UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~March 26, ~~2021~~2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-22684

UFP INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)


	Michigan		38-1465835
	(State or other jurisdiction of incorporation or		(I.R.S. Employer Identification Number)
	organization)

	2801 East Beltline NE, Grand Rapids, Michigan		49525
	(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (616) 364-6161


	NONE
	(Former name or former address, if changed since last report.)

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ⌧	Accelerated Filer ◻	Non-Accelerated Filer ◻	Smaller Reporting Company ☐
			Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by checkmark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:


	Class		Outstanding as of ~~June~~March 26, ~~2021~~2022
	Common stock, $1 par value		~~61,850,733~~62,734,161


Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Stock, no par value	UFPI	The Nasdaq Stock Market, LLC

Table of Contents

UFP INDUSTRIES, INC.

TABLE OF CONTENTS

PART I.		FINANCIAL INFORMATION.	Page No.

	Item 1.	Financial Statements

		Condensed Consolidated Balance Sheets at ~~June~~March 26, 2022, December 25, 2021 ~~December 26, 2020~~ and ~~June~~March 27, ~~2020~~2021	3

		Condensed Consolidated Statements of Earnings and Comprehensive Income for the Three ~~and Six~~ Months Ended ~~June~~March 26, ~~2021~~2022 and ~~June~~March 27, ~~2020~~2021	4

		Condensed Consolidated Statements of Shareholders’ Equity for the Three ~~and Six~~ Months Ended ~~June~~March 26, ~~2021~~2022 and ~~June~~March 27, ~~2020~~2021	5

		Condensed Consolidated Statements of Cash Flows for the ~~Six~~Three Months Ended ~~June~~March 26, ~~2021~~2022 and ~~June~~March 27, ~~2020~~2021	76

		Notes to Unaudited Condensed Consolidated Financial Statements	87

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1817

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	3428

	Item 4.	Controls and Procedures	3429

PART II.		OTHER INFORMATION

	Item 1.	Legal Proceedings – NONE

	Item 1A.	Risk Factors - NONE	3529

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3529

	Item 3.	Defaults upon Senior Securities – NONE

	Item 4.	Mine Safety Disclosures – NONE

	Item 5.	Other Information – NONE	3530

	Item 6.	Exhibits	3530

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(in thousands, except share data)
	June 26,		December 26,			June 27,		March 26,		December 25,		March 27,
	2021		2020			2020		2022		2021		2021
ASSETS
CURRENT ASSETS:					��
Cash and cash equivalents	$	44,286	$	436,507		$	200,546	$	73,783	$	286,662	$	44,399
Restricted cash		629		101			724		729		4,561		629
Investments		33,827		24,308			19,195		35,465		36,495		31,439
Accounts receivable, net		980,571		470,504			522,930		1,095,362		737,805		808,105
Inventories:
Raw materials		540,289		316,481			244,073		576,023		416,043		438,762
Finished goods		486,199		250,813			215,351		654,328		547,277		384,652
Total inventories		1,026,488		567,294			459,424		1,230,351		963,320		823,414
Refundable income taxes		—		5,836			—		—		4,806		—
Other current assets		36,699		33,812			33,786		36,727		39,827		29,072
TOTAL CURRENT ASSETS		2,122,500		1,538,362			1,236,605		2,472,417		2,073,476		1,737,058
DEFERRED INCOME TAXES		2,362		2,413			2,058		3,590		3,462		2,290
RESTRICTED INVESTMENTS		18,896		17,565			17,162		19,390		19,310		17,209
RIGHT OF USE ASSETS		97,597		77,245			77,039		99,914		96,703		98,404
OTHER ASSETS		29,631		20,298			24,205		32,544		31,876		27,358
GOODWILL		318,108		252,193			247,482		317,631		315,038		314,189
INDEFINITE-LIVED INTANGIBLE ASSETS		7,401		7,401			7,350		7,396		7,369		7,401
OTHER INTANGIBLE ASSETS, NET		98,601		72,252			45,131		120,205		109,017		93,812
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment		1,120,381		974,497			922,427		1,244,070		1,212,113		1,060,893
Less accumulated depreciation and amortization		(587,194)		(557,335)			(520,851)		(643,191)		(623,093)		(572,526)
PROPERTY, PLANT AND EQUIPMENT, NET		533,187		417,162			401,576		600,879		589,020		488,367
TOTAL ASSETS		3,228,283		2,404,891			2,058,608		3,673,966		3,245,271		2,786,088
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Cash overdraft	$	34,229	$	—		$	—	$	61,711	$	17,030	$	47,140
Accounts payable		359,484		211,518			199,338		425,956		319,125		299,398
Accrued liabilities:
Compensation and benefits		213,655		166,478			129,290		189,509		289,196		137,208
Income taxes		11,188		—			25,109		54,682		—		25,565
Other		90,153		69,104			63,278		102,434		84,853		78,560
Current portion of lease liability		22,511		16,549			15,411		26,015		23,155		23,051
Current portion of long-term debt		97		100			2,786		42,895		42,683		109
TOTAL CURRENT LIABILITIES		731,317		463,749			435,212		903,202		776,042		611,031
LONG-TERM DEBT		571,856		311,607			161,057		379,015		277,567		426,310
LEASE LIABILITY		78,564		61,509			61,674		76,969		76,632		76,408
DEFERRED INCOME TAXES		34,983		25,266			22,685		61,278		60,964		34,940
OTHER LIABILITIES		52,000		59,608			38,655		35,330		37,497		50,856
TOTAL LIABILITIES		1,468,720		921,739			719,283		1,455,794		1,228,702		1,199,545
SHAREHOLDERS’ EQUITY:
Controlling interest shareholders’ equity:
Preferred stock, 0 par value; shares authorized 1,000,000; issued and outstanding, NaN	$	—	$	—		$	—	$	—	$	—	$	—
Common stock, $1 par value; shares authorized 80,000,000; issued and outstanding, 61,850,733, 61,205,780 and 61,169,181		61,851		61,206			61,169
Common stock, $1 par value; shares authorized 80,000,000; issued and outstanding, 62,734,161, 61,901,851 and 61,838,256									62,734		61,902		61,838
Additional paid-in capital		235,309		218,224			213,809		266,544		243,995		231,111
Retained earnings		1,440,833		1,182,680			1,057,817		1,851,784		1,678,121		1,276,722
Accumulated other comprehensive loss		(1,464)		(1,794)			(8,396)		(3,170)		(5,405)		(3,464)
Total controlling interest shareholders’ equity		1,736,529		1,460,316			1,324,399		2,177,892		1,978,613		1,566,207
Noncontrolling interest		23,034		22,836			14,926		40,280		37,956		20,336
TOTAL SHAREHOLDERS’ EQUITY		1,759,563		1,483,152			1,339,325		2,218,172		2,016,569		1,586,543
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,228,283	$	2,404,891		$	2,058,608	$	3,673,966	$	3,245,271	$	2,786,088

See notes to consolidated condensed financial statements.

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

AND COMPREHENSIVE INCOME

(Unaudited)


(in thousands, except per share data)
	Three Months Ended				Six Months Ended				Three Months Ended
	June 26,		June 27,		June 26,		June 27,		March 26,		March 27,
	2021		2020		2021		2020		2022		2021
NET SALES	$	2,700,541	$	1,242,001	$	4,525,545	$	2,274,063	$	2,489,313	$	1,825,004
COST OF GOODS SOLD		2,279,247		1,037,070		3,817,697		1,901,896		2,010,950		1,538,450
GROSS PROFIT		421,294		204,931		707,848		372,167		478,363		286,554
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		184,539		113,781		334,637		223,121		220,150		150,098
OTHER GAINS, NET		(180)		(1,209)		(1,211)		(1,944)		(812)		(1,031)
EARNINGS FROM OPERATIONS		236,935		92,359		374,422		150,990		259,025		137,487
INTEREST EXPENSE		3,899		1,898		7,050		3,805		3,302		3,151
INTEREST AND INVESTMENT INCOME		(1,689)		(2,890)		(3,985)		(58)
INTEREST AND INVESTMENT LOSS (INCOME)										1,093		(2,296)
EQUITY IN EARNINGS OF INVESTEE		835		—		1,465		—		515		630
		3,045		(992)		4,530		3,747		4,910		1,485
EARNINGS BEFORE INCOME TAXES		233,890		93,351		369,892		147,243		254,115		136,002
INCOME TAXES		58,530		23,657		90,281		36,979		60,984		31,751
NET EARNINGS		175,360		69,694		279,611		110,264		193,131		104,251
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST		(1,978)		(3,231)		(2,918)		(3,642)		(3,428)		(940)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$	173,382	$	66,463	$	276,693	$	106,622	$	189,703	$	103,311

EARNINGS PER SHARE – BASIC	$	2.79	$	1.08	$	4.46	$	1.73	$	3.01	$	1.67
EARNINGS PER SHARE – DILUTED	$	2.78	$	1.08	$	4.45	$	1.73	$	3.00	$	1.67

OTHER COMPREHENSIVE INCOME:
NET EARNINGS		175,360		69,694		279,611		110,264		193,131		104,251
OTHER COMPREHENSIVE GAIN (LOSS)		2,720		2,839		524		(5,717)		3,184		(2,196)
COMPREHENSIVE INCOME		178,080		72,533		280,135		104,547		196,315		102,055
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST		(2,698)		(3,356)		(3,112)		(1,432)		(4,377)		(414)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$	175,382	$	69,177	$	277,023	$	103,115	$	191,938	$	101,641

See notes to consolidated condensed financial statements.

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)


(in thousands, except share and per share data)
	Controlling Interest Shareholders’ Equity												Controlling Interest Shareholders’ Equity
							Accumulated												Accumulated
			Additional				Other								Additional				Other
	Common		Paid-In		Retained		Comprehensive		Noncontrolling				Common		Paid-In		Retained		Comprehensive		Noncontrolling
	Stock		Capital		Earnings		Earnings		Interest		Total		Stock		Capital		Earnings		Earnings		Interest		Total
Balance on December 26, 2020	$	61,206	$	218,224	$	1,182,680	$	(1,794)	$	22,836	$	1,483,152
Balance on December 25, 2021													$	61,902	$	243,995	$	1,678,121	$	(5,405)	$	37,956	$	2,016,569
Net earnings						103,311				940		104,251						189,703				3,428		193,131
Foreign currency translation adjustment								(374)		(526)		(900)								2,930		949		3,879
Unrealized loss on debt securities								(1,296)				(1,296)								(695)				(695)
Distributions to noncontrolling interest										(2,914)		(2,914)										(2,053)		(2,053)
Cash dividends - $0.15 per share - quarterly						(9,274)						(9,274)
Issuance of 5,816 shares under employee stock purchase plan		6		357								363
Net issuance of 536,970 shares under stock grant programs		537		3,888		5						4,430
Issuance of 89,690 shares under deferred compensation plans		89		(89)								—
Additional purchase of noncontrolling interest																								—
Cash dividends - $0.20 per share - quarterly																		(12,541)						(12,541)
Issuance of 9,734 shares under employee stock purchase plan														10		653								663
Issuance of 787,045 shares under stock grant programs														787		8,959								9,746
Issuance of 79,973 shares under deferred compensation plans														80		(80)								—
Repurchase of 44,442 shares														(45)				(3,499)						(3,544)
Expense associated with share-based compensation arrangements				2,936								2,936				6,883								6,883
Accrued expense under deferred compensation plans				5,795								5,795				6,134								6,134
Balance on March 27, 2021	$	61,838	$	231,111	$	1,276,722	$	(3,464)	$	20,336	$	1,586,543
Net earnings						173,382				1,978		175,360
Foreign currency translation adjustment								1,759		720		2,479
Unrealized gain on debt securities								241				241
Cash dividends - $0.15 per share - quarterly						(9,276)						(9,276)
Issuance of 9,282 shares under employee stock plans		9		564								573
Net forfeitures of 5,718 shares under stock grant programs		(6)		(224)		5						(225)
Issuance of 8,913 shares under deferred compensation plans		10		(10)								—
Expense associated with share-based compensation arrangements				2,728								2,728
Accrued expense under deferred compensation plans				1,140								1,140
Balance on June 26, 2021	$	61,851	$	235,309	$	1,440,833	$	(1,464)	$	23,034	$	1,759,563
Balance on March 26, 2022													$	62,734	$	266,544	$	1,851,784	$	(3,170)	$	40,280	$	2,218,172

~~Table of Contents~~

~~UFP INDUSTRIES, INC.~~

~~CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY, CONTINUED~~

~~(Unaudited)~~


(in thousands, except share and per share data)
	Controlling Interest Shareholders’ Equity												Controlling Interest Shareholders’ Equity
							Accumulated												Accumulated
			Additional				Other								Additional				Other
	Common		Paid-In		Retained		Comprehensive		Noncontrolling				Common		Paid-In		Retained		Comprehensive		Noncontrolling
	Stock		Capital		Earnings		Earnings		Interest		Total		Stock		Capital		Earnings		Earnings		Interest		Total
Balance on December 28, 2019	$	61,409	$	192,173	$	995,022	$	(4,889)	$	14,018	$	1,257,733
Balance on December 26, 2020													$	61,206	$	218,224	$	1,182,680	$	(1,794)	$	22,836	$	1,483,152
Net earnings						40,159				411		40,570						103,311				940		104,251
Foreign currency translation adjustment								(5,951)		(2,335)		(8,286)								(374)		(526)		(900)
Unrealized loss on debt securities								(270)				(270)								(1,296)				(1,296)
Distributions to noncontrolling interest										(299)		(299)										(2,914)		(2,914)
Additional purchase of noncontrolling interest				130						(225)		(95)
Cash dividends - $0.125 per share - quarterly						(7,730)						(7,730)
Issuance of 10,549 shares under employee stock purchase plan		10		309								319
Net issuance of 350,124 shares under stock grant programs		350		12,454		1						12,805
Issuance of 89,616 shares under deferred compensation plans		89		(89)								—
Repurchase of 756,397 shares		(756)				(28,456)						(29,212)
Cash dividends - $0.15 per share - quarterly																		(9,274)						(9,274)
Issuance of 5,816 shares under employee stock purchase plan														6		357								363
Net issuance of 536,970 shares under stock grant programs														537		3,888		5						4,430
Issuance of 89,690 shares under deferred compensation plans														89		(89)								—
Expense associated with share-based compensation arrangements				1,404								1,404				2,936								2,936
Accrued expense under deferred compensation plans				5,343								5,343				5,795								5,795
Balance on March 28, 2020	$	61,102	$	211,724	$	998,996	$	(11,110)	$	11,570	$	1,272,282
Net earnings						66,463				3,231		69,694
Foreign currency translation adjustment								2,026		125		2,151
Unrealized gain on debt securities								688				688
Cash dividends - $0.125 per share - quarterly						(7,644)						(7,644)
Issuance of 9,714 shares under employee stock plans		10		367								377
Net issuance of 42,880 shares under stock grant programs		43		(174)		2						(129)
Issuance of 14,106 shares under deferred compensation plans		14		(14)								—
Expense associated with share-based compensation arrangements				824								824
Accrued expense under deferred compensation plans				1,082								1,082
Balance on June 27, 2020	$	61,169	$	213,809	$	1,057,817	$	(8,396)	$	14,926	$	1,339,325
Balance on March 27, 2021													$	61,838	$	231,111	$	1,276,722	$	(3,464)	$	20,336	$	1,586,543

See notes to consolidated condensed financial statements.

Table of Contents

UFP INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

Six Months Ended

June 26,

June 27,


2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:



Net earnings

$
279,611

$
110,264

Adjustments to reconcile net earnings to net cash from operating activities:



Depreciation

38,342

31,330

Amortization of intangibles

7,193

3,129

Expense associated with share-based and grant compensation arrangements

5,742

2,303

Deferred income taxes

177

290

Unrealized (gain) loss on investments and other

(2,784)

473

Equity in earnings of investee

1,465

—

Net gain on sale and disposition of assets

(1,577)

(271)

Changes in:

Accounts receivable

(336,094)

(155,554)

Inventories

(329,577)

25,983

Accounts payable and cash overdraft

143,018

57,017

Accrued liabilities and other

78,751

72,246

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES

(115,733)

147,210

CASH FLOWS FROM INVESTING ACTIVITIES:



Purchases of property, plant and equipment

(79,028)

(46,730)

Proceeds from sale of property, plant and equipment

6,673

644

Acquisitions and purchases of non-controlling interest, net of cash received

(433,239)

(18,689)

Purchases of investments

(14,581)

(20,094)

Proceeds from sale of investments

6,885

18,339

Other

(708)

318

NET CASH USED IN INVESTING ACTIVITIES

(513,998)

(66,212)

CASH FLOWS FROM FINANCING ACTIVITIES:



Borrowings under revolving credit facilities

849,944

6,759

Repayments under revolving credit facilities

(589,695)

(6,498)

Contingent consideration payments and other

(1,464)

(3,077)

Proceeds from issuance of common stock

936

697

Dividends paid to shareholders

(18,550)

(15,374)

Distributions to noncontrolling interest

(2,914)

(299)

Repurchase of common stock

—

(29,212)

Other

(331)

32

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

237,926

(46,972)

Effect of exchange rate changes on cash

112

(1,422)

NET CHANGE IN CASH AND CASH EQUIVALENTS

(391,693)

32,604

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR

436,608

168,666

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD

$
44,915

$
201,270

RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:

Cash and cash equivalents, beginning of period

$
436,507

$
168,336

Restricted cash, beginning of period

101

330

Cash, cash equivalents, and restricted cash, beginning of period

$
436,608

$
168,666

Cash and cash equivalents, end of period

$
44,286

$
200,546

Restricted cash, end of period

629

724

Cash, cash equivalents, and restricted cash, end of period

$
44,915

$
201,270

SUPPLEMENTAL INFORMATION:



Interest paid

$
7,107

$
3,793

Income taxes paid

73,174

1,778

NON-CASH FINANCING ACTIVITIES:

Common stock issued under deferred compensation plans

6,064

5,538


(in thousands)	Three Months Ended
	March 26,		March 27,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	193,131	$	104,251
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation		21,842		18,733
Amortization of intangibles		4,672		3,998
Expense associated with share-based and grant compensation arrangements		6,931		2,981
Deferred income taxes		101		142
Unrealized loss (gain) on investments and other		1,601		(1,754)
Equity in earnings of investee		515		630
Net gain on sale and disposition of assets		(306)		(532)
Changes in:
Accounts receivable		(352,928)		(253,323)
Inventories		(258,019)		(207,768)
Accounts payable and cash overdraft		143,895		121,892
Accrued liabilities and other		(6,466)		14,090
NET CASH USED IN OPERATING ACTIVITIES		(245,031)		(196,660)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(32,072)		(34,656)
Proceeds from sale of property, plant and equipment		1,207		5,062
Acquisitions and purchases of non-controlling interest, net of cash received		(24,571)		(261,133)
Purchases of investments		(6,030)		(8,738)
Proceeds from sale of investments		4,725		3,381
Other		(2,995)		(414)
NET CASH USED IN INVESTING ACTIVITIES		(59,736)		(296,498)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities		242,950		236,280
Repayments under revolving credit facilities		(141,438)		(121,570)
Repayments of debt		(199)		—
Contingent consideration payments and other		(551)		(627)
Proceeds from issuance of common stock		663		363
Dividends paid to shareholders		(12,541)		(9,274)
Distributions to noncontrolling interest		(2,053)		(2,914)
Repurchase of common stock		(501)		—
Other		—		(331)
NET CASH PROVIDED BY FINANCING ACTIVITIES		86,330		101,927
Effect of exchange rate changes on cash		1,726		(349)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(216,711)		(391,580)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR		291,223		436,608
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	74,512	$	45,028

RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents, beginning of period	$	286,662	$	436,507
Restricted cash, beginning of period		4,561		101
Cash, cash equivalents, and restricted cash, beginning of period	$	291,223	$	436,608

Cash and cash equivalents, end of period	$	73,783	$	44,399
Restricted cash, end of period		729		629
Cash, cash equivalents, and restricted cash, end of period	$	74,512	$	45,028

SUPPLEMENTAL INFORMATION:
Interest paid	$	2,896	$	2,964
Income taxes paid		1,700		249
NON-CASH INVESTING ACTIVITIES
Capital expenditures included in accounts payable		2,512		—
NON-CASH FINANCING ACTIVITIES:
Common stock issued under deferred compensation plans		6,705		5,359

See notes to consolidated condensed financial statements.

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UFP INDUSTRIES, INC.

NOTES TO UNAUDITED

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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. All intercompany transactions and balances have been eliminated. ~~Certain prior year amounts have been reclassified to conform to the current year presentation.~~

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 ~~26, 2020.~~25, 2021.

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 ~~June~~March 27, ~~2020~~2021 balances in the accompanying unaudited condensed consolidated balance sheets.

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~~UFP INDUSTRIES, INC.~~

B. FAIR VALUE

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, to assets and liabilities measured at fair value. Assets measured at fair value are as follows (in thousands):


	June 26, 2021								June 27, 2020								March 26, 2022								March 27, 2021
	Quoted		Prices with						Quoted		Prices with						Quoted		Prices with						Quoted		Prices with
	Prices in		Other			Prices with			Prices in		Other			Prices with			Prices in		Other			Prices with			Prices in		Other			Prices with
	Active		Observable			Unobservable			Active		Observable			Unobservable			Active		Observable			Unobservable			Active		Observable			Unobservable
	Markets		Inputs			Inputs			Markets		Inputs			Inputs			Markets		Inputs			Inputs			Markets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)	Total		(Level 1)		(Level 2)			(Level 3)	Total		(Level 1)		(Level 2)			(Level 3)	Total		(Level 1)		(Level 2)			(Level 3)	Total
Money market funds	$	19	$	2,840	$	—	$	2,859	$	57	$	3,084	$	—	$	3,141	$	18	$	9,641	$	—	$	9,659	$	19	$	1,127	$	—	$	1,146
Fixed income funds		244		17,610		—		17,854		247		16,209		—		16,456		2,279		16,128		—		18,407		244		16,264		—		16,508
Treasury securities		307		—		—		307		—		—		—		—		342		—		—		342		—		—		—		—
Equity securities		19,014		—		—		19,014		9,958		—		—		9,958		19,289		—		—		19,289		18,496		—		—		18,496
Alternative investments		—		—		3,304		3,304		—		—		1,836		1,836		—		—		3,964		3,964		—		—		2,126		2,126
Mutual funds:
Domestic stock funds		10,037		—		—		10,037		6,359		—		—		6,359		10,576		—		—		10,576		9,388		—		—		9,388
International stock funds		1,463		—		—		1,463		1,124		—		—		1,124		1,621		—		—		1,621		1,395		—		—		1,395
Target funds		22		—		—		22		270		—		—		270		22		—		—		22		21		—		—		21
Bond funds		145		—		—		145		232		—		—		232		141		—		—		141		145		—		—		145
Alternative funds		501		—		—		501		332		—		—		332		501		—		—		501		496		—		—		496
Total mutual funds		12,168		—		—		12,168		8,317		—		—		8,317		12,861		—		—		12,861		11,445		—		—		11,445
Total	$	31,752	$	20,450	$	3,304	$	55,506	$	18,579	$	19,293	$	1,836	$	39,708	$	34,789	$	25,769	$	3,964	$	64,522	$	30,204	$	17,391	$	2,126	$	49,721
Assets at fair value	$	31,752	$	20,450	$	3,304	$	55,506	$	18,579	$	19,293	$	1,836	$	39,708	$	34,789	$	25,769	$	3,964	$	64,522	$	30,204	$	17,391	$	2,126	$	49,721

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UFP INDUSTRIES, INC.

From the assets measured at fair value as of ~~June~~March 26, ~~2021,~~2022, listed in the table above, ~~$33.7~~$35.4 million of mutual funds, equity securities, and alternative investments are held in Investments, ~~$0.1~~$9.0 million of money market funds are held in Cash and Cash Equivalents, $0.7 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and ~~$18.2~~$18.7 million of fixed income funds and ~~$2.8~~$0.7 million of money markets funds are 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, to any of our financial instruments except for those expressly required by U.S. GAAP.

In accordance with our investment policy, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling ~~$51.7~~$54.2 million as of ~~June~~March 26, ~~2021,~~2022, 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.

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~~UFP INDUSTRIES, INC.~~

Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands):


	June 26, 2021						June 27, 2020						March 26, 2022						March 27, 2021
			Unrealized						Unrealized						Unrealized						Unrealized
	Cost		Gain		Fair Value		Cost		Gain/(Loss)		Fair Value		Cost		Gain		Fair Value		Cost		Gain		Fair Value
Fixed Income	$	17,066	$	788	$	17,854	$	15,497	$	959	$	16,456	$	19,049	$	(642)	$	18,407	$	15,867	$	642	$	16,509
Treasury Securities														342		—		342		—		—		—
Equity		14,760		4,254		19,014		9,107		850		9,957		15,347		3,942		19,289		14,664		3,832		18,496
Mutual Funds		8,769		2,740		11,509		6,553		849		7,402		9,392		2,820		12,212		8,769		2,049		10,818
Alternative Investments		2,953		351		3,304		1,857		(22)		1,835		3,028		936		3,964		1,929		197		2,126
Total	$	43,548	$	8,133	$	51,681	$	33,014	$	2,636	$	35,650	$	47,158	$	7,056	$	54,214	$	41,229	$	6,720	$	47,949

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 unrealized gain of the portfolio was ~~$8.1~~$7.1 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of ~~June~~March 26, ~~2021~~2022 and ~~June~~March 27, ~~2020.~~2021.

C. REVENUE RECOGNITION

Within the 3 primary segments (Retail, Industrial, and 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 3^rdthird party. Installation revenue is recognized upon completion. If ~~the Company uses~~we use a 3^rdthird party for installation, the party will act as an agent to ~~the Company~~us until completion of the installation. Installation revenue represents an immaterial share of ~~the Company’s~~our total net sales.

~~The Company utilizes~~8

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UFP INDUSTRIES, INC.

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 ~~related~~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 ~~related~~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.

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~~UFP INDUSTRIES, INC.~~

Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist.

The following table presents our net sales disaggregated by revenue source (in thousands):


	Three Months Ended					Six Months Ended					Three Months Ended
	June 26,		June 27,			June 26,		June 27,			March 26,		March 27,
	2021		2020		% Change	2021		2020		% Change	2022		2021		% Change
FOB Shipping Point Revenue	$	2,669,159	$	1,209,659	120.7%	$	4,466,558	$	2,208,921	102.2%
Construction Contract Revenue		31,382		32,342	(3.0)%		58,987		65,142	(9.4)%
Point in Time Revenue											$	2,450,281	$	1,797,399	36.3%
Over Time Revenue												39,032		27,605	41.4%
Total Net Sales		2,700,541		1,242,001	117.4%	$	4,525,545	$	2,274,063	99.0%		2,489,313		1,825,004	36.4%

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 26,		December 26,		June 27,		March 26,		December 25,		March 27,
	2021		2020		2020		2022		2021		2021
Cost and Earnings in Excess of Billings	$	4,201	$	4,169	$	4,377	$	6,759	$	5,602	$	3,408
Billings in Excess of Cost and Earnings		8,239		11,530		10,658		12,634		10,744		9,396

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UFP INDUSTRIES, INC.

D. EARNINGS PER SHARE

The computation of earnings per share (“EPS”) is as follows (in thousands):


	Three Months Ended				Six Months Ended				Three Months Ended
	June 26,		June 27,		June 26,		June 27,		March 26,		March 27,
	2021		2020		2021		2020		2022		2021
Numerator:
Net earnings attributable to controlling interest	$	173,382	$	66,463	$	276,693	$	106,622	$	189,703	$	103,311
Adjustment for earnings allocated to non-vested restricted common stock		(5,670)		(1,887)		(8,807)		(2,921)		(6,806)		(3,175)
Net earnings for calculating EPS	$	167,712	$	64,576	$	267,886	$	103,701	$	182,897	$	100,136
Denominator:
Weighted average shares outstanding		62,242		61,494		62,087		61,659		63,009		61,889
Adjustment for non-vested restricted common stock		(2,035)		(1,746)		(1,976)		(1,689)		(2,261)		(1,902)
Shares for calculating basic EPS		60,207		59,748		60,111		59,970		60,748		59,987
Effect of dilutive restricted common stock		156		18		121		18		225		28
Shares for calculating diluted EPS		60,363		59,766		60,232		59,988		60,973		60,015
Net earnings per share:
Basic	$	2.79	$	1.08	$	4.46	$	1.73	$	3.01	$	1.67
Diluted	$	2.78	$	1.08	$	4.45	$	1.73	$	3.00	$	1.67

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~~UFP INDUSTRIES, INC.~~

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~~March 26, ~~2021,~~2022, 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~~March 26, ~~2021,~~2022, we had outstanding purchase commitments on commenced capital projects of approximately ~~$45.1~~$68.7 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, some of which are no longer in business. 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~~March 26, ~~2021,~~2022, we had approximately ~~$36.4~~$30.0 million in outstanding payment and performance bonds for open projects. We had approximately ~~$2.1~~$11.1 million in payment and performance bonds outstanding for completed projects which are still under warranty.

On ~~June~~March 26, ~~2021,~~2022, we had outstanding letters of credit totaling ~~$52.7~~$51.7 million, primarily related to certain insurance contracts and industrial development revenue bonds described further below.

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UFP INDUSTRIES, INC.

In lieu of cash deposits, we provide irrevocable letters of credit in favor of our insurers to guarantee our performance under certain insurance contracts. As of ~~June~~March 26, ~~2021,~~2022, we have irrevocable letters of credit outstanding totaling approximately ~~$45.6~~$44.6 million for these types of insurance arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under these 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 $7.1 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~~first quarter of ~~2021~~2022 which would require us to recognize a liability on our balance sheet.

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UFP INDUSTRIES, INC.

F. BUSINESS COMBINATIONS

We completed the following acquisitions in ~~2021~~fiscal 2022 and since the end of ~~June 2020,~~March 2021, which were accounted for using the purchase ~~method~~method. Dollars below are in thousands unless otherwise noted:

Net

Company

Acquisition

Intangible

Tangible

Operating

Acquisition

Intangible

Tangible

Operating

Name

Date

Purchase Price

Assets

Segment

Date

Purchase Price

Assets

Segment

April 29, 2021

$12,243
cash paid for 100% asset purchase and estimated contingent consideration

9,234

3,009

Construction

December 27, 2021

$24,571
cash paid for 100% stock purchase, net of acquired cash

15,959

8,612

Retail

Endurable Building Products, LLC (Endurable)

Based near Minneapolis, Minnesota, Endurable is a leading manufacturer of customized structural aluminum systems and products for exterior purposes, such as deck framing, balconies, sunshades, railings and stairs. The company’s trademarked alumiLAST aluminum deck and balcony systems are known for their low-maintenance design and ease of installation. Endurable serves general contractors in the multifamily market throughout the U.S. and had sales of approximately $15 million in 2020.

Ultra Aluminum Manufacturing, Inc. (Ultra)

Located in Howell, Michigan and founded in 1996, Ultra is a leading manufacturer of aluminum fencing, gates and railing. The company designs and produces an extensive selection of ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers. The Company had sales of approximately $45 million in 2021.

April 19, 2021

$9,549
cash paid for 100% asset purchase and estimated contingent consideration

2,526

7,023

Retail

December 20, 2021

$20,817
cash paid for 100% stock purchase

11,480

9,337

Industrial

Walnut Hollow Farm, Inc.

Walnut Hollow Farm, located in Wisconsin, is engaged in the business of designing, manufacturing, selling, and distributing wood products, tools, and accessories for the craft and hobby, outdoor sportsman art, personalized home décor, and hardware categories, with sales of approximately $11.6 million in 2020.

Advantage Labels & Packaging, Inc. (Advantage)

Based in Grand Rapids, Michigan, Advantage provides blank and customized labels, printers, label applicators and other packaging supplies. Key industries served by the company include beer and beverage; body armor; food production and processing; greenhouse and nursery; hobby and craft; manufacturing; and automotive. The company had trailing 12-month sales through November 2021 of approximately $19.8 million.

April 12, 2021

$153,426
cash paid for 100% asset purchase

—

153,426

Retail

November 22, 2021

$11,155
cash paid for 70% stock purchase

9,106

2,049

Other

Spartanburg Forest Products, Inc.

Headquartered in Greer, South Carolina, Spartanburg Forest Products and its affiliates are a premier wood treating operation in the U.S., with approximately 150 employees and operations in 5 states. Its affiliates include Appalachian Forest Products, Innovative Design Industries, Blue Ridge Wood Preserving, Blue Ridge Wood Products, and Tidewater Wood Products and had combined sales of approximately $543.0 million in 2020.

Ficus Pax Private Limited (Ficus)

Headquartered in Bangalore, India, Ficus manufactures mixed-material cases and crates, nail-less plywood boxes, wooden pallets and other packaging products through 10 facilities located in major industrial markets throughout southern India. Ficus also owns a majority stake in Wadpack, a manufacturer of corrugated fiber board containers, corrugated pallets and display solutions. The company had trailing 12-month sales through August 2021 of approximately $39 million USD.

March 1, 2021

$4,724
cash paid for 100% asset purchase and estimated contingent consideration

4,264

460

Other

November 1, 2021

$5,984
cash paid for 100% asset purchase and estimated contingent consideration

5,681

303

Other

J.C. Gilmore Pty Ltd (Gilmores)

Founded in 1988 and operating from its distribution facility in Port Melbourne, Australia, Gilmores is a leading distributor in the industrial and construction industries of packaging tapes, stretch films, packaging equipment, strapping, construction protection products and other items, with 2020 sales of $15 million AUD ($10 million USD).

Boxpack Packaging (Boxpack)

Based near Melbourne, Australia, Boxpack specializes in flexographic and lithographic cardboard packaging, using the latest CAD design and finishing techniques. Boxpack serves multiple industries, including food and beverage, confectionary, pharmaceutical, industrial and agricultural. The company had trailing 12-month sales through June 30, 2021, of $8.2 million AUD.

December 28, 2020

$258,770
cash paid for 100% stock purchase

82,546

176,224

Retail/Industrial

September 27, 2021

$6,443
cash paid for 100% asset purchase and estimated contingent consideration

4,039

2,404

Construction

PalletOne, Inc. (PalletOne)

Based in Bartow, Florida, PalletOne is a leading manufacturer of new pallets in the U.S., with 17 pallet manufacturing facilities in the southern and eastern regions of the country. The company also supplies other specialized industrial packaging, including custom bins and crates, and its Sunbelt Forest Products (Sunbelt) subsidiary operates 5 pressure-treating facilities in the Southeastern U.S. PalletOne and its affiliates had 2019 and 2020 sales of $525 million and $698 million, respectively.

Shelter Products, Inc. (Shelter)

Based in Haleyville, Alabama, Shelter operates its distribution and logistics business from an 87,800 sq.-ft. warehouse that specializes in manufactured housing industry customers. Shelter’s facility is adjacent to a UFP manufacturing facility that supplies trusses to manufactured housing builders, and the proximity will enable additional operational synergies. The Company had sales of approximately $11.4 million in 2020.

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Net

Company

Acquisition

Intangible

Tangible

Operating

Acquisition

Intangible

Tangible

Operating

Name

Date

Purchase Price

Assets

Segment

Date

Purchase Price

Assets

Segment

November 10, 2020

$27,274
cash paid for 100% asset purchase and estimated contingent consideration

17,894

9,380

Construction

April 29, 2021

$10,129
cash paid for 100% asset purchase

7,099

3,030

Construction

Atlantic Prefab, Inc.; Exterior Designs, LLC; and Patriot Building Systems, LLC

Based in Wilton, New Hampshire, Atlantic Prefab produces prefabricated steel wall panels and light gauge metal trusses. The company’s steel component and prefinished wall panel lines are new, value-added product additions for UFP Construction that help shorten project timelines. Exterior Designs is a leading installer of siding and exterior cladding such as fiber cement, ACM (aluminum composite material) panels, phenolic panels, and EIFS (exterior insulation and finish systems). The company is based in Londonderry, New Hampshire, and serves commercial and multi-family clients throughout the Northeast. Also based in Londonderry, Patriot Building Systems provides commercial and multi-family framing services in the Northeast and will focus on markets not currently served by companies of UFP Industries. The companies had combined annual sales of approximately $28 million.

Endurable Building Products, LLC (Endurable)

October 1, 2020

$7,936
cash paid for 100% asset purchase and estimated contingent consideration

7,222

714

Retail

April 19, 2021

$8,549
cash paid for 100% asset purchase

1,526

7,023

Retail

Fire Retardant Chemical Technologies, LLC (FRCT)

Founded in 2014 and based in Matthews, North Carolina, FRCT’s business includes a research and development laboratory specializing in developing and testing a wide range of high-performance chemicals, including fire retardants and water repellants. The company had annual sales of approximately $6.4 million.

Walnut Hollow Farm, Inc.

September 30, 2020

$4,465
cash paid for 50% stock purchase and estimated contingent consideration

4,607

(142)

Other

April 12, 2021

$153,462
cash paid for 100% asset purchase

—

153,462

Retail

Enwrap Logistic & Packaging S.r.l. (Enwrap)

Enwrap is a newly formed company dedicated to the logistics and packaging business of its predecessor, Job Service S.p.A. Headquartered in Milan, Italy, Enwrap provides high-value, mixed material industrial packaging and logistics services through 8 locations in Italy. These locations generated annual sales of approximately $14 million.

July 14, 2020

$19,136
cash paid for 100% asset purchase and estimated contingent consideration

13,098

6,038

Industrial

T&R Lumber Company ("T&R")

A manufacturer and distributor of a range of products used primarily by nurseries, including plastic growing containers, pots and trays; wooden stakes; trellises; tree boxes; shipping racks; and other nursery supplies based in Rancho Cucamonga, California. T&R had annual sales of approximately $31 million. The acquisition of T&R will allow us to leverage their expertise using our national manufacturing capacity to grow our agricultural product offerings and customer base across the country.

Spartanburg Forest Products, Inc.

The intangible assets for the above acquisitions ~~with the exception of T&R,~~ have not been finalized and allocated to their respective identifiable asset and goodwill accounts. In aggregate, acquisitions completed since the end of ~~June 2020~~March 2021 and not consolidated with other operations contributed approximately ~~$698.2~~$124.6 million in net sales and ~~$28.9~~$10.3 million in operating profits during the first ~~six~~three months of ~~2021.~~2022.

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 Industrial 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, Industrial, and Construction segments. In the case of locations which 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 Mexico, Canada, Europe, India, and Australia operations 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.

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UFP INDUSTRIES, INC.

~~G. SEGMENT REPORTING~~

The Company operates manufacturing, treating and distribution facilities internationally, but primarily in the United States. The business segments align with the following markets: UFP Retail Solutions, UFP Construction and UFP Industrial. The Company manages the operations of its 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, Industrial, and Construction segments. In the case of locations which serve multiple segments, results are allocated and accounted for by segment. The exception to this market-centered reporting and management structure is the Company’s International segment, which comprises our Mexico, Canada, and Australia operations and sales and buying offices in other parts of the world.

~~Our International segment and Ardellis (our insurance captive) have been included in the “All Other” column of the table below.~~

~~The “Corporate” column~~“Corporate” includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily ~~consists~~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 ~~leases~~operates transportation equipment, are also included in the Corporate column. ~~An inter-company~~Inter-company lease ~~charge is~~and service charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Total assets ofin 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 ~~Transportation Ltd.~~RMS, LLC. The tables below are presented in thousands:


	Three Months Ended June 26, 2021												Three Months Ended March 26, 2022
	Retail		Industrial		Construction		All Other		Corporate		Total		Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	1,259,218	$	611,181	$	738,704	$	89,470	$	1,968	$	2,700,541	$	993,232	$	611,369	$	786,471	$	95,567	$	2,674	$	2,489,313
Intersegment net sales		65,147		24,985		20,034		126,054		(236,220)		—		65,948		22,173		25,352		109,772		(223,245)		—
Segment operating profit		62,051		79,526		67,107		16,304		11,947		236,935		71,397		82,391		78,818		14,815		11,604		259,025


	Three Months Ended June 27, 2020												Three Months Ended March 27, 2021
	Retail		Industrial		Construction		All Other		Corporate		Total		Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	609,190	$	224,379	$	359,170	$	49,411	$	(149)	$	1,242,001	$	759,021	$	448,874	$	559,530	$	55,577	$	2,002	$	1,825,004
Intersegment net sales		34,104		9,795		16,353		67,712		(127,964)		—		47,586		17,906		14,461		97,396		(177,349)		—
Segment operating profit		45,775		15,420		19,542		8,633		2,989		92,359		53,545		40,410		33,018		7,978		2,536		137,487

Six Months Ended June 26, 2021


Retail

Industrial

Construction

  All Other

  Corporate

      Total
Net sales to outside customers

$
2,018,239

$
1,060,055

$
1,298,234

$
145,047

$
3,970

$
4,525,545
Intersegment net sales

112,733

42,891

34,495

223,450

(413,569)

—
Segment operating profit

115,596

119,936

100,125

24,282

14,483

374,422

The following table presents goodwill by segment as of March 26, 2022, and December 25, 2021 (in thousands):


	Six Months Ended June 27, 2020												Retail		Industrial		Construction		All Other		Corporate		Total
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	961,351	$	480,922	$	740,325	$	91,804	$	(339)	$	2,274,063
Intersegment net sales		63,962		21,015		31,776		120,879		(237,632)		—
Segment operating profit		59,901		31,800		34,031		13,124		12,134		150,990
Balance as of December 25, 2021													$	73,376	$	128,541	$	89,000	$	24,121	$	—	$	315,038
2022 Acquisitions														8,012		—		—		—		—		8,012
2022 Purchase Accounting Adjustments														293		(5,715)		(674)		99		—		(5,997)
Foreign Exchange, Net														—		—		156		422		—		578
Balance as of March 26, 2022													$	81,681	$	122,826	$	88,482	$	24,642	$	—	$	317,631

The following table presents total assets by segment as of March 26, 2022, and December 25, 2021 (in thousands).


	Total Assets by Segment
	March 26,		December 26,
Segment Classification	2022		2021		% Change
Retail	$	1,205,382	$	844,189	42.8	%
Industrial		857,706		741,672	15.6
Construction		858,901		736,157	16.7
All Other		356,568		343,363	3.8
Corporate		395,409		579,890	(31.8)
Total Assets	$	3,673,966	$	3,245,271	13.2	%

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 24.0% in the first quarter of 2022 compared to 23.3% for same period in 2021.The increase was primarily due to one-time tax credit refunds recorded as a discrete item in the first quarter of 2021 that are not available in 2022.

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UFP INDUSTRIES, INC.

~~The following table presents goodwill by segment as of June 26, 2021, and December 26, 2020 (in thousands):~~

Retail

Industrial

Construction

All Other

Corporate

Total
Balance as of December 26, 2020

$
61,943

$
87,827

$
90,729

$
11,694

$
—

$
252,193
2021 Acquisitions

19,442

43,844

4,570

4,176

—

72,032
2021 Purchase Accounting Adjustments

—

(2,291)

(1,653)

(2,060)

—

(6,004)
Foreign Exchange, Net

—

—

—

(113)

—

(113)
Balance as of June 26, 2021

$
81,385

$
129,380

$
93,646

$
13,697

$
—

$
318,108

~~The following table presents total assets by segment as of June 26, 2021, and December 26, 2020 (in thousands).~~

Total Assets by Segment

June 26,

December 26,

Segment Classification
2021

2020

% Change
Retail
$
1,053,736

$
510,464

106.4
%
Industrial

784,049

416,487

88.3

Construction

640,982

510,972

25.4

All Other

266,720

196,856

35.5

Corporate

482,796

770,112

(37.3)

Total Assets
$
3,228,283

$
2,404,891

34.2
%

~~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 25.0% in the second quarter of 2021 compared to 25.3% for same period in 2020 and was 24.4% in the first six months of 2021 compared to 25.1% for the same period in 2020.~~The decrease was primarily due to a decrease in permanent tax differences in 2021 compared to the prior year, none of which are individually significant.~~

I. COMMON STOCK

Below is a summary of common stock issuances for the first ~~six~~three months of ~~2021~~2022 and ~~2020~~2021 (in thousands, except average share price):


	June 26, 2021			March 26, 2022
Share Issuance Activity	Common Stock		Average Share Price	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	15	$	72.94	10	$	80.04

Shares issued under the employee stock gift program	1		79.64	1		84.85
Shares issued under the director retainer stock program	3		67.77	1		80.78
Shares issued under the bonus plan	468		53.68	725		79.61
Shares issued under the executive stock match grants plan	77		60.24
Shares issued under the executive stock match plan				62		82.87
Forfeitures	(18)			(2)
Total shares issued under stock grant programs	531	$	54.71	787	$	79.87

Shares issued under the deferred compensation plans	99	$	61.50	80	$	83.84


	March 27, 2021
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	6	$	73.28

Shares issued under the employee stock gift program	1		79.91
Shares issued under the director retainer stock program	2		56.80
Shares issued under the bonus plan	468		53.68
Shares issued under the executive stock grants plan	77		60.24
Forfeitures	(11)
Total shares issued under stock grant programs	537	$	54.63

Shares issued under the deferred compensation plans	89	$	59.75

During the first three months of 2022, we repurchased approximately 44,442 shares of our common stock at an average share price of $79.74. In April 2022, we repurchased approximately 756,000 shares for $58.5 million, at an average share price of $77.40.

During the first three months of 2021, we did not repurchase any of our shares of common stock.

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UFP INDUSTRIES, INC.

June 27, 2020
Share Issuance Activity

Common Stock

Average Share Price
Shares issued under the employee stock purchase plan

20

$
40.45

Shares issued under the employee stock gift program

2

43.38
Shares issued under the director retainer stock program

45

24.20
Shares issued under the bonus plan

271

47.51
Shares issued under the executive stock match grants plan

79

47.60
Forfeitures

(4)

Total shares issued under stock grant programs

393

$
44.88

Shares issued under the deferred compensation plans

103

$
53.39

~~During the first six months of 2021, we did not repurchase any of our shares of common stock.~~

~~During the first six months of 2020, we repurchased approximately 756,000 shares of our common stock at an average share price of $38.62.~~

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. Cost is determined on a weighted average FIFO basis. 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.

~~The Company writes~~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 ~~the Company expects~~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. ~~The~~There were 0 lower of cost or net realizable value ~~adjustment~~adjustments to inventory as of ~~June~~March 26, ~~2021~~2022 and ~~June~~March 27, ~~2020 was $23.2 million and $0, respectively.~~2021.

K. SUBSEQUENT EVENTS

~~On June 30, 2021, UFP Real Estate, LLC closed~~In April 2022, we added $500 million of borrowing capacity by entering into a shelf facility with multiple lenders to support future growth. No amounts have been drawn on ~~the sale~~this facility.

Additionally in April 2022, we repurchased approximately 756,000 shares for $58.5 million, at an average share price of ~~real property owned and located in Fernley, NV for proceeds of $13.4 million and recognized a gain of $6.7 million.~~$77.40.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

UFP Industries, Inc. is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia that supply wood, wood composite and other products to three markets: retail, industrial, and construction. We are headquartered in Grand Rapids, Michigan. For more information about UFP Industries, Inc., or our affiliated operations, go to www.ufpi.com.

This report 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, government imposed “stay at home” orders and directives to cease or curtail operations; 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. We are pleased to present this overview of the ~~second~~first quarter of ~~2021.~~2022.

OVERVIEW

Our results for the ~~second~~first quarter of ~~2021~~2022 include the following highlights:

●

Our net sales were up ~~117%~~36% compared to the ~~second~~first quarter of ~~2020,~~2021, which was comprised of a ~~70%~~26% increase in selling prices primarily due to the commodity lumber market (see Historical Lumber Prices below), ~~an 11% increase in organic unit sales, and~~ a ~~36%~~7% increase in unit sales due to acquisitions completed since ~~June~~March of last ~~year.~~year, and a 3% increase in organic unit sales. Organic unit growth ~~was driven by a 26% increase~~of 14% in ~~each of~~ our ~~industrial and~~ construction ~~segments and~~segment was offset by ~~a decline in~~an organic unit ~~sales~~decline of 2% in our retail segment and 4% in our ~~retail~~industrial segment.

●

Our operating profits increased ~~$144.6~~$121.5 million, or ~~157%~~88%, compared to the ~~second~~first quarter of ~~2020. Acquisitions contributed approximately $29.6 million to our~~2021. This increase ~~in gross profits and $14.7 million to our increase in operating profits. These increases~~ resulted from a variety of factors including ~~strong unit sales growth and~~improved leveraging of our fixed costs, increased sales of value-added and new products that have higher margins, and more effectively adjusting for increases in lumber and other costs in our selling prices. These favorable factors more than offset the impact of ~~falling~~rising lumber prices on ~~products we sell with a variable price, primarily our pressure-treated lumber products in~~ the ~~retail segment, which resulted in a lower of cost or net realizable value reserve of $23.2 million recorded to inventory and cost of goods sold at the end of June 2021. If lumber~~selling prices ~~continue to fall and normalize in the third quarter of 2021, it will continue to impact our gross profits~~ of commodity-based products sold on a variable price ~~that were not purchased through a vendor managed inventory program. We anticipate that this will be more than offset by the benefit we experience on~~formula, and growth of our new and value-added products ~~sold on a fixed price, primarily~~which have higher gross margins. In addition, our ability to effectively include lumber and other cost increases in the selling prices of our ~~Industrial and Construction segments.~~products as well as value-based selling practices has enabled us to maintain our profit per unit. Acquisitions contributed approximately $10.3 million to our increase in operating profits. Excluding the impact of acquisitions, gross profits increased by $176 million and we estimate that value-added and commodity-based products contributed ~~$103~~$133 million and ~~$84~~$43 million, respectively, to ~~our quarter over quarter~~this increase.

●

Our cash flows used by operations for the first three months of 2022 increased to $245 million compared to $197 million during the first three months of 2021, primarily due to an increased investment in net working capital of $148 million, offset by an increase in ~~gross profits.~~net earnings and non-cash expenses of $100 million. The increase in our net working capital requirements during the first quarter of 2022 was due to higher lumber prices, growth in our business, and an increase in our days supply of inventory to ensure we meet the delivery expectations of our customers.

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UFP INDUSTRIES, INC.

●

Our cash flows used in operations for the first six months of 2021 was $116 million compared to cash flows provided by operations of $147 million during the first six months of 2020, primarily as a result of an increased investment in working capital of $444 million compared to the prior year, specifically due to increases in inventory and accounts receivable balances. The increase in our net working capital requirements during the second quarter of 2021 was due to unusually high lumber prices and strong market demand across all of our segments. We expect that lumber prices and demand will normalize in the last six months of 2021. Consequently, we anticipate this increased investment in net working capital will decline and be converted into cash during the balance of the year.

●

~~Our~~ net debt (debt and cash overdraft less cash) at the end of ~~June 2021~~March 2022 was ~~$562~~$410 million compared to ~~net cash of $37~~$429 million at the end of June 2020. The increase of nearly $600 million was due to an increased investment in working capital and acquisitions completed during the first half of the year, including PalletOne, J.C. Gilmore, Spartanburg, Endurable, and Walnut Hollow discussed in Footnote F to the condensed consolidated financial statements.March 2021. Our unused borrowing capacity under revolving credit facilities and cash surplus resulted in total liquidity of approximately ~~$288~~$445.3 million at the end of the ~~second~~first quarter of ~~2021.~~2022.

HISTORICAL LUMBER PRICES

We experience significant fluctuations in the cost of commodity lumber products from primary producers (“Lumber Market”). The following table presents the Random Lengths framing lumber composite price:


	Random Lengths Composite					Random Lengths Composite
	Average $/MBF					Average $/MBF
	2021			2020		2022			2021
January	$	890		$	377	$	1,112		$	890
February		954			402		1,225			954
March		1,035			420		1,321			1,035
April		1,080			358
May		1,428			394
June		1,344			455

Second quarter average	$	1,284		$	402
Year-to-date average	$	1,122		$	401

Second quarter percentage change		219.4	%
Year-to-date percentage change		179.8	%
First quarter average						$	1,219		$	960
First quarter percentage change							27.0	%

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~~UFP INDUSTRIES, INC.~~

In addition, a Southern Yellow Pine (“SYP”) composite price, which we prepare and use, is presented below. Our purchases of this species comprise almost two-thirds of our total lumber purchases.


	Random Lengths SYP					Southern Yellow Pine
	Average $/MBF					Average $/MBF
	2021			2020		2022			2021
January	$	858		$	346	$	1,010		$	858
February		903			345		1,115			903
March		938			360		1,198			938
April		922			333
May		1,150			412
June		1,052			494

Second quarter average	$	1,041		$	413
Year-to-date average	$	971		$	382

Second quarter percentage change		152.1	%
Year-to-date percentage change		154.2	%
First quarter average						$	1,108		$	900
First quarter percentage change							23.1	%

The sequential increase in overall lumber prices for the first quarter ~~above is~~of the year was primarily due to ~~the continuation of~~ strong market demand as well as certain constraints in the supply chain of lumber. Prices began to fall at the end of June 2021 and we anticipate that lumber prices will continue to fall and normalize during the last six months of this year as these constraints on supply improve and demand in the retail market returns to more normal levels. A ~~sequential decline~~change in lumber prices ~~would impact~~impacts our profitability of products sold with fixed and variable prices, as discussed below.

IMPACT OF THE LUMBER MARKET ON OUR OPERATING RESULTS

We generally price our products to pass lumber costs through to our customers so that our profitability is based on the value-added manufacturing, distribution, engineering, and other services we provide. As a result, our sales levels (and working capital requirements) are impacted by the lumber costs of our products. Lumber costs were ~~63.7%~~61.4% and ~~44.1%~~63.1% of our sales in the first ~~six~~three months of ~~2021~~2022 and ~~2020,~~2021, respectively. The ~~increase~~decrease from the prior year ratio reflects ~~the impact~~an improvement in our sales mix of ~~higher lumber prices and the results of PalletOne’s subsidiaries Sunbelt and Spartanburg Forest Products.~~value-added products as well as our value-based selling practices.

Our gross margins are impacted by (1) the relative level of the Lumber Market (i.e. whether prices are higher or lower from comparative periods), and (2) the trend in the market price of lumber (i.e. whether the price of lumber is increasing or decreasing within a period or from period to period). Moreover, as explained below, our products are priced differently. Some of our products have fixed selling prices, while the selling prices of other products are indexed to the reported Lumber Market with a fixed dollar adder to cover conversion costs and profits. Consequently, the level and trend of the Lumber Market impact our products differently.

Below is a general description of the primary ways in which our products are priced.

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UFP INDUSTRIES, INC.

●

Products with fixed selling prices. These products include value-added products, such as manufactured items, sold within all segments. Prices for these products are generally fixed at the time of the sales quotation for a specified period of time. In order to reduce any exposure to adverse trends in the price of component lumber products, we attempt to lock in costs with our suppliers or purchase necessary inventory for these sales commitments. The time period limitation eventually allows us to periodically re-price our products for changes in lumber costs from our suppliers. We believe our percentage of sales of fixed price items is usually greatest in our third and fourth quarters.

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~~UFP INDUSTRIES, INC.~~

●

Products with selling prices indexed to the reported Lumber Market with a fixed dollar “adder” to cover conversion costs and profit. These products primarily include treated lumber, panel goods, other commodity-type items, and trusses sold to the manufactured housing industry. For these products, we estimate the customers’ needs and we carry anticipated levels of inventory. Because lumber costs are incurred in advance of final sale prices, subsequent increases or decreases in the market price of lumber impact our gross margins. We believe our sales of these products are at their highest relative level in our second quarter, primarily due to pressure-treated lumber sold in our retail segment.

For each of the product pricing categories above, our margins are exposed to changes in the trend of lumber prices.

The greatest risk associated with changes in the trend of lumber prices is on the following products:

●

Products with significant inventory levels with low turnover rates, whose selling prices are indexed to the Lumber Market. In other words, the longer the period of time these products remain in inventory, the greater the exposure to changes in the price of lumber. This would include treated lumber, which comprised approximately ~~20%~~16% of our total annual sales in ~~2020.~~2021. This exposure is less significant with remanufactured lumber, panel goods, other commodity-type items, and trusses sold to the manufactured housing market due to the higher rate of inventory turnover. We attempt to mitigate the risk associated with treated lumber through inventory consignment programs with our vendors. Our ~~annual purchases of inventory through these consignment programs totaled approximately 19% of our total lumber purchases in 2020. Our~~ new Sunbelt and Spartanburg Forest Products plants ~~operated with limited amounts of vendor~~began participating in these consignment ~~inventory and were more exposed to the impact of falling lumber prices during the end of the second quarter of 2021. We anticipate increasing their use of these~~ programs in ~~future periods in a manner consistent~~2022, and we estimate that 24.2% of their inventory was consigned with ~~our ProWood pressure-treating operations.~~vendors. (Please refer to the “Risk Factors” section of our annual report on form 10-K, filed with the United States Securities and Exchange Commission.)

●

Products with fixed selling prices sold under long-term supply arrangements, particularly those involving multi-family construction projects. We attempt to mitigate this risk through our purchasing practices and longer vendor commitments.

In addition to the impact of the Lumber Market trends on gross margins, changes in the level of the market cause fluctuations in gross margins when comparing operating results from period to period. This is explained in the following example, which assumes the price of lumber has increased from period one to period two, with no changes in the trend within each period.


	Period 1			Period 2
Lumber cost	$	300		$	400
Conversion cost		50			50
= Product cost		350			450
Adder		50			50
= Sell price	$	400		$	500
Gross margin		12.5	%		10.0	%

As is apparent from the preceding example, the level of lumber prices does not impact our overall profits but does impact our margins. Gross margins and operating margins are negatively impacted during periods of high lumber prices; conversely, we experience margin improvement when lumber prices are relatively low.

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UFP INDUSTRIES, INC.

BUSINESS COMBINATIONS

We completed ~~five~~one business ~~acquisitions~~acquisition during the first ~~six~~three months of ~~2021~~fiscal 2022 and ~~five~~nine during all of ~~2020.~~fiscal 2021. The annual historical sales attributable to acquisitions completed in the first ~~six~~three months of ~~2021~~fiscal 2022 is approximately ~~$1.3 billion,~~$85 million, while acquisitions completed ~~from July through December 2020~~during the last nine months of 2021 have annual sales of approximately ~~$79~~$626 million. These business combinations were not significant to our quarterly results individually or in aggregate and thus pro forma results for ~~2021~~2022 and ~~2020~~2021 are not presented.

See Notes to the Unaudited Condensed Consolidated Financial Statements, Note F, “Business Combinations” for additional information.

RESULTS OF OPERATIONS

The following table presents, for the periods indicated, the components of our Unaudited Condensed Consolidated Statements of Earnings as a percentage of net sales.


	Three Months Ended				Six Months Ended				Three Months Ended
	June 26,		June 27,		June 26,		June 27,		March 26,		March 27,
	2021		2020		2021		2020		2022		2021
Net sales	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Cost of goods sold	84.4		83.5		84.4		83.6		80.8		84.3
Gross profit	15.6		16.5		15.6		16.4		19.2		15.7
Selling, general, and administrative expenses	6.8		9.2		7.4		9.8		8.8		8.2
Other gains, net	—		(0.1)		—		(0.1)
Other (gains) losses, net									—		(0.1)
Earnings from operations	8.8		7.4		8.3		6.6		10.4		7.6
Other expense (income), net	0.1		(0.1)		0.1		0.2
Other expense, net									0.2		0.1
Earnings before income taxes	8.7		7.5		8.2		6.5		10.2		7.5
Income taxes	2.2		1.9		2.0		1.6		2.4		1.7
Net earnings	6.5		5.6		6.2		4.8		7.8		5.7
Less net earnings attributable to noncontrolling interest	(0.1)		(0.3)		(0.1)		(0.2)		(0.1)		(0.1)
Net earnings attributable to controlling interest	6.4	%	5.4	%	6.1	%	4.7	%	7.6	%	5.7	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

As a result of the impact of the level of lumber prices on the percentages displayed in the table above (see Impact of the Lumber Market on Our Operating Results), we believe it is useful to compare our change in units sold with our change in gross profits, selling, general, and administrative expenses, and operating profits as presented in the following table. The percentages displayed below represent the percentage change from the prior year comparable period.


	Percentage Change								Percentage Change
	Three Months Ended				Six Months Ended				Three Months Ended
	June 26,		June 27,		June 26,		June 27,		March 26,		March 27,
	2021		2020		2021		2020		2022		2021
Units sold	47.0	%	(3.0)	%	41.0	%	—	%	10.0	%	33.0	%
Gross profit	105.6		9.7		90.2		9.1		66.9		71.3
Selling, general, and administrative expenses	62.2		0.8		50.0		2.3		46.7		37.3
Earnings from operations	156.5		24.4		148.0		23.1		88.4		134.5

2220

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UFP INDUSTRIES, INC.

The following table presents, for the periods indicated, our selling, general, and administrative (SG&A) costs as a percentage of gross profit. Given our strategies to enhance our capabilities and improve our value-added product offering, and recognizing the higher relative level of SG&A costs these strategies require, we believe this ratio provides an enhanced view of our effectiveness in managing these costs and mitigates the impact of changing lumber prices.



		Three Months Ended				Six Months Ended			Three Months Ended
		June 26,		June 27,		June 26,		June 27,		March 26,		March 27,
		2021		2020		2021		2020		2022		2021
Gross profit	$	421,294	$	204,931	$	707,848	$	372,167	$	478,363	$	286,554
Selling, general, and administrative expenses	$	184,539	$	113,781	$	334,637	$	223,121	$	220,150	$	150,098
SG&A as percentage of gross profit		43.8%		55.5%		47.3%		60.0%		46.0%		52.4%

Operating Results by Segment:

Our business segments ~~align with the following markets:~~consist of UFP Retail Solutions, UFP Industrial and UFP Construction, and ~~UFP Industrial. The~~align with the end markets we serve. Among other things, this structure allows for a more specialized and consistent sales approach among Company ~~manages~~operations, more efficient use of resources and capital, and quicker introduction of new products and services. We manage the operations of ~~its~~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, Industrial, and Construction segments. ~~In the case of locations which serve multiple segments, results are allocated and accounted for by segment.~~ The exception to this market-centered reporting and management structure is ~~the Company’s~~our International segment, which comprises our Mexico, Canada, Europe, Asia, and Australia operations and sales and ~~purchasing~~buying offices in other parts of the world. Our International segment and Ardellis (our insurance captive) ~~have been~~are included in the “All Other” column of the table below. The “Corporate” column includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of 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 ~~leases~~operates transportation equipment, are also included in the Corporate column. ~~An inter-company~~Inter-company lease ~~charge is~~and services charges are assessed to our operating segments for the use of these assets and services at fair market value rates.

The following tables present our operating results, for the periods indicated, by segment (in thousands).


	Three Months Ended June 26, 2021												Three Months Ended March 26, 2022

	Retail		Industrial		Construction		All Other		Corporate		Total		Retail		Industrial		Construction		All Other		Corporate		Total
Net sales	$	1,259,218	$	611,181	$	738,704	$	89,470	$	1,968	$	2,700,541	$	993,232	$	611,369	$	786,471	$	95,567	$	2,674	$	2,489,313
Cost of goods sold		1,136,887		476,731		604,414		59,745		1,470		2,279,247		858,895		461,815		625,059		64,024		1,157		2,010,950
Gross profit		122,331		134,450		134,290		29,725		498		421,294		134,337		149,554		161,412		31,543		1,517		478,363
Selling, general, administrative expenses		60,376		54,903		66,936		13,604		(11,280)		184,539		62,668		67,231		82,337		16,625		(8,711)		220,150
Other		(96)		21		247		(183)		(169)		(180)		272		(68)		257		103		(1,376)		(812)
Earnings from operations	$	62,051	$	79,526	$	67,107	$	16,304	$	11,947	$	236,935	$	71,397	$	82,391	$	78,818	$	14,815	$	11,604	$	259,025

2321

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UFP INDUSTRIES, INC.

																					��
	Three Months Ended June 27, 2020												Three Months Ended March 27, 2021

	Retail		Industrial		Construction		All Other		Corporate		Total		Retail		Industrial		Construction		All Other			Corporate		Total
Net sales	$	609,190	$	224,379	$	359,170	$	49,411	$	(149)	$	1,242,001	$	759,021	$	448,874	$	559,530	$	55,577		$	2,002	$	1,825,004
Cost of goods sold		525,912		187,206		297,494		32,576		(6,118)		1,037,070		658,548		368,549		470,846		38,026			2,481		1,538,450
Gross profit		83,278		37,173		61,676		16,835		5,969		204,931		100,473		80,325		88,684		17,551			(479)		286,554
Selling, general, administrative expenses		37,557		21,674		42,246		9,163		3,141		113,781		47,100		40,113		55,545		10,421			(3,081)		150,098
Other		(54)		79		(112)		(961)		(161)		(1,209)		(172)		(198)		121		(848)			66		(1,031)
Earnings from operations	$	45,775	$	15,420	$	19,542	$	8,633	$	2,989	$	92,359	$	53,545	$	40,410	$	33,018	$	7,978		$	2,536	$	137,487

Six Months Ended June 26, 2021

Retail

Industrial

Construction

All Other

Corporate

Total
Net sales

$
2,018,239

$
1,060,055

$
1,298,234

$
145,047

$
3,970

$
4,525,545
Cost of goods sold

1,795,435

845,280

1,075,260

97,771

3,951

3,817,697
Gross profit

222,804

214,775

222,974

47,276

19

707,848
Selling, general, administrative expenses

107,476

95,016

122,481

24,025

(14,361)

334,637
Other

(268)

(177)

368

(1,031)

(103)

(1,211)
Earnings from operations

$
115,596

$
119,936

$
100,125

$
24,282

$
14,483

$
374,422

Six Months Ended June 27, 2020

Retail

Industrial

Construction

All Other

Corporate

Total
Net sales

$
961,351

$
480,922

$
740,325

$
91,804

$
(339)

$
2,274,063
Cost of goods sold

834,333

401,453

617,903

62,698

(14,491)

1,901,896
Gross profit

127,018

79,469

122,422

29,106

14,152

372,167
Selling, general, administrative expenses

67,081

47,582

88,687

17,729

2,042

223,121
Other

36

87

(296)

(1,747)

(24)

(1,944)
Earnings from operations

$
59,901

$
31,800

$
34,031

$
13,124

$
12,134

$
150,990

The following tables present the components of our operating results, for the periods indicated, as a percentage of net sales by segment.


	Three Months Ended June 26, 2021											Three Months Ended March 26, 2022

	Retail		Industrial		Construction		All Other		Corporate	Total		Retail		Industrial		Construction		All Other		Corporate	Total
Net sales	100.0	%	100.0	%	100.0	%	100.0	%	N/A	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	N/A	100.0	%
Cost of goods sold	90.3		78.0		81.8		66.8		—	84.4		86.5		75.5		79.5		67.0		—	80.8
Gross profit	9.7		22.0		18.2		33.2		—	15.6		13.5		24.5		20.5		33.0		—	19.2
Selling, general, administrative expenses	4.8		9.0		9.1		15.2		—	6.8		6.3		11.0		10.5		17.4		—	8.8
Other	—		—		—		(0.2)		—	—		—		—		—		0.1		—	—
Earnings from operations	4.9	%	13.0	%	9.1	%	18.2	%	—	8.8	%	7.2	%	13.5	%	10.0	%	15.5	%	—	10.4	%

Note: Actual percentages are calculated and may not sum to total due to rounding.


	Three Months Ended March 27, 2021

	Retail		Industrial		Construction		All Other		Corporate	Total
Net sales	100.0	%	100.0	%	100.0	%	100.0	%	N/A	100.0	%
Cost of goods sold	86.8		82.1		84.2		68.4		—	84.3
Gross profit	13.2		17.9		15.8		31.6		—	15.7
Selling, general, administrative expenses	6.2		8.9		9.9		18.8		—	8.2
Other	—		—		—		(1.5)		—	—
Earnings from operations	7.1	%	9.0	%	5.9	%	14.4	%	—	7.5	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

~~Table of Contents~~

~~UFP INDUSTRIES, INC.~~

Three Months Ended June 27, 2020









Retail

Industrial

Construction

All Other

Corporate

Total

Net sales

100.0
%
100.0
%
100.0
%
100.0
%
N/A

100.0
%
Cost of goods sold

86.3

83.4

82.8

65.9

—

83.5

Gross profit

13.7

16.6

17.2

34.1

—

16.5

Selling, general, administrative expenses

6.2

9.7

11.8

18.5

—

9.2

Other

—

—

—

(1.9)

—

(0.1)

Earnings from operations

7.5
%
6.9
%
5.4
%
17.5
%
—

7.4
%

~~Note: Actual percentages are calculated and may not sum to total due to rounding.~~

Six Months Ended June 26, 2021









Retail

Industrial

Construction

All Other

Corporate

Total

Net sales

100.0
%
100.0
%
100.0
%
100.0
%
N/A

100.0
%
Cost of goods sold

89.0

79.7

82.8

67.4

—

84.4

Gross profit

11.0

20.3

17.2

32.6

—

15.6

Selling, general, administrative expenses

5.3

9.0

9.4

16.6

—

7.4

Other

—

—

—

(0.7)

—

—

Earnings from operations

5.7
%
11.3
%
7.7
%
16.7
%
—

8.3
%

~~Note: Actual percentages are calculated and may not sum to total due to rounding.~~

Six Months Ended June 27, 2020









Retail

Industrial

Construction

All Other

Corporate

Total

Net sales

100.0
%
100.0
%
100.0
%
100.0
%
N/A

100.0
%
Cost of goods sold

86.8

83.5

83.5

68.3

—

83.6

Gross profit

13.2

16.5

16.5

31.7

—

16.4

Selling, general, administrative expenses

7.0

9.9

12.0

19.3

—

9.8

Other

—

—

—

(1.9)

—

(0.1)

Earnings from operations

6.2
%
6.6
%
4.5
%
14.3
%
—

6.6
%

~~Note: Actual percentages are calculated and may not sum to total due to rounding.~~

2522

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UFP INDUSTRIES, INC.

NET SALES

We ~~primarily~~ design, manufacture and market wood and wood-alternative products, primarily used to enhance outdoor living environments, for national home centers and other retailers, structural lumber and other products for the manufactured housing industry, engineered wood components for residential and commercial construction, customized interior fixtures used in a variety of retail stores, commercial, and other structures, and specialty wood packaging, components and packing materials for various industries. Our strategic long-term sales objectives include:

●	Maximizing unit sales growth while achieving return on investment goals. The following table presents estimates, for the periods indicated, of our percentage change in net sales which were attributable to changes in overall selling prices versus changes in units shipped.


	% Change										% Change
	in Sales		in Selling Prices		in Units		Acquisition Unit Change		Organic Unit Change		in Sales		in Selling Prices		in Units		Acquisition Unit Change		Organic Unit Change
Second quarter 2021 versus Second quarter 2020	117.4	%	70.4	%	47.0	%	36.0	%	11.0	%
Year-to-date 2021 versus Year-to-date 2020	99.0	%	58.0	%	41.0	%	30.0	%	11.0	%

First quarter 2022 versus First quarter 2021											36.4	%	26.4	%	10.0	%	6.8	%	3.2	%

●

Diversifying our end market sales mix by increasing sales of ~~specialty~~structural wood and protective packaging to industrial users, increasing our penetration of the concrete forming market, increasing our sales of engineered wood components for custom home, multi-family, military and light commercial construction, and increasing our market share with independent ~~retailers, and increasing our sales of customized interior fixtures, casework and millwork used in a variety of commercial markets.~~retailers.

●	Expanding geographically in our core businesses, domestically and internationally.

~~Table of Contents~~

~~UFP INDUSTRIES, INC.~~

●

Increasing our sales of "value-added" products and enhancing our product offering with new or improved products. Value-added products generally consist of fencing, decking, lattice, and other specialty products sold to the retail market, ~~specialty~~structural wood packaging, engineered wood components, customized interior fixtures, manufactured and assembled concrete forms, and "wood alternative" products. Engineered wood components include roof trusses, wall panels, and floor systems. Wood alternative products consist of products manufactured with wood and non-wood composites, metal, and plastics. Although we consider the treatment of dimensional lumber and panels with certain chemical preservatives a value-added process, treated lumber is not presently included in the value-added sales totals. Remanufactured lumber and panels that are components of finished goods are also generally categorized as “commodity-based” products. The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total sales by our segments (Retail, Industrial, Construction, All Other and Corporate).

The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total sales by our segments:


	Three Months Ended March 26, 2022				Three Months Ended March 27, 2021
	Value-Added		Commodity-Based		Value-Added		Commodity-Based
Retail	40.8	%	59.2	%	44.5	%	55.5	%
Industrial	67.8	%	32.2	%	66.9	%	33.1	%
Construction	72.4	%	27.6	%	68.9	%	31.1	%
All Other and Corporate	72.4	%	27.6	%	71.3	%	28.7	%
Total Sales	58.4	%	41.6	%	58.2	%	41.8	%

Note: Certain prior year product reclassifications and the change in designation of certain products as "value-added" resulted in a change in prior year's sales.

Table of Contents

UFP INDUSTRIES, INC.

Three Months Ended June 26, 2021

Three Months Ended June 27, 2020




Value-Added

Commodity-Based

Value-Added

Commodity-Based

Retail

39.7
%

60.3
%

58.5
%

41.5
%

Industrial

63.8
%

36.2
%

66.3
%

33.7
%

Construction

67.9
%

32.1
%

79.2
%

20.8
%

All Other and Corporate

73.4
%

26.6
%

79.7
%

20.3
%

Total Sales

53.8
%

46.2
%

66.6
%

33.4
%

Six Months Ended June 26, 2021

Six Months Ended June 27, 2020




Value-Added

Commodity-Based

Value-Added

Commodity-Based

Retail

41.5
%

58.5
%

57.8
%

42.2
%

Industrial

65.1
%

34.9
%

66.5
%

33.5
%

Construction

68.3
%

31.7
%

79.2
%

20.8
%

All Other and Corporate

72.7
%

27.3
%

76.3
%

23.7
%

Total Sales

55.5
%

44.5
%

67.2
%

32.8
%

The increase in our ratio of commodity-based product sales to total sales in the retail segment reflected in the table above is primarily due to the impact of ~~dramatically~~ higher lumber prices in the first ~~half~~quarter of ~~2021. This is due to the fact that~~2022 as the selling prices of these products are generally indexed to the current Lumber Market at the time they are shipped and lumber costs comprise a much higher percentage of the selling price than they do for value-added products. The acquisition of ~~Sunbelt and~~ Spartanburg also contributed to the increase in commodity-based sales of treated lumber in our retail ~~segment, while PalletOne contributed to the increase in value-added sales in the industrial~~ segment. Our overall unit sales of value-added products increased approximately ~~30%~~6% in the ~~second~~first quarter of ~~2021~~2022 compared to ~~2020,~~2021, including ~~an 18%~~a 3% contribution from acquisitions and ~~12%~~3% organic growth. Our unit sales of commodity-based products increased approximately ~~80%~~15%, including a ~~72%~~12% contribution from acquisitions and 8%3% organic growth.

~~Table of Contents~~

~~UFP INDUSTRIES, INC.~~

●

Developing new products. We define new products as those that will generate sales of at least a $1 million per year within 4 years of launch and are still growing and gaining market penetration. New product sales ~~and gross profits~~ in the ~~second~~first quarter of ~~2021~~2022 increased ~~61% and 72%, respectively.~~58%. Approximately ~~$4 million and $3~~$80 million of new product sales for the first ~~and second quarter~~three months of ~~2020, respectively,~~2021, while still sold, were sunset in ~~2021~~2022 and excluded from the table below because they no longer meet the definition above. Our goal is to achieve annual new product sales of at least ~~$575~~$525 million in ~~2021. The table below presents new product sales in thousands:~~2022.

New Product Sales by Segment

New Product Sales by Segment

Three Months Ended

Six Months Ended


June 26,

June 27,

%

June 26,

June 27,

%

2021

2020

Change

2021

2020

Change
Retail

$
151,808

115,133

31.9
%

$
259,688

$
182,242

42.5
%
Industrial

40,724

13,945

192.0
%

72,120

29,882

141.3
%
Construction

35,110

12,351

184.3
%

57,822

25,790

124.2
%
All Other and Corporate

4,501

2,387

88.6
%

7,273

5,375

35.3
%
Total New Product Sales

232,143

143,816

61.4
%

396,903

243,289

63.1
%

Note: Certain prior year product reclassifications and the change in designation of certain products as "new" resulted in a change in prior year's sales.

The table below presents new product sales in thousands:


	New Product Sales by Segment
	Three Months Ended
	March 26,		March 27,		%
	2022		2021		Change
Retail	$	65,765		51,902	26.7	%
Industrial		48,705		27,200	79.1	%
Construction		35,662		15,794	125.8	%
All Other and Corporate		770		313	146.0	%
Total New Product Sales		150,902		95,209	58.5	%

Note: Certain prior year product reclassifications and the change in designation of certain products as "new" resulted in a change in prior year's sales.

Retail Segment

Net sales in the ~~second~~first quarter of ~~2021~~2022 increased ~~approximately 107%~~by 31% compared to the same period of ~~2020,~~2021, due to a ~~59%~~19% increase in selling prices, ~~and~~acquisition unit growth of 12%, a ~~52% increase in unit sales~~3% decrease due to ~~acquisitions (Sunbelt~~the transfer of certain sales to the Construction segment, and ~~Spartanburg Forest Products), offset by a 4% decline in~~an organic unit ~~sales. Organic~~increase of 1%. We experienced organic unit ~~sale decreases of 17%~~growth in our ~~Handprint Home & Décor products~~UFP Edge (7%) and ~~18% in our ProWood pressure-treated products~~Retail Building Products (4%) business units. These increases were offset by organic unit ~~growth of 27%~~decreases in our ~~UFP Edge siding, pattern, and trim products, 11% in our~~Sunbelt (3%), ProWood (2%), Deckorators composite decking and railing products, and 6% in our Outdoor Essentials Fence, Lawn & Garden products. Our new product sales contributed to these increases and were up 32% for the quarter. The decline in our unit sales of ProWood and(7%), Handprint ~~products was primarily due to a shift in consumer spending as a result of the end of pandemic-related restrictions on certain activities. The increase in unit sales of UFP Edge, Deckorators,~~(21%), and Outdoor Essentials ~~was largely due~~(2%) business units. Our Deckorators business unit includes a variety of other products besides composite decking. Sales of accessories, such as plastic lattice, post caps, and balusters, reported a decline of 13%, while our composite decking unit sales increased by 5%. Capacity expansion contributed to our unit increases in Deckorators decking and UFP Edge, and we believe the investments we’ve made ~~to increase our capacity to produce~~in these ~~products as well as market share gains. Lastly, approximately $8~~business units will add planned sales of nearly $100 million ~~of sales to customers that distribute products for concrete forming were transferred from the construction segment~~ to the ~~retail segment. This change~~Retail segment in ~~structure was made so the personnel in our construction segment can more effectively focus their efforts on the design, manufacturing and~~2022. Finally, sales ~~of assembled forms and other value-added products for concrete forming. Sales~~ to big box customers were up ~~89% (30% organic) and~~30%, while sales to ~~other~~ independent retailers increased ~~150% (149% organic)~~31%.

Gross profits increased by ~~$39.1~~$33.9 million, or ~~46.9%~~33.7% to ~~$122.3~~$134.3 million for the ~~second~~first quarter of ~~2021~~2022 compared to the same period last year. Our increase in gross profit was attributable to the following:

●

~~Increased unit sales and leveraging fixed costs of value-added products within our Deckorators, Outdoor Essentials, and UFP Edge business units~~Acquired operations contributed ~~$4.1 of additional~~$12 million to the increase in gross ~~profit.~~profits.

●

~~Our Retail Building Materials~~The gross profits of our Sunbelt and ProWood business ~~unit contributed $18.2~~units increased by a total of $12.1 million, ~~to the increase. This increase was~~ primarily due to ~~unit sales growth and inventory positioning.~~

●

~~Our ProWood and Handprint business units increased gross profits by $10.4 million and $2.9, respectively. Our ProWood business unit recorded~~the favorable trend of rising lumber prices as the selling prices of these products are primarily determined on a ~~lower of cost or net realizable value adjustment to inventory and cost of goods sold totaling $2.3 million in the second quarter of 2021.~~variable price formula.

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●

~~Acquisitions~~Our UFP Edge and Retail Building Products business units contributed ~~$3.5~~$8 million to the ~~increase. This includes a lower of cost or net realizable value adjustment~~increase in gross profits.

●

Deckorators contributed $3 million to ~~inventory and cost of goods sold of $20.9 million recorded~~the increase in ~~the second quarter of 2021.~~gross profits.

Selling, general and administrative (“SG&A”) expenses increased by approximately ~~$22.8~~$15.6 million, or ~~60.8%~~33.1%, in the ~~second~~first quarter of ~~2021~~2022 compared to the same period of ~~2020.~~2021. The SG&A of recently acquired businesses contributed ~~$5.4~~$2.6 million to the ~~increase.~~change in SG&A. Accrued bonus expense, which varies with our overall profitability and return on investment, increased ~~approximately $12.5~~approximtely $6.7 million and totaled approximately ~~$20.9~~$20.7 million for the quarter. The remaining ~~increase~~change was primarily due to increases in salaries and wages ~~sales compensation, and~~of $2.9 million, travel related ~~expenses.~~

~~Earnings from operations for the Retail reportable segment increased in the second quarter~~expenses of ~~2021 compared to 2020 by $16.3~~$0.8 million, ~~or 36%, as a result of the factors mentioned above.~~

Net sales in the first six months of 2021 increased 110% compared to the same period of 2020, due to a 58% increase in selling prices, a 4% increase in organic unit sales, and a 48% increase in unit sales from acquired operations. Organic unit increases of 29% of Deckorators, 26% of UFP Edge, and 14% of Outdoor Essentials, were offset by organic unit declines of 11% of ProWood. The transfer of approximately $16 million in sales to the retail segment from the construction segment discussed above contributed to unit growth in the retail segment. Sales to big box customers were up 99% (42% organic) and sales ~~to other independent retailers increased 88% (87% organic).~~

~~Gross profits increased 75.4% to $222.8 million in the first six months~~incentive compensation of ~~2021 compared to the same period of 2020. Our increase in gross profit was attributable to the following:~~

●

~~Increased unit sales and leveraging fixed costs of value-added products within our Deckorators, Outdoor Essentials, Handprint, and UFP Edge business units contributed $16.2 of additional gross profit.~~

●

Our Retail Building Materials business unit contributed $28.8 million to the increase. This increase is primarily due to unit sales growth and rising lumber and panel pricing combined with effective inventory positioning.

●

~~Our ProWood business unit contributed $36.9 million to the increase in gross profit, including the lower of cost or net realizable value adjustment to inventory and cost of goods sold discussed above.~~

●

~~Acquisitions contributed $13.9 million to the increase including the lower of cost or net realizable value adjustment to inventory and cost of goods sold above.~~

Selling, general and administrative (“SG&A”) expenses increased by approximately $40.4 million, or 60.2%, in the first six months of 2021 compared to the same period of 2020. The SG&A of recently acquired businesses contributed approximately $9.1 million to this increase. Accrued bonus expense, which varies with our overall profitability and return on investment, increased approximately $23 million and totaled approximately $34.9 for the first six months of 2021. The remaining increase was primarily due to increases in salaries and wages and sales compensation.$0.6 million.

Earnings from operations for the Retail reportable segment increased in the first ~~six months~~quarter of ~~2021~~2022 compared to ~~2020~~2021 by ~~$55.7~~$17.8 million, or ~~93.0%~~33%, as a result of the factors mentioned above.

Industrial Segment

Net sales in the ~~second~~first quarter of ~~2021~~2022 increased ~~172%~~36% compared to the same period of ~~2020,~~2021, due to a 39% increase in selling prices, acquisition unit growth of 1%, and a 4% decrease in organic unit sales. The increase in our selling prices is a result of increases in lumber and other operating costs we’ve been able to pass on to customers, executing value-based selling initiatives, and maintaining pricing discipline as we operate in an environment of elevated demand and capacity constraints.The components of our change in organic unit sales includes market share gains associated with $36 million in sales to new customers, $18 million of sales to new locations of existing customers, and $22 million of new product sales. These gains were offset by the loss of unit sales on less profitable accounts.

Gross profits increased by $69.2 million, or 86.2%, for the first quarter of 2022 compared to the same period last year. Acquisitions contributed $1.7 million to the increase in gross profit. The remaining increase is a result of the pricing increases discussed above as well as favorable changes in our value-added sales mix. Excluding acquisitions, we estimate that value-added and commodity-based products contributed $49.9 million and $17.8 million, respectively, to the increase in gross profit.

Selling, general and administrative (“SG&A”) expenses increased by approximately $27.1 million, or 67.6%, in the first quarter of 2022 compared to the same period of 2021. Acquired operations since the second quarter of 2021 contributed approximately $1.3 million to our increase in costs. Accrued bonus expense, which varies with our overall profitability and return on investment, increased approximately $13.0 million, and totaled $23.7 million for the quarter. The remaining increase was primarily due to increases in sales incentive compensation of $4.7 million, salaries and wages of $2.7 million, bed debt expense of $1.7 million, and travel related expenses of $0.7 million.

Earnings from operations for the Industrial reportable segment increased in the first quarter of 2022 compared to 2021 by $42.0 million, or 103.9%, due to the factors discussed above.

Construction Segment

Net sales in the first quarter of 2022 increased 41% compared to the same period of 2021, due to a 26% increase in selling prices, 3% due to the transfer of certain sales from the Retail segment, organic unit sales ~~a 99% increase in selling prices attributable to the Lumber Market,~~growth of 11%, and ~~a 47% increase in unit sales~~1% growth from recent acquisitions. Organic unit changes within this segment consisted of increases of 30% in commercial construction, 16% in factory-built housing, 1% in site-built construction, and 13% in concrete forming. As of March 26, 2022 and December 25, 2021, we estimate that backlog orders associated with commercial construction approximated $93.0 million and $84.6 million, respectively. As of March 26, 2022 and December 25, 2021, we estimate that backlog orders associated with site-built construction approximated $141 million and $113.5 million, respectively. We expect that the orders above will be primarily filled within the next fiscal year; however, it is possible that some orders could be canceled.

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Gross profits increased by ~~$97.3~~$73.0 million, or ~~261.7%~~82.0%, for the ~~second~~first quarter of 2021 compared to the same period last year. Acquisitions contributed $23.1 million to the increase in gross profit. The remaining increase was primarily due to organic unit sales growth and leveraging fixed costs as well as favorable changes in sales mix. In addition, we were able to maintain our profit per unit by more effectively passing on commodity lumber and other cost increases in our selling prices.

~~Selling, general and administrative (“SG&A”) expenses increased by approximately $33.2 million, or 153.3%, in the second quarter of 2021~~2022 compared to the same period of 2020. Acquired operations since the second quarter of 2020 contributed approximately $7.4 million to our increase in costs. Accrued bonus expense, which varies with our overall profitability and return on investment, increased approximately $18.8 million, and totaled $21.0 million for the quarter. The remaining increase was primarily due to increases in salaries and wages, sales compensation, and travel related expenses.

~~Earnings from operations for the Industrial reportable segment increased in the second quarter of 2021 compared to 2020 by $64.1 million, or 415.7%, due to the factors discussed above.~~

Net sales in the first six months of 2021 increased 120% compared to the same period of 2020, due to a 66% increase in selling prices attributable to the Lumber Market, a 15% increase in organic unit sales, and a 39% increase in unit sales from recent acquisitions.

Gross profits in the first six months of 2021 increased 170.3% to $214.8 million compared to the same period of 2020. Acquisitions contributed $36.4 million to the increase in gross profit. The remaining increase was primarily due to organic unit sales growth and leveraging fixed costs as well as favorable changes in sales mix. In addition, we were able to maintain our profit per unit by more effectively passing on commodity lumber and other cost increases in our selling prices.

Selling, general and administrative (“SG&A”) expenses increased by approximately $47.4 million, or 99.7%, in the first six months of 2021 compared to the same period of 2020. Acquired operations since the second quarter of 2020 contributed approximately $12.7 million to total SG&A expenses. Accrued bonus expense increased approximately $25.3 million compared to the same period of 2020 and totaled approximately $31.7 for the first six months of 2021. ~~The remaining increase was primarily due to increases in salaries and wages and sales compensation.~~

~~Earnings from operations for the Industrial reportable segment increased in the first six months of 2021 compared to 2020 by $88.1 million, or 277.2%, due to the factors mentioned above.~~

~~Construction Segment~~

Net sales in the second quarter of 2021 increased 106% compared to the same period of 2020, due to a 77% increase in selling prices attributable to the Lumber Market and unit sales growth of 29%, including 3% from recent acquisitions. Organic unit changes within this segment consisted of increases of 56% in factory-built housing, 24% in site-built construction, 11% in commercial construction, offset by a 34% decrease in concrete forming. The transfer of approximately $8 million in sales to the retail segment from the construction segment discussed above contributed to the unit decline in the concrete forming business unit.

~~Gross profits increased by $72.6 million, or 117.7%, for the second quarter of 2021 compared to the same period of 2020.~~ The increase in our gross profit was comprised of the following factors:

●

Gross profits in our site-built construction business unit increased by $36.2 million as a result of being more selective in the business that we take during this period of elevated demand and capacity constraints. As a result, our profit per unit has improved.

●

Gross profits in our factory-built housing business unit increased ~~$34.3~~$25.2 million as a result of increased unit sales and leveraging fixed ~~costs and the impact of rising lumber prices on products sold with a variable price.~~

●

~~Gross profits in our site-built construction business unit increased by $28.7 million due to unit sales growth and leveraging fixed~~ costs. ~~In addition, we were able to maintain our profit per unit by more effectively passing on commodity lumber and other cost increases in our selling prices.~~

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~~UFP INDUSTRIES, INC.~~

●

~~The gross profit of our commercial construction business unit increased $1.8 million as a result of increased unit sales.~~

●

The gross profit of our concrete forming business unit increased by ~~$5.6 million.~~$8.5 million, including $3.8 million as a result of the transfer of sales from the Retail segment.

●

The gross profit of our commercial construction business unit increased $2.2 million as a result of increased unit sales, better productivity and other operational improvements, and improved pricing discipline.

●

Acquired businesses contributed ~~$2.2~~$0.9 million.

Selling, general and administrative (“SG&A”) expenses increased by approximately ~~$24.7~~$26.8 million, or ~~58.4%~~48.2%, in the ~~second~~first quarter of ~~2021~~2022 compared to the same period of ~~2020.~~2021. Acquired operations since the second quarter of ~~2020~~2021 contributed approximately ~~$1.2~~$0.9 million to total SG&A expenses for the quarter. Accrued bonus expense, which varies with our overall profitability and return on investment, increased approximately ~~$14.5~~$13.7 million, and totaled ~~$17.7~~$22.7 million for the quarter. The remaining increase was primarily due to increases in sales incentive compensation of $5.0 million, salaries and wages ~~sales compensation, professional design fees,~~of $1.9 million, bad debt expense of $1.4 million, and travel related ~~expenses.~~

~~Earnings from operations for the Construction reportable segment increased in the second quarter~~expenses of ~~2021 compared to 2020 by $47.6 million, or 243.4%, due to the factors mentioned above.~~

Net sales in the first six months of 2021 increased 75% compared to the same period of 2020, due to a 57% increase in selling prices primarily due to the Lumber Market and unit sales growth of 18%, including 3% from acquisitions. Organic unit changes within this segment consisted of increases of 34% in factory-built housing, 20% in site-built construction, and 1% in commercial construction. These increases were offset by a unit decline of 37% in concrete forming. The transfer of approximately $16 million in sales to the retail segment from the construction segment discussed above contributed to the unit decline in the concrete forming business unit.

~~Gross profits increased by $100.5 million, or 82.1% for the first six months of 2021 compared to the same period of 2020. The increase in our gross profits was comprised of the following factors:~~

●

Gross profits in our factory-built housing business unit increased by $48.1 million as a result of increased unit sales and leveraging fixed costs and the impact of rising lumber prices on products sold with a variable price.

●

Gross profits in our site-built construction business unit increased by $42.5 million due to unit sales growth and leveraging fixed costs. In addition, we were able to maintain our profit per unit by more effectively passing on commodity lumber and other cost increases in our selling prices.

●

~~The gross profit of our commercial construction business unit increased $1.7 million as a result of increased unit sales.~~

●

~~The gross profit of our concrete forming business unit increased $5.2 million due to the factors discussed above.~~

●

~~Acquired businesses contributed $3.0~~$0.6 million.

Selling, general and administrative (“SG&A”) expenses increased by approximately $33.8 million, or 38.1%, in the first six months of 2021 compared to the same period of 2020. Acquired operations since the second quarter of 2020 contributed approximately $1.7 million to total SG&A expenses. Accrued bonus expense increased approximately $20.0 million compared to the same period of 2020 and totaled approximately $26.7 million for the first six months of 2021. The remaining increase was primarily due to increases in salaries and wages, sales compensation, and professional design fees.

Earnings from operations for the Construction reportable segment increased in the first ~~six months~~quarter of ~~2021~~2022 compared to ~~2020~~2021 by ~~$66.1~~$45.8 million, or ~~194.2%~~138.7%, due to the factors mentioned above.

All Other Segment

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~~UFP INDUSTRIES, INC.~~

Our All Other reportable segment consists of our International and Ardellis (our insurance captive) segments that are not significant.

Corporate

The corporate segment consists of over (under) allocated costs that are not significant.

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 ~~25.0%~~24.0% in the ~~second~~first quarter of ~~2021~~2022 compared to ~~25.3%~~23.3% for same period in ~~2020 and was 24.4% in the first six months of 2021 compared to 25.1% for the same period in 2020~~. 2021. The ~~decrease~~increase was primarily due to one-time tax credit refunds recorded as a ~~decrease~~discrete item in ~~permanent tax differences~~the first quarter of 2021 that are not available in ~~2021 compared to the prior year, none of which are individually significant.~~2022.

OFF-BALANCE SHEET TRANSACTIONS

We have no significant off-balance sheet transactions.

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UFP INDUSTRIES, INC.

LIQUIDITY AND CAPITAL RESOURCES

The table below presents, for the periods indicated, a summary of our cash flow statement (in thousands):


	Six Months Ended				Three Months Ended
	June 26,		June 27,		March 26,		March 27,
	2021		2020		2022		2021
Cash used in operating activities	$	(115,733)	$	147,210	$	(245,031)	$	(196,660)
Cash used in investing activities		(513,998)		(66,212)		(59,736)		(296,498)
Cash from (used in) financing activities		237,926		(46,972)
Cash from financing activities						86,330		101,927
Effect of exchange rate changes on cash		112		(1,422)		1,726		(349)
Net change in all cash and cash equivalents		(391,693)		32,604		(216,711)		(391,580)
Cash, cash equivalents, and restricted cash, beginning of period		436,608		168,666		291,223		436,608
Cash, cash equivalents, and restricted cash, end of period	$	44,915	$	201,270	$	74,512	$	45,028

In general, we fund our growth through a combination of operating cash flows, our revolving credit facility, industrial development bonds (when circumstances permit), and issuance of long-term notes payable at times when interest rates are favorable. We have not issued equity to finance growth except in the case of a large acquisition. We manage our capital structure by attempting to maintain a targeted ratio of debt to equity and debt to earnings before interest, taxes, depreciation and amortization. We believe this is one of many important factors to maintaining a strong credit profile, which in turn helps ensure timely access to capital when needed.

Seasonality has a significant impact on our working capital due to our primary selling season which occurs during the period from March to September. Consequently, our working capital increases during our first and second quarters which typically results in negative or modest cash flows from operations during those periods. Conversely, we typically experience a substantial decrease in working capital once we move beyond our peak selling season which typically results in significant cash flows from operations in our third and fourth quarters. As explained in more detail below, the unusually large increase in lumber prices this year, as well as the significant increase in sales, resulted in a more significant increase in net working capital this year relative to prior years.

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~~UFP INDUSTRIES, INC.~~

Due to the seasonality of our business and the effects of the Lumber Market, we believe our cash cycle (days of sales outstanding plus days supply of inventory less days payables outstanding) is a good indicator of our working capital management. As indicated in the table below, our cash cycle ~~improved~~increased to 4853 days from ~~49 days during the second quarter and to 49 days from 54~~48 days during the first ~~six months~~quarter of ~~2021~~2022 compared to the ~~respective~~ prior ~~periods.~~year period.


	Three Months Ended				Six Months Ended				Three Months Ended
	June 26,		June 27,		June 26,		June 27,		March 26,		March 27,
	2021		2020		2021		2020		2022		2021
Days of sales outstanding		33		33		33		33		32		30
Days supply of inventory		33		37		35		41		41		38
Days payables outstanding		(18)		(21)		(19)		(21)		(20)		(20)
Days in cash cycle		48		49		49		53		53		48

The ~~consistency in our days sales outstanding is a result of continued focus on timely collection efforts in all of our segments. The decrease~~increase in our days supply of inventory in the first ~~six~~three months of ~~2021~~2022 compared to the same period of ~~2020~~2021 was primarily due to ~~strong demand~~a four day increase in ~~all~~our days supply of inventory to ensure we meet the delivery expectations or our ~~market segments~~customers and a one day increase in ~~2021, which contributed to higher inventory turns.~~our receivables cycle.

In the first ~~six~~three months of ~~2021,~~2022, our cash ~~used in~~consumed by operating activities was ~~$115.7~~$245.0 million, which was comprised of net earnings of ~~$279.6~~$193.1 million and ~~$48.6~~$35.4 million of non-cash expenses, offset by a ~~$443.9~~$473.5 million increase in working capital since the end of December ~~2020.~~2021. Our ~~operating~~ cash ~~flow this year declined~~flows used by ~~$262.9~~operations increased by $48.4 million compared to the same period of last year primarily due to an increase in our ~~seasonal~~ investment in net working capital ~~since the end~~ of ~~2020,~~$148.4 million compared to the prior year ~~period. This~~period, offset by an increase in our net earnings and non-cash expenses of $100.0 million. The increase in net working capital was due to ~~unusually high~~higher lumber ~~prices and increased market demand and net sales in each~~prices. the growth of our ~~segments. PalletOne~~business, and ~~other acquisitions also contributed to the~~an increase in our ~~seasonal investment in net working capital.~~days supply of inventory.

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~~Acquisitions and purchases~~UFP INDUSTRIES, INC.

Purchases of property, plant, and equipment and acquisitions (refer to Note F for Business Combinations) and comprised most of our cash used in investing activities during the first ~~six~~three months of ~~2021~~2022 and totaled ~~$433.2~~$32.1 million and ~~$79.0~~$24.6 million, respectively. Total proceeds from the sales of property, plant, and equipment were $1.2 million. Outstanding purchase commitments on existing capital projects totaled approximately ~~$45.1~~$68.7 million on ~~June~~March 26, ~~2021.~~2022. Capital spending primarily consists of several projects to expand ~~manufacturing~~ capacity to ~~serve retail, industrial~~manufacture new and ~~construction customers and~~value-added products, achieve efficiencies through automation, make improvements to a number of facilities, and increase our transportation capacity (tractors, trailers) in order to meet higher volumes and replace old rolling stock. We intend to fund capital expenditures and purchase commitments through our operating cash flows for the balance of the year. We currently plan to spend ~~approximately $140~~between $175 million to $225 million on capital projects for the ~~year.~~year with variability due to uncertainty about supplier lead times. Notable areas of capital spending include projects to increase the capacity and efficiency of our plants that produce our Deckorators mineral-based composite ~~decking~~ and wood-plastic composite decking and our UFP Edge siding, pattern and trim products, expand ~~our~~the capacity of machine-built pallet ~~capacity,~~and site-built business units, and take advantage of automation opportunities.

Cash flows from financing activities primarily consisted of net borrowings of debt of approximately ~~$260.2~~$101.5 million, the payment of quarterly dividends totaling ~~$18.6~~$12.5 million ($~~0.15~~0.20 per share), cash paid for repurchases of common stock of $0.5 million, and distributions to noncontrolling interests of ~~$2.9~~$2.1 million. On April 20, 2022, our board of directors approved an increase in our second quarter dividend to $0.25 per share, payable on June 15, 2022, to shareholders of record on June 1, 2022. Additionally, in April 2022, we repurchased approximately 756,000 shares for $58.5 million, at an average share price of $77.40.

On ~~June~~March 26, ~~2021,~~2022, we had ~~$265~~$109.7 million outstanding on our $550 million revolving credit facility, and we had approximately ~~$277.9~~$433.2 million in remaining availability after considering $7.1 million in outstanding letters of credit. Financial covenants on the unsecured revolving credit facility and unsecured notes include minimum interest tests and a maximum leverage ratio. The agreements also restrict the amount of additional indebtedness we may incur and the amount of assets which may be sold. We were in compliance with all our covenant requirements on ~~June~~March 26, ~~2021.~~2022.

At the end of the ~~second~~first quarter of ~~2021~~2022, we have approximately ~~$288.0~~$445.3 million in total liquidity, consisting of our net cash surplus and remaining availability under our revolving credit facility. ~~We anticipate our liquidity will increase substantially in the last six months of 2021 if~~As lumber prices ~~and demand~~ normalize and we ~~convert~~move beyond our ~~seasonal~~peak selling season we anticipate the increase in net working capital ~~to cash.~~will turn into strong operating cash flow in the third and fourth quarters.

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~~UFP INDUSTRIES, INC.~~

ENVIRONMENTAL CONSIDERATIONS AND REGULATIONS

See Notes to Unaudited Consolidated Condensed Financial Statements, Note E, “Commitments, Contingencies, and Guarantees.”

CRITICAL ACCOUNTING POLICIES

In preparing our consolidated financial statements, we follow accounting principles generally accepted in the United States. These principles require us to make certain estimates and apply judgments that affect our financial position and results of operations. We continually review our accounting policies and financial information disclosures. There have been no material changes in our policies or estimates since December ~~26, 2020.~~25, 2021.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

We are exposed to market risks related to fluctuations in interest rates on our variable rate debt, which consists of a revolving credit facility and industrial development revenue bonds. We do not currently use interest rate swaps, futures contracts or options on futures, or other types of derivative financial instruments to mitigate this risk.

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UFP INDUSTRIES, INC.

For fixed rate debt, changes in interest rates generally affect the fair market value, but not earnings or cash flows. Conversely, for variable rate debt, changes in interest rates generally do not influence fair market value, but do affect future earnings and cash flows. We do not have an obligation to prepay fixed rate debt prior to maturity, and as a result, interest rate risk and changes in fair market value should not have a significant impact on such debt until we would be required to refinance it.

We are subject to fluctuations in the price of lumber. We experience significant fluctuations in the cost of commodity lumber products from primary producers (the “Lumber Market”). A variety of factors over which we have no control, including government regulations, transportation, environmental regulations, weather conditions, economic conditions, and natural disasters, impact the cost of lumber products and our selling prices. While we attempt to minimize our risk from severe price fluctuations, substantial, prolonged trends in lumber prices can affect our sales volume, our gross margins, and our profitability. We anticipate that these fluctuations will continue in the future. (See “Impact of the Lumber Market on Our Operating Results.”)

Our international operations have exposure to foreign currency rate risks, primarily due to fluctuations in their local currency, which is their functional currency, compared to the U.S. Dollar. Additionally, certain of our operations enter into transactions that will be settled in a currency other than the U.S. Dollar. We may enter into forward foreign exchange rate contracts in the future to mitigate foreign currency exchange risk. Historically, our hedge contracts are deemed immaterial to the financial statements, however any material hedge contract in the future will be disclosed.

Item 4. Controls and Procedures.

(a)

Evaluation of Disclosure Controls and Procedures. With the participation of management, our chief executive officer and chief financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15e and 15d – 15e) as of the quarter ended ~~June~~March 26, ~~2021~~2022 (the “Evaluation Date”), have concluded that, as of such date, our disclosure controls and procedures were effective.

(b)

Changes in Internal Controls. During the quarter ended ~~June~~March 26, ~~2021,~~2022, there were no changes in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting, except for the implementation of a control to address the material weakness in control over our share-based bonus awards disclosed in our 2020 Form 10-K, which was remediated in the first quarter of 2021.reporting.

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~~UFP INDUSTRIES, INC.~~

PART II. OTHER INFORMATION

Item 1A. Risk Factors.

None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a)

None.

(b)

None.

(c)

Issuer purchases of equity securities.


~~Fiscal Month~~	~~(a)~~	~~(b)~~	~~(c)~~	~~(d)~~
~~March 28 – May 1, 2021~~	—	—	—	~~1,103,957~~
~~May 2 – 29, 2021~~	—	—	—	~~1,103,957~~
~~May 30 – June 26, 2021~~	—	—	—	~~1,103,957~~


Fiscal Month	(a)	(b)	(c)	(d)
December 26, 2021 – January 29, 2022	—	—	—	2,603,958
January 30 – February 26, 2022	6,300	79.53	6,300	2,597,658
February 27 – March 26, 2022	38,142	79.77	38,142	2,559,516

(a)	Total number of shares purchased.

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UFP INDUSTRIES, INC.

(b)	Average price paid per share.

(c)	Total number of shares purchased as part of publicly announced plans or programs.

(d)	Maximum number of shares that may yet be purchased under the plans or programs.

On November 14, 2001, the Board of Directors approved a share repurchase program (which succeeded a previous program) allowing us to repurchase up to 2.5 million shares of our common stock. On October 14, 2010, our Board authorized ~~an additional~~ 2 million shares to be repurchased under our share repurchase program. On February 15, 2022, our Board authorized an additional 1.5 million shares to be repurchased under our existing share repurchase program. The total number of remaining shares that may be repurchased under the program is approximately ~~1.1~~2.6 million.

Item 5. Other Information.

None.

PART II. OTHER INFORMATION

Item 6. Exhibits.

The following exhibits (listed by number corresponding to the Exhibit Table as Item 601 in Regulation S-K) are filed with this report:


31	Certifications.

	(a)	Certificate of the Chief Executive Officer of UFP Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

	(b)	Certificate of the Chief Financial Officer of UFP Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32	Certifications.

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~~UFP INDUSTRIES, INC.~~

	(a)	Certificate of the Chief Executive Officer of UFP Industries, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

	(b)	Certificate of the Chief Financial Officer of UFP Industries, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

101	Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language).

	(INS)	iXBRL Instance Document.

	(SCH)	iXBRL Schema Document.

	(CAL)	iXBRL Taxonomy Extension Calculation Linkbase Document.

	(LAB)	iXBRL Taxonomy Extension Label Linkbase Document.

	(PRE)	iXBRL Taxonomy Extension Presentation Linkbase Document.

	(DEF)	iXBRL Taxonomy Extension Definition Linkbase Document.

104	Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	UFP INDUSTRIES, INC.

Date: ~~August~~May 4, ~~2021~~2022	By:	/s/ Matthew J. Missad
	Matthew J. Missad,
	Chief Executive Officer and Principal Executive Officer


Date: ~~August~~May 4, ~~2021~~2022	By:	/s/ Michael R. Cole
	Michael R. Cole,
	Chief Financial Officer,
	Principal Financial Officer and
	Principal Accounting Officer

3731


	Six Months Ended June 26, 2021
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	2,018,239	$	1,060,055	$	1,298,234	$	145,047	$	3,970	$	4,525,545
Intersegment net sales		112,733		42,891		34,495		223,450		(413,569)		—
Segment operating profit		115,596		119,936		100,125		24,282		14,483		374,422