UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Universal Forest Products, Inc.

(Exact name of registrant as specified in its charter)

Michigan		0-22684		38-1465835
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

2801 East Beltline, NE Grand Rapids, Michigan		49525
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (616) 364-6161

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition

On April 15, 2009, the Registrant issued a press release announcing its financial results for the quarter ended March 28, 2009. A copy of the Registrant’s press release is attached as Exhibit 99(a) to this Current Report.

Item 9.01 Financial Statements, Pro Forma Financial Information, and Exhibits

(c) Exhibits

	99	(a)		Press Release dated April 15, 2009.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

EXHIBIT INDEX

Exhibit Number				Document
	99	(a)		Press Release dated April 15, 2009.

Exhibit 99(a)

news release

—AT THE COMPANY—
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502

FOR IMMEDIATE RELEASE
WEDNESDAY, APRIL 15, 2009

Universal Forest Products strategies drive improved results and optimism in first quarter
Loss narrows due to improved efficiencies and inventory management
Sales hurt by depressed lumber market, weak economy

GRAND RAPIDS, Mich., April 15, 2009 — Universal Forest Products, Inc. (Nasdaq: UFPI) today announced a loss of $1.2 million, or ($0.06) per diluted share, on net sales of $361.7 million for the first quarter of 2009. That favorably compares to a loss of $4.6 million, or ($0.24) per diluted share, on net sales of $489.5 million for the first quarter of 2008. First quarter 2009 sales results reflect a lumber market composite price that was 19% lower than the previous year, which impacted selling prices; weak consumer spending; and the ongoing challenges of a depressed economy.

“We are pleased with results like these in tough economic times and in a quarter that historically comprises a slow selling season,” said CEO Michael B. Glenn. “These numbers reflect production efficiencies resulting from the improvement efforts of our employees and a strong business model that promotes sales to multiple industries and markets.”

Glenn noted that a renewed focus on the basics that have created success over the Company’s 54 years—an unwavering customer focus, optimizing inventory and collecting receivables, and an entrepreneurial spirit that encourages innovation, prudent risk-taking and a focus on daily improvement—is yielding positive results. “We continue to size our capacity to meet market demand as necessary, but after a year of difficult decisions and moves, there is a renewed optimism and a bounce in our step at Universal,” he added.

—more—

UNIVERSAL FOREST PRODUCTS, INC.
PAGE 2

By market, Universal posted the following gross sales results for the first quarter of 2009:

Do-It-Yourself/retail: $168.1 million, a decrease of 4.2% from the same period of 2008. That compares with recent double-digit declines in same-store sales at big box retailers, which comprise much of Universal’s DIY business. Universal was able to achieve market share gains by adding new products and programs, such as Capricorn™ decking and lawn and garden products, and by gaining additional customer locations. While experts predict that the overall economic downturn and low consumer confidence will keep this market weak through 2009, the long-term forecast is strong.

Industrial packaging/components: $103.7 million, a decrease of 25.8% from 2008. These results can be attributed primarily to a decline in demand by U.S. industrial users of wood packaging and other products, resulting from the depressed economy. However, Universal continues to see strong opportunity in this still largely-fragmented market as it expands its product offering and as the economy recovers. The Company also expects continued strong growth in its concrete forming business, which it launched in the second quarter of 2007.

Site-built construction: $60.8 million, a decrease of 43.2% from the same period of 2008. In February 2009, year-to-date single-family housing and multifamily starts were down approximately 53% and 50%, respectively, from the same period of 2008. Industry experts forecast a continued decline in homebuilding before the market begins to stabilize in the latter part of the year. Universal is focusing on multifamily housing and commercial construction, where it has identified opportunities. In addition, the Company is seen as a preferred and reliable supplier given its strong financial position in an industry where many suppliers are facing financial difficulties.

Manufactured housing: $36.6 million, a decrease of 52.2% from 2008. According to the most recent statistics available, shipments of HUD-code homes were down more than 46% for the year-to-date February 2009 compared to the same period of 2008. Forecasts call for industry shipments to continue their downward trend through 2009. The Company believes this market will remain depressed until the oversupply of site-built homes is absorbed and credit conditions improve.

OUTLOOK

The Company expects the current challenging conditions to prevail through 2009; however, its strong financial position, solid business model and diverse business opportunities position it better than most to endure challenging times. The Company believes that current economic conditions and uncertainties limit its ability to provide meaningful guidance for ranges of likely financial performance and has chosen to cease the practice of providing guidance for the foreseeable future.

—more—

UNIVERSAL FOREST PRODUCTS, INC.
PAGE 3

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, April 16, 2009. The call will be hosted by Executive Chairman William G. Currie, CEO Michael B. Glenn and CFO Michael Cole, and will be available for analysts and institutional investors domestically at (800) 901-5217 or internationally at (617) 786-2964. Use conference passcode 89537502. The conference call will be available simultaneously and in its entirety to all interested investors and news media through a Web cast at http://www.ufpi.com. A replay of the call will be available through Friday, May 15, 2009, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay passcode 32925458.

UNIVERSAL FOREST PRODUCTS, INC.

Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for DIY/retail home centers and other retailers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market, and specialty wood packaging and components for various industries. The Company’s consumer products subsidiary offers a large portfolio of outdoor living products, including wood composite decking, decorative balusters, post caps and plastic lattice, and its garden group offers an array of products, such as trellises and arches, to retailers nationwide. Universal’s subsidiaries also provide framing services for the site-built market and forming products for concrete construction. The 54-year-old company is headquartered in Grand Rapids, Mich., with facilities throughout North America. For more about Universal Forest Products, go to www.ufpi.com.

Please be aware that: Any statements included in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company’s management as well as on assumptions made by,
and information currently available to, the Company at the time such statements were made. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events 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: Adverse lumber market trends, competitive activity, negative economic trends, government regulations and weather. Certain of these 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 STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2009/2008

		Quarter Period																Year to Date
(In thousands, except per share data)		2009								2008								2009								2008
NET SALES		$	361,722				100	%		$	489,512				100	%		$	361,722				100	%		$	489,512				100	%
COST OF GOODS SOLD			314,901				87.1				434,692				88.8				314,901				87.1				434,692				88.8
GROSS PROFIT			46,821				12.9				54,820				11.2				46,821				12.9				54,820				11.2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			49,092				13.6				58,544				12.0				49,092				13.6				58,544				12.0
NET (GAIN) LOSS ON DISPOSITION OF ASSETS AND OTHER IMPAIRMENT AND EXIT CHARGES			(1,136	)			(0.3	)			807				0.2				(1,136	)			(0.3	)			807				0.2
LOSS FROM OPERATIONS			(1,135	)			(0.3	)			(4,531	)			(0.9	)			(1,135	)			(0.3	)			(4,531	)			(0.9	)
Interest expense			1,074				0.3				3,594				0.7				1,074				0.3				3,594				0.7
Interest income			(83	)			—				(373	)			(0.1	)			(83	)			—				(373	)			(0.1	)
			991				0.3				3,221				0.7				991				0.3				3,221				0.7
LOSS BEFORE INCOME TAXES			(2,126	)			(0.6	)			(7,752	)			(1.6	)			(2,126	)			(0.6	)			(7,752	)			(1.6	)
INCOME TAX BENEFIT			(963	)			(0.3	)			(3,350	)			(0.7	)			(963	)			(0.3	)			(3,350	)			(0.7	)
NET LOSS			(1,163	)			(0.3	)			(4,402	)			(0.9	)			(1,163	)			(0.3	)			(4,402	)			(0.9	)
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST			(44	)			—				(174	)			—				(44	)			—				(174	)			—
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST		$	(1,207	)			(0.3	)		$	(4,576	)			(0.9	)		$	(1,207	)			(0.3	)		$	(4,576	)			(0.9	)
LOSS PER SHARE — BASIC		$	(0.06	)						$	(0.24	)						$	(0.06	)						$	(0.24	)
LOSS PER SHARE — DILUTED		$	(0.06	)						$	(0.24	)						$	(0.06	)						$	(0.24	)
WEIGHTED AVERAGE SHARES OUTSTANDING FOR BASIC LOSS			19,184								18,996								19,184								18,996
WEIGHTED AVERAGE SHARES OUTSTANDING FOR DILUTED LOSS			19,184								18,996								19,184								18,996

SUPPLEMENTAL SALES DATA

		Quarter Period																Year to Date
Market Classification		2009				%				2008				%				2009				%				2008				%
Do-It-Yourself/Retail		$	168,134				46	%		$	175,460				35	%		$	168,134				46	%		$	175,460				35	%
Site-Built Construction			60,765				16	%			107,008				21	%			60,765				16	%			107,008				21	%
Industrial			103,658				28	%			139,608				29	%			103,658				28	%			139,608				29	%
Manufactured Housing			36,550				10	%			76,441				15	%			36,550				10	%			76,441				15	%
Total Gross Sales			369,107				100	%			498,517				100	%			369,107				100	%			498,517				100	%
Sales Allowances			(7,385	)							(9,005	)							(7,385	)							(9,005	)
Total Net Sales		$	361,722							$	489,512							$	361,722							$	489,512

UNIVERSAL FOREST PRODUCTS, INC.
PAGE 5

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 2009/2008

(In thousands)		2009				2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	9,427			$	33,584
Accounts receivable			180,021				161,896
Inventories			190,801				260,292
Assets held for sale			5,490				10,412
Other current assets			17,879				38,003
TOTAL CURRENT ASSETS			403,618				504,187
OTHER ASSETS			3,522				7,747
INTANGIBLE ASSETS, NET			179,660				182,460
PROPERTY, PLANT AND EQUIPMENT, NET			240,249				267,048
TOTAL ASSETS		$	827,049			$	961,442
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable		$	74,345			$	103,198
Accrued liabilities			63,048				77,276
Current portion of long-term debt and capital leases			16,223				1,012
TOTAL CURRENT LIABILITIES			153,616				181,486
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion			96,235				194,277
OTHER LIABILITIES			29,861				41,845
EQUITY			547,337				543,834
TOTAL LIABILITIES AND EQUITY		$	827,049			$	961,442

UNIVERSAL FOREST PRODUCTS, INC.
PAGE 6

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2009/2008

(In thousands)		2009				2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss attributable to controlling interest		$	(1,207	)		$	(4,576	)
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation			8,417				9,601
Amortization of intangibles			2,563				2,280
Expense associated with share-based compensation arrangements			637				250
Expense associated with stock grant plans			78				67
Deferred income taxes			214				(85	)
Net earnings attributable to noncontrolling interest			44				174
Net (gain) loss on disposition of assets and other impairment and exit charges			(1,599	)			262
Changes in:
Accounts receivable			(41,760	)			(17,053	)
Inventories			2,353				(21,954	)
Accounts payable			11,231				18,600
Accrued liabilities and other			973				7,077
Excess tax benefits from share-based compensation arrangements			—				(26	)
NET CASH FROM OPERATING ACTIVITIES			(18,056	)			(5,383	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant, and equipment			(3,217	)			(5,612	)
Acquisitions, net of cash received			—				(14,100	)
Proceeds from sale of property, plant and equipment			5,575				26,660
Collection of notes receivable			30				332
Advances of notes receivable			(14	)			(815	)
Insurance proceeds			242				—
Other, net			9				16
NET CASH FROM INVESTING ACTIVITIES			2,625				6,481
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under revolving credit facilities			10,577				(11,271	)
Repayment of long-term debt			(93	)			(104	)
Borrowings of long-term debt			800				—
Proceeds from issuance of common stock			316				389
Distributions to noncontrolling interest			(70	)			(146	)
Excess tax benefits from share-based compensation arrangements			—				26
Other, net			(9	)			(13	)
NET CASH FROM FINANCING ACTIVITIES			11,521				(11,119	)
NET CHANGE IN CASH AND CASH EQUIVALENTS			(3,910	)			(10,021	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			13,337				43,605
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	9,427			$	33,584
SUPPLEMENTAL INFORMATION:
Interest paid			444				1,436
Income taxes paid (refunded)			(7,138	)			(10,521	)