Net sales up more than 14 percent, led by
significant gains in industrial
Universal Forest Products, Inc. (Nasdaq: UFPI) today announced
first quarter earnings attributable to controlling interest of
$10.2 million, up 41.0 percent over same period of 2014. Diluted
earnings per share were $0.51, compared to $0.36 for the first
quarter of 2014. Net sales for the first quarter were $633.0
million, up 14.3 percent over the first quarter of 2014.
Each of the Company’s three markets showed sales increases, led
by significant gains in industrial. The overall sales increase was
attributable to a 14 percent gain in unit sales. “This solid
performance resulted from the remarkable efforts of our people, who
managed their operations well and who continue to create
opportunity in many areas of our business,” said CEO Matthew J.
Missad.
“Growth with our retail customers, success with new product
introductions, and significant gains in our industrial business
aided by strong results from new acquisitions were among the
drivers that helped us deliver these results,” he added. “Our
strategies to improve top- and bottom-line results are working, and
we are focused on enhancing our growth and success day by day.”
While the Company faced typical first-quarter weather
challenges, “We noticed a significant improvement in our business
when the weather broke in March and customer orders increased in
preparation for the building season,” Missad said.
“We are well-positioned to meet the demands of a busy season and
anticipate strong orders in line with healthier economic conditions
and consumer spending,” he added.
By market, the Company posted the following first-quarter 2015
gross sales results:
Retail: $229.9 million, up 14 percent over the same period of
2014
The Company saw increases in unit sales to its retail customers,
reflecting share gains in certain core product lines, success in
the company’s new product sales initiative, improved consumer
spending and growth with big box retailers, who saw healthy
increases in comparable store sales. The Company believes that it
is well-positioned to meet the growing demand of customers as the
building season kicks into high gear. It remains focused on
enhancing its product offerings, creating new products and
improving upon existing products, and enhancing services to
customers.
Industrial: $211.2 million, up 23 percent over the first
quarter of 2014
This market includes packaging, material handling and related
products and applications for industrial customers. Acquisitions
since the first quarter of 2014 contributed positively to the unit
sales growth in this market. The Company also added new customers
and increased market share as the economy improved. The Company
remains focused on adding customers and products, expanding
products and services, adding capacity and growing its business in
non-wood packaging materials to offer complete packaging
solutions.
Construction: $200.7 million, up 6 percent over the same
period of 2014
This market includes residential and manufactured housing,
commercial construction and concrete forming. The Company’s growth
in this market was attributable to overall unit sales gains, with
strong results in concrete forming and commercial construction. A
smaller gain in residential construction reflects the Company’s
ongoing focus on growing business more selectively and
profitably.
CONFERENCE CALL
Universal Forest Products will conduct a conference call to
discuss information included in this news release and related
matters at 8:30 a.m. ET on Thurs., April 16, 2015. The call will be
hosted by CEO Matthew J. Missad and CFO Michael Cole, and will be
available for analysts and institutional investors domestically at
(877) 546-5018 and internationally at (857) 244-7550. Use
conference pass code 35981639. The conference call will be
available simultaneously and in its entirety to all interested
investors and news media through a webcast at http://www.ufpi.com.
A replay of the call will be available through May 17, 2015,
domestically at (888) 286-8010 and internationally at (617)
801-6888. Use replay pass code 92011785.
UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company with
subsidiaries throughout North America and in Australia that supply
wood, wood composite and other products to three robust markets:
retail, construction and industrial. The
Company is headquartered in Grand Rapids, Mich., and is celebrating
its 60th year in business. For more information about Universal
Forest Products, Inc., or its affiliated operations, go to
www.ufpi.com.
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act, as
amended, that are based on management’s beliefs, assumptions,
current expectations, estimates and projections about the markets
we serve, the economy and the Company itself. Words like
“anticipates,” “believes,” “confident,” “estimates,” “expects,”
“forecasts,” “likely,” “plans,” “projects,” “should,” variations of
such words, and similar expressions identify such forward-looking
statements. These statements do not guarantee future performance
and involve certain risks, uncertainties and assumptions that are
difficult to predict with regard to timing, extent, likelihood and
degree of occurrence. The Company does not undertake to update
forward-looking statements to reflect facts, circumstances, events,
or assumptions that occur after the date the forward-looking
statements are made. Actual results could differ materially from
those included in such forward-looking statements. Investors are
cautioned that all forward-looking statements involve risks and
uncertainty. Among the factors that could cause actual results to
differ materially from forward-looking statements are the
following: fluctuations in the price of lumber; adverse or unusual
weather conditions; adverse economic conditions in the markets we
serve; government regulations, particularly involving environmental
and safety regulations; and our ability to make successful business
acquisitions. Certain of these risk factors as well as other risk
factors and additional information are included in the Company's
reports on Form 10-K and 10-Q on file with the Securities and
Exchange Commission.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND
COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE MONTHS
ENDED MARCH 2015/2014 Quarter
Period Year to Date (In thousands, except per
share data) 2015 2014
2015 2014
NET SALES $ 633,025 100 % $ 553,998 100 % $
633,025 100 % $ 553,998 100.0 %
COST OF GOODS SOLD
553,443 87.4 487,986 88.1
553,443 87.4 487,986 88.1
GROSS
PROFIT 79,582 12.6 66,012 11.9 79,582 12.6 66,012 11.9
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 61,705
9.7 53,908 9.7 61,705 9.7 53,908 9.7
NET (GAIN) LOSS ON
DISPOSITION AND IMPAIRMENT OF ASSETS 14 -
(524 ) (0.1 ) 14 - (524 ) (0.1 )
EARNINGS FROM OPERATIONS 17,863 2.8 12,628 2.3 17,863 2.8
12,628 2.3
OTHER EXPENSE, NET 955 0.2
725 0.1 955 0.2 725 0.1
EARNINGS BEFORE INCOME TAXES 16,908 2.7 11,903 2.1
16,908 2.7 11,903 2.1
INCOME TAXES 6,104
1.0 4,235 0.8 6,104 1.0
4,235 0.8
NET EARNINGS 10,804 1.7 7,668 1.4
10,804 1.7 7,668 1.4
LESS NET EARNINGS ATTRIBUTABLE
TO NONCONTROLLING INTEREST (642 ) (0.1 )
(452 ) (0.1 ) (642 ) (0.1 ) (452 ) (0.1 )
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST $
10,162 1.6 $ 7,216 1.3 $ 10,162 1.6 $ 7,216
1.3
EARNINGS PER SHARE - BASIC $ 0.51 $
0.36 $ 0.51 $ 0.36
EARNINGS PER SHARE - DILUTED $
0.51 $ 0.36 $ 0.51 $ 0.36
COMPREHENSIVE INCOME 9,801
6,968 9,801 6,968
LESS COMPREHENSIVE INCOME
ATTRIBUTABLE TO NONCONTROLLING INTEREST (498 )
(354 ) (498 ) (354 )
COMPREHENSIVE
INCOME ATTRIBUTABLE TO CONTROLLING INTEREST $ 9,303
$ 6,614 $ 9,303 $ 6,614
SUPPLEMENTAL
SALES DATA
Quarter Period Year to Date
Market
Classification
2015 2014
%
2015 2014
%
Retail $ 229,885 $ 200,984 14 % $ 229,885 $ 200,984 14 %
Industrial 211,162 171,651 23 % 211,162 171,651 23 %
Construction 200,722 189,562 6 %
200,722 189,562 6 %
Total Gross
Sales 641,769 562,197 14 % 641,769 562,197 14 %
Sales
Allowances (8,744 ) (8,199 ) (8,744 )
(8,199 )
Total Net Sales $ 633,025 $ 553,998
$ 633,025 $ 553,998
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) MARCH
2015/2014
(In
thousands)
ASSETS 2015 2014
LIABILITIES AND EQUITY 2015 2014
CURRENT ASSETS CURRENT LIABILITIES Cash
and cash equivalents $ 22,888 $ - Cash Overdraft $ 21,585 $ 12,151
Restricted cash 710 720 Accounts payable 114,225 91,015 Accounts
receivable 260,926 242,433 Accrued liabilities 79,347
57,054 Inventories 404,711 312,010 Other current assets
19,984 27,189
TOTAL CURRENT ASSETS 709,219
582,352
TOTAL CURRENT LIABILITIES 215,157 160,220
OTHER ASSETS 9,674 13,064
LONG-TERM DEBT AND
INTANGIBLE ASSETS, NET 193,113 169,949
CAPITAL LEASE
OBLIGATIONS 187,020 143,471
PROPERTY, PLANT OTHER
LIABILITIES 50,309 42,671
AND EQUIPMENT, NET
255,462 241,419
EQUITY 714,982 660,422
TOTAL ASSETS $ 1,167,468 $ 1,006,784
TOTAL
LIABILITIES AND EQUITY $ 1,167,468 $ 1,006,784
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED) FOR THE THREE MONTHS ENDED MARCH
2015/2014 (In thousands) 2015
2014 CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 10,804 $ 7,668 Adjustments to
reconcile net earnings attributable to controlling interest to net
cash from operating activities: Depreciation 8,996 7,691
Amortization of intangibles 983 586 Expense associated with
share-based compensation arrangements 378 495 Expense associated
with stock grant plans 27 29 Deferred income taxes (credit) (193 )
(150 ) Equity in earnings of investee (83 ) (51 ) Net (gain) or
loss on sale of property, plant and equipment 14 (602 ) Changes in:
Accounts receivable (63,148 ) (61,825 ) Inventories (64,422 )
(23,980 ) Accounts payable and cash overdraft 45,219 29,222 Accrued
liabilities and other 10,880 (2,743 )
NET
CASH FROM OPERATING ACTIVITIES (50,545 ) (43,660 )
CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property,
plant, and equipment (15,102 ) (8,994 ) Proceeds from sale of
property, plant and equipment 50 785 Acquisitions, net of cash
received (2,740 ) (4,191 ) Advances of notes receivable (1,273 )
(2,462 ) Collections of notes receivable and related interest 5,790
473 Cash restricted as to use (150 ) - Other, net (16 )
(36 )
NET CASH FROM INVESTING ACTIVITIES (13,441 )
(14,425 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities 140,303 106,318
Repayments under revolving credit facilities (52,718 ) (47,547 )
Debt issuance costs (9 ) - Proceeds from issuance of common stock
469 99 Distributions to noncontrolling interest (939 ) (701 )
Repurchase of common stock (78 ) - Other, net -
(8 )
NET CASH FROM FINANCING ACTIVITIES 87,028 58,161
Effect of exchange rate changes on cash (154 )
(76 )
NET CHANGE IN CASH AND CASH EQUIVALENTS 22,888 -
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
- -
CASH AND CASH EQUIVALENTS, END
OF PERIOD $ 22,888 $ -
SUPPLEMENTAL
INFORMATION: Interest paid $ 374 $ 281 Income taxes paid
(9,709 ) 1,681
Universal Forest Products, Inc.Lynn AfendoulisDirector,
Corporate Communications(616) 365-1502
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