Tufco Technologies Q3 Results: Continued Positive Trend
Press release from the issuing company
GREEN BAY, Wis., Aug. 13 -- Tufco Technologies, Inc., a leader in providing diversified contract manufacturing, specialty printing services and business imaging products today announced results for the third fiscal quarter and first nine months of its fiscal year. Previously reported results have been adjusted to reflect the Paint Sundries segment as discontinued operations. The Paint Sundries segment was disposed of on March 31, by way of sale, with an effective date of February 28, 2003.
In commenting on the quarter, Lou LeCalsey, the Company's President and CEO stated, "We continue our positive trend on income from continuing operations generated over the last three consecutive quarters, earning $.09 for the quarter and $.16 for the nine months. At the same time, with the sale of the Paint Sundries segment, we have delivered the strongest balance sheet in Tufco's history. Late in the third quarter we began production on our new wide-web flexographic press and also started production of disposable wet-wipe products under a new contract for our new nonwovens production line. We expect to see further improvements in profitability as we more fully utilize these assets going forward."
For the third quarter of fiscal 2003, net sales from continuing operations were $14.3 million, up 4.3% from third quarter 2002 sales from continuing operations of $13.7 million, and up 11.6% from this year's second quarter sales of $12.8 million. For the nine months, net sales from continuing operations increased 5.5% to $39.6 million from nine month sales from continuing operations for 2002 of $37.5 million.
Net income from continuing operations was $.428 million or $.09 per share for the third quarter of 2003 compared to $.882 million, or $.19 per share for 2002. For the nine months ended June 30, 2003 net income from continuing operations was $.747 million, or $.16 per share compared to $.665 million, or $.14 per share for the first nine months of fiscal 2002. During the 2003 third quarter, the Company absorbed $.16 million relating to closing Dallas corporate services. To complete the transition, the Company expects to incur approximately $0.3 million in the fourth quarter. Once completed, the move is expected to generate annual savings of $0.5 million.
Net income was $.370 million, or $0.08 per share for the June 30, 2003 quarter compared to $.778 million, or $0.17 per share for the comparable quarter last year. For the nine months, net income was $.282 million or $.06 per share for 2003 compared to a loss of $4.630 million ($1.00 per share) for the nine months ending June 30, 2002.
During the second quarter of 2003, the Company sold the assets and business of its Paint Sundries segment for $12.3 million and incurred a net loss of $.244 million (net of fees, expenses and taxes) on the transaction. That segment is being reported as discontinued operations and previously reported amounts for 2002 and year to date 2003 have been restated. Almost $8 million of the proceeds from the sale were used for debt reduction, reducing debt to $0.75 million. A portion of the proceeds have also been used to repurchase 35,500 shares of the Company's stock under a previously announced share repurchase program.
Last year's reported nine month results included a loss of $4.652 million resulting from the cumulative effect of an accounting change relating to the implementation of SFAS No.142.
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