UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8‑K
CURRENT
REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date
of earliest event reported):
August
3, 2006
UNIFI, INC.
(Exact name of
registrant as specified in its charter)
|
New
York |
1-10542 |
11-2165495 |
7201 West Friendly
Avenue
Greensboro, North
Carolina 27410
(Address
of principal executive offices)
(336) 294-4410
(Registrant's
telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
- -------------------------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
==========================================================
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 3, 2006, Unifi, Inc. (the "Registrant") issued a press release announcing the financial results for its fourth quarter and fiscal year ending June 25, 2006. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.
The information included herein, as well as Exhibit 99.1 referenced herein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
|
EXHIBIT NO. |
DESCRIPTION OF EXHIBIT |
|
99.1 |
News Release disseminated on August 3, 2006 by Unifi, Inc. announcing the financial results for its fourth quarter and fiscal year ending June 25, 2006. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNIFI, INC.
By:
/s/ CHARLES F. MCCOY
Charles
F. McCoy
Vice President, Secretary and General Counsel
Dated: August 3, 2006
INDEX TO EXHIBITS
|
EXHIBIT NO. |
DESCRIPTION OF EXHIBIT |
|
99.1 |
News Release disseminated on August 3, 2006 by Unifi, Inc. announcing the financial results for its fourth quarter and fiscal year ending June 25, 2006. |
EXHIBIT 99.1
For more information, contact:
William M. Lowe, Jr.
Vice President
Chief Operating Officer
Chief Financial Officer
(336) 316-5664
Unifi Announces Fourth Quarter Results
GREENSBORO, N.C. - August 3, 2006 - Unifi, Inc. (NYSE:UFI), today released operating results for its fourth quarter and fiscal year ended June 25, 2006.
Net income for the current quarter, including discontinued operations, was a net loss of $5.4 million or $0.10 per share, which is an improvement over a net loss of $9.0 million or $0.17 per share for the prior year June quarter. Net income for the current quarter was negatively impacted by a pre-tax loss of $2.9 million associated with the early extinguishment of debt. The Company also reported a net loss of $14.4 million or $0.28 per share for the 2006 fiscal year, which represents an improvement over a net loss of $41.2 million or $0.79 per share for the 2005 fiscal year.
Excluding discontinued operations and extraordinary items, the Company reported a net loss from continuing operations of $5.2 million or $0.10 per share compared to a net loss of $12.4 million or $0.24 per share for the prior year June quarter. The Company also reported a net loss from continuing operations of $14.7 million or $0.28 per share for the 2006 fiscal year, which compares favorably to the net loss of $19.7 million or $0.38 per share for the 2005 fiscal year.
"Our results for the current fiscal year mark the second straight year of improvement. We have reduced our net loss by $55.4 million, which improvement has been driven by continued successful execution of our internal plans," said Bill Lowe, Chief Operating Officer and CFO for Unifi. "We also successfully refinanced our long-term debt during this last fiscal quarter providing the flexibility and time to execute our longer-term external strategies."
-continued-
Unifi Announces Fourth Quarter Results - page 2
Net sales for the June quarter were $183.2 million, a decrease of $17.2 million or 8.6 percent compared to net sales of $200.4 million for the prior year June quarter. Net sales of $738.8 million for the 2006 fiscal year represent a decrease of $55.0 million, or 6.9 percent, over 2005 fiscal year net sales of $793.8 million.
Brian Parke, Chairman and CEO for Unifi, said, "In an environment of rising raw material prices, the ability to exceed our forecast and improve the results of our underlying business during the 2006 fiscal year, reflects the soundness of the strategies that have been in place for more than two years. We will continue to stay the course in terms of our domestic and global growth plans, as we evaluate and pursue additional opportunities to consolidate the domestic industry. We remain keenly aware of the need to return to profitability and create value to our shareholders."
Unifi, Inc. is a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials. The Company adds value to the supply chain and enhances consumer demand for its products through the development and introduction of branded yarns that provide unique performance, comfort and aesthetic advantages. Key Unifi brands include, but are not limited to: Sorbtek®, A.M.Y.®, Mynx® UV, Reflexx®, MicroVista® and Satura®. Unifi's yarns and brands are readily found in home furnishings, apparel, legwear and sewing thread, as well as industrial, automotive, military and medical applications. For more information about Unifi, visit http://www.unifi.com.
###
Financial Statements to Follow
Unifi Announces Fourth Quarter Results - page 3
|
UNIFI, INC. |
||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
||
|
(Unaudited) (In Thousands Except Per Share Data) |
|
|
||
|
For the Quarters Ended |
For the Fiscal Years Ended |
|||
|
June 25, 2006 |
June 26, 2005 |
June 25, 2006 |
June 26, 2005 |
|
|
Net sales |
$ 183,208 |
$ 200,428 |
$ 738,825 |
$ 793,796 |
|
Cost of sales |
171,348 |
199,338 |
696,055 |
762,717 |
|
Selling, general & administrative expenses |
10,402 |
11,663 |
41,534 |
42,211 |
|
Provision (recovery) for bad debts |
(93) |
8,133 |
1,256 |
13,172 |
|
Interest expense |
5,203 |
5,361 |
19,247 |
20,575 |
|
Interest income |
(902) |
(801) |
(4,489) |
(2,152) |
|
Other (income) expense, net |
(574) |
(1,053) |
(3,118) |
(2,300) |
|
Equity in (earnings) losses of unconsolidated affiliates |
453 |
(653) |
(825) |
(6,938) |
|
Minority interest income |
- |
(86) |
- |
(530) |
|
Restructuring charges (recovery) |
(283) |
(341) |
(254) |
(341) |
|
Write down of long-lived assets |
51 |
603 |
2,366 |
603 |
|
Loss from early extinguishment of debt |
2,949 |
- |
2,949 |
- |
|
Loss from continuing operations before income taxes and extraordinary item |
(5,346) | (21,736) | (15,896) | (33,221) |
|
Benefit for income taxes |
(147) |
(9,320) |
(1,170) |
(13,483) |
|
Loss from continuing operations before extraordinary item |
(5,199) | (12,416) | (14,726) | (19,738) |
|
Income (loss) from discontinued operations, net of tax |
(196) |
3,607 |
360 |
(22,644) |
|
Extraordinary gain (loss)- net of taxes of $0 |
- |
(185) |
- |
1,157 |
|
Net loss |
$ (5,395) |
$ (8,994) |
$ (14,366) |
$ (41,225) |
|
Earnings (losses) per common share (basic and diluted): |
||||
|
Net loss - continuing operations |
$ (0.10) |
$ (0.24) |
$ (0.28) |
$ (0.38) |
|
Net income (loss) - discontinued |
- |
0.07 |
- |
(0.43) |
|
Extraordinary gain (loss)- net of |
- |
- |
- |
0.02 |
|
Net loss |
$ (0.10) |
$ (0.17) |
$ (0.28) |
$ (0.79) |
|
Average basic and diluted shares outstanding |
52,190 |
52,126 |
52,155 |
52,106 |
-continued-
Unifi Announces Fourth Quarter Results - page 4
|
UNIFI, INC. |
||
|
CONSOLIDATED BALANCE SHEETS |
||
|
(Unaudited) (In Thousands) |
||
|
June 25, 2006 |
June 26, 2005 |
|
|
Assets |
||
|
Cash and cash equivalents |
$ 35,317 |
$ 105,621 |
|
Receivables, net |
93,236 |
106,437 |
|
Inventories |
116,018 |
110,827 |
|
Deferred income taxes |
11,739 |
14,578 |
|
Assets held for sale |
15,419 |
32,536 |
|
Restricted cash |
- |
2,766 |
|
Other current assets |
9,229 |
15,590 |
|
Total current assets |
280,958 |
388,355 |
|
Property, plant and equipment |
239,696 |
279,732 |
|
Investments in unconsolidated affiliates |
190,217 |
160,675 |
|
Other noncurrent assets |
21,766 |
16,613 |
|
$ 732,637 |
$ 845,375 |
|
|
Liabilities and Shareholders' Equity |
||
|
Accounts payable |
$ 68,888 |
$ 62,666 |
|
Accrued expenses |
23,869 |
45,618 |
|
Income taxes payable |
2,303 |
2,292 |
|
Current maturities of long-term debt |
||
|
and other current liabilities |
6,330 |
35,339 |
|
Total current liabilities |
101,390 |
145,915 |
|
Long-term debt and other liabilities |
202,433 |
259,790 |
|
Deferred income taxes |
45,861 |
55,913 |
|
Minority interest |
- |
182 |
|
Shareholders' equity |
382,953 |
383,575 |
|
$ 732,637 |
$ 845,375 |
-continued-
Unifi Announces Fourth Quarter Results - page 5
|
UNIFI, INC. |
|
|
|
|
||
|
(Unaudited) (In Thousands) |
|
|
|
|
Fiscal Years Ended |
|
|
June 25, 2006 |
June 26, 2005 |
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
$ 105,621 |
$ 65,221 |
|
Operating activities: |
||
|
Net loss |
(14,366) |
(41,225) |
|
Adjustments to reconcile net loss to net cash provided |
||
|
by continuing operating activities: |
||
|
Extraordinary gain |
- |
(1,157) |
|
Loss from discontinued operations |
(360) |
22,644 |
|
Net (income) loss of unconsolidated equity affiliates, net of |
1,945 |
(2,302) |
|
Depreciation |
48,669 |
51,542 |
|
Amortization |
1,276 |
1,350 |
|
Net (gain) loss on asset sales |
(1,755) |
(1,770) |
|
Non-cash portion of loss from early extinguishment of debt |
1,793 |
- |
|
Non-cash portion of restructuring charges (recovery) |
(254) |
(341) |
|
Non-cash write down of long-lived assets |
2,366 |
603 |
|
Deferred income tax |
(8,153) |
(19,057) |
|
Provision for bad debts and quality claims |
1,256 |
13,172 |
|
Other |
3,368 |
(2,089) |
|
Change in assets and liabilities, excluding |
||
|
effects of acquisitions and foreign currency |
||
|
Adjustments |
(5,817) |
7,415 |
|
Net cash provided by continuing operating activities |
29,968 |
28,785 |
|
Investing activities: |
||
|
Capital expenditures |
(11,988) |
(9,422) |
|
Investment in equity affiliates |
(30,634) |
(1,358) |
|
Return of capital from equity affiliates |
- |
6,138 |
|
Investment in foreign restricted assets |
171 |
388 |
|
Collection of notes receivable |
404 |
520 |
|
Increase in notes receivable |
- |
(139) |
|
Proceeds from sale of capital assets |
10,093 |
2,290 |
|
Change in restricted cash |
2,766 |
(2,766) |
|
Other |
(42) |
(342) |
|
Net cash used in investing activities |
(29,230) |
(4,691) |
|
Financing activities: |
||
|
Payment of long-term debt |
(273,134) |
- |
|
Borrowing of long-term debt |
190,000 |
- |
|
Debt issuance costs |
(8,041) |
- |
|
Issuance of Company stock |
176 |
104 |
|
Other |
530 |
(22) |
|
Net cash provided by (used in) financing activities |
(90,469) |
82 |
|
Cash flows of discontinued operations: |
||
|
Operating cash flow |
(3,337) |
(6,273) |
|
Investing cash flow |
22,028 |
13,902 |
|
Net cash provided by discontinued operations |
18,691 |
7,629 |
|
Effect of exchange rate changes on cash and cash |
||
|
equivalents |
736 |
8,595 |
|
Net increase (decrease) in cash and cash equivalents |
(70,304) |
40,400 |
|
Cash and cash equivalents at end of year |
$ 35,317 |
$ 105,621 |
|
|
||
-continued-
Unifi Announces Fourth Quarter Results - page 6
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements included herein contain forward-looking statements within the meaning of federal security laws about the Company's financial condition and results of operations that are based on management's current expectations, estimates and projections about the markets in which the Company operates, as well as management's beliefs and assumptions. Words such as "expects," "anticipates," "believes," "estimates," variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.
Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to, availability, sourcing and pricing of raw materials, pressures on sales prices and volumes due to competition and economic conditions, reliance on and financial viability of significant customers, operating performance of joint ventures, alliances and other equity investments, technological advancements, employee relations, changes in construction spending, capital expenditures and long-term investments (including those related to unforeseen acquisition opportunities), continued availability of financial resources through financing arrangements and operations, outcomes of pending or threatened legal proceedings, negotiation of new or modifications of existing contracts for asset management and for property and equipment construction and acquisition, regulations governing tax laws, other governmental and authoritative bodies' policies and legislation, the continuation and magnitude of the Company's common stock repurchase program and proceeds received from the sale of assets held for disposal. In addition to these representative factors, forward-looking statements could be impacted by general domestic and international economic and industry conditions in the markets where the Company competes, such as changes in currency exchange rates, interest and inflation rates, recession and other economic and political factors over which the Company has no control. Other risks and uncertainties may be described from time to time in the Company's other reports and filings with the Securities and Exchange Commission.
-end-