8-K
UFP INDUSTRIES INC (UFPI)
8-K
2022-06-08
For: 2022-06-08
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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): June 8, 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 2022 Investor Relations Presentation provided to investors.
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: June 8, 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
| 1<br>NO MISSION STATEMENTS.<br>JUST PEOPLE ON A MISSION. |
|---|
| 2<br>UFP INDUSTRIES, INC.<br>2022<br>Please be aware that: Statements included in this presentation that are not historical are forward<br>-<br>looking statements within the<br>meaning of Section 21E of the Securities<br>Exchange Act, as amended, and are based on management’s beliefs, assumptions, current expectations, estimates, and projection<br>s a<br>bout the markets we serve, the<br>economy, and the company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” like<br>ly,<br>” “plans,” “projects,” “should,” variations of<br>such words, and similar expressions identify such forward<br>-<br>looking statements. These statements do not guarantee future performan<br>ce and involve certain risks,<br>uncertainties and assumptions that are difficult to predict<br>with regard to<br>timing, extent, likelihood and degree of occurrence.<br>The Company does not undertake to<br>update forward<br>-<br>looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward<br>-<br>l<br>ooking statements are made.<br>Actual<br>results could differ materially from those included in such forward<br>-<br>looking statements. Investors are cautioned that all forward<br>-<br>looking statements involve risks and<br>uncertainty.<br>Among the factors that could cause actual results to differ materially from forward<br>-<br>looking statements are the foll<br>owing:<br>Fluctuations in the price of<br>lumber; adverse or unusual weather conditions; adverse conditions in the markets we serve; government regulations, particular<br>ly<br>involving environmental and safety<br>regulations; and our ability to make successful business acquisitions.<br>Certain of these risk factors as well as other risk facto<br>rs and additional information are included<br>in the Company's reports on Form 10<br>-<br>K and 10<br>-<br>Q on file with the Securities and Exchange Commission.<br>Non<br>-<br>GAAP Financial Information: This presentation includes certain financial information not prepared in accordance with U.S. GA<br>AP. Because not all companies<br>calculate non<br>-<br>GAAP financial information identically (or at all), the information herein may not be comparable to other similarl<br>y titled measures used by other<br>companies. Management considers adjusted EBITDA and return on invested capital to be non<br>-<br>GAAP alternative performance measures w<br>hich may provide useful<br>information to investors<br>This presentation is the property of UFP Industries, Inc.<br>Any redistribution, retransmission, or reprinting of this presentation<br>in any form without the express written<br>consent of Universal is strictly prohibited. |
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| 3<br>40%<br>31%<br>24%<br>5%<br>Based on<br>2021 Sales<br>INTRODUCTION<br>UFP AT A GLANCE<br>Retail<br>-<br>$3.4B<br>Big box, independents, & buying co<br>-<br>ops<br>Construction<br>-<br>$2.7B<br>Single and multi<br>-<br>family builders, commercial<br>builders, concrete formers, factory<br>-<br>built housing<br>(mobile & modular homes) & RVs<br>2022<br>Industrial<br>-<br>$2.1B<br>Industrial packaging, packaging materials<br>& OEM components<br>International<br>-<br>$0.4B<br>Overseas sourcing and selling with manufacturing<br>and design assets in nine countries.<br>15,000+<br>Number of employees<br>worldwide<br>208<br>Number of facilities<br>worldwide<br>$8.6B<br>2021 Revenue<br>$835M<br>2021 Adjusted EBITDA<br>1955<br>Company founded in<br>Grand Rapids, MI<br>$ |
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| 4<br>INTRODUCTION<br>WHERE WE ARE<br>2022<br>183<br>2<br>4<br>1<br>11<br>1<br>5<br>GLOBAL LOCATIONS<br>208<br>1 |
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| 5<br>2022<br>VALUE<br>-<br>ADDED TRANSFORMATION |
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| 6<br>UFP INDUSTRIES<br>MANAGEMENT (R)EVOLUTION<br>Since our founding through 2019, we managed our people<br>and plants regionally. Beginning January 1, 2020, we<br>realigned our management teams to focus specifically on<br>business segments rather than geographies.<br>At the same<br>time, we changed our name to better reflect the breadth of<br>our<br>product mix.<br>The new structure brought greater focus, resulting in:<br>•<br>Improved alignment with our customers<br>•<br>Faster introduction of new, value<br>-<br>added products<br>•<br>Better, quicker decision making<br>•<br>More effective allocation of capital<br>•<br>More consistent execution<br>Western Division<br>Southern Division<br>Northern Division<br>2020 and Beyond<br>1955<br>-<br>2019<br>2020 and Beyond<br>2022 |
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| 7<br>BUSINESS MODEL<br>LONG<br>-<br>TERM FINANCIAL GOALS<br>2022<br>Annual unit sales<br>growth of 5<br>-<br>7<br>percent, including<br>small acquisitions<br>10% Adjusted<br>EBITDA margin<br>Earn incremental<br>ROIC on new<br>investment<br>greater than WACC<br>Maintain a<br>conservative capital<br>structure |
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| 8<br>BUSINESS SEGMENTS & PRODUCT MIX EVOLUTION<br>2022<br>2013<br>Value<br>-<br>added as a Percent of Sales<br>2013<br>$284m<br>19.0%<br>New Products<br>14.9%<br>$402m<br>$510m<br>18.5%<br>2019<br>2020<br>2021<br>Note: Lumber price appreciation more significantly impacts<br>commodity<br>-<br>based products compared to value<br>-<br>add products.<br>Sales<br>% of Sales<br>Commodity<br>Value<br>-<br>added<br>2019<br>2020<br>2021<br>57.8%<br>42.2%<br>46.2%<br>43.2%<br>56.8%<br>53.8%<br>Sunbelt Forest Products<br>$774M<br>2021<br>DecKorators<br>$249M<br>2021<br>UFP Edge<br>$545M**<br>2021<br>Prowood<br>$1,743M*<br>2021<br>*Includes $393M in Outdoor Essentials<br>**Includes $396M in Retail Building Materials |
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| 9<br>BUSINESS SEGMENTS & PRODUCT MIX EVOLUTION<br>2022<br>2013<br>$60m<br>3.7%<br>New Products<br>5.0%<br>$54m<br>$136m<br>3.2%<br>2019<br>2020<br>2021<br>Sales<br>% of Sales<br>2013<br>23.7%<br>81.4%<br>18.6%<br>73.0%<br>27.0%<br>76.3%<br>Commodity<br>Value<br>-<br>added<br>2019<br>2020<br>2021<br>Value<br>-<br>added as a Percent of Sales<br>Note: Lumber price appreciation more significantly impacts<br>commodity<br>-<br>based products compared to value<br>-<br>add products.<br>Factory<br>-<br>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 |
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| 10<br>2022<br>BUSINESS SEGMENTS & PRODUCT MIX EVOLUTION<br>2013<br>$69m<br>6.3%<br>New Products<br>8.2%<br>$73m<br>$177m<br>6.8%<br>2019<br>2020<br>2021<br>Sales<br>% of Sales<br>2013<br>35.3%<br>66.2%<br>33.8%<br>67.7%<br>32.3%<br>64.7%<br>Commodity<br>Value<br>-<br>added<br>2019<br>2020<br>2021<br>Value<br>-<br>added as a Percent of Sales<br>Protective Packaging<br>Materials<br>$19M<br>2021<br>Machine<br>-<br>Built Pallets<br>$355M<br>2021<br>Structural Packaging<br>and OEM Parts<br>$1.8B<br>2021<br>Note: Lumber price appreciation more significantly impacts<br>commodity<br>-<br>based products compared to value<br>-<br>add products.<br>UFPindustial.com |
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| 11<br>UFP International actively trades lumber, packaging and building materials in 65 countries to<br>supply local and multinational customers across major markets. Additionally, UFP has<br>manufacturing and distribution facilities in Canada, Mexico, Italy, Australia and India to support<br>our efforts as a global Industrial packaging solutions provider.<br>BUSINESS SEGMENTS<br>2022<br>2021 Sales:<br>$339 million |
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| 12<br>BUSINESS MODEL<br>ACQUISITIONS<br>2022<br>PROCESS<br>Identify attractive<br>growth runways in<br>each Business Unit<br>under each Business<br>Segment and identify<br>gaps in our capabilities<br>to pursue those<br>runways.<br>PURPOSE<br>Find new products<br>and services to speed<br>our transformation<br>from commodity<br>sales to value<br>-<br>added<br>selling solutions and<br>brands.<br>GOAL<br>Achieve scale and<br>synergy targets to<br>optimize growth,<br>margins and<br>returns. |
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| 13<br>BUSINESS MODEL<br>A UNIQUE CULTURE BUILT FOR GOOD TIMES AND BAD<br>2022<br>Strong Balance<br>Sheet<br>Return<br>-<br>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<br>-<br>and<br>variable<br>-<br>priced<br>products hedges<br>volatile lumber prices.<br>Entrepreneurial<br>Focused<br>Stable<br>Prepared |
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| 14<br>FINANCIALS |
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| 15<br>MANAGING LUMBER MARKET RISK TO<br>EARN A STABLE PROFIT PER UNIT<br>2022<br>Level<br>of lumber<br>prices affects gross<br>profit and SG&A to<br>sales ratios<br>Sequential<br>trends<br>affect profit per unit<br>Balanced mix of<br>variable and fixed<br>-<br>price products<br>mitigate risk.<br>1112<br>1225<br>1321<br>1051<br>948<br>890<br>954<br>1035<br>1080<br>1428<br>1344<br>690<br>443<br>412<br>520<br>585<br>746<br>377<br>402<br>420<br>358<br>394<br>455<br>530<br>716<br>934<br>826<br>571<br>643<br>331<br>370<br>365<br>354<br>346<br>329<br>356<br>346<br>364<br>360<br>373<br>371<br> $300<br> $400<br> $500<br> $600<br> $700<br> $800<br> $900<br> $1,000<br> $1,100<br> $1,200<br> $1,300<br> $1,400<br>Jan<br>Feb<br>Mar<br>Apr<br>May<br>Jun<br>Jul<br>Aug<br>Sep<br>Oct<br>Nov<br>Dec<br>Lumber Market (in $/MBF)<br>2021<br>2020<br>2022<br>2019<br>Average weekly random lengths framing lumber composite price.<br>Lumber Market |
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| 16<br>$3,941<br>$4,489<br>$4,416<br>$5,154<br>$8,636<br>15%<br>6%<br>6%<br>6%<br>28%<br>4%<br>3%<br>5%<br>5%<br>4%<br>11%<br>3%<br>1%<br>1%<br>24%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br> $-<br> $1,000<br> $2,000<br> $3,000<br> $4,000<br> $5,000<br> $6,000<br> $7,000<br> $8,000<br> $9,000<br> $10,000<br>FINANCIALS<br>2022<br>NET SALES<br>Acquisition Unit<br>Sales Growth<br>Organic Unit<br>Sales Growth<br>Total Unit<br>Sales Growth<br>Net Sales<br>Long<br>-<br>Term Goal: Unit sales growth of 5% to 7%, including acquisitions<br>Net Sales (in millions)<br>Percent Change<br>2017<br>2018<br>2019<br>2020<br>2021 |
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| 17<br>15%<br>6%<br>6%<br>6%<br>28%<br>14%<br>9%<br>16%<br>17%<br>76%<br>13%<br>12%<br>19%<br>36%<br>94%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>60%<br>70%<br>80%<br>90%<br>100%<br>2017<br>2018<br>2019<br>2020<br>2021<br>FINANCIALS<br>UNIT SALES AND PROFIT GROWTH<br>2022<br>Percent<br>Growth<br>Long<br>-<br>Term Goal: Achieve Adjusted EBITDA growth exceeding unit sales growth.<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Unit Sales<br>Growth<br>Gross Profit<br>Growth<br>Adjusted EBITDA<br>Growth |
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| 18<br>$238<br>$266<br>$317<br>$431<br>$835<br>6.0%<br>5.9%<br>7.2%<br>8.4%<br>9.7%<br>5%<br>6%<br>7%<br>8%<br>9%<br>10%<br>11%<br>12%<br>13%<br> $-<br> $100<br> $200<br> $300<br> $400<br> $500<br> $600<br> $700<br> $800<br> $900<br>2017<br>2018<br>2019<br>2020<br>2021<br>FINANCIALS<br>Adjusted EBITDA<br>2022<br>Long<br>-<br>term goal: Achieve and sustain a 10% adjusted EBITDA margin.<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Adjusted EBITDA<br>Margin<br>Adjusted EBITDA<br>Adjusted<br>EBITDA (in millions)<br>Adjusted<br>EBITDA Margin |
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| 19<br>13.2%<br>14.0%<br>15.1%<br>21.0%<br>32.2%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>2017<br>2018<br>2019<br>2020<br>2021<br>FINANCIALS<br>RETURN ON INVESTED CAPITAL<br>2022<br>Percent<br>Hurdle Rate = 12%<br>WACC = 10%<br>Long<br>-<br>term goal: Earning an incremental return on new investment over our cost of capital.<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement. |
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| 20<br>11.8%<br>11.5%<br>12.4%<br>0.0%<br>10.2%<br>12.8%<br>15.7%<br>0.0%<br>0.0%<br>2.5%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>1.10<br>0.80<br>0.72<br>-<br>0.46<br>0.60<br>0.80<br>-<br>-<br>0.06<br>0.0<br>0.5<br>1.0<br>1.5<br>2.0<br>2.5<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>FINANCIALS<br>CAPITAL STRUCTURE<br>2022<br>Net Debt to Total Capitalization<br>vs Maximum Target<br>Net Debt to Adjusted EBITDA<br>vs Maximum Target<br>Max target<br>Net Debt to Total Capital<br>Net Debt to TTM Adjusted EBITDA<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement. |
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| 21<br>BALANCED USE OF FREE CASH FLOW<br>2022<br>Acquisitions to contribute<br>half of our total annual<br>unit sales growth<br>Opportunistic share repurchases<br>to offset issuances<br>CapEx<br>plan of $175M to<br>$225M in 2022<br>Increasing dividends<br>$349<br>$337<br>$513<br>$25<br>$31<br>$40<br>$85<br>$89<br>$151<br>$29<br>$39<br>$65<br>$476<br>Acquisitions<br>Share Buybacks<br>Capex<br>Dividends<br>OCF<br>2019<br>2020<br>2021<br>Operating Cash Flow and Capital Allocation<br>(in millions) |
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| 22<br>FINANCIALS<br>2022<br>Q1 2022<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Q1<br>Q4<br>Q3<br>Q2<br>Q1<br>Net Sales<br>(in billions)<br>$2.5<br>$2.0<br>$2.1<br>$2.7<br>$1.8<br>Q1<br>Q4<br>Q3<br>Q2<br>Q1<br>Adj. EBITDA & Margin<br>(in millions)<br>$292<br>$223<br>$187<br>$261<br>$163<br>10<br>%<br>25<br>%<br>13<br>%<br>47<br>%<br>33<br>%<br>3<br>%<br>5<br>%<br>-<br>3<br>%<br>11<br>%<br>10<br>%<br>Q1<br>Q4<br>Q3<br>Q2<br>Q1<br>YOY Unit Growth<br>Total Unit Growth<br>Organic Unit Growth<br>80<br>%<br>89<br>%<br>49<br>%<br>137<br>%<br>111<br>%<br>10<br>%<br>25<br>%<br>13<br>%<br>47<br>%<br>33<br>%<br>Q1<br>Q4<br>Q3<br>Q2<br>Q1<br>Adj. EBITDA Growth<br>Total Unit Growth<br>YOY Adj. EBITDA & Unit Growth<br>11.7%<br>11<br>..1%<br>9<br>%<br>9.7%<br>8.9% |
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| 23<br>2801 E. Beltline Ave. NE<br>Grand Rapids, MI 49506<br>(800) 598<br>-<br>9663<br>-<br>UFPI.com<br>THANK YOU. |
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