Universal Forest Products, Inc (UFPI) has reported 9.78 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $20.75 million, or $1.02 a share in the quarter, compared with $18.90 million, or $0.93 a share for the same period last year. Revenue during the quarter surged 31.52 percent to $859.58 million from $653.60 million in the previous year period. Gross margin for the quarter contracted 64 basis points over the previous year period to 14.23 percent. Total expenses were 95.89 percent of quarterly revenues, up from 95.27 percent for the same period last year. That has resulted in a contraction of 62 basis points in operating margin to 4.11 percent.
Operating income for the quarter was $35.31 million, compared with $30.89 million in the previous year period.
“The people who work for the companies of Universal are the best in the business, and they continue to prove it with record-breaking results,” said Chief executive officer Matthew J. Missad. “They continuously look for ways to create efficiencies, reduce manufacturing costs and grow sales by building and deepening customer relationships. They also have been bringing a number of exciting new, value-added products to the market. I couldn’t be more proud of them.”
Operating cash flow improves marginally
Universal Forest Products, Inc has generated cash of $172.52 million from operating activities during the year, up 2.21 percent or $3.72 million, when compared with the last year. The company has spent $227.47 million cash to meet investing activities during the year as against cash outgo of $46.82 million in the last year. It has incurred net capital expenditure of $50.64 million on net basis during the year, up 24.48 percent or $9.96 million from year ago.
Cash flow from financing activities was $3.21 million for the year as against cash outgo of $33 million in the last year period.
Cash and cash equivalents stood at $34.09 million as on Dec. 31, 2016, down 61.15 percent or $53.66 million from $87.76 million on Dec. 26, 2015.
Working capital increases
Universal Forest Products, Inc has recorded an increase in the working capital over the last year. It stood at $484.66 million as at Dec. 31, 2016, up 9.14 percent or $40.60 million from $444.06 million on Dec. 26, 2015. Current ratio was at 2.78 as on Dec. 31, 2016, down from 3.17 on Dec. 26, 2015.
Debt increases substantially
Universal Forest Products, Inc has witnessed an increase in total debt over the last one year. It stood at $131.45 million as on Dec. 31, 2016, up 53.04 percent or $45.56 million from $85.90 million on Dec. 26, 2015. Total debt was 10.17 percent of total assets as on Dec. 31, 2016, compared with 7.75 percent on Dec. 26, 2015. Debt to equity ratio was at 0.15 as on Dec. 31, 2016, up from 0.11 as on Dec. 26, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
