UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
|
(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:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
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. ☐
Item 2.02. Results of Operations and Financial Condition.
On January 31, 2024, the Company issued a press release announcing its operating results for the fiscal second quarter ended December 31, 2023, a copy of which is attached hereto as Exhibit 99.1.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 30, 2024, the Board of Directors of the Company appointed Andrew J. ("A.J.") Eaker as the Company's Executive Vice President, Chief Financial Officer (principal financial officer and principal accounting officer), and Treasurer, effective immediately. Mr. Eaker, age 38, previously served as Treasurer and Interim Chief Financial Officer (interim principal financial officer and interim principal accounting officer) of the Company since August 25, 2023, Treasurer of the Company since December 2022, and Vice President of Finance for the Company’s primary domestic operating subsidiary since June 2017. A copy of the press release regarding Mr. Eaker's appointment as Chief Financial Officer is filed herewith as Exhibit 99.3.
There are no arrangements or understandings between Mr. Eaker and any other persons pursuant to which he was selected as an officer. Mr. Eaker has no family relationships with any of the Company’s directors or executive officers. There are no transactions involving the Company and Mr. Eaker that the Company would be required to report pursuant to Item 404(a) of Regulation S-K.
Item 7.01. Regulation FD Disclosure.
On February 1, 2024, the Company will host a conference call to discuss its operating results for the fiscal second quarter ended December 31, 2023. 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 |
|
|
|
|
|
99.2 |
|
|
|
|
|
99.3 |
|
|
|
|
|
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.
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: |
January 31, 2024 |
By: |
/s/ GREGORY K. SIGMON |
|
|
|
Gregory K. Sigmon |
Exhibit 99.1
UNIFI®, Makers of REPREVE®, Announces Second Quarter Fiscal 2024 Results
Expansion of cost containment efforts and renewed commercial initiatives provide optimism for calendar 2024
Business remains well positioned for apparel demand recovery in calendar 2024
GREENSBORO, N.C., January 31, 2024 – Unifi, Inc. (NYSE: UFI) (together with its consolidated subsidiaries, “UNIFI”), makers of REPREVE and one of the world’s leading innovators in recycled and synthetic yarns, today released operating results for the second fiscal quarter ended December 31, 2023.
Second Quarter Fiscal 2024 Overview
Adjusted Net Loss, 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.
Eddie Ingle, Chief Executive Officer of Unifi, Inc., stated, “Our second quarter fiscal 2024 results were in line with our expectations and reflect sequential improvement in our underlying gross profit performance, despite the negative impact from the ongoing challenges in the apparel industry and its supply chains. The recent strategic actions aimed at further reducing ongoing costs, optimizing our operations, and enhancing profitability will strengthen our position for the anticipated recovery in apparel demand in calendar 2024.”
Ingle continued, “Our focus remains on maintaining a disciplined approach to cost management and leveraging operational efficiencies in the short-term environment, but we will continue to invest prudently to support long-term growth and innovation for greater revenues and accretive margins. We are excited about the opportunities across the globe that expand our beyond apparel initiatives and build on our REPREVE Fiber business.”
Second Quarter Fiscal 2024 Compared to Second Quarter Fiscal 2023
Net sales of $136.9 million were relatively unchanged compared to $136.2 million, primarily due to lower average selling prices resulting from lower raw material costs. The Americas Segment experienced modest volume improvement, although sales levels remain below historical averages as a result of weakened demand for fiber in the apparel sector. The Brazil Segment maintained its increased market share with strong sales volumes while facing ongoing pricing pressures from competitive imports. The Asia Segment continued to experience weak apparel demand levels but attained a diverse sales mix.
Gross profit of $1.6 million improved significantly compared to ($8.0) million. Americas Segment gross profit increased $6.3 million, primarily driven by variable cost management efforts and more stable raw material costs. Brazil Segment gross profit improved $1.8 million from higher sales volumes, which were partially offset by unfavorable import pricing dynamics. The Asia Segment continued to demonstrate portfolio strength with a rich mix of REPREVE products, achieving a gross profit increase of $1.5 million and 250 basis points of incremental gross margin.
Operating loss was $17.6 million compared to $19.8 million, aligning with the improvement in gross profit, partially offset by $5.1 million of restructuring costs and $1.3 million of bad debt expense. Net loss was $19.8 million compared to $18.0 million. Adjusted EPS was ($0.81) and Adjusted EBITDA was ($5.5) million, which exclude the $5.1 million of restructuring costs, comprised of $2.7 million related to the dissolution of an unprofitable joint venture and $2.4 million of severance costs.
Fiscal 2024 Outlook
UNIFI expects the following third quarter fiscal 2024 results:
Additionally, UNIFI expects sequential improvement from the third quarter to the fourth quarter of fiscal 2024.
Ingle concluded, “While the apparel industry recession has persisted longer than we anticipated, we believe we will see an improved competitive environment moving forward. As one of the strongest textile solutions providers in the world, we stand to expand our global market share and accelerate our financial performance as our industry returns to growth. Further, our recently announced cost reset and commercial improvements should amplify quarterly revenue and earnings on a sequential basis. Our potential in Asia and Brazil continues to shine, demonstrating the strength of our dynamic global business model. As the demand in the Americas normalizes and the industry stabilizes, the results of our recent efforts to strengthen the business will become even more evident as we close our fiscal 2024.”
Second Quarter Fiscal 2024 Earnings Conference Call
UNIFI will provide additional commentary regarding its second quarter 2024 results and other developments during its earnings conference call on February 1, 2024, at 8:30 a.m., Eastern Time. The call can be accessed via a live audio webcast on UNIFI’s website at http://investor.unifi.com. Additional supporting materials and information related to the call will also be available on UNIFI’s website.
###
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 40 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 or Darren Yeun
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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
||||
Net sales |
|
$ |
136,917 |
|
|
$ |
136,212 |
|
|
$ |
275,761 |
|
|
$ |
315,731 |
|
Cost of sales |
|
|
135,281 |
|
|
|
144,212 |
|
|
|
274,700 |
|
|
|
317,168 |
|
Gross profit (loss) |
|
|
1,636 |
|
|
|
(8,000 |
) |
|
|
1,061 |
|
|
|
(1,437 |
) |
Selling, general and administrative expenses |
|
|
12,408 |
|
|
|
11,748 |
|
|
|
24,017 |
|
|
|
23,521 |
|
Provision (benefit) for bad debts |
|
|
1,289 |
|
|
|
(156 |
) |
|
|
1,080 |
|
|
|
18 |
|
Restructuring costs |
|
|
5,101 |
|
|
|
— |
|
|
|
5,101 |
|
|
|
— |
|
Other operating expense (income), net |
|
|
481 |
|
|
|
226 |
|
|
|
535 |
|
|
|
(463 |
) |
Operating loss |
|
|
(17,643 |
) |
|
|
(19,818 |
) |
|
|
(29,672 |
) |
|
|
(24,513 |
) |
Interest income |
|
|
(697 |
) |
|
|
(514 |
) |
|
|
(1,278 |
) |
|
|
(1,061 |
) |
Interest expense |
|
|
2,613 |
|
|
|
1,889 |
|
|
|
5,098 |
|
|
|
3,136 |
|
Equity in earnings of unconsolidated affiliates |
|
|
(93 |
) |
|
|
(86 |
) |
|
|
(293 |
) |
|
|
(381 |
) |
Loss before income taxes |
|
|
(19,466 |
) |
|
|
(21,107 |
) |
|
|
(33,199 |
) |
|
|
(26,207 |
) |
Provision (benefit) for income taxes |
|
|
380 |
|
|
|
(3,070 |
) |
|
|
(83 |
) |
|
|
(336 |
) |
Net loss |
|
$ |
(19,846 |
) |
|
$ |
(18,037 |
) |
|
$ |
(33,116 |
) |
|
$ |
(25,871 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per common share: |
|
|||||||||||||||
Basic |
|
$ |
(1.10 |
) |
|
$ |
(1.00 |
) |
|
$ |
(1.83 |
) |
|
$ |
(1.44 |
) |
Diluted |
|
$ |
(1.10 |
) |
|
$ |
(1.00 |
) |
|
$ |
(1.83 |
) |
|
$ |
(1.44 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|||||||||||||||
Basic |
|
|
18,110 |
|
|
|
18,034 |
|
|
|
18,097 |
|
|
|
18,017 |
|
Diluted |
|
|
18,110 |
|
|
|
18,034 |
|
|
|
18,097 |
|
|
|
18,017 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
December 31, 2023 |
|
|
July 2, 2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
35,979 |
|
|
$ |
46,960 |
|
Receivables, net |
|
|
69,583 |
|
|
|
83,725 |
|
Inventories |
|
|
135,676 |
|
|
|
150,810 |
|
Income taxes receivable |
|
|
2,421 |
|
|
|
238 |
|
Other current assets |
|
|
12,290 |
|
|
|
12,327 |
|
Total current assets |
|
|
255,949 |
|
|
|
294,060 |
|
Property, plant and equipment, net |
|
|
209,435 |
|
|
|
218,521 |
|
Operating lease assets |
|
|
7,094 |
|
|
|
7,791 |
|
Deferred income taxes |
|
|
4,812 |
|
|
|
3,939 |
|
Other non-current assets |
|
|
14,839 |
|
|
|
14,508 |
|
Total assets |
|
$ |
492,129 |
|
|
$ |
538,819 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
34,709 |
|
|
$ |
44,455 |
|
Income taxes payable |
|
|
2,263 |
|
|
|
789 |
|
Current operating lease liabilities |
|
|
1,733 |
|
|
|
1,813 |
|
Current portion of long-term debt |
|
|
12,357 |
|
|
|
12,006 |
|
Other current liabilities |
|
|
17,409 |
|
|
|
12,932 |
|
Total current liabilities |
|
|
68,471 |
|
|
|
71,995 |
|
Long-term debt |
|
|
120,144 |
|
|
|
128,604 |
|
Non-current operating lease liabilities |
|
|
5,515 |
|
|
|
6,146 |
|
Deferred income taxes |
|
|
2,526 |
|
|
|
3,364 |
|
Other long-term liabilities |
|
|
4,133 |
|
|
|
5,100 |
|
Total liabilities |
|
|
200,789 |
|
|
|
215,209 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Common stock |
|
|
1,815 |
|
|
|
1,808 |
|
Capital in excess of par value |
|
|
70,254 |
|
|
|
68,901 |
|
Retained earnings |
|
|
273,676 |
|
|
|
306,792 |
|
Accumulated other comprehensive loss |
|
|
(54,405 |
) |
|
|
(53,891 |
) |
Total shareholders’ equity |
|
|
291,340 |
|
|
|
323,610 |
|
Total liabilities and shareholders’ equity |
|
$ |
492,129 |
|
|
$ |
538,819 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
|
For the Six Months Ended |
|
|||||
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
||
Cash and cash equivalents at beginning of period |
|
$ |
46,960 |
|
|
$ |
53,290 |
|
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
|
(33,116 |
) |
|
|
(25,871 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
||
Equity in earnings of unconsolidated affiliates |
|
|
(293 |
) |
|
|
(381 |
) |
Depreciation and amortization expense |
|
|
13,988 |
|
|
|
13,478 |
|
Non-cash compensation expense |
|
|
1,387 |
|
|
|
1,976 |
|
Restructuring costs |
|
|
5,101 |
|
|
|
— |
|
Recovery of income taxes |
|
|
— |
|
|
|
(3,799 |
) |
Deferred income taxes |
|
|
(1,714 |
) |
|
|
(304 |
) |
Other, net |
|
|
(120 |
) |
|
|
289 |
|
Changes in assets and liabilities |
|
|
17,284 |
|
|
|
21,884 |
|
Net cash provided by operating activities |
|
|
2,517 |
|
|
|
7,272 |
|
|
|
|
|
|
|
|
||
Investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(5,982 |
) |
|
|
(23,950 |
) |
Other, net |
|
|
488 |
|
|
|
(576 |
) |
Net cash used by investing activities |
|
|
(5,494 |
) |
|
|
(24,526 |
) |
|
|
|
|
|
|
|
||
Financing activities: |
|
|
|
|
|
|
||
Proceeds from long-term debt |
|
|
80,600 |
|
|
|
101,700 |
|
Payments on long-term debt |
|
|
(88,740 |
) |
|
|
(85,599 |
) |
Other, net |
|
|
(27 |
) |
|
|
(705 |
) |
Net cash (used) provided by financing activities |
|
|
(8,167 |
) |
|
|
15,396 |
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
163 |
|
|
|
(651 |
) |
Net decrease in cash and cash equivalents |
|
|
(10,981 |
) |
|
|
(2,509 |
) |
Cash and cash equivalents at end of period |
|
$ |
35,979 |
|
|
$ |
50,781 |
|
BUSINESS SEGMENT INFORMATION
(Unaudited)
(In thousands)
Net sales and gross profit (loss) details for each reportable segment of UNIFI are as follows:
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
||||
Americas |
|
$ |
80,549 |
|
|
$ |
85,242 |
|
|
$ |
162,122 |
|
|
$ |
192,886 |
|
Brazil |
|
|
26,061 |
|
|
|
25,687 |
|
|
|
55,970 |
|
|
|
64,566 |
|
Asia |
|
|
30,307 |
|
|
|
25,283 |
|
|
|
57,669 |
|
|
|
58,279 |
|
Consolidated net sales |
|
$ |
136,917 |
|
|
$ |
136,212 |
|
|
$ |
275,761 |
|
|
$ |
315,731 |
|
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
||||
Americas |
|
$ |
(6,738 |
) |
|
$ |
(13,084 |
) |
|
$ |
(14,118 |
) |
|
$ |
(17,953 |
) |
Brazil |
|
|
3,139 |
|
|
|
1,330 |
|
|
|
5,306 |
|
|
|
8,117 |
|
Asia |
|
|
5,235 |
|
|
|
3,754 |
|
|
|
9,873 |
|
|
|
8,399 |
|
Consolidated gross profit (loss) |
|
$ |
1,636 |
|
|
$ |
(8,000 |
) |
|
$ |
1,061 |
|
|
$ |
(1,437 |
) |
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 loss to EBITDA and Adjusted EBITDA are set forth below.
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
||||
Net loss |
|
$ |
(19,846 |
) |
|
$ |
(18,037 |
) |
|
$ |
(33,116 |
) |
|
$ |
(25,871 |
) |
Interest expense, net |
|
|
1,916 |
|
|
|
1,375 |
|
|
|
3,820 |
|
|
|
2,075 |
|
Provision (benefit) for income taxes |
|
|
380 |
|
|
|
(3,070 |
) |
|
|
(83 |
) |
|
|
(336 |
) |
Depreciation and amortization expense (1) |
|
|
6,922 |
|
|
|
6,693 |
|
|
|
13,910 |
|
|
|
13,390 |
|
EBITDA |
|
|
(10,628 |
) |
|
|
(13,039 |
) |
|
|
(15,469 |
) |
|
|
(10,742 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss on joint venture dissolution (2) |
|
|
2,750 |
|
|
|
— |
|
|
|
2,750 |
|
|
|
— |
|
Severance (3) |
|
|
2,351 |
|
|
|
— |
|
|
|
2,351 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(5,527 |
) |
|
$ |
(13,039 |
) |
|
$ |
(10,368 |
) |
|
$ |
(10,742 |
) |
Adjusted Net Loss and Adjusted EPS (Non-GAAP Financial Measures)
The tables below set forth reconciliations of (i) loss before income taxes (“Pre-tax Loss”), provision (benefit) for income taxes (“Tax Impact”), and net loss (“Net Loss”) to Adjusted Net Loss and (ii) Diluted Earnings Per Share (“Diluted EPS”) to Adjusted EPS. Rounding may impact certain of the below calculations.
|
|
For the Three Months Ended December 31, 2023 |
|
|
For the Three Months Ended January 1, 2023 |
|
||||||||||||||||||||||||||
|
|
Pre-tax Loss |
|
|
Tax Impact |
|
|
Net Loss |
|
|
Diluted EPS |
|
|
Pre-tax Loss |
|
|
Tax Impact |
|
|
Net Loss |
|
|
Diluted EPS |
|
||||||||
GAAP results |
|
$ |
(19,466 |
) |
|
$ |
(380 |
) |
|
$ |
(19,846 |
) |
|
$ |
(1.10 |
) |
|
$ |
(21,107 |
) |
|
$ |
3,070 |
|
|
$ |
(18,037 |
) |
|
$ |
(1.00 |
) |
Loss on joint venture dissolution (1) |
|
|
2,750 |
|
|
|
— |
|
|
|
2,750 |
|
|
|
0.15 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance (2) |
|
|
2,351 |
|
|
|
— |
|
|
|
2,351 |
|
|
|
0.14 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Recovery of income taxes (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,799 |
) |
|
|
(3,799 |
) |
|
|
(0.21 |
) |
Adjusted results |
|
$ |
(14,365 |
) |
|
$ |
(380 |
) |
|
$ |
(14,745 |
) |
|
$ |
(0.81 |
) |
|
$ |
(21,107 |
) |
|
$ |
(729 |
) |
|
$ |
(21,836 |
) |
|
$ |
(1.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
18,110 |
|
|
|
|
|
|
|
|
|
|
|
|
18,034 |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
For the Six Months Ended December 31, 2023 |
|
|
For the Six Months Ended January 1, 2023 |
|
||||||||||||||||||||||||||
|
|
Pre-tax Loss |
|
|
Tax Impact |
|
|
Net Loss |
|
|
Diluted EPS |
|
|
Pre-tax Loss |
|
|
Tax Impact |
|
|
Net Loss |
|
|
Diluted EPS |
|
||||||||
GAAP results |
|
$ |
(33,199 |
) |
|
$ |
83 |
|
|
$ |
(33,116 |
) |
|
$ |
(1.83 |
) |
|
$ |
(26,207 |
) |
|
$ |
336 |
|
|
$ |
(25,871 |
) |
|
$ |
(1.44 |
) |
Loss on joint venture dissolution (1) |
|
|
2,750 |
|
|
|
— |
|
|
|
2,750 |
|
|
|
0.15 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance (2) |
|
|
2,351 |
|
|
|
— |
|
|
|
2,351 |
|
|
|
0.13 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Recovery of income taxes (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,799 |
) |
|
|
(3,799 |
) |
|
|
(0.21 |
) |
Adjusted results |
|
$ |
(28,098 |
) |
|
$ |
83 |
|
|
$ |
(28,015 |
) |
|
$ |
(1.55 |
) |
|
$ |
(26,207 |
) |
|
$ |
(3,463 |
) |
|
$ |
(29,670 |
) |
|
$ |
(1.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
18,097 |
|
|
|
|
|
|
|
|
|
|
|
|
18,017 |
|
||||||||||||||
Net Debt (Non-GAAP Financial Measure)
Reconciliations of Net Debt are as follows:
|
|
December 31, 2023 |
|
|
July 2, 2023 |
|
||
Long-term debt |
|
$ |
120,144 |
|
|
$ |
128,604 |
|
Current portion of long-term debt |
|
|
12,357 |
|
|
|
12,006 |
|
Unamortized debt issuance costs |
|
|
259 |
|
|
|
289 |
|
Debt principal |
|
|
132,760 |
|
|
|
140,899 |
|
Less: cash and cash equivalents |
|
|
35,979 |
|
|
|
46,960 |
|
Net Debt |
|
$ |
96,781 |
|
|
$ |
93,939 |
|
Cash and cash equivalents
At December 31, 2023 and July 2, 2023, UNIFI’s foreign operations held nearly all consolidated cash and cash equivalents.
REPREVE Fiber
REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies.
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 (Loss) 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 (Loss) 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.
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-
CONFERENCE CALL PRESENTATION Second Quarter Ended December 31, 2023 (Unaudited Results) Exhibit 99.2
CAUTIONARY STATEMENTS 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”). 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. 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.
Q2 FISCAL 2024 OVERVIEW (compared to Q2 Fiscal 2023) Revenue $136.9M vs. $136.2M Adjusted EPS(1) ($0.81) vs. ($1.21) Adjusted EBITDA(1) $(5.5M) vs. $(13.0M) REPREVE Fiber % of Sales 33% vs. 31% (1) Adjusted EPS and Adjusted EBITDA are non-GAAP measures described on Slide 2 and reconciled within the Earnings Release dated January 31, 2024. REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies. Revenue stabilizing with expected calendar 2024 demand recovery Inventory destocking nearing end; expect normalization to start in CY2024 Momentum continues across new products, customer adoptions, and co-branding REPREVE® Fiber products comprised 33% ($45.7M) of net sales vs. 31% ($42.9M) Profitability Improvement Plan and leadership promotions support more robust operating profile in calendar 2024 Cost reset and headcount reductions expected to lower expenses by $10 million to $15 million annually Sales transformation initiatives focused on improving efficiencies and processes expected to bolster operating margins by at least $6 million annually Savings will be utilized to further strengthen the Company’s financial profile and invest in margin accretive growth opportunities
as a % of Net Sales and Millions of $s REPREVE® FIBER SALES QUARTERLY NOTE ANNUAL REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies. Fiscal Year FY 2022 FY 2023 FY 2024 $180 $186 $246 $293 $186 $71.9 $81.5 $71.9 $67.7 $49.2 $42.9 $49.6 $44.5 $42.5 $45.7
Year-Over-Year, $s in Millions NET SALES OVERVIEW CONSOLIDATED Volume 13.1% Price/Mix (13.6%) FX1 1.0% ↑0.5% AMERICAS BRAZIL ASIA Volume 8.8% Price/Mix (14.5%) FX1 0.2% ↓5.5% ↑1.5% Volume 14.7% Price/Mix (19.2%) FX1 6.0% ↑19.9% Volume 19.0% Price/Mix 2.4% FX1 (1.5%) 5 1 Approximates the impact of foreign currency translation. Note: Q2 FY23 ended on January 1, 2023; Q2 FY24 ended on December 31, 2023; and each contained 13 weeks.
Year-Over-Year, $s in Millions GROSS PROFIT OVERVIEW CONSOLIDATED AMERICAS BRAZIL ASIA Gross Profit $ Gross Margin % 6 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Note: Q2 FY23 ended on January 1, 2023; Q2 FY24 ended on December 31, 2023; and each contained 13 weeks.
Quarter-Over-Quarter, $s in Millions NET SALES OVERVIEW CONSOLIDATED Volume (0.4%) Price/Mix (0.8%) FX1 (0.2%) ↓1.4% AMERICAS BRAZIL ASIA Volume 3.2% Price/Mix (4.5%) FX1 0.0% ↓1.3% ↓12.9% Volume (11.8%) Price/Mix 0.2% FX1 (1.3%) ↑10.8% Volume 6.4% Price/Mix 4.0% FX1 0.4% 7 1 Approximates the impact of foreign currency translation. Note: Q1 FY24 ended on October 1, 2023; Q2 FY24 ended on December 31, 2023; and each contained 13 weeks.
Quarter-Over-Quarter, $s in Millions GROSS PROFIT OVERVIEW CONSOLIDATED AMERICAS BRAZIL ASIA Gross Profit $ Gross Margin % 8 Q1 FY24 Q2 FY24 Q1 FY24 Q2 FY24 Q1 FY24 Q2 FY24 Q1 FY24 Q2 FY24 Note: Q1 FY24 ended on October 1, 2023; Q2 FY24 ended on December 31, 2023; and each contained 13 weeks.
$s in Millions BALANCE SHEET & LIQUIDITY NET DEBT (1) FREE CASH FLOW $0 CAPEX WORKING CAPITAL Highlights Reset capital expenditures levels to align with economic circumstances for improved free cash flow Additional twelve-month delay of EvoCooler texturing equipment Implemented cost control and working capital measures to improve underlying cash flow (1) Net Debt is a non-GAAP measure described on Slide 2 and reconciled within the Earnings Release dated January 31, 2024.
FISCAL 2024 SECOND HALF PRIORITIES Matching production levels to meet expected rebound of demand in the U.S. and continued capture of market share Scrutinizing working capital expenditures to reduce interest expense and improve cash flows Leveraging the realignment of resources and key talent across the organization to drive growth and innovation Transforming the pricing and execution components of the sales process to streamline operational efficiencies and drive margin improvement Pursuing new yarn sales opportunities beyond traditional performance apparel markets Increasing customer engagement in all business segments to increase global market share 10 Prepared to Pivot to Growth
$s in Millions Q3 FISCAL 2024 FINANCIAL OUTLOOK Key Financial Metrics Q2 FY24 Results Q3 FY24 Outlook Net Sales $136.9 $149.0 to $154.0 Adjusted EBITDA(1) ($5.5) ($2.0) to $1.0 Capital Expenditures $3.0 $4.0 to $5.0 Remain Focused on Long-Term Growth For The Good of Tomorrow Effective Tax Rate -2.0% Continued Volatility (1) Adjusted EBITDA is a non-GAAP measure described on Slide 2 and reconciled within the Earnings Release dated January 31, 2024.
Exhibit 99.3
UNIFI®, Makers of REPREVE®, Announces Profitability Improvement Plan and Leadership Promotions
Company to streamline operations and reset costs to enhance margin and profitability
Board promotes multiple leaders to drive critical strategic initiatives through appointments of Chief Financial Officer, Chief Product Officer, President of Unifi Manufacturing, Inc., and Expanded General Counsel Role
GREENSBORO, N.C. – UNIFI, Inc. (NYSE: UFI) (together with its consolidated subsidiaries, “UNIFI”), makers of REPREVE and one of the world’s leading innovators in recycled and synthetic yarns, today announced that it has begun the implementation of a new Profitability Improvement Plan, focused on further reducing the Company’s costs, streamlining operations, and investing in innovation. The Company also announced new executive officer appointments to critical roles.
Highlights:
“In recognition of the current operating environment, we recently implemented an extensive Profitability Improvement Plan to optimize our resources,” said Eddie Ingle, CEO of Unifi, Inc. “While this
Plan came with difficult decisions, these measures will significantly improve profitability, helping to ensure UNIFI has a robust foundation to foster growth and innovation, core tenets of the Company’s strategy. Additionally, the transformation of our sales processes will serve as a direct catalyst to improve gross margins and operational efficiencies. Savings from these initiatives will be reinvested in the business, first in areas that should help us accelerate growth as demand levels reach the expected rebound across our industry in calendar 2024, and then to bolster the our balance sheet and already strong financial profile.”
Ingle continued, “We have streamlined our organization and realigned our Leadership Team to support a more efficient and responsive go-to-market structure. Collectively these actions will better prepare the business to deliver stronger results as our industry pivots to growth in calendar 2024. Over the last decade we have focused on leadership development within our organization, and we are therefore very proud to announce promotions of talented leaders like A.J., Meredith, Brian, and Greg. Each has extensive experience and proven track records at UNIFI that have been invaluable to the organization and our customers. The Board and I are thrilled to complete the leadership appointments and promotions, as they will make strong impacts on their respective teams and help drive the future growth of our Company.”
Profitability Improvement Plan
UNIFI began the implementation of an extensive Profitability Improvement Plan in December 2023. The first part of this strategy realigned resources, reduced headcount and further reset costs, which lowers the Company’s variable operating expenses in both production and administrative activities in the United States. These actions have been completed and are expected to reduce expenses by $2.5 million per quarter at the start of fiscal 2025. The Company recorded a severance charge of $2.4 million during the December 31, 2023 quarter as a result.
The second part of the Profitability Improvement Plan is focused on gross margin expansion initiatives through a transformation of the Company’s sales process. This transformation includes actions designed to streamline processes, improve inventory management, and realign resources to maximize efficiencies in the current and future operating environment.
The total reduction in costs and anticipated profitability improvement as a result of the execution of this Plan is expected to reach $20 million on an annual run-rate basis at the start of fiscal 2025. The Company plans to reinvest these savings into areas of the business that will create additional revenue and margin accretive opportunities beyond the traditional apparel market it serves today.
Leadership Appointments
A.J. Eaker has been appointed Executive Vice President and Chief Financial Officer. Mr. Eaker served as Interim Chief Financial Officer of UNIFI since August 2023, as Treasurer since December 2022, and as Vice President of UNIFI's primary domestic operating subsidiary since June 2017. Mr. Eaker has held various positions with increasing leadership and functional responsibilities since joining the Company in March 2014, including Vice President of Finance, Corporate Finance Manager, and Assistant Controller, following more than five years in public accounting.
Meredith S. Boyd has been appointed Executive Vice President and Chief Product Officer. Ms. Boyd previously served as Senior Vice President of Sustainability, Technology & Innovation for the last three years and joined UNIFI in 2007. She has been instrumental in driving international growth and product differentiation, particularly in sustainable practices. Her expertise spans multiple roles, including Global Business Development and Brand Sales, and she has been a prominent figure in industry conferences and publications.
Brian D. Moore has been appointed Executive Vice President and President of Unifi Manufacturing, Inc., the Company’s primary operating subsidiary in the United States. Mr. Moore previously served as Senior Vice President of Direct Sales & Operations, leading various aspects of the United States sales team for the past year, after serving as Vice President of Global Brand Sales from 2020 to 2023. Mr. Moore first joined UNIFI in 1993, eventually leading UNIFI’s Asian market and gaining extensive experience in various sectors of the textile industry through transforming sales and operations for global fashion and apparel companies before returning to UNIFI in 2020. His leadership and experience underscores his capability to steer the manufacturing division effectively.
Second Quarter Fiscal 2024 Earnings Conference Call
UNIFI will provide additional commentary regarding these initiatives during its second quarter fiscal 2024 earnings conference call on February 1, 2024, at 8:30 a.m., Eastern Time. The call can be accessed via a live audio webcast on UNIFI’s website at http://investor.UNIFI.com. Additional supporting materials and information related to the call will also be available on UNIFI’s website.
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 40 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.
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.
Contact information:
Davis Snyder or Darren Yeun
Alpha IR Group
312-445-2870
UFI@alpha-ir.com
-end-