UFP Technologies(UFPT) - 2024 Q4 - Annual Results

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].