8-K
UFP INDUSTRIES INC (UFPI)
8-K
2022-11-15
For: 2022-11-15
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April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 15, 2022
UFP INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
| <br><br> | <br><br> | <br><br> |
|---|---|---|
| Michigan<br><br>(State or other Jurisdiction of Incorporation) | 0-22684<br><br>(Commission File Number) | 38-1465835<br><br>(IRS Employer Identification No.) |
| <br><br><br><br> | <br><br><br><br> |
|---|---|
| 2801 East Beltline, NE , Grand Rapids , Michigan<br><br>(Address of Principal Executive Offices) | 49525<br><br>(Zip Code) |
Registrant's telephone number, including area code: ( 616 ) 364-6161
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | UFPI | The NASDAQ Stock Market, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
Attached as Exhibit 99.1 is the Company's current version of its third quarter 2022 Investor Relations Presentation provided to investors and posted on the Company's website at www.ufpi.com.
The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01. Exhibits.
Exhibits
| | |
|---|---|
| 99.1 | 2022 Investor Relations Presentation. |
| | |
| 104 | Cover Page Interactive File (the cover page XBRL tags are embedded in the Inline XBRL document). |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | |
|---|---|---|
| Dated: November 15, 2022 | UFP INDUSTRIES, INC. | |
| | (Registrant) | |
| | | |
| | By: | /s/ Michael R. Cole |
| | | Michael R. Cole |
| | | Principal Financial Officer and Treasurer |
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Exhibit 99
| 1<br>2022 Investor Relations<br>Presentation<br>2022 Investor Relations<br>Presentation<br>Results through<br>September 24, 2022 |
|---|
| 2<br>UFP INDUSTRIES, INC.<br>2022<br>Please be aware that: Statements included in this presentation that are not historical are forward-looking statements within themeaning of Section 21E of the Securities<br>Exchange Act, as amended, and are based on management’s beliefs, assumptions, current expectations, estimates, and projections about the markets we serve, the<br>economy, and the company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” likely,” “plans,” “projects,” “should,” variations of<br>such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks,<br>uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence.The Company does not undertake to<br>update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made.Actual<br>results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and<br>uncertainty.Among the factors that could cause actual results to differ materially from forward-looking statements are the following:Fluctuations in the price of<br>lumber; adverse or unusual weather conditions; adverse conditions in the markets we serve; government regulations, particularly involving environmental and safety<br>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<br>in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.<br>Non-GAAP Financial Information: This presentation includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies<br>calculate non-GAAP financial information identically (or at all), the information herein may not be comparable to other similarly titled measures used by other<br>companies. Management considers adjusted EBITDA and return on invested capital to be non-GAAP alternative performance measures which may provide useful<br>information to investors.<br>This presentation is the property of UFP Industries, Inc.Any redistribution, retransmission, or reprinting of this presentationin any form without the express written<br>consent of Universal is strictly prohibited. |
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| 3<br>UFP Industries is a holding company whose operating<br>subsidiaries –UFP Industrial, UFP Construction and UFP<br>Retail Solutions –manufacture, distribute and sell a wide<br>variety of value-added products used in residential and<br>commercial construction, outdoor living, packaging and<br>other industrial applications worldwide.<br>NO MISSION STATEMENTS. JUST PEOPLE ON A MISSION.<br>™ |
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| 4<br>40%<br>31%<br>24%<br>5%<br>Based on<br>2021 Net Sales<br>INTRODUCTION<br>UFP AT A GLANCE<br>Retail<br>-$3.4B in 2021<br>$3.7B in Q3 2022 TTM<br>Big box, independents, & buying co-ops<br>Construction<br>-$2.7B in 2021<br>$3.2B in Q3 2022 TTM<br>Single and multi-family builders, commercial<br>builders, concrete formers, factory-built housing<br>(mobile & modular homes) & RVs<br>2022<br>Industrial<br>-$2.1B in 2021<br>$2.4B in Q3 2022 TTM<br>Industrial packaging, packaging materials<br>& OEM components<br>International<br>-$0.4B in 2021<br>$0.4B in Q3 2022 TTM<br>Overseas sourcing and selling with manufacturing<br>and design assets in eight countries.<br>15,000+<br>Number of employees<br>worldwide<br>211<br>Number of facilities<br>worldwide<br>$8.6B<br>2021 Net Sales<br>$9.7B<br>Q3 2022 TTM Net Sales<br>$835M<br>2021 Adj. EBITDA<br>$1.1B<br>Q3 2022 TTM Adj. EBITDA<br>1955<br>Company founded in<br>Grand Rapids, MI<br>$<br>$<br>38%<br>33%<br>25%<br>4%<br>Based on Q3<br>2022 TTM Net<br>Sales |
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| 5<br>INTRODUCTION<br>WHERE WE ARE<br>2022<br>186<br>2<br>4<br>1<br>11<br>1<br>5<br>211 Locations<br>1 |
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| 6<br>BUSINESS MODEL<br>LONG-TERM FINANCIAL GOALS<br>2022<br>Annual unit sales<br>growth of 5-7<br>percent, including<br>small acquisitions<br>10% Adjusted<br>EBITDA margin<br>Earn incremental<br>return on new<br>investment<br>greater than WACC<br>Maintain a<br>conservative capital<br>structure |
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| 7<br>BUSINESS MODEL<br>INNOVATION AND NEW PRODUCTS<br>2013<br>$426m<br>3%<br>10%<br>$85m<br>New Products<br>2022<br>10%<br>$540m<br>% of Sales<br>Sales<br>% of Sales<br>Sales<br>% of Sales<br>Sales<br>$842m<br>10%<br>% of Sales<br>Sales<br>20192021<br>20132020<br>$679m<br>% of Sales<br>Sales<br>Q3 2022 TTM<br>7%<br>4%*<br>$377m*<br>*This represents the new product sales, while still sold, that were sunset in the trailing twelve<br>months in Q3 2022 and excluded because they no longer meet the definition of new<br>products. New products are defined as those that will generate sales of at least $1 million per<br>year within 4 years of launch and are still growing and gaining market penetration. |
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| 8<br>New Structure Drives Better<br>Strategy Development and Execution<br>Western Division<br>Southern Division<br>Northern Division<br>2020 and Beyond<br>1955 -20192020 and Beyond<br>Our new structure, based on management of market segments rather than geography,<br>brought greater focus, resulting in:<br>•<br>Improved alignment with our customers<br>•<br>Faster introduction of new, value-added products<br>•<br>Better, quicker decision making<br>•<br>More effective allocation of capital<br>Resulting in better EBITDA margins and ROIC.<br>2022 |
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| 9<br>BUSINESS MODEL<br>A UNIQUE CULTURE BUILT FOR GOOD TIMES AND BAD<br>Strong Balance<br>Sheet<br>Return-focused<br>approach to capital<br>allocation.<br>Capital reserves used<br>opportunistically.<br>Average<br>management team<br>tenure: 23 years.<br>67 straight years of<br>profitability.<br>Every plant is a profit<br>center and all<br>employees bonused<br>on ROI.<br>All managers required<br>to own stock.<br>Balanced<br>Business Model<br>Experienced<br>Leadership<br>Incentives Aligned<br>With Shareholders<br>Diversified business<br>portfolio mitigates<br>lumber and business<br>risk.<br>Mix of fixed-and<br>variable-priced<br>products hedges<br>volatile lumber prices.<br>Entrepreneurial<br>Focused<br>Stable<br>Prepared<br>Model maintains performance in cyclical and secular downturns.<br>2022 |
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| 10<br>UFP INDUSTRIES<br>BUSINESS SEGMENTS<br>2022 |
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| 11<br>BUSINESS SEGMENTS<br>2022<br>2013<br>Value-added as a % of Net Sales<br>2013<br>$284m<br>19%<br>15%<br>$402m<br>$510m<br>19%<br>Sales<br>% of Sales<br>Commodity<br>Value-added<br>201920202021<br>58%<br>42%<br>46%<br>43%<br>57%<br>54%<br>Sunbelt<br>$774M<br>2021<br>DecKorators**<br>$249M<br>2021<br>UFP Edge***<br>$545M<br>2021<br>Prowood*<br>$1.7B<br>2021<br>*Includes $393M and $403M in Outdoor Essentials for 2021 and 2022, respectively.<br>**Comprised of 48% to Big Box customers and 52% to all other customers.<br>***Includes $396M and $364M in Retail Building Materials for 2021 and 2022, respectively.<br>(1) This represents the new product sales, while still sold, that were sunset in the trailing<br>twelve months in Q3 2022 and excluded because they no longer meet the definition of new<br>products. New products are defined as those that will generate sales of at least $1 million per<br>year within 4 years of launch and are still growing and gaining market penetration.<br>Q3 2022 TTM: $1.8B<br>Q3 2022 TTM: $915M<br>Q3 2022 TTM: $317M<br>Q3 2022 TTM: $534M<br>New Products & % of Net Sales<br>56%<br>44%<br>Q3 2022<br>TTM<br>20192020<br>2021<br>Q3 2022<br>TTM<br>$298m<br>8%<br>8%<br>(1)<br>$283m<br>(1) |
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| 12<br>Deckorators.com<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>ProWoodLumber.com<br>OutdoorEssentialProducts.com<br>UFPEdge.com<br>Outdoor lifestyle products<br>including wood and vinyl fencing,<br>landscape and garden décor,<br>picnic tables, pergolas,<br>trellises and more.<br>Premium siding, pattern,<br>trim; interior accent<br>wall products.<br>Preserved lumber including<br>timbers, decking,<br>construction materials<br>and fire-treated.<br>The industry’s leading<br>innovator of composite<br>decking, railing and<br>accessories.<br>On-trend brands to all major building products retailers, while supporting<br>customers with best-in-class in-store and e-commerce support.<br>2022 |
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| 13<br>2022<br>2013<br>$69m<br>6%<br>New Products & % of Net Sales<br>8%<br>$73m<br>$177m<br>7%<br>Sales<br>% of Sales<br>2013<br>35%<br>66%<br>34%<br>68%<br>32%<br>65%<br>Commodity<br>Value-added<br>Value-added as a % of Net Sales<br>UFPindustial.com<br>Protective Packaging<br>Materials<br>$19M<br>2021<br>Structural Packaging<br>and OEM Components<br>$1.8B<br>2021<br>Q3 2022 TTM:<br>$1.9B<br>Q3 2022 TTM:<br>$41M<br>BUSINESS SEGMENTS<br>Machine-Built Pallets<br>$355M<br>2021<br>Q3 2022 TTM:<br>$406M<br>201920202021<br>Q3 2022<br>TTM<br>71%<br>29%<br>201920202021<br>Q3 2022<br>TTM<br>(1) This represents the new product sales, while still sold, that were sunset in the trailing<br>twelve months in Q3 2022 and excluded because they no longer meet the definition of new<br>products. New products are defined as those that will generate sales of at least $1 million per<br>year within 4 years of launch and are still growing and gaining market penetration.<br>$238m<br>$38m<br>(1)<br>10%<br>2%<br>(1) |
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| 14<br>BUSINESS SEGMENTS<br>INDUSTRIAL<br>Corrugated, stretch/shrink films,<br>labels, machine applicators, facility<br>supplies, hardware and software<br>solutions for all industries.<br>PROTECTIVE<br>PACKAGING<br>Wood, steel, foam and corrugated for mixed material crates and<br>specialty containers. Hard cases, tracking technology, logistics<br>solutions and onsite packaging services.<br>Lumber processing, composites, foam, metals, and panel goods,<br>furniture parts, cabinet, shed, door, and window components.<br>Structural Packaging<br>and OEM Components<br>New and recycled pallets,<br>design, engineering<br>and testing.<br>MACHINE-BUILT<br>PALLETS<br>Innovative packaging solutions and components backed by a global<br>manufacturing footprint, the industry’s leading engineering and<br>design, and integrated service teams.<br>2022 |
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| 15<br>BUSINESS SEGMENTS<br>2022<br>2013<br>$140m<br>$60m<br>4%<br>5%<br>$54m<br>$136m<br>3%<br>Sales<br>% of Sales<br>2013<br>24%<br>81%<br>19%<br>73%<br>27%<br>76%<br>Commodity<br>Value-added<br>Value-added as a % of Net Sales<br>Factory-Built<br>$1.1B<br>2021<br>Commercial<br>$259M<br>2021<br>Concrete Forming<br>$150M<br>2021<br>Site-Built*<br>$1.2B<br>2021<br>Q3 2022 TTM:<br>$1.4B<br>Q3 2022 TTM:<br>$1.2B<br>Q3 2022 TTM:<br>$338M<br>Q3 2022 TTM:<br>$244M<br>New Products & % of Net Sales<br>*Comprised of 65% for single-family homes and 35% for multi-family homes<br>(1) This represents the new product sales, while still sold, that were sunset in the<br>trailing twelve months in Q3 2022 and excluded because they no longer meet<br>the definition of new products. New products are defined as those that will<br>generate sales of at least $1 million per year within 4 years of launch and are still<br>growing and gaining market penetration.<br>201920202021<br>Q3 2022<br>TTM<br>23%<br>77%<br>201920202021<br>Q3 2022<br>TTM<br>$39m<br>(1)<br>5%<br>1%<br>(1) |
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| 16<br>Roof trusses, wall panels, floor<br>systems, doors and framing<br>services for residential and light<br>commercial builders. Sales are<br>65% single family, 35%<br>multifamily.<br>Roof trusses, floor joists,<br>laminated wall panels, cabinet<br>components, countertops and<br>milled components for modular<br>and manufactured homes, RV’s<br>and mobile offices.<br>BUSINESS SEGMENTS<br>CONSTRUCTION<br>SITE-BUILT<br>FACTORY-BUILT<br>UFPConstruction.com<br>IDXCorporation.com<br>Turnkey project management of<br>consumer environment and<br>architectural interiors. Design,<br>development, engineering,<br>manufacturing, assembly, distribution<br>and installation.<br>COMMERCIAL<br>Designed,<br>engineered and<br>manufactured forms.<br>CONCRETE FORMING<br>Single-source provider of building components, concrete forms, framing, exterior and<br>interior finishing programs designed to make building processes run at maximum efficiency.<br>2022<br>https://www.questdisplays.com/ |
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| 17<br>Trades lumber, packaging and building materials in 65 countries to supply local and multinational<br>customers across major markets. Global industrial packaging solutions provider with<br>manufacturing and distribution facilities in Canada, Mexico, Italy, Australia and India.<br>BUSINESS SEGMENTS<br>2022<br>2021 Sales:<br>$339 million<br>Q3 2022 TTM:<br>$428 million |
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| 18<br>SUSTAINABILITY CONTINUUM<br>2022<br>Drive<br>operational<br>excellence<br>throughout<br>the enterprise<br>Cultivate<br>a unique,<br>rewarding<br>culture<br>throughout<br>the UFP family<br>of companies<br>Provide<br>significant<br>opportunity<br>for professional<br>and personal<br>growth<br>Support<br>communities<br>in which we<br>operate<br>Supply<br>exceptional<br>products<br>and service to<br>our customers<br>Maintain<br>inclusive, safe<br>working<br>environments<br>Attract<br>and retain<br>diverse<br>top-shelf<br>talent<br>Operate<br>with a focus<br>on energy<br>efficiency<br>and lean<br>manufacturing<br>Deliver<br>Consistent, positive<br>financial results to our<br>shareholders<br>For UFP, sustainability means more than using and selling renewable materials.<br>It serves our ultimate goal of creating and sustaining value for shareholders.<br>BUSINESS MODEL |
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| 19<br>OUR SUSTAINABILITY PHILOSOPHY<br>We have always believed profitability, asset values and shareholder return<br>are optimized by acting responsibly, and that our investors experience<br>higher sustainable returns when we support our customers, employees and<br>communities . Our views on maintaining a sustainable enterprise can be<br>found<br>here.<br>For UFP Industries, doing right doesn’t require<br>departments and titles, but is simply part of who<br>we’ve been and who we continue to be. And that’s<br>how we like it –fewer committees, higher standards,<br>and increased financial and social reward for<br>employees, customers and communities.<br>BUSINESS MODEL<br>Emphasis on successful employee outcomes and consistent shareholder return.<br>2022 |
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| 20<br>FINANCIALS |
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| 21<br>OUR PERFORMANCE<br>7.2%<br>Adjusted EBITDA Margin<br>8.4%<br>9.7%<br>$4,416<br>Net Sales<br>$5,154$8,636<br>$180<br>Net Earnings (ACI)<br>$247$536<br>0.0<br>Net Debt to Adjusted EBITDA<br>0.0<br>0.06<br>15.1%<br>ROIC<br>21.0%<br>34.9%<br>2019<br>2020<br>2021<br>Unit sales<br>growth rate<br>6%<br>6%<br>6%<br>6%<br>28%<br>28%<br>6%<br>6%<br>28%<br>$ Sales in<br>Millions<br>Growth rate<br>21%<br>37%<br>117%<br>$317<br>Adjusted EBITDA<br>$431$835<br>19%<br>19%<br>36%<br>36%<br>94%<br>94%<br>19%<br>36%<br>94%<br>2022<br>Strong track record of growth and performance improvement with emphasis on raising gross profit dollars per unit.<br>ROIC-focused.<br>Q3 2022<br>TTM<br>$9,730<br>0.0<br>11.4%<br>32.2%<br>$698<br>30%<br>$1,108<br>33%<br>9%<br>FINANCIALS<br>Non-GAAP Financial Information:<br>Please click herefor reconciliation to related GAAP measurement. |
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| 22<br>MANAGING LUMBER MARKET RISK<br>Level of lumber prices does<br>not drive profitability<br>Sequential trends<br>impact profit per unit<br>Balanced mix of variable and<br>fixed-price products mitigate risk<br>Adjusted EBITA Margin<br>Lumber Market Volatility*<br>4.2%<br>34.5%<br>39.9%<br>32.2%<br>7.2%<br>8.4%<br>9.7%<br>11.5%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>50%<br>55%<br>60%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>50%<br>55%<br>60%<br>2019<br>20202021Q3 2022<br>YTD<br>Lumber Market Volatility<br>Adjusted EBITDA Margin<br>*Standard deviation of lumber prices divided by average weekly price.<br>2022<br>Balanced business model drives stable profit per unit.<br>FINANCIALS<br>Non-GAAP Financial Information:<br>Please click herefor reconciliation to related GAAP measurement. |
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| 23<br>FINANCIALS<br>2022<br>NET SALES<br>(in millions)<br>Long-Term Goal: Unit sales growth of 5% to 7%, including small acquisitions<br>Net Sales<br>Percent Change<br>$4,416<br>$5,154<br>$8,636<br>$9,730<br>6%<br>6%<br>28%<br>9%<br>5%<br>5%<br>4%<br>2%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>60%<br> $-<br> $2,000<br> $4,000<br> $6,000<br> $8,000<br> $10,000<br> $12,000<br>Organic Unit<br>Sales Growth<br>Total Unit<br>Sales Growth<br>Net Sales<br>2019<br>2020<br>2021<br>Q3 2022<br>TTM<br>UFP Consolidated<br>Net Sales<br>Percent Change<br>$1,086<br>$1,072<br>$2,148<br>$2,387<br>4%<br>(6)%<br>40%<br>4%<br>(2)%<br>(8)%<br>5%<br>(3)%<br>-15%<br>0%<br>15%<br>30%<br>45%<br>60%<br>75%<br> $-<br> $500<br> $1,000<br> $1,500<br> $2,000<br> $2,500<br> $3,000<br>UFP Industrial<br>Net Sales<br>Percent Change<br>$1,499<br>$2,167<br>$3,418<br>$3,664<br>10%<br>25%<br>31%<br>9%<br>10%<br>24%<br>(4)%<br>(2)%<br>-5%<br>10%<br>25%<br>40%<br>55%<br>70%<br>85%<br> $-<br> $750<br> $1,500<br> $2,250<br> $3,000<br> $3,750<br> $4,500<br>UFP Retail Solutions<br>Net Sales<br>Percent Change<br>$1,637<br>$1,696<br>$2,698<br>$3,216<br>6%<br>(6)%<br>17%<br>13%<br>6%<br>(7)%<br>14%13%<br>-15%<br>-5%<br>5%<br>15%<br>25%<br>35%<br>45%<br>55%<br> $-<br> $750<br> $1,500<br> $2,250<br> $3,000<br> $3,750<br> $4,500<br>UFP Construction<br>2019<br>2020<br>2021<br>Q3 2022<br>TTM<br>2019<br>2020<br>2021<br>Q3 2022<br>TTM<br>2019<br>20202021<br>Q3 2022<br>TTM |
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| 24<br>UFP Consolidated<br>UFP Industrial<br>UFP Retail Solutions<br>UFP Construction<br>FINANCIALS<br>ADJUSTED EBITDA<br>(in millions)<br>2022<br>Non-GAAP Financial Information:<br>Please click herefor reconciliation to related GAAP measurement.<br>Adjusted EBITDA<br>Adjusted EBITDA Margin<br>Adjusted EBITDA Margin<br>Adjusted EBITDA<br>$317<br>$431<br>$835<br>$1,108<br>7.2%<br>8.4%<br>9.7%<br>11.4%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br> $-<br> $200<br> $400<br> $600<br> $800<br> $1,000<br> $1,200<br>201920202021Q3 2022<br>TTM<br>Adjusted EBITDA<br>Adjusted EBITDA Margin<br>$101<br>$100<br>$304<br>$374<br>9.3%<br>9.3%<br>14.1%<br>15.6%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br>20.0%<br> $-<br> $75<br> $150<br> $225<br> $300<br> $375<br> $450<br>201920202021Q3 2022<br>TTM<br>Adjusted EBITDA<br>Adjusted EBITDA Margin<br>$75<br>$170<br>$147<br>$188<br>5.0%<br>7.8%<br>4.3%<br>5.1%<br>2.0%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br> $-<br> $50<br> $100<br> $150<br> $200<br> $250<br>201920202021Q3 2022<br>TTM<br>Adjusted EBITDA<br>Adjusted EBITDA Margin<br>$96<br>$98<br>$283<br>$423<br>5.9%<br>5.8%<br>10.5%<br>13.2%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br>20.0%<br> $-<br> $100<br> $200<br> $300<br> $400<br> $500<br>201920202021Q3 2022<br>TTM<br>Long-Term Goal: Achieve and sustain a 10% adjusted EBITDA margin. |
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| 25<br>UFP Consolidated<br>UFP Industrial<br>UFP Retail Solutions<br>FINANCIALS<br>ADJUSTED EBITDA GROWTH AND UNIT SALES<br>2022<br>Percent Growth<br>6%<br>6%<br>28%<br>9%<br>19%<br>36%<br>94%<br>32%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>201920202021Q3 2022<br>TTM<br>Unit Sales Growth<br>Adjusted EBITDA Growth<br>Long-Term Goal: Achieve Adjusted EBITDA growth exceeding unit sales growth.<br>UFP Construction<br>Percent Growth<br>4%<br>(6)%<br>40%<br>4%<br>34%<br>(1)%<br>204%<br>23%<br>-20%<br>20%<br>60%<br>100%<br>140%<br>180%<br>220%<br>201920202021Q3 2022<br>TTM<br>Percent Growth<br>10%<br>25%<br>31%<br>9%<br>18%<br>127%<br>(13)%<br>28%<br>-40%<br>10%<br>60%<br>110%<br>160%<br>201920202021Q3 2022<br>TTM<br>Percent Growth<br>6%<br>(6)%<br>17%<br>13%<br>14%<br>2%<br>189%<br>49%<br>-20%<br>30%<br>80%<br>130%<br>180%<br>201920202021Q3 2022<br>TTM<br>Non-GAAP Financial Information:<br>Please click herefor reconciliation to related GAAP measurement. |
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| 26<br>FINANCIALS<br>RETURN ON INVESTED CAPITAL<br>Hurdle Rate = 12%<br>Percent<br>13.2%<br>14.0%<br>15.1%<br>21.0%<br>32.2%<br>34.9%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>20172018201920202021Q3 2022 TTM<br>Long-Term Goal: Earn an incremental return on new investment over our WACC<br>WACC = 10%<br>2022<br>Non-GAAP Financial Information:<br>Please click herefor reconciliation to related GAAP measurement. |
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| 27<br>FINANCIALS<br>CASH CYCLE<br>2022<br>Cash Cycle = Days Receivables Outstanding + Days Supply of Inventory –Days Payables Outstanding<br>Days<br>52.4<br>54.1<br>55.7<br>48.1<br>56.8<br>53.1<br>0<br>10<br>20<br>30<br>40<br>50<br>60<br>70<br>20172018201920202021Q3 2022 YTD |
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| 28<br>FINANCIALS<br>CAPITAL STRUCTURE<br>Percent<br>Net Debt to Total Capitalization<br>vs Maximum Target<br>Net Debt to Adjusted EBITDA<br>vs Maximum Target<br>12.8%<br>15.7%<br>0.0%<br>0.0%<br>2.5%<br>0.0%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>20172018201920202021Q3 2022<br>TTM<br>0.60<br>0.80<br>-<br>-<br>0.06<br>-<br>0.0<br>0.5<br>1.0<br>1.5<br>2.0<br>2.5<br>20172018201920202021Q3 2022<br>TTM<br>Max target<br>Net Debt to Total Capital<br>Net Debt to TTM Adjusted EBITDA<br>Non-GAAP Financial Information:<br>Please click herefor reconciliation to related GAAP measurement.<br>Conservative capital structure ensures ample resources to pursue<br>prudent investment opportunities.<br>2022 |
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| 29<br>BALANCED USE OF FREE CASH FLOW<br>Acquisitions to contribute<br>half of our total annual<br>unit sales growth<br>CapExplan of $175M to<br>$225M in 2022<br>Opportunistic share repurchases<br>to offset issuances<br>Increasing dividends<br>$349<br>$336<br>$512<br>$533<br>$25<br>$31<br>$40<br>$43<br>$29<br>$93<br>$85<br>$89<br>$151<br>$114<br>$39<br>$65<br>$476<br>$105<br>Acquisitions<br>Capex<br>Share Buyback<br>Dividends<br>OCF<br>2019<br>2020<br>2021<br>Operating Cash Flow and Capital Allocation<br>(in millions)<br>Return-focused approach to capital allocation.<br>2022<br>Q3 2022<br>YTD<br>FINANCIALS |
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| 30<br>FINANCIALS<br>2022<br>NET SALESQ3 2022<br>(in millions)<br>$2,017<br>$2,489<br>$2,901<br>$2,323<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Consolidated<br>Organic Unit Sales<br>YOY Growth<br>Total Unit Sales<br>YOY Growth<br>Net Sales<br>$704<br>$993<br>$1,121<br>$845<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Retail Solutions<br>$515<br>$611<br>$676<br>$585<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Industrial<br>$677<br>$787<br>$975<br>$777<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Construction<br>25%<br>10%<br>3%<br>5%<br>5%<br>3%<br>2%<br>3%<br>36%<br>12%<br>(6)%<br>6%<br>2%<br>(2)%<br>(7)%<br>3%<br>25%<br>(3)%<br>0%<br>1%<br>(4)%<br>(4)%<br>(1)%<br>(2)%<br>15%15%<br>17%<br>8%<br>13%<br>14%<br>17%<br>8% |
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| 31<br>FINANCIALS<br>2022<br>ADJUSTED EBITDAQ3 2022<br>(in millions)<br>$2.9<br>$2.0<br>$2.1<br>$223<br>$292<br>$319<br>$274<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Consolidated<br>Adjusted EBITDA Margin<br>Adjusted EBITDA<br>$2.9<br>$2.0<br>$2.1<br>$43<br>$78<br>$31<br>$36<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Retail Solutions<br>$2.9<br>$2.0<br>$2.1<br>$87<br>$92<br>$105<br>$90<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Industrial<br>$2.9<br>$2.0<br>$2.1<br>$85 $85<br>$138<br>$116<br>Q4 2021Q1 2022Q2 2022Q3 2022<br>UFP Construction<br>11.1%<br>11.7%<br>11.0%<br>11.8%<br>6.1 %<br>7.9 %<br>2.8 %<br>4.2 %<br>16.9%<br>15.1%<br>15.5%<br>15.4%<br>12.5%<br>10.8%<br>14.2%<br>14.9%<br>Non-GAAP Financial Information:<br>Please click herefor reconciliation to related GAAP measurement. |
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| 32<br>2801 E. Beltline Ave. NE<br>Grand Rapids, MI 49506<br>(800) 598-9663 -UFPI.com<br>THANK YOU. |
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