Item 1. Business
ITEM 1. BUSINESS
Boise Cascade is one of the largest producers of engineered wood products (EWP) and plywood in North America and a leading U.S. wholesale distributor of building products. As used in this Form 10-K, the terms "Boise Cascade," "we," and "our" refer to Boise Cascade Company and its consolidated subsidiaries.
Our Purpose and Values
Purpose
As a leading manufacturer and distributor of building materials, we bring people, products, and services together to build strong homes, businesses, and communities that stand the test of time.
Our Shared Values
At Boise Cascade, we truly care about relationships with our teammates, customers, suppliers, shareholders, and the communities where we operate. We approach the way we do business with these core values:
• Integrity - We are our word. Integrity goes beyond the lasting structural strength of our products; it is our uncompromising commitment to do the right thing. We nurture long-term relationships every day, in everything we do.
• Safety - We each have the responsibility for our own safety and the safety of those around us, both at work and at home. Together, we strive to create an injury-free environment by identifying risks, eliminating hazards, and requiring safe behaviors.
• Respect - We cultivate a climate of mutual respect, camaraderie, and teamwork. We welcome diverse backgrounds, views, and skills because we believe it results in stronger teams, inspired solutions, and greater agility as an organization.
• Pursuit of Excellence - We are committed to the continuous improvement of people, processes, and the quality of products that we deliver. We apply best practices in our environmental management and forest stewardship. We all have the autonomy to apply our knowledge and experience to solve problems, make decisions, and implement new ideas to drive sustainable results.
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Segment Overview
Our two reportable segments, Wood Products and Building Materials Distribution, operate with a high degree of vertical integration. In our Wood Products segment, we manufacture laminated veneer lumber (LVL), I-joists, and laminated beams, which are collectively referred to as EWP. In addition, we manufacture structural, appearance, and industrial plywood panels, and ponderosa pine lumber. Our Building Materials Distribution segment (BMD) is the largest customer of our Wood Products segment, and operates a nationwide network of distribution facilities that sell a broad line of building materials, including oriented strand board (OSB), plywood, and lumber (collectively referred to as commodities); general line items such as siding, composite decking, doors, metal products, insulation, and roofing; and EWP. Substantially all of BMD's EWP is sourced from our Wood Products segment, with the remaining products we distribute sourced from a broad vendor base of third-party suppliers ranging from large manufacturers to small regional producers.
Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and industrial applications. We have a broad base of national and local customers, which includes a diverse mix of retail lumberyards, home improvement centers, leading wholesalers, specialty distributors, and industrial converters. Drivers of new residential construction, residential repair-and-remodeling activity, and light commercial construction include new household formation, the age of the housing stock, availability of credit and other macroeconomic factors, such as GDP growth, population growth and migration, interest rates, employment, and consumer sentiment.
The map below presents our network of manufacturing and distribution facilities.
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Our Business Strategies
Increase Both Our Earnings and Earnings Stability
We intend to increase both our earnings and earnings stability by growing our EWP sales and expanding our distribution capabilities. In Wood Products, we are principally focused on the production of veneer-based products. We have grown our EWP sales and thereby diverted more of our internally produced veneer away from plywood, which is a product line exposed to oriented strand board substitution and significant price volatility. In addition, we have divested of assets that we considered to be non-strategic or where we believed we were unlikely to generate a sufficient return on invested capital in the future. In BMD, our growth strategy includes adding products and services, expanding our market penetration via acquisition or opening new locations in under-served markets, and identifying and executing upon adjacent distribution platforms that can be scaled. Doors provides a recent example of product line expansion in BMD. In 2020 we expanded our door shop operations with the addition of assembly equipment in Dallas, Texas, and have announced plans to start up our ninth door shop assembly operation in Houston, Texas, in the second half of 2021.
The change in our sales mix by segment over time from reducing our product mix in Wood Products and expanding our BMD distribution capabilities is illustrated below.
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Wood Products' change in sales mix by product line over time is illustrated below.
The charts below illustrate our growth in EWP and how we have transitioned more of our veneer usage to support our EWP growth.
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In BMD, we have grown by adding products and services, capturing additional market share in many of our existing markets, expanding our market presence via acquisition or start-up of new locations, and by identifying and executing upon adjacent distribution platforms. BMD carries a broad line of building materials used in residential construction, repair and remodel, and industrial applications. The chart below reflects BMD's sales mix by product for the year ended December 31, 2020.
BMD's growth in sales dollars and sales per U.S. housing start are reflected in the chart below.
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A map of BMD's distribution locations is shown below. The red stars are BMD's locations, the size of the circles indicate the level of residential construction activity in that trade area (Core-Based Statistical Area or CBSA), and the color of the circles indicate how close our distribution centers are to each major trade area. During 2018 and 2019, we acquired wholesale building material distribution locations in Nashville, Tennessee; Medford, Oregon; Cincinnati, Ohio; and Birmingham, Alabama. In addition, we opened a new distribution center in St. Louis, Missouri, during 2017.
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Leverage our Integrated Model
We believe our vertically-integrated business model provides us with advantages over less integrated competitors and provides unique and significant value to our customers. Wood Products enjoys superior access to the market through a committed distributor, BMD benefits from a committed manufacturing partnership, and we capture margin at both levels of the supply chain. From 2016 to 2020, Wood Products sales volumes of EWP to BMD grew from 66% to 80%, and plywood sales volumes to BMD declined slightly from 28% to 24%. The chart below reflects the progress we have made in distributing internally produced products through our distribution network.
Drive Operational Excellence
In Wood Products, we use process improvement and machine reliability methodologies to continuously refine and improve our operations and processes. We believe there are opportunities to further apply these process improvement programs in our manufacturing operations and apply similar techniques and methods to different functional areas to realize efficiencies in those areas.
In BMD, we believe our highly efficient logistics system allows us to deliver superior customer service and assist our customers in optimizing their working capital. In order to assess the effectiveness and efficiency of our operations, we regularly capture and report upon a wide variety of investment, operational, and customer service metrics. Key learnings and best practices are then leveraged across our distribution locations.
Accelerate Pace of Innovation, Digital Technology, and Diversity & Inclusion
The Company is actively pursuing additional initiatives that we believe will provide further avenues for revenue and earnings growth:
Innovation - We are actively engaged in product development opportunities in our Wood Products segment. These opportunities include the development of new products for new residential construction or commercial construction applications. The commercial construction segment is a particular area of focus for us given we have limited penetration in that space today, and recent changes in building codes that allow for the use of mass timber in tall wood structures provide further opportunity. Innovation efforts within our Wood Products segment are also focused on identifying process and cost efficiency improvement opportunities, some of which will include further automation within our manufacturing operations. To support our innovation initiatives, we have added dedicated resources and are also leveraging tools to capture ideas from associates across our organization.
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Digital Technology - Like many companies, we use multiple systems to manage our business. This can mean that critical business data is not in one central and easily accessible location. As such, we have undertaken a project that will bring much of our primary business data into a single repository that, when combined with a robust reporting engine, will allow us to quickly access and analyze the information. Ultimately, we expect the project to result in the development of business use cases that will provide revenue generating, cost reducing, and risk mitigating opportunities.
Diversity & Inclusion - In alignment with our core values, we strive to cultivate a climate of mutual respect, camaraderie, and teamwork. We welcome diverse backgrounds, views, and skills because we believe it results in stronger teams, inspired solutions, greater agility as an organization, and ultimately a more sustainable and profitable business model over time. At the same time, we also recognize that shifting demographics, a changing talent market, and a competitive business environment make a compelling case for us to be even more intentional in creating a diverse and inclusive work environment. As such, we have hired a Director of Diversity and Inclusion, supported by our executive leadership team and a steering committee composed of associates from across the Company. Our ongoing efforts have placed additional focus on diversity and inclusion to develop an iterative framework of education and training, strategy development, and implementation that will be shared with all levels of our organization.
Segment Detail
Wood Products
Products
LVL and laminated beams are structural products used in applications where extra strength and consistent quality are required, such as headers and beams. LVL is also used in the manufacture of I-joists, which are assembled by combining a vertical web of OSB with top and bottom LVL or solid wood flanges. I-joists, which are used primarily in residential and commercial flooring and roofing systems and other structural applications, are stronger, lighter, and straighter than conventional lumber joists. Plywood is used in a wide range of structural, interior, and exterior applications within the residential, industrial, and repair and remodel sectors. We also produce ponderosa pine shop lumber which is sold primarily to industrial converters, and ponderosa pine appearance grade boards that are sold to home centers and retail lumber yards.
In November 2018, we sold our sole particleboard plant and two lumber mills located in Northeast Oregon, consistent with our strategy to focus on veneer-based manufacturing. In addition, we sold a hardwood plywood facility located in Moncure, North Carolina (the Moncure Sale) in March 2019. Moncure was our only hardwood plywood facility and was no longer integrated with our EWP system upon the Roxboro LVL closure noted below. For additional information, see Note 7, Sale of Manufacturing Facilities, of the Notes to the Consolidated Financial Statements in "Item 8, Financial Statements and Supplementary Data" of this Form 10-K.
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The following table sets forth the annual capacity, production volumes, and sales volumes of our principal products for the periods indicated:
Year Ended December 31
2020 2019 2018 2017 2016
(millions)
Capacity (a)
LVL (cubic feet) (b)(c) 34.0 34.0 33.5 35.5 34.5
Plywood and Parallel Laminated Veneer (PLV) (sq. ft.) (3/8" basis) (d)(e) 2,230 2,230 2,440 2,440 2,400
Production Volumes
LVL (cubic feet) (b) 26.0 25.6 27.6 26.2 23.9
I‑joists (equivalent lineal feet) (b) 237 215 253 228 225
Plywood and PLV (sq. ft.) (3/8" basis) (d) 1,637 1,668 1,822 1,828 1,852
Sales Volumes
LVL (cubic feet) (f) 17.3 17.9 17.7 17.3 16.3
I-joists (equivalent lineal feet) 241 227 237 235 226
Plywood (sq. ft.) (3/8" basis) (g) 1,253 1,337 1,423 1,458 1,507
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(a) Estimated annual capacity at the end of each year based on machinery capabilities.
(b) During the years presented above, approximately one-third of the LVL we produced was utilized internally to produce I-joists. Capacity is based on LVL production only.
(c) In March 2016, we purchased two EWP facilities, one in Thorsby, Alabama, and one in Roxboro, North Carolina. Thorsby LVL capacity is estimated at 4.5 million cubic feet. We ceased LVL production at Roxboro in November 2018, prior to which its estimated annual capacity was 2.0 million cubic feet. I-joist production at Roxboro was ceased in March 2020. For additional information regarding the Roxboro curtailments, see Note 6, Curtailment of Manufacturing Facilities, of the Notes to the Consolidated Financial Statements in "Item 8, Financial Statements and Supplementary Data" of this Form 10-K.
(d) Approximately 27%, 23%, 24%, 22%, and 21%, respectively, of production in 2020, 2019, 2018, 2017, and 2016 was for PLV panels that are utilized internally to produce LVL.
(e) The years 2016-2018 include 135 million square feet of plywood capacity related to the Moncure facility that was sold in March 2019.
(f) Excludes LVL produced and used as flange stock in the manufacture of I-joists.
(g) Excludes PLV produced and used in the manufacture of LVL.
The following table sets forth segment sales, segment income (loss), depreciation and amortization, and EBITDA for the periods indicated:
Year Ended December 31
2020 2019 2018 2017 2016
(millions)
Segment sales (a) $ 1,323.9 $ 1,275.2 $ 1,533.3 $ 1,373.8 $ 1,280.4
Segment income (loss) (b) (c) $ 127.7 $ 54.2 $ (10.0) $ 53.6 $ 25.9
Segment depreciation and amortization (c) 71.1 57.7 127.0 63.1 57.5
Segment EBITDA (b) (d) $ 198.9 $ 111.9 $ 117.0 $ 116.7 $ 83.5
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(a) Segment sales are calculated before elimination of sales to our Building Materials Distribution segment.
(b) During the year ended December 31, 2018, we recorded a pre-tax loss of $11.5 million related to the sale of two lumber mills and a particleboard plant in Northeast Oregon, as well as a pre-tax impairment loss of $24.0 million on the Moncure plywood facility
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upon being classified as held for sale. For additional information, see Note 7, Sale of Manufacturing Facilities, of the Notes to the Consolidated Financial Statements in "Item 8, Financial Statements and Supplementary Data" of this Form 10-K.
(c) The year ended December 31, 2018 includes $55.0 million of accelerated depreciation, $2.6 million of construction in progress and spare parts write-offs, and $0.2 million of severance expenses related to the Roxboro LVL curtailment in November 2018. The year ended December 31, 2020 includes $15.0 million of accelerated depreciation and $1.7 million of other closure costs related to the Roxboro I-joist curtailment in March 2020. For additional information regarding the Roxboro curtailments, see Note 6, Curtailment of Manufacturing Facilities, of the Notes to the Consolidated Financial Statements in "Item 8, Financial Statements and Supplementary Data" of this Form 10-K.
(d) Segment EBITDA is calculated as segment income (loss) before depreciation and amortization. See "Item 6. Selected Financial Data" of this Form 10-K for a description of our reasons for using EBITDA and for a discussion of the limitations of such a measure.
Facilities
Our Wood Products segment operates five EWP facilities. Our two most significant EWP facilities are located in Louisiana and Oregon and have a high degree of raw material and manufacturing integration with our neighboring plywood and veneer facilities. We also operate eight plywood and veneer plants, as well as two sawmills.
Raw Materials and Input Costs
Wood fiber. Wood fiber is the primary raw material used in our Wood Products operations, and our primary source of wood fiber is logs. For the year ended December 31, 2020, wood fiber accounted for approximately 42% of materials, labor, and other operating expenses (excluding depreciation) in our Wood Products segment. Our EWP facilities use parallel-laminated veneer panels and veneer sheets produced by our facilities, as well as lumber, OSB, and veneer sheets purchased from third parties, to manufacture LVL, I-joists, and laminated beams. Our EWP, plywood, and veneer facilities use Douglas fir, white woods, and pine logs as raw materials. Our manufacturing facilities are located in close proximity to active wood fiber markets.
Logs comprised approximately 73% of our wood fiber costs during 2020, and we satisfy our log requirements through a combination of purchases under supply agreements, open-market purchases, and purchases pursuant to contracts awarded under public auctions.
Approximately 84% of our log supply in 2020 was supplied through purchases from private land owners or through dealers. We also bid in auctions conducted by federal, state, and local authorities for the purchase of logs, generally at fixed prices, under contracts with terms of generally one to three years.
Our log requirements and our access to supply, as well as the cost of obtaining logs, are subject to change based on, among other things, the availability of logs in each of our operating areas, our operating schedules, competition from other manufacturers, the effect of governmental laws and regulations, impacts of weather or fire on log availability, and the status of environmental appeals. Per-unit log costs in the western U.S. are higher than per-unit log costs in the southern U.S. due to higher harvest and delivery costs, as well as various supply-side constraints, including seasonal weather-related restrictions, slower growth cycles, and a higher proportion of federal and state timberland ownership. Our aggregate cost of obtaining logs is also affected by fuel costs and the distance of the log source from our facilities, as we are often required to arrange for harvesting and delivery of the logs we purchase from the source to our facilities. For a discussion of contractual commitments relating to log supply agreements, see "Contractual Obligations" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K.
We also purchase OSB, which is used as the vertical web to assemble I-joists, from a supplier with multiple locations throughout North America. OSB accounted for approximately 7% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2020. OSB is a commodity, and prices have been historically volatile in response to industry capacity and operating rates, inventory levels in various distribution channels, and seasonal demand patterns. Sustained periods of high OSB costs lead to higher costs of our I-joist production.
Wood fiber also includes, to a lesser extent than OSB, lumber purchased from third parties for I-joist production at our Canadian EWP facility and for production at our laminated beam plant in Idaho. Lumber input costs are subject to similar commodity-based volatility characteristics noted above for OSB.
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Other raw materials and energy costs. We use a significant quantity of various resins and glues in our manufacturing processes. Resin and glue product costs are influenced by changes in the prices of raw material input costs, primarily fossil fuel products. We purchase resins and glues, other raw materials, and energy used to manufacture our products in both the open market and through supply contracts. The contracts are generally with regional suppliers who agree to supply all of our needs for a certain raw material or energy within the applicable region. These contracts have terms of various lengths and typically contain price adjustment mechanisms that take into account changes in market prices.
Sales, Marketing, and Distribution
Our EWP sales force is managed centrally through a main office that oversees regional sales teams. Our sales force spends a significant amount of time working with end customers who purchase our EWP. Our sales force provides a variety of technical support services, including integrated design, engineering, product specification software, distributor inventory management software, and job-pack preparation systems. Sales of plywood are managed centrally from our headquarters.
In 2020, EWP and plywood, accounted for 55% and 34%, respectively, of our Wood Products sales. The majority of our wood products are sold to leading wholesalers (including our Building Materials Distribution segment), home improvement centers, retail lumberyards, and industrial converters in North America. Our Building Materials Distribution segment is our Wood Products segment's largest customer, representing approximately 61% of our Wood Products segment's overall sales in 2020. In 2020, 80% and 24%, of our Wood Products segment's EWP and plywood sales volumes, respectively, were to our Building Materials Distribution segment.
Building Materials Distribution
Products
We sell a broad line of building materials; including OSB, plywood, and lumber (collectively commodities), general line items such as siding, composite decking, doors, metal products, insulation, and roofing, and EWP. Except for EWP, we purchase most of these building materials from a broad base of third-party suppliers ranging from large manufacturers, such as James Hardie Building Products, Trex Company, Huber Engineered Woods, and Louisiana-Pacific Corporation, to small regional producers. Substantially all of our EWP is sourced from our Wood Products segment. Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and other industrial applications.
The following table lists our product line sales mix for the periods indicated:
Year Ended December 31
2020 2019 2018 2017 2016
(percentage of Building Materials Distribution sales)
Commodity 46.6 % 41.7 % 48.3 % 47.9 % 46.6 %
General line 35.6 % 38.2 % 33.1 % 33.6 % 35.4 %
Engineered wood products 17.8 % 20.1 % 18.6 % 18.5 % 18.0 %
The following table sets forth segment sales, income, depreciation and amortization, and EBITDA for the periods indicated:
Year Ended December 31
2020 2019 2018 2017 2016
(millions)
Segment sales $ 4,952.0 $ 4,137.7 $ 4,287.7 $ 3,773.8 $ 3,227.2
Segment income $ 247.5 $ 116.2 $ 112.5 $ 116.8 $ 84.4
Segment depreciation and amortization 22.5 20.8 18.3 15.5 13.8
Segment EBITDA (a) $ 270.0 $ 137.0 $ 130.8 $ 132.3 $ 98.1
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(a) Segment EBITDA is calculated as segment income before depreciation and amortization. See "Item 6. Selected Financial Data" of this Form 10-K for a description of our reasons for using EBITDA and for a discussion of the limitations of such a measure.
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Facilities
Our Building Materials Distribution segment operates a nationwide network of 38 building materials distribution facilities throughout the U.S. and also operates a single component manufacturing plant. Our broad geographic presence reduces our exposure to market factors in any single region. During 2018 and 2019, we acquired wholesale building material distribution locations in Nashville, Tennessee; Medford, Oregon; Cincinnati, Ohio; and Birmingham, Alabama. These locations complement our existing distribution business and strengthen our nationwide presence. In addition, we believe we will be able to broaden our product and service offerings within those markets. For further discussion on acquisitions, see Note 8, Acquisitions, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10‑K.
Sales, Marketing, and Distribution
We market our building materials primarily to retail lumberyards, home improvement centers, and specialty distributors that then sell the products to end customers, who are typically homebuilders, independent contractors, and homeowners engaged in residential construction and repair-and-remodeling projects. We also market our products to a wide variety of industrial accounts, which use our products to assemble cabinets, doors, agricultural bins, crating, and other products used in industrial and construction applications.
We believe that our national presence and long-standing relationships with many of our key suppliers allow us to obtain favorable price and term arrangements and offer excellent customer service on leading brands in the building materials industry. We also believe our broad product line provides our customers with an efficient, one-stop resource for their building materials needs. We also have expertise in special-order sourcing and merchandising support, which is a key service for our home improvement center customers that choose not to stock certain items in inventory.
We sell products through two primary distribution channels: warehouse sales and direct sales. Warehouse sales are delivered from our distribution centers to our customers and direct sales are shipped from the manufacturer to the customer without us taking physical possession of inventory. Each of our distribution centers implements its own distribution and logistics model using centralized information systems. We use internal and external trucking resources to deliver materials on a regularly scheduled basis. Our highly efficient logistics system allows us to deliver superior customer service and assist our customers in optimizing their working capital.
We have a large, decentralized sales force to support our suppliers and customers. Our sales force and product managers have local product knowledge and decision-making authority, which we believe enables them to optimize stocking, pricing, and product assortment decisions. Our sales force has access to centralized information technology systems, an extensive vendor base, and corporate-level working capital support, which we believe complements our localized sales model.
We regularly evaluate opportunities to introduce new products. Broadening our product offering helps us serve as a one-stop resource for building materials, which we believe improves our customers' purchasing and operating efficiencies. The introduction of new products is primarily driven by customer demand or product extensions originating from our vendors. We believe our long-standing customer and vendor relationships allow us to respond to customer feedback and introduce new products more rapidly. Broadening our product offering also helps us drive additional products through our distribution system, thereby increasing our scale and efficiency.
Customers
Our customer relationships range from locally owned single-location facilities to the largest national home improvement center and retail lumberyard chains across the U.S., with Home Depot and Builders FirstSource being our largest customers. Sales to Home Depot were recorded in our Building Materials Distribution and Wood Products segments and substantially all sales to Builders FirstSource were recorded in our Building Material Distribution segment. For additional information related to customers of our Wood Products and Building Materials Distribution segments, see the "Sales, Marketing, and Distribution" sections above.
Competition
Wood Products. The wood products manufacturing markets in which we operate are large and highly competitive. In EWP, we compete against several major North American EWP producers, such as Weyerhaeuser Company, Louisiana-Pacific Corporation, and Roseburg Forest Products, as well as several other smaller firms. Our EWP products also face competition from numerous dimension lumber producers, because EWP may be substituted by dimension lumber in many building
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applications. In plywood, we compete with Georgia-Pacific, the largest manufacturer in North America, other large producers such as Roseburg Forest Products, foreign imports produced principally in South America, and several smaller domestic producers. Our plywood products also face competition from OSB producers, because OSB can be substituted for plywood in many building and industrial applications. We have leading market positions in the manufacture of EWP and plywood. In the wood products manufacturing markets, we compete primarily on the basis of price, quality, availability, and particularly with respect to EWP, customer service, product support, and performance features offered. Most of our competitors are located in the U.S. and Canada, although we also compete with manufacturers in other countries, particularly when the U.S. dollar and economy are stronger relative to other countries, encouraging foreign producers to sell more of their plywood into the U.S.
Building Materials Distribution. The building materials distribution markets in which we operate are highly fragmented, and we compete in each of our geographic and product markets with national, regional, and local distributors. Our wholesale distribution competitors include BlueLinx Holdings Inc., Weyerhaeuser Company, Dixie Plywood and Lumber, OrePac, U.S. Lumber Group, Huttig Building Products, and Capital Lumber, among others. We also compete with wholesale brokers, specialty distributors, and certain buying cooperatives. We compete on the basis of pricing and availability of product, service and delivery capabilities, ability to assist customers with problem solving, extension of credit terms, customer relationships, geographic coverage, and breadth of product offerings. We distribute products for some manufacturers that also engage in direct sales to our distribution customers. Proximity to customers is also an important factor in minimizing shipping costs and facilitating quick order turnaround and on-time delivery. We believe our ability to obtain quality materials, from both internal and external sources, the scale and efficiency of our national footprint, and our focus on customer service are our primary competitive advantages in this segment. Also, financial stability is important to suppliers and customers in choosing distributors and allows for more favorable terms on which we are able to obtain products from our suppliers and sell to our customers.
We also present information pertaining to our segments, including product sales and customer concentration, in Note 17, Segment Information, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
Human Capital Management
Human capital management and our ability to attract, develop and retain talent that embraces our shared values of integrity, safety, respect, and pursuit of excellence have been and will continue to be critical to executing our previously described strategic objectives.
At Boise Cascade, the health and safety of our 6,040 associates is core to how we do business. We collect and report common lagging indicators of safety performance, and our safety programs include tools, training, and resources that allow us to collect, analyze, and share leading indicators of safety-related hazards broadly across our organization. We believe that our focus on leading indicators helps to prevent future incidents and injuries. Living our values means driving the expectation that each of our associates has ownership in safety and the authority to stop work if there is a safety concern. Our safety commitment extends to minimizing the spread of COVID-19. Our cross-functional crisis team continues to monitor and adjust our protocols as infection rates fluctuate and state/local regulations change across the country. We continue to follow the Centers for Disease Control’s guidance and communicate regularly to our associates.
Our Code of Ethics guides the actions and behaviors of anyone working for, representing, or partnering with Boise Cascade. The code establishes the expectations for ensuring we have an inclusive and harassment-free work environment. We have an open-door policy that encourages associates to speak up about any work-related issues, suggestions, or ideas. We also provide a confidential CARE Line, which offers an additional way to report behavior or activity that may be unsafe, unethical, or illegal.
We are committed to providing comprehensive benefit programs. We offer benefits that will help our associates and their families live healthier and more secure lives. Our Total Rewards program provides competitive pay, comprehensive health benefits, 401(k) savings plans, well-being programs, community engagement opportunities, education aid, and career recognition and development.
Selecting and developing talent is a vital aspect of our human capital strategy because our associates are at the heart of our Purpose and delivering on our promises to our stakeholders. We focus on developing talent from within our businesses and supplement with finding the right external hires to support our key strategic objectives of accelerating innovation, digital technology, and diversity and inclusion. We strive for excellence in business continuity and personal growth by developing our
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associates as individuals through targeted leadership programs, experiences, and assignments. Individual development includes annual performance reviews with development plans, access to a variety of resources, and ongoing education opportunities.
Environmental
A discussion of general and industry-specific environmental laws and regulations is presented under the caption "Environmental" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Item 3. Legal Proceedings" of this Form 10-K.
Capital Investment
Information concerning our capital expenditures is presented in "Investment Activities" under "Liquidity and Capital Resources" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K.
Seasonal Influences
We are exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors. These seasonal factors are common in the building products industry. For further information, see "Seasonal Influences" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K.
Trademarks
We maintain many trademarks for our manufactured wood products, particularly EWP. Our key registered trademarks include BOISE CASCADE® and the TREE-IN-A-CIRCLE® logo, which are perpetual in duration as long as we continue to timely file all post registration maintenance documents related thereto. We believe these key trademarks to be of significant importance to our business.
Available Information
Our filings under the Exchange Act, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and all amendments to these filings, are available free of charge on the investor relations portion of our website at www.bc.com. These reports are available as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. The reference to our website address does not constitute incorporation by reference of the information contained on the website, and the information contained on the website is not part of this document.
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Executive Officers and Key Management
Below is a list of names, ages, and a brief description of the business experience of our executive officers and key members of management, each as of February 12, 2021.
Name Age Position
Executive Officers:
Nate Jorgensen 56 Chief Executive Officer
Wayne Rancourt 58 Executive Vice President, Chief Financial Officer, and Treasurer
Mike Brown 59 Executive Vice President, Wood Products
Nick Stokes 63 Executive Vice President, Building Materials Distribution (retiring effective March 12, 2021)
Jill Twedt 41 Senior Vice President, General Counsel and Secretary
Kelly Hibbs 54 Vice President and Controller
Key Management:
Erin Nuxoll 60 Senior Vice President, Human Resources
Rich Viola 63 Senior Vice President of Sales and Marketing, Building Materials Distribution
Frank Elfering 54 Vice President, General Manager Western Operations, Building Materials Distribution
Tom Hoffmann 62 Vice President of Purchasing, Building Materials Distribution
Robert Johnson 56 Vice President, Engineered Wood Products Sales and Marketing, Wood Products
Chris Seymour 49 Vice President, Manufacturing Operations, Wood Products
Jeff Strom 53 Vice President, General Manager Eastern Operations, Building Materials Distribution (Executive Vice President, BMD effective March 12, 2021)
Nate Jorgensen, Chief Executive Officer
Mr. Jorgensen became the company's chief executive officer effective March 6, 2020. His previous positions include:
• Chief Operating Officer, January 2019 - March 2020
• Senior Vice President of Engineered Wood Products, Wood Products, November 2017 - January 2019
• Vice President of Engineered Wood Products, Wood Products, February 2016 - November 2017
• Engineered Wood Products Marketing Manager, Wood Products, Boise Cascade Company, June 2015 - February 2016
• Prior employment with Weyerhaeuser Company, a New York Stock Exchange-listed timberlands and wood products company, as Vice President of Weyerhaeuser Distribution, February 2011 - June 2015
Mr. Jorgensen received a bachelor's degree in Civil and Environmental Engineering from the University of Wisconsin and also attended the Tuck School of Business Executive Education Program, Dartmouth College, Hanover, NH.
Wayne Rancourt, Executive Vice President, Chief Financial Officer, and Treasurer
Mr. Rancourt became our executive vice president, chief financial officer, and treasurer in November 2014. His previous positions with the company include:
• Senior Vice President, Chief Financial Officer, and Treasurer, August 2009 - November 2014
• Vice President, Treasurer and Investor Relations, February 2008 - August 2009
Mr. Rancourt received a bachelor's degree in Accounting from Central Washington University, Ellensburg, WA. He is a member of the board of directors of Commercial Vehicle Group, Inc., a supplier of seating systems, warehouse automation subsystems, wire harnesses, plastic parts, and mechanical assemblies, which is traded publicly on NASDAQ.
Mike Brown, Executive Vice President, Wood Products
Mr. Brown was elected executive vice president, Wood Products, in January 2019. His previous positions with the company include:
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• Senior Vice President of Operations, Wood Products, November 2017 - January 2019
• Vice President of Operations, Wood Products, February 2016 - November 2017
• Manufacturing Operations Manager, Wood Products, November 2014 - February 2016
Mr. Brown received a bachelor's degree of science in Forestry from Australian National University in Canberra and a master's degree in Business Administration from Cranfield University, England.
Nick Stokes, Executive Vice President, Building Materials Distribution
Mr. Stokes, our executive vice president, Building Materials Distribution, has elected to retire from the company effective March 12, 2021. He was elected to the position in March 2014. His previous positions with the company include:
• Senior Vice President, Building Materials Distribution, February 2011 - March 2014
• Vice President, Building Materials Distribution, October 2004 - February 2011
Mr. Stokes received a bachelor's degree in Management and a bachelor's degree in Marketing from the University of Utah, Salt Lake City, UT.
Jill Twedt, Senior Vice President, General Counsel and Secretary
Ms. Twedt was elected senior vice president, general counsel, and secretary in October 2020. Her previous positions include:
• Vice President, General Counsel, and Secretary, January 2019 - October 2020
• Vice President, Legal and Secretary, August 2017 - January 2019
• Associate General Counsel, July 2007 - August 2017
Ms. Twedt received a bachelor's degree in Political Science from the College of Idaho, Caldwell, ID and a law degree from the University of Idaho, Moscow, ID.
Kelly Hibbs, Vice President and Controller
Mr. Hibbs became our vice president and controller in February 2011. His previous positions with the company include:
• Director of Strategic Planning and Internal Audit, February 2008 - February 2011
Mr. Hibbs received a bachelor's degree in Accounting from Boise State University, Boise, ID. He is a certified public accountant.
Erin Nuxoll, Senior Vice President, Human Resources
Ms. Nuxoll was elected senior vice president, human resources in January 2019. Her previous positions include:
• Vice President, Human Resources, Boise Cascade Company, August 2016 - January 2019
• Senior Vice President, Human Resources, J.R. Simplot Company, a privately held food and agribusiness company, February 2010 - March 2016
• Vice President, Human Resources, J.R. Simplot Company, March 2006 - February 2010
• Vice President, Human Resources, Boise Cascade, L.L.C., November 2004 - November 2005
Ms. Nuxoll received a bachelor's degree in Forest Management from Washington State University, Pullman, WA and a
master's degree in Organizational Leadership from Gonzaga University, Spokane, WA.
Rich Viola, Senior Vice President of Sales and Marketing, Building Materials Distribution
Mr. Viola became our senior vice president of sales and marketing, Building Materials Distribution, in February 2016. His previous positions with the company include:
• Vice President, Sales and Marketing, Building Materials Distribution, October 2013 - February 2016
Mr. Viola received a bachelor's degree in Marketing from Northeastern University, Boston, MA.
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Frank Elfering, Vice President, General Manager Western Operations, Building Materials Distribution
Mr. Elfering became our vice president and general manager of western operations, Building Materials Distribution, in May 2019. His previous positions with the company include:
• Vice President of Purchasing, Building Materials Distribution, October 2013 - May 2019
• Purchasing Manager, Building Materials Distribution, July 2013 - October 2013
Mr. Elfering received a bachelor's degree in Marketing from Oregon State University, Corvallis, OR.
Tom Hoffmann, Vice President of Purchasing, Buildings Materials Distribution
Mr. Hoffmann became our vice president of purchasing, Building Materials Distribution, in May 2019. His previous positions with the company include:
• Vice President of Operations, Building Materials Distribution, October 2016 - May 2019
• Division Operations Manager, Building Materials Distribution, September 2015 - October 2016
• Pacific Region Manager, Building Materials Distribution, November 2006 - September 2015
Mr. Hoffmann received a bachelor's degree in Business from the University of Idaho, Moscow, ID, with an emphasis in marketing and management.
Robert Johnson, Vice President, Engineered Wood Products Sales & Marketing, Wood Products
Mr. Johnson became our vice president of engineered wood products sales and marketing, Wood Products, in January 2020. His previous positions with the company include:
• Director of Engineered Wood Products, March 2019 - January 2020
• Region Manager, Wood Products, February 2016 - March 2019
• Business Optimization Manager, Wood Products, March 2015 - February 2016
• Business Optimization Engineer, Wood Products, October 2014 - March 2015
Mr. Johnson received a bachelor’s degree in Finance from the University of Oregon, Eugene, OR.
Chris Seymour, Vice President, Manufacturing Operations, Wood Products
Mr. Seymour became our vice president of manufacturing operations, Wood Products, in January 2020. His previous positions with the company include:
• Director of Operations, Wood Products, February 2019 - January 2020
• Operations Manager, Wood Products, November 2017 - February 2019
• Area Manager, Wood Products, February 2015 - November 2017
Mr. Seymour received a bachelor’s degree in Business Administration and a master’s degree in Wood Science from West Virginia University, Morgantown, WV.
Jeff Strom, Vice President, General Manager Eastern Operations, Building Materials Distribution
Mr. Strom will become Executive Vice President, Building Materials Distribution, effective March 12, 2021. He is currently our vice president and general manager of eastern operations, Building Materials Distribution, to which position he was elected in January 2020. His previous positions with the company include:
• General Manager, Eastern Region, Building Materials Distribution, May 2019 - January 2020
• Region Manager, Building Materials Distribution, November 2015 - May 2019
• Branch Manager, Building Materials Distribution, September 2008 - November 2015
Mr. Strom received a bachelor’s degree in Management from the Georgia Institute of Technology, Atlanta, GA.
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