8-K
UFP INDUSTRIES INC (UFPI)
8-K
2023-11-08
For: 2023-11-08
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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): November 8, 2023
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 2023 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 | 2023 Investor Relations Presentation. |
| | |
| 104 | Cover Page Interactive File (the cover page XBRL tags are embedded in the Inline XBRL document). |
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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 8, 2023 | UFP INDUSTRIES, INC. | |
| | (Registrant) | |
| | | |
| | By: | /s/ Michael R. Cole |
| | | Michael R. Cole |
| | | Principal Financial Officer and Treasurer |
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Exhibit 99.1
| INVESTOR RELATIONS PRESENTATION<br>Results through September 30, 2023 |
|---|
| Please be aware that statements included in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the<br>Securities Exchange Act, as amended, and are based on management’s beliefs, assumptions, current expectations, estimates, and projections about the markets we<br>serve, the economy, and the company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” likely,” “plans,” “projects,” “should,”<br>variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve<br>certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not<br>undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are<br>made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements<br>involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: Fluctuations in<br>the price of lumber; adverse or unusual weather conditions; adverse conditions in the markets we serve; government regulations, particularly involving environmental<br>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<br>are included 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 presentations herein may not be comparable to other similarly titled measures used by other<br>companies. Management uses Adjusted EBITDA and return on invested capital, non-GAAP financial measures, in order to evaluate historical and ongoing operations.<br>Management believes that these non-GAAP financial measures are useful in order to enable investors to perform meaningful comparisons of historical and current<br>performance. These non-GAAP financial measures are intended to supplement and should be read together with the financial results. These non-GAAP financial<br>measures should not be considered an alternative or substitute for, and should not be considered superior to, the reported financial results. Accordingly, users of this<br>financial information should not place undue reliance on the non-GAAP financial measures.<br>This presentation is the property of UFP Industries, Inc. Any redistribution, retransmission, or reprinting of this presentation in any form without the express written<br>consent of UFP Industries is strictly prohibited.<br>UFP INDUSTRIES, INC.<br>2 |
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| The operating segments of UFP Industries – UFP Packaging, UFP Construction and<br>UFP Retail Solutions – manufacture and sell a wide variety of value-added<br>products used in residential and commercial construction, outdoor living,<br>packaging and other industrial applications worldwide.<br>NO MISSION STATEMENT. JUST PEOPLE ON A MISSION.™<br>3 |
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| 15,000+<br>Employees<br>worldwide<br>222<br>Facilities<br>worldwide<br>1955<br>Founded in Grand<br>Rapids, MI<br>$7.6B<br>Q3 2023 TTM Net<br>Sales<br>41%<br>30%<br>25%<br>4%<br>Based on Q3 2023<br>TTM Net Sales<br>$3.1B<br>Big box, independents, & buying co-ops<br>$1.9B<br>Industrial manufacturers, OEM’s, agricultural and<br>logistics<br>UFP AT A GLANCE<br>$2.3B<br>Single-, multi-family and factory-built housing,<br>commercial, concrete formers<br>$0.3B<br>Overseas trading with manufacturing and design<br>assets in eight countries offering packaging<br>solutions<br>$857.1M<br>Q3 2023 TTM<br>Adjusted EBITDA<br>Business segments and markets |
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| WHERE WE ARE<br>197<br>2<br>4<br>1<br>1<br>9<br>1<br>5<br>222<br>Locations<br>9<br>Countries<br>5<br>2 |
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| 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>from<br>sustainable<br>sources<br>Maintain<br>inclusive, safe<br>working<br>environments<br>Attract<br>and retain<br>diverse<br>top-shelf<br>talent 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>We believe profitability, asset values and shareholder return are<br>optimized by acting responsibly, and that our investors experience<br>higher sustainable returns when we support our customers,<br>employees and communities. Our views on ESG and maintaining a<br>sustainable enterprise can be found here.<br>SUSTAINABILITY CONTINUUM<br>6 |
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| BUSINESS MODEL PROVIDES<br>SUSTAINABLE COMPETITIVE ADVANTAGES<br>7<br>As North America’s largest<br>buyer of softwood lumber,<br>UFP owns scale advantage<br>in sourcing and in serving<br>the three largest softwood<br>end markets – residential<br>construction, retail<br>building products and<br>industrial packaging.<br>While in its early stages, a<br>strategic and growing<br>focus on innovation has<br>brought the company and<br>its customers a steady<br>stream of new products<br>and services.<br>Scale through<br>Diversification<br>Incentives Aligned<br>With Shareholders<br>Commitment To<br>Innovation<br>RESULT: • Hedge against cyclicality<br>and customer concentration • Advantages in procurement<br>and product mix<br>diversification • Risk mitigation, including<br>against lumber market<br>volatility.<br>RESULT: • Entrepreneurial spirit • Efficient capital allocation • High ROIC • Consistently strong<br>balance sheet<br>RESULT: • Robust pipeline of new<br>products, averaging 9% of<br>sales since 2019 • New customers and<br>markets • Higher EBITDA margins<br>Teamwork, accountability,<br>devotion to the customer<br>and internal competition<br>create a results-driven<br>culture that drives<br>personal and profession<br>growth throughout the<br>organization.<br>RESULT: • 67 straight years of<br>profitability • Average tenure of 22.3<br>years for our 65 most<br>senior executives.<br>Culture<br>Each of our 222 operations<br>is a profit center, managed<br>by people who are required<br>to own stock, and are<br>compensated on a<br>combination of pre-bonus<br>operating profit and return<br>on investment.<br>In 2020 the company<br>created a new operating<br>structure based on<br>management of market<br>segments rather than<br>geography, bringing<br>greater focus.<br>Structure<br>RESULT:<br>Improved performance from<br>• Greater alignment with<br>customers • Quicker introduction of<br>new, value-added products • Better, more rapid decision<br>making |
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| RETAIL<br>Market demand flat to slightly down based<br>on: • Same-store sales growth of Big Box • Home remodeling activity<br>PACKAGING<br>Industrial production slightly down<br>based on: • Purchasing Managers Index (PMI) • Durable goods manufacturing • U.S. real GDP<br>CONSTRUCTION<br>10%-12% YoY decline in housing starts and<br>21% Y0Y decrease in manufactured home<br>shipments in 2023 based on: • Consensus estimates • The National Association of Home<br>Builders<br>MARGINS<br>We believe our consolidated annual decremental operating<br>margin is in a range of 11-14% of net sales. • Packaging in a range of 24-27%<br>• Construction in a range of 14-17%<br>• Retail is anticipated to see an improvement in operating<br>profits in 2023<br>SHORT-TERM FORWARD OUTLOOK<br>CAPITAL ALLOCATION A quarterly cash dividend of $0.30 per share, a 20%<br>increase from the prior year. On July 26, 2023, our board authorized the repurchase of<br>up to $200 million worth of shares of outstanding stock<br>through July 31, 2024. Capital expenditures of $175-$200 million. We continue to pursue a healthy pipeline of strategic<br>acquisition opportunities.<br>8 |
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| Annual unit sales<br>growth of 5-7%<br>including small<br>acquisitions<br>Minimum 10%<br>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<br>LONG-TERM FINANCIAL GOALS<br>9 |
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| 2013<br>31%<br>69%<br>36%<br>64%<br>40%<br>60%<br>37%<br>63%<br>32%<br>68%<br>Value-added as a percent of sales<br>..<br>VALUE ADDED SALES<br>Commodity<br>Value-added<br>2019 2020 2021 2022 Q3 2023 TTM<br>Improved mix raises EBITDA margins and contributes to long-term financial goals. |
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| New Products<br>INNOVATION AND NEW PRODUCTS<br>10% 10%<br>8%<br>10%<br>9%<br>2019 2020 2021 2022 Q3 2023 TTM<br>% of Net Sales<br>4%<br>*New product sales that were excluded because they no longer meet our definition of new products, which are defined as those<br>that will generate sales of at least $1 million per year within 4 years of launch and are still growing.<br>Sunset Sales*<br>11<br>New products and processes raise EBITDA margins and contribute to long-term financial goals.<br>3% |
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| • Create alternative product lines in close adjacencies<br>to our current business • Address a shortage of skilled labor<br>The company is making investments to<br>Commitment to innovation moves the company steadily up the value chain.<br>INNOVATION AND NEW PRODUCTS<br>In 2022 we launched our<br>Innovation Accelerator to:<br>Bring new products and services to<br>market faster<br>Spur internal growth in new capabilities,<br>products and processes<br>Drive faster scale and synergy<br>through rapid iteration<br>In 2023 we started the<br>UFP Venture Fund to:<br>Spur external growth through<br>late-stage development and early-stage<br>commercialization opportunities<br>Empower entrepreneurs to build<br>businesses, services, and products that<br>can transform our industry<br>Commit an investment of $100 million over<br>5 years to meet our development goals<br>UFP VENTURE FUND<br>12<br>• Develop value-added use of manufacturing residuals • Enhance our supply chains |
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| BUSINESS SEGMENTS<br>Commodity<br>50%<br>Value Added<br>50%<br>Commodity<br>23%<br>Value Added<br>77%<br>Commodity<br>17%<br>Value Added<br>83%<br>ProWood Group<br>$2.7 Billion<br>Deckorators<br>$317 Million<br>UFP Edge<br>$97 Million<br>Structural Packaging<br>$1.3 Billion<br>PalletOne<br>$557 Million<br>Protective Packaging<br>Solutions<br>$78 Million<br>Site Built<br>$1.0 Billion<br>Factory Built<br>$743 Million<br>Commercial<br>$288 Million<br>Concrete Forming<br>Solutions<br>$216 Million<br>$3.1B $1.9B $2.3B<br>TTM Net Sales TTM Net Sales TTM Net Sales<br>13<br>New products 10% of net sales New products 15% of net sales New products 5% of net sales |
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| Outdoor lifestyle products including<br>wood and vinyl fencing, landscape and<br>garden décor, picnic tables, pergolas,<br>trellises and more<br>Premium siding, pattern, trim;<br>interior accent wall products<br>Pressure-treated decking,<br>timbers, panels and<br>construction materials,<br>including fire-retardant<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, backed by<br>best-in-class in-store and e-commerce support<br>*Sales mix is 64% to Big Box customers and 36% to one- and two-step distribution as of FY 2022.<br>ProWoodLumber.com OutdoorEssentialProducts.com Deckorators.com UFPEdge.com<br>PROWOOD GROUP |
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| Innovative packaging solutions and components backed by a global manufacturing footprint<br>and the industry’s leading engineering, design, and integrated service teams<br>STRUCTURAL PACKAGING<br>Wood, steel, foam and corrugated for mixed material crates<br>and specialty containers; hard cases, lumber processing,<br>logistics solutions and onsite packaging services<br>PALLETONE<br>Machine-built pallets; design,<br>engineering and testing<br>PROTECTIVE PACKAGING<br>SOLUTIONS<br>Corrugated conversion, stretch/shrink films, labels,<br>strapping, hardware and software solutions for all<br>industries |
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| Floor, wall and roof panels, cabinet<br>components, countertops and<br>milled components for modular<br>and manufactured homes;<br>Components for RV/cargo trailer<br>and mobile offices.<br>Offsite prefabrication of value-add<br>formwork, aluminum horizontal<br>shoring and vertical forming<br>solutions for use in infrastructure;<br>elevated structural concrete<br>construction projects.<br>Roof trusses, wall panels, floor<br>systems and framing services for<br>residential and light commercial<br>builders. Sales are approx. 70%<br>single family, 30% multifamily.<br>Turnkey project management of<br>consumer environment and<br>architectural interiors; design,<br>development, engineering,<br>manufacturing, assembly,<br>distribution and installation.<br>Single-source designer and manufacturer of building components, concrete forms, framing,<br>exterior and interior finishing programs to make building processes run at maximum efficiency<br>IDXCorporation.com<br>questdisplays.com<br>UFPConstruction.com<br>SITE-BUILT FACTORY-BUILT COMMERCIAL CONCRETE FORMING |
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| FINANCIALS<br>17 |
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| OUR PERFORMANCE<br>Net Earnings (ACI) ROIC Net Debt to Adjusted EBITDA<br>2019<br>2021<br>2020<br>Unit sales<br>growth rate<br>$ Sales in<br>Millions<br>Growth rate<br>Strong track record of growth and performance improvement with<br>emphasis on improving gross profit dollars per unit sold and ROIC.<br>2022<br>Non-GAAP Financial Information: Please visit ufpinvestor.com for reconciliation to related GAAP measurement.<br>Net Sales Adjusted EBITDA Adjusted EBITDA Margin<br>18<br>Q3 2023<br>TTM<br>$4,416 $5,154 $8,636 $9,627 $7,608 $317 $431 $835 $1,097 $857 7.2% 8.4% 9.7% 11.4% 11.3%<br>$180 $247 $536 $693 $543 15.1% 21.0% 32.2% 34.6% 24.3% 0.0 0.0 0.1 0.0 0.0<br>19%<br>36%<br>94%<br>31%<br>21%<br>37%<br>117%<br>29%<br>(22)%<br>6% 6%<br>28%<br>2% (8)%<br>(22)% |
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| MANAGING LUMBER MARKET RISK Adjusted EBITDA Margin Lumber Market Volatility*<br>4.2%<br>34.5%<br>39.9% 39.9%<br>5.2%<br>7.2% 8.4%<br>9.7%<br>11.4% 11.3%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>2019 2020 2021 2022 Q3 2023 YTD<br>Lumber Market Volatility Adjusted EBITDA Margin<br>*Standard deviation of lumber prices divided by average weekly price.<br>Balanced business model mitigates lumber price volatility and drives stable profit per unit.<br>Level of lumber prices does<br>not drive profitability<br>Sequential trends impact<br>profit per unit<br>Balanced mix of variable and fixed-price products mitigate risk<br>Non-GAAP Financial Information: Please visit ufpinvestor.com for reconciliation to related GAAP measurement. |
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| NET SALES (in millions)<br>$4,416<br>$5,154<br>$8,636<br>$9,627<br>$7,608<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Consolidated<br>$1,499<br>$2,167<br>$3,418 $3,651<br>$3,072<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Retail Solutions<br>$1,086 $1,072<br>$2,148<br>$2,395<br>$1,947<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Packaging<br>$1,637 $1,696<br>$2,698<br>$3,144<br>$2,255<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Construction<br>Organic Unit<br>Sales Growth<br>Total Unit<br>Sales Growth Net Sales<br>Long-Term Goal: Unit sales growth of 5% to 7%, including small acquisitions<br>4%<br>(6)%<br>40%<br>(2)%<br>(4)%<br>(2)%<br>(8)%<br>5%<br>(1)%<br>(5)%<br>6%<br>(6)%<br>17%<br>6%<br>(16)%<br>6%<br>(7)%<br>14%<br>4%<br>(16)%<br>10%<br>25% 31%<br>0%<br>10% (4)%<br>24%<br>(4)%<br>(3)% (4)%<br>6% 6%<br>28%<br>2%<br>(8)% 5%<br>5% 4%<br>(1)% (9)% |
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| $317<br>$431<br>$835<br>$1,097<br>$857<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Consolidated<br>$75<br>$170 $151<br>$180<br>$206<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Retail Solutions<br>$101 $100<br>$300<br>$376<br>$278<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Packaging<br>$96 $98<br>$283<br>$422<br>$292<br>2019 2020 2021 2022 Q3 2023 TTM<br>UFP Construction<br>5.0%<br>7.8%<br>4.4% 4.9%<br>6.7%<br>9.3% 9.3%<br>14.0% 15.7% 14.3%<br>5.9% 5.8%<br>10.5%<br>13.4% 12.9%<br>ADJUSTED EBITDA (in millions)<br>7.2% 8.4% 9.7% 11.4% 11.3%<br>Non-GAAP Financial Information: Please visit ufpinvestor.com for reconciliation to related GAAP measurement.<br>MARGIN DRIVERS<br>New management structure<br>Value-added mix improvements, including new branded products, solutions selling, and value-based pricing<br>Operational improvements, transportation restructure, automation<br>LONG-TERM GOAL<br>Sustain a minimum 10% adjusted EBITDA margin<br>Adjusted EBITDA Margin<br>Adjusted EBITDA |
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| UFP Consolidated UFP Retail Solutions<br>UFP Packaging UFP Construction<br>ADJUSTED EBITDA GROWTH AND UNIT SALES<br>6% 6%<br>28%<br>2% (8)%<br>19%<br>36%<br>94%<br>31%<br>(22)%<br>-40%<br>-20%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>2019 2020 2021 2022 Q3 2023<br>TTM<br>4% (6)%<br>40%<br>(1)% (4)%<br>34%<br>(1)%<br>200%<br>25%<br>-30% (26)%<br>10%<br>50%<br>90%<br>130%<br>170%<br>210%<br>2019 2020 2021 2022 Q3 2023<br>TTM<br>10%<br>25% 31%<br>0% (4)%<br>18%<br>127%<br>(11)%<br>19% 14%<br>-40%<br>0%<br>40%<br>80%<br>120%<br>160%<br>2019 2020 2021 2022 Q3 2023<br>TTM<br>6% (6)% 17% 6% (16)%<br>14%<br>2%<br>189%<br>49%<br>(31)% -40%<br>0%<br>40%<br>80%<br>120%<br>160%<br>200%<br>2019 2020 2021 2022 Q3 2023<br>TTM Percent Growth Percent Growth Percent Growth Percent Growth<br>Long-Term Goal: Achieve Adjusted EBITDA growth exceeding unit sales growth<br>Adjusted EBITDA Growth Unit Sales Growth<br>Non-GAAP Financial Information: Please visit ufpinvestor.com for reconciliation to related GAAP measurement. |
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| BALANCED USE OF FREE CASH FLOW<br>Acquisitions to contribute<br>half of our total annual<br>unit sales growth<br>CapEx plan of $175–$200M in 2023<br>Opportunistic share repurchases and<br>to offset issuances<br>Increasing dividends<br>Return-focused approach to capital allocation<br>$349 $336<br>$512<br>$832<br>$712<br>$25 $31 $40 $59 $50 $29<br>$96 $62 $85<br>$89 $151<br>$174<br>$131<br>$39<br>$65<br>$476 $180<br>$52<br>Acquisitions<br>Capex<br>Share Buyback<br>Dividends<br>OCF<br>2019 2020 2021 2022<br>Operating Cash Flow and Capital Allocation<br>(in millions)<br>Q3 2023 YTD |
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| RETURN ON INVESTED CAPITAL<br>Hurdle Rate = 20% Percent 15.1%<br>21.0%<br>32.2%<br>34.6%<br>24.3%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>2019 2020 2021 2022 Q3 2023 TTM<br>WACC = 10%<br>Long-Term Goal: Earn an incremental return on new investment greater than our WACC<br>Non-GAAP Financial Information: Please visit ufpinvestor.com for reconciliation to related GAAP measurement. |
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| CASH CYCLE<br>Cash Cycle = Days Receivables Outstanding + Days Supply of Inventory – Days Payables Outstanding<br>65*<br>56*<br>64* 64* 65<br>0<br>10<br>20<br>30<br>40<br>50<br>60<br>70<br>80<br>2019 2020 2021 2022 Q3 2023 YTD Days<br>* Within the cash cycle, we’ve modified our calculation of days payables outstanding to be based on CGS and AP<br>payable balances in our monthly financial statements. In prior periods, our calculation was based on invoice data.<br>We’ve made this change to simplify the calculation and more easily integrate acquired operations into our financial<br>metrics. The prior year metrics have been restated for the new method which reduced days payables and increased<br>cash cycle by a range of 7 to 9 days from previously reported cash cycle figures.<br>Strong working capital management |
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| Process<br>Identify attractive growth runways in<br>each Business Unit under each Business<br>Segment and identify gaps in our<br>capabilities to pursue those runways.<br>Find new products and services to<br>speed our transformation from<br>commodity sales to value-added selling<br>solutions and brands.<br>Purpose<br>Achieve scale and synergy targets to<br>optimize growth, margins and returns.<br>Goal<br>Scale, low-cost production, automation;<br>increased customer wallet share.<br>Driving Deckorators recycle content;<br>scaling opportunity.<br>Securing supply and margin expansion for<br>growing Packaging business.<br>20 22<br>RECENT ACQUISITIONS |
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| CAPITAL STRUCTURE<br>Conservative capital structure ensures ample resources to pursue<br>investment opportunities with the highest return potential.<br>Net Debt to Total Capitalization<br>vs Maximum Target<br>Net Debt to Adjusted EBITDA<br>vs Maximum Target<br>0.0% 0.0%<br>2.5%<br>0.0% 0.0% 0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>2019 2020 2021 2022 Q3 2023<br>- - 0.1 - - 0.0<br>0.5<br>1.0<br>1.5<br>2.0<br>2.5<br>2019 2020 2021 2022 Q3 2023<br>Max target Net Debt to Total Capital<br>Net Debt to TTM Adjusted EBITDA Percent<br>Non-GAAP Financial Information: Please visit ufpinvestor.com for reconciliation to related GAAP measurement. |
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| STOCK PERFORMANCE<br>Peers include MAS, BLDR, TREX, LPX, SSD, BCC, PATK, AMWD, WRK, SON, GEF, ROCK<br>Returns are adjusted to account for dividend payouts. Source: FactSet as of 10/13/2023 closing prices<br>35.9%<br>19.7%<br>25.3%<br>22.0%<br>12.6%<br>35.7%<br>10.6%<br>14.5%<br>14.1%<br>9.2%<br>17.9%<br>7.2%<br>9.4% 9.8%<br>7.4%<br>12.1%<br>5.5% 5.8%<br>8.2%<br>6.4%<br>15.0%<br>6.4% 7.6% 9.0%<br>6.9%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>1 Year 3 Year 5 Year 10 Year 20 Year Annual % Return<br>Annualized Stock Return<br>Long-term returns outperform peers and indices.<br>UFPI Peer Group DJIA S&P500 Russell 2000 |
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| QUARTERLY RESULTS<br>29 |
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| NET SALES Q3 2023 (in millions)<br>$2,323<br>$1,914 $1,822<br>$2,044<br>$1,828<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Consolidated<br>$845<br>$691 $750<br>$920<br>$711<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Retail Solutions<br>$585<br>$522 $487 $488 $450<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Packaging<br>$777<br>$605<br>$516 $550 $584<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Construction<br>5%<br>(9)% (7)% (8)% (9)%<br>3%<br>(10)%<br>(8)% (8)% (9)%<br>6%<br>(9)%<br>(2)% 0%<br>(7)% 3%<br>(11)%<br>(2)% 0%<br>(7)%<br>1%<br>0%<br>(2)%<br>(9)%<br>(2)% (7)%<br>2%<br>(4)%<br>(7)%<br>(9)%<br>8%<br>(14)% (16)% (18)%<br>(13)%<br>8%<br>(14)% (16)% (18)%<br>(13)%<br>Organic Unit Sales<br>YOY Growth<br>Total Unit Sales<br>YOY Growth Net Sales<br>Market demand and sales normalizing from peak. |
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| ADJUSTED EBITDA Q3 2023 (in millions)<br>$274<br>$213 $202<br>$234 $208<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Consolidated<br>$36 $34<br>$49<br>$69<br>$54<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Retail Solutions<br>$90 $89<br>$67 $69<br>$54<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Packaging<br>$116<br>$84<br>$62 $69 $77<br>Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023<br>UFP Construction<br>11.8%<br>11.1% 11.1%<br>11.5% 11.4%<br>4.2% 5.0%<br>6.6% 7.5% 7.6%<br>15.4% 17.0%<br>13.7% 14.1%<br>11.9%<br>14.9% 13.9%<br>12.0% 12.5% 13.2%<br>Adjusted EBITDA Adjusted EBITDA Margin<br>Non-GAAP Financial Information: Please visit ufpinvestor.com for reconciliation to related GAAP measurement.<br>Margin levels reflect focus on value-added solutions.. |
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| 2801 E. Beltline Ave. NE<br>Grand Rapids, MI 49506<br>(800) 598-9663 - UFPI.com<br>THANK YOU<br>32 |
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