UFP Technologies (UFPT) Reports 2021 Revenue of $206.3 Million and EPS of $2.09
News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here.
UFP Technologies, Inc. (Nasdaq: UFPT), an innovative designer and custom manufacturer of components, subassemblies, products and packaging primarily for the medical market, today announced net income of $15.9 million or $2.09 per diluted common share outstanding for its fiscal year ended December 31, 2021, compared to net earnings of $13.4 million or $1.77 per diluted common share outstanding for 2020. Sales for 2021 were $206.3 million compared to 2020 sales of $179.4 million.
For its fourth quarter ended December 31, 2021, the Company reported net earnings of $3.2 million or $0.42 per diluted common share outstanding, compared to $4.2 million or $0.55 per diluted common stock outstanding during the same period of 2020. Fourth quarter 2021 sales were $56.3 million compared to fourth quarter 2020 sales of $45.2 million.
“I am very satisfied with our 2021 results,” said R. Jeffrey Bailly, Chairman and CEO. “It was a year of solid top line and net income growth, with sales up 15%, operating profit up 27% and EPS up 18%. We also made substantial progress in our strategic initiatives acquisitions in the fourth quarter that we believe will position UFP for long-term success, provide us with new capabilities that will increase our value for medical customers, as well as strategically located factories in low-cost countries. Additionally, we have made excellent progress in setting up our new operations in Tijuana, Mexico, another strategically important location, which should be operational by the second quarter of this year.”
“The year also presented many challenges. Rising raw material costs, limited availability of direct labor and supply chain issues reduced our gross margins and bottom line, particularly in the second half of 2021,” added Bailly. “We were able to mitigate rising material costs by passing on price increases, most of which will take effect by the end of the first quarter. And absences due to Covid are falling after a difficult January. However, we are expect these supply chains We have a large backlog of open orders awaiting the arrival of raw materials which are currently in limited supply.
“Once these issues are resolved, we will be able to increase production to catch up with customer demand and accelerate our growth,” Bailly said. “With this strong pent-up demand, combined with our strong balance sheet, the expected impact of our newly acquired entities and other attractive acquisition opportunities, we are very optimistic about our future.”
- Fourth-quarter sales increased 24.8% to $56.3 million from $45.2 million in the same period of 2020. Full-year 2021 sales increased 15 .0% to $206.3 million, compared to $179.4 million for the same period of 2020.
- In the fourth quarter, sales to the medical market increased by 33.3%. Sales to the aerospace and defense market decreased by 3.2%, while sales to the automotive market decreased by 13.5%. All other sales (consumer, electronics and industrial) increased by 26.6%.
- Sales for the year 2021 in the medical market increased by 10.2%. Sales to the aerospace and defense and automotive markets increased by 25.7% and 6.8% respectively. All other sales (consumer, electronics and industrial) increased by 32.8%.
- Gross margin as a percentage of sales (“gross margin”) decreased to 23.2% for the fourth quarter, from 25.2% in the same quarter of 2020. Gross margin for the full year 2021 decreased at 24.8%, compared to 24.9% in the same period of 2020.
- Selling, general and administrative (“SG&A”) expenses for the fourth quarter increased 29.4% to $8.1 million from $6.3 million in the same quarter of 2020. For the entire In full year 2021, selling, general and administrative expenses increased 7.2% to $29.4 million from $27.5 million in the same period. of 2020.
- For the fourth quarter, operating profit decreased to $4.6 million from $4.9 million in the same quarter of 2020. Operating profit for the full year 2021 increased to $21.2 million, compared to $16.7 million in the same period of 2020.
- Net income decreased to $3.2 million in the fourth quarter from $4.2 million in the same period of 2020. Net income for fiscal 2021 increased to $15.9 million from 13 $.4 million in the same period of 2020.
- Effective March 31, the UFP’s Global Industry Classification Standard (GICS) code is updated to 35101020-Healthcare Supplies, to better describe our business and focus in medical markets.
About UFP Technologies, Inc.
UFP Technologies is an innovative designer and custom manufacturer of components, sub-assemblies, products and packaging primarily for the medical market. Using highly specialized foams, films and plastics, UFP converts raw materials through lamination, molding, radio frequency welding and fabrication techniques. The company is diversifying 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. These statements include, but are not limited to, statements about the Company’s outlook; statements about the potential impact that the novel coronavirus (“COVID-19”) pandemic may have on the Company’s business, financial condition and results of operations, including with respect to the various markets to which the Company participates, the demand for its products, the well-being and availability of Company employees, the continued operation of Company sites, the Company’s efforts to respond to the pandemic, particularly with regard to security and the availability of its employees, the maintenance of its facilities and the adequacy of the Company’s supply chain, inventory, liquidity and capital resources, including increased costs related to such efforts, l impact of the pandemic on the business of the Company’s suppliers and customers, and the overall impact the pandemic may have on the Company’s financial results in 2022; statements about the Company’s acquisition strategies and opportunities as well as the Company’s growth potential and growth strategies; statements on the integration and performance of recent acquisitions; the completion of the Company’s operations in Tijuana; expectations regarding customer demand; and any indication that the Company may be able to maintain or increase its sales, earnings, or earnings per share, or its sales, earnings, or earnings by growth rate. Therefore, actual results may differ materially. Readers are referred to the Company’s filings with the SEC, in particular the latest 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 post 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 such statement is based.
Condensed consolidated income statements(in thousands, except per share data))(unaudited)
|Three months completed||Twelve month period ended|
|the 31st of December||the 31st of December|
|Net sales||$||56,344||$||45 153||$||206 320||$||179,373|
|Cost of sales||43,268||33,769||155 206||134,689|
|Gross profit||13,076||11,384||51 114||44,684|
|Selling, general and administrative expenses||8,138||6,287||29,480||27,493|
|Loss (gain) on disposal of fixed assets||29||160||(14||)||459|
|Interest expense, net||(28||)||(17||)||(39||)||(83||)|
|Other income (expenses)||24||(4||)||26||(366||)|
|Profit before income tax expense||4,629||4,916||21,205||16,283|
|income tax expense||1,411||744||5,319||2,914|
|Net earnings per outstanding share||$||0.43||$||0.56||$||2.11||$||1.79|
|Net earnings per diluted share outstanding||$||0.42||$||0.55||$||2.09||$||1.77|
|Weighted average number of shares outstanding||7,532||7,496||7,524||7,484|
|Diluted weighted average number of shares outstanding||7,637||7,576||7,615||7,568|
Condensed Consolidated Balance Sheets(in thousands)(unaudited)
|The 31st of December,||The 31st of December,|
|Cash and cash equivalents||$||11,117||$||24,234|
|Other current assets||3,383||2,560|
|Net tangible fixed assets||56,569||53,755|
|Intangible assets, net||67,585||19,718|
|Total assets||$||334 132||$||203 204|
|Liabilities and equity:|
|Other current liabilities||24,095||11,016|
|Total Liabilities and Equity||$||334 132||$||203 204|
Contact: Ron Lataille978-234-0926, [email protected]
Source: UFP Technologies, Inc.