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圉 UFP INDUSTRIES UFP Industries Reports Record Second Quarter Results July 21 , 2021 - Net sales increase 117 percent , earnings increase 161 percent - GRAND RAPIDS , Mich . , July 21 , 2021 ( GLOBE NEWSWIRE ) -- UFP Industries , Inc. ( Nasdaq : UFPI ) today announced record net sales of $ 2.7 billion for the second quarter of 2021 , a 117 percent increase over the second quarter of 2020 , and record net earnings attributable to controlling interest of $ 173 million , a 161 percent increase over the same period of 2020. The company also reported record EPS of $ 2.78 per diluted share compared to $ 1.08 in the second quarter of last year . Recent acquisitions contributed $ 455 million to net sales and $ 0.17 to EPS . " In the last year and a half , UFP Industries has been tested by an unprecedented economic disruption and the most turbulent supply and pricing changes in our industry's history . Despite those challenges , we have continued to improve our business and serve customers without disruption , " said CEO Matthew J. Missad . " We continue to break records with our financial performance , a feat I attribute to the hard work of our employees , our new market - focused organizational structure , and our balanced business model , which allows us to sell into a variety of diverse markets . Another key contributor to our success is our improved pricing model and managed inventory programs , which allow us to mitigate the impact of lumber market fluctuations like those we experienced during the second quarter . " Second Quarter 2021 Highlights ( comparisons on a year - over - year basis ) : • Net sales of $ 2.7 billion increased 117 percent due to a 70 percent increase in selling prices , a 36 percent unit increase from acquisitions , and an 11 percent increase in organic unit sales . • Earnings from operations of $ 236.9 million increased 157 percent , including the impact of an inventory valuation reserve . Management evaluated the impact of falling lumber prices on its products sold with a variable price tied to the lumber market , primarily in its ProWood and Sunbelt wood pressure - treating operations . As a result of its evaluation , a lower of cost or net realizable value reserve was recorded , which reduced the value of inventory and gross profits by approximately $ 23 million . The company's vendor - managed inventory programs and ability to shift lumber inventory to business units with high demand and volume requirements helped mitigate the impact of the decline in prices on variable - priced products , particularly in its ProWood business unit . • An increase in SG & A of nearly $ 71 million , or 62 percent , is largely attributable to recent acquisitions ( $ 15 million , including amortization expense of $ 1.5 million ) and increases in bonus and sales compensation resulting from increased profitability ( up $ 33 million and $ 9 million , respectively , over 2020 ) . SG & A as a percentage of gross profit improved from 56 percent in 2020 to 44 percent in 2021 , as the company continues to focus on leveraging its cost structure as it grows . • New product sales of $ 232.1 million increased 61 percent . • Adjusted EBITDA of $ 261.5 million increased 137 percent and the adjusted EBITDA margin expanded by 80 basis points to 9.7 percent . UFP Industries maintains a strong balance sheet with liquidity of approximately $ 288 million at the end of the second quarter despite an increase in our seasonal investment in net working capital of $ 444 million , which resulted from unprecedentedly high lumber prices and market demand . Net debt increased to $ 562 million from a net cash position of $ 37 million at the end of the second quarter of 2020 , primarily due to these factors and the acquisitions of PalletOne and Spartanburg Forest Products . Management anticipates that as lumber prices and seasonal demand normalize , the increase in net working capital will be converted to cash , providing significant capital available to pursue growth opportunities and returns to shareholders through its dividend and share repurchase activities . " We remain optimistic about the rest of this year and our prospects in 2022 , " said Missad . " We expect market conditions to normalize during the second half of 2021. While falling lumber prices and more normalized demand create challenging year - over - year profitability comparisons for our retail segment , the stabilized lumber market should benefit our industrial and construction segments . Furthermore , we expect all of our segments to benefit from more stable pricing in 2022. In addition , our industrial and retail segments should continue to benefit from the integration of our recent acquisitions of PalletOne and its subsidiary , Sunbelt Forest Products , as well as Spartanburg Forest Products . " By business segment , the company reported the following second quarter 2021 results : UFP Retail Solutions • $ 1.26 billion in net sales , up 107 percent over the second quarter of 2020 due to a 59 percent increase in selling prices and a 48 percent unit increase due to the acquisitions of Sunbelt Forest Products and Spartanburg Forest Products . Organic unit sales fell 4 percent due to a 17 percent decline in the ProWood business unit . Organic growth was achieved by UFP - Edge ( up 27 percent ) , Deckorators ( up 11 percent ) , and Outdoor Essentials ( up 6 percent ) , due in part to expanded operational capacity . Additional capacity for each of these product lines is expected to come online in 2022. New product sales grew 32 percent , driven by UFP - Edge shiplap and trim , ProWood Fire Retardant treated lumber , and Outdoor Essentials fencing and picnic tables . • Gross profit dollars for the retail segment grew 47 percent . Acquisitions contributed approximately $ 3.5 million , or 4 percent , to the increase and were significantly impacted by the inventory valuation reserve . UFP Industrial