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. At this time all participants are in listen-only mode. We will conduct the question-and-answer session towards the end of this conference [Operator Instructions]. I would like now to turn the call over to, Lynn Afendoulis, Director of Corporate Communication. Please proceed ma’am.

Thank you. Welcome to the Universal Forest Products Incorporated’s 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.ufpi.com. A replay will also be available at that Web site 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 this call over to Matt 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 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 rollercoaster ride; January was good; February was a struggle, due in large part to weather issues; and March was a record profit month of 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% versus 11.92% in 2014. This was a good improvement for the quarter over a somewhat weaker period in 2014, and improved product mix, coupled with improvement in our trending performance, helped…

Thanks Matt. Before reviewing the financials, I should briefly address the impact to the lumber market this quarter. Overall, lumber prices were down over 9%. However, prices for Southern Yellow Pine, which is a high percentage of our volume, were up almost 2% for the quarter year-over-year. Consequently, lumber prices had an insignificant impact on our overall selling prices and sales levels this quarter. Moving on to some income statement highlights. Our overall sales for the quarter increased 14% due to an increase in unit sales as selling prices remain flat. Unit sales increased resulting from a combination of organic and acquisition related growth, as businesses we acquired since Q1 of last year contributed 5% to our overall unit growth, while our organic growth totaled 9%. By market, sales to the retail market increased 14%, driven primarily by an increase in units shipped. Unit sales increased due to a combination of market share gains, improved demand, and our new product sales initiative. Our overall sales growth to big-box and independent retail customers was also well balanced, and grew 14% and 15% respectively. Our sales growth to the industrial market increased 23%, driven by a 22% increase in units. Recently completed acquisitions drove about 14% of our unit sales growth this quarter, while the remaining 8% organic growth resulted from share gains with existing customers and adding new customers. Our overall sales for the construction market increased 6% due to higher unit sales. Our greatest unit sales growth continues to be with customers that buy concrete-forms as we continue to gain share. Our unit sales to manufactured housing and residential construction customers increased by 5% and 2% respectively. Moving down to income statement. We’re very pleased to report our first quarter gross profit increased by 21% and over 60 basis points…

Thank you very much, Mike. Now I'd like to open it up for any questions you may have.

[Operator Instructions] First question comes from the line of Jay McCanless from Sterne Agee. Please proceed.

Good morning guys. First, the question I wanted to ask was on the SPF market. What's going on there Matt? Is that a demand issue, a supply issue? And if the comps start to turn positive and firm up, will that help you guys?

Right now, I don't know that it has a huge impact either way as long as the pricing remains stable or slowly rising. That's a good situation for us. Right now, the absolute level of it is less important than the movement in it. So, we feel like we’re in good shape with it right now, but just there is a demand issue, I believe.

And then Mike, could you repeat your commentary on big-box sales? You cut out when you were saying that.

Big-box sales growth was 14% for the quarter.

Your next question comes from the line of Steve Chercover from D. A. Davidson, Please proceed.

I also want to talk about the lumber market a little bit, because western SPF has been really weak -- now this particular weak, so it's going down. And I was wondering, can Southern Yellow Pine and Western SPF diverge in the long-run?

That’s a great question. And if you look at the investment that mills have been making lately, you can see where the investment has been going. So, I think right now it is a demand supply imbalance, probably in both of those markets. As more production comes online in Southern Yellow Pine, I would expect that to have a mitigating effect on the price of Southern Yellow Pine. I don't think it's going to do a lot for SPF though.

And I’ve heard your comment that a slowly rising lumber environment is good for UFPI. And we know that if it's falling rapidly, then you could be subject to write-downs. But your margins are better when your input costs are lower, correct?

If you look at it on certain of our fixed-price added products, that's absolutely right. The fixed price added remains the same regardless of lumber market, so at a lower market, the margin would necessarily be higher.

Are those fixed-price added products, the majority of your business similar to how Southern Yellow Pine is a bigger component of your inputs?

I think it's a significant number, and it’s -- as you look at more of the retail type items, there is a fair amount of that in retail.

Okay, just a couple of more from me please. And so clearly, you are optimistic about the year ahead, which is great. But is the relatively weak start to housing of concern or is that incorporated into your thought process?

We actually predicted a lower level than a lot of the prognosticators did for housing starts this year. So, we would benefit if housing starts actually hit the numbers that others are talking about, and we should be okay with housing starts staying kind of where they are today. Obviously, any improvement in the economy helps us.

So what are you at, like $1.1 million?

We’re less than that. We're probably closer to $1 million.

So flat versus last year, okay got it. And then one more on housing, sorry if I'm taking too much time. In a multifamily dominate single family, can you guys still prosper for instance can concrete forming offset weak framing?

I think maybe there is a misconception, a multifamily product for us is probably a better framing opportunity than single family overall. So, the mix again is not as significant as you might think for us.

So you’re doing more like townhomes than skyscrapers?

We’re not doing skyscrapers, at least not today with wood.

I don't think you make skyscrapers out of wood although -- and people talk about it, but the forming would be appropriate. Okay last question I promise. Could you tell us what the -- you were talking about non-wood related packaging. So what's the substrate that you’re using there?

Well, it can be any type of alternative materials. It could be corrugated, it could be foams, it could be plastics, in any of those types of items, it could be steel, there is a whole variety of other materials.

I have to look into that, I mean I am familiar with them, but I don’t know how you would use them. So, we’ll take that offline. Thanks a lot.

The next question comes from the line of [John Evans from J West]. Please proceed.

Can you just give us any insight, has the momentum that you saw in March continued in April? And I know you were telling like 15 days. And just what have seen relatively in April with lumber pricing, et cetera?

We see a normal takeaway for April and typically our second quarter and third quarters are better quarters. So, it is in line with what we would expect right now.

There are no further questions waiting at this time [Operator Instructions]. With no questions waiting, I would now like to turn the call back over to Matt Missad for closing remarks.

Thank you. Unlike many in our industry, we have a very strong balance sheet, plenty of capital available for well planned growth in a diverse and sustainable business model. Our cash dividend policy returns earnings to our investors, and share repurchase plan is designed to prevent significant dilution of our existing shareholders. The start of the spring selling-season reminds me of the baseball season. It’s great to get-off to a good start like our beloved Detroit Tigers. But the team that went to the pennant is the one that is consistently good. I know our team loves to win, and will work hard to do that, and because we intend to mark this our 60th year with continued success and with a great outlook for the coming years and decades. I am betting on our team, and I thank you for supporting us as well. Have a great day.