UFP Technologies Announces Q3 Results

  UFP Technologies Announces Q3 Results

Business Wire

GEORGETOWN, Mass. -- November 01, 2012

UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and
component products, today reported net income of $2.6 million or $0.37 per
diluted common share outstanding for its third quarter ended September 30,
2012, 6.6% higher than net income of $2.4 million or $0.35 per diluted common
share outstanding for the same period in 2011. Sales for the third quarter of
2012 were $32.0 million, 3.9% higher than 2011 third quarter sales of
$30.8million. Net income for the nine-month period ended September 30, 2012,
was $7.7 million or $1.09 per diluted common share outstanding, 4.8% higher
than net income of $7.3 million or $1.05 per diluted common share outstanding
for the same period of 2011. Sales for the nine-month period ended September
30, 2012, were $97.6 million or 1.9% higher than sales of $95.8 million in the
same period of 2011.

“I am pleased with our third quarter results, particularly our nearly 25% gain
in operating income driven by improved gross margins,” said R. Jeffrey Bailly,
Chairman & CEO. “We’ve seen a dramatic increase in demand for our molded fiber
solutions, due to innovative new designs that allow us to protect heavier
products, thus expanding our market opportunities. With our new state-of-the
art molded fiber equipment now online in Iowa, and more capacity coming in the
fourth quarter, we are well positioned to meet this growing demand. Looking
ahead, we also expect continued growth in our medical business, partially
offset by anticipated softening demand in military applications.”

“In other news, we’ve decided to cease factory operations at our Ventura,
California plant in the fourth quarter,” Bailly added. “In keeping with our
goal to improve efficiency by maintaining fewer, larger plants, we will
consolidate the Ventura foam business into our nearby Rancho Dominguez plant
and move its beauty business to our plant in El Paso, Texas.”

“We have also seen an uptick in potential acquisition activity,” said Bailly.
“We are in the early stages of reviewing several opportunities. With $31
million in cash as of the end of the third quarter and a strong balance sheet,
we are positioned to respond quickly if we identify an appropriate strategic
acquisition.”

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 & defense,
electronics, consumer, and industrial 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 and
military markets, expectations regarding customer demand for the Company's
molded fiber product line, anticipated advantages the Company expects to
realize from its investments and capital expenditures, including the
development of and investments in its molded fiber product line, expectations
regarding the manufacturing capacity of the Company’s new production
equipment, anticipated advantages relating to the Company’s decision to cease
operations at its Ventura, California plant and to consolidate manufacturing
in other facilities, 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 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 Statements of Income
($ in thousands, except Per Share Data)
                                                               
                             (Unaudited)
                             Three Months Ended        Nine Months Ended
                             30-Sep-12    30-Sep-11    30-Sep-12    30-Sep-11
Net sales                    $ 31,967     $ 30,762     $ 97,592     $ 95,767
Cost of sales                 22,741     22,278     69,474     68,478 
Gross profit                   9,226        8,484        28,118       27,289
SG&A                           5,156        5,220        16,066       16,628
Gain on sale of assets        -          -          (12    )    (834   )
Operating income               4,070        3,264        12,064       11,495
Interest expense, other       (14    )    (6     )    (45    )    (19    )
income & expenses
Income before income taxes     4,056        3,258        12,019       11,476
Income taxes                  1,460      819        4,327      3,701  
Net income from                2,596        2,439        7,692        7,775
consolidated operations
Net income attributable to    -          (4     )    -          (433   )
noncontrolling interests
Net income attributable to   $ 2,596     $ 2,435     $ 7,692     $ 7,342  
UFP Technologies, Inc.
Weighted average shares        6,721        6,511        6,668        6,457
outstanding
Weighted average diluted       7,075        6,999        7,055        6,985
shares outstanding
Per Share Data
Net income per share         $ 0.39       $ 0.37       $ 1.15       $ 1.14
outstanding
Net income per diluted       $ 0.37       $ 0.35       $ 1.09       $ 1.05
share outstanding
                                                                             


Consolidated Condensed Balance Sheets
($ in thousands)
                                                        
                                             30-Sep-12     31-Dec-11
Assets:                                      (unaudited)
Cash                                         $   31,155    $  29,849
Receivables, net                                 16,968       15,619
Inventories                                      9,019        9,759
Other current assets                             2,645        2,814
Net property, plant, and equipment               19,401       13,346
Other assets                                    8,340       8,334
Total assets                                 $   87,528    $  79,721
Liabilities and equity:
Short-term debt                              $   581       $  581
Accounts payable                                 3,645        3,344
Other current liabilities                        5,631        5,540
Long-term debt                                   5,203        5,638
Other liabilities                               3,096       2,633
Total liabilities                                18,156       17,736
Total equity                                    69,372      61,985
Total liabilities and stockholders' equity   $   87,528    $  79,721

Contact:

UFP Technologies, Inc.
Ron Lataille, 978-352-2200
www.ufpt.com
 
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