Tufco Technologies Inc. (TFCO) filed Quarterly Report for the period ended 2010-12-31.
Tufco Technologies Inc. has a market cap of $14.87 million; its shares were traded at around $3.45 with and P/S ratio of 0.16.
Highlight of Business Operations:Cash flows used in operations were $1.8 million through the first three months of fiscal 2011, compared to cash used in operations of $1.2 million for the same period last year. Accounts receivable decreased $0.9 million for the first three months of fiscal 2011 while accounts payable increased $0.2 million in the first three months of fiscal 2011 compared to the same period last year, largely due to an increase in materials purchased. Inventories increased $3.1 million, primarily in support of upcoming new product offerings by our customers, promotional runs and purchases in advance of anticipated significant raw material price increases. Depreciation was $0.7 million for the first three months of fiscal 2011.
Net cash provided by financing activities was $2.1 million for the first three months of fiscal 2011, consisting of $2.2 million related to the Company borrowing from its revolving credit line to fund a portion of its increased working capital and equipment needs.
On March 15, 2010, the Company entered into an $8.0 million amended and restated unsecured revolving line of credit facility with a termination date of January 31, 2011. On December 28, 2010, the Company further amended its credit agreement to increase the revolving credit availability from $8.0 million to $10.0 million, extend its termination date to January 31, 2012 and modify the required levels of after tax net income (or loss) under its financial covenants for periods commencing December 31, 2010 and thereafter. The Companys revolving line of credit is classified as a current liability on the accompanying balance sheets because provisions in the credit agreement include deposit account requirements and a material adverse effect covenant which is subjective in nature. It is also the Companys policy to classify borrowings under the revolving line of credit as current based on how it manages working capital. Borrowings under the new credit facility bear interest at a rate equal to LIBOR plus 2.50%. The Company is required to pay a non-usage fee of .50% per annum on the unused portion of the facility.
As of February 11, 2011, the Company had approximately $3.1 million available and $6.9 million outstanding under its revolving credit line pursuant to its credit agreement, as amended.
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