Universal Forest Products Inc.
(
UFPI
) reported its financial results for the fourth quarter and fiscal
year 2011 on February 15, 2012. Earnings per share, adjusted for
non-cash items, in the quarter were at break-even levels as
compared with a loss of 9 cents incurred in the year-ago quarter.
Results fared well as compared with the Zacks Consensus Estimate of
a loss of 4 cents.
Including the non-cash adjustments, fourth quarter weakened,
recording a 9 cent per share loss versus one cent earnings in the
year-ago quarter.
For the fiscal year 2011, reported earnings per share were 23
cents versus 89 cents reported in the previous year.
Revenue
Universal Forest's net sales in the fourth quarter jumped 11.4%
year over year to $422.0 million.
Retail Building Materials revenue (38% of fourth quarter total
gross sales) increased 7.7% year over year to $165.3 million.
Residential Construction sales (11.1%) declined 19.2% year over
year to $46.6 million. Commercial Construction and Concrete Forming
sales (5%) were $20.9 million, up 16.8% year over year.
Industrial sales (30.0%) were $128.6 million, up 22.4% year over
year. Manufactured Housing and Recreation Vehicles sales (16.0%)
were up 35.1% year over year to $67.3 million.
In the fiscal year 2011, total revenue plummeted 3.6% to $1.82
billion.
Margins
In the fourth quarter, Universal Forest's cost of goods sold
represented 88.8% of total revenue, up 100 basis points year over
year. Gross margin decreased by the same magnitude to 11.2%.
Selling, general and administrative expenses were roughly $45.5
million and represented 10.8% of total revenue, a decrease of 180
basis points year over year.
Balance Sheet
Exiting the fourth quarter, Universal Forest's cash and cash
equivalents were approximately $11.3 million versus $18.6 million
at the end of the previous quarter. Long-term debt reached
approximately $12.2 million from $52.2 million at the end of the
previous quarter.
Cash Flow
Cash flow from operating activities in the fiscal year 2011 was
$11.3 million, down from $29.3 million in 2010. Capital spending
jumped 21.6% to $32.9 million. Share repurchase activity during the
year was nil while dividend payments amounted to $7.8 million.
Outlook
Universal Forest expects challenging conditions to persist going
forward and thus refrained from providing any financial guidance
for the year.
Universal Forest Products Inc. manufacturers treats,
distributes, and installs lumber, composite wood, plastic and other
building products. The company faces stiff competition from its
peers like
Bluelinx Holdings Inc.
(
BXC
),
Builders FirstSource Inc.
(
BLDR
), and
Louisiana-Pacific Corp.
(
LPX
).
BUILDERS FIRSTS (
BLDR
): Free Stock Analysis Report
BLUELINX HLDGS (
BXC
): Free Stock Analysis Report
LOUISIANA PAC (
LPX
): Free Stock Analysis Report
UNIVL FST PRODS (
UFPI
): Free Stock Analysis Report
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