Universal Forest Products, Inc (UFPI) has reported 9.63 percent rise in profit for the quarter ended Mar. 25, 2017. The company has earned $21.06 million, or $1.03 a share in the quarter, compared with $19.21 million, or $0.95 a share for the same period last year. Revenue during the quarter grew 24.04 percent to $846.13 million from $682.15 million in the previous year period. Gross margin for the quarter contracted 79 basis points over the previous year period to 14.27 percent. Total expenses were 96 percent of quarterly revenues, up from 95.32 percent for the same period last year. That has resulted in a contraction of 68 basis points in operating margin to 4 percent.
Operating income for the quarter was $33.82 million, compared with $31.91 million in the previous year period.
“The employees of Universal delivered record first-quarter sales and profits, underscoring the success of our balanced business model and targeted approach to growing our business,” said Chief executive officer Matthew J. Missad. “Those records are even more impressive if you consider we did not have the same purchasing and weather advantages we enjoyed during the first quarter of 2016.”
Operating cash flow remains negative
Universal Forest Products, Inc has spent $70.74 million cash to meet operating activities during the quarter as against cash outgo of $29.96 million in the last year period. The company has spent $70.60 million cash to meet investing activities during the quarter as against cash outgo of $12.83 million in the last year period. It has incurred capital expenditure of $16.18 million on net basis during the quarter, up 26.30 percent or $3.37 million from year ago period.
Cash flow from financing activities was $141.70 million for the quarter as against cash outgo of $1.30 million in the last year period.
Cash and cash equivalents stood at $31.02 million as on Mar. 25, 2017, down 27.97 percent or $12.04 million from $43.06 million on Mar. 26, 2016.
Debt increases substantially
Universal Forest Products, Inc has witnessed an increase in total debt over the last one year. It stood at $276.75 million as on Mar. 25, 2017, up 224.02 percent or $191.34 million from $85.41 million on Mar. 26, 2016.
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
