Delaware | 001-37480 | 46-1846791 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
UNIQUE FABRICATING, INC. | ||
Dated: November 17, 2015 | By: | /s/ Thomas Tekiele |
Name: Thomas Tekiele | ||
Title: Chief Financial Officer (Principal Financial and Accounting Officer) |
Exhibit No. | Description |
99.1 | Press release dated November 17, 2015 |
• | Revenue of $39.6 million versus $31.0 million in the third quarter of 2014, an increase of 27.7% year-over-year |
• | Adjusted EBITDA of $4.3 million, including $1.2 million for non-cash charges which includes depreciation and amortization and non-cash stock awards, versus $3.1 million in the third quarter of 2014 |
• | Adjusted diluted earnings per share of $0.18 versus $0.13 in the third quarter of 2014 |
• | Declared a quarterly cash dividend of $0.15 per share payable on December 7, 2015 for stockholders of record as of November 30, 2015 |
• | Closed accretive and synergistic acquisition of Great Lakes Foam Technologies, Inc. to broaden solutions offering and expand reach into new markets |
• | Subsequent to quarter-end, awarded a new program order by a major Japanese OEM for new TwinShape™ foam duct to be installed in select 2017 model SUVs |
• | Subsequent to quarter-end, announced plans to close and consolidate its Murfreesboro, Tennessee manufacturing facility to enhance operational efficiency |
• | Full year 2015 revenue of $138 million to $142 million |
• | Full year 2015 adjusted diluted earnings per share(1) of $0.73 to $0.77 |
Fourteen Weeks Ended October 4, 2015 | Thirteen Weeks Ended September 28, 2014 | Thirty-Nine Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended September 28, 2014 | ||||||||||||
Net Sales | $ | 39,579,502 | $ | 31,028,026 | $ | 107,682,183 | $ | 93,151,183 | |||||||
Cost of Sales | 30,280,834 | 23,803,346 | 82,031,708 | 70,247,457 | |||||||||||
Gross Profit | 9,298,668 | 7,225,680 | 25,650,475 | 22,903,726 | |||||||||||
Selling, General, and Administrative Expenses | 6,934,785 | 5,053,088 | 17,267,099 | 15,754,868 | |||||||||||
Operating Income | 2,363,883 | 2,172,592 | 8,383,376 | 7,148,858 | |||||||||||
Non-operating Income (Expense) | |||||||||||||||
Investment income | — | 6 | 230 | 22 | |||||||||||
Other income | 4,468 | 16,962 | 18,789 | 44,775 | |||||||||||
Interest expense | (724,414 | ) | (874,227 | ) | (2,437,103 | ) | (2,761,845 | ) | |||||||
Total non-operating expense | (719,946 | ) | (857,259 | ) | (2,418,084 | ) | (2,717,048 | ) | |||||||
Income – Before income taxes | 1,643,937 | 1,314,333 | 5,965,292 | 4,431,810 | |||||||||||
Income Tax Expense | 504,846 | 467,664 | 1,941,564 | 1,423,873 | |||||||||||
Net Income | $ | 1,139,091 | $ | 846,669 | $ | 4,023,728 | $ | 3,007,937 | |||||||
Net Income per share | |||||||||||||||
Basic | $ | 0.12 | $ | 0.13 | $ | 0.52 | $ | 0.45 | |||||||
Diluted | $ | 0.12 | $ | 0.13 | $ | 0.51 | $ | 0.44 |
(Unaudited) | |||||||
October 4, 2015 | January 4, 2015 | ||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 717,721 | $ | 756,044 | |||
Accounts receivable – net | 23,941,900 | 18,747,468 | |||||
Inventory – net | 14,963,675 | 10,488,051 | |||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses and other | 2,005,023 | 1,613,327 | |||||
Deferred tax asset | 996,188 | 1,288,704 | |||||
Total current assets | 42,624,507 | 32,893,594 | |||||
Property, Plant, and Equipment – Net | 20,646,791 | 17,920,073 | |||||
Goodwill | 19,213,958 | 15,183,417 | |||||
Intangible Assets | 20,881,353 | 16,748,466 | |||||
Other assets | |||||||
Investments – at cost | 1,054,120 | 1,054,120 | |||||
Deposits and other assets | 116,318 | 61,094 | |||||
Debt issuance costs | 216,559 | 289,942 | |||||
Total assets | $ | 104,753,606 | $ | 84,150,706 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities | |||||||
Accounts payable | 13,662,037 | 10,177,820 | |||||
Current maturities of long-term debt | 2,393,830 | 2,018,133 | |||||
Income taxes payable | 490,704 | 90,169 | |||||
Accrued compensation | 2,462,876 | 2,791,260 | |||||
Other accrued liabilities | 1,289,624 | 1,498,094 | |||||
Total current liabilities | 20,299,071 | 16,575,476 | |||||
Long-term debt – net of current portion | 14,508,613 | 29,000,612 | |||||
Line of credit | 15,668,213 | 8,952,865 | |||||
Other long-term liabilities | |||||||
Deferred tax liability | 5,775,228 | 6,497,330 | |||||
Other liabilities | 88,032 | 86,511 | |||||
Total liabilities | 56,339,157 | 61,112,794 | |||||
Redeemable Common Stock – 0 and 2,415,399 million shares issued and outstanding with a redemption value of $0 and $11,362,481 million at October 4, 2015 and January 4, 2015, respectively | — | 6,445,977 | |||||
Stockholders’ Equity | |||||||
Common stock, $0.001 par value – 15,000,000 million shares authorized and 9,576,360 and 4,324,599 million issued and outstanding at October 4, 2015 and January 4, 2015, respectively | 9,577 | 4,325 | |||||
Additional paid-in-capital | 44,319,959 | 13,723,456 | |||||
Retained earnings | 4,084,913 | 2,864,154 | |||||
Total stockholders’ equity | 48,414,449 | 16,591,935 | |||||
Total liabilities and stockholders’ equity | $ | 104,753,606 | $ | 84,150,706 |
Thirty-Nine Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended September 28, 2014 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 4,023,728 | $ | 3,007,937 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 2,762,624 | 2,600,654 | |||||
Amortization of debt issuance costs | 216,930 | 229,164 | |||||
Loss on sale of assets | 39,712 | 27,326 | |||||
Loss on extinguishment of debt | 386,552 | — | |||||
Bad debt expense, net of recoveries | 32,893 | 239,487 | |||||
Loss on derivative instrument | 1,520 | 66,768 | |||||
Stock option expense | 160,764 | 27,439 | |||||
Excess tax benefits from stock based compensation | (71,473 | ) | — | ||||
Deferred income taxes | (428,118 | ) | (847,047 | ) | |||
Changes in operating assets and liabilities that provided (used) cash: | |||||||
Accounts receivable | (4,226,320 | ) | (3,585,710 | ) | |||
Inventory | (3,359,815 | ) | (1,078,806 | ) | |||
Prepaid expenses and other assets | (444,421 | ) | 494,416 | ||||
Accounts payable | 2,333,067 | 2,824,232 | |||||
Accrued and other liabilities | 440,365 | 844,528 | |||||
Net cash provided by operating activities | 1,868,008 | 4,850,388 | |||||
Cash Flows from Investing Activities | |||||||
Purchases of property and equipment | (2,988,278 | ) | (1,616,652 | ) | |||
Proceeds from sale of property and equipment | 51,347 | 11,414 | |||||
Acquisition of Chardan Corporation | — | (2,316,911 | ) | ||||
Working capital adjustment from acquisition of PTI | — | 173,740 | |||||
Acquisition of Great Lakes Foam Technologies, Inc. | (11,819,991 | ) | — | ||||
Net cash used in investing activities | (14,756,922 | ) | (3,748,409 | ) | |||
Cash Flows from Financing Activities | |||||||
Net change in bank overdraft | 273,152 | 136,018 | |||||
Payments on debt and in-kind interest | (14,646,409 | ) | (1,018,208 | ) | |||
(Payments on) proceeds from revolving credit facilities | 6,715,347 | (164,371 | ) | ||||
Debt issuance costs | — | (13,400 | ) | ||||
Expenses of in process equity offering | — | (360,737 | ) | ||||
Post acquisition payments for Unique Fabricating | (755,018 | ) | (168,633 | ) | |||
Proceeds from the issuance of common stock pursuant to initial public offering | 25,673,750 | — | |||||
Payment of initial public offering costs | (3,439,836 | ) | — | ||||
Proceeds from exercise of stock options and warrants | 397,070 | — | |||||
Excess tax benefits from stock based compensation | 71,473 | — | |||||
Distribution of cash dividends | (1,438,938 | ) | — | ||||
Net cash provided by (used in) financing activities | 12,850,591 | (1,589,331 | ) | ||||
Net Decrease in Cash and Cash Equivalents | (38,323 | ) | (487,352 | ) | |||
Cash and Cash Equivalents – Beginning of period | 756,044 | 891,826 | |||||
Cash and Cash Equivalents – End of period | $ | 717,721 | $ | 404,474 | |||
Supplemental Disclosure of Cash Flow Information – Cash paid for |
Interest | $ | 2,260,430 | $ | 1,461,479 | |||
Income taxes | $ | 1,247,143 | $ | 1,025,947 | |||
Supplemental Disclosure of Cash Flow Information – Non cash investing and financing activities for | |||||||
Note payable incurred for Chardan acquisition | $ | — | $ | 500,000 | |||
Accretion on redeemable common stock | $ | 1,364,031 | $ | 848,223 | |||
Accounts payable on working capital for Great Lakes Foam Technologies, Inc. acquisition | $ | 127,401 | $ | — |
Fourteen Weeks Ended October 4, 2015 | Thirteen Weeks Ended September 28, 2014 | Thirty-Nine Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended September 28, 2014 | ||||||||||||
GAAP Net income | $ | 1,139,091 | $ | 846,669 | $ | 4,023,728 | $ | 3,007,937 | |||||||
Plus: Interest expense, net | 724,414 | 874,227 | 2,437,103 | 2,761,845 | |||||||||||
Plus: Income tax expense | 504,846 | 467,664 | 1,941,564 | 1,423,873 | |||||||||||
Plus: Depreciation and amortization | 1,023,083 | 868,366 | 2,762,624 | 2,600,654 | |||||||||||
Plus: Non-cash stock award | 148,455 | 6,401 | 160,764 | 27,439 | |||||||||||
Plus: Non-recurring integration expenses | 32,187 | 19,043 | 32,187 | 90,574 | |||||||||||
Plus: Non-recurring step-up of inventory basis to fair market value | 90,043 | 13,634 | 90,043 | 383,970 | |||||||||||
Plus: Non-recurring IPO costs | 230,000 | — | 230,000 | — | |||||||||||
Plus: Transaction fees | 415,849 | — | 415,849 | 236,537 | |||||||||||
Adjusted EBITDA | $ | 4,307,968 | $ | 3,096,004 | $ | 12,093,862 | $ | 10,532,829 |
Fourteen Weeks Ended October 4, 2015 | Thirteen Weeks Ended September 28, 2014 | Thirty-Nine Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended September 28, 2014 | ||||||||||||
GAAP Net income | $ | 1,139,091 | $ | 846,669 | $ | 4,023,728 | $ | 3,007,937 | |||||||
Plus: Non-cash stock award | 148,455 | 6,401 | 160,764 | 27,439 | |||||||||||
Plus: Non-recurring integration expenses | 32,187 | 19,043 | 32,187 | 90,574 | |||||||||||
Plus: Non-recurring step-up of inventory basis to fair market value | 90,043 | 13,634 | 90,043 | 383,970 | |||||||||||
Plus: Non-recurring IPO costs | 230,000 | — | 230,000 | — | |||||||||||
Plus: Transaction fees | 415,849 | — | 415,849 | 236,537 | |||||||||||
Less: Tax Impact | (281,464 | ) | (13,905 | ) | (302,317 | ) | (237,275 | ) | |||||||
Adjusted Net income | $ | 1,774,161 | $ | 871,842 | $ | 4,650,254 | $ | 3,509,182 | |||||||
Diluted Weighted Average Shares Outstanding | 9,662,118 | 6,767,043 | 7,959,948 | 6,767,043 | |||||||||||
Net income per share | |||||||||||||||
Diluted - GAAP | $ | 0.12 | $ | 0.13 | $ | 0.51 | $ | 0.44 | |||||||
Diluted - Adjusted | $ | 0.18 | $ | 0.13 | $ | 0.59 | $ | 0.52 |
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