UFP
Technologies, Inc. (Nasdaq: UFPT), an innovative designer and custom
converter of foams, plastics, composites and natural fiber materials,
today reported net income of $7.6 million or $1.05 per diluted common
share outstanding for its fiscal year ended December 31, 2014, as
compared to net income of $11.3 million or $1.59 per diluted common
share outstanding for its 2013 fiscal year. Excluding restructuring
costs of approximately $1.6 million, net income was $8.7 million or
$1.21 per diluted common share outstanding. Sales for 2014 were $139.3
million, as compared to 2013 sales of $139.2 million.
For its fourth quarter ended December 31, 2014, the Company reported net
income of $1.6 million or $0.22 per diluted common share outstanding, as
compared to net income of $3.4 million or $0.47 per diluted common share
outstanding in the same period of 2013. Excluding restructuring costs of
approximately $0.5 million, net income was $2.0 million or $0.27 per
diluted common share outstanding. Sales for the fourth quarter 2014 were
$35.3 million versus 2013 fourth quarter sales of $35.0 million.
“Our 2014 results are largely a reflection of the significant
investments we have made to strengthen our platform and position UFP for
long-term profitable growth,” said R. Jeffrey Bailly, Chairman & CEO.
“In 2014, we completed major plant consolidations in the Midwest and
California; relocated our Texas operations into a newly acquired
building; and started up a new molded fiber operation in that same
facility to service growing customer demand in the Southwest.”
“In late January 2015, we also purchased a 137,000-square-foot factory
in Massachusetts, in which we plan to combine many of our Northeast
operations,” Bailly continued. “As with all our regional consolidations,
we expect significant improvements in operating efficiencies once this
effort is complete.”
“In addition, after converting four more plants to our new ERP system in
2014, we will complete our company-wide implementation in 2015,” said
Bailly. “All these strategic moves are aimed at accelerating growth and
improving efficiency. Looking forward, we anticipate continued growth in
our medical business, coupled with increasing demand for our molded
fiber products. We also expect steadily improving results in our new
Texas operation as we quickly ramp up sales.”
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,
California and Northeast 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,
anticipated advantages the Company expects to realize as a result of its
new enterprise resource planning software system, 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, and 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.
Consolidated Condensed Statement of Income (in
thousands, except per share data) (unaudited)
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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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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35,267
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$
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34,993
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$
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139,307
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$
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139,223
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Cost of sales
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26,654
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23,763
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102,427
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98,209
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Gross profit
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8,613
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11,230
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36,880
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41,014
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SG&A
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5,685
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5,905
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23,847
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23,605
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Restructuring costs
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460
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-
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1,556
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-
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(Gain) loss on sale of fixed assets
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(14
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)
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-
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(84
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)
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11
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Operating income
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2,482
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5,325
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11,561
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17,398
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Interest expense
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(40
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)
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(76
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)
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(108
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)
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(205
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)
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Other income
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111
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-
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312
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-
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Income before income taxes
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2,553
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5,249
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11,765
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17,193
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Income taxes
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982
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1,872
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4,206
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5,917
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Net income from consolidated operations
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$
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1,571
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$
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3,377
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$
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7,559
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$
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11,276
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Net income per share outstanding
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$
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0.22
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$
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0.49
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$
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1.08
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$
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1.65
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Net income per diluted share outstanding
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$
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0.22
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$
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0.47
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$
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1.05
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$
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1.59
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Weighted average shares outstanding
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7,059
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6,888
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7,028
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6,824
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Weighted average diluted shares outstanding
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7,192
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7,133
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7,175
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7,105
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Consolidated Condensed Balance Sheets (in thousands) (unaudited)
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December 31, 2014
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December 31, 2013
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Assets:
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Cash
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$
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34,052
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$
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37,303
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Receivables
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16,470
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17,032
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Inventories
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12,893
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11,048
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Other current assets
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4,998
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3,337
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Net property, plant, and equipment
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34,843
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25,507
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Other assets
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10,434
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10,681
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Total assets
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$
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113,690
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$
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104,908
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Liabilities and equity:
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Short-term debt
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$
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993
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$
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976
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Accounts payable
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5,398
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3,081
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Other current liabilities
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5,222
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8,265
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Long-term debt
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|
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1,873
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|
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2,867
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Other liabilities
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5,212
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|
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4,129
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Total liabilities
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|
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18,698
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19,318
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Total equity
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94,992
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85,590
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Total liabilities and stockholders' equity
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$
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113,690
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$
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104,908
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2014 EARNINGS UFPT
Copyright Business Wire 2015