Jason Industries (JASN) Misses Q2 EPS by 18c, Miss on Revenues

Jason Industries (NASDAQ: JASN) reported Q2 EPS of ($0.17), $0.18 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $172.5 million versus the consensus estimate of $176.2 million.

2017 Guidance:

“Our ability to identify, prioritize and complete projects is increasing and we are moving toward the next wave of operational improvements and growth initiatives. While our revenues are impacted by weaker market conditions, we expect to maintain our profitability and reaffirm our EBITDA guidance for ongoing operations. We have more to do, but are encouraged by this quarter’s margin enhancement, cash flow generation and improved liquidity.”

Jason’s net sales outlook is impacted by lower than expected North American automotive production in Acoustics. The Adjusted EBITDA impact of lower volumes is expected to be offset by improved operating efficiencies and lower overall SG&A spend. The impact of the third quarter Acoustics European divestiture is expected to reduce 2017 net sales by $10 million and Adjusted EBITDA by $1 million.

For the full year 2017, Jason now expects net sales in the range of $625 to $640 million, previously $650 to $670 million. Adjusted EBITDA is now expected to be $63 to $66 million, previously $64 to $67 million, adjusted for the Acoustics European divestiture.

Key financial results for the second quarter 2017 versus the year ago period include:

• Net sales of $172.5 million decreased 7.1 percent and included a negative 2.1 percent impact from the planned exit of non-core businesses in the margin expansion program and a negative 1.3 percent from foreign currency translation.
• Operating income of $9.9 million, or 5.7 percent of net sales, improved $2.8 million from 3.8 percent of net sales on improved operational results on lower sales and lower restructuring and corporate costs.
• Net loss of $3.5 million, or $0.17 diluted loss per share, increased $1.1 million or $0.04 per share, significantly impacted by a loss on the planned divestiture of the Acoustics European operations of $5.4 million net of tax, or $0.21 per share.
• Free cash flow was $14.2 million, an increase of $10.2 million, due to higher operating income, lower capital expenditures and a non-cash preferred dividend. Total liquidity was $101.1 million, an increase of $12.7 million.

GUIDANCE:

Jason Industries sees FY2017 revenue of $625-670 million.

For earnings history and earnings-related data on Jason Industries (JASN) click here.

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