Unique Fabricating, Inc. Reports Second Quarter 2019 Financial Results
Auburn Hills, MI - August 7, 2019 -- Unique Fabricating, Inc. ("Unique” or the "Company”)(NYSE American: 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 market, today announced its financial results for the second quarter ended June 30, 2019.
Second Quarter 2019 Financial Highlights and Subsequent Events
Revenue of $38.9 million in the second quarter of 2019, compared to $45.7 million in the second quarter of 2018
Net loss of ($7.6) million, or $(0.78) per basic and diluted share in the second quarter of 2019, compared to net income of $1.8 million, or $0.18 per basic and diluted share in the second quarter of 2018
Adjusted EBITDA of $2.9 million in the second quarter of 2019, including $6.8 million non-cash charges specifically related to the impairment of goodwill and $1.8 million non-cash charges specifically related to depreciation and amortization and non-cash stock awards, compared to $0 for the impairment of goodwill and $1.7 million non-cash charges specifically related to depreciation and amortization and non-cash stock awards in the second quarter of 2018(1)
Adjusted diluted earnings per share of $0.02 in the second quarter of 2019 versus $0.23 in the second quarter of 2018(1)
(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.
“Unique executed on cost reduction efforts to better position the company for improved financial results in the second half of this year and accelerated plans to further reduce its fixed costs during the quarter as North American auto production continued to soften,” commented Tom Tekiele, Chief Financial Officer. “Unique is continuing to experience the impact of the loss of business with two major non-automotive customers as a result of our strategic decision to close our Ft. Smith facility last year. We had hoped this would be offset by the ramp up of several major new production programs but these launches have been slower than anticipated. While the delays are unrelated to Unique directly, we have been negatively impacted as a result of changes to specific customers production schedules. We are cautiously optimistic that production will begin to ramp up as forecasted soon and that the sales shortfall caused by the delay will be made up in the second half of this year.”
“In response to the revenue headwinds and challenges we are facing, we have again accelerated efforts to reduce fixed costs and further improve our operational efficiency,” Tekiele added. “During the second quarter, we made the strategic decision to pull forward plans to close our Evansville, Indiana plant, which was scheduled for the first half of 2020, to September of this year. On an annualized basis, this action will reduce our overhead by more than $850,000 per year. In addition, we continue to evaluate additional opportunities to better leverage our geographic footprint and we believe there are several additional steps we can take to further streamline our organization to improve our performance while simultaneously reducing our overall cost structure.”
"To further enhance our financial position, subsequent to the end of the second quarter, we were able to secure an amendment to our credit agreement with our lenders which included a permanent waiver for our leverage covenant
The following information was filed by Unique Fabricating, Inc. (UFAB) on Wednesday, August 7, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: UFAB CIK: 1617669 Form Type:10-Q Quarterly Report Accession Number: 0001617669-19-000048 Submitted to the SEC: Wed Aug 07 2019 4:46:09 PM EST Accepted by the SEC: Wed Aug 07 2019 Period: Sunday, June 30, 2019 Industry: Motor Vehicle Parts And Accessories