UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On August 3, 2021, UFP Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.
Limitation on Incorporation by Reference. The information furnished in this Item 2.02, including the press release attached hereto as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Cautionary Note Regarding Forward-Looking Statements. Except for historical information contained in the press release attached as an exhibit hereto, the press release contains forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release regarding these forward-looking statements.
| Exhibit Number | Description | |
| 99.1 | Press Release dated August 3, 2021 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UFP Technologies, Inc. | ||
| Date: August 5, 2021 | By: | /s/ Ronald J. Lataille |
| Ronald J. Lataille | ||
| Chief Financial Officer and Senior Vice President | ||
EXHIBIT 99.1
UFP Technologies Announces Strong Q2 2021 Results
NEWBURYPORT, Mass., Aug. 03, 2021 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), an innovative designer and custom manufacturer of components, subassemblies, products, and packaging primarily for the medical market, today reported 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 diluted common share outstanding for the same quarter in 2020. Sales for the second quarter were $50.7 million compared to 2020 second quarter sales of $42.6 million. 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 six-month period ended June 30, 2021 were $99.3 million compared to sales of $90.9 million for the same period in 2020.
"I am very pleased with our Q2 results," said R. Jeffrey Bailly, Chairman & CEO. "Sales increased nearly 19% and net income more than doubled versus the prior year. We also saw solid gains in sequential quarterly results, as sales grew 4.2% and net income improved 13.3% over Q1. Sales increased in every market, including Medical, which returned to growth for the first time since the pandemic began. Automotive and Consumer had the greatest growth, 146% and 88% respectively.”
“Our increased revenue, combined with our reduced cost structure, generated significantly improved bottom-line results,” Bailly added. “Gross margins improved to 26.5%; we expect them to improve further as medical sales continue to rebound and as patients schedule elective procedures that were delayed by Covid-19.”
“Availability of some raw materials and direct labor shortages remain challenging issues, but we have seen significant improvement in our Covid-19 test results, with no current reported cases and 67% of our workforce vaccinated," Bailly said. “In addition, we’ve continued to advance our strategic initiatives, including our goal to provide our medical customers with a low-cost country manufacturing option. This progress, combined with our healthy pipeline of internal and external growth opportunities and a strong balance sheet that includes $30 million in cash, leaves us excited and bullish about our future."
Financial Highlights for Q2 and YTD 2021
About UFP Technologies, Inc.
UFP Technologies is an innovative designer and custom manufacturer of components, subassemblies, products, and packaging primarily for the medical market. Utilizing highly specialized foams, films, and plastics, we convert raw materials through laminating, molding, radio frequency welding and fabricating techniques. We are diversified by also providing highly engineered solutions to customers in the aerospace & defense, automotive, consumer, electronics, and industrial markets.
Forward Looking Statements
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 regarding the anticipated effects on us of the COVID-19 pandemic, including with respect to demand for our products; statements regarding anticipated trends in the different markets in which we compete and expectations regarding customer demand; expectations regarding our liquidity and business opportunities; statements about our growth potential and strategies for growth; and any statements implying that we may be able to sustain or increase sales, earnings and earnings per share or sales, earnings and earnings per share growth rates. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could adversely affect our business and prospects, and otherwise cause actual results to differ materially from those anticipated by such forward-looking statements, or otherwise, including without limitation: 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 the U.S. and worldwide economies; the timing, scope and effect of further governmental, regulatory, fiscal, monetary and public health responses to the COVID-19 pandemic; risks relating to decreased, including substantially decreased, demand for our products; risks relating to the potential closure of any of our facilities or the unavailability of key personnel or other employees; risks that our inventory or cash reserves may be insufficient; risks relating to the identification of suitable acquisition candidates and the successful, efficient execution of acquisition transactions and integration of any acquisition candidates; risks and uncertainties associated with increasing sales, earnings and earnings per share, as well as other risks and uncertainties that are detailed in the documents we file with the SEC. Accordingly, actual results may differ materially. Readers are referred to the documents we file with the SEC, specifically the last 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 undertaking to release publicly any updates or revisions to any such statement to reflect any change in our 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, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| 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 income | 6,207 | 2,994 | 11,506 | 8,070 | |||||||||
| Interest (income) expense, net | (21 | ) | 33 | (5 | ) | 49 | |||||||
| Other expense (income) | 4 | 35 | (7 | ) | 362 | ||||||||
| Income before income taxes | 6,224 | 2,926 | 11,518 | 7,659 | |||||||||
| Income taxes | 1,509 | 608 | 2,640 | 1,450 | |||||||||
| Net income | $ | 4,715 | $ | 2,318 | $ | 8,878 | $ | 6,209 | |||||
| Net income per share | $ | 0.63 | $ | 0.31 | $ | 1.18 | $ | 0.83 | |||||
| Net income per diluted share | $ | 0.62 | $ | 0.31 | $ | 1.17 | $ | 0.82 | |||||
| Weighted average common shares outstanding | 7,527 | 7,487 | 7,517 | 7,472 | |||||||||
| Weighted average diluted common shares outstanding | 7,573 | 7,532 | 7,575 | 7,545 | |||||||||
Consolidated Condensed Balance Sheets
(in thousands)
(Unaudited)
| June 30, | December 31, | ||||
| 2021 | 2020 | ||||
| Assets: | |||||
| Cash and cash equivalents | $ | 30,273 | $ | 24,234 | |
| Receivables, net | 31,222 | 26,428 | |||
| Inventories | 21,160 | 18,642 | |||
| Other current assets | 3,811 | 2,560 | |||
| Net property, plant, and equipment | 53,695 | 53,755 | |||
| Goodwill | 51,838 | 51,838 | |||
| Intangible assets, net | 19,090 | 19,718 | |||
| Other assets | 6,197 | 6,029 | |||
| 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 liabilities | 30,972 | 26,311 | |||
| Total stockholders' equity | 186,314 | 176,893 | |||
| Total liabilities and stockholders' equity | $ | 217,286 | $ | 203,204 | |
Contact: Ron Lataille
978-234-0926
Cover |
Aug. 03, 2021 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Aug. 03, 2021 |
| Entity File Number | 001-12648 |
| Entity Registrant Name | UFP Technologies, Inc. |
| Entity Central Index Key | 0000914156 |
| Entity Tax Identification Number | 04-2314970 |
| Entity Incorporation, State or Country Code | DE |
| Entity Address, Address Line One | 100 Hale Street |
| Entity Address, City or Town | Newburyport |
| Entity Address, State or Province | MA |
| Entity Address, Postal Zip Code | 01950-3504 |
| City Area Code | 978 |
| Local Phone Number | 352-2200 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock |
| Trading Symbol | UFPT |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | false |
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