UFP Industries, Inc. (NASDAQ:UFPI) Q3 2023 Earnings Conference Call October 31, 2023 9:00 AM ET Company Participants Dick Gauthier - Vice President, Investor Relations Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Julio Romero - Sidoti & Co Kurt Yinger - D.A. Davidson Ketan Mamtora - BMO Capital Markets Operator Good day, and welcome to the Q3 2023 UFP Industries, Inc. Earnings Conference Call and Webcast. At this time, all participants are in a lis ...

Stanley Elliott And could you speak maybe a little more to the competitive pressures you guys saw in the packaging? And then I guess there's another thing, it looks like the PMIs are going to start -- or in the bottoming process may be actually even improving by the end of the year. Do you think you'll end up seeing that -- will it be a lag before that starts to benefit some of the packaging businesses? Or should it be kind of more in line with how those PMIs track? Matt Missad Yes. There's a couple of diff ...

UFP Industries, Inc. (NASDAQ:UFPI) Q1 2023 Earnings Conference Call May 2, 2023 4:30 PM ET Company Participants Dick Gauthier – Vice President-Investor Relations Matt Missad – Chief Executive Officer Mike Cole – Chief Financial Officer Conference Call Participants Stanley Elliot – Stifel Reuben Garner – Benchmark Company Ketan Mamtora – BMO Capital Markets Kurt Yinger – D.A. Davidson Operator Good day, and welcome to the Q1 2023 UFP Industries Inc. Earnings Conference Call and Webcast. At this time, all par ...

Revenue Growth and Market Share - Revenue growth from 2011 to 2019 increased from $1.8 billion to $4.4 billion, reflecting a strong sales culture and customer relationships [19] - The Retail Solutions segment accounted for approximately 15% of total net sales from The Home Depot and 11% from Lowes in fiscal 2022 [29] - The company estimates it produces approximately 28% of all residential treated wood, 5-6% of all composite decking and accessories, and 9% of all wood and vinyl fencing in the United States [28] - For 2022, the company purchased approximately 7% of the 53 billion board feet of North America softwood production, totaling around $3.0 billion in lumber purchases [43][44] - The company has a market share of approximately 15% in domestic customized structural packaging and 10% in new machine-built wood pallets [34] - The Factory-Built Housing unit estimates it produces approximately 45% of all roof trusses used in factory-built housing in the United States [37] - The Site-Built Construction unit estimates it produces approximately 6% of all engineered wood components used in housing in the United States [39] - The Commercial Construction unit has a market share of approximately 3% of the total domestic and architectural millwork market [40] Business Strategy and Restructuring - The company plans to continue acquiring companies to enhance its packaging solutions capabilities [34] - The restructuring into three business segments aims to improve customer service, operational efficiency, and capital deployment [21] Backlog Orders - As of December 31, 2022, backlog orders for customized interior fixture businesses were approximately $136.7 million, up from $84.6 million on December 25, 2021, representing a growth of 61.5% [47] - Backlog orders for site-built construction businesses were approximately $91.1 million as of December 31, 2022, down from $113.5 million on December 25, 2021, indicating a decline of 19.7% [48] Debt and Cash Flow - The estimated fair value of long-term debt, including the current portion, was $242.1 million as of December 31, 2022 [99] - Expected cash flows related to fixed-rate long-term debt over the next five years total approximately $266.6 million, with an average interest rate of 3.54% [101] - For variable-rate debt, expected cash flows total approximately $11.7 million over the next five years, with an average interest rate of 9.20% [101] Employee Development and Commitment - The company had approximately 15,500 employees as of December 31, 2022, emphasizing a commitment to employee development and career growth [49] - The company has removed the requirement of a 4-year degree for sales and management positions to broaden the talent pool and enhance employee growth opportunities [53] - The company is focused on operational excellence and employee health and safety, aiming to foster a culture of equal opportunity and professional development [52] Environmental Commitment - The company plans to disclose its Scope 1 and Scope 2 greenhouse gas emissions in 2023, reflecting its commitment to environmental stewardship [51] - The company will publish its ESG Report in March 2023, detailing its current state and future outlook on sustainability and governance [50]

UFP Industries, Inc. (NASDAQ:UFPI) Q4 2022 Results Conference Call February 21, 2023 4:30 PM ET Company Participants Dick Gauthier - IR Matt Missad - CEO Mike Cole - CFO Conference Call Participants Julio Romero - Sidoti Kurt Yinger - D.A. Davidson Stanley Elliott - Stifel Reuben Garner - Benchmark Company Jay McCanless - Wedbush Securities Ketan Mamtora - BMO Capital Markets Kurt Yinger - D.A. Davidson Operator Good day, and welcome to the Q4 2022 UFP Industries, Inc. Earnings Conference Call and Webcast. ...

UFP Industries, Inc. (NASDAQ:UFPI) Q3 2022 Earnings Conference Call October 20, 2022 4:30 PM ET Company Participants Dick Gauthier - VP, Corporate Communications and IR Matt Missad - CEO Mike Cole - CFO Conference Call Participants Ketan Mamtora - BMO Capital Markets Reuben Garner - Benchmark Company Stanley Elliott - Stifel Kurt Yinger - D.A. Davidson Julio Romero - Sidoti Jay McCanless - Wedbush Securities Operator Good day, and welcome to the Q3 2022 UFP Industries, Inc. Earnings Conference Call and Webc ...

UFP Industries, Inc. (NASDAQ:UFPI) Q2 2022 Earnings Conference Call July 21, 2022 4:30 PM ET Company Participants Dick Gauthier - VP, Corporate Communications and IR Matt Missad - CEO Mike Cole - CFO Conference Call Participants Ketan Mamtora - BMO Capital Markets Stanley Elliot - Stifel Kurt Yinger - D. A. Davidson Julio Romero - Sidoti & Company Jay McCanless - Wedbush Securities Reuben Garner - Benchmark Company Operator Ladies and gentlemen, thank you for standing by. Welcome to the UFP Industries Inc. ...

UFP Industries, Inc. (NASDAQ:UFPI) Q1 2022 Earnings Conference Call April 21, 2022 4:30 PM ET Company Participants Dick Gauthier - Vice President, Corporate Communications and Investor Relations Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Stanley Elliot - Stifel Reuben Garner - Benchmark Company Kurt Yinger - D. A. Davidson Julio Romero - Sidoti Jay McCanless - Wedbush Ketan Mamtora - BMO Capital Markets Operator Ladies and gentlemen, thank you for ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) UFP Industries, Inc. is a holding company that supplies wood, wood composite, and other material products to the retail, industrial, and construction markets across North America, Europe, Asia, and Australia - UFP Industries operates as a holding company with subsidiaries supplying wood and composite products to three main markets: retail, industrial, and construction[14](index=14&type=chunk) - The company's business segments are UFP Retail Solutions, UFP Industrial, and UFP Construction, which align with the markets served. International operations and the insurance captive (Ardellis) are categorized under "All Other"[17](index=17&type=chunk) Key Customer Sales Concentration (as % of Total Net Sales) | Customer | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | The Home Depot | 16% | 24% | 19% | | Lowe's | 10% | 4% | 4% | 2021 Lumber Purchases | Metric | Value/Percentage | | :--- | :--- | | Total Annual Purchases | Approx. $3.0 billion | | Southern Yellow Pine | 57% | | Spruce-Pine-Fir | 22% | | Douglas Fir | 4% | | Other Species | 17% | | Plywood Purchases | Approx. $1.0 billion | Order Backlog (in millions) | Business Area | Dec 25, 2021 | Dec 26, 2020 | | :--- | :--- | :--- | | Customized Interior Fixtures | $84.6 | $65.2 | | Site-Built Construction | $113.5 | $106.0 | - As of December 25, 2021, the company had approximately **15,000 employees**[35](index=35&type=chunk) [Item 1A. Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) The company identifies several key risks, including significant fluctuations in lumber prices, customer concentration, dependency on cyclical markets, supply chain challenges, and potential impacts from tariffs and public health crises Lumber Costs as a Percentage of Net Sales | Year | Percentage | | :--- | :--- | | 2021 | 47.7% | | 2020 | 51.0% | | 2019 | 43.4% | Transportation Costs as a Percentage of Net Sales | Year | Percentage | | :--- | :--- | | 2021 | 7.3% | | 2020 | 9.2% | | 2019 | 9.5% | 2021 International Trade Figures | Category | Value (in millions) | | :--- | :--- | | Import Purchases | $806.8 | | Export Sales | $181.3 | - The company's growth strategy relies on successful business acquisitions, which carry inherent risks related to assimilation and management[45](index=45&type=chunk) - Bad debt expense has remained low, averaging **0.04% of sales** from 2019-2021, compared to an average of **0.25%** during the Great Recession (2008-2010)[53](index=53&type=chunk) [Item 1B. Unresolved Staff Comments](index=10&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - Not applicable[54](index=54&type=chunk) [Item 2. Properties](index=10&type=section&id=Item%202.%20Properties) UFP Industries operates approximately 216 facilities globally, primarily owned, with corporate headquarters in Grand Rapids, Michigan, deemed adequate for existing markets - The company has approximately **216 facilities** located throughout the United States, Canada, Mexico, Europe, Asia, and Australia[55](index=55&type=chunk) Number of Properties by Primary Segment | Segment | Number of Properties | | :--- | :--- | | Retail | 48 | | Industrial | 77 | | Construction | 65 | | All Other | 24 | | Corporate | 2 | | **Total** | **216** | - The company owns most of its properties, with approximately **105 facilities** being leased[61](index=61&type=chunk) [Item 3. Legal Proceedings](index=14&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding the company's legal proceedings is incorporated by reference from Note L of the Consolidated Financial Statements under Item 8 - Details on legal proceedings are incorporated by reference from Note L of the Consolidated Financial Statements under Item 8[63](index=63&type=chunk) [Item 4. Mine Safety Disclosures](index=14&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[64](index=64&type=chunk) [Additional Item: Executive Officers of the Registrant](index=14&type=section&id=Additional%20Item%3A%20Executive%20Officers%20of%20the%20Registrant) This section lists the executive officers of UFP Industries as of February 1, 2022, including CEO Matthew J. Missad, President and COO Patrick M. Webster, and CFO Michael R. Cole Executive Officers (as of Feb 1, 2022) | Name | Age | Position | | :--- | :--- | :--- | | Matthew J. Missad | 61 | Chief Executive Officer | | Patrick M. Webster | 62 | President and Chief Operating Officer | | Michael R. Cole | 55 | Chief Financial Officer and Treasurer | | Allen T. Peters | 54 | President and COO of UFP Retail Solutions, LLC | | Patrick M. Benton | 52 | President of UFP Construction, LLC | | Scott A. Worthington | 51 | President of UFP Industrial, LLC | | Scott T. Bravata | 57 | Vice President of Accounting and Administration | | David A. Tutas | 52 | General Counsel, Chief Compliance Officer and Secretary | PART II [Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=15&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section incorporates information about the company's common stock market, holders, and dividends by reference, noting an additional 1.5 million shares authorized for repurchase - Effective February 15, 2022, the Board authorized an additional **1.5 million shares** for repurchase, with a total of approximately **2.6 million shares** remaining available for repurchase under the program through February 3, 2023[75](index=75&type=chunk) [Item 6. Selected Financial Data](index=15&type=section&id=Item%206.%20Selected%20Financial%20Data) The required information for this item is incorporated by reference from the "Selected Financial Data" section of the company's 2021 Annual Report - Selected Financial Data is incorporated by reference from the 2021 Annual Report[76](index=76&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The Management's Discussion and Analysis (MD&A) is incorporated by reference from the corresponding section in the company's 2021 Annual Report - Management's Discussion and Analysis is incorporated by reference from the 2021 Annual Report[76](index=76&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=15&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate risk on its variable rate debt, with an estimated fair value of $329.7 million as of December 25, 2021, and does not use derivatives to mitigate this risk - The company is exposed to interest rate risk on its variable rate debt. The estimated fair value of its long-term debt was **$329.7 million** as of December 25, 2021[77](index=77&type=chunk)[80](index=80&type=chunk) Expected Cash Flows for Debt Instruments (in thousands) | Year | Fixed Rate ($US) | Variable Rate ($US) | | :--- | :--- | :--- | | 2022 | $35,028 | $7,655 | | 2023 | $1,044 | $7,819 | | 2024 | $40,214 | $— | | 2025 | $— | $— | | 2026 | $302 | $— | | Thereafter | $225,000 | $3,300 | | **Total** | **$301,588** | **$18,774** | [Item 8. Financial Statements and Supplementary Data](index=16&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's audited consolidated financial statements and the report of the independent registered public accounting firm from the 2021 Annual Report - The Consolidated Financial Statements and related reports are incorporated by reference from the 2021 Annual Report[82](index=82&type=chunk) [Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure](index=16&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[83](index=83&type=chunk) [Item 9A. Controls and Procedures](index=16&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of December 25, 2021, with the independent auditor concurring - Based on an evaluation, management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[84](index=84&type=chunk) - Management assessed internal control over financial reporting as effective as of December 25, 2021, a conclusion supported by the independent registered public accounting firm, Deloitte & Touche LLP[86](index=86&type=chunk)[87](index=87&type=chunk) [Item 9B. Other Information](index=17&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - Not applicable[89](index=89&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=17&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance matters is incorporated by reference from the company's 2022 Proxy Statement - Information related to directors and corporate governance is incorporated by reference from the 2022 Proxy Statement[91](index=91&type=chunk) [Item 11. Executive Compensation](index=17&type=section&id=Item%2011.%20Executive%20Compensation) Details concerning director and executive compensation are incorporated by reference from the "Executive Compensation" section of the 2022 Proxy Statement - Information on executive compensation is incorporated by reference from the 2022 Proxy Statement[92](index=92&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=17&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Information on security ownership is incorporated by reference from the 2022 Proxy Statement, with 1,474,858 shares remaining available for future issuance under equity compensation plans Equity Compensation Plan Information (as of Dec 25, 2021) | Plan Category | Number of shares to be issued upon exercise of outstanding options | Weighted average exercise price of outstanding options | Number of shares remaining available for future issuance | | :--- | :--- | :--- | :--- | | Approved by security holders | — | $ — | 1,474,858 | | Not approved by security holders | none | | | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=18&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the company's 2022 Proxy Statement - Information on related transactions and director independence is incorporated by reference from the 2022 Proxy Statement[95](index=95&type=chunk) [Item 14. Principal Accountant Fees and Services](index=18&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Details about the fees paid to the independent registered public accounting firm for services rendered are incorporated by reference from the 2022 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the 2022 Proxy Statement[95](index=95&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=18&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K, with financial statements incorporated by reference from the 2021 Annual Report - The company's financial statements are incorporated by reference from the 2021 Annual Report under Item 8[97](index=97&type=chunk) - All required financial statement schedules were omitted because they were inapplicable or otherwise not required[97](index=97&type=chunk) - A list of exhibits filed with the Form 10-K is provided in the Exhibit Index[98](index=98&type=chunk)

Financial Data and Key Metrics Changes - Record net sales for Q4 2021 were $2.02 billion, and $8.65 billion for the year, representing a 65% increase in net sales year-over-year [4][21] - Record PBOP for Q4 was $239.7 million, and $911.5 million for the year [4] - Record gross profit dollars were $371.5 million for Q4 and $1.41 billion for the year [4] - Record EPS was $2.21 for Q4 and $8.59 for the year, more than doubling year-over-year [4][21] - Operating cash flow was $512 million, $176 million ahead of last year, with a strong balance sheet showing only $50 million of net debt [21][26] Business Line Data and Key Metrics Changes - Retail Solutions segment sales were $3.42 billion for the year, although profits were down from 2020 due to lumber market impacts [5] - UFP-Edge saw double-digit growth in Q4, with strong demand for new products and additional manufacturing capacity planned [6] - Deckorators decking products experienced double-digit unit sales increases, while Lattice and PVC railings were down from record 2020 levels [6] - Industrial segment sales increased by 67%, with a 42% increase in selling prices and a 29% increase in unit sales [22] - Construction segment sales increased by 33%, driven by an 18% increase in selling prices and 13% organic unit growth [23] Market Data and Key Metrics Changes - The repair and remodel market remains strong, with big box customers optimistic about consumer demand [15] - Strong order files for the construction market are expected to continue through Q2 2022, particularly in multifamily housing [15] - Industrial durable goods manufacturing is also strong, with many appliance manufacturers reporting order files extending 16 to 26 weeks [15] Company Strategy and Development Direction - The company plans to innovate and drive improvements in 2022, with a focus on new product introductions and strategic acquisitions [14][20] - A sales target of $525 million for new products in 2022 has been established, using enhanced criteria for product qualification [14] - The company is prioritizing capital allocation towards growth, strategic acquisitions, and efficiency capital expenditures [20][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted challenges such as labor shortages, transportation costs, and interest rate increases as potential risks [15][18] - The company remains optimistic about the demand for manufactured housing, especially in a higher interest rate environment [18] - Management expressed confidence in their balanced business model to navigate market volatility and maintain performance [34] Other Important Information - The company plans to return capital to shareholders through dividends and share repurchase programs, with a recent increase in the dividend to $0.20 per share [20][27] - The company is investing in automation and technology to enhance productivity and efficiency [20][28] Q&A Session Summary Question: What strategies helped navigate volatility in lumber prices? - Management credited the experienced operations team and a balanced business model as key factors in managing inventory and market changes [34] Question: What drove the divergence in Deckorators sales? - Management noted capacity constraints and strong customer demand for decking products, while accessories faced challenges due to stocking orders [36] Question: How are channel inventories currently? - Management indicated that channel inventories are balanced, with the first quarter's takeaway expected to shape the year [37] Question: What is the status of share repurchases? - Management clarified that the $2.6 million authorization is the total available amount for repurchases [38] Question: What challenges are anticipated in automation investments? - Management acknowledged potential delays in equipment orders impacting project timelines, with some projects likely spilling into 2023 [47] Question: How is the new organizational structure impacting results? - Management expressed satisfaction with the organizational changes, noting improved focus and performance across segments [86] Question: What are the biggest operational risks heading into 2022? - Management identified inflation, interest rates, and policy decisions as significant risks that are difficult to prepare for [88]