Delaware | 001-36051 | 46-2888322 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title: | Vice President and Chief Financial Officer |
• | Net sales of $155.4 million decreased 8.6 percent and included a negative 3.7 percent impact from the divestiture and planned exit of non-core businesses in the margin expansion program and a positive 1.2 percent from foreign currency translation. |
• | Operating income of $4.7 million, or 3.0 percent of net sales, increased $0.4 million from 2.5 percent of net sales on improved operational results on lower sales and higher restructuring costs. |
• | Net loss of $1.6 million, or $0.10 diluted loss per share, decreased $0.9 million or $0.03 per share, significantly impacted by a loss on the divestiture of the Acoustics European operations of $0.8 million net of tax, or $0.03 per share. |
• | Free cash flow was $0.4 million, an increase of $2.3 million, due to higher cash flows generated by operations and lower capital expenditures. Total liquidity was $98.3 million, an increase of $12.9 million vs prior year. |
• | Adjusted EBITDA of $16.1 million, or 10.4 percent of net sales, decreased $0.4 million and improved from 9.7 percent of net sales, driven by margin expansion from improved operational efficiencies. |
• | Adjusted net loss of $0.4 million, or $0.01 Adjusted loss per share, improved $0.05 per share. |
• | Total Cost Reduction and Margin Expansion program savings were $1.0 million in the third quarter with a total of $18.0 million since the inception of the program. Actions taken and announced to-date are expected to achieve $22 million in annual run-rate cost savings. |
• | Completed the sale of both the Acoustics European operations and the Finishing manufacturing facility in Richmond, Virginia as previously announced for combined net proceeds of $10.0 million. The Virginia facility will be fully consolidated into Finishing’s Richmond, Indiana location in the fourth quarter. |
• | Achieved organic growth of 4.3 percent in Finishing and 1.8 percent in Seating. Finishing organic growth was achieved through strength in industrial markets and share gains, while exiting low margin business and products. |
• | Seating was awarded significant new platforms by Mahindra North America (Mahindra), a world leader in tractor sales. The new business award results in supplying seats for Mahindra’s compact, mid-sized and full-sized utility tractor platforms for ten models spanning both open and cab designs. The contract includes significant volume over three years. |
• | Repurchased $12.0 million Second Lien Term Loans for $10.7 million. |
• | Finishing net sales of $51.1 million increased $1.9 million, or 3.9 percent, including a positive foreign currency translation impact of 3.0 percent and a negative 3.4 percent impact from the exit of a non-core market in Brazil. Organic sales increased 4.3 percent and were impacted by higher volumes in industrial end markets, partially offset by strategic decisions to exit low-margin business and products. Adjusted EBITDA was $7.5 million, or 14.7 percent of net sales, an increase of $0.5 million from 14.3 percent of net sales. Adjusted EBITDA margin increased on improved pricing and continuous improvement initiatives. |
• | Components net sales of $19.9 million decreased $4.9 million, or 19.8 percent, including a negative 8.6 percent impact from the exit of non-core product lines upon closure of the Buffalo Grove, Illinois facility. Organic sales decreased 11.2 |
• | Seating net sales of $33.0 million increased $0.6 million, or 2.0 percent, including a positive foreign currency translation impact of 0.2 percent. Organic sales increased 1.8 percent on improved pricing and higher market volume and share gain in the construction market, partially offset by lower volumes in the motorcycle and turf care markets. Adjusted EBITDA was $2.6 million, or 8.0 percent of net sales, an increase of $0.1 million from 7.8 percent of net sales, and was positively impacted by continuous improvement initiatives and supply chain negotiation savings. |
• | Acoustics net sales of $51.5 million decreased $12.3 million, or 19.3 percent, including a positive foreign currency translation impact of 0.7 percent. Organic sales decreased 16.1 percent due to automotive assembly plant shutdowns on declining light vehicle demand and temporary 2016 takeover volumes related to a competitor bankruptcy. Adjusted EBITDA was $6.6 million, or 12.9 percent of net sales, a decrease of $0.8 million from 11.6 percent of net sales due to improved labor and material productivity, partially offset by lower volumes. |
• | Corporate expenses of $3.1 million decreased $1.0 million on lower third-party consulting fees and lower administration expenses. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 29, 2017 | September 30, 2016 | September 29, 2017 | September 30, 2016 | ||||||||||||
Net sales | $ | 155,430 | $ | 170,108 | $ | 503,100 | $ | 546,769 | |||||||
Cost of goods sold | 123,457 | 139,261 | 400,874 | 441,092 | |||||||||||
Gross profit | 31,973 | 30,847 | 102,226 | 105,677 | |||||||||||
Selling and administrative expenses | 26,170 | 25,941 | 78,068 | 86,515 | |||||||||||
(Gain) loss on disposals of property, plant and equipment - net | (639 | ) | 68 | (904 | ) | 757 | |||||||||
Restructuring | 1,772 | 566 | 2,996 | 5,066 | |||||||||||
Operating income | 4,670 | 4,272 | 22,066 | 13,339 | |||||||||||
Interest expense | (8,203 | ) | (7,906 | ) | (24,964 | ) | (23,893 | ) | |||||||
Gain on extinguishment of debt | 819 | — | 2,383 | — | |||||||||||
Equity income | 295 | 146 | 715 | 457 | |||||||||||
Loss on divestiture | (842 | ) | — | (8,730 | ) | — | |||||||||
Other income - net | 58 | 247 | 261 | 648 | |||||||||||
Loss before income taxes | (3,203 | ) | (3,241 | ) | (8,269 | ) | (9,449 | ) | |||||||
Tax benefit | (1,602 | ) | (694 | ) | (1,438 | ) | (1,360 | ) | |||||||
Net loss | $ | (1,601 | ) | $ | (2,547 | ) | $ | (6,831 | ) | $ | (8,089 | ) | |||
Less net (loss) gain attributable to noncontrolling interests | — | (415 | ) | 5 | (1,325 | ) | |||||||||
Net loss attributable to Jason Industries | $ | (1,601 | ) | $ | (2,132 | ) | $ | (6,836 | ) | $ | (6,764 | ) | |||
Accretion of preferred stock dividends | 955 | 900 | 2,809 | 2,700 | |||||||||||
Net loss available to common shareholders of Jason Industries | $ | (2,556 | ) | $ | (3,032 | ) | $ | (9,645 | ) | $ | (9,464 | ) | |||
Net loss per share available to common shareholders of Jason Industries: | |||||||||||||||
Basic and diluted | $ | (0.10 | ) | $ | (0.13 | ) | $ | (0.37 | ) | $ | (0.42 | ) | |||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic and diluted | 26,241 | 22,499 | 26,023 | 22,423 |
September 29, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 51,391 | $ | 40,861 | |||
Accounts receivable - net | 75,793 | 77,837 | |||||
Inventories - net | 70,495 | 73,601 | |||||
Other current assets | 16,259 | 17,866 | |||||
Total current assets | 213,938 | 210,165 | |||||
Property, plant and equipment - net | 154,501 | 177,823 | |||||
Goodwill | 44,739 | 42,157 | |||||
Other intangible assets - net | 134,484 | 144,258 | |||||
Other assets - net | 12,927 | 9,433 | |||||
Total assets | $ | 560,589 | $ | 583,836 | |||
Liabilities and Shareholders' Equity (Deficit) | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 7,310 | $ | 8,179 | |||
Accounts payable | 56,154 | 61,160 | |||||
Accrued compensation and employee benefits | 19,119 | 13,207 | |||||
Accrued interest | 98 | 191 | |||||
Other current liabilities | 24,059 | 24,807 | |||||
Total current liabilities | 106,740 | 107,544 | |||||
Long-term debt | 397,901 | 416,945 | |||||
Deferred income taxes | 34,122 | 42,608 | |||||
Other long-term liabilities | 21,330 | 19,881 | |||||
Total liabilities | 560,093 | 586,978 | |||||
Shareholders' Equity (Deficit) | |||||||
Preferred stock | 48,697 | 45,899 | |||||
Jason Industries common stock | 3 | 2 | |||||
Additional paid-in capital | 144,547 | 144,666 | |||||
Retained deficit | (170,068 | ) | (163,232 | ) | |||
Accumulated other comprehensive loss | (22,683 | ) | (30,372 | ) | |||
Shareholders’ equity (deficit) attributable to Jason Industries | 496 | (3,037 | ) | ||||
Noncontrolling interests | — | (105 | ) | ||||
Total shareholders' equity (deficit) | 496 | (3,142 | ) | ||||
Total liabilities and shareholders' equity (deficit) | $ | 560,589 | $ | 583,836 |
Nine Months Ended | |||||||
September 29, 2017 | September 30, 2016 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (6,831 | ) | $ | (8,089 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation of property, plant and equipment | 19,874 | 23,502 | |||||
Amortization of intangible assets | 9,365 | 9,421 | |||||
Amortization of deferred financing costs and debt discount | 2,232 | 2,256 | |||||
Equity income | (715 | ) | (457 | ) | |||
Deferred income taxes | (8,540 | ) | (7,635 | ) | |||
(Gain) loss on disposals of property, plant and equipment - net | (904 | ) | 757 | ||||
Gain on extinguishment of debt | (2,383 | ) | — | ||||
Loss on divestiture | 8,730 | — | |||||
Transaction fees on divestiture | (932 | ) | — | ||||
Dividends from joint venture | — | 2,068 | |||||
Share-based compensation | 904 | (864 | ) | ||||
Net increase (decrease) in cash, excluding effect of divestitures, due to changes in: | |||||||
Accounts receivable | (332 | ) | (15,857 | ) | |||
Inventories | 3,958 | 1,487 | |||||
Other current assets | 655 | 6,366 | |||||
Accounts payable | (5,275 | ) | 7,850 | ||||
Accrued compensation and employee benefits | 7,647 | (1,209 | ) | ||||
Accrued interest | (80 | ) | 33 | ||||
Accrued income taxes | 2,061 | 2,030 | |||||
Other - net | (4,954 | ) | 1,213 | ||||
Total adjustments | 31,311 | 30,961 | |||||
Net cash provided by operating activities | 24,480 | 22,872 | |||||
Cash flows from investing activities | |||||||
Proceeds from disposals of property, plant and equipment | 8,758 | 3,299 | |||||
Payments for property, plant and equipment | (10,363 | ) | (16,111 | ) | |||
Proceeds from divestitures, net of cash divested and debt assumed by buyer | 7,883 | — | |||||
Acquisitions of patents | (64 | ) | (134 | ) | |||
Changes in restricted cash | (2,361 | ) | — | ||||
Net cash provided by (used in) investing activities | 3,853 | (12,946 | ) | ||||
Cash flows from financing activities | |||||||
Payments of First and Second Lien term loans | (21,051 | ) | (2,325 | ) | |||
Proceeds from other long-term debt | 7,883 | 8,415 | |||||
Payments of other long-term debt | (6,190 | ) | (9,635 | ) | |||
Payments of preferred stock dividends | (9 | ) | (2,700 | ) | |||
Other financing activities - net | (35 | ) | (151 | ) | |||
Net cash used in financing activities | (19,402 | ) | (6,396 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 1,599 | 63 | |||||
Net increase in cash and cash equivalents | 10,530 | 3,593 | |||||
Cash and cash equivalents, beginning of period | 40,861 | 35,944 | |||||
Cash and cash equivalents, end of period | $ | 51,391 | $ | 39,537 |
2016 | 2017 | ||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | YTD | ||||||||||||||||||||||||||||
Finishing | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 50,276 | $ | 53,148 | $ | 49,162 | $ | 44,297 | $ | 196,883 | $ | 49,476 | $ | 49,757 | $ | 51,065 | $ | 150,298 | |||||||||||||||||||
Adjusted EBITDA | 5,229 | 7,634 | 7,042 | 4,295 | 24,200 | 7,067 | 7,324 | 7,503 | 21,894 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 10.4 | % | 14.4 | % | 14.3 | % | 9.7 | % | 12.3 | % | 14.3 | % | 14.7 | % | 14.7 | % | 14.6 | % | |||||||||||||||||||
Components | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 26,837 | $ | 24,634 | $ | 24,876 | $ | 21,320 | $ | 97,667 | $ | 21,117 | $ | 21,713 | $ | 19,945 | $ | 62,775 | |||||||||||||||||||
Adjusted EBITDA | 4,613 | 3,337 | 3,658 | 2,641 | 14,249 | 2,720 | 2,451 | 2,445 | 7,616 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 17.2 | % | 13.5 | % | 14.7 | % | 12.4 | % | 14.6 | % | 12.9 | % | 11.3 | % | 12.3 | % | 12.1 | % | |||||||||||||||||||
Seating | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 51,950 | $ | 44,680 | $ | 32,330 | $ | 32,090 | $ | 161,050 | $ | 47,373 | $ | 44,921 | $ | 32,963 | $ | 125,257 | |||||||||||||||||||
Adjusted EBITDA | 6,629 | 5,620 | 2,507 | 1,366 | 16,122 | 5,530 | 5,897 | 2,621 | 14,048 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 12.8 | % | 12.6 | % | 7.8 | % | 4.3 | % | 10.0 | % | 11.7 | % | 13.1 | % | 8.0 | % | 11.2 | % | |||||||||||||||||||
Acoustics | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 61,911 | $ | 63,225 | $ | 63,740 | $ | 61,043 | $ | 249,919 | $ | 57,227 | $ | 56,086 | $ | 51,457 | $ | 164,770 | |||||||||||||||||||
Adjusted EBITDA | 6,615 | 6,758 | 7,414 | 6,415 | 27,202 | 6,721 | 7,983 | 6,640 | 21,344 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 10.7 | % | 10.7 | % | 11.6 | % | 10.5 | % | 10.9 | % | 11.7 | % | 14.2 | % | 12.9 | % | 13.0 | % | |||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (4,747 | ) | $ | (4,595 | ) | $ | (4,098 | ) | $ | (4,173 | ) | $ | (17,613 | ) | $ | (3,477 | ) | $ | (3,075 | ) | $ | (3,073 | ) | $ | (9,625 | ) | ||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 190,974 | $ | 185,687 | $ | 170,108 | $ | 158,750 | $ | 705,519 | $ | 175,193 | $ | 172,477 | $ | 155,430 | $ | 503,100 | |||||||||||||||||||
Adjusted EBITDA | 18,339 | 18,754 | 16,523 | 10,544 | 64,160 | 18,561 | 20,580 | 16,136 | 55,277 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 9.6 | % | 10.1 | % | 9.7 | % | 6.6 | % | 9.1 | % | 10.6 | % | 11.9 | % | 10.4 | % | 11.0 | % |
3Q 2017 | |||||||||
Finishing | Components | Seating | Acoustics | Jason Consolidated | |||||
Net sales | |||||||||
Organic sales growth | 4.3% | (11.2)% | 1.8% | (16.1)% | (6.1)% | ||||
Currency impact | 3.0% | —% | 0.2% | 0.7% | 1.2% | ||||
Divestiture & Non-Core Exit | (3.4)% | (8.6)% | —% | (3.9)% | (3.7)% | ||||
Growth as reported | 3.9% | (19.8)% | 2.0% | (19.3)% | (8.6)% | ||||
YTD 2017 | |||||||||
Finishing | Components | Seating | Acoustics | Jason Consolidated | |||||
Net sales | |||||||||
Organic sales growth | 1.8% | (7.1)% | (2.6)% | (11.5)% | (5.1)% | ||||
Currency impact | (0.5)% | —% | (0.3)% | —% | (0.2)% | ||||
Divestiture & Non-Core Exit | (2.8)% | (10.7)% | —% | (1.3)% | (2.7)% | ||||
Growth as reported | (1.5)% | (17.8)% | (2.9)% | (12.8)% | (8.0)% |
3Q | YTD | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Operating Cash Flow | $ | 2,095 | $ | 3,648 | $ | 22,872 | $ | 24,480 | |||||||
Less: Capital Expenditures | (3,982 | ) | (3,202 | ) | (16,111 | ) | (10,363 | ) | |||||||
Less: Preferred Stock Dividends | — | (5 | ) | (2,700 | ) | (9 | ) | ||||||||
Free Cash Flow After Dividends | $ | (1,887 | ) | $ | 441 | $ | 4,061 | $ | 14,108 |
September 29, 2017 | |||
Current and long-term debt | $ | 405,211 | |
Add: Debt discounts and deferred financing costs | 9,795 | ||
Less: Cash and cash equivalents | (51,391 | ) | |
Net Debt | $ | 363,615 | |
Adjusted EBITDA | |||
4Q16 | $ | 10,544 | |
1Q17 | 18,561 | ||
2Q17 | 20,580 | ||
3Q17 | 16,136 | ||
TTM Adjusted EBITDA | 65,821 | ||
Divestiture TTM Adjusted EBITDA* | (2,341 | ) | |
Pro Forma TTM Adjusted EBITDA | 63,480 | ||
Net Debt to Adjusted EBITDA** | 5.7x |
2016 | 2017 | ||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | YTD | ||||||||||||||||||||||||||||
Net income (loss) | $ | (3,088 | ) | $ | (2,454 | ) | $ | (2,547 | ) | $ | (69,964 | ) | $ | (78,053 | ) | $ | (493 | ) | $ | (4,737 | ) | $ | (1,601 | ) | $ | (6,831 | ) | ||||||||||
Tax provision (benefit) | (2,579 | ) | 1,913 | (694 | ) | (4,936 | ) | (6,296 | ) | (15 | ) | 179 | (1,602 | ) | (1,438 | ) | |||||||||||||||||||||
Interest expense | 8,024 | 7,963 | 7,906 | 7,950 | 31,843 | 8,366 | 8,395 | 8,203 | 24,964 | ||||||||||||||||||||||||||||
Depreciation and amortization | 10,397 | 11,457 | 11,069 | 11,118 | 44,041 | 10,003 | 9,487 | 9,749 | 29,239 | ||||||||||||||||||||||||||||
EBITDA | 12,754 | 18,879 | 15,734 | (55,832 | ) | (8,465 | ) | 17,861 | 13,324 | 14,749 | 45,934 | ||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||
Impairment charges(1) | — | — | — | 63,285 | 63,285 | — | — | — | — | ||||||||||||||||||||||||||||
Restructuring(2) | 2,717 | 1,783 | 566 | 2,166 | 7,232 | 681 | 543 | 1,772 | 2,996 | ||||||||||||||||||||||||||||
Integration and other restructuring costs(3) | 1,589 | 55 | (354 | ) | 690 | 1,980 | — | — | — | — | |||||||||||||||||||||||||||
Share-based compensation(4) | 576 | (1,949 | ) | 509 | 112 | (752 | ) | 349 | 324 | 231 | 904 | ||||||||||||||||||||||||||
Loss (gain) on disposals of fixed assets—net(5) | 703 | (14 | ) | 68 | 123 | 880 | (330 | ) | 65 | (639 | ) | (904 | ) | ||||||||||||||||||||||||
Gain on extinguishment of debt(6) | — | — | — | — | — | — | (1,564 | ) | (819 | ) | (2,383 | ) | |||||||||||||||||||||||||
Loss on divestitures(7) | — | — | — | — | — | — | 7,888 | 842 | 8,730 | ||||||||||||||||||||||||||||
Total adjustments | 5,585 | (125 | ) | 789 | 66,376 | 72,625 | 700 | 7,256 | 1,387 | 9,343 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 18,339 | $ | 18,754 | $ | 16,523 | $ | 10,544 | $ | 64,160 | $ | 18,561 | $ | 20,580 | $ | 16,136 | $ | 55,277 |
(1) | Represents non-cash impairment of goodwill of $29.8 million and $33.2 million in the acoustics and components segments, respectively. |
(2) | Restructuring includes costs associated with exit or disposal activities as defined by GAAP related to facility consolidation, including one-time employee termination benefits, costs to close facilities and relocate employees, and costs to terminate contracts other than capital leases. |
(3) | During 2016, integration and other restructuring costs primarily includes costs incurred in connection with the start-up of a new acoustics segment facilities in Warrensburg, Missouri and Richmond, Indiana and during the third quarter of 2016 includes a $0.6 million reversal of a reserve related to the Newcomerstown fire recorded in acquisition accounting for the business combination in 2014. |
(4) | Represents non-cash share based compensation expense (income) for awards under the Company’s 2014 Omnibus Incentive Plan. During the second quarter of 2016, share-based compensation includes $2.5 million of expense reversal as a result of the lowering of assumed vesting levels for Adjusted EBITDA performance share units. |
(5) | Loss (gain) on disposals of fixed assets for the third quarter of 2017 includes a gain $0.5 million on the sale of a building related to the closure of the finishing segment’s Richmond, Virginia facility, for the first quarter of 2017 includes a gain of $0.4 million on the sale of equipment related to the closure of the components segment’s Buffalo Grove, Illinois facility and for the first quarter of 2016 includes a loss of $0.6 million on the sale of a seating segment facility. |
(6) | Represents a gain on extinguishment of Second Lien Term Loan debt in both the second and third quarter of 2017. |
(7) | Represents the completed divestiture of the Company’s Acoustics European operations. A pre-tax loss of $7.9 million was recorded in the second quarter of 2017 when the business was classified as held for sale and a pre-tax loss of $0.8 million was recorded in the third quarter of 2017 upon closing of the divestiture. |
2016 | 2017 | ||||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | YTD | ||||||||||||||||||||||||||||||
GAAP Net income (loss) | $ | (3,088 | ) | $ | (2,454 | ) | $ | (2,547 | ) | $ | (69,964 | ) | $ | (78,053 | ) | $ | (493 | ) | $ | (4,737 | ) | $ | (1,601 | ) | $ | (6,831 | ) | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||
Impairment charges | — | — | — | 63,285 | 63,285 | — | — | — | — | ||||||||||||||||||||||||||||||
Restructuring | 2,717 | 1,783 | 566 | 2,166 | 7,232 | 681 | 543 | 1,772 | 2,996 | ||||||||||||||||||||||||||||||
Integration and other restructuring costs | 1,589 | 55 | (354 | ) | 690 | 1,980 | — | — | — | — | |||||||||||||||||||||||||||||
Share based compensation | 576 | (1,949 | ) | 509 | 112 | (752 | ) | 349 | 324 | 231 | 904 | ||||||||||||||||||||||||||||
Loss (gain) on disposal of fixed assets - net | 703 | (14 | ) | 68 | 123 | 880 | (330 | ) | 65 | (639 | ) | (904 | ) | ||||||||||||||||||||||||||
Gain on extinguishment of debt | — | — | — | — | — | — | (1,564 | ) | (819 | ) | (2,383 | ) | |||||||||||||||||||||||||||
Loss on divestitures | — | — | — | — | — | — | 7,888 | 842 | 8,730 | ||||||||||||||||||||||||||||||
Tax effect on adjustments(1) | (1,926 | ) | 558 | (122 | ) | (574 | ) | (2,064 | ) | (55 | ) | (582 | ) | (214 | ) | (851 | ) | ||||||||||||||||||||||
Adjusted net income (loss) | $ | 571 | $ | (2,021 | ) | $ | (1,880 | ) | $ | (4,162 | ) | $ | (7,492 | ) | $ | 152 | $ | 1,937 | $ | (428 | ) | $ | — | $ | 1,661 | ||||||||||||||
Effective tax rate on adjustments(1) | 34 | % | 446 | % | 15 | % | 1 | % | 3 | % | 16 | % | 8 | % | 16 | % | 9 | % | |||||||||||||||||||||
Diluted weighted average number of common shares outstanding (GAAP): | 22,388 | 22,395 | 22,499 | 22,758 | 22,507 | 25,784 | 26,042 | 26,241 | 26,023 | ||||||||||||||||||||||||||||||
Plus: effect of dilutive share-based compensation (non-GAAP)(2) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Plus: effect of convertible preferred stock and rollover shares (non-GAAP)(2) | 7,139 | 7,139 | 7,139 | 6,919 | 7,083 | 3,967 | 3,815 | 3,889 | 3,894 | ||||||||||||||||||||||||||||||
Diluted weighted average number of common shares outstanding (non-GAAP)(2) | 29,527 | 29,534 | 29,638 | 29,677 | 29,590 | 29,751 | 29,857 | 30,130 | — | 29,917 | |||||||||||||||||||||||||||||
Adjusted (loss) earnings per share | $ | 0.02 | $ | (0.07 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.25 | ) | $ | 0.01 | $ | 0.06 | $ | (0.01 | ) | $ | 0.06 | ||||||||||||||||
GAAP Net (loss) income per share available to common shareholders of Jason Industries | $ | (0.16 | ) | $ | (0.13 | ) | $ | (0.13 | ) | $ | (2.70 | ) | $ | (3.15 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | (0.37 | ) | ||||||||||||
Adjustments net of income taxes: | |||||||||||||||||||||||||||||||||||||||
Impairment charges, net of noncontrolling interest | — | — | — | 2.39 | 2.42 | — | — | — | — | ||||||||||||||||||||||||||||||
Restructuring | 0.08 | 0.06 | 0.02 | 0.09 | 0.24 | 0.02 | 0.01 | 0.04 | 0.07 | ||||||||||||||||||||||||||||||
Integration and other restructuring costs | 0.04 | — | (0.01 | ) | 0.03 | 0.07 | — | — | — | — | |||||||||||||||||||||||||||||
Share based compensation | 0.02 | (0.04 | ) | 0.02 | 0.01 | 0.01 | 0.02 | 0.02 | 0.01 | 0.05 | |||||||||||||||||||||||||||||
Loss (gain) on disposal of fixed assets - net | 0.02 | — | — | — | 0.02 | (0.01 | ) | — | (0.01 | ) | (0.02 | ) | |||||||||||||||||||||||||||
Gain on extinguishment of debt | — | — | — | — | — | — | (0.04 | ) | (0.02 | ) | (0.06 | ) | |||||||||||||||||||||||||||
Loss on divestitures | — | — | — | — | — | — | 0.26 | 0.03 | 0.29 | ||||||||||||||||||||||||||||||
GAAP to non-GAAP impact per share(2) | 0.02 | 0.04 | 0.04 | 0.04 | 0.14 | 0.03 | 0.03 | 0.04 | 0.10 | ||||||||||||||||||||||||||||||
Adjusted (loss) earnings per share | $ | 0.02 | $ | (0.07 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.25 | ) | $ | 0.01 | $ | 0.06 | $ | (0.01 | ) | $ | 0.06 |
(1) | The effective tax rate on adjustments is impacted by nondeductible foreign transaction and restructuring costs, nondeductible impairment of goodwill, restructuring charges in foreign jurisdictions at statutory tax rates, and discrete non-cash tax expense related to the vesting of restricted stock units for which no tax benefit will be realized. |
(2) | Adjusted earnings per share includes the impact of share-based compensation to the extent it is dilutive in each period. Adjusted earnings per share includes the impact to Jason Industries common shares upon conversion of JPHI Holdings Inc. rollover shares and conversion of preferred stock. |
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