UFP Technologies, Inc. reported significant growth in its financial performance for the third quarter and the nine-month period ending September 30, 2024. Net sales for Q3 2024 reached $145.2 million, a 44.0% increase from $100.8 million in Q3 2023. For the nine-month period, net sales totaled $360.4 million, up 20.7% from $298.6 million in the same period last year. The medical market was a key driver, with sales increasing by 52.2% in Q3 and 23.7% for the nine months.

Gross profit for Q3 2024 was $41.5 million, compared to $27.8 million in Q3 2023, while gross margins improved to 28.6% from 27.5%. Operating income also saw a substantial rise, reaching $24.8 million for Q3 2024, up from $15.0 million in the prior year. Net income for the quarter was $16.4 million, compared to $11.7 million in Q3 2023, translating to earnings per share of $2.14, up from $1.53.

The company’s total assets increased to $638.5 million as of September 30, 2024, from $404.1 million at the end of 2023. This growth was accompanied by a rise in total liabilities to $309.4 million, primarily due to a significant increase in long-term debt, which surged to $199.5 million from $28.0 million. Retained earnings also grew to $290.1 million, up from $247.5 million.

UFP Technologies completed four strategic acquisitions during the nine-month period, including Marble Medical, AJR Enterprises, Welch Fluorocarbon, and AQF. The Marble acquisition, finalized in June 2024 for $4.5 million, added expertise in adhesive-based medical components. AJR was acquired for $110 million, enhancing the company’s capabilities in patient handling systems. The Welch acquisition cost $34.6 million, while AQF was purchased for approximately $47.8 million. These acquisitions contributed to revenue growth, with AJR alone generating approximately $27.7 million in revenue since its acquisition.

Operating expenses increased, with selling, general, and administrative (SG&A) expenses rising to $15.8 million in Q3 2024 from $12.5 million in Q3 2023. However, SG&A as a percentage of sales decreased, indicating improved operational efficiency.

The company also reported net cash provided by operating activities of approximately $42.2 million for the nine-month period, with significant cash inflows from financing activities totaling $175.1 million, primarily from borrowings under a new $275 million credit agreement established in June 2024. This agreement includes a secured term loan and a revolving credit facility, with a maturity date set for June 2029.