UFP Technologies, Inc. (NASDAQ: UFPT) has reported record-breaking results for its second quarter ended June 30, 2024. The company's net income for the quarter was $13.6 million, or $1.75 per diluted common share outstanding, compared to $11.9 million, or $1.55 per diluted common share outstanding for the same period in 2023. This represents a 14.0% increase in net income.
Sales for the second quarter reached $110.2 million, up from $100.0 million in the second quarter of 2023, marking a 10.1% increase. For the six-month period ended June 30, 2024, sales were $215.2 million, compared to $197.8 million for the same period in 2023, representing an 8.8% increase.
The company's gross profit as a percentage of sales ("gross margin") increased to 30.0% for the second quarter of 2024, up from 29.6% in the same quarter of 2023. However, the gross margin for the six-month period ended June 30, 2024, slightly decreased to 29.3% from 29.5% in the same period of 2023.
Selling, general and administrative expenses ("SG&A") for the second quarter increased 13.0% to $13.9 million in 2024, compared to $12.3 million in the same quarter of 2023. SG&A as a percentage of sales increased to 12.6% in the second quarter of 2024, from 12.3% in the same period of 2023.
Operating income for the second quarter increased to $18.0 million from $17.0 million in the same quarter of 2023. Adjusted operating income for the second quarter also saw a significant increase of 10.3%, reaching $19.1 million from $17.3 million in 2023.
Net income for the six-month period ended June 30, 2024, was $26.2 million, compared to $21.6 million for the same period in 2023. Adjusted net income for the same period also increased to $27.3 million from $24.0 million in 2023.
Adjusted EBITDA for the second quarter increased 11.7% to $23.9 million from $21.4 million in the second quarter of 2023. For the six-month period ended June 30, 2024, adjusted EBITDA increased 9.2% to $44.6 million from $40.8 million in the same period of 2023.
UFP Technologies completed three acquisitions between June 24 and July 15, which are expected to collectively add an estimated $90 million in revenue and $20 million in EBITDA. The pro-forma leverage ratio upon completion of these acquisitions is approximately 1.8x, leaving the company with sufficient capacity under the loan agreement.
The company's consolidated condensed balance sheets show significant growth in assets, with total assets reaching $422.4 million as of June 30, 2024, compared to $404.1 million as of December 31, 2023. Liabilities and total stockholders' equity also reflect a positive trend, with total stockholders' equity increasing to $310.2 million from $286.1 million.
UFP Technologies remains optimistic about its future, citing strong sales growth, improved gross margins, and a robust pipeline of product development business, in addition to the recent acquisitions and a new $275 million line of credit.
As a result of these announcements, the company's shares have moved -2.9% on the market, and are now trading at a price of $316.28. If you want to know more, read the company's complete 8-K report here.
