UFP Reports Record Fourth Quarter and Annual Results
February 22 2017 - 3:06PM
Universal Forest Products, Inc. (Nasdaq:UFPI) today announced
record results in 2016, including record fourth-quarter net
earnings attributable to controlling interest of $20.8 million, or
$1.02 per diluted share, 9.8 percent higher than the fourth quarter
of 2015. The Company also posted record annual net earnings
attributable to controlling interest of $101.2 million, or $4.96
per diluted share, representing a 25.5 percent increase over 2015
annual net earnings attributable to controlling interest of $80.6
million, or $3.99 per diluted share. Fourth-quarter 2016 net sales
of $859.6 million were up 31.5 percent over net sales for the same
period of 2015. Annual net sales of $3.24 billion surpassed 2015
annual net sales of $2.89 billion by 12.2 percent and is a new
record for the Company. Although acquisitions contributed to the
records, most of the Company’s annual growth came from existing
operations.
“The people who work for the companies of Universal are the best
in the business, and they continue to prove it with record-breaking
results,” said CEO Matthew J. Missad. “They continuously look for
ways to create efficiencies, reduce manufacturing costs and grow
sales by building and deepening customer relationships. They also
have been bringing a number of exciting new, value-added products
to the market. I couldn’t be more proud of them.”
New product sales grew 28.9 percent to $354.3 million in 2016,
compared to $274.9 million in 2015.
Higher lumber prices contributed about 4 percent and 1 percent
to the Company’s fourth-quarter and annual sales growth,
respectively.
“Our results reflect the dedication of our employees and trust
of our shareholders, and I want to thank them for their commitment
to the Company,” added Missad. “We intend to continue to build on
their trust with wise investments that will continue to grow our
business in the future.”
By market, the Company posted the following 2016 gross sales
results:
Retail
- Fourth quarter: $275.7 million, up 19.4 percent over
the fourth quarter of 2015
- Year: $1.3 billion, up 13.7 percent over the previous
year
The Company benefited from an 11 percent increase in
fourth-quarter unit sales to the Retail market, led by a 25 percent
increase in sales to big box customers. The increase in total unit
sales is attributable to market share gains, new products and
improved consumer demand. The Company continues to add new
products, develop relationships with new customers, and increase
share with existing customers. Construction
- Fourth quarter: $275.6 million, up 24.7 percent over
the fourth quarter of 2015
- Year: $1 billion, up 12.5 percent over the previous
year
Overall, unit sales to the Construction market rose almost 20
percent in the fourth quarter, led by a strong gain of 30 percent
to residential construction customers. According to the U.S. Census
Bureau, housing starts during the period of September through
November 2016 rose less than 1 percent over the same period last
year. The Company remains focused on growing business selectively
in areas where housing markets are the most stable.
Industrial
- Fourth quarter: $318.6 million, up 52.2 percent over
the fourth quarter of 2015
- Year: $988.0 million, up 10.6 percent over the previous
year
The Company’s growth in this market is primarily due to its
acquisition of idX Corporation, which closed in September of 2016.
Excluding acquisitions, the Company grew unit sales in this market
by 11 percent in the fourth quarter by adding new customers and
increasing share with existing customers. The Company plans to
continue its efforts to focus on value-added products.
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 Thursday, February 23, 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 pass code 40666839. 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 March 23, 2017, at
855-859-2056, 404-537-3406 or 800-585-5367.
UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that
provides capital, management and administrative resources to
subsidiaries that 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 TWELVE MONTHS ENDED |
|
DECEMBER 2016/2015 |
|
|
|
Quarter Period |
|
|
|
Year to Date |
|
|
|
(In thousands, except per share data) |
|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
$ |
859,584 |
|
|
100 |
% |
|
$ |
653,600 |
|
|
100 |
% |
|
$ |
3,240,493 |
|
|
100 |
% |
|
$ |
2,887,071 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD |
|
|
737,274 |
|
|
85.8 |
|
|
|
556,427 |
|
|
85.1 |
|
|
|
2,765,903 |
|
|
85.4 |
|
|
|
2,487,167 |
|
|
86.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
122,310 |
|
|
14.2 |
|
|
|
97,173 |
|
|
14.9 |
|
|
|
474,590 |
|
|
14.6 |
|
|
|
399,904 |
|
|
13.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING,
GENERAL
AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE
EXPENSES |
|
|
87,000 |
|
|
10.1 |
|
|
|
66,282 |
|
|
10.1 |
|
|
|
310,152 |
|
|
9.6 |
|
|
|
264,437 |
|
|
9.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM OPERATIONS |
|
|
35,310 |
|
|
4.1 |
|
|
|
30,891 |
|
|
4.7 |
|
|
|
164,438 |
|
|
5.1 |
|
|
|
135,467 |
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSE, NET |
|
|
1,164 |
|
|
0.1 |
|
|
|
1,348 |
|
|
0.2 |
|
|
|
3,767 |
|
|
0.1 |
|
|
|
4,465 |
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE INCOME TAXES |
|
|
34,146 |
|
|
4.0 |
|
|
|
29,543 |
|
|
4.5 |
|
|
|
160,671 |
|
|
5.0 |
|
|
|
131,002 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES |
|
|
11,905 |
|
|
1.4 |
|
|
|
8,982 |
|
|
1.4 |
|
|
|
55,174 |
|
|
1.7 |
|
|
|
45,870 |
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
|
22,241 |
|
|
2.6 |
|
|
|
20,561 |
|
|
3.1 |
|
|
|
105,497 |
|
|
3.3 |
|
|
|
85,132 |
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTEREST |
|
|
(1,491 |
) |
|
(0.2 |
) |
|
|
(1,660 |
) |
|
(0.3 |
) |
|
|
(4,318 |
) |
|
(0.1 |
) |
|
|
(4,537 |
) |
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTROLLING INTEREST |
|
$ |
20,750 |
|
|
2.4 |
|
|
$ |
18,901 |
|
|
2.9 |
|
|
$ |
101,179 |
|
|
3.1 |
|
|
$ |
80,595 |
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE -
BASIC |
|
$ |
1.02 |
|
|
|
|
$ |
0.94 |
|
|
|
|
$ |
4.97 |
|
|
|
|
$ |
3.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - DILUTED |
|
$ |
1.02 |
|
|
|
|
$ |
0.93 |
|
|
|
|
$ |
4.96 |
|
|
|
|
$ |
3.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME |
|
|
21,058 |
|
|
|
|
|
17,510 |
|
|
|
|
|
102,794 |
|
|
|
|
|
77,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS COMPREHENSIVE INCOME ATTRIBUTABLE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO NONCONTROLLING
INTEREST |
|
|
(1,084 |
) |
|
|
|
|
(5,362 |
) |
|
|
|
|
(2,660 |
) |
|
|
|
|
(3,213 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO CONTROLLING
INTEREST |
|
$ |
19,974 |
|
|
|
|
$ |
12,148 |
|
|
|
|
$ |
100,134 |
|
|
|
|
$ |
74,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SALES DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Period |
|
Year to Date |
|
Market Classification |
|
|
2016 |
|
|
|
|
|
2015 |
|
|
% |
|
|
2016 |
|
|
|
|
|
2015 |
|
|
% |
|
Retail |
|
$ |
275,669 |
|
|
|
|
$ |
230,817 |
|
|
19 |
% |
|
$ |
1,292,892 |
|
|
|
|
$ |
1,136,643 |
|
|
14 |
% |
|
Industrial |
|
|
318,649 |
|
|
|
|
|
209,386 |
|
|
52 |
% |
|
|
988,040 |
|
|
|
|
|
893,149 |
|
|
11 |
% |
|
Construction |
|
|
275,617 |
|
|
|
|
|
221,072 |
|
|
25 |
% |
|
|
1,009,317 |
|
|
|
|
|
897,301 |
|
|
12 |
% |
|
Total Gross Sales |
|
|
869,935 |
|
|
|
|
|
661,275 |
|
|
32 |
% |
|
|
3,290,249 |
|
|
|
|
|
2,927,093 |
|
|
12 |
% |
|
Sales Allowances |
|
|
(10,351 |
) |
|
|
|
|
(7,675 |
) |
|
|
|
|
(49,756 |
) |
|
|
|
|
(40,022 |
) |
|
|
|
Total Net Sales |
|
$ |
859,584 |
|
|
|
|
$ |
653,600 |
|
|
|
|
$ |
3,240,493 |
|
|
|
|
$ |
2,887,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED) |
|
DECEMBER 2016/2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
2016 |
|
|
2015 |
|
LIABILITIES AND EQUITY |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
34,091 |
|
$ |
87,756 |
|
|
Cash
overdraft |
|
$ |
19,761 |
|
$ |
- |
|
|
Restricted cash |
|
|
398 |
|
|
586 |
|
|
Accounts payable |
|
|
124,660 |
|
|
95,041 |
|
|
Investments |
|
|
10,348 |
|
|
6,743 |
|
|
Accrued liabilities |
|
|
124,722 |
|
|
107,989 |
|
|
Accounts receivable |
|
|
282,253 |
|
|
222,964 |
|
|
Current portion of debt |
|
|
2,634 |
|
|
1,145 |
|
|
Inventories |
|
|
397,227 |
|
|
304,918 |
|
|
|
|
|
|
|
|
|
|
Other current assets |
|
|
32,121 |
|
|
25,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
756,438 |
|
|
648,232 |
|
TOTAL CURRENT LIABILITIES |
|
|
271,777 |
|
|
204,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
10,163 |
|
|
9,610 |
|
LONG-TERM DEBT AND |
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
|
227,606 |
|
|
198,687 |
|
|
CAPITAL LEASE OBLIGATIONS |
|
|
109,059 |
|
|
84,750 |
|
PROPERTY, PLANT |
|
|
|
|
|
OTHER LIABILITIES |
|
|
50,756 |
|
|
52,345 |
|
|
AND EQUIPMENT,
NET |
|
|
297,851 |
|
|
251,150 |
|
EQUITY |
|
|
860,466 |
|
|
766,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,292,058 |
|
$ |
1,107,679 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
1,292,058 |
|
$ |
1,107,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS (UNAUDITED) |
|
FOR THE TWELVE MONTHS ENDED |
|
DECEMBER 2016/2015 |
|
(In thousands) |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
Net earnings |
|
|
|
$ |
105,497 |
|
|
$ |
85,132 |
|
|
Adjustments to reconcile net earnings to net cash from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
40,823 |
|
|
|
37,710 |
|
|
Amortization of intangibles |
|
|
|
2,795 |
|
|
|
3,531 |
|
|
Expense associated with share-based compensation
arrangements |
|
|
2,208 |
|
|
|
1,846 |
|
|
Excess tax benefits from share-based
compensation arrangements |
|
|
- |
|
|
|
(33 |
) |
|
Expense associated with stock grant plans |
|
|
|
127 |
|
|
|
109 |
|
|
Deferred income tax (credit) |
|
|
|
2,464 |
|
|
|
(1,369 |
) |
|
Equity in earnings of investee |
|
|
|
(267 |
) |
|
|
(374 |
) |
|
Net loss on disposition and impairment of
assets |
|
|
- |
|
|
|
172 |
|
|
Changes in: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
|
(5,119 |
) |
|
|
(26,007 |
) |
|
Inventories |
|
|
|
|
(3,245 |
) |
|
|
34,139 |
|
|
Accounts payable and cash overdraft |
|
|
|
11,259 |
|
|
|
4,798 |
|
|
Accrued liabilities and other |
|
|
|
15,978 |
|
|
|
29,142 |
|
|
NET CASH FROM OPERATING
ACTIVITIES |
|
|
172,520 |
|
|
|
168,796 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
Purchases of property, plant, and equipment |
|
|
|
(53,762 |
) |
|
|
(43,522 |
) |
|
Proceeds from sale of property, plant and
equipment |
|
|
3,126 |
|
|
|
2,843 |
|
|
Acquisitions, net of cash received |
|
|
|
(80,077 |
) |
|
|
(2,505 |
) |
|
Repayments of debt of acquiree |
|
|
|
(92,830 |
) |
|
|
- |
|
|
Purchases and dissolution of remaining noncontrolling
interest in subsidiary |
|
|
(892 |
) |
|
|
(1,256 |
) |
|
Advances of notes receivable |
|
|
|
(6,012 |
) |
|
|
(6,994 |
) |
|
Collections of notes receivable |
|
|
|
7,899 |
|
|
|
11,446 |
|
|
Purchases of investments |
|
|
|
(5,666 |
) |
|
|
(7,858 |
) |
|
Proceeds from sale of investments |
|
|
|
2,568 |
|
|
|
1,115 |
|
|
Cash restricted as to use |
|
|
|
188 |
|
|
|
(181 |
) |
|
Other |
|
|
|
|
|
(2,011 |
) |
|
|
95 |
|
|
NET CASH USED IN
INVESTING ACTIVITIES |
|
|
(227,469 |
) |
|
|
(46,817 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
Borrowings under revolving credit facilities |
|
|
|
131,002 |
|
|
|
297,711 |
|
|
Repayments under revolving credit facilities |
|
|
|
(107,294 |
) |
|
|
(311,271 |
) |
|
Proceeds from issuance of common stock |
|
|
|
536 |
|
|
|
1,074 |
|
|
Distributions to noncontrolling interest |
|
|
|
(3,280 |
) |
|
|
(3,188 |
) |
|
Dividends paid to shareholders |
|
|
|
(17,680 |
) |
|
|
(16,507 |
) |
|
Repurchase of common stock |
|
|
|
- |
|
|
|
(800 |
) |
|
Other |
|
|
|
|
|
(73 |
) |
|
|
(21 |
) |
|
NET CASH FROM (USED IN)
FINANCING ACTIVITIES |
|
|
3,211 |
|
|
|
(33,002 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
|
(1,927 |
) |
|
|
(1,221 |
) |
|
NET CHANGE IN CASH AND CASH
EQUIVALENTS |
|
|
(53,665 |
) |
|
|
87,756 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD |
|
|
87,756 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF
PERIOD |
|
$ |
34,091 |
|
|
$ |
87,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502
UFP Industries (NASDAQ:UFPI)
Historical Stock Chart
From Apr 2024 to May 2024
UFP Industries (NASDAQ:UFPI)
Historical Stock Chart
From May 2023 to May 2024