Unifi, Inc. said net income for the first quarter ended Sept. 26, 2010. was $10.2 million or 17 cents per share compared to net income of $2.5 million or 4 cents per share for the prior year first quarter ended Sept. 27, 2009.  The company also reported net sales of $174 million for the current quarter, an increase of $31 million or 22% compared to net sales of $143 million for the prior year September quarter. 

First Quarter Highlights:


  • The company continued to strengthen its balance sheet with the redemption of $15 million of its 11.5% Senior Secured Notes due 2014.


  • The company's 34% interest in Parkdale America LLC contributed $8.6 million of earnings in equity affiliates, a $6.3 million increase from the prior year September quarter.


  • Adjusted earnings before income taxes, depreciation and amortization (adjusted EBITDA) were $18.4 million, a $3.3 million improvement over the prior year September quarter.
Ron Smith, Chief Financial Officer for Unifi, said, “Business conditions in the September quarter were generally favorable across our largest end use segments, and we saw continued strength in overall volume.  Results were also positively impacted by operational efficiency gains and improved domestic conversion margins.  It is important to note that while the underlying results of Parkdale America were strong, approximately $4.3 million of the company's earnings in equity affiliates for the quarter is attributable to the timing of deferred revenue recognition by Parkdale America under the terms of the cotton rebate program.”

Cash-on-hand as of Sept. 26, 2010 was $26.3 million, a decrease of $16.4 million from June 27, 2010, as the company used excess operating cash to call $15 million of the 2014 Notes.  Since Sept. 2009, total debt for the company has been reduced by more than $21 million.

At the company's annual meeting of its shareholders held earlier today, the company's shareholders approved a proposal to amend the company's Restated Certificate of Incorporation to effect a reverse stock split of the company's common stock at a reverse stock split ratio of 1-for-3 (the “Reverse Stock Split”).  The Board of Directors has authorized the company to file a certificate of amendment to its Restated Certificate of Incorporation implementing the Reverse Stock Split, which is anticipated to be effective Nov. 3, 2010.  The financial statements included in this press release have not been adjusted to reflect this pending Reverse Stock Split.

“We are pleased to begin our 2011 fiscal year with a profitable quarter, driven by the strong results of our underlying business,” said Bill Jasper, President and CEO of Unifi.  “Although uncertainty remains around consumer demand amid rising raw material prices, we are prepared to react quickly and are confident in our ability to recoup raw material cost increases we are experiencing.  
























































































































































































UNIFI, INC.              



CONSOLIDATED STATEMENTS OF OPERATIONS



(Unaudited) (In Thousands Except Per Share Data)


For the Quarters Ended




September 26, 2010

September 27, 2009






Summary of Operations:




 Net sales

$                   174,020

$                   142,851

 Cost of sales

152,857

123,445

 Restructuring charges

363

–

 Write down of long-lived assets

–

100

 Selling, general & administrative expenses

11,127

11,164

(Benefit) provision for bad debts

(41)

576

 Other operating expense (income), net

243

(87)






Non-operating (income) expense:




 Interest income

(743)

(746)

 Interest expense

5,269

5,492

 Loss (gain) on extinguishment of debt

1,144

(54)

 Equity in earnings of unconsolidated affiliates

(8,951)

(2,063)

 Income from operations before income taxes

12,752

5,024

 Provision for income taxes

2,517

2,535

               Net income


$                     10,235

$                       2,489






Earnings per share:






               Income per common share – basic


$                         0.17

$                         0.04






               Income per common share – diluted

$                         0.17

$                         0.04











 Weighted average shares outstanding – basic

60,172

62,057






 Weighted average shares outstanding – diluted

61,136

62,057