Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries UFP Industries Announces Fourth Quarter and Fiscal 2023 Results By: UFP Industries, Inc. via Business Wire February 20, 2024 at 08:00 AM EST Raising long-term goals for unit growth and profitability UFP Industries, Inc. (Nasdaq: UFPI) today announced net sales of $1.5 billion, net earnings attributable to controlling interest of $103 million, and earnings per diluted share of $1.62 for the fourth quarter of 2023. The company also announced net sales of $7.2 billion and earnings per diluted share of $8.07 for fiscal 2023. Fiscal 2023 results reflect the impact of one less week compared to fiscal 2022. “Our teammates produced solid results in 2023 and built the foundation for future growth in sales and profits,” said Chairman and CEO Matthew J. Missad. “Our operating margins and robust cash flow continue to surpass historic levels and allow us to remain on offense. We have the capital to make significant investments to grow, both organically and through acquisitions, while continuing to enhance our value-added product offering. This gives us the confidence to raise our long-term targets for growth and profitability.” “As we look to 2024, we expect market conditions to remain challenging in the first half of the year before improving in the second half,” Missad added. “We are committed to make each aspect of our business better as we work toward greater efficiencies, lower costs and more innovative products and services. The team’s commitment to winning contributed greatly to our success in 2023 and positions us well for the future.” Fourth Quarter 2023 Highlights (comparisons on a year-over-year basis; results reflect the impact of one less week of operating activity in the fourth quarter of 2023): Net sales of $1.52 billion decreased 20 percent due to a 10 percent decrease in prices and a 10 percent decrease in organic unit sales. The organic unit growth decline was due, in part, to the impact of one less week of operating activity in the fourth quarter of 2023, which resulted in a 6 percent unit decline. New product sales of $142 million decreased 18 percent, largely due to lower lumber prices. New product sales comprised 9.2 percent of total sales in 2023 compared to 8.9 percent last year. Earnings from operations of $124 million decreased 26 percent. Adjusted EBITDA1 of $166 million decreased 22 percent, and adjusted EBITDA1 margin declined 20 basis points to 10.9 percent. Fiscal 2023 Highlights (comparisons on a year-over-year basis; results reflect the impact of one less week of operating activity in 2023): Net sales of $7.2 billion decreased 25 percent from the record year of 2022 due to a 16 percent decrease in prices and a 9 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. New product sales were $716 million, down 6 percent, primarily due to lower lumber prices. New product sales comprised 9.7 percent of total sales in 2023 compared to 7.7 percent in 2022. Higher-margin, value-added product sales improved to 68 percent of total sales, up from 63 percent in 2022. Earnings from operations of $647 million decreased 32 percent. Diluted EPS of $8.07 decreased 26 percent. Adjusted EBITDA1 of $810 million decreased 26 percent. Adjusted EBITDA1 margin declined 20 basis points to 11.2 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 $841.9 million in net surplus cash (surplus cash less interest-bearing debt and cash overdraft) at year-end 2023, compared to $281.3 million in net surplus cash at year-end 2022. The company had more than $2.4 billion of liquidity at year-end 2023. The company’s return-focused approach to capital allocation includes the following: - Acquisitions. In September 2023, the company acquired Palets Suller Group, a leader in machine-built pallets based in Castellón, Spain, for approximately $52 million. The company continues to seek strategic acquisitions that drive long-term growth and margin improvements, enhance its capabilities, and create incremental value for its customers and shareholders. - Capital expenditures. The company invested approximately $180 million in capital expenditures during 2023 and is targeting $250 million to $300 million in capital expenditures for 2024. These investments include expanding capacity for its Deckorators line in the Northeastern U.S., its site-built construction business in the Western U.S., and its packaging business nationally. - Dividend payments. The company paid dividends of $68.2 million or $1.10 per share in 2023, a 16 percent increase per share over 2022. On February 1, 2024, the Board of Directors approved a quarterly dividend payment of $0.33 per share, payable on March 15, 2024, to shareholders of record on March 1, 2024. The dividend represents a 10 percent increase over the quarterly dividend of $0.30 per share paid in December 2023 and a 32 percent increase over the quarterly dividend of $0.25 per share paid in March 2023. - Share repurchases. The company repurchased approximately 975,000 shares of common stock for $82.1 million during 2023 (an average price of $84.27 per share). The company has remaining authorization to purchase up to $173 million in shares through July 31, 2024. By business segment, the company reported the following 2023 results: UFP Retail Solutions Fourth Quarter: $505.6 million in net sales, down 27 percent from the fourth quarter of 2022 due to a 9 percent decline in selling prices and an 18 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. The remaining organic unit decline was primarily due to the UFP-Edge and ProWood business units. Full Year: $2.87 billion in net sales, down 21 percent from 2022 due to a 15 percent decline in selling prices and a 6 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. UFP Packaging Fourth Quarter: $413.7 million in net sales, down 21 percent compared to the fourth quarter of 2022, due to a 10 percent decline in selling prices and an 11 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. Full Year: $1.84 billion in net sales, down 23 percent from the previous year due to a 17 percent decline in selling prices and a 6 percent decrease in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. UFP Construction Fourth Quarter: $511 million in net sales, down 16 percent from the fourth quarter of 2022, due to a 13 percent decline in selling prices and a 3 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. Full Year: $2.16 billion in net sales, down 31 percent from the previous year due to an 18 percent decline in selling prices and a 13 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. Short-Term Outlook Lumber Market: We anticipate lumber prices, which returned to more normalized levels in 2023 after pandemic-inflated highs, will remain at lower levels based on current supply and demand and follow more typical seasonal trends. End Market Demand: Based on key packaging indicators and forecasts for homebuilding and repair and remodeling, we anticipate demand for our packaging segment will be slightly down and demand for our construction and retail segments to be slightly up to slightly down in 2024. We expect softer demand and a more competitive price environment in the first half of 2024, with improvement during the second half of the year. Long-Term Goals The company’s five-year financial goals include: - Achieving compounded annual unit sales growth of 7-10 percent. Smaller tuck-in acquisitions are intended to contribute to this goal. - Realizing and sustaining a 12.5 percent adjusted EBITDA margin by continuing to enhance our capabilities and grow our portfolio of sales of value-added products, and by achieving operating improvements. - Earning an incremental return on investment over our cost of capital. - Maintaining a conservative capital structure. CONFERENCE CALL UFP Industries will conduct a conference call to discuss information included in this news release and related matters at 9 a.m. ET on Tuesday, February 20, 2024. The call will be hosted by 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 www.ufpi.com. 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 #403 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 TWELVE MONTHS ENDED DECEMBER 2023/2022 Quarter Period Year to Date (In thousands, except per share data) 2023 2022 2023 2022 NET SALES $ 1,524,353 100.0 % $ 1,913,697 100.0 % $ 7,218,384 100.0 % $ 9,626,739 100.0 % COST OF GOODS SOLD 1,228,211 80.6 1,556,227 81.3 5,799,446 80.3 7,837,278 81.4 GROSS PROFIT 296,142 19.4 357,470 18.7 1,418,938 19.7 1,789,461 18.6 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 171,598 11.3 183,064 9.6 766,633 10.6 832,079 8.6 OTHER LOSSES (GAINS), NET 547 — 5,857 0.3 5,771 0.1 7,198 0.1 EARNINGS FROM OPERATIONS 123,997 8.1 168,549 8.8 646,534 9.0 950,184 9.9 INTEREST AND OTHER (11,664 ) (0.8 ) (4,490 ) (0.2 ) (24,707 ) (0.3 ) 15,368 0.2 EARNINGS BEFORE INCOME TAXES 135,661 8.9 173,039 9.0 671,241 9.3 934,816 9.7 INCOME TAXES 31,753 2.1 41,160 2.2 156,784 2.2 229,852 2.4 NET EARNINGS 103,908 6.8 131,879 6.9 514,457 7.1 704,964 7.3 LESS NET LOSS (EARNINGS) ATTRIBUTABLE TO NONCONTROLLING INTEREST (461 ) — 710 — (145 ) — (12,313 ) (0.1 ) NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST $ 103,447 6.8 $ 132,589 6.9 $ 514,312 7.1 $ 692,651 7.2 EARNINGS PER SHARE - BASIC $ 1.65 $ 2.12 $ 8.21 $ 11.05 EARNINGS PER SHARE - DILUTED $ 1.62 $ 2.10 $ 8.07 $ 10.97 COMPREHENSIVE INCOME $ 111,775 $ 135,057 $ 529,293 $ 702,466 LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST (2,139 ) (195 ) (4,800 ) (13,485 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST $ 109,636 $ 134,862 $ 524,493 $ 688,981 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED) FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 2023/2022 Quarter Period 2023 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 505,559 $ 413,654 $ 511,042 $ 93,722 $ 376 $ 1,524,353 COST OF GOODS SOLD 444,357 331,488 390,983 69,288 (7,905 ) 1,228,211 GROSS PROFIT 61,202 82,166 120,059 24,434 8,281 296,142 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 38,971 39,170 62,393 13,252 17,812 171,598 OTHER 753 92 87 59 (444 ) 547 EARNINGS FROM OPERATIONS $ 21,478 $ 42,904 $ 57,579 $ 11,123 $ (9,087 ) $ 123,997 Quarter Period 2022 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 690,663 $ 522,171 $ 604,895 $ 99,425 $ (3,457 ) $ 1,913,697 COST OF GOODS SOLD 631,116 391,443 466,541 70,207 (3,080 ) 1,556,227 GROSS PROFIT 59,547 130,728 138,354 29,218 (377 ) 357,470 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 33,893 49,871 61,695 17,012 20,592 183,063 OTHER 183 (489 ) 1,259 4,844 60 5,857 EARNINGS FROM OPERATIONS $ 25,471 $ 81,346 $ 75,400 $ 7,362 $ (21,029 ) $ 168,550 Year to Date 2023 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 2,886,515 $ 1,838,200 $ 2,161,059 $ 328,884 $ 3,726 $ 7,218,384 COST OF GOODS SOLD 2,508,513 1,422,940 1,637,329 240,106 (9,442 ) 5,799,446 GROSS PROFIT 378,002 415,260 523,730 88,778 13,168 1,418,938 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 209,182 219,323 279,107 55,654 3,367 766,633 OTHER 757 8 1,277 4,482 (753 ) 5,771 EARNINGS FROM OPERATIONS $ 168,063 $ 195,929 $ 243,346 $ 28,642 $ 10,554 $ 646,534 Year to Date 2022 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 3,650,639 $ 2,394,681 $ 3,143,868 $ 431,611 $ 5,940 $ 9,626,739 COST OF GOODS SOLD 3,306,112 1,808,449 2,417,212 300,307 5,198 7,837,278 GROSS PROFIT 344,527 586,232 726,656 131,304 742 1,789,461 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 193,383 250,858 328,125 66,745 (7,032 ) 832,079 OTHER 817 129 1,097 5,929 (774 ) 7,198 EARNINGS FROM OPERATIONS $ 150,327 $ 335,245 $ 397,434 $ 58,630 $ 8,548 $ 950,184 ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2023/2022 Quarter Period 2023 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 16,426 $ 31,823 $ 44,104 $ 11,933 $ (378 ) $ 103,908 Interest and other 32 1,356 (3 ) (4,456 ) (8,593 ) (11,664 ) Income taxes 5,020 9,725 13,478 3,646 (116 ) 31,753 Expenses associated with share-based compensation arrangements 1,331 2,110 1,698 248 3,444 8,831 Net loss (gain) on disposition and impairment of assets 740 92 54 (27 ) (654 ) 205 Gain from reduction of estimated earnout liability (134 ) (3,475 ) — — — (3,609 ) Depreciation expense 6,353 8,958 5,354 1,520 7,946 30,131 Amortization of intangibles 1,101 2,192 702 1,642 365 6,002 Adjusted EBITDA $ 30,869 $ 52,781 $ 65,387 $ 14,506 $ 2,014 $ 165,557 Adjusted EBITDA as a Percentage of Net Sales 6.1 % 12.8 % 12.8 % 15.5 % 535.6 % 10.9 % Quarter Period 2022 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 19,357 $ 62,233 $ 57,451 $ 8,708 $ (15,870 ) $ 131,879 Interest and other 106 (572 ) (8 ) (4,038 ) 22 (4,490 ) Income taxes 6,008 19,685 17,957 2,692 (5,182 ) 41,160 Expenses associated with share-based compensation arrangements 1,153 1,283 1,185 148 4,408 8,177 Net loss (gain) on disposition and impairment of assets 168 (489 ) 1,287 342 (375 ) 933 Impairment of goodwill and other intangibles — — — 4,261 — 4,261 Depreciation expense 6,085 5,694 5,263 964 7,176 25,182 Amortization of intangibles 1,389 1,152 877 2,504 129 6,051 Adjusted EBITDA $ 34,266 $ 88,986 $ 84,012 $ 15,581 $ (9,692 ) $ 213,153 Adjusted EBITDA as a Percentage of Net Sales 5.0 % 17.0 % 13.9 % 15.7 % 280.4 % 11.1 % ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2023/2022 Year to Date 2023 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 128,712 $ 148,269 $ 186,603 $ 28,790 $ 22,083 $ 514,457 Interest and other 108 2,368 (10 ) (8,932 ) (18,241 ) (24,707 ) Income taxes 39,243 45,292 56,753 8,784 6,712 156,784 Expenses associated with share-based compensation arrangements 5,575 7,595 7,190 935 13,604 34,899 Net loss (gain) on disposition and impairment of assets 801 7 9 (167 ) (910 ) (260 ) Gain from reduction of estimated earnout liability (593 ) (1,784 ) (800 ) — (3,177 ) Depreciation expense 23,943 32,996 19,546 3,994 30,084 110,563 Amortization of intangibles 4,566 8,849 2,904 3,488 1,520 21,327 Adjusted EBITDA $ 202,355 $ 243,592 $ 272,195 $ 36,892 $ 54,852 $ 809,886 Adjusted EBITDA as a Percentage of Net Sales 7.0 % 13.3 % 12.6 % 11.2 % 1472.1 % 11.2 % Year to Date 2022 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 113,245 $ 251,187 $ 299,721 $ 42,844 $ (2,033 ) $ 704,964 Interest and other 162 2,158 (12 ) 1,817 11,243 15,368 Income taxes 36,920 81,900 97,725 13,969 (662 ) 229,852 Expenses associated with share-based compensation arrangements 4,476 5,125 4,882 614 13,059 28,156 Net loss (gain) on disposition and impairment of assets 785 131 1,349 347 (1,327 ) 1,285 Impairment of goodwill and other intangibles — — — 4,261 — 4,261 Depreciation expense 19,898 28,191 15,364 2,992 27,618 94,063 Amortization of intangibles 4,131 6,925 3,358 4,571 514 19,499 Adjusted EBITDA $ 179,617 $ 375,617 $ 422,387 $ 71,415 $ 48,412 $ 1,097,448 Adjusted EBITDA as a Percentage of Net Sales 4.9 % 15.7 % 13.4 % 16.5 % 815.0 % 11.4 % CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) DECEMBER 2023/2022 (In thousands) ASSETS 2023 2022 LIABILITIES AND EQUITY 2023 2022 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents $ 1,118,329 $ 559,397 Accounts payable $ 203,055 $ 206,941 Restricted cash 3,927 226 Accrued liabilities and other 322,021 401,952 Investments 34,745 36,013 Current portion of debt 42,900 2,942 Accounts receivable 549,499 617,604 Inventories 727,788 973,227 Other current assets 67,801 75,646 TOTAL CURRENT ASSETS 2,502,089 2,262,113 TOTAL CURRENT LIABILITIES 567,976 611,835 OTHER ASSETS 220,278 232,427 LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS 233,534 275,154 INTANGIBLE ASSETS, NET 518,853 488,551 OTHER LIABILITIES 166,067 181,381 TEMPORARY EQUITY 20,030 6,880 PROPERTY, PLANT AND EQUIPMENT, NET 776,577 688,982 SHAREHOLDERS' EQUITY 3,030,190 2,596,823 TOTAL ASSETS $ 4,017,797 $ 3,672,073 TOTAL LIABILITIES AND EQUITY $ 4,017,797 $ 3,672,073 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2023/2022 (In thousands) 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 514,457 $ 704,964 Adjustments to reconcile net earnings to net cash used in operating activities: Depreciation 110,563 94,063 Amortization of intangibles 21,327 19,499 Expense associated with share-based and grant compensation arrangements 34,899 28,156 Deferred income taxes (credit) (5,573 ) (16,289 ) Unrealized (gain) loss on investment and other (2,435 ) 5,768 Equity in loss of investee 2,367 2,183 Net (gain) loss on sale and disposition of assets (260 ) 1,285 Impairment of goodwill and other intangibles — 4,261 Gain from reduction of estimated earnout liability (3,177 ) — Changes in: Accounts receivable 81,659 130,704 Inventories 250,561 718 Accounts payable and cash overdraft (3,578 ) (137,907 ) Accrued liabilities and other (40,920 ) (5,838 ) NET CASH FROM OPERATING ACTIVITIES 959,890 831,567 CASH FLOWS USED IN INVESTING ACTIVITIES: Purchases of property, plant, and equipment (180,382 ) (174,124 ) Proceeds from sale of property, plant and equipment 3,291 3,805 Acquisitions, net of cash received and purchase of equity method investment (52,383 ) (180,151 ) Purchase of remaining noncontrolling interest of subsidiary (2,127 ) — Purchases of investments (29,806 ) (19,875 ) Proceeds from sale of investments 29,935 12,874 Other (8,692 ) 3,535 NET CASH USED IN INVESTING ACTIVITIES (240,164 ) (353,936 ) CASH FLOWS USED IN FINANCING ACTIVITIES: Borrowings under revolving credit facilities 28,462 605,101 Repayments under revolving credit facilities (30,125 ) (607,549 ) Repayments of debt (29 ) (38,719 ) Contingent consideration payments and other (6,262 ) (2,856 ) Proceeds from issuance of common stock 2,750 2,769 Dividends paid to shareholders (68,238 ) (58,860 ) Distributions to noncontrolling interest (7,355 ) (12,024 ) Repurchase of common stock (82,149 ) (95,774 ) Other 86 (2,298 ) NET CASH USED IN FINANCING ACTIVITIES (162,860 ) (210,210 ) Effect of exchange rate changes on cash 5,767 979 NET CHANGE IN CASH AND CASH EQUIVALENTS 562,633 268,400 ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 559,623 291,223 ALL CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,122,256 $ 559,623 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents, beginning of period $ 559,397 $ 286,662 Restricted cash, beginning of period 226 4,561 All cash and cash equivalents, beginning of period $ 559,623 $ 291,223 Cash and cash equivalents, end of period $ 1,118,329 $ 559,397 Restricted cash, end of period 3,927 226 All cash and cash equivalents, end of period $ 1,122,256 $ 559,623 View source version on businesswire.com: https://www.businesswire.com/news/home/20240220036821/en/Contacts Dick Gauthier VP of Investor Relations (616) 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UFP Industries Announces Fourth Quarter and Fiscal 2023 Results By: UFP Industries, Inc. via Business Wire February 20, 2024 at 08:00 AM EST Raising long-term goals for unit growth and profitability UFP Industries, Inc. (Nasdaq: UFPI) today announced net sales of $1.5 billion, net earnings attributable to controlling interest of $103 million, and earnings per diluted share of $1.62 for the fourth quarter of 2023. The company also announced net sales of $7.2 billion and earnings per diluted share of $8.07 for fiscal 2023. Fiscal 2023 results reflect the impact of one less week compared to fiscal 2022. “Our teammates produced solid results in 2023 and built the foundation for future growth in sales and profits,” said Chairman and CEO Matthew J. Missad. “Our operating margins and robust cash flow continue to surpass historic levels and allow us to remain on offense. We have the capital to make significant investments to grow, both organically and through acquisitions, while continuing to enhance our value-added product offering. This gives us the confidence to raise our long-term targets for growth and profitability.” “As we look to 2024, we expect market conditions to remain challenging in the first half of the year before improving in the second half,” Missad added. “We are committed to make each aspect of our business better as we work toward greater efficiencies, lower costs and more innovative products and services. The team’s commitment to winning contributed greatly to our success in 2023 and positions us well for the future.” Fourth Quarter 2023 Highlights (comparisons on a year-over-year basis; results reflect the impact of one less week of operating activity in the fourth quarter of 2023): Net sales of $1.52 billion decreased 20 percent due to a 10 percent decrease in prices and a 10 percent decrease in organic unit sales. The organic unit growth decline was due, in part, to the impact of one less week of operating activity in the fourth quarter of 2023, which resulted in a 6 percent unit decline. New product sales of $142 million decreased 18 percent, largely due to lower lumber prices. New product sales comprised 9.2 percent of total sales in 2023 compared to 8.9 percent last year. Earnings from operations of $124 million decreased 26 percent. Adjusted EBITDA1 of $166 million decreased 22 percent, and adjusted EBITDA1 margin declined 20 basis points to 10.9 percent. Fiscal 2023 Highlights (comparisons on a year-over-year basis; results reflect the impact of one less week of operating activity in 2023): Net sales of $7.2 billion decreased 25 percent from the record year of 2022 due to a 16 percent decrease in prices and a 9 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. New product sales were $716 million, down 6 percent, primarily due to lower lumber prices. New product sales comprised 9.7 percent of total sales in 2023 compared to 7.7 percent in 2022. Higher-margin, value-added product sales improved to 68 percent of total sales, up from 63 percent in 2022. Earnings from operations of $647 million decreased 32 percent. Diluted EPS of $8.07 decreased 26 percent. Adjusted EBITDA1 of $810 million decreased 26 percent. Adjusted EBITDA1 margin declined 20 basis points to 11.2 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 $841.9 million in net surplus cash (surplus cash less interest-bearing debt and cash overdraft) at year-end 2023, compared to $281.3 million in net surplus cash at year-end 2022. The company had more than $2.4 billion of liquidity at year-end 2023. The company’s return-focused approach to capital allocation includes the following: - Acquisitions. In September 2023, the company acquired Palets Suller Group, a leader in machine-built pallets based in Castellón, Spain, for approximately $52 million. The company continues to seek strategic acquisitions that drive long-term growth and margin improvements, enhance its capabilities, and create incremental value for its customers and shareholders. - Capital expenditures. The company invested approximately $180 million in capital expenditures during 2023 and is targeting $250 million to $300 million in capital expenditures for 2024. These investments include expanding capacity for its Deckorators line in the Northeastern U.S., its site-built construction business in the Western U.S., and its packaging business nationally. - Dividend payments. The company paid dividends of $68.2 million or $1.10 per share in 2023, a 16 percent increase per share over 2022. On February 1, 2024, the Board of Directors approved a quarterly dividend payment of $0.33 per share, payable on March 15, 2024, to shareholders of record on March 1, 2024. The dividend represents a 10 percent increase over the quarterly dividend of $0.30 per share paid in December 2023 and a 32 percent increase over the quarterly dividend of $0.25 per share paid in March 2023. - Share repurchases. The company repurchased approximately 975,000 shares of common stock for $82.1 million during 2023 (an average price of $84.27 per share). The company has remaining authorization to purchase up to $173 million in shares through July 31, 2024. By business segment, the company reported the following 2023 results: UFP Retail Solutions Fourth Quarter: $505.6 million in net sales, down 27 percent from the fourth quarter of 2022 due to a 9 percent decline in selling prices and an 18 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. The remaining organic unit decline was primarily due to the UFP-Edge and ProWood business units. Full Year: $2.87 billion in net sales, down 21 percent from 2022 due to a 15 percent decline in selling prices and a 6 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. UFP Packaging Fourth Quarter: $413.7 million in net sales, down 21 percent compared to the fourth quarter of 2022, due to a 10 percent decline in selling prices and an 11 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. Full Year: $1.84 billion in net sales, down 23 percent from the previous year due to a 17 percent decline in selling prices and a 6 percent decrease in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. UFP Construction Fourth Quarter: $511 million in net sales, down 16 percent from the fourth quarter of 2022, due to a 13 percent decline in selling prices and a 3 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. Full Year: $2.16 billion in net sales, down 31 percent from the previous year due to an 18 percent decline in selling prices and a 13 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. Short-Term Outlook Lumber Market: We anticipate lumber prices, which returned to more normalized levels in 2023 after pandemic-inflated highs, will remain at lower levels based on current supply and demand and follow more typical seasonal trends. End Market Demand: Based on key packaging indicators and forecasts for homebuilding and repair and remodeling, we anticipate demand for our packaging segment will be slightly down and demand for our construction and retail segments to be slightly up to slightly down in 2024. We expect softer demand and a more competitive price environment in the first half of 2024, with improvement during the second half of the year. Long-Term Goals The company’s five-year financial goals include: - Achieving compounded annual unit sales growth of 7-10 percent. Smaller tuck-in acquisitions are intended to contribute to this goal. - Realizing and sustaining a 12.5 percent adjusted EBITDA margin by continuing to enhance our capabilities and grow our portfolio of sales of value-added products, and by achieving operating improvements. - Earning an incremental return on investment over our cost of capital. - Maintaining a conservative capital structure. CONFERENCE CALL UFP Industries will conduct a conference call to discuss information included in this news release and related matters at 9 a.m. ET on Tuesday, February 20, 2024. The call will be hosted by 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 www.ufpi.com. 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 #403 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 TWELVE MONTHS ENDED DECEMBER 2023/2022 Quarter Period Year to Date (In thousands, except per share data) 2023 2022 2023 2022 NET SALES $ 1,524,353 100.0 % $ 1,913,697 100.0 % $ 7,218,384 100.0 % $ 9,626,739 100.0 % COST OF GOODS SOLD 1,228,211 80.6 1,556,227 81.3 5,799,446 80.3 7,837,278 81.4 GROSS PROFIT 296,142 19.4 357,470 18.7 1,418,938 19.7 1,789,461 18.6 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 171,598 11.3 183,064 9.6 766,633 10.6 832,079 8.6 OTHER LOSSES (GAINS), NET 547 — 5,857 0.3 5,771 0.1 7,198 0.1 EARNINGS FROM OPERATIONS 123,997 8.1 168,549 8.8 646,534 9.0 950,184 9.9 INTEREST AND OTHER (11,664 ) (0.8 ) (4,490 ) (0.2 ) (24,707 ) (0.3 ) 15,368 0.2 EARNINGS BEFORE INCOME TAXES 135,661 8.9 173,039 9.0 671,241 9.3 934,816 9.7 INCOME TAXES 31,753 2.1 41,160 2.2 156,784 2.2 229,852 2.4 NET EARNINGS 103,908 6.8 131,879 6.9 514,457 7.1 704,964 7.3 LESS NET LOSS (EARNINGS) ATTRIBUTABLE TO NONCONTROLLING INTEREST (461 ) — 710 — (145 ) — (12,313 ) (0.1 ) NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST $ 103,447 6.8 $ 132,589 6.9 $ 514,312 7.1 $ 692,651 7.2 EARNINGS PER SHARE - BASIC $ 1.65 $ 2.12 $ 8.21 $ 11.05 EARNINGS PER SHARE - DILUTED $ 1.62 $ 2.10 $ 8.07 $ 10.97 COMPREHENSIVE INCOME $ 111,775 $ 135,057 $ 529,293 $ 702,466 LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST (2,139 ) (195 ) (4,800 ) (13,485 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST $ 109,636 $ 134,862 $ 524,493 $ 688,981 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED) FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 2023/2022 Quarter Period 2023 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 505,559 $ 413,654 $ 511,042 $ 93,722 $ 376 $ 1,524,353 COST OF GOODS SOLD 444,357 331,488 390,983 69,288 (7,905 ) 1,228,211 GROSS PROFIT 61,202 82,166 120,059 24,434 8,281 296,142 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 38,971 39,170 62,393 13,252 17,812 171,598 OTHER 753 92 87 59 (444 ) 547 EARNINGS FROM OPERATIONS $ 21,478 $ 42,904 $ 57,579 $ 11,123 $ (9,087 ) $ 123,997 Quarter Period 2022 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 690,663 $ 522,171 $ 604,895 $ 99,425 $ (3,457 ) $ 1,913,697 COST OF GOODS SOLD 631,116 391,443 466,541 70,207 (3,080 ) 1,556,227 GROSS PROFIT 59,547 130,728 138,354 29,218 (377 ) 357,470 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 33,893 49,871 61,695 17,012 20,592 183,063 OTHER 183 (489 ) 1,259 4,844 60 5,857 EARNINGS FROM OPERATIONS $ 25,471 $ 81,346 $ 75,400 $ 7,362 $ (21,029 ) $ 168,550 Year to Date 2023 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 2,886,515 $ 1,838,200 $ 2,161,059 $ 328,884 $ 3,726 $ 7,218,384 COST OF GOODS SOLD 2,508,513 1,422,940 1,637,329 240,106 (9,442 ) 5,799,446 GROSS PROFIT 378,002 415,260 523,730 88,778 13,168 1,418,938 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 209,182 219,323 279,107 55,654 3,367 766,633 OTHER 757 8 1,277 4,482 (753 ) 5,771 EARNINGS FROM OPERATIONS $ 168,063 $ 195,929 $ 243,346 $ 28,642 $ 10,554 $ 646,534 Year to Date 2022 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 3,650,639 $ 2,394,681 $ 3,143,868 $ 431,611 $ 5,940 $ 9,626,739 COST OF GOODS SOLD 3,306,112 1,808,449 2,417,212 300,307 5,198 7,837,278 GROSS PROFIT 344,527 586,232 726,656 131,304 742 1,789,461 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 193,383 250,858 328,125 66,745 (7,032 ) 832,079 OTHER 817 129 1,097 5,929 (774 ) 7,198 EARNINGS FROM OPERATIONS $ 150,327 $ 335,245 $ 397,434 $ 58,630 $ 8,548 $ 950,184 ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2023/2022 Quarter Period 2023 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 16,426 $ 31,823 $ 44,104 $ 11,933 $ (378 ) $ 103,908 Interest and other 32 1,356 (3 ) (4,456 ) (8,593 ) (11,664 ) Income taxes 5,020 9,725 13,478 3,646 (116 ) 31,753 Expenses associated with share-based compensation arrangements 1,331 2,110 1,698 248 3,444 8,831 Net loss (gain) on disposition and impairment of assets 740 92 54 (27 ) (654 ) 205 Gain from reduction of estimated earnout liability (134 ) (3,475 ) — — — (3,609 ) Depreciation expense 6,353 8,958 5,354 1,520 7,946 30,131 Amortization of intangibles 1,101 2,192 702 1,642 365 6,002 Adjusted EBITDA $ 30,869 $ 52,781 $ 65,387 $ 14,506 $ 2,014 $ 165,557 Adjusted EBITDA as a Percentage of Net Sales 6.1 % 12.8 % 12.8 % 15.5 % 535.6 % 10.9 % Quarter Period 2022 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 19,357 $ 62,233 $ 57,451 $ 8,708 $ (15,870 ) $ 131,879 Interest and other 106 (572 ) (8 ) (4,038 ) 22 (4,490 ) Income taxes 6,008 19,685 17,957 2,692 (5,182 ) 41,160 Expenses associated with share-based compensation arrangements 1,153 1,283 1,185 148 4,408 8,177 Net loss (gain) on disposition and impairment of assets 168 (489 ) 1,287 342 (375 ) 933 Impairment of goodwill and other intangibles — — — 4,261 — 4,261 Depreciation expense 6,085 5,694 5,263 964 7,176 25,182 Amortization of intangibles 1,389 1,152 877 2,504 129 6,051 Adjusted EBITDA $ 34,266 $ 88,986 $ 84,012 $ 15,581 $ (9,692 ) $ 213,153 Adjusted EBITDA as a Percentage of Net Sales 5.0 % 17.0 % 13.9 % 15.7 % 280.4 % 11.1 % ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2023/2022 Year to Date 2023 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 128,712 $ 148,269 $ 186,603 $ 28,790 $ 22,083 $ 514,457 Interest and other 108 2,368 (10 ) (8,932 ) (18,241 ) (24,707 ) Income taxes 39,243 45,292 56,753 8,784 6,712 156,784 Expenses associated with share-based compensation arrangements 5,575 7,595 7,190 935 13,604 34,899 Net loss (gain) on disposition and impairment of assets 801 7 9 (167 ) (910 ) (260 ) Gain from reduction of estimated earnout liability (593 ) (1,784 ) (800 ) — (3,177 ) Depreciation expense 23,943 32,996 19,546 3,994 30,084 110,563 Amortization of intangibles 4,566 8,849 2,904 3,488 1,520 21,327 Adjusted EBITDA $ 202,355 $ 243,592 $ 272,195 $ 36,892 $ 54,852 $ 809,886 Adjusted EBITDA as a Percentage of Net Sales 7.0 % 13.3 % 12.6 % 11.2 % 1472.1 % 11.2 % Year to Date 2022 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 113,245 $ 251,187 $ 299,721 $ 42,844 $ (2,033 ) $ 704,964 Interest and other 162 2,158 (12 ) 1,817 11,243 15,368 Income taxes 36,920 81,900 97,725 13,969 (662 ) 229,852 Expenses associated with share-based compensation arrangements 4,476 5,125 4,882 614 13,059 28,156 Net loss (gain) on disposition and impairment of assets 785 131 1,349 347 (1,327 ) 1,285 Impairment of goodwill and other intangibles — — — 4,261 — 4,261 Depreciation expense 19,898 28,191 15,364 2,992 27,618 94,063 Amortization of intangibles 4,131 6,925 3,358 4,571 514 19,499 Adjusted EBITDA $ 179,617 $ 375,617 $ 422,387 $ 71,415 $ 48,412 $ 1,097,448 Adjusted EBITDA as a Percentage of Net Sales 4.9 % 15.7 % 13.4 % 16.5 % 815.0 % 11.4 % CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) DECEMBER 2023/2022 (In thousands) ASSETS 2023 2022 LIABILITIES AND EQUITY 2023 2022 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents $ 1,118,329 $ 559,397 Accounts payable $ 203,055 $ 206,941 Restricted cash 3,927 226 Accrued liabilities and other 322,021 401,952 Investments 34,745 36,013 Current portion of debt 42,900 2,942 Accounts receivable 549,499 617,604 Inventories 727,788 973,227 Other current assets 67,801 75,646 TOTAL CURRENT ASSETS 2,502,089 2,262,113 TOTAL CURRENT LIABILITIES 567,976 611,835 OTHER ASSETS 220,278 232,427 LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS 233,534 275,154 INTANGIBLE ASSETS, NET 518,853 488,551 OTHER LIABILITIES 166,067 181,381 TEMPORARY EQUITY 20,030 6,880 PROPERTY, PLANT AND EQUIPMENT, NET 776,577 688,982 SHAREHOLDERS' EQUITY 3,030,190 2,596,823 TOTAL ASSETS $ 4,017,797 $ 3,672,073 TOTAL LIABILITIES AND EQUITY $ 4,017,797 $ 3,672,073 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2023/2022 (In thousands) 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 514,457 $ 704,964 Adjustments to reconcile net earnings to net cash used in operating activities: Depreciation 110,563 94,063 Amortization of intangibles 21,327 19,499 Expense associated with share-based and grant compensation arrangements 34,899 28,156 Deferred income taxes (credit) (5,573 ) (16,289 ) Unrealized (gain) loss on investment and other (2,435 ) 5,768 Equity in loss of investee 2,367 2,183 Net (gain) loss on sale and disposition of assets (260 ) 1,285 Impairment of goodwill and other intangibles — 4,261 Gain from reduction of estimated earnout liability (3,177 ) — Changes in: Accounts receivable 81,659 130,704 Inventories 250,561 718 Accounts payable and cash overdraft (3,578 ) (137,907 ) Accrued liabilities and other (40,920 ) (5,838 ) NET CASH FROM OPERATING ACTIVITIES 959,890 831,567 CASH FLOWS USED IN INVESTING ACTIVITIES: Purchases of property, plant, and equipment (180,382 ) (174,124 ) Proceeds from sale of property, plant and equipment 3,291 3,805 Acquisitions, net of cash received and purchase of equity method investment (52,383 ) (180,151 ) Purchase of remaining noncontrolling interest of subsidiary (2,127 ) — Purchases of investments (29,806 ) (19,875 ) Proceeds from sale of investments 29,935 12,874 Other (8,692 ) 3,535 NET CASH USED IN INVESTING ACTIVITIES (240,164 ) (353,936 ) CASH FLOWS USED IN FINANCING ACTIVITIES: Borrowings under revolving credit facilities 28,462 605,101 Repayments under revolving credit facilities (30,125 ) (607,549 ) Repayments of debt (29 ) (38,719 ) Contingent consideration payments and other (6,262 ) (2,856 ) Proceeds from issuance of common stock 2,750 2,769 Dividends paid to shareholders (68,238 ) (58,860 ) Distributions to noncontrolling interest (7,355 ) (12,024 ) Repurchase of common stock (82,149 ) (95,774 ) Other 86 (2,298 ) NET CASH USED IN FINANCING ACTIVITIES (162,860 ) (210,210 ) Effect of exchange rate changes on cash 5,767 979 NET CHANGE IN CASH AND CASH EQUIVALENTS 562,633 268,400 ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 559,623 291,223 ALL CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,122,256 $ 559,623 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents, beginning of period $ 559,397 $ 286,662 Restricted cash, beginning of period 226 4,561 All cash and cash equivalents, beginning of period $ 559,623 $ 291,223 Cash and cash equivalents, end of period $ 1,118,329 $ 559,397 Restricted cash, end of period 3,927 226 All cash and cash equivalents, end of period $ 1,122,256 $ 559,623 View source version on businesswire.com: https://www.businesswire.com/news/home/20240220036821/en/Contacts Dick Gauthier VP of Investor Relations (616) 365-1555
UFP Industries, Inc. (Nasdaq: UFPI) today announced net sales of $1.5 billion, net earnings attributable to controlling interest of $103 million, and earnings per diluted share of $1.62 for the fourth quarter of 2023. The company also announced net sales of $7.2 billion and earnings per diluted share of $8.07 for fiscal 2023. Fiscal 2023 results reflect the impact of one less week compared to fiscal 2022. “Our teammates produced solid results in 2023 and built the foundation for future growth in sales and profits,” said Chairman and CEO Matthew J. Missad. “Our operating margins and robust cash flow continue to surpass historic levels and allow us to remain on offense. We have the capital to make significant investments to grow, both organically and through acquisitions, while continuing to enhance our value-added product offering. This gives us the confidence to raise our long-term targets for growth and profitability.” “As we look to 2024, we expect market conditions to remain challenging in the first half of the year before improving in the second half,” Missad added. “We are committed to make each aspect of our business better as we work toward greater efficiencies, lower costs and more innovative products and services. The team’s commitment to winning contributed greatly to our success in 2023 and positions us well for the future.” Fourth Quarter 2023 Highlights (comparisons on a year-over-year basis; results reflect the impact of one less week of operating activity in the fourth quarter of 2023): Net sales of $1.52 billion decreased 20 percent due to a 10 percent decrease in prices and a 10 percent decrease in organic unit sales. The organic unit growth decline was due, in part, to the impact of one less week of operating activity in the fourth quarter of 2023, which resulted in a 6 percent unit decline. New product sales of $142 million decreased 18 percent, largely due to lower lumber prices. New product sales comprised 9.2 percent of total sales in 2023 compared to 8.9 percent last year. Earnings from operations of $124 million decreased 26 percent. Adjusted EBITDA1 of $166 million decreased 22 percent, and adjusted EBITDA1 margin declined 20 basis points to 10.9 percent. Fiscal 2023 Highlights (comparisons on a year-over-year basis; results reflect the impact of one less week of operating activity in 2023): Net sales of $7.2 billion decreased 25 percent from the record year of 2022 due to a 16 percent decrease in prices and a 9 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. New product sales were $716 million, down 6 percent, primarily due to lower lumber prices. New product sales comprised 9.7 percent of total sales in 2023 compared to 7.7 percent in 2022. Higher-margin, value-added product sales improved to 68 percent of total sales, up from 63 percent in 2022. Earnings from operations of $647 million decreased 32 percent. Diluted EPS of $8.07 decreased 26 percent. Adjusted EBITDA1 of $810 million decreased 26 percent. Adjusted EBITDA1 margin declined 20 basis points to 11.2 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 $841.9 million in net surplus cash (surplus cash less interest-bearing debt and cash overdraft) at year-end 2023, compared to $281.3 million in net surplus cash at year-end 2022. The company had more than $2.4 billion of liquidity at year-end 2023. The company’s return-focused approach to capital allocation includes the following: - Acquisitions. In September 2023, the company acquired Palets Suller Group, a leader in machine-built pallets based in Castellón, Spain, for approximately $52 million. The company continues to seek strategic acquisitions that drive long-term growth and margin improvements, enhance its capabilities, and create incremental value for its customers and shareholders. - Capital expenditures. The company invested approximately $180 million in capital expenditures during 2023 and is targeting $250 million to $300 million in capital expenditures for 2024. These investments include expanding capacity for its Deckorators line in the Northeastern U.S., its site-built construction business in the Western U.S., and its packaging business nationally. - Dividend payments. The company paid dividends of $68.2 million or $1.10 per share in 2023, a 16 percent increase per share over 2022. On February 1, 2024, the Board of Directors approved a quarterly dividend payment of $0.33 per share, payable on March 15, 2024, to shareholders of record on March 1, 2024. The dividend represents a 10 percent increase over the quarterly dividend of $0.30 per share paid in December 2023 and a 32 percent increase over the quarterly dividend of $0.25 per share paid in March 2023. - Share repurchases. The company repurchased approximately 975,000 shares of common stock for $82.1 million during 2023 (an average price of $84.27 per share). The company has remaining authorization to purchase up to $173 million in shares through July 31, 2024. By business segment, the company reported the following 2023 results: UFP Retail Solutions Fourth Quarter: $505.6 million in net sales, down 27 percent from the fourth quarter of 2022 due to a 9 percent decline in selling prices and an 18 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. The remaining organic unit decline was primarily due to the UFP-Edge and ProWood business units. Full Year: $2.87 billion in net sales, down 21 percent from 2022 due to a 15 percent decline in selling prices and a 6 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. UFP Packaging Fourth Quarter: $413.7 million in net sales, down 21 percent compared to the fourth quarter of 2022, due to a 10 percent decline in selling prices and an 11 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. Full Year: $1.84 billion in net sales, down 23 percent from the previous year due to a 17 percent decline in selling prices and a 6 percent decrease in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. UFP Construction Fourth Quarter: $511 million in net sales, down 16 percent from the fourth quarter of 2022, due to a 13 percent decline in selling prices and a 3 percent decline in organic unit sales. One less week of operating activity in the fourth quarter of 2023 resulted in a 6 percent unit decline. Full Year: $2.16 billion in net sales, down 31 percent from the previous year due to an 18 percent decline in selling prices and a 13 percent decline in organic unit sales. One less week of operating activity in 2023 resulted in a 1 percent unit decline. Short-Term Outlook Lumber Market: We anticipate lumber prices, which returned to more normalized levels in 2023 after pandemic-inflated highs, will remain at lower levels based on current supply and demand and follow more typical seasonal trends. End Market Demand: Based on key packaging indicators and forecasts for homebuilding and repair and remodeling, we anticipate demand for our packaging segment will be slightly down and demand for our construction and retail segments to be slightly up to slightly down in 2024. We expect softer demand and a more competitive price environment in the first half of 2024, with improvement during the second half of the year. Long-Term Goals The company’s five-year financial goals include: - Achieving compounded annual unit sales growth of 7-10 percent. Smaller tuck-in acquisitions are intended to contribute to this goal. - Realizing and sustaining a 12.5 percent adjusted EBITDA margin by continuing to enhance our capabilities and grow our portfolio of sales of value-added products, and by achieving operating improvements. - Earning an incremental return on investment over our cost of capital. - Maintaining a conservative capital structure. CONFERENCE CALL UFP Industries will conduct a conference call to discuss information included in this news release and related matters at 9 a.m. ET on Tuesday, February 20, 2024. The call will be hosted by 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 www.ufpi.com. 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 #403 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 TWELVE MONTHS ENDED DECEMBER 2023/2022 Quarter Period Year to Date (In thousands, except per share data) 2023 2022 2023 2022 NET SALES $ 1,524,353 100.0 % $ 1,913,697 100.0 % $ 7,218,384 100.0 % $ 9,626,739 100.0 % COST OF GOODS SOLD 1,228,211 80.6 1,556,227 81.3 5,799,446 80.3 7,837,278 81.4 GROSS PROFIT 296,142 19.4 357,470 18.7 1,418,938 19.7 1,789,461 18.6 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 171,598 11.3 183,064 9.6 766,633 10.6 832,079 8.6 OTHER LOSSES (GAINS), NET 547 — 5,857 0.3 5,771 0.1 7,198 0.1 EARNINGS FROM OPERATIONS 123,997 8.1 168,549 8.8 646,534 9.0 950,184 9.9 INTEREST AND OTHER (11,664 ) (0.8 ) (4,490 ) (0.2 ) (24,707 ) (0.3 ) 15,368 0.2 EARNINGS BEFORE INCOME TAXES 135,661 8.9 173,039 9.0 671,241 9.3 934,816 9.7 INCOME TAXES 31,753 2.1 41,160 2.2 156,784 2.2 229,852 2.4 NET EARNINGS 103,908 6.8 131,879 6.9 514,457 7.1 704,964 7.3 LESS NET LOSS (EARNINGS) ATTRIBUTABLE TO NONCONTROLLING INTEREST (461 ) — 710 — (145 ) — (12,313 ) (0.1 ) NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST $ 103,447 6.8 $ 132,589 6.9 $ 514,312 7.1 $ 692,651 7.2 EARNINGS PER SHARE - BASIC $ 1.65 $ 2.12 $ 8.21 $ 11.05 EARNINGS PER SHARE - DILUTED $ 1.62 $ 2.10 $ 8.07 $ 10.97 COMPREHENSIVE INCOME $ 111,775 $ 135,057 $ 529,293 $ 702,466 LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST (2,139 ) (195 ) (4,800 ) (13,485 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST $ 109,636 $ 134,862 $ 524,493 $ 688,981 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS BY SEGMENT (UNAUDITED) FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 2023/2022 Quarter Period 2023 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 505,559 $ 413,654 $ 511,042 $ 93,722 $ 376 $ 1,524,353 COST OF GOODS SOLD 444,357 331,488 390,983 69,288 (7,905 ) 1,228,211 GROSS PROFIT 61,202 82,166 120,059 24,434 8,281 296,142 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 38,971 39,170 62,393 13,252 17,812 171,598 OTHER 753 92 87 59 (444 ) 547 EARNINGS FROM OPERATIONS $ 21,478 $ 42,904 $ 57,579 $ 11,123 $ (9,087 ) $ 123,997 Quarter Period 2022 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 690,663 $ 522,171 $ 604,895 $ 99,425 $ (3,457 ) $ 1,913,697 COST OF GOODS SOLD 631,116 391,443 466,541 70,207 (3,080 ) 1,556,227 GROSS PROFIT 59,547 130,728 138,354 29,218 (377 ) 357,470 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 33,893 49,871 61,695 17,012 20,592 183,063 OTHER 183 (489 ) 1,259 4,844 60 5,857 EARNINGS FROM OPERATIONS $ 25,471 $ 81,346 $ 75,400 $ 7,362 $ (21,029 ) $ 168,550 Year to Date 2023 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 2,886,515 $ 1,838,200 $ 2,161,059 $ 328,884 $ 3,726 $ 7,218,384 COST OF GOODS SOLD 2,508,513 1,422,940 1,637,329 240,106 (9,442 ) 5,799,446 GROSS PROFIT 378,002 415,260 523,730 88,778 13,168 1,418,938 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 209,182 219,323 279,107 55,654 3,367 766,633 OTHER 757 8 1,277 4,482 (753 ) 5,771 EARNINGS FROM OPERATIONS $ 168,063 $ 195,929 $ 243,346 $ 28,642 $ 10,554 $ 646,534 Year to Date 2022 (In thousands) Retail Packaging Construction All Other Corporate Total NET SALES $ 3,650,639 $ 2,394,681 $ 3,143,868 $ 431,611 $ 5,940 $ 9,626,739 COST OF GOODS SOLD 3,306,112 1,808,449 2,417,212 300,307 5,198 7,837,278 GROSS PROFIT 344,527 586,232 726,656 131,304 742 1,789,461 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 193,383 250,858 328,125 66,745 (7,032 ) 832,079 OTHER 817 129 1,097 5,929 (774 ) 7,198 EARNINGS FROM OPERATIONS $ 150,327 $ 335,245 $ 397,434 $ 58,630 $ 8,548 $ 950,184 ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2023/2022 Quarter Period 2023 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 16,426 $ 31,823 $ 44,104 $ 11,933 $ (378 ) $ 103,908 Interest and other 32 1,356 (3 ) (4,456 ) (8,593 ) (11,664 ) Income taxes 5,020 9,725 13,478 3,646 (116 ) 31,753 Expenses associated with share-based compensation arrangements 1,331 2,110 1,698 248 3,444 8,831 Net loss (gain) on disposition and impairment of assets 740 92 54 (27 ) (654 ) 205 Gain from reduction of estimated earnout liability (134 ) (3,475 ) — — — (3,609 ) Depreciation expense 6,353 8,958 5,354 1,520 7,946 30,131 Amortization of intangibles 1,101 2,192 702 1,642 365 6,002 Adjusted EBITDA $ 30,869 $ 52,781 $ 65,387 $ 14,506 $ 2,014 $ 165,557 Adjusted EBITDA as a Percentage of Net Sales 6.1 % 12.8 % 12.8 % 15.5 % 535.6 % 10.9 % Quarter Period 2022 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 19,357 $ 62,233 $ 57,451 $ 8,708 $ (15,870 ) $ 131,879 Interest and other 106 (572 ) (8 ) (4,038 ) 22 (4,490 ) Income taxes 6,008 19,685 17,957 2,692 (5,182 ) 41,160 Expenses associated with share-based compensation arrangements 1,153 1,283 1,185 148 4,408 8,177 Net loss (gain) on disposition and impairment of assets 168 (489 ) 1,287 342 (375 ) 933 Impairment of goodwill and other intangibles — — — 4,261 — 4,261 Depreciation expense 6,085 5,694 5,263 964 7,176 25,182 Amortization of intangibles 1,389 1,152 877 2,504 129 6,051 Adjusted EBITDA $ 34,266 $ 88,986 $ 84,012 $ 15,581 $ (9,692 ) $ 213,153 Adjusted EBITDA as a Percentage of Net Sales 5.0 % 17.0 % 13.9 % 15.7 % 280.4 % 11.1 % ADJUSTED EBITDA RECONCILIATION BY SEGMENT (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2023/2022 Year to Date 2023 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 128,712 $ 148,269 $ 186,603 $ 28,790 $ 22,083 $ 514,457 Interest and other 108 2,368 (10 ) (8,932 ) (18,241 ) (24,707 ) Income taxes 39,243 45,292 56,753 8,784 6,712 156,784 Expenses associated with share-based compensation arrangements 5,575 7,595 7,190 935 13,604 34,899 Net loss (gain) on disposition and impairment of assets 801 7 9 (167 ) (910 ) (260 ) Gain from reduction of estimated earnout liability (593 ) (1,784 ) (800 ) — (3,177 ) Depreciation expense 23,943 32,996 19,546 3,994 30,084 110,563 Amortization of intangibles 4,566 8,849 2,904 3,488 1,520 21,327 Adjusted EBITDA $ 202,355 $ 243,592 $ 272,195 $ 36,892 $ 54,852 $ 809,886 Adjusted EBITDA as a Percentage of Net Sales 7.0 % 13.3 % 12.6 % 11.2 % 1472.1 % 11.2 % Year to Date 2022 (In thousands) Retail Packaging Construction All Other Corporate Total Net earnings $ 113,245 $ 251,187 $ 299,721 $ 42,844 $ (2,033 ) $ 704,964 Interest and other 162 2,158 (12 ) 1,817 11,243 15,368 Income taxes 36,920 81,900 97,725 13,969 (662 ) 229,852 Expenses associated with share-based compensation arrangements 4,476 5,125 4,882 614 13,059 28,156 Net loss (gain) on disposition and impairment of assets 785 131 1,349 347 (1,327 ) 1,285 Impairment of goodwill and other intangibles — — — 4,261 — 4,261 Depreciation expense 19,898 28,191 15,364 2,992 27,618 94,063 Amortization of intangibles 4,131 6,925 3,358 4,571 514 19,499 Adjusted EBITDA $ 179,617 $ 375,617 $ 422,387 $ 71,415 $ 48,412 $ 1,097,448 Adjusted EBITDA as a Percentage of Net Sales 4.9 % 15.7 % 13.4 % 16.5 % 815.0 % 11.4 % CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) DECEMBER 2023/2022 (In thousands) ASSETS 2023 2022 LIABILITIES AND EQUITY 2023 2022 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents $ 1,118,329 $ 559,397 Accounts payable $ 203,055 $ 206,941 Restricted cash 3,927 226 Accrued liabilities and other 322,021 401,952 Investments 34,745 36,013 Current portion of debt 42,900 2,942 Accounts receivable 549,499 617,604 Inventories 727,788 973,227 Other current assets 67,801 75,646 TOTAL CURRENT ASSETS 2,502,089 2,262,113 TOTAL CURRENT LIABILITIES 567,976 611,835 OTHER ASSETS 220,278 232,427 LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS 233,534 275,154 INTANGIBLE ASSETS, NET 518,853 488,551 OTHER LIABILITIES 166,067 181,381 TEMPORARY EQUITY 20,030 6,880 PROPERTY, PLANT AND EQUIPMENT, NET 776,577 688,982 SHAREHOLDERS' EQUITY 3,030,190 2,596,823 TOTAL ASSETS $ 4,017,797 $ 3,672,073 TOTAL LIABILITIES AND EQUITY $ 4,017,797 $ 3,672,073 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE TWELVE MONTHS ENDED DECEMBER 2023/2022 (In thousands) 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 514,457 $ 704,964 Adjustments to reconcile net earnings to net cash used in operating activities: Depreciation 110,563 94,063 Amortization of intangibles 21,327 19,499 Expense associated with share-based and grant compensation arrangements 34,899 28,156 Deferred income taxes (credit) (5,573 ) (16,289 ) Unrealized (gain) loss on investment and other (2,435 ) 5,768 Equity in loss of investee 2,367 2,183 Net (gain) loss on sale and disposition of assets (260 ) 1,285 Impairment of goodwill and other intangibles — 4,261 Gain from reduction of estimated earnout liability (3,177 ) — Changes in: Accounts receivable 81,659 130,704 Inventories 250,561 718 Accounts payable and cash overdraft (3,578 ) (137,907 ) Accrued liabilities and other (40,920 ) (5,838 ) NET CASH FROM OPERATING ACTIVITIES 959,890 831,567 CASH FLOWS USED IN INVESTING ACTIVITIES: Purchases of property, plant, and equipment (180,382 ) (174,124 ) Proceeds from sale of property, plant and equipment 3,291 3,805 Acquisitions, net of cash received and purchase of equity method investment (52,383 ) (180,151 ) Purchase of remaining noncontrolling interest of subsidiary (2,127 ) — Purchases of investments (29,806 ) (19,875 ) Proceeds from sale of investments 29,935 12,874 Other (8,692 ) 3,535 NET CASH USED IN INVESTING ACTIVITIES (240,164 ) (353,936 ) CASH FLOWS USED IN FINANCING ACTIVITIES: Borrowings under revolving credit facilities 28,462 605,101 Repayments under revolving credit facilities (30,125 ) (607,549 ) Repayments of debt (29 ) (38,719 ) Contingent consideration payments and other (6,262 ) (2,856 ) Proceeds from issuance of common stock 2,750 2,769 Dividends paid to shareholders (68,238 ) (58,860 ) Distributions to noncontrolling interest (7,355 ) (12,024 ) Repurchase of common stock (82,149 ) (95,774 ) Other 86 (2,298 ) NET CASH USED IN FINANCING ACTIVITIES (162,860 ) (210,210 ) Effect of exchange rate changes on cash 5,767 979 NET CHANGE IN CASH AND CASH EQUIVALENTS 562,633 268,400 ALL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 559,623 291,223 ALL CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,122,256 $ 559,623 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents, beginning of period $ 559,397 $ 286,662 Restricted cash, beginning of period 226 4,561 All cash and cash equivalents, beginning of period $ 559,623 $ 291,223 Cash and cash equivalents, end of period $ 1,118,329 $ 559,397 Restricted cash, end of period 3,927 226 All cash and cash equivalents, end of period $ 1,122,256 $ 559,623 View source version on businesswire.com: https://www.businesswire.com/news/home/20240220036821/en/