Uniroyal Global Engineered Products, Inc. Reports Net Income Of $1,300,044, Or $0.07 Per Diluted Share, Before Dividends, For The Quarter Ended 10/2/16 Vs $837,803, Or $0.04 Per Diluted Share, Before Dividends, For The Quarter Ended 10/04/15

Financial Highlights Third Quarter Ended October 2, 2016:

   *Net Sales increase 6.2% versus prior year    *Net Income increases 55.2%   *Diluted Net Income Per Common Share, before dividends $0.07 versus $0.04 in prior year   *Diluted Earnings Per Common Share $0.03 versus $0.01 in prior year

SARASOTA, Fla., Nov. 04, 2016 (GLOBE NEWSWIRE) -- Uniroyal Global Engineered Products, Inc. ((OTCQB:UNIR) or the "Company") today reported its financial results for the quarter ended October 2, 2016 compared to the quarter ended October 4, 2015.

Three Months Ended October 2, 2016

Net Sales

Net Sales for the third quarter increased 6.2% to $24,675,521, a gain of $1,450,322 versus the prior year, which represented the highest year over year increase for any quarter of this fiscal year.  Included in the reported sales is a negative currency impact of $890,000. Without the currency fluctuation, Net Sales would have increased 10% for the quarter.

Sales for the third quarter to the automotive industry (68.0% of total Net Sales) increased 14.4% versus last year due to sharp increases in both Domestic and European operations. "We continue to record strong results in Global automotive sales as product innovation and cost improvement programs are recognized by major OEM's.  This has resulted in increased market penetration," noted Howard Curd, Chairman.

Sales to the industrial and consumer segments (32.0% of total Net Sales) declined 7.8% versus last year.  Seating applications for industrial equipment manufacturers showed improvement in the quarter after a sluggish first six months, but consumer sales (recreational and residential) declined, impacted by the continued slow Global economic recovery.

Net Income Available to Common Shareholders

Net Income Available to Common Shareholders increased to $578,015 versus $139,304 in the prior year quarter, representing a gain of $438,711, or three times greater than that of the previous year.  The increase versus the prior year quarter was due to the improvement in Net Sales and sharply lower General and Administrative expenses.

Gross Profit Margins contracted during the third quarter to 21.7% versus 23.2% for the third quarter of the previous year.  The reduction in the margins was primarily caused by a decline in higher margin industrial and consumer sales.

Operating Income improved to $1,868,358 for the third quarter of this year versus $1,482,256 for the third quarter of the previous year, a gain of $386,102 or 26.0%.  The principal catalyst for the increase versus the prior year was a sharp reduction in General and Administrative expenses from the previous period.  Certain one-time charges in the third quarter of last year resulted in costs abnormally high for the period.  Current General and Administrative expenses, which are 7.4% of Net Sales for the third quarter, are lower than the nine months at 7.9% of Net Sales.

Nine Months Ended October 2, 2016

Net Sales

Net Sales for the nine months ended October 2, 2016 were $76,976,985, recording a gain of $490,797, or 0.6%, versus the previous year which was a 40 week period versus 39 weeks for the current nine months period.  The additional week in the prior year period represented approximately $500,000 in Net Sales, negatively impacting on year to year comparisons. Negative currency fluctuations of $1,700,000 also impacted the year to year comparisons.

Net Income Available to Common Shareholders

Net Income Available to Common Shareholders for the nine months ended October 2, 2016 (39 weeks) was $2,193,844 as compared to $1,815,796 for the nine months ended October 4, 2015 (40 weeks). The increase of $378,048 versus the previous year is due to improved Gross Profit Margins on Net Sales which more than offset an increase of 2.5% in operating expenses.

Gross Profit Margins for the nine months ended October 2, 2016 improved to 23.0% of Net Sales from 21.7% of Net Sales for the nine months ended October 4, 2015, leading to an improvement in Gross Profit of $1,141,047. Global manufacturing efficiencies and lower overall raw material costs were the primary reasons for the Gross Profit improvement.

Operating Income for the nine months improved to $6,356,226 from $5,492,864 versus the comparable prior year period for an increase of $863,362 or 15.7%.  The improvement in Gross Profit Margins on Net Sales led to the sharp increase in Operating Income.

For further details, see the Consolidated Statements of Operations in the Company's Form 10-Q filed on November 4, 2016.  The Company will have comments on the quarter in an earning conference call on November 7, 2016 at 9:00 am (EST).  Persons wishing to access the conference call may do so by dialing 888-857-6929 (U.S.) and 719-457-2607 (International), and using the ID #1385906.  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 ( https://public.viavid.com/player/index.php?id=121900) in the investor relations section. A replay of the conference call will be available beginning Monday, November 7, 2016 through February 7, 2017 by calling 877-870-5176 (US) or 858-384-5517 (International) and Pin #1385906.

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 2015 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®.

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.

    October 2, 2016     January 3, 2016  
CURRENT ASSETS                
Cash and cash equivalents   $   1,557,886       $ 1,910,112  
Accounts receivable, net       15,451,881         14,209,056  
Inventories, net       17,063,845         17,527,728  
Other current assets       2,284,174         2,891,007  
Related party receivable       25,000         23,298  
Total Current Assets       36,382,786         36,561,201  
PROPERTY AND EQUIPMENT, NET       13,609,176         14,003,276  
OTHER ASSETS                
Intangible assets       3,236,973         3,534,936  
Goodwill       1,079,175         1,079,175  
Other long-term assets       3,434,693         3,095,414  
Total Other Assets       7,750,841         7,709,525  
TOTAL ASSETS   $   57,742,803       $ 58,274,002  
Checks issued in excess of bank balance   $   611,557       $ 322,307  
Line of credit       16,108,797         16,577,279  
Current maturities of long-term debt       739,653         639,018  
Current maturities of capital lease obligations       396,136         489,978  
Accounts payable       7,987,786         7,592,510  
Accrued expenses       4,252,939         3,941,296  
Related party obligation       370,393         276,880  
Current portion of postretirement benefit liability - health and life       136,725         136,725  
Total Current Liabilities       30,603,986         29,975,993  
Long-term debt, less current portion       1,939,705         2,134,243  
Capital lease obligations, less current portion       996,152         1,469,317  
Related party lease financing obligations       2,163,428         2,164,682  
Long-term debt to related parties       2,918,786         4,449,243  
Postretirement benefit liability - health and life, less current portion       2,836,541         2,836,638  
Other long-term liabilities       954,696         975,781  
Total Long-Term Liabilities       11,809,308         14,029,904  
Total Liabilities       42,413,294         44,005,897  
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, Engineered Products Acquisition Limited, 50 shares issued and outstanding ($1.51 stated value)       75         75  
Common stock, 95,000,000 shares authorized ($.001 par value) 18,811,066 and 18,890,909 shares issued and outstanding as of October 2, 2016 and January 3, 2016, respectively       18,812         18,892  
Additional paid-in capital       34,827,831         34,823,886  
Accumulated deficit       (19,480,634 )       (21,674,478 )
Accumulated other comprehensive income       (1,117,325 )       18,980  
Total Stockholders' Equity       15,329,509         14,268,105  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $   57,742,803       $ 58,274,002  

    Three Months Ended     Nine Months Ended  
    October 2, 2016     October 4, 2015     October 2, 2016     October 4, 2015  
NET SALES   $   24,675,521         $ 23,225,199         $ 76,976,985         $ 76,486,188,    
COST OF GOODS SOLD       19,325,342           17,841,471           59,241,192           59,891,442    
Gross Profit       5,350,179           5,383,728           17,735,793           16,594,746    
OPERATING EXPENSES:                                
Selling       1,238,035           1,268,656           4,011,017           4,065,951    
General and administrative       1,830,932           2,192,559           6,051,854           5,850,880    
Research and development       412,854           440,257           1,316,696           1,185,051    
OPERATING EXPENSES       3,481,821           3,901,472           11,379,567           11,101,882    
Operating Income       1,868,358           1,482,256           6,356,226           5,492,864    
OTHER INCOME (EXPENSE):                                
Interest and other debt related expense       (394,401 )         (406,242 )         (1,232,814 )         (1,199,008 )  
Other income (expense)       (17,015 )         (103,051 )         (279,075 )         69,653    
Net Other Expense       (411,416 )         (509,293 )         (1,511,889 )         (1,129,355 )  
INCOME BEFORE TAX PROVISION       1,456,942           972,963           4,844,337           4,363,509    
TAX PROVISION       156,898           135,160           484,798           459,340    
NET INCOME       1,300,044           837,803           4,359,539           3,904,169    
Preferred stock dividend       (722,029 )         (698,499 )         (2,165,695 )         (2,088,373 )  
NET INCOME AVAILABLE TO                                
COMMON SHAREHOLDERS   $   578,015       $   139,304       $   2,193,844       $   1,815,796    
EARNINGS PER COMMON SHARE:                                
Basic   $   0.03       $   0.01       $   0.12       $   0.13    
Diluted   $   0.03       $   0.01       $   0.12       $   0.10    
WEIGHTED AVERAGE SHARES OUTSTANDING:                                
Basic       18,828,292           14,264,699           18,843,440           14,323,414    
Diluted       18,893,936           19,021,532           18,909,085           19,080,247    

Uniroyal Global Engineered Products, Inc. Corporate Contact:Elizabeth Henson, 941-870-3950 LHenson@UniroyalGlobal.com orUniroyal Global Engineered Products, Inc. Public Relations:TTC Group, Inc.Vic Allgeier, 646-290-6400 vic@ttcominc.com

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