NEWBURYPORT, Mass., May 01, 2024 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (NASDAQ:UFPT), a designer and custom manufacturer of comprehensive solutions primarily for the medical market, today reported net income of $12.7 million or $1.64 per diluted common share outstanding for its first quarter ended March 31, 2024, compared to net income of $9.7 million or $1.27 per diluted common share outstanding for the first quarter of 2023. Net Sales for the first quarter were $105.0 million compared to 2023 first quarter sales of $97.8 million. "I am very pleased with our financial results and continued progress on a number of key strategic fronts," said R. Jeffrey Bailly, Chairman & CEO. "In Q1 we generated 7.4% organic sales growth in both our MedTech and Advanced Components businesses. Operating income and net income grew 24% and 30%, respectively. Our growth in the MedTech space was primarily attributable to an increase in robotic surgery and infection prevention revenue. This more than offset continued softness in other segments such as orthopedics and patient surfaces, where multiple important customers are still taking below-normal levels of product as they work through excess inventory." "We strengthened our platform and positioned ourselves for future growth with the addition of new talent and the completion of large long-term customer and vendor agreements," Bailly said. "Our expansion in the Dominican Republic is largely complete, with most of the start-up inefficiencies related to equipment validation and operator training behind us. This allowed us to revert to a more efficient 2-shift operation, helping to enhance gross margins, which have improved sequentially from our second half of 2023. In addition, our Mexico operation, where sales grew 47% over the prior year, is now a solid contributor to profitability." "We also have an exciting pipeline of active acquisition opportunities, with multiple projects already in the due diligence phase," Bailly said. "Given this, combined with our continued growth, progress on strategic initiatives, and strong balance sheet with only around $34 million in debt, I remain very bullish about our future." Financial Highlights: Sales for the first quarter increased 7.4% to $105.0 million, from $97.8 million in the first quarter of 2023. First quarter sales to the medical market increased 7.4% to $90.0 million from $83.8 million in the first quarter of 2023. First quarter sales to all other markets increased 7.4% to $15.0 million from $13.9 million in the first quarter of 2023. Gross profit as a percentage of sales ("gross margin") decreased to 28.6% for the first quarter of 2024, from 29.4% in the first quarter of 2023. Selling, general, and administrative expenses ("SG&A") for the first quarter increased 7.0% to $13.9 million compared to $13.0 million in the first quarter of 2023. As a percentage of sales, SG&A decreased to 13.2% in the first quarter of 2024 compared to 13.3% in the first quarter of 2023. Operating income for the first quarter of 2024 increased 24.0% to $15.9 million, from $12.8 million in the first quarter of 2023. Adjusted operating income for the first quarter increased 3.0% to $16.2 million from $15.7 million in the first quarter of 2023. See the reconciliation provided in Table 1. Adjusted Operating Income is a financial measure not presented in accordance with generally accepted accounting principles ("GAAP") (a "Non-GAAP Financial Measure"). Please see "Non-GAAP Financial Information" at the end of this news release. Net income increased 30.3% to $12.7 million in the first quarter of 2024, from $9.7 million in the first quarter of 2023. Adjusted net income increased 8.6% to $12.9 million in the first quarter of 2024, from $11.9 million in the first quarter of 2023. See the reconciliation provided in Table 2. Adjusted Net Income is a Non-GAAP financial measure. Please see "Non-GAAP Financial Information" at the end of this news release. Earnings per share increased to $1.64 per diluted share outstanding in the first quarter of 2024, from $1.27 in the first quarter of 2023. Adjusted EBITDA increased 6.5% to $20.7 million from $19.5 million in the first quarter of 2023. See the reconciliation provided in Table 3. EBITDA and adjusted EBITDA are Non-GAAP Financial Measures. Please see "Non-GAAP Financial Information" at the end of this news release. About UFP Technologies, Inc. UFP Technologies is a designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products. UFP is an important link in the medical device supply chain and a valued outsource partner to many of the top medical device manufacturers in the world. The Company's single-use and single-patient devices and components are used in a wide range of medical devices and packaging for minimally invasive surgery, infection prevention, wound care, wearables, orthopedic soft goods, and orthopedic implants.   Consolidated Condensed Statements of Income(in thousands, except per share data)(unaudited)     Three Months Ended   March, 31     2024       2023   Net sales $ 105,009     $ 97,753   Cost of sales   74,926       69,052   Gross profit   30,083       28,701   Selling, general and administrative expenses   13,912       13,006   Change in fair value of contingent consideration   238       2,853   Loss on disposal of fixed assets   9       1   Operating income   15,924   -   12,841   Interest expense, net   631       869   Other (income) expense   (42 )     77   Income before income tax expense   15,335       11,895   Income tax expense   2,642       2,156   Net income $ 12,693