UFP Industries Announces Second Quarter Results
Net sales exceed
“I want to thank the hard-working employees of UFP Industries for delivering another strong quarter. Their focus on innovation, efficiencies, and value-added solutions has helped us improve our gross margins, even as lower pricing and volume resulted in decreases in our top- and bottom-line results,” said Chairman and CEO Matt Missad. “The positive changes in our business mix and operating structure are producing better performance when compared to previous downward cycles in our business. Our strong cash-flow generation and balance sheet allow us to continue to invest in operational improvements and growing the business through new products and acquisitions, all while returning value to our shareholders. On July 26, 2023, the Board approved a 20 percent increase in the quarterly cash dividend to
Second Quarter 2023 Highlights (comparisons on a year-over-year basis):
-
Net sales of
decreased 30 percent due to a 22 percent decrease in prices and an 8 percent decrease in organic unit sales.$2.04 billion -
New product sales of
decreased 9 percent, largely due to lower lumber prices that the company passed on to customers. New product sales as a percent of total sales rose to 9 percent from 7 percent in 2022.$184 million -
Diluted EPS of
represents a 27 percent decrease from last year.$2.36 -
Adjusted EBITDA of
decreased 27 percent; adjusted EBITDA margin rose to 11.5 percent from 11 percent in 2022.$234 million
Capital Allocation
UFP Industries maintains a strong balance sheet, with
- Acquisitions. The company continues to seek acquisitions in core businesses that generate long-term growth and margin improvement, enhance its capabilities, and create incremental value for customers and shareholders.
-
Capital expenditures. The company lowered its target for capital investments to
in 2023 due to longer lead times required for most equipment and rolling stock. The company plans to double the production capacity of the popular Deckorators mineral-based composite (MBC) decking by investing approximately$175 -200 million in upgrades.$31 million -
Dividend payments. On July 26, 2023, the Board of Directors for UFP Industries approved a quarterly dividend payment of
per share, a 20 percent increase over the dividend paid in the first quarter of 2023. The dividend is payable on September 15, 2023, to shareholders of record on September 1, 2023.$0.30 -
Share repurchases. The company repurchased 700,597 shares during the first half of 2023 at an average share price of
(a total of$79.20 ). At their July 26 meeting, the Board of Directors authorized up to$55.5 million for share repurchases through July 31, 2024.$200 million
By business segment, the company reported the following second-quarter 2023 results:
UFP Retail Solutions
Net sales of
UFP Packaging
Net sales of
UFP Construction
Net sales of
CONFERENCE CALL
UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 4:30 p.m. ET on Wednesday, August 2, 2023. The call will be hosted by Chairman and CEO Matthew J. Missad and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at www.ufpinvestor.com/news-filings-reports. A replay of the call will be available through the website.
UFP Industries, Inc.
UFP Industries is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in
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
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 AND SIX MONTHS ENDED JUNE 2023/2022 |
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Quarter Period |
Year to Date |
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(In thousands, except per share data) |
|
2023 |
2022 |
2023 |
2022 |
||||||||||||||||||||||||
NET SALES |
|
$ |
2,043,918 |
|
|
100.0 |
|
% |
$ |
2,900,874 |
|
|
100.0 |
|
% |
$ |
3,866,394 |
|
|
100.0 |
|
% |
$ |
5,390,187 |
|
|
100.0 |
|
% |
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||||||||
COST OF GOODS SOLD |
|
|
1,643,851 |
|
|
80.4 |
|
|
|
2,397,422 |
|
|
82.6 |
|
|
|
3,107,998 |
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|
80.4 |
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|
4,408,372 |
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|
81.8 |
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||||||||
GROSS PROFIT |
|
|
400,067 |
|
|
19.6 |
|
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|
503,452 |
|
|
17.4 |
|
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|
758,396 |
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19.6 |
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981,815 |
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18.2 |
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||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
204,703 |
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|
10.0 |
|
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|
214,538 |
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|
7.4 |
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|
399,386 |
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|
10.3 |
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|
434,688 |
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|
8.1 |
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|
OTHER LOSSES (GAINS), NET |
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|
1,867 |
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|
0.1 |
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|
|
3,348 |
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|
0.1 |
|
|
|
3,805 |
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|
0.1 |
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|
2,536 |
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— |
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||||||||
EARNINGS FROM OPERATIONS |
|
|
193,497 |
|
|
9.5 |
|
|
|
285,566 |
|
|
9.8 |
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|
355,205 |
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9.2 |
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544,591 |
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10.1 |
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INTEREST AND OTHER |
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|
(4,025 |
) |
|
(0.2 |
) |
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|
8,566 |
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|
0.3 |
|
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|
(6,866 |
) |
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(0.2 |
) |
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|
13,476 |
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0.3 |
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||||||||
EARNINGS BEFORE INCOME TAXES |
|
|
197,522 |
|
|
9.7 |
|
|
|
277,000 |
|
|
9.5 |
|
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|
362,071 |
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|
9.4 |
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|
531,115 |
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|
9.9 |
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INCOME TAXES |
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46,734 |
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2.3 |
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|
69,147 |
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2.4 |
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|
85,705 |
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2.2 |
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130,131 |
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2.4 |
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NET EARNINGS |
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150,788 |
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7.4 |
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|
207,853 |
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7.2 |
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|
276,366 |
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|
7.1 |
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|
400,984 |
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7.4 |
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LESS NET LOSS (EARNINGS) ATTRIBUTABLE TO NONCONTROLLING INTEREST |
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(27 |
) |
|
— |
|
|
|
(4,735 |
) |
|
(0.2 |
) |
|
|
464 |
|
|
— |
|
|
|
(8,163 |
) |
|
(0.2 |
) |
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||||||||
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST |
|
$ |
150,761 |
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|
7.4 |
|
|
$ |
203,118 |
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|
7.0 |
|
|
$ |
276,830 |
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|
7.2 |
|
|
$ |
392,821 |
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|
7.3 |
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EARNINGS PER SHARE - BASIC |
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$ |
2.40 |
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$ |
3.24 |
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$ |
4.41 |
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$ |
6.25 |
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EARNINGS PER SHARE - DILUTED |
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$ |
2.36 |
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$ |
3.23 |
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$ |
4.35 |
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$ |
6.22 |
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COMPREHENSIVE INCOME |
|
$ |
155,266 |
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$ |
203,470 |
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$ |
287,096 |
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$ |
399,785 |
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LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
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|
(1,721 |
) |
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|
|
(4,640 |
) |
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|
(3,481 |
) |
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|
|
(9,017 |
) |
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||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST |
|
$ |
153,545 |
|
|
|
|
$ |
198,830 |
|
|
|
|
$ |
283,615 |
|
|
|
|
$ |
390,768 |
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 2023/2022 |
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||||||
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Quarter Period |
||||||||||||||||||||||
|
|
2023 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
NET SALES |
|
$ |
919,998 |
|
|
$ |
488,100 |
|
|
$ |
550,464 |
|
|
$ |
86,224 |
|
|
$ |
(868 |
) |
|
$ |
2,043,918 |
|
COST OF GOODS SOLD |
|
|
799,017 |
|
|
|
369,865 |
|
|
|
413,260 |
|
|
64,128 |
|
|
(2,419 |
) |
|
|
1,643,851 |
|||
GROSS PROFIT |
|
|
120,981 |
|
|
|
118,235 |
|
|
|
137,204 |
|
|
|
22,096 |
|
|
|
1,551 |
|
|
|
400,067 |
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
60,855 |
|
|
|
61,377 |
|
|
|
74,083 |
|
|
|
13,943 |
|
|
|
(5,555 |
) |
|
|
204,703 |
|
OTHER |
|
|
(54 |
) |
|
|
(6 |
) |
|
|
1,162 |
|
|
|
1,336 |
|
|
|
(571 |
) |
|
|
1,867 |
|
EARNINGS FROM OPERATIONS |
|
$ |
60,180 |
|
|
$ |
56,864 |
|
|
$ |
61,959 |
|
|
$ |
6,817 |
|
|
$ |
7,677 |
|
|
$ |
193,497 |
|
|
|
|
|
|
|
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|
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||||||
|
|
Quarter Period |
||||||||||||||||||||||
|
|
2022 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
NET SALES |
|
$ |
1,121,440 |
|
|
$ |
676,333 |
|
|
$ |
975,376 |
|
|
$ |
124,416 |
|
|
$ |
3,309 |
|
|
$ |
2,900,874 |
|
COST OF GOODS SOLD |
|
|
1,048,260 |
|
|
514,216 |
|
|
748,060 |
|
|
|
83,336 |
|
|
3,550 |
|
|
|
2,397,422 |
||||
GROSS PROFIT |
|
|
73,180 |
|
|
|
162,117 |
|
|
|
227,316 |
|
|
|
41,080 |
|
|
|
(241 |
) |
|
|
503,452 |
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
48,387 |
|
|
|
67,235 |
|
|
|
94,638 |
|
|
|
16,356 |
|
|
|
(12,078 |
) |
|
|
214,538 |
|
OTHER |
|
|
266 |
|
|
|
672 |
|
|
|
(154 |
) |
|
|
1,976 |
|
|
|
588 |
|
|
|
3,348 |
|
EARNINGS FROM OPERATIONS |
|
$ |
24,527 |
|
|
$ |
94,210 |
|
|
$ |
132,832 |
|
|
$ |
22,748 |
|
|
$ |
11,249 |
|
|
$ |
285,566 |
|
|
|
|
|
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||||||
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Year to Date |
||||||||||||||||||||||
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|
2023 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
NET SALES |
|
$ |
1,669,575 |
|
|
$ |
974,661 |
|
|
$ |
1,066,057 |
|
|
$ |
153,736 |
|
|
$ |
2,365 |
|
|
$ |
3,866,394 |
|
COST OF GOODS SOLD |
|
|
1,454,156 |
|
|
|
735,528 |
|
|
|
807,194 |
|
|
112,004 |
|
|
(884 |
) |
|
|
3,107,998 |
|||
GROSS PROFIT |
|
|
215,419 |
|
|
|
239,133 |
|
|
|
258,863 |
|
|
|
41,732 |
|
|
|
3,249 |
|
|
|
758,396 |
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
114,210 |
|
|
|
127,629 |
|
|
|
141,421 |
|
|
|
27,465 |
|
|
|
(11,339 |
) |
|
|
399,386 |
|
OTHER |
|
|
(27 |
) |
|
|
(92 |
) |
|
|
1,235 |
|
|
|
3,416 |
|
|
|
(727 |
) |
|
|
3,805 |
|
EARNINGS FROM OPERATIONS |
|
$ |
101,236 |
|
|
$ |
111,596 |
|
|
$ |
116,207 |
|
|
$ |
10,851 |
|
|
$ |
15,315 |
|
|
$ |
355,205 |
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year to Date |
||||||||||||||||||||||
|
|
2022 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
NET SALES |
|
$ |
2,114,672 |
|
|
$ |
1,287,702 |
|
|
$ |
1,761,847 |
|
|
$ |
219,983 |
|
|
$ |
5,983 |
|
|
$ |
5,390,187 |
|
COST OF GOODS SOLD |
|
|
1,907,155 |
|
|
976,031 |
|
|
1,373,119 |
|
|
147,360 |
|
|
4,707 |
|
|
|
4,408,372 |
|||||
GROSS PROFIT |
|
|
207,517 |
|
|
|
311,671 |
|
|
|
388,728 |
|
|
|
72,623 |
|
|
|
1,276 |
|
|
|
981,815 |
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
111,055 |
|
|
|
134,466 |
|
|
|
176,975 |
|
|
|
32,981 |
|
|
|
(20,789 |
) |
|
|
434,688 |
|
OTHER |
|
|
538 |
|
|
|
604 |
|
|
|
103 |
|
|
|
2,079 |
|
|
|
(788 |
) |
|
|
2,536 |
|
EARNINGS FROM OPERATIONS |
|
$ |
95,924 |
|
|
$ |
176,601 |
|
|
$ |
211,650 |
|
|
$ |
37,563 |
|
|
$ |
22,853 |
|
|
$ |
544,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 2023/2022 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Period |
||||||||||||||||||||||
|
|
2023 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
45,924 |
|
|
$ |
43,090 |
|
|
$ |
47,300 |
|
|
$ |
6,932 |
|
|
$ |
7,542 |
|
|
$ |
150,788 |
|
Interest and other |
|
|
23 |
|
|
|
419 |
|
|
|
(1 |
) |
|
|
(2,263 |
) |
|
|
(2,203 |
) |
|
|
(4,025 |
) |
Income taxes |
|
|
14,233 |
|
|
|
13,355 |
|
|
|
14,660 |
|
|
|
2,148 |
|
|
|
2,338 |
|
|
|
46,734 |
|
Expenses associated with share-based compensation arrangements |
|
|
1,315 |
|
|
|
1,703 |
|
|
|
1,686 |
|
|
|
225 |
|
|
|
3,309 |
|
|
|
8,238 |
|
Net (gain) loss on disposition and impairment of assets |
|
|
(10 |
) |
|
|
(7 |
) |
|
|
16 |
|
|
|
70 |
|
|
|
(87 |
) |
|
|
(18 |
) |
Depreciation expense |
|
|
6,029 |
|
|
|
7,995 |
|
|
|
4,634 |
|
|
|
929 |
|
|
|
7,425 |
|
|
|
27,012 |
|
Amortization of intangibles |
|
|
1,277 |
|
|
|
2,236 |
|
|
|
702 |
|
|
|
751 |
|
|
|
396 |
|
|
|
5,362 |
|
Adjusted EBITDA |
|
$ |
68,791 |
|
|
$ |
68,791 |
|
|
$ |
68,997 |
|
|
$ |
8,792 |
|
|
$ |
18,720 |
|
|
$ |
234,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of Net Sales |
|
|
7.5 |
% |
|
|
14.1 |
% |
|
|
12.5 |
% |
|
|
10.2 |
% |
|
|
(2156.7 |
)% |
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Period |
||||||||||||||||||||||
|
|
2022 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
18,146 |
|
|
$ |
69,949 |
|
|
$ |
99,890 |
|
|
$ |
14,233 |
|
|
$ |
5,635 |
|
|
$ |
207,853 |
|
Interest and other |
|
|
17 |
|
|
|
1,016 |
|
|
|
— |
|
|
|
3,789 |
|
|
|
3,744 |
|
|
|
8,566 |
|
Income taxes |
|
|
6,364 |
|
|
|
23,245 |
|
|
|
32,942 |
|
|
|
4,726 |
|
|
|
1,870 |
|
|
|
69,147 |
|
Expenses associated with share-based compensation arrangements |
|
|
1,061 |
|
|
|
1,236 |
|
|
|
1,143 |
|
|
|
99 |
|
|
|
2,072 |
|
|
|
5,611 |
|
Net loss (gain) on disposition and impairment of assets |
|
|
226 |
|
|
|
672 |
|
|
|
(13 |
) |
|
|
(5 |
) |
|
|
192 |
|
|
|
1,072 |
|
Depreciation expense |
|
|
4,556 |
|
|
|
6,759 |
|
|
|
3,354 |
|
|
|
715 |
|
|
|
6,808 |
|
|
|
22,192 |
|
Amortization of intangibles |
|
|
916 |
|
|
|
1,701 |
|
|
|
820 |
|
|
|
503 |
|
|
|
128 |
|
|
|
4,068 |
|
Adjusted EBITDA |
|
$ |
31,286 |
|
|
$ |
104,578 |
|
|
$ |
138,136 |
|
|
$ |
24,060 |
|
|
$ |
20,449 |
|
|
$ |
318,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of Net Sales |
|
|
2.8 |
% |
|
|
15.5 |
% |
|
|
14.2 |
% |
|
|
19.3 |
% |
|
|
618.0 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year to Date |
||||||||||||||||||||||
|
|
2023 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
77,240 |
|
|
$ |
84,415 |
|
|
$ |
88,704 |
|
|
$ |
11,620 |
|
|
$ |
14,387 |
|
|
$ |
276,366 |
|
Interest and other |
|
|
44 |
|
|
|
1,002 |
|
|
|
(6 |
) |
|
|
(4,372 |
) |
|
|
(3,534 |
) |
|
|
(6,866 |
) |
Income taxes |
|
|
23,952 |
|
|
|
26,179 |
|
|
|
27,509 |
|
|
|
3,603 |
|
|
|
4,462 |
|
|
|
85,705 |
|
Expenses associated with share-based compensation arrangements |
|
|
2,930 |
|
|
|
3,799 |
|
|
|
3,807 |
|
|
|
503 |
|
|
|
6,836 |
|
|
|
17,875 |
|
Net loss (gain) on disposition and impairment of assets |
|
|
26 |
|
|
|
(93 |
) |
|
|
(31 |
) |
|
|
60 |
|
|
|
(144 |
) |
|
|
(182 |
) |
Depreciation expense |
|
|
11,647 |
|
|
|
15,677 |
|
|
|
9,262 |
|
|
|
1,544 |
|
|
|
14,656 |
|
|
|
52,786 |
|
Amortization of intangibles |
|
|
2,332 |
|
|
|
4,482 |
|
|
|
1,499 |
|
|
|
1,283 |
|
|
|
775 |
|
|
|
10,371 |
|
Adjusted EBITDA |
|
$ |
118,171 |
|
|
$ |
135,461 |
|
|
$ |
130,744 |
|
|
$ |
14,241 |
|
|
$ |
37,438 |
|
|
$ |
436,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of Net Sales |
|
|
7.1 |
% |
|
|
13.9 |
% |
|
|
12.3 |
% |
|
|
9.3 |
% |
|
|
1583.0 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year to Date |
||||||||||||||||||||||
|
|
2022 |
||||||||||||||||||||||
(In thousands) |
|
Retail |
|
Packaging |
|
Construction |
|
All Other |
|
Corporate |
|
Total |
||||||||||||
Net earnings |
|
$ |
72,392 |
|
|
$ |
132,177 |
|
|
$ |
159,793 |
|
|
$ |
24,844 |
|
|
$ |
11,778 |
|
|
$ |
400,984 |
|
Interest and other |
|
|
40 |
|
|
|
1,528 |
|
|
|
— |
|
|
|
4,643 |
|
|
|
7,265 |
|
|
|
13,476 |
|
Income taxes |
|
|
23,492 |
|
|
|
42,896 |
|
|
|
51,857 |
|
|
|
8,076 |
|
|
|
3,810 |
|
|
|
130,131 |
|
Expenses associated with share-based compensation arrangements |
|
|
2,282 |
|
|
|
2,644 |
|
|
|
2,607 |
|
|
|
323 |
|
|
|
4,686 |
|
|
|
12,542 |
|
Net loss (gain) on disposition and impairment of assets |
|
|
531 |
|
|
|
607 |
|
|
|
(24 |
) |
|
|
5 |
|
|
|
(353 |
) |
|
|
766 |
|
Depreciation expense |
|
|
8,992 |
|
|
|
13,566 |
|
|
|
6,788 |
|
|
|
1,287 |
|
|
|
13,401 |
|
|
|
44,034 |
|
Amortization of intangibles |
|
|
1,799 |
|
|
|
3,416 |
|
|
|
1,684 |
|
|
|
1,585 |
|
|
|
256 |
|
|
|
8,740 |
|
Adjusted EBITDA |
|
$ |
109,528 |
|
|
$ |
196,834 |
|
|
$ |
222,705 |
|
|
$ |
40,763 |
|
|
$ |
40,843 |
|
|
$ |
610,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA as a Percentage of Net Sales |
|
|
5.2 |
% |
|
|
15.3 |
% |
|
|
12.6 |
% |
|
|
18.5 |
% |
|
|
682.7 |
% |
|
|
11.3 |
% |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) JUNE 2023/2022 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
2023 |
2022 |
|
LIABILITIES AND EQUITY |
|
2023 |
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
702,148 |
|
$ |
138,071 |
|
|
Cash Overdraft |
|
$ |
— |
|
$ |
11,926 |
|
Restricted cash |
|
|
761 |
|
|
729 |
|
Accounts payable |
|
|
264,408 |
|
|
386,833 |
|
|
Investments |
|
|
38,459 |
|
|
35,475 |
|
|
Accrued liabilities and other |
|
|
289,211 |
|
|
384,738 |
|
Accounts receivable |
|
|
802,300 |
|
|
1,046,543 |
|
|
Current portion of debt |
|
|
2,385 |
|
|
40,496 |
|
Inventories |
|
|
821,187 |
|
|
1,106,302 |
|
|
|
|
|
|
|
|
|
|
Other current assets |
|
|
50,203 |
|
|
49,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
2,415,058 |
|
|
2,376,444 |
|
|
TOTAL CURRENT LIABILITIES |
|
|
556,004 |
|
|
823,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
228,929 |
|
|
163,464 |
|
|
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS |
|
|
274,821 |
|
|
276,315 |
|
INTANGIBLE ASSETS, NET |
|
|
481,942 |
|
|
445,751 |
|
|
OTHER LIABILITIES |
|
|
171,349 |
|
|
185,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEMPORARY EQUITY |
|
|
6,772 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
|
718,014 |
|
|
625,164 |
|
|
SHAREHOLDERS' EQUITY |
|
|
2,834,997 |
|
|
2,325,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
3,843,943 |
|
$ |
3,610,823 |
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
3,843,943 |
|
$ |
3,610,823 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 2023/2022 |
|||||||||
|
|
|
|
|
|
|
|
||
(In thousands) |
|
2023 |
2022 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
||
Net earnings |
|
$ |
276,366 |
|
|
$ |
400,984 |
|
|
Adjustments to reconcile net earnings to net cash used in operating activities: |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Depreciation |
|
|
52,786 |
|
|
|
44,034 |
|
|
Amortization of intangibles |
|
|
10,371 |
|
|
|
8,740 |
|
|
Expense associated with share-based and grant compensation arrangements |
|
|
17,875 |
|
|
|
12,542 |
|
|
Deferred income taxes (credit) |
|
|
(319 |
) |
|
|
179 |
|
|
Unrealized (gain) loss on investment and other |
|
|
(1,291 |
) |
|
|
6,181 |
|
|
Equity in loss of investee |
|
|
1,005 |
|
|
|
1,532 |
|
|
Net (gain) loss on sale and disposition of assets |
|
|
(182 |
) |
|
|
766 |
|
|
Changes in: |
|
|
|
|
|
|
|
||
Accounts receivable |
|
|
(183,717 |
) |
|
|
(304,715 |
) |
|
Inventories |
|
|
154,413 |
|
|
|
(134,653 |
) |
|
Accounts payable and cash overdraft |
|
|
56,899 |
|
|
|
56,120 |
|
|
Accrued liabilities and other |
|
|
(63,142 |
) |
|
|
(1,313 |
) |
|
NET CASH FROM OPERATING ACTIVITIES |
|
|
321,064 |
|
|
|
90,397 |
|
|
|
|
|
|
|
|
|
|
||
CASH FLOWS USED IN INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
||
Purchases of property, plant, and equipment |
|
|
(84,981 |
) |
|
|
(71,675 |
) |
|
Proceeds from sale of property, plant and equipment |
|
|
789 |
|
|
|
2,029 |
|
|
Acquisitions, net of cash received and purchase of equity method investment |
|
|
67 |
|
|
|
(39,343 |
) |
|
Purchases of investments |
|
|
(14,747 |
) |
|
|
(15,166 |
) |
|
Proceeds from sale of investments |
|
|
11,486 |
|
|
|
8,221 |
|
|
Other |
|
|
2,076 |
|
|
|
(2,829 |
) |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
|
(85,310 |
) |
|
|
(118,763 |
) |
|
|
|
|
|
|
|
|
|
||
CASH FLOWS USED IN FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||
Borrowings under revolving credit facilities |
|
|
11,026 |
|
|
|
570,700 |
|
|
Repayments under revolving credit facilities |
|
|
(11,869 |
) |
|
|
(571,075 |
) |
|
Repayments of debt |
|
|
(29 |
) |
|
|
(2,485 |
) |
|
Contingent consideration payments and other |
|
|
(6,179 |
) |
|
|
(2,553 |
) |
|
Proceeds from issuance of common stock |
|
|
1,448 |
|
|
|
1,457 |
|
|
Dividends paid to shareholders |
|
|
(31,149 |
) |
|
|
(28,015 |
) |
|
Distributions to noncontrolling interest |
|
|
(4,859 |
) |
|
|
(2,053 |
) |
|
Repurchase of common stock |
|
|
(55,484 |
) |
|
|
(90,805 |
) |
|
Other |
|
|
48 |
|
|
|
(184 |
) |
|
NET CASH USED IN FINANCING ACTIVITIES |
|
|
(97,047 |
) |
|
|
(125,013 |
) |
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash |
|
|
4,579 |
|
|
|
956 |
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
143,286 |
|
|
|
(152,423 |
) |
|
|
|
|
|
|
|
|
|
||
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
559,623 |
|
|
|
291,223 |
|
|
|
|
|
|
|
|
|
|
||
ALL CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
702,909 |
|
|
$ |
138,800 |
|
|
|
|
|
|
|
|
|
|
||
Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
|
|
|
|
||
Cash and cash equivalents, beginning of period |
|
$ |
559,397 |
|
|
$ |
286,662 |
|
|
Restricted cash, beginning of period |
|
|
226 |
|
|
|
4,561 |
|
|
All cash and cash equivalents, beginning of period |
|
$ |
559,623 |
|
|
$ |
291,223 |
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
$ |
702,148 |
|
|
$ |
138,071 |
|
|
Restricted cash, end of period |
|
|
761 |
|
|
|
729 |
|
|
All cash and cash equivalents, end of period |
|
$ |
702,909 |
|
|
$ |
138,800 |
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802267547/en/
Dick Gauthier
VP of Investor Relations
(616) 365-1555
Source: UFP Industries, Inc.