Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 25, 2021shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Sep. 25, 2021 |
Entity File Number | 0-22684 |
Entity Registrant Name | UFP INDUSTRIES, INC. |
Entity Incorporation, State or Country Code | MI |
Entity Tax Identification Number | 38-1465835 |
Entity Address, Address Line One | 2801 East Beltline NE |
Entity Address, City or Town | Grand Rapids |
Entity Address, State or Province | MI |
Entity Address, Postal Zip Code | 49525 |
City Area Code | 616 |
Local Phone Number | 364-6161 |
Title of 12(b) Security | Common Stock, no par value |
Trading Symbol | UFPI |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 61,887,770 |
Current Fiscal Year End Date | --12-25 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0000912767 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 25, 2021 | Dec. 26, 2020 | Sep. 26, 2020 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 138,637 | $ 436,507 | $ 346,154 |
Restricted cash | 17,592 | 101 | 724 |
Investments | 33,723 | 24,308 | 20,530 |
Accounts receivable, net | 783,959 | 470,504 | 583,079 |
Inventories: | |||
Raw materials | 368,185 | 316,481 | 286,418 |
Finished goods | 532,480 | 250,813 | 242,316 |
Total inventories | 900,665 | 567,294 | 528,734 |
Refundable income taxes | 14,134 | 5,836 | |
Other current assets | 34,040 | 33,812 | 32,888 |
TOTAL CURRENT ASSETS | 1,922,750 | 1,538,362 | 1,512,109 |
DEFERRED INCOME TAXES | 2,330 | 2,413 | 2,070 |
RESTRICTED INVESTMENTS | 18,925 | 17,565 | 17,327 |
RIGHT OF USE ASSETS | 94,481 | 77,245 | 77,412 |
OTHER ASSETS | 29,168 | 20,298 | 24,216 |
GOODWILL | 292,318 | 252,193 | 245,925 |
INDEFINITE-LIVED INTANGIBLE ASSETS | 7,380 | 7,401 | 7,361 |
OTHER INTANGIBLE ASSETS, NET | 93,984 | 72,252 | 58,205 |
PROPERTY, PLANT AND EQUIPMENT: | |||
Property, plant and equipment | 1,156,070 | 974,497 | 935,639 |
Less accumulated depreciation and amortization | (603,159) | (557,335) | (529,644) |
PROPERTY, PLANT AND EQUIPMENT, NET | 552,911 | 417,162 | 405,995 |
TOTAL ASSETS | 3,014,247 | 2,404,891 | 2,350,620 |
CURRENT LIABILITIES: | |||
Cash overdraft | 10,812 | ||
Accounts payable | 292,933 | 211,518 | 231,111 |
Accrued liabilities: | |||
Compensation and benefits | 249,242 | 166,478 | 171,472 |
Income taxes | 3,024 | ||
Other | 90,348 | 69,104 | 69,888 |
Current portion of lease liability | 22,242 | 16,549 | 15,349 |
Current portion of long-term debt | 93 | 100 | 2,760 |
TOTAL CURRENT LIABILITIES | 665,670 | 463,749 | 493,604 |
LONG-TERM DEBT | 310,119 | 311,607 | 311,267 |
LEASE LIABILITY | 75,548 | 61,509 | 62,100 |
DEFERRED INCOME TAXES | 39,198 | 25,266 | 22,478 |
OTHER LIABILITIES | 46,238 | 59,608 | 47,367 |
TOTAL LIABILITIES | 1,136,773 | 921,739 | 936,816 |
Controlling interest shareholders' equity: | |||
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none | |||
Common stock, $1 par value; shares authorized 80,000,000; issued and outstanding, 61,887,770, 61,205,780 and 61,186,636 | 61,888 | 61,206 | 61,187 |
Additional paid-in capital | 239,563 | 218,224 | 216,002 |
Retained earnings | 1,552,593 | 1,182,680 | 1,127,375 |
Accumulated other comprehensive loss | (3,278) | (1,794) | (6,974) |
Total controlling interest shareholders' equity | 1,850,766 | 1,460,316 | 1,397,590 |
Noncontrolling interest | 26,708 | 22,836 | 16,214 |
TOTAL SHAREHOLDERS' EQUITY | 1,877,474 | 1,483,152 | 1,413,804 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,014,247 | $ 2,404,891 | $ 2,350,620 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 25, 2021 | Dec. 26, 2020 | Sep. 26, 2020 |
SHAREHOLDERS' EQUITY: | |||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 61,887,770 | 61,205,780 | 61,186,636 |
Common stock, shares outstanding (in shares) | 61,887,770 | 61,205,780 | 61,186,636 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME | ||||
NET SALES | $ 2,093,784 | $ 1,486,227 | $ 6,619,329 | $ 3,760,290 |
COST OF GOODS SOLD | 1,766,229 | 1,245,153 | 5,583,926 | 3,147,049 |
GROSS PROFIT | 327,555 | 241,074 | 1,035,403 | 613,241 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 169,467 | 134,649 | 504,104 | 357,770 |
OTHER GAINS, NET | (10,037) | (176) | (11,248) | (2,120) |
EARNINGS FROM OPERATIONS | 168,125 | 106,601 | 542,547 | 257,591 |
INTEREST EXPENSE | 3,433 | 2,486 | 10,483 | 6,291 |
INTEREST AND INVESTMENT LOSS (INCOME) | 371 | (1,565) | (3,614) | (1,623) |
EQUITY IN EARNINGS OF INVESTEE | 946 | 2,411 | ||
NON-OPERATING (INCOME)/EXPENSE | 4,750 | 921 | 9,280 | 4,668 |
EARNINGS BEFORE INCOME TAXES | 163,375 | 105,680 | 533,267 | 252,923 |
INCOME TAXES | 37,628 | 26,819 | 127,909 | 63,798 |
NET EARNINGS | 125,747 | 78,861 | 405,358 | 189,125 |
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,706) | (1,657) | (7,624) | (5,299) |
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 121,041 | $ 77,204 | $ 397,734 | $ 183,826 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 1.94 | $ 1.25 | $ 6.40 | $ 2.98 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 1.94 | $ 1.25 | $ 6.38 | $ 2.98 |
OTHER COMPREHENSIVE INCOME: | ||||
NET EARNINGS | $ 125,747 | $ 78,861 | $ 405,358 | $ 189,125 |
OTHER COMPREHENSIVE GAIN (LOSS) | (2,024) | 1,687 | (1,500) | (4,030) |
COMPREHENSIVE INCOME | 123,723 | 80,548 | 403,858 | 185,095 |
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,496) | (1,922) | (7,608) | (3,354) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 119,227 | $ 78,626 | $ 396,250 | $ 181,741 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehen- sive Earnings | Noncontrolling Interest | Total |
Beginning balance at Dec. 28, 2019 | $ 61,409 | $ 192,173 | $ 995,022 | $ (4,889) | $ 14,018 | $ 1,257,733 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 40,159 | 411 | 40,570 | |||
Foreign currency translation adjustment | (5,951) | (2,335) | (8,286) | |||
Unrealized gain (loss) on debt securities | (270) | (270) | ||||
Distributions to noncontrolling interest | (299) | (299) | ||||
Additional purchases and adjustment of noncontrolling interest | 130 | (225) | (95) | |||
Cash dividends | (7,730) | (7,730) | ||||
Issuance of shares under employee stock plans | 10 | 309 | 319 | |||
Net issuance (forfeiture) of shares under stock grant programs | 350 | 12,454 | 1 | 12,805 | ||
Issuance of shares under deferred compensation plans | 89 | (89) | ||||
Repurchase of shares | (756) | (28,456) | (29,212) | |||
Expense associated with share-based compensation arrangements | 1,404 | 1,404 | ||||
Accrued expense under deferred compensation plans | 5,343 | 5,343 | ||||
Ending balance at Mar. 28, 2020 | 61,102 | 211,724 | 998,996 | (11,110) | 11,570 | 1,272,282 |
Beginning balance at Dec. 28, 2019 | 61,409 | 192,173 | 995,022 | (4,889) | 14,018 | 1,257,733 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 189,125 | |||||
Ending balance at Sep. 26, 2020 | 61,187 | 216,002 | 1,127,375 | (6,974) | 16,214 | 1,413,804 |
Beginning balance at Mar. 28, 2020 | 61,102 | 211,724 | 998,996 | (11,110) | 11,570 | 1,272,282 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 66,463 | 3,231 | 69,694 | |||
Foreign currency translation adjustment | 2,026 | 125 | 2,151 | |||
Unrealized gain (loss) on debt securities | 688 | 688 | ||||
Cash dividends | (7,644) | (7,644) | ||||
Issuance of shares under employee stock plans | 10 | 367 | 377 | |||
Net issuance (forfeiture) of shares under stock grant programs | 43 | (174) | 2 | (129) | ||
Issuance of 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 | ||||
Ending balance at Jun. 27, 2020 | 61,169 | 213,809 | 1,057,817 | (8,396) | 14,926 | 1,339,325 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 77,204 | 1,657 | 78,861 | |||
Foreign currency translation adjustment | 1,319 | 265 | 1,584 | |||
Unrealized gain (loss) on debt securities | 103 | 103 | ||||
Distributions to noncontrolling interest | (634) | (634) | ||||
Cash dividends | (7,646) | (7,646) | ||||
Issuance of shares under employee stock plans | 7 | 338 | 345 | |||
Net issuance (forfeiture) of shares under stock grant programs | (1) | (56) | (57) | |||
Issuance of shares under deferred compensation plans | 12 | (12) | ||||
Expense associated with share-based compensation arrangements | 826 | 826 | ||||
Accrued expense under deferred compensation plans | 1,097 | 1,097 | ||||
Ending balance at Sep. 26, 2020 | 61,187 | 216,002 | 1,127,375 | (6,974) | 16,214 | 1,413,804 |
Beginning balance at Dec. 26, 2020 | 61,206 | 218,224 | 1,182,680 | (1,794) | 22,836 | 1,483,152 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 103,311 | 940 | 104,251 | |||
Foreign currency translation adjustment | (374) | (526) | (900) | |||
Unrealized gain (loss) on debt securities | (1,296) | (1,296) | ||||
Distributions to noncontrolling interest | (2,914) | (2,914) | ||||
Cash dividends | (9,274) | (9,274) | ||||
Issuance of shares under employee stock plans | 6 | 357 | 363 | |||
Net issuance (forfeiture) of shares under stock grant programs | 537 | 3,888 | 5 | 4,430 | ||
Issuance of shares under deferred compensation plans | 89 | (89) | ||||
Expense associated with share-based compensation arrangements | 2,936 | 2,936 | ||||
Accrued expense under deferred compensation plans | 5,795 | 5,795 | ||||
Ending balance at Mar. 27, 2021 | 61,838 | 231,111 | 1,276,722 | (3,464) | 20,336 | 1,586,543 |
Beginning balance at Dec. 26, 2020 | 61,206 | 218,224 | 1,182,680 | (1,794) | 22,836 | 1,483,152 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 405,358 | |||||
Ending balance at Sep. 25, 2021 | 61,888 | 239,563 | 1,552,593 | (3,278) | 26,708 | 1,877,474 |
Beginning balance at Mar. 27, 2021 | 61,838 | 231,111 | 1,276,722 | (3,464) | 20,336 | 1,586,543 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 173,382 | 1,978 | 175,360 | |||
Foreign currency translation adjustment | 1,759 | 720 | 2,479 | |||
Unrealized gain (loss) on debt securities | 241 | 241 | ||||
Cash dividends | (9,276) | (9,276) | ||||
Issuance of shares under employee stock plans | 9 | 564 | 573 | |||
Net issuance (forfeiture) of shares under stock grant programs | (6) | (224) | 5 | (225) | ||
Issuance of 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 | ||||
Ending balance at Jun. 26, 2021 | 61,851 | 235,309 | 1,440,833 | (1,464) | 23,034 | 1,759,563 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 121,041 | 4,706 | 125,747 | |||
Foreign currency translation adjustment | (1,897) | (210) | (2,107) | |||
Unrealized gain (loss) on debt securities | 83 | 83 | ||||
Additional purchases and adjustment of noncontrolling interest | (822) | (822) | ||||
Cash dividends | (9,281) | (9,281) | ||||
Issuance of shares under employee stock plans | 10 | 573 | 583 | |||
Net issuance (forfeiture) of shares under stock grant programs | 17 | (115) | (98) | |||
Issuance of shares under deferred compensation plans | 10 | (10) | ||||
Expense associated with share-based compensation arrangements | 2,657 | 2,657 | ||||
Accrued expense under deferred compensation plans | 1,149 | 1,149 | ||||
Ending balance at Sep. 25, 2021 | $ 61,888 | $ 239,563 | $ 1,552,593 | $ (3,278) | $ 26,708 | $ 1,877,474 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Cash dividends per share (USD per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.125 | $ 0.125 | $ 0.125 |
Net issuance of shares under employee stock plans (in shares) | 10,008 | 9,282 | 5,816 | 7,511 | 9,714 | 10,549 |
Net issuance (forfeiture) of shares under stock grant programs (in shares) | 17,165 | 5,718 | 536,970 | (1,382) | 42,880 | 350,124 |
Issuance of shares under deferred compensation plans (in shares) | 9,864 | 8,913 | 89,690 | 11,326 | 14,106 | 89,616 |
Repurchase of shares (in shares) | 756,397 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 25, 2021 | Sep. 26, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 405,358 | $ 189,125 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Depreciation | 61,741 | 47,226 |
Amortization of intangibles | 9,369 | 5,863 |
Expense associated with share-based and grant compensation arrangements | 8,444 | 3,152 |
Deferred income taxes | (594) | 110 |
Unrealized loss (gain) on investments and other | (1,756) | (81) |
Equity in earnings of investee | 2,411 | |
Net gain on sale and disposition of assets | (10,482) | (662) |
Changes in: | ||
Accounts receivable | (141,088) | (211,238) |
Inventories | (204,144) | (39,167) |
Accounts payable and cash overdraft | 53,437 | 85,354 |
Accrued liabilities and other | 99,067 | 105,401 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 281,763 | 185,083 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (110,092) | (67,024) |
Proceeds from sale of property, plant and equipment | 26,597 | 2,588 |
Acquisitions and purchases of non-controlling interest, net of cash received | (433,275) | (34,820) |
Purchases of investments | (17,866) | (24,266) |
Proceeds from sale of investments | 9,857 | 22,281 |
Other | (3,478) | 314 |
NET CASH USED IN INVESTING ACTIVITIES | (528,257) | (100,927) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under revolving credit facilities | 886,966 | 6,862 |
Repayments under revolving credit facilities | (888,335) | (6,498) |
Contingent consideration payments and other | (2,664) | (3,087) |
Issuance of long-term debt | 150,000 | |
Proceeds from issuance of common stock | 1,519 | 1,042 |
Dividends paid to shareholders | (27,831) | (23,020) |
Distributions to noncontrolling interest | (2,914) | (932) |
Repurchase of common stock | (29,212) | |
Other | (334) | 23 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (33,593) | 95,178 |
Effect of exchange rate changes on cash | (292) | (1,122) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (280,379) | 178,212 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 436,608 | 168,666 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 156,229 | $ 346,878 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL (Parenthetical) - USD ($) $ in Thousands | Sep. 25, 2021 | Dec. 26, 2020 | Sep. 26, 2020 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Cash and cash equivalents, beginning of period | $ 436,507 | $ 346,154 | $ 168,336 |
Restricted cash, beginning of period | 101 | 724 | 330 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 436,608 | 346,878 | 168,666 |
Cash and cash equivalents, end of period | 138,637 | 436,507 | 346,154 |
Restricted cash, end of period | 17,592 | 101 | 724 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 156,229 | $ 436,608 | $ 346,878 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL AND NON-CASH FINANCING ACTIVITIES (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 25, 2021 | Sep. 26, 2020 | |
SUPPLEMENTAL INFORMATION: | ||
Interest paid | $ 10,360 | $ 4,112 |
Income taxes paid | 136,893 | 47,301 |
NON-CASH INVESTING ACTIVITIES | ||
Capital expenditures included in accounts payable | 2,366 | |
NON-CASH FINANCING ACTIVITIES: | ||
Common stock issued under deferred compensation plans | $ 6,778 | $ 6,195 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 25, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | A. BASIS OF PRESENTATION The accompanying unaudited interim consolidated condensed financial statements (the “Financial Statements”) include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, the Financial Statements do not include all the information and footnotes normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States. 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. 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 September 26, 2020 balances in the accompanying unaudited condensed consolidated balance sheets. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 25, 2021 | |
FAIR VALUE | |
FAIR VALUE | B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures September 25, 2021 September 26, 2020 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 19 $ 2,631 $ — $ 2,650 $ 64 $ 3,133 $ — $ 3,197 Fixed income funds 962 17,021 — 17,983 248 16,522 — 16,770 Treasury securities 310 — — 310 — — — — Equity securities 18,543 — — 18,543 10,524 — — 10,524 Alternative investments — — 3,536 3,536 — — 1,926 1,926 Mutual funds: Domestic stock funds 9,968 — — 9,968 6,826 — — 6,826 International stock funds 1,675 — — 1,675 1,243 — — 1,243 Target funds 23 — — 23 260 — — 260 Bond funds 146 — — 146 208 — — 208 Alternative funds 497 — — 497 433 — — 433 Total mutual funds 12,309 — — 12,309 8,970 — — 8,970 Total $ 32,143 $ 19,652 $ 3,536 $ 55,331 $ 19,806 $ 19,655 $ 1,926 $ 41,387 Assets at fair value $ 32,143 $ 19,652 $ 3,536 $ 55,331 $ 19,806 $ 19,655 $ 1,926 $ 41,387 From the assets measured at fair value as of September 25, 2021, listed in the table above, $33.6 million of mutual funds, equity securities, and alternative investments are held in Investments, $0.1 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 $18.3 million of fixed income funds and $2.6 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, In accordance with our investment policy, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling $52.0 million as of September 25, 2021, which has been included in the aforementioned table of total investments. This portfolio consists of domestic and international equity securities, alternative investments, and fixed income bonds. Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): September 25, 2021 September 26, 2020 Unrealized Unrealized Cost Gain Fair Value Cost Gain Fair Value Fixed Income $ 17,293 $ 690 $ 17,983 $ 15,750 $ 1,020 $ 16,770 Treasury Securities 310 — 310 — — — Equity 14,392 4,151 18,543 9,121 1,403 10,524 Mutual Funds 9,210 2,435 11,645 7,228 852 8,080 Alternative Investments 3,370 166 3,536 1,881 45 1,926 Total $ 44,575 $ 7,442 $ 52,017 $ 33,980 $ 3,320 $ 37,300 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 $7.4 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of September 25, 2021 and September 26, 2020. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 25, 2021 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | C. REVENUE RECOGNITION Within the three 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 rd rd The Company utilizes rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred relative to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced relative to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 The following table presents our net sales disaggregated by revenue source (in thousands): Three Months Ended Nine Months Ended September 25, September 26, September 25, September 26, 2021 2020 % Change 2021 2020 % Change FOB Shipping Point Revenue $ 2,063,647 $ 1,454,220 41.9% $ 6,530,204 $ 3,663,140 78.3% Construction Contract Revenue 30,137 32,007 (5.8)% 89,125 97,150 (8.3)% Total Net Sales 2,093,784 1,486,227 40.9% $ 6,619,329 $ 3,760,290 76.0% 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): September 25, December 26, September 26, 2021 2020 2020 Cost and Earnings in Excess of Billings $ 3,776 $ 4,169 $ 4,130 Billings in Excess of Cost and Earnings 10,373 11,530 11,264 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 25, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | D. EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended Nine Months Ended September 25, September 26, September 25, September 26, 2021 2020 2021 2020 Numerator: Net earnings attributable to controlling interest $ 121,041 $ 77,204 $ 397,734 $ 183,826 Adjustment for earnings allocated to non-vested restricted common stock (3,952) (2,195) (12,800) (5,110) Net earnings for calculating EPS $ 117,089 $ 75,009 $ 384,934 $ 178,716 Denominator: Weighted average shares outstanding 62,266 61,548 62,162 61,642 Adjustment for non-vested restricted common stock (2,033) (1,750) (2,001) (1,713) Shares for calculating basic EPS 60,233 59,798 60,161 59,929 Effect of dilutive restricted common stock 168 20 137 19 Shares for calculating diluted EPS 60,401 59,818 60,298 59,948 Net earnings per share: Basic $ 1.94 $ 1.25 $ 6.40 $ 2.98 Diluted $ 1.94 $ 1.25 $ 6.38 $ 2.98 |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 9 Months Ended |
Sep. 25, 2021 | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | E. COMMITMENTS, CONTINGENCIES, AND GUARANTEES We are self-insured for environmental impairment liability, including certain liabilities which are insured through a wholly owned subsidiary, Ardellis Insurance Ltd., a licensed captive insurance company. In addition, on September 25, 2021, 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 September 25, 2021, we had outstanding purchase commitments on commenced capital projects of approximately $44.1 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 September 25, 2021, we had approximately $39.6 million outstanding payment and performance bonds for open projects. We had approximately $2.1 million in payment and performance bonds outstanding for completed projects which are still under warranty. On September 25, 2021, we had outstanding letters of credit totaling $52.6 million, primarily related to certain insurance contracts and industrial development revenue bonds described further below. 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 September 25, 2021, we have irrevocable letters of credit outstanding totaling approximately $45.5 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 third quarter of 2021 which would require us to recognize a liability on our balance sheet. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 25, 2021 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | F. BUSINESS COMBINATIONS We completed the following acquisitions in 2021 and since the end of September 2020, which were accounted for using the purchase method in thousands unless otherwise noted: Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment April 29, 2021 $10,108 $ 7,099 $ 3,009 Construction 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. April 19, 2021 $8,549 $ 1,526 $ 7,023 Retail 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. April 12, 2021 $153,462 $ — $ 153,462 Retail 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 five 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. March 1, 2021 $4,724 $ 4,264 $ 460 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). December 28, 2020 $259,011 $ 66,899 $ 192,112 Retail/Industrial 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 five pressure-treating facilities in the Southeastern U.S. PalletOne and its affiliates had 2019 and 2020 sales of Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment November 10, 2020 $21,268 $ 11,923 $ 9,345 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. October 1, 2020 $5,936 $ 5,222 $ 714 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. September 30, 2020 $3,475 $ 7,267 $ (1,369) Other 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 eight locations in Italy. These locations generated annual sales of approximately $14 million. The intangible assets for the above acquisitions have not been finalized and allocated to their respective identifiable asset and goodwill accounts. In aggregate, acquisitions completed since the end of September 2020 and not consolidated with other operations contributed approximately $903.0 million in net sales and $26.0 million in operating profits during the first nine months of 2021. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 25, 2021 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 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 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 and leases transportation equipment, are also included in the Corporate column. An inter-company lease charge is assessed to our operating segments for the use of these assets at fair market value rates. Total assets of 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., and UFP Transportation Ltd. The tables below are presented in thousands: Three Months Ended September 25, 2021 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 696,201 $ 573,234 $ 722,872 $ 98,689 $ 2,788 $ 2,093,784 Intersegment net sales 50,546 23,148 27,574 122,470 (223,738) — Segment operating profit (26,153) 70,408 84,205 20,283 19,382 168,125 Three Months Ended September 26, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 700,522 $ 282,124 $ 447,103 $ 56,700 $ (222) $ 1,486,227 Intersegment net sales 45,416 11,773 17,909 76,029 (151,127) — Segment operating profit 62,181 22,037 16,513 7,449 (1,579) 106,601 Nine Months Ended September 25, 2021 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 2,714,440 $ 1,633,289 $ 2,021,106 $ 243,736 $ 6,758 $ 6,619,329 Intersegment net sales 163,279 66,039 62,069 345,920 (637,307) — Segment operating profit 89,443 190,344 184,330 44,565 33,865 542,547 Nine Months Ended September 26, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 1,661,873 $ 763,046 $ 1,187,429 $ 148,503 $ (561) $ 3,760,290 Intersegment net sales 109,378 32,788 49,685 196,908 (388,759) — Segment operating profit 122,082 53,837 50,544 20,573 10,555 257,591 The following table presents goodwill by segment as of September 25, 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 18,441 43,844 2,427 4,176 — 68,888 2021 Purchase Accounting Adjustments (1,682) (17,937) (6,227) (2,575) — (28,421) Foreign Exchange, Net — — 101 (443) — (342) Balance as of September 25, 2021 $ 78,702 $ 113,734 $ 87,030 $ 12,852 $ — $ 292,318 The following table presents total assets by segment as of September 25, 2021, and December 26, 2020 (in thousands). Total Assets by Segment September 25, December 26, Segment Classification 2021 2020 % Change Retail $ 829,745 $ 510,464 62.5 % Industrial 740,206 416,487 77.7 Construction 725,419 510,972 42.0 All Other 284,626 196,856 44.6 Corporate 434,251 770,112 (43.6) Total Assets $ 3,014,247 $ 2,404,891 25.3 % |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 25, 2021 | |
INCOME TAXES | |
INCOME TAXES | H. INCOME TAXES Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for foreign, state and local income taxes and permanent tax differences. Our effective tax rate was 23.0% in the third quarter of 2021 compared to 25.4% for same period in 2020 and was 24.0% in the first nine months of 2021 compared to 25.2% for the same period in 2020. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 25, 2021 | |
COMMON STOCK | |
COMMON STOCK | I. COMMON STOCK Below is a summary of common stock issuances for the first nine months of 2021 and 2020 (in thousands, except average share price): September 25, 2021 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 25 $ 71.18 Shares issued under the employee stock gift program 2 76.80 Shares issued under the director retainer stock program 4 69.80 Shares issued under the bonus plan 487 57.06 Shares issued under the executive stock match grants plan 77 60.24 Forfeitures (21) Total shares issued under stock grant programs 549 $ 57.64 Shares issued under the deferred compensation plans 108 $ 62.48 September 26, 2020 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 28 $ 44.14 Shares issued under the employee stock gift program 2 45.93 Shares issued under the director retainer stock program 46 24.80 Shares issued under the bonus plan 271 47.51 Shares issued under the executive stock match grants plan 79 47.60 Forfeitures (7) Total shares issued under stock grant programs 391 $ 44.92 Shares issued under the deferred compensation plans 115 $ 53.85 During the first nine months of 2021, we did not repurchase any of our shares of common stock. During the first nine months of 2020, we repurchased approximately 756,000 shares of our common stock at an average share price of $38.62. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 25, 2021 | |
INVENTORIES | |
INVENTORIES | J. INVENTORIES Inventories are stated at the lower of cost or net realizable value. The cost of inventories includes raw materials, direct labor, and manufacturing overhead. 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 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 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 lower of cost or net realizable value adjustment to inventory as of September 25, 2021 and September 26, 2020 was $1.3 million and $0 , respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 25, 2021 | |
SUBSEQUENT EVENTS | |
Subsequent Events | K. SUBSEQUENT EVENTS On September 27, 2027, we acquired the equity of Shelter Products, Inc., for $6.5 million. Based in Haleyville, Alabama, Shelter Products provides distribution and logistics support to factory-built manufacturers through nine warehouses across the U.S. On October 29, 2021, we acquired the assets of The Box Pack Trust, operating as Boxpack Packaging (Boxpack) for $5.2 million. Based near Melbourne, Australia, Boxpack specializes in flexographic and lithographic cardboard packaging, using the latest CAD design and finishing techniques. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 25, 2021 | |
BASIS OF PRESENTATION | |
Revenue Recognition | Within the three 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 rd rd The Company utilizes rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred relative to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced relative to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
FAIR VALUE | |
Assets measured at fair value | Assets measured at fair value are as follows (in thousands): September 25, 2021 September 26, 2020 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 19 $ 2,631 $ — $ 2,650 $ 64 $ 3,133 $ — $ 3,197 Fixed income funds 962 17,021 — 17,983 248 16,522 — 16,770 Treasury securities 310 — — 310 — — — — Equity securities 18,543 — — 18,543 10,524 — — 10,524 Alternative investments — — 3,536 3,536 — — 1,926 1,926 Mutual funds: Domestic stock funds 9,968 — — 9,968 6,826 — — 6,826 International stock funds 1,675 — — 1,675 1,243 — — 1,243 Target funds 23 — — 23 260 — — 260 Bond funds 146 — — 146 208 — — 208 Alternative funds 497 — — 497 433 — — 433 Total mutual funds 12,309 — — 12,309 8,970 — — 8,970 Total $ 32,143 $ 19,652 $ 3,536 $ 55,331 $ 19,806 $ 19,655 $ 1,926 $ 41,387 Assets at fair value $ 32,143 $ 19,652 $ 3,536 $ 55,331 $ 19,806 $ 19,655 $ 1,926 $ 41,387 |
Available for sale investment portfolio | Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): September 25, 2021 September 26, 2020 Unrealized Unrealized Cost Gain Fair Value Cost Gain Fair Value Fixed Income $ 17,293 $ 690 $ 17,983 $ 15,750 $ 1,020 $ 16,770 Treasury Securities 310 — 310 — — — Equity 14,392 4,151 18,543 9,121 1,403 10,524 Mutual Funds 9,210 2,435 11,645 7,228 852 8,080 Alternative Investments 3,370 166 3,536 1,881 45 1,926 Total $ 44,575 $ 7,442 $ 52,017 $ 33,980 $ 3,320 $ 37,300 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
REVENUE RECOGNITION | |
Schedule of Disaggregation of revenue | The following table presents our net sales disaggregated by revenue source (in thousands): Three Months Ended Nine Months Ended September 25, September 26, September 25, September 26, 2021 2020 % Change 2021 2020 % Change FOB Shipping Point Revenue $ 2,063,647 $ 1,454,220 41.9% $ 6,530,204 $ 3,663,140 78.3% Construction Contract Revenue 30,137 32,007 (5.8)% 89,125 97,150 (8.3)% Total Net Sales 2,093,784 1,486,227 40.9% $ 6,619,329 $ 3,760,290 76.0% |
Schedule of percentage-of-completion balances | The following table presents the balances of over time accounting accounts which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): September 25, December 26, September 26, 2021 2020 2020 Cost and Earnings in Excess of Billings $ 3,776 $ 4,169 $ 4,130 Billings in Excess of Cost and Earnings 10,373 11,530 11,264 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
EARNINGS PER SHARE | |
Schedule of Computation of earnings per share | The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended Nine Months Ended September 25, September 26, September 25, September 26, 2021 2020 2021 2020 Numerator: Net earnings attributable to controlling interest $ 121,041 $ 77,204 $ 397,734 $ 183,826 Adjustment for earnings allocated to non-vested restricted common stock (3,952) (2,195) (12,800) (5,110) Net earnings for calculating EPS $ 117,089 $ 75,009 $ 384,934 $ 178,716 Denominator: Weighted average shares outstanding 62,266 61,548 62,162 61,642 Adjustment for non-vested restricted common stock (2,033) (1,750) (2,001) (1,713) Shares for calculating basic EPS 60,233 59,798 60,161 59,929 Effect of dilutive restricted common stock 168 20 137 19 Shares for calculating diluted EPS 60,401 59,818 60,298 59,948 Net earnings per share: Basic $ 1.94 $ 1.25 $ 6.40 $ 2.98 Diluted $ 1.94 $ 1.25 $ 6.38 $ 2.98 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
BUSINESS COMBINATIONS | |
Business Acquisitions Accounted for Using Purchase Method | We completed the following acquisitions in 2021 and since the end of September 2020, which were accounted for using the purchase method in thousands unless otherwise noted: Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment April 29, 2021 $10,108 $ 7,099 $ 3,009 Construction 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. April 19, 2021 $8,549 $ 1,526 $ 7,023 Retail 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. April 12, 2021 $153,462 $ — $ 153,462 Retail 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 five 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. March 1, 2021 $4,724 $ 4,264 $ 460 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). December 28, 2020 $259,011 $ 66,899 $ 192,112 Retail/Industrial 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 five pressure-treating facilities in the Southeastern U.S. PalletOne and its affiliates had 2019 and 2020 sales of Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment November 10, 2020 $21,268 $ 11,923 $ 9,345 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. October 1, 2020 $5,936 $ 5,222 $ 714 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. September 30, 2020 $3,475 $ 7,267 $ (1,369) Other 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 eight locations in Italy. These locations generated annual sales of approximately $14 million. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
SEGMENT REPORTING | |
Segment Reporting | The tables below are presented in thousands: Three Months Ended September 25, 2021 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 696,201 $ 573,234 $ 722,872 $ 98,689 $ 2,788 $ 2,093,784 Intersegment net sales 50,546 23,148 27,574 122,470 (223,738) — Segment operating profit (26,153) 70,408 84,205 20,283 19,382 168,125 Three Months Ended September 26, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 700,522 $ 282,124 $ 447,103 $ 56,700 $ (222) $ 1,486,227 Intersegment net sales 45,416 11,773 17,909 76,029 (151,127) — Segment operating profit 62,181 22,037 16,513 7,449 (1,579) 106,601 Nine Months Ended September 25, 2021 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 2,714,440 $ 1,633,289 $ 2,021,106 $ 243,736 $ 6,758 $ 6,619,329 Intersegment net sales 163,279 66,039 62,069 345,920 (637,307) — Segment operating profit 89,443 190,344 184,330 44,565 33,865 542,547 Nine Months Ended September 26, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 1,661,873 $ 763,046 $ 1,187,429 $ 148,503 $ (561) $ 3,760,290 Intersegment net sales 109,378 32,788 49,685 196,908 (388,759) — Segment operating profit 122,082 53,837 50,544 20,573 10,555 257,591 |
Schedule of Goodwill by Segment | The following table presents goodwill by segment as of September 25, 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 18,441 43,844 2,427 4,176 — 68,888 2021 Purchase Accounting Adjustments (1,682) (17,937) (6,227) (2,575) — (28,421) Foreign Exchange, Net — — 101 (443) — (342) Balance as of September 25, 2021 $ 78,702 $ 113,734 $ 87,030 $ 12,852 $ — $ 292,318 |
Schedule of assets by segment | 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 18,441 43,844 2,427 4,176 — 68,888 2021 Purchase Accounting Adjustments (1,682) (17,937) (6,227) (2,575) — (28,421) Foreign Exchange, Net — — 101 (443) — (342) Balance as of September 25, 2021 $ 78,702 $ 113,734 $ 87,030 $ 12,852 $ — $ 292,318 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
COMMON STOCK | |
Schedule of common stock issuances | Below is a summary of common stock issuances for the first nine months of 2021 and 2020 (in thousands, except average share price): September 25, 2021 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 25 $ 71.18 Shares issued under the employee stock gift program 2 76.80 Shares issued under the director retainer stock program 4 69.80 Shares issued under the bonus plan 487 57.06 Shares issued under the executive stock match grants plan 77 60.24 Forfeitures (21) Total shares issued under stock grant programs 549 $ 57.64 Shares issued under the deferred compensation plans 108 $ 62.48 September 26, 2020 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 28 $ 44.14 Shares issued under the employee stock gift program 2 45.93 Shares issued under the director retainer stock program 46 24.80 Shares issued under the bonus plan 271 47.51 Shares issued under the executive stock match grants plan 79 47.60 Forfeitures (7) Total shares issued under stock grant programs 391 $ 44.92 Shares issued under the deferred compensation plans 115 $ 53.85 |
FAIR VALUE - Asset Measured at
FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 25, 2021 | Sep. 26, 2020 |
Money market funds | Cash and Cash Equivalents | ||
Fair Value | ||
Investments at fair value | $ 100 | |
Money market funds | Restricted Investments | ||
Fair Value | ||
Investments at fair value | 2,600 | |
Fixed Income | Restricted Investments | ||
Fair Value | ||
Investments at fair value | 18,300 | |
Mutual funds, equity and alternative investments | Investments | ||
Fair Value | ||
Investments at fair value | 33,600 | |
Money market and mutual funds | Other Assets | ||
Fair Value | ||
Investments at fair value | 700 | |
Ardellis Insurance Ltd. | ||
Fair Value | ||
Total Fair Value | 52,017 | $ 37,300 |
Estimate of Fair Value Measurement | Recurring | ||
Fair Value | ||
Investments at fair value | 55,331 | 41,387 |
Assets at fair value | 55,331 | 41,387 |
Estimate of Fair Value Measurement | Recurring | Money market funds | ||
Fair Value | ||
Investments at fair value | 2,650 | 3,197 |
Estimate of Fair Value Measurement | Recurring | Fixed Income | ||
Fair Value | ||
Investments at fair value | 17,983 | 16,770 |
Estimate of Fair Value Measurement | Recurring | Treasury securities | ||
Fair Value | ||
Investments at fair value | 310 | |
Estimate of Fair Value Measurement | Recurring | Equity | ||
Fair Value | ||
Investments at fair value | 18,543 | 10,524 |
Estimate of Fair Value Measurement | Recurring | Alternative Investments | ||
Fair Value | ||
Investments at fair value | 3,536 | 1,926 |
Estimate of Fair Value Measurement | Recurring | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 12,309 | 8,970 |
Estimate of Fair Value Measurement | Recurring | Domestic stock | ||
Fair Value | ||
Investments at fair value | 9,968 | 6,826 |
Estimate of Fair Value Measurement | Recurring | International stock funds | ||
Fair Value | ||
Investments at fair value | 1,675 | 1,243 |
Estimate of Fair Value Measurement | Recurring | Target funds | ||
Fair Value | ||
Investments at fair value | 23 | 260 |
Estimate of Fair Value Measurement | Recurring | Bond funds | ||
Fair Value | ||
Investments at fair value | 146 | 208 |
Estimate of Fair Value Measurement | Recurring | Alternative funds | ||
Fair Value | ||
Investments at fair value | 497 | 433 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value | ||
Investments at fair value | 32,143 | 19,806 |
Assets at fair value | 32,143 | 19,806 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value | ||
Investments at fair value | 19 | 64 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 962 | 248 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Treasury securities | ||
Fair Value | ||
Investments at fair value | 310 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity | ||
Fair Value | ||
Investments at fair value | 18,543 | 10,524 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 12,309 | 8,970 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock | ||
Fair Value | ||
Investments at fair value | 9,968 | 6,826 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds | ||
Fair Value | ||
Investments at fair value | 1,675 | 1,243 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds | ||
Fair Value | ||
Investments at fair value | 23 | 260 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds | ||
Fair Value | ||
Investments at fair value | 146 | 208 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Alternative funds | ||
Fair Value | ||
Investments at fair value | 497 | 433 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | ||
Fair Value | ||
Investments at fair value | 19,652 | 19,655 |
Assets at fair value | 19,652 | 19,655 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value | ||
Investments at fair value | 2,631 | 3,133 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 17,021 | 16,522 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | ||
Fair Value | ||
Investments at fair value | 3,536 | 1,926 |
Assets at fair value | 3,536 | 1,926 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Alternative Investments | ||
Fair Value | ||
Investments at fair value | $ 3,536 | $ 1,926 |
FAIR VALUE - Available for Sale
FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands | Sep. 25, 2021 | Sep. 26, 2020 |
Available-for-sale securities | ||
Total Securities Cost | $ 44,575 | $ 33,980 |
Unrealized Gain (Loss) | 7,442 | 3,320 |
Total Fair Value | 52,017 | 37,300 |
Fixed Income | ||
Available-for-sale securities | ||
Debt Securities Cost | 17,293 | 15,750 |
Debt Securities Unrealized Gain/(Loss) | 690 | 1,020 |
Debt Securities Fair Value | 17,983 | 16,770 |
Treasury securities | ||
Available-for-sale securities | ||
Debt Securities Cost | 310 | |
Debt Securities Fair Value | 310 | |
Equity | ||
Available-for-sale securities | ||
Equity Securities Cost | 14,392 | 9,121 |
Equity Securities Unrealized Gain/(Loss) | 4,151 | 1,403 |
Equity Securities Fair Value | 18,543 | 10,524 |
Mutual Fund | ||
Available-for-sale securities | ||
Debt Securities Cost | 9,210 | 7,228 |
Debt Securities Unrealized Gain/(Loss) | 2,435 | 852 |
Debt Securities Fair Value | 11,645 | 8,080 |
Alternative Investments | ||
Available-for-sale securities | ||
Debt Securities Cost | 3,370 | 1,881 |
Debt Securities Unrealized Gain/(Loss) | 166 | 45 |
Debt Securities Fair Value | $ 3,536 | $ 1,926 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021USD ($)item | Sep. 26, 2020USD ($) | Sep. 25, 2021USD ($)item | Sep. 26, 2020USD ($) | |
Revenue Recognition. | ||||
Number of markets in which the entity operates (in markets) | item | 3 | 3 | ||
NET SALES | $ 2,093,784 | $ 1,486,227 | $ 6,619,329 | $ 3,760,290 |
Change % | 40.90% | 76.00% | ||
FOB Shipping Point Revenue | ||||
Revenue Recognition. | ||||
NET SALES | $ 2,063,647 | 1,454,220 | $ 6,530,204 | 3,663,140 |
Change % | 41.90% | 78.30% | ||
Construction Contract Revenue | ||||
Revenue Recognition. | ||||
NET SALES | $ 30,137 | $ 32,007 | $ 89,125 | $ 97,150 |
Change % | (5.80%) | (8.30%) | ||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-26 | Construction Contract Revenue | ||||
Revenue Recognition. | ||||
Number of months to complete contract projects | 6 months | 6 months | ||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-26 | Construction Contract Revenue | ||||
Revenue Recognition. | ||||
Number of months to complete contract projects | 18 months | 18 months |
REVENUE RECOGNITION - Percentag
REVENUE RECOGNITION - Percentage of completion (Details) - USD ($) $ in Thousands | Sep. 25, 2021 | Dec. 26, 2020 | Sep. 26, 2020 |
REVENUE RECOGNITION | |||
Cost and Earnings in Excess of Billings | $ 3,776 | $ 4,169 | $ 4,130 |
Billings in Excess of Cost and Earnings | $ 10,373 | $ 11,530 | $ 11,264 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Numerator: | ||||
Net earnings attributable to controlling interest | $ 121,041 | $ 77,204 | $ 397,734 | $ 183,826 |
Adjustment for earnings allocated to non-vested restricted common stock | (3,952) | (2,195) | (12,800) | (5,110) |
Net earnings for calculating EPS | $ 117,089 | $ 75,009 | $ 384,934 | $ 178,716 |
Denominator: | ||||
Weighted average shares outstanding (in shares) | 62,266 | 61,548 | 62,162 | 61,642 |
Adjustment for non-vested restricted common stock (in shares) | (2,033) | (1,750) | (2,001) | (1,713) |
Shares for calculating basic EPS (in shares) | 60,233 | 59,798 | 60,161 | 59,929 |
Effect of dilutive restricted common stock (in shares) | 168 | 20 | 137 | 19 |
Shares for calculating diluted EPS (in shares) | 60,401 | 59,818 | 60,298 | 59,948 |
Net earnings per share | ||||
Basic (USD per share) | $ 1.94 | $ 1.25 | $ 6.40 | $ 2.98 |
Diluted (USD per share) | $ 1.94 | $ 1.25 | $ 6.38 | $ 2.98 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) $ in Millions | 9 Months Ended |
Sep. 25, 2021USD ($) | |
Long-term commitment | |
Outstanding purchase commitments on capital projects | $ 44.1 |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | 52.6 |
Open Projects | |
Surety Bonds and Letters of Credit | |
Payment and performance bonds outstanding | 39.6 |
Completed Projects | |
Surety Bonds and Letters of Credit | |
Payment and performance bonds outstanding | 2.1 |
Insurance Contracts | |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | 45.5 |
Revenue Bonds | |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | $ 7.1 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) $ in Thousands, $ in Millions | Apr. 29, 2021USD ($) | Apr. 19, 2021USD ($) | Apr. 12, 2021USD ($)employeestate | Mar. 01, 2021USD ($) | Mar. 01, 2021AUD ($) | Dec. 28, 2020USD ($)facility | Nov. 10, 2020USD ($) | Oct. 01, 2020USD ($) | Sep. 30, 2020USD ($)location | Sep. 25, 2021USD ($) |
Business Acquisition | ||||||||||
Aggregate acquisitions' net sales | $ 903,000 | |||||||||
Aggregate acquisitions' operating profit | $ 26,000 | |||||||||
Endurable Building Products | Construction | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 10,108 | |||||||||
Percentage of assets purchased (as a percent) | 100.00% | |||||||||
Intangible Assets | $ 7,099 | |||||||||
Net Tangible Assets | 3,009 | |||||||||
Acquired entity, prior year sales | $ 15,000 | |||||||||
Walnut Hollow Farm, Inc. | Retail | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 8,549 | |||||||||
Percentage of assets purchased (as a percent) | 100.00% | |||||||||
Intangible Assets | $ 1,526 | |||||||||
Net Tangible Assets | 7,023 | |||||||||
Acquired entity, prior year sales | $ 11,600 | |||||||||
Spartanburg Forest Products, Inc. | Retail | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 153,462 | |||||||||
Percentage of assets purchased (as a percent) | 100.00% | |||||||||
Net Tangible Assets | $ 153,462 | |||||||||
Acquired entity, prior year sales | $ 543,000 | |||||||||
Number of Employees | employee | 150 | |||||||||
Number of states in which the entity operates | state | 5 | |||||||||
J. C. Gilmore Pty Ltd | All Other | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 4,724 | |||||||||
Percentage of assets purchased (as a percent) | 100.00% | |||||||||
Intangible Assets | $ 4,264 | |||||||||
Net Tangible Assets | 460 | |||||||||
Acquired entity, prior year sales | $ 10,000 | $ 15 | ||||||||
PalletOne | Industrial | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 259,011 | |||||||||
Percentage of stock purchase (as a percent) | 100.00% | |||||||||
Intangible Assets | $ 66,899 | |||||||||
Net Tangible Assets | 192,112 | |||||||||
Acquired entity, prior year sales | 525,000 | |||||||||
Acquired entity, trailing 12-months sales | $ 698,000 | |||||||||
Number of pallet manufacturing facilities | facility | 17 | |||||||||
Number of pressure-treating facilities | facility | 5 | |||||||||
Atlantic Prefab, Inc., Exterior Designs, LLC and Patriot Building Systems, LLC | Construction | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 21,268 | |||||||||
Percentage of assets purchased (as a percent) | 100.00% | |||||||||
Intangible Assets | $ 11,923 | |||||||||
Net Tangible Assets | 9,345 | |||||||||
Acquired entity, prior year sales | $ 28,000 | |||||||||
FRCT | Retail | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 5,936 | |||||||||
Percentage of assets purchased (as a percent) | 100.00% | |||||||||
Intangible Assets | $ 5,222 | |||||||||
Net Tangible Assets | 714 | |||||||||
Acquired entity, prior year sales | $ 6,400 | |||||||||
Enwrap | All Other | ||||||||||
Business Acquisition | ||||||||||
Purchase Price | $ 3,475 | |||||||||
Percentage of stock purchase (as a percent) | 50.00% | |||||||||
Number of plant locations | location | 8 | |||||||||
Intangible Assets | $ 7,267 | |||||||||
Net Tangible Assets | (1,369) | |||||||||
Acquired entity, prior year sales | $ 14,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Segment Reporting | ||||
Net sales | $ 2,093,784 | $ 1,486,227 | $ 6,619,329 | $ 3,760,290 |
Segment operating profit | 168,125 | 106,601 | 542,547 | 257,591 |
Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | (223,738) | (151,127) | (637,307) | (388,759) |
Corporate | ||||
Segment Reporting | ||||
Net sales | 2,788 | (222) | 6,758 | (561) |
Segment operating profit | 19,382 | (1,579) | 33,865 | 10,555 |
Retail | ||||
Segment Reporting | ||||
Net sales | 696,201 | 700,522 | 2,714,440 | 1,661,873 |
Segment operating profit | (26,153) | 62,181 | 89,443 | 122,082 |
Retail | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 50,546 | 45,416 | 163,279 | 109,378 |
Industrial | ||||
Segment Reporting | ||||
Net sales | 573,234 | 282,124 | 1,633,289 | 763,046 |
Segment operating profit | 70,408 | 22,037 | 190,344 | 53,837 |
Industrial | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 23,148 | 11,773 | 66,039 | 32,788 |
Construction | ||||
Segment Reporting | ||||
Net sales | 722,872 | 447,103 | 2,021,106 | 1,187,429 |
Segment operating profit | 84,205 | 16,513 | 184,330 | 50,544 |
Construction | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 27,574 | 17,909 | 62,069 | 49,685 |
All Other | ||||
Segment Reporting | ||||
Net sales | 98,689 | 56,700 | 243,736 | 148,503 |
Segment operating profit | 20,283 | 7,449 | 44,565 | 20,573 |
All Other | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | $ 122,470 | $ 76,029 | $ 345,920 | $ 196,908 |
SEGMENT REPORTING - Goodwill (D
SEGMENT REPORTING - Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 25, 2021USD ($) | |
Goodwill | |
Goodwill, Beginning Balance | $ 252,193 |
Acquisitions | 68,888 |
Purchase Accounting Adjustments | (28,421) |
Foreign Exchange, Net | (342) |
Goodwill, Ending Balance | 292,318 |
Retail | |
Goodwill | |
Goodwill, Beginning Balance | 61,943 |
Acquisitions | 18,441 |
Purchase Accounting Adjustments | (1,682) |
Goodwill, Ending Balance | 78,702 |
Construction | |
Goodwill | |
Goodwill, Beginning Balance | 90,729 |
Acquisitions | 2,427 |
Purchase Accounting Adjustments | (6,227) |
Foreign Exchange, Net | 101 |
Goodwill, Ending Balance | 87,030 |
Industrial | |
Goodwill | |
Goodwill, Beginning Balance | 87,827 |
Acquisitions | 43,844 |
Purchase Accounting Adjustments | (17,937) |
Goodwill, Ending Balance | 113,734 |
All Other | |
Goodwill | |
Goodwill, Beginning Balance | 11,694 |
Acquisitions | 4,176 |
Purchase Accounting Adjustments | (2,575) |
Foreign Exchange, Net | (443) |
Goodwill, Ending Balance | $ 12,852 |
SEGMENT REPORTING - Assets (Det
SEGMENT REPORTING - Assets (Details) - USD ($) $ in Thousands | Sep. 25, 2021 | Dec. 26, 2020 | Sep. 26, 2020 |
Segment Reporting | |||
Segment assets | $ 3,014,247 | $ 2,404,891 | $ 2,350,620 |
Change in assets (as a percent) | 25.30% | ||
Corporate | |||
Segment Reporting | |||
Segment assets | $ 434,251 | 770,112 | |
Change in assets (as a percent) | (43.60%) | ||
Retail | |||
Segment Reporting | |||
Segment assets | $ 829,745 | 510,464 | |
Change in assets (as a percent) | 62.50% | ||
Construction | |||
Segment Reporting | |||
Segment assets | $ 725,419 | 510,972 | |
Change in assets (as a percent) | 42.00% | ||
Industrial | |||
Segment Reporting | |||
Segment assets | $ 740,206 | 416,487 | |
Change in assets (as a percent) | 77.70% | ||
All Other | |||
Segment Reporting | |||
Segment assets | $ 284,626 | $ 196,856 | |
Change in assets (as a percent) | 44.60% |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
INCOME TAXES | ||||
Effective income tax rate | 23.00% | 25.40% | 24.00% | 25.20% |
COMMON STOCK - Common Stock Iss
COMMON STOCK - Common Stock Issuances (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Common Stock | ||||||||
Repurchase of common stock | 756,397 | 756,000 | ||||||
Common stock issued, net of forfeitures | 17,165 | 5,718 | 536,970 | (1,382) | 42,880 | 350,124 | ||
Average Share Price | ||||||||
Repurchase of common stock (dollars per share) | $ 38.62 | |||||||
Stock Purchase Plan | ||||||||
Common Stock | ||||||||
Common stock issued | 25,000 | 28,000 | ||||||
Average Share Price | ||||||||
Common stock issued (dollars per share) | $ 71.18 | $ 44.14 | $ 71.18 | $ 44.14 | ||||
Stock Gift Program | ||||||||
Common Stock | ||||||||
Common stock issued | 2,000 | 2,000 | ||||||
Average Share Price | ||||||||
Common stock issued (dollars per share) | 76.80 | 45.93 | $ 76.80 | $ 45.93 | ||||
Stock Retainer Plan | ||||||||
Common Stock | ||||||||
Common stock issued | 4,000 | 46,000 | ||||||
Average Share Price | ||||||||
Common stock issued (dollars per share) | 69.80 | 24.80 | $ 69.80 | $ 24.80 | ||||
LTSIP | ||||||||
Common Stock | ||||||||
Common stock issued | 487,000 | 271,000 | ||||||
Average Share Price | ||||||||
Common stock issued (dollars per share) | 57.06 | 47.51 | $ 57.06 | $ 47.51 | ||||
Executive Stock Match Grants | ||||||||
Common Stock | ||||||||
Common stock issued | 77,000 | 79,000 | ||||||
Average Share Price | ||||||||
Common stock issued (dollars per share) | 60.24 | 47.60 | $ 60.24 | $ 47.60 | ||||
Deferred Compensation Plans | ||||||||
Common Stock | ||||||||
Common stock issued | 108,000 | 115,000 | ||||||
Average Share Price | ||||||||
Common stock issued (dollars per share) | 62.48 | 53.85 | $ 62.48 | $ 53.85 | ||||
Stock grant programs | ||||||||
Common Stock | ||||||||
Common stock issued | 549,000 | 391,000 | ||||||
Forfeitures | (21,000) | (7,000) | ||||||
Average Share Price | ||||||||
Common stock issued (dollars per share) | $ 57.64 | $ 44.92 | $ 57.64 | $ 44.92 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | 9 Months Ended | |
Sep. 25, 2021 | Sep. 26, 2020 | |
INVENTORIES | ||
Adjustments to inventory | $ 1,300,000 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Millions | Oct. 29, 2021USD ($) | Sep. 27, 2021USD ($)warehouse |
Shelter Products | ||
Subsequent Event | ||
Purchase Price | $ 6.5 | |
Number of warehouses | warehouse | 9 | |
Boxpack Packaging | ||
Subsequent Event | ||
Purchase Price | $ 5.2 |