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): |
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(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:
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Trading |
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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 October 30, 2024, the Company issued a press release announcing its operating results for the fiscal first quarter ended September 29, 2024, a copy of which is attached hereto as Exhibit 99.1.
Item 5.07. Submission of Matters to a Vote of Security Holders.
(a) On October 29, 2024, Unifi, Inc. (the "Company") held its 2024 Annual Meeting of Shareholders (the "Annual Meeting").
(b) At the Annual Meeting, the Company’s shareholders (i) elected all eight of the Company’s nominees for director to serve until their terms expire at the 2025 Annual Meeting of Shareholders or until their successors are duly elected and qualified; (ii) approved, on an advisory basis, the Company’s named executive officer compensation in fiscal 2024; and (iii) ratified the appointment of KPMG LLP to serve as the Company’s independent registered public accounting firm for fiscal 2025. Each of these proposals is further described in the Company’s definitive proxy statement on Schedule 14A filed with the United States Securities and Exchange Commission on September 18, 2024.
The final voting results for each of the proposals submitted to the Company’s shareholders at the Annual Meeting are as follows:
Nominee |
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Votes For |
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Votes Against |
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Abstentions |
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Broker Non-Votes |
Emma S. Battle |
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12,213,381 |
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64,994 |
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44,786 |
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2,452,957 |
Francis S. Blake |
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11,731,526 |
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546,847 |
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44,788 |
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2,452,957 |
Albert P. Carey |
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11,834,470 |
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459,016 |
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29,675 |
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2,452,957 |
Edmund M. Ingle |
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12,236,708 |
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56,778 |
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29,675 |
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2,452,957 |
Kenneth G. Langone |
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12,060,901 |
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231,583 |
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30,677 |
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2,452,957 |
Suzanne M. Present |
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12,242,304 |
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51,182 |
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29,675 |
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2,452,957 |
Rhonda L. Ramlo |
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11,540,801 |
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737,572 |
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44,788 |
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2,452,957 |
Eva T. Zlotnicka |
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11,208,392 |
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1,069,684 |
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45,085 |
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2,452,957 |
Votes For |
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Votes Against |
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Abstentions |
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Broker Non-Votes |
11,210,299 |
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972,736 |
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140,126 |
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2,452,957 |
3. Ratification of the appointment of KPMG LLP to serve as the Company’s independent registered public accounting firm for
fiscal 2025:
Votes For |
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Votes Against |
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Abstentions |
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Broker Non-Votes |
14,584,107 |
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64,897 |
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127,114 |
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0 |
Item 7.01. Regulation FD Disclosure.
On October 31, 2024, the Company will host a conference call to discuss its operating results for the fiscal first quarter ended September 29, 2024. 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. |
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Description |
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99.1 |
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99.2 |
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104 |
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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.
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UNIFI, INC. |
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Date: |
October 30, 2024 |
By: |
/s/ ANDREW J. EAKER |
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Andrew J. Eaker |
Exhibit 99.1
UNIFI®, Makers of REPREVE®, Announces First Quarter Fiscal 2025 Results
Sales and earnings results consistent with expectations
Company reiterates year-over-year improvement for fiscal 2025
GREENSBORO, N.C., October 30, 2024 – Unifi, Inc. (NYSE: UFI) (together with its consolidated subsidiaries, “UNIFI”), leading innovator in recycled and synthetic yarn, today released operating results for the first fiscal quarter ended September 29, 2024.
First Quarter Fiscal 2025 Overview
Eddie Ingle, Chief Executive Officer of Unifi, Inc., stated, “Our financial results for the first quarter were in line with our expectations, highlighting our continued progress toward repositioning our business for future growth. The strategic initiatives that we put into place during the previous fiscal year have continued to benefit our financial results, which is evident by the significant improvement we experienced in gross profit during the period. To help sustain this positive momentum, we continue to take steps to strengthen our balance sheet, which included entering into a credit agreement that allows us to ensure our capital is deployed to the best long-term investments. We are confident that the improvements we have made to our business so far have positioned us well to enhance our future financial performance and increase shareholder value.”
First Quarter Fiscal 2025 Compared to First Quarter Fiscal 2024
Net sales increased to $147.4 million from $138.8 million, primarily due to higher sales volumes in the Brazil Segment, partially offset by severe weather and seasonality impacts in the Americas Segment, and difficult economic conditions in the Asia Segment.
Gross profit increased to $9.5 million from a gross loss of $0.6 million. Americas Segment gross profit improved by $6.0 million, primarily due to higher sales and production levels. Brazil Segment gross profit improved by $5.8 million, primarily due to pricing and market share gains. Asia Segment gross profit decreased by $1.7 million, primarily due to unfavorable economic conditions and pricing dynamics in the region.
Operating loss was $3.2 million compared to $12.0 million. The underlying improvement was primarily due to the increase in gross profit. Net loss was $7.6 million compared to $13.3 million. EPS was ($0.42) and Adjusted EBITDA* was $3.3 million, compared to $(0.73) and $(4.8) million, respectively.
Fiscal 2025 Outlook
Second Quarter Fiscal 2025
UNIFI expects the following second quarter fiscal 2025 results:
Full Year Fiscal 2025
UNIFI expects the following for fiscal 2025:
Ingle concluded, “We are excited about the opportunities that lie ahead of us for both our REPREVE Fiber business and our growing beyond apparel initiatives, which we believe are poised to benefit from the growing customer demand for sustainable solutions. As we look ahead, we will continue to focus on diligently managing our operations, maintaining a healthy balance sheet, and driving future growth that will help create value for all our stakeholders.”
* Adjusted EBITDA is a non-GAAP financial measure. The schedules included in this press release reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure.
** Guidance provided is a non-GAAP figure presented on an adjusted basis. For further details, see the non-GAAP financial measures information presented in the schedules included in this press release.
First Quarter Fiscal 2025 Earnings Conference Call
UNIFI will provide additional commentary regarding its first quarter fiscal 2025 results and other developments during its earnings conference call on October 31, 2024, at 9:00 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.
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About UNIFI
UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use – and reuse. A vertically-integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil, and sales offices all over the world. UNIFI envisions a future where circular and sustainable solutions are the only choice. For more information about UNIFI, visit www.unifi.com.
Contact information:
Josh Carroll or Blaine McNulty
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)
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For the Three Months Ended |
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September 29, 2024 |
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October 1, 2023 |
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Net sales |
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$ |
147,372 |
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$ |
138,844 |
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Cost of sales |
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137,914 |
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139,419 |
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Gross profit (loss) |
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9,458 |
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(575 |
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Selling, general and administrative expenses |
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11,842 |
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11,609 |
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Provision (benefit) for bad debts |
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312 |
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(209 |
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Other operating expense, net |
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520 |
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54 |
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Operating loss |
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(3,216 |
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(12,029 |
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Interest income |
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(257 |
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(581 |
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Interest expense |
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2,507 |
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2,485 |
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Equity in earnings of unconsolidated affiliates |
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(11 |
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(200 |
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Loss before income taxes |
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(5,455 |
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(13,733 |
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Provision (benefit) for income taxes |
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2,177 |
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(463 |
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Net loss |
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$ |
(7,632 |
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$ |
(13,270 |
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Net loss per common share: |
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Basic |
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$ |
(0.42 |
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$ |
(0.73 |
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Diluted |
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$ |
(0.42 |
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$ |
(0.73 |
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Weighted average common shares outstanding: |
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Basic |
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18,255 |
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18,084 |
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Diluted |
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18,255 |
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18,084 |
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CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
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September 29, 2024 |
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June 30, 2024 |
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ASSETS |
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Cash and cash equivalents |
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$ |
13,703 |
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$ |
26,805 |
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Receivables, net |
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77,885 |
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79,165 |
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Inventories |
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145,350 |
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131,181 |
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Income taxes receivable |
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1,355 |
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164 |
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Other current assets |
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12,923 |
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11,618 |
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Total current assets |
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251,216 |
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248,933 |
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Property, plant and equipment, net |
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189,744 |
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193,723 |
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Operating lease assets |
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8,411 |
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8,245 |
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Deferred income taxes |
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5,156 |
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5,392 |
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Other non-current assets |
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12,452 |
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12,951 |
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Total assets |
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$ |
466,979 |
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$ |
469,244 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Accounts payable |
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$ |
41,250 |
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$ |
43,622 |
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Income taxes payable |
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1,510 |
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754 |
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Current operating lease liabilities |
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2,434 |
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2,251 |
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Current portion of long-term debt |
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12,153 |
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12,277 |
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Other current liabilities |
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18,923 |
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17,662 |
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Total current liabilities |
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76,270 |
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76,566 |
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Long-term debt |
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119,324 |
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117,793 |
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Non-current operating lease liabilities |
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6,092 |
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6,124 |
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Deferred income taxes |
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1,869 |
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1,869 |
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Other long-term liabilities |
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3,715 |
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3,507 |
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Total liabilities |
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207,270 |
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205,859 |
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Commitments and contingencies |
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Common stock |
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1,826 |
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1,825 |
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Capital in excess of par value |
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71,419 |
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70,952 |
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Retained earnings |
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251,765 |
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259,397 |
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Accumulated other comprehensive loss |
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(65,301 |
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(68,789 |
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Total shareholders’ equity |
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259,709 |
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263,385 |
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Total liabilities and shareholders’ equity |
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$ |
466,979 |
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$ |
469,244 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
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For the Three Months Ended |
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September 29, 2024 |
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October 1, 2023 |
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Cash and cash equivalents at beginning of period |
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$ |
26,805 |
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$ |
46,960 |
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Operating activities: |
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Net loss |
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(7,632 |
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(13,270 |
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Adjustments to reconcile net loss to net cash (used) provided by operating activities: |
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Equity in earnings of unconsolidated affiliates |
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(11 |
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(200 |
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Depreciation and amortization expense |
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6,547 |
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7,026 |
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Non-cash compensation expense |
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435 |
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212 |
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Deferred income taxes |
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344 |
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(679 |
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Other, net |
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80 |
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(62 |
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Changes in assets and liabilities |
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(12,597 |
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14,092 |
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Net cash (used) provided by operating activities |
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(12,834 |
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7,119 |
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Investing activities: |
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Capital expenditures |
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(2,018 |
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(2,937 |
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Other, net |
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— |
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457 |
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Net cash used by investing activities |
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(2,018 |
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(2,480 |
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Financing activities: |
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Proceeds from long-term debt |
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47,500 |
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31,100 |
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Payments on long-term debt |
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(46,108 |
) |
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(30,513 |
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Other, net |
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(162 |
) |
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17 |
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Net cash provided by financing activities |
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1,230 |
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604 |
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Effect of exchange rate changes on cash and cash equivalents |
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520 |
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(688 |
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Net (decrease) increase in cash and cash equivalents |
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(13,102 |
) |
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|
4,555 |
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Cash and cash equivalents at end of period |
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$ |
13,703 |
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$ |
51,515 |
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BUSINESS SEGMENT INFORMATION
(Unaudited)
(In thousands)
Net sales and gross profit (loss) details for each reportable segment of UNIFI are as follows:
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For the Three Months Ended |
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September 29, 2024 |
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October 1, 2023 |
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Americas |
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$ |
86,283 |
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$ |
81,573 |
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Brazil |
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34,310 |
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29,909 |
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Asia |
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26,779 |
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27,362 |
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Consolidated net sales |
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$ |
147,372 |
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$ |
138,844 |
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For the Three Months Ended |
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|||||
|
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September 29, 2024 |
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October 1, 2023 |
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Americas |
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$ |
(1,378 |
) |
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$ |
(7,380 |
) |
Brazil |
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7,937 |
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2,167 |
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Asia |
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2,899 |
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4,638 |
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Consolidated gross profit (loss) |
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$ |
9,458 |
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$ |
(575 |
) |
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.
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For the Three Months Ended |
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|||||
|
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September 29, 2024 |
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October 1, 2023 |
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Net loss |
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$ |
(7,632 |
) |
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$ |
(13,270 |
) |
Interest expense, net |
|
|
2,250 |
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|
|
1,904 |
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Provision (benefit) for income taxes |
|
|
2,177 |
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|
|
(463 |
) |
Depreciation and amortization expense (1) |
|
|
6,504 |
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|
|
6,988 |
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EBITDA |
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|
3,299 |
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|
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(4,841 |
) |
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Other adjustments (2) |
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— |
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— |
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Adjusted EBITDA |
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$ |
3,299 |
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$ |
(4,841 |
) |
Net Debt (Non-GAAP Financial Measure)
Reconciliations of Net Debt are as follows:
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September 29, 2024 |
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June 30, 2024 |
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Long-term debt |
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$ |
119,324 |
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$ |
117,793 |
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Current portion of long-term debt |
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12,153 |
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|
|
12,277 |
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Unamortized debt issuance costs |
|
|
214 |
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|
229 |
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Debt principal |
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131,691 |
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|
130,299 |
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Less: cash and cash equivalents |
|
|
13,703 |
|
|
|
26,805 |
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Net Debt |
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$ |
117,988 |
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$ |
103,494 |
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Cash and cash equivalents
At September 29, 2024 and June 30, 2024, 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.
This press release also includes certain forward-looking information that is not presented in accordance with GAAP. Management believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require UNIFI to predict the timing and likelihood of potential future events such as restructurings, M&A activity, contract modifications, and other infrequent or unusual gains and losses. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided.
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 UNIFI's 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, but not limited to, epidemics or pandemics; the success of UNIFI’s strategic business initiatives; the volatility of financial and credit markets, including the impacts of counterparty risk (e.g., deposit concentration and recent depositor sentiment and activity); 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.
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First Quarter Fiscal 2025 Earnings Conference Call Exhibit 99.2 September 29, 2024 (Unaudited results) (Amounts and dollars in millions, unless otherwise noted) UNIFI, INC.
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 UNIFI’s 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, but not limited to, epidemics or pandemics; the success of the Company’s strategic business initiatives; the volatility of financial and credit markets, including the impacts of counterparty risk (e.g., deposit concentration and recent depositor sentiment and activity); 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 (Loss) 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. 2
Today’s Speakers Al Carey Executive Chairman Eddie Ingle CEO and Director A.J. Eaker EVP, CFO, and Treasurer 3
Consolidated Revenue $147.4M (+6.1%) EPS ($0.42) (+42.5%) Adjusted EBITDA1 $3.3M (+100.0%) REPREVE® Fiber % of Sales 30% (-100 bps) Q1 Fiscal 2025 Overview Note: REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies. 1 Adjusted EBITDA is a non-GAAP financial measure described on Slide 2 and reconciled within the Earnings Release dated October 30, 2024. Performance improvement in both Americas and Brazil Segments vs. prior year Innovation focus and strategic plan support return to growth in fiscal 2025 and beyond Benefits of Profitability Improvement Plan to continue materializing through calendar 2024 (compared to Q1 Fiscal 2024) 4
As a % of Net Sales REPREVE® Fiber Sales Note: REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies. $180 $186 $246 $293 $186 $186 $246 $293 $186 $189 5 $186 $293 $186 $189
Marketing Highlights 6
Consolidated Highlights Q1 FY25 Q4 FY24 QoQ Change Q1 FY24 YoY Change Net Sales $147.4 $157.5 (6.4)% $138.8 6.1% Gross Profit (Loss) $9.5 $10.8 (12.4)% ($0.6) 1,745% Gross Margin 6.4% 6.9% (50) bps (0.4)% 680 bps Highlights/Drivers Net sales and gross profit increased vs. prior year, primarily due to higher sales volumes in all segments, favorable pricing and cost dynamics in Brazil, and continued benefits from the previously announced Profitability Improvement Plan. Note: Q1 FY25 ended on September 29, 2024; Q4 FY24 ended on June 30, 2024; Q1 FY24 ended on October 1, 2023; and each contained 13 weeks. 7
Americas Highlights Q1 FY25 Q4 FY24 QoQ Change Q1 FY24 YoY Change Net Sales $86.3 $91.0 (5.2)% $81.6 5.8% Gross (Loss) Profit ($1.4) $0.0 nm ($7.4) 81.3% Gross Margin (1.6)% 0.0% (160) bps (9.0)% 740 bps Highlights/Drivers Net sales and gross profit increased vs. prior year, primarily due to higher sales and production levels. 8 Note: Q1 FY25 ended on September 29, 2024; Q4 FY24 ended on June 30, 2024; Q1 FY24 ended on October 1, 2023; and each contained 13 weeks.
9 Brazil Highlights Q1 FY25 Q4 FY24 QoQ Change Q1 FY24 YoY Change Net Sales $34.3 $32.2 6.4% $29.9 14.7% Gross Profit $7.9 $5.6 41.4% $2.2 266.3% Gross Margin 23.1% 17.4% 570 bps 7.2% nm Highlights/Drivers Net sales and gross profit increased vs. prior year, primarily due to higher volumes due to market share gains, together with favorable pricing and cost dynamics. 9 Note: Q1 FY25 ended on September 29, 2024; Q4 FY24 ended on June 30, 2024; Q1 FY24 ended on October 1, 2023; and each contained 13 weeks.
Asia Highlights Q1 FY25 Q4 FY24 QoQ Change Q1 FY24 YoY Change Net Sales $26.8 $34.2 (21.7)% $27.4 (2.1)% Gross Profit $2.9 $5.2 (44.0)% $4.6 (37.5)% Gross Margin 10.8% 15.1% (430) bps 17.0% (620) bps Highlights/Drivers Net sales and gross profit decreased vs. prior year, primarily due to unfavorable economic conditions and pricing dynamics in the region. 10 Note: Q1 FY25 ended on September 29, 2024; Q4 FY24 ended on June 30, 2024; Q1 FY24 ended on October 1, 2023; and each contained 13 weeks.
FCF CapEx Net Debt1 Working Capital Balance Sheet 1 Net Debt is a non-GAAP financial measure described on Slide 2 and reconciled within the Earnings Release dated October 30, 2024. 11
Q1 2025 Financial Outlook Continued Focused on Long-Term Growth Q2 FY24 Results Q2 FY25 Outlook Net Sales $136.9 $140.0 to $145.0 Adjusted EBITDA1 ($5.5) $(4.0) to $(2.0) Effective Tax Rate (2.0)% Continued Volatility Capital Expenditures $3.0 $4.0 to $5.0 1 Adjusted EBITDA is a non-GAAP financial measure described on Slide 2 and reconciled within the Earnings Release dated October 30, 2024. 12
Fiscal 2025 Outlook Net sales expected to increase 10% over fiscal 2024, as underlying portfolio and REPREVE® Fiber momentum continues while macroeconomic and inflationary uncertainties remain pronounced until calendar 2025. Gross profit, gross margin, and Adjusted EBITDA1 expected to increase significantly from fiscal 2024 to fiscal 2025, benefiting from higher sales volumes, initiatives from the previously announced Profitability Improvement Plan, and portfolio strength. Capital expenditures of approximately $12.0 million. Well Positioned to Realize Profitable Growth Opportunities in Fiscal 2025 1 Adjusted EBITDA is a non-GAAP financial measure described on Slide 2 and reconciled within the Earnings Release dated October 30, 2024. 13
Prepared to Pivot to Growth 1. Transforming the sales process, including pricing, to streamline operational efficiencies and drive margin improvement. 2. Scrutinizing working capital to reduce interest expense and improve cash flows. 3. Leveraging the realignment of resources and key talent across the organization to drive growth and innovation. 4. Increasing customer engagement in all business segments to grow our global market share of the demand for sustainable inputs. 5. Pursuing new yarn sales opportunities to grow the REPREVE Fiber business, expand our value-added innovative product offerings, and build on our Beyond Apparel initiatives. 14 Fiscal 2025 Priorities
Contact Investor Relations: UFI@alpha-ir.com 15