GRAND RAPIDS, Mich., April 20, 2016 (GLOBE NEWSWIRE) -- Universal Forest Products, Inc. (Nasdaq:UFPI) today announced first-quarter net earnings attributable to controlling interest of $19.2 million, up 89 percent over the same period of 2015. Diluted earnings per share were $0.95, compared to $0.51 for the first quarter of 2015. Net sales for the first quarter were $682.2 million, up 7.8 percent over the first quarter of 2015. The net earnings and net sales results are first-quarter records for the Company.

“The record-breaking results we have enjoyed since the third quarter of 2015 are a testament to the outstanding efforts of our people and the strategies we have implemented to grow and improve the business,” said CEO Matt Missad. “Rather than become complacent, we are targeting new opportunities for growth and improved profitability, while enhancing value for our customers.”

The first-quarter sales growth is attributable to increases in the Company’s retail and construction markets, which grew 17 percent and 9.3 percent, respectively, despite a 12 percent decline in year-over-year lumber prices in the first quarter.

“While the milder winter contributed to improved quarter-over-quarter results, we also benefitted from increased new product sales, operational efficiency improvements, and a better sales mix,” Matt reported. New product sales for the quarter rose 32 percent to $67.5 million, up from $51 million during the same period in 2015.

By market, the Company posted the following first-quarter 2016 gross sales results:

Retail: $270.7 million, up 17 percent over the same period of 2015

The Company saw increases in unit sales to both its big box and independent retail customers as a result of improving demand and success in the Company’s new product sales initiative. The sales were partially offset by a 2 percent decrease in selling prices due to the commodity lumber market. The Company believes it is well-positioned to meet the growing demand of customers as the spring building season begins. It remains focused on enhancing its product offerings by creating new products and improving upon existing products, and increasing its market share with independent retailers.

Industrial: $204.2 million, down 3 percent from the first quarter of 2015

This market includes packaging, material handling and related products, and other wood-based products for many other applications that serve a variety of industrial customers. The Company’s unit sales increased 5 percent as a result of organic growth from adding new customers and growing market share with existing customers. Gross sales fell 3 percent due to an 8 percent decrease in selling prices due to lower lumber costs. The Company remains focused on adding new customers, expanding its product and service offering, adding capacity in certain regions, and growing its business in non-wood packaging materials.

Construction: $218.9 million, up 9 percent over the same period of 2015

This market includes residential and manufactured housing and commercial construction. The Company’s growth in this market was attributable to a 15 percent increase in unit sales, led by strong sales in commercial and residential construction. Gross sales were partially offset by a 6 percent decrease in selling prices.  

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 Thurs., April 21, 2016. 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 (888) 685-5759 and internationally at (503) 343-6031. Use conference pass code 88497073. 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 May 15, 2016, at 855-859-2056 or 404-537-3406 or 800-585-8367.

UNIVERSAL FOREST PRODUCTS, INC.

Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries in three robust markets: retail, construction and industrial. Founded in 1955, the Company is headquartered in Grand Rapids, Mich., with affiliates throughout North America and Australia. 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.

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) 
FOR THE THREE MONTHS ENDED 
MARCH 2016/2015 
  Quarter Period   Year to Date   
(In thousands, except per share data)  2016     2015     2016     2015    
                  
                  
                  
NET SALES $682,151   100% $633,025   100% $682,151   100% $633,025   100.0% 
                  
COST OF GOODS SOLD   579,412   84.9   553,443   87.4   579,412   84.9   553,443   87.4  
                  
GROSS PROFIT  102,739   15.1   79,582   12.6   102,739   15.1   79,582   12.6  
                  
SELLING,  GENERAL  AND                  
  ADMINISTRATIVE  EXPENSES  70,838   10.4   61,705   9.7   70,838   10.4   61,705   9.7  
NET (GAIN) LOSS ON DISPOSITION AND                 
  IMPAIRMENT OF ASSETS  (10)  -   14   -   (10)  -   14   -  
                  
EARNINGS FROM OPERATIONS  31,911   4.7   17,863   2.8   31,911   4.7   17,863   2.8  
                  
OTHER EXPENSE, NET  891   0.1   955   0.2   891   0.1   955   0.2  
                  
EARNINGS BEFORE INCOME TAXES  31,020   4.5   16,908   2.7   31,020   4.5   16,908   2.7  
                  
INCOME TAXES  10,765   1.6   6,104   1.0   10,765   1.6   6,104   1.0  
                  
NET EARNINGS  20,255   3.0   10,804   1.7   20,255   3.0   10,804   1.7  
                  
LESS NET EARNINGS ATTRIBUTABLE TO                 
  NONCONTROLLING INTEREST   (1,043)  (0.2)  (642)  (0.1)  (1,043)  (0.2)  (642)  (0.1) 
                  
NET EARNINGS ATTRIBUTABLE TO                 
  CONTROLLING INTEREST $19,212   2.8  $10,162   1.6  $19,212   2.8  $10,162   1.6  
                  
                  
EARNINGS PER SHARE - BASIC  $0.95    $0.51    $0.95    $0.51    
                  
EARNINGS PER SHARE - DILUTED $0.95    $0.51    $0.95    $0.51    
                  
COMPREHENSIVE INCOME  20,697     9,801     20,697     9,801    
                  
LESS COMPREHENSIVE INCOME ATTRIBUTABLE                 
  TO NONCONTROLLING INTEREST  (846)    (498)    (846)    (498)   
                  
COMPREHENSIVE INCOME                 
  ATTRIBUTABLE TO CONTROLLING INTEREST $19,851    $9,303    $19,851    $9,303    
                  
SUPPLEMENTAL SALES DATA                 
  Quarter Period Year to Date 
Market Classification  2016     2015  %  2016     2015  % 
Retail $270,743    $231,447   17% $270,743    $231,447   17% 
Industrial  204,245     210,016   -3%  204,245     210,016   -3% 
Construction  218,876     200,306   9%  218,876     200,306   9% 
Total Gross Sales  693,864     641,769   8%  693,864     641,769   8% 
Sales Allowances  (11,713)    (8,744)    (11,713)    (8,744)   
Total Net Sales $682,151    $633,025    $682,151    $633,025    
                  
                  

 

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) 
MARCH 2016/2015 
                
(In thousands)             
ASSETS  2016   2015  LIABILITIES AND EQUITY  2016   2015  
                
CURRENT ASSETS     CURRENT LIABILITIES     
 Cash and cash equivalents $43,065  $22,888   Cash overdraft $-  $21,585  
 Restricted cash  1,139   710   Accounts payable  116,525   114,225  
 Investments  6,737   -   Accrued liabilities  97,910   79,326  
 Accounts receivable  287,374   260,926   Current portion of debt  886   21  
 Inventories  327,177   404,711          
 Other current assets  16,889   19,984          
                
TOTAL CURRENT ASSETS  682,381   709,219  TOTAL CURRENT LIABILITIES  215,321   215,157  
                
OTHER ASSETS  10,424   9,674  LONG-TERM DEBT AND     
INTANGIBLE ASSETS, NET  198,338   193,113   CAPITAL LEASE OBLIGATIONS  84,525   187,020  
PROPERTY, PLANT     OTHER LIABILITIES  51,003   50,309  
 AND EQUIPMENT,  NET  254,634   255,462  EQUITY  794,928   714,982  
                
                
TOTAL ASSETS $1,145,777  $1,167,468  TOTAL LIABILITIES AND EQUITY $1,145,777  $1,167,468  
                
                

 

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) 
FOR THE THREE MONTHS ENDED 
MARCH 2016/2015 
(In thousands)    2016     2015  
CASH FLOWS FROM OPERATING ACTIVITIES:       
Net earnings   $20,255    $10,804  
Adjustments to reconcile net earnings to net cash from operating activities:       
           
Depreciation    9,492     8,996  
Amortization of intangibles   693     983  
Expense associated with share-based compensation arrangements  432     378  
Expense associated with stock grant plans   37     27  
Deferred income tax credit   (156)    (193) 
Equity in earnings of investee   (81)    (83) 
Net loss (gain) on disposition and impairment of assets  (10)    14  
Changes in:         
Accounts receivable   (64,276)    (63,148) 
Inventories    (22,159)    (64,422) 
Accounts payable and cash overdraft   21,498     45,219  
Accrued liabilities and other   4,318     10,880  
NET CASH FROM OPERATING ACTIVITIES  (29,957)    (50,545) 
           
CASH FLOWS FROM INVESTING ACTIVITIES:       
Purchases of property, plant, and equipment   (12,941)    (15,102) 
Proceeds from sale of property, plant and equipment  132     50  
Acquisitions, net of cash received   -     (2,585) 
Advances of notes receivable   (1,259)    (1,273) 
Collections of notes receivable and related interest  1,408     5,790  
Cash restricted as to use   (553)    (305) 
Other, net     (173)    (16) 
NET CASH FROM INVESTING ACTIVITIES  (13,386)    (13,441) 
           
CASH FLOWS FROM FINANCING ACTIVITIES:       
Borrowings under revolving credit facilities   1,235     140,303  
Repayments under revolving credit facilities   (1,495)    (52,718) 
Proceeds from issuance of common stock   130     469  
Distributions to noncontrolling interest   (1,170)    (939) 
Repurchase of common stock   -     (78) 
Other, net     (5)    (9) 
NET CASH FROM FINANCING ACTIVITIES  (1,305)    87,028  
           
Effect of exchange rate changes on cash   (43)    (154) 
NET CHANGE IN CASH AND CASH EQUIVALENTS  (44,691)    22,888  
           
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD  87,756     -  
           
CASH AND CASH EQUIVALENTS, END OF PERIOD $43,065    $22,888  
           
           

 

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

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