Company Website:
http://www.ufpt.com
GEORGETOWN, Mass. -- (Business Wire)
UFP
Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and
component products, today reported net income of $1.7 million or $0.23
per diluted common share outstanding for its first quarter ended March
31, 2015, as compared to net income of $2.1 million or $0.29 per diluted
common share outstanding for the same period in 2014. Sales for the
first quarter were $34.0 million, as compared to first quarter 2014
sales of $34.6 million.
“I am pleased with our continued progress in the first quarter,” said R.
Jeffrey Bailly, President & CEO. “Although most of our target markets
had a slow start, sales to our largest one, the Medical market, rose by
13%. Overall, revenue and profit trends were positive throughout the
quarter, with each month generating solid improvements.”
“We are also making excellent operational progress,” Bailly continued.
“Our Texas plant startup is proceeding very well, with a crew staffed
and trained to support round-the-clock production. Although molded fiber
plant startups are typically costly and time-consuming, our Texas fiber
operation was already profitable by the end of Q1.”
“In addition, we are making great progress with our footprint
optimization strategy,” Bailly added. “Our completed Midwest and West
Coast consolidations are generating improved results, and our Northeast
consolidation is underway. We are renovating our newly acquired
137,000-square-foot facility in Massachusetts, where we plan to combine
our current New Jersey operation with most of our Massachusetts
operations by year-end. We expect the efficiency gains and cost savings
to be significant.”
“Our pipeline of new opportunities is also improving, and we are
converting more of them into orders," Bailly said. "With all these
developments, plus our continuing initiatives to increase efficiency, I
am very optimistic about our future.”
UFP Technologies is an innovative designer and custom converter of
foams, plastics, composites and natural fiber products, principally
serving the medical, automotive, consumer, electronics, industrial and
aerospace and defense 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)
|
|
|
| |
| | | Three Months Ended March 31, |
| | | 2015 |
| 2014 |
| | | | |
|
Net sales
| | |
$
|
33,977
| | |
$
|
34,609
|
Cost of sales
| | |
|
25,339
|
| |
|
25,432
|
Gross profit
| | | |
8,638
| | | |
9,177
|
SG&A
| | | |
6,024
| | | |
5,892
|
Restructuring costs
| | | |
78
| | | |
90
|
Gain on sale of fixed assets
| | |
|
(31
|
)
| |
|
-
|
Operating income
| | | |
2,567
| | | |
3,195
|
Interest expense
| | |
|
24
|
| |
|
22
|
Income before income taxes
| | | |
2,543
| | | |
3,173
|
Income taxes
| | |
|
890
|
| |
|
1,111
|
Net income from consolidated operations
| | |
$
|
1,653
|
| |
$
|
2,062
|
| | | | |
|
Net income per share outstanding
| | |
$
|
0.23
| | |
$
|
0.30
|
Net income per diluted share outstanding
| | |
$
|
0.23
| | |
$
|
0.29
|
| | | | |
|
Weighted average shares outstanding
| | | |
7,076
| | | |
6,972
|
Weighted average diluted shares outstanding
| | | |
7,193
| | | |
7,148
|
| | | | |
|
|
Consolidated Condensed Balance Sheets (in thousands) |
|
|
| |
| |
| | | March 31, 2015 | | December 31, 2014 |
Assets:
| | |
(unaudited)
| | |
Cash
| | |
$
|
24,392
| |
$
|
34,052
|
Receivables
| | | |
18,223
| | |
16,470
|
Inventories
| | | |
12,925
| | |
12,893
|
Other current assets
| | | |
5,789
| | |
4,998
|
Net property, plant, and equipment
| | | |
42,291
| | |
34,843
|
Other assets
| | |
|
10,406
| |
|
10,434
|
Total assets
| | |
$
|
114,026
| |
$
|
113,690
|
Liabilities and equity:
| | | | | |
Short-term debt
| | |
$
|
998
| |
$
|
993
|
Accounts payable
| | | |
4,336
| | |
5,398
|
Other current liabilities
| | | |
4,502
| | |
5,222
|
Long-term debt
| | | |
1,621
| | |
1,873
|
Other liabilities
| | |
|
5,482
| |
|
5,212
|
Total liabilities
| | | |
16,939
| | |
18,698
|
Total equity
| | |
|
97,087
| |
|
94,992
|
Total liabilities and stockholders' equity
| | |
$
|
114,026
| |
$
|
113,690
|
| | | | |
|
2015 Q1 EARNINGS UFPT
Contacts:
UFP Technologies, Inc.
Ron Lataille, 978-352-2200
www.ufpt.com
Source: UFP Technologies, Inc.
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