0000914156
False
0000914156
2024-05-01
2024-05-01
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM
8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 1, 2024
_______________________________
UFP Technologies, Inc.
(Exact name of registrant as specified in its charter)
_______________________________
Delaware 001-12648 04-2314970
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
100 Hale Street
Newburyport
,
Massachusetts
- USA
01950-3504
(Address of
Principal Executive Offices) (Zip Code)
(
978
)
352-2200
(Registrant's
telephone number, including area code)
N/A
(Former name or former address, if
changed since last report)
_______________________________
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities registered pursuant to Section 12(b) of the
Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which
registered
Common Stock
UFPT
The
NASDAQ
Stock Market L.L.C.
Indicate by check
mark whether the registrant is an emerging growth company as defined in Rule
405 of the Securities Act of 1933 ((s)230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 ((s)240.12b-2 of this chapter).
Emerging
growth company
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to
Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and
Financial Condition.
On May 1, 2024, UFP Technologies, Inc. issued a press
release announcing its financial results for the first quarter ended March 31,
2024. A copy of the press release is furnished herewith as Exhibit
99.1.
Limitation on Incorporation by Reference.
The information furnished in
this Item 2.02, including the press release attached hereto as Exhibit 99.1,
shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of that section, nor shall such information be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by
specific reference in such a filing.
Cautionary Note Regarding Forward-Looking
Statements.
Except for historical information contained in the press release
attached as an exhibit hereto, the press release contains forward-looking
statements that involve certain risks and uncertainties that could cause
actual results to differ materially from those expressed or implied by these
statements. Please refer to the cautionary note in the press release regarding
these forward-looking statements.
Item 9.01. Financial Statements and
Exhibits.
(d) Exhibits
Exhibit Number
Description
99.1
Press Release dated May
1, 2024
104
Cover Page Interactive Data File (embedded within the Inline XBRL
document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
UFP Technologies,
Inc.
Date: May 1, 2024
By:
/s/ Ronald J. Lataille
Ronald J. Lataille
Chief
Financial Officer and Senior Vice President
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 $ 9,739
Net income per share $ 1.66 $ 1.28
Net income per diluted share $ 1.64 $ 1.27
Weighted average shares outstanding 7,651 7,592
Weighted average diluted shares outstanding 7,737 7,681
Consolidated Condensed Balance Sheets
(in thousands)
(unaudited)
March 31, December 31,
2024 2023
Assets:
Cash and cash equivalents $ 11,372 $ 5,263
Receivables, net 61,250 64,449
Inventories 73,900 70,191
Other current assets 4,017 4,730
Property, plant, and equipment, Net 61,931 62,137
Goodwill 113,104 113,263
Intangible assets, net 62,914 64,116
Other assets 19,191 19,987
Total assets $ 407,679 $ 404,136
Liabilities and equity:
Accounts payable $ 23,654 $ 22,286
Current portion of long-term debt 4,000 4,000
Other current liabilities 24,782 31,923
Long-term debt, excluding current installments 30,000 28,000
Other liabilities 30,227 31,836
Total liabilities 112,663 118,045
Total equity 295,016 286,091
Total liabilities and stockholders' equity $ 407,679 $ 404,136
Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally relate to future events or the Company's future financial
or operating performance and may be identified by words such as "may,"
"should," "expect," "intend," "will," "estimate," "anticipate," "believe,"
"predict," or similar words. Such statements include, but are not limited to,
statements about the Company's future financial or operating performance; the
continuing operation of the Company's locations, the maintenance of its
facilities and the sufficiency of the Company's supply chain, inventory,
liquidity and capital resources, including increased costs in connection with
such efforts; statements about the Company's acquisition strategies and
opportunities and the Company's growth potential and strategies for growth;
statements about the integration and performance of recent acquisitions;
statements about the Company's ability to realize the benefits expected from
our pipeline of acquisition opportunities and recently completed acquisitions,
including any related synergies; expectations regarding customer demand and
the impact of long-term customer and vendor agreements; and any indication
that the Company may be able to sustain or increase its sales, earnings or
earnings per share, or its sales, earnings or earnings per share growth rates.
Such forward-looking statements are based upon assumptions made by the Company
as of the date hereof and are subject to risks, uncertainties, and other
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Factors that may
cause actual results to differ materially from current expectations include,
but are not limited to: the Company's general ability to execute its business
plans; industry conditions, including fluctuations in supply, demand and
prices for the Company's products and services due to inflation, the war in
Ukraine, or otherwise; risks relating to the Company's ability to achieve
anticipated benefits of acquisitions and other risks; risks relating to
delayed payments by our customers and the potential for reduced or canceled
orders; risks related to customer concentration; risks relating to our
performance and the performance of our counterparties under the agreements we
have entered into; risks that our customers will not purchase the expected
volume of goods under the agreements we have entered into; risks that we will
not achieve expected rebates under our vendor supply agreements that we have
entered into; and uncertainties set forth in the sections entitled "Risk
Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the
Company's filings with the Securities and Exchange Commission ("SEC"), which
are available on the SEC's website at www.sec.gov. The Company expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the Company's
expectations or any change in events, conditions, or circumstances on which
any such statement is based. Forward-looking statements are also subject to
the risks and other issues described above under "Use of Non-GAAP Financial
Information," which could cause actual results to differ materially from
current expectations included in the Company's forward-looking statements
included in this press release.
Non-GAAP Financial Information
This news release includes non-generally accepted accounting principles
("GAAP") performance measures. Management considers Adjusted Operating Income,
Adjusted Net Income, EBITDA and Adjusted EBITDA, non-GAAP measures. The
Company uses these non-GAAP financial measures to facilitate management's
financial and operational decision-making, including evaluation of the
Company's historical operating results. The Company's management believes
these non-GAAP measures are useful in evaluating the Company's operating
performance and are similar measures reported by publicly listed U.S.
competitors, and regularly used by securities analysts, institutional
investors, and other interested parties in analyzing operating performance and
prospects. These non-GAAP financial measures reflect an additional way of
viewing aspects of the Company's operations that, when viewed with GAAP
results and the reconciliations to corresponding GAAP financial measures, may
provide a more complete understanding of factors and trends affecting the
Company's business. By providing these non-GAAP measures, the Company's
management intends to provide investors with a meaningful, consistent
comparison of the Company's performance for the periods presented. These
non-GAAP financial measures should be considered supplemental to, and not a
substitute for, financial information prepared in accordance with GAAP. The
Company's definition of these non-GAAP measures may differ from similarly
titled measures of performance used by other companies in other industries or
within the same industry.
Table 1: Adjusted Operating Income Reconciliation
(in thousands)
Three Months Ended
March 31,
2024 2023
Operating income (GAAP) $ 15,924 $ 12,841
Adjustments:
Change in fair value of contingent consideration 238 2,853
Loss on disposal of fixed assets 9 1
Adjusted operating income (Non-GAAP) $ 16,171 $ 15,695
Table 2: Adjusted Net Income and Diluted Common Share Outstanding Reconciliation
(in thousands, except per share data)
Three Months Ended
March 31
2024 2023
Net income (GAAP) $ 12,693 $ 9,739
Adjustments (net of taxes):
Change in fair value of contingent consideration 177 2,120
Loss on disposal of fixed assets 7 1
Adjusted net income (Non-GAAP) $ 12,877 $ 11,860
Adjusted Net Income per diluted share outstanding (Non-GAAP) $ 1.66 $ 1.54
Weighted average diluted common shares outstanding 7,737 7,681
Table 3: EBITDA Reconciliation
(in thousands)
Three Months Ended
March 31,
2024 2023
Net income (GAAP) $ 12,693 $ 9,739
Income tax expense 2,642 2,156
Interest expense, net 631 869
Depreciation 1,899 1,671
Amortization of intangible assets 1,099 1,106
EBITDA (Non-GAAP) $ 18,964 $ 15,541
Adjustments:
Share based compensation 1,513 1,056
Change in fair value of contingent consideration 238 2,853
Loss on disposal of fixed assets 9 1
Adjusted EBITDA (Non-GAAP) $ 20,724 $ 19,451
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 $ 9,739
Net income per share $ 1.66 $ 1.28
Net income per diluted share $ 1.64 $ 1.27
Weighted average shares outstanding 7,651 7,592
Weighted average diluted shares outstanding 7,737 7,681
Consolidated Condensed Balance Sheets
(in thousands)
(unaudited)
March 31, December 31,
2024 2023
Assets:
Cash and cash equivalents $ 11,372 $ 5,263
Receivables, net 61,250 64,449
Inventories 73,900 70,191
Other current assets 4,017 4,730
Property, plant, and equipment, Net 61,931 62,137
Goodwill 113,104 113,263
Intangible assets, net 62,914 64,116
Other assets 19,191 19,987
Total assets $ 407,679 $ 404,136
Liabilities and equity:
Accounts payable $ 23,654 $ 22,286
Current portion of long-term debt 4,000 4,000
Other current liabilities 24,782 31,923
Long-term debt, excluding current installments 30,000 28,000
Other liabilities 30,227 31,836
Total liabilities 112,663 118,045
Total equity 295,016 286,091
Total liabilities and stockholders' equity $ 407,679 $ 404,136
Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally relate to future events or the Company's future financial
or operating performance and may be identified by words such as "may,"
"should," "expect," "intend," "will," "estimate," "anticipate," "believe,"
"predict," or similar words. Such statements include, but are not limited to,
statements about the Company's future financial or operating performance; the
continuing operation of the Company's locations, the maintenance of its
facilities and the sufficiency of the Company's supply chain, inventory,
liquidity and capital resources, including increased costs in connection with
such efforts; statements about the Company's acquisition strategies and
opportunities and the Company's growth potential and strategies for growth;
statements about the integration and performance of recent acquisitions;
statements about the Company's ability to realize the benefits expected from
our pipeline of acquisition opportunities and recently completed acquisitions,
including any related synergies; expectations regarding customer demand and
the impact of long-term customer and vendor agreements; and any indication
that the Company may be able to sustain or increase its sales, earnings or
earnings per share, or its sales, earnings or earnings per share growth rates.
Such forward-looking statements are based upon assumptions made by the Company
as of the date hereof and are subject to risks, uncertainties, and other
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Factors that may
cause actual results to differ materially from current expectations include,
but are not limited to: the Company's general ability to execute its business
plans; industry conditions, including fluctuations in supply, demand and
prices for the Company's products and services due to inflation, the war in
Ukraine, or otherwise; risks relating to the Company's ability to achieve
anticipated benefits of acquisitions and other risks; risks relating to
delayed payments by our customers and the potential for reduced or canceled
orders; risks related to customer concentration; risks relating to our
performance and the performance of our counterparties under the agreements we
have entered into; risks that our customers will not purchase the expected
volume of goods under the agreements we have entered into; risks that we will
not achieve expected rebates under our vendor supply agreements that we have
entered into; and uncertainties set forth in the sections entitled "Risk
Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the
Company's filings with the Securities and Exchange Commission ("SEC"), which
are available on the SEC's website at www.sec.gov. The Company expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the Company's
expectations or any change in events, conditions, or circumstances on which
any such statement is based. Forward-looking statements are also subject to
the risks and other issues described above under "Use of Non-GAAP Financial
Information," which could cause actual results to differ materially from
current expectations included in the Company's forward-looking statements
included in this press release.
Non-GAAP Financial Information
This news release includes non-generally accepted accounting principles
("GAAP") performance measures. Management considers Adjusted Operating Income,
Adjusted Net Income, EBITDA and Adjusted EBITDA, non-GAAP measures. The
Company uses these non-GAAP financial measures to facilitate management's
financial and operational decision-making, including evaluation of the
Company's historical operating results. The Company's management believes
these non-GAAP measures are useful in evaluating the Company's operating
performance and are similar measures reported by publicly listed U.S.
competitors, and regularly used by securities analysts, institutional
investors, and other interested parties in analyzing operating performance and
prospects. These non-GAAP financial measures reflect an additional way of
viewing aspects of the Company's operations that, when viewed with GAAP
results and the reconciliations to corresponding GAAP financial measures, may
provide a more complete understanding of factors and trends affecting the
Company's business. By providing these non-GAAP measures, the Company's
management intends to provide investors with a meaningful, consistent
comparison of the Company's performance for the periods presented. These
non-GAAP financial measures should be considered supplemental to, and not a
substitute for, financial information prepared in accordance with GAAP. The
Company's definition of these non-GAAP measures may differ from similarly
titled measures of performance used by other companies in other industries or
within the same industry.
Table 1: Adjusted Operating Income Reconciliation
(in thousands)
Three Months Ended
March 31,
2024 2023
Operating income (GAAP) $ 15,924 $ 12,841
Adjustments:
Change in fair value of contingent consideration 238 2,853
Loss on disposal of fixed assets 9 1
Adjusted operating income (Non-GAAP) $ 16,171 $ 15,695
Table 2: Adjusted Net Income and Diluted Common Share Outstanding Reconciliation
(in thousands, except per share data)
Three Months Ended
March 31
2024 2023
Net income (GAAP) $ 12,693 $ 9,739
Adjustments (net of taxes):
Change in fair value of contingent consideration 177 2,120
Loss on disposal of fixed assets 7 1
Adjusted net income (Non-GAAP) $ 12,877 $ 11,860
Adjusted Net Income per diluted share outstanding (Non-GAAP) $ 1.66 $ 1.54
Weighted average diluted common shares outstanding 7,737 7,681
Table 3: EBITDA Reconciliation
(in thousands)
Three Months Ended
March 31,
2024 2023
Net income (GAAP) $ 12,693 $ 9,739
Income tax expense 2,642 2,156
Interest expense, net 631 869
Depreciation 1,899 1,671
Amortization of intangible assets 1,099 1,106
EBITDA (Non-GAAP) $ 18,964 $ 15,541
Adjustments:
Share based compensation 1,513 1,056
Change in fair value of contingent consideration 238 2,853
Loss on disposal of fixed assets 9 1
Adjusted EBITDA (Non-GAAP) $ 20,724 $ 19,451
{graphic omitted}
{graphic omitted}