UFP Technologies Announces Strong Q2 2021 Results
August 03 2021 - 9:03AM
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 $4.7 million or $0.62 per diluted common share
outstanding for its second quarter ended June 30, 2021,
compared to net income of $2.3 million or $0.31 per diluted common
share outstanding for the same quarter in 2020. Sales for the
second quarter were $50.7 million compared to 2020 second quarter
sales of $42.6 million. Net income for the six-month period
ended June 30, 2021 was $8.9 million or $1.17 per diluted common
share outstanding compared to $6.2 million or $0.82 per diluted
common share outstanding for the same period in 2020. Sales for the
six-month period ended June 30, 2021 were $99.3 million compared to
sales of $90.9 million for the same period in 2020.
"I am very pleased with our Q2 results," said R. Jeffrey Bailly,
Chairman & CEO. "Sales increased nearly 19% and net income more
than doubled versus the prior year. We also saw solid gains in
sequential quarterly results, as sales grew 4.2% and net income
improved 13.3% over Q1. Sales increased in every market, including
Medical, which returned to growth for the first time since the
pandemic began. Automotive and Consumer had the greatest growth,
146% and 88% respectively.”
“Our increased revenue, combined with our reduced cost
structure, generated significantly improved bottom-line results,”
Bailly added. “Gross margins improved to 26.5%; we expect them to
improve further as medical sales continue to rebound and as
patients schedule elective procedures that were delayed by
Covid-19.”
“Availability of some raw materials and direct labor shortages
remain challenging issues, but we have seen significant improvement
in our Covid-19 test results, with no current reported cases and
67% of our workforce vaccinated," Bailly said. “In addition, we’ve
continued to advance our strategic initiatives, including our goal
to provide our medical customers with a low-cost country
manufacturing option. This progress, combined with our healthy
pipeline of internal and external growth opportunities and a strong
balance sheet that includes $30 million in cash, leaves us excited
and bullish about our future."
Financial Highlights for Q2 and YTD 2021
- Sales for the second quarter increased
18.8% to $50.6 million, from $42.6 million in the same period of
2020. Year-to-date sales through June increased 9.2% to $99.3
million, from $90.9 million in the same period of 2020.
- Second quarter sales to the medical
market increased 3.3%. Sales to the aerospace & defense and
automotive markets increased 40.7% and 146.0%, respectively. All
other sales (consumer, electronics, and industrial) increased
55.0%.
- Year-to-date sales to the medical
market declined 4.0%. Sales to the aerospace & defense and
automotive markets increased 50.1% and 35.7%, respectively. All
other sales (consumer, electronics, and industrial) increased
42.6%.
- Gross profit as a percentage of sales
(“gross margin”) increased to 26.5% for the second quarter, from
23.3% in the same quarter of 2020. Gross margin for the six-month
period ended June 30, 2021 increased to 26.2% from 25.0% in the
same period of 2020.
- Selling, general and administrative
expenses (“SG&A”) for the second quarter increased 8.4% to $7.2
million in 2021 compared to $6.7 million in the same quarter of
2020. For the six-month period ended June 30, 2021, SG&A
increased slightly to $14.5 million from $14.4 million in the
same period of 2020.
- For the second quarter, operating
income increased to $6.2 million, from $3 million in the same
quarter of 2020. For the six-month period ended June 30, 2021,
operating income increased to $11.5 million, from $8.1 million in
the same period of 2020.
- Net income increased to $4.7 million in
the second quarter of 2021, from $2.3 million in the same period
of 2020. For the six-month period ended June 30, 2021 net
income increased to $8.9 million, from $6.2 million in the
same period 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 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 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 |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
Net sales |
$ |
50,655 |
|
|
$ |
42,644 |
|
$ |
99,254 |
|
|
$ |
90,921 |
Cost of sales |
|
37,241 |
|
|
|
32,695 |
|
|
73,231 |
|
|
|
68,148 |
Gross profit |
|
13,414 |
|
|
|
9,949 |
|
|
26,023 |
|
|
|
22,773 |
SG&A |
|
7,228 |
|
|
|
6,665 |
|
|
14,538 |
|
|
|
14,417 |
(Gain) Loss on sale of fixed assets |
|
(21 |
) |
|
|
290 |
|
|
(21 |
) |
|
|
286 |
Operating income |
|
6,207 |
|
|
|
2,994 |
|
|
11,506 |
|
|
|
8,070 |
Interest (income) expense, net |
|
(21 |
) |
|
|
33 |
|
|
(5 |
) |
|
|
49 |
Other expense (income) |
|
4 |
|
|
|
35 |
|
|
(7 |
) |
|
|
362 |
Income before income taxes |
|
6,224 |
|
|
|
2,926 |
|
|
11,518 |
|
|
|
7,659 |
Income taxes |
|
1,509 |
|
|
|
608 |
|
|
2,640 |
|
|
|
1,450 |
Net income |
$ |
4,715 |
|
|
$ |
2,318 |
|
$ |
8,878 |
|
|
$ |
6,209 |
|
|
|
|
|
|
|
|
Net income per share |
$ |
0.63 |
|
|
$ |
0.31 |
|
$ |
1.18 |
|
|
$ |
0.83 |
Net income per diluted share |
$ |
0.62 |
|
|
$ |
0.31 |
|
$ |
1.17 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
7,527 |
|
|
|
7,487 |
|
|
7,517 |
|
|
|
7,472 |
Weighted average diluted common shares outstanding |
|
7,573 |
|
|
|
7,532 |
|
|
7,575 |
|
|
|
7,545 |
Consolidated Condensed Balance
Sheets(in thousands)(Unaudited)
|
June 30, |
|
December 31, |
|
2021 |
|
2020 |
|
|
|
|
Assets: |
|
|
|
Cash and cash equivalents |
$ |
30,273 |
|
$ |
24,234 |
Receivables, net |
|
31,222 |
|
|
26,428 |
Inventories |
|
21,160 |
|
|
18,642 |
Other current assets |
|
3,811 |
|
|
2,560 |
Net property, plant, and equipment |
|
53,695 |
|
|
53,755 |
Goodwill |
|
51,838 |
|
|
51,838 |
Intangible assets, net |
|
19,090 |
|
|
19,718 |
Other assets |
|
6,197 |
|
|
6,029 |
Total assets |
$ |
217,286 |
|
$ |
203,204 |
Liabilities and equity: |
|
|
|
Accounts payable |
|
8,355 |
|
|
4,121 |
Other current liabilities |
|
11,284 |
|
|
11,016 |
Other liabilities |
|
11,333 |
|
|
11,174 |
Total liabilities |
|
30,972 |
|
|
26,311 |
Total stockholders' equity |
|
186,314 |
|
|
176,893 |
Total liabilities and stockholders' equity |
$ |
217,286 |
|
$ |
203,204 |
Contact: Ron Lataille978-234-0926
Ufp Technologies (NASDAQ:UFPT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Ufp Technologies (NASDAQ:UFPT)
Historical Stock Chart
From Sep 2023 to Sep 2024