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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): April 27, 2022

 

UNIFI, INC.

(Exact name of registrant as specified in its charter)

 

 

New York	1-10542	11-2165495
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
7201 West Friendly Avenue Greensboro, North Carolina		27410
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (336) 294-4410

 

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))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.10 per share		UFI		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b‑2 of this chapter).  

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 

 

 

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Item 2.02.Results of Operations and Financial Condition.

 

On April 27, 2022, the Company issued a press release announcing its operating results for the fiscal third quarter ended March 27, 2022, a copy of which is attached hereto as Exhibit 99.1.  

 

Item 7.01.Regulation FD Disclosure.

 

On April 28, 2022, the Company will host a conference call to discuss its operating results for the fiscal third quarter ended March 27, 2022.  A copy of the materials prepared for use by management during this conference call is attached hereto as Exhibit 99.2.

 

Item 9.01.Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.		Description
99.1		Press Release of Unifi, Inc., dated April 27, 2022.
99.2		Earnings Call Presentation Materials.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

The information in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

 

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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.
Date:  April 27, 2022		By:	/s/ CRAIG A. CREATURO
			Craig A. Creaturo
			Executive Vice President & Chief Financial Officer

 

 

 

Exhibit 99.1

Unifi, Inc., Makers of REPREVE^®, Announces Third Quarter Fiscal 2022 Results, Consistent with Expectations

 

Sales and profitability in line with expectations, demonstrating underlying strength and momentum across the business

 

GREENSBORO, N.C., April 27, 2022 – Unifi, Inc. (NYSE: UFI), makers of REPREVE^® and one of the world’s leading innovators in recycled and synthetic yarns, today released operating results for the third fiscal quarter ended March 27, 2022.

 

Third Quarter Fiscal 2022 Overview

 

 

Eddie Ingle, Chief Executive Officer of Unifi, said, “Our third quarter fiscal 2022 results were consistent with our expectations, with REPREVE^® Fiber products comprising 36% of consolidated sales.  This marks our second consecutive quarter of over $200.0 million in sales.  We implemented further selling price adjustments and demonstrated solid progress against the difficult U.S. labor environment, exhibiting a definitive improvement in our Polyester and Nylon Segments’ gross margins since the December 2021 quarter.”  

Ingle continued, “We are pleased with the gross margin improvement and we expect to continue making progress in the quarters ahead.  Although we are carrying significant momentum into the fourth quarter, the

¹ Adjusted EPS, Adjusted EBITDA and Net Debt are non-GAAP financial measures. The schedules included in this press release reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure.

 

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lockdowns in China will adversely impact our overall profitability.  Fortunately, we expect our constant pursuit of innovation and sustainability, combined with our regional competitive advantages, to help offset the temporary shortfall in China and continue to drive long-term growth for Unifi.”

 

Third Quarter Fiscal 2022 Compared to Third Quarter Fiscal 2021

 

Net sales increased 12.3% to $200.8 million, from $178.9 million, primarily driven by strong pricing intiatives for each segment, in response to higher input costs.  The Polyester and Nylon Segments generated double-digit percentage increases in revenue due to robust product demand, despite some small labor challenges that dampened sales volume performance.  The Asia and Brazil Segments also increased revenue, albeit under softer market conditions than the prior year period when localized lockdowns and logistics issues were not as prevalent.  REPREVE^® Fiber products comprised 36% of consolidated net sales and continue to meet the ever-growing demand for sustainable textiles.

 

Gross profit decreased 25.2% to $19.1 million from $25.6 million. Polyester Segment gross profit decreased $3.3 million as a result of rising input costs and less efficient production.  Brazil Segment gross profit decreased $4.6 million, which was consistent with the Company’s prior expectations as the local market dynamics have exhibited some normalization from the exceptionally strong environment in the prior year period.

 

Operating income decreased to $5.8 million, from $8.6 million, primarily due to the decrease in gross profit, partially offset by $0.9 million of foreign currency gains in fiscal 2022 and a $2.6 million non-cash loss on asset disposals in fiscal 2021.  Operating income for the third quarter of fiscal 2021 included $4.0 million of higher incentive compensation expense.

 

Net income was $2.1 million, or $0.11 per share, compared to $4.8 million, or $0.25 per share, impacted by a higher effective tax rate in connection with a U.S. net operating loss for which the full benefit is currently unrealizable.  On an adjusted basis, EPS was $0.14, which includes a revision to the fiscal 2021 estimated recovery of non-income taxes in Brazil, compared to $0.25 in the prior year period.  Adjusted EBITDA was $12.2 million, compared to $15.9 million, consistent with the change in operating income. Adjusted EBITDA includes the aforementioned estimate revision for non-income taxes in Brazil.

 

Debt principal was $97.3 million on March 27, 2022 compared to $86.9 million on June 27, 2021.  In connection with previously anticipated investments in new yarn texturing innovation and working capital to support future growth, cash and cash equivalents decreased to $53.0 million on March 27, 2022, from $78.3 million on June 27, 2021. Accordingly, Net Debt¹ was $44.3 million on March 27, 2022 compared to $8.6 million on June 27, 2021.

 

 

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Year-To-Date Fiscal 2022 Compared to Year-To-Date Fiscal 2021

 

Net sales were $598.2 million, compared to $483.1 million, an increase of 23.8%. Revenues from REPREVE^® Fiber products represented 38% of consolidated net sales, compared to 36%. Gross margin was 10.4%, compared to 13.7%. Operating income was $23.6 million, compared to $24.6 million. Net income was $11.7 million, compared to $15.7 million.

 

 

Outlook

 

The following reflect the Company’s updated expectations for fiscal 2022.

 

Ingle concluded, “While renewed global volatility amid lockdowns in Asia mutes our expectations for the fourth quarter, we remain optimistic about our momentum towards the strategic initiatives that we outlined in pursuit of our fiscal 2025 targets.”

 

Third Quarter Fiscal 2022 Earnings Conference Call

 

The Company will provide additional commentary regarding its third quarter fiscal 2022 results and other developments during its earnings conference call on April 28, 2022, at 8:30 a.m., Eastern Time.  The call can be accessed via a live audio webcast on the Company’s website at http://investor.unifi.com.  Additional supporting materials and information related to the call will also be available on the Company’s website.

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About Unifi

Unifi, Inc. (NYSE: UFI) is a global textile solutions provider and one of the world's leading innovators in manufacturing synthetic and recycled performance fibers. Through REPREVE^®, one of Unifi's proprietary technologies and the global leader in branded recycled performance fibers, Unifi has transformed more than 30 billion plastic bottles into recycled fiber for new apparel, footwear, home goods and other consumer products. Unifi continually innovates technologies to meet consumer needs in moisture management, thermal regulation, antimicrobial protection, UV protection, stretch, water resistance and enhanced softness. Unifi collaborates with many of the world's most influential brands in the sports apparel, fashion, home, automotive and other industries. For more information about Unifi, visit www.Unifi.com.

Contact information:

Davis Snyder

Alpha IR Group

312-445-2870

UFI@alpha-ir.com

Financial Statements, Business Segment Information and Reconciliations of Reported Results to Adjusted Results to Follow

 

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

 

 

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CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

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BUSINESS SEGMENT INFORMATION

(Unaudited)

(In thousands)

 

Net sales details for each reportable segment of the Company are as follows:

 

 

 

Gross profit details for each reportable segment of the Company are as follows:

 

 

 

 

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RECONCILIATIONS OF REPORTED RESULTS TO ADJUSTED RESULTS

(Unaudited)

(In thousands)

 

EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)

 

The reconciliations of the amounts reported under U.S. generally accepted accounting principles (“GAAP”) for Net income to EBITDA and Adjusted EBITDA are set forth below.

 

 

 

Adjusted Net Income and Adjusted EPS (Non-GAAP Financial Measures)

The tables below set forth reconciliations of (i) income before income taxes (“Pre-tax Income”), provision for income taxes (“Tax Impact”), and net income (“Net Income”) to Adjusted Net Income and (ii) Diluted Earnings Per Share (“Diluted EPS”) to Adjusted EPS.  Rounding may impact certain of the below calculations.

 

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Net Debt (Non-GAAP Financial Measure)

 

Reconciliations of Net Debt are as follows:

 

Cash and cash equivalents

At March 27, 2022 and June 27, 2021, the Company’s domestic operations held approximately 1% and 48% of consolidated cash and cash equivalents, respectively.

REPREVE^® Fiber

REPREVE^® Fiber represents the Company's collection of fiber products on its recycled platform, with or without added technologies. Beginning in the fourth quarter of fiscal 2021, as a result of its annual review of products meeting the REPREVE^® Fiber definition, the Company began including certain product sales in the Asia Segment that were previously excluded from the REPREVE^® Fiber sales metric. Quarters 1, 2, and 3 of fiscal 2021 have been adjusted to reflect such sales, which resulted in a change of not more than 1% for any quarter.

 

 

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Non-GAAP Financial Measures

Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Net Debt (together, the “non-GAAP financial measures”).

The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. We may, from time to time, modify the amounts used to determine our non-GAAP financial measures.

We believe that these non-GAAP financial measures better reflect Unifi’s underlying operations and performance and that their use, as operating performance measures, provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets, among otherwise comparable companies.

Management uses Adjusted EBITDA (i) as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of (a) items directly related to our asset base (primarily depreciation and amortization) and (b) items that we would not expect to occur as a part of our normal business on a regular basis; (ii) for planning purposes, including the preparation of our annual operating budget; (iii) as a valuation measure for evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures, and expand our business; and (iv) as one measure in determining the value of other acquisitions and dispositions. Adjusted EBITDA is a key performance metric utilized in the determination of variable compensation. We also believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because it serves as a high-level proxy for cash generated from operations.

Management uses Adjusted Net Income and Adjusted EPS (i) as measurements of net operating performance because they assist us in comparing such performance on a consistent basis, as they remove the impact of (a) items that we would not expect to occur as a part of our normal business on a regular basis and (b) components of the provision for income taxes that we would not expect to occur as a part of our underlying taxable operations; (ii) for planning purposes, including the preparation of our annual operating budget; and (iii) as measures in determining the value of other acquisitions and dispositions.

Management uses Net Debt as a liquidity and leverage metric to determine how much debt would remain if all cash and cash equivalents were used to pay down debt principal.

In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, these non-GAAP financial measures should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. Investors should compensate for these limitations by relying primarily on our GAAP results and using these measures only as supplemental information.

 

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Cautionary Statement on Forward-Looking Statements

Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of Unifi that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management.  An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “plan,” “estimate,” “project,” “expect,” “intend,” “seek,” “strive” and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements.  These statements are not statements of historical fact, and they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement.

Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing and pricing of raw materials; general domestic and international economic and industry conditions in markets where Unifi competes, including economic and political factors over which Unifi has no control; changes in consumer spending, customer preferences, fashion trends and end uses for products; the financial condition of Unifi’s customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages, extreme weather conditions and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including epidemics or pandemics such as the recent strain of coronavirus; the success of Unifi’s strategic business initiatives; the volatility of financial and credit markets; the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain and motivate key employees; the impact of climate change or environmental, health and safety regulations; and the impact of tax laws, the judicial or administrative interpretations of tax laws and/or changes in such laws or interpretations.

All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control.  New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on Unifi.  Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in Unifi’s most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by Unifi with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.

-end-

 

 

Third Quarter Ended March 27, 2022 (Unaudited Results) April 27, 2022 Conference Call Presentation Exhibit 99.2

  2 Cautionary Statement on Forward-Looking Statements Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management. An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “plan,” “estimate,” “project,” “expect,” “intend,” “seek,” “strive” and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements. These statements are not statements of historical fact, and they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement. Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing and pricing of raw materials; general domestic and international economic and industry conditions in markets where the Company competes, including economic and political factors over which the Company has no control; changes in consumer spending, customer preferences, fashion trends and end uses for products; the financial condition of the Company’s customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages, extreme weather conditions and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including epidemics or pandemics such as the recent strain of coronavirus; the success of the Company’s strategic business initiatives; the volatility of financial and credit markets; the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain and motivate key employees; the impact of climate change or environmental, health and safety regulations; and the impact of tax laws, the judicial or administrative interpretations of tax laws and/or changes in such laws or interpretations. All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in the Company’s most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by the Company with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. Non-GAAP Financial Measures Certain non-GAAP financial measures are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Adjusted Working Capital and Net Debt (collectively, the “non-GAAP financial measures”). • EBITDA represents Net income before net interest expense, income tax expense, and depreciation and amortization expense. • Adjusted EBITDA represents EBITDA adjusted to exclude equity in loss of Parkdale America, LLC (“PAL”) and, from time to time, certain other adjustments necessary to understand and compare the underlying results of the Company. • Adjusted Working Capital represents receivables plus inventory and other current assets, less accounts payable and accrued expenses, which is an indicator of the Company’s production efficiency and ability to manage its inventory and receivables. • Net Debt represents debt principal less cash and cash equivalents. The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. The Company may, from time to time, modify the amounts used to determine its non-GAAP financial measures. We believe that these non-GAAP financial measures better reflect the Company’s underlying operations and performance and that their use, as operating performance measures, provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets, among otherwise comparable companies. Management uses Adjusted EBITDA (i) as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of (a) items directly related to our asset base (primarily depreciation and amortization) and (b) items that we would not expect to occur as a part of our normal business on a regular basis; (ii) for planning purposes, including the preparation of our annual operating budget; (iii) as a valuation measure for evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures and expand our business; and (iv) as one measure in determining the value of other acquisitions and dispositions. Adjusted EBITDA is a key performance metric utilized in the determination of variable compensation. We also believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because it serves as a high-level proxy for cash generated from operations. Management uses Adjusted Working Capital as an indicator of the Company’s production efficiency and ability to manage inventory and receivables. In the first quarter of fiscal 2019, in connection with changes to balance sheet presentation required by the adoption of new revenue recognition guidance, the Company updated the definition of Adjusted Working Capital to include Other current assets for current and historical calculations of the non-GAAP financial measure. Other current assets includes amounts capitalized for future conversion into inventory or receivables (e.g., vendor deposits and contract assets), and management believes that its inclusion in the definition of Adjusted Working Capital improves the understanding of the Company’s capital that is supporting production and sales activity. Management uses Net Debt as a liquidity and leverage metric to determine how much debt would remain if all cash and cash equivalents were used to pay down debt principal. In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, these non-GAAP financial measures should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. You should compensate for these limitations by relying primarily on our GAAP results and using these measures only as supplemental information.

3 Q3 FISCAL 2022 OVERVIEW Revenue performance consistent with expectations, reaching over $200 million for the second consecutive quarter as demand remains robust Profitability performance consistent with expectations Inflation and renewed global volatility pressure underlying momentum: Inflationary environment continued to impact U.S. margin performance and pricing levels Additional price adjustments are underway to address recent cost increases U.S. labor situation has improved Production inefficiencies remain, but labor metrics trended positively during the quarter Lockdowns across China will negatively impact sales and profitability for the Asia Segment in the fourth quarter of fiscal 2022 Momentum continues for new products, customer adoptions and co-branding: REPREVE® Fiber products comprised 36% of net sales for the quarter and 38% for the year-to-date period 25.6 million REPREVE® hangtags sent to brand customers during third quarter

4 REPREVE® FIBER SALES REPREVE® Fiber represents our collection of fiber products on our recycled platform, with or without added technologies. Annual Quarterly FY 2020 FY 2021 FY 2022 AS A % OF NET SALES

NET SALES OVERVIEW Three-Month Comparison (Q3 FY21 vs. Q3 FY22) 1 Approximates the impact of foreign currency translation nm – Not meaningful Note: The “Prior Period” ended on March 28, 2021. The “Current Period” ended on March 27, 2022. The Prior Period and the Current Period each contained 13 fiscal weeks. 5 (dollars in thousands) 1 YEAR-OVER-YEAR

6 nm – Not meaningful Note: The “Prior Period” ended on March 28, 2021. The “Current Period” ended on March 27, 2022. The Prior Period and the Current Period each contained 13 fiscal weeks. Three-Month Comparison (Q3 FY21 vs. Q3 FY22) GROSS PROFIT OVERVIEW (dollars in thousands) YEAR-OVER-YEAR

7 nm – Not meaningful Note: The “Prior Period” ended on December 26, 2021. The “Current Period” ended on March 27, 2022. The Prior Period and the Current Period each contained 13 fiscal weeks. Three-Month Comparison (Q2 FY22 vs. Q3 FY22) GROSS PROFIT OVERVIEW (dollars in thousands) SEQUENTIAL QUARTER

BALANCE SHEET HIGHLIGHTS Continued balance sheet discipline and significantly improved leverage ratio generate opportunities for organic growth. Capital allocation strategy remains balanced across: Organic growth FYs 2021 and 2022: New texturing technology Acquisitions FY 2021: Two bolt-on acquisitions Share repurchases FY 2022: $2.2 million (101,500 shares) Debt reduction FYs 2020 and 2021 8 (dollars in millions)

Building Momentum For Long-Term Growth FISCAL 2022 OUTLOOK 9 The following reflect the Company’s updated expectations for fiscal 2022. Sales volume and REPREVE® Fiber sales growth driving net sales to $810 million or more, which would represent an increase of 21% or more from the level achieved in fiscal 2021. Adjusted EBITDA to range between $54.0 million and $57.0 million, which reflects the adverse impacts of recent and ongoing COVID-related lockdowns in Asia and renewed global volatility. An effective tax rate between 45% and 55%, assuming no significant changes in existing tax legislation. Capital expenditures of approximately $40.0 million to $42.0 million, as the Company continues investing in new yarn texturing machinery within the U.S., El Salvador and Brazil. Such capital expenditure levels will be funded by cash on-hand and available financing arrangements and are inclusive of approximately $10.0 million to $12.0 million of routine annual maintenance.

NET SALES OVERVIEW Nine-Month Comparison (YTD FY21 vs. YTD FY22) 1 Approximates the impact of foreign currency translation nm – Not meaningful Note: The “Prior Period” ended on March 28, 2021. The “Current Period” ended on March 27, 2022. The Prior Period and the Current Period each contained 39 fiscal weeks. 10 1 (dollars in thousands) NINE MONTHS YEAR-TO-DATE

11 nm – Not meaningful Note: The “Prior Period” ended on March 28, 2021. The “Current Period” ended on March 27, 2022. The Prior Period and the Current Period each contained 39 fiscal weeks. Nine-Month Comparison (YTD FY21 vs. YTD FY22) GROSS PROFIT OVERVIEW (dollars in thousands) NINE MONTHS YEAR-TO-DATE

12 Investor Relations A.J. Eaker Vice President of Finance ajeaker@unifi.com Alpha IR Group 312-445-2870 UFI@alpha-ir.com WORKING TODAY FOR THE GOOD OF TOMORROW