UFP Technologies Announces Record Q1 2021 Results
May 04 2021 - 8:00AM
UFP Technologies, Inc. (Nasdaq: UFPT), an innovative designer and
custom manufacturer of components, subassemblies, products, and
packaging primarily for the medical market, today reported net
income of $4.2 million or $0.55 per diluted common share
outstanding for its first quarter ended March 31, 2021,
compared to net income of $3.9 million or $0.52 per diluted common
share outstanding for the same quarter in 2020. Sales for the first
quarter were $48.6 million compared to 2020 first quarter sales of
$48.3 million.
"I am very pleased with our Q1 results for a number of reasons,”
said R. Jeffrey Bailly, Chairman & CEO. “Our medical market
showed notable progress versus the last two quarters of 2020. While
medical sales are still below where they were before the Covid
pandemic, they improved from a 19.4% decrease in Q4 2020 to an
11.5% decrease in Q1, as patients are again beginning to schedule
the elective procedures that are key to our overall medical
strategy. Another positive sign is that our Product Development
business grew 51% vs. the prior year, which bodes well for future
medical manufacturing revenue.”
“Overall, revenue for the quarter exceeded prior year results
for the first time since the pandemic began,” Bailly said. “We saw
especially strong growth in the Aerospace & Defense and
Consumer markets, 68% and 62%, respectively, as we ramped up
production on several important new programs.”
“Along with the revenue increase, our reduced cost structure
generated improved bottom line results,” Bailly added. “This impact
will be amplified as the pandemic diminishes and
higher-gross-margin medical sales rebound. In addition, we
continued to make progress on our strategic initiatives related to
acquisitions, low-cost country manufacturing, and efficiency
improvement, all of which leave us bullish about the future.”
Financial Highlights for Q1 2021
- Overall sales grew 0.7% to $48.6
million.
- Sales to the medical market declined
11.5%. Sales to the aerospace & defense and automotive markets
increased 68.2% and 1.0%, respectively. All other sales (consumer,
electronics, and industrial) increased 31.5%.
- Gross profit as a percentage of sales
decreased to 25.9% compared to 26.6% in the first quarter of
2020.
- Selling, general and administrative
expenses ("SG&A") as a percentage of sales was 15.0% compared
to 16.1% in the first quarter of 2020.
- Operating income was $5.3 million
compared to $5.1 million in the first quarter of 2020.
- Net income was $4.2 million compared to
$3.9 million in the first quarter of 2020.
About UFP Technologies, Inc.UFP Technologies is
an innovative designer and custom manufacturer of components,
subassemblies, products, and packaging primarily for the medical
market. Utilizing highly specialized foams, films, and plastics, we
convert raw materials through laminating, molding, radio frequency
welding and fabricating techniques. We are diversified by also
providing highly engineered solutions to customers in the aerospace
& defense, automotive, consumer, electronics, and industrial
markets.
Forward Looking StatementsThis 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, but are not
limited to: statements regarding the anticipated effects on us of
the COVID-19 pandemic, including with respect to demand for our
products; statements regarding anticipated trends in the different
markets in which we compete and expectations regarding customer
demand; expectations regarding our liquidity and business
opportunities; statements about our growth potential and strategies
for growth; and any statements implying that we may be able to
sustain or increase sales, earnings and earnings per share or
sales, earnings and earnings per share growth rates. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties that could adversely affect our business and
prospects, and otherwise cause actual results to differ materially
from those anticipated by such forward-looking statements, or
otherwise, including without limitation: the severity and duration
of the COVID-19 pandemic and its impact on the markets in which we
participate, including its impact on our customers, suppliers and
employees, as well as the U.S. and worldwide economies; the timing,
scope and effect of further governmental, regulatory, fiscal,
monetary and public health responses to the COVID-19 pandemic;
risks relating to decreased, including substantially decreased,
demand for our products; risks relating to the potential closure of
any of our facilities or the unavailability of key personnel or
other employees; risks that our inventory or cash reserves may be
insufficient; risks relating to the identification of suitable
acquisition candidates and the successful, efficient execution of
acquisition transactions and integration of any acquisition
candidates; risks and uncertainties associated with increasing
sales, earnings and earnings per share, as well as other risks and
uncertainties that are detailed in the documents we file with the
SEC. Accordingly, actual results may differ materially. Readers are
referred to the documents we file with the SEC, specifically the
last report on Form 10-K. The forward-looking statements contained
herein speak only of our expectations as of the date of this press
release. We expressly disclaim any obligation or undertaking to
release publicly any updates or revisions to any such statement to
reflect any change in our 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 |
|
March 31 |
|
|
2021 |
|
|
|
2020 |
|
Net
sales |
$ |
48,599 |
|
|
$ |
48,277 |
|
Cost of
sales |
|
35,990 |
|
|
|
35,454 |
|
Gross profit |
|
12,609 |
|
|
|
12,823 |
|
SG&A |
|
7,309 |
|
|
|
7,752 |
|
Gain on sale
of fixed assets |
|
- |
|
|
|
(4 |
) |
Operating income |
|
5,300 |
|
|
|
5,075 |
|
Interest
expense, net |
|
16 |
|
|
|
16 |
|
Other
(income) expense |
|
(10 |
) |
|
|
327 |
|
Income before income taxes |
|
5,294 |
|
|
|
4,732 |
|
Income
taxes |
|
1,131 |
|
|
|
841 |
|
Net income |
$ |
4,163 |
|
|
$ |
3,891 |
|
|
|
|
|
|
|
|
|
Net income
per share |
$ |
0.55 |
|
|
$ |
0.52 |
|
Net income
per diluted share |
$ |
0.55 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
7,507 |
|
|
|
7,457 |
|
Weighted
average diluted common shares outstanding |
|
7,570 |
|
|
|
7,538 |
|
|
|
|
|
|
|
|
|
Consolidated Condensed Balance
Sheets(in thousands)(Unaudited)
|
March
31, |
|
December
31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Assets: |
|
|
|
Cash and cash equivalents |
$ |
25,377 |
|
|
$ |
24,234 |
|
Receivables, net |
|
30,018 |
|
|
|
26,428 |
|
Inventories |
|
20,016 |
|
|
|
18,642 |
|
Other current assets |
|
2,630 |
|
|
|
2,560 |
|
Net property, plant, and equipment |
|
53,649 |
|
|
|
53,755 |
|
Goodwill |
|
51,838 |
|
|
|
51,838 |
|
Intangible assets, net |
|
19,404 |
|
|
|
19,718 |
|
Other assets |
|
6,248 |
|
|
|
6,029 |
|
Total assets |
$ |
209,180 |
|
|
$ |
203,204 |
|
Liabilities
and equity: |
|
|
|
Accounts payable |
|
5,977 |
|
|
|
4,121 |
|
Other current liabilities |
|
10,691 |
|
|
|
11,016 |
|
Other liabilities |
|
11,693 |
|
|
|
11,174 |
|
Total liabilities |
|
28,361 |
|
|
|
26,311 |
|
Total stockholders' equity |
|
180,819 |
|
|
|
176,893 |
|
Total liabilities and stockholders' equity |
$ |
209,180 |
|
|
$ |
203,204 |
|
|
|
|
|
Contact: Ron Lataille978-234-0926
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