Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 24, 2022 shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Sep. 24, 2022 |
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) | 61,637,514 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0000912767 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 25, 2021 | Sep. 25, 2021 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 449,135 | $ 286,662 | $ 138,637 |
Restricted cash | 729 | 4,561 | 17,592 |
Investments | 33,113 | 36,495 | 33,723 |
Accounts receivable, net | 877,776 | 737,805 | 783,959 |
Inventories: | |||
Raw materials | 425,765 | 416,043 | 368,185 |
Finished goods | 581,118 | 547,277 | 532,480 |
Total inventories | 1,006,883 | 963,320 | 900,665 |
Refundable income taxes | 28,771 | 4,806 | 14,134 |
Other current assets | 39,956 | 39,827 | 34,040 |
TOTAL CURRENT ASSETS | 2,436,363 | 2,073,476 | 1,922,750 |
DEFERRED INCOME TAXES | 3,139 | 3,462 | 2,330 |
RESTRICTED INVESTMENTS | 19,552 | 19,310 | 18,925 |
RIGHT OF USE ASSETS | 101,001 | 96,703 | 94,481 |
OTHER ASSETS | 94,090 | 31,876 | 29,168 |
GOODWILL | 319,183 | 315,038 | 292,318 |
INDEFINITE-LIVED INTANGIBLE ASSETS | 7,332 | 7,369 | 7,380 |
OTHER INTANGIBLE ASSETS, NET | 113,880 | 109,017 | 93,984 |
PROPERTY, PLANT AND EQUIPMENT: | |||
Property, plant and equipment | 1,323,896 | 1,212,113 | 1,156,070 |
Less accumulated depreciation and amortization | (679,889) | (623,093) | (603,159) |
PROPERTY, PLANT AND EQUIPMENT, NET | 644,007 | 589,020 | 552,911 |
TOTAL ASSETS | 3,738,547 | 3,245,271 | 3,014,247 |
CURRENT LIABILITIES: | |||
Cash overdraft | 4,174 | 17,030 | 10,812 |
Accounts payable | 323,404 | 319,125 | 292,933 |
Accrued liabilities: | |||
Compensation and benefits | 298,384 | 289,196 | 249,242 |
Other | 111,596 | 84,853 | 90,348 |
Current portion of lease liability | 23,767 | 23,155 | 22,242 |
Current portion of long-term debt | 41,536 | 42,683 | 93 |
TOTAL CURRENT LIABILITIES | 802,861 | 776,042 | 665,670 |
LONG-TERM DEBT | 275,417 | 277,567 | 310,119 |
LEASE LIABILITY | 80,903 | 76,632 | 75,548 |
DEFERRED INCOME TAXES | 62,436 | 60,964 | 39,198 |
OTHER LIABILITIES | 40,628 | 37,497 | 46,238 |
TOTAL LIABILITIES | 1,262,245 | 1,228,702 | 1,136,773 |
TEMPORARY EQUITY | |||
Redeemable noncontrolling interest | 7,563 | ||
Controlling interest shareholders' equity: | |||
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none | |||
Common stock, $1 par value; shares authorized 160,000,000; issued and outstanding, 61,637,514, 61,901,851 and 61,887,770 | 61,638 | 61,902 | 61,888 |
Additional paid-in capital | 284,025 | 243,995 | 239,563 |
Retained earnings | 2,102,764 | 1,678,121 | 1,552,593 |
Accumulated other comprehensive loss | (11,348) | (5,405) | (3,278) |
Total controlling interest shareholders' equity | 2,437,079 | 1,978,613 | 1,850,766 |
Noncontrolling interest | 31,660 | 37,956 | 26,708 |
TOTAL SHAREHOLDERS' EQUITY | 2,468,739 | 2,016,569 | 1,877,474 |
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | $ 3,738,547 | $ 3,245,271 | $ 3,014,247 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 24, 2022 | Dec. 25, 2021 | Sep. 25, 2021 |
SHAREHOLDERS' EQUITY: | |||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 61,637,514 | 61,901,851 | 61,887,770 |
Common stock, shares outstanding (in shares) | 61,637,514 | 61,901,851 | 61,887,770 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME | ||||
NET SALES | $ 2,322,855 | $ 2,093,784 | $ 7,713,042 | $ 6,619,329 |
COST OF GOODS SOLD | 1,872,679 | 1,766,229 | 6,281,051 | 5,583,926 |
GROSS PROFIT | 450,176 | 327,555 | 1,431,991 | 1,035,403 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 214,327 | 169,467 | 649,015 | 504,104 |
OTHER (GAINS) LOSS, NET | (1,195) | (10,037) | 1,341 | (11,248) |
EARNINGS FROM OPERATIONS | 237,044 | 168,125 | 781,635 | 542,547 |
INTEREST EXPENSE | 3,516 | 3,433 | 10,213 | 10,483 |
INTEREST AND INVESTMENT LOSS (INCOME) | 1,658 | 371 | 6,905 | (3,614) |
EQUITY IN EARNINGS OF INVESTEE | 1,208 | 946 | 2,740 | 2,411 |
NON-OPERATING (INCOME)/EXPENSE | 6,382 | 4,750 | 19,858 | 9,280 |
EARNINGS BEFORE INCOME TAXES | 230,662 | 163,375 | 761,777 | 533,267 |
INCOME TAXES | 58,561 | 37,628 | 188,692 | 127,909 |
NET EARNINGS | 172,101 | 125,747 | 573,085 | 405,358 |
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,860) | (4,706) | (13,023) | (7,624) |
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 167,241 | $ 121,041 | $ 560,062 | $ 397,734 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 2.68 | $ 1.94 | $ 8.93 | $ 6.40 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 2.66 | $ 1.94 | $ 8.89 | $ 6.38 |
OTHER COMPREHENSIVE INCOME: | ||||
NET EARNINGS | $ 172,101 | $ 125,747 | $ 573,085 | $ 405,358 |
OTHER COMPREHENSIVE LOSS | (4,477) | (2,024) | (5,676) | (1,500) |
COMPREHENSIVE INCOME | 167,624 | 123,723 | 567,409 | 403,858 |
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,273) | (4,496) | (13,290) | (7,608) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 163,351 | $ 119,227 | $ 554,119 | $ 396,250 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Earnings | Noncontrolling Interest | Total |
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 purchase plan | 6 | 357 | 363 | |||
Net issuance (forfeitures) 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 |
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 purchase plan | 9 | 564 | 573 | |||
Net issuance (forfeitures) 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 | ||||
Redeemable noncontrolling interest | (822) | (822) | ||||
Cash dividends | (9,281) | (9,281) | ||||
Issuance of shares under employee stock purchase plan | 10 | 573 | 583 | |||
Net issuance (forfeitures) 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 |
Beginning balance at Dec. 25, 2021 | 61,902 | 243,995 | 1,678,121 | (5,405) | 37,956 | 2,016,569 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 189,703 | 3,428 | 193,131 | |||
Foreign currency translation adjustment | 2,930 | 949 | 3,879 | |||
Unrealized gain (loss) on debt securities | (695) | (695) | ||||
Distributions to noncontrolling interest | (2,053) | (2,053) | ||||
Cash dividends | (12,541) | (12,541) | ||||
Issuance of shares under employee stock purchase plan | 10 | 653 | 663 | |||
Net issuance (forfeitures) of shares under stock grant programs | 787 | 8,959 | 9,746 | |||
Issuance of shares under deferred compensation plans | 80 | (80) | ||||
Repurchase of shares | (45) | (3,499) | (3,544) | |||
Expense associated with share-based compensation arrangements | 6,883 | 6,883 | ||||
Accrued expense under deferred compensation plans | 6,134 | 6,134 | ||||
Ending balance at Mar. 26, 2022 | 62,734 | 266,544 | 1,851,784 | (3,170) | 40,280 | 2,218,172 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 203,118 | 4,735 | 207,853 | |||
Foreign currency translation adjustment | (3,660) | (95) | (3,755) | |||
Unrealized gain (loss) on debt securities | (628) | (628) | ||||
Cash dividends | (15,474) | (15,474) | ||||
Issuance of shares under employee stock purchase plan | 14 | 781 | 795 | |||
Net issuance (forfeitures) of shares under stock grant programs | 28 | 1,092 | 1,120 | |||
Issuance of shares under deferred compensation plans | 12 | (12) | ||||
Repurchase of shares | (1,165) | (88,506) | (89,671) | |||
Expense associated with share-based compensation arrangements | 5,556 | 5,556 | ||||
Accrued expense under deferred compensation plans | 1,100 | 1,100 | ||||
Ending balance at Jun. 25, 2022 | 61,623 | 275,061 | 1,950,922 | (7,458) | 44,920 | 2,325,068 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 167,241 | 4,380 | 171,621 | |||
Foreign currency translation adjustment | (3,330) | (29) | (3,359) | |||
Unrealized gain (loss) on debt securities | (560) | (560) | ||||
Distributions to noncontrolling interest | (9,970) | (9,970) | ||||
Redeemable noncontrolling interest | (7,641) | (7,641) | ||||
Cash dividends | (15,405) | (15,405) | ||||
Issuance of shares under employee stock purchase plan | 11 | 641 | 652 | |||
Net issuance (forfeitures) of shares under stock grant programs | (6) | (159) | 6 | (159) | ||
Issuance of shares under deferred compensation plans | 10 | (10) | ||||
Expense associated with share-based compensation arrangements | 7,407 | 7,407 | ||||
Accrued expense under deferred compensation plans | 1,085 | 1,085 | ||||
Ending balance at Sep. 24, 2022 | $ 61,638 | $ 284,025 | $ 2,102,764 | $ (11,348) | $ 31,660 | $ 2,468,739 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Temporary equity) - 3 months ended Sep. 24, 2022 $ in Thousands | USD ($) |
Beginning balance at Jun. 25, 2022 | |
Increase (Decrease) in Temporary Equity | |
Net earnings | 480 |
Foreign currency translation adjustment | (558) |
Redeemable noncontrolling interest | 7,641 |
Ending balance at Sep. 24, 2022 | $ 7,563 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Cash dividends per share (USD per share) | $ 0.25 | $ 0.25 | $ 0.20 | $ 0.15 | $ 0.15 | $ 0.15 |
Net issuance of shares under employee stock plans (in shares) | 10,678 | 13,875 | 9,734 | 10,008 | 9,282 | 5,816 |
Net issuance (forfeiture) of shares under stock grant programs (in shares) | 6,396 | 28,154 | 787,045 | 17,165 | 5,718 | 536,970 |
Issuance of shares under deferred compensation plans (in shares) | 10,705 | 11,605 | 79,973 | 9,864 | 8,913 | 89,690 |
Repurchase of shares (in shares) | 1,165,268 | 44,442 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 24, 2022 | Sep. 25, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 573,085 | $ 405,358 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Depreciation | 68,881 | 61,741 |
Amortization of intangibles | 13,448 | 9,369 |
Expense associated with share-based and grant compensation arrangements | 19,979 | 8,444 |
Deferred income taxes (credit) | (269) | (594) |
Unrealized loss (gain) on investments and other | 8,453 | (1,756) |
Equity in loss of investee | 2,740 | 2,411 |
Net loss (gain) on sale and disposition of assets | 352 | (10,482) |
Changes in: | ||
Accounts receivable | (137,607) | (141,088) |
Inventories | (36,259) | (204,144) |
Accounts payable and cash overdraft | (11,247) | 53,437 |
Accrued liabilities and other | 31,490 | 99,067 |
NET CASH FROM OPERATING ACTIVITIES | 533,046 | 281,763 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (113,725) | (110,092) |
Proceeds from sale of property, plant and equipment | 2,303 | 26,597 |
Acquisitions and purchases of non-controlling interest, net of cash received | (105,212) | (433,275) |
Purchases of investments | (16,925) | (17,866) |
Proceeds from sale of investments | 10,036 | 9,857 |
Other | 911 | (3,478) |
NET CASH USED IN INVESTING ACTIVITIES | (222,612) | (528,257) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Borrowings under revolving credit facilities | 570,700 | 886,966 |
Repayments under revolving credit facilities | (571,075) | (888,335) |
Repayments of debt | (1,957) | |
Contingent consideration payments and other | (2,564) | (2,664) |
Proceeds from issuance of common stock | 2,110 | 1,519 |
Dividends paid to shareholders | (43,420) | (27,831) |
Distributions to noncontrolling interest | (12,023) | (2,914) |
Repurchase of common stock | (93,215) | |
Other | (210) | (334) |
NET CASH USED IN FINANCING ACTIVITIES | (151,654) | (33,593) |
Effect of exchange rate changes on cash | (139) | (292) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 158,641 | (280,379) |
Cash, cash equivalents, and restricted cash, beginning of period | 291,223 | 436,608 |
Cash, cash equivalents, and restricted cash, end of period | $ 449,864 | $ 156,229 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL (Parenthetical) - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 25, 2021 | Sep. 25, 2021 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Cash and cash equivalents, beginning of period | $ 286,662 | $ 138,637 | $ 436,507 |
Restricted cash, beginning of period | 4,561 | 17,592 | 101 |
Cash, cash equivalents, and restricted cash, beginning of period | 291,223 | 156,229 | 436,608 |
Cash and cash equivalents, end of period | 449,135 | 286,662 | 138,637 |
Restricted cash, end of period | 729 | 4,561 | 17,592 |
Cash, cash equivalents, and restricted cash, end of period | $ 449,864 | $ 291,223 | $ 156,229 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL AND NON-CASH FINANCING ACTIVITIES (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 24, 2022 | Sep. 25, 2021 | |
SUPPLEMENTAL INFORMATION: | ||
Interest paid | $ 9,997 | $ 10,360 |
Income taxes paid | 213,117 | 136,893 |
NON-CASH INVESTING ACTIVITIES | ||
Capital expenditures included in accounts payable | 3,211 | 2,366 |
NON-CASH FINANCING ACTIVITIES: | ||
Common stock issued under deferred compensation plans | $ 8,424 | $ 6,778 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 24, 2022 | |
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. 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 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 September 25, 2021 balances in the accompanying unaudited condensed consolidated balance sheets. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 24, 2022 | |
FAIR VALUE | |
FAIR VALUE | B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures September 24, 2022 September 25, 2021 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 $ 4,825 $ — $ 4,844 $ 19 $ 2,631 $ — $ 2,650 Fixed income funds 2,584 16,321 — 18,905 962 17,021 — 17,983 Treasury securities 343 — — 343 310 — — 310 Equity securities 15,674 — — 15,674 18,543 — — 18,543 Alternative investments — — 4,136 4,136 — — 3,536 3,536 Mutual funds: Domestic stock funds 11,859 — — 11,859 9,968 — — 9,968 International stock funds 1,279 — — 1,279 1,675 — — 1,675 Target funds 8 — — 8 23 — — 23 Bond funds 132 — — 132 146 — — 146 Alternative funds 527 — — 527 497 — — 497 Total mutual funds 13,805 — — 13,805 12,309 — — 12,309 Total $ 32,425 $ 21,146 $ 4,136 $ 57,707 $ 32,143 $ 19,652 $ 3,536 $ 55,331 Assets at fair value $ 32,425 $ 21,146 $ 4,136 $ 57,707 $ 32,143 $ 19,652 $ 3,536 $ 55,331 From the assets measured at fair value as of September 24, 2022, listed in the table above, $33.2 million of mutual funds, equity securities, and alternative investments are held in Investments, $4.7 million of money market funds are held in Cash and Cash Equivalents, $0.5 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $19.2 million of fixed income funds and $0.1 million of money market 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 $52.4 million as of September 24, 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. Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): September 24, 2022 September 25, 2021 Unrealized Unrealized Cost Gain (Loss) Fair Value Cost Gain Fair Value Fixed Income $ 21,199 $ (2,294) $ 18,905 $ 17,293 $ 690 $ 17,983 Treasury Securities 343 — 343 310 — 310 Equity 15,392 282 15,674 14,392 4,151 18,543 Mutual Funds 13,430 (128) 13,302 9,210 2,435 11,645 Alternative Investments 3,079 1,057 4,136 3,370 166 3,536 Total $ 53,443 $ (1,083) $ 52,360 $ 44,575 $ 7,442 $ 52,017 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 loss of the portfolio was $1.1 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of September 24, 2022 and September 25, 2021. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 24, 2022 | |
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 third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales. We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred relative to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced relative to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 The following table presents our net sales disaggregated by revenue source (in thousands): Three Months Ended Nine Months Ended September 24, September 25, September 24, September 25, 2022 2021 % Change 2022 2021 % Change Point in Time Revenue $ 2,270,438 $ 2,063,647 10.0% $ 7,571,128 $ 6,530,204 15.9% Over Time Revenue 52,417 30,137 73.9% 141,914 89,125 59.2% Total Net Sales 2,322,855 2,093,784 10.9% $ 7,713,042 $ 6,619,329 16.5% 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 24, December 25, September 25, 2022 2021 2021 Cost and Earnings in Excess of Billings $ 8,477 $ 5,602 $ 3,776 Billings in Excess of Cost and Earnings 10,743 10,744 10,373 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 24, 2022 | |
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 24, September 25, September 24, September 25, 2022 2021 2022 2021 Numerator: Net earnings attributable to controlling interest $ 167,241 $ 121,041 $ 560,062 $ 397,734 Adjustment for earnings allocated to non-vested restricted common stock (6,857) (3,952) (21,970) (12,800) Net earnings for calculating EPS $ 160,384 $ 117,089 $ 538,092 $ 384,934 Denominator: Weighted average shares outstanding 62,445 62,266 62,743 62,162 Adjustment for non-vested restricted common stock (2,560) (2,033) (2,461) (2,001) Shares for calculating basic EPS 59,885 60,233 60,282 60,161 Effect of dilutive restricted common stock 307 168 255 137 Shares for calculating diluted EPS 60,192 60,401 60,537 60,298 Net earnings per share: Basic $ 2.68 $ 1.94 $ 8.93 $ 6.40 Diluted $ 2.66 $ 1.94 $ 8.89 $ 6.38 |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 9 Months Ended |
Sep. 24, 2022 | |
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 24, 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 September 24, 2022, we had outstanding purchase commitments on commenced capital projects of approximately $65.4 million. We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We also distribute products manufactured by other companies. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements. As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances, we are required to post payment and performance bonds to ensure the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims properly made against these bonds. As of September 24, 2022, we had approximately $22.7 million in outstanding payment and performance bonds for open projects. We had approximately $30.6 million in payment and performance bonds outstanding for completed projects which are still under warranty. On September 24, 2022, we had outstanding letters of credit totaling $59.9 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 24, 2022, we have irrevocable letters of credit outstanding totaling approximately $52.8 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 2022 which would require us to recognize a liability on our balance sheet. |
BUSINESS COMBINATIONS AND EQUIT
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | 9 Months Ended |
Sep. 24, 2022 | |
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | |
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | F. BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS We completed the following acquisitions in fiscal 2022 and since the end of September 2021, which were accounted for using the purchase or equity method. Dollars below are in thousands unless otherwise noted: Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment June 27, 2022 $65,858 cash paid for equity method investment $ 32,048 $ 33,810 Industrial Dempsey Wood Products, Inc. (Dempsey) Located in Orangeburg, South Carolina and founded in 1988, Dempsey is a sawmill which produces products such as kiln dried finished lumber, industrial lumber, green cut stock lumber, pine chips and shavings, landscaping mulch, and sawdust. The Company had sales of approximately $69 million in 2021. May 9, 2022 $15,398 $ 4,821 $ 10,577 Retail Cedar Poly, LLC Located in Tipton, Iowa, Cedar Poly is a full-service recycler of high-density and low-density polyethylene (HDPE and LDPE) flakes and pellets used in various products, including composite decking. The company also recycles corrugate and operates its own transportation fleet. Cedar Poly had 2021 sales of approximately $17.3 million and will operate in UFP’s Deckorators business unit. December 27, 2021 $24,057 $ 17,484 $ 6,573 Retail 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. December 20, 2021 $20,754 $ 11,417 $ 9,337 Industrial 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. November 22, 2021 $10,831 $ 9,562 $ 1,269 Other 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. Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment November 1, 2021 $5,984 $ 5,681 $ 303 Other 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 $6.2 million USD ($8.2 million AUD). September 27, 2021 $6,443 $ 4,039 $ 2,404 Construction 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. The intangible assets for the above investments have not been finalized and allocated to their respective identifiable asset and goodwill accounts. In aggregate, investments completed since the end of September 2021 and not consolidated with other operations contributed approximately $93.3 million in net sales and $6.1 million in operating profits during the first nine months of 2022. As a result of the investment in Dempsey on June 27, 2022, we own 50% of the issued equity of the Company, and the remaining 50% of the issued equity is owned by the previous owners (“Sellers”). The investment in Dempsey is an unconsolidated variable interest entity and we have accounted for it using the equity method of accounting because we do not have a controlling financial interest in the entity. Per the contracts, the Sellers have a put right to sell their equity interest to us for $50 million and we have a call right to purchase the Seller’s equity interest for $70 million, which are both first exercisable in June 2025 and expire in June 2030. As of September 24, 2022, the carrying value of our investment in Dempsey is $67.0 million and is recorded in Other Assets. Our maximum exposure to loss consists of our investment amount and any contingent loss that may occur in the future as a result of a change in the fair value of Dempsey relative to the strike price of the put option. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 24, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | G. SEGMENT REPORTING We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP 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. “Corporate” includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily consist of net sales to external customers initiated by UFP Purchasing and UFP Transportation and over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in the Corporate column. Inter-company lease and service charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Total assets in the Corporate column include unallocated cash and cash equivalents, certain prepaid assets, certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., UFP Transportation, Inc., UFP Purchasing, Inc., and UFP RMS, LLC. The tables below are presented in thousands: Three Months Ended September 24, 2022 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 845,304 $ 584,808 $ 777,126 $ 112,203 $ 3,414 $ 2,322,855 Intersegment net sales 87,362 19,778 31,352 102,927 (241,419) — Earnings from operations 28,932 77,298 110,384 13,705 6,725 237,044 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) — Earnings from operations (26,153) 70,408 84,205 20,283 19,382 168,125 Nine Months Ended September 24, 2022 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 2,959,976 $ 1,872,510 $ 2,538,973 $ 332,186 $ 9,397 $ 7,713,042 Intersegment net sales 220,922 63,438 88,570 338,592 (711,522) — Earnings from operations 124,856 253,899 322,034 51,268 29,578 781,635 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) — Earnings from operations 89,443 190,344 184,330 44,565 33,865 542,547 The following table presents goodwill by segment as of September 24, 2022, and December 25, 2021 (in thousands): Retail Industrial Construction All Other Corporate Total Balance as of December 25, 2021 $ 73,376 $ 128,541 $ 89,000 $ 24,121 $ — $ 315,038 2022 Acquisitions 11,958 — — — — 11,958 2022 Purchase Accounting Adjustments 293 (5,830) (1,074) 659 — (5,952) Foreign Exchange, Net — — (215) (1,646) — (1,861) Balance as of September 24, 2022 $ 85,627 $ 122,711 $ 87,711 $ 23,134 $ — $ 319,183 The following table presents total assets by segment as of September 24, 2022, and December 25, 2021 (in thousands). Total Assets by Segment September 24, December 25, Segment Classification 2022 2021 % Change Retail $ 975,733 $ 844,189 15.6 % Industrial 855,240 741,672 15.3 Construction 834,917 736,157 13.4 All Other 324,113 343,363 (5.6) Corporate 748,544 579,890 29.1 Total Assets $ 3,738,547 $ 3,245,271 15.2 % |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 24, 2022 | |
INCOME TAXES | |
INCOME TAXES | H. INCOME TAXES Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for foreign, state and local income taxes and permanent tax differences. Our effective tax rate was 25.4% in the third quarter of 2022 compared to 23.0% in the third quarter of 2021 and was 24.8% in the first nine months of 2022 compared to 24.0% for the same period in 2021. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 24, 2022 | |
COMMON STOCK | |
COMMON STOCK | I. COMMON STOCK Below is a summary of common stock issuances for the first nine months of 2022 and 2021 (in thousands, except average share price): September 24, 2022 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 34 $ 71.65 Shares issued under the employee stock gift program 2 78.60 Shares issued under the director retainer stock program 3 83.24 Shares issued under the bonus plan 755 82.73 Shares issued under the executive stock match plan 62 82.87 Forfeitures (13) Total shares issued under stock grant programs 809 $ 82.73 Shares issued under the deferred compensation plans 102 $ 82.36 During the first nine months of 2022, we repurchased approximately 1,210,000 shares of our common stock at an average share price of $77.06. 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 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 During the first nine months of 2021, we did not repurchase any of our shares of common stock. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 24, 2022 | |
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. We write down the value of inventory, the impact of which is reflected in cost of goods sold in the Condensed Consolidated Statement of Earnings and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. There was no lower of cost or net realizable value adjustment to inventory as of September 24, 2022 and the lower of cost or net realizable value adjustment to inventory as September 25, 2021 was $1.3 million. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 24, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | K. SUBSEQUENT EVENTS Subsequent to our reporting date, we repurchased approximately 32,000 shares for $2.2 million, at an average share price of $69.31. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 24, 2022 | |
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 third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales. We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred relative to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced relative to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price, and completion of the projects can range from 6 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
FAIR VALUE | |
Assets measured at fair value | Assets measured at fair value are as follows (in thousands): September 24, 2022 September 25, 2021 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 $ 4,825 $ — $ 4,844 $ 19 $ 2,631 $ — $ 2,650 Fixed income funds 2,584 16,321 — 18,905 962 17,021 — 17,983 Treasury securities 343 — — 343 310 — — 310 Equity securities 15,674 — — 15,674 18,543 — — 18,543 Alternative investments — — 4,136 4,136 — — 3,536 3,536 Mutual funds: Domestic stock funds 11,859 — — 11,859 9,968 — — 9,968 International stock funds 1,279 — — 1,279 1,675 — — 1,675 Target funds 8 — — 8 23 — — 23 Bond funds 132 — — 132 146 — — 146 Alternative funds 527 — — 527 497 — — 497 Total mutual funds 13,805 — — 13,805 12,309 — — 12,309 Total $ 32,425 $ 21,146 $ 4,136 $ 57,707 $ 32,143 $ 19,652 $ 3,536 $ 55,331 Assets at fair value $ 32,425 $ 21,146 $ 4,136 $ 57,707 $ 32,143 $ 19,652 $ 3,536 $ 55,331 |
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 24, 2022 September 25, 2021 Unrealized Unrealized Cost Gain (Loss) Fair Value Cost Gain Fair Value Fixed Income $ 21,199 $ (2,294) $ 18,905 $ 17,293 $ 690 $ 17,983 Treasury Securities 343 — 343 310 — 310 Equity 15,392 282 15,674 14,392 4,151 18,543 Mutual Funds 13,430 (128) 13,302 9,210 2,435 11,645 Alternative Investments 3,079 1,057 4,136 3,370 166 3,536 Total $ 53,443 $ (1,083) $ 52,360 $ 44,575 $ 7,442 $ 52,017 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
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 24, September 25, September 24, September 25, 2022 2021 % Change 2022 2021 % Change Point in Time Revenue $ 2,270,438 $ 2,063,647 10.0% $ 7,571,128 $ 6,530,204 15.9% Over Time Revenue 52,417 30,137 73.9% 141,914 89,125 59.2% Total Net Sales 2,322,855 2,093,784 10.9% $ 7,713,042 $ 6,619,329 16.5% |
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 24, December 25, September 25, 2022 2021 2021 Cost and Earnings in Excess of Billings $ 8,477 $ 5,602 $ 3,776 Billings in Excess of Cost and Earnings 10,743 10,744 10,373 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
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 24, September 25, September 24, September 25, 2022 2021 2022 2021 Numerator: Net earnings attributable to controlling interest $ 167,241 $ 121,041 $ 560,062 $ 397,734 Adjustment for earnings allocated to non-vested restricted common stock (6,857) (3,952) (21,970) (12,800) Net earnings for calculating EPS $ 160,384 $ 117,089 $ 538,092 $ 384,934 Denominator: Weighted average shares outstanding 62,445 62,266 62,743 62,162 Adjustment for non-vested restricted common stock (2,560) (2,033) (2,461) (2,001) Shares for calculating basic EPS 59,885 60,233 60,282 60,161 Effect of dilutive restricted common stock 307 168 255 137 Shares for calculating diluted EPS 60,192 60,401 60,537 60,298 Net earnings per share: Basic $ 2.68 $ 1.94 $ 8.93 $ 6.40 Diluted $ 2.66 $ 1.94 $ 8.89 $ 6.38 |
BUSINESS COMBINATIONS AND EQU_2
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | |
Acquisitions Accounted for Using Purchase Method | We completed the following acquisitions in fiscal 2022 and since the end of September 2021, which were accounted for using the purchase or equity method. Dollars below are in thousands unless otherwise noted: Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment June 27, 2022 $65,858 cash paid for equity method investment $ 32,048 $ 33,810 Industrial Dempsey Wood Products, Inc. (Dempsey) Located in Orangeburg, South Carolina and founded in 1988, Dempsey is a sawmill which produces products such as kiln dried finished lumber, industrial lumber, green cut stock lumber, pine chips and shavings, landscaping mulch, and sawdust. The Company had sales of approximately $69 million in 2021. May 9, 2022 $15,398 $ 4,821 $ 10,577 Retail Cedar Poly, LLC Located in Tipton, Iowa, Cedar Poly is a full-service recycler of high-density and low-density polyethylene (HDPE and LDPE) flakes and pellets used in various products, including composite decking. The company also recycles corrugate and operates its own transportation fleet. Cedar Poly had 2021 sales of approximately $17.3 million and will operate in UFP’s Deckorators business unit. December 27, 2021 $24,057 $ 17,484 $ 6,573 Retail 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. December 20, 2021 $20,754 $ 11,417 $ 9,337 Industrial 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. November 22, 2021 $10,831 $ 9,562 $ 1,269 Other 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. Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment November 1, 2021 $5,984 $ 5,681 $ 303 Other 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 $6.2 million USD ($8.2 million AUD). September 27, 2021 $6,443 $ 4,039 $ 2,404 Construction 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. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
SEGMENT REPORTING | |
Segment Reporting | The tables below are presented in thousands: Three Months Ended September 24, 2022 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 845,304 $ 584,808 $ 777,126 $ 112,203 $ 3,414 $ 2,322,855 Intersegment net sales 87,362 19,778 31,352 102,927 (241,419) — Earnings from operations 28,932 77,298 110,384 13,705 6,725 237,044 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) — Earnings from operations (26,153) 70,408 84,205 20,283 19,382 168,125 Nine Months Ended September 24, 2022 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 2,959,976 $ 1,872,510 $ 2,538,973 $ 332,186 $ 9,397 $ 7,713,042 Intersegment net sales 220,922 63,438 88,570 338,592 (711,522) — Earnings from operations 124,856 253,899 322,034 51,268 29,578 781,635 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) — Earnings from operations 89,443 190,344 184,330 44,565 33,865 542,547 |
Schedule of Goodwill by Segment | The following table presents goodwill by segment as of September 24, 2022, and December 25, 2021 (in thousands): Retail Industrial Construction All Other Corporate Total Balance as of December 25, 2021 $ 73,376 $ 128,541 $ 89,000 $ 24,121 $ — $ 315,038 2022 Acquisitions 11,958 — — — — 11,958 2022 Purchase Accounting Adjustments 293 (5,830) (1,074) 659 — (5,952) Foreign Exchange, Net — — (215) (1,646) — (1,861) Balance as of September 24, 2022 $ 85,627 $ 122,711 $ 87,711 $ 23,134 $ — $ 319,183 |
Schedule of assets by segment | Retail Industrial Construction All Other Corporate Total Balance as of December 25, 2021 $ 73,376 $ 128,541 $ 89,000 $ 24,121 $ — $ 315,038 2022 Acquisitions 11,958 — — — — 11,958 2022 Purchase Accounting Adjustments 293 (5,830) (1,074) 659 — (5,952) Foreign Exchange, Net — — (215) (1,646) — (1,861) Balance as of September 24, 2022 $ 85,627 $ 122,711 $ 87,711 $ 23,134 $ — $ 319,183 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
COMMON STOCK | |
Schedule of common stock issuances | Below is a summary of common stock issuances for the first nine months of 2022 and 2021 (in thousands, except average share price): September 24, 2022 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 34 $ 71.65 Shares issued under the employee stock gift program 2 78.60 Shares issued under the director retainer stock program 3 83.24 Shares issued under the bonus plan 755 82.73 Shares issued under the executive stock match plan 62 82.87 Forfeitures (13) Total shares issued under stock grant programs 809 $ 82.73 Shares issued under the deferred compensation plans 102 $ 82.36 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 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 |
FAIR VALUE - Asset Measured at
FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 24, 2022 | Sep. 25, 2021 |
Money market funds | Cash and Cash Equivalents | ||
Fair Value | ||
Investments at fair value | $ 4,700 | |
Money market funds | Restricted Investment | ||
Fair Value | ||
Investments at fair value | 100 | |
Fixed Income | Restricted Investment | ||
Fair Value | ||
Investments at fair value | 19,200 | |
Mutual funds, equity and alternative investments | Investments | ||
Fair Value | ||
Investments at fair value | 33,200 | |
Money market and mutual funds | Other Non current Assets | ||
Fair Value | ||
Investments at fair value | 500 | |
Ardellis Insurance Ltd. | ||
Fair Value | ||
Total Fair Value | 52,360 | $ 52,017 |
Estimate of Fair Value Measurement | Recurring | ||
Fair Value | ||
Investments at fair value | 57,707 | 55,331 |
Assets at fair value | 57,707 | 55,331 |
Estimate of Fair Value Measurement | Recurring | Money market funds | ||
Fair Value | ||
Investments at fair value | 4,844 | 2,650 |
Estimate of Fair Value Measurement | Recurring | Fixed Income | ||
Fair Value | ||
Investments at fair value | 18,905 | 17,983 |
Estimate of Fair Value Measurement | Recurring | Treasury securities | ||
Fair Value | ||
Investments at fair value | 343 | 310 |
Estimate of Fair Value Measurement | Recurring | Equity | ||
Fair Value | ||
Investments at fair value | 15,674 | 18,543 |
Estimate of Fair Value Measurement | Recurring | Alternative Investments | ||
Fair Value | ||
Investments at fair value | 4,136 | 3,536 |
Estimate of Fair Value Measurement | Recurring | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 13,805 | 12,309 |
Estimate of Fair Value Measurement | Recurring | Domestic stock | ||
Fair Value | ||
Investments at fair value | 11,859 | 9,968 |
Estimate of Fair Value Measurement | Recurring | International stock funds | ||
Fair Value | ||
Investments at fair value | 1,279 | 1,675 |
Estimate of Fair Value Measurement | Recurring | Target funds | ||
Fair Value | ||
Investments at fair value | 8 | 23 |
Estimate of Fair Value Measurement | Recurring | Bond funds | ||
Fair Value | ||
Investments at fair value | 132 | 146 |
Estimate of Fair Value Measurement | Recurring | Alternative funds | ||
Fair Value | ||
Investments at fair value | 527 | 497 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value | ||
Investments at fair value | 32,425 | 32,143 |
Assets at fair value | 32,425 | 32,143 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value | ||
Investments at fair value | 19 | 19 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 2,584 | 962 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Treasury securities | ||
Fair Value | ||
Investments at fair value | 343 | 310 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity | ||
Fair Value | ||
Investments at fair value | 15,674 | 18,543 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 13,805 | 12,309 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock | ||
Fair Value | ||
Investments at fair value | 11,859 | 9,968 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds | ||
Fair Value | ||
Investments at fair value | 1,279 | 1,675 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds | ||
Fair Value | ||
Investments at fair value | 8 | 23 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds | ||
Fair Value | ||
Investments at fair value | 132 | 146 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Alternative funds | ||
Fair Value | ||
Investments at fair value | 527 | 497 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | ||
Fair Value | ||
Investments at fair value | 21,146 | 19,652 |
Assets at fair value | 21,146 | 19,652 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value | ||
Investments at fair value | 4,825 | 2,631 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 16,321 | 17,021 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | ||
Fair Value | ||
Investments at fair value | 4,136 | 3,536 |
Assets at fair value | 4,136 | 3,536 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Alternative Investments | ||
Fair Value | ||
Investments at fair value | $ 4,136 | $ 3,536 |
FAIR VALUE - Available for Sale
FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands | Sep. 24, 2022 | Sep. 25, 2021 |
Available-for-sale securities | ||
Total Securities Cost | $ 53,443 | $ 44,575 |
Unrealized Gain (Loss) | (1,083) | 7,442 |
Total Fair Value | 52,360 | 52,017 |
Fixed Income | ||
Available-for-sale securities | ||
Debt Securities Cost | 21,199 | 17,293 |
Debt Securities Unrealized Gain/(Loss) | (2,294) | |
Debt Securities Unrealized Gain/(Loss) | 690 | |
Debt Securities Fair Value | 18,905 | 17,983 |
Treasury securities | ||
Available-for-sale securities | ||
Debt Securities Cost | 343 | 310 |
Debt Securities Fair Value | 343 | 310 |
Equity | ||
Available-for-sale securities | ||
Equity Securities Cost | 15,392 | 14,392 |
Equity Securities Unrealized Gain/(Loss) | 282 | 4,151 |
Equity Securities Fair Value | 15,674 | 18,543 |
Mutual Fund | ||
Available-for-sale securities | ||
Debt Securities Cost | 13,430 | 9,210 |
Debt Securities Unrealized Gain/(Loss) | (128) | |
Debt Securities Unrealized Gain/(Loss) | 2,435 | |
Debt Securities Fair Value | 13,302 | 11,645 |
Alternative Investments | ||
Available-for-sale securities | ||
Debt Securities Cost | 3,079 | 3,370 |
Debt Securities Unrealized Gain/(Loss) | 1,057 | 166 |
Debt Securities Fair Value | $ 4,136 | $ 3,536 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 USD ($) item | Sep. 25, 2021 USD ($) | Sep. 24, 2022 USD ($) item | Sep. 25, 2021 USD ($) | |
Revenue Recognition. | ||||
Number of markets in which the entity operates (in markets) | item | 3 | 3 | ||
NET SALES | $ 2,322,855 | $ 2,093,784 | $ 7,713,042 | $ 6,619,329 |
Change % | 10.90% | 16.50% | ||
Point in Time Revenue | ||||
Revenue Recognition. | ||||
NET SALES | $ 2,270,438 | 2,063,647 | $ 7,571,128 | 6,530,204 |
Change % | 10% | 15.90% | ||
Over Time Revenue | ||||
Revenue Recognition. | ||||
NET SALES | $ 52,417 | $ 30,137 | $ 141,914 | $ 89,125 |
Change % | 73.90% | 59.20% | ||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-25 | Over Time Revenue | ||||
Revenue Recognition. | ||||
Number of months to complete contract projects | 6 months | 6 months | ||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-25 | Over Time Revenue | ||||
Revenue Recognition. | ||||
Number of months to complete contract projects | 18 months | 18 months |
REVENUE RECOGNITION - Percentag
REVENUE RECOGNITION - Percentage of completion (Details) - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 25, 2021 | Sep. 25, 2021 |
REVENUE RECOGNITION | |||
Cost and Earnings in Excess of Billings | $ 8,477 | $ 5,602 | $ 3,776 |
Billings in Excess of Cost and Earnings | $ 10,743 | $ 10,744 | $ 10,373 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Numerator: | ||||
Net earnings attributable to controlling interest | $ 167,241 | $ 121,041 | $ 560,062 | $ 397,734 |
Adjustment for earnings allocated to non-vested restricted common stock | (6,857) | (3,952) | (21,970) | (12,800) |
Net earnings for calculating EPS | $ 160,384 | $ 117,089 | $ 538,092 | $ 384,934 |
Denominator: | ||||
Weighted average shares outstanding (in shares) | 62,445 | 62,266 | 62,743 | 62,162 |
Adjustment for non-vested restricted common stock (in shares) | (2,560) | (2,033) | (2,461) | (2,001) |
Shares for calculating basic EPS (in shares) | 59,885 | 60,233 | 60,282 | 60,161 |
Effect of dilutive restricted common stock (in shares) | 307 | 168 | 255 | 137 |
Shares for calculating diluted EPS (in shares) | 60,192 | 60,401 | 60,537 | 60,298 |
Net earnings per share | ||||
Basic (USD per share) | $ 2.68 | $ 1.94 | $ 8.93 | $ 6.40 |
Diluted (USD per share) | $ 2.66 | $ 1.94 | $ 8.89 | $ 6.38 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) $ in Millions | 9 Months Ended |
Sep. 24, 2022 USD ($) | |
Long-term commitment | |
Outstanding purchase commitments on capital projects | $ 65.4 |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | 59.9 |
Open Projects | |
Surety Bonds and Letters of Credit | |
Payment and performance bonds outstanding | 22.7 |
Completed Projects | |
Surety Bonds and Letters of Credit | |
Payment and performance bonds outstanding | 30.6 |
Insurance Contracts | |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | 52.8 |
Revenue Bonds | |
Surety Bonds and Letters of Credit | |
Outstanding letters of credit | $ 7.1 |
BUSINESS COMBINATIONS AND EQU_3
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS (Details) $ in Thousands, $ in Millions | 9 Months Ended | |||||||||
Jun. 27, 2022 USD ($) | May 09, 2022 USD ($) | Dec. 27, 2021 USD ($) | Dec. 20, 2021 USD ($) | Nov. 22, 2021 USD ($) facility | Nov. 01, 2021 USD ($) | Nov. 01, 2021 AUD ($) | Sep. 27, 2021 USD ($) ft² | Sep. 24, 2022 USD ($) | Jul. 27, 2022 USD ($) | |
Business Acquisition | ||||||||||
Aggregate acquisitions' net sales | $ 93,300 | |||||||||
Aggregate acquisitions' operating profit | 6,100 | |||||||||
Dempsey Wood Products, LLC | ||||||||||
Business Acquisition | ||||||||||
Ownership interest | 50% | |||||||||
Sellers | Dempsey Wood Products, LLC | ||||||||||
Business Acquisition | ||||||||||
Ownership interest | 50% | |||||||||
Dempsey Wood Products, LLC | ||||||||||
Business Acquisition | ||||||||||
Sellers put right | $ 50,000 | |||||||||
Call right | $ 70,000 | |||||||||
Carrying value | $ 67,000 | |||||||||
Dempsey Wood Products, LLC | Industrial | ||||||||||
Business Acquisition | ||||||||||
Purchase consideration, equity method investment | $ 65,858 | |||||||||
Intangible Assets | 32,048 | |||||||||
Net Tangible Assets | 33,810 | |||||||||
Acquired equity method investment, prior year sales | $ 69,000 | |||||||||
Cedar Poly, LLC | Retail | ||||||||||
Business Acquisition | ||||||||||
Cash paid for business acquisition | $ 15,398 | |||||||||
Percentage of assets purchased (as a percent) | 100% | |||||||||
Intangible Assets | $ 4,821 | |||||||||
Net Tangible Assets | 10,577 | |||||||||
Acquired entity, prior year sales | $ 17,300 | |||||||||
Ultra | Retail | ||||||||||
Business Acquisition | ||||||||||
Cash paid for business acquisition, net of cash acquired | $ 24,057 | |||||||||
Percentage of stock purchase (as a percent) | 100% | |||||||||
Intangible Assets | $ 17,484 | |||||||||
Net Tangible Assets | 6,573 | |||||||||
Acquired entity, prior year sales | $ 45,000 | |||||||||
Advantage | Industrial | ||||||||||
Business Acquisition | ||||||||||
Cash paid for business acquisition | $ 20,754 | |||||||||
Percentage of stock purchase (as a percent) | 100% | |||||||||
Intangible Assets | $ 11,417 | |||||||||
Net Tangible Assets | 9,337 | |||||||||
Acquired entity, trailing 12-months sales | $ 19,800 | |||||||||
Ficus | All Other | ||||||||||
Business Acquisition | ||||||||||
Cash paid for business acquisition, net of cash acquired | $ 10,831 | |||||||||
Percentage of stock purchase (as a percent) | 70% | |||||||||
Number of plant locations | facility | 10 | |||||||||
Intangible Assets | $ 9,562 | |||||||||
Net Tangible Assets | 1,269 | |||||||||
Acquired entity, trailing 12-months sales | $ 39,000 | |||||||||
Boxpack Packaging | All Other | ||||||||||
Business Acquisition | ||||||||||
Cash paid for business acquisition | $ 5,984 | |||||||||
Percentage of assets purchased (as a percent) | 100% | |||||||||
Intangible Assets | $ 5,681 | |||||||||
Net Tangible Assets | 303 | |||||||||
Acquired entity, trailing 12-months sales | $ 6,200 | $ 8.2 | ||||||||
Shelter Products | Construction | ||||||||||
Business Acquisition | ||||||||||
Cash paid for business acquisition | $ 6,443 | |||||||||
Percentage of assets purchased (as a percent) | 100% | |||||||||
Intangible Assets | $ 4,039 | |||||||||
Net Tangible Assets | 2,404 | |||||||||
Acquired entity, prior year sales | $ 11,400 | |||||||||
Square feet of warehouse | ft² | 87,800 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Segment Reporting | ||||
Net sales | $ 2,322,855 | $ 2,093,784 | $ 7,713,042 | $ 6,619,329 |
Earnings from operations | 237,044 | 168,125 | 781,635 | 542,547 |
Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | (241,419) | (223,738) | (711,522) | (637,307) |
Corporate | ||||
Segment Reporting | ||||
Net sales | 3,414 | 2,788 | 9,397 | 6,758 |
Earnings from operations | 6,725 | 19,382 | 29,578 | 33,865 |
Retail | ||||
Segment Reporting | ||||
Net sales | 845,304 | 696,201 | 2,959,976 | 2,714,440 |
Earnings from operations | 28,932 | (26,153) | 124,856 | 89,443 |
Retail | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 87,362 | 50,546 | 220,922 | 163,279 |
Industrial | ||||
Segment Reporting | ||||
Net sales | 584,808 | 573,234 | 1,872,510 | 1,633,289 |
Earnings from operations | 77,298 | 70,408 | 253,899 | 190,344 |
Industrial | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 19,778 | 23,148 | 63,438 | 66,039 |
Construction | ||||
Segment Reporting | ||||
Net sales | 777,126 | 722,872 | 2,538,973 | 2,021,106 |
Earnings from operations | 110,384 | 84,205 | 322,034 | 184,330 |
Construction | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 31,352 | 27,574 | 88,570 | 62,069 |
All Other | ||||
Segment Reporting | ||||
Net sales | 112,203 | 98,689 | 332,186 | 243,736 |
Earnings from operations | 13,705 | 20,283 | 51,268 | 44,565 |
All Other | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | $ 102,927 | $ 122,470 | $ 338,592 | $ 345,920 |
SEGMENT REPORTING - Goodwill (D
SEGMENT REPORTING - Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 24, 2022 USD ($) | |
Goodwill | |
Goodwill, Beginning Balance | $ 315,038 |
Acquisitions | 11,958 |
Purchase Accounting Adjustments | (5,952) |
Foreign Exchange, Net | (1,861) |
Goodwill, Ending Balance | 319,183 |
Retail | |
Goodwill | |
Goodwill, Beginning Balance | 73,376 |
Acquisitions | 11,958 |
Purchase Accounting Adjustments | 293 |
Goodwill, Ending Balance | 85,627 |
Industrial | |
Goodwill | |
Goodwill, Beginning Balance | 128,541 |
Purchase Accounting Adjustments | (5,830) |
Goodwill, Ending Balance | 122,711 |
Construction | |
Goodwill | |
Goodwill, Beginning Balance | 89,000 |
Purchase Accounting Adjustments | (1,074) |
Foreign Exchange, Net | (215) |
Goodwill, Ending Balance | 87,711 |
All Other | |
Goodwill | |
Goodwill, Beginning Balance | 24,121 |
Purchase Accounting Adjustments | 659 |
Foreign Exchange, Net | (1,646) |
Goodwill, Ending Balance | $ 23,134 |
SEGMENT REPORTING - Assets (Det
SEGMENT REPORTING - Assets (Details) - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 25, 2021 | Sep. 25, 2021 |
Segment Reporting | |||
Segment assets | $ 3,738,547 | $ 3,245,271 | $ 3,014,247 |
Change in assets (as a percent) | 15.20% | ||
Corporate | |||
Segment Reporting | |||
Segment assets | $ 748,544 | 579,890 | |
Change in assets (as a percent) | 29.10% | ||
Retail | |||
Segment Reporting | |||
Segment assets | $ 975,733 | 844,189 | |
Change in assets (as a percent) | 15.60% | ||
Industrial | |||
Segment Reporting | |||
Segment assets | $ 855,240 | 741,672 | |
Change in assets (as a percent) | 15.30% | ||
Construction | |||
Segment Reporting | |||
Segment assets | $ 834,917 | 736,157 | |
Change in assets (as a percent) | 13.40% | ||
All Other | |||
Segment Reporting | |||
Segment assets | $ 324,113 | $ 343,363 | |
Change in assets (as a percent) | (5.60%) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
INCOME TAXES | ||||
Effective income tax rate | 25.40% | 23% | 24.80% | 24% |
COMMON STOCK - Common Stock Iss
COMMON STOCK - Common Stock Issuances (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Sep. 24, 2022 | Sep. 25, 2021 | |
Common Stock | |||||
Repurchase of common stock (in shares) | 1,165,268 | 44,442 | 1,210,000 | ||
Average Share Price | |||||
Repurchase of common stock (dollars per share) | $ 77.06 | ||||
Stock Purchase Plan | |||||
Common Stock | |||||
Common stock issued | 34,000 | 25,000 | |||
Average Share Price | |||||
Common stock issued (dollars per share) | $ 71.65 | $ 71.18 | |||
Stock Gift Program | |||||
Common Stock | |||||
Common stock issued | 2,000 | 2,000 | |||
Average Share Price | |||||
Common stock issued (dollars per share) | $ 78.60 | $ 76.80 | |||
Stock Retainer Plan | |||||
Common Stock | |||||
Common stock issued | 3,000 | 4,000 | |||
Average Share Price | |||||
Common stock issued (dollars per share) | $ 83.24 | $ 69.80 | |||
LTSIP | |||||
Common Stock | |||||
Common stock issued | 755,000 | 487,000 | |||
Average Share Price | |||||
Common stock issued (dollars per share) | $ 82.73 | $ 57.06 | |||
Executive Stock Grants Plan | |||||
Common Stock | |||||
Common stock issued | 62,000 | 77,000 | |||
Average Share Price | |||||
Common stock issued (dollars per share) | $ 82.87 | $ 60.24 | |||
Deferred Compensation Plans | |||||
Common Stock | |||||
Common stock issued | 102,000 | 108,000 | |||
Average Share Price | |||||
Common stock issued (dollars per share) | $ 82.36 | $ 62.48 | |||
Subsequent Event | |||||
Common Stock | |||||
Repurchase of common stock (in shares) | 32,000 | ||||
Average Share Price | |||||
Repurchase of common stock (dollars per share) | $ 69.31 | ||||
Stock grant programs | |||||
Common Stock | |||||
Common stock issued | 809,000 | 549,000 | |||
Forfeitures | (13,000) | (21,000) | |||
Average Share Price | |||||
Common stock issued (dollars per share) | $ 82.73 | $ 57.64 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 24, 2022 | Sep. 25, 2021 | |
INVENTORIES | ||
Adjustments to inventory | $ 0 | $ 1.3 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Nov. 03, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Sep. 24, 2022 | |
Subsequent Event | ||||
Repurchase of common stock (in shares) | 1,165,268 | 44,442 | 1,210,000 | |
Repurchase of common stock | $ 93,215 | |||
Repurchase of common stock (dollars per share) | $ 77.06 | |||
Subsequent Event | ||||
Subsequent Event | ||||
Repurchase of common stock (in shares) | 32,000 | |||
Repurchase of common stock | $ 2,200 | |||
Repurchase of common stock (dollars per share) | $ 69.31 |