Tufco Technologies, Inc. Announces Fiscal Year 2014 First Quarter Results
February 14 2014 - 11:50AM
Tufco Technologies, Inc. (Nasdaq:TFCO), a leading provider of
contract converting, printing, laminating and business imaging
products, today announced that for the first quarter of fiscal year
2014, sales were $22,029,000, compared to the first quarter of
fiscal year 2013 sales of $28,348,000. Net loss was $52,000 or
$0.01 per diluted share for the first quarter of fiscal 2014
compared to net income of $740,000 or $0.17 per diluted share for
the first quarter of fiscal 2013.
As previously disclosed, on December 20, 2013, the Company
announced that it had signed a definitive merger agreement (the
"Merger Agreement") with affiliates of Griffin Holdings, LLC at a
price of $6.07 per share. The transaction is to be effected by a
tender offer (the "Offer"), which has been launched by Griffin's
wholly owned subsidiaries Tufco Holdings, LLC ("Parent") and
Packers Acquisition Sub, Inc. ("Sub") and is scheduled to expire at
midnight on February 21, 2014, followed by a second step merger
(the "Merger"). The Offer and the Merger are subject to customary
closing conditions and there can be no assurance that such
transactions will be consummated.
In commenting on the results, Jim Robinson, Tufco's CEO and
President said, "The Company saw decreased profitability in the
first quarter of fiscal 2014 compared to the first quarter of
fiscal 2013 primarily due to decreased sales and increased
non-operating administrative expenses resulting from Tufco's
pending transaction with Griffin Holdings, LLC.
"Additionally, the Company reduced borrowings under the credit
facility by $749,000 during the first quarter of fiscal 2014," he
concluded.
Tufco, headquartered in Green Bay, Wisconsin, has manufacturing
and warehousing 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 2014 results in comparison to fiscal 2013 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, non-renewal or 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, the Company's inability to benefit from
any general economic improvements, react to material increases in
the cost of raw materials or competition in the Company's product
areas, the ability of management to successfully reduce operating
expenses, the Company's ability to increase sales and earnings as a
result of new projects and services, the Company's ability to
successfully install new equipment on a timely basis and to improve
productivity through equipment upgrades, the Company's ability to
continue to produce new products, the Company's ability to comply
with the financial covenants in its credit facility, the Company's
ability to extend or refinance its credit facility upon expiration
on December 31, 2014, the Company's ability to return to and
sustain profitable operations, the Company's ability to
successfully attract new customers through its sales initiatives
and strengthening its new business development efforts, the
Company's ability to improve the run rates for its products, and
changes to regulations governing its operations or other factors
beyond the Company's control. 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.
Further, all statements regarding the timing and the closing of
the Offer and Merger transactions; the ability of Parent to
complete the transactions considering the various closing
conditions; and any assumptions underlying any of the foregoing,
are forward looking statements. These intentions, expectations, or
results may not be achieved in the future and various important
factors could cause actual results or events to differ materially
from the forward-looking statements that the Company makes,
including uncertainties as to the timing of the Offer and Merger;
uncertainties as to how many of the Company's stockholders will
tender their stock in the Offer; the possibility that competing
offers may be made; the possibility that various closing conditions
to the transactions may not be satisfied or waived, including that
a governmental entity may prohibit or delay the consummation of the
transaction; that Parent or Sub do not receive the proceeds of the
financing; or that there is a material adverse change of the
Company.
|
TUFCO TECHNOLOGIES,
INC. |
Condensed Consolidated Balance
Sheets |
(Amounts in 000's) |
|
|
|
|
|
|
|
December 31, |
September 30, |
|
2013 |
2013 |
|
|
|
ASSETS |
|
|
|
|
|
Cash |
$ 134 |
$ 8 |
Accounts Receivable - Net |
10,423 |
11,096 |
Inventories - Net |
14,965 |
14,873 |
Other Current Assets |
1,222 |
959 |
Total Current Assets |
26,744 |
26,936 |
|
|
|
Property, Plant and Equipment - Net |
14,170 |
14,790 |
Other Assets - Net |
140 |
138 |
Total |
$ 41,054 |
$ 41,864 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Revolving Line of Credit |
$ 417 |
$ 1,166 |
Current Portion of Note Payable |
295 |
290 |
Accounts Payable |
5,357 |
5,094 |
Accrued Liabilities |
346 |
755 |
Other Current Liabilities |
1,026 |
780 |
Total Current Liabilities |
7,441 |
8,085 |
|
|
|
Long-Term Debt |
128 |
203 |
Deferred Income Taxes |
1,736 |
1,783 |
|
|
|
Common Stock and Paid-in Capital |
25,720 |
25,713 |
Retained Earnings |
8,186 |
8,237 |
Treasury Stock |
(2,157) |
(2,157) |
Total Stockholders' Equity |
31,749 |
31,793 |
|
|
|
Total |
$ 41,054 |
$ 41,864 |
|
TUFCO TECHNOLOGIES,
INC. |
Condensed Consolidated
Statements of Operations |
(Amounts in 000's except share
and per share data) |
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
|
|
|
|
2013 |
2012 |
|
|
|
Net Sales |
$ 22,029 |
$ 28,348 |
|
|
|
Cost of Sales |
20,420 |
25,855 |
|
|
|
Gross Profit |
1,609 |
2,493 |
|
|
|
SG&A Expense |
1,677 |
1,262 |
Gain on Asset Sales |
-- |
-- |
Operating Income (Loss) |
(68) |
1,231 |
|
|
|
Interest Expense |
21 |
60 |
Interest Income and Other Income |
-- |
(9) |
Income (Loss) Before Income Taxes |
(89) |
1,180 |
|
|
|
Income Tax Expense (Benefit) |
(37) |
440 |
|
|
|
Net Income (Loss) |
$ (52) |
$ 740 |
|
|
|
Net Income (Loss) Per Share: |
|
|
Basic |
$ (0.01) |
$ 0.17 |
Diluted |
$ (0.01) |
$ 0.17 |
|
|
|
Weighted Average Common Shares
Outstanding: |
|
|
Basic |
4,308,947 |
4,308,947 |
Diluted |
4,308,947 |
4,315,872 |
CONTACT: Tim Splittgerber, CFO
Tufco Technologies, Inc.
P. O. Box 23500
Green Bay, WI 54305-3500
(920) 336-0054
(920) 338-2711 (Fax)
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