Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Price of Our Common Stock
Our common stock is traded on the New York Stock Exchange (NYSE) under the trading symbol BCC. On February 12, 2021, there were 39,202,927 shares of our common stock outstanding, held by 10 stockholders of record, one of which was Cede & Co., which is the nominee of The Depository Trust Company.
Performance Graph
The following graph compares the return on a $100 investment in our common stock on December 31, 2015, with a $100 investment also made on December 31, 2015, in the S&P SmallCap 600 Index and in our peer group. The companies included in our peer group are Louisiana-Pacific Corporation, BlueLinx Holdings Inc., UFP Industries, Inc., Builders FirstSource, Inc., and Norbord Inc. The information in the graph below is not "soliciting material," is not deemed "filed" with the SEC, and is not to be incorporated by reference in any of our filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Annual Report on Form 10-K, except to the extent that we specifically incorporate such information by reference. The stock performance shown below is not necessarily indicative of future performance.
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(a) $100 invested in stock or index on December 31, 2015, including reinvestment of dividends in additional shares of the same class of equity securities.
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Unregistered Sales of Equity Securities
We did not sell any unregistered securities from January 1, 2020, through December 31, 2020.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
On February 25, 2015, our Board of Directors authorized a common stock repurchase program (Program), which allows us to purchase up to two million shares of our common stock, on an opportunistic basis, through open market transactions, privately negotiated transactions, or accelerated share repurchase transactions. As of December 31, 2020, there were 496,989 shares of common stock that may yet be purchased under the Program. We did not repurchase any shares of our common stock during the three months ended December 31, 2020.
ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth our selected financial data for the periods indicated and should be read in conjunction with the disclosures in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
Year Ended December 31
2020 (a) 2019 2018 (b)(c) 2017 (c) 2016 (d)
(millions, except per-share data)
Consolidated statement of operations data
Sales $ 5,475 $ 4,643 $ 4,995 $ 4,432 $ 3,911
Net income $ 175 $ 81 $ 20 $ 83 $ 38
Net income per common share – diluted $ 4.44 $ 2.06 $ 0.52 $ 2.12 $ 0.98
Earnings before interest, taxes, depreciation, and amortization (EBITDA) (e) $ 407 $ 212 $ 193 $ 223 $ 142
Adjusted EBITDA (e) $ 423 $ 215 $ 193 $ 222 $ 153
Cash dividends declared per common share (f) $ 2.00 $ 1.37 $ 1.30 $ 0.07 $ —
Balance sheet data (at end of year)
Cash and cash equivalents $ 405 $ 285 $ 192 $ 177 $ 104
Working capital, excluding cash and cash equivalents $ 379 $ 353 $ 424 $ 374 $ 344
Total assets (g) $ 1,966 $ 1,693 $ 1,581 $ 1,607 $ 1,439
Total long-term debt $ 444 $ 441 $ 439 $ 438 $ 438
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(a) The following items negatively impacted 2020 net income:
• $14.0 million pre-tax loss on extinguishment of debt. For more information, see Note 10, Debt, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
• $15.0 million of accelerated depreciation and $1.7 million of various closure-related costs related to the permanent curtailment of I-joist production at our Roxboro, North Carolina facility. For additional information, see Note 6, Curtailment of Manufacturing Facilities, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
• $6.2 million pre-tax loss from non-cash pension settlement charges, related to the elimination of our qualified defined benefit pension plan (Pension Plan). For more information, see Note 12, Retirement and Benefit Plans, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
• $38.8 million of incremental income tax expense related to the release of stranded tax effects upon elimination of our Pension Plan in December 2020. For more information, see Note 4, Income Taxes and Note 12, Retirement and Benefit Plans, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
(b) The following items negatively impacted 2018 net income:
• $23.3 million pre-tax loss from non-cash pension settlement charges. For more information, see Note 12, Retirement and Benefit Plans, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
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• $11.5 million pre-tax loss from the sale of two lumber mills and a particleboard plant located in Northeast Oregon, as well as $24.0 million of pre-tax impairment and sale related losses on the Moncure plywood facility upon being classified as held for sale. For additional information, see Note 7, Sale of Manufacturing Facilities, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
• $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 permanent curtailment of LVL production at our Roxboro, North Carolina facility. For additional information, see Note 6, Curtailment of Manufacturing Facilities, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
(c) In 2018 and 2017, net income included $3.8 million and $8.1 million, respectively, of income tax benefits associated with the remeasurement of our deferred tax assets and liabilities at the new federal corporate income tax rate of 21% as of December 22, 2017 (date of enactment of the Tax Cuts and Jobs Act). For more information, see Note 4, Income Taxes, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
(d) The following items impacted 2016 net income:
• $8.5 million of income tax benefit primarily associated with the reversal of a valuation allowance on foreign deferred tax assets, net of other tax adjustments.
• $14.3 million pre-tax loss on extinguishment of debt.
• $3.9 million pre-tax settlement expense associated with voluntary lump-sum payments to pension plan participants.
(e) The following table reconciles net income to EBITDA and Adjusted EBITDA for the periods indicated:
Year Ended December 31
2020 2019 2018 2017 2016
(millions)
Net income $ 175 $ 81 $ 20 $ 83 $ 38
Interest expense 26 26 26 25 27
Interest income (1) (3) (2) (1) —
Income tax provision 111 27 2 35 5
Depreciation and amortization 95 80 147 80 73
EBITDA 407 212 193 223 142
Change in fair value of interest rate swaps 2 3 (1) (1) (4)
Loss on extinguishment of debt 14 — — — 14
Adjusted EBITDA $ 423 $ 215 $ 193 $ 222 $ 153
We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of debt.
We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under generally accepted accounting principles (GAAP) and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income (loss) have limitations as analytical tools, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
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(f) For more information regarding our dividends declared, including supplemental dividends of $1.60 per share of our common stock during third quarter 2020 and $1.00 per share of our common stock during each fourth quarter 2019 and third quarter 2018, see Note 14, Stockholders' Equity, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
(g) On January 1, 2019, we adopted Accounting Standards Update 2016-02, Leases (Topic 842), using the modified retrospective transition method and used the effective date as our date of initial application. Consequently, leases for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 840. We recorded additional lease liabilities for operating leases of $72.4 million, with an offsetting increase to right-of-use (ROU) assets of approximately $69.2 million as of January 1, 2019. For more information regarding our leases, see Note 11, Leases, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
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