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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.
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 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®.
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
|Uniroyal Global Engineered Products, Inc.|
|Consolidated Balance Sheets|
|Cash and cash equivalents||$||1,211,153||$||1,028,841|
|Accounts receivable, net||15,476,139||12,422,330|
|Other current assets||769,217||965,520|
|Related party receivable||31,966||20,118|
|Total Current Assets||38,159,175||33,897,069|
|PROPERTY AND EQUIPMENT, NET||26,057,251||18,878,949|
|Other long-term assets||3,728,377||3,693,367|
|Total Other Assets||8,080,873||7,990,539|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Checks issued in excess of bank balance||$||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|
|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 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|
|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 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|
|Three Months Ended|
|COST OF GOODS SOLD||21,079,658||21,812,193|
|General and administrative||1,510,800||1,948,301|
|Research and development||476,964||421,963|
|Other operating expenses||343,003||-|
|Interest and other debt related expense||(514,296||)||(456,364||)|
|Net Other Expense||(286,163||)||(423,082||)|
|INCOME BEFORE TAX PROVISION||594,234||475,118|
|Preferred stock dividend||(782,544||)||(784,459||)|
|NET LOSS ALLOCABLE TO COMMON SHAREHOLDERS||$||(149,442||)||$||(294,820||)|
|LOSS PER COMMON SHARE:|
|WEIGHTED AVERAGE SHARES OUTSTANDING:|