TUFCO TECHNOLOGIES INC - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - TUFCO TECHNOLOGIES INC	d82172e8vk.htm

Exhibit 99.1

1 of 4

NEWS RELEASE

For Immediate Release

TUFCO TECHNOLOGIES, INC. ANNOUNCES
FISCAL YEAR 2011 SECOND QUARTER AND FIRST SIX MONTHS RESULTS

GREEN BAY, WI (May 9, 2011)—Tufco Technologies, Inc. (NASDAQ: TFCO), a leading provider of branded contract wet and dry wipes converting in North America and a provider of specialty printing services and business imaging products, today announced that fiscal year 2011 second quarter sales were $28,611,000, up 37% over 2010 second quarter sales. For the first six months of fiscal 2011, sales were $52,772,000, compared to $40,917,000 for the first six months of fiscal 2010, an increase of 29%.

Net income per diluted share for the second quarter of fiscal 2011 was $0.03 per share compared to a net loss of $0.05 per diluted share for the second quarter of fiscal 2010. For the first six months of fiscal 2011, net loss per diluted share was $0.01 per share compared to a net loss per diluted share of $0.09 for the first six months of fiscal 2010.

In commenting on the results, Louis LeCalsey, Tufco’s President and CEO said, “While profitability was restored in the second quarter, the sales volume increases we saw were dampened by pricing and cost pressures. The second quarter sales increase results from a combination of increased sales to existing customers and sales of new products to both existing and new customers. We expect overall continued profit improvement in the third quarter.”

Tufco, headquartered in Green Bay, Wisconsin, has manufacturing operations in Wisconsin and North Carolina.

Page 2 of 4

Information about the results reported herein, or copies of the Company’s Quarterly Reports,
may be obtained by calling the contact person listed below.

This press release, including the discussion of the Company’s fiscal 2011 results in comparison to fiscal 2010 contains forward-looking statements regarding current expectations, risks and uncertainties for future periods. The actual results could differ materially from those discussed herein due to a variety of factors such as the Company’s ability to increase sales, changes in customer demand for its products, cancellation of production agreements by significant customers including two Contract Manufacturing customers it depends upon for a significant portion of its business, its ability to meet competitors’ prices on products to be sold under these production agreements, the effects of the economy in general, including the slow economic recovery from the recent economic downturn, the Company’s ability to refinance or replace its line of credit, which expires January 31, 2012, the Company’s inability to benefit from any general economic improvements, material increases in the cost of raw materials, competition in the Company’s product areas, the ability of management to successfully reduce operating expenses including labor and waste costs in relation to net sales, the Company’s ability to increase sales and earnings as a result of new projects, the Company’s ability to successfully install new equipment on a timely basis, the Company’s ability to continue to produce new products, the Company’s ability to continue to improve profitability, the Company’s ability to successfully attract new customers through its sales initiatives and strengthening its new business development efforts, and the Company’s ability to improve the run rates for its products. Therefore, the financial data for the periods presented may not be indicative of the Company’s future financial condition or results of operations. The Company assumes no responsibility to update the forward-looking statements contained in this press release.


Contact:		Michael B. Wheeler, VP and CFO Tufco Technologies, Inc. P. O. Box 23500 Green Bay, WI 54305-3500 (920) 336-0054 (920) 336-9041 (Fax)

Page 3 of 4

TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(Amounts in 000’s)


	March 31,			September 30,
	2011			2010
ASSETS
Cash	$	7		$	8
Accounts Receivable — Net		12,572			14,211
Inventories — Net		18,050			14,330
Other Current Assets		639			538

Total Current Assets		31,268			29,087
Property, Plant and Equipment — Net		18,073			18,640
Goodwill — Net		7,212			7,212
Other Assets		137			136

Total	$	56,690		$	55,075


LIABILITIES AND STOCKHOLDERS’ EQUITY

Revolving Line of Credit	$	6,141		$	4,477
Current Portion of Note Payable		252			244
Accounts Payable		9,832			9,975
Accrued Liabilities		737			555
Other Current Liabilities		542			435

Total Current Liabilities		17,504			15,686

Long-Term Debt		899			1,027
Deferred Income Taxes		2,224			2,257

Common Stock and Paid-in Capital		25,556			25,545
Retained Earnings		12,665			12,718
Treasury Stock		(2,158	)		(2,158	)
Total Stockholders’ Equity		36,063			36,105


Total	$	56,690		$	55,075

Page 4 of 4

TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(Amounts in 000’s except share and per share data)


	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2011			2010			2011			2010
Net Sales	$	28,611		$	20,875		$	52,772		$	40,917
Cost of Sales		26,886			19,855			49,944			38,852

Gross Profit		1,725			1,020			2,828			2,065
SG&A Expense		1,489			1,357			2,829			2,634

Operating Income (Loss)		236			(337	)		(1	)		(569	)
Interest Expense		68			34			132			57
Interest Income and Other Income		(31	)		—			(48	)		(15	)

Income (Loss) Before Income Taxes		199			(371	)		(85	)		(611	)
Income Tax Expense (Benefit)		74			(138	)		(32	)		(228	)

Net Income (Loss)	$	125		$	(233	)	$	(53	)	$	(383	)

Net Income (Loss) Per Share:
Basic	$	0.03		$	(0.05	)	$	(0.01	)	$	(0.09	)
Diluted	$	0.03		$	(0.05	)	$	(0.01	)	$	(0.09	)
Weighted Average Common Shares Outstanding:
Basic		4,308,947			4,308,947			4,308,947			4,308,947
Diluted		4,309,609			4,308,947			4,308,947			4,308,947

Attached files

Stock widget

Investing forum

TUFCO TECHNOLOGIES INC Reports