GRAND RAPIDS, Mich., Oct. 18, 2016 (GLOBE NEWSWIRE) -- Universal Forest Products, Inc. (Nasdaq:UFPI) today announced recording-breaking 2016 third-quarter results, including net earnings attributable to controlling interests of $27.8 million, an increase of 8.9 percent over the same period of 2015. Year-to-date net earnings attributable to controlling interests were $80.4 million, up 30 percent over 2015. Earnings per diluted share were $1.36 in the third quarter of 2016, up from $1.26 in the third quarter of 2015. Net sales of $826.7 million – also a record for the third quarter – were up 8.4 percent over the same period of 2015.
“The employees of Universal are working hard to top the records they achieved during the last half of 2015, and we are pleased once again to report record results and growth,” said CEO Matthew J. Missad. “We grew sales significantly in two key markets and continue to increase our sales of new products.” Year-to-date new product sales were $247.9 million, a 16 percent increase over the $213.3 million reported for the same period of last year.
“We are continuing to make investments in our business and people to promote and enhance our continued success,” Missad noted. “We have added staff and are investing in their training to support our growth. We also are investing in several significant initiatives, including new international and e-commerce groups, and a research and design center, all of which we believe will contribute to our success in 2017 and beyond.”
Missad added that the Company continues to look for strategic acquisitions. Its purchase of idX Corp. closed near the end of the third quarter. idX is an international provider of highly customized merchandising solutions. Based in St. Louis, Mo., it has a network of more than 20 facilities across North America, Europe and Asia. Its sales in 2015 were approximately $303 million.
By market, the Company posted the following net sales results:
Retail: $339.7 million, up 15 percent over the third quarter of 2015
The Company benefited from a 9 percent increase in unit sales as well as rising lumber prices. Year-to-date retail unit sales are up 10 percent. During the third quarter, sales to big-box retailers increased 20 percent and sales to other retailers increased 8 percent, in part because of market-share gains and increasing sales of new products. Our retail customers have benefited from improving U.S. consumer demand, as evidenced by the healthy gains in same-store sales they reported in their most recent quarters.
Construction: $265.6 million, up 10 percent over the same period of 2015
Overall, unit sales in the construction market were up 6 percent over the same period of 2015, led by strong unit sales gains of 9 percent in residential construction. According to the U.S. Census Bureau, housing starts increased approximately 2.4 percent from June through August 2016 compared to the same period of 2015. The Company continues to focus its residential construction efforts in geographic areas of anticipated stable growth and recently added capacity in these markets.
Industrial: $233.8 million, down 1 percent from the third quarter of 2015
The Company has maintained its share of the industrial market but experienced a modest decrease in sales because of the softening U.S. economy, a decrease in U.S. exports, and its efforts to be more selective by focusing on higher-margin, value-added business.
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 Wednesday, October 19, 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 ID 68009457. 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 November 19, 2016, at any of the following numbers: (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, Europe, Asia 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 NINE MONTHS ENDED|
|Quarter Period||Year to Date|
|(In thousands, except per share data)||2016||2015||2016||2015|
|COST OF GOODS SOLD||708,611||85.7||651,569||85.5||2,028,629||85.2||1,930,739||86.4|
|SELLING, GENERAL AND|
|NET (GAIN) LOSS ON DISPOSITION AND|
|IMPAIRMENT OF ASSETS||45||-||230||-||94||-||68||-|
|EARNINGS FROM OPERATIONS||43,552||5.3||42,525||5.6||129,127||5.4||104,576||4.7|
|OTHER EXPENSE, NET||927||0.1||924||0.1||2,602||0.1||3,118||0.1|
|EARNINGS BEFORE INCOME TAXES||42,625||5.2||41,601||5.5||126,525||5.3||101,458||4.5|
|LESS NET EARNINGS ATTRIBUTABLE TO|
|NET EARNINGS ATTRIBUTABLE TO|
|EARNINGS PER SHARE - BASIC||$||1.36||$||1.26||$||3.95||$||3.06|
|EARNINGS PER SHARE - DILUTED||$||1.36||$||1.26||$||3.94||$||3.06|
|LESS COMPREHENSIVE INCOME ATTRIBUTABLE|
|TO NONCONTROLLING INTEREST||(495||)||(445||)||(1,576||)||(1,578||)|
|ATTRIBUTABLE TO CONTROLLING INTEREST||$||27,113||$||23,860||$||80,160||$||58,787|
|SUPPLEMENTAL SALES DATA|
|Quarter Period||Year to Date|
|Total Gross Sales||839,064||773,208||9||%||2,420,314||2,265,817||7||%|
|Total Net Sales||$||826,665||$||762,275||$||2,380,909||$||2,233,470|
|CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)|
|LIABILITIES AND EQUITY|
|CURRENT ASSETS||CURRENT LIABILITIES|
|Cash and cash equivalents||$||36,683||$||55,373||Cash overdraft||$||13,940||$||-|
|Restricted cash||909||1,139||Accounts payable||137,979||101,117|
|Accounts receivable||343,771||273,737||Current portion of debt||1,584||834|
|Other current assets||29,043||23,112|
|TOTAL CURRENT ASSETS||790,787||647,525||TOTAL CURRENT LIABILITIES||310,156||214,301|
|OTHER ASSETS||11,173||8,934||LONG-TERM DEBT AND|
|INTANGIBLE ASSETS, NET||224,186||200,929||CAPITAL LEASE OBLIGATIONS||110,362||84,722|
|PROPERTY, PLANT||OTHER LIABILITIES||43,029||56,757|
|AND EQUIPMENT, NET||284,491||254,530||EQUITY||847,090||756,138|
|TOTAL ASSETS||$||1,310,637||$||1,111,918||TOTAL LIABILITIES AND EQUITY||$||1,310,637||$||1,111,918|
|CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)|
|FOR THE NINE MONTHS ENDED|
|CASH FLOWS FROM OPERATING ACTIVITIES:|
|Adjustments to reconcile net earnings to net cash from operating activities:|
|Amortization of intangibles||1,868||2,730|
|Expense associated with share-based compensation arrangements||1,568||1,351|
|Excess tax benefits from share-based compensation arrangements||-||(33||)|
|Expense associated with stock grant plans||105||85|
|Deferred income tax||(53||)||(269||)|
|Equity in earnings of investee||(241||)||(283||)|
|Net loss on disposition and impairment of assets||94||68|
|Accounts payable and cash overdraft||35,026||10,864|
|Accrued liabilities and other||33,413||39,967|
|NET CASH FROM OPERATING ACTIVITIES||136,377||121,409|
|CASH FLOWS FROM INVESTING ACTIVITIES:|
|Purchases of property, plant, and equipment||(35,723||)||(36,520||)|
|Proceeds from sale of property, plant and equipment||516||2,382|
|Acquisitions, net of cash received||(66,615||)||(2,584||)|
|Repayments of debt of acquiree||(92,830||)||-|
|Purchases of noncontrolling interest||(1,100||)||(1,256||)|
|Advances of notes receivable||(5,400||)||(4,403||)|
|Collections of notes receivable and related interest||5,819||8,784|
|Purchases of investments||(4,468||)||(5,955||)|
|Proceeds from sale of investments||1,395||-|
|Cash restricted as to use||(323||)||(734||)|
|NET CASH USED IN INVESTING ACTIVITIES||(200,462||)||(40,106||)|
|CASH FLOWS FROM FINANCING ACTIVITIES:|
|Borrowings under revolving credit facilities||52,479||297,354|
|Repayments under revolving credit facilities||(27,177||)||(311,253||)|
|Proceeds from issuance of common stock||396||960|
|Distributions to noncontrolling interest||(3,160||)||(3,159||)|
|Dividends paid to shareholders||(8,529||)||(8,050||)|
|Repurchase of common stock||-||(800||)|
|NET CASH FROM (USED IN) FINANCING ACTIVITIES||13,981||(24,926||)|
|Effect of exchange rate changes on cash||(969||)||(1,004||)|
|NET CHANGE IN CASH AND CASH EQUIVALENTS||(51,073||)||55,373|
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD||87,756||-|
|CASH AND CASH EQUIVALENTS, END OF PERIOD||$||36,683||$||55,373|
AT THE COMPANY Lynn Afendoulis Director, Corporate Communications (616) 365-1502
Source:Universal Forest Products, Inc.