Universal Forest Products Inc. (NASDAQ:UFPI) Q1 2015 Earnings Conference Call - Final Transcript
Apr 26, 2015 • 08:30 am ET
Good day, ladies and gentlemen, and welcome to the Quarter One 2015 Universal Forest Products, Incorporated Earnings Conference Call. My name is Tracy, and I'll be your operator for today. [Operator Instructions]
I would like now to turn the call over to Lynn Afendoulis, Director of Corporate Communication. Please proceed, ma'am.
Welcome to the Universal Forest Products, Incorporated first quarter 2015 conference call. Hosting the call today are CEO, Matt Missad and CFO, Mike Cole. Matt and Mike will offer prepared remarks and then we'll open up the call for questions. This conference call is available simultaneously and in its entirety to all interested investors and news media through a webcast at www.upfi.com. A replay will also be available at that website through May 17, 2015.
Before I turn the call over to Matt Missad, let me remind you that yesterday's press release and today's presentations made by our executives include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, those factors identified in the press release and in our filings with the Securities and Exchange Commission.
At this time, I would like to turn the call over to Matt Missad.
Matthew J. Missad
Thank you, Lynn, and good morning, ladies and gentlemen.
I'd like to thank you for taking the time to join us on our first quarter of 2015 conference call. We are walking on sunshine today and feeling very, very good about a terrific first quarter result. Thank you again to the employees of the Universal family of companies for continuing to deliver outstanding performance. The quarter itself was a bit of a roller coaster ride. January was good. February was a struggle, due in large part to weather issues, and March was a record profit month for UFPI.
Let's take a look at our key indicators. Starting with sales, first quarter sales were $633 million, a 14.4% increase over 2014. Sales increased in each of our end markets with retail up 14.4%, construction up 5.9%, and industrial up 23%. The sales increase greatly exceeded our stated target of 4 percentage points to 6 percentage points more than positive GDP growth.
Moving to the lumber market. The overall lumber market trended down throughout most of the quarter before firming up the last two weeks of the quarter. SPF remained at a lower level and it fell more than Southern Yellow Pine. While Southern Yellow Pine declined during most of the quarter, it recovered by quarter end.
Year-over-year pricing Southern Yellow Pine was up slightly from 2014, while SPF remains well below prior-year pricing levels. And OSB and other panel products, but primarily OSB, still is well below historical price levels and absent significant improvement in demand or a reduction in supply, pricing for OSB should remain low.
Gross margin for the quarter was 12.57%