Jason Industries (JASN) Tops Q2 EPS by 4c, Revenues Beat; Offers FY18 Revenue Outlook

Jason Industries (NASDAQ: JASN) reported Q2 EPS of $0.06, $0.04 better than the analyst estimate of $0.02. Revenue for the quarter came in at $168.4 million versus the consensus estimate of $161.4 million.

Key financial results for the second quarter 2018 versus the year ago period include:

• Net sales of $168.4 million decreased 2.3 percent and included a negative 3.5 percent impact from the divestiture and planned exit of non-core businesses and a positive 1.5 percent from foreign currency translation.
• Operating income of $6.8 million, or 4.0 percent of net sales, decreased from 5.7 percent of net sales on higher selling and administrative expenses and restructuring costs.
• Net loss of $0.6 million, or $0.05 diluted loss per share, decreased $4.2 million and $0.17 per share.
• Free cash flow was $4.0 million, a decrease of $10.2 million, due to timing of working capital requirements and higher cash restructuring.

On an adjusted basis, second quarter 2018 results versus the year ago period include:

• Adjusted EBITDA of $21.4 million, or 12.7 percent of net sales, increased $0.8 million and improved from 11.9 percent of net sales, driven by margin expansion from pricing and operational efficiencies.
• Adjusted Net Income of $1.5 million, or $0.05 Adjusted Earnings Per Share, decreased $0.01 per share.

“Finishing organic growth of 7.0 percent exceeded our expectations and demonstrates the traction we are gaining through our targeted commercial activities,” said Brian Kobylinski, chief executive officer of Jason. “We delivered 130 basis points of gross margin improvement through operational efficiency initiatives, marking our sixth consecutive quarter of improvement. Our efforts resulted in a further reduction in net leverage which now sits at 5.2 times.”

GUIDANCE:

Jason Industries sees FY2018 revenue of $600-615 million, versus the consensus of $612.2 million.

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

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