UFP Industries Announces Second Quarter Results

Rhea-AI Summary

UFP Industries (Nasdaq: UFPI) reported second quarter 2024 results with net sales of $1.9 billion, down 7% year-over-year. Net earnings attributable to controlling interest were $126 million, a 16% decrease. Earnings per diluted share were $2.05. The company maintained a strong balance sheet with $1.04 billion in cash.

Key highlights include:

• Adjusted EBITDA of $204 million, down 13%
• New product sales of $134 million, 7% of total sales
• Quarterly dividend increased by 10% to $0.33 per share
• Share repurchase program of $200 million authorized through July 31, 2025

UFP Industries expects challenging market conditions to continue for the remainder of 2024, with anticipated decreases in Retail and Packaging demand, but an increase in Construction demand.

Positive

• Strong balance sheet with $1.04 billion in cash and $2.3 billion in liquidity
• Quarterly dividend increased by 10% to $0.33 per share
• New $200 million share repurchase program authorized
• Targeting up to $300 million in capital investments for 2024
• Market share gains helping to offset lower demand in each segment
• 19% increase in organic unit sales for Factory Built construction

Negative

• Net sales decreased 7% to $1.9 billion
• Net earnings attributable to controlling interest decreased 16% to $126 million
• Adjusted EBITDA decreased 13% to $204 million
• Adjusted EBITDA margin declined 80 basis points to 10.7%
• Retail segment sales down 14% due to declining prices and unit sales
• Packaging segment sales down 11% with gross profit decreasing 29%

Financial Analyst

UFP Industries' Q2 2024 results paint a picture of resilience in a challenging business environment. With $1.9 billion in net sales, the company experienced a 7% year-over-year decrease, primarily due to a 6% drop in selling prices and a 1% decline in organic unit sales. Despite this, UFP managed to deliver $126 million in net earnings and $2.05 earnings per diluted share.

The company's strategic focus on long-term expansion and improvement is noteworthy. Investments in automation, consolidation of operations and pursuit of acquisitions demonstrate a proactive approach to enhancing profitability and market position. The strong balance sheet, with $1.04 billion in cash and $2.3 billion in liquidity, provides a solid foundation for these initiatives.

Segment-wise performance reveals mixed results:

• UFP Retail Solutions saw a 14% decline in net sales but a 3% increase in gross profit, indicating improved operational efficiency.
• UFP Packaging experienced an 11% drop in net sales and a 29% decrease in gross profit, reflecting competitive pressures and weaker demand.
• UFP Construction showed resilience with a 4% increase in net sales, though gross profit declined by 8%.

The company's capital allocation strategy, including a 10% increase in quarterly dividend and a new $200 million share repurchase authorization, signals confidence in its financial position and commitment to shareholder returns.

However, the outlook for the remainder of 2024 suggests continued challenges, with anticipated decreases in demand for Retail and Packaging segments, partially offset by growth in Construction. This mixed outlook, combined with the company's strategic initiatives, presents a complex picture for investors to consider.

Market Research Analyst

UFP Industries' Q2 results offer valuable insights into broader market trends. The 19% quarter-over-quarter decrease in Southern Yellow Pine prices is a significant indicator of lumber market dynamics, suggesting potential oversupply or reduced demand in the construction and home improvement sectors.

The company's segmented performance provides a nuanced view of different market sectors:

• The 5% unit sales decrease with big box customers in the Retail segment aligns with an easing in repair and remodel activity, potentially signaling a cooling in the home improvement market.
• In Packaging, the 10% increase in organic unit sales for PalletOne, contrasted with declines in Protective and Structural Packaging, suggests varying demand across industrial sectors.
• The Construction segment's performance, particularly the 19% increase in Factory Built and 4% growth in Site Built, indicates resilience in certain housing market segments despite overall economic uncertainties.

The company's outlook for the remainder of 2024, projecting decreases in Retail and Packaging demand but growth in Construction, aligns with broader economic indicators suggesting a potential slowdown in consumer spending but continued strength in certain construction sectors.

UFP's focus on new product development, with new products accounting for 7% of total sales, demonstrates the importance of innovation in maintaining market share in a competitive environment. However, the slight decrease from 7.4% in Q2 2023 warrants attention to the product lifecycle and innovation pipeline.

Overall, these results and outlook provide valuable context for understanding current trends in construction, packaging and retail-related industries, offering investors a window into broader economic patterns affecting these sectors.

GRAND RAPIDS, Mich.--(BUSINESS WIRE)-- UFP Industries, Inc. (Nasdaq: UFPI) today announced second quarter 2024 results including net sales of $1.9 billion, net earnings attributable to controlling interest of $126 million, and earnings per diluted share of $2.05.

“Our second quarter results were in line with expectations in a more challenging business cycle, and I am grateful for the efforts of all of our UFP teammates to adapt to this environment and adjust capacity to meet demand,” said Chairman and CEO Matthew J. Missad. “The weaker environment and expected near-term softness in demand have enabled us to more aggressively pursue our long-term expansion plans and improvement strategies. These efforts include investments in automation and consolidating operations to eliminate redundancies, lower costs and enhance the profitability of each of our facilities. Additionally, we are using our strong balance sheet to stay on offense by investing in acquisitions, new ventures, new value-added products, and organic expansion, while returning capital to shareholders through our recently increased dividend and share repurchase program. Our long-term outlook for growth remains strong.”

Second Quarter 2024 Highlights (comparisons on a year-over-year basis except where noted):

• Net sales of $1.9 billion decreased 7 percent due to a 6 percent decrease in selling prices and a 1 percent decrease in organic unit sales. Quarter over quarter, the price of Southern Yellow Pine (SYP) decreased 19 percent, which contributed to our decrease in selling prices.
• New product sales of $134 million were 7.0 percent of total sales compared to 7.4 percent in the second quarter of 2023. Many products that were considered new products in 2023 were sunset and not included in 2024 totals.
• Net earnings attributable to controlling interests of $126 million represents a 16 percent decrease from last year.
• Adjusted EBITDA¹ of $204 million represents a decrease of 13 percent while adjusted EBITDA margin¹ declined 80 basis points to 10.7 percent.

________________________

1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

Capital Allocation

UFP Industries maintains a strong balance sheet with $1.04 billion in cash on June 29, 2024, compared to $702 million in cash at the end of the second quarter of 2023. The company had approximately $2.3 billion of liquidity as of June 29, 2024. The company’s return-focused approach to capital allocation includes the following:

- Acquisitions and Organic Growth. The company continues to pursue strategic acquisitions and will invest in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company is targeting capital investments in 2024 of up to $300 million for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators, Site Built, metal packaging, and machine-built pallet businesses. Approximately $200 million of projects have been approved in 2024 and another $96 million in projects are pending approval. Longer lead times for equipment and site selection in the case of new locations may delay some investments until 2025.

- Dividend payments. On July 24, 2024, the UFP Industries Board of Directors approved a quarterly dividend payment of $0.33 per share, a 10 percent increase over the quarterly dividend of $0.30 per share paid in September 2023. The dividend is payable on September 16, 2024, to shareholders of record on September 2, 2024.

- Share repurchases. The company was authorized to purchase up to $200 million of outstanding stock through July 31, 2024. From July 26, 2023, through the end of the second quarter of 2024, the company repurchased approximately 1,477,000 shares at an average price of $110.96 (a total of $163.9 million). On July 24, 2024, the Board of Directors for UFP Industries authorized the company to repurchase up to $200 million of shares through July 31, 2025.

By business segment, the company reported the following second quarter 2024 results:

UFP Retail Solutions

Net sales of $809 million, down 14 percent compared to the second quarter of 2023, while gross profit increased 3 percent. Sales performance was attributable to a 7 percent decline in selling prices, a 5 percent decline in organic unit sales, and a 2 percent decline due to the transfer of certain product sales to the Packaging and Construction segments. Organic unit sales decreased 2 percent for Deckorators, 6 percent for ProWood and 4 percent for UFP-Edge. Overall, unit sales decreased 5 percent with big box customers, a decline that largely correlates with an easing in repair and remodel activity, and were flat with independent retailers. Gross profit for the retail segment increased 3 percent to $127 million, primarily due to operational improvements, SKU rationalization, and better inventory positioning and utilization of our managed inventory programs.

UFP Packaging

Net sales of $435 million were down 11 percent compared to the second quarter of 2023, due to an 8 percent decrease in selling prices and a 6 percent decline in organic unit sales, offset by a 3 percent increase from the transfer of certain product sales from the Retail segment. A 10 percent increase in organic unit sales for PalletOne, due to market share gains, partially offset an 11 percent decline in organic unit sales for Protective Packaging and a 12 percent decline in organic unit sales for Structural Packaging, attributable to weaker demand. Gross profit for the packaging segment decreased 29 percent to $84 million due to competitive price pressure and lower sales volumes.

UFP Construction

Net sales of $575 million increased 4 percent compared to the second quarter of 2023 as a 4 percent decrease in selling prices was offset by a 7 percent increase in organic unit sales and a 1 percent increase from the transfer of certain product sales from the Retail segment. Organic unit sales increased in Factory Built, up 19 percent due to an increase in industry production, and Site Built, up 4 percent, we believe due to market share gains in both existing and new product categories. Gross profit for the construction segment decreased 8 percent to $126 million due to competitive price pressure.

Short-Term Outlook

Lumber Market: We continue to anticipate lumber prices will remain at lower levels in 2024 based on current supply and demand dynamics.

End Market Demand: We continue to follow key indicators and forecasts in the markets we serve and have revised our outlook for the balance of 2024. We anticipate demand will decrease in Retail by mid-single digits, decrease in Packaging by mid- to high-single digits, and increase in Construction by low- to mid-single digits, reflecting continued strength in our Factory Built business. Generally, we expect the soft demand and competitive price environment will continue for the remainder of the year, resulting in more challenging year-over-year unit sales and profitability comparisons. We believe market share gains will help offset lower demand in each of our segments for the balance of the year.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 9 a.m. ET on Tuesday, July 30, 2024. 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 https://www.ufpinvestor.com/news-filings-reports#events---presentations. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries, Inc. 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 Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #493 on the Fortune 500 and #128 on Industry Week’s list of America’s Largest Manufacturers. For more about UFP Industries, 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.

Non-GAAP Financial Information

This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA, a non-GAAP financial measure, in order to evaluate historical and ongoing operations. Management believes that this non-GAAP financial measure is useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA is intended to supplement and should be read together with the financial results. Adjusted EBITDA should not be considered an alternative or substitute for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measure.

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 2024/2022
		Quarter Period														Year to Date
(In thousands, except per share data)		2024							2023							2024							2023
NET SALES		$	1,901,959			100.0		%	$	2,043,918			100.0		%	$	3,540,925			100.0		%	$	3,866,394			100.0		%
COST OF GOODS SOLD			1,539,216			80.9				1,643,851			80.4				2,852,104			80.5				3,107,998			80.4
GROSS PROFIT			362,743			19.1				400,067			19.6				688,821			19.5				758,396			19.6
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			203,155			10.7				204,703			10.0				395,214			11.2				399,386			10.3
OTHER LOSSES (GAINS), NET			554			—				1,867			0.1				750			—				3,805			0.1
EARNINGS FROM OPERATIONS			159,034			8.4				193,497			9.5				292,857			8.3				355,205			9.2
INTEREST AND OTHER			(9,406	)		(0.5	)			(4,025	)		(0.2	)			(22,169	)		(0.6	)			(6,866	)		(0.2	)
EARNINGS BEFORE INCOME TAXES			168,440			8.9				197,522			9.7				315,026			8.9				362,071			9.4
INCOME TAXES			42,208			2.2				46,734			2.3				67,695			1.9				85,705			2.2
NET EARNINGS			126,232			6.6				150,788			7.4				247,331			7.0				276,366			7.1
LESS NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST			(302	)		—				(27	)		—				(610	)		—				464			—
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST		$	125,930			6.6			$	150,761			7.4			$	246,721			7.0			$	276,830			7.2
EARNINGS PER SHARE - BASIC		$	2.05						$	2.40						$	4.01						$	4.41
EARNINGS PER SHARE - DILUTED		$	2.05						$	2.36						$	4.00						$	4.35
COMPREHENSIVE INCOME		$	118,252						$	155,266						$	238,221						$	287,096
LESS COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST			2,020							(1,721	)						1,429							(3,481	)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST		$	120,272						$	153,545						$	239,650						$	283,615

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND
RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED
JUNE 2024/2023
		Quarter Period 2024
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	809,067			$	435,204			$	574,547			$	81,470			$	1,671			$	1,901,959
COST OF GOODS SOLD			682,307				351,518				448,992				61,564				(5,165	)			1,539,216
GROSS PROFIT			126,760				83,686				125,555				19,906				6,836				362,743
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			65,291				52,996				73,307				14,576				(3,015	)			203,155
OTHER			1,686				1,174				237				(2,166	)			(377	)			554
EARNINGS FROM OPERATIONS			59,783				29,516				52,011				7,496				10,228				159,034
INTEREST AND OTHER			(178	)			645				(14	)			(1,202	)			(8,657	)			(9,406	)
EARNINGS BEFORE INCOME TAXES			59,961				28,871				52,025				8,698				18,885				168,440
INCOME TAXES			15,025				7,234				13,036				2,180				4,733				42,208
NET EARNINGS		$	44,936			$	21,637			$	38,989			$	6,518			$	14,152			$	126,232
INTEREST AND OTHER			(178	)			645				(14	)			(1,202	)			(8,657	)			(9,406	)
INCOME TAXES			15,025				7,234				13,036				2,180				4,733				42,208
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS			1,124				1,587				1,811				170				3,307				7,999
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS			1,158				1,174				287				23				(420	)			2,222
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY			—				—				(1,818	)			—				—				(1,818	)
DEPRECIATION EXPENSE			7,124				8,467				5,621				828				8,584				30,624
AMORTIZATION OF INTANGIBLES			998				2,216				703				1,503				433				5,853
ADJUSTED EBITDA		$	70,187			$	42,960			$	58,615			$	10,020			$	22,132			$	203,914
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			8.7	%			9.9	%			10.2	%			12.3	%			*				10.7	%
* Not meaningful

		Quarter Period 2023
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	938,630			$	488,100			$	550,464			$	67,592			$	(868	)		$	2,043,918
COST OF GOODS SOLD			815,808				369,865				413,260				47,337				(2,419	)			1,643,851
GROSS PROFIT			122,822				118,235				137,204				20,255				1,551				400,067
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			61,699				61,377				74,083				13,099				(5,555	)			204,703
OTHER			912				(6	)			1,162				370				(571	)			1,867
EARNINGS FROM OPERATIONS			60,211				56,864				61,959				6,786				7,677				193,497
INTEREST AND OTHER			20				419				(1	)			(2,260	)			(2,203	)			(4,025	)
EARNINGS BEFORE INCOME TAXES			60,191				56,445				61,960				9,046				9,880				197,522
INCOME TAXES			14,243				13,355				14,660				2,138				2,338				46,734
NET EARNINGS		$	45,948			$	43,090			$	47,300			$	6,908			$	7,542			$	150,788
INTEREST AND OTHER			20				419				(1	)			(2,260	)			(2,203	)			(4,025	)
INCOME TAXES			14,243				13,355				14,660				2,138				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			6,396				7,995				4,634				562				7,425				27,012
AMORTIZATION OF INTANGIBLES			1,277				2,236				702				751				396				5,362
ADJUSTED EBITDA		$	69,189			$	68,791			$	68,997			$	8,394			$	18,720			$	234,091
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			7.4	%			14.1	%			12.5	%			12.4	%			*				11.5	%
* Not meaningful

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND
RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 2024/2023
		Year to Date 2024
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	1,437,832			$	859,622			$	1,092,443			$	148,417			$	2,611			$	3,540,925
COST OF GOODS SOLD			1,209,948				690,496				852,553				110,566				(11,459	)			2,852,104
GROSS PROFIT			227,884				169,126				239,890				37,851				14,070				688,821
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			120,901				106,937				142,457				27,967				(3,048	)			395,214
OTHER			1,220				1,427				80				(1,485	)			(492	)			750
EARNINGS FROM OPERATIONS			105,763				60,762				97,353				11,369				17,610				292,857
INTEREST AND OTHER			(272	)			1,233				(25	)			(4,793	)			(18,312	)			(22,169	)
EARNINGS BEFORE INCOME TAXES			106,035				59,529				97,378				16,162				35,922				315,026
INCOME TAXES			23,036				12,564				20,921				3,478				7,696				67,695
NET EARNINGS		$	82,999			$	46,965			$	76,457			$	12,684			$	28,226			$	247,331
INTEREST AND OTHER			(272	)			1,233				(25	)			(4,793	)			(18,312	)			(22,169	)
INCOME TAXES			23,036				12,564				20,921				3,478				7,696				67,695
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS			2,812				3,776				4,276				469				7,943				19,276
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS			886				1,427				286				14				(622	)			1,991
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY			—				(37	)			(1,818	)			—				—				(1,855	)
DEPRECIATION EXPENSE			14,089				16,936				11,005				1,617				16,996				60,643
AMORTIZATION OF INTANGIBLES			1,996				4,408				1,405				3,037				889				11,735
ADJUSTED EBITDA		$	125,546			$	87,272			$	112,507			$	16,506			$	42,816			$	384,647
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			8.7	%			10.2	%			10.3	%			11.1	%			*				10.9	%
* Not meaningful

		Year to Date 2023
(In thousands)		Retail				Packaging				Construction				All Other				Corporate				Total
NET SALES		$	1,699,924			$	974,661			$	1,066,057			$	123,387			$	2,365			$	3,866,394
COST OF GOODS SOLD			1,481,798				735,528				807,194				84,362				(884	)			3,107,998
GROSS PROFIT			218,126				239,133				258,863				39,025				3,249				758,396
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			115,612				127,629				141,421				26,063				(11,339	)			399,386
OTHER			2,045				(92	)			1,235				1,344				(727	)			3,805
EARNINGS FROM OPERATIONS			100,469				111,596				116,207				11,618				15,315				355,205
INTEREST AND OTHER			41				1,002				(6	)			(4,369	)			(3,534	)			(6,866	)
EARNINGS BEFORE INCOME TAXES			100,428				110,594				116,213				15,987				18,849				362,071
INCOME TAXES			23,740				26,179				27,509				3,815				4,462				85,705
NET EARNINGS		$	76,688			$	84,415			$	88,704			$	12,172			$	14,387			$	276,366
INTEREST AND OTHER			41				1,002				(6	)			(4,369	)			(3,534	)			(6,866	)
INCOME TAXES			23,740				26,179				27,509				3,815				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			12,230				15,677				9,262				961				14,656				52,786
AMORTIZATION OF INTANGIBLES			2,332				4,482				1,499				1,283				775				10,371
ADJUSTED EBITDA		$	117,987			$	135,461			$	130,744			$	14,425			$	37,438			$	436,055
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES			6.9	%			13.9	%			12.3	%			11.7	%			*				11.3	%
* Not meaningful

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
JUNE 2024/2023
(In thousands)
ASSETS			2024			2023		LIABILITIES AND EQUITY			2024			2023
CURRENT ASSETS								CURRENT LIABILITIES
Cash and cash equivalents		$	1,041,341		$	702,148		Accounts payable		$	263,318		$	264,408
Restricted cash			761			761		Accrued liabilities and other			281,316			289,211
Investments			36,740			38,459		Current portion of debt			43,754			2,385
Accounts receivable			724,921			802,300
Inventories			684,813			821,187
Other current assets			65,453			50,203
TOTAL CURRENT ASSETS			2,554,029			2,415,058		TOTAL CURRENT LIABILITIES			588,388			556,004
OTHER ASSETS			259,830			228,929		LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS			232,979			274,821
INTANGIBLE ASSETS, NET			505,138			481,942		OTHER LIABILITIES			180,686			171,349
								TEMPORARY EQUITY			18,931			6,772
PROPERTY, PLANT AND EQUIPMENT, NET			819,497			718,014		SHAREHOLDERS' EQUITY			3,117,510			2,834,997
TOTAL ASSETS		$	4,138,494		$	3,843,943		TOTAL LIABILITIES AND EQUITY		$	4,138,494		$	3,843,943

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 2024/2023
(In thousands)		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings		$	247,331			$	276,366
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation			60,643				52,786
Amortization of intangibles			11,735				10,371
Expense associated with share-based and grant compensation arrangements			19,276				17,875
Deferred income taxes			299				(319	)
Unrealized gain on investment and other			(1,825	)			(1,291	)
Equity in loss of investee			1,236				1,005
Net loss (gain) on sale, disposition and impairment of assets			1,991				(182	)
Gain from reduction of estimated earnout liability			(1,855	)			—
Changes in:
Accounts receivable			(176,839	)			(183,717	)
Inventories			41,684				154,413
Accounts payable and cash overdraft			61,125				56,899
Accrued liabilities and other			(25,723	)			(63,142	)
NET CASH FROM OPERATING ACTIVITIES			239,078				321,064
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchases of property, plant, and equipment			(106,585	)			(84,981	)
Proceeds from sale of property, plant and equipment			2,353				789
Acquisitions, net of cash received and purchase of equity method investment			—				67
Purchases of investments			(16,416	)			(14,747	)
Proceeds from sale of investments			9,284				11,486
Other			(7,674	)			2,076
NET CASH USED IN INVESTING ACTIVITIES			(119,038	)			(85,310	)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Borrowings under revolving credit facilities			12,354				11,026
Repayments under revolving credit facilities			(11,988	)			(11,869	)
Repayments of debt			—				(29	)
Repayment of debt on behalf of investee			(6,303	)			—
Contingent consideration payments and other			(4,779	)			(6,179	)
Proceeds from issuance of common stock			1,470				1,448
Dividends paid to shareholders			(40,660	)			(31,149	)
Distributions to noncontrolling interest			(9,400	)			(4,859	)
Payments to taxing authorities in connection with shares directly withheld from employees			(17,838	)			—
Repurchase of common stock			(119,362	)			(55,484	)
Other			38				48
NET CASH USED IN FINANCING ACTIVITIES			(196,468	)			(97,047	)
Effect of exchange rate changes on cash			(3,726	)			4,579
NET CHANGE IN CASH AND CASH EQUIVALENTS			(80,154	)			143,286
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			1,122,256				559,623
ALL CASH AND CASH EQUIVALENTS, END OF PERIOD		$	1,042,102			$	702,909
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period		$	1,118,329			$	559,397
Restricted cash, beginning of period			3,927				226
All cash and cash equivalents, beginning of period		$	1,122,256			$	559,623
Cash and cash equivalents, end of period		$	1,041,341			$	702,148
Restricted cash, end of period			761				761
All cash and cash equivalents, end of period		$	1,042,102			$	702,909

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730582644/en/

Dick Gauthier

VP of Investor Relations

(616) 365-1555

Source: UFP Industries, Inc.

FAQ

What were UFP Industries' (UFPI) earnings per share in Q2 2024?

UFP Industries reported earnings per diluted share of $2.05 for the second quarter of 2024.

How much cash did UFP Industries (UFPI) have on hand as of June 29, 2024?

UFP Industries had $1.04 billion in cash on June 29, 2024, compared to $702 million at the end of the second quarter of 2023.

What is UFP Industries' (UFPI) new quarterly dividend amount?

UFP Industries increased its quarterly dividend by 10% to $0.33 per share, payable on September 16, 2024.

How much did UFP Industries (UFPI) authorize for share repurchases in July 2024?

On July 24, 2024, UFP Industries authorized a new share repurchase program of up to $200 million through July 31, 2025.

What is UFP Industries' (UFPI) outlook for the remainder of 2024?

UFP Industries expects challenging market conditions to continue, with anticipated decreases in Retail and Packaging demand, but an increase in Construction demand for the remainder of 2024.