“I am extremely pleased with our Q1 results, as sales grew 37.2% and EPS nearly doubled,” said
“The improvement in our bottom-line results, driven by a 530-basis-point increase in gross margins to 29.4% from 24.1% in Q1 2022, was even more substantial,” Bailly said. “Many key challenges of 2022, including the limited availability and high cost of raw materials and direct labor, and the integration of three acquisitions and a greenfield plant start-up, have become less pressing. We are also benefitting from improved operating efficiency and price adjustments that followed our raw material and labor cost increases. All of these factors are helping us to realize higher margins.”
“It is also important to note we achieved these results after absorbing a
Financial Highlights:
- Sales for the first quarter increased 37.2% to
$97.8 million , from$71.2 million in the first quarter of 2022. First quarter sales to the medical market increased 59.5% to$83.8 million from$52.6 million in the first quarter of 2022. First quarter sales to all other markets declined 25.4% to$13.9 million from$18.7 million in the first quarter of 2022 primarily due to the Company’s disposition of its molded fiber business in July, 2022. - Gross profit as a percentage of sales (“gross margin”) increased to 29.4% for the first quarter, from 24.1% in the first quarter of 2022.
- Selling, general and administrative expenses (“SG&A”) for the first quarter increased 29.9% to
$13.0 million compared to$10.0 million in the first quarter of 2022. As a percentage of sales, SG&A decreased 0.7% to 13.3% in the first quarter of 2023 compared to 14.0% in the first quarter of 2022. - Operating income for the first quarter increased 101.9% to
$12.8 million , from$6.4 million in the first quarter of 2022. Adjusted operating income for the first quarter increased 120.3% to$15.7 million from$7.1 million in the first quarter 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. - Net income increased 100.5% to
$9.7 million in the first quarter of 2023, from$4.9 million in the first quarter of 2022. - Earnings per share increased 98.4% to
$1.27 per diluted share outstanding in the first quarter of 2023, from$0.64 in the first quarter of 2022. - EBITDA for the first quarter of 2023 increased 64.8% to
$15.5 million from$9.4 million in the first quarter of 2022. Adjusted EBITDA increased 78.7% to$19.5 million from$10.9 million in the first quarter of 2022. 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
Contact:
978-234-0926, rlataille@ufpt.com
Consolidated Condensed Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended | ||||||
March, 31 | ||||||
2023 | 2022 | |||||
Net sales | $ | 97,753 | $ | 71,242 | ||
Cost of sales | 69,052 | 54,108 | ||||
Gross profit | 28,701 | 17,134 | ||||
Selling, general and administrative expenses | 13,006 | 10,011 | ||||
Acquisition Costs | - | 775 | ||||
Change in fair value of contingent consideration | 2,853 | - | ||||
Loss (gain) on disposal of fixed assets | 1 | (12 | ) | |||
Operating income | 12,841 | - | 6,360 | |||
Interest expense, net | 869 | 327 | ||||
Other expense (income) | 77 | (52 | ) | |||
Income before income tax expense | 11,895 | 6,085 | ||||
Income tax expense | 2,156 | 1,227 | ||||
Net income | $ | 9,739 | $ | 4,858 | ||
Net income per share outstanding | $ | 1.28 | $ | 0.64 | ||
Net income per diluted share outstanding | $ | 1.27 | $ | 0.64 | ||
Weighted average shares outstanding | 7,592 | 7,544 | ||||
Weighted average diluted shares outstanding | 7,681 | 7,630 | ||||
Consolidated Condensed Balance Sheets
(in thousands)
(unaudited)
2023 | 2022 | ||||
Assets: | |||||
Cash and cash equivalents | $ | 6,503 | $ | 4,451 | |
Receivables, net | 60,142 | 55,117 | |||
Inventories | 56,649 | 53,536 | |||
Other current assets | 3,622 | 3,242 | |||
Net property, plant, and equipment | 59,027 | 58,072 | |||
113,159 | 113,028 | ||||
Intangible assets, net | 67,346 | 68,361 | |||
Other assets | 24,334 | 22,385 | |||
Total assets | $ | 390,782 | $ | 378,192 | |
Liabilities and equity: | |||||
Accounts payable | $ | 20,454 | $ | 19,961 | |
Current installments, net of long-term debt | 4,000 | 4,000 | |||
Other current liabilities | 27,738 | 32,000 | |||
Long-term debt, excluding current installments | 56,000 | 51,000 | |||
Other liabilities | 36,106 | 33,686 | |||
Total liabilities | 144,298 | 140,647 | |||
Total equity | 246,484 | 237,545 | |||
Total liabilities and stockholders' equity | $ | 390,782 | $ | 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; 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 due to inflation, the war in
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
Table 1: Adjusted Operating Income Reconciliation
(in thousands)
Three Months Ended | ||||||
2023 | 2022 | |||||
Operating income (GAAP) | $ | 12,841 | $ | 6,360 | ||
Adjustments: | ||||||
Acquisition Costs | - | 775 | ||||
Change in fair value of contingent consideration | 2,853 | - | ||||
Loss (gain) on disposal of fixed assets | 1 | (12 | ) | |||
Adjusted operating income (Non-GAAP) | $ | 15,695 | $ | 7,123 | ||
Table 2: EBITDA Reconciliation
(in thousands)
Three Months Ended | ||||||
2023 | 2022 | |||||
Net income (GAAP) | $ | 9,739 | $ | 4,858 | ||
Income tax expense | 2,156 | 1,227 | ||||
Interest expense, net | 869 | 327 | ||||
Depreciation | 1,671 | 1,987 | ||||
Amortization of intangible assets | 1,106 | 1,029 | ||||
EBITDA (Non-GAAP) | $ | 15,541 | $ | 9,428 | ||
Adjustments: | ||||||
Share based compensation | 1,056 | 692 | ||||
Acquisition Costs | - | 775 | ||||
Change in fair value of contingent consideration | 2,853 | - | ||||
Loss (gain) on disposal of fixed assets | 1 | (12 | ) | |||
Adjusted EBITDA (Non-GAAP) | $ | 19,451 | $ | 10,883 | ||
Source:
2023 GlobeNewswire, Inc., source