Rob Fink, FNK IR
Unique Fabricating, Inc. Reports Third Quarter 2020 Financial Results
Net income of $1.0 million from $35.6 million third quarter net sales, a $20.8 million increase from second quarter net sales
Auburn Hills, MI – November 12, 2020 — Unique Fabricating, Inc. (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, medical, and consumer markets, today announced its financial results for the third quarter ended September 30, 2020.
Third Quarter 2020 Financial Results
▪Net sales of $35.6 million compared to $38.5 million in the third quarter of 2019.
▪Net income of $1.0 million or $0.10 per basic and diluted share compared to a net loss of $1.3 million or $0.13 per basic and diluted share in the third quarter of 2019.
▪Net debt(1) decreased $2.1 million to $47.2 million as of September 30, 2020, inclusive of $2.3 million of cash and cash equivalents, compared to $49.3 million as of September 30, 2019, inclusive of $1.5 million of cash and cash equivalents.
▪Interest expense decreased $0.4 million to $0.7 million compared to prior year of $1.1 million.
“We delivered a $20.8 million sequential increase in net sales with the corresponding positive impact on gross profit and operating income.” said Doug Cain, President and Chief Executive Officer. “Our October net sales of $13.4 million continues this positive trend as we progress through the fourth quarter noting the traditionally slower sales months of November and December.”
“During this quarter, we continued winning new business with both near and mid-term impacts as well as increasing our plant productivity and efficiencies.” added Cain. “The latest independent forecasts for North America light vehicle production, combined with the positive market trends for home building and home remodeling that drive our appliance business, support our view of a profitable fourth quarter of 2020 and a positive start to 2021.”
Cain concluded “As I have completed my first year at the helm of Unique, I believe we are now well-positioned with a talented and motivated team to efficiently and profitably grow the business by providing innovative, optimized, and sustainable solutions for our customers.”
Third Quarter 2020 Financial Summary
Net sales for the quarter were $35.6 million, down 8% or $3.0 million from $38.5 million during the same period last year. The decrease was attributable to the end of certain transportation programs, lost sales resulting from our previous facility closures, and decontented components for two transportation customer platforms.
Gross profit for the quarter was $8.1 million, or 22.7% of net sales, compared to $7.2 million, or 18.6% of net sales, for the same period last year. The $1.7 million inventory valuation allowance increase in the third quarter of 2019 did not reoccur in 2020. This benefit was partially offset by the loss of contribution margin on the $3.0 million lower sales in the third quarter of 2020 as compared to the same period last year and COVID-19 related costs.
Net income of $1.0 million or $0.10 per basic and diluted share compared to a net loss of $1.3 million or $0.13 per basic and diluted share in the third quarter of 2019. The increase in net income is the result of the $1.7 million previously noted inventory charge, a $0.3 million reduction in selling, general and administrative expenses, $1.0
The following information was filed by Unique Fabricating, Inc. (UFAB) on Thursday, November 12, 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.