UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
Registrant's telephone number, including area code: (
None
(Former name or former address, if changed since last report)
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:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
The |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On October 23, 2019, the Registrant issued a press release announcing its financial results for the quarter-ended September 28, 2019. 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
99(a) Press Release dated October 23, 2019.
104 Cover Page Interactive File (the cover page XBRL tags are embedded in the Inline XBRL document).
2
EXHIBIT INDEX
Exhibit Number |
| Document | |
99(a) | |||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document). | ||
3
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.
4
Universal Forest Products, Inc.
Page 1
Exhibit 99(a)
News release
---------------AT THE COMPANY---------------
Brandon Froysland
Director of Finance
(616) 365-1589
FOR IMMEDIATE RELEASE
Wednesday, October 23, 2019
UFPI reports record third-quarter earnings
- Net earnings up 26 percent, unit sales up 7 percent -
GRAND RAPIDS, Mich., Wednesday, October 23, 2019 – Universal Forest Products, Inc. (Nasdaq: UFPI), soon to be known as UFP Industries, Inc., today announced net sales of $1.16 billion and record net earnings attributable to controlling interests of $51.9 million, or 84 cents per diluted share, for the quarter ended September 28, 2019.
“Our record results are the reflection of the hard work of our employees and the successful execution of our strategies to grow and improve our business. Our growth in organic unit sales was very strong, and we continue to successfully add new, value-added products and services to our offerings that are improving our profitability,” said CEO Matthew J. Missad.
The Company’s mix of value-added sales relative to commodity sales improved from 62.1 percent in the third quarter of 2018 to 67.6 percent in the third quarter of 2019, and new product sales grew 7 percent over the same period of 2018. Although lower lumber pricing affected the Company’s third-quarter net sales, unit sales increased 7 percent over the same period of last year, driven mostly by organic sales growth. During the third quarter, the Company acquired Hartford, Wisconsin-based Pallet USA and Bonner, Montana-based Northwest Painting, Inc., expanding its value-added offerings and market presence in the Midwest and Northwest.
“While we are pleased that so many of our operations are performing so well, we know we have operations that can do much better given our culture of continuous improvement, and we have been making changes to improve their performance. This summer, we announced a new organizational structure beginning January 1, 2020, that will allow for a more specialized and consistent sales approach, more efficient use of resources and capital, and quicker introduction of new, value-added products and services. I’m happy to say we have already made great progress toward the reorganization, and our employees are very excited about the new UFP Industries and the new business and career opportunities that are being created. This truly is an exciting time for our Company.”
-more-
Universal Forest Products, Inc.
Page 2
Third Quarter 2019 Highlights (comparisons on a year-over-year basis):
|
- |
Operating profit of $70.5 million was up 24 percent and net earnings of $51.9 million was up 26 percent |
|
- |
EBITDA of $89.7 million was up 23 percent, far exceeding the Company’s unit sales increase of 7 percent |
|
- |
Unit sales grew 7 percent; organic sales accounted for 6 percent of the growth while acquisitions added 1 percent |
|
- |
New product sales were $142.9 million, up 7 percent |
|
- |
Net sales of $1.16 billion represented a 4 percent decrease; lower lumber prices contributed significantly to the gross sales reduction, as selling prices were down by 11 percent |
|
- |
SG&A, excluding bonus expense, as a percentage of gross profit fell from 55.4 percent in the third quarter of 2018 to 49.8 percent during the third quarter of 2019 |
By market, the Company reported the following third-quarter 2019 results.
Retail
|
· |
$437 million in gross sales, down 1 percent compared to the third quarter of 2018. A unit sales increase of 10 percent was offset by selling prices that were 11 percent lower. Organic growth was responsible for all of the unit sales increase and was largely driven by robust sales of Deckorators decking and deck accessories and new product sales. |
Industrial
|
· |
$332.5 million in gross sales, down 6 percent from the third quarter of 2018. A unit sales increase of 4 percent was offset by lower selling prices of 10 percent. Organic growth contributed 2 percent of the unit sales increase; acquisitions were responsible for 2 percent. The Company’s focus on improving its product mix has resulted in more value-added sales and fewer commodity sales, improving gross profits. |
Construction
|
· |
$414.4 million in gross sales, down 5 percent compared to the third quarter of 2018, due to a 13 percent decrease in selling prices and an 8 percent increase in overall unit sales. Unit sales growth was entirely organic, with commercial sales growing 15 percent, residential housing sales growing 6 percent and manufactured housing sales growing 1 percent. |
CONFERENCE CALL
Universal Forest Products, soon to be known as UFP Industries, Inc., will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. ET on Thursday, October 24, 2019. 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 866-518-4547 and internationally at 213-660-0879. Analysts and institutional investors should use conference pass code 4270679. The conference call will be available simultaneously and in its entirety to all interested investors, news media and Universal employees through a webcast at http://www.ufpi.com. A replay of the call will be available through November 24, 2019, at 855-859-2056 or 404-537-3406.
-more-
Universal Forest Products, Inc.
Page 3
UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc., soon to be known as UFP Industries, 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, 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.
Non-GAAP Financial Information
This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management considers EBITDA, a non-GAAP measure, an alternative performance measure which may provide useful information to investors.
# # #
Universal Forest Products, Inc.
Page 4
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED
|
|
|
Quarter Period |
Year to Date |
||||||||||||||||||
|
(In thousands, except per share data) |
|
2019 |
2018 |
2019 |
2018 |
||||||||||||||||
|
NET SALES |
|
$ |
1,163,026 |
|
100 |
% |
$ |
1,212,702 |
|
100 |
% |
$ |
3,417,969 |
|
100 |
% |
$ |
3,500,999 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD |
|
|
975,756 |
|
83.9 |
|
|
1,054,029 |
|
86.9 |
|
|
2,889,706 |
|
84.5 |
|
|
3,045,748 |
|
87.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
187,270 |
|
16.1 |
|
|
158,673 |
|
13.1 |
|
|
528,263 |
|
15.5 |
|
|
455,251 |
|
13.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
115,958 |
|
10.0 |
|
|
102,292 |
|
8.4 |
|
|
334,165 |
|
9.8 |
|
|
300,292 |
|
8.6 |
|
|
FOREIGN CURRENCY EXCHANGE (GAIN) LOSS |
|
|
(306) |
|
— |
|
|
412 |
|
— |
|
|
118 |
|
— |
|
|
213 |
|
— |
|
|
NET (GAIN) LOSS ON DISPOSITION OF ASSETS AND IMPAIRMENT OF ASSETS |
|
|
1,151 |
|
0.1 |
|
|
(1,022) |
|
(0.1) |
|
|
830 |
|
— |
|
|
(7,079) |
|
(0.2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM OPERATIONS |
|
|
70,467 |
|
6.1 |
|
|
56,991 |
|
4.7 |
|
|
193,150 |
|
5.7 |
|
|
161,825 |
|
4.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSE, NET |
|
|
1,490 |
|
0.1 |
|
|
1,734 |
|
0.1 |
|
|
4,082 |
|
0.1 |
|
|
4,862 |
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE INCOME TAXES |
|
|
68,977 |
|
5.9 |
|
|
55,257 |
|
4.6 |
|
|
189,068 |
|
5.5 |
|
|
156,963 |
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES |
|
|
16,396 |
|
1.4 |
|
|
13,189 |
|
1.1 |
|
|
45,340 |
|
1.3 |
|
|
36,183 |
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
|
52,581 |
|
4.5 |
|
|
42,068 |
|
3.5 |
|
|
143,728 |
|
4.2 |
|
|
120,780 |
|
3.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST |
|
|
(722) |
|
(0.1) |
|
|
(849) |
|
(0.1) |
|
|
(1,814) |
|
(0.1) |
|
|
(2,684) |
|
(0.1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST |
|
$ |
51,859 |
|
4.5 |
|
$ |
41,219 |
|
3.4 |
|
$ |
141,914 |
|
4.2 |
|
$ |
118,096 |
|
3.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - BASIC |
|
$ |
0.84 |
|
|
|
$ |
0.67 |
|
|
|
$ |
2.30 |
|
|
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - DILUTED |
|
$ |
0.84 |
|
|
|
$ |
0.66 |
|
|
|
$ |
2.30 |
|
|
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Period |
|
|
Year to Date |
||||||||||||||||||||
|
Market Classification |
|
|
2019 |
|
|
|
|
|
2018 |
|
% |
|
|
2019 |
|
|
|
|
|
2018 |
|
% |
||||
|
Retail |
|
|
$ |
437,092 |
|
|
|
|
|
$ |
441,916 |
|
-1% |
|
|
$ |
1,315,543 |
|
|
|
|
|
$ |
1,356,920 |
|
-3% |
|
Industrial |
|
|
|
332,537 |
|
|
|
|
|
|
353,660 |
|
-6% |
|
|
|
1,019,535 |
|
|
|
|
|
|
986,410 |
|
3% |
|
Construction |
|
|
|
414,401 |
|
|
|
|
|
|
438,115 |
|
-5% |
|
|
|
1,145,064 |
|
|
|
|
|
|
1,222,395 |
|
-6% |
|
Total Gross Sales |
|
|
|
1,184,030 |
|
|
|
|
|
|
1,233,691 |
|
-4% |
|
|
|
3,480,142 |
|
|
|
|
|
|
3,565,725 |
|
-2% |
|
Sales Allowances |
|
|
|
(21,004) |
|
|
|
|
|
|
(20,989) |
|
0% |
|
|
|
(62,173) |
|
|
|
|
|
|
(64,726) |
|
4% |
|
Total Net Sales |
|
|
$ |
1,163,026 |
|
|
|
|
|
$ |
1,212,702 |
|
-4% |
|
|
$ |
3,417,969 |
|
|
|
|
|
$ |
3,500,999 |
|
-2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
% of Sales |
|
2018 |
|
% of Sales |
|
|
2019 |
|
% of Sales |
|
2018 |
|
% of Sales |
||||||||
|
SG&A, Excluding Bonus Expense |
|
|
$ |
93,344 |
|
8.0% |
|
$ |
87,967 |
|
7.3% |
|
|
$ |
280,898 |
|
8.2% |
|
$ |
262,382 |
|
7.5% | ||||
|
Bonus Expense |
|
|
|
22,614 |
|
1.9% |
|
|
14,325 |
|
1.2% |
|
|
|
53,267 |
|
1.6% |
|
|
37,910 |
|
1.1% | ||||
|
Total SG&A |
|
|
$ |
115,958 |
|
10.0% |
|
$ |
102,292 |
|
8.4% |
|
|
$ |
334,165 |
|
9.8% |
|
$ |
300,292 |
|
8.6% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A, Excluding Bonus Expense as a Percentage of Gross Profit |
|
|
|
49.8% |
|
|
|
|
|
|
55.4% |
|
|
|
|
|
53.2% |
|
|
|
|
|
|
57.6% |
|
|
Universal Forest Products, Inc.
Page 5
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 2019/2018
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
2019 |
|
|
2018 |
|
LIABILITIES AND EQUITY |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
64,498 |
|
$ |
26,327 |
|
Cash overdraft |
|
$ |
— |
|
$ |
31,115 |
|
|
Restricted cash |
|
|
729 |
|
|
1,024 |
|
Accounts payable |
|
|
180,767 |
|
|
175,912 |
|
|
Investments |
|
|
17,028 |
|
|
15,809 |
|
Accrued liabilities |
|
|
204,529 |
|
|
151,102 |
|
|
Accounts receivable |
|
|
474,648 |
|
|
454,935 |
|
Current portion of debt |
|
|
152 |
|
|
149 |
|
|
Inventories |
|
|
479,356 |
|
|
510,057 |
|
|
|
|
|
|
|
|
|
|
Other current assets |
|
|
55,845 |
|
|
38,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
1,092,104 |
|
|
1,046,851 |
|
TOTAL CURRENT LIABILITIES |
|
|
385,448 |
|
|
358,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
116,887 |
|
|
22,345 |
|
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
|
286,627 |
|
|
261,666 |
|
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS |
|
|
162,853 |
|
|
186,539 |
|
|
|
|
|
|
|
|
|
|
OTHER LIABILITIES |
|
|
103,221 |
|
|
40,630 |
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
|
385,007 |
|
|
346,309 |
|
EQUITY |
|
|
1,229,103 |
|
|
1,091,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,880,625 |
|
$ |
1,677,171 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
1,880,625 |
|
$ |
1,677,171 |
|
Universal Forest Products, Inc.
Page 6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 2019/2018
|
(In thousands) |
|
|
2019 |
|
|
|
2018 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
143,728 |
|
|
$ |
120,780 |
|
|
Adjustments to reconcile net earnings to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
44,652 |
|
|
|
40,490 |
|
|
Amortization of intangibles |
|
|
4,690 |
|
|
|
4,274 |
|
|
Expense associated with share-based and grant compensation arrangements |
|
|
3,105 |
|
|
|
2,762 |
|
|
Deferred income taxes credit |
|
|
(367) |
|
|
|
(583) |
|
|
Unrealized gain on investment |
|
|
(1,611) |
|
|
|
— |
|
|
Net (gain) loss on disposition of assets and impairment of assets |
|
|
830 |
|
|
|
(7,079) |
|
|
Changes in: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(127,841) |
|
|
|
(121,067) |
|
|
Inventories |
|
|
80,178 |
|
|
|
(39,448) |
|
|
Accounts payable and cash overdraft |
|
|
14,293 |
|
|
|
38,611 |
|
|
Accrued liabilities and other |
|
|
36,423 |
|
|
|
21,361 |
|
|
NET CASH FROM (USED IN) OPERATING ACTIVITIES |
|
|
198,080 |
|
|
|
60,101 |
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment |
|
|
(66,338) |
|
|
|
(74,541) |
|
|
Proceeds from sale of property, plant and equipment |
|
|
1,180 |
|
|
|
37,612 |
|
|
Acquisitions and purchase of noncontrolling interest, net of cash received |
|
|
(38,710) |
|
|
|
(38,963) |
|
|
Purchases of investments |
|
|
(6,475) |
|
|
|
(12,401) |
|
|
Proceeds from sale of investments |
|
|
4,159 |
|
|
|
3,298 |
|
|
Other |
|
|
199 |
|
|
|
(620) |
|
|
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES |
|
|
(105,985) |
|
|
|
(85,615) |
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Borrowings under revolving credit facilities |
|
|
421,464 |
|
|
|
636,798 |
|
|
Repayments under revolving credit facilities |
|
|
(460,537) |
|
|
|
(668,941) |
|
|
Borrowings of debt |
|
|
— |
|
|
|
927 |
|
|
Repayments of debt |
|
|
(3,099) |
|
|
|
(5,511) |
|
|
Issuance of long-term debt |
|
|
— |
|
|
|
75,000 |
|
|
Proceeds from issuance of common stock |
|
|
812 |
|
|
|
756 |
|
|
Distributions to noncontrolling interest |
|
|
(1,634) |
|
|
|
(2,239) |
|
|
Dividends paid to shareholders |
|
|
(12,270) |
|
|
|
(11,090) |
|
|
Repurchase of common stock |
|
|
— |
|
|
|
(1,843) |
|
|
Other |
|
|
41 |
|
|
|
(55) |
|
|
NET CASH FROM PROVIDED BY FINANCING ACTIVITIES |
|
|
(55,223) |
|
|
|
23,802 |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
157 |
|
|
|
247 |
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
37,029 |
|
|
|
(1,465) |
|
|
|
|
|
|
|
|
|
|
|
|
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
28,198 |
|
|
|
28,816 |
|
|
|
|
|
|
|
|
|
|
|
|
ALL CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
65,227 |
|
|
$ |
27,351 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
$ |
27,316 |
|
|
$ |
28,339 |
|
|
Restricted cash, beginning of period |
|
|
882 |
|
|
|
477 |
|
|
All cash and cash equivalents, beginning of period |
|
$ |
28,198 |
|
|
$ |
28,816 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
$ |
64,498 |
|
|
$ |
26,327 |
|
|
Restricted cash, end of period |
|
|
729 |
|
|
|
1,024 |
|
|
All cash and cash equivalents, end of period |
|
$ |
65,227 |
|
|
$ |
27,351 |
|
|
|
|
|
|
|
|
|
|
|
Universal Forest Products, Inc.
Page 7
EBITDA RECONCILIATION (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMER 2019/2018
|
|
|
Quarter Period |
Year to Date |
||||||||
|
(In thousands) |
|
2019 |
|
2018 |
2019 |
2018 |
|||||
|
Net earnings |
|
$ |
52,581 |
|
$ |
42,068 |
$ |
143,728 |
|
$ |
120,780 |
|
Interest expense |
|
|
1,900 |
|
|
1,945 |
|
6,767 |
|
|
5,971 |
|
Interest and investment income |
|
|
(317) |
|
|
(211) |
|
(1,074) |
|
|
(1,109) |
|
Unrealized gain on investments |
|
|
(93) |
|
|
- |
|
(1,611) |
|
|
- |
|
Net (gain) loss on disposition of assets and impairment of assets |
|
|
1,151 |
|
|
(1,022) |
|
830 |
|
|
(7,079) |
|
Income taxes |
|
|
16,396 |
|
|
13,189 |
|
45,340 |
|
|
36,183 |
|
Expense associated with share-based compensation arrangements |
|
|
896 |
|
|
838 |
|
3,105 |
|
|
2,762 |
|
Depreciation expense |
|
|
15,452 |
|
|
14,346 |
|
44,652 |
|
|
40,490 |
|
Amortization of intangibles |
|
|
1,744 |
|
|
1,571 |
|
4,690 |
|
|
4,274 |
|
EBITDA |
|
$ |
89,710 |
|
$ |
72,724 |
$ |
246,427 |
|
$ |
202,272 |
Universal Forest Products, Inc.
Page 8
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AS A PERCENTAGE OF SALES
CURRENT YEAR’S SALES STATED AT LAST YEAR’S SELLING PRICES (UNAUDITED)
FOR THE THREE MONTHS ENDED - SEPTEMBER 2019/2018
|
|
Quarter Period |
||||||||
|
|
Actual |
Sales Adjusted to Last Year's Selling Price |
Actual |
||||||
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
COST OF GOODS SOLD |
|
83.9 |
|
|
85.6 |
|
|
86.9 |
|
|
GROSS PROFIT |
|
16.1 |
|
|
14.4 |
|
|
13.1 |
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
10.0 |
|
|
8.9 |
|
|
8.5 |
|
|
NET (GAIN) LOSS ON DISPOSITION OF ASSETS AND IMPAIRMENT OF ASSETS |
|
0.1 |
|
|
0.1 |
|
|
(0.1) |
|
|
EARNINGS FROM OPERATIONS |
|
6.1 |
|
|
5.4 |
|
|
4.7 |
|
|
OTHER EXPENSE, NET |
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
EARNINGS BEFORE INCOME TAXES |
|
5.9 |
|
|
5.3 |
|
|
4.6 |
|
|
INCOME TAXES |
|
1.4 |
|
|
1.3 |
|
|
1.1 |
|
|
NET EARNINGS |
|
4.5 |
|
|
4.0 |
|
|
3.5 |
|
|
LESS NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING INTEREST |
|
(0.1) |
|
|
(0.1) |
|
|
(0.1) |
|
|
NET EARNINGS ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
CONTROLLING INTEREST |
|
4.5 |
% |
|
4.0 |
% |
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Note: Actual percentages are calculated and may not sum to total due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 NET SALES |
$ |
1,212,702 |
|
|
|
|
|
|
|
|
2019 SELL PRICE DECLINE |
|
11.00 |
% |
|
|
|
|
|
|
|
DECREASE IN 2019 NET SALES DUE TO SELL PRICE DECLINE |
$ |
133,397 |
|
|
|
|
|
|
|
|
ACTUAL 2019 NET SALES |
|
1,163,026 |
|
|
|
|
|
|
|
|
ADJUSTED 2019 NET SALES |
$ |
1,296,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACTUAL 2019 COST OF GOODS SOLD |
$ |
975,756 |
|
|
|
|
|
|
|
|
PLUS DIFFERENCE IN NET SALES (ABOVE) |
|
133,397 |
|
|
|
|
|
|
|
|
ADJUSTED 2019 COST OF GOODS SOLD |
$ |
1,109,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|