Uniroyal Global Reports Second Quarter 2015 Financial Results
Revenues surpass $25.7 million with EPS of $0.05 for the second quarter;
Revenues surpass $53.3 million with EPS of $0.09 for the six months
SARASOTA, FL – August 5, 2015- Uniroyal Global Engineered Products, Inc. (OTCQB: UNIR) (“Uniroyal Global Engineered Products, Inc.” or the “Company”) filed its Form 10-Q today reporting its results for the three months ended July 5, 2015.
“We are pleased with the second quarter and year to date results of operations. We continue to perform well against our stated objectives of customer diversification, deeper penetration into our current customers and continuous margin improvement through cost reduction and productivity gains,” said Howard R. Curd, Chairman and CEO. “Our order book continues to show strength through the end of the year primarily due to the launch of new automotive platforms in the US and Europe and increased unit sales at our European automotive customers. We are seeing highly favorable volume comparisons from last year that are somewhat masked by the recent decline in the Euro. Excluding a $2.3 million impact of currency headwinds, our revenues for the quarter would have been up more than 10% from the year ago period,” added Mr. Curd.
The following is a brief discussion of the results:
Total revenue for the three months ended July 5, 2015 increased $346,042, or 1.4%, to $25,746,054 from $25,400,012 for the three months ended June 29, 2014. The increase was primarily due to new automotive platform launches and offset to a large degree by $2.3 million of unfavorable impact of currency exchange rate changes.
Total gross profit for the second quarter 2015 was $5,855,955, or 22.7%, of sales compared with $4,901,701 or 19.3% of sales for the second quarter 2014. The gross profit percentage increased in 2015 primarily due to the rolling off of lower margin automotive platforms which were replaced with higher margin platforms and the positive results of cost efficiency programs implemented during 2014.
Selling expenses for the second quarter 2015 increased $275,262, or 23.1%, to $1,469,369 from $1,194,107 during the second quarter 2014. The increase resulted primarily due to increases in commissions and administrative, marketing and support staff expenses added during the second half of 2014.
General and administrative expenses for the quarter decreased by $392,391, or 18.7%, to $1,702,545 from $2,094,936 compared to the same period 2014. The expense decrease is principally due to $412,000 of statutory severance payments for the same period 2014 as a result of labor reduction programs at our U.K. facility. This decrease was partially offset by slightly higher administrative expenses this quarter.
Operating income for the quarter was $2,265,077, or 8.8%, of sales compared with $1,222,329, or 4.8%, during the year ago period. The operating income increased primarily due to the gross margin improvements as stated above and a reduction in general and administrative expenses. The amount of increase was offset by approximately $400,000 of unfavorable impact of currency exchange rate changes and increased selling expenses.
Interest expense during the quarter increased by $1,096, or 0.3%, to $405,349 from $404,253 in the second quarter 2014. The increase attributable to average higher debt balances in the second quarter 2015 was partially offset by a lower weighted average effective rate for 2015 compared to 2014 and a favorable impact of the foreign exchange rates.
Other income in the quarter decreased $79,871 to $5,343 from $85,214 in the year ago period. Other income is principally the gain or loss on the settlement and fair values of financial instruments related to currency translations from Euro to the British Pound in the UK subsidiary. Contributing to the decrease was $27,394 of unrelated miscellaneous income recognized for second quarter 2014.
Net income increased $772,492, or 87.5%, to $1,655,709 from $883,217 before the preferred dividend of $696,769, which was issued by the company as a result of the acquisition of Uniroyal Engineered Products, LLC and Engineered Products Acquisition Limited.
Net income available to common shareholders for the second quarter increased to $0.067 per share, or 8.1%, from $0.062 per share in the second quarter 2014. Net income per share on a fully diluted basis increased to $0.050 from $0.047 in the second quarter 2014.
About Uniroyal Global Engineered Products, Inc.:
Uniroyal Global Engineered Products, Inc. (OTCQB: 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 2014 was derived 63% from the automotive industry and approximately 37% from the recreational, industrial, indoor and outdoor furnishings, hospitality and health care markets.
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,” “expect,” “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, 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. Corporate Contact: Elizabeth Henson; telephone: 941-870-3950; email: LHenson@uniroyalglobal.com
Uniroyal Global Engineered Products, Inc. Public Relations: Vic Allgeier; TTC Group, Inc.; telephone: 646-290-6400; email: firstname.lastname@example.org