Home / Knowledge / News / Textiles / Profits at Unifi post smart turnaround in Q2FY'13
Profits at Unifi post smart turnaround in Q2FY'13
23
Jan '13
Unifi, Inc. released preliminary operating results for its second fiscal quarter ended December 23, 2012.  The Company reported net income of $2.4 million, or $0.12 per share, compared to a net loss of $7.6 million, or $0.38 per share, for the prior year fiscal quarter ended December 25, 2011.  Net sales increased $5.0 million, or 3.0%, to $172 million for the December 2012 quarter, compared to net sales of $167 million for the December 2011 quarter. 
 
Highlights for the December 2012 quarter over prior year quarter results include the following:
-Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) improved $4.8 million to $12.2 million;
-Gross profit improved $5.8 million as a result of volume growth in each of the Company's operating segments;
-Conversion margins improved as a result of the increased volumes in the Company's premier value-added portfolio; and
-Interest expense decreased $2.9 million as a result of the continuing execution of the Company's deleveraging strategy. 
 
The Company reported net income of $4.7 million, or $0.23 per share, for the six months ended December 23, 2012, compared to a net loss of $7.3 million, or $0.36 per share, for the prior year period.  Net sales increased $6.8 million, or 2.0%, to $345 million for the first six months of fiscal year 2013 compared to net sales of $338 million for the prior year period.  
 
Results for the first six months of fiscal 2013 were negatively impacted by a $3.8 million reduction in earnings from the Company's equity investment in Parkdale America, caused by margin pressures related to the softness in the cotton apparel market and differences in the recognition of earnings under the Farm Bill's economic adjustment payments program.
 
"The results in the current quarter reflect the Company's ability to drive financial improvement in our core business through disciplined process improvement across all of our operating segments and the success of our mix enrichment strategy domestically," said Bill Jasper, Chairman and CEO of Unifi.  "Higher capacity utilization rates and moderating raw materials pricing compared to the prior year quarter resulted in lower operating costs and improved conversion margins.  Although we are encouraged that the U.S. economy continued to grow at a modest pace during the December 2012 quarter, we will continue to closely manage our operating rates and inventory in order to respond quickly to any changes in retail demand."
 
Cash-on-hand as of December 23, 2012 was $15.2 million, an increase of $4.3 million compared to $10.9 million cash-on-hand as of June 24, 2012.  Total debt at the end of the December 2012 quarter was $106.7 million.


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Madhu Jain
Madhu Jain

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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