SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
October 22, 2003
UNIFI, INC.
(Exact name of registrant as specified in its charter)
New York
(State or other jurisdiction of incorporation)
1-10542
(Commission File Number)
11-2165495
(IRS Employer Identification No.)
7201 West Friendly Avenue
Greensboro, North Carolina
(Address of principal executive offices)
27410
(Zip Code)
(336) 294-4410
(Registrant's telephone number, including area code)
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ITEM 12. RESULTS OF OPERATIONS AND FINANICAL CONDITION
On October 22, 2003, Unifi, Inc. issued a press release announcing the
results for its first quarter of fiscal year 2004 ending September 28,
2003. A copy of the press release is furnished as Exhibit 99.1 to this
report.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNIFI, INC.
By: /s/ CHARLES F. MCCOY
Charles F. McCoy
Vice President, Secretary and General
Counsel
Dated: October 23, 2003
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EXHIBIT INDEX
Exhibit No. Description
99.1
News Release disseminated on October 22, 2003 by Unifi, Inc. concerning
the results for its first quarter of fiscal year 2004 ending September
28, 2003.
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Willis (Billy) C. Moore, III
bcmoore@unifi-inc.com
GREENSBORO, N.C. - October 22, 2003 - Unifi, Inc. (NYSE:UFI), today released operating results for its first quarter of fiscal year 2004.
The Company announced a net loss of $4.6 million or 9 cents per share for the quarter ended September 28, 2003, which compares to net income of $4.3 million or 8 cents per share for the prior year September quarter.
Net sales for the September quarter of $180.5 million reflect a decrease of 18.6 percent compared to net sales of $221.5 million for the prior year quarter. The decrease in sales over the prior year quarter is primarily due to a 16.8 percent decline in sales volumes caused by the continued increase in imported fabric and apparel, and the overall softness in the domestic textile and apparel industries.
Net income in the current quarter was also negatively impacted by reduced earnings from the Company's unconsolidated equity affiliates, who are being impacted by the same business conditions mentioned above. The Company's share of income from its equity affiliates was $0.3 million for the current September quarter compared to $3.6 million for the prior year quarter.
Also included in the September 2003 quarter results is a pre-tax benefit, included in cost of sales, of $9.6 million generated by the Company's manufacturing alliance with DuPont, which approximates the $9.9 million benefit realized in the September 2002 quarter.
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Unifi Announces First Quarter Results - page 2
Continuing its ongoing strategic focus on maximizing free cash flow and strengthening its balance sheet, the Company ended the September quarter with no funded bank debt. The Company also ended the September quarter with cash on hand of $72.3 million.
Brian Parke, Unifi's chief executive officer, said, "Our ability to generate cash and further strengthen our balance sheet on lower sales revenue validates our strategies and actions over the last few years, and confirms that we are making advances in creating a stronger, healthier Company.
"However, we continue to feel the effects of reduced consumer demand and spending as well as the negative impact of imported fabric and apparel on the domestic textile and apparel industries. Every level of the supply chain is being hit hard as the center of gravity for the supply of fabrics and garments moves to Asia.
"Going forward, we will continue to defend our domestic business through the development and introduction of innovative products and unique service solutions. Worldwide polyester consumption is expected to grow at a rate of approximately six percent per year, and polyester should represent half of all fibers consumed by 2010. Consumers want the comfort, convenience and performance of synthetic fibers, so driving innovation and improving the development-to-market cycle for new products will remain a priority for Unifi.
"We will also continue to develop the opportunities that exist in the Americas. A sustainable apparel supply base will remain in the Americas given the speed-to-market advantages offered from the region, and we will continue to grow our customer base and product offerings in the region.
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Unifi Announces First Quarter Results - page 3
"We will also participate in the growth in Asia. Our sales office in Hong Kong and operations in Thailand are now supplying the region with Unifi-quality product, including several of our value-added yarns. And, in terms of China, we continue to move forward with our negotiations with Kaiping, which will allow us to directly participate in China's growth and to become a cost-effective supplier to brands and retailers sourcing apparel programs from China.
"Looking forward, we expect this to be another challenging year. In light of these difficult business and economic conditions, Unifi will continue to take the actions necessary to meet the challenges ahead and maximize our operating performance."
Unifi is one of the world's largest producers and processors of textured yarns. Its primary business is the texturing, dyeing, twisting, covering, and beaming of multi-filament polyester and nylon yarns. Unifi's textured yarns are found in home furnishings, apparel and industrial fabrics, automotive, upholstery, hosiery, and sewing thread. For more information, please visit www.unifi-inc.com.
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Financial Statements to Follow
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Unifi Announces First Quarter Results - page 4
|
UNIFI, INC.
|
||
|
CONSOLIDATED STATEMENTS
OF OPERATIONS
|
||
|
(UNAUDITED) (In Thousands
Except Per Share Data)
|
||
|
|
|
|
|
|
|
|
| Net sales |
$180,486
|
$221,530
|
| Cost of goods sold |
169,930
|
198,413
|
| Selling, general & administrative expense |
13,314
|
13,555
|
| Interest expense |
4,742
|
5,099
|
| Interest income |
(828)
|
(493)
|
| Other (income) expense, net |
817
|
(719)
|
| Equity in earnings of | ||
| unconsolidated affiliates |
(257)
|
(3,552)
|
| Minority interest (income) expense |
(955)
|
2,813
|
| Income (loss) before income taxes |
(6,277)
|
6,414
|
| Provision (benefit) for income taxes |
(1,715)
|
2,087
|
| Net income (loss) |
$(4,562)
|
$4,327
|
| Earnings (losses) per common share - diluted: | ||
| Net income (loss) per common share |
$(0.09)
|
$0.08
|
| Average diluted shares outstanding |
52,746
|
53,877
|
| Depreciation and amortization included above |
$16,611
|
$18,527
|
|
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Unifi Announces First Quarter Results - page 5
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||
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UNIFI, INC.
|
||
|
CONSOLIDATED BALANCE
SHEETS
|
||
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(UNAUDITED) (In Thousands)
|
||
|
|
|
|
| Assets | ||
| Cash and cash equivalents |
$72,263
|
$76,801
|
| Receivables |
120,323
|
130,775
|
| Inventories |
124,520
|
118,436
|
| Other current assets |
7,963
|
8,235
|
| Total current assets |
325,069
|
334,247
|
| Property, plant and equipment |
430,572
|
444,813
|
| Investment in unconsolidated affiliates |
174,479
|
173,731
|
| Other noncurrent assets |
35,146
|
35,345
|
|
$965,266
|
$988,136
|
|
| Liabilities and Shareholders' Equity | ||
| Accounts payable |
$90,239
|
$80,972
|
| Accrued expenses |
45,404
|
60,288
|
| Income taxes payable |
1,647
|
1,729
|
| Current maturities of long-term debt | ||
| and other current liabilities |
7,021
|
7,285
|
| Total current liabilities |
144,311
|
150,274
|
| Long-term debt and other liabilities |
258,766
|
259,395
|
| Deferred income taxes |
85,683
|
87,814
|
| Minority interests |
9,847
|
10,905
|
| Shareholders' equity |
466,659
|
479,748
|
|
$965,266
|
$988,136
|
|
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
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