Exhibit 99(a)
 

News release

---------------AT THE COMPANY---------------

Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502

FOR IMMEDIATE RELEASE
Wednesday, February 12, 2014

 
Universal Forest Products, Inc. (UFPI) Net Sales up nearly 12% in 4th Quarter 2013 over 2012
4th Quarter 2013 Net Earnings of $8 million compare to $1.9 million loss in 4th Quarter 2012
—Annual 2013 results vs. 2012: Net Earnings jump 80% and Net Sales up more than 20%—

GRAND RAPIDS, Mich., Wed., Feb. 12, 2014 – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced 2013 results, including fourth-quarter net sales of $525.7 million, up 11.7 percent over the fourth quarter of 2012.  Net earnings in the fourth quarter of 2013 were $8.0 million, or $.40 per diluted share, compared to a loss of $1.9 million, or ($.10) per diluted share, in the fourth quarter of 2012.  The Company reported annual net sales of $2.5 billion for 2013, an increase of 20.2 percent over 2012.  Annual net earnings in 2013 were $43.1 million, or $2.15 per diluted share, compared to annual net earnings of $23.9 million, or $1.21 per diluted share in 2012.

“We benefited from consistent performance in all markets due to a number of factors in the fourth quarter, not the least of which was the hard work of our people in all areas of our organization,” said CEO Matthew J. Missad. “We saw much improved performance in housing and construction versus last year and a high and steadily rising lumber market through most of the fourth quarter. Our industrial sales also were strong. And sales to retail remained steady. Higher volume enabled us to keep our facilities operating at a reasonable level, enhancing our operating leverage.”

“I’m pleased with the progress on our growth strategies, including our focus on developing new products, which resulted in $85 million in new product sales in 2013,” Missad added. “I’m proud of our performance and I look forward to leveraging our many opportunities to continue these improvements in profitability and sales.”

For the fourth quarter of 2013, the lumber composite price was up 11.5 percent over the same period of 2012, resulting in a 7 percent increase in selling prices. Unit sales increased 5 percent on a comparative quarter basis. For the year, the lumber composite price was up 18.2 percent over 2012, resulting in a 12 percent increase in selling prices. Unit sales increased 8 percent for the year.
 
—more—

Universal Forest Products, Inc.
Page 2
 
By market, the Company posted the following 2013 gross sales results:

Retail
· Fourth quarter:     $168.8 million, up 6.6 percent over the same period of 2012
· Year:                       $936.6 million, up 11.9 percent over 2012
The Company saw positive results from its efforts to diversify product mix, enhance service, create new products and improve upon existing product lines to grow business with big box and independent retailers alike. The Company’s optimism in this market is fueled by healthy comparable sales at big box retailers and by forecasts that call for continued growth in home improvement activities in the coming years.

Construction
· Fourth quarter:     $203.3 million, up 14.5 percent over the fourth quarter of 2012
· Year:                       $865.6 million, up 31.3 percent over 2012
This market includes residential and manufactured housing, commercial construction and concrete forming. Both of the housing-related markets—site-built (including multifamily and single-family) and factory built—saw significant growth in the fourth quarter of 2013 and are expected to see continued growth in 2014, according to recent industry forecasts. While lumber prices had a positive impact on these results, the Company’s efforts to create steady, long-term growth by diversifying both its business and customer base in the construction arena are proving effective. The Company also experienced share gains in nonresidential construction in the fourth quarter of 2013.

Industrial
· Fourth quarter:     $160.6 million, up 14.0 percent over the same period of 2012
· Year:                       $701.7 million, up 19.0 percent over 2012
Industrial production in the United States edged up 0.3 percent in December of 2013 after advancing 1.0 percent in November. Manufacturing output rose 0.4 percent in December of 2013, its fifth consecutive monthly gain, and was up 2.6 percent for the year.  The Company continues its successful focus on adding customers and products. The Company also is focused on expanding its reach into non-wood packaging materials and on providing complete packaging solutions to industrial customers.

The Company remains focused on its goals of achieving $3 billion in sales by 2017 and returning to operating margins at normal historical levels. “We continue to seek acquisition targets that are aligned with our strategic objectives to grow in various markets and industries,” Missad said. He added that the Company decided not to pursue its recently announced intent to acquire National Fiber, a leading manufacturer of cellulose insulation located in Belchertown, Mass.

“We were disappointed and wish National Fiber well,” Missad said. “We’ll continue to execute on our growth strategies, maintain our dedication to being better tomorrow than we were today and focus on our customers and their needs, and I am confident we will reach our goals.”

—more—

Universal Forest Products, Inc.
Page 3
 
CONFERENCE CALL
Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. ET on Thursday, February 13, 2014. The call will be hosted by CEO Matthew J. Missad and CFO Michael Cole, and will be available for analysts and institutional investors domestically at (866) 515-2910 and internationally at (617) 399-5124. Use conference pass code 79724243. The conference call will be available simultaneously and in its entirety to all interested investors and news media through a webcast at http://www.ufpi.com. A replay of the call will be available through February 20, 2014, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay pass code 83519895.

UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to three robust markets: retail, construction and industrial.  Founded in 1955, the Company is headquartered in Grand Rapids, Mich., with affiliates throughout North America. For more about Universal Forest Products, 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.


# # #

Universal Forest Products, Inc.
Page 4
 
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THE TWELVE MONTHS ENDED
DECEMBER 2013/2012

 
 
Quarter Period
   
Year to Date
 
(In thousands, except per share data)
 
2013
   
2012
   
2013
   
2012
 
 
 
   
   
   
   
   
   
   
 
 
 
   
   
   
   
   
   
   
 
 
 
   
   
   
   
   
   
   
 
NET SALES
 
$
525,738
     
100
%
 
$
470,763
     
100
%
 
$
2,470,448
     
100
%
 
$
2,054,933
     
100.0
%
 
                                                               
COST OF GOODS SOLD
   
461,509
     
87.8
     
426,621
     
90.6
     
2,189,896
     
88.6
     
1,829,824
     
89.0
 
 
                                                               
GROSS PROFIT
   
64,229
     
12.2
     
44,142
     
9.4
     
280,552
     
11.4
     
225,109
     
11.0
 
 
                                                               
SELLING, GENERALAND ADMINISTRATIVE  EXPENSES
   
50,042
     
9.5
     
44,849
     
9.5
     
204,390
     
8.3
     
184,919
     
9.0
 
ANTI-DUMPING DUTY ASSESSMENTS
   
-
     
-
     
-
     
-
     
1,526
     
0.1
     
2,328
     
0.1
 
NET GAIN ON DISPOSITION OF ASSETS, EARLY RETIREMENT, AND OTHER IMPAIRMENT AND EXIT CHARGES
   
621
     
0.1
     
386
     
0.1
     
368
     
-
     
(6,666
)
   
(0.3
)
 
                                                               
EARNINGS FROM OPERATIONS
   
13,566
     
2.6
     
(1,093
)
   
(0.2
)
   
74,268
     
3.0
     
44,528
     
2.2
 
 
                                                               
OTHER EXPENSE, NET
   
1,041
     
0.2
     
1,134
     
0.2
     
4,010
     
0.2
     
3,464
     
0.2
 
 
                                                               
EARNINGS BEFORE INCOME TAXES
   
12,525
     
2.4
     
(2,227
)
   
(0.5
)
   
70,258
     
2.8
     
41,064
     
2.0
 
 
                                                               
INCOME TAXES
   
3,865
     
0.7
     
(1,086
)
   
(0.2
)
   
24,454
     
1.0
     
15,054
     
0.7
 
 
                                                               
NET EARNINGS
   
8,660
     
1.6
     
(1,141
)
   
(0.2
)
   
45,804
     
1.9
     
26,010
     
1.3
 
 
                                                               
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST
   
(665
)
   
(0.1
)
   
(786
)
   
(0.2
)
   
(2,722
)
   
(0.1
)
   
(2,076
)
   
(0.1
)
 
                                                               
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST
 
$
7,995
     
1.5
   
$
(1,927
)
   
(0.4
)
 
$
43,082
     
1.7
   
$
23,934
     
1.2
 
 
                                                               
EARNINGS PER SHARE - BASIC
 
$
0.40
           
$
(0.10
)
         
$
2.16
           
$
1.21
         
 
                                                               
EARNINGS PER SHARE - DILUTED
 
$
0.40
           
$
(0.10
)
         
$
2.15
           
$
1.21
         
 
                                                               
COMPREHENSIVE INCOME
   
8,191
             
(1,500
)
           
45,020
             
26,990
         
 
                                                               
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
   
(631
)
           
(724
)
           
(2,730
)
           
(2,398
)
       
 
                                                               
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
 
$
7,560
           
$
(2,224
)
         
$
42,290
           
$
24,592
         


 
SUPPLEMENTAL SALES DATA

 
 
Quarter Period
   
Year to Date
 
Market Classification
 
2013
   
2012
   
%
   
2013
   
2012
   
%
 
Retail Building Materials
 
$
168,779
   
$
158,259
     
7
%
 
$
936,590
   
$
836,670
     
12
%
Industrial
   
160,609
     
140,880
     
14
%
   
701,688
     
589,893
     
19
%
 
                                               
Residential Construction
   
81,969
     
74,396
     
10
%
   
340,296
     
255,544
     
33
%
Commercial Construction and Concrete Forming
   
32,015
     
21,849
     
47
%
   
136,641
     
89,804
     
52
%
Manufactured Housing
   
89,359
     
81,365
     
10
%
   
388,697
     
314,095
     
24
%
Housing and Construction
   
203,343
     
177,610
             
865,634
     
659,443
         
Total Gross Sales
   
532,731
     
476,749
     
12
%
   
2,503,912
     
2,086,006
     
20
%
Sales Allowances
   
(6,993
)
   
(5,986
)
           
(33,464
)
   
(31,073
)
       
Total Net Sales
 
$
525,738
   
$
470,763
           
$
2,470,448
   
$
2,054,933
         


Universal Forest Products, Inc.
Page 5
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
DECEMBER 2013/2012
(In thousands)
 
   
 
 
 
   
 
ASSETS
 
2013
   
2012
 
LIABILITIES AND EQUITY
 
2013
   
2012
 
 
 
   
 
 
 
   
 
CURRENT ASSETS
 
   
 
CURRENT LIABILITIES
 
   
 
Cash and cash equivalents
 
$
-
   
$
7,647
 
Cash overdraft
 
$
1,079
   
$
-
 
Restricted cash
   
720
     
6,831
 
Accounts payable
   
72,918
     
66,054
 
Accounts receivable
   
180,452
     
163,225
 
Accrued liabilities
   
65,102
     
48,730
 
Inventories
   
287,305
     
243,180
 
 
               
Other current assets
   
27,921
     
32,290
 
 
               
 
               
 
               
 
               
 
               
 
               
 
               
TOTAL CURRENT ASSETS
   
496,398
     
453,173
 
TOTAL CURRENT LIABILITIES
   
139,099
     
114,784
 
 
               
 
               
OTHER ASSETS
   
13,452
     
16,342
 
LONG-TERM DEBT AND
               
INTANGIBLE ASSETS, NET
   
169,727
     
169,757
 
CAPITAL LEASE OBLIGATIONS,
               
PROPERTY, PLANT
               
less current portion
   
84,700
     
95,790
 
AND EQUIPMENT,  NET
   
237,410
     
221,268
 
OTHER LIABILITIES
   
43,454
     
42,441
 
 
               
EQUITY
   
649,734
     
607,525
 
 
               
 
               
TOTAL ASSETS
 
$
916,987
   
$
860,540
 
TOTAL LIABILITIES AND EQUITY
 
$
916,987
   
$
860,540
 


Universal Forest Products, Inc.
Page 6
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE TWELVE MONTHS ENDED
DECEMBER 2013/2012

(In thousands)
 
2013
   
2012
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
   
 
Net earnings
 
$
45,804
   
$
26,010
 
Adjustments to reconcile net earnings attributable to controlling interestto net cash from operating activities:
               
Depreciation
   
31,091
     
30,461
 
Amortization of intangibles
   
2,473
     
2,918
 
Expense associated with share-based compensation arrangements
   
1,932
     
1,270
 
Excess tax benefits from share-based compensation arrangements
   
(112
)
   
(75
)
Expense associated with stock grant plans
   
-
     
97
 
Loss reserve for notes receivable
   
15
     
2,131
 
Deferred income taxes
   
4,453
     
2,526
 
Net earnings attributable to noncontrolling interest
   
-
     
-
 
Equity in earnings of investee
   
(201
)
   
(79
)
Net gain (loss) on sale or impairment of property, plant and equipment
   
297
     
(6,890
)
Changes in:
               
Accounts receivable
   
(17,886
)
   
(32,274
)
Inventories
   
(42,287
)
   
(45,529
)
Accounts payable
   
6,756
     
16,281
 
Accrued liabilities and other
   
21,026
     
(2,568
)
NET CASH FROM OPERATING ACTIVITIES
   
53,361
     
(5,721
)
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Purchases of property, plant, and equipment
   
(40,023
)
   
(30,344
)
Proceeds from sale of property, plant and equipment
   
1,778
     
18,240
 
Acquisitions, net of cash received
   
(11,478
)
   
(16,974
)
Purchase of patents & product technology
   
(143
)
   
(95
)
Advances of notes receivable
   
(2,673
)
   
(1,183
)
Collections of notes receivable and related interest
   
2,814
     
2,839
 
Cash restricted as to use
   
6,111
     
(6,178
)
Other, net
   
11
     
(528
)
NET CASH FROM INVESTING ACTIVITIES
   
(43,603
)
   
(34,223
)
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Net borrowings (repayments) under revolving credit facilities
   
(11,090
)
   
11,090
 
Repayment of long-term debt
   
-
     
(42,774
)
Borrowings of long-term debt
   
-
     
75,000
 
Debt issuance costs
   
(46
)
   
(266
)
Proceeds from issuance of common stock
   
2,144
     
2,061
 
Distributions to noncontrolling interest
   
(1,460
)
   
(871
)
Capital contribution from noncontrolling interest
   
84
     
281
 
Dividends paid to shareholders
   
(8,166
)
   
(7,905
)
Excess tax benefits from share-based compensation arrangements
   
112
     
75
 
Other, net
   
-
     
4
 
NET CASH FROM FINANCING ACTIVITIES
   
(18,422
)
   
36,695
 
 
               
Effect of exchange rate changes on cash
   
(62
)
   
244
 
NET CHANGE IN CASH AND CASH EQUIVALENTS
   
(8,726
)
   
(3,005
)
 
               
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
   
7,647
     
10,652
 
 
               
CASH (CASH OVERDRAFT), END OF PERIOD
 
$
(1,079
)
 
$
7,647
 
 
               
SUPPLEMENTAL INFORMATION:
               
Interest paid
 
$
4,883
   
$
3,982
 
Income taxes paid
   
14,427
     
16,751
 

 


The following information was filed by Universal Forest Products Inc (UFPI) on Wednesday, February 12, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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