UFP Industries Announces Second Quarter Results

GRAND RAPIDS, Mich.--()--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

 

 

 

 

 

 

 

 

 

 

 

Contacts

Dick Gauthier
VP of Investor Relations
(616) 365-1555

Release Summary

UFP Industries Announces Second Quarter Results

Contacts

Dick Gauthier
VP of Investor Relations
(616) 365-1555