EXHIBIT 99.1

 

ASV Holdings, Inc. Reports Full Year and Fourth Quarter 2017 Results

 

Grand Rapids, MN, March 22, 2018 — ASV Holdings, Inc. (Nasdaq: ASV), a leading provider of rubber-tracked compact track loaders and wheeled skid steer loaders in the compact construction equipment market, today announced Full Year and Fourth Quarter 2017 results.

For the Full Year 2017, the Company reported Net Sales of $123.3 million and Net Income of $1.7 million or $0.19 per share compared to Net Sales of $103.8 million and a Net Loss of $(1.2) million or $(0.15) per share for the year ended December 31, 2016.

For the three months ended December 31, 2017, the Company reported Net Sales of $30.5 million and a Net Loss of $(0.8) million or $(0.08) per share compared to Net Sales of $25.0 million and a Net Loss of $(2.1) million or $(0.26) per share for the three months ended December 31, 2016.

Full Year 2017 Highlights

$123.3 million in Net Sales represented a year-over-year increase of 18.8% over $103.8 million in 2016.

Machine sales revenues increased year over year by 32.0% to $81.5 million.

Adjusted 2017 net income* of $2.0 million or $0.22 per share, compared to 2016 adjusted pro forma C Corporation net loss of $(1.2) million or $(0.13) per share, representing a positive swing of $3.2 million.

EBITDA of $9.9 million or 8.1% of sales compared to $10.7 million or 10.3% of sales for 2016.

Adjusted EBITDA* of $10.7 million or 8.7% of sales compared to 2016 pro forma adjusted EBITDA of $7.8 million or 7.5% of sales.

Independent dealer / rental locations increased to 222 at December 31, 2017 compared to 133 at December 31, 2016.

Transition to ASV distribution substantially completed during the year, with 97.0% of machine sales to the ASV network in 2017.

Reduced total Net Indebtedness by $16.5 million to $26.9 million as of December 31, 2017 compared to $43.4 million at December 31, 2016 representing a 40% reduction in debt. Leverage ratio at December 31, 2017 cut by nearly 60% to 2.5x trailing adjusted EBITDA, compared to 5.6x at December 31, 2016.

Fourth Quarter 2017 Highlights

$30.5 million in Net Sales represented a year-over-year increase of 21.5% over $25.0 million in the fourth quarter of 2016.

Machine sales revenues increased year-over-year by 39.0% to $21.0 million.

Adjusted fourth quarter 2017 net income* of $0.5 million or $0.05 per share, compared to fourth quarter 2016 adjusted pro forma C Corporation net loss of $(0.8) million or $(0.10) per share, representing a positive swing of $1.3 million. The largest adjustment to earnings came from debt refinancing costs as discussed below.

EBITDA of $1.7 million or 5.6% of sales compared to $2.4 million or 9.8% of sales for the fourth quarter of 2016.

Adjusted EBITDA* of $2.2 million or 7.4% of sales compared to fourth quarter 2016 pro forma adjusted EBITDA of $1.0 million or 4.0% of sales.

Completed re-financing of credit facility with new 5-year, $50.0 million facility, reducing weighted average effective interest cost to approximately 5.3%, compared to 6.9% at December 31, 2016.We incurred $0.9 million debt refinancing costs including the amortized costs of the prior facilities and a pre-payment penalty in the period.

 

—  more  —


*The Glossary at the end of this press release contains further details regarding reconciliation of GAAP items and Adjusted and Pro-forma items.

Chairman and Chief Executive Officer, Andrew Rooke commented, “2017 was a transformative year for ASV, in which we reassumed substantially all of the branding and distribution of our product line. We have nearly doubled our independent dealer and rental network locations, and established the infrastructure needed to thrive and grow as a public company. While public company costs impacted our bottom line, we have been profitable each quarter on an adjusted basis, we’ve significantly strengthened the balance sheet and we remain well-positioned for improvements in each of our key performance indicators during 2018 and beyond. My thanks go to the ASV team who led this, and to all stakeholders who contributed to our efforts.”

 

“Our performance for the year was highlighted by a year-over-year incremental $2.9 million in adjusted EBITDA, representing 15% margin on incremental sales. We generated $7.5 million in cash flow from operations, and total indebtedness was reduced almost 40% from a year ago.  Our 18.8% top-line growth for the year, essentially all coming from machine sales, also benefitted from our progress in the rental market, to which our sales were approximately 40% higher in 2017 than in 2016. With the build out of North America retail and rental distribution to 222 locations, and continued strength in Australia and New Zealand, we are optimistic about the opportunities for further expansion.”

 

Mr. Rooke continued, “The relocation of our aftermarket parts distribution center next to our Grand Rapids, Minnesota headquarters and manufacturing facility, which we started in the fourth quarter of 2017, is expected to be completed by the end of the first quarter 2018, ahead of plan. While we will incur certain costs from this move in the first quarter, we expect significant customer service and parts availability improvements and reduced operating costs, once fully transitioned, to yield a payback of approximately one year or less. The end-markets that ASV serves are building momentum and our products continue to enjoy unique and well-understood advantages and value to dealers and end-users alike. We expect to take advantage of these strong markets to increase our sales, EBITDA margin and net income in 2018 and beyond.”

 

Missi How, Chief Financial Officer, commented, “We are pleased with the progress we made in 2017. We generated nearly $7.5 million in operating cash compared to $2.4 million in 2016, and we swung to a reported pretax profit of $1.1 million for the year versus a loss of $1.2 million last year. A primary focus has been the strengthening of our balance sheet.  We made significant progress in managing our inventory, which improved our days on hand and lowered our DSO, resulting in an improvement in our net working capital to annualized last quarters’ sales to 23.6% as compared to 31.6% in 2016. Cash generated from operations together with the proceeds from the IPO enabled us to reduce our total net debt by $16.5 million during 2017 and lower our leverage ratio to 2.5x trailing adjusted EBITDA. With the re-structuring of our credit facility completed in the fourth quarter, we expect the benefits of the refinancing to reduce our annual interest expense by approximately $0.8 million in 2018.”

 

Conference Call:

 

Management will host a conference call at 4:30 PM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 888-394-8218 if calling within the United States or 323-701-0225 if calling internationally. A replay will be available until 11:59 PM ET March 29, 2018 which can be accessed by dialing 844-512-2921 if calling within the United States or 412-317-6671 if calling internationally. Please use passcode 4517711 to access this replay.

 

The call will additionally be broadcast live and archived for 90 days over the internet with accompanying slides, accessible at the investor relations portion of the Company's corporate website,www.asvi.com in the “Investors” section.

About ASV Holdings, Inc.

ASV Holdings, Inc. is a designer and manufacturer of compact construction equipment. Its patented Posi-Track rubber tracked, multi-level suspension undercarriage system provides a competitive market differentiator for its Compact Track Loader (CTL) product line with brand attributes of power, performance and serviceability.  It’s wheeled Skid Steer Loaders (SSLs) also share the common brand attributes. Equipment is sold through an independent dealer network throughout North America, Australia, and New Zealand. The company also sells


OEM equipment and aftermarket parts. ASV owns and operates a 238,000 square-foot production facility in Grand Rapids, MN.

Forward-Looking Statements

 

This release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “intends” or “continue,” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. Forward-looking statements in this release include, without limitation: (1) projections of revenue, earnings, capital structure and other financial items, (2) statements of our plans and objectives, (3) statements regarding the capabilities and capacities of our business operations, (4)  statements of expected future economic conditions and the effect on us and on dealers or OEM customers, (5) expected benefits of our cost reduction measures, and (6) assumptions underlying statements regarding us or our business.

Our actual results may differ from information contained in these forward looking-statements for many reasons, including those described in the section entitled “Risk Factors” in our Registration Statement on Form S-1 (SEC File No. 333-216912), which was filed in connection with our initial public offering and our Form 10K which are available on our EDGAR page at www.sec.gov. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. We discuss many of these risks in greater detail under the heading “Risk Factors” and elsewhere in the Registration Statement on Form S-1. You should not rely upon forward-looking statements as predictions of future events.  Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, after the date of this release, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.

We obtained the industry, market and competitive position data in this release from our own internal estimates and research as well as from industry and general publications and research surveys and studies conducted by third parties. While we believe that each of these studies and publications is reliable, we have not independently verified market and industry data from third-party sources. While we believe our internal company research is reliable and the market definitions we use are appropriate, neither such research nor these definitions have been verified by any independent source.

We from time to time refer to various non-GAAP financial measures in this release.  We believe that this information is useful to understanding our operating results by excluding certain items that may not be indicative of our core operating results and business outlook.  Reference to these non-GAAP financial measures should not be considered as a substitute for, or superior to, results that are presented in a manner consistent with GAAP.  Rather, the non-GAAP financial information should be considered in addition to results that are presented in a manner consistent with GAAP.  A reconciliation of non-GAAP financial measures referred to in this release is provided in the tables at the conclusion of this release.

 

 

 

Company Contact

ASV Holdings, Inc.

Darrow Associates Inc.

Andrew RookePeter Seltzberg, Managing Director

Chairman and Chief Executive OfficerInvestor Relations

218-327-5389(516) 419-9915

andrew.rooke@asvi.compseltzberg@darrowir.com

 

 

 

 

 

 

 

 

 

 

 

 

 


ASV Holdings, Inc.

Statements of Operations

(In thousands, except par value and per share data)

 

 

 

 

 

For the Quarter Ended December 31,

 

For the Year Ended December 31,

 

 

2017

 

2016

 

2017

 

2016

Net sales

 

$                30,455

 

$                25,050

 

$              123,340

 

$              103,803

Cost of goods sold

 

26,310

 

21,175

 

104,698

 

87,417

Gross profit

 

4,145

 

3,875

 

18,642

 

16,386

Research and development costs

 

508

 

490

 

2,070

 

1,999

Selling, general and administrative expense

 

3,109

 

2,159

 

11,450

 

8,377

Operating income

 

528

 

1,226

 

5,122

 

6,010

Other income (expense)

 

 

 

 

 

 

 

 

Interest expense

 

(655)

 

(1,147)

 

(3,034)

 

(4,963)

Loss on debt extinguishment

 

(906)

 

(2,196)

 

(989)

 

(2,196)

Loss on sale of assets

 

                        —

 

                        —

 

                        —

 

(24)

Other income

 

                         2

 

                        —

 

                         2

 

                        —

Total other expense

 

(1,559)

 

(3,343)

 

(4,021)

 

(7,183)

Income (loss) before taxes

 

(1,031)

 

(2,117)

 

1,101

 

(1,173)

Income tax benefit (loss)

 

(236)

 

                        —

 

(608)

 

                        —

Net income (loss)

 

$                   (795)

 

$                (2,117)

 

$                 1,709

 

$                (1,173)

Earnings per share:

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$                 (0.08)

 

$                 (0.26)

 

$                  0.19

 

$                 (0.15)

Diluted net income (loss) per share

 

$                 (0.08)

 

$                 (0.26)

 

$                  0.19

 

$                 (0.15)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

9,801

 

8,000

 

9,125

 

8,000

Diluted weighted average common shares outstanding

 

9,801

 

8,000

 

9,125

 

8,000

Pro forma (C corporation basis):

 

 

 

 

 

 

 

 

Pro forma tax (benefit)

 

N/A

 

$                  (762)

 

N/A

 

$                  (422)

Pro forma net income (loss)

 

N/A

 

$               (1,355)

 

N/A

 

$                  (751)

Pro forma earnings per share:

 

 

 

 

 

 

 

 

Basic net income per share

 

N/A

 

$                  (0.17)

 

N/A

 

$                  (0.09)

Diluted net income per share

 

N/A

 

$                  (0.17)

 

N/A

 

$                  (0.09)

 

 

 

 



 

ASV Holdings, Inc.

Balance Sheets

(In thousands, except par value)

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash

 

$

3

 

 

$

572

 

Cash - restricted

 

 

 

 

 

535

 

Trade receivables, net

 

 

18,276

 

 

 

13,603

 

Receivables from affiliates

 

 

76

 

 

 

1,413

 

Inventory, net

 

 

26,691

 

 

 

30,896

 

Prepaid income tax

 

 

896

 

 

 

-

 

Prepaid expenses and other

 

 

591

 

 

 

537

 

Total current assets

 

 

46,533

 

 

 

47,556

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

13,797

 

 

 

15,402

 

Intangible assets, net

 

 

23,277

 

 

 

25,824

 

Goodwill

 

 

30,579

 

 

 

30,579

 

Deferred financing costs - revolving loan facility

 

 

298

 

 

 

371

 

Other long-term assets

 

 

13

 

 

 

-

 

Deferred tax asset

 

 

624

 

 

 

-

 

Total assets

 

$

115,121

 

 

$

119,732

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Note payable - current portion

 

$

2,000

 

 

$

3,000

 

Trade accounts payable

 

 

15,174

 

 

 

11,976

 

Payables to affiliates

 

 

1,063

 

 

 

2,298

 

Accrued compensation and benefits

 

 

1,483

 

 

 

1,073

 

Accrued warranties

 

 

1,869

 

 

 

1,870

 

Accrued product liability- short term

 

 

778

 

 

 

2,125

 

Accrued other

 

 

1,039

 

 

 

1,312

 

Total current liabilities

 

 

23,406

 

 

 

23,654

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Revolving loan facility

 

 

12,511

 

 

 

15,605

 

Note payable - long term, net

 

 

12,664

 

 

 

26,265

 

Other long-term liabilities

 

 

739

 

 

 

773

 

Total liabilities

 

 

49,320

 

 

 

66,297

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000 authorized, none outstanding at December

   31, 2017 and December 31, 2016, respectively

 

 

 

 

 

 

Common stock, $0.001 par value, 50,000 authorized, 9,806 and 8,000 shares issued

   and outstanding at December 31, 2017 and December 31, 2016, respectively

 

 

10

 

 

 

8

 

Additional paid-in capital

 

 

65,434

 

 

 

54,779

 

Retained earnings (accumulated deficit)

 

 

357

 

 

 

(1,352

)

Total Stockholders' Equity

 

 

65,801

 

 

 

53,435

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

115,121

 

 

$

119,732

 

 

 

 

 

 


ASV Holdings, Inc.

Statements of Cash Flows

(In thousands)

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,709

 

 

$

(1,173

)

Adjustments to reconcile to net income (loss) to net cash

 

 

 

 

 

 

 

 

provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

2,263

 

 

 

2,181

 

Amortization

 

 

2,547

 

 

 

2,547

 

Share-based compensation

 

 

353

 

 

 

 

Deferred income tax (benefit)

 

 

(624

)

 

 

 

Loss on sale of fixed assets

 

 

57

 

 

 

24

 

Amortization of deferred finance cost

 

 

212

 

 

 

545

 

Loss on debt extinguishment

 

 

989

 

 

 

2,196

 

Prepayments and other fees incurred in debt

 

 

 

 

 

 

 

 

extinguishment

 

 

(364

)

 

 

(369

)

Bad debt expense

 

 

14

 

 

 

42

 

Inventory reserves

 

 

544

 

 

 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Trade receivables

 

 

(4,687

)

 

 

578

 

Net trade receivables/payables from affiliates

 

 

102

 

 

 

186

 

Other long-term assets

 

 

(13

)

 

 

 

Inventory

 

 

3,494

 

 

 

(1,997

)

Prepaid income tax

 

 

(896

)

 

 

-

 

Prepaid expenses

 

 

(53

)

 

 

(439

)

Trade accounts payable

 

 

3,198

 

 

 

(647

)

Accrued expenses

 

 

(1,288

)

 

 

(1,223

)

Other long-term liabilities

 

 

(34

)

 

 

(34

)

Net cash provided by operating activities

 

 

7,523

 

 

 

2,417

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds on disposal of fixed assets

 

 

 

 

 

2

 

Purchase of property and equipment

 

 

(548

)

 

 

(325

)

Net cash (used in) investing activities

 

 

(548

)

 

 

(323

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Principal payments on term debt

 

 

(1,075

)

 

 

(5,500

)

Repayment of existing debt

 

 

(28,924

)

 

 

(32,500

)

Borrowings on new term debt

 

 

15,000

 

 

 

30,000

 

Debt issuance costs incurred

 

 

(366

)

 

 

(1,220

)

Shares repurchased for income tax withholding on share-based compensation

 

 

(25

)

 

 

 

Members equity contribution

 

 

 

 

 

5,000

 

Repayment of existing revolving credit facility

 

 

 

 

 

(12,165

)

Initial borrowing on new revolving credit facility

 

 

 

 

 

16,716

 

Proceeds from issuance of common stock, net of offering costs

 

 

10,405

 

 

 

 

Net payments on revolving credit facilities

 

 

(3,094

)

 

 

(1,318

)

Net cash (used in) financing activities

 

 

(8,079

)

 

 

(987

)

NET CHANGE IN CASH

 

 

(1,104

)

 

 

1,107

 

Cash at beginning of period

 

 

1,107

 

 

 

-

 

Cash at end of period

 

$

3

 

 

$

1,107

 

 

 

 

 

 

 

 


Supplemental Information

Cautionary Statement Regarding Non-GAAP Measures

This release contains references to “EBITDA” and “Adjusted EBITDA.” EBITDA is defined for the purposes of this release as net income or loss before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA less the gain or loss related to non-recurring events. Management believes that EBITDA and Adjusted EBITDA are useful supplemental measures of our operating performance and provide meaningful measures of overall corporate performance exclusive of our capital structure and the method and timing of expenditures associated with building and placing our products. EBITDA is also presented because management believes that it is frequently used by investment analysts, investors and other interested parties as a measure of financial performance. Adjusted EBITDA is also presented because management believes that it provides a measure of our recurring core business.

However, EBITDA and Adjusted EBITDA are not recognized earnings measures under generally accepted accounting principles of the United States (“U.S. GAAP”) and do not have a standardized meaning prescribed by U.S. GAAP. Therefore, EBITDA and Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Investors are cautioned that EBITDA and Adjusted EBITDA should not be construed as alternatives to net income or loss or other income statement data (which are determined in accordance with U.S. GAAP) as an indicator of our performance or as a measure of liquidity and cash flows. Management’s method of calculating EBITDA and Adjusted EBITDA may differ materially from the method used by other companies and accordingly, may not be comparable to similarly titled measures used by other companies.

Reconciliation of EBITDA to Adjusted EBITDA (in millions except percentages)  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended December 31,

 

For the Year Ended December 31,

 

 

2017

 

2016

 

2017

 

2016

Net income (loss)

 

($0.8)

 

($2.1)

 

$1.7

 

($1.2)

Interest Expense

 

                  0.6

 

              1.1

 

                3.0

 

               5.0

Loss on debt extinguishment

 

                  0.9

 

              2.2

 

                1.0

 

               2.2

Depreciation & Amortization

 

                  1.2

 

              1.2

 

                4.8

 

               4.7

Income Tax (Benefit) Expense

 

                (0.2)

 

                -  

 

              (0.6)

 

                  -  

EBITDA (1)

 

$1.7

 

$2.4

 

$9.9

 

$10.7

% of Sales

 

5.6%

 

9.8%

 

8.1%

 

10.3%

 

 

 

 

 

 

 

 

 

EBITDA

 

$1.7

 

$2.4

 

$9.9

 

$10.7

Costs of ConExpo trade show (2)

 

                    -  

 

                -  

 

                0.1

 

                  -  

Revision to accrual for legal proceeding expenses less
   legal costs (3)

 

                  0.1

 

            (0.9)

 

              (0.1)

 

              (1.4)

Stock compensation and transaction related compensation costs (4)

 

                  0.1

 

                -  

 

                0.5

 

                  -  

Aftermarket parts distribution center relocation (5)

 

                  0.3

 

                -  

 

                0.3

 

                  -  

Adjusted EBITDA (6)

 

$2.2

 

$1.5

 

$10.7

 

$9.3

Adjusted EBITDA as % of net revenues

 

7.4%

 

6.0%

 

8.7%

 

9.0%

Pro-forma adjustment for public company costs

 

                    -  

 

            (0.5)

 

                  -  

 

              (1.5)

Pro-forma Adjusted EBITDA*

 

$2.2

 

$1.0

 

$10.7

 

$7.8

% of Sales

 

7.4%

 

4.0%

 

8.7%

 

7.5%


* * The Company converted to a C corporation in May 2017, and consequently 2017 EBITDA for the three and twelve months ended December 31, 2017 includes approximately $0.5 million and $1.5 million of public company costs not included in 2016 EBITDA. For the three and twelve months ended December 31, 2016, Pro Forma Adjusted EBITDA is $1.0 million and $7.8 million.

 

(1)

EBITDA is defined as income or loss before interest, income taxes, depreciation and amortization. EBITDA is not a recognized measure under U.S. GAAP and does not have a standardized meaning prescribed by U.S. GAAP. Therefore, EBITDA may not be comparable to similar measures presented by other companies. The table above reconciles net income to EBITDA. See “—Cautionary Statements Regarding Non-GAAP Measures” for further information regarding EBITDA.

(2)

Costs associated with the 2017 ConExpo trade show.  The ConExpo show, which is held every three years, was held in Las Vegas in March of this year. This show is an international gathering place for the construction industries. It is estimated that 130,000 professionals from around the world attended the show.

(3)

Revision to accrual for legal proceeding expenses is included in Adjusted EBITDA since it is an adjustment in the period to an accrual established at the formation of the Joint Venture and is not representative of the operating activity in the reported period. This adjustment was due to the settlement of a legal claim lower than the accrued cost.

(4)

Stock compensation and IPO transaction related compensation costs.

(5)

Aftermarket Parts Distribution Center relocation costs are restructuring costs related to the movement of the ASV aftermarket parts operation from Southaven Memphis to a facility adjacent to the Company principal premises in Grand Rapids MN, which commenced in quarter four of 2017 and was completed in quarter one of 2018.

(6)

Adjusted EBITDA is defined as EBITDA less the gain or loss related to non-recurring events. Adjusted EBITDA is not a recognized measure under U.S. GAAP and does not have a standardized meaning prescribed by U.S. GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other companies. The table above reconciles EBITDA to Adjusted EBITDA. See “—Cautionary Statements Regarding Non-GAAP Measures” for further information regarding EBITDA.

(6)

2016 Pro Forma Adjusted EBITDA is defined as Adjusted EBITDA less public company costs

 

Reconciliation of GAAP Net Income to Adjusted Net Income (in millions except shares and EPS)  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended December 31,

 

For the Year Ended December 31,

 

 

2017

 

2016

 

2017

 

2016

Net income (loss) as reported

 

($0.8)

 

($2.1)

 

$1.7

 

($1.2)

Revision to legal costs accrual & product liability settlement

 

               0.1

 

                (0.9)

 

                0.1

 

             (1.4)

Aftermarket parts distribution center relocation

 

               0.3

 

                    -  

 

                0.3

 

                  -  

Loss on debt extinguishment

 

               0.9

 

                  2.2

 

                1.0

 

               2.2

Pro-forma adjustment for public company costs

 

                  -  

 

                (0.5)

 

                   -  

 

             (1.5)

Pro-forma income before tax

 

               0.5

 

                (1.3)

 

                3.1

 

             (1.9)

Pro forma (C corporation basis) tax

 

$              -    

 

$0.5

 

($1.1)

 

$0.7

Adjusted Net Income (loss)

 

$0.5

 

($0.8)

 

$2.0

 

($1.2)

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

9,801,000

 

8,000,000

 

9,125,000

 

8,000,000

Basic and Diluted earnings (loss) per share as reported

 

($0.08)

 

($0.26)

 

$0.19

 

($0.15)

Total EPS Effect

 

$0.13

 

$0.16

 

$0.03

 

$0.02

Adjusted (pro forma C Corporation) earnings (loss) per share

 

$0.05

 

($0.10)

 

$0.22

 

($0.13)

 


*Pro forma adjustments for public company costs and (C corporation basis) tax expense: The company converted from a LLC to a corporation on May 11, 2017. The pro forma adjustments reflect the actual public company costs incurred in 2017 as if the company had been a corporation for the same period in 2016, and a pro forma (C corporation basis) tax charge on income at a tax rate of 36%.

Current Ratio

 

 

December 31, 2017

December 31, 2016

Current Assets

$46,533

$47,556

Current Liabilities

$23,406

$23,654

Current Ratio

2.0

2.0

 

Days Sales Outstanding, (DSO), is calculated by taking the sum of net trade and related party receivables divided by annualized sales per day (sales for the quarter, multiplied by 4, and the sum divided by 365).

 

Days Payables Outstanding, (DPO), is calculated by taking the sum of net trade and related party payables divided by annualized cost of sales per day (cost of goods sold for the quarter, multiplied by 4, and the sum divided by 365).

 

Debt net of deferred financing costs is calculated using the Condensed Consolidated Balance Sheet amounts for 1) deferred financing costs – revolving loan facility, 2) note payable – short term, 3) revolving loan facility and 4) note payable – long term net. Debt to Adjusted EBITDA ratio is calculated by dividing total debt at the balance sheet date by trailing twelve month Adjusted EBITDA.

 

 

 

December 31, 2017

December 31, 2016

Note payable – short term

2,000

3,000

Deferred financing costs – revolving loan facility

(298)

(371)

Revolving loan facility

12,511

15,605

Note payable – long term -net

12,664

26,265

Debt

$26,877

$44,499

 

Inventory turns are calculated by multiplying cost of goods sold for the referenced three-month period by 4 and dividing that figure by inventory as at the referenced period.

 

Net working capital as a % of annualized last quarter’s sales is the sum of accounts receivable and inventory less accounts payable divided by the last quarter’s sales annualized (x4).

 

 

December 31, 2017

December 31, 2016

Accounts receivable

18,352

15,016

Inventory

26,691

30,896

Accounts payable

(16,237)

(14,274)

Net working capital

$28,806

$31,638

Last quarters annualized sales (LQS)

121,820

100,200

Net working capital % of LQS

23.6%

31.6%

 

 

Working capital is calculated as total current assets less total current liabilities

 

 

December 31, 2017

December 31, 2016

Total Current Assets

$46,533

$47,556

Less: Total Current Liabilities

23,406

23,654

Working Capital

$23,127

$23,902