UFP Technologies announces its results for the third quarter of 2021

NEWBURYPORT, Mass., November 03, 2021 (GLOBE NEWSWIRE) – UFP Technologies, Inc. (Nasdaq: UFPT), an innovative designer and custom manufacturer of components, sub-assemblies, products and packaging primarily for the medical market, announced today hui net income of $ 3.8 million or $ 0.50 per diluted common share outstanding for its third quarter ended September 30, 2021, compared to net income of $ 3.0 million or $ 0.40 per common share diluted outstanding for the same quarter in 2020. Sales for the third quarter were $ 50.7 million compared to sales of $ 43.3 million in the third quarter of 2020. The net income for the nine-month period ended September 30, 2021 was $ 12.7 million or $ 1.67 per diluted common share outstanding, compared to $ 9.2 million or $ 1.22 per common share in diluted circulation for the same peri ode in 2020. Sales for the nine-month period ended September through June 30, 2021 were $ 150.0 million compared to sales of $ 134.2 million for the same period in 2020.

“I am satisfied with our third quarter results,” said R. Jeffrey Bailly, President and CEO. “Sales increased 17%, operating profit increased 36% and we achieved double-digit growth in all markets except automotive, which continues to decline due to the shortage of electronic chips. We have also made substantial progress in our long-term strategic initiatives to expand our footprint and capabilities, and to increase our value for clients. We continued to advance our expansion in Mexico, with facility construction and equipment qualification. We recently completed the acquisition of Contech Medical, the first step in a broader acquisition strategy to help us better serve our core medical customers and their growth plans. We are also looking for other acquisition candidates to provide low cost manufacturing in locations where we currently ship millions of dollars in product.

“The team did a good job dealing with significant workforce and supply chain issues, which resulted in unusually high overtime and $ 4 million in unfulfilled orders,” added Bailly . “We continue to experience limited supplies of raw materials, as well as rising prices. However, after completing negotiations with suppliers and considering other sourcing options, we believe we can mitigate the impact of these issues with planned price increases for our customers. , in the short term, gross margins will remain below our target levels. “

“With our strong pipeline of new opportunities, our strong balance sheet and our proven customer-centric strategy, we remain very excited and optimistic about our future,” said Bailly.

Financial highlights for the third quarter and current year 2021

  • Third-quarter sales increased 17.1% to $ 50.7 million from $ 43.3 million in the same period of 2020. Year-to-date sales through September rose 11.7% to $ 150.0 million, from $ 134.2 million in the same period of 2020.
  • Third quarter sales in the medical market increased 20.5%. Sales in the aerospace and defense and automotive markets increased 14.3% and decreased 13.9%, respectively. All other sales (consumer, electronics and industrial) increased 23.9%.
  • Since the start of the year, sales in the medical market have increased by 3.2%. Sales in the aerospace and defense and automotive markets increased by 36.9% and 14.6% respectively. All other sales (consumer, electronics and industrial) increased by 35.4%.
  • Gross margin as a percentage of sales (“gross margin”) decreased to 23.7% for the third quarter, compared to 24.3% in the same quarter of 2020. Gross margin for the nine-month period ended September 30 2021 rose to 25.4% from 24.8% during the same period of 2020.
  • Selling, general and administrative (“SG&A”) expenses for the third quarter were stable at $ 6.8 million in 2021, compared to $ 6.8 million in the same quarter of 2020. For the nine-month period ended On September 30, 2021, selling and administrative expenses increased slightly to $ 21.3. million dollars compared to $ 21.2 million in the same period of 2020.
  • For the third quarter, operating income increased to $ 5.1 million from $ 3.7 million in the same quarter of 2020. For the nine-month period ended September 30, 2021, operating income increased to $ 16.6 million, from $ 11.8 million in the same period of 2020.
  • Net income increased to $ 3.8 million in the third quarter of 2021, compared to $ 3.0 million in the same period of 2020. For the nine-month period ended September 30, 2021, net income increased at $ 12.7 million, compared to $ 9.2 million in the same period of 2020.

About UFP Technologies, Inc.
UFP Technologies is an innovative designer and a tailor-made manufacturer of components, sub-assemblies, products and packaging mainly intended for the medical market. Using highly specialized foams, films and plastics, we convert raw materials through lamination, molding, radio frequency welding and manufacturing techniques. We are diversified by also providing highly technical solutions to customers in the aerospace and defense, automotive, consumer, electronics and industrial markets.

Forward-looking statements
This press 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 anticipated trends in the various markets in which we compete and expectations regarding customer demand; expectations regarding our liquidity and business opportunities; statements about our growth potential and growth strategies; and any statement implying that we may be able to maintain or increase sales, earnings and earnings per share or the growth rates of sales, earnings and earnings per share. Investors are cautioned that these 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 on the US and global economies; the timing, scope and effect of other government, regulatory, fiscal, monetary and public health responses to the COVID-19 pandemic; risks associated with a decline, including a substantial decline, in demand for our products; risks associated with the potential closure of one of our facilities or the unavailability of key personnel or other employees; the risks that our stocks or cash reserves are insufficient; risks relating to the identification of suitable acquisition candidates and the successful and efficient execution of acquisition transactions and the integration of any acquisition candidates; the risks and uncertainties associated with increasing sales, earnings and earnings per share, as well as other risks and uncertainties that are detailed in our filings with the SEC. Therefore, actual results may differ materially. Readers are encouraged to consult the documents we file with the SEC, in particular the latest 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 commitment to publicly post any update or revision to such statement to reflect any change in our expectations or any change in the events, conditions or circumstances upon which such statement is based.

Condensed consolidated income statements
(in thousands, except data per share)
(Unaudited)

Three months ended Nine months ended
September 30 September 30
2021 2020 2021 2020
Net sales $ 50 723 $ 43,299 $ 149,977 $ 134,220
Cost of sales 38,707 32,771 111 938 100 919
Gross profit 12,016 10,528 38,039 33,301
SG&A 6,806 6,791 21 343 21 208
Acquisition costs 154 154
(Gain) Loss on sale of fixed assets (21 ) 12 (42 ) 298
Operating result 5,077 3,725 16,584 11 795
Interest expense, net 16 17 11 66
Other charges (income) 4 (2 ) 362
Income before taxes 5,057 3,708 16,575 11 367
Income taxes 1,268 720 3,908 2 170
Net revenue $ 3 789 $ 2 988 $ 12 667 $ 9,197
Net earnings per share $ 0.50 $ 0.40 $ 1.68 $ 1.23
Diluted earnings per share $ 0.50 $ 0.40 $ 1.67 $ 1.22
Weighted average of common shares outstanding 7,531 7,495 7,522 7,480
Diluted weighted average of common shares outstanding 7,596 7,555 7,585 7,547

Condensed consolidated balance sheets
(in thousands)
(Unaudited)

September 30
The 31st of December,
2021 2020
Assets:
Cash and cash equivalents $ 33,094 $ 24 234
Net receivables 32,456 26,428
Inventories 21,674 18 642
Other current assets 3,909 2,560
Net tangible assets 52,982 53,755
Good will 51 838 51 838
Net intangible assets 18,776 19 718
other assets 5 957 6,029
Total assets $ 220 686 $ 203 204
Liabilities and equity:
Accounts payable 7,556 4,121
Other current liabilities 11.204 11,016
Other liabilities 11 173 11.174
Total responsibilities 29 933 26 311
Total equity for shareholders 190,753 176,893
Total liabilities and equity $ 220 686 $ 203 204

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