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]

UFP Industries, Inc. (NASDAQ:UFPI) Q3 2021 Earnings Conference Call October 20, 2021 4:30 PM ET Â Company Participants Dick Gauthier - Vice President, Corporate Communications and IR Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Ketan Mamtora - BMO Capital Markets Stanley Elliott - Stifel Reuben Garner - The Benchmark Company Julio Romero - Sidoti & Co. Jay McCanless - Wedbush Securities Operator Ladies and gentlemen, thank you for standing by. And we ...

UFP Industries, Inc. (NASDAQ:UFPI) Q2 2021 Earnings Conference Call July 21, 2021 4:30 PM ET Company Participants Dick Gauthier - Vice President of Business Outreach Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Stanley Elliott - Stifel Kurt Yinger - D.A. Davidson Jay McCanless - Wedbush Securities Ketan Mamtora - BMO Capital Markets Operator Ladies and gentlemen, thank you for standing by, and welcome to the UFP Industries Second Quarter 2021 Earning ...

UFP Industries, Inc. (NASDAQ:UFPI) Q1 2021 Earnings Conference Call April 21, 2021 4:30 PM ET Company Participants Dick Gauthier - Vice President of Business Outreach Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Ketan Mamtora - BMO Capital Markets Reuben Garner - The Benchmark Company Jay McCanless - Wedbush Kurt Yinger - DA Davidson Julio Romero - Sidoti & Co Stanley Elliott - Stifel Operator Ladies and gentlemen, thank you for standing by and welco ...

Financial Performance - The company reported annual purchases of lumber totaling approximately $2.0 billion, with southern yellow pine accounting for 62% of total purchases[30]. - One major customer, The Home Depot, accounted for approximately 24% of total net sales in fiscal 2020[20]. Backlog Orders - As of December 26, 2020, the estimated backlog orders for customized interior fixture businesses were approximately $65.2 million, down from $75.0 million in the previous year[33]. - The estimated backlog orders associated with construction businesses were approximately $106.0 million as of December 26, 2020, compared to $110.1 million in the prior year[34]. - The company expects to fill the majority of its backlog orders within the next fiscal year, although some orders may be canceled[33][34]. Employee Information - The company had approximately 12,000 employees as of December 26, 2020, emphasizing the importance of employee skill and motivation in its success[35]. Organizational Structure - The company operates with a market-centered reporting structure, reorganizing its segments into Retail, Industrial, and Construction to enhance efficiency and product introduction[18]. Debt and Interest Rates - The estimated fair value of the company's long-term debt was $341.4 million as of December 26, 2020[79]. - The average interest rate for fixed-rate debt was reported at 3.89% for 2022, while the average for variable-rate debt was 0.79%[80]. Intellectual Property - The company has several patents and trademarks related to its business, indicating a focus on intellectual property development[31].

Call Start: 16:30 January 1, 0000 5:25 PM ET UFP Industries, Inc. (NASDAQ:UFPI) Q4 2020 Earnings Conference Call February 23, 2021 16:30 ET Company Participants Dick Gauthier - Vice President of Business Outreach Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Ketan Mamtora - BMO Capital Markets Reuben Garner - The Benchmark Company Jay McCanless - Wedbush Kurt Yinger - DA Davidson Julio Romero - Sidoti & Co Reuben Garner - Benchmark Operator Ladies and ...

Financial Data and Key Metrics Changes - Net sales reached $1.49 billion, representing a 28% increase compared to the previous year, driven by an 8% increase in unit sales and a 20% increase in selling prices due to lumber market impacts [6][13][14] - Gross profit increased by 29%, with net earnings up 49% [7][13] - Operating profits rose by 51%, and operating margins improved by 110 basis points to 7.2% [13] - Operating cash flow was $185 million, with total liquidity at $707 million at the end of September [13][18] Business Line Data and Key Metrics Changes - Retail segment sales increased by 76%, with a 34% organic unit increase and a 42% increase in prices, driven by strong consumer demand for home improvement [13][14] - Industrial segment sales grew by 4%, with a 6% increase in selling prices, but faced a 5% decline in organic unit sales [14] - Construction segment sales were flat, with a 9% increase in selling prices offset by a 9% decline in units sold [14][15] Market Data and Key Metrics Changes - E-commerce sales surged by 107% in the quarter, totaling $139 million year-to-date [7] - The lumber market saw record highs during the quarter but began to trend downwards towards the end [8][12] - Demand for site-built and factory-built housing remained strong, while commercial construction faced challenges [8][12] Company Strategy and Development Direction - The company aims to grow sales and profitability through automation and capital projects, with a focus on new product development [9][10] - Plans to scale recent acquisitions nationally and pursue additional acquisition targets to achieve growth [11] - The company is optimistic about the future, with a focus on expanding its product offerings and improving customer relationships [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's performance despite challenges such as the pandemic and supply chain disruptions [5][6] - There is optimism regarding continued strong demand in the retail segment, with expectations for seasonality to be weather-driven [22][23] - Concerns about economic and social uncertainty were noted, but management remains focused on achieving growth targets [9][11] Other Important Information - The company is currently seeking over 300 employees to support production facilities [9] - A disciplined approach to capital allocation is maintained, with plans for $100 million in capital expenditures in 2021 [11][18] Q&A Session Summary Question: Retail demand outlook as the season changes - Management noted that demand remains strong, with customers optimistic about 2021 despite expected seasonal slowdowns [22][23] Question: Impact of falling lumber prices - Management explained that while falling lumber prices may create headwinds for variable price products, fixed price items in construction and industrial segments could benefit [25] Question: Competitive positioning in the retail market - Management indicated that they were able to gain market share due to supply shortages faced by smaller competitors [32][33] Question: Growth opportunities in industrial vs outdoor living products - Management acknowledged strong growth runways in both industrial and retail segments, emphasizing a balanced approach to growth [26] Question: Year-to-date growth for decorator's products - Management confirmed that decorator's products have seen an 11% year-to-date growth [46] Question: Cost control measures and their sustainability - Management highlighted temporary reductions in costs due to lower travel and healthcare expenses, with expectations to maintain some savings moving forward [61][62] Question: M&A pipeline and consolidation in the industry - Management expressed a strong pipeline of acquisition targets and a focus on industry consolidation to enhance growth [65]

UFP Industries, Inc. (NASDAQ:UFPI) Q2 2020 Earnings Conference Call July 23, 2020 8:30 AM ET Company Participants Dick Gauthier - VP, Business Outreach Matt Missad - CEO Mike Cole - CFO Conference Call Participants Ketan Mamtora - BMO Capital Markets Steve Chercover - D.A. Davidson Reuben Garner - The Benchmark Company Julio Romero - Sidoti & Co. Operator Ladies and gentlemen, thank you for standing by and welcome to the Q2 2020 UFP Industries Earnings Conference Call. [Operator Instructions] I would now li ...

Universal Forest Products, Inc. (NASDAQ:UFPI) Q1 2020 Earnings Conference Call May 7, 2020 8:30 AM ET Company Participants Dick Gauthier - Vice President, Business Outreach Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Ketan Mamtora - BMO Capital Markets Paul Betz - Stifel Reuben Garner - Benchmark Jay McCanless - Wedbush Dick Gauthier [Call starts abruptly] Â…the First Quarter 2020 Conference Call for UFP Industries. Hosting the call today are CEO, M ...