UFP INDUSTRIES INC [UFPI] Filings

10-Q 1 ufpi-20230930x10q.htm 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-22684

UFP INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)


	Michigan		38-1465835
	(State or other jurisdiction of incorporation or		(I.R.S. Employer Identification Number)
	organization)

	2801 East Beltline NE, Grand Rapids, Michigan		49525
	(Address of principal executive offices)		(Zip Code)

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


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

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ⌧	Accelerated Filer ◻	Non-Accelerated Filer ◻	Smaller Reporting Company ☐
			Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by checkmark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:


	Class		Outstanding as of September 30, 2023
	Common stock, $1 par value		61,812,538


Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Stock, no par value	UFPI	The Nasdaq Stock Market, LLC

Table of Contents

UFP INDUSTRIES, INC.

TABLE OF CONTENTS

PART I.		FINANCIAL INFORMATION.	Page No.

	Item 1.	Financial Statements	3

		Condensed Consolidated Balance Sheets at September 30, 2023, December 31, 2022 and September 24, 2022	3

		Condensed Consolidated Statements of Earnings and Comprehensive Income for the Three and Nine Months Ended September 30, 2023 and September 24, 2022	4

		Condensed Consolidated Statements of Shareholders’ Equity for the Nine Months Ended September 30, 2023 and September 24, 2022	5

		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and September 24, 2022	7

		Notes to Unaudited Condensed Consolidated Financial Statements	8

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	34

	Item 4.	Controls and Procedures	35

PART II.		OTHER INFORMATION

	Item 1.	Legal Proceedings – NONE

	Item 1A.	Risk Factors - NONE	35

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35

	Item 3.	Defaults upon Senior Securities – NONE

	Item 4.	Mine Safety Disclosures – NONE

	Item 5.	Other Information	35

	Item 6.	Exhibits	36

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(in thousands, except share data)	September 30,		December 31,		September 24,
	2023		2022		2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	957,092	$	559,397	$	449,135
Restricted cash		3,761		226		729
Investments		37,062		36,013		33,113
Accounts receivable, net		697,555		617,604		877,776
Inventories:
Raw materials		316,628		398,798		425,765
Finished goods		428,119		574,429		581,118
Total inventories		744,747		973,227		1,006,883
Refundable income taxes		26,484		33,126		28,771
Other current assets		38,421		42,520		39,956
TOTAL CURRENT ASSETS		2,505,122		2,262,113		2,436,363
DEFERRED INCOME TAXES		3,489		3,750		3,139
RESTRICTED INVESTMENTS		23,653		19,898		19,552
RIGHT OF USE ASSETS		106,506		107,517		101,001
OTHER ASSETS		150,351		101,262		94,090
GOODWILL		328,221		337,320		319,183
INDEFINITE-LIVED INTANGIBLE ASSETS		7,316		7,339		7,332
OTHER INTANGIBLE ASSETS, NET		140,734		143,892		113,880
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment		1,487,801		1,379,968		1,323,896
Less accumulated depreciation and amortization		(749,109)		(690,986)		(679,889)
PROPERTY, PLANT AND EQUIPMENT, NET		738,692		688,982		644,007
TOTAL ASSETS		4,004,084		3,672,073		3,738,547
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Cash overdraft	$	—	$	—	$	4,174
Accounts payable		253,065		206,941		323,404
Accrued liabilities:
Compensation and benefits		244,214		296,120		298,384
Other		78,691		80,255		111,596
Current portion of lease liability		24,326		25,577		23,767
Current portion of long-term debt		1,539		2,942		41,536
TOTAL CURRENT LIABILITIES		601,835		611,835		802,861
LONG-TERM DEBT		273,308		275,154		275,417
LEASE LIABILITY		86,571		85,419		80,903
DEFERRED INCOME TAXES		50,779		51,265		62,436
OTHER LIABILITIES		36,040		44,697		40,628
TOTAL LIABILITIES		1,048,533		1,068,370		1,262,245
TEMPORARY EQUITY:
Redeemable noncontrolling interest	$	6,788	$	6,880	$	7,563
SHAREHOLDERS’ EQUITY:
Controlling interest shareholders’ equity:
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none	$	—	$	—	$	—
Common stock, $1 par value; shares authorized 160,000,000; issued and outstanding, 61,812,538 , 61,618,193 and 61,637,514		61,813		61,618		61,638
Additional paid-in capital		345,399		294,029		284,025
Retained earnings		2,517,252		2,217,410		2,102,764
Accumulated other comprehensive loss		(5,083)		(9,075)		(11,348)
Total controlling interest shareholders’ equity		2,919,381		2,563,982		2,437,079
Noncontrolling interest		29,382		32,841		31,660
TOTAL SHAREHOLDERS’ EQUITY		2,948,763		2,596,823		2,468,739
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY	$	4,004,084	$	3,672,073	$	3,738,547

See notes to consolidated condensed financial statements.

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

AND COMPREHENSIVE INCOME

(Unaudited)


(in thousands, except per share data)	Three Months Ended				Nine Months Ended
	September 30,		September 24,		September 30,		September 24,
	2023		2022		2023		2022
NET SALES	$	1,827,637	$	2,322,855	$	5,694,031	$	7,713,042
COST OF GOODS SOLD		1,463,237		1,872,679		4,571,235		6,281,051
GROSS PROFIT		364,400		450,176		1,122,796		1,431,991
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		195,649		214,327		595,035		649,015
OTHER LOSSES (GAINS), NET		1,419		(1,195)		5,224		1,341
EARNINGS FROM OPERATIONS		167,332		237,044		522,537		781,635
INTEREST EXPENSE		3,205		3,516		9,598		10,213
INTEREST AND INVESTMENT (INCOME) LOSS		(9,390)		1,658		(23,654)		6,905
EQUITY IN LOSS OF INVESTEE		8		1,208		1,013		2,740
INTEREST AND OTHER		(6,177)		6,382		(13,043)		19,858
EARNINGS BEFORE INCOME TAXES		173,509		230,662		535,580		761,777
INCOME TAXES		39,326		58,561		125,031		188,692
NET EARNINGS		134,183		172,101		410,549		573,085
NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST		(148)		(4,860)		316		(13,023)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$	134,035	$	167,241	$	410,865	$	560,062

EARNINGS PER SHARE – BASIC	$	2.14	$	2.68	$	6.55	$	8.93
EARNINGS PER SHARE – DILUTED	$	2.10	$	2.66	$	6.45	$	8.89

OTHER COMPREHENSIVE INCOME:
NET EARNINGS		134,183		172,101		410,549		573,085
OTHER COMPREHENSIVE INCOME (LOSS)		(3,761)		(4,477)		6,969		(5,676)
COMPREHENSIVE INCOME		130,422		167,624		417,518		567,409
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST		820		(4,273)		(2,661)		(13,290)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$	131,242	$	163,351	$	414,857	$	554,119

See notes to consolidated condensed financial statements.

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)


(in thousands, except share and per share data)	Controlling Interest Shareholders’ Equity
			Additional				Accumulated Other
	Common		Paid-In		Retained		Comprehensive		Noncontrolling				Temporary
	Stock		Capital		Earnings		Earnings		Interest (NCI)		Total		Equity
Balance on December 31, 2022	$	61,618	$	294,029	$	2,217,410	$	(9,075)	$	32,841	$	2,596,823	$	6,880
Net earnings (loss)						126,069				(313)		125,756		(178)
Foreign currency translation adjustment								3,850		2,195		6,045		56
Unrealized gain on debt securities								151				151
Distributions to NCI										(4,859)		(4,859)
Other												—		43
Cash dividends - $0.25 per share - quarterly						(15,642)						(15,642)
Issuance of 10,140 shares under employee stock purchase plan		10		675								685
Issuance of 824,669 shares under stock grant programs		825		14,356		6						15,187
Issuance of 93,165 shares under deferred compensation plans		93		(93)								—
Repurchase of 450,597 shares		(450)				(34,818)						(35,268)
Expense associated with share-based compensation arrangements				9,598								9,598
Accrued expense under deferred compensation plans				7,165								7,165
Balance on April 1, 2023	$	62,096	$	325,730	$	2,293,025	$	(5,074)	$	29,864	$	2,705,641	$	6,801
Net earnings (loss)						150,761				56		150,817		(29)
Foreign currency translation adjustment								2,983		1,694		4,677
Unrealized gain on debt securities								(199)				(199)
Other				(427)								(427)
Cash dividends - $0.25 per share - quarterly						(15,507)						(15,507)
Issuance of 9,253 shares under employee stock purchase plan		9		754								763
Net forfeitures of 1,503 shares under stock grant programs		(1)		35								34
Issuance of 11,686 shares under deferred compensation plans		12		(12)								—
Repurchase of 250,000 shares		(251)				(19,965)						(20,216)
Expense associated with share-based compensation arrangements				8,201								8,201
Accrued expense under deferred compensation plans				1,213								1,213
Balance on July 1, 2023	$	61,865	$	335,494	$	2,408,314	$	(2,290)	$	31,614	$	2,834,997	$	6,772
Net earnings						134,035				19		134,054		129
Foreign currency translation adjustment								(2,619)		(685)		(3,304)		(283)
Unrealized loss on debt securities								(174)				(174)
Other				(150)						930		780		170
Distributions to NCI										(2,496)		(2,496)
Redeemable NCI												—
Cash dividends - $0.30 per share - quarterly						(18,574)						(18,574)
Issuance of 7,341 shares under employee stock purchase plans		7		632								639
Net forfeitures of 3,368 shares under stock grant programs		(3)		36		3						36
Issuance of 9,774 shares under deferred compensation plans		10		(10)								—
Repurchase of 66,215 shares		(66)				(6,526)						(6,592)
Expense associated with share-based compensation arrangements				8,156								8,156
Accrued expense under deferred compensation plans				1,241								1,241
Balance on September 30, 2023	$	61,813	$	345,399	$	2,517,252	$	(5,083)	$	29,382	$	2,948,763	$	6,788

See notes to consolidated condensed financial statements.

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY, CONTINUED

(Unaudited)


(in thousands, except share and per share data)	Controlling Interest Shareholders’ Equity
			Additional				Accumulated Other
	Common		Paid-In		Retained		Comprehensive		Noncontrolling				Temporary
	Stock		Capital		Earnings		Earnings		Interest (NCI)		Total		Equity
Balance on December 25, 2021	$	61,902	$	243,995	$	1,678,121	$	(5,405)	$	37,956	$	2,016,569	$	—
Net earnings						189,703				3,428		193,131
Foreign currency translation adjustment								2,930		949		3,879
Unrealized loss on debt securities								(695)				(695)
Distributions to NCI										(2,053)		(2,053)
Cash dividends - $0.20 per share - quarterly						(12,541)						(12,541)
Issuance of 9,734 shares under employee stock purchase plan		10		653								663
Issuance of 787,045 shares under stock grant programs		787		8,959								9,746
Issuance of 79,973 shares under deferred compensation plans		80		(80)								—
Repurchase of 44,442 shares		(45)				(3,499)						(3,544)
Expense associated with share-based compensation arrangements				6,883								6,883
Accrued expense under deferred compensation plans				6,134								6,134
Balance on March 26, 2022	$	62,734	$	266,544	$	1,851,784	$	(3,170)	$	40,280	$	2,218,172	$	—
Net earnings						203,118				4,735		207,853
Foreign currency translation adjustment								(3,660)		(95)		(3,755)
Unrealized loss on debt securities								(628)				(628)

UFP INDUSTRIES INC [UFPI] Filings
10-Q	[2023-11-08]
10-Q	[2023-08-09]
10-Q	[2023-05-10]
10-K	[2023-03-01]
10-Q	[2022-11-03]
10-Q	[2022-08-03]
10-Q	[2022-05-04]
10-K	[2022-02-23]
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-Q	[2021-05-05]
10-K	[2021-03-03]
10-Q	[2020-10-28]
10-Q	[2020-07-29]
10-Q	[2020-05-06]
10-K	[2020-02-26]
10-Q	[2019-10-30]
10-Q	[2019-08-07]
10-Q	[2019-05-01]
10-K	[2019-02-27]
10-Q	[2018-11-07]
10-Q	[2018-08-01]
10-Q	[2018-05-02]
10-K	[2018-02-28]
10-Q	[2017-11-01]
10-Q	[2017-08-02]
10-Q	[2017-05-03]
10-K	[2017-03-01]
10-Q	[2016-10-27]
10-Q	[2016-07-27]
10-Q	[2016-04-27]
10-K	[2016-02-24]
10-Q	[2015-10-30]
10-Q	[2015-07-29]
10-Q	[2015-05-01]
10-K	[2015-02-25]
10-Q	[2014-10-29]
10-Q	[2014-07-30]
10-Q	[2014-04-30]
10-K	[2014-02-26]
10-Q	[2013-10-30]
10-Q	[2013-08-01]
10-Q	[2013-04-30]
10-K	[2013-02-26]
10-Q	[2012-10-30]
10-Q	[2012-08-08]
10-Q	[2012-04-30]
10-K	[2012-03-14]