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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 16, 2013

Universal Forest Products, Inc.
(Exact name of registrant as specified in its charter)

Michigan
(State or other Jurisdiction
of Incorporation)
0-22684
(Commission File Number)
38-1465835
(IRS Employer Identification No.)

2801 East Beltline, NE
Grand Rapids, Michigan
(Address of Principal Executive Offices)
 
49525
(Zip Code)

Registrant's 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 16, 2013, the Registrant issued a press release announcing its financial results for the quarter ended September 28, 2013.  A copy of the Registrant’s 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 16, 2013.

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 16, 2013
By:
/s/ Michael R. Cole
 
 
 
Michael R. Cole, Chief Financial Officer
 
 
and Treasurer
 

3
EXHIBIT INDEX

Exhibit Number
 
Document
 
 
 
 
Press Release dated October 16, 2013.
 
 
4
Exhibit 99(a)
 
 
News release
 
---------------AT THE COMPANY---------------
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502

FOR IMMEDIATE RELEASE
WEDNESDAY, October 16, 2013
 
UFPI Q3 2013 earnings more than triple; sales up by more than 22 percent
 
–Double-digit sales increases in all markets–

GRAND RAPIDS, Mich., Oct. 16, 2013 – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced third-quarter 2013 results, including a 22.2 percent increase in net sales to $651.8 million, up from net sales of $533.4 million in the third quarter of 2012. Net earnings for the third quarter of 2013 were $14.1 million, or $0.71 per diluted share, compared to net earnings of $4.2 million, or $0.21 per diluted share, for the same quarter of 2012. Universal saw strong sales growth in each of its markets.

“I am very pleased with our third-quarter results and especially with our people, who drove strong performance in the quarter and made us a better company than we were a year ago,” said CEO Matthew J. Missad. “We saw robust growth in each of our markets, and we enhanced margins in a number of areas.

“In addition, our teams were successful in improving operations that were under-performing or unprofitable in 2012,” Missad said. “They’re working diligently to grow sales and profitability, and we’re seeing the results of their hard work.  We still have many areas for improvement, but this truly is an exciting time to be part of the UFPI family of companies.”

Missad said the Company remains focused on its goals of growing sales by adding new products, new customers and new markets.
—more—
UFPI   Page | 2
 
Lumber prices, which have an impact on the Company’s selling prices, were up in the third quarter: Overall lumber prices were up 6.9 percent; Southern Yellow Pine prices, which make up a significant portion of the Company’s lumber purchases, were up 16.7 percent. For the quarter, the Company posted the following results by market:

Retail building materials: $247.0 million, an increase of 21.6 percent over the third quarter of 2012.
The Company is seeing the results of its strategy to grow sales with both independent and big box retailers by diversifying product mix and providing enhanced service and innovation. Sales increased by 14.8 percent to independent retailers and by 27.7 percent to big box customers in the third quarter of 2013 compared to the same period of 2012. Comparable store sales at big box retailers saw gains during the period as consumer spending improved. Universal continues to focus on innovation and on providing new products, and excellent service and quality.

Industrial packaging/components: $187.3 million, up 20.8 percent over the third quarter of 2012.
The Company continues to focus on adding customers and products, and added 402 customers in the third quarter of 2013. It also is focused on expanding its reach into non-wood packaging materials and on providing complete packaging solutions. Industrial production in the United States advanced just 0.4% in August 2013, after remaining flat the previous month. Total industrial production in August 2013 was 2.7 percent above the level a year earlier.

Manufactured housing: $100.0 million, an increase of 12.3 percent over 2012. According to the most recent statistics available, shipments of HUD-Code homes were up 13.3 percent in July 2013 and 4.9 percent in August 2013 over the same months of 2012. This remains an important market for Universal, which is focused on serving existing customers with unparalleled products and service and on adding to the products it supplies.

Residential construction: $89.7 million, up 29.3 percent over the same period of 2012. The Company is focused on maintaining a balanced book of business relative to single- and multifamily construction, and on delivering quality products and service. For June to August 2013, total housing starts were up 15.3 percent over the same period last year, including gains of 14.0 percent and 18.6 percent in single-family and multifamily starts, respectively.

Commercial construction and concrete forming: $36.7 million, an increase of 51.7 percent over 2012. Universal continues to expand its products and services in these arenas and sees opportunity in the concrete forming business, in which it manufactures and/or supplies forms and other materials for concrete construction projects, from bridges to stadiums.
—more—
UFPI   Page | 3
 
CONFERENCE CALL
Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. ET on Thursday, October 17, 2013. The call will be hosted by CEO Matthew Missad and CFO Michael Cole, and will be available for analysts and institutional investors domestically at (866) 700-5192 and internationally at (617) 213-8833. Use conference pass code 35668115. The conference call will be available simultaneously and in its entirety to all interested investors and news media through a webcast at http://www.ufpi.com. A replay of the call will be available through Friday, November 15, 2013, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay pass code 67475974.

UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for building materials retailers and wholesalers, structural lumber and other products for the manufactured housing and residential construction markets, and specialty wood packaging and components and packing materials for various industries. It has subsidiaries that provide framing services for the residential construction market in some parts of the country; that manufacture and market products used for concrete construction; and that offer lawn and garden products, such as trellises and arches, to retailers nationwide. Its consumer products operations offer a large portfolio of outdoor living products, including wood composite decking, decorative balusters, post caps and plastic lattice. Founded in 1955, Universal Forest Products is headquartered in Grand Rapids, Mich. Its subsidiaries operate facilities throughout North America. For more about Universal, go to www.ufpi.com.

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 Securities and Exchange Commission.


# # #
UFPI   Page | 4

CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 2013/2012
 
   
Quarter Period
    
Year to Date
(In thousands, except per share data)
  
2013
    
2012
       
 2013
    
2012
  
 
  
   
   
   
   
   
   
   
 
 
  
   
   
   
   
   
   
   
 
 
  
   
   
   
   
   
   
   
 
NET SALES
  
$
651,780
      
100
%
  
$
533,366
      
100
%
  
$
1,944,711
      
100
%
  
$
1,584,170
      
100
%
 
                                                                
COST OF GOODS SOLD
    
573,491
      
88.0
      
478,139
      
89.6
      
1,729,027
      
88.9
      
1,403,202
      
88.6
  
         
GROSS PROFIT
    
78,289
      
12.0
      
55,227
      
10.4
      
215,684
      
11.1
      
180,968
      
11.4
  
         
SELLING,   GENERAL  AND ADMINISTRATIVE  EXPENSES
    
53,020
      
8.1
      
45,186
      
8.5
      
154,348
      
7.9
      
140,070
      
8.8
  
ANTI-DUMPING DUTY ASSESSMENTS
    
887
      
0.1
      
2,000
      
0.4
      
887
      
-
      
2,328
      
0.1
  
NET GAIN ON DISPOSITION OF ASSETS, EARLY RETIREMENT, AND OTHER IMPAIRMENT AND EXIT CHARGES
    
(145
)
    
-
      
(269
)
    
(0.1
)
    
(253
)
    
-
      
(7,052
)
    
(0.4
)
 
                                                                
EARNINGS FROM OPERATIONS
    
24,527
      
3.8
      
8,310
      
1.6
      
60,702
      
3.1
      
45,622
      
2.9
  
 
                                                                
OTHER EXPENSE, NET
    
982
      
0.2
      
651
      
0.1
      
2,969
      
0.2
      
2,330
      
0.1
  
 
                                                                
EARNINGS BEFORE INCOME TAXES
    
23,545
      
3.6
      
7,659
      
1.4
      
57,733
      
3.0
      
43,292
      
2.7
  
 
                                                                
INCOME TAXES
    
8,530
      
1.3
      
2,903
      
0.5
      
20,589
      
1.1
      
16,140
      
1.0
  
 
                                                                
NET EARNINGS
    
15,015
      
2.3
      
4,756
      
0.9
      
37,144
      
1.9
      
27,152
      
1.7
  
 
                                                                
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST
    
(924
)
    
(0.1
)
    
(558
)
    
(0.1
)
    
(2,057
)
    
(0.1
)
    
(1,290
)
    
(0.1
)
 
                                                                
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST
  
$
14,091
      
2.2
    
$
4,198
      
0.8
    
$
35,087
      
1.8
    
$
25,862
      
1.6
  
 
                                                                
EARNINGS PER SHARE - BASIC
  
$
0.71
            
$
0.21
            
$
1.76
            
$
1.31
          
 
                                                                
EARNINGS PER SHARE - DILUTED
  
$
0.71
            
$
0.21
            
$
1.76
            
$
1.31
          
                                                                     
 
COMPREHENSIVE INCOME
15,767
6,270
36,828
28,490
 
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
(1,106
)
(957
)
(2,098
)
(1,675
)
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
$
14,661
$
5,313
$
34,730
$
26,815
 
 
SUPPLEMENTAL SALES DATA
  
   
   
   
   
   
 
 
  
Quarter Period
    
Year to Date
  
Market Classification
  
2013
    
2012
    
%
    
2013
    
2012
    
%
  
Retail Building Materials
  
$
247,002
    
$
203,126
      
22
%
  
$
767,810
    
$
678,408
      
13
%
Residential Construction
    
89,692
      
69,378
      
29
%
    
258,328
      
181,148
      
43
%
Commercial Construction and Concrete Forming
    
36,737
      
24,217
      
52
%
    
104,627
      
67,954
      
54
%
Industrial
    
187,253
      
155,048
      
21
%
    
541,079
      
449,017
      
21
%
Manufactured Housing
    
99,976
      
89,026
      
12
%
    
299,338
      
232,729
      
29
%
Total Gross Sales
    
660,660
      
540,795
      
22
%
    
1,971,182
      
1,609,256
      
22
%
Sales Allowances
    
(8,880
)
    
(7,429
)
            
(26,471
)
    
(25,086
)
        
Total Net Sales
  
$
651,780
    
$
533,366
            
$
1,944,711
    
$
1,584,170
          

UFPI   Page | 5

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 2013/2012

(In thousands)
  
   
 
 
  
   
 
ASSETS
  
2013
    
2012
  
LIABILITIES AND EQUITY
  
2013
    
2012
  
 
  
   
 
 
  
   
 
CURRENT ASSETS
  
   
 
CURRENT LIABILITIES
  
   
 
Cash and cash equivalents
  
$
5,151
    
$
4,355
  
Accounts payable
  
$
85,520
    
$
72,080
  
Restricted cash
    
720
      
553
  
Accrued liabilities
    
78,820
      
57,399
  
Accounts receivable
    
241,990
      
191,178
  
Current portion of long-term
               
Inventories
    
232,209
      
209,138
  
debt and capital leases
    
-
      
40,000
  
Other current assets
    
29,483
      
27,164
  
 
                
 
                
 
                
 
                
 
                
 
                
 
                
TOTAL CURRENT ASSETS
    
509,553
      
432,388
  
TOTAL CURRENT LIABILITIES
    
164,340
      
169,479
  
 
                
 
                
OTHER ASSETS
    
14,312
      
14,918
  
LONG-TERM DEBT AND
                
INTANGIBLE ASSETS, NET
    
170,301
      
169,108
  
CAPITAL LEASE OBLIGATIONS,
                
PROPERTY, PLANT AND
               
less current portion
    
84,700
      
15,918
  
EQUIPMENT,  NET
    
239,347
      
216,931
  
OTHER LIABILITIES
    
41,072
      
36,231
  
 
                
EQUITY
    
643,401
      
611,717
  
 
                
 
                
TOTAL ASSETS
  
$
933,513
    
$
833,345
  
TOTAL LIABILITIES AND EQUITY
  
$
933,513
    
$
833,345
  

UFPI   Page | 6

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 2013/2012

(In thousands)
  
2013
    
2012
  
CASH FLOWS FROM OPERATING ACTIVITIES:
  
   
 
Net earnings
  
$
37,144
    
$
27,152
  
Adjustments to reconcile net earnings attributable to controlling interest to net cash from operating activities:
                
Depreciation
    
22,333
      
22,154
  
Amortization of intangibles
    
1,880
      
2,218
  
Expense associated with share-based compensation arrangements
    
1,553
      
1,078
  
Excess tax benefits from share-based compensation arrangements
    
(8
)
    
(73
)
Loss reserve for notes receivable
    
-
      
767
  
Deferred income taxes (credit)
    
(83
)
    
(1,223
)
Equity in earnings of investee
    
(152
)
    
(25
)
Net gain on sale or impairment of property, plant and equipment
    
(195
)
    
(7,228
)
Changes in:
                
Accounts receivable
    
(79,849
)
    
(63,466
)
Inventories
    
11,261
      
(13,483
)
Accounts payable
    
19,336
      
22,285
  
Accrued liabilities and other
    
34,518
      
12,343
  
NET CASH FROM OPERATING ACTIVITIES
    
47,738
      
2,499
  
 
                
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Purchases of property, plant, and equipment
    
(32,108
)
    
(22,187
)
Proceeds from sale of property, plant and equipment
    
1,261
      
15,092
  
Acquisitions, net of cash received
    
(9,296
)
    
(2,149
)
Purchase of patents & product technology
    
-
      
(95
)
Advances of notes receivable
    
(1,990
)
    
(1,157
)
Collections of notes receivable and related interest
    
1,441
      
915
  
Cash restricted as to use
    
6,111
      
(553
)
Other, net
    
28
      
(387
)
NET CASH FROM INVESTING ACTIVITIES
    
(34,553
)
    
(10,521
)
 
                
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Net borrowings under revolving credit facilities
    
(11,090
)
    
6,217
  
Repayment of long-term debt
    
-
      
(2,773
)
Debt issuance costs
    
(15
)
    
(86
)
Proceeds from issuance of common stock
    
839
      
1,826
  
Distributions to noncontrolling interest
    
(1,460
)
    
(871
)
Capital contribution from noncontrolling interest
    
-
      
281
  
Dividends paid to shareholders
    
(3,977
)
    
(3,946
)
Excess tax benefits from share-based compensation arrangements
    
8
      
73
  
Other, net
    
-
      
4
  
NET CASH FROM FINANCING ACTIVITIES
    
(15,695
)
    
725
  
 
                
Effect of exchange rate changes on cash
    
14
      
347
  
NET CHANGE IN CASH AND CASH EQUIVALENTS
    
(2,496
)
    
(6,950
)
 
                
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
7,647
      
11,305
  
 
                
CASH (CASH OVERDRAFT), END OF PERIOD
  
$
5,151
    
$
4,355
  
 
                
SUPPLEMENTAL INFORMATION:
                
Interest paid
  
$
2,958
    
$
2,498
  
Income taxes paid
    
6,780
      
15,797