Universal Forest Products, Inc. Announces Record First Quarter Earnings of $0.30 Per Share
GRAND RAPIDS, Mich., April 18 /PRNewswire/ -- Universal Forest Products®, Inc. (NASDAQ: UFPI) today announced results for the first quarter of 2000, including record earnings per share of $0.30 (diluted) vs. $0.25 (diluted) for the first quarter of 1999. Net sales for the first quarter were $304.1 million, compared with $300.2 million for the same 1999 quarter, a 1.3% increase. Net earnings increased 13.4% to $6.1 million from $5.4 million for the comparable quarter.
"Our performance this quarter reflects the success of our strategy to be the leading supplier in four related, but diverse, markets," said William G. Currie, UFP's chief executive officer. "Despite the challenges we faced in the first quarter, including continued weakness in the manufactured housing industry and severe winter weather during January and February which curtailed sales in the Mid-Atlantic States, we still reported increased sales and record first quarter profits. Our strategy to diversify our sales across four market segments, and geographically across the United States, dilutes the effect of negative economic or weather related events and allows us to balance our business. Going forward, we expect continued growth in our Do-It-Yourself retail and industrial/agricultural market segments, which increased sales 12% and 19% respectively, as well as an upturn in sales growth in the site-built construction market resulting from increased demand for engineered wood components and our additional capacity to supply this demand."
| Financial Highlights | Three Months and YTD |
%Change | |
|---|---|---|---|
| Period Ended March 25/27 | 2000 | 1999 | |
| In thousands, except per share data | |||
| Net Sales | $304,072 | $300,180 | +1.3 |
| Gross Profit | 40,411 | 39,757 | +1.6 |
| Net Earnings | 6,081 | 5,361 | +13.4 |
| Earnings Per Share (Diluted) | $0.30 | $0.25 | +20.0 |
| Weighted Average Shares Outstanding with Common | |||
| Stock Equivalents | 20,524 | 21,415 | -4.2 |
Since the beginning of the year, the company has announced three new acquisitions. Letters of intent have been signed to acquire three lumber treating facilities in Youngstown, Ohio; Blanchester, Ohio; and Westville, Indiana, from Walker-Williams Lumber Company, and two combination lumber treating and remanufacturing facilities from Aljoma Lumber of Medley, Florida. The company also closed on the purchase of 50% of the outstanding shares of ECJW Holdings Inc., of London, Ontario, and its wholly-owned subsidiaries, Thorndale Roof Systems and Edcor Floor Systems.
"During the sixteen months from December of 1997 to March of 1999, we completed 13 transactions," continued Currie. "Since March of 1999, we have been working to integrate those acquisitions and develop a pipeline of new opportunities. We remain disciplined in our acquisition strategy to acquire strategically located, 'best in class,' companies that are accretive to earnings and can operate autonomously while achieving the company's revenue and growth targets. We feel strongly that our recent acquisitions meet these and other stringent criteria," concluded Currie.
About Universal Forest Products (R), Inc.
Universal Forest Products® markets, manufactures, and engineers products for D-I-Y retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. For information about Universal Forest Products® on the Internet, please contact the company's investor relations web site at www.ufpi.com , or call 888-BUY-UFPI.
Included in this report are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company's management as well as on assumptions made by and information currently available to the Company at the time such statements were 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 are the following: Adverse lumber market trends, competitive activity, negative economic trends, government regulations, and weather. These risk factors and additional information are included in the company's reports on Form 10K and 10Q on file with the Securities and Exchange Commission.
Highlights to follow:
Consolidated Statements of Earnings
(unaudited)
For the Three Months Ended
March 2000/1999
| (In thousands, except per share data) |
Quarter Period | |||
|---|---|---|---|---|
| 2000 | 1999 | |||
| Net Sales | $304,072 | 100% | $300,180 | 100% |
| Cost of Goods Sold | 263,661 | 86.71 | 260,423 | 86.76 |
| Gross Profit | 40,411 | 13.29 | 39,757 | 13.24 |
| Selling, General and Administrative Expenses | 27,318 | 8.98 | 28,385 | 9.46 |
| Earnings From Operations | 13,093 | 4.31 | 11,372 | 3.79 |
| Interest Expense | 3,168 | 1.04 | 2,919 | 0.97 |
| Interest Revenue | (86) | -0.03 | (149) | -0.05 |
| 3,082 | 1.01 | 2,770 | 0.92 | |
| Earnings Before Income Taxes, Minority Interest and Equity in Earnings of Investee | 10,011 | 3.29 | 8,602 | 2.87 |
| Income Taxes | 3,953 | 1.30 | 3,355 | 1.12 |
| Earnings Before Minority Interest and Equity in Earnings of Investee | 6,058 | 1.99 | 5,247 | 1.75 |
| Minority Interest | (23) | -0.01 | (81) | -0.03 |
| Equity in Earnings of Investee | 46 | 0.02 | 195 | 0.06 |
| Net Earnings | $6,081 | 2.00 | $5,361 | 1.79 |
| Earnings per Share-Basic | $0.30 | $0.26 | ||
| Earnings per Share-Diluted | $0.30 | $0.25 | ||
| Weighted Average Shares Outstanding | 20,135 | 20,710 | ||
| Weighted Average Shares Outstanding with Common Stock Equivalents | 20,524 | 21,415 | ||
Consolidated Statements of Earnings (unaudited)
For the Three Months Ended
March 2000/1999
| (In thousands, except per share data) |
Year to Date | |||
|---|---|---|---|---|
| 2000 | 1999 | |||
| Net Sales | $304,072 | 100% | $300,180 | 100% |
| Cost of Goods Sold | 263,661 | 86.71 | 260,423 | 86.76 |
| Gross Profit | 40,411 | 13.29 | 39,757 | 13.24 |
| Selling, General and Administrative Expenses | 27,318 | 8.98 | 28,385 | 9.46 |
| Earnings From Operations | 13,093 | 4.31 | 11,372 | 3.79 |
| Interest Expense | 3,168 | 1.04 | 2,919 | 0.97 |
| Interest Revenue | (86) | -0.03 | (149) | -0.05 |
| 3,082 | 1.01 | 2,770 | 0.92 | |
| Earnings Before Income Taxes, Minority Interest and Equity in Earnings of Investee | 10,011 | 3.29 | 8,602 | 2.87 |
| Income Taxes | 3,953 | 1.30 | 3,355 | 1.12 |
| Earnings Before Minority Interest and Equity in Earnings of Investee | 6,058 | 1.99 | 5,247 | 1.75 |
| Minority Interest | (23) | -0.01 | (81) | -0.03 |
| Equity in Earnings of Investee | 46 | 0.02 | 195 | 0.06 |
| Net Earnings | $6,081 | 2.00 | $5,361 | 1.79 |
| Earnings per Share-Basic | $0.30 | $0.26 | ||
| Earnings per Share-Diluted | $0.30 | $0.25 | ||
| Weighted Average Shares Outstanding | 20,135 | 20,710 | ||
| Weighted Average Shares Outstanding with Common Stock Equivalents | 20,524 | 21,415 | ||
Supplemental Sales Data
| Quarter Period | ||||
|---|---|---|---|---|
| Market Classification | 1999 | 1998 | ||
| Do-It-Yourself/Retail | $134,280 | 44% | $120,177 | 40% |
| Manufactured Housing | 78,182 | 26% | 96,258 | 32% |
| Site-Built Construction | 48,615 | 16% | 47,507 | 16% |
| Industrial and Other | 42,995 | 14% | 36,238 | 12% |
| Total | $304,072 | 100% | $300,180 | 100% |
| Year to Date | ||||
|---|---|---|---|---|
| Market Classification | 1999 | 1998 | ||
| Do-It-Yourself/Retail | $134,280 | 44% | $120,177 | 40% |
| Manufactured Housing | 78,182 | 26% | 96,258 | 32% |
| Site-Built Construction | 48,615 | 16% | 47,507 | 16% |
| Industrial and Other | 42,995 | 14% | 36,238 | 12% |
| Total | $304,072 | 100% | $300,180 | 100% |
Consolidated Balance Sheets (unaudited)
March 2000/1999
| Assets | Liabilities and Shareholders' Equity | ||||
|---|---|---|---|---|---|
| 2000 |
1999 | 2000 |
1999 | ||
| Current Assets | Current Liabilities | ||||
| Cash and cash equivalents | $2,405 | $2,189 | Notes payable | $1,428 | $2,038 |
| Accounts receivable | 107,051 | 92,613 | Accounts payable and accrued liabilities | 96,127 | 86,106 |
| Inventories | 159,629 | 148,713 | Current portion of long-term debt and capital leases | 7,277 | 9,182 |
| Other current assets | 7,231 | 7,458 | Total Current Liabilities | 104,832 | 97,326 |
| Total Current Assets | 276,316 | 250,973 | Long-Term Debt and Capital Leases, less current portion | 136,902 | 135,782 |
| Other Assets | 10,988 | 10,095 | Revolving Credit Facility | 54,800 | 49,600 |
| Goodwill and Non-Compete | 92,424 | 95,085 | Other Liabilities | 16,662 | 15,028 |
| Property, Plant and Equipment, Net | 152,432 | 138,144 | Shareholders' Equity | 218,964 | 196,561 |
| Total Assets | $532,160 | $494,297 | Total Liabilities and Shareholders' Equity | $532,160 | $494,297 |
Consolidated Statements of Cash
Flows (unaudited)
For the Three Months Ended
March 2000/1999
| (In thousands) | 2000 | 1999 |
|---|---|---|
| Cash Flows From Operating Activities: | ||
| Net earnings | $6,081 | $5,361 |
| Adjustments to reconcile net earnings to net cash from operating activities: | ||
| Depreciation | 3,830 | 3,571 |
| Amortization of non-compete agreements and goodwill | 791 | 821 |
| (Gain) loss on sale of property, plant and equipment | (88) | 17 |
| Changes in: | ||
| Accounts receivable | (37,040) | (29,767) |
| Inventories | (28,095) | (40,314) |
| Other | 7,232 | 176 |
| Accounts payable | 22,737 | 21,755 |
| Accrued liabilities | (12,321) | (3,285) |
| Net Cash From Operating Activities | (36,873) | (41,655) |
| Cash Flows From Investing Activities: | ||
| Purchases of property, plant and equipment | (7,271) | (9,746) |
| Proceeds from sale of property, plant and equipment | 209 | - |
| Other | (261) | 831 |
| Net Cash From Investing Activities | (7,323) | (8,915) |
| Cash Flows From Financing Activities: | ||
| Repayment of long-term debt | (379) | (836) |
| Proceeds from issuance of long-term debt | 1,949 | 20,300 |
| Net borrowings (repayments) under revolving credit facility and notes payable | 42,908 | 33,262 |
| Proceeds from issuance of common stock | 66 | 61 |
| Repurchase of common stock | (2,049) | (938) |
| Net Cash From Financing Activities | 42,495 | 51,849 |
| Net Change in Cash and Cash Equivalents | (1,701) | 1,269 |
| Cash and Cash Equivalents, Beginning of Year | 4,106 | 920 |
| Cash and Cash Equivalents, End of Period | $2,405 | $2,189 |
Contact
| At the Company: | Michael R. Cole, Chief Financial Officer of Universal Forest Products, +1-616-364-6161 |
| At Fleishman Hillard: | Jim Ankner, Vice President of Fleishman Hillard, +1-212-453-2198 |