UFP Industries Announces Third Quarter Results

GRAND RAPIDS, Mich.--()--UFP Industries, Inc. (Nasdaq: UFPI) today announced third quarter 2024 results including net sales of $1.65 billion, net earnings attributable to controlling interest of $100 million, and earnings per diluted share of $1.64.

"Our third quarter results were impacted by softer demand and broad-based pricing pressure which reduced our revenue and profit margins. We are managing through these ongoing challenges by operating more efficiently, aligning our overhead with lower demand levels and eliminating unnecessary costs. I am confident our teammates will respond appropriately to the changing economy while enhancing the pursuit of our strategic priorities. While we expect conditions to remain challenging as we move into 2025, we are well positioned to capitalize on opportunities when markets recover and remain on track to achieve our longer-term profitability targets,” said Chairman and CEO Matthew J. Missad.

“When the economy slows, it also creates opportunities to obtain more appropriate pricing on strategic acquisitions; invest in new products, automation and technology; and pursue organic expansion. We plan to leverage our strong balance sheet and free cash flow generation to pursue growth initiatives that drive ROI and expand our market share, while pursuing share buybacks when our stock is at an attractive level.”

“Finally, I want to give special thanks to our teammates in the southeastern U.S. for their dedication and perseverance after the recent hurricanes. Despite their own storm-related personal challenges, they worked long hours to make sure our customers were taken care of. They embody the UFP culture by also caring for their neighbors and communities and helping the UFPI Foundation identify charities to support in the hardest-hit communities where we operate. I am proud to be on their team.”

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

  • Net sales of $1.65 billion decreased 10 percent due to a 3 percent decrease in organic unit sales and a 7 percent decrease in selling prices. The price of Southern Yellow Pine (SYP), which comprises approximately two-thirds of our lumber purchases, decreased 21 percent and contributed to the decrease in our selling prices.
  • New product sales of $119 million were 7.2 percent of total sales compared to 7.6 percent in the third quarter of 2023. Many products that were considered new products in 2023 were sunset and not included in 2024 totals. In 2024, we also increased the margin threshold for new products, resulting in certain product lines no longer meeting our growth and margin requirements for the purpose of being categorized as new products.
  • Net earnings attributable to controlling interests of $100 million represents a 26 percent decrease from last year.
  • Adjusted EBITDA1 of $165 million represents a decrease of 21 percent while adjusted EBITDA margin1 declined 140 basis points to 10.0 percent.

Capital Allocation

UFP Industries maintains a strong balance sheet with $1.19 billion in cash as of September 28, 2024, compared to $957 million in cash at the end of the third quarter of 2023. The company had approximately $2.4 billion of liquidity as of September 28, 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 has targeted approximately $1 billion in capital investments over the next five years, including 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, structural and protective packaging, and machine-built pallet businesses. Approximately $295 million in capital projects have been approved in 2024 and another $55 million are pending approval.

- Dividend payments. On October 23, 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 December 2023. The dividend is payable on December 16, 2024, to shareholders of record on December 2, 2024.

- Share repurchases. On July 24, 2024, the UFP Industries Board of Directors authorized the company to repurchase up to $200 million of shares through July 31, 2025. No shares have been repurchased under this new authorization.

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

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

UFP Retail Solutions

Net sales of $636 million, down 13 percent compared to the third quarter of 2023, attributable to a 4 percent decline in organic unit sales, a 7 percent decline in selling prices, and a 2 percent decline due to the transfer of certain product sales to the Packaging and Construction segments. Organic unit sales decreased 5 percent for ProWood, 4 percent for UFP-Edge, and 3 percent for Deckorators. Overall, unit sales decreased 3 percent with big box customers, reflective of ongoing softening in repair and remodel activity. Independent dealer sales decreased 8 percent, a decline that more closely correlates to housing starts. Gross profit of $93 million decreased 11 percent.

UFP Packaging

Net sales of $402 million were down 11 percent compared to the third quarter of 2023, due to a 5 percent decline in organic unit sales and an 8 percent decrease in selling prices, partially offset by a 2 percent increase from the transfer of certain product sales from the Retail segment. A 10 percent decline in organic unit sales for Structural Packaging, attributable to weaker demand, drove results in the quarter and were partially offset by a 2 percent increase in organic unit sales for PalletOne and a 4 percent increase in organic unit sales for Protective Packaging, both due to market share gains. Gross profit for the Packaging segment decreased 24 percent to $71 million due to competitive price pressure and lower sales volumes.

UFP Construction

Net sales of $535 million decreased 8 percent compared to the third quarter of 2023, attributable to a 2 percent decrease in organic unit sales and a 7 percent decrease in selling prices, partially offset by a 1 percent increase from the transfer of certain product sales from the Retail segment. Organic unit sales increased 11 percent in Factory Built due to an increase in industry production and market share gains. Organic unit sales for Site Built, Concrete Forming and Commercial decreased 8 percent, 7 percent and 6 percent, respectively, primarily due to weaker demand. Gross profit for the Construction segment decreased 23 percent to $112 million, primarily due to a drop in volume and fixed manufacturing costs, as well as a more competitive pricing environment.

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. Recent industry production curtailments combined with new demand from rebuilding after storm damage may better align supply and demand in 2025.

End Market Demand: Our outlook for the fourth quarter remains unchanged for our Retail and Packaging segments. While we continue to anticipate demand will decrease in Retail by mid-single digits and decrease in Packaging by mid- to high-single digits, we now anticipate a decrease in demand for Construction by low-single digits, with continued strength in our Factory Built business offsetting weaker demand in our other Construction business units. We anticipate the softer demand and competitive pricing environment to continue through the remainder of 2024 and into 2025, resulting in more challenging year-over-year unit sales and profitability comparisons, partially offset by market share gains in each of our segments.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 8:30 a.m. ET on Tuesday, October 29, 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 NINE MONTHS ENDED

SEPTEMBER 2024/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

Year to Date

(In thousands, except per share data)

 

2024

2023

2024

2023

NET SALES

 

$

1,649,383

 

 

100.0

 

%

$

1,827,637

 

 

100.0

 

%

$

5,190,308

 

 

100.0

 

%

$

5,694,031

 

 

100.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF GOODS SOLD

 

 

1,350,971

 

 

81.9

 

 

 

1,463,237

 

 

80.1

 

 

 

4,203,075

 

 

81.0

 

 

 

4,571,235

 

 

80.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

298,412

 

 

18.1

 

 

 

364,400

 

 

19.9

 

 

 

987,233

 

 

19.0

 

 

 

1,122,796

 

 

19.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

183,341

 

 

11.1

 

 

 

195,649

 

 

10.7

 

 

 

578,555

 

 

11.1

 

 

 

595,035

 

 

10.5

 

 

OTHER LOSSES (GAINS), NET

 

 

(4,855

)

 

(0.3

)

 

 

1,419

 

 

0.1

 

 

 

(4,105

)

 

(0.1

)

 

 

5,224

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS FROM OPERATIONS

 

 

119,926

 

 

7.3

 

 

 

167,332

 

 

9.2

 

 

 

412,783

 

 

8.0

 

 

 

522,537

 

 

9.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST AND OTHER

 

 

(14,184

)

 

(0.9

)

 

 

(6,177

)

 

(0.3

)

 

 

(36,353

)

 

(0.7

)

 

 

(13,043

)

 

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS BEFORE INCOME TAXES

 

 

134,110

 

 

8.1

 

 

 

173,509

 

 

9.5

 

 

 

449,136

 

 

8.7

 

 

 

535,580

 

 

9.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAXES

 

 

32,491

 

 

2.0

 

 

 

39,326

 

 

2.2

 

 

 

100,186

 

 

1.9

 

 

 

125,031

 

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS

 

 

101,619

 

 

6.2

 

 

 

134,183

 

 

7.3

 

 

 

348,950

 

 

6.7

 

 

 

410,549

 

 

7.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

 

(1,819

)

 

(0.1

)

 

 

(148

)

 

 

 

 

(2,429

)

 

 

 

 

316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST

 

$

99,800

 

 

6.1

 

 

$

134,035

 

 

7.3

 

 

$

346,521

 

 

6.7

 

 

$

410,865

 

 

7.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - BASIC

 

$

1.64

 

 

 

 

$

2.14

 

 

 

 

$

5.66

 

 

 

 

$

6.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - DILUTED

 

$

1.64

 

 

 

 

$

2.10

 

 

 

 

$

5.65

 

 

 

 

$

6.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

102,411

 

 

 

 

$

130,422

 

 

 

 

$

340,632

 

 

 

 

$

417,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

 

(1,032

)

 

 

 

 

820

 

 

 

 

 

397

 

 

 

 

 

(2,661

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST

 

$

101,379

 

 

 

 

$

131,242

 

 

 

 

$

341,029

 

 

 

 

$

414,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND

RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED)

FOR THE THREE MONTHS ENDED SEPTEMBER 2024/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period 2024

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

635,571

 

 

$

401,626

 

 

$

534,625

 

 

$

75,802

 

 

$

1,759

 

 

$

1,649,383

 

COST OF GOODS SOLD

 

 

542,516

 

 

 

330,381

 

 

 

422,967

 

 

 

61,350

 

 

 

(6,243

)

 

 

1,350,971

 

GROSS PROFIT

 

 

93,055

 

 

 

71,245

 

 

 

111,658

 

 

 

14,452

 

 

 

8,002

 

 

 

298,412

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

54,113

 

 

 

49,352

 

 

 

69,046

 

 

 

13,696

 

 

 

(2,866

)

 

 

183,341

 

OTHER

 

 

(2,870

)

 

 

28

 

 

 

212

 

 

 

(1,791

)

 

 

(434

)

 

 

(4,855

)

EARNINGS FROM OPERATIONS

 

 

41,812

 

 

 

21,865

 

 

 

42,400

 

 

 

2,547

 

 

 

11,302

 

 

 

119,926

 

INTEREST AND OTHER

 

 

(114

)

 

 

81

 

 

 

 

 

 

(4,033

)

 

 

(10,118

)

 

 

(14,184

)

EARNINGS BEFORE INCOME TAXES

 

 

41,926

 

 

 

21,784

 

 

 

42,400

 

 

 

6,580

 

 

 

21,420

 

 

 

134,110

 

INCOME TAXES

 

 

10,157

 

 

 

5,277

 

 

 

10,273

 

 

 

1,594

 

 

 

5,190

 

 

 

32,491

 

NET EARNINGS

 

$

31,769

 

 

$

16,507

 

 

$

32,127

 

 

$

4,986

 

 

$

16,230

 

 

$

101,619

 

INTEREST AND OTHER

 

 

(114

)

 

 

81

 

 

 

 

 

 

(4,033

)

 

 

(10,118

)

 

 

(14,184

)

INCOME TAXES

 

 

10,157

 

 

 

5,277

 

 

 

10,273

 

 

 

1,594

 

 

 

5,190

 

 

 

32,491

 

EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS

 

 

1,116

 

 

 

1,575

 

 

 

1,822

 

 

 

140

 

 

 

3,416

 

 

 

8,069

 

NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS

 

 

(9

)

 

 

28

 

 

 

(64

)

 

 

(4

)

 

 

(404

)

 

 

(453

)

DEPRECIATION EXPENSE

 

 

7,238

 

 

 

8,664

 

 

 

6,027

 

 

 

832

 

 

 

8,726

 

 

 

31,487

 

AMORTIZATION OF INTANGIBLES

 

 

998

 

 

 

2,216

 

 

 

703

 

 

 

1,536

 

 

 

433

 

 

 

5,886

 

ADJUSTED EBITDA

 

$

51,155

 

 

$

34,348

 

 

$

50,888

 

 

$

5,051

 

 

$

23,473

 

 

$

164,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES

 

 

8.0

%

 

 

8.6

%

 

 

9.5

%

 

 

6.7

%

 

 

*

 

 

10.0

%

* Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period 2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

730,353

 

 

$

449,885

 

 

$

583,960

 

 

$

62,454

 

 

$

985

 

 

$

1,827,637

 

COST OF GOODS SOLD

 

 

625,730

 

 

 

355,924

 

 

 

439,152

 

 

 

43,084

 

 

 

(653

)

 

 

1,463,237

 

GROSS PROFIT

 

 

104,623

 

 

 

93,961

 

 

 

144,808

 

 

 

19,370

 

 

 

1,638

 

 

 

364,400

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

57,019

 

 

 

52,524

 

 

 

75,293

 

 

 

13,919

 

 

 

(3,106

)

 

 

195,649

 

OTHER

 

 

930

 

 

 

8

 

 

 

(45

)

 

 

108

 

 

 

418

 

 

 

1,419

 

EARNINGS FROM OPERATIONS

 

 

46,674

 

 

 

41,429

 

 

 

69,560

 

 

 

5,343

 

 

 

4,326

 

 

 

167,332

 

INTEREST AND OTHER

 

 

26

 

 

 

10

 

 

 

(1

)

 

 

(98

)

 

 

(6,114

)

 

 

(6,177

)

EARNINGS BEFORE INCOME TAXES

 

 

46,648

 

 

 

41,419

 

 

 

69,561

 

 

 

5,441

 

 

 

10,440

 

 

 

173,509

 

INCOME TAXES

 

 

10,642

 

 

 

9,388

 

 

 

15,766

 

 

 

1,164

 

 

 

2,366

 

 

 

39,326

 

NET EARNINGS

 

$

36,006

 

 

$

32,031

 

 

$

53,795

 

 

$

4,277

 

 

$

8,074

 

 

$

134,183

 

INTEREST AND OTHER

 

 

26

 

 

 

10

 

 

 

(1

)

 

 

(98

)

 

 

(6,114

)

 

 

(6,177

)

INCOME TAXES

 

 

10,642

 

 

 

9,388

 

 

 

15,766

 

 

 

1,164

 

 

 

2,366

 

 

 

39,326

 

EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS

 

 

1,314

 

 

 

1,686

 

 

 

1,685

 

 

 

184

 

 

 

3,324

 

 

 

8,193

 

NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS

 

 

35

 

 

 

8

 

 

 

(14

)

 

 

(200

)

 

 

(112

)

 

 

(283

)

DEPRECIATION EXPENSE

 

 

6,355

 

 

 

8,361

 

 

 

4,930

 

 

 

518

 

 

 

7,482

 

 

 

27,646

 

AMORTIZATION OF INTANGIBLES

 

 

1,133

 

 

 

2,175

 

 

 

703

 

 

 

563

 

 

 

380

 

 

 

4,954

 

ADJUSTED EBITDA

 

$

55,511

 

 

$

53,659

 

 

$

76,864

 

 

$

6,408

 

 

$

15,400

 

 

$

207,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES

 

 

7.6

%

 

 

11.9

%

 

 

13.2

%

 

 

10.3

%

 

 

*

 

 

11.4

%

* Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND

RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 2024/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date 2024

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

2,073,403

 

 

$

1,261,248

 

 

$

1,627,068

 

 

$

224,219

 

 

$

4,370

 

 

$

5,190,308

 

COST OF GOODS SOLD

 

 

1,752,464

 

 

 

1,020,877

 

 

 

1,275,520

 

 

 

171,916

 

 

 

(17,702

)

 

 

4,203,075

 

GROSS PROFIT

 

 

320,939

 

 

 

240,371

 

 

 

351,548

 

 

 

52,303

 

 

 

22,072

 

 

 

987,233

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

175,014

 

 

 

156,289

 

 

 

211,503

 

 

 

41,663

 

 

 

(5,914

)

 

 

578,555

 

OTHER

 

 

(1,650

)

 

 

1,455

 

 

 

292

 

 

 

(3,276

)

 

 

(926

)

 

 

(4,105

)

EARNINGS FROM OPERATIONS

 

 

147,575

 

 

 

82,627

 

 

 

139,753

 

 

 

13,916

 

 

 

28,912

 

 

 

412,783

 

INTEREST AND OTHER

 

 

(386

)

 

 

1,314

 

 

 

(25

)

 

 

(8,826

)

 

 

(28,430

)

 

 

(36,353

)

EARNINGS BEFORE INCOME TAXES

 

 

147,961

 

 

 

81,313

 

 

 

139,778

 

 

 

22,742

 

 

 

57,342

 

 

 

449,136

 

INCOME TAXES

 

 

33,193

 

 

 

17,841

 

 

 

31,194

 

 

 

5,072

 

 

 

12,886

 

 

 

100,186

 

NET EARNINGS

 

$

114,768

 

 

$

63,472

 

 

$

108,584

 

 

$

17,670

 

 

$

44,456

 

 

$

348,950

 

INTEREST AND OTHER

 

 

(386

)

 

 

1,314

 

 

 

(25

)

 

 

(8,826

)

 

 

(28,430

)

 

 

(36,353

)

INCOME TAXES

 

 

33,193

 

 

 

17,841

 

 

 

31,194

 

 

 

5,072

 

 

 

12,886

 

 

 

100,186

 

EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS

 

 

3,928

 

 

 

5,351

 

 

 

6,098

 

 

 

609

 

 

 

11,359

 

 

 

27,345

 

NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS

 

 

877

 

 

 

1,455

 

 

 

222

 

 

 

10

 

 

 

(1,026

)

 

 

1,538

 

GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY

 

 

 

 

 

(37

)

 

 

(1,818

)

 

 

 

 

 

 

 

 

(1,855

)

DEPRECIATION EXPENSE

 

 

21,327

 

 

 

25,600

 

 

 

17,032

 

 

 

2,449

 

 

 

25,722

 

 

 

92,130

 

AMORTIZATION OF INTANGIBLES

 

 

2,994

 

 

 

6,624

 

 

 

2,108

 

 

 

4,573

 

 

 

1,322

 

 

 

17,621

 

ADJUSTED EBITDA

 

$

176,701

 

 

$

121,620

 

 

$

163,395

 

 

$

21,557

 

 

$

66,289

 

 

$

549,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES

 

 

8.5

%

 

 

9.6

%

 

 

10.0

%

 

 

9.6

%

 

 

*

 

 

10.6

%

* Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date 2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

2,430,277

 

 

$

1,424,546

 

 

$

1,650,017

 

 

$

185,841

 

 

$

3,350

 

 

$

5,694,031

 

COST OF GOODS SOLD

 

 

2,107,528

 

 

 

1,091,452

 

 

 

1,246,346

 

 

 

127,446

 

 

 

(1,537

)

 

 

4,571,235

 

GROSS PROFIT

 

 

322,749

 

 

 

333,094

 

 

 

403,671

 

 

 

58,395

 

 

 

4,887

 

 

 

1,122,796

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

172,631

 

 

 

180,153

 

 

 

216,714

 

 

 

39,982

 

 

 

(14,445

)

 

 

595,035

 

OTHER

 

 

2,975

 

 

 

(84

)

 

 

1,190

 

 

 

1,452

 

 

 

(309

)

 

 

5,224

 

EARNINGS FROM OPERATIONS

 

 

147,143

 

 

 

153,025

 

 

 

185,767

 

 

 

16,961

 

 

 

19,641

 

 

 

522,537

 

INTEREST AND OTHER

 

 

67

 

 

 

1,012

 

 

 

(7

)

 

 

(4,467

)

 

 

(9,648

)

 

 

(13,043

)

EARNINGS BEFORE INCOME TAXES

 

 

147,076

 

 

 

152,013

 

 

 

185,774

 

 

 

21,428

 

 

 

29,289

 

 

 

535,580

 

INCOME TAXES

 

 

34,382

 

 

 

35,567

 

 

 

43,275

 

 

 

4,979

 

 

 

6,828

 

 

 

125,031

 

NET EARNINGS

 

$

112,694

 

 

$

116,446

 

 

$

142,499

 

 

$

16,449

 

 

$

22,461

 

 

$

410,549

 

INTEREST AND OTHER

 

 

67

 

 

 

1,012

 

 

 

(7

)

 

 

(4,467

)

 

 

(9,648

)

 

 

(13,043

)

INCOME TAXES

 

 

34,382

 

 

 

35,567

 

 

 

43,275

 

 

 

4,979

 

 

 

6,828

 

 

 

125,031

 

EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS

 

 

4,244

 

 

 

5,485

 

 

 

5,492

 

 

 

687

 

 

 

10,160

 

 

 

26,068

 

NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS

 

 

61

 

 

 

(85

)

 

 

(45

)

 

 

(140

)

 

 

(256

)

 

 

(465

)

DEPRECIATION EXPENSE

 

 

18,585

 

 

 

24,038

 

 

 

14,192

 

 

 

1,479

 

 

 

22,138

 

 

 

80,432

 

AMORTIZATION OF INTANGIBLES

 

 

3,465

 

 

 

6,657

 

 

 

2,202

 

 

 

1,846

 

 

 

1,155

 

 

 

15,325

 

ADJUSTED EBITDA

 

$

173,498

 

 

$

189,120

 

 

$

207,608

 

 

$

20,833

 

 

$

52,838

 

 

$

643,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES

 

 

7.1

%

 

 

13.3

%

 

 

12.6

%

 

 

11.2

%

 

 

*

 

 

11.3

%

* Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

SEPTEMBER 2024/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

2024

 

 

2023

 

LIABILITIES AND EQUITY

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,190,807

 

$

957,092

 

Accounts payable

 

$

239,897

 

$

253,065

Restricted cash

 

 

761

 

 

3,761

 

Accrued liabilities and other

 

 

322,031

 

 

347,231

Investments

 

 

38,935

 

 

37,062

 

Current portion of debt

 

 

44,103

 

 

1,539

Accounts receivable

 

 

650,869

 

 

697,555

 

 

 

 

 

 

 

 

Inventories

 

 

645,429

 

 

744,747

 

 

 

 

 

 

 

 

Other current assets

 

 

86,724

 

 

64,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

2,613,525

 

 

2,505,122

 

TOTAL CURRENT LIABILITIES

 

 

606,031

 

 

601,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

259,637

 

 

283,999

 

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

 

 

232,043

 

 

273,308

INTANGIBLE ASSETS, NET

 

 

501,641

 

 

476,271

 

OTHER LIABILITIES

 

 

180,465

 

 

173,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TEMPORARY EQUITY

 

 

5,527

 

 

6,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

 

843,082

 

 

738,692

 

SHAREHOLDERS' EQUITY

 

 

3,193,819

 

 

2,948,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

4,217,885

 

$

4,004,084

 

TOTAL LIABILITIES AND EQUITY

 

$

4,217,885

 

$

4,004,084

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE NINE MONTHS ENDED

SEPTEMBER 2024/2023

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

2024

 

 

 

 

2023

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings

 

$

348,950

 

 

 

$

410,549

 

 

Adjustments to reconcile net earnings to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

92,130

 

 

 

 

80,432

 

 

Amortization of intangibles

 

 

17,621

 

 

 

 

15,325

 

 

Expense associated with share-based and grant compensation arrangements

 

 

27,345

 

 

 

 

26,068

 

 

Deferred income taxes

 

 

(674

)

 

 

 

113

 

 

Unrealized (gain) loss on investment and other

 

 

(3,201

)

 

 

 

362

 

 

Equity in loss of investee

 

 

1,313

 

 

 

 

1,013

 

 

Net loss (gain) on sale, disposition and impairment of assets

 

 

1,538

 

 

 

 

(465

)

 

Gain from reduction of estimated earnout liability

 

 

(1,855

)

 

 

 

 

 

Changes in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(102,355

)

 

 

 

(82,883

)

 

Inventories

 

 

81,238

 

 

 

 

230,559

 

 

Accounts payable and cash overdraft

 

 

37,391

 

 

 

 

49,093

 

 

Accrued liabilities and other

 

 

(1,779

)

 

 

 

(18,363

)

 

NET CASH FROM OPERATING ACTIVITIES

 

 

497,662

 

 

 

 

711,803

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS USED IN INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(165,493

)

 

 

 

(130,947

)

 

Proceeds from sale of property, plant and equipment

 

 

3,795

 

 

 

 

2,211

 

 

Acquisitions, net of cash received and purchase of equity method investment

 

 

 

 

 

 

(52,488

)

 

Purchase of remaining noncontrolling interest of subsidiary

 

 

(4,902

)

 

 

 

 

 

Purchases of investments

 

 

(34,284

)

 

 

 

(26,333

)

 

Proceeds from sale of investments

 

 

13,782

 

 

 

 

22,101

 

 

Other

 

 

4,712

 

 

 

 

(2,092

)

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(182,390

)

 

 

 

(187,548

)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS USED IN FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

20,130

 

 

 

 

18,915

 

 

Repayments under revolving credit facilities

 

 

(20,477

)

 

 

 

(21,929

)

 

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

 

 

2,122

 

 

 

 

2,087

 

 

Dividends paid to shareholders

 

 

(60,721

)

 

 

 

(49,723

)

 

Distributions to noncontrolling interest

 

 

(11,848

)

 

 

 

(7,355

)

 

Payments to taxing authorities in connection with shares directly withheld from employees

 

 

(17,838

)

 

 

 

 

 

Repurchase of common stock

 

 

(141,122

)

 

 

 

(62,076

)

 

Other

 

 

55

 

 

 

 

65

 

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(240,781

)

 

 

 

(126,224

)

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(5,179

)

 

 

 

3,199

 

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

69,312

 

 

 

 

401,230

 

 

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

1,122,256

 

 

 

 

559,623

 

 

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

1,191,568

 

 

 

$

960,853

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1,190,807

 

 

 

$

957,092

 

 

Restricted cash, end of period

 

 

761

 

 

 

 

3,761

 

 

All cash and cash equivalents, end of period

 

$

1,191,568

 

 

 

$

960,853

 

 

 

 

 

 

 

 

 

 

 

 

Contacts

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

Release Summary

UFP Industries Announces Third Quarter Results

Contacts

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