Attached files
| file | filename |
|---|---|
| 8-K - 8-K - UFP INDUSTRIES INC | ufpi-20170418x8k.htm |
Universal Forest Products, Inc.
Page 1
Exhibit 99(a)
News release
---------------AT THE COMPANY---------------
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502
FOR IMMEDIATE RELEASE
Tuesday, April 18, 2017
UFPI posts record first-quarter earnings and sales
GRAND RAPIDS, Mich., April 18, 2017 – 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 |
-more-
Universal Forest Products, Inc.
Page 2
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.
Page 3
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.
Universal Forest Products, Inc.
Page 4
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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% |
Universal Forest Products, Inc.
Page 5
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 |
|
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
|
250,160 |
|
|
198,338 |
|
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS |
|
|
252,904 |
|
|
84,525 |
|
|
|
|
|
|
|
|
|
|
OTHER LIABILITIES |
|
|
49,561 |
|
|
51,003 |
|
|
PROPERTY, PLANT 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 |
|
Universal Forest Products, Inc.
Page 6
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 |
|
|
|
|
|
|
|
|
|
|
|