UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
Current Report Pursuant to
Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 2014
UFP Technologies, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware |
(State or Other Jurisdiction of Incorporation) |
001-12648 |
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04-2314970 |
(Commission File Number) |
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(IRS Employer Identification No.) |
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172 East Main Street, Georgetown, MA |
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01833-2107 |
(Address of Principal Executive Offices) |
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(Zip Code) |
(978) 352-2200 |
(Registrants Telephone Number, Including Area Code) |
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On February 27, 2014, UFP Technologies, Inc. (the Company) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2013. 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.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit |
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Description |
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99.1 |
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Press release dated February 27, 2014 of UFP Technologies, Inc. announcing its financial results for the fourth quarter and year ended December 31, 2013. |
SIGNATURES
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.
Dated: February 27, 2014 |
UFP TECHNOLOGIES, INC. | |
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By: |
/s/ Ronald J. Lataille |
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Ronald J. Lataille, Chief Financial |
Exhibit 99.1
UFP Technologies, Inc. |
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www.ufpt.com |
172 East Main Street |
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Contact: Ron Lataille |
Georgetown MA 01833 USA |
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978-352-2200 |
FOR IMMEDIATE RELEASE
UFP Technologies Announces Record 2013 Results
Georgetown, Mass., February 27, 2014. UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and component products, today reported net income of $11.3 million or $1.59 per diluted common share outstanding for its fiscal year ended December 31, 2013, 3.5% higher than net income of $10.9 million or $1.55 per diluted common share outstanding for its 2012 fiscal year. Sales for 2013 were $139.2 million, 6.3% higher than 2012 sales of $131.0 million.
For its fourth quarter ended December 31, 2013, the Company reported net income of $3.4 million or $0.47 per diluted common share outstanding, 5.4% more than net income of $3.2 million or $0.45 per diluted common share outstanding in the same period of 2012. Sales for the fourth quarter 2013 were $35.0 million versus 2012 fourth quarter sales of $33.4 million.
I am pleased with our 2013 results, said R. Jeffrey Bailly, Chairman and CEO. This was our eighth consecutive year of record earnings and fourth straight year of record sales. We are still experiencing strong demand for our medical products. We have also seen a modest rebound in military demand, although sales remain below historical levels. In the automotive market, we continue to manage legacy program attrition but still expect modest net growth in 2014.
Overall, market conditions remain soft, so we will keep strengthening our platform to improve our competitiveness and increase our value to customers, Bailly continued. For example, to better serve our southwestern customers and counter new molded fiber competitors in the region, we will expand our El Paso operations and add two new molded fiber lines in 2014. This new state-of-the-art equipment, similar to that installed in our Iowa facility in 2013, should improve efficiency and reduce freight costs for product we currently ship from Iowa.
We also plan to consolidate our Glendale Heights, Illinois, facility into our Grand Rapids, Michigan, facility when the lease ends in July. This decision was driven by a steep rent increase and declining sales at our Illinois facility, and the large savings projected by combining the two facilities. We own our 250,000-square-foot Grand Rapids facility, and it has the space and personnel to absorb our Illinois business. This move also furthers our larger goal of improving efficiency by maintaining fewer, larger plants. The Illinois team has performed admirably; we will work hard to retain as many of those associates as possible, and provide severance benefits for those who do not relocate.
UFP Technologies is a producer of innovative custom-engineered components, products, and specialty packaging. Using foams, plastics, composites, and natural fiber materials, the Company designs and manufactures a vast range of solutions primarily for the medical, automotive, aerospace and defense, and packaging 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, without limitation, statements about the Companys prospects, anticipated trends in the different markets in which the Company competes, including the molded fiber, medical, military and automotive markets, expectations regarding customer demand for the Companys molded fiber product lines, anticipated advantages relating to the Companys decision to consolidate its Glendale Heights, Illinois facility into its Grand Rapids, Michigan facility and the expected costs savings and efficiencies associated therewith, expectations regarding the Companys employees affected by the plant consolidation, anticipated advantages of maintaining fewer, larger plants, anticipated advantages the Company expects to realize from its investments and capital expenditures, including the development of and investments in its molded fiber product lines, expectations regarding the manufacturing capacity and efficiencies of the Companys new production equipment, statements about the Companys acquisition opportunities and strategies, its participation and growth in multiple markets, its business opportunities, the Companys 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 associated with the implementation of new production equipment in a timely, cost-efficient manner, risks that any benefits from such new equipment may be delayed or not fully realized, or that the Company may be unable to fully utilize its expected production capacity, and risks and uncertainties associated with plant closures and expected efficiencies from consolidating manufacturing, the identification of suitable acquisition
candidates and the successful, efficient execution of acquisition transactions and integration of any such acquisition candidates, 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 Companys 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 Companys expectations or any change in events, conditions, or circumstances on which any such statement is based.
Consolidated Condensed Statement of Income
(in thousands, except Per Share Data)
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Unaudited |
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Three Months Ended |
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Twelve Months Ended |
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December 31, |
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December 31, |
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2013 |
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2012 |
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2013 |
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2012 |
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Net sales |
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$ |
34,993 |
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$ |
33,370 |
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$ |
139,223 |
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$ |
130,962 |
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Cost of sales |
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24,128 |
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23,303 |
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98,574 |
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92,777 |
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Gross profit |
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10,865 |
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10,067 |
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40,649 |
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38,185 |
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SG&A |
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5,540 |
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5,465 |
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23,240 |
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21,531 |
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Gain on sale of assets |
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11 |
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(12 |
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Operating income |
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5,325 |
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4,602 |
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17,398 |
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16,666 |
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Interest expense, other income & expenses |
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(76 |
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(47 |
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(205 |
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(92 |
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Income before income taxes |
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5,249 |
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4,555 |
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17,193 |
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16,574 |
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Income taxes |
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1,872 |
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1,352 |
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5,917 |
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5,679 |
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Net income from consolidated operations |
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$ |
3,377 |
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$ |
3,203 |
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$ |
11,276 |
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$ |
10,895 |
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Weighted average shares outstanding |
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6,888 |
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6,724 |
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6,824 |
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6,679 |
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Weighted average diluted shares outstanding |
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7,133 |
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7,055 |
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7,105 |
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7,028 |
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Per Share Data |
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Net income per share outstanding |
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$ |
0.49 |
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$ |
0.48 |
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$ |
1.65 |
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$ |
1.63 |
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Net income per diluted share outstanding |
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$ |
0.47 |
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$ |
0.45 |
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$ |
1.59 |
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$ |
1.55 |
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Consolidated Condensed Balance Sheets
(in thousands)
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December 31, |
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2013 |
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2012 |
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Assets: |
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Cash |
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$ |
37,303 |
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$ |
33,480 |
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Receivables |
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17,032 |
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17,836 |
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Inventories |
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11,048 |
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9,695 |
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Other current assets |
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3,449 |
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3,483 |
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Net property, plant, and equipment |
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25,507 |
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23,318 |
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Other assets |
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10,681 |
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10,805 |
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Total assets |
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$ |
105,020 |
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$ |
98,617 |
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Liabilities and equity: |
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Short-term debt |
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$ |
976 |
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$ |
1,550 |
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Accounts payable |
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3,081 |
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4,088 |
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Other current liabilities |
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8,265 |
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7,593 |
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Long-term debt |
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2,867 |
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8,314 |
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Other liabilities |
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4,241 |
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3,811 |
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Total liabilities |
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19,430 |
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25,356 |
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Total equity |
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85,590 |
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73,261 |
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Total liabilities and stockholders equity |
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$ |
105,020 |
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$ |
98,617 |
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