What Does UFPI's Deckorators Strategic Move Offer? With the acquisition of the new site, Deckorators aims to increase the production capacity for its industry- leading Surestone composite-decking product. The 30-acre site is expected to be transformed into a top-tier facility with approximately 240,000 square feet of manufacturing and warehousing space. UFP Industries, Inc.'s (UFPI) brand, Deckorators, has announced its market presence expansion in New York by acquiring a 30-acre site in Lackawanna, a subur ...

NEWBURYPORT, Mass., March 17, 2025 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (NASDAQ:UFPT), an Innovative designer and custom manufacturer of components, subassemblies, products, and packaging primarily for the medical market, today announced that Chairman and Chief Executive Officer R. Jeffrey Bailly and Chief Financial Officer Ron Lataille will participate in the upcoming KeyBanc Capital Markets Healthcare Forum to be held virtually on March 18, 2025. UFP's presentation is scheduled to begin at 10:30 AM ...

UFP Industries, Inc.’s (UFPI) business segment, UFP Packaging, has expanded its manufacturing footprint in the United States by opening a new corrugated facility in Jeffersonville, IN.This 165,000-square-foot facility features advanced graphics and production capabilities for retail and e-commerce markets. Notably, the new printing and automated production systems position UFP Packaging to deliver exceptional corrugated solutions in the market.UFPI stated that the advancement and expansion of the Jeffersonv ...

Financial Performance - The Company achieved a net sales increase of 26.1% to $504.4 million for the year ended December 31, 2024, compared to $400.1 million in 2023, driven by $70.3 million from acquisitions and an 8.5% organic growth [112]. - Operating income rose by 40.3% to $81.1 million, while net income increased by 31.3% to $59.0 million for the year ended December 31, 2024 [109]. - Gross profit margin improved to 29.1% in 2024 from 28.1% in 2023, attributed to better margins from acquisitions and increased manufacturing efficiencies [113]. - Selling, General, and Administrative Expenses (SG&A) increased by 22.3% to $62.2 million, but as a percentage of net sales, SG&A decreased to 12.3% from 12.7% [114]. Cash Flow and Investments - Net cash provided by operations was approximately $66.6 million for the year ended December 31, 2024, primarily from net income of $59.0 million [125]. - Net cash used in investing activities was approximately $210.2 million, mainly for acquisitions and capital expenditures [127]. - The Company entered into a secured $275 million Amended and Restated Credit Agreement, with outstanding borrowings of approximately $189.4 million as of December 31, 2024 [129][132]. Future Plans and Capital Requirements - The Company plans to continue enhancing manufacturing capacity and may consider additional acquisitions to support growth [136]. - The Company anticipates future capital requirements for expansions, acquisitions, or investments, which could be substantial [137]. - The Board of Directors authorized a stock repurchase program of up to $10.0 million, with approximately $9.4 million available for future repurchases as of December 31, 2024 [138]. - There were no share repurchases during the years ended December 31, 2024, 2023, and 2022 [138]. Accounting and Valuation - The Company evaluates its accounting estimates based on historical experience and current economic conditions, which may affect reported amounts of assets and liabilities [139]. - Fair value of identifiable intangible assets is based on detailed valuations and management's estimates, with potential future contingent consideration liabilities remeasured each reporting period [141]. Market Risk - Market risk includes fluctuations in interest rates, foreign exchange rates, and equity prices, with a weighted average interest rate of approximately 5.9% as of December 31, 2024 [143]. - The Company's cash and cash equivalents primarily consist of U.S. dollar bank accounts, which are not affected by market risk [143]. - Interest on credit facilities ranges from SOFR plus a margin of 1.25% to 2.25% or the bank's prime rate plus a margin of 0.25% to 1.25% [143].

Financial Performance - UFP Technologies reported 2024 net income of $59.0 million, a 31.3% increase from $44.9 million in 2023, with adjusted net income growing 32.5% to $67.6 million[2]. - Net sales for 2024 reached $504.4 million, up 26.1% from $400.1 million in 2023, while fourth-quarter sales increased 41.9% to $144.1 million compared to $101.5 million in Q4 2023[3][5]. - The company's gross margin improved to 29.2% in Q4 2024 from 25.7% in Q4 2023, and for the full year, it increased to 29.1% from 28.1%[5]. - Adjusted operating income for Q4 2024 rose 84.0% to $26.0 million, while full-year adjusted operating income increased 40.4% to $92.3 million[9]. - UFP Technologies experienced organic growth of 6.7% in Q4 and 8.5% for the full year[4]. - MedTech sales surged 48.6% in Q4 to $132.7 million, with full-year MedTech sales up 30.2% to $450.8 million[5]. Cash Flow and Assets - Cash and cash equivalents increased to $13.45 million in 2024 from $5.26 million in 2023, while total assets rose to $628.99 million from $404.14 million[10]. - Total liabilities increased to $286.24 million in 2024 from $118.05 million in 2023, with long-term debt rising to $176.88 million from $28.00 million[10]. Operating Expenses - Adjusted SG&A (Non-GAAP) for Q4 2024 was $16,094, compared to $12,020 in Q4 2023, representing an increase of 33.3%[16]. - Total SG&A (GAAP) for the twelve months ended December 31, 2024, was $62,218, up from $50,889 in 2023, an increase of 22.3%[16]. Earnings and EBITDA - Adjusted net income (Non-GAAP) for Q4 2024 was $19,163, up from $12,640 in Q4 2023, reflecting a growth of 51.9%[19]. - Adjusted net income per diluted share (Non-GAAP) increased to $2.46 in Q4 2024 from $1.64 in Q4 2023, a rise of 50.0%[19]. - EBITDA (Non-GAAP) for Q4 2024 reached $27,133, compared to $15,607 in Q4 2023, marking a significant increase of 73.8%[21]. - Adjusted EBITDA (Non-GAAP) for the twelve months ended December 31, 2024, was $107,321, up from $77,167 in the previous year, an increase of 39.1%[21]. - Net income (GAAP) for Q4 2024 was $16,375, compared to $11,607 in Q4 2023, representing an increase of 41.0%[19]. Strategic Initiatives - The company is expanding operations in the Dominican Republic to support new business and increased demand, necessitating additional plant and equipment investments[4]. - UFP Technologies plans to launch two major programs in the second half of 2025 and is actively pursuing acquisitions to enhance its platform[4]. - Acquisition costs for the twelve months ended December 31, 2024, amounted to $2,520, compared to $0 in 2023[19]. - Amortization of intangible assets for the twelve months ended December 31, 2024, was $6,727, up from $4,403 in 2023, an increase of 52.8%[19]. Shareholder Information - The weighted average diluted common shares outstanding increased slightly to 7,794 in Q4 2024 from 7,712 in Q4 2023[19].

Core Insights - UFP Technologies, Inc. reported a significant increase in net income for 2024, reaching $59.0 million, which is 31.3% higher than the previous year [1] - The company's adjusted net income also saw a substantial rise of 32.5%, totaling $67.6 million for 2024 [1] - Net sales for 2024 were reported at $504.4 million, marking a 26.1% increase compared to $400.1 million in 2023 [1] Financial Performance - For Q4 2024, net income was $16.4 million, a 41.1% increase from $11.6 million in Q4 2023 [2] - Adjusted net income for Q4 2024 grew by 51.6% to $19.2 million [2] - Sales for Q4 2024 reached $144.1 million, up 41.9% from $101.5 million in the same quarter of 2023 [2][4] Growth Metrics - Organic growth for Q4 and the full year was reported at 6.7% and 8.5%, respectively [3] - MedTech sales for Q4 increased by 48.6% to $132.7 million, while sales to other markets decreased by 7.0% [4] - Full-year MedTech sales rose by 30.2% to $450.8 million, with sales to other markets remaining stable at $53.7 million [4] Profitability - Gross margin for Q4 improved to 29.2%, up from 25.7% in Q4 2023, while the full-year gross margin increased to 29.1% from 28.1% [4] - Adjusted operating income for Q4 surged by 84.0% to $26.0 million, and for the full year, it increased by 40.4% to $92.3 million [4] Strategic Developments - The company is expanding operations in the Dominican Republic to meet increased demand and support growth in its Robotic Surgery business [3] - UFP Technologies is actively pursuing acquisitions to strengthen its platform and enhance customer value [3] - The company anticipates launching two major programs in the second half of 2025, supported by a growing pipeline of new business opportunities [3]

Company Overview - UFP Technologies, Inc. is an innovative designer and custom manufacturer specializing in comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products [2] - The company plays a crucial role in the medical device supply chain and serves as a valued outsourcing partner for many leading medical device manufacturers globally [2] - UFP's products include single-use and single-patient devices and components utilized in various medical applications such as minimally invasive surgery, infection prevention, wound care, wearables, orthopedic soft goods, and orthopedic implants [2] Financial Reporting - UFP Technologies plans to report its results for the fourth quarter and the year ended December 31, 2024, on February 25, 2025 [1]

Core Viewpoint - UFP Industries, Inc. reported mixed fourth-quarter 2024 results, with earnings missing estimates while revenues exceeded expectations, both metrics showing year-over-year declines [1][3]. Financial Performance - Earnings per share were $1.20, missing the Zacks Consensus Estimate of $1.23 by 2.4% and declining 25.9% year over year [3]. - Net sales reached $1.46 billion, surpassing the consensus mark of $1.44 billion but down 4.1% from the previous year, primarily due to a 4% decrease in selling prices [3]. Segment Performance - **UFP Retail Solutions**: Reported net sales of $525 million, flat year over year, with organic unit sales growing 1% offset by a 1% decline from product transfers to the Packaging segment [4]. - **UFP Packaging**: Net sales totaled $375 million, down 9% year over year, with an 8% decline in selling prices and a 2% drop in organic unit sales [5]. - **UFP Construction**: Net sales were $487 million, a 5% decline from the previous year, driven by a 7% decrease in selling prices, although organic unit sales increased by 2% [6]. Profitability Metrics - Adjusted EBITDA margin rose 180 basis points to 8.4% in the Retail segment, while it contracted 280 basis points to 10% in the Packaging segment and 360 basis points to 9.2% in the Construction segment [5][7]. - Overall adjusted EBITDA was $132.7 million, down from $165.6 million year over year, with the adjusted EBITDA margin contracting 180 basis points to 9.1% [8]. Balance Sheet and Cash Flow - As of December 28, 2024, the company had nearly $2.5 billion in liquidity, with cash and cash equivalents at $1.17 billion, an increase from $1.1 billion at the end of 2023 [10]. - Long-term debt decreased to $229.8 million from $233.5 million at the end of 2023, while net cash from operating activities was $642.6 million, down from $959.9 million in the prior year [10]. Dividend Announcement - On February 13, 2025, the board approved a quarterly dividend payment of 35 cents per share, a 6% increase from the previous dividend of 33 cents, payable on March 17 [11]. Market Outlook - The company anticipates continued economic challenges in 2025, with subdued demand expected in the first half across Retail, Packaging, and Construction segments [12][13]. - Despite near-term challenges, UFP aims for annual unit sales growth of 7-10% and targets EBITDA margins of 12.5% in the long term [14].

Group 1 - UFP Industries (NASDAQ: UFPI) is highlighted as a potential investment opportunity, focusing on its role as a producer and seller in the industry [1] - The company is associated with Crude Value Insights, which emphasizes cash flow and the generation of value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers to Crude Value Insights benefit from a comprehensive stock model account, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] - A promotional offer is available for a two-week free trial, encouraging engagement with the oil and gas investment community [3]

Core Insights - UFP Technologies has experienced a remarkable share price increase of 12,040% over the past 25 years, turning a $10,000 investment into over $1.2 million, and is currently available at a discount following a 27% dip in share price [1] Group 1: Business Overview - UFP Technologies serves 26 of the 30 largest medical device manufacturers, providing a variety of single-use components and solutions for the medtech industry, including surgical drapes, medical beds, and sterile packaging [3][4] - The company has multiple differentiators that enhance its competitive advantage, including exclusive access to medical-grade materials, numerous patents, high switching costs for customers, and a focus on essential product niches [9] Group 2: Strategic Partnerships - In 2024, UFP signed a four-year, $500 million agreement with Intuitive Surgical to supply sterile drapes for robotic-assisted surgeries, which is expected to drive growth in a rapidly expanding industry [5][6] Group 3: Financial Performance - UFP has achieved a 13% annualized sales growth rate and a 26% annual growth in net income over the past decade, primarily by focusing on higher-margin products [7][8] - The company has begun exploring mergers and acquisitions, adding four companies in the summer of 2024, which is expected to create a flywheel effect for profitability [10][11] Group 4: Valuation and Growth Potential - Following a recent 27% drop, UFP trades at 29 times forward earnings, which is favorable compared to the S&P 500's average of 24, especially given UFP's 24% annual net income growth over the last decade [12] - With industry tailwinds from robotic-assisted surgery, a widening moat, and potential for M&A growth, UFP is positioned for continued success [13]