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CST: 18/08/2019 12:08:07   

Uniroyal Global Engineered Products, Inc. Reports Financial Results for the First Quarter Ended March 31, 2019

99 Days ago

SARASOTA, Fla., May 10, 2019 (GLOBE NEWSWIRE) -- Uniroyal Global Engineered Products, Inc. (OTCQB: UNIR or the “Company”) today reported its financial results for the Three Months Ended March 31, 2019.

Financial Highlights

  • Net Sales of $25.4 million versus prior year of $26.4 million
  • Net Income increases to $633,102 versus $489,639 in prior year
  • Loss per Common Share of $0.01 versus prior year loss of $0.02

Net Sales

Net Sales for the three months ended March 31, 2019 decreased $1,035,827 or 3.9% to $25,393,860 from $26,429,687 recorded in the prior year.  Excluding the negative currency effect of the exchange rates, total revenue would have only decreased by approximately $33,000 or 0.1%.  The global automotive operations (64.9% of total Net Sales) increased 0.8% excluding the negative currency effect. Our U.S. automotive operations increased 2.4% versus last year as it has done for the last three quarters. Our U.K. operations declined slightly by 0.5% compared to 2018 excluding the currency adjustment but saw some improvements compared to the most recent prior quarters.

Our Industrial business segment (35.1% of total Net Sales—including Contract sales) decreased 3.1% (1.8% excluding the currency effect) versus the prior year.  Our U.S. operations which comprised approximately 83.2% of this business segment, saw gains of 2.3% over the prior year. This was offset by the decrease in the U.K. as sales last year in this sector was higher than normal due to a quarterly timing issue.

Operating Income

Operating Income for the three months ended March 31, 2019 was $880,397 versus $898,200 in the prior year, a decline of $17,803 or 2.0%.  The primary reasons for the decline were lower sales and a contraction in Gross Profit margins to 17.0% this year versus 17.5% in the prior year. The margins in 2019 were negatively impacted by the higher raw material prices compared to 2018 and the effect of product mix. The corrective action we had taken in prior quarters offset some of the effect of the higher raw material prices. Also partially offsetting the reduction in gross profit were lower operating expenses which has been a continued focus of the Company. Excluding the charge of $343,003 related to a restructuring plan accrued during the three months 2019, operating income would have increased by $325,200.

Loss Per Common Share

After Preferred stock dividends, Net Loss Allocable to Common Shareholders was $149,442 or $0.01 per diluted common share for the three months 2019 as compared to a loss of $294,820 or $0.02 per diluted common share for 2018.

For further details, see the Consolidated Statements of Operations in the Company’s Form 10-Q filed on May 10, 2019.

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 2018 was derived 66.2% from the automotive industry and approximately 33.8% from the recreational, industrial, indoor and outdoor furnishings, hospitality and healthcare markets. Our primary brand names include Naugahyde®, BeautyGard®, Flame Blocker™, Spirit Millennium®, Ambla®, Amblon®, Velbex®, Cirroflex®, Plastolene® and Vynide®.

Forward-Looking Statements:

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. Public Relations :
TTC Group, Inc.
Vic Allgeier, 646-290-6400
vic@ttcominc.com

Uniroyal Global Engineered Products, Inc.
Consolidated Balance Sheets
       
  (Unaudited)    
ASSETS March 31,
2019
  December 30,
2018
CURRENT ASSETS      
Cash and cash equivalents $ 1,211,153     $ 1,028,841  
Accounts receivable, net   15,476,139       12,422,330  
Inventories, net   20,670,700       19,460,260  
Other current assets   769,217       965,520  
Related party receivable   31,966       20,118  
Total Current Assets   38,159,175       33,897,069  
PROPERTY AND EQUIPMENT, NET   26,057,251       18,878,949  
OTHER ASSETS      
Intangible assets   3,273,321       3,217,997  
Goodwill   1,079,175       1,079,175  
Other long-term assets   3,728,377       3,693,367  
Total Other Assets   8,080,873       7,990,539  
TOTAL ASSETS $ 72,297,299     $ 60,766,557  
LIABILITIES AND STOCKHOLDERS' EQUITY      
CURRENT LIABILITIES      
Checks issued in excess of bank balance $ 798,186     $ 855,210  
Lines of credit   21,222,815       19,325,116  
Current maturities of long-term debt   1,510,024       1,369,967  
Current maturities of finance lease liabilities   382,067       388,862  
Accounts payable   10,876,594       9,335,235  
Accrued expenses and other liabilities   4,578,165       3,326,291  
Related party obligation   122,873       84,154  
Current portion of postretirement benefit liability - health and life   139,095       139,095  
Total Current Liabilities   39,629,819       34,823,930  
LONG-TERM LIABILITIES      
Long-term debt, less current portion   4,004,613       3,967,754  
Finance lease liabilities, less current portion   29,591       109,446  
Related party lease financing obligation   2,743,363       2,613,717  
Long-term debt to related parties   3,190,655       2,990,655  
Postretirement benefit liability - health and life, less current portion   2,094,115       2,101,892  
Other long-term liabilities   7,005,405       653,653  
Total Long-Term Liabilities   19,067,742       12,437,117  
Total Liabilities   58,697,561       47,261,047  
STOCKHOLDERS' EQUITY      
Preferred units, Series A UEP Holdings, LLC, 200,000 units issued and outstanding ($100 issue price)   617,571       617,571  
Preferred units, Series B UEP Holdings, LLC, 150,000 units issued and outstanding ($100 issue price)   463,179       463,179  
Preferred stock, Uniroyal Global (Europe) Limited, 50 shares issued and outstanding ($1.51 stated value)   75       75  
Common stock, 95,000,000 shares authorized ($.001 par value) 18,690,030 shares issued and outstanding as of both March 31, 2019 and December 30, 2018   18,690       18,690  
Additional paid-in capital   35,288,936       35,244,770  
Accumulated deficit   (22,285,572 )     (22,136,130 )
Accumulated other comprehensive loss   (503,141 )     (702,645 )
Total Stockholders' Equity   13,599,738       13,505,510  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 72,297,299     $ 60,766,557  
               


Uniroyal Global Engineered Products, Inc.
Consolidated Statements of Operations
(Unaudited)
       
  Three Months Ended
  March 31,
2019
  April 1,
2018
       
NET SALES $ 25,393,860     $ 26,429,687  
       
COST OF GOODS SOLD   21,079,658       21,812,193  
       
Gross Profit   4,314,202       4,617,494  
       
OPERATING EXPENSES:      
Selling   1,103,038       1,349,030  
General and administrative   1,510,800       1,948,301  
Research and development   476,964       421,963  
Other operating expenses   343,003       -  
OPERATING EXPENSES   3,433,805       3,719,294  
       
Operating Income   880,397       898,200  
       
OTHER EXPENSE:      
Interest and other debt related expense   (514,296 )     (456,364 )
Other income   228,133       33,282  
Net Other Expense   (286,163 )     (423,082 )
       
INCOME BEFORE TAX PROVISION   594,234       475,118  
       
TAX BENEFIT   (38,868 )     (14,521 )
       
NET INCOME   633,102       489,639  
       
Preferred stock dividend   (782,544 )     (784,459 )
NET LOSS ALLOCABLE TO COMMON SHAREHOLDERS $ (149,442 )   $ (294,820 )
       
LOSS PER COMMON SHARE:      
Basic $ (0.01 )   $ (0.02 )
Diluted $ (0.01 )   $ (0.02 )
WEIGHTED AVERAGE SHARES OUTSTANDING:      
Basic   18,690,030       18,690,030  
Diluted   18,690,030       18,690,030  
       

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