UFP Technologies Announces Record 2022 Results
07 Mars 2023 - 2:59PM
UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom
manufacturer of engineered solutions primarily for the medical
market, today reported net income of $41.8 million or $5.45 per
diluted common share outstanding for its year ended December 31,
2022, compared to net income of $15.9 million or $2.09 per
diluted common share outstanding for 2021. Net Sales for 2022 were
$353.8 million compared to 2021 sales of $206.3 million.
For its fourth quarter ended December 31, 2022,
the Company reported net income of $8.5 million or $1.10 per
diluted common share outstanding, compared to $3.2 million or
$0.42 per diluted common share outstanding in the same period of
2021. Sales for the fourth quarter 2022 were $91.2 million versus
2021 fourth quarter sales of $56.3 million.
“I am very pleased with our 2022 results, as
sales grew 72% and EPS grew 160%,” said R. Jeffrey Bailly, Chairman
& CEO. “We integrated two key acquisitions completed at the end
of 2021, DAS Medical in the Dominican Republic and Contech Medical
in Rhode Island and Costa Rica. We also completed and integrated
another major acquisition, Advant Medical, which brought us a key
strategic location in Galway, Ireland along with new capabilities
and many important synergies. Each acquisition has performed above
our expectations and made us more valuable to our customers. In
addition, we completed our factory start-up in Tijuana, Mexico,
transitioning from a dirt field to a completed facility shipping
production parts in just eight months. We certified our quality
system and launched our first program ahead of schedule and under
budget.”
“Amid all this exciting activity, our base
business grew organically at an impressive 18.6% in 2022,” said
Bailly. “And operating income grew by 161%, or 106% after
eliminating non-operational items, such as acquisition earnout
adjustments and gains on the sale of real estate and our Molded
Fiber division, which we sold to tighten our focus on our
fastest-growing market opportunities.”
“I am very proud of the UFP team, which grew
substantially in 2022 and now totals approximately 3,000
associates,” Bailly added. “They worked incredibly hard navigating
challenging supply chain issues and a difficult labor market, and
delivered excellent results. Looking ahead, I am very bullish about
our future as we continue to realize acquisition synergies and gain
the benefits of our recent investments in new clean rooms,
production capacity, talent and more. And with only about
$55 million in debt, our balance sheet remains strong,
allowing us to execute additional internal and external growth
initiatives.”
Financial Highlights:
- Sales for the
fourth quarter increased 61.9% to $91.2 million, from $56.3 million
in the same period of 2021. Sales for the full year of 2022
increased 71.5% to $353.8 million from $206.3 million in the same
period of 2021.
- Fourth quarter
sales to the medical market increased 108.0%. Sales to all other
markets decreased 28.5% to $13.5 million, largely due to the
sale of Molded Fiber. Year-to-date sales to the medical market
increased 116.0% to $286.2 million. Sales to all other markets
decreased 8.4% to $67.6 million.
- Gross profit as a
percentage of sales (“gross margin”) increased to 25.5% for the
fourth quarter, from 23.2% in the same quarter of 2021. Gross
margin for the full year of 2022 increased to 25.5%, from 24.8% in
the same period of 2021.
- Selling, general
and administrative expenses (“SG&A”) for the fourth quarter
increased 46.1% to $11.9 million compared to $8.1 million in the
same quarter of 2021. Full year 2022 SG&A increased 55.3% to
$45.8 million, from $29.5 million in the same period of 2021.
- For the fourth
quarter, operating income increased to $10.9 million, from $4.6
million in the same quarter of 2021. Full year 2022 operating
income increased to $55.4 million, from $21.2 million in the same
period of 2021, and adjusted operating income increased to $44.5
million, from $21.6 million. 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.
- Net income
increased to $8.5 million in the fourth quarter, from $3.2 million
in the same period of 2021. Full year 2022 net income
increased to $41.8 million, from $15.9 million in the same
period of 2021.
- EBITDA for the year
ended December 31, 2022 increased to $70.6 million from $32.1
million in the same period of 2021, and adjusted EBITDA increased
to $59.6 million from $32.5 million. See the reconciliation
provided in Table 2. EBITDA and Adjusted EBITDA are Non-GAAP
Financial Measures. Please see "Non-GAAP Financial
Information" at the end of this news release.
About UFP Technologies,
Inc.
UFP Technologies is a designer and custom
manufacturer of engineered solutions primarily for the medical
market. Utilizing highly specialized foams, films and plastics, UFP
converts raw materials through laminating, molding, radio frequency
welding and fabricating techniques. The Company is diversified by
also providing highly engineered solutions to customers in the
aerospace & defense, automotive, and industrial markets.
Consolidated Condensed Statements of Income |
(in thousands, except per share data) |
(unaudited) |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31 |
|
December 31 |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net sales |
$ |
91,237 |
|
|
$ |
56,344 |
|
|
$ |
353,792 |
|
|
$ |
206,320 |
|
Cost of sales |
|
67,957 |
|
|
|
43,268 |
|
|
|
263,532 |
|
|
|
155,206 |
|
Gross profit |
|
23,280 |
|
|
|
13,076 |
|
|
|
90,260 |
|
|
|
51,114 |
|
Selling, general and administrative expenses |
|
11,888 |
|
|
|
8,138 |
|
|
|
45,796 |
|
|
|
29,480 |
|
Acquisition Costs |
|
- |
|
|
|
276 |
|
|
|
1,027 |
|
|
|
430 |
|
Change in fair value of contingent consideration |
|
489 |
|
|
|
- |
|
|
|
9,837 |
|
|
|
- |
|
Gain on sale of Molded Fiber |
|
(29 |
) |
|
|
- |
|
|
|
(15,651 |
) |
|
|
- |
|
Loss (gain) on disposal of fixed assets |
|
56 |
|
|
|
29 |
|
|
|
(6,149 |
) |
|
|
(14 |
) |
Operating income |
|
10,876 |
|
|
|
4,633 |
|
|
|
55,400 |
|
|
|
21,218 |
|
Interest expense, net |
|
(872 |
) |
|
|
(28 |
) |
|
|
(2,763 |
) |
|
|
(39 |
) |
Other income (expense) |
|
(233 |
) |
|
|
24 |
|
|
|
81 |
|
|
|
26 |
|
Income before income tax expense |
|
9,771 |
|
|
|
4,629 |
|
|
|
52,718 |
|
|
|
21,205 |
|
Income tax expense |
|
1,309 |
|
|
|
1,411 |
|
|
|
10,929 |
|
|
|
5,319 |
|
Net income |
$ |
8,462 |
|
|
$ |
3,218 |
|
|
$ |
41,789 |
|
|
$ |
15,886 |
|
|
|
|
|
|
|
|
|
Net income per share outstanding |
$ |
1.12 |
|
|
$ |
0.43 |
|
|
$ |
5.52 |
|
|
$ |
2.11 |
|
Net income per diluted share outstanding |
$ |
1.10 |
|
|
$ |
0.42 |
|
|
$ |
5.45 |
|
|
$ |
2.09 |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
7,580 |
|
|
|
7,532 |
|
|
|
7,564 |
|
|
|
7,524 |
|
Weighted average diluted shares outstanding |
|
7,689 |
|
|
|
7,637 |
|
|
|
7,663 |
|
|
|
7,615 |
|
|
|
|
|
|
|
|
|
Consolidated Condensed Balance Sheets |
(in thousands) |
(unaudited) |
|
|
December 31, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
Assets: |
|
|
|
Cash and cash equivalents |
$ |
4,451 |
|
|
$ |
11,117 |
|
Receivables, net |
|
55,117 |
|
|
|
39,384 |
|
Inventories |
|
53,536 |
|
|
|
33,436 |
|
Other current assets |
|
3,242 |
|
|
|
3,383 |
|
Net property, plant, and equipment |
|
58,072 |
|
|
|
56,569 |
|
Goodwill |
|
113,028 |
|
|
|
107,905 |
|
Intangible assets, net |
|
68,361 |
|
|
|
67,585 |
|
Other assets |
|
21,737 |
|
|
|
14,753 |
|
Total assets |
$ |
377,544 |
|
|
$ |
334,132 |
|
Liabilities and equity: |
|
|
|
Accounts payable |
|
19,961 |
|
|
|
10,611 |
|
Current installments, net of long-term debt |
|
4,000 |
|
|
|
4,000 |
|
Other current liabilities |
|
31,800 |
|
|
|
24,172 |
|
Long-term debt, excluding current installments |
|
51,000 |
|
|
|
71,000 |
|
Other liabilities |
|
33,238 |
|
|
|
29,903 |
|
Total liabilities |
|
139,999 |
|
|
|
139,686 |
|
Total equity |
|
237,545 |
|
|
|
194,446 |
|
Total liabilities and stockholders' equity |
$ |
377,544 |
|
|
$ |
334,132 |
|
|
|
|
|
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; the Company’s ability to operationalize its
Tijuana operations; expectations regarding customer demand; and any
indication that the Company may be able to sustain or increase its
sales, earnings or earnings per share, or its sales, earnings or
earnings per share growth rates. 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 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, 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) |
|
|
Twelve Months Ended |
|
December 31 |
|
|
2022 |
|
|
|
2021 |
|
Operating income (GAAP) |
$ |
55,400 |
|
|
$ |
21,218 |
|
Adjustments: |
|
|
|
Acquisition Costs |
|
1,027 |
|
|
|
430 |
|
Change in fair value of contingent consideration |
|
9,837 |
|
|
|
- |
|
Gain on sale of Molded Fiber |
|
(15,651 |
) |
|
|
- |
|
Gain on disposal of fixed assets |
|
(6,149 |
) |
|
|
(14 |
) |
Adjusted operating income (Non-GAAP) |
$ |
44,464 |
|
|
$ |
21,634 |
|
|
|
|
|
Table 2: EBITDA Reconciliation |
(in thousands) |
|
|
Twelve Months Ended |
|
December 31 |
|
|
2022 |
|
|
|
2021 |
|
Net income (GAAP) |
$ |
41,789 |
|
|
$ |
15,886 |
|
Income tax expense |
|
10,929 |
|
|
|
5,319 |
|
Interest expense, net |
|
2,763 |
|
|
|
39 |
|
Depreciation |
|
7,506 |
|
|
|
7,094 |
|
Amortization of intangible assets |
|
4,380 |
|
|
|
1,316 |
|
Share based compensation |
|
3,208 |
|
|
|
2,428 |
|
EBITDA (Non-GAAP) |
$ |
70,575 |
|
|
$ |
32,082 |
|
Adjustments: |
|
|
|
Acquisition Costs |
|
1,027 |
|
|
|
430 |
|
Change in fair value of contingent consideration |
|
9,837 |
|
|
|
- |
|
Gain on sale of Molded Fiber |
|
(15,651 |
) |
|
|
- |
|
Gain on disposal of fixed assets |
|
(6,149 |
) |
|
|
(14 |
) |
Adjusted EBITDA (Non-GAAP) |
$ |
59,639 |
|
|
$ |
32,498 |
|
|
|
|
|
Contact: Ron Lataille978-234-0926, rlataille@ufpt.com
Ufp Technologies (NASDAQ:UFPT)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Ufp Technologies (NASDAQ:UFPT)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024