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8-K - FORM 8-K - TUFCO TECHNOLOGIES INC | d302223d8k.htm |
Exhibit 99.1
NEWS RELEASE
For Immediate Release
TUFCO TECHNOLOGIES, INC. ANNOUNCES
FISCAL YEAR 2012 FIRST QUARTER RESULTS
GREEN BAY, WI (February 14, 2012)Tufco Technologies, Inc. (NASDAQ: TFCO), a leading North American manufacturer of wet and dry wipes, and provider of specialty printing services and business imaging products, today announced that its sales for the first quarter of fiscal year 2012, which ended December 31, 2011, were $25,676,600, up 6% from sales for the first quarter of fiscal year 2011. Net loss per diluted share for the first quarter of fiscal 2012 was $0.14 compared to $0.04 net loss per diluted share for the first quarter of fiscal 2011.
In commenting on the results, Jim Robinson, Tufcos President and CEO said, The major contributor to our sales growth was increased seasonal demand within our Newton Business Imaging segment. However, this segment has experienced escalating paper and operating costs, which resulted in reduced gross margin. At Green Bay, reduced sales volume and shifts in our product sales mix and related operating inefficiencies resulted in reduced gross margin. Also, Green Bay relocated its warehouse operation from a third party warehouse to a self-operated warehouse. Savings from this move will begin in the second quarter and continue thereafter.
We are focused on increasing sales volume, improving sales product mix, new product development and cost reduction activities. Some activities will result in one-time expenses, but increased profitability in the long-term, he concluded.
Tufco, headquartered in Green Bay, Wisconsin, has manufacturing operations in Wisconsin and North Carolina.
Information about the results reported herein, or copies of the Companys Quarterly Reports, may be obtained by calling the contact person listed below.
This press release, including the discussion of the Companys fiscal 2012 results in comparison to fiscal 2011 contains forward-looking statements regarding current expectations, risks and uncertainties for future periods. The actual results could differ materially from those discussed herein due to a variety of factors such as the Companys ability to increase sales, changes in customer demand for its products, cancellation of production agreements by significant customers including two Contract Manufacturing customers it depends upon for a significant portion of its business, its ability to meet competitors prices on products to be sold under these production agreements, the effects of the economy in general, including the slow economic recovery from the recent economic downturn, the Companys ability to comply with the financial covenants in its credit facility, the Companys inability to benefit from any general economic improvements, material increases in the cost of raw materials, competition in the Companys product areas, the ability of management to successfully reduce operating expenses, the Companys ability to increase sales and earnings as a result of new projects and services, the Companys ability to successfully install new equipment on a timely basis and to improve productivity through equipment upgrades, the Companys ability to continue to produce new products, the Companys ability to return to profitability and then continue to improve profitability, the Companys ability to successfully attract new customers through its sales initiatives and strengthening its new business development efforts, and the Companys ability to improve the run rates for its products. Therefore, the financial data for the periods presented may not be indicative of the Companys future financial condition or results of operations. The Company assumes no responsibility to update the forward-looking statements contained in this press release.
Contact: | Michael B. Wheeler, VP and CFO |
Tufco Technologies, Inc.
P. O. Box 23500
Green Bay, WI 54305-3500
(920) 336-0054
(920) 336-9041 (Fax)
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TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(Amounts in 000s)
December 31, | September 30, | |||||||
2011 | 2011 | |||||||
ASSETS |
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Cash |
$ | 10 | $ | 8 | ||||
Accounts ReceivableNet |
13,598 | 15,363 | ||||||
InventoriesNet |
17,766 | 14,200 | ||||||
Other Current Assets |
1,472 | 1,335 | ||||||
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Total Current Assets |
32,846 | 30,906 | ||||||
Property, Plant and EquipmentNet |
16,878 | 17,027 | ||||||
GoodwillNet |
7,212 | 7,212 | ||||||
Other Assets |
134 | 136 | ||||||
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Total |
$ | 57,070 | $ | 55,281 | ||||
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LIABILITIES AND STOCKHOLDERS EQUITY |
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Revolving Line of Credit |
$ | 6,500 | $ | 6,449 | ||||
Current Portion of Note Payable |
263 | 259 | ||||||
Accounts Payable |
11,905 | 8,968 | ||||||
Accrued Liabilities |
545 | 572 | ||||||
Other Current Liabilities |
326 | 470 | ||||||
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Total Current Liabilities |
19,539 | 16,718 | ||||||
Long-Term Debt |
701 | 768 | ||||||
Deferred Income Taxes |
1,721 | 2,085 | ||||||
Common Stock and Paid-in Capital |
25,605 | 25,596 | ||||||
Retained Earnings |
11,661 | 12,271 | ||||||
Treasury Stock |
(2,157 | ) | (2,157 | ) | ||||
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Total Stockholders Equity |
35,109 | 35,710 | ||||||
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Total |
$ | 57,070 | $ | 55,281 | ||||
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TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(Amounts in 000s except share and per share data)
Three Months Ended | ||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
Net Sales |
$ | 25,677 | $ | 24,161 | ||||
Cost of Sales |
25,242 | 23,058 | ||||||
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Gross Profit |
435 | 1,103 | ||||||
SG&A Expense |
1,347 | 1,340 | ||||||
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Operating Loss |
(912 | ) | (237 | ) | ||||
Interest Expense |
68 | 64 | ||||||
Interest Income and Other Income |
(8 | ) | (17 | ) | ||||
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Loss Before Income Taxes |
(972 | ) | (284 | ) | ||||
Income Tax Benefit |
(363 | ) | (106 | ) | ||||
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Net Loss |
$ | (609 | ) | $ | (178 | ) | ||
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Net Loss Per Share: |
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Basic |
$ | (0.14 | ) | $ | (0.04 | ) | ||
Diluted |
$ | (0.14 | ) | $ | (0.04 | ) | ||
Weighted Average Common Shares Outstanding: |
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Basic |
4,308,947 | 4,308,947 | ||||||
Diluted |
4,308,947 | 4,308,947 |
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