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): October 15, 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 October 15, 2008, the Registrant issued a press release announcing its financial results for the quarter ended September 27, 2008. 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 October 15, 2008. |
2
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.
(Registrant)
Dated: October 15, 2008
By: /s/ Michael R. Cole
Michael R. Cole, Chief Financial Officer
and Treasurer
3
EXHIBIT INDEX
Exhibit Number | Document | |
99(a)
|
Press Release dated October 15, 2008. |
4
Quarter Period | Year to Date | |||||||||||||||||||||||||||||||
(In thousands, except per share data) | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||||||||
NET SALES |
$ | 610,744 | 100 | % | $ | 678,398 | 100 | % | $ | 1,808,741 | 100 | % | $ | 2,000,541 | 100 | % | ||||||||||||||||
COST OF GOODS SOLD |
545,222 | 89.3 | 596,233 | 87.9 | 1,603,521 | 88.7 | 1,743,151 | 87.1 | ||||||||||||||||||||||||
GROSS PROFIT |
65,522 | 10.7 | 82,165 | 12.1 | 205,220 | 11.3 | 257,390 | 12.9 | ||||||||||||||||||||||||
SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSES |
58,046 | 9.5 | 58,792 | 8.7 | 178,302 | 9.9 | 192,299 | 9.6 | ||||||||||||||||||||||||
NET LOSS ON DISPOSITION OF ASSETS AND
OTHER IMPAIRMENT
AND EXIT CHARGES |
6,211 | 1.0 | | | 7,426 | 0.4 | | | ||||||||||||||||||||||||
EARNINGS (LOSS) FROM
OPERATIONS |
1,265 | 0.2 | 23,373 | 3.4 | 19,492 | 1.1 | 65,091 | 3.3 | ||||||||||||||||||||||||
Interest expense |
2,705 | 0.4 | 4,367 | 0.6 | 9,589 | 0.5 | 13,457 | 0.7 | ||||||||||||||||||||||||
Interest income |
(211 | ) | | (494 | ) | (0.1 | ) | (763 | ) | | (1,634 | ) | (0.1 | ) | ||||||||||||||||||
2,494 | 0.4 | 3,873 | 0.6 | 8,826 | 0.5 | 11,823 | 0.6 | |||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES
AND MINORITY INTEREST |
(1,229 | ) | (0.2 | ) | 19,500 | 2.9 | 10,666 | 0.6 | 53,268 | 2.7 | ||||||||||||||||||||||
INCOME TAXES |
535 | 0.1 | 7,383 | 1.1 | 4,655 | 0.3 | 19,633 | 1.0 | ||||||||||||||||||||||||
EARNINGS (LOSS)
BEFORE MINORITY
INTEREST |
(1,764 | ) | (0.3 | ) | 12,117 | 1.8 | 6,011 | 0.3 | 33,635 | 1.7 | ||||||||||||||||||||||
MINORITY INTEREST |
(187 | ) | | (778 | ) | (0.1 | ) | (875 | ) | | (1,610 | ) | (0.1 | ) | ||||||||||||||||||
NET EARNINGS (LOSS) |
$ | (1,951 | ) | (0.3 | ) | $ | 11,339 | 1.7 | $ | 5,136 | 0.3 | $ | 32,025 | 1.6 | ||||||||||||||||||
EARNINGS (LOSS) PER
SHARE BASIC |
$ | (0.10 | ) | $ | 0.59 | $ | 0.27 | $ | 1.68 | |||||||||||||||||||||||
EARNINGS (LOSS) PER
SHARE DILUTED |
$ | (0.10 | ) | $ | 0.59 | $ | 0.27 | $ | 1.65 | |||||||||||||||||||||||
WEIGHTED AVERAGE
SHARES
OUTSTANDING FOR
BASIC EARNINGS
(LOSS) |
19,092 | 19,097 | 19,045 | 19,070 | ||||||||||||||||||||||||||||
WEIGHTED AVERAGE
SHARES
OUTSTANDING FOR
DILUTED EARNINGS
(LOSS) |
19,092 | 19,361 | 19,233 | 19,419 |
Quarter Period | Year to Date | |||||||||||||||||||||||||||||||
Market Classification | 2008 | % | 2007 | % | 2008 | % | 2007 | % | ||||||||||||||||||||||||
Do-It-Yourself/Retail |
$ | 251,559 | 40 | % | $ | 267,291 | 39 | % | $ | 758,898 | 41 | % | $ | 823,173 | 40 | % | ||||||||||||||||
Site-Built
Construction |
119,772 | 19 | % | 158,035 | 23 | % | 361,430 | 20 | % | 457,663 | 23 | % | ||||||||||||||||||||
Industrial |
166,327 | 27 | % | 157,836 | 22 | % | 480,947 | 26 | % | 455,129 | 22 | % | ||||||||||||||||||||
Manufactured Housing |
85,215 | 14 | % | 110,006 | 16 | % | 245,713 | 13 | % | 304,426 | 15 | % | ||||||||||||||||||||
Total Gross Sales |
622,873 | 100 | % | 693,168 | 100 | % | 1,846,988 | 100 | % | 2,040,391 | 100 | % | ||||||||||||||||||||
Sales Allowances |
(12,129 | ) | (14,770 | ) | (38,247 | ) | (39,850 | ) | ||||||||||||||||||||||||
Total Net Sales |
$ | 610,744 | $ | 678,398 | $ | 1,808,741 | $ | 2,000,541 | ||||||||||||||||||||||||
(In thousands) | ||||||||
ASSETS | 2008 | 2007 | ||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 31,459 | $ | 46,747 | ||||
Accounts receivable |
230,106 | 191,023 | ||||||
Inventories |
197,843 | 228,799 | ||||||
Assets held for sale |
11,950 | 25,411 | ||||||
Other current assets |
46,247 | 31,669 | ||||||
TOTAL CURRENT ASSETS |
517,605 | 523,649 | ||||||
OTHER ASSETS |
7,587 | 7,744 | ||||||
INTANGIBLE ASSETS, NET |
183,512 | 180,174 | ||||||
PROPERTY, PLANT
AND EQUIPMENT, NET |
250,078 | 283,179 | ||||||
TOTAL ASSETS |
$ | 958,782 | $ | 994,746 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | 2008 | 2007 | ||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 101,430 | $ | 105,938 | ||||
Accrued liabilities |
92,458 | 85,997 | ||||||
Current portion of long-term
debt and capital leases |
445 | 1,086 | ||||||
TOTAL CURRENT LIABILITIES |
194,333 | 193,021 | ||||||
LONG-TERM DEBT AND
CAPITAL LEASE OBLIGATIONS, less current portion |
166,713 | 197,435 | ||||||
OTHER LIABILITIES |
52,346 | 53,168 | ||||||
SHAREHOLDERS EQUITY |
545,390 | 551,122 | ||||||
TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY |
$ | 958,782 | $ | 994,746 | ||||
(In thousands) | 2008 | 2007 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net earnings |
$ | 5,136 | $ | 32,025 | ||||
Adjustments to reconcile net earnings to net cash
from operating activities: |
||||||||
Depreciation |
28,929 | 29,105 | ||||||
Amortization of intangibles |
7,322 | 6,402 | ||||||
Expense associated with share-based compensation arrangements |
875 | 391 | ||||||
Expense associated with stock grant plans |
95 | 160 | ||||||
Deferred income taxes |
(137 | ) | (255 | ) | ||||
Minority interest |
875 | 1,610 | ||||||
Gain on sale of interest in subsidiary |
| (140 | ) | |||||
Net loss on disposition of assets and other impairment and
exit charges |
6,165 | 32 | ||||||
Changes in: |
||||||||
Accounts receivable |
(85,884 | ) | (30,298 | ) | ||||
Inventories |
40,113 | 34,736 | ||||||
Accounts payable |
16,395 | 12,874 | ||||||
Accrued liabilities and other |
13,592 | (5,483 | ) | |||||
Excess tax benefits from share-based compensation arrangements |
(162 | ) | (745 | ) | ||||
NET CASH FROM OPERATING ACTIVITIES |
33,314 | 80,414 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchase of property, plant, and equipment |
(13,959 | ) | (26,909 | ) | ||||
Acquisitions, net of cash received |
(23,338 | ) | (57,087 | ) | ||||
Proceeds from sale of interest in subsidiary |
| 400 | ||||||
Proceeds from sale of property, plant and equipment |
30,152 | 3,551 | ||||||
Advances on notes receivable |
(997 | ) | (122 | ) | ||||
Collection of notes receivable |
500 | 151 | ||||||
Other, net |
(52 | ) | (6 | ) | ||||
NET CASH FROM INVESTING ACTIVITIES |
(7,694 | ) | (80,022 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Net (repayments) borrowings under revolving credit facilities |
(36,657 | ) | 27,204 | |||||
Repayment of long-term debt |
(2,332 | ) | (28,200 | ) | ||||
Proceeds from issuance of common stock |
2,762 | 3,321 | ||||||
Distributions to minority shareholder |
(961 | ) | (1,225 | ) | ||||
Investment received from minority shareholder |
419 | | ||||||
Dividends paid to shareholders |
(1,139 | ) | (1,047 | ) | ||||
Repurchase of common stock |
| (5,273 | ) | |||||
Excess tax benefits from share-based compensation arrangements |
162 | 745 | ||||||
Other, net |
(20 | ) | (278 | ) | ||||
NET CASH FROM FINANCING ACTIVITIES |
(37,766 | ) | (4,753 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
(12,146 | ) | (4,361 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
43,605 | 51,108 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 31,459 | $ | 46,747 | ||||