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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):  February 12, 2014
UNIVERSAL FOREST PRODUCTS, INC.
(Exact Name of Registrant as Specified in Charter)
 
Michigan
(State or other Jurisdiction
of Incorporation)
0-22684
(Commission File Number)
38-1465835
(IRS Employer Identification No.)
 
 
2801 East Beltline, N.E.
Grand Rapids, Michigan
 
49525
(Address of principal executive office)
(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:

£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).
£ 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 12, 2014, the Registrant issued a press release announcing its financial results for the quarter and year ended December 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 February 12, 2014.
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:  February 12, 2014
 
By:
/s/ Michael R. Cole
 
 
 
Michael R. Cole, Chief Financial Officer
 
 
 
and Treasurer
 
EXHIBIT INDEX

Exhibit Number Document

99(a) Press Release dated February 12, 2014.
 
 
Exhibit 99(a)
 

News release

---------------AT THE COMPANY---------------

Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502

FOR IMMEDIATE RELEASE
Wednesday, February 12, 2014
 
Universal Forest Products, Inc. (UFPI) Net Sales up nearly 12% in 4th Quarter 2013 over 2012
4th Quarter 2013 Net Earnings of $8 million compare to $1.9 million loss in 4th Quarter 2012
—Annual 2013 results vs. 2012: Net Earnings jump 80% and Net Sales up more than 20%—

GRAND RAPIDS, Mich., Wed., Feb. 12, 2014 – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced 2013 results, including fourth-quarter net sales of $525.7 million, up 11.7 percent over the fourth quarter of 2012.  Net earnings in the fourth quarter of 2013 were $8.0 million, or $.40 per diluted share, compared to a loss of $1.9 million, or ($.10) per diluted share, in the fourth quarter of 2012.  The Company reported annual net sales of $2.5 billion for 2013, an increase of 20.2 percent over 2012.  Annual net earnings in 2013 were $43.1 million, or $2.15 per diluted share, compared to annual net earnings of $23.9 million, or $1.21 per diluted share in 2012.

“We benefited from consistent performance in all markets due to a number of factors in the fourth quarter, not the least of which was the hard work of our people in all areas of our organization,” said CEO Matthew J. Missad. “We saw much improved performance in housing and construction versus last year and a high and steadily rising lumber market through most of the fourth quarter. Our industrial sales also were strong. And sales to retail remained steady. Higher volume enabled us to keep our facilities operating at a reasonable level, enhancing our operating leverage.”

“I’m pleased with the progress on our growth strategies, including our focus on developing new products, which resulted in $85 million in new product sales in 2013,” Missad added. “I’m proud of our performance and I look forward to leveraging our many opportunities to continue these improvements in profitability and sales.”

For the fourth quarter of 2013, the lumber composite price was up 11.5 percent over the same period of 2012, resulting in a 7 percent increase in selling prices. Unit sales increased 5 percent on a comparative quarter basis. For the year, the lumber composite price was up 18.2 percent over 2012, resulting in a 12 percent increase in selling prices. Unit sales increased 8 percent for the year.
 
—more—
Universal Forest Products, Inc.
Page 2
 
By market, the Company posted the following 2013 gross sales results:

Retail
· Fourth quarter:     $168.8 million, up 6.6 percent over the same period of 2012
· Year:                       $936.6 million, up 11.9 percent over 2012
The Company saw positive results from its efforts to diversify product mix, enhance service, create new products and improve upon existing product lines to grow business with big box and independent retailers alike. The Company’s optimism in this market is fueled by healthy comparable sales at big box retailers and by forecasts that call for continued growth in home improvement activities in the coming years.

Construction
· Fourth quarter:     $203.3 million, up 14.5 percent over the fourth quarter of 2012
· Year:                       $865.6 million, up 31.3 percent over 2012
This market includes residential and manufactured housing, commercial construction and concrete forming. Both of the housing-related markets—site-built (including multifamily and single-family) and factory built—saw significant growth in the fourth quarter of 2013 and are expected to see continued growth in 2014, according to recent industry forecasts. While lumber prices had a positive impact on these results, the Company’s efforts to create steady, long-term growth by diversifying both its business and customer base in the construction arena are proving effective. The Company also experienced share gains in nonresidential construction in the fourth quarter of 2013.

Industrial
· Fourth quarter:     $160.6 million, up 14.0 percent over the same period of 2012
· Year:                       $701.7 million, up 19.0 percent over 2012
Industrial production in the United States edged up 0.3 percent in December of 2013 after advancing 1.0 percent in November. Manufacturing output rose 0.4 percent in December of 2013, its fifth consecutive monthly gain, and was up 2.6 percent for the year.  The Company continues its successful focus on adding customers and products. The Company also is focused on expanding its reach into non-wood packaging materials and on providing complete packaging solutions to industrial customers.

The Company remains focused on its goals of achieving $3 billion in sales by 2017 and returning to operating margins at normal historical levels. “We continue to seek acquisition targets that are aligned with our strategic objectives to grow in various markets and industries,” Missad said. He added that the Company decided not to pursue its recently announced intent to acquire National Fiber, a leading manufacturer of cellulose insulation located in Belchertown, Mass.

“We were disappointed and wish National Fiber well,” Missad said. “We’ll continue to execute on our growth strategies, maintain our dedication to being better tomorrow than we were today and focus on our customers and their needs, and I am confident we will reach our goals.”

—more—
Universal Forest Products, Inc.
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, February 13, 2014. The call will be hosted by CEO Matthew J. Missad and CFO Michael Cole, and will be available for analysts and institutional investors domestically at (866) 515-2910 and internationally at (617) 399-5124. Use conference pass code 79724243. 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 February 20, 2014, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay pass code 83519895.

UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to three robust markets: retail, construction and industrial.  Founded in 1955, the Company is headquartered in Grand Rapids, Mich., with affiliates throughout North America. For more about Universal Forest Products, 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.


# # #
Universal Forest Products, Inc.
Page 4
 
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THE TWELVE MONTHS ENDED
DECEMBER 2013/2012

 
  
Quarter Period
    
Year to Date
  
(In thousands, except per share data)
  
2013
    
2012
    
2013
    
2012
  
 
  
   
   
   
   
   
   
   
 
 
  
   
   
   
   
   
   
   
 
 
  
   
   
   
   
   
   
   
 
NET SALES
  
$
525,738
      
100
%
  
$
470,763
      
100
%
  
$
2,470,448
      
100
%
  
$
2,054,933
      
100.0
%
 
                                                                
COST OF GOODS SOLD
    
461,509
      
87.8
      
426,621
      
90.6
      
2,189,896
      
88.6
      
1,829,824
      
89.0
  
 
                                                                
GROSS PROFIT
    
64,229
      
12.2
      
44,142
      
9.4
      
280,552
      
11.4
      
225,109
      
11.0
  
 
                                                                
SELLING, GENERALAND ADMINISTRATIVE  EXPENSES
    
50,042
      
9.5
      
44,849
      
9.5
      
204,390
      
8.3
      
184,919
      
9.0
  
ANTI-DUMPING DUTY ASSESSMENTS
    
-
      
-
      
-
      
-
      
1,526
      
0.1
      
2,328
      
0.1
  
NET GAIN ON DISPOSITION OF ASSETS, EARLY RETIREMENT, AND OTHER IMPAIRMENT AND EXIT CHARGES
    
621
      
0.1
      
386
      
0.1
      
368
      
-
      
(6,666
)
    
(0.3
)
 
                                                                
EARNINGS FROM OPERATIONS
    
13,566
      
2.6
      
(1,093
)
    
(0.2
)
    
74,268
      
3.0
      
44,528
      
2.2
  
 
                                                                
OTHER EXPENSE, NET
    
1,041
      
0.2
      
1,134
      
0.2
      
4,010
      
0.2
      
3,464
      
0.2
  
 
                                                                
EARNINGS BEFORE INCOME TAXES
    
12,525
      
2.4
      
(2,227
)
    
(0.5
)
    
70,258
      
2.8
      
41,064
      
2.0
  
 
                                                                
INCOME TAXES
    
3,865
      
0.7
      
(1,086
)
    
(0.2
)
    
24,454
      
1.0
      
15,054
      
0.7
  
 
                                                                
NET EARNINGS
    
8,660
      
1.6
      
(1,141
)
    
(0.2
)
    
45,804
      
1.9
      
26,010
      
1.3
  
 
                                                                
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST
    
(665
)
    
(0.1
)
    
(786
)
    
(0.2
)
    
(2,722
)
    
(0.1
)
    
(2,076
)
    
(0.1
)
 
                                                                
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST
  
$
7,995
      
1.5
    
$
(1,927
)
    
(0.4
)
  
$
43,082
      
1.7
    
$
23,934
      
1.2
  
 
                                                                
EARNINGS PER SHARE - BASIC
  
$
0.40
            
$
(0.10
)
          
$
2.16
            
$
1.21
          
 
                                                                
EARNINGS PER SHARE - DILUTED
  
$
0.40
            
$
(0.10
)
          
$
2.15
            
$
1.21
          
 
                                                                
COMPREHENSIVE INCOME
    
8,191
              
(1,500
)
            
45,020
              
26,990
          
 
                                                                
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
    
(631
)
            
(724
)
            
(2,730
)
            
(2,398
)
        
 
                                                                
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
  
$
7,560
            
$
(2,224
)
          
$
42,290
            
$
24,592
          

 
SUPPLEMENTAL SALES DATA

 
  
Quarter Period
    
Year to Date
  
Market Classification
  
2013
    
2012
    
%
    
2013
    
2012
    
%
  
Retail Building Materials
  
$
168,779
    
$
158,259
      
7
%
  
$
936,590
    
$
836,670
      
12
%
Industrial
    
160,609
      
140,880
      
14
%
    
701,688
      
589,893
      
19
%
 
                                                
Residential Construction
    
81,969
      
74,396
      
10
%
    
340,296
      
255,544
      
33
%
Commercial Construction and Concrete Forming
    
32,015
      
21,849
      
47
%
    
136,641
      
89,804
      
52
%
Manufactured Housing
    
89,359
      
81,365
      
10
%
    
388,697
      
314,095
      
24
%
Housing and Construction
    
203,343
      
177,610
              
865,634
      
659,443
          
Total Gross Sales
    
532,731
      
476,749
      
12
%
    
2,503,912
      
2,086,006
      
20
%
Sales Allowances
    
(6,993
)
    
(5,986
)
            
(33,464
)
    
(31,073
)
        
Total Net Sales
  
$
525,738
    
$
470,763
            
$
2,470,448
    
$
2,054,933
          

Universal Forest Products, Inc.
Page 5
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
DECEMBER 2013/2012
(In thousands)
  
   
 
 
  
   
 
ASSETS
  
2013
    
2012
  
LIABILITIES AND EQUITY
  
2013
    
2012
  
 
  
   
 
 
  
   
 
CURRENT ASSETS
  
   
 
CURRENT LIABILITIES
  
   
 
Cash and cash equivalents
  
$
-
    
$
7,647
  
Cash overdraft
  
$
1,079
    
$
-
  
Restricted cash
    
720
      
6,831
  
Accounts payable
    
72,918
      
66,054
  
Accounts receivable
    
180,452
      
163,225
  
Accrued liabilities
    
65,102
      
48,730
  
Inventories
    
287,305
      
243,180
  
 
                
Other current assets
    
27,921
      
32,290
  
 
                
 
                
 
                
 
                
 
                
 
                
 
                
TOTAL CURRENT ASSETS
    
496,398
      
453,173
  
TOTAL CURRENT LIABILITIES
    
139,099
      
114,784
  
 
                
 
                
OTHER ASSETS
    
13,452
      
16,342
  
LONG-TERM DEBT AND
                
INTANGIBLE ASSETS, NET
    
169,727
      
169,757
  
CAPITAL LEASE OBLIGATIONS,
                
PROPERTY, PLANT
                
less current portion
    
84,700
      
95,790
  
AND EQUIPMENT,  NET
    
237,410
      
221,268
  
OTHER LIABILITIES
    
43,454
      
42,441
  
 
                
EQUITY
    
649,734
      
607,525
  
 
                
 
                
TOTAL ASSETS
  
$
916,987
    
$
860,540
  
TOTAL LIABILITIES AND EQUITY
  
$
916,987
    
$
860,540
  

Universal Forest Products, Inc.
Page 6
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE TWELVE MONTHS ENDED
DECEMBER 2013/2012

(In thousands)
  
2013
    
2012
  
CASH FLOWS FROM OPERATING ACTIVITIES:
  
   
 
Net earnings
  
$
45,804
    
$
26,010
  
Adjustments to reconcile net earnings attributable to controlling interestto net cash from operating activities:
                
Depreciation
    
31,091
      
30,461
  
Amortization of intangibles
    
2,473
      
2,918
  
Expense associated with share-based compensation arrangements
    
1,932
      
1,270
  
Excess tax benefits from share-based compensation arrangements
    
(112
)
    
(75
)
Expense associated with stock grant plans
    
-
      
97
  
Loss reserve for notes receivable
    
15
      
2,131
  
Deferred income taxes
    
4,453
      
2,526
  
Net earnings attributable to noncontrolling interest
    
-
      
-
  
Equity in earnings of investee
    
(201
)
    
(79
)
Net gain (loss) on sale or impairment of property, plant and equipment
    
297
      
(6,890
)
Changes in:
                
Accounts receivable
    
(17,886
)
    
(32,274
)
Inventories
    
(42,287
)
    
(45,529
)
Accounts payable
    
6,756
      
16,281
  
Accrued liabilities and other
    
21,026
      
(2,568
)
NET CASH FROM OPERATING ACTIVITIES
    
53,361
      
(5,721
)
 
                
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Purchases of property, plant, and equipment
    
(40,023
)
    
(30,344
)
Proceeds from sale of property, plant and equipment
    
1,778
      
18,240
  
Acquisitions, net of cash received
    
(11,478
)
    
(16,974
)
Purchase of patents & product technology
    
(143
)
    
(95
)
Advances of notes receivable
    
(2,673
)
    
(1,183
)
Collections of notes receivable and related interest
    
2,814
      
2,839
  
Cash restricted as to use
    
6,111
      
(6,178
)
Other, net
    
11
      
(528
)
NET CASH FROM INVESTING ACTIVITIES
    
(43,603
)
    
(34,223
)
 
                
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Net borrowings (repayments) under revolving credit facilities
    
(11,090
)
    
11,090
  
Repayment of long-term debt
    
-
      
(42,774
)
Borrowings of long-term debt
    
-
      
75,000
  
Debt issuance costs
    
(46
)
    
(266
)
Proceeds from issuance of common stock
    
2,144
      
2,061
  
Distributions to noncontrolling interest
    
(1,460
)
    
(871
)
Capital contribution from noncontrolling interest
    
84
      
281
  
Dividends paid to shareholders
    
(8,166
)
    
(7,905
)
Excess tax benefits from share-based compensation arrangements
    
112
      
75
  
Other, net
    
-
      
4
  
NET CASH FROM FINANCING ACTIVITIES
    
(18,422
)
    
36,695
  
 
                
Effect of exchange rate changes on cash
    
(62
)
    
244
  
NET CHANGE IN CASH AND CASH EQUIVALENTS
    
(8,726
)
    
(3,005
)
 
                
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
7,647
      
10,652
  
 
                
CASH (CASH OVERDRAFT), END OF PERIOD
  
$
(1,079
)
  
$
7,647
  
 
                
SUPPLEMENTAL INFORMATION:
                
Interest paid
  
$
4,883
    
$
3,982
  
Income taxes paid
    
14,427
      
16,751