UFP Technologies, Inc. (UFPT) has reported a 33.99 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $2.67 million, or $0.37 a share in the quarter, compared with $1.99 million, or $0.28 a share for the same period last year.
Revenue during the quarter grew 8.07 percent to $37.22 million from $34.44 million in the previous year period. Gross margin for the quarter contracted 490 basis points over the previous year period to 22.71 percent. Total expenses were 89.04 percent of quarterly revenues, down from 91.13 percent for the same period last year. This has led to an improvement of 209 basis points in operating margin to 10.96 percent.
Operating income for the quarter was $4.08 million, compared with $3.06 million in the previous year period.
"We continue to make solid progress on a number of fronts," said R. Jeffrey Bailly, chairman & chief executive officer. "We increased revenue by 8% in Q3, led by a nearly 20% rise in medical sales. Net income increased 34%, as a $1.7 million settlement for raw material overcharges more than offset manufacturing inefficiencies related to our plant consolidations and some one-time expenses incurred during the quarter."
Working capital increases
UFP Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $58.13 million as at Sep. 30, 2016, up 8.88 percent or $4.74 million from $53.39 million on Sep. 30, 2015. Current ratio was at 6.05 as on Sep. 30, 2016, up from 5.38 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 60 days for the quarter from 85 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 54 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 49 days for the previous year period. At the same time, days payable outstanding went down to 15 days for the quarter from 17 for the same period last year.
Debt comes down significantly
UFP Technologies, Inc. has recorded a decline in total debt over the last one year. It stood at $1.11 million as on Sep. 30, 2016, down 47.57 percent or $1.01 million from $2.12 million on Sep. 30, 2015. Total debt was 0.87 percent of total assets as on Sep. 30, 2016, compared with 1.76 percent on Sep. 30, 2015. Debt to equity ratio was at 0.01 as on Sep. 30, 2016, down from 0.02 as on Sep. 30, 2015.
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