UFPI posts record first-quarter earnings and sales
April 18 2017 - 4:05PM
Universal Forest Products, Inc. (Nasdaq:UFPI) today reported
financial results for the first quarter ended April 1, 2017.
“The employees of Universal delivered record first-quarter sales
and profits, underscoring the success of our balanced business
model and targeted approach to growing our business,” said CEO
Matthew J. Missad. “Those records are even more impressive if you
consider we did not have the same purchasing and weather advantages
we enjoyed during the first quarter of 2016.”
The Company’s retail and construction markets had net sales
increases of 15 and 21 percent, respectively. The industrial market
grew 37 percent, largely because of the September 2016 acquisition
of idX Corp.
“While we are pleased with these results, we see opportunities
to do much more. We’re focused on a number of opportunities to grow
sales and create efficiencies among our recent acquisitions that we
expect will benefit us in 2017 and beyond.”
First Quarter 2017 Highlights (comparisons on a
year-over-year basis):
- Net earnings attributable to controlling interest were $21.1
million, up 10 percent
- Diluted earnings per share were $1.03, up from $0.95
- Net sales of $846.1 million represent a 24 percent increase
over net sales of $682.2 million
- Unit sales contributed to 17 percent of gross sales growth;
higher lumber prices contributed 6 percent
- New product sales were $74.6 million, up from $64.7
million
The Company’s earnings growth fell short of its unit sales
growth in the first quarter of 2017 due to a number of common
business factors that impacted several operations. They include the
loss in 2017 of inventory cost advantages that the Company realized
the previous year in the industrial market, inclement weather in
many areas of the country and the cost of start-up operations.
By market, the Company posted the following first quarter
2017 gross sales results:
Retail
$311.8 million, up 15 percent over the same period of 2016
Sales to the retail market grew 15 percent due to a 6 percent
increase in selling prices and a 9 percent increase in unit sales,
led by a 19 percent increase in sales to big box customers. Net of
acquisitions, unit sales grew 2 percent.
Construction
$267.8 million, up 21 percent over the same period of 2016
Unit sales to the construction market rose 13 percent in the
first quarter, led by gains of 16 percent to residential
construction customers and 14 percent to manufactured housing
customers. The Company remains focused on growing business
selectively in areas where housing markets are the most stable.
Industrial
$277.2 million, up 37 percent over the same period of 2016
The Company’s growth in this market is primarily due to its
acquisition of idX Corp., which closed in September of 2016.
Excluding acquisitions, the Company grew unit sales in this market
by 4 percent in the first quarter over the first quarter of 2016.
The growth was generated both by adding new customers and by
increasing the number of affiliates that serve large customers.
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, April 19, 2017. 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 83487335. 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 19, 2017, at any of the
following numbers: (855) 859-2056, (404) 537-3406 or (800)
585-5367.
UNIVERSAL FOREST PRODUCTS,
INC.
Universal Forest Products, Inc. is a holding company whose
subsidiaries supply wood, wood composite and other products to
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 THREE MONTHS ENDED |
MARCH 2017/2016 |
|
|
Quarter Period |
|
|
|
Year to Date |
|
|
(In thousands, except per share data) |
|
|
2017 |
|
|
|
|
|
2016 |
|
|
|
|
|
2017 |
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
$ |
846,130 |
|
|
100 |
% |
|
$ |
682,151 |
|
|
100 |
% |
|
$ |
846,130 |
|
|
100 |
% |
|
$ |
682,151 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD |
|
|
725,390 |
|
|
85.7 |
|
|
|
579,412 |
|
|
84.9 |
|
|
|
725,390 |
|
|
85.7 |
|
|
|
579,412 |
|
|
84.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
120,740 |
|
|
14.3 |
|
|
|
102,739 |
|
|
15.1 |
|
|
|
120,740 |
|
|
14.3 |
|
|
|
102,739 |
|
|
15.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING,
GENERAL
AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE
EXPENSES |
|
|
86,919 |
|
|
10.3 |
|
|
|
70,828 |
|
|
10.4 |
|
|
|
86,919 |
|
|
10.3 |
|
|
|
70,828 |
|
|
10.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM OPERATIONS |
|
|
33,821 |
|
|
4.0 |
|
|
|
31,911 |
|
|
4.7 |
|
|
|
33,821 |
|
|
4.0 |
|
|
|
31,911 |
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSE, NET |
|
|
1,417 |
|
|
0.2 |
|
|
|
891 |
|
|
0.1 |
|
|
|
1,417 |
|
|
0.2 |
|
|
|
891 |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE INCOME TAXES |
|
|
32,404 |
|
|
3.8 |
|
|
|
31,020 |
|
|
4.5 |
|
|
|
32,404 |
|
|
3.8 |
|
|
|
31,020 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES |
|
|
10,770 |
|
|
1.3 |
|
|
|
10,765 |
|
|
1.6 |
|
|
|
10,770 |
|
|
1.3 |
|
|
|
10,765 |
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
|
21,634 |
|
|
2.6 |
|
|
|
20,255 |
|
|
3.0 |
|
|
|
21,634 |
|
|
2.6 |
|
|
|
20,255 |
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTEREST |
|
|
(572 |
) |
|
(0.1 |
) |
|
|
(1,043 |
) |
|
(0.2 |
) |
|
|
(572 |
) |
|
(0.1 |
) |
|
|
(1,043 |
) |
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTROLLING INTEREST |
|
$ |
21,062 |
|
|
2.5 |
|
|
$ |
19,212 |
|
|
2.8 |
|
|
$ |
21,062 |
|
|
2.5 |
|
|
$ |
19,212 |
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE -
BASIC |
|
$ |
1.03 |
|
|
|
|
$ |
0.95 |
|
|
|
|
$ |
1.03 |
|
|
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - DILUTED |
|
$ |
1.03 |
|
|
|
|
$ |
0.95 |
|
|
|
|
$ |
1.03 |
|
|
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME |
|
|
24,669 |
|
|
|
|
|
20,697 |
|
|
|
|
|
24,669 |
|
|
|
|
|
20,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS COMPREHENSIVE INCOME ATTRIBUTABLE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO NONCONTROLLING
INTEREST |
|
|
(1,427 |
) |
|
|
|
|
(846 |
) |
|
|
|
|
(1,427 |
) |
|
|
|
|
(846 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO CONTROLLING
INTEREST |
|
$ |
23,242 |
|
|
|
|
$ |
19,851 |
|
|
|
|
$ |
23,242 |
|
|
|
|
$ |
19,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SALES DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Period |
|
Year to Date |
Market Classification |
|
|
2017 |
|
|
|
|
|
2016 |
|
|
% |
|
|
2017 |
|
|
|
|
|
2016 |
|
|
% |
Retail |
|
$ |
311,750 |
|
|
|
|
$ |
271,258 |
|
|
15 |
% |
|
$ |
311,750 |
|
|
|
|
$ |
271,258 |
|
|
15 |
% |
Industrial |
|
|
277,242 |
|
|
|
|
|
201,649 |
|
|
37 |
% |
|
|
277,242 |
|
|
|
|
|
201,649 |
|
|
37 |
% |
Construction |
|
|
267,817 |
|
|
|
|
|
220,957 |
|
|
21 |
% |
|
|
267,817 |
|
|
|
|
|
220,957 |
|
|
21 |
% |
Total Gross Sales |
|
|
856,809 |
|
|
|
|
|
693,864 |
|
|
23 |
% |
|
|
856,809 |
|
|
|
|
|
693,864 |
|
|
23 |
% |
Sales Allowances |
|
|
(10,679 |
) |
|
|
|
|
(11,713 |
) |
|
9 |
% |
|
|
(10,679 |
) |
|
|
|
|
(11,713 |
) |
|
9 |
% |
Total Net Sales |
|
$ |
846,130 |
|
|
|
|
$ |
682,151 |
|
|
24 |
% |
|
$ |
846,130 |
|
|
|
|
$ |
682,151 |
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED) |
MARCH 2017/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
2017 |
|
|
2016 |
|
LIABILITIES AND EQUITY |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
31,020 |
|
$ |
43,065 |
|
|
Cash
overdraft |
|
$ |
21,566 |
|
$ |
- |
|
Restricted cash & cash equivalents |
|
|
4,709 |
|
|
1,139 |
|
|
Accounts payable |
|
|
156,030 |
|
|
116,525 |
|
Investments |
|
|
5,928 |
|
|
6,737 |
|
|
Accrued liabilities |
|
|
97,965 |
|
|
97,910 |
|
Accounts
receivable |
|
|
365,620 |
|
|
287,374 |
|
|
Current portion of debt |
|
|
2,280 |
|
|
886 |
|
Inventories |
|
|
472,016 |
|
|
327,177 |
|
|
|
|
|
|
|
|
|
Other
current assets |
|
|
23,820 |
|
|
16,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
903,113 |
|
|
682,381 |
|
TOTAL CURRENT LIABILITIES |
|
|
277,841 |
|
|
215,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
14,533 |
|
|
10,424 |
|
LONG-TERM DEBT AND |
|
|
|
|
INTANGIBLE ASSETS, NET |
|
|
250,160 |
|
|
198,338 |
|
|
CAPITAL LEASE OBLIGATIONS |
|
|
252,904 |
|
|
84,525 |
PROPERTY, PLANT |
|
|
|
|
|
OTHER LIABILITIES |
|
|
49,561 |
|
|
51,003 |
|
AND EQUIPMENT,
NET |
|
|
309,853 |
|
|
254,634 |
|
EQUITY |
|
|
897,353 |
|
|
794,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,477,659 |
|
$ |
1,145,777 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
1,477,659 |
|
$ |
1,145,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS (UNAUDITED) |
FOR THE THREE MONTHS ENDED |
MARCH 2017/2016 |
(In thousands) |
|
|
|
2017 |
|
|
|
|
2016 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
Net earnings |
|
|
$ |
21,634 |
|
|
|
$ |
20,255 |
|
Adjustments to reconcile net earnings to net cash from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
11,392 |
|
|
|
|
9,492 |
|
Amortization of intangibles |
|
|
|
1,119 |
|
|
|
|
693 |
|
Expense associated with share-based compensation
arrangements |
|
|
571 |
|
|
|
|
432 |
|
Expense associated with stock grant plans |
|
|
|
46 |
|
|
|
|
37 |
|
Deferred income taxes (credit) |
|
|
|
224 |
|
|
|
|
(156 |
) |
Equity in earnings of investee |
|
|
|
(5 |
) |
|
|
|
(81 |
) |
Net gain on disposition and impairment of assets |
|
|
(64 |
) |
|
|
|
(10 |
) |
Changes in: |
|
|
|
|
|
|
Accounts receivable |
|
|
|
(67,766 |
) |
|
|
|
(64,276 |
) |
Inventories |
|
|
|
(60,984 |
) |
|
|
|
(22,159 |
) |
Accounts payable and cash overdraft |
|
|
|
32,769 |
|
|
|
|
21,498 |
|
Accrued liabilities and other |
|
|
|
(9,676 |
) |
|
|
|
4,318 |
|
NET CASH FROM OPERATING
ACTIVITIES |
|
|
(70,740 |
) |
|
|
|
(29,957 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
Purchases of property, plant, and equipment |
|
|
|
(16,531 |
) |
|
|
|
(12,941 |
) |
Proceeds from sale of property, plant and
equipment |
|
|
353 |
|
|
|
|
132 |
|
Acquisitions and purchase of noncontrolling interest,
net of cash received |
|
|
(55,441 |
) |
|
|
|
- |
|
Cash contributed from noncontrolling interest |
|
|
|
464 |
|
|
|
|
- |
|
Advances of notes receivable |
|
|
|
(228 |
) |
|
|
|
(1,259 |
) |
Collections of notes receivable and related
interest |
|
|
721 |
|
|
|
|
1,408 |
|
Purchases of investments |
|
|
|
(819 |
) |
|
|
|
- |
|
Proceeds from sale of investments |
|
|
|
1,204 |
|
|
|
|
- |
|
Other |
|
|
|
(322 |
) |
|
|
|
(173 |
) |
NET CASH USED IN INVESTING
ACTIVITIES |
|
|
(70,599 |
) |
|
|
|
(12,833 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
Borrowings under revolving credit facilities |
|
|
|
281,090 |
|
|
|
|
1,235 |
|
Repayments under revolving credit facilities |
|
|
|
(137,767 |
) |
|
|
|
(1,495 |
) |
Proceeds from issuance of common stock |
|
|
|
146 |
|
|
|
|
130 |
|
Distributions to noncontrolling interest |
|
|
|
(1,673 |
) |
|
|
|
(1,170 |
) |
Repurchase of common stock |
|
|
|
(83 |
) |
|
|
|
- |
|
Other |
|
|
|
(16 |
) |
|
|
|
(5 |
) |
NET CASH FROM (USED IN) FINANCING
ACTIVITIES |
|
|
141,697 |
|
|
|
|
(1,305 |
) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
|
882 |
|
|
|
|
(43 |
) |
NET CHANGE IN CASH AND CASH
EQUIVALENTS |
|
|
1,240 |
|
|
|
|
(44,138 |
) |
|
|
|
|
|
|
|
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD |
|
|
34,489 |
|
|
|
|
88,342 |
|
|
|
|
|
|
|
|
ALL CASH AND CASH EQUIVALENTS, END OF
PERIOD |
|
$ |
35,729 |
|
|
|
$ |
44,204 |
|
|
|
|
|
|
|
|
Reconciliation of cash and cash equivalents and
restricted cash: |
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
|
$ |
34,091 |
|
|
|
$ |
87,756 |
|
Restricted cash, beginning of period |
|
|
|
398 |
|
|
|
|
586 |
|
All cash and cash equivalents, beginning of period |
|
$ |
34,489 |
|
|
|
$ |
88,342 |
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
|
$ |
31,020 |
|
|
|
$ |
43,065 |
|
Restricted cash, end of period |
|
|
|
4,709 |
|
|
|
|
1,139 |
|
All cash and cash equivalents, end of period |
|
|
$ |
35,729 |
|
|
|
$ |
44,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502
UFP Industries (NASDAQ:UFPI)
Historical Stock Chart
From Mar 2024 to Apr 2024
UFP Industries (NASDAQ:UFPI)
Historical Stock Chart
From Apr 2023 to Apr 2024