LONDON, UK / ACCESSWIRE / October 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Universal Forest Products, Inc. (NASDAQ: UFPI) ("UFP"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=UFPI, following the Company's posting of its third quarter fiscal 2017 operating results on October 17, 2017. The wood and materials provider outperformed top- and bottom-line expectations. The Company also announced a 3-for-1 stock split and increased its dividend by 13.3%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the third quarter ended September 30, 2017, UFP's net sales surged 28% to $1.06 billion compared to $826.67 million for Q3 FY17. For the reported quarter, unit sales accounted for 22% of the Company's gross sales; price increases, primarily due to the commodity lumber market, accounted for 6% rise in sales. UFP's net sales topped analysts' estimates by $75 million.

For Q3 2017, UFP's new product sales of $107.7 million increased 21.7% on a y-o-y basis and represented 10.2% of total Company net sales. The Company has introduced 35 new products in 2017 to date, including 12 during Q3 2017.

During Q3 FY17, UFP's gross margins were down 60 basis points to 13.7%, primarily due to the rapid rise in the lumber market. The Company's gross profit dollars increased 23% to $144.69 million on a y-o-y basis. For Q3 FY17, UFP's earnings from operations jumped 20% to $52.27 million. The Company's earnings before interest, tax, depreciation, and amortization (EBITDA) for the reported quarter advanced 22% to approximately $67 million. UFP noted that acquisitions contributed approximately $5 million to operating profit and $7 million to EBITDA growth.

UFP's net earnings attributable to controlling interest were $33.69 million, up 21% compared to net earnings of $27.82 million in Q3 2016. The Company's diluted earnings per share were $1.64, up 21% compared to earnings of $1.36 per share for the year-ago same period. UFP's earnings came in ahead of Wall Street's estimates of $1.62 per share.

Universal Forest Products' Segment Results

During Q3 2017, the Retail sales totaled $391.9 million, up 16% on a y-o-y basis. The growth in the retail market sales was the result of a 7% increase from acquisitions, a 5% organic growth and a 4% increase in prices. The Company benefited from a sales increase of 20% and 13% to independent and big-box retailers, respectively, in the reported quarter.

For Q3 2017, the Construction segment sales advanced 16% to 310.0 million on a y-o-y basis. The growth in Construction sales was due to an 8% jump in unit sales and an 8% increase in prices. The increase in unit sales was driven by a 12% growth to manufactured housing builders and an 8% increase to residential builders.

The Industrial segment's sales surged 59% to $369.5 million on a y-o-y basis. The Company's growth in this market was primarily attributable to the September 2016 acquisition of idX Corp. Excluding acquisitions, the Company's sales in this market grew by 16% in the reported quarter, 11% through organic growth, and 5% through price increases. The organic growth was primarily the result of new customer acquisitions and share gains with existing customers.

Cash Matters

For the nine months ended September 30, 2017, UFP's cash flow from operating activities was $97.35 million, comprising of net earnings of $91 million along with the non-cash expenses of $41 million offset by a $31 million increase in cash invested in networking capital. The Company's cash cycle for the reported quarter excluding acquisitions was at 44 days compared to 43 days last year. Including acquisitions, UFP's cash cycle increased to 49 days.

UFP's capital expenditures of 57 million for the nine months of 2017 included expansionary CapEx of over 18 million. The Company is planning for a total spending of approximately 70 million for the year.

3-for-1 Stock Split; 13% Raise in Semiannual Dividend

UFP's Board of Directors approved a three-for-one stock split on October 17, 2017, to be effectuated in the form of a stock dividend of two additional shares of common stock for each outstanding share of common stock. The split will increase the number of outstanding shares of the Company's common stock from approximately 20.4 million to 61.2 million.

UFP's stock dividend will be payable on November 14, 2017, to stockholders of record as of the close of business on October 31, 2017. The Company's stock will begin trading at post-split price on November 15, 2017. Any shares purchased between the October 31, 2017, record date and the November 14, 2017, payment date will come with a "due bill, entitling the buyer to two additional shares for each share purchased.

Additionally, the Company's Board of Directors approved a 13.3% increase in the semiannual cash dividend to $0.51 per share, which equates to $0.17 per share after the stock split. The dividend is payable on December 15, 2017, to shareholders of record as of December 01, 2017.

Stock Performance

Universal Forest Products' share price finished yesterday's trading session at $108.39, advancing 2.67%. A total volume of 273.46 thousand shares have exchanged hands, which was higher than the 3-month average volume of 138.90 thousand shares. The Company's stock price surged 27.83% in the last three months, 13.71% in the past six months, and 18.14% in the previous twelve months. Additionally, the stock gained 6.08% since the start of the year. Shares of the Company have a PE ratio of 21.50 and have a dividend yield of 0.83%. The stock currently has a market cap of $2.22 billion.

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