UFP Technologies Reports Q2 Results & Announces Launch of New Automotive Programs
GEORGETOWN, Mass.--Aug. 1, 2001--UFP Technologies, Inc. , a manufacturer of packaging and specialty products, today reported results for its second quarter ended June 30, 2001. The Company reported a net loss of $269,000 or $0.06 per diluted share outstanding, compared to a profit of $288,000 or $0.07 per share in the second quarter of last year. Sales for the quarter were $15.5 million vs. $19.4 million in the prior year. On a year-to-date basis the Company reported sales of $32.4 million and a loss of $0.15 per diluted share outstanding."In keeping with the overall business climate, the second quarter brought a widespread softening of customer demand, particularly in the computer/electronics packaging area," said R. Jeffrey Bailly, President and CEO. "This, combined with our previously announced loss of an annual $5.7 million automotive program, resulted in a 20% sales drop for the quarter."
"Our challenge now is to reduce costs and align them with customer demand, while still investing strategically for growth," Bailly said. "For example, between June and October 2001, we expect to launch nine new automotive programs with estimated combined annual volume of $5.3 million. The investment in people and capital to launch these programs is critical to our success in 2002 and beyond."
While second quarter results were disappointing, Bailly says careful asset management and proper investment will be the keys to the Company's turnaround. "Despite the general downturn, the quarter generated enough cash flow to purchase approximately $600,000 in capital assets needed for new programs, and to pay off approximately $1 million in debt principal. We will continue to manage our assets carefully and minimize expenses, as part of our commitment to return UFP Technologies to profitability quickly, and ensure our long-term success."
This News Release contains forward-looking information including statements about the Company's plans, objectives, expectations, beliefs and intentions. Such statements include, without limitation, statements regarding the economic outlook, opportunities, and estimated volume for its automotive and packaging businesses, the effectiveness of cost-cutting measures in positioning the Company for long-term success, and the belief that the Company will return to profitability and re-establish a trend of profitable growth. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, without limitation: the Company's ability to predict accurately the demand for its products and to develop strategies to address its markets successfully; risks associated with acquisitions, including the diversion of management's attention, the assimilation of operations, personnel and products of the acquired businesses, the ability to manage geographically remote units, the potential loss of key employees of the acquired businesses and financing risks; rapid technological change; and intense competition. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date of this News 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. Further discussion of risk factors is also available in the Company's SEC filings.
Consolidated Condensed Statements of Operations
($ in Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Six Months Ended
30-Jun-01 30-Jun-00 30-Jun-01 30-Jun-00
Net sales $ 15,481 $ 19,416 $32,447 $37,699
Cost of sales 12,460 14,823 26,028 28,804
Gross profit 3,021 4,593 6,419 8,895
SG&A 3,237 3,715 7,042 7,325
Operating income (loss) (216) 878 (623) 1,570
Interest expense / other income
& expenses 268 354 543 651
Income (loss) before income
taxes (484) 524 (1,166) 919
Income taxes (215) 236 (529) 414
Net income (loss) (269) 288 (637) 505
Weighted average diluted shares
outstanding 4,193 4,386 4,283 4,387
Per Share Data:
Diluted net income (loss) per
share ($0.06) $0.07 ($0.15) $0.12
Consolidated Condensed Balance Sheets
($ in Thousands)
30-Jun-01 31-Dec-00
Unaudited Audited
Assets:
Current assets $ 18,054 $ 18,513
Net property, plant, and equipment 12,382 12,453
Other assets 9,104 9,386
Total assets $ 39,540 $ 40,352
Liabilities and stockholders' equity:
Notes payable $ 5,990 $ 4,737
Other current liabilities 8,517 9,637
Long-term debt 7,598 7,589
Other liabilities 891 862
Total liabilities 22,996 22,825
Total stockholders' equity 16,544 17,527
Total liabilities and stockholders' equity $ 39,540 $ 40,352