Shima Seiki
Hanson Wade

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Fibres/​Yarns

Q4 2020 sales results in-line with expectations at Unifi

Fourth quarter 2020 sales results in-line with expectations, with strong cash generation and significantly improved liquidity

7th August 2020

Knitting Industry
 |  Greensboro, NC

Knitted Outerwear, Intimate Apparel, Sports/​Activewear, Swimwear/​Beachwear

© Dreamstime.

Unifi, Inc. a leading innovator in recycled and synthetic yarns, today released operating results for the fourth fiscal quarter and fiscal year ended 28 June 2020, which reflect significant market disruptions as a result of the COVID-19 pandemic. The company did not provide guidance for the quarter ended 28 June 2020.

Eddie Ingle, Chief Executive Officer of Unifi, commented: "By the end of March 2020, the pandemic started to impact our apparel and automotive customers as they shut down or significantly curtailed operations. Since April 2020, monthly sales have improved sequentially, including July 2020, the best month since March 2020.  At the onset of the pandemic, our management team prioritized safety and took measures to improve our liquidity and cash position while maintaining our long-term focus on innovation and sustainability.”

“During the just completed quarter, we generated significant cash from operations while reducing inventory levels and operating costs.  These actions, combined with a joint venture divestiture, allowed for significant debt reduction and an increase in cash. I am confident that our diverse global operations, strong management team, and solid financial position will enable us to overcome these current challenges and regain our momentum as we progress through fiscal 2021. I'm proud to return to Unifi and to have the opportunity to lead this great company through the next stage of its life cycle."

Fourth Quarter Fiscal 2020 Overview

Net sales of $86.1 million decreased year-over-year from $179.5 million in fiscal 2019. Revenues from REPREVE Fiber products represented 28% of consolidated net sales.Operating loss was $20.9 million, compared to operating income of $5.3 million in the fourth quarter of fiscal 2019, driven by lower sales and lower fixed cost absorption.

Net loss of $20.2 million, or $1.10 loss per share, compared to net income of $1.0 million, or earnings per share ("EPS") of $0.05 for the fourth quarter of fiscal 2019.Adjusted EBITDA2 decreased to negative $14.0 million, compared to positive $12.7 million in the fourth quarter of fiscal 2019.

Operating cash flows were $20.6 million, an increase of $11.8 million from the fourth quarter of fiscal 2019; full year fiscal 2020 operating cash flows were $52.7 million, an increase of $45.4 million from fiscal 2019. On 29 April 2020, the company sold its 34% interest in Parkdale America, LLC for $60.0 million in cash. Proceeds were used to reduce leverage and increase cash reserves on the balance sheet.

On 28 June 2020, debt principal was $98.9 million, below $100.0 million for the first time since calendar 2014, and cash and cash equivalents were $75.3 million. Net Debt2 was $23.6 million on June 28, 2020, which is a reduction of $82.2 million since June 30, 2019 and is the lowest level in more than ten years. On 15 June 2020, Eddie Ingle re-joined the company as its new Chief Executive Officer.

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www.Unifi.com

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