Form 8-K Unique Fabricating, Inc. For: Nov 09
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 9, 2018
UNIQUE FABRICATING, INC.
(Exact name of registrant as specified in its Charter)
Delaware | 001-37480 | 46-1846791 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | ||
Unique Fabricating, Inc.
800 Standard Parkway
Auburn Hills, MI 48326
(248)-853-2333
(Address including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition
On November 9, 2018, Unique Fabricating, Inc. (the "Company") issued a press release reporting its financial results for the quarter ended September 30, 2018. A copy of the press release is attached as an exhibit and is incorporated herein by reference. The press release and teleconference presentation are available on the Company's website at www.uniquefab.com.
The information in this Item 2.02 and Item 9.01, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, regardless of any general incorporation language in any such filings.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release of the Company dated September 30, 2018.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNIQUE FABRICATING, INC. | ||
Dated: November 9, 2018 | By: | /s/ Thomas Tekiele |
Name: Thomas Tekiele | ||
Title: Chief Financial Officer (Principal Financial and Accounting Officer) | ||
EXHIBIT INDEX
Exhibit No. | Description |
Press release dated November 9, 2018 | |
Exhibit 99.1
Unique Fabricating, Inc. Reports Third Quarter 2018 Financial Results
Company Revises Full-Year Revenue and Profitability Guidance to Account for Current Market Outlook
Auburn Hills, MI - November 9, 2018 -- 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 third quarter ended September 30, 2018.
Third Quarter 2018 Financial Highlights
• | Revenue of $42.1 million in the third quarter of 2018, up 2.0% compared to $41.2 million in the third quarter of 2017 |
• | Net income of $0.6 million, or $0.06 per basic and diluted share in the third quarter of 2018, compared to $0.7 million, or $0.07 per basic and diluted share in the third quarter of 2017 |
• | Adjusted EBITDA of $3.4 million in the third quarter of 2018, including $1.7 million for non-cash charges specifically related to depreciation and amortization and non-cash stock awards, compared to $3.7 million in the third 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 $0.11 in the third quarter of 2018 versus $0.10 in the third quarter of 2017(1) |
• | Declared a quarterly cash dividend of $0.15 per share payable on December 7, 2018 for stockholders of record as of November 30, 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.
“Third quarter automotive production remained flat versus an industry projected increase resulting in a shortfall in our revenues versus expectations” commented John Weinhardt, Chief Executive Officer. “Despite this challenge, we still delivered revenue growth in the third quarter. A positive trend for Unique is the continued change in new vehicle mix, from traditional passenger cars to light trucks. We continue to grow our presence in this segment as larger vehicles offer multiple opportunities for our products. We experienced several new awards on SUV’s and pickup trucks in the third quarter that support this trend.”
“In addition to enhancing our vehicle mix, we have continued to focus on improving our operational efficiencies and maximizing the synergies between our production facilities,” added Weinhardt. “We have added significant depth to our continuous improvement efforts and identifying centers of excellence for our various capabilities. This will help us better leverage our geographic footprint and strengthen our key core competencies. We believe the combined emphasis on operational excellence and improved vehicle mix will allow us to better respond to changing market conditions.”
“Given the continued flat to modestly declining independent industry forecasts for automotive vehicle production, coupled with our expectations for the fourth quarter, we are revising our guidance for the full year 2018,” continued Weinhardt. “While we expect to continue to grow in excess of the overall automotive market, industry forecasts
point to a fourth quarter that will not replace lower than projected underlying vehicle sales experienced in the first half of the year. We remain optimistic about our long-term outlook, given the new program launches we have under contract and the level of new business quote activity we are engaged in with both existing and new customers. Our pipeline of new program launches builds on the solid foundation for our business as we look beyond 2018.”
“The shift from combustion engine to battery electric vehicles continues to accelerate, and we are well-positioned and actively engaged with customers to be a primary source for acoustic content for new models,” concluded Weinhardt. “We were recently awarded a new program for our TwinShape ducts by a start-up producer of battery electric vehicles that has successfully been demonstrating concept vehicles and is poised to launch into production late next year and accelerate as we enter 2020,” continued Weinhardt. “Electric vehicles typically include more acoustic content than traditional vehicles, which plays directly to our offerings. We are encouraged by the trends we are seeing in this segment of the market and the opportunities it represents for our business.”
Third Quarter Financial Summary
Total revenue for the quarter ended September 30, 2018 increased to $42.1 million, up 2.0%, or $0.9 million from $41.2 million during the same period last year. The increase was primarily driven by an increase in North American auto production of 4.2% quarter over quarter.
Gross profit for the quarter ended September 30, 2018 was $8.5 million, or 20.3% of total revenue, compared to $9.0 million, or 21.8% of total revenues, for the corresponding period last year. The decrease in gross profit was primarily related to short-term operational inefficiencies that arose when we shifted production from our Ft. Smith, Arkansas facility to other Company facilities, as well as from excessive labor turnover in some production facilities due to tight labor markets.
Restructuring expense for the quarter ended September 30, 2018 of $0.2 million was related to the previously announced manufacturing facility closure in Fort Smith, Arkansas and compares to $0 in the same period last year.
Net income for the quarter ended September 30, 2018 was $0.6 million, or $0.06 per basic and diluted share, compared to $0.7 million, or $0.07 per basic and diluted share, in the third quarter of 2017. The decrease in net income was primarily due to the gross profit decreases and the restructuring expenses described above, partially offset by higher sales.
Adjusted EBITDA for the quarter ended September 30, 2018 was $3.4 million compared to $3.7 million in the third quarter of 2017. The decrease is primarily a result of the lower margins as a percentage of sales described above, offset somewhat by higher sales. 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 September 30, 2018 was $0.11 compared to $0.10 in the third quarter of 2017. 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 first nine months of 2018 increased to $135.1 million, up 1.1%, or $1.5 million from $133.6 million during the same period last year. The increase was primarily driven by increased market penetration, partially offset by a decline in North American auto production of 0.4% year over year.
Gross profit for the first nine months of 2018 was $30.8 million, or 22.8% of total revenue, compared to $30.7 million, or 23.0% of total revenues, for the corresponding period last year. The decrease in gross profit as a percentage of sales was primarily related to the operational inefficiencies experienced during the third quarter.
Restructuring expense for the first nine months of 2018 of $1.2 million was related to previously announced manufacturing facility closures in Port Huron, Michigan and Fort Smith, Arkansas and compares to $0 in the same period last year.
Net income for first nine months of 2018 was $3.9 million, or $0.40 per basic and $0.39 per diluted share, respectively, compared to $4.4 million, or $0.45 per basic and diluted share, in the corresponding period last year. The decrease in net income was primarily due to the restructuring expenses and gross profit decreases described above, partially offset by the higher sales.
Adjusted EBITDA for the first nine months of 2018 was $13.9 million compared to $14.1 million in the same period last year. The decrease is primarily a result of the lower margins described above, partially offset by the higher sales so far this year. Please refer to the financial tables below for a reconciliation of GAAP to Non-GAAP results.
Adjusted diluted earnings per share for the first nine months of 2018 was $0.54 compared to $0.52 in the same period last year. 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 September 30, 2018 the Company had approximately $1.0 million in cash and cash equivalents, as compared to December 31, 2017 when the Company had $1.4 million in cash and cash equivalents. Total debt outstanding as of September 30, 2018 was $55.8 million compared to $53.6 million as of December 31, 2017.
As of September 30, 2018, the Company had $4.6 million of available unused capacity, further subject to borrowing base restrictions and outstanding letters of credit, under its $32.5 million Revolving Line of Credit.
Amended and Restated Credit Agreement
On November 8, 2018, subsequent to the end of the third quarter, Unique Fabricating NA, Inc. and Unique-Intasco Canada, Inc. entered into an Amended and Restated Credit Agreement (the “Agreement”), which amended and restated its existing Credit Agreement. The Agreement increases the principal amount of two current US Term Loans to a combined total of $26.0 million by retiring a portion of the borrowings currently outstanding on the Revolving Line of Credit, while continuing to provide for borrowings of up to $30.0 million under the Revolving Line of Credit (subject to availability), as well as creating a new two year $5.0 million line of credit to fund capital expenditures. Furthermore, the Agreement extends the maturity dates of all borrowings from April 28, 2021 to November 7, 2023, and revises the amortization schedule of both the new US Term Loan and the current Canadian Term Loan.
2018 Outlook
For the full year 2018, Unique Fabricating is updating its outlook based on its results for the first nine months of the year and industry production forecasts of light vehicles manufactured for the year, based on independent industry research published in October, and the mix of production by light vehicle platform contained in such research.
Previous Guidance | Updated Guidance | ||
Revenue | $181 million to $185 million | $171 million to $175 million | |
Adjusted diluted earnings per share | $0.82 to $0.86 | $0.58 to $0.62 | |
Adjusted EBITDA | $20.0 million to $21.0 million | $17.0 million to $18.0 million | |
The Company does not present a quantitative reconciliation of its forward-looking non-GAAP financial measures to the most directly comparable GAAP measures due to the inherent difficulty, without unreasonable efforts, in forecasting and quantifying with reasonable accuracy significant items required for this reconciliation.
Dividend
Unique's Board of Directors approved payment of a quarterly cash dividend of $0.15 per share on November 9, 2018. The dividend will be payable on December 7, 2018 to stockholders of record as of the close of business on November 30, 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 13684545. 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 November 9, 2018 until 11:59PM ET on November 16, 2018 by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (international) and using the pin number 13684545.
About Unique Fabricating, Inc.
Unique Fabricating, Inc. (NYSE MKT: UFAB) engineers and manufactures components for customers in the automotive and industrial appliance markets. 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, transaction fees related to our acquisitions, restructuring expenses, and one-time consulting and licensing ERP system implementation costs as we implement a new ERP system at all locations. 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 IR
Brett Maas/Rob Fink
646-536-7331/646-415-8972
Source: Unique Fabricating, Inc.
UNIQUE FABRICATING, INC.
Consolidated Statements of Operations (Unaudited)
Thirteen Weeks Ended September 30, 2018 | Thirteen Weeks Ended October 1, 2017 | Thirty-Nine Weeks Ended September 30, 2018 | Thirty-Nine Weeks Ended October 1, 2017 | ||||||||||||
Net sales | $ | 42,051,968 | $ | 41,231,366 | $ | 135,098,491 | $ | 133,606,501 | |||||||
Cost of sales | 33,528,457 | 32,256,440 | 104,305,811 | 102,858,323 | |||||||||||
Gross profit | 8,523,511 | 8,974,926 | 30,792,680 | 30,748,178 | |||||||||||
Selling, general, and administrative expenses | 7,226,204 | 7,268,812 | 22,571,692 | 22,455,833 | |||||||||||
Restructuring expenses | 175,526 | — | 1,155,910 | — | |||||||||||
Operating income | 1,121,781 | 1,706,114 | 7,065,078 | 8,292,345 | |||||||||||
Non-operating (expense) income | |||||||||||||||
Other (expense) income, net | 21,166 | 39,673 | (43,167 | ) | 83,748 | ||||||||||
Interest expense | (836,887 | ) | (770,149 | ) | (2,433,360 | ) | (2,089,056 | ) | |||||||
Total non-operating expense, net | (815,721 | ) | (730,476 | ) | (2,476,527 | ) | (2,005,308 | ) | |||||||
Income – before income taxes | 306,060 | 975,638 | 4,588,551 | 6,287,037 | |||||||||||
Income tax (benefit) expense | (320,763 | ) | 260,532 | 698,830 | 1,856,684 | ||||||||||
Net income | $ | 626,823 | $ | 715,106 | $ | 3,889,721 | $ | 4,430,353 | |||||||
Net income per share | |||||||||||||||
Basic | $ | 0.06 | $ | 0.07 | $ | 0.40 | $ | 0.45 | |||||||
Diluted | $ | 0.06 | $ | 0.07 | $ | 0.39 | $ | 0.45 | |||||||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.45 | |||||||
UNIQUE FABRICATING, INC.
Consolidated Balance Sheets (Unaudited)
September 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 982,913 | $ | 1,430,937 | |||
Accounts receivable – net | 31,157,862 | 27,203,296 | |||||
Inventory – net | 17,506,671 | 16,330,084 | |||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses and other | 3,928,197 | 3,962,012 | |||||
Refundable taxes | 1,258,080 | 646,253 | |||||
Asset held for sale | 733,059 | — | |||||
Total current assets | 55,566,782 | 49,572,582 | |||||
Property, plant, and equipment – net | 25,027,850 | 22,975,401 | |||||
Goodwill | 28,871,179 | 28,871,179 | |||||
Intangible assets– net | 16,560,818 | 19,635,782 | |||||
Other assets | |||||||
Investments – at cost | 1,054,120 | 1,054,120 | |||||
Deposits and other assets | 226,550 | 353,719 | |||||
Deferred tax asset | 529,099 | 342,552 | |||||
Total assets | $ | 127,836,398 | $ | 122,805,335 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 14,051,539 | $ | 11,708,175 | |||
Current maturities of long-term debt | 4,399,998 | 3,799,998 | |||||
Income taxes payable | 86,987 | 348,910 | |||||
Accrued compensation | 3,524,586 | 2,840,559 | |||||
Other accrued liabilities | 1,220,132 | 1,027,489 | |||||
Total current liabilities | 23,283,242 | 19,725,131 | |||||
Long-term debt – net of current portion | 23,780,796 | 27,288,846 | |||||
Line of credit-net | 27,616,745 | 22,476,525 | |||||
Deferred tax liability | 2,647,098 | 2,432,754 | |||||
Total liabilities | 77,327,881 | 71,923,256 | |||||
Stockholders’ Equity | |||||||
Common stock, $0.001 par value – 15,000,000 shares authorized and 9,771,587 and 9,757,563 issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 9,772 | 9,758 | |||||
Additional paid-in-capital | 45,845,175 | 45,712,568 | |||||
Retained earnings | 4,653,570 | 5,159,753 | |||||
Total stockholders’ equity | 50,508,517 | 50,882,079 | |||||
Total liabilities and stockholders’ equity | $ | 127,836,398 | $ | 122,805,335 | |||
UNIQUE FABRICATING, INC.
Consolidated Statements of Cash Flows (Unaudited)
Thirty-Nine Weeks Ended September 30, 2018 | Thirty-Nine Weeks Ended October 1, 2017 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 3,889,721 | $ | 4,430,353 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 4,947,495 | 4,703,909 | |||||
Amortization of debt issuance costs | 106,609 | 113,412 | |||||
Loss on sale of assets | 5,179 | 12,442 | |||||
Bad debt adjustment | (52,483 | ) | 96,531 | ||||
Gain on derivative instrument | (5,645 | ) | (188,054 | ) | |||
Stock option expense | 98,621 | 115,245 | |||||
Deferred income taxes | 27,797 | (77,446 | ) | ||||
Changes in operating assets and liabilities that provided (used) cash: | |||||||
Accounts receivable | (3,902,083 | ) | (2,180,715 | ) | |||
Inventory | (1,176,587 | ) | (300,347 | ) | |||
Prepaid expenses and other assets | (445,198 | ) | (1,829,809 | ) | |||
Accounts payable | 2,708,213 | 758,356 | |||||
Accrued and other liabilities | 614,747 | (12,831 | ) | ||||
Net cash provided by operating activities | 6,816,386 | 5,641,046 | |||||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (4,691,424 | ) | (3,466,432 | ) | |||
Proceeds from sale of property and equipment | 28,205 | 29,347 | |||||
Net cash used in investing activities | (4,663,219 | ) | (3,437,085 | ) | |||
Cash flows from financing activities | |||||||
Net change in bank overdraft | (364,849 | ) | (806,075 | ) | |||
Payments on term loans | (2,962,477 | ) | (2,574,545 | ) | |||
Proceeds from revolving credit facilities, net | 5,088,039 | 5,837,324 | |||||
Proceeds from exercise of stock options and warrants | 34,000 | 37,001 | |||||
Distribution of cash dividends | (4,395,904 | ) | (4,386,893 | ) | |||
Net cash (used in) provided by financing activities | (2,601,191 | ) | (1,893,188 | ) | |||
Net increase (decrease) in cash and cash equivalents | (448,024 | ) | 310,773 | ||||
Cash and cash equivalents – beginning of period | 1,430,937 | 705,535 | |||||
Cash and cash equivalents – end of period | $ | 982,913 | $ | 1,016,308 | |||
Supplemental disclosure of cash flow Information – cash paid for | |||||||
Interest | $ | 2,304,312 | $ | 1,953,206 | |||
Income taxes | $ | 1,178,482 | $ | 1,793,316 | |||
UNIQUE FABRICATING, INC.
Reconciliation of GAAP Net Income to Adjusted EBITDA
Thirteen Weeks Ended September 30, 2018 | Thirteen Weeks Ended October 1, 2017 | Thirty-Nine Weeks Ended September 30, 2018 | Thirty-Nine Weeks Ended October 1, 2017 | ||||||||||||
GAAP Net income | $ | 626,823 | $ | 715,106 | $ | 3,889,721 | $ | 4,430,353 | |||||||
Plus: Interest expense, net | 836,887 | 770,149 | 2,433,360 | 2,089,056 | |||||||||||
Plus: Income tax expense | (320,763 | ) | 260,532 | 698,830 | 1,856,684 | ||||||||||
Plus: Depreciation and amortization | 1,661,677 | 1,596,272 | 4,947,495 | 4,703,909 | |||||||||||
Plus: Non-cash stock award | 32,681 | 40,229 | 98,621 | 115,245 | |||||||||||
Plus: Non-recurring integration expenses | 127,981 | 27,415 | 127,981 | 30,794 | |||||||||||
Plus: Transaction fees | 26,717 | — | 26,717 | 23,235 | |||||||||||
Plus: Restructuring expenses | 175,526 | — | 1,155,910 | — | |||||||||||
Plus: One-time consulting and licensing ERP system implementation costs | 202,572 | 276,312 | 522,256 | 815,307 | |||||||||||
Adjusted EBITDA | $ | 3,370,101 | $ | 3,686,015 | $ | 13,900,891 | $ | 14,064,583 | |||||||
UNIQUE FABRICATING, INC.
Reconciliation of GAAP Net Income to Adjusted Diluted Earnings Per Share
Thirteen Weeks Ended September 30, 2018 | Thirteen Weeks Ended October 1, 2017 | Thirty-Nine Weeks Ended September 30, 2018 | Thirty-Nine Weeks Ended October 1, 2017 | ||||||||||||
GAAP Net income | $ | 626,823 | $ | 715,106 | $ | 3,889,721 | $ | 4,430,353 | |||||||
Plus: Non-cash stock award | 32,681 | 40,229 | 98,621 | 115,245 | |||||||||||
Plus: Non-recurring integration expenses | 127,981 | 27,415 | 127,981 | 30,794 | |||||||||||
Plus: Transaction fees | 26,717 | — | 26,717 | 23,235 | |||||||||||
Plus: Restructuring expenses | 175,526 | — | 1,155,910 | — | |||||||||||
Plus: One-time consulting and licensing ERP system implementation costs | 202,572 | 276,312 | 522,256 | 815,307 | |||||||||||
Less: Tax impact | (104,259 | ) | (91,850 | ) | (426,384 | ) | (290,766 | ) | |||||||
Adjusted Net income | $ | 1,088,041 | $ | 967,212 | $ | 5,394,822 | $ | 5,124,168 | |||||||
Diluted weighted average shares outstanding | 9,918,625 | 9,898,273 | 9,916,000 | 9,903,240 | |||||||||||
Net income per share | |||||||||||||||
Diluted - GAAP | $ | 0.06 | $ | 0.07 | $ | 0.39 | $ | 0.45 | |||||||
Diluted - Adjusted | $ | 0.11 | $ | 0.10 | $ | 0.54 | $ | 0.52 | |||||||
UNIQUE FABRICATING, INC.
Purchase Accounting Impacts and Other Effects
Thirteen Weeks Ended September 30, 2018 | Thirteen Weeks Ended October 1, 2017 | Thirty-Nine Weeks Ended September 30, 2018 | Thirty-Nine Weeks Ended October 1, 2017 | ||||||||||||
Non-cash purchase accounting impacts | |||||||||||||||
Customer relationships amortization | $ | 836,796 | $ | 837,522 | $ | 2,510,390 | $ | 2,510,570 | |||||||
Trade name amortization | 72,926 | 72,926 | 218,778 | 218,779 | |||||||||||
Non-compete amortization | 27,885 | 44,162 | 116,209 | 132,486 | |||||||||||
Unpatented technology | 76,529 | 76,529 | 229,587 | 229,587 | |||||||||||
Less: Tax impact | (187,007 | ) | (272,326 | ) | (661,667 | ) | (896,001 | ) | |||||||
Net income effect | $ | 827,129 | $ | 758,813 | $ | 2,413,297 | $ | 2,195,421 | |||||||
Net income per share impact | |||||||||||||||
GAAP - Basic | $ | 0.08 | $ | 0.08 | $ | 0.25 | $ | 0.23 | |||||||
GAAP - Diluted | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.22 | |||||||