UFP Technologies, Inc. (UFPT) has reported 11.04 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1.49 million, or $0.20 a share in the quarter, compared with $1.68 million, or $0.23 a share for the same period last year. Revenue during the quarter grew 7.58 percent to $36.50 million from $33.93 million in the previous year period. Gross margin for the quarter contracted 414 basis points over the previous year period to 22.42 percent. Total expenses were 93.81 percent of quarterly revenues, up from 92.33 percent for the same period last year. That has resulted in a contraction of 149 basis points in operating margin to 6.19 percent.
Operating income for the quarter was $2.26 million, compared with $2.60 million in the previous year period.
"I am pleased by our continued progress," said R. Jeffrey Bailly, chairman and chief executive officer. "Sales grew 5.2% for the year and 7.6% in the fourth quarter, fueled by 12.6% year-over-year growth in our medical sales." "We achieved these results despite experiencing some manufacturing inefficiencies related to our plant consolidations in the Midwest and Northeast,” Bailly said. “While focused on maintaining an uninterrupted supply of products to our customers, we have made steady progress qualifying our relocated medical parts to run on the new, more efficient equipment weve installed. This is done on a painstaking, part-by-part basis that requires our customers’ participation. As we approach the end of this process, we have turned our attention to improving operating efficiency with a series of cost-cutting initiatives, including optimized cell layouts and workforce reductions."
Working capital increasesUFP Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $60.29 million as at Dec. 31, 2016, up 14.58 percent or $7.67 million from $52.62 million on Dec. 31, 2015. Current ratio was at 7.31 as on Dec. 31, 2016, up from 5.79 on Dec. 31, 2015.
Debt comes down significantly
UFP Technologies, Inc. has recorded a decline in total debt over the last one year. It stood at $0.86 million as on Dec. 31, 2016, down 54.22 percent or $1.01 million from $1.87 million on Dec. 31, 2015. Total debt was 0.67 percent of total assets as on Dec. 31, 2016, compared with 1.56 percent on Dec. 31, 2015. Debt to equity ratio was at 0.01 as on Dec. 31, 2016, down from 0.02 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
