UFP Technologies announces strong results for the second quarter of 2021
NEWBURYPORT, Mass., Aug. 03, 2021 (GLOBE NEWSWIRE) – UFP Technologies, Inc. (Nasdaq: UFPT), an innovative designer and custom manufacturer of components, assemblies, products and packaging primarily for the medical market, announced today hui 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 common share diluted outstanding for the same quarter in 2020. Sales for the second quarter were $ 50.7 million compared to sales of $ 42.6 million in the second quarter of 2020. 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 winter The six-month period ended June to June 30, 2021 was $ 99.3 million, compared to sales of $ 90.9 million for the same period in 2020.
“I am very satisfied with our second quarter results,” said R. Jeffrey Bailly, President and CEO. “Sales increased by almost 19% and net profit more than doubled from the previous year. We also recorded strong gains in sequential quarterly results, with sales increasing 4.2% and net income improving 13.3% from the first quarter. Sales increased in all markets, including medical, which returned to growth for the first time since the start of the pandemic. Automotive and consumption grew the strongest, 146% and 88% respectively.
“The increase in our revenues, combined with our reduced cost structure, generated significantly improved bottom lines,” added Bailly. “Gross margins improved to 26.5%; we expect them to improve further as medical sales continue to rebound and patients schedule elective procedures that have been delayed by Covid-19. “
“The availability of certain raw materials and direct labor shortages remain difficult issues, but we have seen a significant improvement in our Covid-19 test results with no cases reported and 67% of our workforce were vaccinated, ”Bailly said. “Additionally, we” have continued to advance our strategic initiatives, including our goal of providing our medical customers with a low-cost in-country manufacturing option. This progress, combined with our strong pipeline of organic and external growth opportunities and a strong balance sheet that includes $ 30 million in cash, leaves us excited and optimistic about our future. “
Financial highlights for the second quarter and current year 2021
- Second quarter sales increased 18.8% to $ 50.6 million from $ 42.6 million in the same period of 2020. Year-to-date sales are up 9. 2% to $ 99.3 million, up from $ 90.9 million in the same period of 2020.
- Second quarter sales in the medical market increased 3.3%. Sales in the aerospace and defense and automotive markets increased by 40.7% and 146.0% respectively. All other sales (consumer, electronics and industrial) increased 55.0%.
- Since the start of the year, sales in the medical market have fallen by 4.0%. Sales in the aerospace and defense and automotive markets increased by 50.1% and 35.7% respectively. All other sales (consumer, electronics and industrial) increased by 42.6%.
- Gross margin 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 rose to 26.2% from 25.0% in the same period of 2020.
- Selling, general and administrative (“SG&A”) expenses 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 For the six-month period ended June 30, 2021, selling and administrative expenses increased slightly to $ 14.5 million from $ 14.4 million for 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, up 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, compared to $ 6.2 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.
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 the anticipated effects on us of the COVID-19 pandemic, including with respect to the demand for our products; 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 our 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 have a negative impact on our business and prospects, and otherwise cause actual results to differ materially from those anticipated by such forward-looking statements, or otherwise, including including, but not limited to: 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)
|Three months ended||Six months ended|
|June 30th||June 30th|
|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 result||6,207||2 994||11,506||8,070|
|Interest (income) charges, net||(21||)||33||(5||)||49|
|Other charges (income)||4||35||(7||)||362|
|Income before taxes||6,224||2 926||11 518||7 659|
|Net revenue||$||4 715||$||2 318||$||8 878||$||6,209|
|Net earnings per share||$||0.63||$||0.31||$||1.18||$||0.83|
|Diluted earnings per share||$||0.62||$||0.31||$||1.17||$||0.82|
|Weighted average of outstanding common shares||7,527||7 487||7,517||7,472|
|Diluted weighted average of common shares outstanding||7,573||7,532||7,575||7,545|
Condensed consolidated balance sheets
|June 30th||The 31st of December,|
|Cash and cash equivalents||$||30,273||$||24 234|
|Other current assets||3,811||2,560|
|Net tangible assets||53,695||53,755|
|Good will||51 838||51 838|
|Net intangible assets||19,090||19 718|
|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 responsibilities||30,972||26 311|
|Total equity for shareholders||186 314||176,893|
|Total liabilities and equity||$||217,286||$||203 204|