UFP Industries(UFPI) - 2022 Q4 - Annual Report

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]