UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: April 13, 2004
UNIVERSAL FOREST PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
MICHIGAN 0-22684 38-1465835
(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
2801 EAST BELTLINE, NE
GRAND RAPIDS, MICHIGAN 49525
(Address of principal executive offices) (Zip Code)
(616) 364-6161
(Registrant's telephone number, including area code)
NONE
(Former name or former address, if changed since last report)
Item 7. Financial Statements, Pro Forma Financial Information, and Exhibits
(c) Exhibits
99(a) Press Release dated April 12, 2004.
Item 12. Results of Operations and Financial Condition
On April 12, 2004, the Registrant issued a press release announcing
its financial results for the quarter ended March 27, 2004. A copy of
the Registrant's press release is attached as Exhibit 99(a) to this
Current Report.
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: April 13, 2004
By: /s/ Michael R. Cole
------------------------------------------
Michael R. Cole, Chief Financial Officer
and Treasurer
3
EXHIBIT INDEX
-------------
Exhibit Number Document
- -------------- --------
99(a) Press Release dated April 12, 2004.
4
EXHIBIT 99(a)
NEWS RELEASE
- -----AT THE COMPANY------ --------FLEISHMAN HILLARD---------
Lynn Afendoulis Jeremy Skule
Director of Public Affairs Vice President
616/364-6161 212/453-2245
FOR IMMEDIATE RELEASE
MONDAY, APRIL 12, 2004
UNIVERSAL FOREST PRODUCTS, INC. REPORTS A 31% INCREASE IN NET SALES FOR 1ST
QUARTER 2004; POSTS A 20% INCREASE IN DILUTED EARNINGS PER SHARE
GRAND RAPIDS MI., April 12, 2004 -- Universal Forest Products, Inc. (Nasdaq:
UFPI) today announced a strong first quarter for the period ended March 27,
2004. The quarter was marked by net sales of $465.7 million, up 30.9% over net
sales of $355.6 million for the first quarter of 2003. The Company also posted
diluted earnings per share of $0.30, up 20.0% over diluted earnings per share of
$0.25 reported for the same period last year.
"It was a powerful quarter; our core business saw the best February and March in
the history of our Company," said William G. Currie, CEO and vice chairman. "Our
team of nearly 9,000 employees again demonstrated the dedication and commitment
that make this Company so successful. The housing market also remained strong
and we picked up market share in each of our markets, which helped to fuel our
growth."
In particular, Universal had robust performance in the site-built market, which
saw a sales increase of 49.1% over the same period last year, and in the
industrial market, which posted a 45.3% increase in sales for the first quarter.
Overall, the Company's unit sales increased 13% in the first quarter, which was
at the high end of its targeted range. The remaining increase in sales was
attributable to higher lumber prices.
By market, Universal posted first quarter sales of:
- $178.9 million D-I-Y/retail, up 14.5% over last year;
- $114.8 million in site-built construction, an increase of 49.1% over last
year;
- $77.0 million in manufactured housing, a 35.0% increase over 2003; and
- $95.0 million in industrial/other, up 45.3% over last year.
The Company's earnings reflect disappointing results of a joint venture framing
operation in the Southwest.
"We were tremendously pleased with what we were able to accomplish in our core
business during the first quarter," Currie said. "Despite the challenges we
faced in our joint venture framing operation and the financial impact it had on
our first quarter, we were able to grow earnings by more than 20%.
MORE...
UNIVERSAL FOREST PRODUCTS, INC.
PAGE 2
OUTLOOK
The Company anticipates continued growth in its business in 2004 and reaffirms
its targets for both unit sales and diluted earnings per share growth of 10% to
14% for the year.
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 13, 2004. The conference call will be hosted by William G. Currie and will
be available for analysts and institutional investors domestically at (888)
243-0814 or internationally at (703) 925-2401. Use conference call ID #434266.
The conference call will be available simultaneously, and in its entirety, to
all interested investors and news media through a webcast at www.ufpi.com.
Universal Forest Products markets, manufactures, and engineers wood and
wood-alternative 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. Among the Company's newest and fastest-growing ventures are framing
and installation services for the site-built and retail sectors. In conjunction
with its customers, Universal uses its engineering and manufacturing expertise,
coupled with highly skilled employees, to design and construct buildings and
decks. For information about Universal Forest Products on the Internet, please
visit 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.
HIGHLIGHTS TO FOLLOW
UNIVERSAL FOREST PRODUCTS, INC.
PAGE 3
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2004/2003
QUARTER PERIOD YEAR TO DATE
--------------------------------------- -------------------------------------------
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2004 2003 2004 2003
- ------------------------------------- ------------------ ----------------- ------------------ --------------------
NET SALES $ 465,665 100% $355,619 100% $ 465,665 100% $ 355,619 100%
COST OF GOODS SOLD 409,304 87.90 303,815 85.43 409,304 87.90 303,815 85.43
--------- -------- --------- ---------
GROSS PROFIT 56,361 12.10 51,804 14.57 56,361 12.10 51,804 14.57
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 43,929 9.43 40,188 11.30 43,929 9.43 40,188 11.30
--------- -------- --------- ---------
EARNINGS FROM OPERATIONS 12,432 2.67 11,616 3.27 12,432 2.67 11,616 3.27
INTEREST EXPENSE 3,542 0.76 3,787 1.06 3,542 0.76 3,787 1.06
INTEREST REVENUE (83) -0.02 (47) -0.01 (83) -0.02 (47) -0.01
GAIN ON SALE OF OPERATIONS (369) -0.08 - 0.00 (369) -0.08 - 0.00
--------- -------- --------- ---------
3,090 0.66 3,740 1.05 3,090 0.66 3,740 1.05
--------- -------- --------- ---------
EARNINGS BEFORE INCOME TAXES
AND MINORITY INTEREST 9,342 2.01 7,876 2.21 9,342 2.01 7,876 2.21
INCOME TAXES 1 3,644 0.78 2,791 0.78 3,644 0.78 2,791 0.78
--------- -------- --------- ---------
EARNINGS BEFORE MINORITY INTEREST 5,698 1.22 5,085 1.43 5,698 1.22 5,085 1.43
MINORITY INTEREST (131) -0.03 (585) -0.16 (131) -0.03 (585) -0.16
--------- -------- --------- ---------
NET EARNINGS $ 5,567 1.20 $ 4,500 1.27 $ 5,567 1.20 $ 4,500 1.27
========= ======== ========= =========
EARNINGS PER SHARE - BASIC $ 0.31 $ 0.25 $ 0.31 $ 0.25
EARNINGS PER SHARE - DILUTED $ 0.30 $ 0.25 $ 0.30 $ 0.25
WEIGHTED AVERAGE SHARES
OUTSTANDING 17,961 17,729 17,961 17,729
WEIGHTED AVERAGE SHARES
OUTSTANDING WITH COMMON
STOCK EQUIVALENTS 18,709 18,252 18,709 18,252
SUPPLEMENTAL SALES DATA
- -----------------------
QUARTER PERIOD YEAR TO DATE
---------------------------------------- ----------------------------------------------
Market Classification 2004 % 2003 % 2004 % 2003 %
- --------------------- --------- ---- -------- ---- --------- ---- --------- ----
DO-IT-YOURSELF/RETAIL $ 178,884 38% $156,220 44% $ 178,884 38% $ 156,220 44%
SITE-BUILT CONSTRUCTION 114,843 25% 77,016 22% 114,843 25% 77,016 22%
MANUFACTURED HOUSING 76,975 17% 57,033 16% 76,975 17% 57,033 16%
INDUSTRIAL AND OTHER 94,963 20% 65,350 18% 94,963 20% 65,350 18%
--------- ---- -------- ---- --------- ---- --------- ----
TOTAL $ 465,665 100% $355,619 100% $ 465,665 100% $ 355,619 100%
NOTES:
(1) Includes approximately $460 thousand of income taxes related to the sale of
the Nascor interest and plant presented separately above.
UNIVERSAL FOREST PRODUCTS, INC.
PAGE 4
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 2004/2003
(IN THOUSANDS)
- --------------
ASSETS 2004 2003 LIABILITIES AND SHAREHOLDER'S EQUITY 2004 2003
- ------ -------- -------- ------------------------------------ -------- ---------
CURRENT ASSETS CURRENT LIABILITIES
Cash and cash equivalents $ 22,052 $ 11,506 Notes payable $ - $ 1,701
Restricted cash equivalents 1,383 Accounts payable and
Accounts receivable 206,508 149,327 accrued liabilities 165,978 110,730
Inventories 219,204 196,228 Current portion of long-term
Other current assets 4,452 7,851 debt and capital leases 6,010 6,611
-------- -------- -------- --------
TOTAL CURRENT ASSETS 452,216 366,295 TOTAL CURRENT LIABILITIES 171,988 119,042
OTHER ASSETS 8,189 6,608 LONG-TERM DEBT AND CAPITAL
INTANGIBLE ASSETS 128,839 131,742 LEASES, LESS CURRENT PORTION 285,682 297,020
OTHER LIABILITIES 31,158 26,752
PROPERTY, PLANT
AND EQUIPMENT, NET 211,533 207,121 SHAREHOLDERS' EQUITY 311,949 268,952
-------- -------- -------- --------
TOTAL LIABILITIES AND
TOTAL ASSETS $ 800,777 $ 711,766 SHAREHOLDERS' EQUITY $ 800,777 $ 711,766
========= ========= ========= =========
UNIVERSAL FOREST PRODUCTS, INC.
PAGE 5
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2004/2003
(IN THOUSANDS) 2004 2003
- -------------- -------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 5,567 $ 4,500
Adjustments to reconcile net earnings to net cash
from operating activities:
Depreciation 6,672 5,949
Amortization of intangibles 471 322
Deferred income taxes 20 (405)
Loss on sale of Nascor interest 193 --
(Gain) Loss on sale or impairment of property, plant and equipment (603) 86
Changes in:
Accounts receivable (70,883) (44,110)
Proceeds from sale and servicing of accounts receivable (2,245) --
Inventories (48,711) (30,222)
Accounts payable 37,850 14,497
Accrued liabilities and other 1,315 (3,504)
-------- --------
NET CASH FROM OPERATING ACTIVITIES (70,354) (52,887)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment (7,295) (9,809)
Acquisitions, net of cash received (5,360) --
Proceeds from sale of Nascor interest 4,679 --
Proceeds from sale of property, plant and equipment 551 144
Other 367 44
-------- --------
NET CASH FROM INVESTING ACTIVITIES (7,058) (9,621)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under revolving credit facilities and notes payable 81,516 61,752
Repayment of long-term debt (58) (22)
Proceeds from issuance of common stock 857 730
Distributions to minority shareholder (125) (273)
Repurchase of common stock (116) (1,627)
Other (40) --
-------- --------
NET CASH FROM FINANCING ACTIVITIES 82,034 60,560
-------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS 4,622 (1,948)
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 17,430 13,454
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 22,052 $ 11,506
======== ========
