SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 22, 2004
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)
ITEM 12. RESULTS OF OPERATIONS AND FINANICAL CONDITION
On April 22, 2004, Unifi, Inc. issued a press release announcing the
results for its third quarter of fiscal year 2004, ending March 28, 2004.
A copy of the press release is furnished as Exhibit 99.1 to this report.
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: April 22, 2004
EXHIBIT INDEX
Exhibit No. Description
99.1
News Release disseminated on April 22, 2004 by Unifi, Inc. concerning the
results
for its Third quarter of fiscal year 2004 ending March 28, 2004.
William M. Lowe, Jr.
COO & CFO
(336) 316-5664
wmlowe@unifi-inc.com
GREENSBORO, N.C. -- April 22, 2004 -- Unifi Inc. (NYSE:UFI), today released operating results for its third quarter of fiscal year 2004.
The Company reported a net loss of $50.0 million or 96 cents per share for the quarter ending March 28, 2004, which compares to net income of $1.1 million or 2 cents per share for the prior year March quarter. The Company also reported a net loss of $63.8 million or $1.22 per share for the first nine months of fiscal 2004 versus net income of $3.3 million or 6 cents per share for the first nine months of fiscal 2003.
Net income for the current quarter and the first nine months of fiscal 2004 was negatively impacted by pre-tax charges of $20.8 million associated with the broad restructuring of the Company's U.S. and European operations, which was announced on March 2, 2004, as well as an asset impairment charge of $38.7 million. Additionally, included in the pre-tax loss for the March quarter was a $6.7 million loss from its share of income or losses from its equity affiliates.
Net sales for the March quarter
of $190.9 million reflect a decrease of 13.1 percent compared to net sales
of $219.6 million for the prior year March quarter. However, net sales
increased $7.2 million or four percent over the previous quarter ended
December 28, 2003. Fiscal 2004 year-to-date net sales of $554.8 million
reflect a 13.7 percent decrease from net sales of $643.0 million reported
for the first nine months of fiscal 2003. Net sales continue to be negatively
impacted by increases in imported fabric and apparel and the ongoing softness
in the domestic textile and apparel industries.
-continued-
Unifi Announces Third Quarter Results - page 2
William Lowe, Chief Operating Officer and Chief Financial Officer for Unifi, said, "Excluding restructuring, special items and the results of our equity affiliates, our operating loss as a percent of sales for the third quarter was significantly less than the second quarter. The fact that we are seeing an improvement in the conversion of sales in our underlying business prior to the beneficial impact of our broad restructuring is a positive sign. We expect to see continued improvement in this area in our fourth fiscal quarter, as the benefits of the restructuring begin to take effect."
"We are also gaining momentum on other new initiatives within our domestic business units that are designed to improve profitability. We anticipate seeing the results of these efforts, as well as those of our restructuring, over the next few quarters."
Continuing its ongoing strategic focus on maintaining a strong balance sheet, the Company ended the March quarter with cash-on-hand of $59.7 million, which is a slight improvement over the $59.3 million cash-on-hand at the end of the December quarter.
Unifi is one of the world's leading 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.
###
Financial Statements to Follow
Unifi Announces Third Quarter Results -- page 3
| UNIFI, INC. | |||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Unaudited) (In Thousands Except Per Share Data) | |||||||||
|
|
|
||||||||
|
|
|
|
|
||||||
| Net sales |
$ 190,915
|
$ 219,633
|
$ 554,786
|
$ 643,022
|
|||||
| Cost of sales |
182,128
|
204,094
|
531,747
|
589,417
|
|||||
| Selling, general & administrative expense |
13,688
|
14,185
|
39,847
|
39,661
|
|||||
| Interest expense |
4,741
|
4,534
|
14,272
|
15,079
|
|||||
| Interest income |
(725)
|
(344)
|
(2,121)
|
(1,090)
|
|||||
| Other (income) expense, net |
(2,663)
|
(90)
|
(777)
|
(160)
|
|||||
| Equity in (earnings) losses of | |||||||||
| unconsolidated affiliates |
6,669
|
(3,209)
|
6,558
|
(9,366)
|
|||||
| Minority interest (income) expense |
(4,755)
|
(1,163)
|
(6,831)
|
2,408
|
|||||
| Restructuring charges |
20,799
|
-
|
20,799
|
-
|
|||||
| Arbitration costs and expenses |
3
|
2,458
|
3
|
5,292
|
|||||
| Alliance plant closure costs |
(206)
|
(3,486)
|
(206)
|
(3,486)
|
|||||
| Asset impairments and write downs |
38,703
|
- -
|
38,703
|
- -
|
|||||
| Income (loss) before income taxes |
(67,467)
|
2,654
|
(87,208)
|
5,267
|
|||||
| Provision (benefit) for income taxes |
(17,475)
|
1,510
|
(23,434)
|
1,966
|
|||||
| Net income (loss) |
$ (49,992)
|
$ 1,144
|
$ (63,774)
|
$
3,301
|
|||||
| Earnings (losses) per common share - diluted: | |||||||||
| Net income (loss) per common share |
$
(0.96)
|
$
0.02
|
$
(1.22)
|
$
0.06
|
|||||
| Average diluted shares outstanding |
52,075
|
53,794
|
52,306
|
53,818
|
|||||
| Depreciation and amortization included above |
$ 16,311
|
$ 17,489
|
$ 50,025
|
$ 55,565
|
|||||
-continued-
Unifi Announces Third Quarter Results -- page 4
| UNIFI, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) (In Thousands) | ||||||||
|
|
|
|
|
|||||
| Assets | ||||||||
| Cash and cash equivalents |
$
59,731
|
$
59,311
|
$
72,263
|
$
76,801
|
||||
| Receivables |
128,918
|
110,675
|
120,323
|
130,775
|
||||
| Inventories |
119,776
|
115,110
|
124,520
|
118,436
|
||||
| Other current assets |
8,723
|
7,723
|
7,963
|
8,235
|
||||
| Total current assets |
317,148
|
292,819
|
325,069
|
334,247
|
||||
| Property, plant and equipment |
367,145
|
419,343
|
430,572
|
444,813
|
||||
| Investments in unconsolidated affiliates |
165,783
|
174,542
|
174,479
|
173,731
|
||||
| Other noncurrent assets |
19,022
|
35,406
|
35,146
|
35,345
|
||||
|
$ 869,098
|
$ 922,110
|
$ 965,266
|
$ 988,136
|
|||||
| Liabilities and Shareholders' Equity | ||||||||
| Accounts payable |
$ 68,921
|
$ 54,565
|
$ 90,239
|
$ 80,972
|
||||
| Accrued expenses |
53,444
|
46,529
|
45,404
|
60,288
|
||||
| Income taxes payable |
1,393
|
1,293
|
1,647
|
1,729
|
||||
| Current
maturities of long-term
debt and other current |
||||||||
| liabilities |
8,840
|
6,986
|
7,021
|
7,285
|
||||
| Total current liabilities |
132,598
|
109,373
|
144,311
|
150,274
|
||||
| Long-term debt and other liabilities |
258,716
|
258,730
|
258,766
|
259,395
|
||||
| Deferred income taxes |
62,805
|
81,167
|
85,683
|
87,814
|
||||
| Minority interests |
4,119
|
9,475
|
9,847
|
10,905
|
||||
| Shareholders' equity |
410,860
|
463,365
|
466,659
|
479,748
|
||||
|
$ 869,098
|
$ 922,110
|
$ 965,266
|
$ 988,136
|
|||||
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements included herein contain forward-looking statements within the meaning of federal security laws about Unifi, Inc.'s (the "Company") financial condition and results of operations that are based on management's current expectations, estimates and projections about the markets in which the Company operates, management's beliefs and assumptions made by management. Words such as "expects," "anticipates," "believes," "estimates," variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.
Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to, availability, sourcing and pricing of raw materials, pressures on sales prices and volumes due to competition and economic conditions, reliance on and financial viability of significant customers, operating performance of joint ventures, alliances and other equity investments, technological advancements, employee relations, changes in construction spending, capital expenditures and long-term investments (including those related to unforeseen acquisition opportunities), continued availability of financial resources through financing arrangements and operations, outcomes of pending or threatened legal proceedings, negotiation of new or modifications of existing contracts for asset management and for property and equipment construction and acquisition, regulations governing tax laws, other governmental and authoritative bodies' policies and legislation, the continuation and magnitude of the Company's common stock repurchase program and proceeds received from the sale of assets held for disposal. In addition to these representative factors, forward-looking statements could be impacted by general domestic and international economic and industry conditions in the markets where the Company competes, such as changes in currency exchange rates, interest and inflation rates, recession and other economic and political factors over which the Company has no control. Other risks and uncertainties may be described from time to time in the Company's other reports and filings with the Securities and Exchange Commission.
-end-