UFP Industries Announces Third Quarter Results
Operating Margins Remain Historically Strong
“This quarter once again demonstrated that our balanced business model, management structure, and focus on value-added products have produced structural improvements in our operating margins that have normalized above pre-pandemic levels,” said Chairman and CEO
Missad added, “Our ability to generate cash allows us to maintain a balanced approach to capital allocation, as we invest in new products and drive operational improvements through technology and automation, while providing meaningful returns for shareholders. The UFP team has enhanced our strong culture of hard work and proven results by developing an impressive adaptability to internal change and an ability to manage through challenging markets.”
Third Quarter 2023 Highlights (comparisons on a year-over-year basis):
-
Net sales of
$1.83 billion decreased 21 percent due to a 12 percent decrease in prices and a 9 percent decrease in organic unit sales. - New product sales as a percent of total sales rose to 9.7 percent from 7.8 percent in 2022. The company evaluates new products annually and sunsets (but continues to sell) those that no longer meet the classification of “new”; its goal is to achieve a ratio of new product sales to total sales of 10 percent.
-
Diluted EPS of
$2.10 represents a 21 percent decrease from last year’s record quarter. -
Adjusted EBITDA1 of
$208 million decreased 24 percent while adjusted EBITDA margin1 declined 40 basis points to 11.4 percent, which exceeded the company’s minimum EBITDA margin target.
Capital Allocation
- Acquisitions.
- Capital expenditures. The company continues to target capital investments of
- Dividend payments. On
- Share repurchases. At their
By business segment, the company reported the following third quarter 2023 results:
UFP Retail Solutions
Net sales of
Net sales of
Net sales of
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
Non-GAAP Financial Information
This release includes certain financial information not prepared in accordance with
Net earnings
Net earnings refers to net earnings attributable to controlling interest unless specifically noted.
1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 2023/2022 |
|||||||||||||||||||||||||||||
|
|
Quarter Period |
Year to Date |
||||||||||||||||||||||||||
(In thousands, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||||||||||||||||||
|
|
$ |
1,827,637 |
|
|
100.0 |
% |
$ |
2,322,855 |
|
|
100.0 |
% |
$ |
5,694,031 |
|
|
100.0 |
% |
$ |
7,713,042 |
|
|
100.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
COST OF GOODS SOLD |
|
|
1,463,237 |
|
|
80.1 |
|
|
|
1,872,679 |
|
|
80.6 |
|
|
|
4,571,235 |
|
|
80.3 |
|
|
|
6,281,051 |
|
|
81.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
GROSS PROFIT |
|
|
364,400 |
|
|
19.9 |
|
|
|
450,176 |
|
|
19.4 |
|
|
|
1,122,796 |
|
|
19.7 |
|
|
|
1,431,991 |
|
|
18.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
195,649 |
|
|
10.7 |
|
|
|
214,327 |
|
|
9.2 |
|
|
|
595,035 |
|
|
10.5 |
|
|
|
649,015 |
|
|
8.4 |
|
|
OTHER LOSSES (GAINS), NET |
|
|
1,419 |
|
|
0.1 |
|
|
|
(1,195 |
) |
|
(0.1 |
) |
|
|
5,224 |
|
|
0.1 |
|
|
|
1,341 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS FROM OPERATIONS |
|
|
167,332 |
|
|
9.2 |
|
|
|
237,044 |
|
|
10.2 |
|
|
|
522,537 |
|
|
9.2 |
|
|
|
781,635 |
|
|
10.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
INTEREST AND OTHER |
|
|
(6,177 |
) |
|
(0.3 |
) |
|
|
6,382 |
|
|
0.3 |
|
|
|
(13,043 |
) |
|
(0.2 |
) |
|
|
19,858 |
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS BEFORE INCOME TAXES |
|
|
173,509 |
|
|
9.5 |
|
|
|
230,662 |
|
|
9.9 |
|
|
|
535,580 |
|
|
9.4 |
|
|
|
761,777 |
|
|
9.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
INCOME TAXES |
|
|
39,326 |
|
|
2.2 |
|
|
|
58,561 |
|
|
2.5 |
|
|
|
125,031 |
|
|
2.2 |
|
|
|
188,692 |
|
|
2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
NET EARNINGS |
|
|
134,183 |
|
|
7.3 |
|
|
|
172,101 |
|
|
7.4 |
|
|
|
410,549 |
|
|
7.2 |
|
|
|
573,085 |
|
|
7.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LESS NET LOSS (EARNINGS) ATTRIBUTABLE TO NONCONTROLLING INTEREST |
|
|
(148 |
) |
|
— |
|
|
|
(4,860 |
) |
|
(0.2 |
) |
|
|
316 |
|
|
— |
|
|
|
(13,023 |
) |
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST |
|
$ |
134,035 |
|
|
7.3 |
|
|
$ |
167,241 |
|
|
7.2 |
|
|
$ |
410,865 |
|
|
7.2 |
|
|
$ |
560,062 |
|
|
7.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER SHARE - BASIC |
|
$ |
2.14 |
|
|
|
|
$ |
2.68 |
|
|
|
|
$ |
6.55 |
|
|
|
|
$ |
8.93 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER SHARE - DILUTED |
|
$ |
2.10 |
|
|
|
|
$ |
2.66 |
|
|
|
|
$ |
6.45 |
|
|
|
|
$ |
8.89 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME |
|
$ |
130,422 |
|
|
|
|
$ |
167,624 |
|
|
|
|
$ |
417,518 |
|
|
|
|
$ |
567,409 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
|
|
820 |
|
|
|
|
|
(4,273 |
) |
|
|
|
|
(2,661 |
) |
|
|
|
|
(13,290 |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST |
|
$ |
131,242 |
|
|
|
|
$ |
163,351 |
|
|
|
|
$ |
414,857 |
|
|
|
|
$ |
554,119 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 2023/2022 |
||||||||||||||||||||
|
|
Quarter Period |
||||||||||||||||||
|
|
2023 |
||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||
|
|
$ |
711,381 |
|
$ |
449,885 |
|
$ |
583,960 |
|
|
$ |
81,426 |
|
$ |
985 |
|
|
$ |
1,827,637 |
COST OF GOODS SOLD |
|
|
610,000 |
|
|
355,924 |
|
|
439,152 |
|
|
|
58,814 |
|
|
(653 |
) |
|
|
1,463,237 |
GROSS PROFIT |
|
|
101,381 |
|
|
93,961 |
|
|
144,808 |
|
|
|
22,612 |
|
|
1,638 |
|
|
|
364,400 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
56,001 |
|
|
52,524 |
|
|
75,293 |
|
|
|
14,937 |
|
|
(3,106 |
) |
|
|
195,649 |
OTHER |
|
|
31 |
|
|
8 |
|
|
(45 |
) |
|
|
1,007 |
|
|
418 |
|
|
|
1,419 |
EARNINGS FROM OPERATIONS |
|
$ |
45,349 |
|
$ |
41,429 |
|
$ |
69,560 |
|
|
$ |
6,668 |
|
$ |
4,326 |
|
|
$ |
167,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Quarter Period |
||||||||||||||||||
|
|
2022 |
||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||
|
|
$ |
845,304 |
|
$ |
584,808 |
|
$ |
777,126 |
|
$ |
112,203 |
|
$ |
3,414 |
|
$ |
2,322,855 |
||
COST OF GOODS SOLD |
|
|
767,841 |
|
|
440,975 |
|
|
577,552 |
|
|
82,740 |
|
|
3,571 |
|
|
1,872,679 |
||
GROSS PROFIT |
|
|
77,463 |
|
|
143,833 |
|
|
199,574 |
|
|
29,463 |
|
|
(157) |
|
|
450,176 |
||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
48,435 |
|
|
66,521 |
|
|
89,455 |
|
|
16,752 |
|
|
(6,836) |
|
|
214,327 |
||
OTHER |
|
|
96 |
|
|
14 |
|
|
(265) |
|
|
(994) |
|
|
(46) |
|
|
(1,195) |
||
EARNINGS FROM OPERATIONS |
|
$ |
28,932 |
|
$ |
77,298 |
|
$ |
110,384 |
|
$ |
13,705 |
|
$ |
6,725 |
|
$ |
237,044 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Year to Date |
||||||||||||||||||
|
|
2023 |
||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||
|
|
$ |
2,380,956 |
|
$ |
1,424,546 |
|
$ |
1,650,017 |
|
$ |
235,162 |
|
$ |
3,350 |
|
$ |
5,694,031 |
||
COST OF GOODS SOLD |
|
|
2,064,156 |
|
|
1,091,452 |
|
|
1,246,346 |
|
|
170,818 |
|
|
(1,537) |
|
|
4,571,235 |
||
GROSS PROFIT |
|
|
316,800 |
|
|
333,094 |
|
|
403,671 |
|
|
64,344 |
|
|
4,887 |
|
|
1,122,796 |
||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
170,211 |
|
|
180,153 |
|
|
216,714 |
|
|
42,402 |
|
|
(14,445) |
|
|
595,035 |
||
OTHER |
|
|
4 |
|
|
(84) |
|
|
1,190 |
|
|
4,423 |
|
|
(309) |
|
|
5,224 |
||
EARNINGS FROM OPERATIONS |
|
$ |
146,585 |
|
$ |
153,025 |
|
$ |
185,767 |
|
$ |
17,519 |
|
$ |
19,641 |
|
$ |
522,537 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Year to Date |
||||||||||||||||||
|
|
2022 |
||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||
|
|
$ |
2,959,976 |
|
$ |
1,872,510 |
|
$ |
2,538,973 |
|
$ |
332,186 |
|
$ |
9,397 |
|
$ |
7,713,042 |
||
COST OF GOODS SOLD |
|
|
2,674,996 |
|
|
1,417,006 |
|
|
1,950,671 |
|
|
230,100 |
|
|
8,278 |
|
|
6,281,051 |
||
GROSS PROFIT |
|
|
284,980 |
|
|
455,504 |
|
|
588,302 |
|
|
102,086 |
|
|
1,119 |
|
|
1,431,991 |
||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
159,490 |
|
|
200,987 |
|
|
266,430 |
|
|
49,733 |
|
|
(27,625) |
|
|
649,015 |
||
OTHER |
|
|
634 |
|
|
618 |
|
|
(162) |
|
|
1,085 |
|
|
(834) |
|
|
1,341 |
||
EARNINGS FROM OPERATIONS |
|
$ |
124,856 |
|
$ |
253,899 |
|
$ |
322,034 |
|
$ |
51,268 |
|
$ |
29,578 |
|
$ |
781,635 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 2023/2022 |
||||||||||||||||||||||||
|
|
Quarter Period |
||||||||||||||||||||||
|
|
2023 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
35,046 |
|
|
$ |
32,031 |
|
|
$ |
53,795 |
|
|
$ |
5,237 |
|
|
$ |
8,074 |
|
|
$ |
134,183 |
|
Interest and other |
|
|
32 |
|
|
|
10 |
|
|
|
(1 |
) |
|
|
(104 |
) |
|
|
(6,114 |
) |
|
|
(6,177 |
) |
Income taxes |
|
|
10,271 |
|
|
|
9,388 |
|
|
|
15,766 |
|
|
|
1,535 |
|
|
|
2,366 |
|
|
|
39,326 |
|
Expenses associated with share-based compensation arrangements |
|
|
1,314 |
|
|
|
1,686 |
|
|
|
1,685 |
|
|
|
184 |
|
|
|
3,324 |
|
|
|
8,193 |
|
Net loss (gain) on disposition and impairment of assets |
|
|
35 |
|
|
|
8 |
|
|
|
(14 |
) |
|
|
(200 |
) |
|
|
(112 |
) |
|
|
(283 |
) |
Depreciation expense |
|
|
5,943 |
|
|
|
8,361 |
|
|
|
4,930 |
|
|
|
930 |
|
|
|
7,482 |
|
|
|
27,646 |
|
Amortization of intangibles |
|
|
1,133 |
|
|
|
2,175 |
|
|
|
703 |
|
|
|
563 |
|
|
|
380 |
|
|
|
4,954 |
|
Adjusted EBITDA |
|
$ |
53,774 |
|
|
$ |
53,659 |
|
|
$ |
76,864 |
|
|
$ |
8,145 |
|
|
$ |
15,400 |
|
|
$ |
207,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of |
|
|
7.6 |
% |
|
|
11.9 |
% |
|
|
13.2 |
% |
|
|
10.0 |
% |
|
|
1563.5 |
% |
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Period |
||||||||||||||||||||||
|
|
2022 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
21,496 |
|
|
$ |
56,777 |
|
|
$ |
82,477 |
|
|
$ |
9,292 |
|
|
$ |
2,059 |
|
|
$ |
172,101 |
|
Interest and other |
|
|
16 |
|
|
|
1,202 |
|
|
|
(4 |
) |
|
|
1,212 |
|
|
|
3,956 |
|
|
|
6,382 |
|
Income taxes |
|
|
7,420 |
|
|
|
19,319 |
|
|
|
27,911 |
|
|
|
3,201 |
|
|
|
710 |
|
|
|
58,561 |
|
Expenses associated with share-based compensation arrangements |
|
|
1,041 |
|
|
|
1,198 |
|
|
|
1,090 |
|
|
|
143 |
|
|
|
3,965 |
|
|
|
7,437 |
|
Net loss (gain) on disposition and impairment of assets |
|
|
86 |
|
|
|
13 |
|
|
|
86 |
|
|
|
— |
|
|
|
(599 |
) |
|
|
(414 |
) |
Depreciation expense |
|
|
4,821 |
|
|
|
8,931 |
|
|
|
3,313 |
|
|
|
741 |
|
|
|
7,041 |
|
|
|
24,847 |
|
Amortization of intangibles |
|
|
943 |
|
|
|
2,357 |
|
|
|
797 |
|
|
|
482 |
|
|
|
129 |
|
|
|
4,708 |
|
Adjusted EBITDA |
|
$ |
35,823 |
|
|
$ |
89,797 |
|
|
$ |
115,670 |
|
|
$ |
15,071 |
|
|
$ |
17,261 |
|
|
$ |
273,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of |
|
|
4.2 |
% |
|
|
15.4 |
% |
|
|
14.9 |
% |
|
|
13.4 |
% |
|
|
505.6 |
% |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year to Date |
||||||||||||||||||||||
|
|
2023 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
112,286 |
|
|
$ |
116,446 |
|
|
$ |
142,499 |
|
|
$ |
16,857 |
|
|
$ |
22,461 |
|
|
$ |
410,549 |
|
Interest and other |
|
|
76 |
|
|
|
1,012 |
|
|
|
(7 |
) |
|
|
(4,476 |
) |
|
|
(9,648 |
) |
|
|
(13,043 |
) |
Income taxes |
|
|
34,223 |
|
|
|
35,567 |
|
|
|
43,275 |
|
|
|
5,138 |
|
|
|
6,828 |
|
|
|
125,031 |
|
Expenses associated with share-based compensation arrangements |
|
|
4,244 |
|
|
|
5,485 |
|
|
|
5,492 |
|
|
|
687 |
|
|
|
10,160 |
|
|
|
26,068 |
|
Net loss (gain) on disposition and impairment of assets |
|
|
61 |
|
|
|
(85 |
) |
|
|
(45 |
) |
|
|
(140 |
) |
|
|
(256 |
) |
|
|
(465 |
) |
Depreciation expense |
|
|
17,590 |
|
|
|
24,038 |
|
|
|
14,192 |
|
|
|
2,474 |
|
|
|
22,138 |
|
|
|
80,432 |
|
Amortization of intangibles |
|
|
3,465 |
|
|
|
6,657 |
|
|
|
2,202 |
|
|
|
1,846 |
|
|
|
1,155 |
|
|
|
15,325 |
|
Adjusted EBITDA |
|
$ |
171,945 |
|
|
$ |
189,120 |
|
|
$ |
207,608 |
|
|
$ |
22,386 |
|
|
$ |
52,838 |
|
|
$ |
643,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of |
|
|
7.2 |
% |
|
|
13.3 |
% |
|
|
12.6 |
% |
|
|
9.5 |
% |
|
|
1577.3 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year to Date |
||||||||||||||||||||||
|
|
2022 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
93,888 |
|
|
$ |
188,954 |
|
|
$ |
242,270 |
|
|
$ |
34,136 |
|
|
$ |
13,837 |
|
|
$ |
573,085 |
|
Interest and other |
|
|
56 |
|
|
|
2,730 |
|
|
|
(4 |
) |
|
|
5,855 |
|
|
|
11,221 |
|
|
|
19,858 |
|
Income taxes |
|
|
30,912 |
|
|
|
62,215 |
|
|
|
79,768 |
|
|
|
11,277 |
|
|
|
4,520 |
|
|
|
188,692 |
|
Expenses associated with share-based compensation arrangements |
|
|
3,323 |
|
|
|
3,842 |
|
|
|
3,697 |
|
|
|
466 |
|
|
|
8,651 |
|
|
|
19,979 |
|
Net loss (gain) on disposition and impairment of assets |
|
|
617 |
|
|
|
620 |
|
|
|
62 |
|
|
|
5 |
|
|
|
(952 |
) |
|
|
352 |
|
Depreciation expense |
|
|
13,813 |
|
|
|
22,497 |
|
|
|
10,101 |
|
|
|
2,028 |
|
|
|
20,442 |
|
|
|
68,881 |
|
Amortization of intangibles |
|
|
2,742 |
|
|
|
5,773 |
|
|
|
2,481 |
|
|
|
2,067 |
|
|
|
385 |
|
|
|
13,448 |
|
Adjusted EBITDA |
|
$ |
145,351 |
|
|
$ |
286,631 |
|
|
$ |
338,375 |
|
|
$ |
55,834 |
|
|
$ |
58,104 |
|
|
$ |
884,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of |
|
|
4.9 |
% |
|
|
15.3 |
% |
|
|
13.3 |
% |
|
|
16.8 |
% |
|
|
618.3 |
% |
|
|
11.5 |
% |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) SEPTEMBER 2023/2022 |
||||||||||||||
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
2023 |
|
|
2022 |
|
LIABILITIES AND EQUITY |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
957,197 |
|
$ |
449,135 |
|
Cash Overdraft |
|
$ |
— |
|
$ |
4,174 |
Restricted cash |
|
|
3,761 |
|
|
729 |
|
Accounts payable |
|
|
254,689 |
|
|
323,404 |
Investments |
|
|
37,062 |
|
|
33,113 |
|
Accrued liabilities and other |
|
|
347,499 |
|
|
433,747 |
Accounts receivable |
|
|
712,329 |
|
|
877,776 |
|
Current portion of debt |
|
|
1,539 |
|
|
41,536 |
Inventories |
|
|
747,474 |
|
|
1,006,883 |
|
|
|
|
|
|
|
|
Other current assets |
|
|
64,906 |
|
|
68,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
2,522,729 |
|
|
2,436,363 |
|
TOTAL CURRENT LIABILITIES |
|
|
603,727 |
|
|
802,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
230,387 |
|
|
217,782 |
|
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS |
|
|
273,308 |
|
|
275,417 |
INTANGIBLE ASSETS, NET |
|
|
521,412 |
|
|
440,395 |
|
OTHER LIABILITIES |
|
|
174,143 |
|
|
183,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEMPORARY EQUITY |
|
|
20,191 |
|
|
7,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
|
745,604 |
|
|
644,007 |
|
SHAREHOLDERS' EQUITY |
|
|
2,948,763 |
|
|
2,468,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
4,020,132 |
|
$ |
3,738,547 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
4,020,132 |
|
$ |
3,738,547 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 2023/2022 |
|||||||||
(In thousands) |
|
|
2023 |
|
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
||
Net earnings |
|
$ |
410,549 |
|
|
|
$ |
573,085 |
|
Adjustments to reconcile net earnings to net cash used in operating activities: |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Depreciation |
|
|
80,432 |
|
|
|
|
68,881 |
|
Amortization of intangibles |
|
|
15,325 |
|
|
|
|
13,448 |
|
Expense associated with share-based and grant compensation arrangements |
|
|
26,068 |
|
|
|
|
19,979 |
|
Deferred income taxes (credit) |
|
|
113 |
|
|
|
|
(269 |
) |
Unrealized loss on investment and other |
|
|
362 |
|
|
|
|
8,453 |
|
Equity in loss of investee |
|
|
1,013 |
|
|
|
|
2,740 |
|
Net (gain) loss on sale and disposition of assets |
|
|
(465 |
) |
|
|
|
352 |
|
Changes in: |
|
|
|
|
|
|
|
||
Accounts receivable |
|
|
(82,883 |
) |
|
|
|
(137,607 |
) |
Inventories |
|
|
230,559 |
|
|
|
|
(36,259 |
) |
Accounts payable and cash overdraft |
|
|
49,093 |
|
|
|
|
(11,247 |
) |
Accrued liabilities and other |
|
|
(18,363 |
) |
|
|
|
31,490 |
|
NET CASH FROM OPERATING ACTIVITIES |
|
|
711,803 |
|
|
|
|
533,046 |
|
|
|
|
|
|
|
|
|
||
CASH FLOWS USED IN INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
||
Purchases of property, plant, and equipment |
|
|
(130,947 |
) |
|
|
|
(113,725 |
) |
Proceeds from sale of property, plant and equipment |
|
|
2,211 |
|
|
|
|
2,303 |
|
Acquisitions, net of cash received and purchase of equity method investment |
|
|
(52,383 |
) |
|
|
|
(105,212 |
) |
Purchases of investments |
|
|
(26,333 |
) |
|
|
|
(16,925 |
) |
Proceeds from sale of investments |
|
|
22,101 |
|
|
|
|
10,036 |
|
Other |
|
|
(2,092 |
) |
|
|
|
911 |
|
|
|
|
(187,443 |
) |
|
|
|
(222,612 |
) |
|
|
|
|
|
|
|
|
||
CASH FLOWS USED IN FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||
Borrowings under revolving credit facilities |
|
|
18,915 |
|
|
|
|
570,700 |
|
Repayments under revolving credit facilities |
|
|
(21,929 |
) |
|
|
|
(571,075 |
) |
Repayments of debt |
|
|
(29 |
) |
|
|
|
(1,957 |
) |
Contingent consideration payments and other |
|
|
(6,179 |
) |
|
|
|
(2,564 |
) |
Proceeds from issuance of common stock |
|
|
2,087 |
|
|
|
|
2,110 |
|
Dividends paid to shareholders |
|
|
(49,723 |
) |
|
|
|
(43,420 |
) |
Distributions to noncontrolling interest |
|
|
(7,355 |
) |
|
|
|
(12,023 |
) |
Repurchase of common stock |
|
|
(62,076 |
) |
|
|
|
(93,215 |
) |
Other |
|
|
65 |
|
|
|
|
(210 |
) |
|
|
|
(126,224 |
) |
|
|
|
(151,654 |
) |
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash |
|
|
3,199 |
|
|
|
|
(139 |
) |
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
401,335 |
|
|
|
|
158,641 |
|
|
|
|
|
|
|
|
|
||
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
559,623 |
|
|
|
|
291,223 |
|
|
|
|
|
|
|
|
|
||
ALL CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
960,958 |
|
|
|
$ |
449,864 |
|
|
|
|
|
|
|
|
|
||
Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
|
|
|
|
||
Cash and cash equivalents, beginning of period |
|
$ |
559,397 |
|
|
|
$ |
286,662 |
|
Restricted cash, beginning of period |
|
|
226 |
|
|
|
|
4,561 |
|
All cash and cash equivalents, beginning of period |
|
$ |
559,623 |
|
|
|
$ |
291,223 |
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
$ |
957,197 |
|
|
|
$ |
449,135 |
|
Restricted cash, end of period |
|
|
3,761 |
|
|
|
|
729 |
|
All cash and cash equivalents, end of period |
|
$ |
960,958 |
|
|
|
$ |
449,864 |
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231031808557/en/
VP of Investor Relations
(616) 365-1555
Source: