Universal Forest Products, Inc. (UFPI) Net Sales up nearly 12% in 4th Quarter 2013 over 2012; 4th Quarter 2013 Net Earnings of $8 million compare to $1.9 million loss in 4th Quarter 2012
—Annual 2013 results vs. 2012: Net Earnings jump 80% and Net Sales up more than 20%—
“We benefited from consistent performance in all markets due to a number
of factors in the fourth quarter, not the least of which was the hard
work of our people in all areas of our organization,” said CEO
“I’m pleased with the progress on our growth strategies, including our
focus on developing new products, which resulted in
For the fourth quarter of 2013, the lumber composite price was up 11.5 percent over the same period of 2012, resulting in a 7 percent increase in selling prices. Unit sales increased 5 percent on a comparative quarter basis. For the year, the lumber composite price was up 18.2 percent over 2012, resulting in a 12 percent increase in selling prices. Unit sales increased 8 percent for the year.
By market, the Company posted the following 2013 gross sales results:
Retail
-
Fourth quarter:
$168.8 million , up 6.6 percent over the same period of 2012 -
Year:
$936.6 million , up 11.9 percent over 2012
The Company saw positive results from its efforts to diversify product mix, enhance service, create new products and improve upon existing product lines to grow business with big box and independent retailers alike. The Company’s optimism in this market is fueled by healthy comparable sales at big box retailers and by forecasts that call for continued growth in home improvement activities in the coming years.
Construction
-
Fourth quarter:
$203.3 million , up 14.5 percent over the fourth quarter of 2012 -
Year:
$865.6 million , up 31.3 percent over 2012
This market includes residential and manufactured housing, commercial construction and concrete forming. Both of the housing-related markets—site-built (including multifamily and single-family) and factory built—saw significant growth in the fourth quarter of 2013 and are expected to see continued growth in 2014, according to recent industry forecasts. While lumber prices had a positive impact on these results, the Company’s efforts to create steady, long-term growth by diversifying both its business and customer base in the construction arena are proving effective. The Company also experienced share gains in nonresidential construction in the fourth quarter of 2013.
Industrial
-
Fourth quarter:
$160.6 million , up 14.0 percent over the same period of 2012 -
Year:
$701.7 million , up 19.0 percent over 2012
Industrial production in
The Company remains focused on its goals of achieving
“We were disappointed and wish National Fiber well,” Missad said. “We’ll continue to execute on our growth strategies, maintain our dedication to being better tomorrow than we were today and focus on our customers and their needs, and I am confident we will reach our goals.”
CONFERENCE CALL
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
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED | ||||||||||||||||||||||||||||||
DECEMBER 2013/2012 | ||||||||||||||||||||||||||||||
Quarter Period | Year to Date | |||||||||||||||||||||||||||||
(In thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
NET SALES | $ | 525,738 | 100 | % | $ | 470,763 | 100 | % | $ | 2,470,448 | 100 | % | $ | 2,054,933 | 100.0 | % | ||||||||||||||
COST OF GOODS SOLD | 461,509 | 87.8 | 426,621 | 90.6 | 2,189,896 | 88.6 | 1,829,824 | 89.0 | ||||||||||||||||||||||
GROSS PROFIT | 64,229 | 12.2 | 44,142 | 9.4 | 280,552 | 11.4 | 225,109 | 11.0 | ||||||||||||||||||||||
SELLING, GENERAL AND | ||||||||||||||||||||||||||||||
ADMINISTRATIVE EXPENSES | 50,042 | 9.5 | 44,849 | 9.5 | 204,390 | 8.3 | 184,919 | 9.0 | ||||||||||||||||||||||
ANTI-DUMPING DUTY | ||||||||||||||||||||||||||||||
ASSESSMENTS | - | - | - | - | 1,526 | 0.1 | 2,328 | 0.1 | ||||||||||||||||||||||
NET GAIN ON DISPOSITION OF ASSETS, | ||||||||||||||||||||||||||||||
EARLY RETIREMENT, AND | ||||||||||||||||||||||||||||||
OTHER IMPAIRMENT AND EXIT CHARGES | 621 | 0.1 | 386 | 0.1 | 368 | - | (6,666 | ) | (0.3 | ) | ||||||||||||||||||||
EARNINGS FROM OPERATIONS | 13,566 | 2.6 | (1,093 | ) | (0.2 | ) | 74,268 | 3.0 | 44,528 | 2.2 | ||||||||||||||||||||
OTHER EXPENSE, NET | 1,041 | 0.2 | 1,134 | 0.2 | 4,010 | 0.2 | 3,464 | 0.2 | ||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 12,525 | 2.4 | (2,227 | ) | (0.5 | ) | 70,258 | 2.8 | 41,064 | 2.0 | ||||||||||||||||||||
INCOME TAXES | 3,865 | 0.7 | (1,086 | ) | (0.2 | ) | 24,454 | 1.0 | 15,054 | 0.7 | ||||||||||||||||||||
NET EARNINGS | 8,660 | 1.6 | (1,141 | ) | (0.2 | ) | 45,804 | 1.9 | 26,010 | 1.3 | ||||||||||||||||||||
LESS NET EARNINGS ATTRIBUTABLE TO | ||||||||||||||||||||||||||||||
NONCONTROLLING INTEREST | (665 | ) | (0.1 | ) | (786 | ) | (0.2 | ) | (2,722 | ) | (0.1 | ) | (2,076 | ) | (0.1 | ) | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO | ||||||||||||||||||||||||||||||
CONTROLLING INTEREST | $ | 7,995 | 1.5 | $ | (1,927 | ) | (0.4 | ) | $ | 43,082 | 1.7 | $ | 23,934 | 1.2 | ||||||||||||||||
EARNINGS PER SHARE - BASIC | $ | 0.40 | $ | (0.10 | ) | $ | 2.16 | $ | 1.21 | |||||||||||||||||||||
EARNINGS PER SHARE - DILUTED | $ | 0.40 | $ | (0.10 | ) | $ | 2.15 | $ | 1.21 | |||||||||||||||||||||
COMPREHENSIVE INCOME | 8,191 | (1,500 | ) | 45,020 | 26,990 | |||||||||||||||||||||||||
LESS COMPREHENSIVE INCOME ATTRIBUTABLE | ||||||||||||||||||||||||||||||
TO NONCONTROLLING INTEREST | (631 | ) | (724 | ) | (2,730 | ) | (2,398 | ) | ||||||||||||||||||||||
COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||
ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 7,560 | $ | (2,224 | ) | $ | 42,290 | $ | 24,592 | |||||||||||||||||||||
SUPPLEMENTAL SALES DATA |
||||||||||||||||||||||||||||||
Quarter Period | Year to Date | |||||||||||||||||||||||||||||
Market Classification |
2013 | 2012 | % | 2013 | 2012 | % | ||||||||||||||||||||||||
Retail Building Materials | $ | 168,779 | $ | 158,259 | 7 | % | $ | 936,590 | $ | 836,670 | 12 | % | ||||||||||||||||||
Industrial | 160,609 | 140,880 | 14 | % | 701,688 | 589,893 | 19 | % | ||||||||||||||||||||||
Residential Construction | 81,969 | 74,396 | 10 | % | 340,296 | 255,544 | 33 | % | ||||||||||||||||||||||
Commercial Construction and Concrete Forming | 32,015 | 21,849 | 47 | % | 136,641 | 89,804 | 52 | % | ||||||||||||||||||||||
Manufactured Housing | 89,359 | 81,365 | 10 | % | 388,697 | 314,095 | 24 | % | ||||||||||||||||||||||
Housing and Construction | 203,343 | 177,610 | 865,634 | 659,443 | ||||||||||||||||||||||||||
Total Gross Sales | 532,731 | 476,749 | 12 | % | 2,503,912 | 2,086,006 | 20 | % | ||||||||||||||||||||||
Sales Allowances | (6,993 | ) | (5,986 | ) | (33,464 | ) | (31,073 | ) | ||||||||||||||||||||||
Total Net Sales | $ | 525,738 | $ | 470,763 | $ | 2,470,448 | $ | 2,054,933 | ||||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||
DECEMBER 2013/2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | 2013 | 2012 | LIABILITIES AND EQUITY | 2013 | 2012 | ||||||||||||||
CURRENT ASSETS | CURRENT LIABILITIES | ||||||||||||||||||
Cash and cash equivalents | $ | - | $ | 7,647 | Cash overdraft | $ | 1,079 | $ | - | ||||||||||
Restricted cash | 720 | 6,831 | Accounts payable | 72,918 | 66,054 | ||||||||||||||
Accounts receivable | 180,452 | 163,225 | Accrued liabilities | 65,102 | 48,730 | ||||||||||||||
Inventories | 287,305 | 243,180 | |||||||||||||||||
Other current assets | 27,921 | 32,290 | |||||||||||||||||
TOTAL CURRENT ASSETS | 496,398 | 453,173 | TOTAL CURRENT LIABILITIES | 139,099 | 114,784 | ||||||||||||||
OTHER ASSETS | 13,452 | 16,342 | LONG-TERM DEBT AND | ||||||||||||||||
INTANGIBLE ASSETS, NET | 169,727 | 169,757 | CAPITAL LEASE OBLIGATIONS, | ||||||||||||||||
PROPERTY, PLANT | less current portion | 84,700 | 95,790 | ||||||||||||||||
AND EQUIPMENT, NET | 237,410 | 221,268 | OTHER LIABILITIES | 43,454 | 42,441 | ||||||||||||||
EQUITY | 649,734 | 607,525 | |||||||||||||||||
TOTAL ASSETS | $ | 916,987 | $ | 860,540 | TOTAL LIABILITIES AND EQUITY | $ | 916,987 | $ | 860,540 | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||
FOR THE TWELVE MONTHS ENDED | ||||||||||
DECEMBER 2013/2012 | ||||||||||
(In thousands) | 2013 | 2012 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net earnings | $ | 45,804 | $ | 26,010 | ||||||
Adjustments to reconcile net earnings attributable to controlling interest | ||||||||||
to net cash from operating activities: | ||||||||||
Depreciation | 31,091 | 30,461 | ||||||||
Amortization of intangibles | 2,473 | 2,918 | ||||||||
Expense associated with share-based compensation arrangements | 1,932 | 1,270 | ||||||||
Excess tax benefits from share-based compensation arrangements | (112 | ) | (75 | ) | ||||||
Expense associated with stock grant plans | - | 97 | ||||||||
Loss reserve for notes receivable | 15 | 2,131 | ||||||||
Deferred income taxes | 4,453 | 2,526 | ||||||||
Net earnings attributable to noncontrolling interest | - | - | ||||||||
Equity in earnings of investee | (201 | ) | (79 | ) | ||||||
Net gain (loss) on sale or impairment of property, plant and equipment | 297 | (6,890 | ) | |||||||
Changes in: | ||||||||||
Accounts receivable | (17,886 | ) | (32,274 | ) | ||||||
Inventories | (42,287 | ) | (45,529 | ) | ||||||
Accounts payable | 6,756 | 16,281 | ||||||||
Accrued liabilities and other | 21,026 | (2,568 | ) | |||||||
NET CASH FROM OPERATING ACTIVITIES | 53,361 | (5,721 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Purchases of property, plant, and equipment | (40,023 | ) | (30,344 | ) | ||||||
Proceeds from sale of property, plant and equipment | 1,778 | 18,240 | ||||||||
Acquisitions, net of cash received | (11,478 | ) | (16,974 | ) | ||||||
Purchase of patents & product technology | (143 | ) | (95 | ) | ||||||
Advances of notes receivable | (2,673 | ) | (1,183 | ) | ||||||
Collections of notes receivable and related interest | 2,814 | 2,839 | ||||||||
Cash restricted as to use | 6,111 | (6,178 | ) | |||||||
Other, net | 11 | (528 | ) | |||||||
NET CASH FROM INVESTING ACTIVITIES | (43,603 | ) | (34,223 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Net borrowings (repayments) under revolving credit facilities | (11,090 | ) | 11,090 | |||||||
Repayment of long-term debt | - | (42,774 | ) | |||||||
Borrowings of long-term debt | - | 75,000 | ||||||||
Debt issuance costs | (46 | ) | (266 | ) | ||||||
Proceeds from issuance of common stock | 2,144 | 2,061 | ||||||||
Distributions to noncontrolling interest | (1,460 | ) | (871 | ) | ||||||
Capital contribution from noncontrolling interest | 84 | 281 | ||||||||
Dividends paid to shareholders | (8,166 | ) | (7,905 | ) | ||||||
Excess tax benefits from share-based compensation arrangements | 112 | 75 | ||||||||
Other, net | - | 4 | ||||||||
NET CASH FROM FINANCING ACTIVITIES | (18,422 | ) | 36,695 | |||||||
Effect of exchange rate changes on cash | (62 | ) | 244 | |||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (8,726 | ) | (3,005 | ) | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 7,647 | 10,652 | ||||||||
CASH (CASH OVERDRAFT), END OF PERIOD | $ | (1,079 | ) | $ | 7,647 | |||||
SUPPLEMENTAL INFORMATION: | ||||||||||
Interest paid | $ | 4,883 | $ | 3,982 | ||||||
Income taxes paid | 14,427 | 16,751 | ||||||||
Source:
Universal Forest Products, Inc.
Lynn Afendoulis, (616) 365-1502
Director,
Corporate Communications