U.S. markets closed
  • S&P Futures

    4,295.00
    -3.25 (-0.08%)
     
  • Dow Futures

    33,865.00
    -8.00 (-0.02%)
     
  • Nasdaq Futures

    13,669.00
    -12.25 (-0.09%)
     
  • Russell 2000 Futures

    2,023.00
    -0.80 (-0.04%)
     
  • Crude Oil

    88.87
    -0.54 (-0.60%)
     
  • Gold

    1,796.70
    -1.40 (-0.08%)
     
  • Silver

    20.19
    -0.08 (-0.38%)
     
  • EUR/USD

    1.0168
    +0.0003 (+0.03%)
     
  • 10-Yr Bond

    2.7910
    -0.0580 (-2.04%)
     
  • Vix

    19.95
    +0.42 (+2.15%)
     
  • GBP/USD

    1.2054
    -0.0004 (-0.03%)
     
  • USD/JPY

    133.3390
    +0.0670 (+0.05%)
     
  • BTC-USD

    24,138.68
    -718.25 (-2.89%)
     
  • CMC Crypto 200

    572.87
    -17.89 (-3.03%)
     
  • FTSE 100

    7,509.15
    +8.26 (+0.11%)
     
  • Nikkei 225

    28,868.50
    -3.28 (-0.01%)
     

UFP Industries Reports Record Second Quarter Results

  • Oops!
    Something went wrong.
    Please try again later.
·18 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
UFP Industries, Inc.
UFP Industries, Inc.

Earnings per share increase 16 percent; New product sales increase 37 percent

GRAND RAPIDS, Mich., July 21, 2022 (GLOBE NEWSWIRE) -- UFP Industries, Inc. (Nasdaq: UFPI) today announced record net sales of $2.9 billion and net earnings attributable to controlling interests of $203 million for the second quarter of 2022. The company also reported record earnings per diluted share of $3.23, a 16 percent increase over the second quarter of 2021.

“I want to thank our hard-working teammates for delivering another outstanding, record-breaking quarter. Our construction and industrial business segments performed very well, and our retail segment, which is most adversely impacted by rapidly falling lumber prices, managed this challenge and is well-positioned for the rest of 2022 with the expected stabilization of lumber prices,” said CEO Matthew J. Missad. “Our teammates have produced record results, quarter after quarter and year after year, despite numerous external challenges. They have generated a powerful culture of optimism and resilience that positions our company for even greater success in the future.”

Second Quarter 2022 Highlights (comparisons on a year-over-year basis):

  • Net sales of $2.9 billion increased 7 percent due to a 4 percent increase in lumber prices, a 2 percent increase in organic unit sales, and a 1 percent increase in unit sales from acquisitions.

  • Earnings from operations of $286 million increased 21 percent. Acquisitions contributed $2.5 million to earnings.

  • The increase in SG&A of $30 million, or 16 percent, is largely attributable to an increase in bad debt expense ($9 million), increases in bonus and sales incentive compensation expenses ($4 million) resulting from increased profitability, increases in wages and benefits ($6 million), and recent acquisitions ($4 million). The company recently modified its incentive compensation plan, which reduced bonus expense in the second quarter by $17 million. SG&A as a percentage of gross profit fell from 44 percent to 43 percent.

  • New product sales of $181 million increased 37 percent, which excludes new products that were sunset at the end of 2021. New product sales leaders include Deckorators mineral-based composite decking and Strip Pak mixed-material packaging solutions.

  • The percentage of total sales that are value-added increased from 54 percent to 62 percent.

  • Adjusted EBITDA of $318.5 million increased 22 percent, and adjusted EBITDA margin improved by 130 basis points to 11 percent. Acquisitions during 2022 contributed $3.5 million to adjusted EBITDA.

UFP Industries maintains a strong balance sheet, with $1.16 billion of liquidity as of June 25, 2022, consisting of surplus cash and availability under its revolving credit facility and shelf agreements with lenders. The company’s diversified and return-focused approach to capital allocation includes the following:

  • In May, the company acquired Cedar Poly, LLC, a recycler of plastics that can be used in manufacturing Deckorators decking. In late June, UFP Industries acquired a 50 percent stake in Dempsey Wood Products, LLC, a producer of kiln-dried lumber, pallet lumber, and other industrial wood products used primarily in pallet manufacturing. Both acquisitions solidify the company’s supply chain and position the company for additional growth and margin improvements.

  • The company has targeted $175-225 million for capital expenditures in 2022, an increase over the $151 million spent in 2021. The company’s capital expenditures during the first six months of 2022 totaled $72 million and have been adversely impacted by longer lead times required for most equipment and rolling stock.

  • In February 2022, our Board of Directors authorized an increase in the company’s share repurchase program of up to 2.6 million shares. Through June 2022, the company has purchased approximately 1,210,000 shares at an average price of $77.06. The company issued 913,000 shares in 2022 for share-based compensation programs at an average issue price of $82.71 per share.

  • On July 20, 2022, the Board approved a quarterly dividend payment of $0.25 per share, payable on September 15, 2022, to shareholders of record on September 1, 2022. This dividend is 67 percent higher than the dividend of $0.15 per share paid on September 15, 2021.

  • The company continues to seek opportunities to invest in companies that represent a strong strategic fit and allow it to drive new growth and margin improvements, enhance its capabilities, and create more value for its customers and shareholders.

By business segment, the company reported the following second quarter 2022 results:

UFP Retail Solutions

$1.12 billion in net sales, down 11 percent over the second quarter of 2021 due to a 5 percent decline in organic unit sales, a 5 percent decrease in selling prices, a 2 percent decrease due to the transfer of certain sales to the construction segment, and a 1 percent increase in unit sales from acquisitions.

Organic unit sales fell 8 percent for Sunbelt Forest Products and 1 percent for ProWood, the company’s pressure-treating operations, as consumer demand for these products began to normalize. Organic unit sales fell 22 percent for Outdoor Essentials and 9 percent for Deckorators but were up 3 percent for UFP-Edge due to expanded capacity and market share gains. Total sales of Deckorators products increased $20.8 million year over year, including $17.8 million from acquisitions.

Gross profit for the retail segment fell 40 percent to $73 million, as rapidly falling lumber prices reduced margins for variable-priced products such as pressure-treated wood. As a result of the impact of falling lumber prices on variable-priced products, the value of inventory and gross profits was reduced by approximately $9 million for a lower of cost or net realizable value reserve. Gross profit margin fell to 6.5 percent in 2022 from 9.7 percent in 2021. The anticipated stabilization in lumber prices is expected to have a positive impact on year-over-year comparisons of third quarter 2022 results.

Retail sales have accounted for 39 percent of the company’s sales year to date. When evaluating future demand for the retail segment, the company analyzes data such as the same store sales growth of national home improvement retailers. Those sales are forecasted to range from a decline of 1 percent to an increase of 3 percent in 2022.

UFP Industrial

$676 million in net sales, up 11 percent from the second quarter of 2021 due to an 11 percent increase in selling prices, a 1 percent increase in unit sales from acquisitions, and a 1 percent decline in organic unit growth. The organic unit sales decline is attributable to an intentional change in product mix, as the segment focuses more on higher-margin products while being more selective in taking on new business. New product sales increased 84 percent to $68 million.

Gross profit rose 21 percent to $162 million, reflecting the company’s ability to pass on the impact of higher lumber prices and labor and transportation costs, and the successful implementation of value-based selling initiatives.

Industrial sales have accounted for 24 percent of the company’s sales year to date. When evaluating future demand, the company considers a number of metrics, including the Purchasing Managers Index (PMI), durable goods manufacturing, and U.S. GDP. The PMI of 53 for June 2022 indicates expansion in the manufacturing sector; however, this has fallen from a high of 61 in late 2021. New orders for manufactured durable goods rose 0.7 percent during May, the most recent month reported. U.S. GDP for the first quarter of 2022 fell 1.6 percent but is forecasted to grow in the second quarter.

UFP Construction

$975 million in net sales, up 32 percent over the second quarter of 2021, due to a 15 percent increase in organic unit growth, a 2 percent increase due to the transfer of certain sales from the retail segment, and a 15 percent increase in selling prices. Unit sales increased in all markets: concrete forming (up 79 percent, 44 percent of which is the result of the reclassification of certain product sales from UFP Retail Solutions to UFP Construction); commercial (up 63 percent); factory built housing (up 16 percent); and site built residential housing (up 1 percent).

Gross profit increased 69 percent to $227 million in the second quarter, due to increased unit sales, the company’s ability to better leverage fixed costs, and better pricing discipline. Gross profit margin rose to 23 percent in 2022 from 18 percent in 2021.

The company’s site built residential customers have accounted for approximately 13 percent of total sales year to date. More than 75 percent of the company’s site-built residential housing sales are in areas such as Texas and the Mid-Atlantic, Southeast and Mountain West regions, which have experienced significant population growth through migration from other states and are forecasted to continue to grow. The company’s factory built customers have accounted for 14 percent of total sales year to date. This business, along with the company’s multifamily business, could benefit from higher interest rates as buyers seek more affordable housing alternatives. As a result of these factors, we believe these customers are better insulated from downturns in the housing market.

OUTLOOK

“We continue to monitor global macroeconomic conditions and the impact on our business,” said Missad. “UFP serves many diverse end markets from more than 200 locations worldwide, and this diversified approach has mitigated various challenges through the years. We expect our balanced business model and operational improvements will continue to help us navigate new external challenges, including rising interest rates and historically high inflation. In the near term, we expect more normalized demand in our largest segment, retail solutions, but see year-over-year improvement in the third quarter due to more favorable comparisons. For the industrial segment, we continue to monitor activity and the key economic indicators that drive this business with many of those metrics remaining mixed. Pricing remains healthy as we pass through inflationary costs and benefit from our focus on value-added products. In the construction segment, we see continued activity in commercial and infrastructure end markets and expect our exposure to a projected softening in the housing market to be somewhat offset by favorable demographic trends in the markets we serve and our participation in more affordable housing. Our diversified business and end markets give us the confidence to successfully navigate various market environments, delivering good returns to shareholders.”

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss information included in this news release and related matters at 4:30 p.m. ET on Thursday, July 21, 2022. The call will be hosted by 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 http://www.ufpi.com. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries is a holding company whose operating subsidiaries – UFP Industrial, 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. 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 considers Adjusted EBITDA, a non-GAAP measure, an alternative performance measure which may provide useful information to investors.

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 2022/2021

 

 

Quarter Period

Year to Date

(In thousands, except per share data)

    

2022

2021

2022

2021

NET SALES

 

$

2,900,874

 

 

100.0

 

%

$

2,700,541

 

 

100.0

 

%

$

5,390,187

 

 

100.0

 

%

$

4,525,545

 

 

100.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF GOODS SOLD

 

 

2,397,422

 

 

82.6

 

 

 

2,279,247

 

 

84.4

 

 

 

4,408,372

 

 

81.8

 

 

 

3,817,697

 

 

84.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

503,452

 

 

17.4

 

 

 

421,294

 

 

15.6

 

 

 

981,815

 

 

18.2

 

 

 

707,848

 

 

15.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

214,538

 

 

7.4

 

 

 

184,539

 

 

6.8

 

 

 

434,688

 

 

8.1

 

 

 

334,637

 

 

7.4

 

 

OTHER (GAINS) LOSSES, NET

 

 

3,348

 

 

0.1

 

 

 

(180

)

 

 

 

 

2,536

 

 

 

 

 

(1,211

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS FROM OPERATIONS

 

 

285,566

 

 

9.8

 

 

 

236,935

 

 

8.8

 

 

 

544,591

 

 

10.1

 

 

 

374,422

 

 

8.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST AND OTHER EXPENSE, NET

 

 

8,566

 

 

0.3

 

 

 

3,045

 

 

0.1

 

 

 

13,476

 

 

0.3

 

 

 

4,530

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS BEFORE INCOME TAXES

 

 

277,000

 

 

9.5

 

 

 

233,890

 

 

8.7

 

 

 

531,115

 

 

9.9

 

 

 

369,892

 

 

8.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAXES

 

 

69,147

 

 

2.4

 

 

 

58,530

 

 

2.2

 

 

 

130,131

 

 

2.4

 

 

 

90,281

 

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS

 

 

207,853

 

 

7.2

 

 

 

175,360

 

 

6.5

 

 

 

400,984

 

 

7.4

 

 

 

279,611

 

 

6.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

 

(4,735

)

 

(0.2

)

 

 

(1,978

)

 

(0.1

)

 

 

(8,163

)

 

(0.2

)

 

 

(2,918

)

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST

 

$

203,118

 

 

7.0

 

 

$

173,382

 

 

6.4

 

 

$

392,821

 

 

7.3

 

 

$

276,693

 

 

6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - BASIC

 

$

3.24

 

 

 

 

$

2.79

 

 

 

 

$

6.25

 

 

 

 

$

4.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - DILUTED

 

$

3.23

 

 

 

 

$

2.78

 

 

 

 

$

6.22

 

 

 

 

$

4.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

203,470

 

 

 

 

$

178,080

 

 

 

 

$

399,785

 

 

 

 

$

280,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

 

(4,640

)

 

 

 

 

(2,698

)

 

 

 

 

(9,017

)

 

 

 

 

(3,112

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST

 

$

198,830

 

 

 

 

$

175,382

 

 

 

 

$

390,768

 

 

 

 

$

277,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SUPPLEMENTAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

Quarter Period

 

 

Year to Date

Segment Classification

    

 

2022

 

 

 

 

 

 

2021

 

 

% change

    

 

2022

 

    

 

 

 

 

2021

 

 

% change

Retail

 

 

$

1,121,440

 

 

 

 

 

 

$

1,259,218

 

 

(10.9

)%

 

 

$

2,114,672

 

 

 

 

 

 

$

2,018,239

 

 

4.8

%

Industrial

 

 

 

676,333

 

 

 

 

 

 

 

611,181

 

 

10.7

%

 

 

 

1,287,702

 

 

 

 

 

 

 

1,060,054

 

 

21.5

%

Construction

 

 

 

975,376

 

 

 

 

 

 

 

738,704

 

 

32.0

%

 

 

 

1,761,847

 

 

 

 

 

 

 

1,298,235

 

 

35.7

%

All Other

 

 

 

127,725

 

 

 

 

 

 

 

91,438

 

 

39.7

%

 

 

 

225,966

 

 

 

 

 

 

 

149,017

 

 

51.6

%

Total Net Sales

 

 

$

2,900,874

 

 

 

 

 

 

$

2,700,541

 

 

7.4

%

 

 

$

5,390,187

 

 

 

 

 

 

$

4,525,545

 

 

19.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

% of Sales

 

2021

 

 

% of Sales

 

 

2022

 

 

% of Sales

 

2021

 

 

% of Sales

SG&A

 

 

$

214,538

 

 

7.4

%

 

$

184,539

 

 

6.8

%

 

 

$

434,688

 

 

8.1

%

 

$

334,637

 

 

7.4

%

SG&A as a Percentage of Gross Profit

 

 

 

42.6

%

 

 

 

 

 

 

43.8

%

 

 

 

 

 

44.3

%

 

 

 

 

 

 

47.3

%

 

 


CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED
JUNE 2022/2021

 

 

Quarter Period

 

    

2022

(In thousands)

 

Retail

 

Industrial

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

1,121,440

 

$

676,333

 

$

975,376

 

 

$

124,416

 

$

3,309

 

 

$

2,900,874

COST OF GOODS SOLD

 

 

1,048,260

 

 

514,216

 

 

748,060

 

 

 

83,336

 

 

3,550

 

 

 

2,397,422

GROSS PROFIT

 

 

73,180

 

 

162,117

 

 

227,316

 

 

 

41,080

 

 

(241

)

 

 

503,452

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

48,387

 

 

67,235

 

 

94,638

 

 

 

16,356

 

 

(12,078

)

 

 

214,538

OTHER

 

 

266

 

 

672

 

 

(154

)

 

 

1,976

 

 

588

 

 

 

3,348

EARNINGS FROM OPERATIONS

 

$

24,527

 

$

94,210

 

$

132,832

 

 

$

22,748

 

$

11,249

 

 

$

285,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Quarter Period

 

    

2021

 

(In thousands)

 

Retail

 

Industrial

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

1,259,218

 

 

$

611,181

 

$

738,704

 

$

89,470

 

 

$

1,968

 

 

$

2,700,541

 

COST OF GOODS SOLD

 

 

1,136,887

 

 

 

476,731

 

 

604,414

 

 

59,745

 

 

 

1,470

 

 

 

2,279,247

 

GROSS PROFIT

 

 

122,331

 

 

 

134,450

 

 

134,290

 

 

29,725

 

 

 

498

 

 

 

421,294

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

60,376

 

 

 

54,903

 

 

66,936

 

 

13,604

 

 

 

(11,280

)

 

 

184,539

 

OTHER

 

 

(96

)

 

 

21

 

 

247

 

 

(183

)

 

 

(169

)

 

 

(180

)

EARNINGS FROM OPERATIONS

 

$

62,051

 

 

$

79,526

 

$

67,107

 

$

16,304

 

 

$

11,947

 

 

$

236,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Year to Date

 

 

2022

(In thousands)

 

Retail

 

Industrial

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

2,114,672

 

$

1,287,702

 

$

1,761,847

 

$

219,983

 

$

5,983

 

 

$

5,390,187

COST OF GOODS SOLD

 

 

1,907,155

 

 

976,031

 

 

1,373,119

 

 

147,360

 

 

4,707

 

 

 

4,408,372

GROSS PROFIT

 

 

207,517

 

 

311,671

 

 

388,728

 

 

72,623

 

 

1,276

 

 

 

981,815

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

111,055

 

 

134,466

 

 

176,975

 

 

32,981

 

 

(20,789

)

 

 

434,688

OTHER

 

 

538

 

 

604

 

 

103

 

 

2,079

 

 

(788

)

 

 

2,536

EARNINGS FROM OPERATIONS

 

$

95,924

 

$

176,601

 

$

211,650

 

$

37,563

 

$

22,853

 

 

$

544,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Year to Date

 

 

2021

 

(In thousands)

 

Retail

 

Industrial

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

2,018,239

 

 

$

1,060,054

 

 

$

1,298,235

 

$

145,047

 

 

$

3,970

 

 

$

4,525,545

 

COST OF GOODS SOLD

 

 

1,795,435

 

 

 

845,279

 

 

 

1,075,261

 

 

97,771

 

 

 

3,951

 

 

 

3,817,697

 

GROSS PROFIT

 

 

222,804

 

 

 

214,775

 

 

 

222,974

 

 

47,276

 

 

 

19

 

 

 

707,848

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

107,476

 

 

 

95,016

 

 

 

122,481

 

 

24,025

 

 

 

(14,361

)

 

 

334,637

 

OTHER

 

 

(268

)

 

 

(177

)

 

 

368

 

 

(1,031

)

 

 

(103

)

 

 

(1,211

)

EARNINGS FROM OPERATIONS

 

$

115,596

 

 

$

119,936

 

 

$

100,125

 

$

24,282

 

 

$

14,483

 

 

$

374,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
JUNE 2022/2021

(In thousands)
ASSETS

    

 

2022

    

 

2021

    

LIABILITIES AND EQUITY

    

 

2022

    

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

138,071

 

$

44,286

 

Cash Overdraft

 

$

11,926

 

$

34,229

 

Restricted cash

 

 

729

 

 

629

 

Accounts payable

 

 

386,833

 

 

359,484

 

Investments

 

 

35,475

 

 

33,827

 

Accrued liabilities and other

 

 

384,738

 

 

337,507

 

Accounts receivable

 

 

1,046,543

 

 

980,571

 

Current portion of debt

 

 

40,496

 

 

97

 

Inventories

 

 

1,106,302

 

 

1,026,488

 

 

 

 

 

 

 

 

 

Other current assets

 

 

49,324

 

 

36,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

2,376,444

 

 

2,122,500

 

TOTAL CURRENT LIABILITIES

 

 

823,993

 

 

731,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

163,464

 

 

148,486

 

 

 

 

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

 

445,751

 

 

424,110

 

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

 

 

276,315

 

 

571,856

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES

 

 

185,447

 

 

165,547

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

 

625,164

 

 

533,187

 

EQUITY

 

 

2,325,068

 

 

1,759,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,610,823

 

$

3,228,283

 

TOTAL LIABILITIES AND EQUITY

 

$

3,610,823

 

$

3,228,283

 


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 2022/2021

(In thousands)

 

 

2022

 

 

    

 

2021

 

 

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings

 

$

400,984

 

 

 

$

279,611

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

44,034

 

 

 

 

38,342

 

 

Amortization of intangibles

 

 

8,740

 

 

 

 

7,193

 

 

Expense associated with share-based and grant compensation arrangements

 

 

12,542

 

 

 

 

5,742

 

 

Deferred income taxes

 

 

179

 

 

 

 

177

 

 

Unrealized loss (gain) on investment and other

 

 

6,181

 

 

 

 

(2,784

)

 

Equity in earnings of investee

 

 

1,532

 

 

 

 

1,465

 

 

Net loss (gain) on sale and disposition of assets

 

 

766

 

 

 

 

(1,577

)

 

Changes in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(304,715

)

 

 

 

(336,094

)

 

Inventories

 

 

(134,653

)

 

 

 

(329,577

)

 

Accounts payable and cash overdraft

 

 

56,120

 

 

 

 

143,018

 

 

Accrued liabilities and other

 

 

(1,313

)

 

 

 

78,751

 

 

NET CASH FROM (USED IN) OPERATING ACTIVITIES

 

 

90,397

 

 

 

 

(115,733

)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS USED IN INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(71,675

)

 

 

 

(79,028

)

 

Proceeds from sale of property, plant and equipment

 

 

2,029

 

 

 

 

6,673

 

 

Acquisitions and purchase of noncontrolling interest, net of cash received

 

 

(39,343

)

 

 

 

(433,239

)

 

Purchases of investments

 

 

(15,166

)

 

 

 

(14,581

)

 

Proceeds from sale of investments

 

 

8,221

 

 

 

 

6,885

 

 

Other

 

 

(2,829

)

 

 

 

(708

)

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(118,763

)

 

 

 

(513,998

)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

570,700

 

 

 

 

849,944

 

 

Repayments under revolving credit facilities

 

 

(571,075

)

 

 

 

(589,695

)

 

Repayments of debt

 

 

(2,485

)

 

 

 

 

 

Contingent consideration payment and other

 

 

(2,553

)

 

 

 

(1,464

)

 

Proceeds from issuance of common stock

 

 

1,457

 

 

 

 

936

 

 

Dividends paid to shareholders

 

 

(28,015

)

 

 

 

(18,550

)

 

Distributions to noncontrolling interest

 

 

(2,053

)

 

 

 

(2,914

)

 

Repurchase of common stock

 

 

(90,805

)

 

 

 

 

 

Other

 

 

(184

)

 

 

 

(331

)

 

NET CASH (USED IN) FROM FINANCING ACTIVITIES

 

 

(125,013

)

 

 

 

237,926

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

956

 

 

 

 

112

 

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

(152,423

)

 

 

 

(391,693

)

 

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

291,223

 

 

 

 

436,608

 

 

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

138,800

 

 

 

$

44,915

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of cash and cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

$

286,662

 

 

 

$

436,507

 

 

Restricted cash, beginning of period

 

 

4,561

 

 

 

 

101

 

 

All cash and cash equivalents, beginning of period

 

$

291,223

 

 

 

$

436,608

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

138,071

 

 

 

$

44,286

 

 

Restricted cash, end of period

 

 

729

 

 

 

 

629

 

 

All cash and cash equivalents, end of period

 

$

138,800

 

 

 

$

44,915

 

 

 

 

 

 

 

 

 

 

 


ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED
JUNE 2022/2021

 

 

Quarter Period

Year to Date

(In thousands)

 

2022

 

 

2021

 

2022

2021

 

Net earnings

 

$

207,853

 

 

$

175,360

 

$

400,984

 

 

$

279,611

 

Interest expense

 

 

3,395

 

 

 

3,899

 

 

6,697

 

 

 

7,050

 

Interest and investment income

 

 

(425

)

 

 

(659

)

 

(934

)

 

 

(1,201

)

Income taxes

 

 

69,147

 

 

 

58,530

 

 

130,131

 

 

 

90,281

 

Expenses associated with share-based compensation arrangements

 

 

5,611

 

 

 

2,761

 

 

12,542

 

 

 

5,742

 

Net loss (gain) on disposition and impairment of assets

 

 

1,072

 

 

 

(1,045

)

 

766

 

 

 

(1,577

)

Equity in earnings of investee

 

 

1,017

 

 

 

835

 

 

1,532

 

 

 

1,465

 

Unrealized loss (gain) on investments

 

 

4,579

 

 

 

(1,030

)

 

6,181

 

 

 

(2,784

)

Depreciation expense

 

 

22,192

 

 

 

19,609

 

 

44,034

 

 

 

38,342

 

Amortization of intangibles

 

 

4,068

 

 

 

3,195

 

 

8,740

 

 

 

7,193

 

Adjusted EBITDA

 

$

318,509

 

 

$

261,455

 

$

610,673

 

 

$

424,122

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

11.0

%

 

 

9.7

%

 

11.3

%

 

 

9.4

%

---------------AT THE COMPANY---------------

Dick Gauthier
VP, Communications and Investor Relations
(616) 365-1555