Engineered wood-products maker and distributor Boise Cascade Thursday filed plans for an initial public offering of up to $200 million in common stock, saying it will use the funds to improve its working capital, finance acquisitions, and boost production capacity. The company intends to trade under the symbol "BCC" on the New York Stock Exchange.
The announcement follows a flurry of positive third-quarter reports from wood-product manufacturers of solid revenue gains and offers hints at coming production capacity increases buoyed by positive momentum in the residential new construction sector.
Boise's EBITDA rose three-fold during the third quarter from a year earlier to hit $36.8 million on sales growth of 22% to $764.6 million for the same period; sales in its distribution division grew 21% during the period from a year earlier to $605.2 million with volumes up 8% and prices rising 13%. The company cited below-historical demand levels for its manufacturing and distribution segments during the quarter and maintained that it would operate production facilities below capacity to match demand.
In its IPO registration statement, the company noted its engineered wood product facilities were operating at 50% of LVL press capacity. The company says it is planning to increase production of internal veneer products, looking to make acquisitions in the wood-products segment, and expanding the building materials distribution group.