UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and
component products, today reported net income of $3.0 million or $0.42
per diluted common share outstanding for its second quarter ended June
30, 2013, 8.6% higher than net income of $2.7 million or $0.39 per
diluted common share outstanding for the same period in 2012. Sales for
the second quarter of 2013 were $35.8 million or 6.4% greater than 2012
second quarter sales of $33.7 million. Net income for the six-month
period ended June 30, 2013, was $5.0 million or $0.71 per diluted common
share outstanding compared to net income of $5.1 million or $0.72 per
diluted common share outstanding for the same period of 2012. Sales for
the six-month period ended June 30, 2013, were $69.5 million or 5.9%
higher than sales of $65.6 million in the same period of 2012.
“I am pleased with our second quarter progress,” said R. Jeffrey Bailly,
Chairman & CEO. “Strong sales to the medical market, increasing demand
for molded fiber applications, and a solid contribution from our recent
acquisition, Packaging Alternatives Corporation, helped to offset
declines in the military and automotive markets where sales for the
quarter fell 30% and 8%, respectively.”
“In addition, an improving book of business coupled with greater
manufacturing efficiency helped generate higher gross margins,” Bailly
continued. “We are particularly pleased with the increased efficiency of
our two new state-of-the-art molded fiber production lines and are
already considering adding a third new line to meet the steadily growing
demand.”
“Looking forward, we anticipate continued softness in Q3 in both the
military and automotive markets,” Bailly added. “However, we expect some
improvement in Q4, particularly in the military space. Overall, UFP has
a strong market position and cash on hand to capitalize on investment
opportunities as we uncover them. We continue to search for strategic
acquisitions that can increase the value we bring to customers while we
work hard to grow our sales organically and improve our operating
performance.”
UFP Technologies is a producer of innovative custom-engineered
components, products, and specialty packaging. Using foams, plastics,
composites, and natural fiber materials, the Company designs and
manufactures a vast range of solutions primarily for the medical,
automotive, aerospace and defense, and packaging markets. The UFP team
acts as an extension of our customers’ in-house research, engineering,
and manufacturing groups, working closely with them to solve their most
complex product and packaging challenges.
This news release contains statements relating to expected financial
performance and/or future business prospects, events and plans that are
forward-looking statements. Such statements include, without limitation,
statements about the Company’s prospects, anticipated trends in the
different markets in which the Company competes, including the molded
fiber, medical, military and automotive markets, anticipated advantages
the Company expects to realize from its investments and capital
expenditures, including the development of and investments in its molded
fiber product lines, expectations regarding the Company’s new production
equipment, statements about the anticipated benefits from UFP’s
acquisition of Packaging Alternatives Corporation, expectations about
the synergies to be achieved from such acquisition, the Company’s
participation and growth in multiple markets, its business
opportunities, the Company’s growth potential and strategies for growth,
anticipated revenues and the timing of such revenues, and any indication
that the Company may be able to sustain or increase its sales and
earnings or sales and earnings growth rates. Investors are cautioned
that such forward-looking statements involve risks and uncertainties,
including without limitation risks associated with the implementation of
new production equipment in a timely, cost-efficient manner, risks that
any benefits from such new equipment may be delayed or not fully
realized, or that the Company may be unable to fully utilize its
production capacity, the consolidation of certain of manufacturing and
other operations and the internal reorganization of our sales and
engineering groups, the successful, efficient execution of acquisition
transactions and integration of any such acquisition candidates,
including Packaging Alternatives Corporation, as well as other risks and
uncertainties that are detailed in the documents filed by the Company
with the SEC. Accordingly, actual results may differ materially. Readers
are referred to the documents filed by the Company with the SEC,
specifically the last reports on Forms 10-K and 10-Q. The
forward-looking statements contained herein speak only of the Company’s
expectations as of the date of this press release. The Company expressly
disclaims any obligation or undertaking to release publicly any updates
or revisions to any such statement to reflect any change in the
Company’s expectations or any change in events, conditions, or
circumstances on which any such statement is based.
Condensed Consolidated Statements of Income
|
($ in thousands, except Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
30-Jun-13
|
|
|
30-Jun-12
|
|
|
|
30-Jun-13
|
|
|
30-Jun-12
|
Net sales
|
|
|
|
$
|
35,832
|
|
|
|
$
|
33,673
|
|
|
|
|
$
|
69,529
|
|
|
|
$
|
65,625
|
|
Cost of sales
|
|
|
|
|
25,113
|
|
|
|
|
23,982
|
|
|
|
|
|
49,908
|
|
|
|
|
46,733
|
|
Gross profit
|
|
|
|
|
10,719
|
|
|
|
|
9,691
|
|
|
|
|
|
19,621
|
|
|
|
|
18,892
|
|
SG&A
|
|
|
|
|
6,075
|
|
|
|
|
5,392
|
|
|
|
|
|
12,021
|
|
|
|
|
10,910
|
|
(Gain) loss on sale of fixed assets
|
|
|
|
|
11
|
|
|
|
|
(7
|
)
|
|
|
|
|
11
|
|
|
|
|
(12
|
)
|
Operating income
|
|
|
|
|
4,633
|
|
|
|
|
4,306
|
|
|
|
|
|
7,589
|
|
|
|
|
7,994
|
|
Interest expense, other income & expenses
|
|
|
|
|
(45
|
)
|
|
|
|
(14
|
)
|
|
|
|
|
(85
|
)
|
|
|
|
(32
|
)
|
Income before income taxes
|
|
|
|
|
4,588
|
|
|
|
|
4,292
|
|
|
|
|
|
7,504
|
|
|
|
|
7,962
|
|
Income taxes
|
|
|
|
|
1,606
|
|
|
|
|
1,545
|
|
|
|
|
|
2,492
|
|
|
|
|
2,866
|
|
Net income from consolidated operations
|
|
|
|
$
|
2,982
|
|
|
|
$
|
2,747
|
|
|
|
|
$
|
5,012
|
|
|
|
$
|
5,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
6,798
|
|
|
|
|
6,694
|
|
|
|
|
|
6,783
|
|
|
|
|
6,641
|
|
Weighted average diluted shares outstanding
|
|
|
|
|
7,090
|
|
|
|
|
7,055
|
|
|
|
|
|
7,089
|
|
|
|
|
7,046
|
|
Per Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share outstanding
|
|
|
|
$
|
0.44
|
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.74
|
|
|
|
$
|
0.77
|
|
Net income per diluted share outstanding
|
|
|
|
$
|
0.42
|
|
|
|
$
|
0.39
|
|
|
|
|
$
|
0.71
|
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-13
|
|
|
31-Dec-12
|
Assets:
|
|
|
|
(Unaudited)
|
|
|
Cash
|
|
|
|
$
|
34,271
|
|
|
$
|
33,480
|
Receivables, net
|
|
|
|
|
18,662
|
|
|
|
17,836
|
Inventories
|
|
|
|
|
10,891
|
|
|
|
9,695
|
Other current assets
|
|
|
|
|
2,321
|
|
|
|
3,483
|
Net property, plant, and equipment
|
|
|
|
|
25,085
|
|
|
|
23,318
|
Other assets
|
|
|
|
|
10,695
|
|
|
|
10,805
|
Total assets
|
|
|
|
$
|
101,925
|
|
|
$
|
98,617
|
Liabilities and equity:
|
|
|
|
|
|
|
|
Short-term debt
|
|
|
|
$
|
1,548
|
|
|
$
|
1,550
|
Accounts payable
|
|
|
|
|
3,980
|
|
|
|
4,088
|
Other current liabilities
|
|
|
|
|
5,826
|
|
|
|
7,593
|
Long-term debt
|
|
|
|
|
8,126
|
|
|
|
8,314
|
Other liabilities
|
|
|
|
|
4,018
|
|
|
|
3,811
|
Total liabilities
|
|
|
|
|
23,498
|
|
|
|
25,356
|
Total equity
|
|
|
|
|
78,427
|
|
|
|
73,261
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
101,925
|
|
|
$
|
98,617
|
Copyright Business Wire 2013