Jason Industries, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Revises Earnings Guidance for 2016
For the nine months, the company reported net sales of $546.769 million against $534.588 million a year ago. Operating income was $13.688 million against $15.757 million a year ago. Loss before income taxes was $9.100 million against $6.852 million a year ago. Net loss attributable to company was $6.513 million against $4.101 million a year ago. Net loss available to common shareholders of the company was $9.213 million against $6.801 million a year ago. Net loss was $7.838 million or $0.41 per basic and diluted share against $4.935 million or $0.31 per basic and diluted share a year ago. For the nine months ended September 30, 2016, net cash provided by operating activities was $22.9 million compared with $33.0 million. Capital expenditures were $16.1 million, a decrease of $7.8 million. Free cash flow was $4.1 million compared with free cash flow of $6.5 million, and was reduced by $6.6 million due to timing of interest payments relative to the end of the fiscal period. Adjusted EBITDA was $53.616 million. EBITDA was $47.367 million. Adjusted net loss was $3.079 million or $0.10 per share. Net debt as on September 30, 2016 $405.302 million.
For 2016, the company now expects net sales in the range of $695 to $705 million and Adjusted EBITDA in the range of $62 to $65 million. Prior guidance was net sales in the range of $715 to $730 million and Adjusted EBITDA in the range of $73 to $76 million. The decline in net sales is indicative of steeper volume declines in the Seating segment and continued general industrial softness in the fourth quarter. These volumes significantly impact adjusted EBITDA expectations due to the margin profile and fixed cost in these businesses. The adjusted EBITDA decline also represents the lower operational execution in Acoustics business experienced in the third quarter and expected in the fourth quarter. The company continues to expect capital expenditures at approximately 3% of net sales. The company will achieve year-over-year improvements in working capital and lower CapEx, however, now expects to deliver $2 million to $7 million for the year on lower EBITDA.