UFPI Reports Record Net Earnings: $25.6 Million for the Quarter; $61.7 Million Year-to-Date
Diluted EPS for the third quarter is
Strong unit sales in each market offset by soft lumber prices
“I want to thank the members of the Universal family, who are motivated
to succeed. One measure of accomplishment is breaking performance
records—and that’s what they did,” said CEO
“This quarter was about executing our plan and serving our customers well,” Missad added. “We continued to enhance our product mix with new and value-added products, to buy opportunistically, to keep a close eye on costs and efficiencies, and to maintain a disciplined approach to capital allocation. This will be a priority for us no matter how successful a quarter or year might be.”
Missad noted that year-to-date sales of new products at the end of the
third quarter were
The Company saw strong unit sales in each of its markets, although sales dollars were impacted by a lumber market that was down 17.6 percent in the third quarter from the same period of 2014. By market, the Company posted the following third-quarter gross sales results:
Retail:
Industrial:
Construction:
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 CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) | ||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED | ||||||||||||||||||||||||||||
SEPTEMBER 2015/2014 | ||||||||||||||||||||||||||||
Quarter Period | Year to Date | |||||||||||||||||||||||||||
(In thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
NET SALES | $ | 762,275 | 100 | % | $ | 713,489 | 100 | % | $ | 2,233,470 | 100 | % | $ | 2,040,239 | 100.0 | % | ||||||||||||
COST OF GOODS SOLD | 651,569 | 85.5 | 623,903 | 87.4 | 1,930,739 | 86.4 | 1,787,652 | 87.6 | ||||||||||||||||||||
GROSS PROFIT | 110,706 | 14.5 | 89,586 | 12.6 | 302,731 | 13.6 | 252,587 | 12.4 | ||||||||||||||||||||
SELLING, GENERAL AND | ||||||||||||||||||||||||||||
ADMINISTRATIVE EXPENSES | 67,951 | 8.9 | 59,936 | 8.4 | 198,087 | 8.9 | 172,835 | 8.5 | ||||||||||||||||||||
ANTI-DUMPING DUTY ASSESSMENTS | - | - | - | - | - | - | 1,600 | 0.1 | ||||||||||||||||||||
NET (GAIN) LOSS ON DISPOSITION AND | ||||||||||||||||||||||||||||
IMPAIRMENT OF ASSETS | 230 | - | (2,570 | ) | (0.4 | ) | 68 | - | (3,418 | ) | (0.2 | ) | ||||||||||||||||
EARNINGS FROM OPERATIONS | 42,525 | 5.6 | 32,220 | 4.5 | 104,576 | 4.7 | 81,570 | 4.0 | ||||||||||||||||||||
OTHER EXPENSE, NET | 924 | 0.1 | 552 | 0.1 | 3,118 | 0.1 | 1,963 | 0.1 | ||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 41,601 | 5.5 | 31,668 | 4.4 | 101,458 | 4.5 | 79,607 | 3.9 | ||||||||||||||||||||
INCOME TAXES | 14,718 | 1.9 | 11,176 | 1.6 | 36,887 | 1.7 | 29,000 | 1.4 | ||||||||||||||||||||
NET EARNINGS | 26,883 | 3.5 | 20,492 | 2.9 | 64,571 | 2.9 | 50,607 | 2.5 | ||||||||||||||||||||
LESS NET EARNINGS ATTRIBUTABLE TO | ||||||||||||||||||||||||||||
NONCONTROLLING INTEREST | (1,327 | ) | (0.2 | ) | (1,258 | ) | (0.2 | ) | (2,876 | ) | (0.1 | ) | (2,369 | ) | (0.1 | ) | ||||||||||||
NET EARNINGS ATTRIBUTABLE TO | ||||||||||||||||||||||||||||
CONTROLLING INTEREST | $ | 25,556 | 3.4 | $ | 19,234 | 2.7 | $ | 61,695 | 2.8 | $ | 48,238 | 2.4 | ||||||||||||||||
EARNINGS PER SHARE - BASIC | $ | 1.26 | $ | 0.96 | $ | 3.06 | $ | 2.40 | ||||||||||||||||||||
EARNINGS PER SHARE - DILUTED | $ | 1.26 | $ | 0.96 | $ | 3.06 | $ | 2.40 | ||||||||||||||||||||
COMPREHENSIVE INCOME | 24,305 | 20,001 | 60,365 | 49,722 | ||||||||||||||||||||||||
LESS COMPREHENSIVE INCOME ATTRIBUTABLE | ||||||||||||||||||||||||||||
TO NONCONTROLLING INTEREST | (445 | ) | (1,317 | ) | (1,578 | ) | (2,183 | ) | ||||||||||||||||||||
COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||
ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 23,860 | $ | 18,684 | $ | 58,787 | $ | 47,539 | ||||||||||||||||||||
SUPPLEMENTAL SALES DATA |
||||||||||||||||||||||||||||
Quarter Period | Year to Date | |||||||||||||||||||||||||||
Market Classification |
2015 | 2014 |
% |
2015 | 2014 |
% |
||||||||||||||||||||||
Retail | $ | 295,350 | $ | 270,516 | 9 | % | $ | 901,454 | $ | 818,871 | 10 | % | ||||||||||||||||
Industrial | 236,023 | 212,906 | 11 | % | 687,251 | 589,892 | 17 | % | ||||||||||||||||||||
Construction | 241,835 | 240,203 | 1 | % | 677,112 | 661,271 | 2 | % | ||||||||||||||||||||
Total Gross Sales | 773,208 | 723,625 | 7 | % | 2,265,817 | 2,070,034 | 9 | % | ||||||||||||||||||||
Sales Allowances | (10,933 | ) | (10,136 | ) | (32,347 | ) | (29,795 | ) | ||||||||||||||||||||
Total Net Sales | $ | 762,275 | $ | 713,489 | $ | 2,233,470 | $ | 2,040,239 |
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||
SEPTEMBER 2015/2014 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
ASSETS | 2015 | 2014 | LIABILITIES AND EQUITY | 2015 | 2014 | |||||||||||||
CURRENT ASSETS | CURRENT LIABILITIES | |||||||||||||||||
Cash and cash equivalents | $ | 61,328 | $ | 26,184 | Cash overdraft | $ | - | $ | - | |||||||||
Restricted cash | 1,139 | 720 | Accounts payable | 101,117 | 99,008 | |||||||||||||
Accounts receivable | 273,737 | 257,235 | Accrued liabilities | 113,184 | 93,933 | |||||||||||||
Inventories | 288,209 | 273,665 | ||||||||||||||||
Other current assets | 23,112 | 27,591 | ||||||||||||||||
TOTAL CURRENT ASSETS | 647,525 | 585,395 | TOTAL CURRENT LIABILITIES | 214,301 | 192,941 | |||||||||||||
OTHER ASSETS | 8,934 | 16,227 | LONG-TERM DEBT AND | |||||||||||||||
INTANGIBLE ASSETS, NET | 200,929 | 168,825 | CAPITAL LEASE OBLIGATIONS | 84,722 | 84,700 | |||||||||||||
PROPERTY, PLANT | OTHER LIABILITIES | 56,757 | 42,758 | |||||||||||||||
AND EQUIPMENT, NET | 254,530 | 245,036 | EQUITY | 756,138 | 695,084 | |||||||||||||
TOTAL ASSETS | $ | 1,111,918 | $ | 1,015,483 | TOTAL LIABILITIES AND EQUITY | $ | 1,111,918 | $ | 1,015,483 |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||||
FOR THE NINE MONTHS ENDED | |||||||||||
SEPTEMBER 2015/2014 | |||||||||||
(In thousands) | 2015 | 2014 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net earnings | $ | 64,571 | $ | 50,607 | |||||||
Adjustments to reconcile net earnings attributable to controlling interest | |||||||||||
to net cash from operating activities: | |||||||||||
Depreciation | 28,013 | 24,241 | |||||||||
Amortization of intangibles | 2,730 | 1,743 | |||||||||
Expense associated with share-based compensation arrangements | 1,351 | 1,445 | |||||||||
Excess tax benefits from share-based compensation arrangements | (33 | ) | (2 | ) | |||||||
Expense associated with stock grant plans | 85 | 81 | |||||||||
Deferred income taxes (credit) | (269 | ) | 127 | ||||||||
Equity in earnings of investee | (283 | ) | (246 | ) | |||||||
Net (gain) or loss on sale of property, plant and equipment | 68 | (3,418 | ) | ||||||||
Changes in: | |||||||||||
Accounts receivable | (76,723 | ) | (76,642 | ) | |||||||
Inventories | 51,068 | 14,754 | |||||||||
Accounts payable and cash overdraft | 10,864 | 25,078 | |||||||||
Accrued liabilities and other | 39,967 | 32,760 | |||||||||
NET CASH FROM OPERATING ACTIVITIES | 121,409 | 70,528 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant, and equipment | (36,506 | ) | (31,676 | ) | |||||||
Proceeds from sale of property, plant and equipment | 2,682 | 6,463 | |||||||||
Acquisitions, net of cash received | (2,584 | ) | (7,135 | ) | |||||||
Purchases of noncontrolling interest | (1,256 | ) | - | ||||||||
Advances of notes receivable | (4,403 | ) | (2,229 | ) | |||||||
Collections of notes receivable and related interest | 8,784 | 983 | |||||||||
Cash restricted as to use | (734 | ) | - | ||||||||
Other, net | 180 | (95 | ) | ||||||||
NET CASH FROM INVESTING ACTIVITIES | (33,837 | ) | (33,689 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings under revolving credit facilities | 297,340 | 192,475 | |||||||||
Repayments under revolving credit facilities | (311,253 | ) | (192,475 | ) | |||||||
Debt issuance costs | (11 | ) | (11 | ) | |||||||
Proceeds from issuance of common stock | 960 | 297 | |||||||||
Dividends paid to shareholders | (8,050 | ) | (1,710 | ) | |||||||
Distributions to noncontrolling interest | (3,159 | ) | (4,214 | ) | |||||||
Repurchase of common stock | (800 | ) | (4,772 | ) | |||||||
Excess tax benefits from share-based compensation arrangements | 33 | 2 | |||||||||
Other, net | (300 | ) | - | ||||||||
NET CASH FROM FINANCING ACTIVITIES | (25,240 | ) | (10,408 | ) | |||||||
Effect of exchange rate changes on cash | (1,004 | ) | (247 | ) | |||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 61,328 | 26,184 | |||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | - | - | |||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 61,328 | $ | 26,184 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151014006241/en/
Source:
Universal Forest Products
Lynn Afendoulis, (616) 365-1502
Director,
Corporate Communications