Unifi, Inc. net loss for the fiscal fourth quarter, including discontinued operations, was $5.4 million or 10 cents per share, an improvement over a net loss of $9.0 million or 17 cents per share for the prior year.
Net income for the current quarter was negatively impacted by a pre-tax loss of $2.9 million associated with the early extinguishment of debt. The Company also reported a net loss of $14.4 million or $0.28 per share for the 2006 fiscal year, which represents an improvement over a net loss of $41.2 million or $0.79 per share for the 2005 fiscal year.
Excluding discontinued operations and extraordinary items, the Company reported a net loss from continuing operations of $5.2 million or $0.10 per share compared to a net loss of $12.4 million or $0.24 per share for the prior year June quarter. The Company also reported a net loss from continuing operations of $14.7 million or $0.28 per share for the 2006 fiscal year, which compares favorably to the net loss of $19.7 million or $0.38 per share for the 2005 fiscal year.
“Our results for the current fiscal year mark the second straight year of improvement. We have reduced our net loss by $55.4 million, which improvement has been driven by continued successful execution of our internal plans,” said Bill Lowe, Chief Operating Officer and CFO for Unifi. “We also successfully refinanced our long-term debt during this last fiscal quarter providing the flexibility and time to execute our longer-term external strategies.”
Net sales for the June quarter were $183.2 million, a decrease of $17.2 million or 8.6 percent compared to net sales of $200.4 million for the prior year June quarter. Net sales of $738.8 million for the 2006 fiscal year represent a decrease of $55.0 million, or 6.9 percent, over 2005 fiscal year net sales of $793.8 million.
Brian Parke, Chairman and CEO for Unifi, said, “In an environment of rising raw material prices, the ability to exceed our forecast and improve the results of our underlying business during the 2006 fiscal year, reflects the soundness of the strategies that have been in place for more than two years. We will continue to stay the course in terms of our domestic and global growth plans, as we evaluate and pursue additional opportunities to consolidate the domestic industry. We remain keenly aware of the need to return to profitability and create value to our shareholders.”
Financial Statements to Follow
UNIFI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In Thousands Except Per Share Data)
For the Quarters For the Fiscal Years
Ended Ended
June 25, June 26, June 25, June 26,
2006 2005 2006 2005
Net sales $183,208 $200,428 $738,825 $793,796
Cost of sales 171,348 199,338 696,055 762,717
Selling, general &
administrative expenses 10,402 11,663 41,534 42,211
Provision (recovery) for
bad debts (93) 8,133 1,256 13,172
Interest expense 5,203 5,361 19,247 20,575
Interest income (902) (801) (4,489) (2,152)
Other (income) expense, net (574) (1,053) (3,118) (2,300)
Equity in (earnings) losses
of unconsolidated affiliates 453 (653) (825) (6,938)
Minority interest income - (86) - (530)
Restructuring charges
(recovery) (283) (341) (254) (341)
Write down of long-lived
assets 51 603 2,366 603
Loss from early
extinguishment of debt 2,949 - 2,949 -
Loss from continuing
operations before
income taxes and
extraordinary item (5,346) (21,736) (15,896) (33,221)
Benefit for income taxes (147) (9,320) (1,170) (13,483)
Loss from continuing
operations before
extraordinary item (5,199) (12,416) (14,726) (19,738)
Income (loss) from
discontinued operations,
net of tax (196) 3,607 360 (22,644)
Extraordinary gain (loss)-
net of taxes of $0 - (185) - 1,157
Net loss $(5,395) $(8,994) $(14,366) $(41,225)
Earnings (losses) per
common share (basic and
diluted):
Net loss - continuing
operations $(0.10) $(0.24) $(0.28) $(0.38)
Net income (loss) -
discontinued
operations - 0.07 - (0.43)
Extraordinary gain
(loss)- net of taxes
of $0 - - - 0.02
Net loss $(0.10) $(0.17) $(0.28) $(0.79)
Average basic and diluted
shares outstanding 52,190 52,126 52,155 52,106
