UFP Technologies Announces Improved Sales & Earnings, New $77 Million Automotive Program
GEORGETOWN, Mass.--Oct. 29, 2002--UFP Technologies, Inc. , a manufacturer of packaging and specialty products, today reported third quarter sales of $15.3 million, a 9.7% increase over last year's sales of $13.9 million. Net income was $4,000 or $0.00/share versus a net loss of $943,000 or $(0.22)/share in Q3 2001. For the nine months ended September 30, 2002, Company sales were $47.5 million, a 2.3% improvement over last year's sales of $46.4 million. The year-to-date net loss through September 30, 2002 was $238,000 or ($0.05) per share compared to $1.6 million or ($0.37) per share in 2001."The substantially improved earnings are the result of cost-cutting and plant consolidation initiatives, coupled with increased sales," said R. Jeffrey Bailly, President & CEO.
In a separate development, Bailly announced UFP has been awarded an eight-year contract worth an estimated $77 million in revenue to provide molded door panel components to a large Tier-1 automotive supplier. The products are expected to be manufactured at a UFP Southeast location beginning in 2004, ramping up to maximum volume in 2006. "The program is a terrific fit for UFP Technologies," said Bailly. "It will allow us to leverage our engineering and molding capabilities over a sizable, multi-year contract."
"Our status as a preferred strategic supplier for precision molded trim components was key in helping us secure this program," said Bailly. "We are excited about the future of our automotive division. We believe our skills match the market needs very well, and there are abundant opportunities to further grow our business."
"Although the business climate is still challenging, we are pleased with our progress," Bailly said. "We have continued to secure new opportunities, and this automotive program is a great example of why I am very optimistic about our future."
UFP Technologies is an innovative designer and manufacturer of a broad range of high performance cushion foam and molded fiber packaging products, and specialty foam and plastic products for industrial and consumer markets. The company's Packaging division is a leader in the emerging market for environmentally sound molded fiber interior packaging.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
($ in Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
Net sales $15,283 $13,935 $47,462 $46,382
Cost of sales 12,017 12,123 37,832 38,151
Gross profit 3,266 1,812 9,630 8,231
SG&A 3,061 3,303 9,351 10,346
Operating income (loss) 205 (1,491) 279 (2,115)
Interest expense / other
income & expenses 199 223 663 765
Income (loss) before income
taxes 6 (1,714) (384) (2,880)
Income taxes 2 (771) (146) (1,300)
Net income(loss) 4 (943) (238) (1,580)
Weighted average diluted shares
outstanding 4,410 4,214 4,346 4,260
Per Share Data:
Diluted net income(loss) per
share $ 0.00 ($ 0.22) ($ 0.05) ($ 0.37)
CONSOLIDATED CONDENSED BALANCE SHEETS
($ in Thousands)
30-Sep-02 31-Dec-01
Unaudited Audited
Assets:
Current assets $16,219 $17,199
Net property, plant, and equipment 11,004 12,045
Other assets 8,917 8,858
Total assets $36,140 $38,102
Liabilities and stockholders' equity:
Notes payable $ 5,841 $ 5,854
Other current liabilities 9,260 $10,367
Long-term debt 6,090 6,828
Other liabilities 903 899
Total liabilities 22,094 $23,948
Total stockholders' equity 14,046 14,154
Total liabilities and stockholders' equity $36,140 $38,102