Universal Forest Posts Upbeat 2Q Earnings - Analyst Blog
18 Julho 2013 - 9:35AM
Zacks
Universal Forest Products Inc. (UFPI) reported
quite decent second quarter 2013 financial results on Jul 17, 2013.
The company rode high on the back of double-digits revenue growth
in its five market segments.
Adjusted net income in the quarter surged 19.1% over the year-ago
earnings. On a per share basis, earnings came in at 79 cents,
reflecting an increase of 17.9% over 67 cents reported in the
year-ago quarter and above the Zacks Consensus Estimate of 72
cents.
Revenue
Net sales in the second quarter were $738.4 million, up 24.4% year
over year as Universal Forest benefited from healthy growth in all
five end-markets. Lumber prices were also up roughly 15% on a
year-over-year basis.
End-market revenue of Universal Forest has been briefed below:
Retail Building Materials revenues (41% of second quarter total
gross sales) were up 12.9% year over year to $315.1 million.
Residential Construction sales (13%) improved 57.3% to $94.3
million. Commercial Construction and Concrete Forming sales (5%)
were $37.5 million, up 56.2% year over year. Industrial
packaging/components sales (26%) were $193.4 million, up 20.6% year
over year. Manufactured Housing sales (15%) were up 35.7% year over
year to $109.5 million.
Margins
In the second quarter 2013, Universal Forest’s cost of goods sold
represented 89.1% of total revenue, up 120 basis points year over
year while gross margin decreased by the same magnitude to settle
at 10.9%. Selling, general and administrative expenses were roughly
$53.1 million and accounted for 7.2% of total revenue.
Balance Sheet
During the first quarter 2013, Universal Forest’s cash position was
weak and after finally exiting the quarter, the company reported a
cash overdraft balance of $3.4 million. This, however, represents
an improvement of over $7.7 million overdraft reported at the end
of the previous quarter.
As far as the debt position was concerned, the Universal Forest's
long-term debt balance decreased 8.2% sequentially to $142.5
million.
Cash Flow
Net cash position from operating activities in the second quarter
2013 improved to $35.7 million as compared with $25.1 million in
the year-ago comparable quarter.
Capital spending, on the other hand, reflected a slight
year-over-year improvement of 69.6% and came in at $13.4
million.
Going forward, management of Universal Forest anticipates improving
its top-line growth through additions of new customers and products
to its portfolio. Also, operating margin enhancement remains a
prime area of focus for the company.
Universal Forest Products Inc. manufactures, treats, distributes,
and installs lumber, composite wood, plastic and other building
products.
The stock currently has a Zacks Rank #3 (Hold). Other stocks to
watch out for in the industry are Louisiana-Pacific
Corp. (LPX), Weyerhaeuser Co. (WY) and
Rayonier Inc. (RYN).
LOUISIANA PAC (LPX): Free Stock Analysis Report
RAYONIER INC (RYN): Free Stock Analysis Report
UNIVL FST PRODS (UFPI): Free Stock Analysis Report
WEYERHAEUSER CO (WY): Free Stock Analysis Report
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