Exhibit 99.1


exhibit991image1.jpg

Unique Fabricating, Inc. Reports First Quarter 2018 Financial Results

Auburn Hills, MI - May 10, 2018 -- 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
Source: Unique Fabricating, Inc.




















































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 differences made from one to another to evaluate Unique Fabricating, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Unique Fabricating, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account