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UFP Industries(UFPI) - 2024 Q4 - Annual Report
UFPIUFP Industries(UFPI)2025-02-26 20:30
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Revenue and Growth - From 2011 to 2019, the company's revenues increased from 1.8billionto1.8 billion to 4.4 billion, reflecting significant growth[21]. - Net sales for 2024 were 6,652,309,adecreaseof7.86,652,309, a decrease of 7.8% compared to 7,218,384 in 2023[264]. - Point in time revenue decreased by 8.2% to 6,489,190in2024from6,489,190 in 2024 from 7,069,690 in 2023, while over time revenue increased by 9.7% to 163,119[307].MarketShareandProductionEstimates−TheRetailSolutionssegmentestimatesproductionofapproximately28163,119[307]. Market Share and Production Estimates - The Retail Solutions segment estimates production of approximately 28% of all residential treated wood, 17% of all wood fencing, and 7% of all fire-retardant wood products in the U.S.[26]. - The company estimates it manufactures approximately 6-8% of all composite decking and railing in the U.S.[27]. - The Structural Packaging business unit estimates a domestic market share of 10-12%[33]. - PalletOne, as the largest supplier, manufactures approximately 8-10% of new machine-built pallets nationally[34]. - The company estimates it produces approximately 35% of all roof trusses used in factory-built housing in the U.S.[40]. - The site-built construction unit estimates it produces approximately 12% of all engineered wood components used in housing in the U.S.[42]. - The commercial construction business unit is recognized as one of the top five custom interior environment providers globally[43]. Financial Performance - Gross profit for 2024 was 1,226,742, down from 1,418,938in2023,reflectingadeclineof13.51,418,938 in 2023, reflecting a decline of 13.5%[264]. - Earnings before income taxes for 2024 were 540,155, a decrease of 19.5% compared to 671,241in2023[264].−NetearningsfortheyearendedDecember28,2024,were671,241 in 2023[264]. - Net earnings for the year ended December 28, 2024, were 418.733 million, a decrease of 18.6% compared to 514.457millionin2023[269].−NetearningsattributabletocontrollinginterestfortheyearendedDecember28,2024,were514.457 million in 2023[269]. - Net earnings attributable to controlling interest for the year ended December 28, 2024, were 414.56 million, a decrease of 19.4% from 514.31millionin2023[311].−Thetotalincometaxexpensefor2024was514.31 million in 2023[311]. - The total income tax expense for 2024 was 121.4 million, a decrease of 22.4% from 156.8millionin2023,drivenbylowerearningsbeforeincometaxes[354].AssetsandLiabilities−Totalassetsincreasedto156.8 million in 2023, driven by lower earnings before income taxes[354]. Assets and Liabilities - Total assets increased to 4,150,938 in 2024 from 4,017,797in2023,representingagrowthof3.34,017,797 in 2023, representing a growth of 3.3%[263]. - Current liabilities decreased to 512,448 in 2024, down 9.8% from 567,976in2023[263].−Totalliabilitiesdecreasedto567,976 in 2023[263]. - Total liabilities decreased to 900,947 in 2024, down 6.9% from 967,577in2023[263].−Long−termdebtobligationsdecreasedfrom967,577 in 2023[263]. - Long-term debt obligations decreased from 276.584 million in 2023 to 234.032millionin2024,reflectingareductionofapproximately15.3234.032 million in 2024, reflecting a reduction of approximately 15.3%[331]. Employee and Shareholder Information - The company had approximately 15,000 employees as of December 28, 2024, emphasizing a culture of career development and training[55]. - Cash dividends increased to 1.32 per share in 2023, up from 1.10persharein2022,reflectingariseofapproximately201.10 per share in 2022, reflecting a rise of approximately 20%[266]. - The company repurchased 1,409,266 shares of common stock in 2024 at an average price of 113.53, compared to 974,869 shares at an average price of 84.27in2023,representinganincreaseof44.484.27 in 2023, representing an increase of 44.4% in shares repurchased[351]. Capital Expenditures and Investments - The company incurred 232.274 million in capital expenditures for property, plant, and equipment in 2024, compared to 180.382millionin2023[269].−Thecompanymadeinvestmentsof180.382 million in 2023[269]. - The company made investments of 15.5 million and 10.5millionthroughitsInnov8Fundin2024and2023,respectively,focusingonemergingprojectsandtechnologies[317].DebtandInterestRates−Theestimatedfairvalueofthecompany′slong−termdebt,includingthecurrentportion,was10.5 million through its Innov8 Fund in 2024 and 2023, respectively, focusing on emerging projects and technologies[317]. Debt and Interest Rates - The estimated fair value of the company's long-term debt, including the current portion, was 201.2 million as of December 28, 2024[239]. - The average interest rate for variable rate debt is 3.32% as of December 28, 2024[240]. - The company does not enter into material interest rate swaps or other derivative financial instruments to mitigate market risks related to fluctuations in interest rates on variable rate debt[237]. Environmental and Regulatory Compliance - The company plans to disclose its 2024 Scope 1 and Scope 2 greenhouse gas emissions in 2025, following the quantification of 2023 emissions[57]. - The company is evaluating the impact of new accounting standards on financial statement disclosures, including ASU 2024-03 and ASU 2023-09[286][287]. Miscellaneous - The company recognized an expense of 2.0millionfortheDirectorCompensationPlanin2024,slightlyupfrom2.0 million for the Director Compensation Plan in 2024, slightly up from 1.9 million in 2023[343]. - The company accrued approximately 16.9millionforretirementbenefitsforcertainofficersasofDecember28,2024,comparedto16.9 million for retirement benefits for certain officers as of December 28, 2024, compared to 15.5 million in 2023[353].