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UFPI Increases Earnings By 117% In 3rd Quarter

Stocks in this article: UFPI

Commercial construction and concrete forming: $21.2 million, an increase of 11.7 percent over 2010.

Universal continues to see opportunity in the concrete forming business, in which it manufactures and/or supplies forms and other materials for concrete construction projects. This is a highly fragmented market that capitalizes on Universal’s engineering and manufacturing capabilities and on its nationwide presence.

OUTLOOK

The Company believes continued challenging economic conditions and uncertainties in the housing market limit its ability to provide meaningful guidance for ranges of likely financial performance; therefore, the Company will not resume the practice of providing guidance in the foreseeable future.

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 Thursday, October 13, 2011. 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 866.314.9013 or internationally at 617.213.8053. Use conference pass code 63245938. 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 November 13, 2011, domestically at 888-286-8010 or internationally at 617-801-6888. Use replay pass code 50523221.

UNIVERSAL FOREST PRODUCTS, INC.

Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for DIY/retail home centers and other retailers, structural lumber products for the manufactured housing industry, engineered wood components for residential and commercial construction, specialty wood packaging and components for various industries, and forming products for concrete construction. The Company's consumer products subsidiary offers a large portfolio of outdoor living products, including wood composite decking, decorative balusters, post caps and plastic lattice. Its lawn and garden group offers an array of products, such as trellises and arches, to retailers nationwide. Universal’s subsidiaries also provide framing services for the site-built construction market. Founded in 1955, Universal Forest Products is headquartered in Grand Rapids, Mich., with operations throughout North America. 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, assumptions or events 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 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.

 
 
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 2011/2010
    Quarter Period   Year to Date
(In thousands, except per share data)   2011       2010       2011       2010    
               
 
 
NET SALES $ 468,941 100 % $ 480,574 100 % $ 1,400,313 100 % $ 1,512,166 100 %
 
COST OF GOODS SOLD   414,583   88.4   426,159   88.7   1,247,954   89.1   1,328,232   87.8
 
GROSS PROFIT 54,358 11.6 54,415 11.3 152,359 10.9 183,934 12.2
 
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 44,013 9.4 47,286 9.8 135,829 9.7 149,815 9.9
NET LOSS ON DISPOSITION OF ASSETS,
EARLY RETIREMENT, AND
OTHER IMPAIRMENT AND EXIT CHARGES   207   -   1,137   0.2   3,696   0.3   1,521   0.1
 
EARNINGS FROM OPERATIONS 10,138 2.2 5,992 1.2 12,834 0.9 32,598 2.2
 
INTEREST, NET   857   0.2   777   0.2   2,289   0.2   2,376   0.2
 
EARNINGS BEFORE INCOME TAXES 9,281 2.0 5,215 1.1 10,545 0.8 30,222 2.0
 
INCOME TAXES   3,293   0.7   2,017   0.4   3,508   0.3   10,836   0.7
 
NET EARNINGS 5,988 1.3 3,198 0.7 7,037 0.5 19,386 1.3
 
LESS NET EARNINGS ATTRIBUTABLE TO
NONCONTROLLING INTEREST   (372 ) (0.1 )   (614 ) (0.1 )   (814 ) (0.1 )   (2,099 ) (0.1 )
 
NET EARNINGS ATTRIBUTABLE TO
CONTROLLING INTEREST $ 5,616   $ 2,584   $ 6,223   $ 17,287  
 
 
EARNINGS PER SHARE - BASIC $ 0.29 $ 0.13 $ 0.32 $ 0.90
 
EARNINGS PER SHARE - DILUTED $ 0.29 $ 0.13 $ 0.32 $ 0.89
 
WEIGHTED AVERAGE SHARES OUTSTANDING 19,441 19,201 19,387 19,239
 
WEIGHTED AVERAGE SHARES OUTSTANDING
WITH COMMON STOCK EQUIVALENTS 19,546 19,416 19,524 19,488
 

SUPPLEMENTAL SALES DATA

Quarter Period Year to Date

Market Classification

2011 % 2010 % 2011 % 2010 %
Retail Building Materials $ 210,912 44 % $ 222,842 45 % $ 673,720 47 % $ 762,929 50 %
Residential Construction 52,174 11 % 62,857 13 % 156,660 11 % 183,596 12 %
Commercial Construction and Concrete Forming 21,220 4 % 19,003 4 % 56,490 4 % 50,305 3 %
Industrial 128,267 27 % 120,613 25 % 364,453 26 % 345,277 22 %
Manufactured Housing   65,718   14 %   64,175   13 %   177,351   12 %   195,941   13 %
Total Gross Sales 478,291 100 % 489,490 100 % 1,428,674 100 % 1,538,048 100 %
Sales Allowances   (9,350 )   (8,916 )   (28,361 )   (25,882 )
Total Net Sales $ 468,941   $ 480,574   $ 1,400,313   $ 1,512,166  
 
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 2011/2010
                               
(In thousands)                  
ASSETS   2011   2010       LIABILITIES AND EQUITY   2011   2010
 
CURRENT ASSETS CURRENT LIABILITIES
Cash and cash equivalents $ 18,649 $ 41,936 Accounts payable $ 65,315 $ 62,621
Accounts receivable 173,965 166,369 Accrued liabilities 56,823 68,977
Inventories 180,882 172,457 Current portion of long-term
Assets held for sale 5,082 - debt and capital leases 266 702
Other current assets   21,493   18,759    
 
TOTAL CURRENT ASSETS 400,071 399,521 TOTAL CURRENT LIABILITIES 122,404 132,300
 
OTHER ASSETS 11,470 6,069 LONG-TERM DEBT AND
INTANGIBLE ASSETS, NET 168,962 175,051 CAPITAL LEASE OBLIGATIONS,
PROPERTY, PLANT less current portion 52,200 52,465
AND EQUIPMENT, NET 217,920 221,839 OTHER LIABILITIES 37,850 35,626
    EQUITY   585,969   582,089
 
TOTAL ASSETS $ 798,423 $ 802,480 TOTAL LIABILITIES AND EQUITY $ 798,423 $ 802,480
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 2011/2010
(In thousands)   2011   2010
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net earnings attributable to controlling interest $ 6,223 $ 17,287
Adjustments to reconcile net earnings attributable to
controlling interest to net cash from operating activities:
Depreciation 22,260 22,305
Amortization of intangibles 4,129 5,243
Expense associated with share-based compensation arrangements 1,281 1,495
Excess tax benefits from share-based compensation arrangements (138 ) (265 )
Expense associated with stock grant plans 162 134
Deferred income tax credit (222 ) (228 )
Net earnings attributable to noncontrolling interest 814 2,099
Net (gain) loss on sale or impairment of assets (183 ) 1,053
Changes in:
Accounts receivable (47,438 ) (58,151 )
Inventories 9,497 (7,103 )
Accounts payable 5,849 12,829
Accrued liabilities and other (109 ) 14,711
NET CASH FROM OPERATING ACTIVITIES 2,125 11,409
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant, and equipment (21,774 ) (15,679 )
Acquisitions, net of cash received - (6,529 )
Proceeds from sale of property, plant and equipment 1,485 540
Purchase of patents (116 ) (4,589 )
Advances of notes receivable - (1,000 )
Collections of notes receivable 308 143
Other, net 100 17
NET CASH FROM INVESTING ACTIVITIES (19,997 ) (27,097 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments under revolving credit facilities (2,109 ) -
Repayment of long-term debt (745 ) (719 )
Proceeds from issuance of common stock 1,306 1,439
Purchase of additional noncontrolling interest (402 ) (1,227 )
Distributions to noncontrolling interest (1,213 ) (944 )
Capital contribution from noncontrolling interest 80 250
Dividends paid to shareholders (3,905 ) (3,869 )
Repurchase of common stock - (4,999 )
Excess tax benefits from share-based compensation arrangements 138 265
Other, net 8 18
NET CASH FROM FINANCING ACTIVITIES (6,842 ) (9,786 )
 
NET CHANGE IN CASH AND CASH EQUIVALENTS (24,714 ) (25,474 )
 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 43,363 67,410
 
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 18,649   $ 41,936  
 
SUPPLEMENTAL INFORMATION:
Cash paid (refunded) during the period for:
Interest $ 2,162 $ 2,058
Income taxes 3,483 (1,488 )




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