Rob Fink, FNK IR
Unique Fabricating, Inc. Reports First Quarter 2020 Financial Results
$1.1 million net loss resulting from 11% lower COVID-19 impacted sales; $0.6 million higher swap related interest, and $0.9 million restructuring costs
10% Adjusted EBITDA(1) Improvement on Lower Revenue with $1.4 Million Reduction in SG&A
Auburn Hills, MI – June 25th, 2020 — 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 transportation, appliance, consumer, and medical markets, today announced its financial results for the first quarter ended March 31, 2020.
First Quarter 2020 Financial Results
▪Net sales of $35.0 million compared to $39.5 million in the first quarter of 2019.
▪Net loss of $1.1 million or $0.12 per basic and diluted share compared to a net loss of $0.2 million or $0.02 per basic and diluted share in the first quarter of 2019.
▪Restructuring charges of $0.9 million primarily related to closing the Company’s Bryan, Ohio plant and remaining costs from the Evansville, Indiana closure.
▪Interest expense increased $0.6 million compared to prior year to $1.7 million primarily due to our interest rate swap.
▪Adjusted EBITDA(1) of $3.2 million excluding the $0.9 million in restructuring expense, compared to $3.0 million in the first quarter of 2019 which included $0.1 million in restructuring expense. $1.4 million lower SG&A costs compared to first quarter 2019 driven by the realization of the comprehensive cost reduction program begun last year.
▪Total debt reduced by $7.9 million to $46.4 million as of March 31, 2020 compared to $54.3 million as of March 31, 2019 as the Company managed cash resulting in an increase in operating cash generated from higher earnings and decreased use of working capital.
(1)For a reconciliation of Net Income to Adjusted EBITDA, a non-GAAP financial measure, please refer to the financial tables below.
“The 10% increase in our first quarter Adjusted EBITDA despite $4.5 million lower sales confirms that our ongoing comprehensive performance improvement activities continue to result in enhanced operational efficiency and we expect will set the stage for sustainable profitability as market conditions improve,” said Doug Cain, President & CEO. “Over the last nine months, the Unique team has continued to execute our detailed plans despite the negative macro factors impacting the auto industry and the economy as a whole. I am proud of our total company efforts to support the medical and manufacturing communities over the last 10 weeks by pivoting our capabilities to produce PPE which we believe demonstrates our ability to adapt quickly to global challenges. Our ‘Boldly Back on Track’
The following information was filed by Unique Fabricating, Inc. (UFAB) on Thursday, June 25, 2020 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.