Tufco Technologies, Inc. Announces Fiscal Year 2013 Second Quarter and First Six Months Results

GREEN BAY, Wis., May 14, 2013 (GLOBE NEWSWIRE) -- Tufco Technologies, Inc. (Nasdaq:TFCO), a leading provider of branded contract wet and dry wipes converting in North America and a provider of specialty printing services and business imaging products, today announced that fiscal year 2013 second quarter sales were $24,167,000, compared to $24,139,000 for 2012 second quarter sales. For the first six months of fiscal 2013, sales were $52,515,000, compared to $49,816,000 for the first six months of fiscal 2012, an increase of 5%.

Net income per diluted share for the second quarter of fiscal 2013 was $0.04 compared to a net loss of $0.12 per diluted share for the second quarter of fiscal 2012. For the first six months of fiscal 2013, net income per diluted share was $0.21 compared to a net loss per diluted share of $0.26 for the first six months of fiscal 2012, an improvement per diluted share of $0.47.

In commenting on the results, Jim Robinson, Tufco's President and CEO said, "The Company has increased sales volumes at Green Bay in the second quarter and first six months of fiscal 2013 compared to the same periods of fiscal 2012 which, in combination with our focus on reducing operating costs, contributed to increased earnings. Our Newton operation has shown consistent improved gross profit."

"Additionally, during the second quarter we reduced borrowings under our credit facility by almost $600,000 to $4,100,000," 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 2013 results in comparison to fiscal 2012 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, cancellation or non renewal 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, the Company's ability to 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.

Condensed Consolidated Balance Sheets
(Amounts in 000's)
March 31,
September 30,
Cash $ 8 $ 8
Accounts Receivable - Net 13,223 16,457
Inventories - Net 14,888 17,450
Other Current Assets 872 551
Total Current Assets 28,991 34,466
Property, Plant and Equipment - Net 15,583 15,848
Goodwill 7,212 7,212
Other Assets - Net 134 130
Total $ 51,920 $ 57,656
Revolving Line of Credit $ 4,128 $ 7,280
Current Portion of Note Payable 282 274
Accounts Payable 6,933 10,618
Accrued Liabilities 636 615
Other Current Liabilities 614 670
Total Current Liabilities 12,593 19,457
Long-Term Debt 351 494
Deferred Income Taxes 2,350 1,989
Common Stock and Paid-in Capital 25,674 25,655
Retained Earnings 13,109 12,218
Treasury Stock (2,157) (2,157)
Total Stockholders' Equity 36,626 35,716
Total $ 51,920 $ 57,656
Condensed Consolidated Statements of Operations
(Amounts in 000's except share and per share data)
Three Months Ended
March 31,
Six Months Ended
March 31,
2013 2012 2013 2012
Net Sales $ 24,167 $ 24,139 $ 52,515 $ 49,816
Cost of Sales 22,308 23,416 48,163 48,659
Gross Profit 1,859 723 4,352 1,157
SG&A Expense 1,570 1,444 2,832 2,791
Gain on Asset Sales -- -- -- --
Operating Income (Loss) 289 (721) 1,520 (1,634)
Interest Expense 48 70 108 137
Interest Income and Other Income -- -- (9) (8)
Income (Loss) Before Income Taxes 241 (791) 1,421 (1,763)
Income Tax Expense (Benefit) 90 (295) 530 (657)
Net Income (Loss) $ 151 $ (496) $ 891 $ (1,106)
Net Income (Loss) Per Share:
Basic $ 0.04 $ (0.12) $ 0.21 $ (0.26)
Diluted $ 0.04 $ (0.12) $ 0.21 $ (0.26)
Weighted Average Common Shares Outstanding:
Basic 4,308,947 4,308,947 4,308,947 4,308,947
Diluted 4,319,933 4,308,947 4,317,903 4,308,947

CONTACT: Michael B. Wheeler, VP and CFO Tufco Technologies, Inc. P. O. Box 23500 Green Bay, WI 54305-3500 (920) 336-0054Source:Tufco Technologies, Inc.