- Q4 Earnings up 9.8 percent; Annual Earnings up 25.5 percent -
GRAND RAPIDS, Mich., Wed., Feb. 22, 2017 – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced record results in 2016, including record fourth-quarter net earnings attributable to controlling interest of $20.8 million, or $1.02 per diluted share, 9.8 percent higher than the fourth quarter of 2015. The Company also posted record annual net earnings attributable to controlling interest of $101.2 million, or $4.96 per diluted share, representing a 25.5 percent increase over 2015 annual net earnings attributable to controlling interest of $80.6 million, or $3.99 per diluted share. Fourth-quarter 2016 net sales of $859.6 million were up 31.5 percent over net sales for the same period of 2015. Annual net sales of $3.24 billion surpassed 2015 annual net sales of $2.89 billion by 12.2 percent and is a new record for the Company. Although acquisitions contributed to the records, most of the Company’s annual growth came from existing operations.
“The people who work for the companies of Universal are the best in the business, and they continue to prove it with record-breaking results,” said CEO Matthew J. Missad. “They continuously look for ways to create efficiencies, reduce manufacturing costs and grow sales by building and deepening customer relationships. They also have been bringing a number of exciting new, value-added products to the market. I couldn’t be more proud of them.”
New product sales grew 28.9 percent to $354.3 million in 2016, compared to $274.9 million in 2015.
Higher lumber prices contributed about 4 percent and 1 percent to the Company’s fourth-quarter and annual sales growth, respectively.
“Our results reflect the dedication of our employees and trust of our shareholders, and I want to thank them for their commitment to the Company,” added Missad. “We intend to continue to build on their trust with wise investments that will continue to grow our business in the future.”
By market, the Company posted the following 2016 gross sales results:
• Fourth quarter: $275.7 million, up 19.4 percent over the fourth quarter of 2015
• Year: $1.3 billion, up 13.7 percent over the previous year
The Company benefited from an 11 percent increase in fourth-quarter unit sales to the Retail market, led by a 25 percent increase in sales to big box customers. The increase in total unit sales is attributable to market share gains, new products and improved consumer demand. The Company continues to add new products, develop relationships with new customers, and increase share with existing customers.
• Fourth quarter: $275.6 million, up 24.7 percent over the fourth quarter of 2015
• Year: $1 billion, up 12.5 percent over the previous year
Overall, unit sales to the Construction market rose almost 20 percent in the fourth quarter, led by a strong gain of 30 percent to residential construction customers. According to the U.S. Census Bureau, housing starts during the period of September through November 2016 rose less than 1 percent over the same period last year. The Company remains focused on growing business selectively in areas where housing markets are the most stable.
• Fourth quarter: $318.6 million, up 52.2 percent over the fourth quarter of 2015
• Year: $988.0 million, up 10.6 percent over the previous year
The Company’s growth in this market is primarily due to its acquisition of idX Corporation, which closed in September of 2016. Excluding acquisitions, the Company grew unit sales in this market by 11 percent in the fourth quarter by adding new customers and increasing share with existing customers. The Company plans to continue its efforts to focus on value-added products.
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 Thursday, February 23, 2017. 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 40666839. 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 March 23, 2017, at 855-859-2056, 404-537-3406 or 800-585-5367.