Unique Fabricating, Inc. Reports Third Quarter 2019 Financial Results
Auburn Hills, MI - November 7, 2019 -- Unique Fabricating, Inc. ("Unique Fabricating” 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 third quarter ended September 29, 2019.
Third Quarter 2019 Financial Results
Net sales of $38.5 million in the third quarter of 2019, compared to $42.1 million in the third quarter of 2018
$1.7 million inventory allowance and $1.0 million in restructuring charges primarily related to the closing of the Evansville, Indiana plant
Net loss of ($1.3) million, or $(0.13) per basic and diluted share in the third quarter of 2019 compared to net income of $0.6 million, or $0.06 per basic and diluted share in the third quarter of 2018
Adjusted EBITDA of $2.6 million in the third quarter of 2019, including $1.0 million in restructuring expense, compared to $3.4 million in the third quarter of 2018, including $0.2 million in restructuring expense (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.
As previously announced, Doug Cain joined Unique Fabricating as President and CEO on September 30th. In the six weeks since joining Unique Fabricating, he has visited all but two of the Company’s manufacturing facilities and met personally with all levels of the organization. In addition, he held meetings with many of our stakeholders and service providers to make a comprehensive assessment of the business and the organization. Richard Baum, Chairman of Unique Fabricating stated; “We are delighted to have a person of Doug’s caliber join the team. With his extensive experience in efficiently and effectively executing turnarounds and driving profitable growth, we are confident Unique Fabricating will return to its historic track record of successful top and bottom-line performance.” When asked to comment on his new role, Cain stated “When I took on this role a short while ago, I knew that there was a clear match between the needs of the Company and my results driven leadership in high volume manufacturing operations. I am very pleased with the positive reactions from all involved to the changes underway. I believe our team has identified significant opportunities in many areas to drive operational and financial improvements across the entire organization.”
Baum concluded “Our core automotive and industrial markets remain strong and our customer relationships are sound, even as these industries see continued volatility and end customer demand challenges. I am confident that we will continue to play a vital role in the auto industry efforts to reduce weight and noise while improving fuel efficiency and battery range in vehicles. “
Third Quarter Financial Summary
Net sales for the quarter ended September 29, 2019 decreased to $38.5 million, down 8.3%, or $3.5 million from $42.1 million during the same period last year. The decrease was primarily driven by the end of life of certain vehicle platforms, business loss associated with the on-going plant closure at Evansville, Indiana and the prior year plant closure of Ft. Smith, Arkansas, and the United Auto Workers (UAW) strike at General Motors. Gross profit for the quarter ended September 29, 2019 was $7.2 million, or 18.6% of total revenue, compared to $8.5 million, or 20.3% of net sales, for the corresponding period last year. The decrease in gross profit was primarily related to the decline in net sales
The following information was filed by Unique Fabricating, Inc. (UFAB) on Thursday, November 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: 0001617669-19-000082 Submitted to the SEC: Thu Nov 07 2019 4:46:10 PM EST Accepted by the SEC: Thu Nov 07 2019 Period: Sunday, September 29, 2019 Industry: Motor Vehicle Parts And Accessories