NEWBURYPORT, Mass., Aug. 02, 2016 (GLOBE NEWSWIRE) -- UFP Technologies, Inc.  (Nasdaq:UFPT), an innovative designer and custom converter of foams, plastics, composites, and natural fiber materials, today reported net income of $2.7 million or $0.38 per diluted common share outstanding for its second quarter ended June 30, 2016, a 20.4% increase over net income of $2.3 million or $0.32 per diluted common share outstanding for the same period in 2015. Sales for the second quarter were $37.9 million, 3.8% higher than second quarter sales of $36.5 million in 2015.  Net income for the six-month period ended June 30, 2016 was $3.8 million or $0.53 per diluted common share outstanding compared to $3.9 million or $0.55 for the same period in 2015.  Sales for the six-month period ended June 30, 2016 were $72.4 million, compared to sales of $70.5 million for the same period in 2015.

"I am pleased with our second quarter results and progress," said R. Jeffrey Bailly, Chairman and CEO.  "We have seen steady improvements in both our top and bottom lines, as the inefficiencies and extra labor associated with our plant moves and re-qualifications have begun to give way to the synergies we anticipated. Revenue grew nearly 4% over last year's Q2, and has improved steadily throughout the year. A 31% decrease in military sales compared to the second quarter of 2015 was more than offset by 12% sales growth in our largest market, medical/biotech."

"We also made good progress attracting new talent for key positions, including a general manager for our largest facility, our 250,000-square-foot Michigan operation," Bailly continued.  "And we have had increased activity on the acquisition front. With our ERP implementation completed and final plant consolidation mostly behind us, we feel we now have the bandwidth to integrate a new acquisition."

"With continued growth anticipated in our medical business, our Northeast consolidation moving toward completion, increased acquisition activity, and an infusion of energetic new talent, we are bullish about our future," said Bailly.

UFP Technologies is an innovative designer and custom converter of foams, plastics, composites, and natural fiber materials, principally serving the medical, automotive, aerospace and defense, electronics, consumer, and industrial markets. The UFP team acts as an extension of our customers' in-house research, engineering, and manufacturing groups, working closely with them to solve their most complex product and packaging challenges.

This news 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 about the Com­pany's prospects, statements about the Company's acquisition strategies and opportunities, statements regarding new hires and anticipated trends in the different markets in which the Company competes, anticipated advantages relating to the Company's decisions to consolidate its facilities and the expected cost savings and efficiencies associated therewith, anticipated advantages of maintaining fewer, larger plants, anticipated advantages the Company expects to realize from its investments and capital expenditures, expectations regarding the manufacturing capacity and efficiencies of the Company, statements about the Company's participation and growth in multiple markets, its business opportunities, the Company's growth potential and strategies for growth, anticipated revenues and the timing of such revenues, and any indication that the Company may be able to sustain or increase its sales and earnings or sales and earnings growth rates.  Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation risks and uncertainties associated with the identification of suitable ac­quisition candidates and the successful, efficient execution of acquisition transactions and integration of any such acquisition candi­dates, risks and uncertainties associated with plant closures and expected efficiencies from consolidating manufacturing, risks that the Company may not be able to finalize anticipated new customer contracts, risks associated with the implementation of new production equipment and requalification or recertification of transferred equipment, in a timely, cost-efficient manner, risks that any benefits from such new or transferred equipment may be delayed or not fully realized, or that the Company may be unable to fully utilize its expected production capacity, as well as other risks and uncertainties that are detailed in the documents filed by the Company with the Securities and Exchange Commission ("SEC").  Accordingly, actual results may differ materially.  Readers are referred to the documents filed by the Company with the SEC, specifically the last reports on Forms 10-K and 10-Q.  The forward-looking statements contained herein speak only of the Company's expecta­tions as of the date of this press 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.
Consolidated Condensed Statements of Income
(in thousands, except per share data )
(unaudited)
       
  Three Months Ended   Six Months Ended
  June 30   June 30
    2016       2015       2016       2015  
               
Net sales $   37,902     $   36,499     $   72,406     $   70,476  
Cost of sales     27,616         26,206       54,393       51,544  
Gross profit     10,286         10,293         18,013         18,932  
SG&A     6,470         6,776       12,374       12,800  
Restructuring costs     55         30       178       108  
Material overcharge settlement     (432 )       -       (432 )       -  
Gain on sale of fixed assets     -         -       (4 )     (31 )
Operating income     4,193         3,487         5,897         6,055  
Interest income (expense), net     15         8       26       (15 )
Income before income taxes     4,208         3,495         5,923         6,040  
Income taxes     1,473         1,223       2,113       2,114  
Net income from consolidated operations $   2,735     $   2,272     $   3,810     $   3,926  
               
Net income per share outstanding $   0.38     $   0.32     $   0.53     $   0.55  
Net income per diluted share outstanding $   0.38     $   0.32     $   0.53     $   0.55  
               
Weighted average shares outstanding   7,196       7,116       7,185       7,096  
Weighted average diluted shares outstanding   7,271       7,210       7,263       7,203  

 
Consolidated Condensed Balance Sheets
(in thousands )
       
  June 30,   December 31,
    2016       2015  
Assets: (unaudited)    
Cash $   27,007     $   29,804  
Receivables     23,020         17,481  
Inventories     13,884         14,202  
Other current assets     3,075         2,116  
Net property, plant, and equipment     48,325         46,555  
Other assets     9,668         9,792  
Total assets $   124,979     $   119,950  
Liabilities and equity:      
Short-term debt $   1,020     $   1,011  
Accounts payable     5,463         4,598  
Other current liabilities     4,769         5,374  
Long-term debt     345         859  
Other liabilities     4,872         4,536  
Total liabilities     16,469         16,378  
Total equity     108,510         103,572  
Total liabilities and stockholders' equity $   124,979     $   119,950  
       

Contact: Ron Lataille978-234-0926, rlataille@ufpt.com

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