GRAND RAPIDS, Mich.--(BUSINESS WIRE)--UFP Industries, Inc. (Nasdaq: UFPI) today announced second quarter 2024 results including net sales of $1.9 billion, net earnings attributable to controlling interest of $126 million, and earnings per diluted share of $2.05.
"Our second quarter results were in line with expectations in a more challenging business cycle, and I am grateful for the efforts of all of our UFP teammates to adapt to this environment and adjust capacity to meet demand," said Chairman and CEO Matthew J. Missad. "The weaker environment and expected near-term softness in demand have enabled us to more aggressively pursue our long-term expansion plans and improvement strategies. These efforts include investments in automation and consolidating operations to eliminate redundancies, lower costs and enhance the profitability of each of our facilities. Additionally, we are using our strong balance sheet to stay on offense by investing in acquisitions, new ventures, new value-added products, and organic expansion, while returning capital to shareholders through our recently increased dividend and share repurchase program. Our long-term outlook for growth remains strong."
Second Quarter 2024 Highlights (comparisons on a year-over-year basis except where noted):
- Net sales of $1.9 billion decreased 7 percent due to a 6 percent decrease in selling prices and a 1 percent decrease in organic unit sales. Quarter over quarter, the price of Southern Yellow Pine (SYP) decreased 19 percent, which contributed to our decrease in selling prices.
- New product sales of $134 million were 7.0 percent of total sales compared to 7.4 percent in the second quarter of 2023. Many products that were considered new products in 2023 were sunset and not included in 2024 totals.
- Net earnings attributable to controlling interests of $126 million represents a 16 percent decrease from last year.
- Adjusted EBITDA1 of $204 million represents a decrease of 13 percent while adjusted EBITDA margin1 declined 80 basis points to 10.7 percent.
| ________________________ |
1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below. |
Capital Allocation
UFP Industries maintains a strong balance sheet with $1.04 billion in cash on June 29, 2024, compared to $702 million in cash at the end of the second quarter of 2023. The company had approximately $2.3 billion of liquidity as of June 29, 2024. The company's return-focused approach to capital allocation includes the following:
- Acquisitions and Organic Growth. The company continues to pursue strategic acquisitions and will invest in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company is targeting capital investments in 2024 of up to $300 million for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators, Site Built, metal packaging, and machine-built pallet businesses. Approximately $200 million of projects have been approved in 2024 and another $96 million in projects are pending approval. Longer lead times for equipment and site selection in the case of new locations may delay some investments until 2025.
- Dividend payments. On July 24, 2024, the UFP Industries Board of Directors approved a quarterly dividend payment of $0.33 per share, a 10 percent increase over the quarterly dividend of $0.30 per share paid in September 2023. The dividend is payable on September 16, 2024, to shareholders of record on September 2, 2024.
- Share repurchases. The company was authorized to purchase up to $200 million of outstanding stock through July 31, 2024. From July 26, 2023, through the end of the second quarter of 2024, the company repurchased approximately 1,477,000 shares at an average price of $110.96 (a total of $163.9 million). On July 24, 2024, the Board of Directors for UFP Industries authorized the company to repurchase up to $200 million of shares through July 31, 2025.
By business segment, the company reported the following second quarter 2024 results:
UFP Retail Solutions
Net sales of $809 million, down 14 percent compared to the second quarter of 2023, while gross profit increased 3 percent. Sales performance was attributable to a 7 percent decline in selling prices, a 5 percent decline in organic unit sales, and a 2 percent decline due to the transfer of certain product sales to the Packaging and Construction segments. Organic unit sales decreased 2 percent for Deckorators, 6 percent for ProWood and 4 percent for UFP-Edge. Overall, unit sales decreased 5 percent with big box customers, a decline that largely correlates with an easing in repair and remodel activity, and were flat with independent retailers. Gross profit for the retail segment increased 3 percent to $127 million, primarily due to operational improvements, SKU rationalization, and better inventory positioning and utilization of our managed inventory programs.
UFP Packaging
Net sales of $435 million were down 11 percent compared to the second quarter of 2023, due to an 8 percent decrease in selling prices and a 6 percent decline in organic unit sales, offset by a 3 percent increase from the transfer of certain product sales from the Retail segment. A 10 percent increase in organic unit sales for PalletOne, due to market share gains, partially offset an 11 percent decline in organic unit sales for Protective Packaging and a 12 percent decline in organic unit sales for Structural Packaging, attributable to weaker demand. Gross profit for the packaging segment decreased 29 percent to $84 million due to competitive price pressure and lower sales volumes.
UFP Construction
Net sales of $575 million increased 4 percent compared to the second quarter of 2023 as a 4 percent decrease in selling prices was offset by a 7 percent increase in organic unit sales and a 1 percent increase from the transfer of certain product sales from the Retail segment. Organic unit sales increased in Factory Built, up 19 percent due to an increase in industry production, and Site Built, up 4 percent, we believe due to market share gains in both existing and new product categories. Gross profit for the construction segment decreased 8 percent to $126 million due to competitive price pressure.
Short-Term Outlook
Lumber Market: We continue to anticipate lumber prices will remain at lower levels in 2024 based on current supply and demand dynamics.
End Market Demand: We continue to follow key indicators and forecasts in the markets we serve and have revised our outlook for the balance of 2024. We anticipate demand will decrease in Retail by mid-single digits, decrease in Packaging by mid- to high-single digits, and increase in Construction by low- to mid-single digits, reflecting continued strength in our Factory Built business. Generally, we expect the soft demand and competitive price environment will continue for the remainder of the year, resulting in more challenging year-over-year unit sales and profitability comparisons. We believe market share gains will help offset lower demand in each of our segments for the balance of the year.
CONFERENCE CALL
UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 9 a.m. ET on Tuesday, July 30, 2024. The call will be hosted by Chairman and CEO Matthew J. Missad and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at https://www.ufpinvestor.com/news-filings-reportsevents---presentations. A replay of the call will be available through the website.
UFP Industries, Inc.
UFP Industries, Inc. is a holding company whose operating subsidiaries - UFP Packaging, UFP Construction and UFP Retail Solutions - manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #493 on the Fortune 500 and #128 on Industry Week's list of America's Largest Manufacturers. For more about UFP Industries, go to www.ufpi.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; government regulations, particularly involving environmental 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 are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.
Non-GAAP Financial Information
This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA, a non-GAAP financial measure, in order to evaluate historical and ongoing operations. Management believes that this non-GAAP financial measure is useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA is intended to supplement and should be read together with the financial results. Adjusted EBITDA should not be considered an alternative or substitute for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measure.
Net earnings
Net earnings refers to net earnings attributable to controlling interest unless specifically noted.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||||||||||
FOR THE THREE AND SIX MONTHS ENDED | |||||||||||||||||||||||||||||
JUNE 2024/2022 | |||||||||||||||||||||||||||||
Quarter Period | Year to Date | ||||||||||||||||||||||||||||
(In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
NET SALES | $ | 1,901,959 | 100.0 | % | $ | 2,043,918 | 100.0 | % | $ | 3,540,925 | 100.0 | % | $ | 3,866,394 | 100.0 | % | |||||||||||||
COST OF GOODS SOLD | 1,539,216 | 80.9 | 1,643,851 | 80.4 | 2,852,104 | 80.5 | 3,107,998 | 80.4 | |||||||||||||||||||||
GROSS PROFIT | 362,743 | 19.1 | 400,067 | 19.6 | 688,821 | 19.5 | 758,396 | 19.6 | |||||||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 203,155 | 10.7 | 204,703 | 10.0 | 395,214 | 11.2 | 399,386 | 10.3 | |||||||||||||||||||||
OTHER LOSSES (GAINS), NET | 554 | - | 1,867 | 0.1 | 750 | - | 3,805 | 0.1 | |||||||||||||||||||||
EARNINGS FROM OPERATIONS | 159,034 | 8.4 | 193,497 | 9.5 | 292,857 | 8.3 | 355,205 | 9.2 | |||||||||||||||||||||
INTEREST AND OTHER | (9,406 | ) | (0.5 | ) | (4,025 | ) | (0.2 | ) | (22,169 | ) | (0.6 | ) | (6,866 | ) | (0.2 | ) | |||||||||||||
EARNINGS BEFORE INCOME TAXES | 168,440 | 8.9 | 197,522 | 9.7 | 315,026 | 8.9 | 362,071 | 9.4 | |||||||||||||||||||||
INCOME TAXES | 42,208 | 2.2 | 46,734 | 2.3 | 67,695 | 1.9 | 85,705 | 2.2 | |||||||||||||||||||||
NET EARNINGS | 126,232 | 6.6 | 150,788 | 7.4 | 247,331 | 7.0 | 276,366 | 7.1 | |||||||||||||||||||||
LESS NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (302 | ) | - | (27 | ) | - | (610 | ) | - | 464 | - | ||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 125,930 | 6.6 | $ | 150,761 | 7.4 | $ | 246,721 | 7.0 | $ | 276,830 | 7.2 | |||||||||||||||||
EARNINGS PER SHARE - BASIC | $ | 2.05 | $ | 2.40 | $ | 4.01 | $ | 4.41 | |||||||||||||||||||||
EARNINGS PER SHARE - DILUTED | $ | 2.05 | $ | 2.36 | $ | 4.00 | $ | 4.35 | |||||||||||||||||||||
COMPREHENSIVE INCOME | $ | 118,252 | $ | 155,266 | $ | 238,221 | $ | 287,096 | |||||||||||||||||||||
LESS COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | 2,020 | (1,721 | ) | 1,429 | (3,481 | ) | |||||||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 120,272 | $ | 153,545 | $ | 239,650 | $ | 283,615 | |||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND | ||||||||||||||||||||||||
RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED | ||||||||||||||||||||||||
JUNE 2024/2023 | ||||||||||||||||||||||||
Quarter Period 2024 | ||||||||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||||||||
NET SALES | $ | 809,067 | $ | 435,204 | $ | 574,547 | $ | 81,470 | $ | 1,671 | $ | 1,901,959 | ||||||||||||
COST OF GOODS SOLD | 682,307 | 351,518 | 448,992 | 61,564 | (5,165 | ) | 1,539,216 | |||||||||||||||||
GROSS PROFIT | 126,760 | 83,686 | 125,555 | 19,906 | 6,836 | 362,743 | ||||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 65,291 | 52,996 | 73,307 | 14,576 | (3,015 | ) | 203,155 | |||||||||||||||||
OTHER | 1,686 | 1,174 | 237 | (2,166 | ) | (377 | ) | 554 | ||||||||||||||||
EARNINGS FROM OPERATIONS | 59,783 | 29,516 | 52,011 | 7,496 | 10,228 | 159,034 | ||||||||||||||||||
INTEREST AND OTHER | (178 | ) | 645 | (14 | ) | (1,202 | ) | (8,657 | ) | (9,406 | ) | |||||||||||||
EARNINGS BEFORE INCOME TAXES | 59,961 | 28,871 | 52,025 | 8,698 | 18,885 | 168,440 | ||||||||||||||||||
INCOME TAXES | 15,025 | 7,234 | 13,036 | 2,180 | 4,733 | 42,208 | ||||||||||||||||||
NET EARNINGS | $ | 44,936 | $ | 21,637 | $ | 38,989 | $ | 6,518 | $ | 14,152 | $ | 126,232 | ||||||||||||
INTEREST AND OTHER | (178 | ) | 645 | (14 | ) | (1,202 | ) | (8,657 | ) | (9,406 | ) | |||||||||||||
INCOME TAXES | 15,025 | 7,234 | 13,036 | 2,180 | 4,733 | 42,208 | ||||||||||||||||||
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS | 1,124 | 1,587 | 1,811 | 170 | 3,307 | 7,999 | ||||||||||||||||||
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS | 1,158 | 1,174 | 287 | 23 | (420 | ) | 2,222 | |||||||||||||||||
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY | - | - | (1,818 | ) | - | - | (1,818 | ) | ||||||||||||||||
DEPRECIATION EXPENSE | 7,124 | 8,467 | 5,621 | 828 | 8,584 | 30,624 | ||||||||||||||||||
AMORTIZATION OF INTANGIBLES | 998 | 2,216 | 703 | 1,503 | 433 | 5,853 | ||||||||||||||||||
ADJUSTED EBITDA | $ | 70,187 | $ | 42,960 | $ | 58,615 | $ | 10,020 | $ | 22,132 | $ | 203,914 | ||||||||||||
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES | 8.7 | % | 9.9 | % | 10.2 | % | 12.3 | % | * | 10.7 | % | |||||||||||||
* Not meaningful | ||||||||||||||||||||||||
Quarter Period 2023 | ||||||||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||||||||
NET SALES | $ | 938,630 | $ | 488,100 | $ | 550,464 | $ | 67,592 | $ | (868 | ) | $ | 2,043,918 | |||||||||||
COST OF GOODS SOLD | 815,808 | 369,865 | 413,260 | 47,337 | (2,419 | ) | 1,643,851 | |||||||||||||||||
GROSS PROFIT | 122,822 | 118,235 | 137,204 | 20,255 | 1,551 | 400,067 | ||||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 61,699 | 61,377 | 74,083 | 13,099 | (5,555 | ) | 204,703 | |||||||||||||||||
OTHER | 912 | (6 | ) | 1,162 | 370 | (571 | ) | 1,867 | ||||||||||||||||
EARNINGS FROM OPERATIONS | 60,211 | 56,864 | 61,959 | 6,786 | 7,677 | 193,497 | ||||||||||||||||||
INTEREST AND OTHER | 20 | 419 | (1 | ) | (2,260 | ) | (2,203 | ) | (4,025 | ) | ||||||||||||||
EARNINGS BEFORE INCOME TAXES | 60,191 | 56,445 | 61,960 | 9,046 | 9,880 | 197,522 | ||||||||||||||||||
INCOME TAXES | 14,243 | 13,355 | 14,660 | 2,138 | 2,338 | 46,734 | ||||||||||||||||||
NET EARNINGS | $ | 45,948 | $ | 43,090 | $ | 47,300 | $ | 6,908 | $ | 7,542 | $ | 150,788 | ||||||||||||
INTEREST AND OTHER | 20 | 419 | (1 | ) | (2,260 | ) | (2,203 | ) | (4,025 | ) | ||||||||||||||
INCOME TAXES | 14,243 | 13,355 | 14,660 | 2,138 | 2,338 | 46,734 | ||||||||||||||||||
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS | 1,315 | 1,703 | 1,686 | 225 | 3,309 | 8,238 | ||||||||||||||||||
NET (GAIN) LOSS ON DISPOSITION AND IMPAIRMENT OF ASSETS | (10 | ) | (7 | ) | 16 | 70 | (87 | ) | (18 | ) | ||||||||||||||
DEPRECIATION EXPENSE | 6,396 | 7,995 | 4,634 | 562 | 7,425 | 27,012 | ||||||||||||||||||
AMORTIZATION OF INTANGIBLES | 1,277 | 2,236 | 702 | 751 | 396 | 5,362 | ||||||||||||||||||
ADJUSTED EBITDA | $ | 69,189 | $ | 68,791 | $ | 68,997 | $ | 8,394 | $ | 18,720 | $ | 234,091 | ||||||||||||
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES | 7.4 | % | 14.1 | % | 12.5 | % | 12.4 | % | * | 11.5 | % | |||||||||||||
* Not meaningful | ||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND | ||||||||||||||||||||||||
RECONCILIATION TO ADJUSTED EBITDA BY SEGMENT (UNAUDITED) | ||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED | ||||||||||||||||||||||||
JUNE 2024/2023 | ||||||||||||||||||||||||
Year to Date 2024 | ||||||||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||||||||
NET SALES | $ | 1,437,832 | $ | 859,622 | $ | 1,092,443 | $ | 148,417 | $ | 2,611 | $ | 3,540,925 | ||||||||||||
COST OF GOODS SOLD | 1,209,948 | 690,496 | 852,553 | 110,566 | (11,459 | ) | 2,852,104 | |||||||||||||||||
GROSS PROFIT | 227,884 | 169,126 | 239,890 | 37,851 | 14,070 | 688,821 | ||||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 120,901 | 106,937 | 142,457 | 27,967 | (3,048 | ) | 395,214 | |||||||||||||||||
OTHER | 1,220 | 1,427 | 80 | (1,485 | ) | (492 | ) | 750 | ||||||||||||||||
EARNINGS FROM OPERATIONS | 105,763 | 60,762 | 97,353 | 11,369 | 17,610 | 292,857 | ||||||||||||||||||
INTEREST AND OTHER | (272 | ) | 1,233 | (25 | ) | (4,793 | ) | (18,312 | ) | (22,169 | ) | |||||||||||||
EARNINGS BEFORE INCOME TAXES | 106,035 | 59,529 | 97,378 | 16,162 | 35,922 | 315,026 | ||||||||||||||||||
INCOME TAXES | 23,036 | 12,564 | 20,921 | 3,478 | 7,696 | 67,695 | ||||||||||||||||||
NET EARNINGS | $ | 82,999 | $ | 46,965 | $ | 76,457 | $ | 12,684 | $ | 28,226 | $ | 247,331 | ||||||||||||
INTEREST AND OTHER | (272 | ) | 1,233 | (25 | ) | (4,793 | ) | (18,312 | ) | (22,169 | ) | |||||||||||||
INCOME TAXES | 23,036 | 12,564 | 20,921 | 3,478 | 7,696 | 67,695 | ||||||||||||||||||
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS | 2,812 | 3,776 | 4,276 | 469 | 7,943 | 19,276 | ||||||||||||||||||
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS | 886 | 1,427 | 286 | 14 | (622 | ) | 1,991 | |||||||||||||||||
GAIN FROM REDUCTION OF ESTIMATED EARNOUT LIABILITY | - | (37 | ) | (1,818 | ) | - | - | (1,855 | ) | |||||||||||||||
DEPRECIATION EXPENSE | 14,089 | 16,936 | 11,005 | 1,617 | 16,996 | 60,643 | ||||||||||||||||||
AMORTIZATION OF INTANGIBLES | 1,996 | 4,408 | 1,405 | 3,037 | 889 | 11,735 | ||||||||||||||||||
ADJUSTED EBITDA | $ | 125,546 | $ | 87,272 | $ | 112,507 | $ | 16,506 | $ | 42,816 | $ | 384,647 | ||||||||||||
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES | 8.7 | % | 10.2 | % | 10.3 | % | 11.1 | % | * | 10.9 | % | |||||||||||||
* Not meaningful | ||||||||||||||||||||||||
Year to Date 2023 | ||||||||||||||||||||||||
(In thousands) | Retail | Packaging | Construction | All Other | Corporate | Total | ||||||||||||||||||
NET SALES | $ | 1,699,924 | $ | 974,661 | $ | 1,066,057 |
| $ | 123,387 | $ | 2,365 | $ | 3,866,394 | |||||||||||
COST OF GOODS SOLD | 1,481,798 | 735,528 | 807,194 | 84,362 | (884 | ) | 3,107,998 | |||||||||||||||||
GROSS PROFIT | 218,126 | 239,133 | 258,863 | 39,025 | 3,249 | 758,396 | ||||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 115,612 | 127,629 | 141,421 | 26,063 | (11,339 | ) | 399,386 | |||||||||||||||||
OTHER | 2,045 | (92 | ) | 1,235 | 1,344 | (727 | ) | 3,805 | ||||||||||||||||
EARNINGS FROM OPERATIONS | 100,469 | 111,596 | 116,207 | 11,618 | 15,315 | 355,205 | ||||||||||||||||||
INTEREST AND OTHER | 41 | 1,002 | (6 | ) | (4,369 | ) | (3,534 | ) | (6,866 | ) | ||||||||||||||
EARNINGS BEFORE INCOME TAXES | 100,428 | 110,594 | 116,213 | 15,987 | 18,849 | 362,071 | ||||||||||||||||||
INCOME TAXES | 23,740 | 26,179 | 27,509 | 3,815 | 4,462 | 85,705 | ||||||||||||||||||
NET EARNINGS | $ | 76,688 | $ | 84,415 | $ | 88,704 | $ | 12,172 | $ | 14,387 | $ | 276,366 | ||||||||||||
INTEREST AND OTHER | 41 | 1,002 | (6 | ) | (4,369 | ) | (3,534 | ) | (6,866 | ) | ||||||||||||||
INCOME TAXES | 23,740 | 26,179 | 27,509 | 3,815 | 4,462 | 85,705 | ||||||||||||||||||
EXPENSES ASSOCIATED WITH SHARE-BASED COMPENSATION ARRANGEMENTS | 2,930 | 3,799 | 3,807 | 503 | 6,836 | 17,875 | ||||||||||||||||||
NET LOSS (GAIN) ON DISPOSITION AND IMPAIRMENT OF ASSETS | 26 | (93 | ) | (31 | ) | 60 | (144 | ) | (182 | ) | ||||||||||||||
DEPRECIATION EXPENSE | 12,230 | 15,677 | 9,262 | 961 | 14,656 | 52,786 | ||||||||||||||||||
AMORTIZATION OF INTANGIBLES | 2,332 | 4,482 | 1,499 | 1,283 | 775 | 10,371 | ||||||||||||||||||
ADJUSTED EBITDA | $ | 117,987 | $ | 135,461 | $ | 130,744 | $ | 14,425 | $ | 37,438 | $ | 436,055 | ||||||||||||
ADJUSTED EBITDA AS A PERCENTAGE OF NET SALES | 6.9 | % | 13.9 | % | 12.3 | % | 11.7 | % | * | 11.3 | % | |||||||||||||
* Not meaningful | ||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||
JUNE 2024/2023 | |||||||||||||||
(In thousands) | |||||||||||||||
ASSETS | 2024 | 2023 | LIABILITIES AND EQUITY | 2024 | 2023 | ||||||||||
CURRENT ASSETS | CURRENT LIABILITIES | ||||||||||||||
Cash and cash equivalents | $ | 1,041,341 | $ | 702,148 | Accounts payable | $ | 263,318 | $ | 264,408 | ||||||
Restricted cash | 761 | 761 | Accrued liabilities and other | 281,316 | 289,211 | ||||||||||
Investments | 36,740 | 38,459 | Current portion of debt | 43,754 | 2,385 | ||||||||||
Accounts receivable | 724,921 | 802,300 | |||||||||||||
Inventories | 684,813 | 821,187 | |||||||||||||
Other current assets | 65,453 | 50,203 | |||||||||||||
TOTAL CURRENT ASSETS | 2,554,029 | 2,415,058 | TOTAL CURRENT LIABILITIES | 588,388 | 556,004 | ||||||||||
OTHER ASSETS | 259,830 | 228,929 | LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | 232,979 | 274,821 | ||||||||||
INTANGIBLE ASSETS, NET | 505,138 | 481,942 | OTHER LIABILITIES | 180,686 | 171,349 | ||||||||||
TEMPORARY EQUITY | 18,931 | 6,772 | |||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 819,497 | 718,014 | SHAREHOLDERS' EQUITY | 3,117,510 | 2,834,997 | ||||||||||
TOTAL ASSETS | $ | 4,138,494 | $ | 3,843,943 | TOTAL LIABILITIES AND EQUITY | $ | 4,138,494 | $ | 3,843,943 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||
FOR THE SIX MONTHS ENDED | |||||||||
JUNE 2024/2023 | |||||||||
(In thousands) | 2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net earnings | $ | 247,331 | $ | 276,366 | |||||
Adjustments to reconcile net earnings to net cash used in operating activities: | |||||||||
Depreciation | 60,643 | 52,786 | |||||||
Amortization of intangibles | 11,735 | 10,371 | |||||||
Expense associated with share-based and grant compensation arrangements | 19,276 | 17,875 | |||||||
Deferred income taxes | 299 | (319 | ) | ||||||
Unrealized gain on investment and other | (1,825 | ) | (1,291 | ) | |||||
Equity in loss of investee | 1,236 | 1,005 | |||||||
Net loss (gain) on sale, disposition and impairment of assets | 1,991 | (182 | ) | ||||||
Gain from reduction of estimated earnout liability | (1,855 | ) | - | ||||||
Changes in: | |||||||||
Accounts receivable | (176,839 | ) | (183,717 | ) | |||||
Inventories | 41,684 | 154,413 | |||||||
Accounts payable and cash overdraft | 61,125 | 56,899 | |||||||
Accrued liabilities and other | (25,723 | ) | (63,142 | ) | |||||
NET CASH FROM OPERATING ACTIVITIES | 239,078 | 321,064 | |||||||
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||||||||
Purchases of property, plant, and equipment | (106,585 | ) | (84,981 | ) | |||||
Proceeds from sale of property, plant and equipment | 2,353 | 789 | |||||||
Acquisitions, net of cash received and purchase of equity method investment | - | 67 | |||||||
Purchases of investments | (16,416 | ) | (14,747 | ) | |||||
Proceeds from sale of investments | 9,284 | 11,486 | |||||||
Other | (7,674 | ) | 2,076 | ||||||
NET CASH USED IN INVESTING ACTIVITIES | (119,038 | ) | (85,310 | ) | |||||
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||||||||
Borrowings under revolving credit facilities | 12,354 | 11,026 | |||||||
Repayments under revolving credit facilities | (11,988 | ) | (11,869 | ) | |||||
Repayments of debt | - | (29 | ) | ||||||
Repayment of debt on behalf of investee | (6,303 | ) | - | ||||||
Contingent consideration payments and other | (4,779 | ) | (6,179 | ) | |||||
Proceeds from issuance of common stock | 1,470 | 1,448 | |||||||
Dividends paid to shareholders | (40,660 | ) | (31,149 | ) | |||||
Distributions to noncontrolling interest | (9,400 | ) | (4,859 | ) | |||||
Payments to taxing authorities in connection with shares directly withheld from employees | (17,838 | ) | - | ||||||
Repurchase of common stock | (119,362 | ) | (55,484 | ) | |||||
Other | 38 | 48 | |||||||
NET CASH USED IN FINANCING ACTIVITIES | (196,468 | ) | (97,047 | ) | |||||
Effect of exchange rate changes on cash | (3,726 | ) | 4,579 | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (80,154 | ) | 143,286 | ||||||
ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,122,256 | 559,623 | |||||||
ALL CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 1,042,102 | $ | 702,909 | |||||
Reconciliation of cash and cash equivalents and restricted cash: | |||||||||
Cash and cash equivalents, beginning of period | $ | 1,118,329 | $ | 559,397 | |||||
Restricted cash, beginning of period | 3,927 | 226 | |||||||
All cash and cash equivalents, beginning of period | $ | 1,122,256 | $ | 559,623 | |||||
Cash and cash equivalents, end of period | $ | 1,041,341 | $ | 702,148 | |||||
Restricted cash, end of period | 761 | 761 | |||||||
All cash and cash equivalents, end of period | $ | 1,042,102 | $ | 702,909 | |||||
Contacts
Dick Gauthier
VP of Investor Relations
(616) 365-1555
