UFP TECHNOLOGIES, INC.
FOR IMMEDIATE RELEASE CONTACT:
March
4, 2003 Ron
Lataille (978) 352-2200
UFP Announces
improved 2002 Results, expanded line of credit
Georgetown, Mass. (March 4, 2003). UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and specialty component products, today announced significantly improved operating results for its fiscal year ended December 31, 2002. Operating income for the year was $466,000, compared to an operating loss of $3.7 million in 2001. The improvement in operating results was on slightly lower sales of $61.2 million. The Company reported a net loss of ($234,000) or ($0.05) per share for 2002, compared to a loss of ($3 million) or ($0.72) per share in 2001.
Sales for the fourth quarter
of 2002 were $13.7 million, or 9.6% lower than sales of $15.2 million for the
fourth quarter of 2001. Operating
income for the fourth quarter of 2002 was $187,000 compared to an operating
loss of ($1.6 million) in 2001.
Net income was $4,000 for the fourth quarter, compared to a net loss of
($1.5 million) or ($0.35) per share in 2001. The fourth quarter results of 2001 include a restructuring charge
of $1,016,000.
"We are pleased with
the progress we made in 2002," said R. Jeffrey Bailly, President &
CEO. "We implemented the plant
consolidation and restructuring plan outlined at the beginning of the year, which
resulted in significantly improved operating results. The across-the-board improvements include greater labor and
material efficiency as well as reductions in overhead, selling, general and
administrative expenses, and total company debt. In addition, we were able to win several new contracts, including
our previously announced $77 million automotive program commencing in 2004, all
of which bodes well for our future."
"I am also pleased that
we recently closed on a new, expanded, three-year credit facility with Fleet
Capital, a respected national lender," Bailly added. "It includes a
$12 million revolving line of credit, subject to available collateral, and $7.5
million in term loans secured by the Company's equipment and real estate. This
additional credit will help finance the growth we are anticipating over the
next few years."
Sam Philbrick, Northeast
Division President of Fleet Capital said, "We are pleased to have UFP
Technologies as a new client. They are
a well-managed company backed by solid assets and a blue chip customer base. We
are impressed with the way UFP management has navigated through a challenging
economy and continues to grow by attracting new customers."
UFP Technologies is an
innovative designer and manufacturer of a broad range of high performance
cushion foam and molded fiber packaging products, and specialty foam and
plastic products for industrial and consumer markets. The company’s Packaging division is a leader in the emerging
market for environmentally sound molded fiber interior packaging.
This news release contains forward-looking information that involves
risks and uncertainties, including statements about expected positive results
from the company’s investments, available credit, the ability of the company to
obtain more automotive contracts, and the expected volume of sales under the
company’s new contract with a large Tier-1 automotive supplier. The company's
new $12 million revolving credit facility is subject to available collateral
based upon receivable and inventory levels and, therefore, may not all be available
to the company. For example, as of February 28, 2003, based upon borrowings
outstanding and collateral levels, the company had availability of $3.3
million. The amount of availability can fluctuate significantly. The company
cannot guarantee that it will benefit at all from its contract with the
automotive supplier. This contract is terminable by the automotive supplier for
any reason, subject to a cancellation charge. In addition, the $77 million
revenue value of the contract is only an estimate, based on the projected needs
of the automotive supplier. The company’s revenues are directly dependent on
the ability of the automotive supplier to develop, market, and sell its
products in a timely, cost-effective manner. If the automotive supplier’s needs
decrease over the course of the eight-year contract, the company’s estimated
revenues from this contract may also decrease. Even if the company generates
revenue from the project, the company cannot guarantee that the project will be
profitable, particularly if revenues from the contract are less than expected.
Investors are cautioned that such forward-looking statements involve other
risks and uncertainties, including the ability of the company to achieve
positive results due to competition, evolving customer requirements,
difficulties in integrating acquired businesses and product lines, difficulties
associated with the roll out of new products and other factors. 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
company’s 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
company’s expectations or any change in events, conditions or circumstances on
which any such statement is based.
