UFP Industries, Inc. (UFPI)
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Performance Outlook
| Previous Close | 50.21 |
| Open | 50.25 |
| Bid | 49.52 x 800 |
| Ask | 49.73 x 1100 |
| Day's Range | 49.23 - 51.03 |
| 52 Week Range | 29.17 - 64.20 |
| Volume | 31,697 |
| Avg. Volume | 302,604 |
| Market Cap | 3.012B |
| Beta (5Y Monthly) | 1.58 |
| PE Ratio (TTM) | 13.64 |
| EPS (TTM) | 3.61 |
| Earnings Date | Oct 21, 2020 |
| Forward Dividend & Yield | 0.50 (1.00%) |
| Ex-Dividend Date | Nov 30, 2020 |
| 1y Target Est | 62.20 |
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- Simply Wall St.
Here's What We Think About UFP Industries' (NASDAQ:UFPI) CEO Pay
This article will reflect on the compensation paid to Matt Missad who has served as CEO of UFP Industries, Inc...
- Motley Fool
Universal Forest Products Inc (UFPI) Q3 2020 Earnings Call Transcript
Ladies and gentlemen, thank you for standing by and welcome to the Q3 2020 UFP Industries Earnings Conference Call. Hosting the call today are CEO Matt Missad and CFO, Mike Cole. Before I turn the call over to Matt Missad, let me remind you that yesterday's press release and today's presentation include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.
- GlobeNewswire
CORRECTING AND REPLACING - UFP Industries Reports Best Quarterly Results in the Company’s History
Third Quarter Net Sales up 28 percent, Diluted EPS up 49 percent, EBITDA up 40 percentGRAND RAPIDS, Mich., Oct. 22, 2020 (GLOBE NEWSWIRE) -- In the release titled, "UFP Industries Reports Best Quarterly Results in the Company’s History" issued yesterday, Wednesday, October 21, 2020, we were informed by the client UFP Industries, Inc. (Nasdaq: UFPI), the figure "more than $70 million" in the sixth paragraph should be "more than $700 million." The corrected release follows:UFP Industries, Inc. (Nasdaq: UFPI) today announced record sales of $1.49 billion and net earnings attributable to controlling interest of $77.2 million for the third quarter ended September 26, 2020. The company also reported record EPS of $1.25 per diluted share, a 49 percent increase over the same period of 2019. These are the best quarterly sales and earnings results in the company’s 65-year history. “One of the many lessons I will take from 2020 is that UFP Industries has the business diversification, processes, and experienced team members to face serious challenges and continue to serve customers while delivering strong results for our stakeholders,” said CEO Matthew J. Missad. “So far this year, we faced a pandemic, shut-down orders that disrupted economic activity, a record increase in lumber pricing, supply constraints, wildfires, hurricanes and rail shortages. Despite that, our teams worked diligently to address shifting customer demands, managed inventory wisely, and delivered record results. When it comes to what we can achieve, they set the bar even higher. I want to thank each of our over 13,000 team members for their fantastic efforts. I’d like to also acknowledge an extraordinary American business leader, UFP’s former president, CEO and chairman, my early and lifelong mentor, Ambassador Peter Secchia, who died today. Peter, the architect of UFP’s remarkable early growth, would have been extremely gratified to see his legacy acknowledged and celebrated today with the reporting of the best quarter in the company’s history.”UFP Industries’ third quarter unit sales grew 8 percent over the same period of 2019, almost entirely from organic sales increases. Unit sales to Retail customers grew 34 percent organically over this period, led by the company’s ProWood, Dimensions, Outdoor Essentials, and Deckorators product lines.“At the beginning of the pandemic, no one in the industry predicted the growth we’d see in our Retail segment,” Missad said. “Although UFP Retail Solutions has benefited from higher lumber prices and the spike in consumer demand during the past several months, it was well-positioned for improvement even before the pandemic began. In addition to the extraordinary efforts of our team members, I credit our investments in new products and in our new management structure, which allows us to focus better on our customers’ needs, each market we serve, and launch new products and execute initiatives with greater speed.” New product sales grew 41 percent in the third quarter over the same period of last year.Keeping with the new product focus, UFP Industries recently completed the acquisition of Fire Retardant Chemical Technologies, LLC (FRCT), the leading R&D company specializing in wood treating technologies such as fire retardants. The addition of FRCT will allow UFP to develop new technologies and value-added wood products for the company’s ProWood pressure-treated line, as well as for other customers.UFP Industries continues to maintain a strong pipeline of acquisition targets and a disciplined approach to capital allocation. The company’s long-term credit facilities and cash currently provide more than $700 million in available liquidity. Additionally, today the company’s board approved a quarterly dividend payment of 12.5 cents per share, bringing the annual total for 2020 to 50 cents per share, a 25 percent increase over the dividends paid in 2019. The dividend is payable on December 15, 2020, to shareholders of record on December 1, 2020.“This year has been a difficult year for many, and we hope that those who have lost businesses or livelihoods due to the lockdowns will soon be able to start their recovery. UFP has been very fortunate, and even with market headwinds and COVID-19 restrictions, our record performance has validated the confidence we have in our organization’s ability to execute. Our operations will take the lessons we’ve learned and turn them into improvement opportunities for even higher levels of performance. We know that when challenged, UFP employees answer the call and do great things.”Third Quarter 2020 Highlights (comparisons on a year-over-year basis): * Net sales of $1.49 billion, up 28 percent due to a 20 percent increase in pricing and an 8 percent increase in units sold * Gross profits increased 29 percent to over $241 million for the quarter as our profit per unit sold increased substantially * Earnings from operations of $106.6 million were up 51 percent, and net earnings attributable to controlling interest of $77.2 million were up 49 percent * EBITDA of $125.7 million increased 40 percentBy business segment, the company reported the following third-quarter results:UFP Retail Solutions * $700.5 million in net sales, up 76 percent over the third quarter of 2019. Unit sales increased 34 percent, with higher selling prices increasing sales by 42 percent. The following business units drove unit sales growth: Dimensions Home and Décor (unit sales up 57 percent); Deckorators (up 50 percent); ProWood (up 30 percent); and Outdoor Essentials Fence, Lawn and Garden (up 28 percent). Unit sales in the segment’s E-Commerce unit, which include sales through large online retailers, grew 94 percent. UFP Industrial * $282.1 million in net sales, up 4 percent from the third quarter of 2019. Unit sales decreased 2 percent, while higher selling prices increased sales by 6 percent. Industrial unit sales showed steady improvement as the third quarter progressed, with year-over-year sales improving from 5 percent lower in July to 1 percent higher in September. The company has been focusing on providing more value-added products to customers in this segment. UFP Construction * $447.1 million in net sales, up 0.4 percent from the third quarter of 2019, due to a 9 percent decrease in unit sales and a 9 percent increase in selling prices. Unit sales changes by business unit for the quarter are as follows: Factory Built (up 7 percent); Concrete Forming (down 2 percent), Site Built (down 8 percent), Commercial (down 37 percent). Unit sales for Site Built showed continued improvement during the third quarter as business conditions improved. The Commercial business unit has been the most adversely impacted by the pandemic due to the slowdown in retail and other commercial construction and remodeling activity. CONFERENCE CALL UFP Industries will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. ET on Thursday, October 22, 2020. The call will be hosted by CEO Matthew J. Missad and CFO Michael Cole, and will be available for analysts and institutional investors domestically at 866-518-4547 and internationally at 213-660-0879. Use conference pass code 7497854. The conference call 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 from October 22, 2020, at 11:30 p.m. through October 24, 2020, 11:30 p.m. at 855-859-2056 or 404-537-3406.UFP Industries, Inc. (formerly Universal Forest Products, Inc.) UFP Industries is a holding company whose subsidiaries supply wood, wood composite and other products to three markets: retail, construction and industrial. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates throughout 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 InformationThis 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 EBITDA, a non-GAAP measure, an alternative performance measure which may provide useful information to investors. CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 2020/2019 Quarter Period Year to Date (In thousands, except per share data) 2020 2019 2020 2019 NET SALES $1,486,227 100% $1,163,026 100% $3,760,290 100% $3,417,969 100.0% COST OF GOODS SOLD 1,245,153 83.8 975,756 83.9 3,147,049 83.7 2,889,706 84.5 GROSS PROFIT 241,074 16.2 187,270 16.1 613,241 16.3 528,263 15.5 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 134,649 9.1 115,958 10.0 357,770 9.5 334,165 9.8 OTHER (176) - 845 0.1 (2,120) (0.1) 948 - EARNINGS FROM OPERATIONS 106,601 7.2 70,467 6.1 257,591 6.9 193,150 5.7 OTHER EXPENSE, NET 921 0.1 1,490 0.1 4,668 0.1 4,082 0.1 EARNINGS BEFORE INCOME TAXES 105,680 7.1 68,977 5.9 252,923 6.7 189,068 5.5 INCOME TAXES 26,819 1.8 16,396 1.4 63,798 1.7 45,340 1.3 NET EARNINGS 78,861 5.3 52,581 4.5 189,125 5.0 143,728 4.2 LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST (1,657) (0.1) (722) (0.1) (5,299) (0.1) (1,814) (0.1) NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST $77,204 5.2 $51,859 4.5 $183,826 4.9 $141,914 4.2 EARNINGS PER SHARE - BASIC $1.25 $0.84 $2.98 $2.30 EARNINGS PER SHARE - DILUTED $1.25 $0.84 $2.98 $2.30 SUPPLEMENTAL SALES AND SG&A DATA Quarter Period Year to Date Segment Classification 2020 2019 % 2020 2019 % Retail $700,522 $397,140 76.4% $1,661,873 $1,212,330 37.1% Industrial 282,124 271,667 3.8% 763,046 837,671 -8.9% Construction 447,103 445,505 0.4% 1,187,429 1,225,467 -3.1% All Other 56,478 48,714 15.9% 147,942 142,501 3.8% Total Net Sales $1,486,227 $1,163,026 27.8% $3,760,290 $3,417,969 10.0% 2020 % of Sales 2019 % of Sales 2020 % of Sales 2019 % of Sales SG&A, Excluding Bonus Expense $92,342 6.2 $93,344 8.0 $273,574 7.3 $280,898 8.2 Bonus Expense 42,307 2.8 22,614 1.9 84,196 2.2 53,267 1.6 Total SG&A $134,649 9.1 $115,958 10.0 $357,770 9.5 $334,165 9.8 SG&A as a Percentage of Gross Profit 55.9% 61.9% 58.3% 63.3% CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) SEPTEMBER 2020/2019 (In thousands) ASSETS 2020 2019 LIABILITIES AND EQUITY 2020 2019 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents $346,154 $64,498 Accounts payable $231,111 $180,767 Restricted cash 724 729 Accrued liabilities 259,733 204,529 Investments 20,530 17,028 Current portion of debt 2,760 152 Accounts receivable 583,079 474,648 Inventories 528,734 479,356 Other current assets 32,888 55,845 TOTAL CURRENT ASSETS 1,512,109 1,092,104 TOTAL CURRENT LIABILITIES 493,604 385,448 OTHER ASSETS 121,025 116,887 LONG-TERM DEBT AND INTANGIBLE ASSETS, NET 311,491 286,627 CAPITAL LEASE OBLIGATIONS 311,267 162,853 PROPERTY, PLANT OTHER LIABILITIES 131,945 103,221 AND EQUIPMENT, NET 405,995 385,007 EQUITY 1,413,804 1,229,103 TOTAL ASSETS $2,350,620 $1,880,625 TOTAL LIABILITIES AND EQUITY $2,350,620 $1,880,625 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 2020/2019 (In thousands) 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $189,125 $143,728 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation 47,226 44,652 Amortization of intangibles 5,863 4,690 Expense associated with share-based and grant compensation arrangements 3,152 3,105 Deferred income taxes (credit) 110 (367) Unrealized gain on investments and other (81) (1,611) Net (gain) loss on disposition and impairment of assets (662) 830 Changes in: Accounts receivable (211,238) (127,841) Inventories (39,167) 80,178 Accounts payable and cash overdraft 85,354 14,293 Accrued liabilities and other 105,401 36,423 NET CASH FROM OPERATING ACTIVITIES 185,083 198,080 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant, and equipment (67,024) (66,338) Proceeds from sale of property, plant and equipment 2,588 1,180 Acquisitions and purchase of noncontrolling interest, net of cash received (34,820) (38,710) Purchases of investments (24,266) (6,475) Proceeds from sale of investments 22,281 4,159 Other 314 199 NET CASH USED IN INVESTING ACTIVITIES (100,927) (105,985) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under revolving credit facilities 6,862 421,464 Repayments under revolving credit facilities (6,498) (460,537) Repayments of debt (3,087) (3,099) Issuance of long-term debt 150,000 - Proceeds from issuance of common stock 1,042 812 Dividends paid to shareholders (23,020) (12,270) Distributions to noncontrolling interest (932) (1,634) Repurchase of common stock (29,212) - Other 23 41 NET CASH FROM (USED IN) FINANCING ACTIVITIES 95,178 (55,223) Effect of exchange rate changes on cash (1,122) 157 NET CHANGE IN CASH AND CASH EQUIVALENTS 178,212 37,029 ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 168,666 28,198 ALL CASH AND CASH EQUIVALENTS, END OF PERIOD $346,878 $65,227 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents, beginning of period $168,336 $27,316 Restricted cash, beginning of period 330 882 All cash and cash equivalents, beginning of period $168,666 $28,198 Cash and cash equivalents, end of period $346,154 $64,498 Restricted cash, end of period 724 729 All cash and cash equivalents, end of period $346,878 $65,227 EBITDA RECONCILIATION (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 2020/2019 Quarter PeriodYear to Date (In thousands) 2020201920202019 Net earnings 78,861 52,581 189,125 143,728 Interest expense 2,486 1,900 6,291 6,767 Interest and investment income (1,011) (317) (1,541) (1,074) Income taxes 26,819 16,396 63,798 45,340 Expense associated with share-based compensation arrangements 849 896 3,152 3,105 Net (gain) loss on disposition and impairment of assets (391) 1,151 (662) 830 Unrealized gain on investments (554) (93) (82) (1,611) Depreciation expense 15,896 15,452 47,226 44,652 Amortization of intangibles 2,734 1,744 5,863 4,690 EBITDA 125,689 89,710 313,170 246,427 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AS A PERCENTAGE OF SALES CURRENT YEAR'S SALES STATED AT LAST YEAR'S SELLING PRICES (UNAUDITED) FOR THE THREE MONTHS ENDED - SEPTEMBER 2020/2019 Quarter Period ActualSales Adjusted to Last Year's Selling PricesActual 2020 2020 2019 NET SALES 100.0 % 100.0 % 100.0 % COST OF GOODS SOLD 83.8 80.8 83.9 GROSS PROFIT 16.2 19.2 16.1 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 9.1 10.7 9.9 OTHER - - 0.1 EARNINGS FROM OPERATIONS 7.2 8.5 6.1 OTHER EXPENSE, NET 0.1 0.1 0.1 EARNINGS BEFORE INCOME TAXES 7.1 8.4 5.9 INCOME TAXES 1.8 2.1 1.4 NET EARNINGS 5.3 6.3 4.5 LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST (0.1) (0.1) (0.1) NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST 5.2 % 6.2 % 4.5 % Note: Actual percentages are calculated and may not sum to total due to rounding. 2019 NET SALES$1,163,026 2020 SELL PRICE INCREASE 20.00 % INCREASE IN 2020 NET SALES DUE TO SELL PRICE INCREASE$232,605 ACTUAL 2020 NET SALES 1,486,227 LESS SELL PRICE ADJUSTMENT FOR LUMBER COSTS 232,605 ADJUSTED 2020 NET SALES$1,253,622 ACTUAL 2020 COST OF GOODS SOLD$1,245,153 LESS ADJUSTMENT FOR LUMBER COSTS 232,605 ADJUSTED 2020 COST OF GOODS SOLD$1,012,548 \---------------AT THE COMPANY--------------- Dick Gauthier VP, Business Outreach (616) 365-1555
