Boise, Idaho, Nov. 07, 2019 (GLOBE NEWSWIRE) — Boise Cascade Company (“Boise Cascade,” the “Company,” “we,” or “our”) (NYSE: BCC) today reported net income of $27.2 million, or $0.69 per share, on sales of $1.3 billion for the third quarter ended September 30, 2019, compared with net income of $13.8 million, or $0.35 per share, on sales of $1.3 billion for the third quarter ended September 30, 2018. Third quarter 2019 results include $1.0 million of after-tax losses, or $0.03 per share, from a non-cash pension settlement charge. Third quarter 2018 results included $16.7 million of net after-tax losses, or $0.42 per share, from a non-cash pension settlement charge and impairment and sale related losses. These charges also negatively impacted reported EBITDA and adjusted EBITDA, as discussed below.

Third Quarter 2019 Highlights

  3Q 2019 3Q 2018 % change         (in thousands, except per-share data and percentages)       Consolidated Results      Sales $1,269,524  $1,338,512  (5)%Net income 27,171  13,848  96%Net income per common share – diluted 0.69  0.35  97%Adjusted EBITDA 1 64,054  42,721  50%       Segment Results      Wood Products sales $325,102  $402,672  (19)%Wood Products income 15,597  13,929  12%Wood Products EBITDA 1 30,849  32,656  (6)%       Building Materials Distribution sales 1,145,621  1,159,304  (1)%Building Materials Distribution income 38,665  23,504  65%Building Materials Distribution EBITDA 1 43,943  28,259  56%

1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.

            In the third quarter 2019, total U.S. housing starts increased 4% compared to the same period last year. Single-family starts, the primary driver of our sales, also increased 4%, while multi-family starts increased 5%. On a year-to-date basis through September 2019, total and single-family housing starts decreased 1% and 2%, respectively, from the same period in 2018.

            “Despite the lack of growth in residential construction and ongoing weakness in commodity wood products pricing that has persisted this year, both of our businesses continue to execute well. BMD delivered outstanding financial results during the third quarter, with solid growth in general line product sales and gross margins. With the operating footprint changes made during the last year, our favorable performance in EWP is more evident in Wood Products‘ results. The stability of EWP, together with input cost improvements, mitigated the overall earnings impact of the significant year-over-year decline in plywood pricing,” commented Tom Corrick, CEO. “Our operating results have positioned us to comfortably fund our bolt-on acquisitions and internal growth initiatives while strengthening our balance sheet. As part of our capital allocation process, I am pleased our board approved an 11% increase in our regular quarterly dividend to $0.10 per share, as well as a supplemental dividend of $1.00 per share, both payable in December. This is consistent with our objective of generating favorable returns on our shareholders’ invested capital. We remain well positioned to fund anticipated working capital needs in early 2020, as well as having flexibility to take advantage of internal growth initiatives and acquisition opportunities which may occur in the next six to nine months.”

Wood Products

            Wood Products sales, including sales to Building Materials Distribution (BMD), decreased $77.6 million, or 19%, to $325.1 million for the three months ended September 30, 2019, from $402.7 million for the three months ended September 30, 2018. The decline in sales was driven primarily by lower sales prices and sales volumes for plywood. The lower sales volume for plywood was mostly due to weaker market conditions and downtime for facility capital improvements, as well as the sale of the Moncure plywood facility on March 1, 2019. The decrease in sales was also attributable to lower sales volumes of lumber and particleboard due to the sale or closure of three lumber mills and our particleboard plant during 2018. Approximately one-third of the decrease in Wood Products sales is attributable to these facility sales or closures. These decreases were offset partially by increases in sales volumes and net sale prices for LVL.

            Wood Products segment income increased $1.7 million to $15.6 million for the three months ended September 30, 2019, from $13.9 million for the three months ended September 30, 2018. Third quarter 2018 results included impairment and sales related losses of $11.0 million (Impairment Loss). Excluding the Impairment Loss, segment income decreased due to lower sales prices of plywood, offset partially by lower costs of OSB (used in the manufacture of I-joists) and logs, as well as lower employee-related expenses. In addition, depreciation and amortization expense decreased due primarily to discontinued depreciation on manufacturing facilities curtailed and sold in the last 12 months.

            Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

  3Q 2019 vs. 3Q 2018 3Q 2019 vs. 2Q 2019      Average Net Selling Prices      LVL 1% (1)%  I-joists 1% (1)%  Plywood (29)% (7)% Sales Volumes      LVL 4% 1%  I-joists (2)% (1)%  Plywood (7)% —%

Building Materials Distribution

            BMD‘s sales decreased $13.7 million, or 1%, to $1,145.6 million for the three months ended September 30, 2019, from $1,159.3 million for the three months ended September 30, 2018. Compared with the same quarter in the prior year, the overall decrease in sales was driven by a sales price decrease of 11%, offset partially by a sales volume increase of 10%. Excluding the impact of the acquisition of wholesale building material distribution locations in Nashville, Tennessee, Medford, Oregon, and Cincinnati, Ohio during 2018, and the Birmingham, Alabama acquisition in 2019, BMD sales would have decreased 4%. By product line, commodity sales decreased 16%, general line product sales increased 18%, and sales of EWP (substantially all of which is sourced through our Wood Products segment) increased 2%.

            BMD segment income increased $15.2 million to $38.7 million for the three months ended September 30, 2019, from $23.5 million in the comparative prior year quarter. The improvement in segment income was driven primarily by a gross margin increase of $30.3 million, resulting from improved gross margins on commodity products and higher sales of general line products compared with third quarter 2018. Gross margins on commodity products in the prior year quarter were negatively impacted by sharply falling prices. The increase in gross margin during third quarter 2019 was offset partially by increased selling and distribution expenses of $13.3 million.
           
Balance Sheet

            Boise Cascade ended third quarter 2019 with $306.4 million of cash and cash equivalents and $365.4 million of undrawn committed bank line availability, for total available liquidity of $671.8 million. The Company had $440.3 million of outstanding debt at September 30, 2019.

            On September 30, 2019, Boise Cascade transferred $19.8 million of its qualified defined benefit pension plan (Pension Plan) assets to The Prudential Insurance Company of America (Prudential) for the purchase of a group annuity contract. Under the arrangement, Prudential assumed ongoing responsibility for administration and benefit payments for approximately 10% of Boise Cascade’s U.S. qualified pension plan projected benefit obligations. As a result of the transfer of pension plan assets, we recorded settlement expense of $1.3 million in third quarter 2019. We also recognized a non-cash pension settlement charge of $11.3 million in third quarter 2018 under a similar transaction in which we transferred $124.8 million of our Pension Plan assets to Prudential.

            We adopted the new lease accounting standard on January 1, 2019. The most significant impact of the adoption was the recognition of right-of-use assets and lease liabilities for operating leases, as reflected on the face of our balance sheet as of September 30, 2019. The standard did not have a material impact on our consolidated net earnings and cash flows. For additional information on the impact of this standard on our accounting for leases and additional required qualitative disclosures of our lease policies, see our Form 10-Q for the quarterly period ended September 30, 2019, filed with the Securities and Exchange Commission.

Dividends
           
            On October 30, 2019, our board of directors declared a quarterly dividend of $0.10 per share, as well as a supplemental dividend of $1.00 per share, on our common stock payable on December 16, 2019, to stockholders of record on December 2, 2019.

Outlook
           
            We expect to experience seasonally slower demand growth for the products we manufacture and distribute in fourth quarter 2019. The October 2019 Blue Chip consensus forecast for 2019 and 2020 reflects 1.25 million and 1.27 million total U.S. housing starts, respectively, compared with actual housing starts of 1.25 million in 2018. Although we believe U.S. demographics are supportive of higher levels of housing starts, we expect near-term residential construction growth to be flat to slightly down due to constraints faced by builders, such as availability of labor and building lots, as well as affordability constraints faced by prospective buyers. The pace of household formation rates and residential repair-and-remodeling activity will be affected by employment growth, wage growth, prospective home buyers‘ access to and cost of financing, housing affordability, and consumer confidence, as well as other factors. Household formation rates in turn will be a key factor behind the demand for new construction. In addition, the size of new single-family residences as well as the mix of single and multi-family starts will influence product consumption. We will continue to manage our production levels to our sales demand. As in past years, we plan to take scheduled capital and maintenance-related downtime at certain plywood facilities during the fourth quarter.

            Weak commodity products pricing experienced in the first half of 2019 continued throughout third quarter 2019 as weaker year-to-date residential construction activity and additional industry capacity brought on in 2018 have led to supply and demand imbalances. Commodity product pricing during the remainder of 2019 and into 2020 will be a key driver of our financial results and will be dependent on industry operating rates, net import and export activity, transportation constraints or disruptions, inventory levels in various distribution channels, and seasonal demand patterns. We anticipate that commodity products pricing in the fourth quarter of 2019 will remain at low absolute, although more stable, levels compared to fourth quarter 2018.

            We expect our capital spending, excluding acquisitions, to be $85-$95 million in 2019, including spending to improve the efficiency of our veneer production at our Chester, South Carolina, and Florien, Louisiana, facilities. In addition, we expect our capital spending, excluding acquisitions, to also be $85-$95 million in 2020.
           
            We expect fourth quarter 2019 financial results to be improved compared with fourth quarter 2018. Included in Wood Products fourth quarter 2018 results were certain items that negatively affected reported earnings. These items include $24.0 million of pre-tax impairment and sale related losses related to the sale of our hardwood plywood facility in Moncure, North Carolina, and $55.0 million and $2.8 million, respectively, of pre-tax accelerated depreciation and other curtailment related costs due to the permanent curtailment of LVL production at our Roxboro, North Carolina, facility.
           
About Boise Cascade
           
            Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company‘s website at .

Webcast and Conference Call

            Boise Cascade will host a webcast and conference call on Thursday, November 7, at 11 a.m. Eastern, to review the Company‘s third quarter results.

            You can join the webcast through the Company‘s website by going to www.bc and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15 minutes before the start of the webcast to register. To join the conference call, dial (international callers should dial), participant passcode 2990498, at least 10 minutes before the start of the call.

            The archived webcast will be available in the Investor Relations section of the Company‘s website. A replay of the conference call will be available from Thursday, November 7, at 2 p.m. Eastern through Thursday, November 14, at 2 p.m. Eastern. Replay numbers are for U.S. callers and for international callers, and the passcode will be 2990498.

Use of Non-GAAP Financial Measures
           
            We refer to the terms EBITDA and Adjusted EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). 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.

            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 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 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.
           
Forward-Looking Statements

            This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements preceded or followed by, or that otherwise include, the words “believes,” “expects,” “anticipates,” “intends,” “project,” “estimates,” “plans,” “forecast,” “is likely to,” and similar expressions or future or conditional verbs such as “will,” “may,” “would,” “should,” and “could” are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.

Boise Cascade Company
Consolidated Statements of Operations
(in thousands, except per-share data)

 Three Months Ended Nine Months Ended September 30 June 30,
 2019
 September 30 2019 2018  2019 2018          Sales$1,269,524  $1,338,512  $1,230,081  $3,541,691  $3,929,485           Costs and expenses         Materials, labor, and other operating expenses (excluding depreciation)1,078,924  1,163,020  1,049,655  3,026,401  3,366,716 Depreciation and amortization20,969  23,881  19,454  59,640  70,288 Selling and distribution expenses106,567  93,395  98,866  292,459  273,592 General and administrative expenses18,603  16,891  16,786  52,064  52,754 Other (income) expense, net(437) 10,870  188  (557) 9,820  1,224,626  1,308,057  1,184,949  3,430,007  3,773,170           Income from operations44,898  30,455  45,132  111,684  156,315           Foreign currency exchange gain (loss)(200) 163  248  210  (272)Pension expense (excluding service costs)(1,613) (11,778) (290) (2,202) (24,402)Interest expense(6,532) (6,585) (6,486) (19,455) (19,527)Interest income837  500  416  1,745  1,001 Change in fair value of interest rate swaps(569) 279  (1,551) (3,103) 2,419  (8,077) (17,421) (7,663) (22,805) (40,781)          Income before income taxes36,821  13,034  37,469  88,879  115,534 Income tax (provision) benefit(9,650) 814  (9,751) (22,601) (22,811)Net income$27,171  $13,848  $27,718  $66,278  $92,723           Weighted average common shares outstanding:           Basic39,087  38,998  39,087  39,020  38,920   Diluted39,292  39,461  39,199  39,202  39,397           Net income per common share:           Basic$0.70  $0.36  $0.71  $1.70  $2.38   Diluted$0.69  $0.35  $0.71  $1.69  $2.35           Dividends declared per common share$0.09  $1.07  $0.09  $0.27  $1.21 

See accompanying summary notes to consolidated financial statements and segment information.

Wood Products Segment
Statements of Operations
(in thousands, except percentages)

 Three Months Ended Nine Months Ended September 30 June 30,
 2019
 September 30 2019 2018  2019 2018          Segment sales$325,102  $402,672  $334,256  $978,881  $1,226,146           Costs and expenses         Materials, labor, and other operating expenses (excluding depreciation)283,354  346,361  289,545  855,929  1,045,217 Depreciation and amortization15,252  18,727  14,092  43,082  55,724 Selling and distribution expenses7,718  7,809  7,861  23,284  25,304 General and administrative expenses3,379  5,031  3,473  10,480  13,401 Other (income) expense, net(198) 10,815  377  (29) 9,968  309,505  388,743  315,348  932,746  1,149,614           Segment income$15,597  $13,929  $18,908  $46,135  $76,532            (percentage of sales)          Segment sales100.0% 100.0% 100.0% 100.0% 100.0%          Costs and expenses         Materials, labor, and other operating expenses (excluding depreciation)87.2% 86.0% 86.6% 87.4% 85.2%Depreciation and amortization4.7% 4.7% 4.2% 4.4% 4.5%Selling and distribution expenses2.4% 1.9% 2.4% 2.4% 2.1%General and administrative expenses1.0% 1.2% 1.0% 1.1% 1.1%Other (income) expense, net(0.1)% 2.7% 0.1% —% 0.8% 95.2% 96.5% 94.3% 95.3% 93.8%          Segment income4.8% 3.5% 5.7% 4.7% 6.2%

Building Materials Distribution Segment
Statements of Operations
(in thousands, except percentages)

 Three Months Ended Nine Months Ended September 30 June 30,
 2019
 September 30 2019 2018  2019 2018          Segment sales$1,145,621  $1,159,304  $1,097,421  $3,150,750  $3,365,468           Costs and expenses         Materials, labor, and other operating expenses (excluding depreciation)996,313  1,040,342  961,862  2,758,375  2,982,793 Depreciation and amortization5,278  4,755  5,028  15,438  13,374 Selling and distribution expenses98,797  85,520  90,950  269,012  248,095 General and administrative expenses6,759  5,128  5,967  18,420  17,745 Other (income) expense, net(191) 55  (186) (477) (144) 1,106,956  1,135,800  1,063,621  3,060,768  3,261,863           Segment income$38,665  $23,504  $33,800  $89,982  $103,605            (percentage of sales)          Segment sales100.0% 100.0% 100.0% 100.0% 100.0%          Costs and expenses         Materials, labor, and other operating expenses (excluding depreciation)87.0% 89.7% 87.6% 87.5% 88.6%Depreciation and amortization0.5% 0.4% 0.5% 0.5% 0.4%Selling and distribution expenses8.6% 7.4% 8.3% 8.5% 7.4%General and administrative expenses0.6% 0.4% 0.5% 0.6% 0.5%Other (income) expense, net—% —% —% —% —% 96.6% 98.0% 96.9% 97.1% 96.9%          Segment income3.4% 2.0% 3.1% 2.9% 3.1%

Segment Information
(in thousands)

 Three Months Ended Nine Months Ended September 30 June 30,
 2019
 September 30 2019 2018  2019 2018Segment sales         Wood Products$325,102  $402,672  $334,256  $978,881  $1,226,146 Building Materials Distribution1,145,621  1,159,304  1,097,421  3,150,750  3,365,468 Intersegment eliminations and other(201,199) (223,464) (201,596) (587,940) (662,129)Total net sales$1,269,524  $1,338,512  $1,230,081  $3,541,691  $3,929,485           Segment income         Wood Products$15,597  $13,929  $18,908  $46,135  $76,532 Building Materials Distribution38,665  23,504  33,800  89,982  103,605 Total segment income54,262  37,433  52,708  136,117  180,137 Unallocated corporate(9,364) (6,978) (7,576) (24,433) (23,822)Income from operations$44,898  $30,455  $45,132  $111,684  $156,315           Segment EBITDA (a)         Wood Products$30,849  $32,656  $33,000  $89,217  $132,256 Building Materials Distribution43,943  28,259  38,828  105,420  116,979 

See accompanying summary notes to consolidated financial statements and segment information.

Boise Cascade Company
Consolidated Balance Sheets
(in thousands)

 September 30, 2019 December 31, 2018  ASSETS       Current   Cash and cash equivalents$306,443  $191,671 Receivables   Trade, less allowances of $1,087 and $1,062295,585  214,338 Related parties630  436 Other15,728  14,466 Inventories492,588  533,049 Prepaid expenses and other14,156  31,818 Total current assets1,125,130  985,778     Property and equipment, net464,373  487,224 Operating lease right-of-use assets65,571  — Finance lease right-of-use assets22,238  — Timber deposits14,043  12,568 Goodwill60,382  59,159 Intangible assets, net18,103  16,851 Deferred income taxes7,962  8,211 Other assets8,121  11,457 Total assets$1,785,923  $1,581,248 

Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data)

 September 30, 2019 December 31, 2018  LIABILITIES AND STOCKHOLDERS‘ EQUITY       Current   Accounts payable   Trade$286,704  $210,587 Related parties2,349  1,070 Accrued liabilities   Compensation and benefits72,901  87,911 Interest payable1,800  6,748 Other80,996  63,509 Total current liabilities444,750  369,825     Debt   Long-term debt440,265  439,428     Other   Compensation and benefits44,120  41,283 Operating lease liabilities, net of current portion59,591  — Finance lease liabilities, net of current portion23,661  — Deferred income taxes29,038  19,218 Other long-term liabilities12,932  38,904  169,342  99,405     Commitments and contingent liabilities       Stockholders‘ equity   Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding—  — Common stock, $0.01 par value per share; 300,000 shares authorized, 44,343 and 44,076 shares issued, respectively443  441 Treasury stock 5,367 shares at cost(138,909) (138,909)Additional paid-in capital531,119  528,654 Accumulated other comprehensive loss(46,748) (47,652)Retained earnings385,661  330,056 Total stockholders‘ equity731,566  672,590 Total liabilities and stockholders‘ equity$1,785,923  $1,581,248 

Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands)

 Nine Months Ended September 30 2019 2018Cash provided by (used for) operations   Net income$66,278  $92,723 Items in net income not using (providing) cash   Depreciation and amortization, including deferred financing costs and other61,340  71,832 Stock-based compensation6,016  6,893 Pension expense2,687  25,000 Deferred income taxes10,008  883 Change in fair value of interest rate swaps3,103  (2,419)Other(235) 8,695 Decrease (increase) in working capital, net of acquisitions   Receivables(77,811) (64,261)Inventories45,184  (88,073)Prepaid expenses and other(3,516) (2,736)Accounts payable and accrued liabilities66,130  83,204 Pension contributions(1,324) (21,566)Income taxes payable19,109  6,991 Other(2,219) 2,655 Net cash provided by operations194,750  119,821     Cash provided by (used for) investment   Expenditures for property and equipment(53,249) (47,705)Acquisitions of businesses and facilities(15,676) (17,532)Proceeds from sales of facilities2,493  — Proceeds from sales of assets and other1,644  835 Net cash used for investment(64,788) (64,402)    Cash provided by (used for) financing   Borrowings of long-term debt, including revolving credit facility5,500  7,500 Payments of long-term debt, including revolving credit facility(5,500) (7,500)Dividends paid on common stock(11,070) (47,113)Tax withholding payments on stock-based awards(3,575) (5,135)Other(545) 1,031 Net cash used for financing(15,190) (51,217)    Net increase in cash and cash equivalents114,772  4,202     Balance at beginning of the period191,671  177,140     Balance at end of the period$306,443  $181,342 

Summary Notes to Consolidated Financial Statements and Segment Information
            The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company‘s Consolidated Financial Statements and should be read in conjunction with the Company’s 2018 Form 10-K and the Company‘s other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.
      a.     EBITDA represents 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. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended September 30, 2019 and 2018, and June 30, 2019, and the nine months ended September 30, 2019 and 2018:

 Three Months Ended Nine Months Ended September 30 June 30,
 2019
 September 30 2019 2018  2019 2018 (in thousands)Net income$27,171  $13,848  $27,718  $66,278  $92,723 Interest expense6,532  6,585  6,486  19,455  19,527 Interest income(837) (500) (416) (1,745) (1,001)Income tax provision (benefit)9,650  (814) 9,751  22,601  22,811 Depreciation and amortization20,969  23,881  19,454  59,640  70,288 EBITDA63,485  43,000  62,993  166,229  204,348 Change in fair value of interest rate swaps569  (279) 1,551  3,103  (2,419)Adjusted EBITDA$64,054  $42,721  $64,544  $169,332  $201,929 

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended September 30, 2019 and 2018, and June 30, 2019, and the nine months ended September 30, 2019 and 2018:

 Three Months Ended Nine Months Ended September 30 June 30,
 2019
 September 30 2019 2018  2019 2018 (in thousands)Wood Products         Segment income$15,597  $13,929  $18,908  $46,135  $76,532 Depreciation and amortization15,252  18,727  14,092  43,082  55,724 EBITDA$30,849  $32,656  $33,000  $89,217  $132,256           Building Materials Distribution         Segment income$38,665  $23,504  $33,800  $89,982  $103,605 Depreciation and amortization5,278  4,755  5,028  15,438  13,374 EBITDA$43,943  $28,259  $38,828  $105,420  $116,979           Corporate         Unallocated corporate expenses$(9,364) $(6,978) $(7,576) $(24,433) $(23,822)Foreign currency exchange gain (loss)(200) 163  248  210  (272)Pension expense (excluding service costs)(1,613) (11,778) (290) (2,202) (24,402)Change in fair value of interest rate swaps(569) 279  (1,551) (3,103) 2,419 Depreciation and amortization439  399  334  1,120  1,190 EBITDA(11,307) (17,915) (8,835) (28,408) (44,887)Change in fair value of interest rate swaps569  (279) 1,551  3,103  (2,419)Corporate adjusted EBITDA$(10,738) $(18,194) $(7,284) $(25,305) $(47,306)          Total company adjusted EBITDA$64,054  $42,721  $64,544  $169,332  $201,929 

Investor :  Wayne Rancourt,
Media :  Lisa Chapman,