Unique Fabricating notes expense of closing Fort Smith plant

The now-closed Fort Smith location for Unique Fabricating, Inc., was mentioned in the company’s latest financial report. Company officials cited a combined expense of $1 million associated with restructuring from the closures of both Fort Smith and Port Huron, Mich., facilities through the first six months of the year.

This expense compared to $0 in the same period last year. Restructuring expense for the quarter ended July 1, 2018 was $500,000 for the two facilities.

“The transfer of production … to other manufacturing locations is complete and the remaining assets are in the process of being sold at a premium to the carrying value on our books,” said Unique Fabricating CEO John Weinhardt. “We plan to use the proceeds from the sale to reduce our debt. The restructuring charges associated with the plant closings are largely behind us, and we are beginning to realize the cost savings we expected in the second half of the year. Moving forward, our production footprint is appropriately aligned with our booked backlog and the growth we anticipate from potential new business in our pipeline.”

The Fort Smith facility employed 20 workers. Operations ceased in June. Work at the plant was shifted to facilities in Evansville, Ind., and Monterrey, Mexico. The company estimated the location had a $700,000 value at the time of listing.

“The consolidation of this facility into existing plants will help us to further streamline our manufacturing operations and better position us to grow profitably,” Weinhardt said in a February statement, adding confidence the move “will make us a stronger organization overall and is the best long-term solution for Unique Fabricating and our shareholders.”

For the second quarter of 2018, Unique Fabricating reported an increase in revenue and net income. On the revenue side, totals hit $45.7 million in Q2, up 2.8% compared to $44.5 million during the same period of 2017. Net income was $1.8 million, or $0.18 per basic and diluted share in the second quarter of 2018, compared to $1.7 million, or $0.17 per basic and diluted share in Q2 2017.