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Uniroyal Global Engineered Products, Inc. Reports Financial Results for the Fiscal Year Ended December 29, 2019
Uniroyal Global Engineered Products, Inc. Reports Financial Results for the Fiscal Year Ended December 29, 2019.
About this update from Uniroyal Global Engineered Products, Inc.
[{"type":"text","content":"\n SARASOTA, Fla., March 20, 2020 (GLOBE NEWSWIRE) -- Uniroyal Global Engineered Products, Inc. (OTCQB:UNIRD) today reported financial results for the Fiscal Year Ended December 29, 2019. Financial Summary Net Sales declined 8.5% to $91.1 million vs. $99.6 million in the prior year.Net Income declined to $961,423 vs. $1,246,797 in the prior year.Loss per Common Share of $0.58 vs. loss of $0.50 in the prior year, adjusted for the one-for-five reverse stock split effective February 24, 2020. Overview          From a macro financial perspective, Fiscal Year 2019 was a very difficult year.  Management was quick to respond to the economic conditions and put in place operational cost reduction programs.  However, the progress was masked as a result of non-recurring charges as explained below. Net Sales declined 8.5% (6.0% excluding the negative effect of currency exchange rates) as automotive sales in the U.S and European markets were sluggish; Gross Profit Margins were squeezed by lower sales volumes declining to 16.4% vs. 17.0% in the previous year; and even though we were able to reduce Operating Expenses significantly, Net Income fell to $961,423, a decline of 22.9% from the $1,246,797 reported last year. Despite a declining sales outlook for our automotive business which is 64.9% of our total revenue, we continued the strategy to reinvigorate our business. That strategy started in January 2019 when we had announced that we completed plans for the transformation of our Earby UK manufacturing plant to a state-of-the-art vinyl sheet production facility. This plan included the de-commissioning of the equipment associated with the Calender Operations since it could not be economically modernized. At that time, we also developed a restructuring plan to better service our existing customer base and to expand capacity and increase efficiencies to allow us to penetrate new markets with improved quality and price competitive offerings. Included in operating expenses for Fiscal Year 2019 were certain one-time expenses in the amount of $554,778. This included $343,003 of restructuring charges in Other Operating Expenses and $211,775 associated with the Calender de-commissioning in General and Administrative Expenses. Included in the Fiscal 2018 results was a $510,230 impairment charge al...