -------     -------   -------
    
</pre>
<p> </p>
<pre>
    
    Income (loss) from operations            (21,170)    (39,892)    1,738
                                             -------     -------     -----
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Equity in net income of affiliate         18,193       3,921    28,225
    Gain on sale of shares of equity
     affiliate (c)                            41,755           -       997
    Foreign exchange gain (loss)                 121      (1,702)      521
    Change in fair value of contingent
     value rights                                  -       1,296         -
    Interest expense                          (5,380)     (6,242)   (5,389)
    Interest income                              126       1,062       185
                                                 ---       -----       ---
                                              54,815      (1,665)   24,539
                                              ------      ------    ------
    
</pre>
<p> </p>
<pre>
    
    Income (loss) before income taxes         33,645     (41,557)   26,277
    Income tax (provision) benefit               (37)      1,053       (72)
                                                 ---       -----       ---
    Net income (loss)                        $33,608    $(40,504)  $26,205
                                             =======    ========   =======


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                  Segment Information
                               (unaudited, in thousands)
    
</pre>
<p> </p>
<pre>
    
                                                 Three Months Ended
                                                 ------------------
                                              December 31       September 30,
                                              -----------
                                           2009         2008        2009
                                           ----         ----        ----
    Segment sales
    Building Materials Distribution      $368,911    $411,472    $472,172
    Wood Products                         136,752     156,037     163,183
    Intersegment eliminations and
     other                                (46,027)    (50,907)    (56,348)
                                          -------     -------     -------
                                         $459,636    $516,602    $579,007
                                         ========    ========    ========
    
</pre>
<p> </p>
<pre>
    
    Segment income (loss)
    Building Materials Distribution         $(832)    $(4,833)     $9,683
    Wood Products (b)                     (16,218)    (31,488)     (4,203)
    Corporate and Other (a)                (3,999)     (5,273)     (3,221)
                                           ------      ------      ------
                                          (21,049)    (41,594)      2,259
                                          -------     -------       -----
    
</pre>
<p> </p>
<pre>
    
    Equity in net income of affiliate      18,193       3,921      28,225
    Gain on sale of shares of
     equity affiliate (c)                  41,755           -         997
    Change in fair value of
     contingent value rights                    -       1,296           -
    Interest expense                       (5,380)     (6,242)     (5,389)
    Interest income                           126       1,062         185
                                              ---       -----         ---
    Income (loss) before income taxes     $33,645    $(41,557)    $26,277
                                          =======    ========     =======
    
</pre>
<p> </p>
<pre>
    
    EBITDA (i)
    Building Materials Distribution        $1,003     $(2,913)    $11,563
    Wood Products (b)                      (9,350)    (24,708)      3,432
    Corporate and Other (a)                (4,022)     (5,185)     (3,109)
    Equity in net income of affiliate      18,193       3,921      28,225
    Gain on sale of shares of
     equity affiliate (c)                  41,755           -         997
    Change in fair value of
     contingent value rights                    -       1,296           -
                                              ---       -----         ---
                                          $47,579    $(27,589)    $41,108
                                          =======    ========     =======


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                            Boise Cascade Holdings, L.L.C.
                       Consolidated Statements of Income (Loss)
                                   (in thousands)
    
</pre>
<p> </p>
<pre>
    
                                                   Year Ended December 31
                                                   ----------------------
                                                    2009         2008 (h)
                                                    ----         --------
    Sales
    Trade                                       $1,935,353      $2,831,283
    Related parties                                 37,897         146,215
                                                    ------         -------
                                                 1,973,250       2,977,498
                                                 ---------       ---------
    Costs and expenses
    Materials, labor, and other operating
     expenses                                    1,757,068       2,620,113
    Materials, labor, and other operating
     expenses from related parties                  29,915          70,026
    Depreciation and amortization (b)               40,874          36,258
    Selling and distribution expenses              190,431         231,545
    General and administrative expenses             27,401          36,556
    General and administrative expenses
     from related party                             10,169           8,143
    Gain on sale of Paper and Packaging &
     Newsprint assets (a)                                -          (2,915)
    Other (income) expense, net (d)                    842          10,634
                                                       ---          ------
                                                 2,056,700       3,010,360
                                                 ---------       ---------
    
</pre>
<p> </p>
<pre>
    
    Loss from operations                           (83,450)        (32,862)
                                                   -------         -------
    
</pre>
<p> </p>
<pre>
    
    Equity in net income (loss) of affiliate        79,729         (11,328)
    Gain on sale of shares of equity
     affiliate (c)                                  42,752               -
    Impairment of investment in equity
     affiliate (e)                                 (43,039)       (208,074)
    Foreign exchange gain (loss)                     1,025          (1,831)
    Change in fair value of contingent value
     rights                                            194            (507)
    Change in fair value of interest rate
     swaps (f)                                           -          (6,284)
    Gain on repurchase of long-term debt (g)         6,026               -
    Interest expense                               (22,520)        (34,313)
    Interest income                                    886           7,691
                                                       ---           -----
                                                    65,053        (254,646)
                                                    ------        --------
    
</pre>
<p> </p>
<pre>
    
    Loss before income taxes                       (18,397)       (287,508)
    Income tax provision                              (660)           (470)
                                                      ----            ----
    Net loss                                      $(19,057)      $(287,978)
                                                  ========       =========


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                Segment Information
                                  (in thousands)
    
</pre>
<p> </p>
<pre>
    
                                             Year Ended December 31
                                             ----------------------
                                            2009 (b)         2008 (h)
                                            --------         --------
    Segment sales
    Building Materials Distribution       $1,609,767        $2,109,428
    Wood Products                            550,818           795,854
    Paper                                          -           253,508
    Packaging & Newsprint                          -           113,485
    Intersegment eliminations and other     (187,335)         (294,777)
                                            --------          --------
                                          $1,973,250        $2,977,498
                                          ==========        ==========
    
</pre>
<p> </p>
<pre>
    
    Segment income (loss)
    Building Materials Distribution           $7,954           $19,511
    Wood Products (b)                        (77,258)          (55,095)
    Paper                                          -            20,718
    Packaging & Newsprint                          -             5,685
    Corporate and Other (a) (d)              (13,121)          (25,512)
                                             -------           -------
                                             (82,425)          (34,693)
                                             -------           -------
    
</pre>
<p> </p>
<pre>
    
    Equity in net income (loss) of
     affiliate                                79,729           (11,328)
    Gain on shares of equity
     affiliate (c)                            42,752                 -
    Impairment of investment in equity
     affiliate (e)                           (43,039)         (208,074)
    Change in fair value of contingent
     value rights                                194              (507)
    Change in fair value of interest
     rate swaps (f)                                -            (6,284)
    Gain on repurchase of long-term
     debt (g)                                  6,026                 -
    Interest expense                         (22,520)          (34,313)
    Interest income                              886             7,691
                                                 ---             -----
    Loss before income taxes                $(18,397)        $(287,508)
                                            ========         =========
    
</pre>
<p> </p>
<pre>
    
    EBITDA (i)
    Building Materials Distribution          $15,515           $27,199
    Wood Products (b)                        (44,262)          (27,362)
    Paper                                          -            21,066
    Packaging & Newsprint                          -             5,738
    Corporate and Other (a) (d)              (12,804)          (25,076)
    Equity in net income (loss) of
     affiliate                                79,729           (11,328)
    Gain on sale of shares of equity
     affiliate                                42,752                 -
    Impairment of investment in equity
     affiliate (e)                           (43,039)         (208,074)
    Change in fair value of contingent
     value rights                                194              (507)
    Gain on repurchase of long-term
     debt (g)                                  6,026                 -
                                               -----               ---
                                             $44,111         $(218,344)
                                             =======         =========


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                           Boise Cascade Holdings, L.L.C.
                            Consolidated Balance Sheets
                                  (in thousands)
    
</pre>
<p> </p>
<pre>
    
                                                       December 31
                                                       -----------
                                                    2009          2008
                                                    ----          ----
    ASSETS
    
</pre>
<p> </p>
<pre>
    
    Current
    Cash and cash equivalents                     $287,101      $275,803
    Receivables
      Trade, less allowances of $1,584 and
       $1,843                                       95,398        78,393
      Related parties                                2,604         3,112
      Other                                          3,495         5,907
    Inventories                                    232,774       279,023
    Prepaid expenses and other                       1,870         1,296
                                                     -----         -----
                                                   623,242       643,534
                                                   -------       -------
    Property
    Property and equipment, net                    270,229       291,999
    Fiber farms and timber deposits                  9,264         8,632
                                                     -----         -----
                                                   279,493       300,631
                                                   -------       -------
    
</pre>
<p> </p>
<pre>
    
    Investment in equity affiliate                  62,967        20,985
    Deferred financing costs                         5,734         7,862
    Goodwill                                        12,170        12,170
    Intangible assets, net                           8,919         9,248
    Other assets                                     8,359         6,009
                                                     -----         -----
    Total assets                                $1,000,884    $1,000,439
                                                ==========    ==========

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                          Boise Cascade Holdings, L.L.C.
                      Consolidated Balance Sheets (continued)
                      (in thousands, except for equity units)
    
</pre>
<p> </p>
<pre>
    
                                                      December 31
                                                      -----------
                                                   2009         2008
                                                   ----         ----
    LIABILITIES AND CAPITAL
    
</pre>
<p> </p>
<pre>
    
    Current
    Accounts payable
      Trade                                       $89,253      $69,478
      Related parties                               2,449        2,195
    Accrued liabilities
      Compensation and benefits                    27,887       38,228
      Interest payable                              3,644        3,930
      Other                                        16,695       30,893
                                                   ------       ------
                                                  139,928      144,724
                                                  -------      -------
    Debt
    Long-term debt, less current portion          303,146      315,000
                                                  -------      -------
    
</pre>
<p> </p>
<pre>
    
    Other
    Compensation and benefits                     113,290      172,275
    Other long-term liabilities                    14,301       12,125
                                                   ------       ------
                                                  127,591      184,400
                                                  -------      -------
    Redeemable equity units
    Series B equity units - 2,764,854 and
     2,920,574 units outstanding                    2,765        2,920
    Series C equity units - 16,270,616 and
     11,016,668 units outstanding                   5,202        3,037
                                                    -----        -----
                                                    7,967        5,957
                                                    -----        -----
    
</pre>
<p> </p>
<p>Commitments and contingent liabilities</p>
<p> </p>
<pre>
    
    Capital
    Series A equity units - no par value;
     66,000,000 units authorized
     and outstanding                               88,908       81,967
    Series B equity units - no par value;
     550,000,000 units authorized;
     532,558,673 units and 532,414,853 units
     outstanding                                  333,344      268,391
    Series C equity units - no par value;
     44,000,000 units authorized;
     11,951,751 units and 11,183,000 units
     outstanding                                        -            -
                                                      ---          ---
    Total capital                                 422,252      350,358
                                                  -------      -------
    Total liabilities and capital              $1,000,884   $1,000,439
                                               ==========   ==========


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                            Boise Cascade Holdings, L.L.C.
                        Consolidated Statements of Cash Flows
                                   (in thousands)
    
</pre>
<p> </p>
<pre>
    
                                                     Year Ended December 31
                                                     ----------------------
                                                      2009              2008
                                                      ----              ----
    Cash provided by (used for) operations
    Net loss                                       $(19,057)        $(287,978)
    Items in net loss not using (providing)
     cash
      Equity in net (income) loss of affiliate      (79,729)           11,328
      Gain on sale of shares of equity affiliate    (42,752)                -
      Impairment of investment in equity
       affiliate                                     43,039           208,074
      Depreciation and amortization of deferred
       financing costs and other                     43,679            37,783
      Related-party interest income                       -            (2,760)
      Pension expense                                12,315            17,063
      Change in fair value of contingent value
       rights                                          (194)              507
      Change in fair value of interest rate swaps         -             6,284
      Management equity units expense, excluding
       expense related to the Sale                    2,736             1,542
      Gain on repurchase of long-term debt           (6,026)                -
      (Gain) loss on sale of assets, net                158           (10,903)
      Facility closure and curtailment costs          1,968            10,796
      Loss on sale of note receivable from
       related party                                      -             8,357
      Other                                          (1,204)            1,670
    Decrease (increase) in working capital, net
     of acquisitions and dispositions
      Receivables                                   (17,250)            6,226
      Inventories                                    47,086            62,994
      Prepaid expenses and other                       (569)            5,501
      Accounts payable and accrued liabilities       11,441           (79,312)
    Pension contributions                           (28,385)          (20,417)
    Current and deferred income taxes                   198            (1,871)
    Other                                            (2,678)              681
                                                     ------               ---
      Cash used for operations                      (35,224)          (24,435)
                                                    -------           -------
    Cash provided by (used for) investment
    Proceeds from sale of assets, net of cash
     contributed                                        467         1,270,976
    Proceeds from sale of shares of equity
     affiliate, net                                  83,172                 -
    Proceeds from sale of note receivable from
     related party, net                                   -            52,737
    Expenditures for property and equipment         (16,806)          (51,867)
    Acquisitions of businesses and facilities        (4,598)                -
    Increase in restricted cash                           -          (183,290)
    Decrease in restricted cash                           -           183,290
    Other                                               637              (402)
                                                        ---              ----
      Cash provided by investment                    62,872         1,271,444
                                                     ------         ---------
    Cash provided by (used for) financing
    Issuances of long-term debt                      60,000           240,000
    Payments of long-term debt                      (65,627)       (1,085,563)
    Short-term borrowings                                 -           (10,500)
    Tax distributions to members                    (10,705)         (128,058)
    Repurchase of management equity units               (18)          (28,634)
    Cash paid for termination of interest rate
     swaps                                                -           (11,918)
    Other                                                 -            (4,156)
                                                        ---            ------
      Cash used for financing                       (16,350)       (1,028,829)
                                                    -------        ----------
    Increase in cash and cash equivalents            11,298           218,180
    Balance at beginning of the period              275,803            57,623
                                                    -------            ------
    Balance at end of the period                   $287,101          $275,803
                                                   ========          ========

    Summary Notes to Consolidated Financial Statements and Segment Information

    
</pre>
<p>The Consolidated Statements of Income (Loss), Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the company's 2009 Form 10K.  Net income (loss) for all periods presented involved estimates and accruals.</p>
<p/>
<p> </p>
<p> </p>
<pre>
    
    (a)  In connection with the sale of our Paper and Packaging &
     Newsprint assets, and most of our Corporate and Other assets (the
     Sale), to Boise Inc. (formerly Aldabra 2 Acquisition Corp.), we
     recorded $(0.1) million and $2.9 million in "Gain (loss) on sale
     of Paper and Packaging & Newsprint assets" in the Corporate and
     Other segment in our Consolidated Statements of Loss during the
     three months and year ended December 31, 2008.  For more
     information related to the Sale, see the Notes to Consolidated
     Financial Statements in our Form 10-K for the year ended December
     31, 2009.
    
</pre>
<p> </p>
<pre>
    
    (b)  In 2009, we closed the lumber manufacturing facility in La
     Grande, Oregon, and recorded $3.1 million of expense in "Other
     (income) expense, net" in the Wood Products segment in our
     Consolidated Statement of Loss.  In addition, for the year ended
     December 31, 2009, we recorded $5.2 million of accelerated
     depreciation in "Depreciation and amortization" and $0.6 million
     of expenses in "Materials, labor, and other operating expenses"
     in the Wood Products segment in our Consolidated Statement of
     Loss.
    
</pre>
<p> </p>
<pre>
    
       In 2008, we sold our wholly owned subsidiary in Brazil, Boise
        Cascade do Brasil LTDA., and we permanently closed our veneer
        operation in St. Helens, Oregon.  In December 2008, we committed
        to closing the plywood manufacturing facility in White City,
        Oregon, which closed in March 2009.  For these items, we recorded
        $7.3 million and $3.6 million of expense in "Other (income)
        expense, net" in the Wood Products segment in our Consolidated
        Statements of Loss for the three months and year ended December
        31, 2008.  In addition, for the year ended December 31, 2008, we
        recorded $2.0 million of expenses in "Materials, labor, and other
        operating expenses" in the Wood Products segment in our
        Consolidated Statement of Loss.
    
</pre>
<p> </p>
<pre>
    
    (c)  During the three months and year ended December 31, 2009, and
     three months ended September 30, 2009, we sold 17.6 million, 18.8
     million, and 1.2 million Boise Inc. shares and recorded gains of
     $41.8 million, $42.8 million, and $1.0 million in "Gain on sale
     of shares of equity affiliate" in our Consolidated Statements of
     Income (Loss).
    
</pre>
<p> </p>
<pre>
    
    (d)  In 2008, we sold a promissory note from Boise Inc. for $52.7
     million, after selling expenses, and we recorded an $8.4 million
     loss on the sale in "Other (income) expense, net" in the
     Corporate and Other segment in our Consolidated Statement of Loss
     for the year ended December 31, 2008.
    
</pre>
<p> </p>
<pre>
    
    (e)  On March 31, 2009, and September 30, 2008, we concluded that
     our investment in Boise Inc. met the definition of other than
     temporarily impaired.  Accordingly, we recorded a $43.0 million
     and $208.1 million charge in "Impairment of investment in equity
     affiliate" in our Consolidated Statements of Loss for the years
     ended December 31, 2009 and 2008.  For more information, see the
     Notes to Consolidated Financial Statements in our Form 10-K for
     the year ended December 31, 2009.
    
</pre>
<p> </p>
<pre>
    
    (f)  The year ended December 31, 2008, included $6.3 million of
     expense related to changes in the fair value of our interest rate
     swaps, which were terminated in February 2008.
    
</pre>
<p> </p>
<pre>
    
    (g)  The year ended December 31, 2009, included a $6.0 million net
     gain on the repurchase of $11.9 million of senior subordinated
     notes.
    
</pre>
<p> </p>
<pre>
    
    (h)  The equity interest that we owned in Boise Inc. represented a
     significant continuing involvement.  As a result, the Paper and
     Packaging & Newsprint segment results are included in continuing
     operations through February 21, 2008.
    
</pre>
<p> </p>
<pre>
    
    (i)  EBITDA represents income (loss) before interest (interest
     expense, interest income, and change in fair value of interest
     rate swaps), income taxes, and depreciation and amortization.
     The following table reconciles BC Holdings, L.L.C., net income
     (loss) to BC Holdings, L.L.C., EBITDA and Boise Cascade, L.L.C.,
     EBITDA for the three months ended December 31, 2009 and 2008, and
     September 30, 2009:



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                                 Three Months Ended
                                                 ------------------
                                               December 31     September 30,
                                               -----------
                                             2009       2008       2009
                                             ----       ----       ----
                                             (unaudited, in thousands)
    
</pre>
<p> </p>
<pre>
    
    BC Holdings, L.L.C., net
     income (loss)                         $33,608   $(40,504)   $26,205
    Interest expense                         5,380      6,242      5,389
    Interest income                           (126)    (1,062)      (185)
    Income tax provision (benefit)              37     (1,053)        72
    Depreciation and amortization            8,680      8,788      9,627
                                             -----      -----      -----
    BC Holdings, L.L.C., EBITDA             47,579    (27,589)    41,108
                                            ------    -------     ------
    Equity in net income of affiliate      (18,193)    (3,921)   (28,225)
    Gain on sale of shares of
     equity affiliate                      (41,755)         -       (997)
                                           -------        ---       ----
    Boise Cascade, L.L.C., EBITDA         $(12,369)  $(31,510)   $11,886
                                          ========   ========    =======


    
</pre>
<p>The following table reconciles BC Holdings, L.L.C., net loss to BC Holdings, L.L.C., EBITDA and <span class="xn-location">Boise</span> Cascade, L.L.C., EBITDA for the years ended <span class="xn-chron">December 31, 2009</span> and 2008:</p>
<p/>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                                   Year Ended December 31
                                                   ----------------------
                                                      2009        2008
                                                      ----        ----
                                                       (in thousands)
    
</pre>
<p> </p>
<pre>
    
    BC Holdings, L.L.C., net loss                   $(19,057)  $(287,978)
    Change in fair value of interest rate
     swaps                                                 -       6,284
    Interest expense                                  22,520      34,313
    Interest income                                     (886)     (7,691)
    Income tax provision                                 660         470
    Depreciation and amortization                     40,874      36,258
                                                      ------      ------
    BC Holdings, L.L.C., EBITDA                       44,111    (218,344)
                                                      ------    --------
    Loss on sale of note receivable from
     related party                                         -       8,357
    Equity in net (income) loss of affiliate         (79,729)     11,328
    Gain on sale of shares of equity
     affiliate                                       (42,752)          -
    Impairment of investment in equity
     affiliate                                        43,039     208,074
                                                      ------     -------
    Boise Cascade, L.L.C., EBITDA                   $(35,331)     $9,415
                                                    ========      ======





    

For further information: For further information: Investors, Wayne Rancourt of Boise Cascade, +1-208-384-6073 Web Site: http://www.bc.com

Organization Profile

BOISE CASCADE HOLDINGS, L.L.C.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890