Unifi, Inc., which makes Repreve recycled polyester fibers, reported net income increased more than threefold on a slight decline in sales in its first quarter.
The Greensboro, NC company reported net sales decreased $4.2 million, or 2.4 percent, to $168.7 million for the quarter ended Sept. 29. The decline in overall net sales reflected stronger domestic volumes, which were offset by declines in sales volumes for the company's International Segment and the negative effects of the weakened currency in Brazil.
Net income reached $8.9 million in the quarter, compared to $2.3 million for the September 2012 quarter. The spike reflecting gains from improved margins, lower net interest expenses and higher earnings from the company's unconsolidated equity affiliates, which were only partially offset by higher expenses for income taxes.
“Improving year-over-year net income by $6.6 million during a quarter in which we experienced a decline in net sales demonstrates the results of our focus on driving financial improvement to our core business through lean manufacturing initiatives, enriching our product mix, and deriving value from sustainability based initiatives,” said Bill Jasper, Chairman and CEO of Unifi. “The positive operating results from the September 2013 quarter provide us with a strong start to our 2014 fiscal year and have enabled us to fund the company's strategic growth opportunities and continue our share repurchases.”
Cash-on-hand as of Sept. 29 was $10.3 million, an increase of $1.6 million compared to $8.7 million cash-on-hand as of June 30, 2013. Total debt at the end of the most recent quarter was $97.3 million, compared to $97.8 million at June 30, 2013, with a weighted average interest rate of 3.2 percent.
“The success of Repreve continues to drive our global mix enrichment strategy as we provide recycled product solutions to brands and retailers,” said Roger Berrier, president and chief operating officer. Our overall business fundamentals remain positive and we feel confident in the continued strength of our underlying domestic performance, even against the backdrop of an economy that remains uncertain and a sluggish retail environment. We expect operating conditions in Brazil and China to improve and become more favorable as we move through the 2014 fiscal year, which will help yield better results from our international businesses.”
