Home / Knowledge / News / Textiles / Unifi's Q3 net income surges to $7.5 million
Unifi's Q3 net income surges to $7.5 million
27
Apr '12
Unifi Inc released preliminary operating results for its third quarter ended March 25, 2012. The Company is reporting net income of $7.5 million, or $0.38 per share, for the March 2012 quarter compared to a net loss of $4.0 million, or $0.20 per share, for the prior year quarter.

The improvement was a result of the strengthening of the Company's domestic polyester segment and $9.7 million of earnings from its equity investment in Parkdale America, LLC. Net sales for the March 2012 quarter were $179 million, approximately equal to the March 2011 quarter as a slight decrease in volume was offset by a 3.2% increase in selling price.

Net sales for the first nine months of fiscal 2012 were $517 million, also approximately equal to the prior year period as volume declines were offset by an 8.0% increase in selling prices, which were mostly related to higher raw material costs.

The Company is reporting net income of $213 thousand, or $0.01 per share, for the first nine months of the 2012 fiscal year compared to net income of $11.6 million, or $0.58 per share, for the prior year period. Fiscal year to date net income was negatively impacted by significantly higher raw materials costs, lower volumes as a result of the inventory destocking across the North American apparel supply chain, a write-down of an investment in an equity interest, and weakness in Brazil related to currency fluctuations.

"We expected to see better results as we entered the second half of our 2012 fiscal year and clearly saw an improving trend through the March quarter," said Bill Jasper, Chairman and CEO of Unifi.

"Retail sales increased in each of our core business segments, apparel inventory destocking across the supply chain is now largely completed, U.S. market synthetic apparel supplied by the North American region continues to grow, and the weakened currency in Brazil is making domestic production there more competitive. Coupled with anticipated moderation in polyester raw materials prices, these conditions led to improved operating results during the quarter and are expected to result in continued operating improvements for the Company over the next few quarters."

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) were $10.3 million for the March 2012 quarter compared to $12.3 million for the prior year quarter as improvements in the Company's polyester segment were offset by declines in the nylon and international segments.

Adjusted EBITDA for the first nine months of fiscal year 2012 was $25.7 million. Cash-on-hand as of March 25, 2012 was $35.8 million and long-term debt remained unchanged from the quarter ended December 25, 2011 at $123.7 million of the Company's 11.5% Senior Secured Notes due May 2014 and $35.0 million of borrowings under the revolving credit facility.

As previously disclosed on April 24, 2012, the Company announced the full call for redemption of its remaining outstanding 2014 Senior Secured Notes and that it had entered into commitment letters for a new debt structure, comprised of a $150 million senior secured credit facility and a $30 million Term B loan.


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search