“We cannot give enough credit to the entire UFP team for the significant progress they have made to add more value to our products and services to better serve our customers. Our long streak of record-breaking results is evidence of their hard work and success,” said CEO
First Quarter 2022 Highlights (comparisons on a year-over-year basis):
- Net sales of
$2.49 billion increased 36 percent due to a 26 percent increase in lumber prices, a 3 percent increase in organic unit sales, and a 7 percent increase in unit sales from acquisitions. - Earnings from operations of
$259 million increased 88 percent. Acquisitions contributed$10 million to earnings. - An increase in SG&A of
$70 million , or 47 percent, is largely attributable to increases in bonus and sales incentive compensation expenses ($46 million ) resulting from increased profitability, increases in wages and benefits ($10 million ), and recent acquisitions ($5 million ). SG&A as a percentage of gross profit fell from 52 percent to 46 percent. - New product sales of
$151 million increased 58 percent. This does not include new products sales of$80 million during the first quarter of 2021 that no longer meet our criteria of being a new product. - Adjusted EBITDA of
$292.2 million increased 80 percent, and adjusted EBITDA margin improved by 280 basis points to 11.7 percent. Acquisitions contributed$12 million to adjusted EBITDA.
- The company has targeted
$175-225 million for capital expenditures in 2022, an increase over the$151 million spent in 2021. - In
February 2022 , the Board of Directors ofUFP Industries authorized an increase in the company’s share repurchase program of up to 2.6 million shares, and the company purchased approximately 800,000 shares at an average price of$77.53 in March andApril 2022 under its 10b51 share repurchase plan. - On
April 20, 2022 , the Board approved an increase in its quarterly dividend payment to$0.25 per share, an increase of 25 percent over the dividend paid onMarch 15, 2022 , and 67 percent higher than the dividend paid onJune 15, 2021 . The dividend is payable onJune 15, 2022 , to shareholders of record onJune 1, 2022 . - The company continues to seek opportunities to invest in companies that represent a strong strategic fit and allow it to drive new growth, enhance its capabilities, and create more value for its customers and shareholders.
“We continue to invest in and build upon the successful transformation of
By business segment, the company reported the following first quarter 2022 results:
UFP Retail Solutions
An organic unit sales decline in several product lines is largely attributable to the return to more normal consumer buying habits in 2022 after the unusually high pandemic-related sales of pressure-treated lumber in the first quarter of 2021. Organic unit sales fell 7 percent for
Gross profit for the retail segment rose 34 percent to
Gross profit rose 87 percent to
Gross profit increased 83 percent to
More than 75 percent of the company’s residential construction sales were in areas such as
CONFERENCE CALL
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
Non-GAAP Financial Information
This release includes certain financial information not prepared in accordance with
Net earnings
Net earnings refers to net earnings attributable to controlling interest unless specifically noted.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2022/2021
Quarter Period and Year to Date | |||||||||||||
(In thousands, except per share data) | 2022 | 2021 | |||||||||||
$ | 2,489,313 | 100.0 | % | $ | 1,825,004 | 100.0 | % | ||||||
COST OF GOODS SOLD | 2,010,950 | 80.8 | 1,538,450 | 84.3 | |||||||||
GROSS PROFIT | 478,363 | 19.2 | 286,554 | 15.7 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 220,150 | 8.8 | 150,098 | 8.2 | |||||||||
OTHER (GAINS) LOSSES, NET | (812 | ) | — | (1,031 | ) | (0.1 | ) | ||||||
EARNINGS FROM OPERATIONS | 259,025 | 10.4 | 137,487 | 7.5 | |||||||||
OTHER INTEREST AND EXPENSE, NET | 4,910 | 0.2 | 1,485 | 0.1 | |||||||||
EARNINGS BEFORE INCOME TAXES | 254,115 | 10.2 | 136,002 | 7.5 | |||||||||
INCOME TAXES | 60,984 | 2.4 | 31,751 | 1.7 | |||||||||
NET EARNINGS | 193,131 | 7.8 | 104,251 | 5.7 | |||||||||
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (3,428 | ) | (0.1 | ) | (940 | ) | (0.1 | ) | |||||
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 189,703 | 7.6 | $ | 103,311 | 5.7 | |||||||
EARNINGS PER SHARE - BASIC | $ | 3.01 | $ | 1.67 | |||||||||
EARNINGS PER SHARE - DILUTED | $ | 3.00 | $ | 1.67 | |||||||||
COMPREHENSIVE INCOME | $ | 196,315 | $ | 102,055 | |||||||||
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,377 | ) | (414 | ) | |||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 191,938 | $ | 101,641 | |||||||||
SUPPLEMENTAL DATA | |||||||||||||||
(In thousands) | Quarter Period and Year to Date | ||||||||||||||
Segment Classification | 2022 | 2021 | % change | ||||||||||||
Retail | $ | 993,232 | $ | 759,021 | 30.9 | % | |||||||||
Industrial | 611,369 | 448,874 | 36.2 | % | |||||||||||
Construction | 786,471 | 559,530 | 40.6 | % | |||||||||||
All Other | 98,241 | 57,579 | 70.6 | % | |||||||||||
Total | $ | 2,489,313 | $ | 1,825,004 | 36.4 | % | |||||||||
2022 | % of Sales | 2021 | % of Sales | ||||||||||||
SG&A | $ | 220,150 | 8.8 | % | $ | 150,098 | 8.2 | % | |||||||
SG&A as a Percentage of Gross Profit | 46.0 | % | 52.4 | % | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2022/2021
Quarter Period and Year to Date | ||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||
(In thousands) | Retail | Industrial | Construction | All Other | Corporate | Total | ||||||||||||||||||
$ | 993,232 | $ | 611,369 | $ | 786,471 | $ | 95,567 | $ | 2,674 | $ | 2,489,313 | |||||||||||||
COST OF GOODS SOLD | 858,895 | 461,815 | 625,059 | 64,024 | 1,157 | 2,010,950 | ||||||||||||||||||
GROSS PROFIT | 134,337 | 149,554 | 161,412 | 31,543 | 1,517 | 478,363 | ||||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 62,668 | 67,231 | 82,337 | 16,625 | (8,711 | ) | 220,150 | |||||||||||||||||
OTHER | 272 | (68 | ) | 257 | 103 | (1,376 | ) | (812 | ) | |||||||||||||||
EARNINGS FROM OPERATIONS | $ | 71,397 | $ | 82,391 | $ | 78,818 | $ | 14,815 | $ | 11,604 | $ | 259,025 | ||||||||||||
Quarter Period and Year to Date | ||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||
(In thousands) | Retail | Industrial | Construction | All Other | Corporate | Total | ||||||||||||||||||
$ | 759,021 | $ | 448,874 | $ | 559,530 | $ | 55,577 | $ | 2,002 | $ | 1,825,004 | |||||||||||||
COST OF GOODS SOLD | 658,548 | 368,549 | 470,846 | 38,026 | 2,481 | 1,538,450 | ||||||||||||||||||
GROSS PROFIT | 100,473 | 80,325 | 88,684 | 17,551 | (479 | ) | 286,554 | |||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 47,100 | 40,113 | 55,545 | 10,421 | (3,081 | ) | 150,098 | |||||||||||||||||
OTHER | (172 | ) | (198 | ) | 121 | (848 | ) | 66 | (1,031 | ) | ||||||||||||||
EARNINGS FROM OPERATIONS | $ | 53,545 | $ | 40,410 | $ | 33,018 | $ | 7,978 | $ | 2,536 | $ | 137,487 | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 2022/2021
(In thousands) | ||||||||||||||||
ASSETS | 2022 | 2021 | LIABILITIES AND EQUITY | 2022 | 2021 | |||||||||||
CURRENT ASSETS | CURRENT LIABILITIES | |||||||||||||||
Cash and cash equivalents | $ | 73,783 | $ | 44,399 | Cash Overdraft | $ | 61,711 | $ | 47,140 | |||||||
Restricted cash | 729 | 629 | Accounts payable | 425,956 | 299,398 | |||||||||||
Investments | 35,465 | 31,439 | Accrued liabilities | 372,640 | 264,384 | |||||||||||
Accounts receivable | 1,095,362 | 808,105 | Current portion of debt | 42,895 | 109 | |||||||||||
Inventories | 1,230,351 | 823,414 | ||||||||||||||
Other current assets | 36,727 | 29,072 | ||||||||||||||
TOTAL CURRENT ASSETS | 2,472,417 | 1,737,058 | TOTAL CURRENT LIABILITIES | 903,202 | 611,031 | |||||||||||
OTHER ASSETS | 155,438 | 145,261 | ||||||||||||||
INTANGIBLE ASSETS, NET | 445,232 | 415,402 | LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | 379,015 | 426,310 | |||||||||||
OTHER LIABILITIES | 173,577 | 162,204 | ||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 600,879 | 488,367 | EQUITY | 2,218,172 | 1,586,543 | |||||||||||
TOTAL ASSETS | $ | 3,673,966 | $ | 2,786,088 | TOTAL LIABILITIES AND EQUITY | $ | 3,673,966 | $ | 2,786,088 | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2022/2021
(In thousands) | 2022 | 2021 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net earnings | $ | 193,131 | $ | 104,251 | |||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||||
Depreciation | 21,842 | 18,733 | |||||||
Amortization of intangibles | 4,672 | 3,998 | |||||||
Expense associated with share-based and grant compensation arrangements | 6,931 | 2,981 | |||||||
Deferred income taxes | 101 | 142 | |||||||
Unrealized loss (gain) on investment and other | 1,601 | (1,754 | ) | ||||||
Equity in earnings of investee | 515 | 630 | |||||||
Net gain on sale and disposition of assets | (306 | ) | (532 | ) | |||||
Changes in: | |||||||||
Accounts receivable | (352,928 | ) | (253,323 | ) | |||||
Inventories | (258,019 | ) | (207,768 | ) | |||||
Accounts payable and cash overdraft | 143,895 | 121,892 | |||||||
Accrued liabilities and other | (9,722 | ) | 14,090 | ||||||
(248,287 | ) | (196,660 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Purchases of property, plant, and equipment | (28,816 | ) | (34,656 | ) | |||||
Proceeds from sale of property, plant and equipment | 1,207 | 5,062 | |||||||
Acquisitions and purchase of noncontrolling interest, net of cash received | (24,571 | ) | (261,133 | ) | |||||
Purchases of investments | (6,030 | ) | (8,738 | ) | |||||
Proceeds from sale of investments | 4,725 | 3,381 | |||||||
Other | (2,995 | ) | (414 | ) | |||||
(56,480 | ) | (296,498 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Borrowings under revolving credit facilities | 242,950 | 236,280 | |||||||
Repayments under revolving credit facilities | (141,438 | ) | (121,570 | ) | |||||
Repayments of debt | (199 | ) | — | ||||||
Contingent consideration payment and other | (551 | ) | (627 | ) | |||||
Proceeds from issuance of common stock | 663 | 363 | |||||||
Dividends paid to shareholders | (12,541 | ) | (9,274 | ) | |||||
Distributions to noncontrolling interest | (2,053 | ) | (2,914 | ) | |||||
Repurchase of common stock | (501 | ) | — | ||||||
Other | — | (331 | ) | ||||||
NET CASH FROM FINANCING ACTIVITIES | 86,330 | 101,927 | |||||||
Effect of exchange rate changes on cash | 1,726 | (349 | ) | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (216,711 | ) | (391,580 | ) | |||||
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 291,223 | 436,608 | |||||||
ALL CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 74,512 | $ | 45,028 | |||||
Reconciliation of cash and cash equivalents and restricted cash: | |||||||||
Cash and cash equivalents, beginning of period | $ | 286,662 | $ | 436,507 | |||||
Restricted cash, beginning of period | 4,561 | 101 | |||||||
All cash and cash equivalents, beginning of period | $ | 291,223 | $ | 436,608 | |||||
Cash and cash equivalents, end of period | $ | 73,783 | $ | 44,399 | |||||
Restricted cash, end of period | 729 | 629 | |||||||
All cash and cash equivalents, end of period | $ | 74,512 | $ | 45,028 | |||||
ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2022/2021
Quarter Period and Year to Date | ||||||||
(In thousands) | 2022 | 2021 | ||||||
Net earnings | $ | 193,131 | $ | 104,251 | ||||
Interest expense | 3,302 | 3,151 | ||||||
Interest and investment income | (509 | ) | (542 | ) | ||||
Income taxes | 60,984 | 31,751 | ||||||
Expenses associated with share-based compensation arrangements | 6,931 | 2,981 | ||||||
Net gain on disposition and impairment of assets | (306 | ) | (532 | ) | ||||
Equity in earnings of investee | 515 | 630 | ||||||
Unrealized loss (gain) on investments | 1,602 | (1,754 | ) | |||||
Depreciation expense | 21,842 | 18,733 | ||||||
Amortization of intangibles | 4,672 | 3,998 | ||||||
Adjusted EBITDA | $ | 292,164 | $ | 162,667 | ||||
Adjusted EBITDA as a Percentage of | 11.7 | % | 8.9 | % | ||||
---------------AT THE COMPANY---------------
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(616) 365-1555
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