8-K
UFP INDUSTRIES INC (UFPI)
8-K
2020-11-12
For: 2020-11-12
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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 12, 2020
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 2020 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 | 2020 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 12, 2020 | UFP INDUSTRIES, INC. | |
| | (Registrant) | |
| | | |
| | By: | /s/ Michael R. Cole |
| | | Michael R. Cole |
| | | Principal Financial Officer and Treasurer |
3
Exhibit 99.1
| 1<br>2020 Investor Relations Presentation |
|---|
| 2<br>UFP INDUSTRIES, INC.<br>2020<br>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<br>we 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<br>not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking<br>statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-<br>looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially<br>from forward-looking statements are the following: Fluctuations in the price of lumber; adverse or unusual weather conditions; adverse conditions in the<br>markets we serve; government regulations, particularly involving environmental and safety regulations; and our ability to make successful business<br>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<br>and 10-Q on file with the Securities and Exchange Commission. This presentation is the property of UFP Industries, Inc. Any redistribution, retransmission,<br>or reprinting of this presentation in any form without the express written consent of Universal is strictly prohibited. |
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| 3<br>With over 142 operations in 8 countries, the companies<br>of UFP Industries comprise one of the world’s largest<br>producers of wood and wood-alternative products for<br>retail, construction and industrial markets.<br>NO MISSION STATEMENTS. JUST PEOPLE ON A MISSION.™ |
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| 4 BUSINESS MODEL<br>OUR PERFORMANCE<br>2020<br>6.0%<br>EBITDA Margin<br>5.9% 7.2%<br>$3,941<br>Net Sales<br>$4,489 $4,416<br>$124<br>Net Earnings<br>$152 $182<br>0.60<br>Net Debt to EBITDA<br>0.76 0.0<br>$238<br>EBITDA<br>$266 $317<br>13.2%<br>ROIC<br>14.0% 15.1%<br>2017<br>2018<br>2019<br>Unit sales<br>growth rate 15%<br>6% 6%<br>13%<br>12%<br>19%<br>$ Sales in Millions<br>Growth rate<br>18%<br>23% 20% |
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| 5<br>Company founded in<br>Grand Rapids, MI<br>1955<br>INTRODUCTION<br>WHO WE ARE<br>Number of employees<br>worldwide<br>12,000<br>Number of facilities<br>worldwide<br>143<br>2020<br>2019 Revenue<br>$4.4B<br>2019 EBITDA<br>$317M $ |
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| 6 INTRODUCTION<br>WHERE WE ARE<br>2020<br>127<br>2<br>4<br>1<br>1<br>3 1<br>4 |
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| 7<br>Industrial - $1.1B<br>Big box, independents, & buying co-ops<br>Single and multi-family builders, commercial builders, concrete<br>formers, factory-built housing (mobile & modular homes) & RVs<br>Industrial packaging, packaging materials & OEM components<br>Based on 2019 Sales<br>INTRODUCTION<br>OUR CUSTOMERS<br>Retail - $1.5B<br>Construction - $1.6B<br>34%<br>2020<br>International - $0.2B<br>Overseas sourcing and selling with manufacturing and<br>design assets in six countries.<br>34%<br>36%<br>25%<br>5% |
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| 8 UFP INDUSTRIES<br>BUSINESS SEGMENTS |
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| 9<br>Since our founding through 2019,<br>we managed our people and plants<br>regionally. Beginning January 1, 2020,<br>we realigned our management teams<br>to focus specifically on business<br>segments rather than geographies.<br>At the same time, we changed our<br>name to better reflect the breadth of<br>our product mix.<br>The new structure will bring even<br>greater alignment with our customers<br>and allow for quicker introduction of<br>new, value-added products. It also will<br>help us more effectively allocate capital<br>to grow and improve our business.<br>UFP INDUSTRIES<br>MANAGEMENT (R)EVOLUTION<br>2020 and Beyond<br>Western Division Southern Division Northern Division<br>1955 - 2019 |
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| 10<br>We manufacture and sell on-trend brands to all major<br>building products retailers, while supporting our customers<br>with best-in-class in-store and e-commerce support.<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>2020<br>2019: ProWood - $821M, Outdoor Essentials - $237M, Deckorators - $192M, UFP Edge - $97M, Dimensions - $55M, Other – $147M |
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| 11<br>The industry’s leading innovator of composite<br>decking, railing and accessories.<br>Deckorators.com<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>2020 |
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| 12<br>Preserved lumber including timbers, decking,<br>construction materials and fire treated.<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>ProWoodLumber.com<br>2020 |
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| 13<br>UFPEdge.com<br>Premium siding, pattern, trim and accent wall products.<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>2020 |
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| 14<br>OutdoorEssentialProducts.com<br>Outdoor lifestyle products including wood and vinyl fencing, landscape and<br>garden décor, picnic tables, pergolas, trellises and more.<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>2020 |
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| 15<br>DimensionsDIY.com<br>DIY project panels, short lumber and boards, kits, packs, home<br>and décor retail products.<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>2020 |
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| 16<br>Supports the largest home improvement retailers in the<br>U.S. in multichannel online B2B2C sales strategies.<br>Provides thousands of curated products and assortments to support<br>customers’ distribution efforts such as direct-to-home, ship-to-store,<br>including UPS, USPS and LTL shipments.<br>YOY revenue growth in FY ‘19 was 34%.<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>2020<br>E-COMMERCE |
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| 17<br>Single-source provider of concrete forms, building<br>components, framing, exterior and interior finishing<br>programs designed to make building processes run<br>at maximum efficiency.<br>BUSINESS SEGMENTS<br>CONSTRUCTION<br>• SITE BUILT<br>•FACTORY-BUILT<br>• CONCRETE FORMING<br>•COMMERCIAL<br>2020<br>2019: Site Built - $714M, Factory Built - $485M, Commercial - $294M, Concrete Forming - $159M |
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| 18<br>SITE BUILT Roof trusses, wall panels, floor systems, doors and framing<br>services for residential and light commercial builders.<br>BUSINESS SEGMENTS<br>CONSTRUCTION<br>2020 |
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| 19<br>FACTORY-BUILT<br>Roof trusses, floor joists, laminated wall panels, cabinet components,<br>countertops and milled components for the<br>modular and manufactured home, RV and mobile office.<br>BUSINESS SEGMENTS<br>CONSTRUCTION<br>2020 |
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| 20<br>CONCRETE<br>FORMING<br>BUSINESS SEGMENTS<br>CONSTRUCTION<br>Custom radius forms, wall and column forms,<br>gang systems, lumber and panels.<br>2020 |
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| 21<br>Full-service, turnkey project management of consumer environment and<br>architectural interiors: Design, development, engineering, manufacturing,<br>assembly, distribution and installation.<br>BUSINESS SEGMENTS<br>CONSTRUCTION<br>COMMERCIAL<br>IDXCorporation.com<br>2020 |
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| 22<br>PP Delivering innovative structural packaging solutions backed<br>by the industry’s leading design team, a global<br>manufacturing footprint, and integrated hyper-responsive<br>service teams.<br>BUSINESS SEGMENTS<br>INDUSTRIAL<br>• TOTAL PACKAGING SOLUTIONS<br>• OEM COMPONENTS & PANELS<br>• PROTECTIVE PACKAGING<br>2020<br>Product categories: |
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| 23<br>Wood, steel and mixed material crates and specialty<br>containers, paper board, foils, labels and corrugate.<br>BUSINESS SEGMENTS<br>INDUSTRIAL<br>TOTAL PACKAGING<br>SOLUTIONS<br>2020 |
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| 24<br>Precision-milled hardwoods, softwoods, and panel goods<br>for bedding, furniture, shed, door and window companies.<br>BUSINESS SEGMENTS<br>INDUSTRIAL<br>OEM COMPONENTS<br>AND PANELS<br>2020 |
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| 25<br>Crates, cases, VCI’s, foam, mixed materials, design and testing. Protective<br>and preserving OEM products, serving all industries.<br>BUSINESS SEGMENTS<br>INDUSTRIAL<br>2020<br>PROTECTIVE<br>PACKAGING |
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| 26<br>UFP International sources and sells products in 65 countries, extending our<br>reach with multinational customers, while opening global opportunities<br>for growth. Additionally, we own manufacturing and design assets in<br>Canada, Mexico, Australia, China, Japan and UK.<br>BUSINESS SEGMENTS<br>INTERNATIONAL<br>2020 |
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| 27 BUSINESS MODEL<br>PRODUCT MIX EVOLUTION<br>2013 2019<br>Value-added<br>31%<br>58%<br>69%<br>42%<br>Commodity<br>Value-added as a percent of sales<br>Value-added Commodity<br>2013 2019<br>% of Sales<br>$540m<br>3%<br>12%<br>$85m<br>Sales<br>New products<br>% of Sales Sales<br>2020 |
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| 28 BUSINESS MODEL<br>HOW WE GOT HERE<br>2020<br>Founded in 1955.<br>Managers are required<br>to own stock.<br>Management team<br>has an average tenure<br>of 22 years.<br>2020 management<br>realignment from<br>geographic to business<br>segment.<br>International in scope,<br>regional in focus.<br>Local decision-making<br>for local customers.<br>Win-Loss record of 65-0.<br>(Yes, we’ve never<br>lost money.<br>Every plant is a profit<br>center whose managers<br>are bonused on ROI.<br>Greater customer<br>alignment, quicker to<br>market, more effective<br>capital allocation.<br>Entrepreneurial Stable Responsive Focused |
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| 29 BUSINESS MODEL<br>WHAT GETS IN OUR WAY<br>Availability of quality labor General economic trends<br>Fluctuation in commodity<br>lumber costs<br>Regulatory burdens<br>2020 |
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| 30 BUSINESS MODEL<br>LONG-TERM FINANCIAL GOALS<br>2020<br>Annual unit sales<br>growth that exceeds<br>positive U.S.<br>GDP growth by 4-6<br>percentage points<br>including acquisitions<br>EBITDA growth<br>exceeding unit<br>sales growth<br>Earn ROIC greater<br>than WACC |
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| 31<br>Although we have a low degree of<br>visibility into future demand, we<br>observe the following today:<br>Construction There was contraction in<br>demand in Q3 as net sales were flat,<br>increasing 0.4% YOY. Sales showed steady<br>improvement over the quarter, decreasing<br>by 3% in July and increasing 5% YOY in<br>September.<br>BUSINESS MODEL<br>COVID-19: FORWARD OUTLOOK<br>Industrial Many of our customers are still<br>impacted by the pandemic and Q3 net sales<br>remained relatively flat, increasing 4% YOY.<br>Demand had rebounded as the quarter<br>progressed with net sales down 5% in July<br>and increasing 32% YOY in September.<br>2020<br>Retail Saw robust demand in Q3 with net<br>sales up 76%. Growth accelerated over the<br>quarter with September up 97% YOY, and<br>strong demand continuing into October.<br>CapEx of $100M.<br>Other considerations for FY 2020:<br>A Cash Cycle consistent with historical<br>trends resulting in a reduction in WC<br>and increase in cash as sales decline.<br>Decremental operating margins in the<br>range of 10-15%. |
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| 32<br>Experienced<br>Leadership<br>BUSINESS MODEL<br>BUILT FOR TOUGH TIMES<br>2020<br>Our profit center<br>organization model<br>results in a stable of<br>seasoned leaders<br>skilled in managing<br>their business.<br>These profit centers<br>have highly variable<br>cost structures<br>allowing rapid<br>adjustment to<br>market demand and<br>have heavier<br>investments in<br>working capital, which<br>are turned into cash<br>flow in tough times.<br>A prudent and return-<br>focused approach to<br>capital allocation<br>provides us with a<br>strong balance sheet<br>and capital reserves<br>we use<br>opportunistically.<br>A compensation<br>structure that<br>emphasizes incentives<br>driven by ROIC,<br>resulting in wise and<br>quick decision-<br>making.<br>Balanced<br>Business Model<br>Flexible<br>Cost Structure<br>Conservative<br>Balance Sheet<br>Incentivized<br>By ROIC<br>A diversified<br>business portfolio<br>mitigates risk of a<br>decline in a single<br>market. |
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| 33<br>FINANCIALS |
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| 34 BUSINESS MODEL<br>LUMBER MARKET IMPACT ON OPERATING RESULTS<br>Goal: to earn a stable profit per unit<br>2020<br>We are less affected by the level of lumber<br>prices than the primary producers of lumber<br>are<br>Level of lumber prices affects gross profit and<br>SG&A to sales ratios<br>Profit per unit is primarily impacted by the<br>trend and volatility of the market<br>Balance in business and risk management<br>techniques mitigate impact on profitability |
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| 35<br>377<br>402 420<br>358<br>394<br>455<br>530<br>716<br>934<br>331<br>370 365 354 346<br>329<br>356 346<br>364 360<br>373 371<br>449<br>496 505 496<br>554<br>572<br>525<br>449 443<br>375<br>339 338<br> $300<br> $350<br> $400<br> $450<br> $500<br> $550<br> $600<br> $650<br> $700<br> $750<br> $800<br> $850<br> $900<br> $950<br>Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br>FINANCIALS<br>LUMBER MARKET<br>2020<br>Lumber Market (in $/MBF)<br>Average weekly random lengths framing lumber composite price.<br>2020<br>2019<br>2018 |
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| 36 FINANCIALS<br>LUMBER MARKET - SYP<br>2020<br>346 345<br>360<br>333<br>412<br>494<br>552<br>729<br>886<br>370<br>403 408 401<br>383<br>344<br>359 348 355 345 344 335<br>418<br>459<br>480 483<br>535<br>562<br>512<br>449 440<br>410<br>378 377<br> $300<br> $350<br> $400<br> $450<br> $500<br> $550<br> $600<br> $650<br> $700<br> $750<br> $800<br> $850<br> $900<br>Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br>Lumber Market (in $/MBF)<br>Average weekly Southern Yellow Pine composite price.<br>Purchases of SYP comprise almost two-thirds of our total lumber purchases.<br>2020<br>2019<br>2018 |
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| 37 FINANCIALS<br>2020<br>NET SALES<br>Long-Term Goal: Unit sales growth of 4% to 6% over positive GDP, including acquisitions<br>Net Sales (in millions)<br>Percent Change<br>$2,887<br>$3,240<br>$3,941<br>$4,489 $4,416<br>11% 11%<br>15%<br>6% 6%<br>7%<br>8%<br>4%<br>3%<br>5% 4%<br>3%<br>11%<br>3%<br>1%<br>0%<br>3%<br>6%<br>9%<br>12%<br>15%<br>18%<br>21%<br>24%<br>27%<br>30%<br> $-<br> $500<br> $1,000<br> $1,500<br> $2,000<br> $2,500<br> $3,000<br> $3,500<br> $4,000<br> $4,500<br> $5,000<br>Acquisition Unit<br>Sales Growth<br>Organic Unit<br>Sales Growth<br>Total Unit<br>Sales Growth<br>Net Sales<br>2015 2016 2017 2018 2019 |
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| 38 FINANCIALS<br>UNIT SALES AND PROFIT GROWTH<br>2020<br>Percent Growth<br>11% 11%<br>14%<br>6% 6%<br>23%<br>19%<br>15%<br>9%<br>16%<br>33%<br>18%<br>13%<br>12%<br>19%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>2015 2016 2017 2018 2019<br>Long-Term Goal: Achieve EBITDA growth exceeding unit sales growth.<br>Unit Sales<br>Growth<br>Gross Profit<br>Growth<br>EBITDA<br>Growth |
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| 39 FINANCIALS<br>EBITDA<br>2020<br>(1) Lumber Market Adjusted EBITDA Margin determined by restating 2016-2019 sales to be based upon 2015 lumber prices.<br>(2) Non-GAAP Financial Information: This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not<br>all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly<br>titled measures used by other companies. Management considers EBITDA, as well as lumber market adjusted EBITDA margin, as non-GAAP<br>alternative performance measures which may provide useful information to investors. See the company’s web site at ufpi.com for reconciliation<br>to related GAAP measurement.<br>EBITDA (in millions)<br>EBITDA Margin<br>Lumber Market<br>Adjusted EBITDA<br>Margin<br>EBITDA<br>Margin<br>EBITDA<br>$179.2 $210.7 $237.6 $265.6 $317.3<br>6.2%<br>6.5%<br>6.0%<br>5.9%<br>7.2%<br>6.2%<br>6.6%<br>6.3%<br>6.8%<br>7.7%<br>4.5%<br>5.5%<br>6.5%<br>7.5%<br>8.5%<br> $-<br> $25<br> $50<br> $75<br> $100<br> $125<br> $150<br> $175<br> $200<br> $225<br> $250<br> $275<br> $300<br> $325<br>2015 2016 2017 2018 2019 |
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| 40 BUSINESS MODEL<br>MARGIN IMPROVEMENT DRIVERS<br>2020<br>Operating leverage on sales growth<br>Product mix improvements<br>- New product and core line<br>innovation initiatives<br>- Conversion from commodity<br>to value-added<br>Strength of market demand<br>Automation initiatives |
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| 41 FINANCIALS<br>RETURN ON INVESTED CAPITAL<br>2020<br>Hurdle Rate = 12% 10% WACC and Minimum ROIC Goal<br>(1) See the company’s website at ufpi.com for reconciliation to related GAAP measurement.<br>Percent<br>11.2%<br>13.7% 13.2%<br>14.0%<br>15.1%<br>-2.00%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br>14.00%<br>16.00%<br>2015 2016 2017 2018 2019 |
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| 42 FINANCIALS<br>CASH CYCLE<br>2020<br>Cash Cycle = Days Receivables Outstanding + Days Supply of Inventory – Days Payables Outstanding<br>Days<br>53.2<br>47.9<br>52.4 54.1 55.7<br>0<br>10<br>20<br>30<br>40<br>50<br>60<br>70<br>2015 2016 2017 2018 2019 |
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| 43 FINANCIALS<br>NET DEBT<br>2020<br>$ In thousands Sep-20 Dec-19 Dec-18<br>3.89% series 2012 - A notes, Tranche A, due December 2022 $ 35,000 $ 35,000 $ 35,000<br>3.98% series 2012 - B notes, Tranche B, due December 2024 40,000 40,000 40,000<br>4.20% series 2018 - C notes, Tranche C, due June 2028 40,000 40,000 40,000<br>4.27% series 2018 - D notes, Tranche D, due June 2030 35,000 35,000 35,000<br>3.04% series 2018 - E notes, Tranche E, due August 2032 50,000 --<br>3.08% series 2018 - F notes, Tranche F, due August 2033 50,000 --<br>3.15% series 2018 - G notes, Tranche G, due August 2035 50,000 --<br>Revolving credit facility ($375 million total available) 4,385 3,976 42,490<br>Industrial Development Revenue Bonds 9,700 9,700 9,700<br>Other (58) 8 88<br>Less Cash Surplus (346,154) (168,336) (27,316)<br>Plus Cash Overdraft -- 27,367<br>Total Net Debt (Cash) $ (32,127) $ (4,652) $ 202,329<br>Unused debt capacity at 2X EBITDA less average debt $ 754,000 |
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| 44 FINANCIALS<br>CAPITAL STRUCTURE<br>2020<br>Percent<br>Net Debt to Total Capitalization<br>vs Maximum Target<br>Net Debt to EBITDA<br>vs Maximum Target<br>2.0%<br>6.6%<br>11.8% 11.5% 12.4%<br>0.0%<br>10.2%<br>12.8%<br>15.7%<br>0.0% 0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>2010 2011 2012 2013 2014 2015 2016 2017 2018 2019<br>0.17<br>0.74<br>1.10<br>0.80<br>0.72<br>-<br>0.46<br>0.60<br>0.76<br>- 0.0<br>0.5<br>1.0<br>1.5<br>2.0<br>2.5<br>2010 2011 2012 2013 2014 2015 2016 2017 2018 2019<br>Target Net Debt to Total Capital<br>Net Debt to EBITDA |
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| 45 BUSINESS MODEL<br>BALANCED USE OF FREE CASH FLOW<br>2020<br>Dividend yield approximately 1.08%<br>Share repurchases total over $29M YTD<br>(1.1M remaining share authorization)<br>Capex plan of $100M (expansionary plan of<br>$40M)<br>Long-term target for acquisitions to<br>contribute half of our total annual unit sales<br>growth |
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| 46 FINANCIALS<br>SELECTED INCOME STATEMENT DATA 3RD QUARTER<br>2020<br>(1) See the company’s website at ufpi.com for reconciliation to related GAAP measurement.<br>$ In thousands, except per share data Q3 2020 Q3 2019 % Change Unit % Change<br>Retail $ 700,522 $ 397,140 76.4 34.0<br>Industrial 282,124 271,667 3.8 -2.0<br>Construction 447,103 445,505 0.4 -9.0<br>All Other 56,478 48,714 15.9<br>Total Net Sales $ 1,486,227 $ 1,163,026 27.8 8.0<br>EBITDA (1) $ 125,689 $ 89,710 40.1<br>Net Earnings Attributable to Controlling Interest $ 77,204 $ 51,859 48.9<br>Diluted EPS $ 1.25 $ 0.84 48.8 |
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| 47 FINANCIALS<br>SELECTED INCOME STATEMENT DATA YTD RESULTS<br>2020<br>$ In thousands, except per share data YTD 2020 YTD 2019 % Change Unit % Change<br>Retail $ 1,661,873 $ 1,212,330 37.1 22.0<br>Industrial 763,046 837,671 -8.9 -10.0<br>Construction 1,187,429 1,225,467 -3.1 -8.0<br>All Other 147,942 142,501 3.8<br>Total Net Sales $ 3,760,290 $ 3,417,969 10.0 3.0<br>EBITDA (1) $ 313,170 $ 246,427 27.1<br>Net Earnings Attributable to Controlling Interest $ 183,826 $ 141,914 29.5<br>Diluted EPS $ 2.98 $ 2.30 29.6<br>(1) See the company’s website at ufpi.com for reconciliation to related GAAP measurement. |
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| 48<br>2801 E. Beltline Ave. NE<br>Grand Rapids, MI 49506<br>(800) 598-9663 - UFPI.com<br>THANK YOU. |
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