UFP Technologies Announces 2020 Results
March 04 2021 - 9:00AM
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 $13.4 million or $1.77 per diluted common share
outstanding for its year ended December 31, 2020, compared to net
income of $19.8 million or $2.63 per diluted common share
outstanding for 2019. Sales for 2020 were $179.4 million compared
to 2019 sales of $198.4 million.
For its fourth quarter ended December 31, 2020,
the Company reported net income of $4.2 million or $0.55 per
diluted common share outstanding, compared to $5.8 million or
$0.77 per diluted common share outstanding in the same period of
2019. Sales for the fourth quarter 2020 were $45.2 million versus
2019 fourth quarter sales of $50.3 million.
"I am proud of our performance in 2020 and
excited about our future," said R. Jeffrey Bailly, Chairman &
CEO. "Our team did a great job responding to the Covid-19 pandemic,
reorganizing our factories to keep our staff and visitors safe;
smoothly managing supply chain issues while continuing to meet our
customers' critical needs; taking millions of dollars in costs out
of the business; and improving our cash balance by more than $20
million. Sales for the year declined 9.6%, due to a 6.8% drop in
medical sales coupled with a 19.1% decline in our Advanced
Components business. However, our Product Development
business grew by 63%, which bodes well for future medical
manufacturing revenue. Medical sales were down primarily due to a
drop in elective surgeries. We expect these to return to
pre-pandemic levels by Q4 2021 and then to grow due to pent-up
demand. And, although all of our markets declined in the second and
third quarters, we saw a strong rebound in the consumer and
aerospace & defense markets by the end of the year."
"Operating income declined about 32%," Bailly
continued. “However, significant cost-cutting and efficiency
improvements throughout the year helped to generate a steady
improvement in gross margins from 23.3% in Q2, to 24.3% in Q3, to
25.2% in Q4. I am confident that millions of dollars in savings
from these cost-cutting initiatives will be permanent and, when
sales return to pre-pandemic levels, we will be a stronger, more
profitable company."
"We remain committed to our acquisition growth
strategy and our disciplined approach to vetting candidates,"
Bailly added. "We continue to evaluate opportunities that can
increase our value to customers by adding new capabilities,
differentiated materials, strategic geographies, or synergistic
cost savings.""With our strong balance sheet including $28 million
currently in cash, $50 million line of credit, robust pipeline of
both internal and external growth opportunities, and improved
business outlook, we remain very bullish about our future," Bailly
said.
Financial Highlights:
- Sales for the
fourth quarter decreased 10.2% to $45.2 million, from $50.3 million
in the same period of 2019. Sales for the full year of 2020
decreased 9.6% to 179.4 million, from $198.4 million in the same
period of 2019.
- Fourth quarter
sales to the medical market decreased 19.4%. Sales to the aerospace
& defense market increased 22.1% while sales to the automotive
market decreased 6.1%. All other sales (consumer, electronics, and
industrial) increased 15.3%.
- Full year 2020
sales to the medical market decreased 6.8%. Sales to the aerospace
& defense and automotive markets decreased 8.4% and 27.0%,
respectively. All other sales (consumer, electronics, and
industrial) decreased 10.5%.
- Gross profit as a
percentage of sales (“gross margin”) decreased to 25.2% for the
fourth quarter, from 27.4% in the same quarter of 2019. Gross
margin for the full year of 2020 decreased to 24.9%, from 27.2% in
the same period of 2019.
- Selling, general
and administrative expenses (“SG&A”) for the fourth quarter
decreased 10.5% to $6.3 million compared to $7.0 million in the
same quarter of 2019. Full year 2020 SG&A decreased 6.0% to
$27.5 million, from $29.3 million in the same period of 2019.
- For the fourth
quarter, operating income decreased to $4.9 million, from $6.7
million in the same quarter of 2019. Full year 2020 operating
income decreased to $16.7 million, from $24.7 million in the same
period of 2019.
- Net income
decreased to $4.2 million in the fourth quarter, from $5.8 million
in the same period of 2019. Full year 2020 net income
decreased to $13.4 million, from $19.8 million in the same
period of 2019.
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, UFP converts raw materials
through laminating, molding, radio frequency welding and
fabricating techniques. The Company is diversified by also
providing highly engineered solutions to customers in the aerospace
& defense, automotive, consumer, electronics and industrial
markets.
Forward-Looking Statements
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, but are not limited to, statements about the
Company’s prospects; statements about the potential further impact
the novel coronavirus ("COVID-19") pandemic may have on the
Company’s business, financial condition and results of operations,
including with respect to the different markets in which the
Company participates, the demand for its products, the well-being
and availability of the Company’s employees, the continuing
operation of the Company’s locations, the Company’s efforts to
address the pandemic, including regarding the safety of its
employees, the maintenance of its facilities and the sufficiency of
the Company’s supply chain, inventory, liquidity and capital
resources, including increased costs in connection with such
efforts, the impact of the pandemic on the businesses of the
Company’s suppliers and customers, and the overall impact the
pandemic may have on the Company’s financial results in 2021;
statements about the Company’s acquisition strategies and
opportunities and the Company’s growth potential and strategies for
growth; expectations regarding customer demand; expectations
regarding the Company’s liquidity and capital resources, including
the sufficiency of its cash reserves and the availability of
borrowing capacity to fund operations and/or potential future
acquisitions; anticipated revenues and the timing of such revenues;
anticipated trends and potential advantages in the different
markets in which the Company competes, including the medical,
aerospace and defense, automotive, consumer, electronics, and
industrial markets, and the Company’s plans to expand in certain of
its markets; and any indication that the Company may be able to
sustain or increase its sales, earnings or earnings per share, or
its sales, earnings or earnings per share growth rates.
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 |
|
December 31 |
|
December 31 |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Net
sales |
$ |
45,153 |
|
|
$ |
50,261 |
|
|
$ |
179,373 |
|
|
$ |
198,381 |
|
Cost of
sales |
|
33,769 |
|
|
|
36,490 |
|
|
|
134,689 |
|
|
|
144,422 |
|
Gross profit |
|
11,384 |
|
|
|
13,771 |
|
|
|
44,684 |
|
|
|
53,959 |
|
Selling,
general and administrative expenses |
|
6,287 |
|
|
|
7,025 |
|
|
|
27,493 |
|
|
|
29,251 |
|
Loss on
disposal of fixed assets |
|
160 |
|
|
|
- |
|
|
|
459 |
|
|
|
- |
|
Operating income |
|
4,937 |
|
|
|
6,746 |
|
|
|
16,732 |
|
|
|
24,708 |
|
Interest
expense, net |
|
(17 |
) |
|
|
(84 |
) |
|
|
(83 |
) |
|
|
(674 |
) |
Other
(expense) income |
|
(4 |
) |
|
|
73 |
|
|
|
(366 |
) |
|
|
(388 |
) |
Income before income tax expense |
|
4,916 |
|
|
|
6,735 |
|
|
|
16,283 |
|
|
|
23,646 |
|
Income tax
expense |
|
744 |
|
|
|
958 |
|
|
|
2,914 |
|
|
|
3,896 |
|
Net income |
$ |
4,172 |
|
|
$ |
5,777 |
|
|
$ |
13,369 |
|
|
$ |
19,750 |
|
|
|
|
|
|
|
|
|
Net income
per share outstanding |
$ |
0.56 |
|
|
$ |
0.78 |
|
|
$ |
1.79 |
|
|
$ |
2.66 |
|
Net income
per diluted share outstanding |
$ |
0.55 |
|
|
$ |
0.77 |
|
|
$ |
1.77 |
|
|
$ |
2.63 |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
7,496 |
|
|
|
7,439 |
|
|
|
7,484 |
|
|
|
7,424 |
|
Weighted
average diluted shares outstanding |
|
7,574 |
|
|
|
7,545 |
|
|
|
7,566 |
|
|
|
7,516 |
|
Consolidated Condensed Balance
Sheets(in thousands)(unaudited)
|
December
31, |
|
December
31, |
|
2020 |
|
2019 |
|
|
|
|
Assets: |
|
|
|
Cash and cash equivalents |
$ |
24,234 |
|
$ |
3,743 |
Receivables, net |
|
26,428 |
|
|
28,648 |
Inventories |
|
18,642 |
|
|
18,276 |
Other current assets |
|
2,560 |
|
|
2,583 |
Net property, plant, and equipment |
|
53,755 |
|
|
56,739 |
Goodwill |
|
51,838 |
|
|
51,838 |
Intangible assets, net |
|
19,718 |
|
|
20,975 |
Other assets |
|
6,029 |
|
|
5,956 |
Total assets |
$ |
203,204 |
|
$ |
188,758 |
Liabilities
and equity: |
|
|
|
Accounts payable |
|
4,121 |
|
|
4,577 |
Other current liabilities |
|
11,016 |
|
|
12,207 |
Other liabilities |
|
11,174 |
|
|
9,983 |
Total liabilities |
|
26,311 |
|
|
26,767 |
Total equity |
|
176,893 |
|
|
161,991 |
Total liabilities and stockholders' equity |
$ |
203,204 |
|
$ |
188,758 |
Ufp Technologies (NASDAQ:UFPT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ufp Technologies (NASDAQ:UFPT)
Historical Stock Chart
From Apr 2023 to Apr 2024