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 15, 2016 | 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 15, 2016 |
• | Revenue of $44.8 million in the third quarter 2016, up 13.1% compared to the $39.6 million in the third quarter of 2015 |
• | Net income of $2.5 million, or $0.26 and $0.25 per basic and diluted share, respectively, in the third quarter of 2016, compared to $1.1 million, or $0.12 per basic and diluted share, in the third quarter of 2015 |
• | Adjusted EBITDA of $5.9 million in the third quarter of 2016, including $1.5 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards, versus $4.3 million in the third quarter of 2016, including $1.2 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards(1) |
• | Adjusted diluted earnings per share of $0.26 in the third quarter of 2016 versus $0.21 in the third quarter of 2015(1) |
• | Declared a quarterly cash dividend of $0.15 per share payable on December 7, 2016 for stockholders of record as of November 30, 2016 |
• | Awarded a new program order by a major German OEM for its TwinShape® foam duct to be installed in a popular mid-size SUV beginning in the first quarter of 2017 |
• | Full year 2016 revenue of $169 million to $172 million |
• | Full year 2016 adjusted diluted earnings per share of $0.88 to $0.91 |
• | Full year 2016 adjusted EBITDA of $19.5 million to $20.0 million |
Thirteen Weeks Ended October 2, 2016 | Fourteen Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended October 2, 2016 | Thirty-Nine Weeks Ended October 4, 2015 | ||||||||||||
Net sales | $ | 44,753,565 | $ | 39,579,502 | $ | 126,784,289 | $ | 107,682,183 | |||||||
Cost of sales | 33,503,217 | 30,280,834 | 96,842,757 | 82,031,708 | |||||||||||
Gross profit | 11,250,348 | 9,298,668 | 29,941,532 | 25,650,475 | |||||||||||
Selling, general, and administrative expenses | 6,949,034 | 6,934,785 | 20,668,621 | 17,267,099 | |||||||||||
Restructuring expenses | 35,054 | — | |||||||||||||
Operating income | 4,301,314 | 2,363,883 | 9,237,857 | 8,383,376 | |||||||||||
Non-operating income (expense) | |||||||||||||||
Investment income | — | — | — | 230 | |||||||||||
Other income (expense), net | (1,511 | ) | 4,468 | (25,203 | ) | 18,789 | |||||||||
Interest expense | (525,167 | ) | (724,414 | ) | (1,739,243 | ) | (2,437,103 | ) | |||||||
Total non-operating expense, net | (526,678 | ) | (719,946 | ) | (1,764,446 | ) | (2,418,084 | ) | |||||||
Income – before income taxes | 3,774,636 | 1,643,937 | 7,473,411 | 5,965,292 | |||||||||||
Income tax expense | 1,254,437 | 504,846 | 2,520,389 | 1,941,564 | |||||||||||
Net income | $ | 2,520,199 | $ | 1,139,091 | $ | 4,953,022 | $ | 4,023,728 | |||||||
Net income per share | |||||||||||||||
Basic | $ | 0.26 | $ | 0.12 | $ | 0.51 | $ | 0.52 | |||||||
Diluted | $ | 0.25 | $ | 0.12 | $ | 0.50 | $ | 0.51 | |||||||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.15 |
(Unaudited) | |||||||
October 2, 2016 | January 3, 2016 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 1,505,093 | $ | 726,898 | |||
Accounts receivable – net | 29,573,080 | 20,480,186 | |||||
Inventory – net | 16,801,522 | 14,585,611 | |||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses and other | 1,700,320 | 1,494,697 | |||||
Refundable taxes | 84,340 | 55,477 | |||||
Deferred tax asset | — | 1,063,721 | |||||
Assets held for sale | 2,033,327 | 2,033,327 | |||||
Total current assets | 51,697,682 | 40,439,917 | |||||
Property, plant, and equipment – net | 20,754,580 | 18,761,178 | |||||
Goodwill | 28,871,179 | 19,213,958 | |||||
Intangible assets– net | 24,789,481 | 20,139,213 | |||||
Other assets | |||||||
Investments – at cost | 1,054,120 | 1,054,120 | |||||
Deposits and other assets | 154,971 | 120,742 | |||||
Deferred tax asset | 193,625 | — | |||||
Total assets | $ | 127,515,638 | $ | 99,729,128 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 15,606,440 | $ | 11,430,662 | |||
Current maturities of long-term debt | 2,410,303 | 2,519,069 | |||||
Accrued compensation | 3,229,512 | 2,283,833 | |||||
Other accrued liabilities | 1,015,236 | 1,159,028 | |||||
Other liabilities | 135,307 | — | |||||
Total current liabilities | 22,396,798 | 17,392,592 | |||||
Long-term debt – net of current portion | 28,613,415 | 13,906,993 | |||||
Line of credit-net | 22,184,397 | 14,595,093 | |||||
Other long-term liabilities | |||||||
Deferred tax liability | 4,492,570 | 5,774,452 | |||||
Other liabilities | 94,970 | 46,874 | |||||
Total liabilities | 77,782,150 | 51,716,004 | |||||
Stockholders’ Equity | |||||||
Common stock, $0.001 par value – 15,000,000 shares authorized and 9,711,465 and 9,591,860 issued and outstanding at October 2, 2016 and January 3, 2016, respectively | 9,711 | 9,592 | |||||
Additional paid-in-capital | 45,473,517 | 44,352,188 | |||||
Retained earnings | 4,250,260 | 3,651,344 | |||||
Total stockholders’ equity | 49,733,488 | 48,013,124 | |||||
Total liabilities and stockholders’ equity | $ | 127,515,638 | $ | 99,729,128 |
Thirty-Nine Weeks Ended October 2, 2016 | Thirty-Nine Weeks Ended October 4, 2015 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 4,953,022 | $ | 4,023,728 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 3,996,472 | 2,762,624 | |||||
Amortization of debt issuance costs | 94,537 | 216,930 | |||||
Loss on sale of assets | 13,867 | 39,712 | |||||
Loss on extinguishment of debt | 60,202 | 386,552 | |||||
Bad debt expense | (168,830 | ) | 32,893 | ||||
Loss on derivative instrument | 183,402 | 1,520 | |||||
Stock option expense | 126,733 | 160,764 | |||||
Deferred income taxes | (509,408 | ) | (428,118 | ) | |||
Changes in operating assets and liabilities that provided (used) cash: | |||||||
Accounts receivable | (6,777,982 | ) | (4,226,320 | ) | |||
Inventory | 269,870 | (3,359,815 | ) | ||||
Prepaid expenses and other assets | (194,521 | ) | (444,421 | ) | |||
Accounts payable | 3,186,895 | 2,333,067 | |||||
Accrued and other liabilities | 209,308 | 440,365 | |||||
Net cash provided by operating activities | 5,443,567 | 1,939,481 | |||||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (2,443,251 | ) | (2,988,278 | ) | |||
Proceeds from sale of property and equipment | 12,181 | 51,347 | |||||
Acquisition of Intasco, net of cash acquired | (21,030,795 | ) | — | ||||
Acquisition of Great Lakes Foam Technologies, Inc. | — | (11,819,991 | ) | ||||
Working capital adjustment from acquisition of Intasco | 212,823 | — | |||||
Net cash used in investing activities | (23,249,042 | ) | (14,756,922 | ) | |||
Cash flows from financing activities | |||||||
Net change in bank overdraft | 846,220 | 273,152 | |||||
Proceeds from debt | 32,000,000 | — | |||||
Payments on debt | (1,839,212 | ) | (14,646,409 | ) | |||
Debt issuance costs | (514,441 | ) | — | ||||
Proceeds from revolving credit facilities | 7,716,220 | 6,715,347 | |||||
Pay-off of old senior credit facility term debt | (15,375,000 | ) | — | ||||
Post acquisition payments for Unique Fabricating | — | (755,018 | ) | ||||
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 | 103,989 | 397,070 | |||||
Distribution of cash dividends | (4,354,106 | ) | (1,438,938 | ) | |||
Net cash provided by financing activities | 18,583,670 | 12,779,118 | |||||
Net increase (decrease) in cash and cash equivalents | 778,195 | (38,323 | ) | ||||
Cash and cash equivalents – beginning of period | 726,898 | 756,044 | |||||
Cash and cash equivalents – end of period | $ | 1,505,093 | $ | 717,721 | |||
Supplemental disclosure of cash flow Information – cash paid for | |||||||
Interest | $ | 1,304,890 | $ | 2,260,430 | |||
Income taxes | $ | 2,519,010 | $ | 1,247,143 |
Supplemental disclosure of cash flow Information – non cash activities for: | |||||||
Common stock issued for purchase of Intasco USA, Inc. | $ | 890,726 | $ | — | |||
Accretion on redeemable common stock | $ | — | $ | 1,364,031 | |||
Accounts payable on working capital for Great Lakes Foam Technologies, Inc. acquisition | $ | — | $ | 127,401 |
Thirteen Weeks Ended October 2, 2016 | Fourteen Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended October 2, 2016 | Thirty-Nine Weeks Ended October 4, 2015 | ||||||||||||
GAAP Net income | $ | 2,520,199 | $ | 1,139,091 | $ | 4,953,022 | $ | 4,023,728 | |||||||
Plus: Interest expense, net | 525,167 | 724,414 | 1,739,243 | 2,437,103 | |||||||||||
Plus: Income tax expense | 1,254,437 | 504,846 | 2,520,389 | 1,941,564 | |||||||||||
Plus: Depreciation and amortization | 1,488,722 | 1,023,083 | 3,996,472 | 2,762,624 | |||||||||||
Plus: Non-cash stock award | 40,736 | 148,455 | 126,733 | 160,764 | |||||||||||
Plus: Non-recurring integration expenses | 35,744 | 32,187 | 104,913 | 32,187 | |||||||||||
Plus: Non-recurring step-up of inventory basis to fair market value | 39,352 | 90,043 | 318,518 | 90,043 | |||||||||||
Plus: Non-recurring IPO costs | — | 230,000 | — | 230,000 | |||||||||||
Plus: Transaction fees | 10,437 | 415,849 | 858,688 | 415,849 | |||||||||||
Plus: Restructuring expenses | — | — | 35,054 | — | |||||||||||
Adjusted EBITDA | $ | 5,914,794 | $ | 4,307,968 | $ | 14,653,032 | $ | 12,093,862 |
Thirteen Weeks Ended October 2, 2016 | Fourteen Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended October 2, 2016 | Thirty-Nine Weeks Ended October 4, 2015 | ||||||||||||
GAAP Net income | $ | 2,520,199 | $ | 1,139,091 | $ | 4,953,022 | $ | 4,023,728 | |||||||
Plus: Non-cash stock award | 40,736 | 148,455 | 126,733 | 160,764 | |||||||||||
Plus: Non-recurring integration expenses | 35,744 | 32,187 | 104,913 | 32,187 | |||||||||||
Plus: Non-recurring step-up of inventory basis to fair market value | 39,352 | 90,043 | 318,518 | 90,043 | |||||||||||
Plus: Non-recurring IPO costs | — | 230,000 | — | 230,000 | |||||||||||
Plus: Transaction fees | 10,437 | 415,849 | 858,688 | 415,849 | |||||||||||
Plus: Debt extinguishment costs | — | 386,552 | 60,202 | 386,552 | |||||||||||
Plus: Restructuring expenses | — | — | 35,054 | — | |||||||||||
Less: Tax impact | (39,531 | ) | (400,172 | ) | (437,502 | ) | (428,131 | ) | |||||||
Adjusted Net income | $ | 2,606,937 | $ | 2,042,005 | $ | 6,019,628 | $ | 4,910,992 | |||||||
Diluted weighted average shares outstanding | 9,918,956 | 9,662,118 | 9,885,949 | 7,959,948 | |||||||||||
Net income per share | |||||||||||||||
Diluted - GAAP | $ | 0.25 | $ | 0.12 | $ | 0.50 | $ | 0.51 | |||||||
Diluted - Adjusted | $ | 0.26 | $ | 0.21 | $ | 0.61 | $ | 0.62 |
Thirteen Weeks Ended October 2, 2016 | Fourteen Weeks Ended October 4, 2015 | Thirty-Nine Weeks Ended October 2, 2016 | Thirty-Nine Weeks Ended October 4, 2015 | ||||||||||||
Non-cash purchase accounting impacts | |||||||||||||||
Customer relationships amortization | $ | 837,520 | $ | 552,339 | $ | 2,208,223 | $ | 1,462,837 | |||||||
Trade name amortization | 72,926 | 59,945 | 196,204 | 166,991 | |||||||||||
Non-compete amortization | 44,162 | 65,554 | 132,486 | 152,285 | |||||||||||
Unpatented technology | 76,529 | — | 129,511 | — | |||||||||||
Less: Tax impact | (322,481 | ) | (208,008 | ) | (861,745 | ) | (576,833 | ) | |||||||
Net income effect | $ | 708,656 | $ | 469,830 | $ | 1,804,679 | $ | 1,205,280 | |||||||
Net income per share impact | |||||||||||||||
GAAP - Basic | $ | 0.07 | $ | 0.05 | $ | 0.19 | $ | 0.16 | |||||||
GAAP - Diluted | $ | 0.07 | $ | 0.05 | $ | 0.18 | $ | 0.15 |
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