For its fourth quarter ended
“I am very pleased with our fourth quarter and full year 2023 results,” said
“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
“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 yearMedTech 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
Consolidated Condensed Statements of Income (in thousands, except per share data) (unaudited) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
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) | ||||||
2023 | 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 | ||||
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
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
Table 1: Adjusted Operating Income Reconciliation (in thousands) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
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 Ended | Twelve Months Ended | ||||||||||||||||
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 | ||||||||||||||||
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:
978-234-0926, rlataille@ufpt.com
Source:
2024 GlobeNewswire, Inc., source