UFP Technologies, Inc. (NASDAQ: UFPT) has reported impressive financial results for the year ended December 31, 2023. The company's net income for the year was $44.9 million, or $5.83 per diluted common share outstanding, showing an increase from the previous year's net income of $41.8 million, or $5.45 per diluted common share outstanding.
The company's net sales for 2023 were $400.1 million, marking a 13.1% increase from the $353.8 million in sales for 2022. For the fourth quarter of 2023, UFP Technologies reported net income of $11.6 million, or $1.51 per diluted common share outstanding, compared to $8.5 million or $1.10 per diluted common share outstanding in the same period of 2022. The sales for the fourth quarter of 2023 were $101.5 million, an 11.2% increase from the $91.2 million in the fourth quarter of 2022.
The company's gross profit as a percentage of sales ("gross margin") also showed improvement, increasing to 25.7% for the fourth quarter of 2023, from 25.5% in the same quarter of 2022. The full-year gross margin for 2023 increased to 28.1%, from 25.5% in 2022.
Furthermore, UFP Technologies reported that its adjusted operating income for the fourth quarter increased by 14.2% to $13.0 million from $11.4 million in the same quarter of 2022. The full-year adjusted operating income for 2023 saw a significant increase of 37.9% to $61.3 million from $44.5 million in 2022.
The company's adjusted net income for the fourth quarter of 2023 increased by 33.5% to $11.8 million from $8.8 million in the same period of 2022. The full-year 2023 adjusted net income increased by 41.6% to $47.7 million from $33.7 million in 2022. Adjusted EBITDA for the year ended December 31, 2023, increased by 29.6% to $77.3 million from $59.6 million in the previous year.
UFP Technologies' financial statements also revealed growth in its medtech sales, which increased by 14.9% to $89.3 million in the fourth quarter of 2023. Full-year medtech sales for 2023 increased by 21.0% to $346.4 million. However, sales to all other markets decreased by 9.5% to $12.2 million in the fourth quarter of 2023, and by 20.6% to $53.7 million for the full year of 2023.
The company's balance sheet also showed a healthy financial position, with total assets amounting to $404.1 million and total equity of $286.1 million as of December 31, 2023.
In conclusion, UFP Technologies, Inc. has demonstrated strong financial performance in 2023, with notable increases in net income, sales, gross margin, and adjusted operating income. The company's focus on strengthening its platform and integrating recent acquisitions has contributed to its robust performance, and it remains optimistic about its future growth prospects. As a result of these announcements, the company's shares have moved 2.4% on the market, and are now trading at a price of $215.62. Check out the company's full 8-K submission here.
