Universal Forest Products (NASDAQ: UFPI) reported Q2 EPS of $1.08, $0.50 better than the analyst estimate of $0.58. Revenue for the quarter came in at $1.24 billion versus the consensus estimate of $1.08 billion.

Second Quarter 2020 Highlights (comparisons on a year-over-year basis):

• Earnings from operations of $92.4 million were up 24 percent, and net earnings attributable to controlling interest of $66.5 million were up 22 percent
• EBITDA of $110.4 million increased by 22 percent
• Net sales of $1.24 billion; higher lumber prices contributed 3 percent in net sales which was substantially offset by a 3 percent decrease in units sold
• Operating cash flow more than doubled to $147.2 million for the first six months of 2020, up 107 percent over the same period of 2019
• Cash reserves exceed debt by almost $37 million

“I am very grateful that our operations were deemed essential and we were able to continue to serve customers during the second quarter,” said CEO Matthew J. Missad. “I am also grateful to our customers, many of whom continued to operate by finding new ways to serve the public and keep their employees safe. Their extraordinary efforts contributed to the success we experienced in the second quarter.

“While virus-related shutdowns negatively impacted our industrial and construction segments in ways we expected, the increase in home improvement activity resulting from stay-at-home orders benefited our retail segment. Conditions improved as we progressed through the second quarter, as demand in our retail segment accelerated sharply while the headwinds in our industrial and construction segments eased. Overall, our results once again validate our balanced business model and diverse product portfolio, which combine to mitigate the risk of a decline in a single market.

“We experienced much greater than expected demand for our home improvement products, and I give credit to our managers, treating and production teams, and buyers who worked tirelessly to fill customer orders and continue to do so. Our decentralized, entrepreneurial model empowers our local leaders with the decision-making authority they need to respond quickly to market changes, and our experienced team answered the call again, just as they have during other challenging times. They rapidly adapted to the changes in the markets they serve and made the changes necessary to keep our employees safe.”

For earnings history and earnings-related data on Universal Forest Products (UFPI) click here.