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) |
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 | ||||||||
Item 9.01 Financial Statements, Pro Forma Financial Information, and Exhibits | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
Press Release dated October 16, 2006 |
99 | (a) | Press Release dated October 16, 2006. |
2
UNIVERSAL FOREST PRODUCTS, INC. (Registrant) |
||||
Dated: October 17, 2006 | By: | /s/ Michael R. Cole | ||
Michael R. Cole, Chief Financial Officer | ||||
and Treasurer | ||||
3
| $236.8 million in D-I-Y/retail, down 14.9% compared to the same quarter last year; | ||
| $205.4 million in site-built construction, an increase of 0.5% over last year; | ||
| $139.5 million in industrial, up 3.6% over the third quarter of 2005; and | ||
| $91.2 million in manufactured housing, a 12.4% decrease over last year. |
| The rate of the drop in the housing market and its impact on markets like Colorado and Southern California; | ||
| A soft DIY market and lackluster consumer spending; | ||
| A continued soft manufactured housing market; and | ||
| The impact of FEMA orders in 2005 in the wake of the hurricanes. |
Quarter Period | Year to Date | |||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||||||||||||||||
NET SALES |
$ | 672,873 | 100 | % | $ | 721,497 | 100 | % | $ | 2,165,329 | 100 | % | $ | 2,038,209 | 100 | % | ||||||||||||||||||||
COST OF GOODS SOLD |
574,048 | 85.31 | 622,435 | 86.27 | 1,851,775 | 85.52 | 1,770,676 | 86.87 | ||||||||||||||||||||||||||||
GROSS PROFIT |
98,825 | 14.69 | 99,062 | 13.73 | 313,554 | 14.48 | 267,533 | 13.13 | ||||||||||||||||||||||||||||
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES |
65,970 | 9.80 | 63,877 | 8.85 | 201,272 | 9.30 | 173,233 | 8.50 | ||||||||||||||||||||||||||||
EARNINGS FROM OPERATIONS |
32,855 | 4.88 | 35,185 | 4.88 | 112,282 | 5.19 | 94,300 | 4.63 | ||||||||||||||||||||||||||||
OTHER EXPENSE (INCOME) |
||||||||||||||||||||||||||||||||||||
Interest expense |
3,214 | 0.48 | 3,714 | 0.51 | 10,757 | 0.50 | 11,755 | 0.58 | ||||||||||||||||||||||||||||
Interest income |
(875 | ) | -0.13 | (227 | ) | -0.03 | (1,656 | ) | -0.08 | (646 | ) | -0.03 | ||||||||||||||||||||||||
Net (gain) loss on sale of real estate |
| 0.00 | | 0.00 | (63 | ) | 0.00 | (1,240 | ) | -0.06 | ||||||||||||||||||||||||||
2,339 | 0.35 | 3,487 | 0.48 | 9,038 | 0.42 | 9,869 | 0.48 | |||||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES
AND MINORITY INTEREST |
30,516 | 4.54 | 31,698 | 4.39 | 103,244 | 4.77 | 84,431 | 4.14 | ||||||||||||||||||||||||||||
INCOME TAXES |
11,322 | 1.68 | 12,009 | 1.66 | 38,963 | 1.80 | 32,005 | 1.57 | ||||||||||||||||||||||||||||
EARNINGS BEFORE MINORITY INTEREST |
19,194 | 2.85 | 19,689 | 2.73 | 64,281 | 2.97 | 52,426 | 2.57 | ||||||||||||||||||||||||||||
MINORITY INTEREST |
(1,489 | ) | -0.22 | (518 | ) | -0.07 | (3,396 | ) | -0.16 | (1,236 | ) | -0.06 | ||||||||||||||||||||||||
NET EARNINGS |
$ | 17,705 | 2.63 | $ | 19,171 | 2.66 | $ | 60,885 | 2.81 | $ | 51,190 | 2.51 | ||||||||||||||||||||||||
EARNINGS PER SHARE BASIC |
$ | 0.94 | $ | 1.04 | $ | 3.24 | $ | 2.79 | ||||||||||||||||||||||||||||
EARNINGS PER SHARE DILUTED |
$ | 0.91 | $ | 1.00 | $ | 3.14 | $ | 2.69 | ||||||||||||||||||||||||||||
WEIGHTED AVERAGE SHARES
OUTSTANDING |
18,906 | 18,465 | 18,788 | 18,325 | ||||||||||||||||||||||||||||||||
WEIGHTED AVERAGE SHARES
OUTSTANDING WITH COMMON
STOCK EQUIVALENTS |
19,394 | 19,193 | 19,368 | 19,050 |
Quarter Period | Year to Date | |||||||||||||||||||||||||||||||
Market Classification | 2006 | % | 2005 | % | 2006 | % | 2005 | % | ||||||||||||||||||||||||
Do-It-Yourself/Retail |
$ | 236,825 | 34 | % | $ | 278,416 | 39 | % | $ | 799,310 | 36 | % | $ | 801,155 | 39 | % | ||||||||||||||||
Site-Built Construction |
205,363 | 31 | % | 204,344 | 28 | % | 642,964 | 30 | % | 541,878 | 27 | % | ||||||||||||||||||||
Manufactured Housing |
91,157 | 14 | % | 104,089 | 14 | % | 296,409 | 14 | % | 307,466 | 15 | % | ||||||||||||||||||||
Industrial |
139,528 | 21 | % | 134,648 | 19 | % | 426,646 | 20 | % | 387,710 | 19 | % | ||||||||||||||||||||
Total |
$ | 672,873 | 100 | % | $ | 721,497 | 100 | % | $ | 2,165,329 | 100 | % | $ | 2,038,209 | 100 | % | ||||||||||||||||
2006 | 2005 | |||||||||
ASSETS |
||||||||||
CURRENT ASSETS |
||||||||||
Cash and cash equivalents |
$ | 46,184 | $ | 30,767 | ||||||
Accounts receivable |
227,428 | 230,762 | ||||||||
Inventories |
232,884 | 226,737 | ||||||||
Other current assets |
24,752 | 13,191 | ||||||||
TOTAL CURRENT ASSETS |
531,248 | 501,457 | ||||||||
OTHER ASSETS |
7,762 | 8,414 | ||||||||
INTANGIBLE ASSETS, NET |
158,549 | 137,348 | ||||||||
PROPERTY, PLANT
AND EQUIPMENT, NET |
232,428 | 223,107 | ||||||||
TOTAL ASSETS |
$ | 929,987 | $ | 870,326 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||
CURRENT LIABILITIES |
||||||||||
Accounts payable |
$ | 109,581 | $ | 131,621 | ||||||
Accrued liabilities |
106,360 | 96,671 | ||||||||
Current portion of long-term
debt and capital leases |
697 | 22,091 | ||||||||
TOTAL CURRENT LIABILITIES |
216,638 | 250,383 | ||||||||
LONG-TERM DEBT AND CAPITAL LEASES,
less current portion |
171,009 | 168,602 | ||||||||
OTHER LIABILITIES |
35,937 | 35,427 | ||||||||
SHAREHOLDERS EQUITY |
506,403 | 415,914 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 929,987 | $ | 870,326 | ||||||
(In thousands) | 2006 | 2005 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||
Net earnings |
$ | 60,885 | $ | 51,190 | ||||||
Adjustments to reconcile net earnings to net cash
from operating activities: |
||||||||||
Depreciation |
25,558 | 23,391 | ||||||||
Amortization of intangibles |
3,953 | 1,809 | ||||||||
Expense associated with share-based compensation arrangements |
691 | | ||||||||
Expense associated with stock grant plans |
191 | 149 | ||||||||
Deferred income taxes |
(871 | ) | (886 | ) | ||||||
Minority interest |
3,396 | 1,236 | ||||||||
Loss (gain) on sale or impairment of property, plant and equipment |
206 | (561 | ) | |||||||
Changes in: |
||||||||||
Accounts receivable |
(37,947 | ) | (75,061 | ) | ||||||
Inventories |
23,693 | (10,712 | ) | |||||||
Accounts payable |
771 | 43,103 | ||||||||
Accrued liabilities and other |
11,326 | 26,502 | ||||||||
Excess tax benefits from share-based compensation arrangements |
(3,959 | ) | | |||||||
NET CASH FROM OPERATING ACTIVITIES |
87,893 | 60,160 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||
Purchases of property, plant, and equipment |
(27,600 | ) | (31,768 | ) | ||||||
Acquisitions, net of cash received |
(27,137 | ) | (13,883 | ) | ||||||
Proceeds from sale of property, plant and equipment |
506 | 2,373 | ||||||||
Collection of notes receivable |
1,612 | 457 | ||||||||
Advances on notes receivable |
(2,473 | ) | (887 | ) | ||||||
Insurance proceeds |
38 | 3,013 | ||||||||
Other, net |
6 | 752 | ||||||||
NET CASH FROM INVESTING ACTIVITIES |
(55,048 | ) | (39,943 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||
Net (repayments) borrowings under revolving credit facilities |
(38,725 | ) | (16,201 | ) | ||||||
Repayment of long-term debt |
(1,201 | ) | (1,674 | ) | ||||||
Proceeds from issuance of common stock |
5,711 | 4,074 | ||||||||
Distributions to minority shareholder |
(1,569 | ) | (749 | ) | ||||||
Investment received from minority shareholder |
| 500 | ||||||||
Dividends paid to shareholders |
(1,035 | ) | (910 | ) | ||||||
Excess tax benefits from share-based compensation arrangements |
3,959 | | ||||||||
Other, net |
(16 | ) | 236 | |||||||
NET CASH FROM FINANCING ACTIVITIES |
(32,876 | ) | (14,724 | ) | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
(31 | ) | 5,493 | |||||||
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD |
46,215 | 25,274 | ||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 46,184 | $ | 30,767 | ||||||