Earnings Roundup:- Jason Industries, Inc. (NASDAQ:JASN)

On Monday, Jason Industries, Inc. (NASDAQ:JASN) shares price traded between $1.0100 and $1.1000 during the last trading session above/below with -1.82% at $1.0800. The shares recorded trading volume 56,566 shares as compared to its average volume of 115,772 shares. The company has 28.09M shares outstanding and market value of 30.338M. Over the one year trading period, the stock has a peak price of $3.7000 and its down is recorded at $0.9500.

Jason Industries, Inc. (JASN) recently stated results for first quarter 2019.

Key financial results for the first quarter 2019 versus the year ago period include:

  • Net sales of $142.0M reduced 15.1 percent and included a negative 3.4 percent impact from the divestiture and planned exit of non-core businesses and a negative 1.7 percent from foreign currency translation. Organic sales declined 10.0 percent primarily Because of lower overall production volumes, with platform changes in Fiber Solutions, softer end market demand in Engineered Components, and weak European markets in Industrial.
  • Net loss of $5.3M, or $0.22 diluted loss per share, raised $4.5M and $0.13 per share.
  • Adjusted net loss of $3.1M, or $0.10 adjusted loss per share, raised $0.12 per share.
  • Adjusted EBITDA of $14.1M, or 9.9 percent of net sales, reduced $5.7M from 11.8 percent of net sales, driven by lower volumes.
  • Free cash flow was negative $10.7M, a decrease of $10.9M,Because of lower adjusted EBITDA, higher working capital, and raised restructuring costs.

Highlights during the quarter include:

  • Actioned the consolidation of one of our two Redgranite, Wisconsin seating manufacturing facilities in the Engineered Components section and the consolidation of certain off-site warehouse facilities into primary manufacturing plants, all planned to be completed in the third quarter. In response to softer OEM demand and a weaker European industrial market, the Company implemented headcount reductions that will reduce costs starting in the second quarter. These actions and other on-going restructuring activities are predictable to result in about $4M of restructuring costs in 2019.
  • Subsequent to the quarter, completed the purchase of Schaffner Manufacturing Company, Inc. (“Schaffner”) in an all cash transaction valued at $11M. Schaffner is a manufacturer of high-quality polishing and finishing products with yearly sales of about $20M, and provides Jason’s Industrial section with an expansion of its product line offerings within North America. The integration of Schaffner is predictable to result in about $1.5M of yearly cost synergies from supply chain, facility, and fixed overhead reductions by the end of 2020 with restructuring costs of about $1M.

2019 Guidance:

Kobylinski stated, “We expect continued softness in several end markets to impact our sales results for the year and as such initiated cost reduction actions to preserve our full year EBITDA. Our consumers are recognizing our improved operational performance and our team is securing new business that will drive future sales impacting late 2019 and beyond. Despite top line pressure we remain encouraged by our elevated operations, improved consumer relationships, new business awards, and are excited about our Schaffner acquisition.”

For the full year 2019, Jason reaffirms guidance of net sales in the range of $565 to $585M and adjusted EBITDA of $65 to $68M, inclusive of the Schaffner acquisition. Jason now expects free cash flow in the range of $8 to $12M, contrast to previous guidance of $12 to $16M, primarily Because of higher restructuring costs. These ranges result in an implied net debt to Adjusted EBITDA range of 5.2 to 5.0 times.

The company plunged -19.69% in past week and declined -34.19% in one month. During the past three month period the stock dropped -60.00% and decreased -49.00% in past six month.


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