UFPI Reports Q3 Record Results: Net Earnings of $27.8 Million; Net Sales of $826.7 Million
October 18 2016 - 5:24PM
Universal Forest Products, Inc. (Nasdaq:UFPI) today announced
recording-breaking 2016 third-quarter results, including net
earnings attributable to controlling interests of $27.8 million, an
increase of 8.9 percent over the same period of 2015. Year-to-date
net earnings attributable to controlling interests were $80.4
million, up 30 percent over 2015. Earnings per diluted share were
$1.36 in the third quarter of 2016, up from $1.26 in the third
quarter of 2015. Net sales of $826.7 million – also a record for
the third quarter – were up 8.4 percent over the same period of
2015.
“The employees of Universal are working hard to top the records
they achieved during the last half of 2015, and we are pleased once
again to report record results and growth,” said CEO Matthew J.
Missad. “We grew sales significantly in two key markets and
continue to increase our sales of new products.” Year-to-date new
product sales were $247.9 million, a 16 percent increase over the
$213.3 million reported for the same period of last year.
“We are continuing to make investments in our business and
people to promote and enhance our continued success,” Missad noted.
“We have added staff and are investing in their training to support
our growth. We also are investing in several significant
initiatives, including new international and e-commerce groups, and
a research and design center, all of which we believe will
contribute to our success in 2017 and beyond.”
Missad added that the Company continues to look for strategic
acquisitions. Its purchase of idX Corp. closed near the end of the
third quarter. idX is an international provider of highly
customized merchandising solutions. Based in St. Louis, Mo., it has
a network of more than 20 facilities across North America, Europe
and Asia. Its sales in 2015 were approximately $303 million.
By market, the Company posted the following net sales
results:
Retail: $339.7 million, up 15 percent over the
third quarter of 2015
The Company benefited from a 9 percent increase in unit sales as
well as rising lumber prices. Year-to-date retail unit sales are up
10 percent. During the third quarter, sales to big-box
retailers increased 20 percent and sales to other retailers
increased 8 percent, in part because of market-share gains and
increasing sales of new products. Our retail customers have
benefited from improving U.S. consumer demand, as evidenced by the
healthy gains in same-store sales they reported in their most
recent quarters.
Construction: $265.6 million, up 10 percent
over the same period of 2015
Overall, unit sales in the construction market were up 6 percent
over the same period of 2015, led by strong unit sales gains of 9
percent in residential construction. According to the U.S. Census
Bureau, housing starts increased approximately 2.4 percent from
June through August 2016 compared to the same period of 2015. The
Company continues to focus its residential construction efforts in
geographic areas of anticipated stable growth and recently added
capacity in these markets.
Industrial: $233.8 million, down 1 percent from
the third quarter of 2015
The Company has maintained its share of the industrial market
but experienced a modest decrease in sales because of the softening
U.S. economy, a decrease in U.S. exports, and its efforts to be
more selective by focusing on higher-margin, value-added
business.
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 Wednesday, October 19, 2016. 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 (888) 685-5759 and internationally at (503)
343-6031. Use conference ID 68009457. 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 November 19, 2016,
at any of the following numbers: (855) 859-2056 or (404) 537-3406
or (800) 585-8367.
UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that
provides capital, management and administrative resources to
subsidiaries in three robust markets: retail, construction and
industrial. Founded in 1955, the Company is headquartered in Grand
Rapids, Mich., with affiliates throughout North America, Europe,
Asia and Australia. For more about Universal Forest Products, 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 NINE MONTHS ENDED |
|
SEPTEMBER 2016/2015 |
|
|
|
Quarter Period |
|
|
|
Year to Date |
|
|
|
(In thousands, except per share data) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
$ |
826,665 |
|
|
|
100 |
% |
|
$ |
762,275 |
|
|
|
100 |
% |
|
$ |
2,380,909 |
|
|
|
100 |
% |
|
$ |
2,233,470 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD |
|
|
708,611 |
|
|
|
85.7 |
|
|
|
651,569 |
|
|
|
85.5 |
|
|
|
2,028,629 |
|
|
|
85.2 |
|
|
|
1,930,739 |
|
|
|
86.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
118,054 |
|
|
|
14.3 |
|
|
|
110,706 |
|
|
|
14.5 |
|
|
|
352,280 |
|
|
|
14.8 |
|
|
|
302,731 |
|
|
|
13.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING,
GENERAL
AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE
EXPENSES |
|
|
74,457 |
|
|
|
9.0 |
|
|
|
67,951 |
|
|
|
8.9 |
|
|
|
223,059 |
|
|
|
9.4 |
|
|
|
198,087 |
|
|
|
8.9 |
|
|
NET (GAIN) LOSS ON DISPOSITION AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPAIRMENT OF ASSETS |
|
|
45 |
|
|
|
- |
|
|
|
230 |
|
|
|
- |
|
|
|
94 |
|
|
|
- |
|
|
|
68 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM OPERATIONS |
|
|
43,552 |
|
|
|
5.3 |
|
|
|
42,525 |
|
|
|
5.6 |
|
|
|
129,127 |
|
|
|
5.4 |
|
|
|
104,576 |
|
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSE, NET |
|
|
927 |
|
|
|
0.1 |
|
|
|
924 |
|
|
|
0.1 |
|
|
|
2,602 |
|
|
|
0.1 |
|
|
|
3,118 |
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE INCOME TAXES |
|
|
42,625 |
|
|
|
5.2 |
|
|
|
41,601 |
|
|
|
5.5 |
|
|
|
126,525 |
|
|
|
5.3 |
|
|
|
101,458 |
|
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES |
|
|
13,861 |
|
|
|
1.7 |
|
|
|
14,718 |
|
|
|
1.9 |
|
|
|
43,268 |
|
|
|
1.8 |
|
|
|
36,887 |
|
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
|
28,764 |
|
|
|
3.5 |
|
|
|
26,883 |
|
|
|
3.5 |
|
|
|
83,257 |
|
|
|
3.5 |
|
|
|
64,571 |
|
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTEREST |
|
|
(945 |
) |
|
|
(0.1 |
) |
|
|
(1,327 |
) |
|
|
(0.2 |
) |
|
|
(2,828 |
) |
|
|
(0.1 |
) |
|
|
(2,876 |
) |
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTROLLING INTEREST |
|
$ |
27,819 |
|
|
|
3.4 |
|
|
$ |
25,556 |
|
|
|
3.4 |
|
|
$ |
80,429 |
|
|
|
3.4 |
|
|
$ |
61,695 |
|
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE -
BASIC |
|
$ |
1.36 |
|
|
|
|
$ |
1.26 |
|
|
|
|
$ |
3.95 |
|
|
|
|
$ |
3.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - DILUTED |
|
$ |
1.36 |
|
|
|
|
$ |
1.26 |
|
|
|
|
$ |
3.94 |
|
|
|
|
$ |
3.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME |
|
|
27,608 |
|
|
|
|
|
24,305 |
|
|
|
|
|
81,736 |
|
|
|
|
|
60,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS COMPREHENSIVE INCOME ATTRIBUTABLE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO NONCONTROLLING
INTEREST |
|
|
(495 |
) |
|
|
|
|
(445 |
) |
|
|
|
|
(1,576 |
) |
|
|
|
|
(1,578 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO CONTROLLING
INTEREST |
|
$ |
27,113 |
|
|
|
|
$ |
23,860 |
|
|
|
|
$ |
80,160 |
|
|
|
|
$ |
58,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SALES DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Period |
|
Year to Date |
|
Market Classification |
|
2016 |
|
|
|
2015 |
|
% |
|
2016 |
|
|
|
2015 |
|
% |
|
Retail |
|
$ |
339,744 |
|
|
|
|
$ |
296,022 |
|
|
|
15 |
% |
|
$ |
1,017,225 |
|
|
|
|
$ |
905,826 |
|
|
|
12 |
% |
|
Industrial |
|
|
233,757 |
|
|
|
|
|
235,376 |
|
|
|
-1 |
% |
|
|
669,389 |
|
|
|
|
|
683,763 |
|
|
|
-2 |
% |
|
Construction |
|
|
265,563 |
|
|
|
|
|
241,810 |
|
|
|
10 |
% |
|
|
733,700 |
|
|
|
|
|
676,228 |
|
|
|
8 |
% |
|
Total Gross Sales |
|
|
839,064 |
|
|
|
|
|
773,208 |
|
|
|
9 |
% |
|
|
2,420,314 |
|
|
|
|
|
2,265,817 |
|
|
|
7 |
% |
|
Sales Allowances |
|
|
(12,399 |
) |
|
|
|
|
(10,933 |
) |
|
|
|
|
(39,405 |
) |
|
|
|
|
(32,347 |
) |
|
|
|
Total Net Sales |
|
$ |
826,665 |
|
|
|
|
$ |
762,275 |
|
|
|
|
$ |
2,380,909 |
|
|
|
|
$ |
2,233,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED) |
|
SEPTEMBER 2016/2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
2016 |
|
2015 |
|
LIABILITIES AND EQUITY |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
36,683 |
|
|
$ |
55,373 |
|
|
|
Cash
overdraft |
|
$ |
13,940 |
|
|
$ |
- |
|
|
|
Restricted cash |
|
|
909 |
|
|
|
1,139 |
|
|
|
Accounts payable |
|
|
137,979 |
|
|
|
101,117 |
|
|
|
Investments |
|
|
10,453 |
|
|
|
5,955 |
|
|
|
Accrued liabilities |
|
|
156,653 |
|
|
|
112,350 |
|
|
|
Accounts receivable |
|
|
343,771 |
|
|
|
273,737 |
|
|
|
Current portion of debt |
|
|
1,584 |
|
|
|
834 |
|
|
|
Inventories |
|
|
369,928 |
|
|
|
288,209 |
|
|
|
|
|
|
|
|
|
|
|
Other current assets |
|
|
29,043 |
|
|
|
23,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
790,787 |
|
|
|
647,525 |
|
|
TOTAL CURRENT LIABILITIES |
|
|
310,156 |
|
|
|
214,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
11,173 |
|
|
|
8,934 |
|
|
LONG-TERM DEBT AND |
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
|
224,186 |
|
|
|
200,929 |
|
|
|
CAPITAL LEASE OBLIGATIONS |
|
|
110,362 |
|
|
|
84,722 |
|
|
PROPERTY, PLANT |
|
|
|
|
|
OTHER LIABILITIES |
|
|
43,029 |
|
|
|
56,757 |
|
|
|
AND EQUIPMENT,
NET |
|
|
284,491 |
|
|
|
254,530 |
|
|
EQUITY |
|
|
847,090 |
|
|
|
756,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,310,637 |
|
|
$ |
1,111,918 |
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
1,310,637 |
|
|
$ |
1,111,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED) |
|
FOR THE NINE MONTHS ENDED |
|
SEPTEMBER 2016/2015 |
|
(In thousands) |
|
2016 |
|
2015 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
Net earnings |
|
$ |
83,257 |
|
|
$ |
64,571 |
|
|
Adjustments to reconcile net earnings to net cash from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
29,014 |
|
|
|
28,013 |
|
|
Amortization
of intangibles |
|
|
1,868 |
|
|
|
2,730 |
|
|
Expense associated with share-based compensation arrangements |
|
|
1,568 |
|
|
|
1,351 |
|
|
Excess tax benefits from share-based compensation arrangements |
|
|
- |
|
|
|
(33 |
) |
|
Expense associated with stock grant plans |
|
|
105 |
|
|
|
85 |
|
|
Deferred income tax |
|
|
(53 |
) |
|
|
(269 |
) |
|
Equity in earnings of investee |
|
|
(241 |
) |
|
|
(283 |
) |
|
Net loss on disposition and impairment of assets |
|
|
94 |
|
|
|
68 |
|
|
Changes in: |
|
|
|
|
|
Accounts receivable |
|
|
(69,357 |
) |
|
|
(76,723 |
) |
|
Inventories |
|
|
21,683 |
|
|
|
51,068 |
|
|
Accounts payable and cash overdraft |
|
|
35,026 |
|
|
|
10,864 |
|
|
Accrued liabilities and other |
|
|
33,413 |
|
|
|
39,967 |
|
|
NET CASH FROM OPERATING
ACTIVITIES |
|
|
136,377 |
|
|
|
121,409 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
Purchases of property, plant, and equipment |
|
|
(35,723 |
) |
|
|
(36,520 |
) |
|
Proceeds from sale of property, plant and equipment |
|
|
516 |
|
|
|
2,382 |
|
|
Acquisitions, net of cash received |
|
|
(66,615 |
) |
|
|
(2,584 |
) |
|
Repayments of debt of acquiree |
|
|
(92,830 |
) |
|
|
- |
|
|
Purchases of noncontrolling interest |
|
|
(1,100 |
) |
|
|
(1,256 |
) |
|
Advances of notes receivable |
|
|
(5,400 |
) |
|
|
(4,403 |
) |
|
Collections of notes receivable and related interest |
|
|
5,819 |
|
|
|
8,784 |
|
|
Purchases of investments |
|
|
(4,468 |
) |
|
|
(5,955 |
) |
|
Proceeds from sale of investments |
|
|
1,395 |
|
|
|
- |
|
|
Cash restricted as to use |
|
|
(323 |
) |
|
|
(734 |
) |
|
Other, net |
|
|
(1,733 |
) |
|
|
180 |
|
|
NET CASH USED IN INVESTING
ACTIVITIES |
|
|
(200,462 |
) |
|
|
(40,106 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
Borrowings under revolving credit facilities |
|
|
52,479 |
|
|
|
297,354 |
|
|
Repayments under revolving credit facilities |
|
|
(27,177 |
) |
|
|
(311,253 |
) |
|
Proceeds from issuance of common stock |
|
|
396 |
|
|
|
960 |
|
|
Distributions to noncontrolling interest |
|
|
(3,160 |
) |
|
|
(3,159 |
) |
|
Dividends paid to shareholders |
|
|
(8,529 |
) |
|
|
(8,050 |
) |
|
Repurchase of common stock |
|
|
- |
|
|
|
(800 |
) |
|
Other, net |
|
|
(28 |
) |
|
|
22 |
|
|
NET CASH FROM (USED IN) FINANCING ACTIVITIES |
|
|
13,981 |
|
|
|
(24,926 |
) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(969 |
) |
|
|
(1,004 |
) |
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
(51,073 |
) |
|
|
55,373 |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD |
|
|
87,756 |
|
|
|
- |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
36,683 |
|
|
$ |
55,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AT THE COMPANY
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502
UFP Industries (NASDAQ:UFPI)
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From Mar 2024 to Apr 2024
UFP Industries (NASDAQ:UFPI)
Historical Stock Chart
From Apr 2023 to Apr 2024