NEWBURYPORT, Mass., March 4, 2021 (GLOBE NEWSWIRE) – UFP Applied sciences, Inc. (Nasdaq: UFPT), an modern designer and customized producer of elements, sub-assemblies, merchandise and packaging primarily for the medical market, At this time reported web earnings of $ 13.4 million or $ 1.77 per diluted frequent share excellent for the yr ended December 31, 2020, in comparison with web earnings of $ 19.8 million or 2.63 $ per diluted frequent share excellent for 2019. Gross sales for 2020 have been $ 179.4 million in comparison with 2019 gross sales of $ 198.4 million.

For its fourth quarter ended December 31, 2020, the Firm reported web revenue of $ 4.2 million or $ 0.55 per diluted frequent share excellent, in comparison with $ 5.8 million or $ 0.77 per diluted frequent share excellent throughout the identical interval of 2019. Fourth quarter 2020 gross sales have been $ 45.2 million in comparison with fourth quarter 2019 gross sales of $ 50.3 million.

“I’m pleased with our efficiency in 2020 and enthusiastic about our future,” mentioned R. Jeffrey Bailly, President and CEO. “Our crew has completed a wonderful job in responding to the Covid-19 pandemic, reorganizing our factories to make sure the protection of our workers and our guests; easily managing provide chain points whereas persevering with to satisfy the important wants of our clients; by slicing thousands and thousands of {dollars} in prices. and bettering our money stability by over $ 20 million. Gross sales for the yr have been down 9.6%, pushed by a 6.8% drop in medical gross sales and a 19.1% decline in our superior elements enterprise. Nevertheless, our product growth exercise grew by 63%, which bodes effectively for future medical manufacturing income. Medical gross sales declined primarily on account of a lower in elective surgical procedures. We anticipate these to return to pre-pandemic ranges by This autumn 2021 after which enhance on account of pent-up demand. And, whereas all of our markets fell within the second and third quarters, we noticed a powerful rebound within the shopper and aerospace and protection markets by the top of the yr. “

“Working revenue fell by round 32%,” continued Mr. Bailly. “Nevertheless, vital value reductions and effectivity positive aspects all year long have resulted in a gentle enchancment in gross margins from 23.3% in Q2, to 24.3% in Q3, at 25, 2% in This autumn. I’m assured that thousands and thousands of {dollars} in financial savings from these value discount initiatives can be everlasting and that when gross sales return to pre-pandemic ranges we can be a stronger and extra worthwhile enterprise. “

“We stay dedicated to our technique of progress in acquisitions and our disciplined strategy to choosing candidates,” added Bailly. “We proceed to evaluate alternatives that may enhance our price for our clients by including new capabilities, differentiated supplies, strategic geographies or synergistic value financial savings.”

“With our sturdy stability sheet presently comprising $ 28 million in money, $ 50 million in line of credit score, a powerful pipeline of inside and exterior progress alternatives and higher enterprise prospects, we stay very optimistic about our future,” Bailly mentioned.

Monetary Highlights:

• Fourth-quarter gross sales declined 10.2% to $ 45.2 million from $ 50.3 million in the identical interval of 2019. Full-year 2020 gross sales have been down 9.6% at $ 179.4 million, up from $ 198.4 million in the identical interval of 2019.
• Fourth quarter gross sales to the medical market have been down 19.4%. Gross sales to the aerospace and protection market elevated 22.1% whereas gross sales to the automotive market declined 6.1%. All different gross sales (shopper, electronics and industrial) elevated 15.3%.
• Gross sales for the yr 2020 to the medical market decreased by 6.8%. Gross sales to the aerospace and protection and automotive markets declined 8.4% and 27.0%, respectively. All different gross sales (shopper, electronics and industrial) fell 10.5%.
• The gross margin as a share of gross sales (“gross margin”) decreased to 25.2% for the fourth quarter, from 27.4% in the identical quarter of 2019. The gross margin for the complete yr of 2020 decreased to 24, 9%, in comparison with 27.2% in the identical interval of 2019.
• Promoting, common and administrative (“SG&A”) bills for the fourth quarter decreased 10.5% to $ 6.3 million from $ 7.0 million in the identical quarter of 2019. Promoting bills, Basic and administrative bills for the yr 2020 decreased 6.0% to $ 27.5 million, in comparison with $ 29.3 million in the identical interval of 2019.
• For the fourth quarter, working revenue decreased to $ 4.9 million from $ 6.7 million in the identical quarter of 2019. Full-year working revenue decreased to $ 16.7 million {dollars}, up from $ 24.7 million in the identical interval of 2019.
• Web revenue decreased to $ 4.2 million within the fourth quarter from $ 5.8 million in the identical interval of 2019. Web revenue for the yr 2020 decreased to $ 13.4 million from 19 , $ 8 million in the identical interval of 2019.

About UFP Applied sciences, Inc.

UFP Applied sciences is an modern designer and a tailored producer of elements, sub-assemblies, merchandise and packaging primarily supposed for the medical market. Utilizing extremely specialised foams, movies and plastics, UFP converts uncooked supplies by laminating, molding, RF welding and manufacturing strategies. The corporate is diversified by additionally offering extremely technical options to clients within the aerospace and protection, automotive, shopper, electronics and industrial markets.

Ahead-looking statements

This press launch incorporates statements regarding anticipated monetary efficiency and / or future enterprise prospects, occasions and plans which might be forward-looking statements. These statements embody, however will not be restricted to, statements in regards to the outlook for the corporate; statements in regards to the potential impression that the novel coronavirus (“COVID-19”) pandemic might have on the enterprise, monetary situation and outcomes of operations of the corporate, together with with respect to the varied markets by which the corporate participates, the demand for its merchandise, the well-being and availability of the corporate’s workers, the continued operation of the corporate’s websites, the corporate’s efforts to take care of the pandemic, together with with regard to the protection of its workers, the upkeep of its services and the sufficiency of the Firm’s provide chain, stock, liquidity and capital assets, together with the elevated prices related to these efforts, ‘impression of the pandemic on the actions of the corporate’s suppliers and clients and the general impression that the pandemic might have on the corporate’s monetary ends in 2021; statements on the Firm’s acquisition methods and alternatives, its progress potential and its progress methods; expectations concerning buyer demand; expectations concerning the corporate’s liquidity and capital assets, together with the sufficiency of its money reserves and the supply of borrowing capability to finance potential future operations and / or acquisitions; the anticipated revenues and the timing of these revenues; anticipated developments and potential benefits within the varied markets by which the Firm competes, together with medical, aerospace and protection, automotive, shopper, electronics and industrial markets, and the Firm’s plans to develop into a few of its markets; and any indication that the Firm could possibly keep or enhance its gross sales, earnings or earnings per share, or its charges of progress in gross sales, earnings or earnings per share. Consequently, precise outcomes could differ materially. Readers are referred to paperwork filed by the Firm with the SEC, particularly the most recent reviews on Types 10-Okay and 10-Q. The forward-looking statements contained herein converse solely of the Firm’s expectations as of the date of this press launch. The Firm expressly disclaims any obligation or dedication to publicly submit any replace or revision to such assertion to mirror any change within the expectations of the Firm or any change in occasions, situations or circumstances upon which such assertion relies.

Condensed Consolidated Statements of Earnings
(in hundreds, besides per share knowledge)
(unaudited)

Condensed consolidated stability sheets
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(unaudited)