UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 6, 2008
Universal Forest Products, Inc.
(Exact name of registrant as specified in its charter)
Michigan | 0-22684 | 38-1465835 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2801 East Beltline, NE Grand Rapids, Michigan |
49525 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (616) 364-6161
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 | Results of Operations and Financial Condition |
On February 6, 2008, the Registrant issued a press release announcing its financial results for the quarter and year ended December 29, 2007. A copy of the Registrants press release is attached as Exhibit 99(a) to this Current Report.
Item 9.01 | Financial Statements, Pro Forma Financial Information, and Exhibits |
(c) Exhibits
99(a) | Press Release dated February 6, 2008. |
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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.
UNIVERSAL FOREST PRODUCTS, INC. |
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(Registrant) |
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Dated: February 6, 2008
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By: | /s/ Michael R. Cole | ||
Michael R. Cole, Chief Financial Officer and Treasurer |
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EXHIBIT INDEX
Exhibit Number | Document | |
99(a)
|
Press Release dated February 6, 2008. |
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| D-I-Y/retail annual sales for 2007 of $990.7, a 3.0% increase over 2006. Fourth quarter 2007 sales to this market were $165.6 million, up 10.5% over the same period last year. |
| Site-built construction annual sales of $592.1 million for 2007, down 27.1% from 2006. Fourth quarter 2007 sales to this market were $132.4 million, a decrease of 16.5% from 2006. |
| Industrial sales for the year of $588.2 million, an increase of 6.8% over 2006. Fourth quarter 2007 sales increased 16.0% over the same period last year to $135.8 million. |
| Manufactured housing sales for 2007 of $390.5 million, up 2.2% over 2006. Fourth quarter sales to this market were up 7.9% over the fourth quarter of 2006 to $87.3 million. The Company posted those results despite an estimated 18.5% drop in annual shipments of HUD-code homes in 2007 from 2006. Annual data for fourth-quarter modular shipments was not available; year-to-date modular shipments were down 17.9% in the third quarter 2007 from the same period in 2006. |
| A continued decline in housing starts for the year and a soft DIY market. | ||
| A continued depressed lumber market as mills face lower demand and as the global supply of wood continues to expand. | ||
| Persistent price pressure, especially early in the year, from competition among suppliers who continue to offer price concessions to win business. | ||
| Continued market share gains in the site-built market due in part to gains in multifamily and commercial construction, and in the industrial market. | ||
| Maintaining a strong market share with DIY and manufactured housing customers. | ||
| No permanent plant closures (or closures that could result in asset impairment charges). Any plant consolidations or closures will be temporary in nature, creating no asset impairment charges. |
Quarter Period | Year to Date | |||||||||||||||||||||||||||||||
(In thousands, except per share data) | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||||||||||||||
NET SALES |
$ | 512,637 | 100 | % | $ | 499,243 | 100 | % | $ | 2,513,178 | 100 | % | $ | 2,664,572 | 100 | % | ||||||||||||||||
COST OF GOODS SOLD |
460,998 | 89.93 | 431,115 | 86.35 | 2,204,149 | 87.70 | 2,282,890 | 85.68 | ||||||||||||||||||||||||
GROSS PROFIT |
51,639 | 10.07 | 68,128 | 13.65 | 309,029 | 12.30 | 381,682 | 14.32 | ||||||||||||||||||||||||
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES |
56,470 | 11.02 | 56,792 | 11.38 | 248,782 | 9.90 | 257,796 | 9.67 | ||||||||||||||||||||||||
NET LOSS ON SALE OR IMPAIRMENT OF
PROPERTY, PLANT & EQUIPMENT |
6,768 | 1.32 | (64 | ) | -0.01 | 6,755 | 0.27 | 141 | 0.01 | |||||||||||||||||||||||
EARNINGS FROM OPERATIONS |
(11,599 | ) | -2.26 | 11,400 | 2.28 | 53,492 | 2.13 | 123,745 | 4.64 | |||||||||||||||||||||||
OTHER EXPENSE (INCOME) |
||||||||||||||||||||||||||||||||
Interest expense |
3,576 | 0.70 | 3,296 | 0.66 | 17,033 | 0.68 | 14,053 | 0.53 | ||||||||||||||||||||||||
Interest income |
(516 | ) | -0.10 | (787 | ) | -0.16 | (2,150 | ) | -0.09 | (2,443 | ) | -0.09 | ||||||||||||||||||||
3,060 | 0.60 | 2,509 | 0.50 | 14,883 | 0.59 | 11,610 | 0.44 | |||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES
AND MINORITY INTEREST |
(14,659 | ) | -2.86 | 8,891 | 1.78 | 38,609 | 1.54 | 112,135 | 4.21 | |||||||||||||||||||||||
INCOME TAXES |
(4,237 | ) | -0.83 | (203 | ) | -0.04 | 15,396 | 0.61 | 38,760 | 1.45 | ||||||||||||||||||||||
EARNINGS BEFORE MINORITY INTEREST |
(10,422 | ) | -2.03 | 9,094 | 1.82 | 23,213 | 0.92 | 73,375 | 2.75 | |||||||||||||||||||||||
MINORITY INTEREST |
(558 | ) | -0.11 | 146 | 0.03 | (2,168 | ) | -0.09 | (3,250 | ) | -0.12 | |||||||||||||||||||||
NET EARNINGS |
$ | (10,980 | ) | -2.14 | $ | 9,240 | 1.85 | $ | 21,045 | 0.84 | $ | 70,125 | 2.63 | |||||||||||||||||||
EARNINGS PER SHARE BASIC |
$ | (0.58 | ) | $ | 0.49 | $ | 1.10 | $ | 3.73 | |||||||||||||||||||||||
EARNINGS PER SHARE DILUTED |
$ | (0.57 | ) | $ | 0.48 | $ | 1.09 | $ | 3.62 | |||||||||||||||||||||||
WEIGHTED AVERAGE SHARES
OUTSTANDING |
19,016 | 18,918 | 19,056 | 18,820 | ||||||||||||||||||||||||||||
WEIGHTED AVERAGE SHARES
OUTSTANDING WITH COMMON
STOCK EQUIVALENTS |
19,190 | 19,375 | 19,362 | 19,370 |
Quarter Period | Year to Date | |||||||||||||||||||||||||||||||
Market Classification | 2007 | % | 2006 | % | 2007 | % | 2006 | % | ||||||||||||||||||||||||
Do-It-Yourself/Retail |
$ | 165,619 | 32 | % | $ | 149,902 | 30 | % | $ | 990,659 | 39 | % | $ | 962,240 | 36 | % | ||||||||||||||||
Site-Built Construction |
132,397 | 25 | % | 158,477 | 31 | % | 592,148 | 23 | % | 811,923 | 30 | % | ||||||||||||||||||||
Industrial |
135,752 | 26 | % | 117,069 | 23 | % | 588,195 | 23 | % | 550,669 | 20 | % | ||||||||||||||||||||
Manufactured Housing |
87,326 | 17 | % | 80,962 | 16 | % | 390,483 | 15 | % | 382,203 | 14 | % | ||||||||||||||||||||
Total Gross Sales |
521,094 | 100 | % | 506,410 | 100 | % | 2,561,485 | 100 | % | 2,707,035 | 100 | % | ||||||||||||||||||||
Sales Allowances |
(8,457 | ) | (7,167 | ) | (48,307 | ) | (42,463 | ) | ||||||||||||||||||||||||
Total Net Sales |
$ | 512,637 | $ | 499,243 | $ | 2,513,178 | $ | 2,664,572 | ||||||||||||||||||||||||
ASSETS | 2007 | 2006 | ||||||
CURRENT ASSETS |
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Cash and cash equivalents |
$ | 43,605 | $ | 51,108 | ||||
Accounts receivable |
142,562 | 148,242 | ||||||
Inventories |
235,868 | 245,118 | ||||||
Assets held for sale |
33,624 | |||||||
Other current assets |
44,866 | 30,667 | ||||||
TOTAL CURRENT ASSETS |
500,525 | 475,135 | ||||||
OTHER ASSETS |
8,094 | 7,404 | ||||||
INTANGIBLE ASSETS, NET |
174,121 | 180,567 | ||||||
PROPERTY, PLANT
AND EQUIPMENT, NET |
274,260 | 250,335 | ||||||
TOTAL ASSETS |
$ | 957,000 | $ | 913,441 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | 2007 | 2006 | ||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 83,505 | $ | 94,441 | ||||
Accrued liabilities |
78,275 | 97,101 | ||||||
Current portion of long-term
debt and capital leases |
945 | 680 | ||||||
TOTAL CURRENT LIABILITIES |
162,725 | 192,222 | ||||||
LONG-TERM DEBT AND CAPITAL
LEASES, less current portion |
205,126 | 169,417 | ||||||
OTHER LIABILITIES |
52,481 | 37,060 | ||||||
SHAREHOLDERS EQUITY |
536,668 | 514,742 | ||||||
TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY |
$ | 957,000 | $ | 913,441 | ||||
(In thousands) | 2007 | 2006 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net earnings |
$ | 21,045 | $ | 70,125 | ||||
Adjustments to reconcile net earnings to net cash
from operating activities: |
||||||||
Depreciation |
39,547 | 33,771 | ||||||
Amortization of intangibles |
8,034 | 5,751 | ||||||
Expense associated with share-based compensation arrangements |
505 | 972 | ||||||
Expense associated with stock grant plans |
174 | 197 | ||||||
Deferred income taxes |
(4,134 | ) | (1,100 | ) | ||||
Minority interest |
2,168 | 3,250 | ||||||
Gain on sale of interest in subsidiary |
(140 | ) | | |||||
Net loss on sale or impairment of property, plant and equipment |
6,755 | 141 | ||||||
Changes in: |
||||||||
Accounts receivable |
19,538 | 41,912 | ||||||
Inventories |
27,795 | 22,262 | ||||||
Accounts payable |
(9,569 | ) | (14,576 | ) | ||||
Accrued liabilities and other |
(23,885 | ) | (6,385 | ) | ||||
Excess tax benefits from share-based compensation arrangements |
(755 | ) | (3,998 | ) | ||||
NET CASH FROM OPERATING ACTIVITIES |
87,078 | 152,322 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchase of property, plant, and equipment |
(39,360 | ) | (43,504 | ) | ||||
Acquisitions, net of cash received |
(57,087 | ) | (71,814 | ) | ||||
Proceeds from sale of interest in subsidiary |
400 | | ||||||
Proceeds from sale of property, plant and equipment |
4,769 | 1,245 | ||||||
Advances on notes receivable |
(1,002 | ) | | |||||
Collection of notes receivable |
347 | 1,614 | ||||||
Other, net |
(38 | ) | 754 | |||||
NET CASH FROM INVESTING ACTIVITIES |
(91,971 | ) | (111,705 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Net (repayments) borrowings under revolving credit facilities |
34,648 | (37,700 | ) | |||||
Repayment of long-term debt |
(28,466 | ) | (3,228 | ) | ||||
Proceeds from issuance of common stock |
3,539 | 5,938 | ||||||
Distributions to minority shareholder |
(1,797 | ) | (2,586 | ) | ||||
Dividends paid to shareholders |
(2,185 | ) | (2,072 | ) | ||||
Repurchase of common stock |
(8,777 | ) | | |||||
Excess tax benefits from share-based compensation arrangements |
755 | 3,998 | ||||||
Other, net |
(327 | ) | (74 | ) | ||||
NET CASH FROM FINANCING ACTIVITIES |
(2,610 | ) | (35,724 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
(7,503 | ) | 4,893 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD |
51,108 | 46,215 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 43,605 | $ | 51,108 | ||||