Unifi, Inc. today released preliminary operating results for its fourth quarter and fiscal year ended June 27, 2010. The company reported net income of $5.5 million or 9 cents per share for the fourth quarter of fiscal year 2010 compared to a net loss of $6.3 million or 10 cents per share for the prior year June quarter. Net sales for the fourth quarter were $177 million, an increase of $37.1 million or 26.6% compared to net sales of $140 million for the prior year quarter. Adjusted EBITDA for the fourth quarter was $14.1 million compared to Adjusted EBITDA of $9.6 million for the prior year quarter.
For the 2010 fiscal year, net income was $10.7 million or 18 cents per share, which represents the Company's first profitable year since fiscal 2000 and an improvement of $59.7 million or 97 cents per share, from the prior year period. Highlights for the 2010 fiscal year include:
Net sales increased by $63.1 million or 11.4% to $616.8 million, reflecting retail sales improvements in the Company's core apparel, home furnishings and automotive categories;
Gross profit increased by $43.0 million, reflecting the benefits of higher capacity utilization and the Company's focus on continuous improvement across the organization; and
Adjusted earnings before income taxes, depreciation and amortization (Adjusted EBITDA) increased by $32.0 million to $55.3 million for the year.
Ron Smith, Chief Financial Officer for Unifi, said, “Our volumes continued to strengthen during the June quarter as a result of improvements in retail sales, which continue to show signs of recovery and positive regional sourcing trends. Results for the quarter were also positively impacted by the Company's share of earnings in Parkdale America, as well as continued improvements in our operations in Brazil and China.”
Cash-on-hand at June 27, 2010 was $42.7 million, a decrease of $9.8 million from the end of the prior quarter, as cash generated by operations funded investments in capital expenditures, the startup of REPREVE Renewables LLC and the Company's semi-annual interest payment. During the fourth quarter, the Company also announced redemption of $15 million of its 11.5% Senior Secured Notes due 2014, which it successfully completed after year-end.
“The management team, put into place in October 2007, has done an outstanding job of developing and implementing the strategies that successfully led the Company through the recession and produced our first profitable year in ten years,” said Bill Jasper, President and CEO of Unifi. “Our consistent focus on market share, cost control, lean manufacturing and statistical process control, coupled with market improvements across our major segments, has enabled the Company to exceed its financial and operational goals for the year. As we continue to drive these efforts, we expect to maintain these gains and achieve additional improvements during the 2011 fiscal year.”
UNIFI, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) (In Thousands Except Per Share Data) | ||||||||
For the Quarters Ended | For the Years Ended | |||||||
June 27, 2010 | June 28, 2009 | June 27, 2010 | June 28, 2009 | |||||
Summary of Operations: | ||||||||
Net sales | $ 176,960 | $ 139,833 | $ 616,753 | $ 553,663 | ||||
Cost of sales | 158,712 | 127,436 | 545,253 | 525,157 | ||||
Restructuring charges (recoveries) | 485 | (202) | 739 | 91 | ||||
Write down of long-lived assets | – | 350 | 100 | 350 | ||||
Goodwill impairment | – | – | – | 18,580 | ||||
Selling, general & administrative expenses | 11,615 | 9,766 | 46,183 | 39,122 | ||||
Provision for bad debts | 216 | 620 | 123 | 2,414 | ||||
Other operating (income) expense, net | (491) | 371 | (1,033) | (5,491) | ||||
Non-operating (income) expense: | ||||||||
Interest income | (770) | (684) | (3,125) | (2,933) | ||||
Interest expense | 5,477 | 5,560 | 21,889 | 23,152 | ||||
Gain on extinguishment of debt | – | (251) | (54) | (251) | ||||
Equity in (earnings) losses of unconsolidated affiliates | (5,846) | 1,218 | (11,693) | (3,251) | ||||
Write down of investment in unconsolidated affiliate | – | – | – | 1,483 | ||||
Income (loss) from continuing operations before | ||||||||
income taxes | 7,562 | (4,351) | 18,371 | (44,760) | ||||
Provision for income taxes | 2,090 | 1,903 | 7,686 | 4,301 | ||||
Income (loss) from continuing operations | 5,472 | (6,254) | 10,685 | (49,061) | ||||
Income (loss) from discontinued operations, net of tax | – | (2) | – | 65 | ||||
Net income (loss) | $ 5,472 | $ (6,256) | $ 10,685 | $ (48,996) | ||||
Earnings (loss) per share from continuing operations | ||||||||
and net income: | ||||||||
Income (loss) per common share – basic | $ 0.09 | $ (0.10) | $ 0.18 | $ (0.79) | ||||
Income (loss) per common share – diluted | $ 0.09 | $ &nbs | ||||||
