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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 30, 2025

 

 

UNIFI, INC.

(Exact name of registrant as specified in its charter)

 

 

New York

1-10542

11-2165495

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

7201 West Friendly Avenue

 

Greensboro, North Carolina

 

27410

(Address of principal executive offices)

 

(Zip Code)

 

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

 

Not Applicable

(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:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, par value $0.10 per share

 

UFI

 

New York Stock Exchange

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

Emerging growth company ☐

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

 


Item 2.02. Results of Operations and Financial Condition.

On April 30, 2025, the Company issued a press release announcing its operating results for the fiscal third quarter ended March 30, 2025, a copy of which is attached hereto as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

On May 1, 2025, the Company will host a conference call to discuss its operating results for the fiscal third quarter ended March 30, 2025. A copy of the materials prepared for use by management during this conference call is attached hereto as Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit

No.

Description

99.1

Press Release of Unifi, Inc., dated April 30, 2025.

99.2

Earnings Call Presentation Materials.

 

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

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


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

UNIFI, INC.

 

 

 

 

Date:

April 30, 2025

By:

/s/ ANDREW J. EAKER

 

 

 

Andrew J. Eaker
Executive Vice President & Chief Financial Officer
Treasurer

 


EX-99.1 2 ufi-ex99_1.htm EX-99.1 EX-99.1

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Exhibit 99.1

UNIFI®, Makers of REPREVE®, Announces Third Quarter Fiscal 2025 Results

Improved business conditions and strategic transition in Americas segment positions Company for future growth and profitability

GREENSBORO, N.C., April 30, 2025 – Unifi, Inc. (NYSE: UFI), the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, today released operating results for the third fiscal quarter ended March 30, 2025.

Third Quarter Fiscal 2025 Overview

 

Net sales were $146.6 million, a decrease of 1.6% from the third quarter of fiscal 2024, primarily driven by a less favorable sales mix and lower sales volumes in the Asia Segment and unfavorable foreign currency effects in the Brazil Segment.
Revenues from REPREVE Fiber products were $44.7 million and represented 31% of net sales, compared to $46.7 million or 31% of net sales for the third quarter of fiscal 2024.
Gross loss was $0.4 million and gross margin was (0.3)%, compared to gross profit of $4.8 million and 3.2% for the third quarter of fiscal 2024.
Net loss was $16.8 million, or $0.92 per share, compared to a net loss of $10.3 million, or $0.57 per share, for the third quarter of fiscal 2024. Adjusted Net Loss* was $13.9 million, which excludes $2.9 million of manufacturing footprint reduction costs, compared to Adjusted Net Loss of $10.3 million.
Adjusted EBITDA* was $(4.9) million, compared to $(0.8) million for the third quarter of fiscal 2024.
Published “Sustainability Snapshot” and related goals that highlights significant progress in textile-to-textile recycling.
Subsequent to quarter end, entered into a Real Estate Purchase and Sale Agreement to sell the Madison, North Carolina manufacturing facility for $53.2 million. Proceeds from the sale, once finalized, will be used to repay current outstanding debt.

Eddie Ingle, Chief Executive Officer of Unifi, Inc., stated, “Our results for the third quarter were in line with our expectations, driven by an improved performance in our Americas segment due to the positive traction we have experienced with the growth of our business in Central America. On the efficiency front, we have made progress on optimizing the cost structure of our U.S. operations. In addition, once finalized, the sale of our Madison, North Carolina manufacturing facility will allow us to reduce our outstanding debt and enhance our financial position. As we look ahead to the remainder of calendar 2025, we expect to see further benefits from our restructuring actions, which will improve our cost structure and operational performance.

 


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This gives us confidence that UNIFI is well-positioned to pivot to growth.”

Third Quarter Fiscal 2025 Compared to Third Quarter Fiscal 2024

Net sales decreased to $146.6 million from $149.0 million, primarily due to weaker sales mix and lower sales volumes for the Asia Segment and unfavorable foreign currency effects in the Brazil Segment, partially offset by higher sales volumes in the Americas Segment.

Gross profit decreased to $(0.4) million from $4.8 million. Americas Segment gross profit decreased by $3.4 million, primarily as production and sales gains were offset by inflationary pressures and transition costs related to the manufacturing footprint reduction. Asia Segment gross profit decreased by $0.9 million, primarily due to lower sales volumes, a less favorable sales mix, and pricing dynamics in the region. Brazil Segment gross profit decreased by $0.8 million, primarily due to unfavorable foreign currency translation effects.

Operating loss increased to $13.9 million from $6.9 million. The underlying increase was primarily due to the decrease in gross profit. Net loss was $16.8 million compared to $10.3 million. Adjusted Net Loss* was $13.9 million, which excluded $2.9 million of transition costs, compared to Adjusted Net Loss of $10.3 million for the third quarter of fiscal 2024. Adjusted EBITDA* was $(4.9) million, which excluded the same adjustment, compared to $(0.8) million.

Update on Manufacturing Transition

In February 2025, UNIFI announced the closure and planned transition of certain domestic manufacturing operations to enhance operating efficiency, lower fixed costs, improve profitability, and further strengthen the balance sheet. The associated real estate sale is pending final closing and funding, expected on May 15, 2025. The manufacturing transition and restructuring charges will continue through the first quarter of fiscal 2026, as certain machinery and equipment is relocated to other manufacturing facilities in North and Central America, with no expected reduction in capacity or customer service during or after the transition. Following the manufacturing footprint reduction, UNIFI expects to achieve an annual cost savings of approximately $20.0 million, primarily comprised of lower headcount and operational synergies.

 


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Fiscal 2025 Outlook

The below outlook assumes no meaningful changes in business activities resulting from the evolving tariff and trade negotiations.

Fourth Quarter Fiscal 2025

UNIFI expects the following fourth quarter fiscal 2025 results:

Net sales and Adjusted EBITDA** improving sequentially from the third quarter of fiscal 2025, primarily driven by further recovery for the Americas Segment.
Continued restructuring and transition expenses, primarily equipment relocation and abandonment costs, of between $6.0 million and $8.0 million.
Continued volatility in the effective tax rate.

Ingle concluded, “While there continues to be uncertainty around the global macroeconomic environment, we believe we have taken steps to improve our business in order to put UNIFI in a strong position to support our customers’ needs with sustainable and innovative products that will help create a more circular economy and position the Company for future growth. Looking ahead, we will continue to focus on finding additional ways to optimize our operations, improve our financial performance, accelerate our revenues, and create value for our shareholders.”

* Adjusted Net Loss and Adjusted EBITDA 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.

** 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.

Third Quarter Fiscal 2025 Earnings Conference Call

UNIFI will provide additional commentary regarding its third quarter fiscal 2025 results and other developments during its earnings conference call on May 1, 2025, at 9:00a.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 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.

 


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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.

About REPREVE®

Made by UNIFI, Inc. (NYSE: UFI), REPREVE® is the global leader in recycled performance fibers and resins. Using proprietary recycling technology, REPREVE leverages multiple waste sources, including single-use plastic bottles, ocean-bound plastic, textile waste, and recycled yarn. REPREVE has transformed more than 40 billion plastic bottles into recycled fiber, powering globally scalable products for world-leading brands. Made traceable with FiberPrint® technology and certified by U-Trust®, REPREVE spans sports apparel, fashion, home, automotive, construction, transport, military, medical and packaged goods. For more information about REPREVE, visit www.repreve.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












 


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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

March 30, 2025

 

 

March 31, 2024

 

 

March 30, 2025

 

 

March 31, 2024

 

Net sales

 

$

146,557

 

 

$

148,996

 

 

$

432,809

 

 

$

424,757

 

Cost of sales

 

 

147,002

 

 

 

144,232

 

 

 

423,262

 

 

 

418,932

 

Gross (loss) profit

 

 

(445

)

 

 

4,764

 

 

 

9,547

 

 

 

5,825

 

Selling, general and administrative expenses

 

 

12,295

 

 

 

11,372

 

 

 

37,058

 

 

 

35,389

 

(Benefit) provision for bad debts

 

 

(255

)

 

 

179

 

 

 

(39

)

 

 

1,259

 

Gain on sale of assets

 

 

 

 

 

 

 

 

(4,296

)

 

 

 

Restructuring costs

 

 

1,320

 

 

 

 

 

 

1,320

 

 

 

5,101

 

Other operating expense, net

 

 

55

 

 

 

139

 

 

 

144

 

 

 

674

 

Operating loss

 

 

(13,860

)

 

 

(6,926

)

 

 

(24,640

)

 

 

(36,598

)

Interest income

 

 

(198

)

 

 

(432

)

 

 

(632

)

 

 

(1,710

)

Interest expense

 

 

2,417

 

 

 

2,407

 

 

 

7,322

 

 

 

7,505

 

Equity in loss of unconsolidated affiliates

 

 

216

 

 

 

604

 

 

 

467

 

 

 

311

 

Loss before income taxes

 

 

(16,295

)

 

 

(9,505

)

 

 

(31,797

)

 

 

(42,704

)

Provision for income taxes

 

 

499

 

 

 

790

 

 

 

4,021

 

 

 

707

 

Net loss

 

$

(16,794

)

 

$

(10,295

)

 

$

(35,818

)

 

$

(43,411

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

Basic

 

$

(0.92

)

 

$

(0.57

)

 

$

(1.96

)

 

$

(2.40

)

Diluted

 

$

(0.92

)

 

$

(0.57

)

 

$

(1.96

)

 

$

(2.40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

Basic

 

 

18,352

 

 

 

18,169

 

 

 

18,299

 

 

 

18,121

 

Diluted

 

 

18,352

 

 

 

18,169

 

 

 

18,299

 

 

 

18,121

 

 

 


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CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

 

March 30, 2025

 

 

June 30, 2024

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

16,255

 

 

$

26,805

 

Receivables, net

 

 

80,551

 

 

 

79,165

 

Inventories

 

 

131,501

 

 

 

131,181

 

Income taxes receivable

 

 

7,402

 

 

 

164

 

Other current assets

 

 

9,821

 

 

 

11,618

 

Total current assets

 

 

245,530

 

 

 

248,933

 

Property, plant and equipment, net

 

 

181,701

 

 

 

193,723

 

Operating lease assets

 

 

8,342

 

 

 

8,245

 

Deferred income taxes

 

 

4,758

 

 

 

5,392

 

Other non-current assets

 

 

6,209

 

 

 

12,951

 

Total assets

 

$

446,540

 

 

$

469,244

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Accounts payable

 

$

43,564

 

 

$

43,622

 

Income taxes payable

 

 

885

 

 

 

754

 

Current operating lease liabilities

 

 

2,381

 

 

 

2,251

 

Current portion of long-term debt

 

 

11,924

 

 

 

12,277

 

Other current liabilities

 

 

19,851

 

 

 

17,662

 

Total current liabilities

 

 

78,605

 

 

 

76,566

 

Long-term debt

 

 

127,894

 

 

 

117,793

 

Non-current operating lease liabilities

 

 

6,059

 

 

 

6,124

 

Deferred income taxes

 

 

1,869

 

 

 

1,869

 

Other long-term liabilities

 

 

3,727

 

 

 

3,507

 

Total liabilities

 

 

218,154

 

 

 

205,859

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

1,836

 

 

 

1,825

 

Capital in excess of par value

 

 

73,284

 

 

 

70,952

 

Retained earnings

 

 

223,579

 

 

 

259,397

 

Accumulated other comprehensive loss

 

 

(70,313

)

 

 

(68,789

)

Total shareholders’ equity

 

 

228,386

 

 

 

263,385

 

Total liabilities and shareholders’ equity

 

$

446,540

 

 

$

469,244

 

 

 


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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

For the Nine Months Ended

 

 

 

March 30, 2025

 

 

March 31, 2024

 

Cash and cash equivalents at beginning of period

 

$

26,805

 

 

$

46,960

 

Operating activities:

 

 

 

 

 

 

Net loss

 

 

(35,818

)

 

 

(43,411

)

Adjustments to reconcile net loss to net cash (used) provided by operating activities:

 

 

 

 

 

 

Equity in loss of unconsolidated affiliates

 

 

467

 

 

 

311

 

Distribution received from unconsolidated affiliate

 

 

 

 

 

1,000

 

Depreciation and amortization expense

 

 

19,200

 

 

 

20,780

 

Non-cash compensation expense

 

 

2,442

 

 

 

1,798

 

Gain on sale of assets

 

 

(4,296

)

 

 

 

Deferred income taxes

 

 

563

 

 

 

(2,403

)

Other, net

 

 

1,525

 

 

 

(93

)

Changes in assets and liabilities

 

 

(4,077

)

 

 

23,178

 

Net cash (used) provided by operating activities

 

 

(19,994

)

 

 

1,160

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

Capital expenditures

 

 

(7,915

)

 

 

(8,566

)

Proceeds from the sale of assets

 

 

8,094

 

 

 

490

 

Net cash provided (used) by investing activities

 

 

179

 

 

 

(8,076

)

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

Proceeds from long-term debt

 

 

167,150

 

 

 

109,700

 

Payments on long-term debt

 

 

(157,447

)

 

 

(121,930

)

Other, net

 

 

(428

)

 

 

(6

)

Net cash provided (used) by financing activities

 

 

9,275

 

 

 

(12,236

)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(10

)

 

 

(146

)

Net decrease in cash and cash equivalents

 

 

(10,550

)

 

 

(19,298

)

Cash and cash equivalents at end of period

 

$

16,255

 

 

$

27,662

 

 

 


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BUSINESS SEGMENT INFORMATION

(Unaudited)

(In thousands)

Net sales and gross (loss) profit details for each reportable segment of UNIFI are as follows:

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

March 30, 2025

 

 

March 31, 2024

 

 

March 30, 2025

 

 

March 31, 2024

 

Americas

 

$

93,544

 

 

$

91,130

 

 

$

262,922

 

 

$

253,252

 

Brazil

 

 

28,124

 

 

 

29,573

 

 

 

89,916

 

 

 

85,543

 

Asia

 

 

24,889

 

 

 

28,293

 

 

 

79,971

 

 

 

85,962

 

Consolidated net sales

 

$

146,557

 

 

$

148,996

 

 

$

432,809

 

 

$

424,757

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

March 30, 2025

 

 

March 31, 2024

 

 

March 30, 2025

 

 

March 31, 2024

 

Americas

 

$

(6,957

)

 

$

(3,514

)

 

$

(14,875

)

 

$

(17,632

)

Brazil

 

 

2,988

 

 

 

3,837

 

 

 

14,711

 

 

 

9,143

 

Asia

 

 

3,524

 

 

 

4,441

 

 

 

9,711

 

 

 

14,314

 

Consolidated gross (loss) profit

 

$

(445

)

 

$

4,764

 

 

$

9,547

 

 

$

5,825

 

 

 

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 Nine Months Ended

 

 

 

March 30, 2025

 

 

March 31, 2024

 

 

March 30, 2025

 

 

March 31, 2024

 

Net loss

 

$

(16,794

)

 

$

(10,295

)

 

$

(35,818

)

 

$

(43,411

)

Interest expense, net

 

 

2,219

 

 

 

1,975

 

 

 

6,690

 

 

 

5,795

 

Provision for income taxes

 

 

499

 

 

 

790

 

 

 

4,021

 

 

 

707

 

Depreciation and amortization expense (1)

 

 

6,259

 

 

 

6,753

 

 

 

19,046

 

 

 

20,663

 

EBITDA

 

 

(7,817

)

 

 

(777

)

 

 

(6,061

)

 

 

(16,246

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition costs (2)

 

 

2,900

 

 

 

 

 

 

2,900

 

 

 

 

Gain on sale of assets (3)

 

 

 

 

 

 

 

 

(4,296

)

 

 

 

Restructuring costs (4)

 

 

 

 

 

 

 

 

 

 

 

5,101

 

Adjusted EBITDA

 

$

(4,917

)

 

$

(777

)

 

$

(7,457

)

 

$

(11,145

)

 

(1)
Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net. However, within the accompanying Condensed Consolidated Statements of Cash Flows, amortization of debt issuance costs is reflected in depreciation and amortization expense.
(2)
In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations.
(3)
In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina.
(4)
In the second quarter of fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.

 

 

 


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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”), (ii) Provision for income taxes (“Tax Impact”), (iii) Net loss (“Net Loss”) to Adjusted Net Loss, and (iv) Diluted Earnings Per Share (“Diluted EPS”) to Adjusted EPS. Rounding may impact certain of the below calculations.

 

 

 

For the Three Months Ended March 30, 2025

 

 

For the Three Months Ended March 31, 2024

 

 

 

Pre-tax Loss

 

 

Tax Impact

 

 

Net Loss

 

 

Diluted EPS

 

 

Pre-tax Loss

 

 

Tax Impact

 

 

Net Loss

 

 

Diluted EPS

 

GAAP results

 

$

(16,295

)

 

$

(499

)

 

$

(16,794

)

 

$

(0.92

)

 

$

(9,505

)

 

$

(790

)

 

$

(10,295

)

 

$

(0.57

)

Transition costs (1)

 

 

2,900

 

 

 

 

 

 

2,900

 

 

 

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted results

 

$

(13,395

)

 

$

(499

)

 

$

(13,894

)

 

$

(0.76

)

 

$

(9,505

)

 

$

(790

)

 

$

(10,295

)

 

$

(0.57

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

18,352

 

 

 

 

 

 

 

 

 

 

 

 

18,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended March 30, 2025

 

 

For the Nine Months Ended March 31, 2024

 

 

 

Pre-tax Loss

 

 

Tax Impact

 

 

Net Loss

 

 

Diluted EPS

 

 

Pre-tax Loss

 

 

Tax Impact

 

 

Net Loss

 

 

Diluted EPS

 

GAAP results

 

$

(31,797

)

 

$

(4,021

)

 

$

(35,818

)

 

$

(1.96

)

 

$

(42,704

)

 

$

(707

)

 

$

(43,411

)

 

$

(2.40

)

Transition costs (1)

 

 

2,900

 

 

 

 

 

 

2,900

 

 

 

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of assets (2)

 

 

(4,296

)

 

 

 

 

 

(4,296

)

 

 

(0.23

)

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring costs (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,101

 

 

 

 

 

 

5,101

 

 

 

0.29

 

Adjusted results

 

$

(33,193

)

 

$

(4,021

)

 

$

(37,214

)

 

$

(2.03

)

 

$

(37,603

)

 

$

(707

)

 

$

(38,310

)

 

$

(2.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

18,299

 

 

 

 

 

 

 

 

 

 

 

 

18,121

 

 

(1)
In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.
(2)
In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses and capital losses in the U.S.
(3)
In the second quarter of fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.

Net Debt (Non-GAAP Financial Measure)

Reconciliations of Net Debt are as follows:

 

 

March 30, 2025

 

 

June 30, 2024

 

Long-term debt

 

$

127,894

 

 

$

117,793

 

Current portion of long-term debt

 

 

11,924

 

 

 

12,277

 

Unamortized debt issuance costs

 

 

184

 

 

 

229

 

Debt principal

 

 

140,002

 

 

 

130,299

 

Less: cash and cash equivalents

 

 

16,255

 

 

 

26,805

 

Net Debt

 

$

123,747

 

 

$

103,494

 

Cash and cash equivalents

At March 30, 2025 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.

 


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Non-GAAP Financial Measures

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

EBITDA represents Net (loss) income before net interest expense, income tax expense, and depreciation and amortization expense.
Adjusted EBITDA represents EBITDA adjusted to exclude, from time to time, certain adjustments necessary to understand and compare the underlying results of UNIFI.
Adjusted Net (Loss) Income represents Net (loss) income calculated under GAAP adjusted to exclude certain amounts. Management believes the excluded amounts do not reflect the ongoing operations and performance of UNIFI and/or exclusion may be necessary to understand and compare the underlying results of UNIFI.
Adjusted EPS represents Adjusted Net (Loss) Income divided by UNIFI’s weighted average common shares outstanding.
Net Debt represents debt principal less cash and cash equivalents.

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

 


img83572333_0.jpg

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.

-end-

 

 


EX-99.2 3 ufi-ex99_2.htm EX-99.2

Slide 1

Third Quarter Fiscal 2025 Earnings Conference Call Exhibit 99.2 March 30, 2025 (Unaudited results) (Amounts and dollars in millions, unless otherwise noted) UNIFI, INC.


Slide 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 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


Slide 3

Today’s Speakers Al Carey Executive Chairman Eddie Ingle CEO and Director A.J. Eaker EVP, CFO, and Treasurer 3


Slide 4

Consolidated Revenue $146.6M (-1.6%) Adjusted EPS1 ($0.76) (-33.5%) Adjusted EBITDA1 ($4.9)M (-533%) REPREVE® Fiber % of Sales 31% (0 bps) Q3 Fiscal 2025 Overview Note: REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies. 1 Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures described on Slide 2 and reconciled within the Earnings Release dated April 30, 2025. (compared to Q3 Fiscal 2024) 4 Strong performance for Brazil segment, improving environment for Central America, while REPREVE Fiber and Beyond Apparel initiatives continue to gain traction, positioning UNIFI for future growth. Manufacturing consolidation efforts progressing well, with pending sale of large property, and significant future savings opportunity from improved capacity utilization.


Slide 5

As a % of Net 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 REPREVE® Fiber Sales


Slide 6

New Launches & REPREVE Takeback™ Growth & 6


Slide 7

Award Recognition 7


Slide 8

Consolidated Highlights Q3 FY25 Q3 FY24 YoY Change Net Sales $146.6 $149.0 (1.6)% Gross (Loss) Profit ($0.4) $4.8 (109.3)% Gross Margin (0.3)% 3.2% (350) Bps Highlights/Drivers Net sales were generally consistent with the prior year due to continued improvement efforts for the Americas Segment and consistently robust sales volumes in the Brazil Segment. Gross profit was unfavorably impacted by softer sales and profitability in the Asia Segment and inflationary pressures and transition costs related to the manufacturing footprint reduction in the Americas Segment. Note: Q3 FY25 ended on March 30, 2025; Q3 FY24 ended on March 31, 2024; and each contained 13 weeks. 8


Slide 9

Q3 FY25 Q3 FY24 YoY Change Net Sales $93.5 $91.1 2.6% Gross Loss ($7.0) ($3.5) (98.0)% Gross Margin (7.4)% (3.9)% (350) bps Highlights/Drivers Net sales increased vs. prior year, primarily due to higher sales volumes from REPREVE Fiber and Beyond Apparel initiatives, while gross profit was lower due to inflationary pressures and transition costs related to the manufacturing footprint reduction. 9 Americas Highlights Note: Q3 FY25 ended on March 30, 2025; Q3 FY24 ended on March 31, 2024; and each contained 13 weeks.


Slide 10

10 Q3 FY25 Q3 FY24 YoY Change Net Sales $28.1 $29.6 (4.9)% Gross Profit $3.0 $3.8 (22.1)% Gross Margin 10.6% 13.0% (240) bps Highlights/Drivers Net sales and gross profit decreased vs. prior year, primarily due to unfavorable foreign currency translation effects and cost dynamics; despite continued demand stability and growth potential. 10 Brazil Highlights Note: Q3 FY25 ended on March 30, 2025; Q3 FY24 ended on March 31, 2024; and each contained 13 weeks.


Slide 11

Q3 FY25 Q3 FY24 YoY Change Net Sales $24.9 $28.3 (12.0)% Gross Profit $3.5 $4.4 (20.6)% Gross Margin 14.2% 15.7% (150) bps Highlights/Drivers Net sales and gross profit decreased vs. prior year, primarily due to lower sales volumes, a less favorable sales mix, and pricing dynamics in China. 11 Asia Highlights Note: Q3 FY25 ended on March 30, 2025; Q3 FY24 ended on March 31, 2024; and each contained 13 weeks.


Slide 12

FCF CapEx Net Debt1 Working Capital 1 Net Debt is a non-GAAP financial measure described on Slide 2 and reconciled within the Earnings Release dated April 30, 2025. 12 Capital Structure Pending asset sale expected to reduce debt principal by $50 and drive future annual savings of $3 for interest and $20 for manufacturing costs.


Slide 13

Continued Focused on Long-Term Growth 1 Adjusted EBITDA is a non-GAAP financial measure described on Slide 2 and reconciled within the Earnings Release dated April 30, 2025. 13 Q4 2025 Financial Outlook Net sales and Adjusted EBITDA** improving sequentially from the third quarter of fiscal 2025, primarily driven by further recovery for the Americas Segment. Continued restructuring and transition expenses, primarily equipment relocation and abandonment costs, of between $6.0 million and $8.0 million. Continued volatility in the effective tax rate.


Slide 14

Prepared to Pivot to Growth 1. Optimizing operations and footprint to improve financial profile. 2. Investing in innovation, REPREVE® platform, and Beyond Apparel products for richer product mix. 3. Increasing customer engagement in all business segments to grow our global market share. 4. Positioning each business segment to pivot to growth in fiscal 2026. 14 Strategic Priorities


Slide 15

Contact Investor Relations: UFI@alpha-ir.com 15