Unifi has released preliminary results for the first quarter ended 29 September 2013 of its 2014 fiscal year.

Net income for the September 2013 quarter was $8.9 million, compared to net income of $2.3 million for the September 2012 quarter. This reflects gains from improved margins, lower net interest expenses and higher earnings from the company's unconsolidated equity affiliates.

Highlights

Adjusted EBITDA improved to $14.5 million for the September 2013 quarter from $13.8 million for the same period last year. Domestic gross margins at the same time improved significantly as a result of higher sales volumes, increased selling margins, and lower expenses for depreciation, the company reports. Earnings from the company's unconsolidated equity affiliates also increased to $5.5 million, compared to the prior year quarter, primarily attributable to Parkdale America.

Roger Berrier, President and Chief Operating Officer of Unifi, commented: “The success of Repreve continues to drive our global mix enrichment strategy as we provide recycled product solutions to brands and retailers.  Our overall business fundamentals remain positive and we feel confident in the continued strength of our underlying domestic performance, even against the backdrop of an economy that remains uncertain and a sluggish retail environment.”

Positive outlook

Although net sales decreased by 2.4% to $168.7 million for the September 2013 quarter compared to $172.9 million last year, net income has increased by $6.6 million.

The decline in overall net sales reflects stronger domestic volumes, the company reports, which were offset by declines in sales volumes for the company's international segment and the negative effects of the weakened currency in Brazil.

“We expect operating conditions in Brazil and China to improve and become more favorable as we move through the 2014 fiscal year, which will help yield better results from our international businesses,” said Berrier.

Strong start

“Improving year-over-year net income by $6.6 million during a quarter in which we experienced a decline in net sales demonstrates the results of our focus on driving financial improvement to our core business through lean manufacturing initiatives, enriching our product mix, and deriving value from sustainability based initiatives,” said Bill Jasper, Chairman and CEO of Unifi. 

“The positive operating results from the September 2013 quarter provide us with a strong start to our 2014 fiscal year and have enabled us to fund the company's strategic growth opportunities and continue our share repurchases.”

Unifi

Unifi is a multi-national manufacturing company that produces and sells textured and other processed yarns designed to meet customer specifications, and premier value-added yarns with enhanced performance characteristics.

In addition to its flagship Repreve products, a family of eco-friendly yarns made from recycled materials, key Unifi brands include: Sorbtek, Reflexx, AIO - all-in-one performance yarns, Satura, Augusta A.M.Y., Mynx UV, Microvista and Microvista.

Unifi's yarns are readily found in the products of major brands in the apparel, hosiery, automotive, home furnishings, industrial and other end use markets. 

www.unifi.com