Unique Fabricating (UFAB) Tops Q2 EPS by 2c, Revenues Miss; Offers FY18 EPS Outlook Above Consensus

Unique Fabricating (NYSE: UFAB) reported Q2 EPS of $0.23, $0.02 better than the analyst estimate of $0.21. Revenue for the quarter came in at $45.7 million versus the consensus estimate of $47.27 million.

• Revenue of $45.7 million in the second quarter of 2018, up 2.8% compared to $44.5 million in the second quarter of 2017
• Net income of $1.8 million, or $0.18 per basic and diluted share in the second quarter of 2018, compared to $1.7 million, or $0.17 per basic and diluted share in the second quarter of 2017
• Adjusted EBITDA of $5.6 million in the second quarter of 2018, including $1.7 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards, compared to $5.0 million in the second 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 $0.23 in the second quarter of 2018 versus $0.19 in the second quarter of 2017(1)
• Declared a quarterly cash dividend of $0.15 per share payable on September 7, 2018 for stockholders of record as of August 31, 2018

"Our second quarter financial results reflect solid execution and operational performance, demonstrating that we are on track to achieve our full-year guidance, assuming current full year industry production forecasts are met," commented John Weinhardt, Chief Executive Officer. "Our sales for the second quarter were adversely affected by a fire at a key metal component supplier that, in turn, caused substantial production disruptions to Ford\'s light truck production, as well as that of General Motors, FCA, Mercedes and BMW. The affected vehicle assembly plants are now reportedly fully operational, and they are expected to make up the lost volume during the second half of the year. In addition, production schedules have been recalibrated following adjustments made by auto manufacturers to reduce inventory levels in prior quarters, and our new program launches are progressing on budget and according to schedule. We continue to carefully observe the reaction to new tariffs and stand ready to prudently adjust our operations accordingly should there be any fluctuations in consumer demand. We have continued to focus our attention and resources on continual process improvement, the alignment of our production assets with demand and appropriately managing our cost structure. As a result, we are delivering on our commitments to both our customers and our shareholders."

GUIDANCE:

Unique Fabricating sees FY2018 EPS of $0.80-$0.86, versus the consensus of $0.78. Unique Fabricating sees FY2018 revenue of $181-185 million, versus the consensus of $182.62 million.

For earnings history and earnings-related data on Unique Fabricating (UFAB) click here.

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