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UFP Industries Announces Third Quarter Results

Operating Margins Remain Historically Strong

UFP Industries, Inc. (Nasdaq: UFPI) today announced third quarter 2023 results including net sales of $1.8 billion, net earnings attributable to controlling interests of $134 million, and earnings per diluted share of $2.10.

“This quarter once again demonstrated that our balanced business model, management structure, and focus on value-added products have produced structural improvements in our operating margins that have normalized above pre-pandemic levels,” said Chairman and CEO Matthew J. Missad. “We are well-positioned for success and will continue to invest our cash surplus and robust cash flow to grow our business and generate high returns on capital.”

Missad added, “Our ability to generate cash allows us to maintain a balanced approach to capital allocation, as we invest in new products and drive operational improvements through technology and automation, while providing meaningful returns for shareholders. The UFP team has enhanced our strong culture of hard work and proven results by developing an impressive adaptability to internal change and an ability to manage through challenging markets.”

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

  • Net sales of $1.83 billion decreased 21 percent due to a 12 percent decrease in prices and a 9 percent decrease in organic unit sales.
  • New product sales as a percent of total sales rose to 9.7 percent from 7.8 percent in 2022. The company evaluates new products annually and sunsets (but continues to sell) those that no longer meet the classification of “new”; its goal is to achieve a ratio of new product sales to total sales of 10 percent.
  • Diluted EPS of $2.10 represents a 21 percent decrease from last year’s record quarter.
  • Adjusted EBITDA1 of $208 million decreased 24 percent while adjusted EBITDA margin1 declined 40 basis points to 11.4 percent, which exceeded the company’s minimum EBITDA margin target.

Capital Allocation

UFP Industries maintains a strong balance sheet, with $682.4 million in net surplus cash (surplus cash less interest-bearing debt and cash overdraft) on September 30, 2023, compared to $128 million in net surplus cash at the end of the third quarter of 2022. The company had approximately $2.2 billion of liquidity as of September 30, 2023. The company’s return-focused approach to capital allocation includes the following:

- Acquisitions. UFP Industries maintains a healthy pipeline of acquisition targets in core businesses that are intended to generate long-term growth and margin improvement, expand its breadth of products and international reach, and create incremental value for customers and shareholders. On September 20, 2023, the company acquired a controlling interest in Palets Suller, a leading manufacturer of machine-built pallets in Spain, providing a strong foundation to grow and expand its value-added business in one of the largest ceramic tile manufacturing export markets in the world.

- Capital expenditures. The company continues to target capital investments of $175-200 million in 2023 while focusing on expanding its capacity to produce new and value-added products, achieving efficiencies through automation and enhancing the work environment of its facilities for employees.

- Dividend payments. On October 24, 2023, the Board of Directors for UFP Industries approved a quarterly dividend payment of $0.30 per share. The dividend is payable on December 15, 2023, to shareholders of record on December 1, 2023.

- Share repurchases. At their July 26, 2023, meeting, the Board of Directors authorized up to $200 million for share repurchases through July 31, 2024. Since July 26, 2023, the company has repurchased 212,000 shares at an average price of $97.87 and has $179 million left remaining in its authorization. The company repurchased 766,812 shares from January 1, 2023, through September 30, 2023, at an average share price of $80.95 (a total of $62.1 million).

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

UFP Retail Solutions

Net sales of $711 million, down 16 percent compared to the third quarter of 2022, attributable to a 9 percent decline in selling prices and a 7 percent decline in organic unit sales. Adjusted EBITDA of $53.8 million improved 50 percent compared to the third quarter of 2022, and adjusted EBITDA profit margin improved to 7.6 percent from 4.2 percent during the third quarter of 2022. This improvement is primarily due to variable-priced products such as ProWood treated lumber, which benefited from a more stable lumber market than in 2022, when margins were adversely impacted by a significant decrease in lumber prices in the third quarter of 2022.

UFP Packaging

Net sales of $450 million, down 23 percent compared to the third quarter of 2022, due to a 16 percent decrease in selling prices, a 9 percent decline in organic unit sales, and a 2 percent increase in sales from acquisitions. Adjusted EBITDA was $53.7 million, down 40 percent, due to normalizing market pricing and a decline in volume that is in line with market conditions. Adjusted EBITDA margin decreased to 11.9 percent from 15.4 percent due to competitive price pressure and lower volume. Value-added sales increased to 76 percent of total net sales compared to 74 percent for the third quarter of 2022. New product sales as a percent of total net sales increased to 16.1 percent from 11.5 percent during the same period of 2022.

UFP Construction

Net sales of $584 million, down 25 percent compared to the third quarter of 2022, due to a 12 percent decrease in selling prices and a 13 percent decrease in organic unit sales. Adjusted EBITDA was $76.9 million, down 34 percent, largely due to more normalized market pricing and to a decrease in volume attributable to the decline in housing starts and in the production of manufactured homes. Adjusted EBITDA margin declined to 13.2 percent from 14.9 percent during the same period of 2022.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 9 a.m. ET on Tuesday, October 31, 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, Inc. 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.

1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 2023/2022

 

 

 

Quarter Period

Year to Date

(In thousands, except per share data)

 

2023

 

2022

 

2023

 

2022

 

NET SALES

 

$

1,827,637

 

 

100.0

%

$

2,322,855

 

 

100.0

%

$

5,694,031

 

 

100.0

%

$

7,713,042

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF GOODS SOLD

 

 

1,463,237

 

 

80.1

 

 

 

1,872,679

 

 

80.6

 

 

 

4,571,235

 

 

80.3

 

 

 

6,281,051

 

 

81.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

364,400

 

 

19.9

 

 

 

450,176

 

 

19.4

 

 

 

1,122,796

 

 

19.7

 

 

 

1,431,991

 

 

18.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

195,649

 

 

10.7

 

 

 

214,327

 

 

9.2

 

 

 

595,035

 

 

10.5

 

 

 

649,015

 

 

8.4

 

 

OTHER LOSSES (GAINS), NET

 

 

1,419

 

 

0.1

 

 

 

(1,195

)

 

(0.1

)

 

 

5,224

 

 

0.1

 

 

 

1,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS FROM OPERATIONS

 

 

167,332

 

 

9.2

 

 

 

237,044

 

 

10.2

 

 

 

522,537

 

 

9.2

 

 

 

781,635

 

 

10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST AND OTHER

 

 

(6,177

)

 

(0.3

)

 

 

6,382

 

 

0.3

 

 

 

(13,043

)

 

(0.2

)

 

 

19,858

 

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS BEFORE INCOME TAXES

 

 

173,509

 

 

9.5

 

 

 

230,662

 

 

9.9

 

 

 

535,580

 

 

9.4

 

 

 

761,777

 

 

9.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAXES

 

 

39,326

 

 

2.2

 

 

 

58,561

 

 

2.5

 

 

 

125,031

 

 

2.2

 

 

 

188,692

 

 

2.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS

 

 

134,183

 

 

7.3

 

 

 

172,101

 

 

7.4

 

 

 

410,549

 

 

7.2

 

 

 

573,085

 

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS NET LOSS (EARNINGS) ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

 

(148

)

 

 

 

 

(4,860

)

 

(0.2

)

 

 

316

 

 

 

 

 

(13,023

)

 

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST

 

$

134,035

 

 

7.3

 

 

$

167,241

 

 

7.2

 

 

$

410,865

 

 

7.2

 

 

$

560,062

 

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - BASIC

 

$

2.14

 

 

 

 

$

2.68

 

 

 

 

$

6.55

 

 

 

 

$

8.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - DILUTED

 

$

2.10

 

 

 

 

$

2.66

 

 

 

 

$

6.45

 

 

 

 

$

8.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

130,422

 

 

 

 

$

167,624

 

 

 

 

$

417,518

 

 

 

 

$

567,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 2023/2022

 

 

 

Quarter Period

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

NET SALES

 

$

711,381

 

$

449,885

 

$

583,960

 

 

$

81,426

 

$

985

 

 

$

1,827,637

COST OF GOODS SOLD

 

 

610,000

 

 

355,924

 

 

439,152

 

 

 

58,814

 

 

(653

)

 

 

1,463,237

GROSS PROFIT

 

 

101,381

 

 

93,961

 

 

144,808

 

 

 

22,612

 

 

1,638

 

 

 

364,400

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

56,001

 

 

52,524

 

 

75,293

 

 

 

14,937

 

 

(3,106

)

 

 

195,649

OTHER

 

 

31

 

 

8

 

 

(45

)

 

 

1,007

 

 

418

 

 

 

1,419

EARNINGS FROM OPERATIONS

 

$

45,349

 

$

41,429

 

$

69,560

 

 

$

6,668

 

$

4,326

 

 

$

167,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

 

All Other

 

Corporate

 

 

Total

NET SALES

 

$

845,304

 

$

584,808

 

$

777,126

 

 

$

112,203

 

$

3,414

 

 

$

2,322,855

COST OF GOODS SOLD

 

 

767,841

 

 

440,975

 

 

577,552

 

 

 

82,740

 

 

3,571

 

 

 

1,872,679

GROSS PROFIT

 

 

77,463

 

 

143,833

 

 

199,574

 

 

 

29,463

 

 

(157)

 

 

 

450,176

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

48,435

 

 

66,521

 

 

89,455

 

 

 

16,752

 

 

(6,836)

 

 

 

214,327

OTHER

 

 

96

 

 

14

 

 

(265)

 

 

 

(994)

 

 

(46)

 

 

 

(1,195)

EARNINGS FROM OPERATIONS

 

$

28,932

 

$

77,298

 

$

110,384

 

 

$

13,705

 

$

6,725

 

 

$

237,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

 

All Other

 

Corporate

 

 

Total

NET SALES

 

$

2,380,956

 

$

1,424,546

 

$

1,650,017

 

 

$

235,162

 

$

3,350

 

 

$

5,694,031

COST OF GOODS SOLD

 

 

2,064,156

 

 

1,091,452

 

 

1,246,346

 

 

 

170,818

 

 

(1,537)

 

 

 

4,571,235

GROSS PROFIT

 

 

316,800

 

 

333,094

 

 

403,671

 

 

 

64,344

 

 

4,887

 

 

 

1,122,796

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

170,211

 

 

180,153

 

 

216,714

 

 

 

42,402

 

 

(14,445)

 

 

 

595,035

OTHER

 

 

4

 

 

(84)

 

 

1,190

 

 

 

4,423

 

 

(309)

 

 

 

5,224

EARNINGS FROM OPERATIONS

 

$

146,585

 

$

153,025

 

$

185,767

 

 

$

17,519

 

$

19,641

 

 

$

522,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

 

All Other

 

Corporate

 

 

Total

NET SALES

 

$

2,959,976

 

$

1,872,510

 

$

2,538,973

 

 

$

332,186

 

$

9,397

 

 

$

7,713,042

COST OF GOODS SOLD

 

 

2,674,996

 

 

1,417,006

 

 

1,950,671

 

 

 

230,100

 

 

8,278

 

 

 

6,281,051

GROSS PROFIT

 

 

284,980

 

 

455,504

 

 

588,302

 

 

 

102,086

 

 

1,119

 

 

 

1,431,991

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

 

159,490

 

 

200,987

 

 

266,430

 

 

 

49,733

 

 

(27,625)

 

 

 

649,015

OTHER

 

 

634

 

 

618

 

 

(162)

 

 

 

1,085

 

 

(834)

 

 

 

1,341

EARNINGS FROM OPERATIONS

 

$

124,856

 

$

253,899

 

$

322,034

 

 

$

51,268

 

$

29,578

 

 

$

781,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 2023/2022

 

 

 

Quarter Period

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

35,046

 

 

$

32,031

 

 

$

53,795

 

 

$

5,237

 

 

$

8,074

 

 

$

134,183

 

Interest and other

 

 

32

 

 

 

10

 

 

 

(1

)

 

 

(104

)

 

 

(6,114

)

 

 

(6,177

)

Income taxes

 

 

10,271

 

 

 

9,388

 

 

 

15,766

 

 

 

1,535

 

 

 

2,366

 

 

 

39,326

 

Expenses associated with share-based compensation arrangements

 

 

1,314

 

 

 

1,686

 

 

 

1,685

 

 

 

184

 

 

 

3,324

 

 

 

8,193

 

Net loss (gain) on disposition and impairment of assets

 

 

35

 

 

 

8

 

 

 

(14

)

 

 

(200

)

 

 

(112

)

 

 

(283

)

Depreciation expense

 

 

5,943

 

 

 

8,361

 

 

 

4,930

 

 

 

930

 

 

 

7,482

 

 

 

27,646

 

Amortization of intangibles

 

 

1,133

 

 

 

2,175

 

 

 

703

 

 

 

563

 

 

 

380

 

 

 

4,954

 

Adjusted EBITDA

 

$

53,774

 

 

$

53,659

 

 

$

76,864

 

 

$

8,145

 

 

$

15,400

 

 

$

207,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

7.6

%

 

 

11.9

%

 

 

13.2

%

 

 

10.0

%

 

 

1563.5

%

 

 

11.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Period

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

21,496

 

 

$

56,777

 

 

$

82,477

 

 

$

9,292

 

 

$

2,059

 

 

$

172,101

 

Interest and other

 

 

16

 

 

 

1,202

 

 

 

(4

)

 

 

1,212

 

 

 

3,956

 

 

 

6,382

 

Income taxes

 

 

7,420

 

 

 

19,319

 

 

 

27,911

 

 

 

3,201

 

 

 

710

 

 

 

58,561

 

Expenses associated with share-based compensation arrangements

 

 

1,041

 

 

 

1,198

 

 

 

1,090

 

 

 

143

 

 

 

3,965

 

 

 

7,437

 

Net loss (gain) on disposition and impairment of assets

 

 

86

 

 

 

13

 

 

 

86

 

 

 

 

 

 

(599

)

 

 

(414

)

Depreciation expense

 

 

4,821

 

 

 

8,931

 

 

 

3,313

 

 

 

741

 

 

 

7,041

 

 

 

24,847

 

Amortization of intangibles

 

 

943

 

 

 

2,357

 

 

 

797

 

 

 

482

 

 

 

129

 

 

 

4,708

 

Adjusted EBITDA

 

$

35,823

 

 

$

89,797

 

 

$

115,670

 

 

$

15,071

 

 

$

17,261

 

 

$

273,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

4.2

%

 

 

15.4

%

 

 

14.9

%

 

 

13.4

%

 

 

505.6

%

 

 

11.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2023

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

112,286

 

 

$

116,446

 

 

$

142,499

 

 

$

16,857

 

 

$

22,461

 

 

$

410,549

 

Interest and other

 

 

76

 

 

 

1,012

 

 

 

(7

)

 

 

(4,476

)

 

 

(9,648

)

 

 

(13,043

)

Income taxes

 

 

34,223

 

 

 

35,567

 

 

 

43,275

 

 

 

5,138

 

 

 

6,828

 

 

 

125,031

 

Expenses associated with share-based compensation arrangements

 

 

4,244

 

 

 

5,485

 

 

 

5,492

 

 

 

687

 

 

 

10,160

 

 

 

26,068

 

Net loss (gain) on disposition and impairment of assets

 

 

61

 

 

 

(85

)

 

 

(45

)

 

 

(140

)

 

 

(256

)

 

 

(465

)

Depreciation expense

 

 

17,590

 

 

 

24,038

 

 

 

14,192

 

 

 

2,474

 

 

 

22,138

 

 

 

80,432

 

Amortization of intangibles

 

 

3,465

 

 

 

6,657

 

 

 

2,202

 

 

 

1,846

 

 

 

1,155

 

 

 

15,325

 

Adjusted EBITDA

 

$

171,945

 

 

$

189,120

 

 

$

207,608

 

 

$

22,386

 

 

$

52,838

 

 

$

643,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

7.2

%

 

 

13.3

%

 

 

12.6

%

 

 

9.5

%

 

 

1577.3

%

 

 

11.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

2022

(In thousands)

 

Retail

 

Packaging

 

Construction

 

All Other

 

Corporate

 

Total

Net earnings

 

$

93,888

 

 

$

188,954

 

 

$

242,270

 

 

$

34,136

 

 

$

13,837

 

 

$

573,085

 

Interest and other

 

 

56

 

 

 

2,730

 

 

 

(4

)

 

 

5,855

 

 

 

11,221

 

 

 

19,858

 

Income taxes

 

 

30,912

 

 

 

62,215

 

 

 

79,768

 

 

 

11,277

 

 

 

4,520

 

 

 

188,692

 

Expenses associated with share-based compensation arrangements

 

 

3,323

 

 

 

3,842

 

 

 

3,697

 

 

 

466

 

 

 

8,651

 

 

 

19,979

 

Net loss (gain) on disposition and impairment of assets

 

 

617

 

 

 

620

 

 

 

62

 

 

 

5

 

 

 

(952

)

 

 

352

 

Depreciation expense

 

 

13,813

 

 

 

22,497

 

 

 

10,101

 

 

 

2,028

 

 

 

20,442

 

 

 

68,881

 

Amortization of intangibles

 

 

2,742

 

 

 

5,773

 

 

 

2,481

 

 

 

2,067

 

 

 

385

 

 

 

13,448

 

Adjusted EBITDA

 

$

145,351

 

 

$

286,631

 

 

$

338,375

 

 

$

55,834

 

 

$

58,104

 

 

$

884,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a Percentage of Net Sales

 

 

4.9

%

 

 

15.3

%

 

 

13.3

%

 

 

16.8

%

 

 

618.3

%

 

 

11.5

%

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

SEPTEMBER 2023/2022

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

2023

 

 

2022

 

LIABILITIES AND EQUITY

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Cash and cash equivalents

 

$

957,197

 

$

449,135

 

Cash Overdraft

 

$

 

$

4,174

Restricted cash

 

 

3,761

 

 

729

 

Accounts payable

 

 

254,689

 

 

323,404

Investments

 

 

37,062

 

 

33,113

 

Accrued liabilities and other

 

 

347,499

 

 

433,747

Accounts receivable

 

 

712,329

 

 

877,776

 

Current portion of debt

 

 

1,539

 

 

41,536

Inventories

 

 

747,474

 

 

1,006,883

 

 

 

 

 

 

 

 

Other current assets

 

 

64,906

 

 

68,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

2,522,729

 

 

2,436,363

 

TOTAL CURRENT LIABILITIES

 

 

603,727

 

 

802,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

230,387

 

 

217,782

 

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

 

 

273,308

 

 

275,417

INTANGIBLE ASSETS, NET

 

 

521,412

 

 

440,395

 

OTHER LIABILITIES

 

 

174,143

 

 

183,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TEMPORARY EQUITY

 

 

20,191

 

 

7,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

 

745,604

 

 

644,007

 

SHAREHOLDERS' EQUITY

 

 

2,948,763

 

 

2,468,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

4,020,132

 

$

3,738,547

 

TOTAL LIABILITIES AND EQUITY

 

$

4,020,132

 

$

3,738,547

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE NINE MONTHS ENDED

SEPTEMBER 2023/2022

 

(In thousands)

 

 

2023

 

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net earnings

 

$

410,549

 

 

 

$

573,085

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

80,432

 

 

 

 

68,881

 

Amortization of intangibles

 

 

15,325

 

 

 

 

13,448

 

Expense associated with share-based and grant compensation arrangements

 

 

26,068

 

 

 

 

19,979

 

Deferred income taxes (credit)

 

 

113

 

 

 

 

(269

)

Unrealized loss on investment and other

 

 

362

 

 

 

 

8,453

 

Equity in loss of investee

 

 

1,013

 

 

 

 

2,740

 

Net (gain) loss on sale and disposition of assets

 

 

(465

)

 

 

 

352

 

Changes in:

 

 

 

 

 

 

 

Accounts receivable

 

 

(82,883

)

 

 

 

(137,607

)

Inventories

 

 

230,559

 

 

 

 

(36,259

)

Accounts payable and cash overdraft

 

 

49,093

 

 

 

 

(11,247

)

Accrued liabilities and other

 

 

(18,363

)

 

 

 

31,490

 

NET CASH FROM OPERATING ACTIVITIES

 

 

711,803

 

 

 

 

533,046

 

 

 

 

 

 

 

 

 

CASH FLOWS USED IN INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(130,947

)

 

 

 

(113,725

)

Proceeds from sale of property, plant and equipment

 

 

2,211

 

 

 

 

2,303

 

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

 

 

(52,383

)

 

 

 

(105,212

)

Purchases of investments

 

 

(26,333

)

 

 

 

(16,925

)

Proceeds from sale of investments

 

 

22,101

 

 

 

 

10,036

 

Other

 

 

(2,092

)

 

 

 

911

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(187,443

)

 

 

 

(222,612

)

 

 

 

 

 

 

 

 

CASH FLOWS USED IN FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

18,915

 

 

 

 

570,700

 

Repayments under revolving credit facilities

 

 

(21,929

)

 

 

 

(571,075

)

Repayments of debt

 

 

(29

)

 

 

 

(1,957

)

Contingent consideration payments and other

 

 

(6,179

)

 

 

 

(2,564

)

Proceeds from issuance of common stock

 

 

2,087

 

 

 

 

2,110

 

Dividends paid to shareholders

 

 

(49,723

)

 

 

 

(43,420

)

Distributions to noncontrolling interest

 

 

(7,355

)

 

 

 

(12,023

)

Repurchase of common stock

 

 

(62,076

)

 

 

 

(93,215

)

Other

 

 

65

 

 

 

 

(210

)

NET CASH USED IN FINANCING ACTIVITIES

 

 

(126,224

)

 

 

 

(151,654

)

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

3,199

 

 

 

 

(139

)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

401,335

 

 

 

 

158,641

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

559,623

 

 

 

 

291,223

 

 

 

 

 

 

 

 

 

ALL CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

960,958

 

 

 

$

449,864

 

 

 

 

 

 

 

 

 

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

 

$

957,197

 

 

 

$

449,135

 

Restricted cash, end of period

 

 

3,761

 

 

 

 

729

 

All cash and cash equivalents, end of period

 

$

960,958

 

 

 

$

449,864

 

 

 

 

 

 

 

 

 

 

Contacts

Dick Gauthier

VP of Investor Relations

(616) 365-1555

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