Unifi, Inc. today released preliminary operating results for its first fiscal quarter ended September 27, 2009. The company declared that it had achieved its highest quarterly net income in seven years despite the effects of a severe global recession.

Unifi reported net income of $2.5 million or $0.04 per share for the first quarter of the 2010 fiscal year compared to a net loss of $6.3 million or $0.10 per share and a net loss of $676 thousand or $0.01 per share for the June 2009 and September 2008 quarters, respectively. The company also reported adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) of $15.1 million, which exceeds its revised guidance of $13 to $14 million and is a marked improvement in Adjusted EBITDA from the June 2009 and September 2008 quarters of $9.6 million and $13.9 million, respectively. Results for the quarter were positively impacted by the following:

A 570 basis point improvement in gross margin year-over-year, which reflects improvements made in both its conversion margins and its operating cost structure; continued volume growth in the company's polyester business from inventory levels coming back into alignment with retail demand in apparel and home furnishings; and market share gains in certain product categories both in the U.S. and Brazil.

Revenues for the first quarter increased 2.2% over the June 2009 quarter to $143 million, although they still remain $26 million below the September 2008 quarterly level of $169 million.

"We are pleased the operating results for the quarter exceeded targets and the Company was able to achieve its highest quarterly net income in seven years despite the effects of a severe global recession," said Bill Jasper, President and CEO of Unifi. "Now that the negative impact of the inventory de-stocking across our supply chains seems to have abated, we are seeing the benefits of our unwavering focus on our core strategies. These include our continuous improvement efforts to enhance margins, quality, and operating efficiencies, resulting in significantly improved operating performance, in spite of a 15 percent decline in year-over-year revenue."

Full Q1 results