Full Press Release Details
UFP Technologies Announces Record 2010 Results
Georgetown, Mass., February 23, 2011. UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and component products, today reported net income of $9.2 million or $1.37 per diluted common share outstanding for its fiscal year ended December 31, 2010, 56% higher than net income of $5.9 million or $0.94 per diluted common share outstanding for its 2009 fiscal year. Sales for 2010 were $120.8 million, 22% higher than 2009 sales of $99.2 million.
For its fourth quarter ended December 31, 2010, the Company reported net income of $3.1 million or $0.45 per diluted common share outstanding, 6% higher than net income of $2.9 million or $0.45 per diluted common share outstanding in the same period in 2009. Sales for the fourth quarter of 2010 were $31.6 million, 9% higher than 2009 fourth quarter sales of $29.0 million.
I am extremely pleased with our 2010 results, said R. Jeffrey Bailly, Chairman & CEO. Our investments in strategic growth initiatives and successful 2009 acquisitions helped drive 22% top-line growth. This revenue growth and related economies of scale, combined with greater manufacturing efficiencies, yielded a 76% improvement in operating income. Our 56% gain in net income is particularly noteworthy because 2009 results included $840,000 in one-time acquisition gains.
Each of our recent acquisitions has expanded our capabilities and strengthened our competitive platform, Bailly continued. Our strategy is to identify acquisition candidates that are an excellent cultural fit and enhance our ability to serve customers. This, along with our internal focus on the market opportunities where our engineered solutions add the most value, has enabled us to accelerate our sales and earnings growth. Looking ahead, we believe our growing pipeline of new business opportunities and strong balance sheet, which currently includes approximately $25 million in cash, position us well to continue executing our growth strategy.
UFP Technologies is a leading designer and manufacturer of interior protective packaging and component product solutions using molded and fabricated foams, plastics, laminated composites, and natural fiber materials. The Company primarily serves the medical, automotive, computers and electronics, aerospace and defense, consumer, and industrial markets.
This news release contains forward-looking information that involves risks and uncertainties, including statements about the Company s prospects, anticipated advantages the Company expects to realize from its acquisition strategies, its participation and growth in multiple markets, its business opportunities, the Company s growth potential and strategies for growth, and any indication that the Company may be able to sustain or increase its sales and earnings or sales and earnings growth rates. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation risks associated with the identification of suitable acquisition candidates and the successful, efficient execution of acquisition transactions and integration of any such acquisition candidates, as well as other risks and uncertainties that are detailed in the documents filed by the Company with the SEC. Accordingly, actual results may differ materially. Readers are referred to the documents filed by the Company with the SEC, specifically the last reports on Forms 10-K and 10-Q. The forward-looking statements contained herein speak only of the Company s expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company s expectations or any change in events, conditions, or circumstances on which any such statement is based.
Consolidated Condensed Statements of Income
($ in thousands, except Per Share Data)
| Unaudited | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| 31-Dec-10 | 31-Dec-09 | 31-Dec-10 | 31-Dec-09 | ||||||||||
| Net sales | $ | 31,640 | $ | 29,044 | $ | 120,766 | $ | 99,231 | |||||
| Cost of sales | 22,434 | 20,093 | 86,150 | 72,512 | |||||||||
| Gross profit | 9,206 | 8,951 | 34,616 | 26,719 | |||||||||
| SG&A | 4,734 | 4,662 | 20,236 | 18,539 | |||||||||
| Operating income | 4,472 | 4,289 | 14,380 | 8,180 | |||||||||
| Gain on acquisitions | 840 | ||||||||||||
| Interest expense, other income & expenses | 139 | (46 | ) | 46 | (221 | ) | |||||||
| Income before income taxes | 4,611 | 4,243 | 14,426 | 8,799 | |||||||||
| Income taxes | 1,403 | 1,327 | 5,019 | 2,817 | |||||||||
| Net income from consolidated operations | $ | 3,208 | $ | 2,916 | $ | 9,407 | $ | 5,982 | |||||
| Net income attributable to noncontrolling interests | $ | (119 | ) | $ | (10 | ) | $ | (160 | ) | $ | (53 | ) | |
| Net income attributable to UFP Technologies, Inc. | $ | 3,089 | $ | 2,906 | $ | 9,247 | $ | 5,929 | |||||
| Weighted average shares outstanding | 6,276 | 5,920 | 6,157 | 5,830 | |||||||||
| Weighted average diluted shares outstanding | 6,875 | 6,497 | 6,749 | 6,294 | |||||||||
| Per Share Data | |||||||||||||
| Net income per share outstanding | $ | 0.49 | $ | 0.49 | $ | 1.50 | $ | 1.02 | |||||
| Net income per diluted share outstanding | $ | 0.45 | $ | 0.45 | $ | 1.37 | $ | 0.94 |
Consolidated Condensed Balance Sheets
| 31-Dec-10 | 31-Dec-09 | ||||||
| Assets: | |||||||
| Cash | $ | 24,434 | $ | 14,999 | |||
| Receivables | 14,633 | 14,218 | |||||
| Inventories | 8,044 | 7,647 | |||||
| Other current assets | 3,658 | 1,887 | |||||
| Net property, plant, and equipment | 12,575 | 12,218 | |||||
| Other assets | 8,465 | 8,483 | |||||
| Total assets | $ | 71,809 | $ | 59,452 | |||
| Liabilities and equity: | |||||||
| Short-term debt | $ | 654 | $ | 623 | |||
| Accounts payable | 5,169 | 4,274 | |||||
| Other current liabilities | 6,679 | 6,153 | |||||
| Long-term debt | 6,847 | 7,502 | |||||
| Other liabilities | 2,234 | 1,895 | |||||
| Total liabilities | 21,583 | 20,447 | |||||
| Total equity | 50,226 | 39,005 | |||||
| Total liabilities and stockholders equity | $ | 71,809 | $ | 59,452 |