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Tufco Technologies, Inc. Announces Fourth Quarter Sales and Earnings

DALLAS, Nov. 25 /PRNewswire/ -- Tufco Technologies, Inc. (Nasdaq: TFCO), a leading manufacturer of diversified value-added custom paper products and specialty printing services, today reported record operating results for the fourth quarter and full year of fiscal 1996.

For the three months ended September 30, 1996, Tufco reported sales of $18.6 million, compared to $14.3 million for the same period last year, an increase of 30%. Net income increased 126% to $921,000 for the quarter, compared with $408,000 for the same period last year. Earnings per share were $0.21 per share for the 3-month period on 24% higher shares outstanding, compared to $0.11 per share last year, an increase of 91%.

For the year ended September 30, 1996, Tufco's sales were $68.4 million, compared with $48.0 million for the same period last year, an increase of 43%. Operating income rose 70% to $4.9 million, up from $2.8 million last year. Net income for the year was $2.3 million, or $0.51 per share, compared to $1.2 million, or $0.37 for fiscal 1995, representing an 88% increase in net income and a 38% increase in earnings per share on 37% higher shares outstanding in 1996.

According to Greg Wilemon, the Company's CFO and COO, "the acquisition of Hamco Industries, Inc. in August of 1995 contributed significantly to the improvement in revenue and net income. However, revenue and net income from Tufco's core business grew 9% and 19% respectively. The improvement in profit is the result of efforts to decrease operating costs in relation to revenue. The Hamco acquisition resulted in the additional shares outstanding at September 30, 1996."

Louis LeCalsey, III assumed the duties of Chief Executive Officer on September 19, 1996, and has guided the turn-around at the Company's largest division since April. "I feel that we are just beginning to get a sense of the potential that exists at Tufco, and the fantastic results for 1996 are just a stepping stone for the future. We are finalizing a comprehensive Strategic Plan for Tufco, the Company's first. As one might expect, as we focus on our long-term future with shareholder wealth as the guiding principle, cooperative synergies in core operations and in strategic acquisitions will be key elements of Tufco's future."

Tufco serves more than 1,000 customers in markets such as Business Imaging Products, Industrial Tissues and Towels, Paint Sundry Supplies and Custom Converting. Tufco has manufacturing operations in Wisconsin, Texas, North Carolina and South Carolina as well as distribution facilities throughout the United States.

Information about the results reported herein, or copies of the Company's Quarterly Reports, may be obtained by calling Greg Wilemon, Chief Financial Officer at 1-800-395-1114.

 Selected Financial Data
 (Amounts in 000's except share and per share data)
 Three months ended Year Ended
 September 30, September 30,
 1996 1995 1996 1995
 Net Sales 18,615 14,330 68,374 47,987
 Cost of Goods Sold 14,673 10,842 56,042 39,397
 Gross Profit 3,942 3,488 12,332 8,590
 SG&A Expense 2,116 2,498 7,477 5,742
 Operating Income 1,826 990 4,855 2,848
 Interest Expense 190 283 1,134 911
 Other Income (Expense) (63) (10) 46 72
 Income Before Income Taxes 1,573 697 3,767 2,009
 Income Tax 652 289 1,507 808
 Net Income $ 921 $ 408 $2,260 $1,201
 Earnings Per Share $ 0.21 $0.11 $ 0.51 $ 0.37

Weighted Average
 Shares Outstanding 4,441,010 3,584,238 4,437,702 3,248,408

SOURCE Tufco Technologies, Inc.
 -0- 11/25/96

/CONTACT: Greg Wilemon, CFO, COO of Tufco Technologies, Inc., 214-789-1079/


CO: Tufco Technologies, Inc. ST: Wisconsin, Texas IN: PAP SU: ERN

CC-MR -- MNM005 -- 3459 11/25/96 08:01 EST
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Publication:PR Newswire
Date:Nov 25, 1996
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