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UFP Industries Announces Second Quarter Results

Net sales exceed $2 billion, diluted EPS of $2.36

UFP Industries, Inc. (Nasdaq: UFPI) today announced second quarter 2023 results including net sales of $2.04 billion, net earnings attributable to controlling interest of $151 million, and earnings per diluted share of $2.36.

“I want to thank the hard-working employees of UFP Industries for delivering another strong quarter. Their focus on innovation, efficiencies, and value-added solutions has helped us improve our gross margins, even as lower pricing and volume resulted in decreases in our top- and bottom-line results,” said Chairman and CEO Matt Missad. “The positive changes in our business mix and operating structure are producing better performance when compared to previous downward cycles in our business. Our strong cash-flow generation and balance sheet allow us to continue to invest in operational improvements and growing the business through new products and acquisitions, all while returning value to our shareholders. On July 26, 2023, the Board approved a 20 percent increase in the quarterly cash dividend to $0.30 per share and increased the share repurchase authorization to $200 million.”

Second Quarter 2023 Highlights (comparisons on a year-over-year basis):

  • Net sales of $2.04 billion decreased 30 percent due to a 22 percent decrease in prices and an 8 percent decrease in organic unit sales.
  • New product sales of $184 million decreased 9 percent, largely due to lower lumber prices that the company passed on to customers. New product sales as a percent of total sales rose to 9 percent from 7 percent in 2022.
  • Diluted EPS of $2.36 represents a 27 percent decrease from last year.
  • Adjusted EBITDA of $234 million decreased 27 percent; adjusted EBITDA margin rose to 11.5 percent from 11 percent in 2022.

Capital Allocation

UFP Industries maintains a strong balance sheet, with $424.9 million in net surplus cash (surplus cash less interest-bearing debt and cash overdraft) on July 1, 2023, compared to $190.7 million in net debt at the end of the second quarter of 2022. The company had approximately $2 billion of liquidity as of July 1, 2023. The company’s return-focused approach to capital allocation includes the following:

  • Acquisitions. The company continues to seek acquisitions in core businesses that generate long-term growth and margin improvement, enhance its capabilities, and create incremental value for customers and shareholders.
  • Capital expenditures. The company lowered its target for capital investments to $175-200 million in 2023 due to longer lead times required for most equipment and rolling stock. The company plans to double the production capacity of the popular Deckorators mineral-based composite (MBC) decking by investing approximately $31 million in upgrades.
  • Dividend payments. On July 26, 2023, the Board of Directors for UFP Industries approved a quarterly dividend payment of $0.30 per share, a 20 percent increase over the dividend paid in the first quarter of 2023. The dividend is payable on September 15, 2023, to shareholders of record on September 1, 2023.
  • Share repurchases. The company repurchased 700,597 shares during the first half of 2023 at an average share price of $79.20 (a total of $55.5 million). At their July 26 meeting, the Board of Directors authorized up to $200 million for share repurchases through July 31, 2024.

By business segment, the company reported the following second-quarter 2023 results:

UFP Retail Solutions

Net sales of $920 million, down 18 percent compared to the second quarter of 2022, attributable to an 18 percent decline in selling prices due to the pricing decreases in the lumber market. While below our target level, gross profit of $121 million improved 65 percent compared to the second quarter of 2022 and gross profit margin improved to 13.2 percent from 6.5 percent, primarily due to increased sales of new Deckorators products and the impact of products sold with a variable price such as treated lumber. These variable-priced products benefited from a more stabilized lumber market compared to 2022, when a significant decrease in lumber prices during the second quarter adversely impacted gross profit.

UFP Packaging

Net sales of $488 million, down 28 percent compared to the second quarter of 2022, due to a 21 percent decrease in selling prices, a 9 percent decline in organic unit sales, and a 2 percent increase in sales from acquisitions. Gross profit was $118.2 million, down 27 percent, due to normalizing market pricing and a decline in volume that is in line with market conditions. Gross profit margin remained mostly unchanged at 24 percent due to the segment’s focus on value-added sales and new products. Value-added sales increased to 78 percent of total net sales compared to 71 percent for the second quarter of 2022. New product sales as a percent of total net sales increased to 14.9 percent from 10.6 percent during the same period of 2022.

UFP Construction

Net sales of $550 million, down 44 percent compared to the second quarter of 2022, due to a 26 percent decrease in selling prices and an 18 percent decrease in organic unit sales. Gross profit was $137.2 million, down 40 percent, largely due to normalizing market pricing and a decrease in volume as a result of a decline in housing starts and industry production of manufactured homes. Gross profit margin improved to 25 percent from 23 percent in 2022.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 4:30 p.m. ET on Wednesday, August 2, 2023. The call will be hosted by Chairman and CEO Matthew J. Missad and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at www.ufpinvestor.com/news-filings-reports. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #403 on the Fortune 500 and #149 on Industry Week’s list of America’s Largest Manufacturers. For more about UFP Industries, 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, events, or assumptions 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 economic 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

Non-GAAP Financial Information

This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA, a non-GAAP financial measure, in order to evaluate historical and ongoing operations. Management believes that this non-GAAP financial measure is useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA is intended to supplement and should be read together with the financial results. Adjusted EBITDA should not be considered an alternative or substitute for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measure.

Net earnings

Net earnings refers to net earnings attributable to controlling interest unless specifically noted.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED

JUNE 2023/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

Year to Date

(In thousands, except per share data)

 

2023

2022

2023

2022

NET SALES

 

$

2,043,918

 

 

100.0

 

%

$

2,900,874

 

 

100.0

 

%

$

3,866,394

 

 

100.0

 

%

$

5,390,187

 

 

100.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF GOODS SOLD

 

 

1,643,851

 

 

80.4

 

 

 

2,397,422

 

 

82.6

 

 

 

3,107,998

 

 

80.4

 

 

 

4,408,372

 

 

81.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

400,067

 

 

19.6

 

 

 

503,452

 

 

17.4

 

 

 

758,396

 

 

19.6

 

 

 

981,815

 

 

18.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

204,703

 

 

10.0

 

 

 

214,538

 

 

7.4

 

 

 

399,386

 

 

10.3

 

 

 

434,688

 

 

8.1

 

 

OTHER LOSSES (GAINS), NET

 

 

1,867

 

 

0.1

 

 

 

3,348

 

 

0.1

 

 

 

3,805

 

 

0.1

 

 

 

2,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS FROM OPERATIONS

 

 

193,497

 

 

9.5

 

 

 

285,566

 

 

9.8

 

 

 

355,205

 

 

9.2

 

 

 

544,591

 

 

10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST AND OTHER

 

 

(4,025

)

 

(0.2

)

 

 

8,566

 

 

0.3

 

 

 

(6,866

)

 

(0.2

)

 

 

13,476

 

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS BEFORE INCOME TAXES

 

 

197,522

 

 

9.7

 

 

 

277,000

 

 

9.5

 

 

 

362,071

 

 

9.4

 

 

 

531,115

 

 

9.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAXES

 

 

46,734

 

 

2.3

 

 

 

69,147

 

 

2.4

 

 

 

85,705

 

 

2.2

 

 

 

130,131

 

 

2.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS

 

 

150,788

 

 

7.4

 

 

 

207,853

 

 

7.2

 

 

 

276,366

 

 

7.1

 

 

 

400,984

 

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS NET LOSS (EARNINGS) ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

 

(27

)

 

 

 

 

(4,735

)

 

(0.2

)

 

 

464

 

 

 

 

 

(8,163

)

 

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST

 

$

150,761

 

 

7.4

 

 

$

203,118

 

 

7.0

 

 

$

276,830

 

 

7.2

 

 

$

392,821

 

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - BASIC

 

$

2.40

 

 

 

 

$

3.24

 

 

 

 

$

4.41

 

 

 

 

$

6.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - DILUTED

 

$

2.36

 

 

 

 

$

3.23

 

 

 

 

$

4.35

 

 

 

 

$

6.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

155,266

 

 

 

 

$

203,470

 

 

 

 

$

287,096

 

 

 

 

$

399,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

 

(1,721

)

 

 

 

 

(4,640

)

 

 

 

 

(3,481

)

 

 

 

 

(9,017

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST

 

$

153,545

 

 

 

 

$

198,830

 

 

 

 

$

283,615

 

 

 

 

$

390,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED

JUNE 2023/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

919,998

 

 

$

488,100

 

 

$

550,464

 

 

$

86,224

 

 

$

(868

)

 

$

2,043,918

 

COST OF GOODS SOLD

 

 

799,017

 

 

 

369,865

 

 

 

413,260

 

 

64,128

 

 

(2,419

)

 

 

1,643,851

GROSS PROFIT

 

 

120,981

 

 

 

118,235

 

 

 

137,204

 

 

 

22,096

 

 

 

1,551

 

 

 

400,067

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

60,855

 

 

 

61,377

 

 

 

74,083

 

 

 

13,943

 

 

 

(5,555

)

 

 

204,703

 

OTHER

 

 

(54

)

 

 

(6

)

 

 

1,162

 

 

 

1,336

 

 

 

(571

)

 

 

1,867

 

EARNINGS FROM OPERATIONS

 

$

60,180

 

 

$

56,864

 

 

$

61,959

 

 

$

6,817

 

 

$

7,677

 

 

$

193,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

1,121,440

 

 

$

676,333

 

 

$

975,376

 

 

$

124,416

 

 

$

3,309

 

 

$

2,900,874

 

COST OF GOODS SOLD

 

 

1,048,260

 

 

514,216

 

 

748,060

 

 

 

83,336

 

 

3,550

 

 

 

2,397,422

GROSS PROFIT

 

 

73,180

 

 

 

162,117

 

 

 

227,316

 

 

 

41,080

 

 

 

(241

)

 

 

503,452

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

48,387

 

 

 

67,235

 

 

 

94,638

 

 

 

16,356

 

 

 

(12,078

)

 

 

214,538

 

OTHER

 

 

266

 

 

 

672

 

 

 

(154

)

 

 

1,976

 

 

 

588

 

 

 

3,348

 

EARNINGS FROM OPERATIONS

 

$

24,527

 

 

$

94,210

 

 

$

132,832

 

 

$

22,748

 

 

$

11,249

 

 

$

285,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

1,669,575

 

 

$

974,661

 

 

$

1,066,057

 

 

$

153,736

 

 

$

2,365

 

 

$

3,866,394

 

COST OF GOODS SOLD

 

 

1,454,156

 

 

 

735,528

 

 

 

807,194

 

 

112,004

 

 

(884

)

 

 

3,107,998

GROSS PROFIT

 

 

215,419

 

 

 

239,133

 

 

 

258,863

 

 

 

41,732

 

 

 

3,249

 

 

 

758,396

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

114,210

 

 

 

127,629

 

 

 

141,421

 

 

 

27,465

 

 

 

(11,339

)

 

 

399,386

 

OTHER

 

 

(27

)

 

 

(92

)

 

 

1,235

 

 

 

3,416

 

 

 

(727

)

 

 

3,805

 

EARNINGS FROM OPERATIONS

 

$

101,236

 

 

$

111,596

 

 

$

116,207

 

 

$

10,851

 

 

$

15,315

 

 

$

355,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

2,114,672

 

 

$

1,287,702

 

 

$

1,761,847

 

 

$

219,983

 

 

$

5,983

 

 

$

5,390,187

 

COST OF GOODS SOLD

 

 

1,907,155

 

 

976,031

 

 

1,373,119

 

 

147,360

 

 

4,707

 

 

 

4,408,372

GROSS PROFIT

 

 

207,517

 

 

 

311,671

 

 

 

388,728

 

 

 

72,623

 

 

 

1,276

 

 

 

981,815

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

111,055

 

 

 

134,466

 

 

 

176,975

 

 

 

32,981

 

 

 

(20,789

)

 

 

434,688

 

OTHER

 

 

538

 

 

 

604

 

 

 

103

 

 

 

2,079

 

 

 

(788

)

 

 

2,536

 

EARNINGS FROM OPERATIONS

 

$

95,924

 

 

$

176,601

 

 

$

211,650

 

 

$

37,563

 

 

$

22,853

 

 

$

544,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED

JUNE 2023/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

45,924

 

 

$

43,090

 

 

$

47,300

 

 

$

6,932

 

 

$

7,542

 

 

$

150,788

 

Interest and other

 

 

23

 

 

 

419

 

 

 

(1

)

 

 

(2,263

)

 

 

(2,203

)

 

 

(4,025

)

Income taxes

 

 

14,233

 

 

 

13,355

 

 

 

14,660

 

 

 

2,148

 

 

 

2,338

 

 

 

46,734

 

Expenses associated with share-based compensation arrangements

 

 

1,315

 

 

 

1,703

 

 

 

1,686

 

 

 

225

 

 

 

3,309

 

 

 

8,238

 

Net (gain) loss on disposition and impairment of assets

 

 

(10

)

 

 

(7

)

 

 

16

 

 

 

70

 

 

 

(87

)

 

 

(18

)

Depreciation expense

 

 

6,029

 

 

 

7,995

 

 

 

4,634

 

 

 

929

 

 

 

7,425

 

 

 

27,012

 

Amortization of intangibles

 

 

1,277

 

 

 

2,236

 

 

 

702

 

 

 

751

 

 

 

396

 

 

 

5,362

 

Adjusted EBITDA

 

$

68,791

 

 

$

68,791

 

 

$

68,997

 

 

$

8,792

 

 

$

18,720

 

 

$

234,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

7.5

%

 

 

14.1

%

 

 

12.5

%

 

 

10.2

%

 

 

(2156.7

)%

 

 

11.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

18,146

 

 

$

69,949

 

 

$

99,890

 

 

$

14,233

 

 

$

5,635

 

 

$

207,853

 

Interest and other

 

 

17

 

 

 

1,016

 

 

 

 

 

 

3,789

 

 

 

3,744

 

 

 

8,566

 

Income taxes

 

 

6,364

 

 

 

23,245

 

 

 

32,942

 

 

 

4,726

 

 

 

1,870

 

 

 

69,147

 

Expenses associated with share-based compensation arrangements

 

 

1,061

 

 

 

1,236

 

 

 

1,143

 

 

 

99

 

 

 

2,072

 

 

 

5,611

 

Net loss (gain) on disposition and impairment of assets

 

 

226

 

 

 

672

 

 

 

(13

)

 

 

(5

)

 

 

192

 

 

 

1,072

 

Depreciation expense

 

 

4,556

 

 

 

6,759

 

 

 

3,354

 

 

 

715

 

 

 

6,808

 

 

 

22,192

 

Amortization of intangibles

 

 

916

 

 

 

1,701

 

 

 

820

 

 

 

503

 

 

 

128

 

 

 

4,068

 

Adjusted EBITDA

 

$

31,286

 

 

$

104,578

 

 

$

138,136

 

 

$

24,060

 

 

$

20,449

 

 

$

318,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

2.8

%

 

 

15.5

%

 

 

14.2

%

 

 

19.3

%

 

 

618.0

%

 

 

11.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

77,240

 

 

$

84,415

 

 

$

88,704

 

 

$

11,620

 

 

$

14,387

 

 

$

276,366

 

Interest and other

 

 

44

 

 

 

1,002

 

 

 

(6

)

 

 

(4,372

)

 

 

(3,534

)

 

 

(6,866

)

Income taxes

 

 

23,952

 

 

 

26,179

 

 

 

27,509

 

 

 

3,603

 

 

 

4,462

 

 

 

85,705

 

Expenses associated with share-based compensation arrangements

 

 

2,930

 

 

 

3,799

 

 

 

3,807

 

 

 

503

 

 

 

6,836

 

 

 

17,875

 

Net loss (gain) on disposition and impairment of assets

 

 

26

 

 

 

(93

)

 

 

(31

)

 

 

60

 

 

 

(144

)

 

 

(182

)

Depreciation expense

 

 

11,647

 

 

 

15,677

 

 

 

9,262

 

 

 

1,544

 

 

 

14,656

 

 

 

52,786

 

Amortization of intangibles

 

 

2,332

 

 

 

4,482

 

 

 

1,499

 

 

 

1,283

 

 

 

775

 

 

 

10,371

 

Adjusted EBITDA

 

$

118,171

 

 

$

135,461

 

 

$

130,744

 

 

$

14,241

 

 

$

37,438

 

 

$

436,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

7.1

%

 

 

13.9

%

 

 

12.3

%

 

 

9.3

%

 

 

1583.0

%

 

 

11.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

72,392

 

 

$

132,177

 

 

$

159,793

 

 

$

24,844

 

 

$

11,778

 

 

$

400,984

 

Interest and other

 

 

40

 

 

 

1,528

 

 

 

 

 

 

4,643

 

 

 

7,265

 

 

 

13,476

 

Income taxes

 

 

23,492

 

 

 

42,896

 

 

 

51,857

 

 

 

8,076

 

 

 

3,810

 

 

 

130,131

 

Expenses associated with share-based compensation arrangements

 

 

2,282

 

 

 

2,644

 

 

 

2,607

 

 

 

323

 

 

 

4,686

 

 

 

12,542

 

Net loss (gain) on disposition and impairment of assets

 

 

531

 

 

 

607

 

 

 

(24

)

 

 

5

 

 

 

(353

)

 

 

766

 

Depreciation expense

 

 

8,992

 

 

 

13,566

 

 

 

6,788

 

 

 

1,287

 

 

 

13,401

 

 

 

44,034

 

Amortization of intangibles

 

 

1,799

 

 

 

3,416

 

 

 

1,684

 

 

 

1,585

 

 

 

256

 

 

 

8,740

 

Adjusted EBITDA

 

$

109,528

 

 

$

196,834

 

 

$

222,705

 

 

$

40,763

 

 

$

40,843

 

 

$

610,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

5.2

%

 

 

15.3

%

 

 

12.6

%

 

 

18.5

%

 

 

682.7

%

 

 

11.3

%

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

JUNE 2023/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

2023

2022

 

LIABILITIES AND EQUITY

 

2023

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

702,148

 

$

138,071

 

 

Cash Overdraft

 

$

 

$

11,926

 

Restricted cash

 

 

761

 

 

729

 

Accounts payable

 

 

264,408

 

 

386,833

 

Investments

 

 

38,459

 

 

35,475

 

 

Accrued liabilities and other

 

 

289,211

 

 

384,738

 

Accounts receivable

 

 

802,300

 

 

1,046,543

 

 

Current portion of debt

 

 

2,385

 

 

40,496

 

Inventories

 

 

821,187

 

 

1,106,302

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

50,203

 

 

49,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

2,415,058

 

 

2,376,444

 

 

TOTAL CURRENT LIABILITIES

 

 

556,004

 

 

823,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

228,929

 

 

163,464

 

 

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

 

 

274,821

 

 

276,315

 

INTANGIBLE ASSETS, NET

 

 

481,942

 

 

445,751

 

 

OTHER LIABILITIES

 

 

171,349

 

 

185,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TEMPORARY EQUITY

 

 

6,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

 

718,014

 

 

625,164

 

 

SHAREHOLDERS' EQUITY

 

 

2,834,997

 

 

2,325,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,843,943

 

$

3,610,823

 

 

TOTAL LIABILITIES AND EQUITY

 

$

3,843,943

 

$

3,610,823

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED

JUNE 2023/2022

 

 

 

 

 

 

 

 

(In thousands)

 

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net earnings

 

$

276,366

 

 

$

400,984

 

 

Adjustments to reconcile net earnings to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

52,786

 

 

 

44,034

 

 

Amortization of intangibles

 

 

10,371

 

 

 

8,740

 

 

Expense associated with share-based and grant compensation arrangements

 

 

17,875

 

 

 

12,542

 

 

Deferred income taxes (credit)

 

 

(319

)

 

 

179

 

 

Unrealized (gain) loss on investment and other

 

 

(1,291

)

 

 

6,181

 

 

Equity in loss of investee

 

 

1,005

 

 

 

1,532

 

 

Net (gain) loss on sale and disposition of assets

 

 

(182

)

 

 

766

 

 

Changes in:

 

 

 

 

 

 

 

Accounts receivable

 

 

(183,717

)

 

 

(304,715

)

 

Inventories

 

 

154,413

 

 

 

(134,653

)

 

Accounts payable and cash overdraft

 

 

56,899

 

 

 

56,120

 

 

Accrued liabilities and other

 

 

(63,142

)

 

 

(1,313

)

 

NET CASH FROM OPERATING ACTIVITIES

 

 

321,064

 

 

 

90,397

 

 

 

 

 

 

 

 

 

 

CASH FLOWS USED IN INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(84,981

)

 

 

(71,675

)

 

Proceeds from sale of property, plant and equipment

 

 

789

 

 

 

2,029

 

 

Acquisitions, net of cash received and purchase of equity method investment

 

 

67

 

 

 

(39,343

)

 

Purchases of investments

 

 

(14,747

)

 

 

(15,166

)

 

Proceeds from sale of investments

 

 

11,486

 

 

 

8,221

 

 

Other

 

 

2,076

 

 

 

(2,829

)

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(85,310

)

 

 

(118,763

)

 

 

 

 

 

 

 

 

 

CASH FLOWS USED IN FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

11,026

 

 

 

570,700

 

 

Repayments under revolving credit facilities

 

 

(11,869

)

 

 

(571,075

)

 

Repayments of debt

 

 

(29

)

 

 

(2,485

)

 

Contingent consideration payments and other

 

 

(6,179

)

 

 

(2,553

)

 

Proceeds from issuance of common stock

 

 

1,448

 

 

 

1,457

 

 

Dividends paid to shareholders

 

 

(31,149

)

 

 

(28,015

)

 

Distributions to noncontrolling interest

 

 

(4,859

)

 

 

(2,053

)

 

Repurchase of common stock

 

 

(55,484

)

 

 

(90,805

)

 

Other

 

 

48

 

 

 

(184

)

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(97,047

)

 

 

(125,013

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

4,579

 

 

 

956

 

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

143,286

 

 

 

(152,423

)

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

559,623

 

 

 

291,223

 

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

702,909

 

 

$

138,800

 

 

 

 

 

 

 

 

 

 

Reconciliation of cash and cash equivalents and restricted cash:

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

$

559,397

 

 

$

286,662

 

 

Restricted cash, beginning of period

 

 

226

 

 

 

4,561

 

 

All cash and cash equivalents, beginning of period

 

$

559,623

 

 

$

291,223

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

702,148

 

 

$

138,071

 

 

Restricted cash, end of period

 

 

761

 

 

 

729

 

 

All cash and cash equivalents, end of period

 

$

702,909

 

 

$

138,800

 

 

 

 

 

 

 

 

 

 

 

Contacts

Dick Gauthier

VP of Investor Relations

(616) 365-1555

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