AUBURN HILLS, Mich.,
May 10, 2018 /PRNewswire/ -- Unique
Fabricating, Inc. ("Unique" or the "Company")(NYSE MKT: UFAB),
which engineers and manufactures multi-material foam, rubber, and
plastic components utilized in noise, vibration and harshness
management and air/water sealing applications for the automotive
and industrial appliance market, today announced its financial
results for the first quarter ended April 1,
2018.
First Quarter 2018 Financial Highlights
- Revenue of $47.3 million in the
first quarter of 2018, compared to $47.9
million in the first quarter of 2017
- Net income of $1.5 million, or
$0.15 per basic diluted share in the
first quarter of 2018, compared to $2.0
million, or $0.21 per basic
and diluted share in the first quarter of 2017
- Adjusted EBITDA of $4.9 million
in the first quarter of 2018, including $1.7
million for non-cash charges specifically related to
depreciation and amortization and non-cash stock awards, compared
to $5.4 million in the first quarter
of 2017, including $1.6 million for
non-cash charges specifically related to depreciation and
amortization and non-cash stock awards(1)
- Adjusted diluted earnings per share of $0.21 in the first quarter of 2018 versus
$0.23 in the first quarter of
2017(1)
- Declared a quarterly cash dividend of $0.15 per share payable on June 7, 2018 for stockholders of record as of
May 31, 2018
(1) For a reconciliation of GAAP to Non-GAAP results for
Adjusted EBITDA and Adjusted diluted earnings per share please
refer to the financial tables below.
"Our first quarter results are in-line with our expectations
given the production adjustments that were made mid-quarter by auto
manufacturers to reduce their inventory levels," commented
John Weinhardt, Chief Executive
Officer. "Since that time, vehicle production and OEM inventory has
returned to more normalized levels, and the independent forecasting
firms project relatively stable production for the remainder of
2018. We are executing according to our business plan for 2018,
including the continued pursuit of new opportunities with active
prototyping and testing of our molded products for new programs and
new applications, creating a foundation of bookings to drive
revenue in the second half of 2018 and into 2019 and 2020."
"Operationally, we have continued to adjust our manufacturing
capacity to take advantage of our larger geographic footprint.
On-going process improvements and capital investment are part of
our normal course of business as we continue to identify
opportunities to increase efficiency and manage operating costs,"
Weinhardt added. "The actions we are taking during the first half
of 2018 to streamline operations and better align our production
assets geographically will not only help improve our short term
productivity but they are freeing up capacity in key locations that
will allow Unique to take on more production with limited
additional capital. We believe these initial efforts will yield
annualized cost savings in excess of $800,000 beginning later this year."
"Our outlook for the full year 2018 remains unchanged as we
benefited from the continued market shift towards light trucks and
SUVs as well as new business that begins production in the second
half of the year," concluded Weinhardt.
First Quarter Financial Summary
Total revenue for the quarter ended April
1, 2018 declined to $47.3
million, down 1.2%, or $0.6
million from $47.9 million
during the same period last year. The decrease was primarily driven
by a decline in North American auto production of 2.1% quarter over
quarter, partially offset by increased market penetration.
Gross profit for the quarter ended April
1, 2018 was $11.1 million, or
23.4% of total revenue, compared to $11.1
million, or 23.2% of total revenues, for the corresponding
period last year. While lower than planned due to the production
adjustments made by auto OEMs during the quarter, the increase in
gross profit as a percentage of sales was primarily related to a
continue shift in our product mix to higher valued products.
Restructuring expense for the quarter ended April 1, 2018 of $0.4
million was related to previously announced manufacturing
facility closures in Port Huron,
Michigan and Fort Smith,
Arkansas and compares to $0 in
the same period last year.
Net income for the quarter ended April 1,
2018 was $1.5 million, or
$0.15 per basic and diluted share,
compared to $2.0 million, or
$0.21 per basic and diluted share, in
the first quarter of 2017. The decrease in net income was primarily
due to lower sales due to the decreases in production and volume
listed above as well as the restructuring expenses described
above.
Adjusted EBITDA for the quarter ended April 1, 2018 was $4.9
million compared to $5.4
million in the first quarter of 2017. The decrease is
primarily a result of lower sales described above. Please refer to
the financial tables below for a reconciliation of GAAP to Non-GAAP
results.
Adjusted diluted earnings per share for the quarter ended
April 1, 2018 was $0.21 compared to $0.23 in the first quarter of 2017. Please refer
to the financial tables below for a reconciliation of GAAP to
Non-GAAP results.
Further non-cash purchase accounting impacts associated with the
Company's acquisitions are detailed in the Purchase Accounting
Impacts and Other Effects table below accompanying this
release.
Balance Sheet Summary
As of April 1, 2018 the Company
had approximately $1.2 million in
cash and cash equivalents, as compared to December 31, 2017 when the Company had
$1.4 million in cash and cash
equivalents. Total debt outstanding as of April 1, 2018 was $55.4
million compared to $53.6
million as of December 31,
2017.
As of April 1, 2018, the Company
had $4.6 million of available unused
capacity, further subject to borrowing base restrictions and
outstanding letters of credit, under its $30.0 million revolving credit facility.
2018 Outlook
For the full year 2018, Unique Fabricating is reaffirming its
outlook based on industry production forecasts of 17.2 million
light vehicles manufactured for the year, based on independent
industry research published in April, and the mix of production by
light vehicle platform contained in such research.
Revenue
|
$181 million to $185
million
|
Adjusted diluted
earnings per share
|
$0.82 to
$0.86
|
Adjusted
EBITDA
|
$20.0 million to
$21.0 million
|
Dividend
Unique's Board of Directors approved payment of a quarterly cash
dividend of $0.15 per share on
May 10, 2018. The dividend will be
payable on June 7, 2018 to
stockholders of record as of the close of business on May 31, 2018.
Quarterly Results Conference Call
Unique Fabricating will host a conference call and live webcast
to discuss these results today at 9:00 a.m.
Eastern Time. To access the call, please dial 1-877-705-6003
(toll-free) or 1-201-493-6725 and reference conference ID 13679488.
The conference call will also be webcast live on the Investor
Relations section of the company's website at
http://uniquefab.investorroom.com
Following the conclusion of the live call, a replay of the
webcast will be available on the Investor Relations section of the
Company's website for at least 90 days. A telephonic replay of the
conference call will also be available from 12:00PM ET on May 10,
2018 until 11:59PM ET on
May 17, 2018 by dialing
1-844-512-2921 (United States) or
1-412-317-6671 (international) and using the pin number
13676699.
About Unique Fabricating, Inc.
Unique Fabricating, Inc. (NYSE MKT: UFAB) engineers and
manufactures components for customers in the automotive and
industrial appliance market. The Company's solutions are
comprised of multi-material foam, rubber, and plastic components
and utilized in noise, vibration and harshness (NVH) management,
acoustical management, water and air sealing, decorative and other
functional applications. Unique leverages proprietary manufacturing
processes including die cutting, thermoforming, compression
molding, fusion molding, and reaction injection molding to
manufacture a wide range of products including air management
products, heating ventilating and air conditioning (HVAC), seals,
fender stuffers, air ducts, acoustical insulation, door water
shields, gas tank pads, light gaskets, topper pads, mirror gaskets
and glove box liners. The Company is headquartered in Auburn Hills, Michigan. For more information,
visit http://www.uniquefab.com/.
About Non-GAAP Financial Measures
We present Adjusted EBITDA and Adjusted Diluted Earnings Per
Share in this press release to provide a supplemental measure of
our operating performance. We define Adjusted EBITDA as earnings
before interest expense, income tax expense, depreciation and
amortization expense, non-cash stock award, non-recurring
integration expense, transaction fees related to our acquisitions,
restructuring expenses, and one-time consulting and licensing ERP
system implementation costs as we implement a new ERP system at all
locations. We calculate Adjusted Diluted Earnings Per Share based
upon earnings before non-cash stock awards, non-recurring expenses,
transaction fees, and restructuring expenses, including the tax
impact associated with these adjusting items. We believe that
Adjusted EBITDA and Adjusted Diluted Earnings Per Share are useful
performance measures used by us to facilitate a comparison of our
operating performance and earnings on a consistent basis from
period-to-period and to provide for a more complete understanding
of factors and trends affecting our business than measures under
generally accepted accounting principles in the United States of America (GAAP) can
provide alone. Our board and management also use Adjusted EBITDA as
one of the primary methods for planning and forecasting overall
expected performance and for evaluating on a quarterly and annual
basis actual results against such expectations, and as a
performance evaluation metric in determining achievement of certain
compensation programs and plans for Company management. In
addition, the financial covenants in our senior secured credit
facility are based on Adjusted EBITDA, as presented in this press
release, subject to dollar limitations on certain adjustments and
certain other addbacks permitted by our senior secured credit
facility. These non-GAAP financial measures may have limitations as
analytical tools, and these measures should not be considered in
isolation as a substitute for analysis of Unique Fabricating's
results as reported under GAAP.
Safe Harbor Statement
Except for the historical information contained herein, the
matters discussed in this news release include forward-looking
statements, as defined in the Private Securities Litigation Reform
Act of 1995 that are subject to risks and uncertainties.
Forward-looking statements relate to future events or to future
financial performance and involve known and unknown risks,
uncertainties, and other factors that may cause the Company's or
the Company's industry's actual results, levels of activity,
performance or achievements including statements relating to the
Company's 2018 Outlook to be materially different from any future
results, levels of activity, performance, or achievements expressed
or implied by this press release. Words such as "may,"
"will," "could," "would," "should," "anticipate," "predict,"
"potential," "continue," "expects," "intends," "plans," "projects,"
"believes," "estimates," "outlook," and similar expressions are
used to identify these forward looking statements. Such
forward-looking statements include statements regarding, among
other things, our expectations about revenue, Adjusted EBITDA, and
adjusted diluted earnings per share. All such forward-looking
statements are based on management's present expectations and are
subject to certain factors, risks and uncertainties that may cause
actual results, outcome of events, timing and performance to differ
materially from those expressed or implied by such
statements. These risks and uncertainties include, but are
not limited to, those discussed in our Annual Report on Form 10-K
for the year ended December 31, 2017
filed with the Securities and Exchange Commission and in particular
the Section entitled "Risk Factors", as well as any updates to
those risk factors filed from time to time in our periodic and
current reports filed with the Securities and Exchange
Commission. All statements contained in this press release
are made as of the date of this press release, and Unique
Fabricating does not intend to update this information, unless
required by law. Reference to the Company's website above
does not constitute incorporation of any of the information thereon
into this press release.
Investor Contact:
Hayden IR
Brett Maas/Rob Fink
646-536-7331/646-415-8972
ufab@haydenir.com
UNIQUE
FABRICATING, INC.
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
Thirteen Weeks
Ended April 1,
2018
|
|
Thirteen Weeks
Ended April 2, 2017
|
Net sales
|
$
|
47,304,153
|
|
|
$
|
47,857,096
|
|
Cost of
sales
|
36,224,006
|
|
|
36,749,935
|
|
Gross
profit
|
11,080,147
|
|
|
11,107,161
|
|
Selling, general, and
administrative expenses
|
7,966,982
|
|
|
7,591,704
|
|
Restructuring
expenses
|
442,267
|
|
|
—
|
|
Operating
income
|
2,670,898
|
|
|
3,515,457
|
|
Non-operating
(expense) income
|
|
|
|
Other (expense)
income, net
|
(36,034)
|
|
|
14,216
|
|
Interest
expense
|
(735,759)
|
|
|
(615,696)
|
|
Total non-operating
expense, net
|
(771,793)
|
|
|
(601,480)
|
|
Income – before income taxes
|
1,899,105
|
|
|
2,913,977
|
|
Income tax
expense
|
387,216
|
|
|
867,140
|
|
Net income
|
$
|
1,511,889
|
|
|
$
|
2,046,837
|
|
Net income per
share
|
|
|
|
Basic
|
$
|
0.15
|
|
|
$
|
0.21
|
|
Diluted
|
$
|
0.15
|
|
|
$
|
0.21
|
|
Cash dividends
declared per share
|
$
|
0.15
|
|
|
$
|
0.15
|
|
UNIQUE
FABRICATING, INC.
|
Consolidated
Balance Sheets (unaudited)
|
|
|
April 1,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,179,566
|
|
|
$
|
1,430,937
|
|
Accounts receivable –
net
|
31,266,807
|
|
|
27,203,296
|
|
Inventory –
net
|
16,902,736
|
|
|
16,330,084
|
|
Prepaid expenses and
other current assets:
|
|
|
|
Prepaid expenses and
other
|
4,506,828
|
|
|
3,962,012
|
|
Refundable
taxes
|
537,180
|
|
|
646,253
|
|
Asset held for
sale
|
733,059
|
|
|
—
|
|
Total current
assets
|
55,126,176
|
|
|
49,572,582
|
|
Property, plant, and
equipment – net
|
23,324,186
|
|
|
22,975,401
|
|
Goodwill
|
28,871,179
|
|
|
28,871,179
|
|
Intangible
assets– net
|
18,605,369
|
|
|
19,635,782
|
|
Other
assets
|
|
|
|
Investments – at cost
|
1,054,120
|
|
|
1,054,120
|
|
Deposits and other
assets
|
397,391
|
|
|
353,719
|
|
Deferred tax
asset
|
440,567
|
|
|
342,552
|
|
Total
assets
|
$
|
127,818,988
|
|
|
$
|
122,805,335
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
14,784,964
|
|
|
$
|
11,708,175
|
|
Current maturities of
long-term debt
|
3,999,998
|
|
|
3,799,998
|
|
Income taxes
payable
|
423,875
|
|
|
348,910
|
|
Accrued
compensation
|
2,667,307
|
|
|
2,840,559
|
|
Other accrued
liabilities
|
1,093,406
|
|
|
1,027,489
|
|
Other
liabilities
|
—
|
|
|
—
|
|
Total current
liabilities
|
22,969,550
|
|
|
19,725,131
|
|
Long-term
debt – net of current portion
|
26,306,988
|
|
|
27,288,846
|
|
Line of
credit-net
|
25,067,517
|
|
|
22,476,525
|
|
Deferred tax
liability
|
2,482,705
|
|
|
2,432,754
|
|
Total
liabilities
|
76,826,760
|
|
|
71,923,256
|
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.001
par value – 15,000,000 shares authorized and 9,766,563
and 9,757,563 issued and outstanding at April 1, 2018 and December
31, 2017, respectively
|
9,767
|
|
|
9,758
|
|
Additional
paid-in-capital
|
45,775,819
|
|
|
45,712,568
|
|
Retained
earnings
|
5,206,642
|
|
|
5,159,753
|
|
Total stockholders'
equity
|
50,992,228
|
|
|
50,882,079
|
|
Total liabilities and
stockholders' equity
|
$
|
127,818,988
|
|
|
$
|
122,805,335
|
|
UNIQUE
FABRICATING, INC.
|
Consolidated
Statements of Cash Flows (Unaudited)
|
|
|
Thirteen
Weeks Ended
April 1, 2018
|
|
Thirteen Weeks
Ended
April 2, 2017
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
1,511,889
|
|
|
$
|
2,046,837
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,634,374
|
|
|
1,528,843
|
|
Amortization of debt
issuance costs
|
35,536
|
|
|
33,019
|
|
Loss (gain) on sale
of assets
|
14,680
|
|
|
(625)
|
|
Bad debt
adjustment
|
61,800
|
|
|
32,931
|
|
Gain on derivative
instrument
|
(35,596)
|
|
|
(195,016)
|
|
Stock option
expense
|
33,260
|
|
|
37,508
|
|
Deferred income
taxes
|
(48,064)
|
|
|
476,260
|
|
Changes in operating
assets and liabilities that provided (used) cash:
|
|
|
|
Accounts
receivable
|
(4,125,311)
|
|
|
(4,609,433)
|
|
Inventory
|
(572,652)
|
|
|
(410,000)
|
|
Prepaid expenses and
other assets
|
(443,820)
|
|
|
(1,362,955)
|
|
Accounts
payable
|
3,476,276
|
|
|
1,374,548
|
|
Accrued and other
liabilities
|
(32,373)
|
|
|
(736,380)
|
|
Net cash provided by
(used in) operating activities
|
1,509,999
|
|
|
(1,784,463)
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(1,726,375)
|
|
|
(1,708,386)
|
|
Proceeds from sale of
property and equipment
|
8,500
|
|
|
2,500
|
|
Net cash used in
investing activities
|
(1,717,875)
|
|
|
(1,705,886)
|
|
Cash flows from
financing activities
|
|
|
|
Net change in bank
overdraft
|
(399,487)
|
|
|
(553,437)
|
|
Payments on term
loans
|
(800,000)
|
|
|
(603,272)
|
|
Proceeds from
revolving credit facilities, net
|
2,590,992
|
|
|
6,080,336
|
|
Proceeds from
exercise of stock options and warrants
|
30,000
|
|
|
33,670
|
|
Distribution of cash
dividends
|
(1,465,000)
|
|
|
(1,459,773)
|
|
Net cash (used in)
provided by financing activities
|
(43,495)
|
|
|
3,497,524
|
|
Net increase
(decrease) in cash and cash equivalents
|
(251,371)
|
|
|
7,175
|
|
Cash and cash
equivalents – beginning of period
|
1,430,937
|
|
|
705,535
|
|
Cash and cash
equivalents – end of period
|
$
|
1,179,566
|
|
|
$
|
712,710
|
|
Supplemental
disclosure of cash flow Information – cash paid
for
|
|
|
|
Interest
|
$
|
692,826
|
|
|
$
|
575,280
|
|
Income
taxes
|
$
|
123,246
|
|
|
$
|
493,065
|
|
UNIQUE
FABRICATING, INC.
|
Reconciliation of
GAAP Net Income to Adjusted EBITDA
|
|
|
Thirteen Weeks
Ended
April 1, 2018
|
|
Thirteen Weeks
Ended
April 2, 2017
|
GAAP Net
income
|
$
|
1,511,889
|
|
|
$
|
2,046,837
|
|
Plus: Interest
expense, net
|
735,759
|
|
|
615,696
|
|
Plus: Income tax
expense
|
387,216
|
|
|
867,140
|
|
Plus: Depreciation
and amortization
|
1,634,374
|
|
|
1,528,843
|
|
Plus: Non-cash stock
award
|
33,260
|
|
|
37,508
|
|
Plus: Non-recurring
integration expenses
|
—
|
|
|
2,829
|
|
Plus: Transaction
fees
|
—
|
|
|
23,235
|
|
Plus: Restructuring
expenses
|
442,267
|
|
|
—
|
|
Plus: One-time
consulting and licensing ERP system implementation costs
|
180,701
|
|
|
238,124
|
|
Adjusted
EBITDA
|
$
|
4,925,466
|
|
|
$
|
5,360,212
|
|
UNIQUE
FABRICATING, INC.
|
Reconciliation of
GAAP Net Income to Adjusted Diluted Earnings Per
Share
|
|
|
Thirteen Weeks
Ended
April 1, 2018
|
|
Thirteen Weeks
Ended
April 2, 2017
|
GAAP Net
income
|
$
|
1,511,889
|
|
|
$
|
2,046,837
|
|
Plus: Non-cash stock
award
|
33,260
|
|
|
37,508
|
|
Plus: Non-recurring
integration expenses
|
—
|
|
|
2,829
|
|
Plus: Transaction
fees
|
—
|
|
|
23,235
|
|
Plus: Restructuring
expenses
|
442,267
|
|
|
—
|
|
Plus: One-time
consulting and licensing ERP system implementation costs
|
180,701
|
|
|
238,124
|
|
Less: Tax
impact
|
(133,801)
|
|
|
(18,918)
|
|
Adjusted Net
income
|
$
|
2,034,316
|
|
|
$
|
2,329,615
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
9,911,689
|
|
|
9,916,687
|
|
Net income per
share
|
|
|
|
Diluted -
GAAP
|
$
|
0.15
|
|
|
$
|
0.21
|
|
Diluted -
Adjusted
|
$
|
0.21
|
|
|
$
|
0.23
|
|
UNIQUE
FABRICATING, INC.
|
Purchase
Accounting Impacts and Other Effects
|
|
|
Thirteen Weeks
Ended
April 1, 2018
|
|
Thirteen Weeks
Ended
April 2, 2017
|
Non-cash purchase
accounting impacts
|
|
|
|
Customer
relationships amortization
|
$
|
836,793
|
|
|
$
|
836,071
|
|
Trade name
amortization
|
72,926
|
|
|
72,926
|
|
Non-compete
amortization
|
44,162
|
|
|
44,162
|
|
Unpatented
technology
|
76,529
|
|
|
76,529
|
|
Less: Tax
impact
|
(201,291)
|
|
|
(309,979)
|
|
Net income
effect
|
$
|
829,119
|
|
|
$
|
719,709
|
|
|
|
|
|
Net income per share
impact
|
|
|
|
GAAP -
Basic
|
$
|
0.08
|
|
|
$
|
0.07
|
|
GAAP -
Diluted
|
$
|
0.08
|
|
|
$
|
0.07
|
|
View original
content:http://www.prnewswire.com/news-releases/unique-fabricating-inc-reports-first-quarter-2018-financial-results-300646070.html
SOURCE Unique Fabricating, Inc.