Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 29, 2024 shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Jun. 29, 2024 |
Entity File Number | 0-22684 |
Entity Registrant Name | UFP INDUSTRIES, INC. |
Entity Incorporation, State or Country Code | MI |
Entity Tax Identification Number | 38-1465835 |
Entity Address, Address Line One | 2801 East Beltline NE |
Entity Address, City or Town | Grand Rapids |
Entity Address, State or Province | MI |
Entity Address, Postal Zip Code | 49525 |
City Area Code | 616 |
Local Phone Number | 364-6161 |
Title of 12(b) Security | Common Stock, no par value |
Trading Symbol | UFPI |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 60,918,541 |
Current Fiscal Year End Date | --12-28 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000912767 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,041,341 | $ 1,118,329 | $ 702,148 |
Restricted cash | 761 | 3,927 | 761 |
Investments | 36,740 | 34,745 | 38,459 |
Accounts receivable, net | 724,921 | 549,499 | 802,300 |
Inventories: | |||
Raw materials | 393,871 | 352,785 | 334,300 |
Finished goods | 290,942 | 375,003 | 486,887 |
Total inventories | 684,813 | 727,788 | 821,187 |
Refundable income taxes | 27,499 | 29,327 | 13,717 |
Other current assets | 37,954 | 38,474 | 36,486 |
TOTAL CURRENT ASSETS | 2,554,029 | 2,502,089 | 2,415,058 |
DEFERRED INCOME TAXES | 3,291 | 4,228 | 4,187 |
RESTRICTED INVESTMENTS | 30,344 | 24,838 | 22,756 |
RIGHT OF USE ASSETS | 124,903 | 103,774 | 105,907 |
OTHER ASSETS | 101,292 | 87,438 | 96,079 |
GOODWILL | 335,448 | 336,313 | 336,495 |
INDEFINITE-LIVED INTANGIBLE ASSETS | 7,332 | 7,345 | 7,330 |
OTHER INTANGIBLE ASSETS, NET | 162,358 | 175,195 | 138,117 |
PROPERTY, PLANT AND EQUIPMENT: | |||
Property, plant and equipment | 1,638,880 | 1,559,304 | 1,447,482 |
Less accumulated depreciation and amortization | (819,383) | (782,727) | (729,468) |
PROPERTY, PLANT AND EQUIPMENT, NET | 819,497 | 776,577 | 718,014 |
TOTAL ASSETS | 4,138,494 | 4,017,797 | 3,843,943 |
CURRENT LIABILITIES: | |||
Accounts payable | 263,318 | 203,055 | 264,408 |
Accrued liabilities: | |||
Compensation and benefits | 172,790 | 232,331 | 183,910 |
Other | 80,506 | 66,713 | 79,414 |
Current portion of lease liability | 28,020 | 22,977 | 25,887 |
Current portion of long-term debt | 43,754 | 42,900 | 2,385 |
TOTAL CURRENT LIABILITIES | 588,388 | 567,976 | 556,004 |
LONG-TERM DEBT | 232,979 | 233,534 | 274,821 |
LEASE LIABILITY | 102,872 | 84,885 | 84,194 |
DEFERRED INCOME TAXES | 44,787 | 45,248 | 51,018 |
OTHER LIABILITIES | 33,027 | 35,934 | 36,137 |
TOTAL LIABILITIES | 1,002,053 | 967,577 | 1,002,174 |
TEMPORARY EQUITY: | |||
Redeemable noncontrolling interest | 18,931 | 20,030 | 6,772 |
Controlling interest shareholders' equity: | |||
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none | |||
Common stock, $1 par value; shares authorized 160,000,000; issued and outstanding, 60,918,541, 61,621,004, and 61,865,006 | 60,919 | 61,621 | 61,865 |
Additional paid-in capital | 371,771 | 354,702 | 335,494 |
Retained earnings | 2,670,086 | 2,582,332 | 2,408,314 |
Accumulated other comprehensive loss | (5,965) | 1,106 | (2,290) |
Total controlling interest shareholders' equity | 3,096,811 | 2,999,761 | 2,803,383 |
Noncontrolling interest | 20,699 | 30,429 | 31,614 |
TOTAL SHAREHOLDERS' EQUITY | 3,117,510 | 3,030,190 | 2,834,997 |
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | $ 4,138,494 | $ 4,017,797 | $ 3,843,943 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
SHAREHOLDERS' EQUITY: | |||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 60,918,541 | 61,621,004 | 61,865,006 |
Common stock, shares outstanding (in shares) | 60,918,541 | 61,621,004 | 61,865,006 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) | ||||
NET SALES | $ 1,901,959 | $ 2,043,918 | $ 3,540,925 | $ 3,866,394 |
COST OF GOODS SOLD | 1,539,216 | 1,643,851 | 2,852,104 | 3,107,998 |
GROSS PROFIT | 362,743 | 400,067 | 688,821 | 758,396 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 203,155 | 204,703 | 395,214 | 399,386 |
OTHER LOSSES (GAINS), NET | 554 | 1,867 | 750 | 3,805 |
EARNINGS FROM OPERATIONS | 159,034 | 193,497 | 292,857 | 355,205 |
INTEREST EXPENSE | 3,167 | 3,275 | 6,303 | 6,393 |
INTEREST AND INVESTMENT INCOME | (13,215) | (7,717) | (29,708) | (14,264) |
EQUITY IN LOSS OF INVESTEE | 642 | 417 | 1,236 | 1,005 |
INTEREST AND OTHER | (9,406) | (4,025) | (22,169) | (6,866) |
EARNINGS BEFORE INCOME TAXES | 168,440 | 197,522 | 315,026 | 362,071 |
INCOME TAXES | 42,208 | 46,734 | 67,695 | 85,705 |
NET EARNINGS | 126,232 | 150,788 | 247,331 | 276,366 |
NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (302) | (27) | (610) | 464 |
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 125,930 | $ 150,761 | $ 246,721 | $ 276,830 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 2.05 | $ 2.40 | $ 4.01 | $ 4.41 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 2.05 | $ 2.36 | $ 4 | $ 4.35 |
OTHER COMPREHENSIVE INCOME: | ||||
NET EARNINGS | $ 126,232 | $ 150,788 | $ 247,331 | $ 276,366 |
OTHER COMPREHENSIVE INCOME (LOSS) | (7,980) | 4,478 | (9,110) | 10,730 |
COMPREHENSIVE INCOME | 118,252 | 155,266 | 238,221 | 287,096 |
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 STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Earnings | Noncontrolling Interest | Total |
Beginning balance at Dec. 31, 2022 | $ 61,618 | $ 294,029 | $ 2,217,410 | $ (9,075) | $ 32,841 | $ 2,596,823 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 126,069 | (313) | 125,756 | |||
Foreign currency translation adjustment | 3,850 | 2,195 | 6,045 | |||
Unrealized gain (loss) on debt securities | 151 | 151 | ||||
Distributions to NCI | (4,859) | (4,859) | ||||
Cash dividends | (15,642) | (15,642) | ||||
Issuance of shares under employee stock purchase plan | 10 | 675 | 685 | |||
Issuance of shares under stock grant programs | 825 | 14,356 | 6 | 15,187 | ||
Issuance of shares under deferred compensation plans | 93 | (93) | ||||
Repurchase of shares | (450) | (34,818) | (35,268) | |||
Expense associated with share-based compensation arrangements | 9,598 | 9,598 | ||||
Accrued expense under deferred compensation plans | 7,165 | 7,165 | ||||
Ending balance at Apr. 01, 2023 | 62,096 | 325,730 | 2,293,025 | (5,074) | 29,864 | 2,705,641 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 150,761 | 56 | 150,817 | |||
Foreign currency translation adjustment | 2,983 | 1,694 | 4,677 | |||
Unrealized gain (loss) on debt securities | (199) | (199) | ||||
Other | (427) | (427) | ||||
Cash dividends | (15,507) | (15,507) | ||||
Issuance of shares under employee stock purchase plan | 9 | 754 | 763 | |||
Issuance of shares under stock grant programs | (1) | 35 | 34 | |||
Issuance of shares under deferred compensation plans | 12 | (12) | ||||
Repurchase of shares | (251) | (19,965) | (20,216) | |||
Expense associated with share-based compensation arrangements | 8,201 | 8,201 | ||||
Accrued expense under deferred compensation plans | 1,213 | 1,213 | ||||
Ending balance at Jul. 01, 2023 | 61,865 | 335,494 | 2,408,314 | (2,290) | 31,614 | 2,834,997 |
Beginning balance at Dec. 30, 2023 | 61,621 | 354,702 | 2,582,332 | 1,106 | 30,429 | 3,030,190 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 120,791 | 622 | 121,413 | |||
Foreign currency translation adjustment | (1,419) | 616 | (803) | |||
Unrealized gain (loss) on debt securities | 6 | 6 | ||||
Distributions to NCI | (3,331) | (3,331) | ||||
Cash dividends | (20,411) | (20,411) | ||||
Issuance of shares under employee stock purchase plan | 6 | 648 | 654 | |||
Issuance of shares under stock grant programs | 369 | 5,829 | 6,198 | |||
Issuance of shares under deferred compensation plans | 77 | (77) | ||||
Repurchase of shares | (319) | (17,686) | (18,631) | (36,636) | ||
Expense associated with share-based compensation arrangements | 11,194 | 11,194 | ||||
Accrued expense under deferred compensation plans | 7,621 | 7,621 | ||||
Ending balance at Mar. 30, 2024 | 61,754 | 362,231 | 2,664,081 | (307) | 28,336 | 3,116,095 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 125,930 | 652 | 126,582 | |||
Foreign currency translation adjustment | (5,594) | (2,220) | (7,814) | |||
Unrealized gain (loss) on debt securities | (64) | (64) | ||||
Distributions to NCI | (6,069) | (6,069) | ||||
Other | 607 | 607 | ||||
Cash dividends | (20,249) | (20,249) | ||||
Issuance of shares under employee stock purchase plan | 9 | 807 | 816 | |||
Issuance of shares under stock grant programs | 29 | 1 | 5 | 35 | ||
Issuance of shares under deferred compensation plans | 10 | (10) | ||||
Repurchase of shares | (883) | (99,681) | (100,564) | |||
Expense associated with share-based compensation arrangements | 7,954 | 7,954 | ||||
Accrued expense under deferred compensation plans | 1,395 | 1,395 | ||||
Ending balance at Jun. 29, 2024 | $ 60,919 | $ 371,771 | $ 2,670,086 | $ (5,965) | $ 20,699 | $ 3,117,510 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | |
Increase (Decrease) in Temporary Equity | ||||
Beginning balance | $ 19,383 | $ 20,030 | $ 6,801 | $ 6,880 |
Net earnings (loss) | (350) | (314) | (29) | (178) |
Foreign currency translation adjustment | (102) | (333) | 56 | |
Other | 43 | |||
Ending balance | $ 18,931 | $ 19,383 | $ 6,772 | $ 6,801 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | |
Increase (Decrease) in Stockholders' Equity | ||||
Cash dividends per share (USD per share) | $ 0.33 | $ 0.33 | $ 0.25 | $ 0.25 |
Net issuance of shares under employee stock plans (in shares) | 8,573 | 6,251 | 9,253 | 10,140 |
Net issuance (forfeiture) of shares under stock grant programs (in shares) | 29,460 | 369,012 | 1,503 | 824,669 |
Issuance of shares under deferred compensation plans (in shares) | 9,841 | 76,927 | 11,686 | 93,165 |
Repurchase of shares (in shares) | 883,232 | 319,295 | 250,000 | 450,597 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 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 investments 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 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 1,122,256 | 559,623 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 1,042,102 | $ 702,909 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - SUPPLEMENTAL (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Cash and cash equivalents, beginning of period | $ 1,118,329 | $ 702,148 | $ 559,397 |
Restricted cash, beginning of period | 3,927 | 761 | 226 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 1,122,256 | 702,909 | 559,623 |
Cash and cash equivalents, end of period | 1,041,341 | 1,118,329 | 702,148 |
Restricted cash, end of period | 761 | 3,927 | 761 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 1,042,102 | $ 1,122,256 | $ 702,909 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - SUPPLEMENTAL AND NON-CASH FINANCING ACTIVITIES (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
SUPPLEMENTAL INFORMATION: | ||
Interest paid | $ 6,317 | $ 6,345 |
Income taxes paid | 65,572 | 66,329 |
NON-CASH INVESTING ACTIVITIES | ||
Capital expenditures included in accounts payable | 3,005 | 1,915 |
NON-CASH FINANCING ACTIVITIES: | ||
Common stock issued under deferred compensation plans | $ 9,743 | $ 8,929 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 29, 2024 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | A. BASIS OF PRESENTATION The accompanying unaudited interim consolidated condensed financial statements (the “Financial Statements”) include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, the Financial Statements do not include all the information and footnotes normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America. All significant intercompany balances and transactions have been eliminated in consolidation. We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members as well as whether the entity is a variable interest entity (“VIE”) and whether we are the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. We account for unconsolidated VIEs using the equity method of accounting. As a result of the investment in Dempsey on June 27, 2022, we own 50% of the issued equity of that entity, and the remaining 50% of the issued equity is owned by the previous owners (“Sellers”). The investment in Dempsey is an unconsolidated variable interest entity and we have accounted for it using the equity method of accounting because we do not have a controlling financial interest in the entity. Per the contracts, the Sellers have a put right to sell their equity interest to us for $50 million and we have a call right to purchase the Seller’s equity interest for $70 million, which are both first exercisable in June 2025 and expire in June 2030. As of June 29, 2024, the carrying value of our investment in Dempsey is $58.9 million and is recorded in Other Assets. Our maximum exposure to loss consists of our investment amount and any contingent loss that may occur in the future as a result of a change in the fair value of Dempsey relative to the strike price of the put option. In our opinion, the Financial Statements contain all material adjustments necessary to present fairly our consolidated financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. These Financial Statements should be read in conjunction with the annual consolidated financial statements, and footnotes thereto, included in our Annual Report to Shareholders on Form 10-K for the fiscal year ended December 30, 2023. Seasonality has a significant impact on our working capital from March to August, which historically results in negative or modest cash flows from operations in our first and second quarters. Conversely, we experience a substantial decrease in working capital from September to February which typically results in significant cash flow from operations in our third and fourth quarters. For comparative purposes, we have included the July 1, 2023 balances in the accompanying unaudited condensed consolidated balance sheets. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. Although the ASU only modifies our required income tax disclosures, we are currently evaluating the impact of adopting this guidance on the consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. Although the ASU only requires additional disclosures about the Company's operating segments, we are currently evaluating the impact of adopting this guidance on the consolidated financial statements. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 29, 2024 | |
FAIR VALUE | |
FAIR VALUE | B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures June 29, 2024 December 30, 2023 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 250,775 $ 10,952 $ — $ 261,727 $ 492,800 $ 6,133 $ — $ 498,933 Fixed income funds 5,130 24,477 — 29,607 5,112 18,976 — 24,088 Treasury securities 344 — — 344 344 — — 344 Equity securities 17,279 — 22,000 39,279 16,411 — 10,500 26,911 Alternative investments — — 4,054 4,054 — — 4,052 4,052 Mutual funds: Domestic stock funds 14,406 — — 14,406 13,330 — — 13,330 International stock funds 550 — — 550 509 — — 509 Target funds 9 — — 9 9 — — 9 Bond funds 5 — — 5 5 — — 5 Alternative funds 486 — — 486 474 — — 474 Total mutual funds 15,456 — — 15,456 14,327 — — 14,327 Total $ 288,984 $ 35,429 $ 26,054 $ 350,467 $ 528,994 $ 25,109 $ 14,552 $ 568,655 From the assets measured at fair value as of June 29, 2024, listed in the table above, $261.4 million of money market funds are held in Cash and Cash Equivalents, $36.7 million of mutual funds, equity securities, and alternative investments are held in Investments, $22.0 million of equity securities are held in Other Assets, $0.1 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $30.0 million of fixed income funds and $0.3 million of money market funds are held in Restricted Investments. As of December 30, 2023, $498.5 million of money market funds were held in Cash and Cash Equivalents, $34.8 million of mutual funds, equity securities, and alternative investments were held in Investments, $10.5 million of equity securities were held in Other Assets, $0.1 million of money market and mutual funds were held in Other Assets for our deferred compensation plan, and $24.4 million of fixed income funds and $0.4 million of money market funds were held in Restricted Investments. We maintain money market, mutual funds, bonds, and/or equity securities in our non-qualified deferred compensation plan, our wholly owned licensed captive insurance company, and assets held in financial institutions. These funds are valued at prices quoted in an active exchange market and are included in “Cash and Cash Equivalents”, “Investments”, “Other Assets”, and “Restricted Investments”. We have elected not to apply the fair value option under ASC 825, Financial Instruments, In accordance with our investment policy, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling $66.7 million and $59.2 million as of June 29, 2024 and December 30, 2023, respectively, which has been included in the aforementioned table of total investments. This portfolio consists of domestic and international equity securities, alternative investments, and fixed income bonds. Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): June 29, 2024 December 30, 2023 Unrealized Unrealized Cost Gain (Loss) Fair Value Cost Gain (Loss) Fair Value Fixed income $ 31,067 $ (1,460) $ 29,607 $ 25,514 $ (1,426) $ 24,088 Treasury securities 344 — 344 344 — 344 Equity 13,669 3,610 17,279 13,523 2,888 16,411 Mutual funds 12,922 2,485 15,407 12,348 1,934 14,282 Alternative investments 3,266 788 4,054 3,211 841 4,052 Total $ 61,268 $ 5,423 $ 66,691 $ 54,940 $ 4,237 $ 59,177 Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our mutual fund investments consist of domestic and international stock. Our alternative investments consist of a private real estate income trust which is valued as a Level 3 asset. The net pre-tax unrealized gain of the portfolio was $5.4 million and $4.2 million as of June 29, 2024 and December 30, 2023, respectively. Carrying amounts above are recorded in the Investments and Restricted Investments line items within the balance sheet as of June 29, 2024 and December 30, 2023. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 29, 2024 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | C. REVENUE RECOGNITION Within the three primary segments, UFP Retail Solutions (“Retail”), UFP Packaging (“Packaging”) and UFP Construction (“Construction”), that the Company operates, there are a variety of written agreements governing the sale of our products and services. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day. Certain customer products that we provide require installation by the Company or a third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales. We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred relative to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced relative to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 The following table presents our net sales disaggregated by revenue source (in thousands): Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2024 2023 % Change 2024 2023 % Change Point in Time Revenue $ 1,857,264 $ 2,006,319 (7.4)% $ 3,462,099 $ 3,790,775 (8.7)% Over Time Revenue 44,695 37,599 18.9% 78,826 75,619 4.2% Total Net Sales 1,901,959 2,043,918 (6.9)% $ 3,540,925 $ 3,866,394 (8.4)% The Construction segment comprises the construction contract revenue shown above. Construction contract revenue is primarily made up of site-built and framing customers. The following table presents the balances of over time accounting accounts which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): June 29, December 30, July 1, 2024 2023 2023 Cost and Earnings in Excess of Billings $ 7,227 $ 3,572 $ 3,266 Billings in Excess of Cost and Earnings 8,816 9,487 12,914 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 29, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | D. EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Numerator: Net earnings attributable to controlling interest $ 125,930 $ 150,761 $ 246,721 $ 276,830 Adjustment for earnings allocated to non-vested restricted common stock equivalents (4,781) (7,588) (9,684) (13,096) Net earnings for calculating EPS $ 121,149 $ 143,173 $ 237,037 $ 263,734 Denominator: Weighted average shares outstanding 61,668 62,786 61,817 62,756 Adjustment for non-vested restricted common stock equivalents (2,633) (3,160) (2,710) (2,969) Shares for calculating basic EPS 59,035 59,626 59,107 59,787 Effect of dilutive restricted common stock equivalents 124 918 106 885 Shares for calculating diluted EPS 59,159 60,544 59,213 60,672 Net earnings per share: Basic $ 2.05 $ 2.40 $ 4.01 $ 4.41 Diluted $ 2.05 $ 2.36 $ 4.00 $ 4.35 |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 6 Months Ended |
Jun. 29, 2024 | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | E. COMMITMENTS, CONTINGENCIES, AND GUARANTEES We are self-insured for environmental impairment liability, including certain liabilities which are insured through a wholly owned subsidiary, Ardellis Insurance Ltd., a licensed captive insurance company. In addition, on June 29, 2024, we were parties either as plaintiff or defendant to a number of lawsuits and claims arising through the normal course of our business. In the opinion of management, our consolidated financial statements will not be materially affected by the outcome of these contingencies and claims. On June 29, 2024, we had outstanding purchase commitments on commenced capital projects of approximately $109.7 million. We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We also distribute products manufactured by other companies. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements. As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances, we are required to post payment and performance bonds to ensure the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims properly made against these bonds. As of June 29, 2024, we had approximately $23.4 million in outstanding payment and performance bonds for open projects. We had approximately $6.9 million in payment and performance bonds outstanding for completed projects which are still under warranty. On June 29, 2024, we had outstanding letters of credit totaling $43.8 million, primarily related to certain insurance contracts, industrial development revenue bonds, and other debt agreements described further below. In lieu of cash deposits, we provide irrevocable letters of credit in favor of our insurers and other third parties to guarantee our performance under certain insurance contracts and other legal agreements. As of June 29, 2024, we have irrevocable letters of credit outstanding totaling approximately $40.4 million for these types of arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under those insurance arrangements. We are required to provide irrevocable letters of credit in favor of the bond trustees for all industrial development revenue bonds that have been issued. These letters of credit guarantee principal and interest payments to the bondholders. We currently have irrevocable letters of credit outstanding totaling approximately $3.3 million related to our outstanding industrial development revenue bonds. These letters of credit have varying terms but may be renewed at the option of the issuing banks. Certain wholly owned domestic subsidiaries have guaranteed the indebtedness of UFP Industries, Inc. in certain debt agreements, including the Series 2012, 2018 and 2020 Senior Notes and our revolving credit facility. The maximum exposure of these guarantees is limited to the indebtedness outstanding under these debt arrangements and this exposure will expire concurrent with the expiration of the debt agreements. We did not enter into any new guarantee arrangements during the second quarter of 2024 which would require us to recognize a liability on our balance sheet. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 29, 2024 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | F. BUSINESS COMBINATIONS We completed the following business combination since the end of the second quarter of 2023, which was accounted for using the purchase method. Dollars below are in thousands unless otherwise noted: Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment September 20, 2023 $52,841 $ 43,785 $ 9,056 International UFP Palets y Embalajes SL (UFP Palets) Headquartered in Castellón, Spain, UFP Palets (formerly known as Palets Suller Group) is the market leader in machine-built wood pallets, serving the region's large ceramic tile industry. The company had trailing 12-month sales of approximately $38 million through August 2023. The purchase accounting valuation of the UFP Palets investment is yet to be finalized. In aggregate, investments completed since the end of the second quarter of 2023 and not consolidated with other operations contributed approximately $10.7 million in net sales and $1.2 million in operating losses during the first six months of 2024. The business combination mentioned above was not significant to our operating results and thus pro forma results for 2024 and 2023 are not presented. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 29, 2024 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | G. SEGMENT REPORTING We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Packaging and UFP Construction and align with the end markets we serve. This segment structure allows for a specialized and consistent sales approach among Company operations, efficient use of resources and capital, and quicker introduction of new products and services. We manage the operations of our individual locations primarily through a market-centered reporting structure under which each location is included in a business unit and business units are included in our Retail, Packaging, and Construction segments. In the case of locations that serve multiple segments, results are allocated and accounted for by segment. The exception to this market-centered reporting and management structure is our International segment, which comprises our packaging operations in Mexico, Canada, Spain, India, and Australia and sales and buying offices in other parts of the world and our Ardellis segment, which represents our wholly owned fully licensed captive insurance company based in Bermuda. Our International and Ardellis segments do not meet the quantitative thresholds in order to be separately reported and accordingly, the International and Ardellis segments have been aggregated in the “All Other” segment for reporting purposes. “Corporate” includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. Operating results of Corporate primarily consist of net sales to external customers initiated by UFP Purchasing and UFP Transportation and over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in the Corporate column. Inter-company lease and service charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Total assets in the Corporate column include unallocated cash and cash equivalents, certain prepaid assets, certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., UFP Transportation, Inc., UFP Purchasing, Inc., and UFP RMS, LLC. The tables below are presented in thousands: Three Months Ended June 29, 2024 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 809,067 $ 435,204 $ 574,547 $ 81,470 $ 1,671 $ 1,901,959 Intersegment net sales 70,102 26,275 18,797 80,055 (195,229) — Earnings from operations 59,783 29,516 52,011 7,496 10,228 159,034 Three Months Ended July 1, 2023 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 938,630 $ 488,100 $ 550,464 $ 67,592 $ (868) $ 2,043,918 Intersegment net sales 198,518 20,976 23,554 75,480 (318,528) — Earnings from operations 60,211 56,864 61,959 6,786 7,677 193,497 Note: As of December 31, 2023, our Pinelli Universal entity was transferred to our Retail segment from our International segment (grouped in All Other) due to changes in our management structure. Prior year figures have been updated to reflect the change for comparability purposes in every applicable table in this filing. Six Months Ended June 29, 2024 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 1,437,832 $ 859,622 $ 1,092,443 $ 148,417 $ 2,611 $ 3,540,925 Intersegment net sales 129,448 47,201 38,832 151,312 (366,793) — Earnings from operations 105,763 60,762 97,353 11,369 17,610 292,857 Six Months Ended July 1, 2023 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 1,699,924 $ 974,661 $ 1,066,057 $ 123,387 $ 2,365 $ 3,866,394 Intersegment net sales 421,843 41,026 49,390 152,967 (665,226) — Earnings from operations 100,469 111,596 116,207 11,618 15,315 355,205 The following table presents goodwill by segment as of June 29, 2024, and December 30, 2023 (in thousands): Retail Packaging Construction All Other Corporate Total Balance as of December 30, 2023 $ 84,204 $ 141,042 $ 87,805 $ 23,262 $ — $ 336,313 Foreign Exchange, Net (44) — (170) (651) — (865) Balance as of June 29, 2024 $ 84,160 $ 141,042 $ 87,635 $ 22,611 $ — $ 335,448 The following table presents total assets by segment as of June 29, 2024, and December 30, 2023 (in thousands). Total Assets by Segment June 29, December 30, Segment Classification 2024 2023 % Change Retail $ 916,574 $ 828,798 10.6 % Packaging 802,204 798,623 0.4 Construction 666,622 621,762 7.2 All Other 337,962 316,481 6.8 Corporate 1,415,132 1,452,133 (2.5) Total Assets $ 4,138,494 $ 4,017,797 3.0 % The following table presents our disaggregated net sales (in thousands) by business unit for each segment for the three and six months ended June 29, 2024, and July 1, 2023 (in thousands). Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Retail Deckorators $ 99,706 $ 103,656 $ 173,841 $ 181,119 ProWood 668,275 794,287 1,194,236 1,445,287 UFP Edge 38,009 40,216 65,293 72,768 Other 3,077 471 4,462 750 Total Retail $ 809,067 $ 938,630 $ 1,437,832 $ 1,699,924 Packaging Structural Packaging $ 280,102 $ 330,510 $ 554,252 $ 658,760 PalletOne 136,911 136,937 269,401 274,507 Protective Packaging 18,191 20,653 35,969 41,394 Total Packaging $ 435,204 $ 488,100 $ 859,622 $ 974,661 Construction Factory Built $ 225,242 $ 180,024 $ 417,076 $ 347,637 Site Built 238,547 248,445 460,106 469,562 Commercial 66,347 66,320 127,731 138,665 Concrete Forming 44,411 55,675 87,530 110,193 Total Construction $ 574,547 $ 550,464 $ 1,092,443 $ 1,066,057 All Other $ 81,470 $ 67,592 $ 148,417 $ 123,387 Corporate $ 1,671 $ (868) $ 2,611 $ 2,365 Total Net Sales $ 1,901,959 $ 2,043,918 $ 3,540,925 $ 3,866,394 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 29, 2024 | |
INCOME TAXES | |
INCOME TAXES | H. INCOME TAXES Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for foreign, state and local income taxes and permanent tax differences. Our effective tax rate was 25.1% in the second quarter of 2024 compared to 23.7% in the same period of 2023 and was 21.5% in the first six months of 2024 compared to 23.7% for the same period in 2023. |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Jun. 29, 2024 | |
COMMON STOCK | |
COMMON STOCK | I. COMMON STOCK Below is a summary of common stock issuances for the first six months of 2024 and 2023 (in thousands, except average share price): June 29, 2024 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 15 $ 116.64 Shares issued under the employee stock gift program 1 117.80 Shares issued under the director compensation plan 1 114.61 Shares issued under the LTSIP 352 113.49 Shares issued under the executive stock match plan 64 111.35 Forfeitures (20) Total shares issued under stock grant programs 398 $ 113.14 Shares issued under the deferred compensation plans 87 $ 112.29 During the first six months of 2024, we repurchased 1,202,527 shares of our common stock at an average share price of $114.09. July 1, 2023 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 19 $ 87.86 Shares issued under the employee stock gift program 1 86.88 Shares issued under the director retainer stock program 2 87.02 Shares issued under the LTSIP 756 86.14 Shares issued under the executive stock grants plan 75 85.89 Forfeitures (10) Total shares issued under stock grant programs 824 $ 86.12 Shares issued under the deferred compensation plans 105 $ 85.16 During the first six months of 2023, we repurchased approximately 700,597 shares of our common stock at an average share price of $79.20. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 29, 2024 | |
INVENTORIES | |
INVENTORIES | J. INVENTORIES Inventories are stated at the lower of cost or net realizable value. The cost of inventories includes raw materials, direct labor, and manufacturing overhead and is determined using the weighted average cost method. Raw materials consist primarily of unfinished wood products and other materials expected to be manufactured or treated prior to sale, while finished goods represent various manufactured and treated wood products ready for sale. We write down the value of inventory, the impact of which is reflected in cost of goods sold in the Condensed Consolidated Statement of Earnings and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. There was no lower of cost or net realizable value adjustment to inventory as of June 29, 2024 and a $0.8 million adjustment as of July 1, 2023. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 29, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | K. SUBSEQUENT EVENTS Subsequent to our reporting date, we repurchased 197,417 shares for $21.8 million, at an average share price of $110.22. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 125,930 | $ 150,761 | $ 246,721 | $ 276,830 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 29, 2024 | |
BASIS OF PRESENTATION | |
Revenue Recognition | Within the three primary segments, UFP Retail Solutions (“Retail”), UFP Packaging (“Packaging”) and UFP Construction (“Construction”), that the Company operates, there are a variety of written agreements governing the sale of our products and services. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day. Certain customer products that we provide require installation by the Company or a third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales. We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred relative to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced relative to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
FAIR VALUE | |
Assets measured at fair value | Assets measured at fair value are as follows (in thousands): June 29, 2024 December 30, 2023 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 250,775 $ 10,952 $ — $ 261,727 $ 492,800 $ 6,133 $ — $ 498,933 Fixed income funds 5,130 24,477 — 29,607 5,112 18,976 — 24,088 Treasury securities 344 — — 344 344 — — 344 Equity securities 17,279 — 22,000 39,279 16,411 — 10,500 26,911 Alternative investments — — 4,054 4,054 — — 4,052 4,052 Mutual funds: Domestic stock funds 14,406 — — 14,406 13,330 — — 13,330 International stock funds 550 — — 550 509 — — 509 Target funds 9 — — 9 9 — — 9 Bond funds 5 — — 5 5 — — 5 Alternative funds 486 — — 486 474 — — 474 Total mutual funds 15,456 — — 15,456 14,327 — — 14,327 Total $ 288,984 $ 35,429 $ 26,054 $ 350,467 $ 528,994 $ 25,109 $ 14,552 $ 568,655 |
Available for sale investment portfolio | Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): June 29, 2024 December 30, 2023 Unrealized Unrealized Cost Gain (Loss) Fair Value Cost Gain (Loss) Fair Value Fixed income $ 31,067 $ (1,460) $ 29,607 $ 25,514 $ (1,426) $ 24,088 Treasury securities 344 — 344 344 — 344 Equity 13,669 3,610 17,279 13,523 2,888 16,411 Mutual funds 12,922 2,485 15,407 12,348 1,934 14,282 Alternative investments 3,266 788 4,054 3,211 841 4,052 Total $ 61,268 $ 5,423 $ 66,691 $ 54,940 $ 4,237 $ 59,177 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
REVENUE RECOGNITION | |
Schedule of disaggregation of revenue | The following table presents our net sales disaggregated by revenue source (in thousands): Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2024 2023 % Change 2024 2023 % Change Point in Time Revenue $ 1,857,264 $ 2,006,319 (7.4)% $ 3,462,099 $ 3,790,775 (8.7)% Over Time Revenue 44,695 37,599 18.9% 78,826 75,619 4.2% Total Net Sales 1,901,959 2,043,918 (6.9)% $ 3,540,925 $ 3,866,394 (8.4)% |
Schedule of percentage-of-completion balances | The following table presents the balances of over time accounting accounts which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): June 29, December 30, July 1, 2024 2023 2023 Cost and Earnings in Excess of Billings $ 7,227 $ 3,572 $ 3,266 Billings in Excess of Cost and Earnings 8,816 9,487 12,914 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
EARNINGS PER SHARE | |
Schedule of computation of earnings per share | The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Numerator: Net earnings attributable to controlling interest $ 125,930 $ 150,761 $ 246,721 $ 276,830 Adjustment for earnings allocated to non-vested restricted common stock equivalents (4,781) (7,588) (9,684) (13,096) Net earnings for calculating EPS $ 121,149 $ 143,173 $ 237,037 $ 263,734 Denominator: Weighted average shares outstanding 61,668 62,786 61,817 62,756 Adjustment for non-vested restricted common stock equivalents (2,633) (3,160) (2,710) (2,969) Shares for calculating basic EPS 59,035 59,626 59,107 59,787 Effect of dilutive restricted common stock equivalents 124 918 106 885 Shares for calculating diluted EPS 59,159 60,544 59,213 60,672 Net earnings per share: Basic $ 2.05 $ 2.40 $ 4.01 $ 4.41 Diluted $ 2.05 $ 2.36 $ 4.00 $ 4.35 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
BUSINESS COMBINATIONS | |
Business acquisitions accounted for using purchase method | We completed the following business combination since the end of the second quarter of 2023, which was accounted for using the purchase method. Dollars below are in thousands unless otherwise noted: Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment September 20, 2023 $52,841 $ 43,785 $ 9,056 International UFP Palets y Embalajes SL (UFP Palets) Headquartered in Castellón, Spain, UFP Palets (formerly known as Palets Suller Group) is the market leader in machine-built wood pallets, serving the region's large ceramic tile industry. The company had trailing 12-month sales of approximately $38 million through August 2023. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
SEGMENT REPORTING | |
Segment Reporting | The tables below are presented in thousands: Three Months Ended June 29, 2024 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 809,067 $ 435,204 $ 574,547 $ 81,470 $ 1,671 $ 1,901,959 Intersegment net sales 70,102 26,275 18,797 80,055 (195,229) — Earnings from operations 59,783 29,516 52,011 7,496 10,228 159,034 Three Months Ended July 1, 2023 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 938,630 $ 488,100 $ 550,464 $ 67,592 $ (868) $ 2,043,918 Intersegment net sales 198,518 20,976 23,554 75,480 (318,528) — Earnings from operations 60,211 56,864 61,959 6,786 7,677 193,497 Note: As of December 31, 2023, our Pinelli Universal entity was transferred to our Retail segment from our International segment (grouped in All Other) due to changes in our management structure. Prior year figures have been updated to reflect the change for comparability purposes in every applicable table in this filing. Six Months Ended June 29, 2024 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 1,437,832 $ 859,622 $ 1,092,443 $ 148,417 $ 2,611 $ 3,540,925 Intersegment net sales 129,448 47,201 38,832 151,312 (366,793) — Earnings from operations 105,763 60,762 97,353 11,369 17,610 292,857 Six Months Ended July 1, 2023 Retail Packaging Construction All Other Corporate Total Net sales to outside customers $ 1,699,924 $ 974,661 $ 1,066,057 $ 123,387 $ 2,365 $ 3,866,394 Intersegment net sales 421,843 41,026 49,390 152,967 (665,226) — Earnings from operations 100,469 111,596 116,207 11,618 15,315 355,205 |
Schedule of Goodwill by Segment | Retail Packaging Construction All Other Corporate Total Balance as of December 30, 2023 $ 84,204 $ 141,042 $ 87,805 $ 23,262 $ — $ 336,313 Foreign Exchange, Net (44) — (170) (651) — (865) Balance as of June 29, 2024 $ 84,160 $ 141,042 $ 87,635 $ 22,611 $ — $ 335,448 |
Schedule of assets by segment | Total Assets by Segment June 29, December 30, Segment Classification 2024 2023 % Change Retail $ 916,574 $ 828,798 10.6 % Packaging 802,204 798,623 0.4 Construction 666,622 621,762 7.2 All Other 337,962 316,481 6.8 Corporate 1,415,132 1,452,133 (2.5) Total Assets $ 4,138,494 $ 4,017,797 3.0 % |
Gross Sales by Major Product Classification | The following table presents our disaggregated net sales (in thousands) by business unit for each segment for the three and six months ended June 29, 2024, and July 1, 2023 (in thousands). Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Retail Deckorators $ 99,706 $ 103,656 $ 173,841 $ 181,119 ProWood 668,275 794,287 1,194,236 1,445,287 UFP Edge 38,009 40,216 65,293 72,768 Other 3,077 471 4,462 750 Total Retail $ 809,067 $ 938,630 $ 1,437,832 $ 1,699,924 Packaging Structural Packaging $ 280,102 $ 330,510 $ 554,252 $ 658,760 PalletOne 136,911 136,937 269,401 274,507 Protective Packaging 18,191 20,653 35,969 41,394 Total Packaging $ 435,204 $ 488,100 $ 859,622 $ 974,661 Construction Factory Built $ 225,242 $ 180,024 $ 417,076 $ 347,637 Site Built 238,547 248,445 460,106 469,562 Commercial 66,347 66,320 127,731 138,665 Concrete Forming 44,411 55,675 87,530 110,193 Total Construction $ 574,547 $ 550,464 $ 1,092,443 $ 1,066,057 All Other $ 81,470 $ 67,592 $ 148,417 $ 123,387 Corporate $ 1,671 $ (868) $ 2,611 $ 2,365 Total Net Sales $ 1,901,959 $ 2,043,918 $ 3,540,925 $ 3,866,394 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
COMMON STOCK | |
Schedule of common stock issuances | Below is a summary of common stock issuances for the first six months of 2024 and 2023 (in thousands, except average share price): June 29, 2024 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 15 $ 116.64 Shares issued under the employee stock gift program 1 117.80 Shares issued under the director compensation plan 1 114.61 Shares issued under the LTSIP 352 113.49 Shares issued under the executive stock match plan 64 111.35 Forfeitures (20) Total shares issued under stock grant programs 398 $ 113.14 Shares issued under the deferred compensation plans 87 $ 112.29 July 1, 2023 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 19 $ 87.86 Shares issued under the employee stock gift program 1 86.88 Shares issued under the director retainer stock program 2 87.02 Shares issued under the LTSIP 756 86.14 Shares issued under the executive stock grants plan 75 85.89 Forfeitures (10) Total shares issued under stock grant programs 824 $ 86.12 Shares issued under the deferred compensation plans 105 $ 85.16 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jun. 27, 2022 |
Dempsey Wood Products, LLC | ||
Ownership interest | 50% | |
Dempsey Wood Products, LLC | Sellers | ||
Ownership interest | 50% | |
Dempsey Wood Products, LLC | ||
Sellers put right | $ 50 | |
Call right | $ 70 | |
Carrying value | $ 58.9 |
FAIR VALUE - Asset Measured at
FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Fixed Income | Restricted Investment | ||
Fair Value | ||
Investments at fair value | $ 30,000 | $ 24,400 |
Money market funds | Cash and Cash Equivalents | ||
Fair Value | ||
Investments at fair value | 261,400 | 498,500 |
Money market funds | Restricted Investment | ||
Fair Value | ||
Investments at fair value | 300 | 400 |
Mutual funds, equity and alternative investments | Investments | ||
Fair Value | ||
Investments at fair value | 36,700 | 34,800 |
Mutual funds, equity and alternative investments | Other Non current Assets | ||
Fair Value | ||
Investments at fair value | 22,000 | 10,500 |
Money market and mutual funds | Other Non current Assets | ||
Fair Value | ||
Investments at fair value | 100 | 100 |
Ardellis Insurance Ltd. | ||
Fair Value | ||
Total Fair Value | 66,691 | 59,177 |
Estimate of Fair Value Measurement | Recurring | ||
Fair Value | ||
Investments at fair value | 350,467 | 568,655 |
Estimate of Fair Value Measurement | Recurring | Fixed Income | ||
Fair Value | ||
Investments at fair value | 29,607 | 24,088 |
Estimate of Fair Value Measurement | Recurring | Money market funds | ||
Fair Value | ||
Investments at fair value | 261,727 | 498,933 |
Estimate of Fair Value Measurement | Recurring | Treasury securities | ||
Fair Value | ||
Investments at fair value | 344 | 344 |
Estimate of Fair Value Measurement | Recurring | Equity | ||
Fair Value | ||
Investments at fair value | 39,279 | 26,911 |
Estimate of Fair Value Measurement | Recurring | Alternative Investments | ||
Fair Value | ||
Investments at fair value | 4,054 | 4,052 |
Estimate of Fair Value Measurement | Recurring | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 15,456 | 14,327 |
Estimate of Fair Value Measurement | Recurring | Domestic stock | ||
Fair Value | ||
Investments at fair value | 14,406 | 13,330 |
Estimate of Fair Value Measurement | Recurring | International stock funds | ||
Fair Value | ||
Investments at fair value | 550 | 509 |
Estimate of Fair Value Measurement | Recurring | Target funds | ||
Fair Value | ||
Investments at fair value | 9 | 9 |
Estimate of Fair Value Measurement | Recurring | Bond funds | ||
Fair Value | ||
Investments at fair value | 5 | 5 |
Estimate of Fair Value Measurement | Recurring | Alternative funds | ||
Fair Value | ||
Investments at fair value | 486 | 474 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value | ||
Investments at fair value | 288,984 | 528,994 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 5,130 | 5,112 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value | ||
Investments at fair value | 250,775 | 492,800 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Treasury securities | ||
Fair Value | ||
Investments at fair value | 344 | 344 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity | ||
Fair Value | ||
Investments at fair value | 17,279 | 16,411 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 15,456 | 14,327 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock | ||
Fair Value | ||
Investments at fair value | 14,406 | 13,330 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds | ||
Fair Value | ||
Investments at fair value | 550 | 509 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds | ||
Fair Value | ||
Investments at fair value | 9 | 9 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds | ||
Fair Value | ||
Investments at fair value | 5 | 5 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Alternative funds | ||
Fair Value | ||
Investments at fair value | 486 | 474 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | ||
Fair Value | ||
Investments at fair value | 35,429 | 25,109 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 24,477 | 18,976 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value | ||
Investments at fair value | 10,952 | 6,133 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | ||
Fair Value | ||
Investments at fair value | 26,054 | 14,552 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Equity | ||
Fair Value | ||
Investments at fair value | 22,000 | 10,500 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Alternative Investments | ||
Fair Value | ||
Investments at fair value | $ 4,054 | $ 4,052 |
FAIR VALUE - Available for Sale
FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Available-for-sale securities | ||
Total Securities Cost | $ 61,268 | $ 54,940 |
Unrealized Gain (Loss) | 5,423 | 4,237 |
Total Fair Value | 66,691 | 59,177 |
Fixed Income | ||
Available-for-sale securities | ||
Debt Securities Cost | 31,067 | 25,514 |
Debt Securities Unrealized Gain/(Loss) | (1,460) | (1,426) |
Debt Securities Fair Value | 29,607 | 24,088 |
Treasury securities | ||
Available-for-sale securities | ||
Debt Securities Cost | 344 | 344 |
Debt Securities Fair Value | 344 | 344 |
Equity | ||
Available-for-sale securities | ||
Equity Securities Cost | 13,669 | 13,523 |
Equity Securities Unrealized Gain/(Loss) | 3,610 | 2,888 |
Equity Securities Fair Value | 17,279 | 16,411 |
Mutual Fund | ||
Available-for-sale securities | ||
Debt Securities Cost | 12,922 | 12,348 |
Debt Securities Unrealized Gain/(Loss) | 2,485 | 1,934 |
Debt Securities Fair Value | 15,407 | 14,282 |
Alternative Investments | ||
Available-for-sale securities | ||
Debt Securities Cost | 3,266 | 3,211 |
Debt Securities Unrealized Gain/(Loss) | 788 | 841 |
Debt Securities Fair Value | $ 4,054 | $ 4,052 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 USD ($) item | Jul. 01, 2023 USD ($) | Jun. 29, 2024 USD ($) item | Jul. 01, 2023 USD ($) | |
Revenue Recognition. | ||||
Number of markets in which the entity operates (in markets) | item | 3 | 3 | ||
NET SALES | $ 1,901,959 | $ 2,043,918 | $ 3,540,925 | $ 3,866,394 |
Change % | (6.90%) | (8.40%) | ||
Point in Time Revenue | ||||
Revenue Recognition. | ||||
NET SALES | $ 1,857,264 | 2,006,319 | $ 3,462,099 | 3,790,775 |
Change % | (7.40%) | (8.70%) | ||
Over Time Revenue | ||||
Revenue Recognition. | ||||
NET SALES | $ 44,695 | $ 37,599 | $ 78,826 | $ 75,619 |
Change % | 18.90% | 4.20% | ||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31 | Over Time Revenue | ||||
Revenue Recognition. | ||||
Number of months to complete contract projects | 6 months | 6 months | ||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31 | Over Time Revenue | ||||
Revenue Recognition. | ||||
Number of months to complete contract projects | 18 months | 18 months |
REVENUE RECOGNITION - Percentag
REVENUE RECOGNITION - Percentage of completion (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
REVENUE RECOGNITION | |||
Cost and Earnings in Excess of Billings | $ 7,227 | $ 3,572 | $ 3,266 |
Billings in Excess of Cost and Earnings | $ 8,816 | $ 9,487 | $ 12,914 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Numerator: | ||||
Net Income (Loss) | $ 125,930 | $ 150,761 | $ 246,721 | $ 276,830 |
Adjustment for earnings allocated to non-vested restricted common stock equivalents | (4,781) | (7,588) | (9,684) | (13,096) |
Net earnings for calculating EPS | $ 121,149 | $ 143,173 | $ 237,037 | $ 263,734 |
Denominator: | ||||
Weighted average shares outstanding (in shares) | 61,668 | 62,786 | 61,817 | 62,756 |
Adjustment for non-vested restricted common stock equivalents (in shares) | (2,633) | (3,160) | (2,710) | (2,969) |
Shares for calculating basic EPS (in shares) | 59,035 | 59,626 | 59,107 | 59,787 |
Effect of dilutive restricted common stock equivalents (in shares) | 124 | 918 | 106 | 885 |
Shares for calculating diluted EPS (in shares) | 59,159 | 60,544 | 59,213 | 60,672 |
Net earnings per share | ||||
Basic (USD per share) | $ 2.05 | $ 2.40 | $ 4.01 | $ 4.41 |
Diluted (USD per share) | $ 2.05 | $ 2.36 | $ 4 | $ 4.35 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) $ in Millions | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Long-term commitment | |
Outstanding purchase commitments on capital projects | $ 109.7 |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | 43.8 |
Open Projects | |
Surety Bonds and Letters of Credit | |
Payment and performance bonds outstanding | 23.4 |
Completed Projects | |
Surety Bonds and Letters of Credit | |
Payment and performance bonds outstanding | 6.9 |
Insurance contracts and other legal agreements | |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | 40.4 |
Revenue Bonds | |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | $ 3.3 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 20, 2023 | Jun. 29, 2024 | |
Business Acquisition | ||
Aggregate acquisitions' net sales | $ 10,700 | |
Aggregate acquisitions' operating profit | $ 1,200 | |
UFP Palets | All Other | International Segment | ||
Business Acquisition | ||
Intangible Assets | $ 43,785 | |
Net tangible assets | 9,056 | |
Purchase consideration, equity method investment | $ 52,841 | |
Percentage of stock purchase (as a percent) | 80% | |
Acquired entity, trailing 12-months sales | $ 38,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Segment Reporting | ||||
Net sales | $ 1,901,959 | $ 2,043,918 | $ 3,540,925 | $ 3,866,394 |
Earnings from operations | 159,034 | 193,497 | 292,857 | 355,205 |
Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | (195,229) | (318,528) | (366,793) | (665,226) |
Corporate | ||||
Segment Reporting | ||||
Net sales | 1,671 | (868) | 2,611 | 2,365 |
Earnings from operations | 10,228 | 7,677 | 17,610 | 15,315 |
Retail | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 809,067 | 938,630 | 1,437,832 | 1,699,924 |
Earnings from operations | 59,783 | 60,211 | 105,763 | 100,469 |
Retail | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 70,102 | 198,518 | 129,448 | 421,843 |
Packaging | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 435,204 | 488,100 | 859,622 | 974,661 |
Earnings from operations | 29,516 | 56,864 | 60,762 | 111,596 |
Packaging | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 26,275 | 20,976 | 47,201 | 41,026 |
Construction | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 574,547 | 550,464 | 1,092,443 | 1,066,057 |
Earnings from operations | 52,011 | 61,959 | 97,353 | 116,207 |
Construction | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 18,797 | 23,554 | 38,832 | 49,390 |
All Other | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 81,470 | 67,592 | 148,417 | 123,387 |
Earnings from operations | 7,496 | 6,786 | 11,369 | 11,618 |
All Other | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | $ 80,055 | $ 75,480 | $ 151,312 | $ 152,967 |
SEGMENT REPORTING - Goodwill (D
SEGMENT REPORTING - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Goodwill | |
Goodwill, Beginning Balance | $ 336,313 |
Foreign Exchange, Net | (865) |
Goodwill, Ending Balance | 335,448 |
Retail | |
Goodwill | |
Goodwill, Beginning Balance | 84,204 |
Foreign Exchange, Net | (44) |
Goodwill, Ending Balance | 84,160 |
Packaging | |
Goodwill | |
Goodwill, Beginning Balance | 141,042 |
Goodwill, Ending Balance | 141,042 |
Construction | |
Goodwill | |
Goodwill, Beginning Balance | 87,805 |
Foreign Exchange, Net | (170) |
Goodwill, Ending Balance | 87,635 |
All Other | |
Goodwill | |
Goodwill, Beginning Balance | 23,262 |
Foreign Exchange, Net | (651) |
Goodwill, Ending Balance | $ 22,611 |
SEGMENT REPORTING - Assets (Det
SEGMENT REPORTING - Assets (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
Segment Reporting | |||
Segment assets | $ 4,138,494 | $ 4,017,797 | $ 3,843,943 |
Change in assets (as a percent) | 3% | ||
Corporate | |||
Segment Reporting | |||
Segment assets | $ 1,415,132 | 1,452,133 | |
Change in assets (as a percent) | (2.50%) | ||
Retail | Operating Segments | |||
Segment Reporting | |||
Segment assets | $ 916,574 | 828,798 | |
Change in assets (as a percent) | 10.60% | ||
Packaging | Operating Segments | |||
Segment Reporting | |||
Segment assets | $ 802,204 | 798,623 | |
Change in assets (as a percent) | 0.40% | ||
Construction | Operating Segments | |||
Segment Reporting | |||
Segment assets | $ 666,622 | 621,762 | |
Change in assets (as a percent) | 7.20% | ||
All Other | Operating Segments | |||
Segment Reporting | |||
Segment assets | $ 337,962 | $ 316,481 | |
Change in assets (as a percent) | 6.80% |
SEGMENT REPORTING - Gross Sales
SEGMENT REPORTING - Gross Sales by Major Product Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenue | ||||
Net sales | $ 1,901,959 | $ 2,043,918 | $ 3,540,925 | $ 3,866,394 |
Corporate | ||||
Revenue | ||||
Net sales | 1,671 | (868) | 2,611 | 2,365 |
Retail | Deckorators | ||||
Revenue | ||||
Net sales | 99,706 | 103,656 | 173,841 | 181,119 |
Retail | ProWood | ||||
Revenue | ||||
Net sales | 668,275 | 794,287 | 1,194,236 | 1,445,287 |
Retail | UFP Edge | ||||
Revenue | ||||
Net sales | 38,009 | 40,216 | 65,293 | 72,768 |
Retail | Other Retail | ||||
Revenue | ||||
Net sales | 3,077 | 471 | 4,462 | 750 |
Retail | Operating Segments | ||||
Revenue | ||||
Net sales | 809,067 | 938,630 | 1,437,832 | 1,699,924 |
Packaging | Structural Packaging | ||||
Revenue | ||||
Net sales | 280,102 | 330,510 | 554,252 | 658,760 |
Packaging | PalletOne | ||||
Revenue | ||||
Net sales | 136,911 | 136,937 | 269,401 | 274,507 |
Packaging | Protective Packaging | ||||
Revenue | ||||
Net sales | 18,191 | 20,653 | 35,969 | 41,394 |
Packaging | Operating Segments | ||||
Revenue | ||||
Net sales | 435,204 | 488,100 | 859,622 | 974,661 |
Construction | Factory Built | ||||
Revenue | ||||
Net sales | 225,242 | 180,024 | 417,076 | 347,637 |
Construction | Site Built | ||||
Revenue | ||||
Net sales | 238,547 | 248,445 | 460,106 | 469,562 |
Construction | Commercial | ||||
Revenue | ||||
Net sales | 66,347 | 66,320 | 127,731 | 138,665 |
Construction | Concrete Forming | ||||
Revenue | ||||
Net sales | 44,411 | 55,675 | 87,530 | 110,193 |
Construction | Operating Segments | ||||
Revenue | ||||
Net sales | 574,547 | 550,464 | 1,092,443 | 1,066,057 |
All Other | Operating Segments | ||||
Revenue | ||||
Net sales | $ 81,470 | $ 67,592 | $ 148,417 | $ 123,387 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
INCOME TAXES | ||||
Effective income tax rate | 25.10% | 23.70% | 21.50% | 23.70% |
COMMON STOCK - Common Stock Iss
COMMON STOCK - Common Stock Issuances (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Common Stock | ||||||
Common stock issued, net of forfeitures | 29,460 | 369,012 | 1,503 | 824,669 | ||
Repurchase of common stock (in shares) | 883,232 | 319,295 | 250,000 | 450,597 | 1,202,527 | 700,597 |
Average Share Price | ||||||
Repurchase of common stock (dollars per share) | $ 79.20 | $ 114.09 | $ 79.20 | |||
Stock Purchase Plan | ||||||
Common Stock | ||||||
Common stock issued | 15,000 | 19,000 | ||||
Average Share Price | ||||||
Common stock issued (dollars per share) | $ 116.64 | 87.86 | $ 116.64 | $ 87.86 | ||
Stock Gift Program | ||||||
Common Stock | ||||||
Common stock issued | 1,000 | 1,000 | ||||
Average Share Price | ||||||
Common stock issued (dollars per share) | 117.80 | 86.88 | $ 117.80 | $ 86.88 | ||
Director Compensation Plan | ||||||
Common Stock | ||||||
Common stock issued | 1,000 | |||||
Average Share Price | ||||||
Common stock issued (dollars per share) | 114.61 | $ 114.61 | ||||
Stock Retainer Plan | ||||||
Common Stock | ||||||
Common stock issued | 2,000 | |||||
Average Share Price | ||||||
Common stock issued (dollars per share) | 87.02 | $ 87.02 | ||||
LTSIP | ||||||
Common Stock | ||||||
Common stock issued | 352,000 | 756,000 | ||||
Average Share Price | ||||||
Common stock issued (dollars per share) | 113.49 | 86.14 | $ 113.49 | $ 86.14 | ||
Executive Stock Grants Plan | ||||||
Common Stock | ||||||
Common stock issued | 64,000 | 75,000 | ||||
Average Share Price | ||||||
Common stock issued (dollars per share) | 111.35 | 85.89 | $ 111.35 | $ 85.89 | ||
Deferred Compensation Plans | ||||||
Common Stock | ||||||
Common stock issued | 87,000 | 105,000 | ||||
Average Share Price | ||||||
Common stock issued (dollars per share) | 112.29 | 85.16 | $ 112.29 | $ 85.16 | ||
Stock grant programs | ||||||
Common Stock | ||||||
Common stock issued | 398,000 | 824,000 | ||||
Forfeitures | (20,000) | (10,000) | ||||
Average Share Price | ||||||
Common stock issued (dollars per share) | $ 113.14 | $ 86.12 | $ 113.14 | $ 86.12 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
INVENTORIES | ||
Adjustments to inventory | $ 0 | $ 0.8 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Aug. 07, 2024 | Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Subsequent Event | |||||||
Repurchase of shares | $ 100,564 | $ 36,636 | $ 20,216 | $ 35,268 | |||
Repurchase of shares (in shares) | 883,232 | 319,295 | 250,000 | 450,597 | 1,202,527 | 700,597 | |
Repurchase of common stock (dollars per share) | $ 79.20 | $ 114.09 | $ 79.20 | ||||
Subsequent Event | |||||||
Subsequent Event | |||||||
Repurchase of shares | $ 21,800 | ||||||
Repurchase of shares (in shares) | 197,417 | ||||||
Repurchase of common stock (dollars per share) | $ 110.22 |