SARASOTA, Fla.--(BUSINESS WIRE)--Uniroyal Global Engineered Products, Inc. (OTCQB:UNIR) (or the “Company”) today reported its financial results for the fiscal quarter ended April 2, 2017.
Net Sales for the fiscal quarter ended April 2, 2017 increased to $25,758,429 for a gain of 3.2% versus the $24,967,595 reported in the comparable prior year quarter. Approximately 52% of the total net sales for the quarter were international which were negatively impacted by the stronger U.S. dollar. Excluding the negative impact of the stronger dollar, Net Sales for the quarter increased 7.7%.
Global automotive net sales increased 7.7% for the quarter with particular strength in European business due to increased penetration of its existing customer base and new platforms and programs awarded in fiscal 2016. Automotive net sales represented 68% of the Company’s net sales for the current quarter, versus 65% for the comparable quarter last year.
Net Sales in the Industrial Sector declined 5.2% versus the first quarter of the previous year. This decline was principally due to sluggish sales to major off-highway equipment manufacturers.
“We are encouraged by the robust growth of our European automotive sector. With several new platforms commencing soon, we expect good performance from the Global Automotive Sector for the remainder of the year,” said Howard Curd, Chairman and Chief Executive Officer.
Income Before Taxes
Income Before Taxes improved to $1,445,278 or $162,508 (12.7%) versus $1,282,770 for the comparable quarter of the previous year. Operating Expenses declined this quarter due to lower Selling and General and Administrative expenses as the Company reaps the benefits of continuous consolidation and efficiency programs put in place some time ago. The lower Operating Expenses virtually offset lower Gross Profit Margins. Gross Profit Margins decreased this quarter versus last year due to the increase in lower margin automotive sales and a reduction in higher margin industrial sales. Also negatively affecting margins for the fiscal quarter ended April 2, 2017 were raw material price increases in the U.K. due to inflation caused by a weak British Pound Sterling and operating inefficiencies from the ramping up of newly awarded European automotive platforms. These inefficiencies have been largely addressed and improvement is expected for the remainder of the year.
Lower interest charges and currency valuations also benefited Income Before Taxes for the quarter versus the previous year.
Net Income Available to Common Shareholders
Net Income Available to Common Shareholders increased 8.4% to $470,776 or $0.03 per share from $434,103 or $0.02 per share reported in the first quarter of the prior year.
For further details, see the Consolidated Statements of Operations in the Company’s Form 10-Q filed on May 15, 2017. The Company will have comments on the quarter in an earning conference call on May 16, 2017 at 9:00 am (EDT). Persons wishing to access the conference call may do so by dialing 800-311-6662 (U.S.) and 719-457-2602 (International), and using the ID #1653261. Howard F. Curd, President, will discuss our earnings on the call and will be available for questions. The call will also be available by logging on to www.uniroyalglobal.com and accessing the webcast link (http://public.viavid.com/index.php?id=124397) in the investor relations section. A replay of the conference call will be available beginning May 16, 2017 through August 16, 2017 by calling (844) 512-2921 (US) or (412) 317-6671 (International) and Pin #1653261.
About Uniroyal Global Engineered Products, Inc.:
Uniroyal Global Engineered Products, Inc. (UNIR) is a leading manufacturer of vinyl coated fabrics that are durable, stain resistant, cost-effective alternatives to leather, cloth and other synthetic fabric coverings. Uniroyal Global Engineered Products, Inc.’s revenue in 2016 was derived 65% from the automotive industry and approximately 35% from the recreational, industrial, indoor and outdoor furnishings, hospitality and health care markets. Our primary brand names include Naugahyde®, BeautyGard®, Flameblocker™, Spirit Millennium®, Ambla®, Amblon®, Velbex®, Cirroflex®, Plastolene® and Vynide®.
Except for statements of historical fact, certain information contained in this press release constitutes forward-looking statements, including, without limitation, statements containing the words “believe,” “expect,” “anticipate,” “intend,” “should,” “planned,” “estimated” and “potential” and words of similar import, as well as all references to the future. These forward-looking statements are based on Uniroyal Global Engineered Products, Inc.’s current expectations. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance and that a variety of factors could cause the Company´s actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company´s forward-looking statements. The risks and uncertainties which may affect the operations, performance, development and results of the Company´s business include, but are not limited to, the following: uncertainties relating to economic conditions, uncertainties relating to customer plans and commitments, the pricing and availability of equipment, materials and inventories, currency fluctuations, technological developments, performance issues with suppliers, economic growth, delays in testing of new products, the Company’s ability to successfully integrate acquired operations, the Company’s dependence on key personnel, the Company’s ability to protect its intellectual property rights, the effectiveness of cost-reduction plans, rapid technology changes and the highly competitive environment in which the Company operates. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
|Uniroyal Global Engineered Products, Inc.|
|Consolidated Balance Sheets|
|ASSETS||April 2, 2017||January 1, 2017|
|Cash and cash equivalents||$1,537,716||$1,321,586|
|Accounts receivable, net||16,329,872||14,555,463|
|Other current assets||716,713||1,183,932|
|Related party receivable||25,000||25,456|
|Total Current Assets||37,562,795||34,132,608|
|PROPERTY AND EQUIPMENT, NET||14,108,416||13,611,494|
|Other long-term assets||6,829,509||6,665,375|
|Total Other Assets||11,065,177||10,878,114|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Checks issued in excess of bank balance||$800,633||$679,494|
|Line of credit||17,195,833||16,799,592|
|Current maturities of long-term debt||925,688||851,988|
|Current maturities of capital lease obligations||366,375||368,718|
|Related party obligation||372,583||371,161|
|Current portion of postretirement benefit liability - health and life||158,527||158,527|
|Total Current Liabilities||33,778,987||30,206,219|
|Long-term debt, less current portion||2,047,908||1,994,910|
|Capital lease obligations, less current portion||776,539||856,171|
|Related party lease financing obligations||2,160,158||2,162,151|
|Long-term debt to related parties||2,735,029||2,826,907|
|Postretirement benefit liability - health and life, less current portion||2,880,650||2,883,684|
|Other long-term liabilities||783,239||792,027|
|Total Long-Term Liabilities||11,383,523||11,515,850|
Preferred units, Series A UEP Holdings, LLC, 200,000 units issued
and outstanding ($100 issue price)
Preferred units, Series B UEP Holdings, LLC, 150,000 units issued
and outstanding ($100 issue price)
Preferred stock, Engineered Products Acquisition Limited, 50 shares
issued and outstanding ($1.51 stated value)
Common stock, 95,000,000 shares authorized ($.001 par value)
18,714,142 and 18,727,782 shares issued and outstanding as of
April 2, 2017 and January 1, 2017, respectively
|Additional paid-in capital||34,711,744||34,653,894|
|Accumulated other comprehensive income||(1,533,367)||(1,678,486)|
|Total Stockholders' Equity||17,573,878||16,900,147|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$62,736,388||$58,622,216|
|Uniroyal Global Engineered Products, Inc.|
|Consolidated Statements of Operations|
|Three Months Ended|
|April 2, 2017||April 3, 2016|
|COST OF GOODS SOLD||20,382,282||19,241,135|
|General and administrative||1,821,466||2,041,834|
|Research and development||533,854||428,529|
|OTHER INCOME (EXPENSE):|
|Interest and other debt related expense||(389,856)||(417,188)|
|Other income (expense)||99,254||(173,496)|
|Net Other Expense||(290,602)||(590,684)|
|INCOME BEFORE TAX PROVISION||1,445,278||1,282,770|
|Preferred stock dividend||(739,916)||(718,901)|
NET INCOME AVAILABLE TO COMMON
|EARNINGS PER COMMON SHARE:|
|WEIGHTED AVERAGE SHARES OUTSTANDING:|