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: | Senior Vice President and Chief Financial Officer |
• | Net sales of $145.3 million decreased 6.5 percent and included a negative 1.7 percent impact from the divestiture and planned exit of non-core businesses and a negative 0.5 percent from foreign currency translation. |
• | Operating income of $2.9 million, or 2.0 percent of net sales, decreased from 3.0 percent of net sales on higher cost of goods sold. |
• | Net loss of $5.5 million, or $0.23 diluted loss per share, increased $3.9 million and $0.13 per share, impacted by $2.2 million, or $0.08 per share, of lower tax benefits. |
• | Free cash flow was $6.2 million, an increase of $5.7 million, due to lower working capital requirements and timing of capital expenditures. |
• | Adjusted EBITDA of $15.2 million decreased $0.9 million, including an impact of $0.6 million from the Acoustics Europe business divested in August 2017. Adjusted EBITDA margins expanded to 10.5 percent of net sales from 10.4 percent, driven by operational efficiencies and pricing. |
• | Adjusted Net Loss of $3.7 million, or $0.12 Adjusted Loss Per Share, increased $0.11 per share. |
• | Total Cost Reduction and Margin Expansion program savings were $0.5 million in the third quarter with a total of $22 million since the inception of the program. Actions taken and announced to-date are expected to achieve $24 million in annual run-rate cost savings. |
• | Achieved organic growth of 5.0 percent in Seating and 1.2 percent in Finishing. Organic growth was generated through select targeted growth initiatives, pricing actions and continued strength in U.S. industrial markets. |
• | Progressed the Nuneaton, United Kingdom Seating facility consolidation. Expected net proceeds from the facility sale are now $3.3 million with the consolidation and sale completed by year-end. |
• | Finishing net sales were $51.0 million with organic sales increasing 1.2 percent. Targeted growth initiatives and strong industrial markets in the U.S. were partially offset by moderating European industrial markets. Adjusted EBITDA was $7.6 million, or 14.9 percent of net sales, an increase of $0.1 million from 14.7 percent of net sales. Adjusted EBITDA margin increased on pricing actions and was impacted by inflation on both materials and freight. |
• | Components net sales of $21.4 million increased $1.5 million, or 7.3 percent. Organic sales decreased 9.4 percent due to lower volumes in rail and expanded metal products. Organic sales exclude non-core smart meter product lines, which increased 16.7 percent in preparation for the planned exit of production by the end of 2018. Adjusted EBITDA was $2.6 million, or 12.0 percent of net sales, compared with 12.3 percent of net sales in the prior year. |
• | Seating net sales of $34.6 million increased $1.6 million with organic sales increasing 5.0 percent. Higher volumes in the construction, agriculture, and material handling markets offset expected declines in motorcycles. Adjusted EBITDA was $3.6 million, or 10.4 percent of net sales, an increase of $1.0 million from 8.0 percent of net sales, with margins positively impacted by continuous improvement initiatives, labor and material efficiencies and pricing. |
• | Acoustics net sales of $38.3 million decreased $13.2 million, or 25.6 percent, including a negative 11.5 percent impact from the divestiture of the Acoustics European operations. Organic sales decreased 14.1 percent due to end-of-life platform changes and a continuing shift from cars to light truck vehicles. Adjusted EBITDA was $4.5 million, or 11.7 |
• | Corporate expenses of $3.0 million decreased $0.1 million versus the prior year. |
• | Net debt to Adjusted EBITDA on a trailing twelve-month basis was 5.1x as of the end of the third quarter, a decrease from 5.5x as of the end of 2017. Total liquidity as of the end of the third quarter was $91.2 million, comprised of $51.4 million of cash and cash equivalents and $39.8 million of availability on revolving loan facilities globally. |
• | In the third quarter, Moody’s upgraded the company’s credit ratings with the corporate family rating raised to B3 from Caa1, the senior secured first lien term loan raised to B2 from B3, and the secured second lien term loan raised to Caa2 from Caa3. The Company’s recently extended senior secured first lien revolving credit facilities were assigned a rating of B2. Moody’s ratings outlook remained stable. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 28, 2018 | September 29, 2017 | September 28, 2018 | September 29, 2017 | ||||||||||||
Net sales | $ | 145,295 | $ | 155,430 | $ | 480,973 | $ | 503,100 | |||||||
Cost of goods sold | 116,818 | 123,457 | 379,702 | 400,874 | |||||||||||
Gross profit | 28,477 | 31,973 | 101,271 | 102,226 | |||||||||||
Selling and administrative expenses | 24,514 | 26,170 | 80,926 | 78,068 | |||||||||||
(Gain) loss on disposals of property, plant and equipment - net | (91 | ) | (639 | ) | 154 | (904 | ) | ||||||||
Restructuring | 1,185 | 1,772 | 3,251 | 2,996 | |||||||||||
Operating income | 2,869 | 4,670 | 16,940 | 22,066 | |||||||||||
Interest expense | (8,348 | ) | (8,203 | ) | (24,778 | ) | (24,964 | ) | |||||||
Gain on extinguishment of debt | — | 819 | — | 2,383 | |||||||||||
Equity income | 468 | 295 | 903 | 715 | |||||||||||
Loss on divestiture | — | (842 | ) | — | (8,730 | ) | |||||||||
Other income - net | 51 | 58 | 606 | 261 | |||||||||||
Loss before income taxes | (4,960 | ) | (3,203 | ) | (6,329 | ) | (8,269 | ) | |||||||
Tax provision (benefit) | 552 | (1,602 | ) | 589 | (1,438 | ) | |||||||||
Net loss | $ | (5,512 | ) | $ | (1,601 | ) | $ | (6,918 | ) | $ | (6,831 | ) | |||
Less net gain attributable to noncontrolling interests | — | — | — | 5 | |||||||||||
Net loss attributable to Jason Industries | $ | (5,512 | ) | $ | (1,601 | ) | $ | (6,918 | ) | $ | (6,836 | ) | |||
Redemption premium and accretion of dividends on preferred stock | 781 | 955 | 3,274 | 2,809 | |||||||||||
Net loss available to common shareholders of Jason Industries | $ | (6,293 | ) | $ | (2,556 | ) | $ | (10,192 | ) | $ | (9,645 | ) | |||
Net loss per share available to common shareholders of Jason Industries: | |||||||||||||||
Basic and diluted | $ | (0.23 | ) | $ | (0.10 | ) | $ | (0.37 | ) | $ | (0.37 | ) | |||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic and diluted | 27,683 | 26,241 | 27,565 | 26,023 |
September 28, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 51,370 | $ | 48,887 | |||
Accounts receivable - net | 73,341 | 68,626 | |||||
Inventories - net | 65,473 | 70,819 | |||||
Other current assets | 17,201 | 15,655 | |||||
Total current assets | 207,385 | 203,987 | |||||
Property, plant and equipment - net | 141,021 | 154,196 | |||||
Goodwill | 44,410 | 45,142 | |||||
Other intangible assets - net | 119,646 | 131,499 | |||||
Other assets - net | 14,080 | 11,499 | |||||
Total assets | $ | 526,542 | $ | 546,323 | |||
Liabilities and Shareholders’ (Deficit) Equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 6,634 | $ | 9,704 | |||
Accounts payable | 52,704 | 53,668 | |||||
Accrued compensation and employee benefits | 16,543 | 17,433 | |||||
Accrued interest | 82 | 276 | |||||
Other current liabilities | 15,525 | 19,806 | |||||
Total current liabilities | 91,488 | 100,887 | |||||
Long-term debt | 389,211 | 391,768 | |||||
Deferred income taxes | 24,973 | 25,699 | |||||
Other long-term liabilities | 21,272 | 22,285 | |||||
Total liabilities | 526,944 | 540,639 | |||||
Shareholders’ (Deficit) Equity | |||||||
Preferred stock | 39,818 | 49,665 | |||||
Jason Industries common stock | 3 | 3 | |||||
Additional paid-in capital | 155,348 | 143,788 | |||||
Retained deficit | (174,118 | ) | (167,710 | ) | |||
Accumulated other comprehensive loss | (21,453 | ) | (20,062 | ) | |||
Total shareholders’ (deficit) equity | (402 | ) | 5,684 | ||||
Total liabilities and shareholders’ (deficit) equity | $ | 526,542 | $ | 546,323 |
Nine Months Ended | |||||||
September 28, 2018 | September 29, 2017 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (6,918 | ) | $ | (6,831 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation | 20,415 | 19,874 | |||||
Amortization of intangible assets | 11,242 | 9,365 | |||||
Amortization of deferred financing costs and debt discount | 2,199 | 2,232 | |||||
Equity income | (903 | ) | (715 | ) | |||
Deferred income taxes | (1,113 | ) | (8,540 | ) | |||
Loss (gain) on disposals of property, plant and equipment - net | 154 | (904 | ) | ||||
Gain on extinguishment of debt | — | (2,383 | ) | ||||
Loss on divestiture | — | 8,730 | |||||
Transaction fees on divestiture | — | (932 | ) | ||||
Share-based compensation | 1,728 | 904 | |||||
Net increase (decrease) in cash due to changes in: | |||||||
Accounts receivable | (5,155 | ) | (332 | ) | |||
Inventories | 4,368 | 3,958 | |||||
Other current assets | 811 | 655 | |||||
Accounts payable | (506 | ) | (5,275 | ) | |||
Accrued compensation and employee benefits | (689 | ) | 7,647 | ||||
Accrued interest | (194 | ) | (80 | ) | |||
Accrued income taxes | (3,548 | ) | 2,061 | ||||
Other - net | (1,876 | ) | (4,954 | ) | |||
Total adjustments | 26,933 | 31,311 | |||||
Net cash provided by operating activities | 20,015 | 24,480 | |||||
Cash flows from investing activities | |||||||
Proceeds from disposals of property, plant and equipment | 202 | 8,758 | |||||
Payments for property, plant and equipment | (9,636 | ) | (10,363 | ) | |||
Proceeds from divestitures, net of cash divested and debt assumed by buyer | — | 7,883 | |||||
Acquisitions of patents | (44 | ) | (64 | ) | |||
Net cash (used in) provided by investing activities | (9,478 | ) | 6,214 | ||||
Cash flows from financing activities | |||||||
Payments of deferred financing costs | (609 | ) | — | ||||
Payments of First and Second Lien term loans | (4,825 | ) | (21,051 | ) | |||
Proceeds from other long-term debt | 3,314 | 7,883 | |||||
Payments of other long-term debt | (5,358 | ) | (6,190 | ) | |||
Other financing activities - net | (14 | ) | (44 | ) | |||
Net cash used in financing activities | (7,492 | ) | (19,402 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (562 | ) | 1,599 | ||||
Net increase in cash and cash equivalents | 2,483 | 12,891 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 48,887 | 40,861 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 51,370 | $ | 53,752 |
2017 | 2018 | ||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | YTD | ||||||||||||||||||||||||||||
Finishing | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 49,476 | $ | 49,757 | $ | 51,065 | $ | 49,986 | $ | 200,284 | $ | 53,978 | $ | 55,454 | $ | 51,016 | $ | 160,448 | |||||||||||||||||||
Adjusted EBITDA | 7,067 | 7,324 | 7,503 | 5,767 | 27,661 | 7,799 | 8,437 | 7,579 | 23,815 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 14.3 | % | 14.7 | % | 14.7 | % | 11.5 | % | 13.8 | % | 14.4 | % | 15.2 | % | 14.9 | % | 14.8 | % | |||||||||||||||||||
Components | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 21,117 | $ | 21,713 | $ | 19,945 | $ | 19,846 | $ | 82,621 | $ | 22,393 | $ | 24,559 | $ | 21,404 | $ | 68,356 | |||||||||||||||||||
Adjusted EBITDA | 2,720 | 2,451 | 2,445 | 2,272 | 9,888 | 3,070 | 3,563 | 2,563 | 9,196 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 12.9 | % | 11.3 | % | 12.3 | % | 11.4 | % | 12.0 | % | 13.7 | % | 14.5 | % | 12.0 | % | 13.5 | % | |||||||||||||||||||
Seating | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 47,373 | $ | 44,921 | $ | 32,963 | $ | 33,872 | $ | 159,129 | $ | 47,034 | $ | 44,993 | $ | 34,609 | $ | 126,636 | |||||||||||||||||||
Adjusted EBITDA | 5,530 | 5,897 | 2,621 | 2,300 | 16,348 | 5,933 | 6,870 | 3,588 | 16,391 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 11.7 | % | 13.1 | % | 8.0 | % | 6.8 | % | 10.3 | % | 12.6 | % | 15.3 | % | 10.4 | % | 12.9 | % | |||||||||||||||||||
Acoustics | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 57,227 | $ | 56,086 | $ | 51,457 | $ | 41,812 | $ | 206,582 | $ | 43,849 | $ | 43,418 | $ | 38,266 | $ | 125,533 | |||||||||||||||||||
Adjusted EBITDA | 6,721 | 7,983 | 6,640 | 5,997 | 27,341 | 5,778 | 6,044 | 4,465 | 16,287 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 11.7 | % | 14.2 | % | 12.9 | % | 14.3 | % | 13.2 | % | 13.2 | % | 13.9 | % | 11.7 | % | 13.0 | % | |||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (3,477 | ) | $ | (3,075 | ) | $ | (3,073 | ) | $ | (3,861 | ) | $ | (13,486 | ) | $ | (2,867 | ) | $ | (3,550 | ) | $ | (2,965 | ) | $ | (9,382 | ) | ||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
Net sales | $ | 175,193 | $ | 172,477 | $ | 155,430 | $ | 145,516 | $ | 648,616 | $ | 167,254 | $ | 168,424 | $ | 145,295 | $ | 480,973 | |||||||||||||||||||
Adjusted EBITDA | 18,561 | 20,580 | 16,136 | 12,475 | 67,752 | 19,713 | 21,364 | 15,230 | 56,307 | ||||||||||||||||||||||||||||
Adjusted EBITDA % net sales | 10.6 | % | 11.9 | % | 10.4 | % | 8.6 | % | 10.4 | % | 11.8 | % | 12.7 | % | 10.5 | % | 11.7 | % |
3Q 2018 | |||||||||
Finishing | Components | Seating | Acoustics | Jason Consolidated | |||||
Net sales | |||||||||
Organic sales growth | 1.2% | (9.4)% | 5.0% | (14.1)% | (4.3)% | ||||
Currency impact | (1.3)% | —% | —% | —% | (0.5)% | ||||
Divestiture & Non-Core Exit | —% | 16.7% | —% | (11.5)% | (1.7)% | ||||
Growth as reported | (0.1)% | 7.3% | 5.0% | (25.6)% | (6.5)% | ||||
YTD 2018 | |||||||||
Finishing | Components | Seating | Acoustics | Jason Consolidated | |||||
Net sales | |||||||||
Organic sales growth | 3.3% | (0.5)% | 0.6% | (10.0)% | (2.3)% | ||||
Currency impact | 3.9% | —% | 0.5% | —% | 1.4% | ||||
Divestiture & Non-Core Exit | (0.4)% | 9.4% | —% | (13.8)% | (3.5)% | ||||
Growth as reported | 6.8% | 8.9% | 1.1% | (23.8)% | (4.4)% |
3Q | YTD | ||||||||||||||
2017 | 2018 | 2017 | 2018 | ||||||||||||
Operating Cash Flow | $ | 3,648 | $ | 8,875 | $ | 24,480 | $ | 20,015 | |||||||
Less: Capital Expenditures | (3,202 | ) | (2,697 | ) | (10,363 | ) | (9,636 | ) | |||||||
Free Cash Flow | $ | 446 | $ | 6,178 | $ | 14,117 | $ | 10,379 |
September 28, 2018 | |||
Current and long-term debt | $ | 395,845 | |
Add: Debt discounts and deferred financing costs | 7,324 | ||
Less: Cash and cash equivalents | (51,370 | ) | |
Net Debt | $ | 351,799 | |
Adjusted EBITDA | |||
4Q17 | $ | 12,475 | |
1Q18 | 19,713 | ||
2Q18 | 21,364 | ||
3Q18 | 15,230 | ||
TTM Adjusted EBITDA | 68,782 | ||
Net Debt to Adjusted EBITDA* | 5.1x |
2017 | 2018 | ||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | YTD | ||||||||||||||||||||||||||||
Net (loss) income | $ | (493 | ) | $ | (4,737 | ) | $ | (1,601 | ) | $ | 2,358 | $ | (4,473 | ) | $ | (819 | ) | $ | (587 | ) | $ | (5,512 | ) | $ | (6,918 | ) | |||||||||||
Interest expense | 8,366 | 8,395 | 8,203 | 8,125 | 33,089 | 8,027 | 8,403 | 8,348 | 24,778 | ||||||||||||||||||||||||||||
Tax (benefit) provision | (15 | ) | 179 | (1,602 | ) | (8,946 | ) | (10,384 | ) | 275 | (238 | ) | 552 | 589 | |||||||||||||||||||||||
Depreciation and amortization | 10,003 | 9,487 | 9,749 | 9,695 | 38,934 | 10,807 | 11,046 | 9,804 | 31,657 | ||||||||||||||||||||||||||||
EBITDA | 17,861 | 13,324 | 14,749 | 11,232 | 57,166 | 18,290 | 18,624 | 13,192 | 50,106 | ||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||
Restructuring(1) | 681 | 543 | 1,772 | 1,270 | 4,266 | 602 | 1,464 | 1,185 | 3,251 | ||||||||||||||||||||||||||||
Integration and other restructuring costs(2) | — | — | — | (569 | ) | (569 | ) | 356 | 712 | — | 1,068 | ||||||||||||||||||||||||||
Share-based compensation(3) | 349 | 324 | 231 | 215 | 1,119 | 231 | 553 | 944 | 1,728 | ||||||||||||||||||||||||||||
(Gain) loss on disposals of property, plant and equipment—net(4) | (330 | ) | 65 | (639 | ) | 145 | (759 | ) | 234 | 11 | (91 | ) | 154 | ||||||||||||||||||||||||
(Gain) loss on extinguishment of debt(5) | — | (1,564 | ) | (819 | ) | 182 | (2,201 | ) | — | — | — | — | |||||||||||||||||||||||||
Loss on divestiture(6) | — | 7,888 | 842 | — | 8,730 | — | — | — | — | ||||||||||||||||||||||||||||
Total adjustments | 700 | 7,256 | 1,387 | 1,243 | 10,586 | 1,423 | 2,740 | 2,038 | 6,201 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 18,561 | $ | 20,580 | $ | 16,136 | $ | 12,475 | $ | 67,752 | $ | 19,713 | $ | 21,364 | $ | 15,230 | $ | 56,307 |
(1) | 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. |
(2) | During 2018, integration and other restructuring costs includes $1.5 million of net costs and recoveries associated with a force majeure incident at a supplier in the seating segment that resulted in incremental costs to maintain production and are expected to be recovered through insurance pending finalization of claims in future periods. The integration and other restructuring costs were partially offset by $0.4 million of legal settlement income related to proceeds from a supplier claim in the seating segment associated with periods prior to the Company’s go public business combination in 2014. During 2017, integration and other restructuring costs includes a $0.6 million reversal of a liability recorded in acquisition accounting for the go public business combination. |
(3) | Represents non-cash share based compensation expense for awards under the Company’s 2014 Omnibus Incentive Plan. |
(4) | (Gain) loss on disposals of property, plant and equipment for the first quarter of 2018 includes a loss of $0.2 million from the disposition of equipment in connection with the consolidation of the component segment’s Libertyville, Illinois facilities, for the third quarter of 2017 includes a gain of $0.5 million on the sale of a building related to the closure of the finishing segment’s Richmond, Virginia facility and 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. |
(5) | Represents a (gain) loss on extinguishment of Second Lien Term Loan debt in both the second and third quarters of 2017 and a $0.2 million prepayment fee to retire foreign debt in the fourth quarter of 2017. |
(6) | 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. |
2017 | 2018 | ||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | YTD | ||||||||||||||||||||||||||||
GAAP Net (loss) income | $ | (493 | ) | $ | (4,737 | ) | $ | (1,601 | ) | $ | 2,358 | $ | (4,473 | ) | $ | (819 | ) | $ | (587 | ) | $ | (5,512 | ) | $ | (6,918 | ) | |||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||
Restructuring | 681 | 543 | 1,772 | 1,270 | 4,266 | 602 | 1,464 | 1,185 | 3,251 | ||||||||||||||||||||||||||||
Integration and other restructuring costs | — | — | — | (569 | ) | (569 | ) | 356 | 712 | — | 1,068 | ||||||||||||||||||||||||||
Share based compensation | 349 | 324 | 231 | 215 | 1,119 | 231 | 553 | 944 | 1,728 | ||||||||||||||||||||||||||||
(Gain) loss on disposal of property, plant and equipment - net | (330 | ) | 65 | (639 | ) | 145 | (759 | ) | 234 | 11 | (91 | ) | 154 | ||||||||||||||||||||||||
(Gain) loss on extinguishment of debt | — | (1,564 | ) | (819 | ) | 182 | (2,201 | ) | — | — | — | — | |||||||||||||||||||||||||
Loss on divestitures | — | 7,888 | 842 | — | 8,730 | — | — | — | — | ||||||||||||||||||||||||||||
Tax effect on adjustments(1) | (55 | ) | (582 | ) | (214 | ) | (122 | ) | (973 | ) | (314 | ) | (697 | ) | (445 | ) | (1,456 | ) | |||||||||||||||||||
Tax (benefit) provision(2) | — | — | — | (3,787 | ) | (3,787 | ) | 410 | — | 170 | 580 | ||||||||||||||||||||||||||
Adjusted net income (loss) | $ | 152 | $ | 1,937 | $ | (428 | ) | $ | (308 | ) | $ | 1,353 | $ | 700 | $ | 1,456 | $ | (3,749 | ) | $ | (1,593 | ) | |||||||||||||||
Effective tax rate on adjustments(1) | 16 | % | 8 | % | 16 | % | 10 | % | 9 | % | 22 | % | 25 | % | 22 | % | 23 | % | |||||||||||||||||||
Diluted weighted average number of common shares outstanding (GAAP): | 25,784 | 26,042 | 26,241 | 26,255 | 26,082 | 27,329 | 27,677 | 27,683 | 27,565 | ||||||||||||||||||||||||||||
Plus: effect of dilutive share-based compensation (non-GAAP)(3) | — | — | — | 530 | — | — | — | — | — | ||||||||||||||||||||||||||||
Plus: effect of convertible preferred stock and rollover shares (non-GAAP)(3) | 3,967 | 3,815 | 3,889 | 3,982 | 3,917 | 3,309 | 3,147 | 3,212 | 3,222 | ||||||||||||||||||||||||||||
Diluted weighted average number of common shares outstanding (non-GAAP)(3) | 29,751 | 29,857 | 30,130 | 30,767 | 29,999 | 30,638 | 30,824 | 30,895 | 30,787 | ||||||||||||||||||||||||||||
Adjusted earnings (loss) per share | $ | 0.01 | $ | 0.06 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.05 | $ | 0.02 | $ | 0.05 | $ | (0.12 | ) | $ | (0.05 | ) | |||||||||||||||
GAAP Net (loss) income per share available to common shareholders of Jason Industries | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | 0.05 | $ | (0.32 | ) | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.23 | ) | $ | (0.37 | ) | |||||||||||
Adjustments net of income taxes: | |||||||||||||||||||||||||||||||||||||
Restructuring | 0.02 | 0.01 | 0.04 | 0.04 | 0.13 | 0.02 | 0.04 | 0.03 | 0.09 | ||||||||||||||||||||||||||||
Integration and other restructuring costs | — | — | — | (0.02 | ) | (0.02 | ) | 0.01 | 0.02 | — | 0.03 | ||||||||||||||||||||||||||
Share based compensation | 0.02 | 0.02 | 0.01 | 0.01 | 0.06 | 0.01 | 0.02 | 0.03 | 0.06 | ||||||||||||||||||||||||||||
(Gain) loss on disposal of property, plant and equipment - net | (0.01 | ) | — | (0.01 | ) | — | (0.02 | ) | 0.01 | — | — | 0.01 | |||||||||||||||||||||||||
(Gain) loss on extinguishment of debt | — | (0.04 | ) | (0.02 | ) | 0.01 | (0.06 | ) | — | — | — | — | |||||||||||||||||||||||||
Loss on divestitures | — | 0.26 | 0.03 | — | 0.29 | — | — | — | — | ||||||||||||||||||||||||||||
Tax (benefit) provision(2) | — | — | — | (0.12 | ) | (0.13 | ) | 0.02 | — | 0.01 | 0.02 | ||||||||||||||||||||||||||
Redemption premium on preferred stock conversion | — | — | — | — | — | 0.04 | — | — | 0.04 | ||||||||||||||||||||||||||||
GAAP to non-GAAP impact per share(3) | 0.03 | 0.03 | 0.04 | 0.02 | 0.12 | — | 0.02 | 0.04 | 0.07 | ||||||||||||||||||||||||||||
Adjusted earnings (loss) per share | $ | 0.01 | $ | 0.06 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.05 | $ | 0.02 | $ | 0.05 | $ | (0.12 | ) | $ | (0.05 | ) |
(1) | The effective tax rate on adjustments is impacted by nondeductible foreign transaction and restructuring costs, 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) | Represents discrete tax items associated with The Tax Cuts and Jobs Act enacted in December 2017. |
(3) | Adjusted earnings (loss) 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, the conversion of 12,136 shares of preferred stock at a conversion rate of 115 preferred shares to common shares and the conversion of all remaining preferred stock at the voluntary conversion ratio. |
&UP1SIC>6%N
M/2(P+C P,# P,"(@>&UP1SIM86=E;G1A/2(P+C P,# P,"(@>&UP1SIY96QL
M;W<](C N,# P,# P(B!X;7!'.F)L86-K/2(V.2XY.3DW,#(B+SX-"@D)"0D)
M"0D)"3QR9&8Z;&D@>&UP1SIS=V%T8VA.86UE/2)#/3 @33TP(%D],"!+/38P
M(B!X;7!'.FUO9&4](D--64LB('AM<$