UFPT Announces Increase in 2000 Sales and Warns About Economic Outlook
GEORGETOWN, Mass.--Feb. 15, 2001--UFP Technologies, Inc. , a manufacturer of packaging and specialty products, today reported Fiscal 2000 results and issued a warning about business conditions in 2001. Sales for the year were $74.5 million, or 27% higher than 1999 sales of $58.8 million. Earnings per diluted share were $0.25 compared to $0.35 last year. Sales for the fourth quarter were $17.9 million, or 12% above fourth-quarter 1999 sales of $16.0 million. Earnings per diluted share were $0.08 for the fourth quarter of 2000 compared to $0.14 for the same period last year. EBITDA (earnings before interest, taxes, depreciation and amortization) increased 16% for the year to $6.5 million.Responding to a weak economic outlook in the automotive industry as well as the loss of a major automotive program, the Company has significantly scaled back its automotive division, according to President and CEO R. Jeffrey Bailly. The Company was informed by one of its key Tier-1 customers that it is taking a $5.5 million annual program in-house to cut costs, he said.
"We are pleased to have completed the year 2000 with solid sales growth of 27% and a 16% increase in EBITDA, but we are planning for reduced demand in our automotive division during 2001, particularly in the first half of the year," Bailly said. "We have combined our Detroit operations under one roof and reduced that workforce by about one third. Despite these efforts, with the sharp reduction in demand, we anticipate having to absorb losses in Detroit this year. I expect these losses to be heaviest early in the year, and to result in overall losses for the Company in the first quarter. We plan on results gradually improving as new programs come on-line during the course of the year."
"Our automotive management team had executed a multi-million dollar turnaround of the group's results in 2000 and had anticipated a strong 2001; so the news of the reduction in demand and requisite downsizing measures were very disappointing," Bailly continued. "Fortunately, we still have new programs scheduled for launch throughout the year, and we remain confident that our products and services and the industry's needs are a strong match."
"On the Packaging side of our business, we have also experienced some softening of demand, although far less severe. We will proceed with our strategic plan cautiously, continuing to take costs out of the business where possible," Bailly continued. "Our long-term packaging strategy, which involves strategic acquisitions in a consolidating industry, may actually benefit from a challenging economic environment. Smaller competitors may have more incentive to sell their businesses, and tightening credit markets will mean less competition from financial buyers and potentially lower purchase prices. Our Company's balance sheet remains strong, and we believe that we have ample credit to execute our internal and external growth strategy," Bailly said.
UFP TECHNOLOGIES, INC.
Consolidated Condensed Statements of Operations
($ in Thousands, Except Per Share Data)
Unaudited Audited
Three Months Ended Twelve Months Ended
31-Dec-00 31-Dec-99 31-Dec-00 31-Dec-99
Net sales $ 17,894 $ 15,992 $ 74,492 $ 58,801
Cost of sales 13,588 11,769 56,871 43,939
Gross profit 4,306 4,223 17,621 14,862
SG&A 3,223 3,126 14,236 11,583
Operating income 1,083 1,097 3,385 3,279
Interest expense /
other income &
expenses 401 (5) 1,383 449
Income before
income taxes 682 1,102 2,002 2,830
Income taxes 327 441 921 1,137
Net income $ 355 $ 661 $ 1,081 $ 1,693
Weighted average
diluted shares
outstanding 4,388 4,820 4,386 4,896
Per Share Data:
Net income $ 0.08 $ 0.14 $ 0.25 $ 0.35
Consolidated Condensed Balance Sheet
($ in Thousands)
31-Dec-00 31-Dec-99
Audited Audited
Assets
Current assets $ 18,513 $ 15,755
Net property, plant, and equipment 12,454 10,566
Other assets 9,385 5,546
Total assets $ 40,352 $ 31,867
Liabilities and stockholders' equity
Current liabilities $ 14,374 $ 12,207
Long-term debt 7,589 2,706
Other liabilities 862 746
Total liabilities $ 22,825 $ 15,659
Total stockholders' equity 17,527 16,208
Total liabilities and stockholders' equity $ 40,352 $ 31,867