GREEN BAY, Wis., May 14, 2009 (GLOBE NEWSWIRE) -- Tufco Technologies, Inc. (Nasdaq:TFCO), the largest contract converter of branded wet and dry wipes in North America and a leader in specialty printing services and business imaging products, today announced that fiscal year 2009 second quarter sales were $19,455,000, down 34% over fiscal year 2008 second quarter sales. For the first six months of 2009, sales were $42,641,000, compared to $54,422,000 for the 2008 first six months, a decrease of 22%.
Net loss per diluted share for the 2009 second quarter was $0.15 per share compared to $0.04 net income per diluted share for the second quarter of 2008. For the first six months of 2009, net loss per diluted share was $0.15 per share compared to $0.05 net income per share for the first six months of 2008.
In commenting on the results, Louis LeCalsey, Tufco's President and CEO said, "The major cause of our second quarter decreases in sales volume and earnings was a substantial decline in demand from our consumer products customers. While we did generate new business during the second quarter, it, along with cost reductions and productivity improvements, was not enough to offset the drop in demand for our consumer products. However, we expect to show improved sales volume as the economy improves and retailers begin to replenish inventories and new business continues to improve."
"It is important to note, on the business building side, that our new canister line is scheduled to start up in July," he concluded.
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 2009 results in comparison to fiscal 2008 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, its ability to renew its production agreements with these customers, the effects of the economy in general, including the recent economic decline, an inability to increase sales due to the recent economic conditions, reductions in consumer demand, the Company's inability to benefit from any general improvements, material increases in the cost of raw materials, 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, 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 return to profitability and then to continue to improve profitability, the Company's ability to successfully attract new customers through its sales initiatives 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)
March 31, September 30,
2009 2008
------------- -------------
ASSETS
Cash $ 5 $ 68
Accounts Receivable - Net 10,066 11,771
Inventories - Net 13,169 14,940
Other Current Assets 712 1,111
------------- -------------
Total Current Assets 23,951 27,890
Property, Plant and Equipment - Net 18,143 18,037
Goodwill - Net 7,212 7,212
Other Assets 125 122
------------- -------------
Total $ 49,430 $ 53,261
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable $ 5,342 $ 8,320
Accrued Liabilities 613 563
Other Current Liabilities 184 700
------------- -------------
Total Current Liabilities 6,140 9,583
Long-Term Debt 3,764 3,000
Deferred Income Taxes 2,893 2,896
Common Stock and Paid-in Capital 25,429 25,421
Retained Earnings 13,336 13,981
Treasury Stock (2,131) (1,620)
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Total Stockholders' Equity 36,634 37,782
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Total $ 49,430 $ 53,261
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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
March 31, March 31,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Net Sales $ 19,455 $ 29,604 $ 42,641 $ 54,422
Cost of Sales 19,429 28,161 41,577 51,875
----------- ----------- ----------- -----------
Gross Profit 26 1,442 1,063 2,547
SG&A Expense 1,081 1,046 2,107 2,016
Gain on Asset Sales -- -- (38) --
----------- ----------- ----------- -----------
Operating Income (1,054) 396 (1,006) 531
Interest Expense
(Income) 26 82 69 169
Interest Income and
Other (Income)
Expense -- -- (14) (18)
----------- ----------- ----------- -----------
Income Before Income
Tax (1,080) 315 (1,061) 380
Income Tax Expense (423) 123 (416) 149
----------- ----------- ----------- -----------
Net Income $ (657) $ 191 $ (645) $ 231
----------- ----------- ----------- -----------
Net Income Per Share:
Basic $ (0.15) $ 0.04 $ (0.15) $ 0.05
Diluted $ (0.15) $ 0.04 $ (0.15) $ 0.05
Weighted Average
Common Shares
Outstanding:
Basic 4,342,813 4,526,106 4,377,528 4,530,875
Diluted 4,342,813 4,535,726 4,377,528 4,544,167