Balance sheet changes never exactly match income statement changes. Not just because of share buybacks and dividends, there are a whole host of other reasons, some of which may apply to UFPT. Such as changes in valuation accounts for product warranties, changes in valuation accounts for returns, changes in valuation accounts for restructuring, foreign exchange impacts on assets and liabilities, impacts of differences between GAAP and tax accounting, stock option exercises for cash vs cashless stock option exercises, acquisitions, plus probably a whole lot more of I can't think of off the top of my head.
But the big reason seems to be the United Development Company real estate transaction noted in the first paragraph of the PR - it may have had no effect on income, but it did on the balance sheet. If you look at the 12/31/11 balance sheet in the 10K, it had lines Total UFP Technologies stockholders equity $61.3M Non-controlling interests ($0.7M) Total stockholders equity $62.0M
In the revised version in the PR, there is no mention of the non-controlling interests anymore, just Total equity $62.0M If you consider the change in UFPT stockholders equity, it increased $1.83M (from $61.3M to $63.1M) vs the $2.349M income. And that is close enough for me to chalk the difference up to some of the items listed above.
So no more non-controlling interests with UDC transaction? Excess working capital now $5.50/shr. That adjusts for a 2 to 1 current ratio. That is severable cash. Adjusted price $11.08 with $1.75/shr cash flow this year. I think they said they will spend a little more on capex than the $2MM depreciation this year. Stock is selling at 6.2x cash flow 4.2 x EBITDA. LBO model suggests a much higher price. It's a shame they don't buy in stock at 6.2x cash flow. They would pay more than that for an acquisition. I have asked then several times but nothing yet.