Exhibit 99(a)
 

 
News release
 
---------------AT THE COMPANY---------------
 
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502

FOR IMMEDIATE RELEASE
Wednesday, February 18, 2015
 
Universal Forest Products, Inc. (UFPI) Reports 4th Quarter 2014 Results
Q4 Earnings up 16.5%; Net Sales up nearly 18% over 2013
2014 Annual Earnings up 33.6%, Net Sales up 7.7% over 2013
GRAND RAPIDS, Mich., Wed., Feb. 18, 2015 – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced 2014 results, including fourth-quarter net sales of $620.1 million, up 17.9 percent over results for the fourth quarter of 2013. Net earnings attributable to controlling interests in the fourth quarter of 2014 were $9.3 million, or $0.46 per diluted share, up 16.5 percent over the same period of 2013. The Company reported 2014 annual net sales of nearly $2.7 billion, a 7.7 percent increase over the previous year, and 2014 annual net earnings attributable to controlling interests of $57.6 million or $2.86 per diluted share, up 33.6 percent over 2013.
 
For the fourth quarter of 2014, the Company saw double-digit sales increases in each of its markets. The results reflect an increase in overall unit sales of 14 percent and an increase in commodity prices that impacted selling prices by four percent. Acquisitions made during the quarter contributed to sales growth, particularly to the industrial market.
 
“Our people continue to impress with their results.  Although 2014 started slow, we were able to finish strong with double-digit growth in both sales and profits,” said CEO Matthew J. Missad. “We are seeing growth both with existing customers and with new customers as we continue to build our new product pipeline. We were able to achieve our 2014 goals, and look to hitting even loftier goals in 2015.
 
—more—

Universal Forest Products, Inc.
Page 2
 
“I’m pleased that our focus on bringing new products to market resulted in approximately $150 million in new product sales in 2014. In addition, we closed on five acquisitions in 2014, including two in the industrial market in the fourth quarter, which contributed positively to our results. We are committed to executing our growth strategies to drive more value for our shareholders,”
 
Missad added.Missad said the Company continues to work on improving profits, noting that it was able to post strong results in Q4 in spite of the unusually early and harsh winter weather, which hampered productivity.
 
By market, the Company posted the following 2014 gross sales results:
Retail
 
· Fourth quarter:               $204.9 million, up 22 percent over the fourth quarter of 2013
 
· Year:                                 $1.0 billion, up 10 percent over 2013
 
The Company saw healthy sales growth to big box and independent retailers, reflecting improved consumer spending, healthy comparable store sales increases for the big box customers in recent quarters, and share and sales gains with big box and independent retailers alike. The Company continues to focus on diversifying its product offering, creating new products and improving upon existing products, as well as enhancing service to customers to grow business in this market.
Construction
 
· Fourth quarter:               $224.4 million, up 10 percent over the fourth quarter of 2013
 
· Year:                                 $885.3 million, up 2 percent over 2013
 
This market includes residential and manufactured housing, commercial construction and concrete forming.  Manufactured housing and site built construction (including multifamily and single-family) each saw modest gains in their most recently reported results. The Company’s concrete forming sales continue to be strong and provide a promising opportunity for growth and profitability for the foreseeable future. Through focused sales, innovation and diversification efforts and by growing business selectively, the Company expects to continue on a long-term path of growth and ever-improving profitability in this market.
Industrial
 
· Fourth quarter:               $198.6 million, up 24.0 percent over the fourth quarter of 2013
 
· Year:                                 $783.8 million, up 12.0 percent over 2013
 
This market includes packaging, material handling and related products and applications for industrial customers. Industrial production in the United States was up 4.9 percent in December 2014 over a year earlier.  Manufacturing output rose 0.3 percent in December of 2014, its fourth consecutive monthly gain. The Company continues its successful focus on adding customers and products, expanding its offering of products and services, and adding capacity. The Company also continues to expand its reach into non-wood packaging materials and seeks to offer complete packaging solutions to industrial customers.

—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 19, 2015. 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 (800) 706-7745 and internationally at (617) 614-3472. Use conference pass code 89137708. 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 March 15, 2015, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay pass code 43745004.

UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company with subsidiaries throughout North America and in Australia that supply wood, wood composite and other products to three robust markets: retail, construction and industrial. The Company is headquartered in Grand Rapids, Mich., and is celebrating its 60th year. For more information about Universal Forest Products, Inc., or its affiliated operations, 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 CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THE TWELVE MONTHS ENDED
DECEMBER 2014/2013

   
Quarter Period
       
Year to Date
     
(In thousands, except per share data)
 
2014
       
2013
       
2014
       
2013
     
       
       
       
       
 
NET SALES
 
$
620,090
     
100
%
 
$
525,738
     
100
%
 
$
2,660,329
     
100
%
 
$
2,470,448
     
100.0
%
                                                                 
COST OF GOODS SOLD
   
547,335
     
88.3
     
461,509
     
87.8
     
2,334,987
     
87.8
     
2,189,896
     
88.6
 
                                                                 
GROSS PROFIT
   
72,755
     
11.7
     
64,229
     
12.2
     
325,342
     
12.2
     
280,552
     
11.4
 
                                                                 
SELLING,   GENERAL  AND ADMINISTRATIVE  EXPENSES
   
56,940
     
9.2
     
50,042
     
9.5
     
229,775
     
8.6
     
204,390
     
8.3
 
ANTI-DUMPING DUTY ASSESSMENTS
   
-
     
-
     
-
     
-
     
1,600
     
0.1
     
1,526
     
0.1
 
NET (GAIN) LOSS ON DISPOSITION AND
                                                               
IMPAIRMENT OF ASSETS 1
   
18
     
-
     
621
     
0.1
     
(3,400
)
   
(0.1
)
   
368
     
-
 
                                                                 
EARNINGS FROM OPERATIONS
   
15,797
     
2.5
     
13,566
     
2.6
     
97,367
     
3.7
     
74,268
     
3.0
 
                                                                 
OTHER EXPENSE, NET
   
(309
)
   
-
     
1,041
     
0.2
     
1,654
     
0.1
     
4,010
     
0.2
 
                                                                 
EARNINGS BEFORE INCOME TAXES
   
16,106
     
2.6
     
12,525
     
2.4
     
95,713
     
3.6
     
70,258
     
2.8
 
                                                                 
INCOME TAXES 1
   
5,149
     
0.8
     
3,865
     
0.7
     
34,149
     
1.3
     
24,454
     
1.0
 
                                                                 
NET EARNINGS
   
10,957
     
1.8
     
8,660
     
1.6
     
61,564
     
2.3
     
45,804
     
1.9
 
                                                                 
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST 1
   
(1,644
)
   
(0.3
)
   
(665
)
   
(0.1
)
   
(4,013
)
   
(0.2
)
   
(2,722
)
   
(0.1
)
                                                                 
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST
 
$
9,313
     
1.5
   
$
7,995
     
1.5
   
$
57,551
     
2.2
   
$
43,082
     
1.7
 
                                                                 
EARNINGS PER SHARE - BASIC
 
$
0.46
           
$
0.40
           
$
2.87
           
$
2.16
         
                                                                 
EARNINGS PER SHARE - DILUTED
 
$
0.46
           
$
0.40
           
$
2.86
           
$
2.15
         
                                                                 
COMPREHENSIVE INCOME
   
9,685
             
8,191
             
59,407
             
45,020
         
                                                                 
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
   
(1,791
)
           
(631
)
           
(3,974
)
           
(2,730
)
       
                                                                 
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
 
$
7,894
           
$
7,560
           
$
55,433
           
$
42,290
         
 
1 Included within net gain on disposition and impairment of assets for the third quarter of 2014 was a gain on the sale of certain property totaling $2.7 million completed by a 50% owned subsidiary of the Company.  After considering the $1.35 million noncontrolling interest of this gain and income taxes, net earnings attributable to controlling interest was approximately $700,000 higher as a result of these transactions.
 
SUPPLEMENTAL SALES DATA

   
Quarter Period
   
Year to Date
 
Market Classification
 
2014
   
2013
   
%
   
2014
   
2013
   
%
 
Retail
 
$
204,922
   
$
167,958
     
22
%
 
$
1,028,783
   
$
936,141
     
10
%
Industrial
   
198,594
     
160,475
     
24
%
   
783,805
     
699,688
     
12
%
Construction
   
224,387
     
204,297
     
10
%
   
885,348
     
868,083
     
2
%
Total Gross Sales
   
627,903
     
532,730
     
18
%
   
2,697,936
     
2,503,912
     
8
%
Sales Allowances
   
(7,813
)
   
(6,992
)
           
(37,607
)
   
(33,464
)
       
Total Net Sales
 
$
620,090
   
$
525,738
           
$
2,660,329
   
$
2,470,448
         
 

Universal Forest Products, Inc.
Page 5
 
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
DECEMBER 2014/2013

(In thousands)
ASSETS
 
2014
   
2013
 
LIABILITIES AND EQUITY
 
2014
   
2013
 
 
 
   
     
   
 
CURRENT ASSETS
 
   
 
CURRENT LIABILITIES
 
   
 
Restricted cash
   
405
     
720
 
Cash Overdraft
   
621
     
1,079
 
Accounts receivable
   
195,912
     
180,452
 
Accounts payable
   
89,105
     
72,918
 
Inventories
   
340,048
     
287,305
 
Accrued liabilities
   
85,734
     
65,102
 
Other current assets
   
36,641
     
27,921
 
 
               
 
                                 
TOTAL CURRENT ASSETS
   
573,006
     
496,398
 
TOTAL CURRENT LIABILITIES
   
175,460
     
139,099
 
 
                                 
OTHER ASSETS
   
10,644
     
13,452
                 
INTANGIBLE ASSETS, NET
   
191,881
     
169,727
 
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
   
98,645
     
84,700
 
               
OTHER LIABILITIES
   
50,135
     
43,454
 
PROPERTY, PLANT AND EQUIPMENT,  NET
   
248,269
     
237,410
 
EQUITY
   
699,560
     
649,734
 
 
                                 
TOTAL ASSETS
 
$
1,023,800
   
$
916,987
 
TOTAL LIABILITIES AND EQUITY
 
$
1,023,800
   
$
916,987
 
 

Universal Forest Products, Inc.
Page 6
 
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE TWELVE MONTHS ENDED
DECEMBER 2014/2013
 
(In thousands)
 
2014
   
2013
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
   
 
Net earnings
 
$
61,564
   
$
45,804
 
Adjustments to reconcile net earnings attributable to controlling interest to net cash from operating activities:
               
Depreciation
   
33,913
     
31,091
 
Amortization of intangibles
   
2,410
     
2,473
 
Expense associated with share-based compensation arrangements
   
1,919
     
1,874
 
Excess tax benefits from share-based compensation arrangements
   
(14
)
   
(112
)
Expense associated with stock grant plans
   
94
     
58
 
Loss reserve for notes receivable
   
-
     
15
 
Deferred income taxes (credit)
   
4,926
     
4,453
 
Equity in earnings of investee
   
(378
)
   
(201
)
Net (gain) or loss on sale of property, plant and equipment
   
(3,400
)
   
297
 
Changes in:
               
Accounts receivable
   
(9,710
)
   
(17,886
)
Inventories
   
(49,575
)
   
(42,287
)
Accounts payable and cash overdraft
   
15,390
     
7,835
 
Accrued liabilities and other
   
15,981
     
21,026
 
NET CASH FROM OPERATING ACTIVITIES
   
73,120
     
54,440
 
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Purchases of property, plant, and equipment
   
(45,305
)
   
(40,023
)
Proceeds from sale of property, plant and equipment
   
9,005
     
1,778
 
Acquisitions, net of cash received
   
(34,641
)
   
(11,478
)
Purchase of patents & product technology
   
-
     
(143
)
Advances of notes receivable
   
(6,201
)
   
(2,673
)
Collections of notes receivable and related interest
   
9,926
     
2,814
 
Cash restricted as to use
   
315
     
6,111
 
Other, net
   
(162
)
   
11
 
NET CASH FROM INVESTING ACTIVITIES
   
(67,063
)
   
(43,603
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Borrowings under revolving credit facilities
   
211,770
     
251,801
 
Repayments under revolving credit facilities
   
(197,825
)
   
(262,891
)
Debt issuance costs
   
(724
)
   
(46
)
Proceeds from issuance of common stock
   
541
     
2,144
 
Distributions to noncontrolling interest
   
(1,910
)
   
(1,460
)
Capital contribution from noncontrolling interest
   
-
     
84
 
Dividends paid to shareholders
   
(12,205
)
   
(8,166
)
Repurchase of common stock
   
(4,866
)
   
-
 
Excess tax benefits from share-based compensation arrangements
   
14
     
112
 
NET CASH FROM FINANCING ACTIVITIES
   
(5,205
)
   
(18,422
)
                 
Effect of exchange rate changes on cash
   
(852
)
   
(62
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
   
-
     
(7,647
)
                 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
   
-
     
7,647
 
                 
CASH AND CASH EQUIVALENTS, END OF PERIOD
 
$
-
   
$
-
 
                 
SUPPLEMENTAL INFORMATION:
               
Interest paid
 
$
4,334
   
$
4,883
 
Income taxes paid
   
38,475
     
14,427
 
 
 



The following information was filed by Universal Forest Products Inc (UFPI) on Wednesday, February 18, 2015 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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