UFP Technologies(UFPT) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 increased by 40% to $16.4 million, compared to $11.7 million in Q3 2023[1] - Sales for Q3 2024 rose 44% to $145.2 million, up from $100.8 million in the same period last year[1] - Adjusted operating income for Q3 2024 increased by 69% to $27.7 million from $16.4 million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 rose 61.4% to $31.2 million from $19.3 million in Q3 2023[4] - Net income (GAAP) for Q3 2024 increased to $16,361,000, compared to $11,694,000 in Q3 2023, representing a growth of 39.3%[13] - Nine-month adjusted net income for 2024 was $47,572,000, compared to $38,358,000 for the same period in 2023, reflecting a growth of 24.0%[13] - Adjusted net income per diluted share for Q3 2024 was $2.39, up 44.8% from $1.65 in Q3 2023[13] Sales and Market Performance - Organic sales growth for Q3 2024 was 9.7%, driven by strong performance in robotic surgery and infection prevention markets[2] - Sales to the medical market surged 52.2% to $132.6 million in Q3 2024, while sales to other markets decreased by 8.2%[3] - Year-to-date sales through September 2024 increased by 20.7% to $360.4 million, compared to $298.6 million in the same period of 2023[3] Cost and Expenses - Gross margin improved to 28.6% in Q3 2024, up from 27.5% in Q3 2023, despite $1.1 million in acquisition-related costs[3] - SG&A expenses (GAAP) for Q3 2024 were $15,789,000, an increase of 26.5% from $12,467,000 in Q3 2023[12] - Acquisition costs for Q3 2024 amounted to $732,000, while for the nine months ended September 30, 2024, they totaled $1,676,000[13] Strategic Initiatives - The company plans to continue executing growth initiatives and integrating recent acquisitions to enhance customer value[2] - The company is expanding operations in the Dominican Republic to support growth and new programs[2] Other Financial Metrics - The company reported a fair value change of contingent consideration of $238,000 for Q3 2024, consistent with the previous year[13] - The weighted average diluted common shares outstanding for Q3 2024 were 7,772,000, compared to 7,709,000 in Q3 2023[13] - The company experienced a significant increase in interest expense, netting $3,475,000 in Q3 2024, compared to $933,000 in Q3 2023[14]