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8-K - FORM 8-K - TUFCO TECHNOLOGIES INCd84164e8vk.htm
Exhibit 99.1

Page 1 of 4

NEWS RELEASE
For Immediate Release
TUFCO TECHNOLOGIES, INC. ANNOUNCES
FISCAL YEAR 2011 THIRD QUARTER AND FIRST NINE MONTHS RESULTS
GREEN BAY, WI (August 11, 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 third quarter sales were $27,986,000, up 15% over fiscal year 2010 third quarter sales. For the first nine months of fiscal 2011, sales were $80,758,000, compared to $65,272,000 for the first nine months of fiscal 2010, an increase of 24%.
Net loss per diluted share for the third quarter of fiscal 2011 was $67,000 or $0.02 per share compared to a net loss of $87,000 or $0.02 per diluted share for the third quarter of fiscal 2010. For the first nine months of fiscal 2011, net loss per diluted share was $0.03 per share compared to $0.11 net loss per diluted share for the first nine months of fiscal 2010.
In commenting on the results, Louis LeCalsey, Tufco’s President and CEO said, “Our Green Bay Contract Manufacturing operation has reported increased sales, increased margins and improved gross profit for both the quarter and year to date. Our Newton Business Imaging operation has reported flat sales, decreased margins and decreased gross profit , for both the quarter and year to date, due to an inability to pass on paper cost increases through sales price increases. All of Tufco continues to focus on increasing sales and reducing costs.”
Tufco, headquartered in Green Bay, Wisconsin, has manufacturing operations in Wisconsin and North Carolina.


 

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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)


 

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TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(Amounts in 000’s)
                 
    June 30,     September 30,  
    2011     2010  
ASSETS
               
 
               
Cash
  $ 7     $ 8  
Accounts Receivable — Net
    12,594       14,211  
Inventories — Net
    17,178       14,330  
Other Current Assets
    814       538  
 
           
Total Current Assets
    30,593       29,087  
 
               
Property, Plant and Equipment — Net
    17,705       18,640  
Goodwill — Net
    7,212       7,212  
Other Assets
    247       136  
 
           
Total
  $ 55,757     $ 55,075  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Revolving Line of Credit
  $ 7,467     $ 4,477  
Current Portion of Note Payable
    255       244  
Accounts Payable
    7,905       9,975  
Accrued Liabilities
    579       555  
Other Current Liabilities
    527       435  
 
           
Total Current Liabilities
    16,733       15,686  
 
               
Long-Term Debt
    833       1,027  
Deferred Income Taxes
    2,177       2,257  
 
               
Common Stock and Paid-in Capital
    25,574       25,545  
Retained Earnings
    12,598       12,718  
Treasury Stock
    (2,158 )     (2,158 )
 
           
Total Stockholders’ Equity
    36,014       36,105  
 
           
 
               
Total
  $ 55,757     $ 55,075  
 
           


 

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TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(Amounts in 000’s except share and per share data)
                                 
    Three Months Ended     Nine Months Ended  
    June 30,     June 30,  
    2011     2010     2011     2010  
Net Sales
  $ 27,986     $ 24,355     $ 80,758     $ 65,272  
 
                               
Cost of Sales
    26,592       23,058       76,536       61,910  
 
                       
 
                               
Gross Profit
    1,394       1,297       4,222       3,362  
 
                               
SG&A Expense
    1,436       1,388       4,265       4,022  
 
                       
Operating Loss
    (42 )     (91 )     (43 )     (660 )
 
                               
Interest Expense
    66       48       198       105  
Interest Income and Other Income
    (1 )           (49 )     (16 )
 
                       
Loss Before Income Taxes
    (107 )     (139 )     (192 )     (749 )
 
                               
Income Tax Benefit
    (40 )     (52 )     (72 )     (279 )
 
                       
 
                               
Net Loss
  $ (67 )   $ (87 )   $ (120 )   $ (470 )
 
                       
 
                               
Net Loss Per Share:
                               
Basic
  $ (0.02 )   $ (0.02 )   $ (0.03 )   $ (0.11 )
Diluted
  $ (0.02 )   $ (0.02 )   $ (0.03 )   $ (0.11 )
 
                               
Weighted Average Common Shares Outstanding:
                               
Basic
    4,308,947       4,308,947       4,308,947       4,308,947  
Diluted
    4,308,947       4,308,947       4,308,947       4,308,947