Exhibit 99.1
 

Press Release

 


Uniroyal Global Engineered Products, Inc. Reports Net Sales of $100,377,278 and
Net Income of $4,499,664 or $0.24 per Diluted Share for the Fiscal Year Ended January 1, 2017

Financial Highlights for the Fiscal Year Ended January 1, 2017 versus Prior Year:

 *Net Sales increase 0.6% (3.6% ex-currency)
 *Gross Margins expand to 22.8%
 *Operating Income increases 11.1%
 *Income before tax benefit increases 11.2%
 *Diluted Earnings Per Common Share $0.24 versus $0.26 on lower tax benefit

Net Sales

Net Sales for the fiscal year increased to $100,377,278, a gain of $615,305 or 0.6% versus the prior year. Included in these figures is a negative currency translation of $2.9 million due to the continued weakness in the British Pound. Also, fiscal 2015 was a 53-week period which, on a comparable basis, benefited Net Sales approximately $500,000 as compared to this year which was a 52-week period.  Without the effect of currency rate exchange and the additional week of sales in 2015, Net Sales would have increased 4.1%.

The Global Automotive Sector, representing 64.9% of total Net Sales, increased $3.9 million or 6.0%versus the prior year as a result of the Company being awarded several new programs both in Europe and domestically.  The new platforms and programs should also benefit the automotive sector in fiscal 2017. Before the negative currency translation, the increase in the Global Automotive Sector would have been $6.6 million or 10.1%.

The Industrial Sector declined $3.3 million or 9.4% in fiscal 2016 as major off-highway equipment manufacturers were impacted by a very challenging economic environment. Before the negative currency translation, the decrease in the Industrial Sector would have been $3.1 million or 8.6%.

Operating Income

Gross Profit margins improved to 22.8% versus 22.0% last year.  The margin improvement is due in part to the capital projects in Europe put in place last year specifically targeted to operating efficiencies and continued progress on our lean manufacturing and continuous improvement initiatives.
    

 
Operating Income was up sharply in 2016, increasing 11.1% versus the prior year to $8,046,665 or 8.0% of Net Sales, an increase of $807,124 from the $7,239,541 or 7.3% reported last year. Operating expenses were in line with the prior year. Spending on Research and Development projects remained robust in 2016 at $1,727,616 or 1.7% of Net Sales.

“Despite some major economic headwinds in 2016, we recorded significant operational improvement.  Our focus for 2017 will continue to be on the development of new products and technical improvement in automotive and industrial applications as well as capital spending initiatives to further enhance a strengthening in margins,” said Howard R. Curd, Chairman and Chief Executive Officer.

Net Income Available to Common Shareholders

Net Income before taxes increased $620,116 or 11.2% to $6,180,905 versus the $5,560,789 reported last year primarily due to the expansion of Operating Margins.

Net Income Available to Common Shareholders declined 9.1% to $4,499,664 versus the $4,952,156 reported last year.  Offsetting the improved operational performance was a significant decline in the tax benefit versus the previous year primarily related to the reduction in the Company’s U.S. deferred tax valuation allowance.

For further details, see the Consolidated Statements of Operations in the Company’s Form 10-K filed on March 20, 2017.  The Company will have comments on the year in an earning conference call on March 21, 2017 at 9:00 am (EST).  Persons wishing to access the conference call may do so by dialing 800-732-8711 (U.S.) and 913-312-0711 (International), and using the ID #2350165.  Howard F. Curd, President, will discuss our earnings on the call and will be available for questions. The call will also be available by logging on to www.uniroyalglobal.com and accessing the webcast link (https://public.viavid.com/player/index.php?id=123426) in the investor relations section. A replay of the conference call will be available beginning March 21, 2017 through June 21, 2017 by calling (844) 512-2921 (US) or (412) 317-6671 (International) and Pin #2350165.


About Uniroyal Global Engineered Products, Inc.:

Uniroyal Global Engineered Products, Inc. (UNIR) is a leading manufacturer of vinyl coated fabrics that are durable, stain resistant, cost-effective alternatives to leather, cloth and other synthetic fabric coverings. Uniroyal Global Engineered Products, Inc.’s revenue in 2016 was derived 65% from the automotive industry and approximately 35% from the recreational, industrial, indoor and outdoor furnishings, hospitality and health care markets. Our primary brand names include Naugahyde®, BeautyGard®, Flameblocker™, Spirit Millennium®, Ambla®, Amblon®, Velbex®, Cirroflex®, Plastolene® and Vynide®.
    

 
Forward-Looking Statements:

Except for statements of historical fact, certain information contained in this press release constitutes forward-looking statements, including, without limitation, statements containing the words “believe,” “expect,” “anticipate,” “intend,” “should,” “planned,” “estimated” and “potential” and words of similar import, as well as all references to the future. These forward-looking statements are based on Uniroyal Global Engineered Products, Inc.’s current expectations. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance and that a variety of factors could cause the Company´s actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company´s forward-looking statements. The risks and uncertainties which may affect the operations, performance, development and results of the Company´s business include, but are not limited to, the following: uncertainties relating to economic conditions, uncertainties relating to customer plans and commitments, the pricing and availability of equipment, materials and inventories, currency fluctuations, technological developments, performance issues with suppliers, economic growth, delays in testing of new products, the Company’s ability to successfully integrate acquired operations, the Company’s dependence on key personnel, the Company’s ability to protect its intellectual property rights, the effectiveness of cost-reduction plans, rapid technology changes and the highly competitive environment in which the Company operates. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
    

 
Uniroyal Global Engineered Products, Inc.
Consolidated Statements of Operations

   
Years Ended
 
             
   
January 1, 2017
   
January 3, 2016
 
             
NET SALES
 
$
100,377,278
   
$
99,761,973
 
                 
COST OF GOODS SOLD
   
77,515,316
     
77,813,354
 
                 
Gross Profit
   
22,861,962
     
21,948,619
 
                 
OPERATING EXPENSES:
               
Selling
   
5,078,706
     
5,201,199
 
General and administrative
   
8,008,975
     
7,779,012
 
Research and development
   
1,727,616
     
1,728,867
 
OPERATING EXPENSES
   
14,815,297
     
14,709,078
 
                 
Operating Income
   
8,046,665
     
7,239,541
 
                 
OTHER EXPENSE:
               
Interest and other debt related expense
   
(1,616,120
)
   
(1,613,391
)
Other expense
   
(249,640
)
   
(65,361
)
Net Other Expense
   
(1,865,760
)
   
(1,678,752
)
                 
INCOME BEFORE TAX BENEFIT
   
6,180,905
     
5,560,789
 
                 
TAX BENEFIT
   
(1,198,557
)
   
(2,193,054
)
                 
NET INCOME
   
7,379,462
     
7,753,843
 
                 
Preferred stock dividend
   
(2,879,798
)
   
(2,801,687
)
                 
NET INCOME AVAILABLE TO COMMON
     SHAREHOLDERS
 
$
4,499,664
   
$
4,952,156
 
                 
EARNINGS PER COMMON SHARE:
               
Basic
   
0.24
     
0.35
 
Diluted
   
0.24
     
0.26
 
WEIGHTED AVERAGE SHARES OUTSTANDING:
               
Basic
   
18,828,378
     
14,334,485
 
Diluted
   
18,869,709
     
19,040,032
 
 

 
Uniroyal Global Engineered Products, Inc.
Consolidated Balance Sheets

ASSETS
 
January 1,
2017
   
January 3,
2016
 
CURRENT ASSETS
           
Cash and cash equivalents
 
$
1,321,586
   
$
1,910,112
 
Accounts receivable, net
   
14,555,463
     
14,209,056
 
Inventories, net
   
17,046,171
     
17,527,728
 
Other current assets
   
2,485,213
     
2,891,007
 
Related party receivable
   
25,456
     
23,298
 
Total Current Assets
   
35,433,889
     
36,561,201
 
                 
PROPERTY AND EQUIPMENT, NET
   
13,611,494
     
14,003,276
 
                 
OTHER ASSETS
               
Intangible assets
   
3,133,564
     
3,534,936
 
Goodwill
   
1,079,175
     
1,079,175
 
Other long-term assets
   
5,410,375
     
3,095,414
 
Total Other Assets
   
9,623,114
     
7,709,525
 
                 
TOTAL ASSETS
 
$
58,668,497
   
$
58,274,002
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
CURRENT LIABILITIES
               
Checks issued in excess of bank balance
 
$
679,494
   
$
322,307
 
Lines of credit
   
16,799,592
     
16,577,279
 
Current maturities of long-term debt
   
851,988
     
639,018
 
Current maturities of capital lease obligations
   
368,718
     
489,978
 
Accounts payable
   
7,331,213
     
7,592,510
 
Accrued expenses
   
3,645,526
     
3,941,296
 
Related party obligation
   
371,161
     
276,880
 
Current portion of postretirement benefit liability - health and life
   
158,527
     
136,725
 
Total Current Liabilities
   
30,206,219
     
29,975,993
 
                 
LONG-TERM LIABILITIES
               
Long-term debt, less current portion
   
1,994,910
     
2,134,243
 
Capital lease obligations, less current portion
   
856,171
     
1,469,317
 
Related party lease financing obligations
   
2,162,151
     
2,164,682
 
Long-term debt to related parties
   
2,826,907
     
4,449,243
 
Postretirement benefit liability - health and life, less current portion
   
2,883,684
     
2,836,638
 
Other long-term liabilities
   
838,308
     
975,781
 
Total Long-Term Liabilities
   
11,562,131
     
14,029,904
 
Total Liabilities
   
41,768,350
     
44,005,897
 
                 
STOCKHOLDERS' EQUITY
               
Preferred units, Series A UEP Holdings, LLC, 200,000 units issued
      and outstanding ($100 issue price)
   
617,571
     
617,571
 
Preferred units, Series B UEP Holdings, LLC, 150,000 units issued
      and outstanding ($100 issue price)
   
463,179
     
463,179
 
Preferred stock, Engineered Products Acquisition Limited, 50 shares
      issued and outstanding ($1.51 stated value)
   
75
     
75
 
Common stock, 95,000,000 shares authorized ($.001 par value)
      18,727,782 and 18,890,909 shares issued and outstanding as of
      January 1, 2017 and January 3, 2016, respectively
   
18,728
     
18,892
 
Additional paid-in capital
   
34,653,894
     
34,823,886
 
Accumulated deficit
   
(17,174,814
)
   
(21,674,478
)
Accumulated other comprehensive income
   
(1,678,486
)
   
18,980
 
Total Stockholders' Equity
   
16,900,147
     
14,268,105
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
58,668,497
   
$
58,274,002
 
    

 
Uniroyal Global Engineered Products, Inc. Corporate Contact:

Elizabeth Henson, 941-870-3950
 
LHenson@UniroyalGlobal.com 
 
or
 
Uniroyal Global Engineered Products, Inc. Public Relations:

TTC Group, Inc.

Vic Allgeier, 646-290-6400
 
vic@ttcominc.com
 
 



The following information was filed by Uniroyal Global Engineered Products, Inc. (UNIR) on Monday, March 20, 2017 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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