Newburyport, Mass., March 7, 2023 – UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom manufacturer of engineered solutions primarily for the medical market, today reported net income of $41.8 million or $5.45 per diluted common share outstanding for its year ended December 31, 2022, compared to net income of $15.9 million or $2.09 per diluted common share outstanding for 2021. Net Sales for 2022 were $353.8 million compared to 2021 sales of $206.3 million.
For its fourth quarter ended December 31, 2022, the Company reported net income of $8.5 million or $1.10 per diluted common share outstanding, compared to $3.2 million or $0.42 per diluted common share outstanding in the same period of 2021. Sales for the fourth quarter 2022 were $91.2 million versus 2021 fourth quarter sales of $56.3 million.
“I am very pleased with our 2022 results, as sales grew 72% and EPS grew 160%,” said R. Jeffrey Bailly, Chairman & CEO. “We integrated two key acquisitions completed at the end of 2021, DAS Medical in the Dominican Republic and Contech Medical in Rhode Island and Costa Rica. We also completed and integrated another major acquisition, Advant Medical, which brought us a key strategic location in Galway, Ireland along with new capabilities and many important synergies. Each acquisition has performed above our expectations and made us more valuable to our customers. In addition, we completed our factory start-up in Tijuana, Mexico, transitioning from a dirt field to a completed facility shipping production parts in just eight months. We certified our quality system and launched our first program ahead of schedule and under budget.”
“Amid all this exciting activity, our base business grew organically at an impressive 18.6% in 2022,” said Bailly. “And operating income grew by 161%, or 106% after eliminating non-operational items, such as acquisition earnout adjustments and gains on the sale of real estate and our Molded Fiber division, which we sold to tighten our focus on our fastest-growing market opportunities.”
“I am very proud of the UFP team, which grew substantially in 2022 and now totals approximately 3,000 associates,” Bailly added. “They worked incredibly hard navigating challenging supply chain issues and a difficult labor market, and delivered excellent results. Looking ahead, I am very bullish about our future as we continue to realize acquisition synergies and gain the benefits of our recent investments in new clean rooms, production capacity, talent and more. And with only about $55 million in debt, our balance sheet remains strong, allowing us to execute additional internal and external growth initiatives.”
- Sales for the fourth quarter increased 61.9% to $91.2 million, from $56.3 million in the same period of 2021. Sales for the full year of 2022 increased 71.5% to $353.8 million from $206.3 million in the same period of 2021.
- Fourth quarter sales to the medical market increased 108.0%. Sales to all other markets decreased 28.5% to $13.5 million, largely due to the sale of Molded Fiber. Year-to-date sales to the medical market increased 116.0% to $286.2 million. Sales to all other markets decreased 8.4% to $67.6 million.
- Gross profit as a percentage of sales (“gross margin”) increased to 25.5% for the fourth quarter, from 23.2% in the same quarter of 2021. Gross margin for the full year of 2022 increased to 25.5%, from 24.8% in the same period of 2021.
- Selling, general and administrative expenses (“SG&A”) for the fourth quarter increased 46.1% to $11.9 million compared to $8.1 million in the same quarter of 2021. Full year 2022 SG&A increased 55.3% to $45.8 million, from $29.5 million in the same period of 2021.
- For the fourth quarter, operating income increased to $10.9 million, from $4.6 million in the same quarter of 2021. Full year 2022 operating income increased to $55.4 million, from $21.2 million in the same period of 2021, and adjusted operating income increased to $44.5 million, from $21.6 million. 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.
UFPT 2022 Earnings Release 3/7/2023 (2 of 4)
- Net income increased to $8.5 million in the fourth quarter, from $3.2 million in the same period of 2021. Full year 2022 net income increased to $41.8 million, from $15.9 million in the same period of 2021.
- EBITDA for the year ended December 31, 2022 increased to $70.6 million from $32.1 million in the same period of 2021, and adjusted EBITDA increased to $59.6 million from $32.5 million. 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.
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About UFP Technologies, Inc.
UFP Technologies is a designer and custom manufacturer of engineered solutions primarily for the medical market. Utilizing highly specialized foams, films and plastics, UFP converts raw materials through laminating, molding, radio frequency welding and fabricating techniques. The Company is diversified by also providing highly engineered solutions to customers in the aerospace & defense, automotive, and industrial markets.