EXHIBIT 99.1
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NEWS RELEASE
FOR IMMEDIATE RELEASE
TUFCO TECHNOLOGIES, INC. ANNOUNCES
SIGNIFICANT NEW CONTRACTS AND CAPITAL EXPANSION PLANS;
FOURTH QUARTER EARNINGS
GREEN BAY, WI (December 4, 2003)--Tufco Technologies, Inc. (NASDAQ: TFCO), a
leader in providing diversified contract manufacturing, specialty printing
services and business imaging products today announced results for the fourth
quarter and the full fiscal year 2003. The Company also announced the signing of
significant new contracts and the undertaking of a capital expansion.
"We have signed significant new contracts with new and existing customers for
both printing and contract manufacturing at our Green Bay plant," said Louis
LeCalsey, III, Tufco's CEO and President. "When all are up and running, on an
annualized basis these new contracts are expected to significantly exceed the
revenue and operating profit attributable to certain contracts that we earlier
announced had not been renewed by a customer as the result of that customer
electing to manufacture certain products at their own facilities. These new
projects are scheduled to start-up at scheduled intervals throughout fiscal 2004
and all will be running by the fourth quarter of fiscal 2004."
To support this new business, the Company is undertaking a capital equipment
expansion aggregating approximately $3,600,000. Included in this expansion
program is doubling the capacity for wet wipes production, a new flat pack
folder, and a rebuild of an existing quarter folder. The company will also
combine microbiological and chemical lab capabilities with the
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addition of equipment and building modifications.
In commenting on the Company's financial performance, LeCalsey stated, "Fiscal
2003 was a year of significant accomplishment. We sold the Paint Sundries
segment and now have the strongest balance sheet in Company history. We
completed the move of our corporate office from Dallas to Green Bay. We began
production on our wet wipes converting equipment and our second press in Green
Bay. Newton and Green Bay each achieved record sales and both sites set safety
records."
Sales for the fourth quarter of fiscal year 2003 were $15,612,000, up 21.1% from
last year's fourth quarter. For the year, sales were $55,207,000, up 9.5% from
the fiscal year 2002. Earnings in the fourth quarter were $497,000 or $0.11 per
share, compared to a net loss of $775,000, or ($0.17) per share for the fourth
quarter of 2002. The fourth quarter of 2003 included $123,000 of one-time
expense to complete the move of corporate services and IT from Dallas to Green
Bay. The Company expects to reduce costs by approximately $500,000 per year,
effective beginning fiscal 2004, as a result of this move. In addition, the
Company incurred approximately $700,000 in costs in the fourth quarter of fiscal
2002 relating to the closing of the Dallas manufacturing operations.
For the full year, the Company earned $779,000, or $0.17 per share compared to a
net loss of $5,405,000, or ($1.17) per share for 2002. Income from continuing
operations was $501,000, or $0.11 per share for the fourth quarter of 2003 and
$1,248,000, or $0.27 per share for the full year. This compares to a net loss
from continuing operations of $307,000, or ($0.07) per share for the fourth
quarter of 2002 and income from continuing operations of $358,000, or $0.08 per
share
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for fiscal year 2002. Previously reported amounts have been adjusted to reflect
the disposition of the Paint Sundries segment earlier this year.
"At fiscal year end 2003 we had almost $3,000,000 of cash on our balance sheet
and are virtually debt free. We feel we should be able to fund the equipment and
working capital for our new projects with only a minimal amount of debt which
would quickly be repaid through increased cash flow," LeCalsey added. "Thus, we
are now positioned to fully take advantage of our unique capabilities utilizing
best available technology assets coupled with a talented and dedicated
workforce," he concluded.
Tufco, headquartered in Green Bay, Wisconsin, has manufacturing 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 2003
results in comparison to fiscal 2002, 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 cancellation of production agreements by significant
customers, material increases in the cost of base paper stock, competition in
the Company's product areas, or an inability of management to successfully
reduce operating expenses in relation to net sales without damaging the
long-term direction of the Company. 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)
TUFCO TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations Page 4 of 4
(Amounts in 000's except share and per share data)
<Table>
<Caption>
Three Months Ended Twelve Months Ended
September 30, September 30,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net Sales $ 15,612 $ 12,820 $ 55,207 $ 50,154
Cost of Sales 13,264 11,894 47,732 44,558
----------- ----------- ----------- -----------
Gross Profit 2,348 926 7,475 5,596
SG&A Expense 1,238 867 4,619 3,371
Employee Severance Costs 123 -- 333 209
Facility Restructuring Costs -- -- -- 233
Facility Closing Cost -- 435 -- 435
Property & Inventory Write Downs -- 236 -- 548
Loss (Gain) on Asset Sales -Net 58 18 109 (10)
----------- ----------- ----------- -----------
Operating Income 929 (630) 2,414 810
Interest Expense (14) (96) (202) (461)
Other Income (Expense) -Net (32) 3 (49) 24
----------- ----------- ----------- -----------
Income from Continuing Operations
Before Income Tax 883 (723) 2,163 373
Income Tax Expense (Benefit) 374 (286) 917 147
----------- ----------- ----------- -----------
Income From Continuing Operations 509 (437) 1,246 226
Loss From Discontinued Operations:
Net Loss from Operations of
Discontinued Segment, Net of Tax -- (338) (221) (981)
Net Loss from Sale of Discontinued
Operations, Net of Tax -- -- (244) --
----------- ----------- ----------- -----------
Loss Before Accounting Change 509 (775) 781 (755)
Cumulative Effect of Accounting Change -- -- -- (4,652)
----------- ----------- ----------- -----------
Net Income (Loss) $ 509 $ (775) $ 781 $ (5,407)
----------- ----------- ----------- -----------
Basic Earnings (Loss) Per Share:
Income from Continuing Operations $ 0.11 $ (0.09) $ 0.27 $ 0.05
Net Loss from Operations of Discontinued
Segment -- (0.07) (0.05) (0.21)
Net Loss from Sale of Discontinued
Operations -- -- (0.05) --
----------- ----------- ----------- -----------
Income before Accounting Change 0.11 (0.17) 0.17 (0.16)
Cumulative Effect of Accounting Change -- -- -- (1.01)
----------- ----------- ----------- -----------
Net Income(Loss) $ 0.11 $ (0.17) $ 0.17 $ (1.17)
Diluted Earnings (Loss) Per Share:
Income from Continuing Operations $ 0.11 $ (0.09) $ 0.27 $ 0.05
Net Loss from Operations of Discontinued
Segment -- (0.07) (0.05) (0.21)
Net Loss from Sale of Discontinued
Operations -- -- (0.05) --
----------- ----------- ----------- -----------
Income before Accounting Change 0.11 (0.17) 0.17 (0.16)
Cumulative Effect of Accounting Change -- -- -- (1.00)
----------- ----------- ----------- -----------
Net Income(Loss) $ 0.11 $ (0.17) $ 0.17 $ (1.17)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 4,590,959 4,627,844 4,616,331 4,627,844
Diluted 4,601,960 4,627,844 4,626,204 4,630,621
</Table>
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