Tufco (TFCO) 8-K Results of Operations and Financial Condition

Exhibit 99.1

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NEWS RELEASE

For Immediate Release

TUFCO TECHNOLOGIES, INC. ANNOUNCES FISCAL YEAR 2007 FOURTH QUARTER
AND FISCAL YEAR 2007 RESULTS ;
COMMENTS ON OUTLOOK 

GREEN BAY, WI (December 18, 2007)—Tufco Technologies, Inc. (NASDAQ: TFCO), the largest provider of branded contract wet and dry wipes converting in North America and a leader in specialty printing services and business imaging products, today announced that fiscal year 2007 sales were $119,708,000, up 19% over fiscal year 2006 sales. For the fiscal year 2007 fourth quarter, sales increased to $35,289,000, or up 24% compared to the fourth quarter of fiscal year 2006. For the fiscal year 2007, net income was $0.22 per share, compared to net income of $0.12 per diluted share for fiscal year 2006, an increase of 83%. Net income per diluted share for the 2007 fourth quarter was $0.11 per share compared to $0.01 net income per diluted share for the fourth quarter of 2006.

Tufco President and CEO Louis LeCalsey, offered these comments on the year: “During fiscal 2007 we concentrated on reducing waste and increasing productivity on those projects we started up late in fiscal 2006. We also started up several new products during the later part of fiscal 2007. Our fourth quarter results are reflective of these actions and are indicative of our potential when demand is good and waste, productivity and other costs are well controlled.”

“For our fiscal 2008 first quarter, we are seeing normal seasonal reduction in demand across most products. Additionally, two new products which were produced in our fourth quarter of 2007 have little or no revenue in our first quarter as the pipeline for new product launches was filled. A rebound in demand for all products is dependent on consumer buying patterns.”

“With that background, we will continue to focus on business building during fiscal 2008, with an emphasis on expanding our customer base and bringing in new products. We will also focus on continuing to reduce waste and increase productivity to achieve world class metrics,” he concluded.

Tufco, headquartered in Green Bay, Wisconsin, has manufacturing operations in Wisconsin and North Carolina.

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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 2007 results in comparison to fiscal 2006, 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 changes in customer demand for its products, cancellation of production agreements by significant customers including two Contract Manufacturing customers it depends upon for a significant portion of its business, material increases in the cost of base paper stock, competition in the Company’s product areas, an inability of management to successfully reduce operating expenses including labor and waste costs in relation to net sales without damaging the long-term direction of the Company, the Company’s ability to increase sales and earnings as a result of new projects, the Company’s ability to successfully install new equipment on a timely basis, the Company’s ability to produce new products, the Company’s ability to continue to improve profitability, the Company’s ability to successfully attract new customers, the effects of the economy in general and the Company’s ability to improve the run rates for its product. Therefore, the selected 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.

Contact:	Michael B. Wheeler, VP and CFO
	Tufco Technologies, Inc.
	P. O. Box 23500
	Green Bay, WI 54305-3500
	(920) 336-0054
	(920) 336-9041 (Fax)

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TUFCO TECHNOLOGIES, INC.
Condensed Balance Sheets
(Amounts in 000’s)

	September 30,			September 30,
	2007			2006
ASSETS
Cash & Cash Equivalents	$	6		$	5
Accounts Receivable — Net		15,302			15,079
Inventories		16,355			14,125
Other Current Assets		1,369			1,173
Total Current Assets		33,032			30,382
Property, Plant and Equipment — Net		19,002			18,941
Goodwill — Net		7,212			7,212
Other Assets		127			154
Total	$	59,373		$	56,689
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts Payable	$	11,707		$	9,923
Accrued Liabilities		513			508
Income Taxes Payable		107			—
Other current liabilities		717			542
Total Current Liabilities		13,044			10,973
Long-Term Debt		6,192			7,073
Deferred Income Taxes		2,537			2,103
Common Stock and Paid-in Capital		25,351			25,274
Retained Earnings		13,391			12,408
Treasury Stock		(1,142	)		(1,142	)
Total Stockholders’ Equity		37,600			36,540
Total	$	59,373		$	56,689

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TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(Amounts in 000’s except share and per share data)

	Three Months Ended					Twelve Months Ended
	September 30,					September 30,
	2007			2006		2007			2006
Net Sales	$	35,289		$	28,453	$	119,708		$	100,284
Cost of Sales		33,303			27,421		113,594			95,239
Gross Profit		1,986			1,032		6,114			5,045
SG&A Expense		1,030			864		4,057			3,977
Operating Income		956			168		2,057			1,068
Interest Expense (Income)		137			119		519			310
Interest Income and Other (Income) Expense		(3	)		3		(21	)		(59	)
Income Before Income Tax		822			46		1,559			817
Income Tax Expense		305			18		576			254
Net Income	$	517		$	28	$	983		$	563
Net Income Per Share:
Basic	$	0.11		$	0.01	$	0.22		$	0.12
Diluted	$	0.11		$	0.01	$	0.22		$	0.12
Weighted Average Common Shares Outstanding:
Basic		4,535,644			4,535,244		4,535,443			4,538,109
Diluted		4,566,970			4,552,942		4,563,984			4,550,439