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8-K - FORM 8-K - TUFCO TECHNOLOGIES INCd302223d8k.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, Tufco’s 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 Company’s Quarterly Reports, may be obtained by calling the contact person listed below.

This press release, including the discussion of the Company’s 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 Company’s 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 Company’s ability to comply with the financial covenants in its credit facility, the Company’s inability to benefit from any general economic improvements, material increases in the cost of raw materials, competition in the Company’s product areas, the ability of management to successfully reduce operating expenses, the Company’s ability to increase sales and earnings as a result of new projects and services, the Company’s ability to successfully install new equipment on a timely basis and to improve productivity through equipment upgrades, the Company’s ability to continue to produce new products, the Company’s ability to return to profitability and then continue to improve profitability, the Company’s ability to successfully attract new customers through its sales initiatives and strengthening its new business development efforts, and the Company’s ability to improve the run rates for its products. Therefore, the financial data for the periods presented may not be indicative of the Company’s 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 000’s)

 

September 30, September 30,
       December 31,      September 30,  
       2011      2011  

ASSETS

       

Cash

     $ 10       $ 8   

Accounts Receivable—Net

       13,598         15,363   

Inventories—Net

       17,766         14,200   

Other Current Assets

       1,472         1,335   
    

 

 

    

 

 

 

Total Current Assets

       32,846         30,906   

Property, Plant and Equipment—Net

       16,878         17,027   

Goodwill—Net

       7,212         7,212   

Other Assets

       134         136   
    

 

 

    

 

 

 

Total

     $ 57,070       $ 55,281   
    

 

 

    

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

       

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   
    

 

 

    

 

 

 

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
    

 

 

    

 

 

 

Total Stockholders’ Equity

       35,109         35,710   
    

 

 

    

 

 

 

Total

     $ 57,070       $ 55,281   
    

 

 

    

 

 

 

 

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TUFCO TECHNOLOGIES, INC.

Condensed Consolidated Statements of Operations

(Amounts in 000’s except share and per share data)

 

September 30, September 30,
       Three Months Ended  
       December 31,  
       2011      2010  

Net Sales

     $ 25,677       $ 24,161   

Cost of Sales

       25,242         23,058   
    

 

 

    

 

 

 

Gross Profit

       435         1,103   

SG&A Expense

       1,347         1,340   
    

 

 

    

 

 

 

Operating Loss

       (912      (237

Interest Expense

       68         64   

Interest Income and Other Income

       (8      (17
    

 

 

    

 

 

 

Loss Before Income Taxes

       (972      (284

Income Tax Benefit

       (363      (106
    

 

 

    

 

 

 

Net Loss

     $ (609    $ (178
    

 

 

    

 

 

 

Net Loss Per Share:

       

Basic

     $ (0.14    $ (0.04

Diluted

     $ (0.14    $ (0.04

Weighted Average Common Shares Outstanding:

       

Basic

       4,308,947         4,308,947   

Diluted

       4,308,947         4,308,947   

 

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