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Form 8-K UNIVERSAL FOREST PRODUCT For: Apr 20

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April 20, 2016 4:16 PM EDT


 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8‑K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 20, 2016

Universal Forest Products, Inc.
(Exact name of registrant as specified in its charter)

Michigan
(State or other Jurisdiction of Incorporation)
0-22684
(Commission File Number)
38-1465835
(IRS Employer Identification No.)

2801 East Beltline, NE
Grand Rapids, Michigan
(Address of Principal Executive Offices)
 
49525
(Zip Code)

Registrant's telephone number, including area code: (616) 364-6161

None
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).


 
 
 




Item 2.02
Results of Operations and Financial Condition
On April 20, 2016, the Registrant issued a press release announcing its financial results for the quarter ended March 26, 2016. A copy of the Registrant’s press release is attached as Exhibit 99(a) to this Current Report.
Item 9.01
Financial Statements, Pro Forma Financial Information, and Exhibits

(c)
Exhibits
 
99(a)
Press Release dated April 20, 2016.
2

 
 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
UNIVERSAL FOREST PRODUCTS, INC.
 
(Registrant)
 
 
 
Dated: April 20, 2016
By:
/s/ Michael R. Cole
 
 
Michael R. Cole, Chief Financial Officer
 
 
and Treasurer
3
 
 
 


EXHIBIT INDEX

Exhibit Number
Document

99(a)
Press Release dated April 20, 2016.
 
 
4
 
 
 



Universal Forest Products, Inc.
Page 1niversal Forest Products, Inc.
Page 1


 
 
 
 
 

Exhibit 99(a)
 

 
News release

---------------AT THE COMPANY---------------
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502

FOR IMMEDIATE RELEASE
Wednesday, April 20, 2016


UFPI Reports Record First Quarter Results
Earnings up 89 percent, net sales up 7.8 percent
GRAND RAPIDS, Mich., Wednesday, April 20, 2016 - Universal Forest Products, Inc. (Nasdaq: UFPI) today announced first-quarter net earnings attributable to controlling interest of $19.2 million, up 89 percent over the same period of 2015. Diluted earnings per share were $0.95, compared to $0.51 for the first quarter of 2015. Net sales for the first quarter were $682.2 million, up 7.8 percent over the first quarter of 2015. The net earnings and net sales results are first-quarter records for the Company.
“The record-breaking results we have enjoyed since the third quarter of 2015 are a testament to the outstanding efforts of our people and the strategies we have implemented to grow and improve the business,” said CEO Matt Missad. “Rather than become complacent, we are targeting new opportunities for growth and improved profitability, while enhancing value for our customers.”
The first-quarter sales growth is attributable to increases in the Company’s retail and construction markets, which grew 17 percent and 9.3 percent, respectively, despite a 12 percent decline in year-over-year lumber prices in the first quarter.
“While the milder winter contributed to improved quarter-over-quarter results, we also benefitted from increased new product sales, operational efficiency improvements, and a better sales mix,” Matt reported. New product sales for the quarter rose 32 percent to $67.5 million, up from $51 million during the same period in 2015.
-more-

Universal Forest Products, Inc.
Page 2niversal Forest Products, Inc.
Page 2


By market, the Company posted the following first-quarter 2016 gross sales results:
Retail: $270.7 million, up 17 percent over the same period of 2015
The Company saw increases in unit sales to both its big box and independent retail customers as a result of improving demand and success in the Company’s new product sales initiative. The sales were partially offset by a 2 percent decrease in selling prices due to the commodity lumber market. The Company believes it is well-positioned to meet the growing demand of customers as the spring building season begins. It remains focused on enhancing its product offerings by creating new products and improving upon existing products, and increasing its market share with independent retailers.
Industrial: $204.2 million, down 3 percent from the first quarter of 2015
This market includes packaging, material handling and related products, and other wood-based products for many other applications that serve a variety of industrial customers. The Company’s unit sales increased 5 percent as a result of organic growth from adding new customers and growing market share with existing customers. Gross sales fell 3 percent due to an 8 percent decrease in selling prices due to lower lumber costs. The Company remains focused on adding new customers, expanding its product and service offering, adding capacity in certain regions, and growing its business in non-wood packaging materials.
Construction: $218.9 million, up 9 percent over the same period of 2015
This market includes residential and manufactured housing and commercial construction. The Company’s growth in this market was attributable to a 15 percent increase in unit sales, led by strong sales in commercial and residential construction. Gross sales were partially offset by a 6 percent decrease in selling prices.

CONFERENCE CALL
Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. ET on Thurs., April 21, 2016. 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 (888) 685-5759 and internationally at (503) 343-6031. Use conference pass code 88497073. 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 through May 15, 2016, at 855-859-2056 or 404-537-3406 or 800-585-8367.


-more-






Universal Forest Products, Inc.
Page 3niversal Forest Products, Inc.
Page 3


UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries in three robust markets: retail, construction and industrial. Founded in 1955, the Company is headquartered in Grand Rapids, Mich., with affiliates throughout North America and Australia. For more about Universal Forest Products, 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.







# # #











Universal Forest Products, Inc.
Page 4niversal Forest Products, Inc.
Page 4


CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2016/2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Period
 
Year to Date
 
(In thousands, except per share data)
2016
2015
2016
2015
 
NET SALES
$
682,151

100
%
 
$
633,025

100
%
 
$
682,151

100
%
 
$
633,025

100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COST OF GOODS SOLD
579,412

84.9

 
553,443

87.4

 
579,412

84.9

 
553,443

87.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROSS PROFIT
102,739

15.1

 
79,582

12.6

 
102,739

15.1

 
79,582

12.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
70,838

10.4

 
61,705

9.7

 
70,838

10.4

 
61,705

9.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET (GAIN) LOSS ON DISPOSITION AND IMPAIRMENT OF ASSETS
(10
)
—

 
14

—

 
(10
)
—

 
14

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS FROM OPERATIONS
31,911

4.7

 
17,863

2.8

 
31,911

4.7

 
17,863

2.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER EXPENSE, NET
891

0.1

 
955

0.2

 
891

0.1

 
955

0.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS BEFORE INCOME TAXES
31,020

4.5

 
16,908

2.7

 
31,020

4.5

 
16,908

2.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME TAXES
10,765

1.6

 
6,104

1.0

 
10,765

1.6

 
6,104

1.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET EARNINGS
20,255

3.0

 
10,804

1.7

 
20,255

3.0

 
10,804

1.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST
(1,043
)
(0.2
)
 
(642
)
(0.1
)
 
(1,043
)
(0.2
)
 
(642
)
(0.1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST
$
19,212

2.8

 
$
10,162

1.6

 
$
19,212

2.8

 
$
10,162

1.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE - BASIC
$
0.95

 
 
$
0.51

 
 
$
0.95

 
 
$
0.51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE - DILUTED
$
0.95

 
 
$
0.51

 
 
$
0.95

 
 
$
0.51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
20,697

 
 
9,801

 
 
20,697

 
 
9,801

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
(846
)
 
 
(498
)
 
 
(846
)
 
 
(498
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
$
19,851

 
 
$
9,303

 
 
$
19,851

 
 
$
9,303

 
 
SUPPLEMENTAL SALES DATA
 
 
 
 
 
 
 
 
Quarter Period
 
Year to Date
Market Classification
2016
2015
%
 
2016
2015
%
Retail
$
270,743

$
231,447

17
 %
 
$
270,743

$
231,447

17
 %
Industrial
204,245

210,016

(3
)%
 
204,245

210,016

(3
)%
Construction
218,876

200,306

9
 %
 
218,876

200,306

9
 %
Total Gross Sales
693,864

641,769

8
 %
 
693,864

641,769

8
 %
Sales Allowances
(11,713
)
(8,744
)
 
 
(11,713
)
(8,744
)
 
Total Net Sales
$
682,151

$
633,025

 
 
$
682,151

$
633,025

 


Universal Forest Products, Inc.
Page 5niversal Forest Products, Inc.
Page 5


CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
MARCH 2016/2015
(In thousands)
 
 
 
 
 
ASSETS
2016
2015
LIABILITIES AND EQUITY
2016
2015
 
 
 
 
 
 
CURRENT ASSETS
 
 
CURRENT LIABILITIES
 
 
    Cash and cash equivalents
$
43,065

$
22,888

   Cash Overdraft
$
—

$
21,585

    Restricted cash
1,139

710

   Accounts payable
116,525

114,225

    Investments
6,737

—

   Accrued liabilities
97,910

79,326

    Accounts receivable
287,374

260,926

   Current portion of debt
886

21

    Inventories
327,177

404,711

 
 
 
    Other current assets
16,889

19,984

 
 
 
 
 
 
 
 
 
TOTAL CURRENT ASSETS
682,381

709,219

TOTAL CURRENT LIABILITIES
215,321

215,157

 
 
 
 
 
 
OTHER ASSETS
10,424

9,674

LONG-TERM DEBT AND
 
 
INTANGIBLE ASSETS, NET
198,338

193,113

CAPITAL LEASE OBLIGATIONS
84,525

187,020

PROPERTY, PLANT
 
 
OTHER LIABILITIES
51,003

50,309

    AND EQUIPMENT, NET
254,634

255,462

EQUITY
794,928

714,982

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL ASSETS
$
1,145,777

$
1,167,468

TOTAL LIABILITIES AND EQUITY
$
1,145,777

$
1,167,468



















Universal Forest Products, Inc.
Page 6niversal Forest Products, Inc.
Page 6


CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED
MARCH 2016/2015
(In thousands)
2016
2015
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
Net earnings
$
20,255

$
10,804

Adjustments to reconcile net earnings to net cash from operating activities:
 
 
      Depreciation
9,492

8,996

      Amortization of intangibles
693

983

      Expense associated with share-based compensation arrangements
432

378

      Expense associated with stock grant plans
37

27

      Deferred income tax credit
(156
)
(193
)
      Equity in earnings of investee
(81
)
(83
)
      Net loss (gain) on disposition and impairment of assets
(10
)
14

      Changes in:
 
 
        Accounts receivable
(64,276
)
(63,148
)
        Inventories
(22,159
)
(64,422
)
        Accounts payable and cash overdraft
21,498

45,219

        Accrued liabilities and other
4,318

10,880

          NET CASH FROM OPERATING ACTIVITIES
(29,957
)
(50,545
)
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
Purchases of property, plant, and equipment
(12,941
)
(15,102
)
Proceeds from sale of property, plant and equipment
132

50

Acquisitions, net of cash received
—

(2,585
)
Advances of notes receivable
(1,259
)
(1,273
)
Collections of notes receivable and related interest
1,408

5,790

Cash restricted as to use
(553
)
(305
)
Other, net
(173
)
(16
)
          NET CASH FROM INVESTING ACTIVITIES
(13,386
)
(13,441
)
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
Borrowings under revolving credit facilities
1,235

140,303

Repayments under revolving credit facilities
(1,495
)
(52,718
)
Proceeds from issuance of common stock
130

469

Distributions to noncontrolling interest
(1,170
)
(939
)
Repurchase of common stock
—

(78
)
Other, net
(5
)
(9
)
          NET CASH FROM FINANCING ACTIVITIES
(1,305
)
87,028

 
 
 
Effect of exchange rate changes on cash
(43
)
(154
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(44,691
)
22,888

 
 
 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
87,756

—

 
 
 
CASH AND CASH EQUIVALENTS, END OF PERIOD
$
43,065

$
22,888

 
 
 




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