Rob Fink, FNK IR
Unique Fabricating, Inc. Reports Second Quarter 2020 Financial Results and Successfully Amends Credit Agreement
June net sales of $10.0 million support improving revenue outlook while $1.1 million quarterly SG&A reduction reflects the impact of the continuing operational improvements
July net sales of $10.8 million continue strong recovery trajectory for the third quarter
Auburn Hills, MI – August 13th, 2020 — Unique Fabricating, Inc. (“Unique Fabricating” or the “Company”) (NYSE American: UFAB), a leader in engineering and manufacturing 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 second quarter ended June 30, 2020.
Second Quarter 2020 Financial Results
▪Net sales of $14.8 million compared to $38.9 million in the second quarter of 2019.
▪Net loss of $4.3 million or $0.44 per basic and diluted share compared to a net loss of $7.6 million or $0.78 per basic and diluted share in the second quarter of 2019.
▪Net debt(1) decreased $5.4 million to $45.8 million as of June 30, 2020, inclusive of $4.7 million of cash and cash equivalents, compared to $51.2 million as of June 30, 2019, inclusive of $1.1 million of cash and cash equivalents.
▪Restructuring charges of $0.3 million primarily related to sale and closure of the Evansville, Indiana owned facility compared to $0.7 million in the second quarter of 2019 primarily related to executive severance.
▪Interest expense decreased $0.7 million to $0.6 million compared to prior year of $1.3 million.
“The COVID-19 situation had a significant negative impact on our second quarter results with $24.1 million lower sales and the corresponding impact on operating profit,” said Doug Cain, President and Chief Executive Officer. “During this quarter, we completed our targeted restructuring activities, reduced our fixed cost structure, increased our plant productivity and efficiencies, and completed our executive leadership team. In combination with all of the improvement activities, our new bank loan amendment provides sufficient liquidity and a strong foundation for the Company to focus its efforts fully on profitable growth going forward. We saw a meaningful increase in our net sales in June to $10.0 million with the corresponding positive impact on operating profit. Our July net sales of $10.8 million support our view to a much improved third quarter and second half of 2020 with continued sustainable positive operating profits and operating cash flows to reduce debt. Our comprehensive operational improvement and cost reduction activities are in place and we are prepared to efficiently manage the increasing volumes.”
The following information was filed by Unique Fabricating, Inc. (UFAB) on Thursday, August 13, 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.