In total, we invested about $6.5 million to optimize our footprint in 2014, and another  $7.7 million to purchase new capital equipment. We believe it’s an excellent use of a  portion of the cash reserves we’ve built up over the years, and we estimate that these  investments will pay for themselves in three years or less.  And we’re not done yet. In January 2015, we purchased a 137,000-square-foot  factory in newburyport, Massachusetts, in which we plan to combine our northeast  operations. As with all our regional consolidations, we expect to gain major operating  efficiencies once this effort is complete. At that point, we will have greatly improved  our facilities in four regions—Midwest, West Coast, southwest, and northeast.  main accomplishments:  We will discuss each of these important initiatives in the following pages.  in short, your coMpAny is strong And getting stronger  While  certain target markets such as defense remain challenging, we anticipate double- digit growth in our medical business, coupled with strong demand for our molded  fiber packaging products. We also expect steadily improving results in our new texas operation as we quickly ramp up sales. 2010 2011 2012 2013 2014 $120,766 $127,244 $130,962 $139,223 $139,307 Looking ahead, we will continue to invest in market opportunities that best fit our  industry-leading engineering and materials expertise. For customers with complex  needs, no one offers greater problem-solving skills or a longer track record of  success. We will also continue to explore strategic acquisitions that can increase  the value we bring to customers. As we identify opportunities, our experienced  management team and strong balance sheet will enable us to act quickly.  NET INCOME REVENUE For all of the changes in 2014, our most important attributes remain the same. Our  commitment to customers’ success. Our culture of integrity, innovation, and excellent  customer service. these traits have served us well for decades, and I believe our best  years are yet to come. I hope you agree, and I thank you for your support of UFp  technologies.  2010 2011 2012 2013 2014 $120,766 $127,244 $130,962 $139,223 $139,307 2010 2011 2012 2013 2014 $9,247 $10,346 $10,895 $11,276 $7,559 3 progress on other key initiAtives  In some of the year’s other SHAREHOLDERS’ EQUITY NET INCOME REVENUE • We converted four more plants to our new enterprise Resource planning system.  • We invested in a new Customer Relationship Management system to help us  forecast, analyze trends, and serve customers better. • We enhanced production capabilities and quality systems for our medical  customers in several plants.  • We added new talent across the organization, including senior leadership in  engineering and sales.  R. Jeffrey Bailly Chairman and CeO  sincerely, 2010 2011 2012 2013 2014 $50,226 $61,985 $73,260 $85,590 $94,992 2010 2011 2012 2013 2014 $9,247 $10,346 $10,895 $11,276 $7,559 2010 2011 2012 2013 2014 $120,766 $127,244 $130,962 $139,223 $139,307