##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 Form 10-Q
 Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended March 31, 2010
 Commission file number 0-21018
 TUFCO TECHNOLOGIES, INC.
 Delaware
    
    39-1723477(State of other jurisdiction 
of incorporation of organization)
    
    (IRS Employer ID No.)
 (Address of principal executive offices)(Zip code)
 (Registrants telephone number, including area code)
  þ o
  o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
(Do not check if a smaller reporting company)
    
    Smaller Reporting Company þ
  o þ
  Class
    
    Outstanding as of May 14, 2010Common Stock, par value $0.01 per share
    
    4,308,947




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##### 



TUFCO TECHNOLOGIES, INC.
 Index
 Page NumberPART I.
    
    FINANCIAL INFORMATIONItem 1.
    
    Condensed Consolidated Financial StatementsCondensed Consolidated Balance Sheets as of March 31, 2010
and September 30, 2009
    
    
    3Condensed Consolidated Statements of Income for the three
and six months ended March 31, 2010 and 2009
    
    
    4Condensed Consolidated Statements of Cash Flows for the
six months ended March 31, 2010 and 2009
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2.
    
    Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    11Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    16Item 4(T)
    
    Controls and Procedures
    
    
    16PART II:
    
    OTHER INFORMATIONItem 1
    
    Legal Proceedings
    
    
    16Item 1A.
    
    Rick Factors
    
    
    16Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    16Item 3.
    
    Defaults Upon Senior Securities
    
    
    16Item 4.
    
    [Removed and Reserved]
    
    
    16Item 5.
    
    Other Information
    
    
    16Item 6.
    
    Exhibits
    
    
    17SIGNATURES
    
    
    
    
    18EX-31.1EX-31.2EX-32.1EX-32.2
  2




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PART I. FINANCIAL INFORMATION
 
 ITEM 1. Condensed Consolidated Financial Statements
 TUFCO TECHNOLOGIES, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 March 31,
    
    
    September 30,2010
    
    
    2009AssetsCURRENT ASSETS:Cash
    
    $
    5,031
    
    
    $
    4,092Accounts receivable-net
    
    
    12,673,534
    
    
    
    11,077,258Inventories-net
    
    
    12,626,780
    
    
    
    10,645,168Prepaid expenses and other current assets
    
    
    380,878
    
    
    
    245,534Income taxes receivable
    
    
    604,144
    
    
    
    604,144Deferred income taxes
    
    
    381,661
    
    
    
    381,661Total current assets
    
    
    26,672,028
    
    
    
    22,957,857PROPERTY, PLANT AND EQUIPMENT-Net
    
    
    18,038,735
    
    
    
    17,892,453GOODWILL
    
    
    7,211,575
    
    
    
    7,211,575OTHER ASSETS-Net
    
    
    132,775
    
    
    
    128,684TOTAL
    
    $
    52,055,113
    
    
    $
    48,190,569Liabilities and Stockholders EquityCURRENT LIABILITIES:Current portion of long-term debt
    
    $
    3,527,991
    
    
    $
    1,270,099Accounts payable
    
    
    8,906,298
    
    
    
    6,861,167Accrued payroll, vacation and payroll taxes
    
    
    667,769
    
    
    
    542,534Other current liabilities
    
    
    540,504
    
    
    
    463,736Total current liabilities
    
    
    13,642,562
    
    
    
    9,137,536DEFERRED INCOME TAXES
    
    
    2,340,046
    
    
    
    2,611,572COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS EQUITY:Common Stock: $.01 par value: 9,000,000 shares authorized;
4,708,741 shares issued
    
    
    47,087
    
    
    
    47,087Non-voting common stock, $.01 par value  2,000,000 shares
authorized and unissued
    
    
    
    
    
    
    Preferred stock, $.01 par value  1,000,000 shares
authorized and unissued
    
    
    
    
    
    
    Additional paid-in capital
    
    
    25,434,750
    
    
    
    25,421,007Retained earnings
    
    
    12,748,125
    
    
    
    13,130,824Treasury stock, 399,794 common shares at cost
    
    
    (2,157,457
    )
    
    
    (2,157,457
    )Total stockholders equity
    
    
    36,072,505
    
    
    
    36,441,461TOTAL
    
    $
    52,055,113
    
    
    $
    48,190,569
 3




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TUFCO TECHNOLOGIES, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 THREE MONTHS ENDED
    
    
    SIX MONTHS ENDEDMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009NET SALES
    
    $
    20,874,663
    
    
    $
    19,454,822
    
    
    $
    40,916,719
    
    
    $
    42,640,609COST OF SALES
    
    
    19,854,574
    
    
    
    19,183,895
    
    
    
    38,852,403
    
    
    
    41,088,075GROSS PROFIT
    
    
    1,020,089
    
    
    
    270,927
    
    
    
    2,064,316
    
    
    
    1,552,534OPERATING EXPENSES:Selling, general & administrative
    
    
    1,356,737
    
    
    
    1,325,425
    
    
    
    2,633,535
    
    
    
    2,596,314Gain on asset sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (37,500
    )OPERATING LOSS
    
    
    (336,648
    )
    
    
    (1,054,498
    )
    
    
    (569,219
    )
    
    
    (1,006,280
    )OTHER (EXPENSE) INCOME:Interest expense
    
    
    (34,085
    )
    
    
    (25,913
    )
    
    
    (56,616
    )
    
    
    (68,519
    )Interest income and other income
    
    
    84
    
    
    
    164
    
    
    
    15,471
    
    
    
    13,603LOSS BEFORE INCOME TAXES
    
    
    (370,649
    )
    
    
    (1,080,247
    )
    
    
    (610,364
    )
    
    
    (1,061,196
    )INCOME TAX BENEFIT
    
    
    (138,252
    )
    
    
    (423,457
    )
    
    
    (227,665
    )
    
    
    (415,990
    )NET LOSS
    
    $
    (232,397
    )
    
    $
    (656,790
    )
    
    $
    (382,699
    )
    
    $
    (645,206
    )BASIC LOSS PER SHARE:Net Loss
    
    $
    (0.05
    )
    
    $
    (0.15
    )
    
    $
    (0.09
    )
    
    $
    (0.15
    )DILUTED LOSS PER SHARE:Net Loss
    
    $
    (0.05
    )
    
    $
    (0.15
    )
    
    $
    (0.09
    )
    
    $
    (0.15
    )WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING:Basic
    
    
    4,308,947
    
    
    
    4,342,813
    
    
    
    4,308,947
    
    
    
    4,377,528Diluted
    
    
    4,308,947
    
    
    
    4,342,813
    
    
    
    4,308,947
    
    
    
    4,377,528
  4




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TUFCO TECHNOLOGIES, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 SIX MONTHS ENDEDMarch 31,2010
    
    
    2009OPERATING ACTIVITIESNet loss
    
    $
    (382,699
    )
    
    $
    (645,206
    )Noncash items in net loss:Depreciation and amortization of property, plant and
equipment
    
    
    1,350,562
    
    
    
    1,173,211Deferred income taxes
    
    
    (271,526
    )
    
    
    (3,042
    )Gain on sale of property, plant and equipment
    
    
    
    
    
    
    (37,500
    )Stock-based compensation expense
    
    
    13,743
    
    
    
    7,758Changes in operating working capital:Accounts receivable
    
    
    (1,596,276
    )
    
    
    1,704,778Inventories
    
    
    (1,981,612
    )
    
    
    1,770,951Prepaid expenses and other assets
    
    
    (139,435
    )
    
    
    396,890Accounts payable
    
    
    2,035,491
    
    
    
    (3,037,077
    )Accrued and other current liabilities
    
    
    202,003
    
    
    
    (27,937
    )Income taxes receivable
    
    
    
    
    
    
    (437,353
    )Net cash (used in) provided by operating activities
    
    
    (769,749
    )
    
    
    865,473INVESTING ACTIVITIESAdditions to property, plant and equipment
    
    
    (1,487,204
    )
    
    
    (1,220,084
    )Proceeds from disposals of property, plant and equipment
    
    
    
    
    
    
    37,500Net cash used in investing activities
    
    
    (1,487,204
    )
    
    
    (1,182,584
    )FINANCING ACTIVITIESNet borrowings of revolving debt
    
    
    2,257,892
    
    
    
    763,893Purchase of treasury stock
    
    
    
    
    
    
    (510,568
    )Net cash provided by financing activities
    
    
    2,257,892
    
    
    
    253,325NET INCREASE (DECREASE) IN CASH
    
    
    939
    
    
    
    (63,786
    )CASH:Beginning of period
    
    
    4,092
    
    
    
    68,397End of period
    
    $
    5,031
    
    
    $
    4,611NONCASH SUPPLEMENTAL INFORMATION:Change in construction payable
    
    $
    9,640
    
    
    $
    59,221
 5




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TUFCO TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the three months and six months ended March 31, 2010 and 2009
(Unaudited)
 1.
    
    Basis of Presentation
 The accompanying condensed consolidated financial statements have been prepared by Tufco
Technologies, Inc. (the Company) pursuant to the rules and regulations of the Securities
and Exchange Commission (SEC) and, in the opinion of the Company, include all adjustments
necessary for a fair statement of results for each period shown (unless otherwise noted
herein, all adjustments are of a normal recurring nature). Operating results for the three
month and six month periods ended March 31, 2010 are not necessarily indicative of results
expected for the remainder of the year. Certain information and note disclosures normally
included in financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted pursuant to such SEC
rules and regulations. The Company believes that the disclosures made are adequate to prevent
the financial information given from being misleading. The Companys fiscal 2009 Annual
Report on Form 10-K contains a summary of significant accounting policies and includes the
consolidated financial statements and the notes to the consolidated financial statements.
The same accounting policies are followed in the preparation of interim reports. The
Companys condensed consolidated balance sheet at September 30, 2009 was derived from the
audited consolidated balance sheet. It is suggested that these condensed consolidated
financial statements be read in conjunction with the audited consolidated financial
statements and notes thereto for the fiscal year ended September 30, 2009.
 2.
    
    Financial Instruments
 Financial instruments consist of cash, receivables, payables, debt, and letters of credit.
Their carrying values are estimated to approximate their fair values unless otherwise
indicated due to their short maturities and variable interest rates.
 6




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Notes to condensed consolidated financial statements(continued)
 3.
    
    Earnings Per Share
 Basic earnings per share is computed using the weighted average number of common shares
outstanding. Diluted earnings per share includes common stock equivalents from dilutive
stock options outstanding during the year. During the three and six months ended March 31,
2010 and 2009, options to purchase 296,650 and 284,650 shares, respectively, were excluded
from the diluted earnings per share computation as the effects of including such options
would have been anti-dilutive.
 4.
    
    Reclassifications
 Certain prior period amounts have been reclassified to conform to the current year
presentation.
 5.
    
    Inventories
 Inventories consist of the following:
 March 31,
    
    
    September 30,2010
    
    
    2009Raw materials
    
    $
    9,512,542
    
    
    $
    8,182,736Finished goods
    
    
    3,114,238
    
    
    
    2,462,432Total inventories
    
    $
    12,626,780
    
    
    $
    10,645,168
 6.
    
    Long-Term Debt
 The Company replaced its credit agreement on March 15, 2010 with a new $8.0 million unsecured
revolving line of credit facility that expires January 31, 2011. 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.
 Availability under the facility is based upon specified percentages of eligible accounts
receivable and inventory. The credit agreement is unsecured. The credit agreement contains
certain restrictive covenants, including requirements to maintain a minimum tangible net
worth and net income (or net loss) within specified levels.
 7.
    
    Stock Based Compensation
 There were no options granted during the three months ended March 31, 2010. During the six
months ended March 31, 2010, employees of Tufco Technologies, Inc. received discretionary
grants on November 30, 2009 to acquire 14,000 shares of common stock under Tufcos 2003
Non-Qualified Stock Option Plan at an exercise price of $3.19 per share, the closing price of
the Companys common stock on the NASDAQ market as of that date. The grant date fair value
of these options was estimated at $2.26 using the Black-Scholes option-pricing model with the
following assumptions: risk-free interest rate of 0.67%, expected volatility of 121.4%, no
dividend yield and an expected life of three years.
 7




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Notes to condensed consolidated financial statements(continued)
 8.
    
    Segment Information
 The Company operates in a single industry since it manufactures and distributes custom
paper-based and nonwoven products, and provides contract manufacturing, specialty printing
and related services on these types of products. The Company does, however, separate its operations and prepares information for management use by the market segment
aligned with the Companys products and services. Corporate costs, such as interest income,
interest expense and income tax (benefit) expense are recorded under the Corporate and Other
segment. Such market segment information is summarized below. The Contract Manufacturing
segment provides services to multinational consumer products companies while the Business Imaging segment manufactures and distributes printed
and unprinted business imaging paper products for a variety of business needs.
 Substantially all of the Companys revenues are attributed to domestic external customers.
There are no long-lived assets located outside of the United States.
 As previously disclosed, the Company tests goodwill annually at the reporting unit level for
impairment as of June 30. The operating segments herein also represent the Companys
reporting units for goodwill purposes. The Company uses a discounted cash flow analysis to
estimate reporting unit fair values and also considers multiples of relevant companies.
Management has completed the Companys annual impairment test and determined there were no
changes in the carrying amount of goodwill by reporting unit for the three months and six
months ended March 31, 2010. However, there can be no assurance that valuation multiples will
not decline, growth rates will not be lower than expected, discount rates will not increase,
or the projected cash flows of the individual reporting units will not decline. For example,
lower than expected growth or an increase to the discount rate due to changes in risk
premiums or other factors may suggest that an impairment has occurred under Step 1 and
require the Company to proceed to Step 2 to measure the fair value of assets and liabilities
of the reporting units. At the annual measurement date of June 30, 2009, the estimated fair
value of Contract Manufacturing exceeded its carrying value by approximately 59%. The
estimated fair value of Business Imaging exceeded its carrying value by approximately 74% at
June 30, 2009.
 The Company recognizes that its common stock regularly trades below book value per share and
will continue to monitor the relationship of its market capitalization to both its book value
and tangible book value. While management plans to return the Companys business
fundamentals to levels that support the book value per share, there is no assurance that the
plan will be successful, or that the market price of the common stock will increase to such
levels in the foreseeable future.
 8




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Notes to condensed consolidated financial statements(continued)
 Three Months Ended
    
    Contract
    
    
    Business
    
    
    CorporateMarch 31, 2010
    
    Manufacturing
    
    
    Imaging
    
    
    and Other
    
    
    ConsolidatedNet sales
    
    $
    15,180,951
    
    
    $
    5,693,712
    
    
    $
    
    
    
    $
    20,874,663Gross profit
    
    
    500,678
    
    
    
    519,411
    
    
    
    
    
    
    
    1,020,089Operating income (loss)
    
    
    110,110
    
    
    
    186,850
    
    
    
    (633,608
    )
    
    
    (336,648
    )Depreciation and
amortization expense
    
    
    626,429
    
    
    
    50,877
    
    
    
    582
    
    
    
    677,888Capital expenditures
    
    
    292,267
    
    
    
    16,966
    
    
    
    
    
    
    
    309,233
 Three Months Ended
    
    Contract
    
    
    Business
    
    
    CorporateMarch 31, 2009
    
    Manufacturing
    
    
    Imaging
    
    
    and Other
    
    
    ConsolidatedNet sales
    
    $
    14,229,162
    
    
    $
    5,225,660
    
    
    $
    
    
    
    $
    19,454,822Gross profit
    
    
    13,738
    
    
    
    257,189
    
    
    
    
    
    
    
    270,927Operating loss
    
    
    (341,649
    )
    
    
    (73,255
    )
    
    
    (639,594
    )
    
    
    (1,054,498
    )Depreciation and
amortization expense
    
    
    552,013
    
    
    
    52,204
    
    
    
    594
    
    
    
    604,811Capital expenditures
    
    
    722,059
    
    
    
    30,538
    
    
    
    
    
    
    
    752,597
 Six Months Ended
    
    Contract
    
    
    Business
    
    
    CorporateMarch 31, 2010
    
    Manufacturing
    
    
    Imaging
    
    
    And Other
    
    
    ConsolidatedNet sales
    
    $
    29,128,370
    
    
    $
    11,788,349
    
    
    $
    
    
    
    $
    40,916,719Gross profit
    
    
    1,178,920
    
    
    
    885,396
    
    
    
    
    
    
    
    2,064,316Operating income (loss)
    
    
    433,029
    
    
    
    250,923
    
    
    
    (1,253,171
    )
    
    
    (569,219
    )Depreciation and
amortization expense
    
    
    1,246,109
    
    
    
    103,278
    
    
    
    1,175
    
    
    
    1,350,562Capital expenditures
    
    
    1,438,425
    
    
    
    48,779
    
    
    
    
    
    
    
    1,487,204
 Six Months Ended
    
    Contract
    
    
    Business
    
    
    CorporateMarch 31, 2009
    
    Manufacturing
    
    
    Imaging
    
    
    And Other
    
    
    ConsolidatedNet sales
    
    $
    31,665,363
    
    
    $
    10,975,246
    
    
    $
    
    
    
    $
    42,640,609Gross profit
    
    
    956,987
    
    
    
    595,547
    
    
    
    
    
    
    
    1,552,534Operating income (loss)
    
    
    298,658
    
    
    
    (44,043
    )
    
    
    (1,260,895
    )
    
    
    (1,006,280
    )Depreciation and
amortization expense
    
    
    1,067,154
    
    
    
    104,870
    
    
    
    1,187
    
    
    
    1,173,211Capital expenditures
    
    
    1,189,546
    
    
    
    30,538
    
    
    
    
    
    
    
    1,220,084
 9




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Notes to condensed consolidated financial statements(continued)
 Contract
    
    
    Business
    
    
    CorporateMarch 31, 2010
    
    Manufacturing
    
    
    Imaging
    
    
    and Other
    
    
    ConsolidatedAssets:Inventories-net
    
    $
    9,682,396
    
    
    $
    2,944,384
    
    
    $
    
    
    
    $
    12,626,780Property, plant and
equipment-net
    
    
    16,171,133
    
    
    
    1,863,901
    
    
    
    3,701
    
    
    
    18,038,735Accounts receivable
and other
(including
goodwill)
    
    
    14,308,462
    
    
    
    5,957,525
    
    
    
    1,123,611
    
    
    
    21,389,598Total assets
    
    $
    40,161,991
    
    
    $
    10,765,810
    
    
    $
    1,127,312
    
    
    $
    52,055,113
 Contract
    
    
    Business
    
    
    CorporateSeptember 30, 2009
    
    Manufacturing
    
    
    Imaging
    
    
    and Other
    
    
    ConsolidatedAssets:Inventories-net
    
    $
    8,642,397
    
    
    $
    2,002,771
    
    
    $
    
    
    
    $
    10,645,168Property, plant and
equipment-net
    
    
    15,969,177
    
    
    
    1,918,400
    
    
    
    4,876
    
    
    
    17,892,453Accounts receivable
and other
(including
goodwill)
    
    
    12,334,332
    
    
    
    6,200,035
    
    
    
    1,118,581
    
    
    
    19,652,948Total assets
    
    $
    36,945,906
    
    
    $
    10,121,206
    
    
    $
    1,123,457
    
    
    $
    48,190,569
 10




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ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Forward Looking Statements
  General Information:
    11




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ITEM 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of
Operations-Continued
 Results of Operations:
 Condensed operating data, percentages of net sales and period-to-period changes in these items are
as follows (dollars in thousands):
 Three Months Ended
    
    Period-to-Period
    
    Six Months Ended
    
    Period-to-PeriodMarch 31,
    
    Change
    
    March 31,
    
    Change2010
    
    2009
    
    $
    
    %
    
    2010
    
    2009
    
    $
    
    %Net Sales
    
    $
    20,875
    
    
    $
    19,455
    
    
    $
    1,420
    
    
    
    7
    %
    
    $
    40,917
    
    
    $
    42,641
    
    
    $
    (1,724
    )
    
    
    (4
    %)Gross Profit
    
    
    1,020
    
    
    
    271
    
    
    
    749
    
    
    NM
    
    
    2,064
    
    
    
    1,553
    
    
    
    511
    
    
    
    334.9
    %
    
    
    1.4
    %
    
    
    
    
    
    
    
    
    
    
    5.0
    %
    
    
    3.6
    %Operating Expenses
    
    
    1,357
    
    
    
    1,325
    
    
    
    32
    
    
    
    2
    
    
    
    2,634
    
    
    
    2,559
    
    
    
    75
    
    
    
    36.5
    %
    
    
    6.8
    %
    
    
    
    
    
    
    
    
    
    
    6.4
    %
    
    
    6.0
    %Operating Loss
    
    
    (337
    )
    
    
    (1,055
    )
    
    
    718
    
    
    
    (68
    )
    
    
    (569
    )
    
    
    (1,006
    )
    
    
    437
    
    
    
    (43
    )(1.6
    %)
    
    
    (5.4
    %)
    
    
    
    
    
    
    
    
    
    
    (1.4
    %)
    
    
    (2.4
    %)Interest and Other-Net
    
    
    34
    
    
    
    26
    
    
    
    8
    
    
    
    31
    
    
    
    41
    
    
    
    55
    
    
    
    (14
    )
    
    
    (25
    )0.2
    %
    
    
    0.1
    %
    
    
    
    
    
    
    
    
    
    
    0.1
    %
    
    
    0.1
    %Loss Before Income Taxes
    
    
    (371
    )
    
    
    (1,080
    )
    
    
    709
    
    
    
    (66
    )
    
    
    (610
    )
    
    
    (1,061
    )
    
    
    451
    
    
    
    (43
    )(1.8
    %)
    
    
    (5.6
    %)
    
    
    
    
    
    
    
    
    
    
    (1.5
    %)
    
    
    (2.5
    %)Income Tax Benefit
    
    
    (138
    )
    
    
    (423
    )
    
    
    285
    
    
    
    (67
    )
    
    
    (228
    )
    
    
    (416
    )
    
    
    188
    
    
    
    (45
    )(0.7
    %)
    
    
    (2.2
    %)
    
    
    
    
    
    
    
    
    
    
    (0.6
    %)
    
    
    (1.0
    %)Net Loss
    
    $
    (232
    )
    
    $
    (657
    )
    
    
    425
    
    
    
    (65
    )
    
    $
    (383
    )
    
    $
    (645
    )
    
    
    262
    
    
    
    (41
    )(1.1
    %)
    
    
    (3.4
    %)
    
    
    
    
    
    
    
    
    
    
    (0.9
    %)
    
    
    (1.5
    %)Basic and Diluted LossPer Share
    
    $
    (0.05
    )
    
    $
    (0.15
    )
    
    
    
    
    
    
    
    
    
    $
    (0.09
    )
    
    $
    (0.15
    )
 
 NM =
    
    Not Meaningful 12




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##### Table of Contents



ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations-Continued
 Three Months EndedMarch 31,2010
    
    
    2009
    
    
    Period-to-Period% of
    
    
    
    
    
    
    % of
    
    
    ChangeAmount
    
    
    Total
    
    
    Amount
    
    
    Total
    
    
    $
    
    
    %Net SalesContract Manufacturing and printing
    
    $
    15,181
    
    
    
    73
    %
    
    $
    14,229
    
    
    
    73
    %
    
    $
    952
    
    
    
    7
    %Business Imaging paper products
    
    
    5,694
    
    
    
    27
    
    
    
    5,226
    
    
    
    27
    
    
    
    468
    
    
    
    9
    %Net Sales
    
    $
    20,875
    
    
    
    100
    %
    
    $
    19,455
    
    
    
    100
    %
    
    $
    1,420
    
    
    
    7
    %
 2010
    
    
    2009
    
    
    Period-to-Period% of
    
    
    
    
    
    
    Margin
    
    
    ChangeAmount
    
    
    Total
    
    
    Amount
    
    
    %
    
    
    $
    
    
    %Gross ProfitContract Manufacturing and printing
    
    $
    501
    
    
    
    3
    %
    
    $
    14
    
    
    
    0.1
    %
    
    $
    487
    
    
    NMBusiness Imaging paper products
    
    
    519
    
    
    
    9
    %
    
    
    257
    
    
    
    5
    %
    
    
    262
    
    
    
    102
    %Gross Profit
    
    $
    1,020
    
    
    
    5
    %
    
    $
    271
    
    
    
    1
    %
    
    $
    749
    
    
    NM
 Six Months EndedMarch 31,2010
    
    
    2009
    
    
    Period-to-Period% of
    
    
    
    
    
    
    % of
    
    
    ChangeAmount
    
    
    Total
    
    
    Amount
    
    
    Total
    
    
    $
    
    
    %Net SalesContract Manufacturing and printing
    
    $
    29,129
    
    
    
    71
    %
    
    $
    31,666
    
    
    
    74
    %
    
    $
    (2,537
    )
    
    
    (8
    %)Business Imaging paper products
    
    
    11,788
    
    
    
    29
    
    
    
    10,975
    
    
    
    26
    
    
    
    813
    
    
    
    7
    %Net Sales
    
    $
    40,917
    
    
    
    100
    %
    
    $
    42,641
    
    
    
    100
    %
    
    $
    (1,724
    )
    
    
    (4
    %)
 2010
    
    
    2009
    
    
    Period-to-Period% of
    
    
    
    
    
    
    Margin
    
    
    ChangeAmount
    
    
    Total
    
    
    Amount
    
    
    %
    
    
    $
    
    
    %Gross ProfitContract Manufacturing and printing
    
    $
    1,179
    
    
    
    4
    %
    
    $
    957
    
    
    
    3
    %
    
    $
    222
    
    
    
    23
    %Business Imaging paper products
    
    
    885
    
    
    
    8
    %
    
    
    596
    
    
    
    5
    %
    
    
    289
    
    
    
    48
    %Gross Profit
    
    $
    2,064
    
    
    
    5
    %
    
    $
    1,553
    
    
    
    4
    %
    
    $
    511
    
    
    
    33
    %
 
 NM =
    
    Not Meaningful 13




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##### Table of Contents



ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of
OperationsContinued
 Net Sales :
     Gross Profit :
    Operating Expenses :
  14




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##### Table of Contents



ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations-Continued
 Interest Expense and Other Income (Expense) net :
  Net Income
  Liquidity and Capital Resources:
          15




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##### Table of Contents



Off Balance Sheet Arrangements:
  
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
  
 ITEM 4(T). Controls and Procedures
    
 PART II. OTHER INFORMATION
 
 ITEM 1. Legal Proceedings
  
 ITEM 1A. Risk Factors
  
 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 ITEM 3. Defaults Upon Senior Securities
  
 ITEM 4.  [Removed and Reserved]
 
 ITEM 5.  Other Information
  16




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##### Table of Contents



ITEM 6. Exhibits
 31.1
    
    Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the
Securities Exchange Act of 1934.31.2
    
    Certification pursuant to Rule 13a-14(a) or Rule
15d-14(a) of the Securities Exchange Act of 1934.32.1
    
    Certification furnished pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Certification furnished Pursuant to 18 U.S.C. Section
1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 17




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##### Table of Contents



SIGNATURES
  TUFCO TECHNOLOGIES, INC.Date: May 14, 2010
    /s/ Louis LeCalsey, IIILouis LeCalsey, IIIPresident and Chief Executive OfficerDate: May 14, 2010
    /s/ Michael B. WheelerMichael B. WheelerExecutive Vice President, Chief Financial Officer and
Chief Operating Officer 18