UFP
Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and
component products, today reported net income of $1.9 million or $0.26
per diluted common share outstanding for its second quarter ended June
30, 2014, compared to net income of $3.0 million or $0.42 per diluted
common share outstanding for the same period in 2013. Sales for the
second quarter were $34.0 million compared to second quarter 2013 sales
of $35.8 million. Net income for the six-month period ended June 30,
2014, was $3.9 million or $0.55 per diluted common share outstanding
compared to $5.0 million or $0.71 per diluted common share outstanding
for the same period of 2013. Sales for the six-month period ended June
30, 2014, were $68.6 million, compared to sales of $69.5 million for the
same period in 2013.
“Our Q2 results are down from last year, due in part to
softer-than-expected military sales,” said R. Jeffrey Bailly, Chairman &
CEO. “Results were also impacted by several internal initiatives we are
undertaking to accelerate sales growth and position our Company for
long-term success. These include consolidating factories in both
Michigan and California; establishing a new molded fiber plant and
moving our factory in Texas; implementing a new ERP system to enhance
our operation in a number of different ways; and making structural
changes to our Sales and Engineering teams to improve efficiency and
drive growth.”
“While these initiatives will have a short-term negative financial
impact, we believe they are important strategic investments that will
strengthen our platform and serve us well over the long term,” said
Bailly. “For example, we estimate that both factory consolidations will
have paybacks of two years or less.”
“Looking ahead, we expect stronger sales in the second half of the
year,” Bailly added. “And with new Sales and Engineering talent now in
place, we expect to ramp up our pipeline of new opportunities as well.
We also continue to search for strategic acquisitions that will help
increase the value we bring our customers. With our seasoned management
team and strong balance sheet, we are well positioned to act quickly
when the right opportunity is identified.”
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
relating to the Company’s decisions to consolidate its Midwest and
California facilities and the expected costs savings and efficiencies
associated therewith, anticipated advantages of maintaining fewer,
larger plants, 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 manufacturing capacity and efficiencies of the Company’s
new production equipment, statements about the Company’s acquisition
opportunities and strategies, its 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 expected production capacity, risks and
uncertainties associated with plant closures and expected efficiencies
from consolidating manufacturing, the identification of suitable
acquisition candidates and the successful, efficient execution of
acquisition transactions and integration of any such acquisition
candidates, as well as other risks and uncertainties that are detailed
in the documents filed by the Company with the Securities and Exchange
Commission (“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.
UFP Technologies, Inc. Q2 2014 earnings
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Consolidated Condensed Statement of Income
(in thousands, except per share data)
(unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2014
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2013
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2014
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2013
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Net sales
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$
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34,025
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$
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35,832
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$
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68,634
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$
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69,529
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Cost of sales
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24,549
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25,113
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50,050
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49,908
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Gross profit
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9,476
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10,719
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18,584
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19,621
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SG&A
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6,466
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6,075
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12,290
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12,021
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Restructuring costs
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234
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-
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324
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-
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(Gain) loss on sale of fixed assets
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(12
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11
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(12
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11
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Operating income
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2,788
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4,633
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5,982
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7,589
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Interest expense
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(27
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(45
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(48
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(85
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Other income
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100
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-
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100
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-
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Income before income taxes
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2,861
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4,588
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6,034
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7,504
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Income taxes
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1,001
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1,606
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2,112
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2,492
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Net income from consolidated operations
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$
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1,860
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$
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2,982
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$
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3,922
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$
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5,012
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Net income per share outstanding
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$
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0.27
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$
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0.44
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$
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0.56
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$
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0.74
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Net income per diluted share outstanding
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$
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0.26
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$
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0.42
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$
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0.55
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$
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0.71
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Weighted average shares outstanding
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7,025
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6,798
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6,999
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6,783
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Weighted average diluted shares outstanding
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7,168
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7,090
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7,160
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7,089
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Consolidated Condensed Balance Sheets
(in thousands)
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June 30,
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December 31,
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2014
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2013
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Assets:
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(unaudited)
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Cash
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$
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31,960
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$
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37,303
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Receivables
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17,622
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17,032
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Inventories
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13,429
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11,048
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Other current assets
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4,562
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3,449
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Net property, plant, and equipment
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27,791
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25,507
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Other assets
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13,520
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10,681
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Total assets
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$
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108,884
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$
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105,020
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Liabilities and equity:
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Short-term debt
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$
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985
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$
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976
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Accounts payable
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4,161
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3,081
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Other current liabilities
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6,834
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8,265
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Long-term debt
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2,372
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2,867
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Other liabilities
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3,834
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4,241
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Total liabilities
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18,186
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19,430
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Total equity
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90,698
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85,590
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Total liabilities and stockholders' equity
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$
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108,884
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$
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105,020
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Copyright Business Wire 2014