Net income for the September 2013 quarter was $8.9 million, or $0.46 per share, compared to net income of $2.3 million, or $0.11 per share, for the September 2012 quarter, 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.
Highlights for the September 2013 quarter included:
- Adjusted EBITDA improved to $14.5 million for the September 2013 quarter from $13.8 million for the September 2012 quarter;
- Domestic gross margins improved significantly as a result of higher sales volumes, increased selling margins, and lower expenses for depreciation;
- Earnings from the Company's unconsolidated equity affiliates increased $5.5 million in the current September quarter compared to the prior year quarter, primarily attributable to Parkdale America; and
- The Company used $5.8 million of excess cash flows from operations to repurchase 249,000 shares of the Company's common stock.
Although net sales decreased $4.2 million or 2.4% to $168.7 million for the September 2013 quarter compared to net sales of $172.9 million for the September 2012 quarter, net income increased by $6.6 million. The decline in overall net sales reflects 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.
"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 September 29, 2013 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 September 2013 quarter was $97.3 million, compared to $97.8 million at June 30, 2013, with a weighted average interest rate of 3.2%.
Roger Berrier, President and Chief Operating Officer of Unifi, added: "The success of Repreve continues to drive our global mix enrichment strategy as we provide recycled product solutions to brands and retailers.
"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."
Textiles | On 20th Jan 2017
Bangladesh is expected to earn over $60 billion in exports by the...
Textiles | On 20th Jan 2017
Xeros technology group plc, the developer and provider of patented...
Apparel/Garments | On 20th Jan 2017
US based footwear, accessories and denim company Nine West Holdings...
‘Buying crowdsourced or creative designs are much more appealing to the...
Sedo Treepoint GmbH
We see a higher demand in colour management systems, as customers see big...
Palod Himson Machines
Fabric processing machines are picking up
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
About one in every 20 patients picks up an infection while hospitalised....
Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...
"We should not compare India and the West. There are things we do that...
Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...
Somaiya Kala Vidya
Among the many honours showered on Frater, including Fulbright and Ford...
Apparel/Garments | On 19th Jan 2017