Unifi reported a net loss from continuing operations of $1.3 million or $0.02 per share for the quarter ending September 26, 2004 compared to a net loss of $2.6 million or $0.05 per share for the prior year September quarter.
Net income, including discontinued operations, was a net loss of $22.6 million or $0.43 per share, which includes the operations and associated charges related to the closure of the Company's facility in Ireland.
Net sales from continuing operations for the September quarter of
$180.2 million were up $16.5 million or 10.1% compared to net sales of
$163.7 million for the prior year September quarter. Sales volume from
continuing operations increased 7.4% this quarter over the prior comparable
quarter.
“The Company recorded an operating profit from continuing operations of
$1.0 million in the current quarter compared to a loss of $1.0 million in the
prior year quarter, indicating that the broad set of actions taken over this
calendar year has strengthened our underlying business,” said Bill Lowe, Chief
Operating Officer and CFO for Unifi. “This also marks the second consecutive
quarter in which we posted an operating profit, which is significant in that
we have accomplished this as raw materials have risen by approximately
25 percent since the prior comparable quarter. There are more challenges
ahead, but we are making steady progress in stabilizing our base business.”
Selling, general and administrative expenses were 5.3% of sales from
continuing operations compared to 7.6% of last year's comparable quarter.
Cash-on-hand at September 26, 2004 was $45.7 million.
“One can clearly see the combined impact of our business building and
consolidation efforts reflected in the operating results of our continuing
operations,” said Brian Parke, Chairman and Chief Executive Officer of Unifi.
“Our cost structure today is closely aligned with current market demands, and
the strength of our balance sheet allows us to pursue strategic business
opportunities. We will continue to be proactive in our efforts to maximize
growth in the global supply chain and manage costs and capacity relative to
market conditions.”
Unifi is a diversified producer and processor 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, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (In Thousands Except Per Share Data)
For the Quarters Ended
September 26, September 28,
2004 2003
Net sales $180,155 $163,721
Cost of goods sold 169,595 152,262
Selling, general & administrative expense 9,514 12,423
Operating profit (loss) 1,046 (964)
Interest expense 4,667 4,741
Interest income 413 742
Other (income) expense, net 458 576
Equity in earnings of
unconsolidated affiliates 1,117 257
Minority interest income 188 955
Loss before income tax benefit (2,361) (4,327)
Benefit for income taxes (1,105) (1,730)
Loss from continuing operations (1,256) (2,597)
Loss from discontinued operations -
net of tax (21,299) (1,965)
Net loss $(22,555) $(4,562)
Earnings (losses) per common share
(basic and diluted):
Net loss - continuing operations $(0.02) $(0.05)
Net loss - discontinued operations $(0.41) $(0.04)
Average diluted shares outstanding 52,077 52,746
