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24th January 2013, Greensboro

Flagship Repreve drives Unifi


Unifi has released preliminary operating results for its second fiscal quarter ended December 23, 2012.  The Greensboro headquartered company reported net income of $2.4 million, compared to a net loss of $7.6 million, for the prior year fiscal quarter ended December 25, 2011.  Net sales increased $5.0 million, or 3.0%, to $172 million for the December 2012 quarter, compared to net sales of $167 million for the December 2011 quarter.

Roger Berrier, President and Chief Operating Officer of Unifi, said that the company’s Repreve recycled fibre has been a flagship and success story for the company and that the company is taking a more active approach by marketing to consumers and educating them about the benefits of recycling and choosing products made with recycled content. 

Quarter highlights

Highlights for the December 2012 quarter over prior year quarter results include the following:

  • Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) improved $4.8 million to $12.2 million;
  • Gross profit improved $5.8 million as a result of volume growth in each of the company's operating segments;
  • Conversion margins improved as a result of the increased volumes in the company's premier value-added portfolio; and
  • Interest expense decreased $2.9 million as a result of the continuing execution of the company's deleveraging strategy.

The company reported net income of $4.7 million, or $0.23 per share, for the six months ended December 23, 2012, compared to a net loss of $7.3 million, or $0.36 per share, for the prior year period. 

Net sales increased $6.8 million, or 2.0%, to $345 million for the first six months of fiscal year 2013 compared to net sales of $338 million for the prior year period.  Results for the first six months of fiscal 2013 were negatively impacted by a $3.8 million reduction in earnings from the company's equity investment in Parkdale America, caused by margin pressures related to the softness in the cotton apparel market and differences in the recognition of earnings under the Farm Bill's economic adjustment payments program.

"The results in the current quarter reflect the company's ability to drive financial improvement in our core business through disciplined process improvement across all of our operating segments and the success of our mix enrichment strategy domestically," said Bill Jasper, Chairman and CEO of Unifi. 

"Higher capacity utilization rates and moderating raw materials pricing compared to the prior year quarter resulted in lower operating costs and improved conversion margins.  Although we are encouraged that the U.S. economy continued to grow at a modest pace during the December 2012 quarter, we will continue to closely manage our operating rates and inventory in order to respond quickly to any changes in retail demand."

Commenting further on the success of Repreve, Roger Berrier, President and Chief Operating Officer of Unifi, added: "Since Repreve is in many winter sports products from companies such as Patagonia, The North Face and Polartec, we will be the recycling partner for X Games Aspen, which will air on ESPN from January 24, 2013 to January 27, 2013.  We believe that this exposure will help accelerate the momentum that we have for Repreve with our brand and retail partners."

Consumer awareness campaign

This month, Unifi launched its first ever consumer awareness campaign. Repreve will be encouraging X Games fans to lighten their impact by recycling more, and by choosing products made with Repreve recycled fibre. 

 As proud recycling partner of X Games Aspen 2013, Repreve aims to reach eco-conscious consumers with an important message – ‘Repreve - what's in it... that makes products green’. A TV spot, shot on the slopes of Snowbird, Utah, will feature Elena Hight, two-time U.S. Olympic competitor and X Games SuperPipe medalist.

To round out the campaign, Unifi has launched a consumer-focused Repreve web site. The new site will strongly feature brands and products that use Repreve, with a product directory and photos of people using Repreve based products. Special features and info graphics convey the importance of recycling, looking for Repreve when you shop, and buying recycled products.

Thousands of Repreve green beanies will be handed out during the Winter X Games in Aspen; helping to tell Repreve’s story – ‘It's What's In It... that makes it recycled’.   Each beanie is made from 6 recycled plastic bottles. 




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