UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom
manufacturer of engineered solutions primarily for the medical
market, today reported net income of $44.9 million or $5.83 per
diluted common share outstanding for its year ended December 31,
2023, compared to net income of $41.8 million or $5.45 per
diluted common share outstanding for 2022. Net sales for 2023 were
$400.1 million, 13.1% higher than 2022 sales of $353.8 million.
For its fourth quarter ended December 31, 2023,
the Company reported net income of $11.6 million or $1.51 per
diluted common share outstanding, compared to $8.5 million or
$1.10 per diluted common share outstanding in the same period of
2022. Sales for the fourth quarter 2023 were $101.5 million, 11.2%
higher than 2022 fourth quarter sales of $91.2 million.
“I am very pleased with our fourth quarter and
full year 2023 results,” said R. Jeffrey Bailly, Chairman &
CEO. “Sales for the quarter and the year grew 11.2% and 13.1%,
respectively. Organic growth for the year was even stronger at
15.7% and adjusted net income per diluted share for the fourth
quarter and full year grew by an impressive 33.0% and 41.0%,
respectively.”
“We continue to make great progress
strengthening our platform and further integrating our three most
recent acquisitions,” Bailly added. “We’ve captured synergies by
sharing best practices, moving business to best-fit manufacturing
locations, and standardizing systems for information technology,
quality, and safety. We have also increased our production capacity
significantly, adding new clean rooms in Ireland, Costa Rica, and
most notably the Dominican Republic. In that location, our
investments in infrastructure, equipment, and talent have increased
our capacity to service robotic surgery customers by 70%. During
this process, we added 450 new associates, primarily direct labor
and technical resources.”
“Our revenue growth was strong despite some
softening in demand in the latter part of the year due to excess
inventory held by some of our customers,” Bailly said. “However,
they are indicating that the rightsizing of inventory will be
short-term in nature and releases will return to normal levels in
the near future. Given our growing pipeline of new opportunities,
ample capacity for internal growth, and a strong balance sheet with
available capital for new acquisitions, we remain very bullish
about our future.”
Financial Highlights:
- Sales for the
fourth quarter increased 11.2% to $101.5 million, from $91.2
million in the same period of 2022. Sales for the full year of 2023
increased 13.1% to $400.1 million from $353.8 million in the same
period of 2022.
- Fourth quarter
MedTech sales increased 14.9% to $89.3 million. Sales to all other
markets decreased 9.5% to $12.2 million. Full year MedTech sales
increased 21.0% to $346.4 million while sales to all other markets
decreased 20.6% to $53.7 million.
- Gross profit as a
percentage of sales (“gross margin”) increased to 25.7% for the
fourth quarter, from 25.5% in the same quarter of 2022. Gross
margin for the full year of 2023 increased to 28.1%, from 25.5% in
the same period of 2022.
- Selling, general
and administrative expenses (“SG&A”) for the fourth quarter
increased 10.3% to $13.1 million compared to $11.9 million in the
same quarter of 2022. Full year 2023 SG&A increased 11.1% to
$50.9 million, from $45.8 million in the same period of 2022. As a
percentage of sales, SG&A decreased to 12.7% in 2023 from 12.9%
in 2022.
- For the fourth
quarter, adjusted operating income increased 14.2% to $13.0
million, from $11.4 million in the same quarter of 2022. Full year
2023 adjusted operating income increased 37.9% to $61.3 million,
from $44.5 million in the same period of 2022. See the
reconciliation provided in Table 1. Adjusted Operating Income
is a financial measure not presented in accordance with generally
accepted accounting principles (“GAAP”) (a “Non-GAAP Financial
Measure”). Please see “Non-GAAP Financial Information” at the end
of this news release.
- Adjusted net income
in the fourth quarter increased 33.5% to $11.8 million, from $8.8
million in the same period of 2022. Full year 2023 adjusted
net income increased 41.6% to $47.7 million, from $33.7 million in
the same period of 2022. See the reconciliation provided in
Table 2. Adjusted Net Income is a financial measure not
presented in accordance with generally accepted accounting
principles (“GAAP”) (a “Non-GAAP Financial Measure”). Please see
“Non-GAAP Financial Information” at the end of this news
release.
- Adjusted EBITDA for
the year ended December 31, 2023, increased 29.6% to $77.3 million
from $59.6 million. See the reconciliation provided in
Table 3. Adjusted EBITDA is a Non-GAAP Financial Measure.
Please see “Non-GAAP Financial Information” at the end of this
news release.
About UFP Technologies,
Inc.
UFP Technologies is an innovative designer and custom
manufacturer of comprehensive solutions for medical devices,
sterile packaging, and other highly engineered custom products. UFP
is an important link in the medical device supply chain and a
valued outsource partner to many of the top medical device
manufacturers in the world. The Company’s single-use and
single-patient devices and components are used in a wide range of
medical devices and packaging for minimally invasive surgery,
infection prevention, wound care, wearables, orthopedic soft goods,
and orthopedic implants.
Consolidated Condensed Statements of Income(in
thousands, except per share data)(unaudited) |
|
|
Three Months EndedDecember 31 |
|
|
Twelve Months EndedDecember 31 |
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Net sales |
$ |
101,498 |
|
|
$ |
91,237 |
|
|
|
$ |
400,072 |
|
|
$ |
353,792 |
|
|
Cost of sales |
|
75,369 |
|
|
|
67,957 |
|
|
|
|
287,847 |
|
|
|
263,532 |
|
|
Gross profit |
|
26,129 |
|
|
|
23,280 |
|
|
|
|
112,225 |
|
|
|
90,260 |
|
|
Selling, general and administrative expenses |
|
13,118 |
|
|
|
11,888 |
|
|
|
|
50,889 |
|
|
|
45,796 |
|
|
Acquisition Costs |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
1,027 |
|
|
Change in fair value of contingent consideration |
|
238 |
|
|
|
489 |
|
|
|
|
3,527 |
|
|
|
9,837 |
|
|
Gain on sale of Molded Fiber |
|
- |
|
|
|
(29 |
) |
|
|
|
- |
|
|
|
(15,651 |
) |
|
Loss (gain) on disposal of fixed assets |
|
37 |
|
|
|
56 |
|
|
|
|
145 |
|
|
|
(6,149 |
) |
|
Operating income |
|
12,736 |
|
|
|
10,876 |
|
|
|
|
57,664 |
|
|
|
55,400 |
|
|
Interest expense, net |
|
(755 |
) |
|
|
(872 |
) |
|
|
|
(3,645 |
) |
|
|
(2,763 |
) |
|
Other (expense) income |
|
(89 |
) |
|
|
(233 |
) |
|
|
|
(117 |
) |
|
|
81 |
|
|
Income before income tax expense |
|
11,892 |
|
|
|
9,771 |
|
|
|
|
53,902 |
|
|
|
52,718 |
|
|
Income tax expense |
|
285 |
|
|
|
1,309 |
|
|
|
|
8,978 |
|
|
|
10,929 |
|
|
Net income |
$ |
11,607 |
|
|
$ |
8,462 |
|
|
|
$ |
44,924 |
|
|
$ |
41,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share outstanding |
$ |
1.52 |
|
|
$ |
1.12 |
|
|
|
$ |
5.89 |
|
|
$ |
5.52 |
|
|
Net income per diluted share outstanding |
$ |
1.51 |
|
|
$ |
1.10 |
|
|
|
$ |
5.83 |
|
|
$ |
5.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
7,639 |
|
|
|
7,580 |
|
|
|
|
7,624 |
|
|
|
7,564 |
|
|
Weighted average diluted shares outstanding |
|
7,712 |
|
|
|
7,689 |
|
|
|
|
7,701 |
|
|
|
7,663 |
|
|
|
Consolidated Condensed Balance Sheets(in
thousands)(unaudited) |
|
|
December 31,2023 |
|
December 31,2022 |
|
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
5,263 |
|
$ |
4,451 |
|
Receivables, net |
|
64,449 |
|
|
55,117 |
|
Inventories |
|
70,191 |
|
|
53,536 |
|
Other current assets |
|
4,730 |
|
|
3,242 |
|
Net property, plant, and equipment |
|
62,137 |
|
|
58,072 |
|
Goodwill |
|
113,263 |
|
|
113,028 |
|
Intangible assets, net |
|
64,116 |
|
|
68,361 |
|
Other assets |
|
19,987 |
|
|
22,385 |
|
Total assets |
$ |
404,136 |
|
$ |
378,192 |
|
Liabilities and equity: |
|
|
|
|
|
|
Accounts payable |
|
22,286 |
|
|
19,961 |
|
Current portion of long-term debt |
|
4,000 |
|
|
4,000 |
|
Other current liabilities |
|
31,923 |
|
|
32,000 |
|
Long-term debt, less current portion |
|
28,000 |
|
|
51,000 |
|
Other liabilities |
|
31,836 |
|
|
33,686 |
|
Total liabilities |
|
118,045 |
|
|
140,647 |
|
Total equity |
|
286,091 |
|
|
237,545 |
|
Total liabilities and stockholders' equity |
$ |
404,136 |
|
$ |
378,192 |
|
|
Forward-Looking Statements
Certain statements in this press release may be
considered “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements
generally relate to future events or the Company’s future financial
or operating performance and may be identified by words such as
“may,” “should,” “expect,” “intend,” “will,” “estimate,”
“anticipate,” “believe,” “predict,” or similar words. Such
statements include, but are not limited to, statements about the
Company’s future financial or operating performance; the continuing
operation of the Company’s locations, the maintenance of its
facilities and the sufficiency of the Company’s supply chain,
inventory, liquidity and capital resources, including increased
costs in connection with such efforts; statements about the
Company’s acquisition strategies and opportunities and the
Company’s growth potential and strategies for growth; statements
about the integration and performance of recent acquisitions;
statements about the Company’s ability to realize the benefits
expected from our recently completed acquisitions, including any
related synergies; statements about customer expectations regarding
inventory levels; expectations regarding customer demand; and any
indication that the Company may be able to sustain or increase its
sales, earnings or earnings per share, its sales, earnings or
earnings per share growth rates, or available capital for
acquisitions. Such forward-looking statements are based upon
assumptions made by the Company as of the date hereof and are
subject to risks, uncertainties, and other factors that could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements. Factors that may cause actual
results to differ materially from current expectations include, but
are not limited to: the Company's general ability to execute its
business plans; industry conditions, including fluctuations in
supply, demand, and prices for the Company's products and services;
risks relating to customer concentration; risks relating to the
Company’s ability to achieve anticipated benefits of recent
acquisitions and other risks and uncertainties set forth in the
sections entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in the Company's filings with the
Securities and Exchange Commission (“SEC”), which are available on
the SEC's website at www.sec.gov. 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. Forward-looking
statements are also subject to the risks and other issues described
above under “Use of Non-GAAP Financial Information,” which could
cause actual results to differ materially from current expectations
included in the Company’s forward-looking statements included in
this press release.
Non-GAAP Financial
Information
This news release includes non-generally
accepted accounting principles (“GAAP”) performance measures.
Management considers Adjusted Operating Income, Adjusted Net
Income, Adjusted Net Income per diluted shares outstanding, EBITDA
and Adjusted EBITDA, non-GAAP measures. The Company uses these
non-GAAP financial measures to facilitate management's financial
and operational decision-making, including evaluation of the
Company’s historical operating results. The Company’s management
believes these non-GAAP measures are useful in evaluating the
Company’s operating performance and are similar measures reported
by publicly listed U.S. competitors, and regularly used by
securities analysts, institutional investors, and other interested
parties in analyzing operating performance and prospects. These
non-GAAP financial measures reflect an additional way of viewing
aspects of the Company's operations that, when viewed with GAAP
results and the reconciliations to corresponding GAAP financial
measures, may provide a more complete understanding of factors and
trends affecting the Company’s business. By providing these
non-GAAP measures, the Company’s management intends to provide
investors with a meaningful, consistent comparison of the Company’s
performance for the periods presented. These non-GAAP financial
measures should be considered supplemental to, and not a substitute
for, financial information prepared in accordance with GAAP. The
Company's definition of these non-GAAP measures may differ from
similarly titled measures of performance used by other companies in
other industries or within the same industry.
Table 1: Adjusted Operating Income
Reconciliation(in thousands) |
|
|
Three Months EndedDecember 31, |
|
|
Twelve Months EndedDecember 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Operating income (GAAP) |
$ |
12,736 |
|
|
$ |
10,876 |
|
|
|
$ |
57,664 |
|
|
$ |
55,400 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition Costs |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
1,027 |
|
|
Change in fair value of contingent consideration |
|
238 |
|
|
|
489 |
|
|
|
|
3,527 |
|
|
|
9,837 |
|
|
Gain on sale of Molded Fiber |
|
- |
|
|
|
(29 |
) |
|
|
|
- |
|
|
|
(15,651 |
) |
|
Loss (gain) on disposal of fixed assets |
|
37 |
|
|
|
56 |
|
|
|
|
145 |
|
|
|
(6,149 |
) |
|
Adjusted operating income (Non-GAAP) |
$ |
13,011 |
|
|
$ |
11,392 |
|
|
|
$ |
61,336 |
|
|
$ |
44,464 |
|
|
|
Table 2: Adjusted Net Income and Diluted Common Share
Outstanding Reconciliation(in thousands, except per share
data) |
|
|
Three Months EndedDecember 31, |
|
|
Twelve Months EndedDecember 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income (GAAP) |
$ |
11,607 |
|
|
$ |
8,462 |
|
|
|
$ |
44,924 |
|
|
$ |
41,789 |
|
|
Adjustments (net of taxes): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition Costs |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
763 |
|
|
Change in fair value of contingent consideration |
|
177 |
|
|
|
363 |
|
|
|
|
2,621 |
|
|
|
7,309 |
|
|
Gain on sale of Molded Fiber |
|
- |
|
|
|
(22 |
) |
|
|
|
- |
|
|
|
(11,629 |
) |
|
Loss (gain) on disposal of fixed assets |
|
27 |
|
|
|
42 |
|
|
|
|
108 |
|
|
|
(4,569 |
) |
|
Adjusted net income (Non-GAAP) |
$ |
11,811 |
|
|
$ |
8,845 |
|
|
|
$ |
47,653 |
|
|
$ |
33,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income per diluted share outstanding (Non-GAAP) |
$ |
1.53 |
|
|
$ |
1.15 |
|
|
|
$ |
6.19 |
|
|
$ |
4.39 |
|
|
Weighted average diluted common shares outstanding |
|
7,712 |
|
|
|
7,689 |
|
|
|
|
7,701 |
|
|
|
7,663 |
|
|
|
Table 3: EBITDA and Adjusted EBITDA
Reconciliation(in thousands) |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income (GAAP) |
$ |
11,607 |
|
|
$ |
8,462 |
|
|
|
$ |
44,924 |
|
|
$ |
41,789 |
|
|
Income tax expense |
|
285 |
|
|
|
1,309 |
|
|
|
|
8,978 |
|
|
|
10,929 |
|
|
Interest expense, net |
|
755 |
|
|
|
872 |
|
|
|
|
3,645 |
|
|
|
2,763 |
|
|
Depreciation |
|
1,862 |
|
|
|
1,632 |
|
|
|
|
7,004 |
|
|
|
7,505 |
|
|
Amortization of intangible assets |
|
1,098 |
|
|
|
1,117 |
|
|
|
|
4,403 |
|
|
|
4,380 |
|
|
EBITDA (Non-GAAP) |
$ |
15,607 |
|
|
$ |
13,392 |
|
|
|
$ |
68,954 |
|
|
$ |
67,366 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based compensation |
|
1,191 |
|
|
|
838 |
|
|
|
|
4,641 |
|
|
|
3,208 |
|
|
Acquisition Costs |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
1,027 |
|
|
Change in fair value of contingent consideration |
|
238 |
|
|
|
489 |
|
|
|
|
3,527 |
|
|
|
9,837 |
|
|
Gain on sale of Molded Fiber |
|
- |
|
|
|
(29 |
) |
|
|
|
- |
|
|
|
(15,651 |
) |
|
Loss (gain) on disposal of fixed assets |
|
37 |
|
|
|
56 |
|
|
|
|
145 |
|
|
|
(6,149 |
) |
|
Adjusted EBITDA (Non-GAAP) |
$ |
17,073 |
|
|
$ |
14,746 |
|
|
|
$ |
77,267 |
|
|
$ |
59,638 |
|
|
|
Contact: Ron Lataille978-234-0926,
rlataille@ufpt.com
Ufp Technologies (NASDAQ:UFPT)
過去 株価チャート
から 5 2024 まで 6 2024
Ufp Technologies (NASDAQ:UFPT)
過去 株価チャート
から 6 2023 まで 6 2024