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Industry Talk

Improved operating results in Central America for Unifi

The company also recorded an increase in net sales by 3.3%, compared with the same period last year.

24th October 2014

Innovation in Textiles
 |  Greensboro, NC

Industrial, Clothing/​Footwear, Sports/​Outdoor

Unifi, a multi-national producer of textured and other processed yarns, has reported a slight decrease in net income, which amounted to US 7.1 million for the September 2014 quarter, compared to net income of US 8.9 million for the prior year quarter.

According to the company, improved operating results for its Central American operations were offset by a US 2.5 million decrease in earnings from the company's equity affiliate, Parkdale America, a US cotton and synthetic yarns producer.

Financial figures

The company also recorded an increase in net sales by 3.3% for the first quarter ended 28 September 2014, compared with the same period last year.

Net sales increased by US 5.5 million to US 174.2 million for the September 2014 quarter. The increase has been caused by an improved volume in the company's nylon and international segments, along with mix enrichment improvements in the company's polyester segment. 

Gross margin increased by 20 basis points despite larger than anticipated manufacturing variances related to the company's July 4th shutdown. Adjusted EBITDA amounted to US 14.2 million for the September 2014 quarter, a slight decline from US 14.5 million for the prior year quarter.

Textured polyester business

“We are very pleased with the growth for our textured polyester business within the CAFTA region and the continued strength of our Repreve recycled fibre,” said Roger Berrier, President and Chief Operating Officer of Unifi.

“We will continue to drive awareness and demand for Repreve through high visibility partnerships and consumer activations, which include programs with the Detroit Lions of the NFL, the University of North Carolina at Chapel Hill, and Marvel Universe Live!.  Our marketing programs have attracted the attention of many brands and retailers, and have led to the development and adoption of new programs featuring Repreve and our other value-added products.”

Increasing texturing capacity

Cash and cash equivalents of US 15.8 million as of September 28, 2014 remained almost unchanged compared to US 15.9 million as of 29 June 2014. Net debt at the end of the September 2014 quarter was US 95.8 million, compared to US 83.6 million at June 29, 2014.  The Company had US 72.5 million available under its revolver as of September 28, 2014, compared to US 61.1 million as of June 29, 2014.   

“Based on the success of our domestic business and the expansion of our business within the CAFTA region, the company anticipates utilising our cash from operations and additional borrowing capacity to fund growth related initiatives in fiscal year 2015,” said Bill Jasper, Chairman and CEO of Unifi.

“We are planning to increase texturing capacity in the US and Central America to better serve the growing demand for synthetic yarns in the CAFTA region and to support our mix enrichment strategies.  Because of the continued success and expected growth of REPREVE, we will also continue exploring backward integration opportunities into bottle washing.”

www.unifi.com

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