Universal Forest Products Posts Record First Quarter Results
At the beginning of 2002, the Company adopted a new accounting standard, which discontinued the amortization of goodwill. Under the new standard, pro forma diluted earnings per share for the first quarter of 2001 would have been $0.28 compared to the reported amount of $0.25.
"Our performance this quarter is a result of the exceptional execution by the people of Universal," said William G. Currie, UFPI's chief executive officer. "We were also aided by a combination of factors, including a relatively mild winter, a favorable lumber market, a redemption of our shares, and sound acquisitions we completed in 2001."
By market, Universal posted first quarter sales of:
* $147.2 million in D-I-Y/retail, up 15.3% over last year;
* $68.5 million in site-built construction, an increase of 10.9% over last year;
* $67.2 million in manufactured housing, a 35.8% increase over last year; and
* $58.7 million in industrial/agricultural, up 30.1% over last year.
The Company continues to target annual sales growth of 6% to 10% and diluted earnings per share growth of 18% to 22%, which includes the effect of discontinuing goodwill amortization in 2002.
Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 11:00 a.m. EDT on Tuesday, April 16, 2002. The conference call will be hosted by William G. Currie and will be available for analysts and institutional investors domestically at 800-521-5414 or internationally at 303-224-6997. Use conference call ID #1439502. The conference call will be available simultaneously, and in its entirety, to all interested investors and news media through a web cast at www.ufpi.com .
Universal Forest Products markets, manufactures, and engineers products for D-I-Y retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. For information about Universal Forest Products on the Internet, please contact the Company's web site at www.ufpi.com , or call 888-Buy-UFPI.
Included in this report are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and 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. 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 are the following: Adverse lumber market trends, competitive activity, negative economic trends, government regulations, and weather. These risk factors and additional information are included in the company's reports on Form 10K and 10Q on file with the Securities and Exchange Commission.
Financial Highlights to Follow
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2002/2001
Quarter Period
(In thousands, except per share data) 2002 2001
NET SALES $341,656 100% $284,069 100%
COST OF GOODS SOLD 290,379 84.99 240,950 84.82
GROSS PROFIT 51,277 15.01 43,119 15.18
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 37,798 11.06 32,273 11.36
EARNINGS FROM OPERATIONS 13,479 3.95 10,846 3.82
INTEREST EXPENSE 2,908 0.85 3,199 1.13
INTEREST REVENUE (113) -0.03 (72) -0.03
2,795 0.82 3,127 1.10
EARNINGS BEFORE INCOME TAXES,
MINORITY INTEREST AND EQUITY
IN EARNINGS (LOSS) OF INVESTEE 10,684 3.13 7,719 2.72
INCOME TAXES 3,973 1.16 2,856 1.01
EARNINGS BEFORE MINORITY
INTEREST AND EQUITY IN
EARNINGS OF INVESTEE 6,711 1.96 4,863 1.71
MINORITY INTEREST (629) -0.18 (67) -0.02
EQUITY IN EARNINGS
OF INVESTEE - 0.00 181 0.06
REPORTED NET EARNINGS $6,082 1.78 $4,977 1.75
ADD: GOODWILL AMORTIZATION,
net of tax 695 0.24
ADJUSTED NET EARNINGS $6,082 1.78 $5,672 2.00
REPORTED EARNINGS PER SHARE - BASIC $0.33 $0.25
ADD: GOODWILL AMORTIZATION,
net of tax 0.04
ADJUSTED EARNINGS PER SHARE - BASIC $0.33 $0.29
REPORTED EARNINGS PER SHARE - DILUTED $0.32 $0.25
ADD: GOODWILL AMORTIZATION,
net of tax 0.03
ADJUSTED EARNINGS PER SHARE - DILUTED $0.32 $0.28
WEIGHTED AVERAGE SHARES
OUTSTANDING 18,210 19,714
WEIGHTED AVERAGE SHARES
OUTSTANDING WITH COMMON
STOCK EQUIVALENTS 19,024 20,243
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2002/2001
Year to Date
(In thousands, except per share data) 2002 2001
NET SALES $341,656 100% $284,069 100%
COST OF GOODS SOLD 290,379 84.99 240,950 84.82
GROSS PROFIT 51,277 15.01 43,119 15.18
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 37,798 11.06 32,273 11.36
EARNINGS FROM OPERATIONS 13,479 3.95 10,846 3.82
INTEREST EXPENSE 2,908 0.85 3,199 1.13
INTEREST REVENUE (113) -0.03 (72) -0.03
2,795 0.82 3,127 1.10
EARNINGS BEFORE INCOME TAXES,
MINORITY INTEREST AND EQUITY
IN EARNINGS (LOSS) OF INVESTEE 10,684 3.13 7,719 2.72
INCOME TAXES 3,973 1.16 2,856 1.01
EARNINGS BEFORE MINORITY
INTEREST AND EQUITY IN
EARNINGS OF INVESTEE 6,711 1.96 4,863 1.71
MINORITY INTEREST (629) -0.18 (67) -0.02
EQUITY IN EARNINGS
OF INVESTEE - 0.00 181 0.06
REPORTED NET EARNINGS $6,082 1.78 $4,977 1.75
ADD: GOODWILL AMORTIZATION,
net of tax 695 0.24
ADJUSTED NET EARNINGS $6,082 1.78 $5,672 2.00
REPORTED EARNINGS PER SHARE - BASIC $0.33 $0.25
ADD: GOODWILL AMORTIZATION,
net of tax 0.04
ADJUSTED EARNINGS PER SHARE - BASIC $0.33 $0.29
REPORTED EARNINGS PER SHARE - DILUTED $0.32 $0.25
ADD: GOODWILL AMORTIZATION,
net of tax 0.03
ADJUSTED EARNINGS PER SHARE - DILUTED $0.32 $0.28
WEIGHTED AVERAGE SHARES
OUTSTANDING 18,210 19,714
WEIGHTED AVERAGE SHARES
OUTSTANDING WITH COMMON
STOCK EQUIVALENTS 19,024 20,243
SUPPLEMENTAL SALES DATA
Quarter Period
Market Classification 2002 % 2001 %
Do-It-Yourself $147,224 43% $127,674 45%
Site-Built Construction 68,485 20% 61,736 22%
Manufactured Housing 67,200 20% 49,489 17%
Industrial and Other 58,747 17% 45,170 16%
Total $341,656 100% $284,069 100%
SUPPLEMENTAL SALES DATA
Year to Date
Market Classification 2002 % 2001 %
Do-It-Yourself $147,224 43% $127,674 45%
Site-Built Construction 68,485 20% 61,736 22%
Manufactured Housing 67,200 20% 49,489 17%
Industrial and Other 58,747 17% 45,170 16%
Total $341,656 100% $284,069 100%
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 2002/2001
(In thousands)
ASSETS 2002 2001 LIABILITIES AND
SHAREHOLDERS'
EQUITY 2002 2001
CURRENT ASSETS CURRENT LIABILITIES
Cash and cash
equivalents $12,503 $5,273 Notes payable $2,025 $795
Restricted cash Accounts payable
equivalents - 1,281 and accrued
Accounts liabilities 111,567 89,798
receivable 135,218 105,338 Current portion
Inventories 167,661 148,187 of long-term
Other current debt and capital
assets 3,472 8,852 leases 20,512 18,260
TOTAL CURRENT TOTAL CURRENT
ASSETS 318,854 268,931 LIABILITIES 134,104 108,853
OTHER ASSETS 6,548 11,758 LONG-TERM DEBT
AND CAPITAL
GOODWILL AND LEASES, less
NON-COMPETE 123,523 113,671 current portion 240,174 197,336
OTHER
LIABILITIES 24,962 18,458
PROPERTY, PLANT
AND EQUIPMENT, SHAREHOLDERS'
NET 187,531 170,752 EQUITY 237,216 240,465
TOTAL LIABILITIES
AND SHAREHOLDERS'
TOTAL ASSETS $636,456 565,112 EQUITY $636,456 $565,112
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2002/2001
(In thousands) 2002 2001
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net earnings $6,082 $4,977
Adjustments to reconcile net
earnings to net cash
from operating activities:
Depreciation 5,611 4,577
Amortization of non-compete
agreements and goodwill 301 1,045
Loss on sale or impairment of
property, plant and equipment 66 -
Changes in:
Accounts receivable (46,490) (37,032)
Inventories (44,856) (23,587)
Accounts payable 22,111 22,600
Accrued liabilities and other 915 (7,198)
NET CASH FROM OPERATING
ACTIVITIES (56,260) (34,618)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property, plant, and
equipment (5,255) (7,781)
Acquisitions, net of cash received (359) (10,498)
Proceeds from sale of property,
plant and equipment 161 481
Other 1,222 (391)
NET CASH FROM INVESTING
ACTIVITIES (4,231) (18,189)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net borrowings under revolving
credit facilities and notes payable 86,453 58,759
Repayment of long-term debt (158) (2,864)
Proceeds from issuance of common
stock 62 48
Distributions to minority
shareholder (250) -
Repurchase of common stock (36,000) (255)
NET CASH FROM FINANCING
ACTIVITIES 50,107 55,688
NET CHANGE IN CASH AND CASH
EQUIVALENTS (10,384) 2,881
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 22,887 2,392
CASH AND CASH EQUIVALENTS, END OF
PERIOD $12,503 $5,273
SOURCE Universal Forest Products
CONTACT: Michael R. Cole, Chief Financial Officer of Universal Forest Products, +1-616-364-6161; or Jim Ankner, Vice President of Fleishman Hillard, +1-212-453-2198, for Universal Forest Products