GREEN BAY, Wis., Aug. 12, 2008 (PRIME NEWSWIRE) -- Tufco Technologies, Inc. (Nasdaq:TFCO), a leader in providing diversified contract wet and dry wipes converting and printing, as well as wide web flexographic specialty printing services and business imaging products, today announced that fiscal year 2008 third quarter sales were $30,674,000, up 3% over fiscal year 2007 third quarter sales. For the first nine months of 2008, sales were $85,096,000, up 1% from the comparable period of 2007.
Net income per diluted share for the 2008 third quarter was $0.07 per share compared to $0.06 net income per diluted share for the third quarter of 2007. For the first nine months of 2008, net income per diluted share was $0.12 per share compared to $0.10 for the 2007 first nine months.
In commenting on the results, Louis LeCalsey, Tufco's President and CEO said, "The general economic slowdown and consequent customer demand shifts continue to be a major challenge for the customers of our Contract Manufacturing sector who are predominately consumer products marketers. While, for the first three quarters of fiscal year 2008, we have been successful in generating financial results better than fiscal year 2007 despite the economic downturn, we will achieve lower sales and net income in the fourth quarter comparable to a year ago when our Contract Manufacturing sector had the benefit of both stronger retail demand and two simultaneous new product launches. We have had success in bringing in several new customers and will start up significant new customer wipes projects early in the first quarter of fiscal year 2009. We are, also, anticipating actively competing in the manufacturing of canister wipes for both existing and new customers when our recently announced canister line becomes operational in the spring of 2009. Our Business Imaging sector, which sells primarily to distributors who focus on the restaurant, convenience store and hospitality industries, is also experiencing the negative impact on those industries associated with the general economic slowdown. But, we anticipate improvements in that sector through fiscal 2009 as initiatives with new customers and new products take hold."
Tufco, headquartered in Green Bay, Wisconsin, has manufacturing operations in Wisconsin and North Carolina.
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 2008 results in comparison to fiscal 2007 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 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, material increases in the cost of base paper stock, competition in the Company's product areas, an inability of management to successfully reduce operating expenses including labor and waste costs in relation to net sales without damaging the long-term direction of the Company, 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 produce new products, the Company's ability to continue to improve profitability, the Company's ability to successfully attract new customers through our sales initiatives to fill its newly created capacity, the effects of the economy in general 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.
TUFCO TECHNOLOGIES, INC.
Condensed Balance Sheets
(Amounts in 000's)
June 30, September 30,
2008 2007
---- ----
ASSETS
Cash & Cash Equivalents $ 6 $ 7
Accounts Receivable - Net 13,919 15,302
Inventories 15,704 16,355
Other Current Assets 1,445 1,368
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Total Current Assets 31,074 33,032
Property, Plant and Equipment - Net 18,206 19,002
Goodwill - Net 7,212 7,212
Other Assets 122 127
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Total $ 56,614 $ 59,373
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable $ 10,845 $ 11,707
Accrued Liabilities 718 513
Income Taxes Payable 325 107
Other Current Liabilities 915 717
Total Current Liabilities 12,803 13,044
Long-Term Debt 3,500 6,192
Deferred Income Taxes 2,524 2,537
Common Stock and Paid-in Capital 25,385 25,351
Retained Earnings 13,953 13,391
Treasury Stock (1,551) (1,142)
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Total Stockholders' Equity 37,787 37,600
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Total $ 56,614 $ 59,373
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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 Six Months Ended
June 30, June 30,
2008 2007 2008 2007
---- ---- ---- ----
Net Sales $ 30,674 $ 29,815 $ 85,096 $ 84,420
Cost of Sales 29,007 28,165 80,882 80,292
---------- ---------- ---------- ----------
Gross Profit 1,667 1,650 4,214 4,128
SG&A Expense 1,073 1,075 3,089 3,028
---------- ---------- ---------- ----------
Operating Income 594 575 1,125 1,100
Interest Expense
(Income) 50 133 218 382
Interest Income and
Other (Income) Expense -- (1) (18) (18)
---------- ---------- ---------- ----------
Income Before
Income Tax 544 443 925 736
Income Tax Expense 213 156 363 271
---------- ---------- ---------- ----------
Net Income $ 331 $ 287 $ 562 $ 465
---------- ---------- ---------- ----------
Net Income Per Share:
Basic $ 0.07 $ 0.06 $ 0.12 $ 0.10
Diluted $ 0.07 $ 0.06 $ 0.12 $ 0.10
Weighted Average Common
Shares Outstanding:
Basic 4,479,743 4,535,640 4,513,831 4,535,376
Diluted 4,488,560 4,572,142 4,525,631 4,562,988