Delaware | 001-37480 | 46-1846791 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
UNIQUE FABRICATING, INC. | ||
Dated: May 10, 2018 | By: | /s/ Thomas Tekiele |
Name: Thomas Tekiele | ||
Title: Chief Financial Officer (Principal Financial and Accounting Officer) |
Exhibit No. | Description |
• | Revenue of $47.3 million in the first quarter of 2018, compared to $47.9 million in the first quarter of 2017 |
• | Net income of $1.5 million, or $0.15 per basic diluted share in the first quarter of 2018, compared to $2.0 million, or $0.21 per basic and diluted share in the first quarter of 2017 |
• | Adjusted EBITDA of $4.9 million in the first quarter of 2018, including $1.7 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards, compared to $5.4 million in the first quarter of 2017, including $1.6 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards(1) |
• | Adjusted diluted earnings per share of $0.21 in the first quarter of 2018 versus $0.23 in the first quarter of 2017(1) |
• | Declared a quarterly cash dividend of $0.15 per share payable on June 7, 2018 for stockholders of record as of May 31, 2018 |
Revenue | $181 million to $185 million |
Adjusted diluted earnings per share | $0.82 to $0.86 |
Adjusted EBITDA | $20.0 million to $21.0 million |
Thirteen Weeks Ended April 1, 2018 | Thirteen Weeks Ended April 2, 2017 | ||||||
Net sales | $ | 47,304,153 | $ | 47,857,096 | |||
Cost of sales | 36,224,006 | 36,749,935 | |||||
Gross profit | 11,080,147 | 11,107,161 | |||||
Selling, general, and administrative expenses | 7,966,982 | 7,591,704 | |||||
Restructuring expenses | 442,267 | — | |||||
Operating income | 2,670,898 | 3,515,457 | |||||
Non-operating (expense) income | |||||||
Other (expense) income, net | (36,034 | ) | 14,216 | ||||
Interest expense | (735,759 | ) | (615,696 | ) | |||
Total non-operating expense, net | (771,793 | ) | (601,480 | ) | |||
Income – before income taxes | 1,899,105 | 2,913,977 | |||||
Income tax expense | 387,216 | 867,140 | |||||
Net income | $ | 1,511,889 | $ | 2,046,837 | |||
Net income per share | |||||||
Basic | $ | 0.15 | $ | 0.21 | |||
Diluted | $ | 0.15 | $ | 0.21 | |||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 |
April 1, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 1,179,566 | $ | 1,430,937 | |||
Accounts receivable – net | 31,266,807 | 27,203,296 | |||||
Inventory – net | 16,902,736 | 16,330,084 | |||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses and other | 4,506,828 | 3,962,012 | |||||
Refundable taxes | 537,180 | 646,253 | |||||
Asset held for sale | 733,059 | — | |||||
Total current assets | 55,126,176 | 49,572,582 | |||||
Property, plant, and equipment – net | 23,324,186 | 22,975,401 | |||||
Goodwill | 28,871,179 | 28,871,179 | |||||
Intangible assets– net | 18,605,369 | 19,635,782 | |||||
Other assets | |||||||
Investments – at cost | 1,054,120 | 1,054,120 | |||||
Deposits and other assets | 397,391 | 353,719 | |||||
Deferred tax asset | 440,567 | 342,552 | |||||
Total assets | $ | 127,818,988 | $ | 122,805,335 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 14,784,964 | $ | 11,708,175 | |||
Current maturities of long-term debt | 3,999,998 | 3,799,998 | |||||
Income taxes payable | 423,875 | 348,910 | |||||
Accrued compensation | 2,667,307 | 2,840,559 | |||||
Other accrued liabilities | 1,093,406 | 1,027,489 | |||||
Other liabilities | — | — | |||||
Total current liabilities | 22,969,550 | 19,725,131 | |||||
Long-term debt – net of current portion | 26,306,988 | 27,288,846 | |||||
Line of credit-net | 25,067,517 | 22,476,525 | |||||
Deferred tax liability | 2,482,705 | 2,432,754 | |||||
Total liabilities | 76,826,760 | 71,923,256 | |||||
Stockholders’ Equity | |||||||
Common stock, $0.001 par value – 15,000,000 shares authorized and 9,766,563 and 9,757,563 issued and outstanding at April 1, 2018 and December 31, 2017, respectively | 9,767 | 9,758 | |||||
Additional paid-in-capital | 45,775,819 | 45,712,568 | |||||
Retained earnings | 5,206,642 | 5,159,753 | |||||
Total stockholders’ equity | 50,992,228 | 50,882,079 | |||||
Total liabilities and stockholders’ equity | $ | 127,818,988 | $ | 122,805,335 |
Thirteen Weeks Ended April 1, 2018 | Thirteen Weeks Ended April 2, 2017 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 1,511,889 | $ | 2,046,837 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 1,634,374 | 1,528,843 | |||||
Amortization of debt issuance costs | 35,536 | 33,019 | |||||
Loss (gain) on sale of assets | 14,680 | (625 | ) | ||||
Bad debt adjustment | 61,800 | 32,931 | |||||
Gain on derivative instrument | (35,596 | ) | (195,016 | ) | |||
Stock option expense | 33,260 | 37,508 | |||||
Deferred income taxes | (48,064 | ) | 476,260 | ||||
Changes in operating assets and liabilities that provided (used) cash: | |||||||
Accounts receivable | (4,125,311 | ) | (4,609,433 | ) | |||
Inventory | (572,652 | ) | (410,000 | ) | |||
Prepaid expenses and other assets | (443,820 | ) | (1,362,955 | ) | |||
Accounts payable | 3,476,276 | 1,374,548 | |||||
Accrued and other liabilities | (32,373 | ) | (736,380 | ) | |||
Net cash provided by (used in) operating activities | 1,509,999 | (1,784,463 | ) | ||||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (1,726,375 | ) | (1,708,386 | ) | |||
Proceeds from sale of property and equipment | 8,500 | 2,500 | |||||
Net cash used in investing activities | (1,717,875 | ) | (1,705,886 | ) | |||
Cash flows from financing activities | |||||||
Net change in bank overdraft | (399,487 | ) | (553,437 | ) | |||
Payments on term loans | (800,000 | ) | (603,272 | ) | |||
Proceeds from revolving credit facilities, net | 2,590,992 | 6,080,336 | |||||
Proceeds from exercise of stock options and warrants | 30,000 | 33,670 | |||||
Distribution of cash dividends | (1,465,000 | ) | (1,459,773 | ) | |||
Net cash (used in) provided by financing activities | (43,495 | ) | 3,497,524 | ||||
Net increase (decrease) in cash and cash equivalents | (251,371 | ) | 7,175 | ||||
Cash and cash equivalents – beginning of period | 1,430,937 | 705,535 | |||||
Cash and cash equivalents – end of period | $ | 1,179,566 | $ | 712,710 | |||
Supplemental disclosure of cash flow Information – cash paid for | |||||||
Interest | $ | 692,826 | $ | 575,280 | |||
Income taxes | $ | 123,246 | $ | 493,065 |
Thirteen Weeks Ended April 1, 2018 | Thirteen Weeks Ended April 2, 2017 | ||||||
GAAP Net income | $ | 1,511,889 | $ | 2,046,837 | |||
Plus: Interest expense, net | 735,759 | 615,696 | |||||
Plus: Income tax expense | 387,216 | 867,140 | |||||
Plus: Depreciation and amortization | 1,634,374 | 1,528,843 | |||||
Plus: Non-cash stock award | 33,260 | 37,508 | |||||
Plus: Non-recurring integration expenses | — | 2,829 | |||||
Plus: Transaction fees | — | 23,235 | |||||
Plus: Restructuring expenses | 442,267 | — | |||||
Plus: One-time consulting and licensing ERP system implementation costs | 180,701 | 238,124 | |||||
Adjusted EBITDA | $ | 4,925,466 | $ | 5,360,212 |
Thirteen Weeks Ended April 1, 2018 | Thirteen Weeks Ended April 2, 2017 | ||||||
GAAP Net income | $ | 1,511,889 | $ | 2,046,837 | |||
Plus: Non-cash stock award | 33,260 | 37,508 | |||||
Plus: Non-recurring integration expenses | — | 2,829 | |||||
Plus: Transaction fees | — | 23,235 | |||||
Plus: Restructuring expenses | 442,267 | — | |||||
Plus: One-time consulting and licensing ERP system implementation costs | 180,701 | 238,124 | |||||
Less: Tax impact | (133,801 | ) | (18,918 | ) | |||
Adjusted Net income | $ | 2,034,316 | $ | 2,329,615 | |||
Diluted weighted average shares outstanding | 9,911,689 | 9,916,687 | |||||
Net income per share | |||||||
Diluted - GAAP | $ | 0.15 | $ | 0.21 | |||
Diluted - Adjusted | $ | 0.21 | $ | 0.23 |
Thirteen Weeks Ended April 1, 2018 | Thirteen Weeks Ended April 2, 2017 | ||||||
Non-cash purchase accounting impacts | |||||||
Customer relationships amortization | $ | 836,793 | $ | 836,071 | |||
Trade name amortization | 72,926 | 72,926 | |||||
Non-compete amortization | 44,162 | 44,162 | |||||
Unpatented technology | 76,529 | 76,529 | |||||
Less: Tax impact | (201,291 | ) | (309,979 | ) | |||
Net income effect | $ | 829,119 | $ | 719,709 | |||
Net income per share impact | |||||||
GAAP - Basic | $ | 0.08 | $ | 0.07 | |||
GAAP - Diluted | $ | 0.08 | $ | 0.07 |
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