AUBURN HILLS, Mich., March 8, 2018 /PRNewswire/ -- Unique Fabricating, Inc. ("Unique" or the "Company")(NYSE MKT: UFAB), which engineers and manufactures multi-material foam, rubber, and plastic components utilized in noise, vibration and harshness management and air/water sealing applications for the automotive and industrial appliance market, today announced its financial results for the fourth quarter and 12 months ended December 31, 2017.

Full Year 2017 Financial Highlights and Subsequent Events

• Revenue of $175.3 million in the full year 2017, up 2.8% compared to $170.5 million in the full year 2016
• Net income of $6.5 million, or $0.67 per basic and $0.66 per diluted share in the full year 2017, compared to $6.7 million, or $0.69 per basic and $0.68 per diluted share in the full year 2016
• Income tax of $1.1 million in the full year 2017, net of $0.7 million primarily related to recent corporate tax reform, compared to $3.3 million in the full year 2016
• Adjusted EBITDA of $18.0 million in the full year 2017, including $6.5 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards, compared to $19.0 million in the full year 2016, including $5.7 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards(1)
• Adjusted diluted earnings per share of $0.69 in the full year 2017 versus $0.78 in the full year 2016(1)
• Paid a quarterly cash dividend of $0.15 per share on March 7, 2018 for stockholders of record as of February 28, 2018

(1) For a reconciliation of GAAP to Non-GAAP results for Adjusted EBITDA and Adjusted diluted earnings per share please refer to the financial tables below.

We executed well in the fourth quarter navigating industry production disruptions and reductions that began in the second half of 2017 as a result of a shift in automotive consumers' buying preferences away from passenger cars," commented John Weinhardt, Chief Executive Officer. "Our ability to adjust and shift capacity to align with our customers' production activities was critical to our success and enabled us to sustain our gross margin, while quarterly revenues declined for the period on a year-over-year basis. Despite a 4.1% decline in automotive production for the full year, we are pleased that Unique's sales were up 2.8%, continuing our pattern of growth exceeding that of the automotive market. The fundamentals of our business remain strong, and we are encouraged by the slate of new program launches queued up for this spring and summer."

"As we kick-off 2018, we remain focused on the successful launch of multiple new product programs that are under contract and are key drivers of growth in 2018 and beyond, while continuing to pursue additional applications, customers and opportunities for our products that will further expand our book of business," Weinhardt added. "The strategic investments we are making in production to adjust capacity, streamline processes and improve quality are paying off and are positioning us for margin expansion and organic revenue growth in excess of the market in 2018."

"Our outlook for 2018 is based on current industry forecasts for total production and a mix of vehicles that is weighted towards light trucks and SUVs," continued Weinhardt. "We continue to monitor industry trends, however, based on our current book of business, we are confident in our ability to grow in excess of the market in 2018 and deliver programs that further elevate the comfort and driving experience of the vehicles to which we supply parts."

Fourth Quarter Financial Summary

Total revenue for the quarter ended December 31, 2017 declined to $41.7 million, down 4.6%, or $2.0 million from $43.7 million during the same period last year. The decrease was primarily driven by a decline in North American auto production of 5% compared to the same quarter last year, partially offset by increased market penetration.

Gross profit for the quarter ended December 31, 2017 was $9.3 million, or 22.3% of total revenue, compared to $9.6 million, or 22.0% of total revenues, for the corresponding period last year. The increase in gross profit as a percentage of sales was primarily a result of favorable product mix.

Income tax benefit for the quarter ended December 31, 2017 was $0.7 million, compared to tax expense of $0.7 million, for the corresponding period last year. The fourth quarter of 2017 tax benefit was primarily driven by corporate tax reform that was signed into law in December 2017, and which resulted in a benefit of $0.6 million related to the re-measurement of net deferred tax liabilities using the new U.S. statutory tax rate of 21%, offset somewhat by a one-time charge for the foreign transition tax.

Net income for the quarter ended December 31, 2017 was $2.1 million, or $0.21 per basic and diluted share, compared to $1.7 million, or $0.18 per basic and $0.17 per diluted share, in the fourth quarter of 2016. The increase in net income was primarily due to tax reform benefits described above.

Adjusted EBITDA for the quarter ended December 31, 2017 was $4.0 million compared to $4.3 million in the fourth quarter of 2016. The decrease is primarily a result of lower sales described above. Please refer to the financial tables below for a reconciliation of GAAP to Non-GAAP results.

Adjusted diluted earnings per share for the quarter ended December 31, 2017 was $0.17 compared to $0.17 in the fourth quarter of 2016. Please refer to the financial tables below for a reconciliation of GAAP to Non-GAAP results.

Further non-cash purchase accounting impacts associated with the Company's acquisitions are detailed in the Purchase Accounting Impacts and Other Effects table below accompanying this release.

Year to Date Financial Summary

Total revenue for the full year 2017 increased to $175.3 million, up 2.8%, or $4.8 million from $170.5 million during the same period last year. The increase was driven by the acquisition of Intasco which closed on April 29, 2016, as well as from the introduction of new products and increased market penetration, offset by a 4% drop in overall North American auto production during 2017.

Gross profit for the full year 2017 was $40.1 million, or 22.9% of total revenue, compared to $39.5 million, or 23.2% of total revenues, for the corresponding period last year. The decrease in gross profit as a percentage of sales was primarily the result of manufacturing inefficiencies caused by excessive turnover at some plant locations earlier in the year and unfavorable product mix.

Net income for the full year 2017 was $6.5 million, or $0.67 per basic and $0.66 per diluted share, compared to $6.7 million, or $0.69 and $0.68 per basic and diluted share, respectively, in the comparable period last year.

Adjusted EBITDA for the full year 2017 was $18.0 million compared to $19.0 million in the same period last year. The decrease is primarily a result of higher SG&A costs in 2017 due to a full year of Intasco expenses, coupled with lower gross margins described above. Please refer to the financial tables below for a reconciliation of GAAP to Non-GAAP results.

Adjusted diluted earnings per share for the full year 2017 was $0.69 compared to $0.78 in the same period last year. The decrease is primarily a result of the increase in SG&A costs and the margin decrease described above. Please refer to the financial tables below for a reconciliation of GAAP to Non-GAAP results.

Further non-cash purchase accounting impacts associated with the Company's acquisitions are detailed in the Purchase Accounting Impacts and Other Effects table below accompanying this release.

Balance Sheet Summary

As of December 31, 2017 the Company had approximately $1.4 million in cash and cash equivalents, as compared to January 1, 2017 when the Company had $706,000 in cash and cash equivalents. Total debt outstanding as of December 31, 2017 was $53.6 million compared to $50.6 million as of January 1, 2017.

As of December 31, 2017, the Company had $7.2 million of available unused capacity, further subject to borrowing base restrictions and outstanding letters of credit, under its $30.0 million revolving credit facility.

2018 Outlook

For the full year 2018, Unique Fabricating is providing its outlook based on industry production forecasts of 17.4 million light vehicles manufactured for the year, based on independent industry research published in December, and the mix of production by light vehicle platform contained in such research.

Dividend

Unique paid a cash dividend of $0.15 per share on March 7, 2018 to stockholders of record as of the close of business on February 28, 2018.

Quarterly Results Conference Call

Unique Fabricating will host a conference call and live webcast to discuss these results today at 9:00 a.m. Eastern Time. To access the call, please dial 1-877-705-6003 (toll-free) or 1-201-493-6725 and reference conference ID 13676699. The conference call will also be webcast live on the Investor Relations section of the company's website at http://uniquefab.investorroom.com

Following the conclusion of the live call, a replay of the webcast will be available on the Investor Relations section of the Company's website for at least 90 days. A telephonic replay of the conference call will also be available from 12:00PM ET on March 8, 2018 until 11:59PM ET on March 15, 2018 by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (international) and using the pin number 13676699.

About Unique Fabricating, Inc.

Unique Fabricating, Inc. (NYSE MKT: UFAB) engineers and manufactures components for customers in the automotive and industrial appliance market. The Company's solutions are comprised of multi-material foam, rubber, and plastic components and utilized in noise, vibration and harshness (NVH) management, acoustical management, water and air sealing, decorative and other functional applications. Unique leverages proprietary manufacturing processes including die cutting, thermoforming, compression molding, fusion molding, and reaction injection molding to manufacture a wide range of products including air management products, heating ventilating and air conditioning (HVAC), seals, fender stuffers, air ducts, acoustical insulation, door water shields, gas tank pads, light gaskets, topper pads, mirror gaskets and glove box liners. The Company is headquartered in Auburn Hills, Michigan. For more information, visit http://www.uniquefab.com/

About Non-GAAP Financial Measures

We present Adjusted EBITDA and Adjusted Diluted Earnings Per Share in this press release to provide a supplemental measure of our operating performance. We define Adjusted EBITDA as earnings before interest expense, income tax expense, depreciation and amortization expense, non-cash stock award, non-recurring integration expense, non-recurring step-up of inventory basis to fair market value, transaction fees related to our acquisitions, restructuring expenses, one-time consulting and licensing ERP system implementation costs as we implement a new ERP system at all locations, and gains on the sale of a building we sold in 2016. We calculate Adjusted Diluted Earnings Per Share based upon earnings before non-cash stock awards, non-recurring expenses, transaction fees, and restructuring expenses, including the tax impact associated with these adjusting items. We believe that Adjusted EBITDA and Adjusted Diluted Earnings Per Share are useful performance measures used by us to facilitate a comparison of our operating performance and earnings on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under generally accepted accounting principles in the United States of America (GAAP) can provide alone. Our board and management also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance and for evaluating on a quarterly and annual basis actual results against such expectations, and as a performance evaluation metric in determining achievement of certain compensation programs and plans for Company management. In addition, the financial covenants in our senior secured credit facility are based on Adjusted EBITDA, as presented in this press release, subject to dollar limitations on certain adjustments and certain other addbacks permitted by our senior secured credit facility. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation as a substitute for analysis of Unique Fabricating's results as reported under GAAP.

Safe Harbor Statement

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Forward-looking statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause the Company's or the Company's industry's actual results, levels of activity, performance or achievements including statements relating to the Company's 2018 Outlook to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by this press release. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook," and similar expressions are used to identify these forward looking statements. Such forward-looking statements include statements regarding, among other things, our expectations about revenue, Adjusted EBITDA, and adjusted diluted earnings per share. All such forward-looking statements are based on management's present expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission and in particular the Section entitled "Risk Factors", as well as any updates to those risk factors filed from time to time in our periodic and current reports filed with the Securities and Exchange Commission. All statements contained in this press release are made as of the date of this press release, and Unique Fabricating does not intend to update this information, unless required by law. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.

Investor Contact:Hayden IRRob Fink/ Brett Maas646-415-8972/646-536-7331[email protected]

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SOURCE Unique Fabricating, Inc.