Brazil continues to exceed projections – Unifi
Unifi, Inc released preliminary operating results for its third fiscal quarter ended March 28, 2010.
The Company is reporting net sales of $154.7 million for the third quarter of fiscal year 2010, an increase of $35.6 million or 29.9% compared to the prior year quarter and $12.4 million or 8.7% compared to the December 2009 quarter. Net sales were positively impacted by improved market conditions across all of the Company's key segments, as well as continued growth in Brazil.
The Company is reporting net income of $0.8 million or $0.01 per share for the third quarter of fiscal year 2010 compared to a net loss of $33.0 million or $0.53 per share for the prior year quarter. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) were $12.7 million for the third quarter, an improvement of $15.0 million compared to the prior year quarter. The substantial year- over-year improvements in quarterly results were the result of:
• Significantly improved retail demand in apparel, furnishings and automotive, as the economic recovery continues;
• Higher utilization levels across the regional supply chain;
• Continued improvement in the Brazilian market; and
• Cost and efficiency improvements realized over the last year.
Compared to the prior year period, net sales for the first nine months of the 2010 fiscal year improved by $26.0 million or 6.3% to $439.8 million. The Company is reporting net income of $5.2 million or $0.09 per share for the year-to-date period of fiscal year 2010 compared to a net loss of $42.7 million or $0.69 per share for the prior year period, and Adjusted EBITDA increased $27.4 million to $41.1 million.
Ron Smith, Chief Financial Officer for Unifi, said, "Higher utilization rates and overall operational improvements have contributed to increases in gross profit for the first nine months of the fiscal year. Our share gain efforts, as well as rising raw material costs, squeezed margins somewhat in the quarter, and we expect to regain those margins over the next few months."
Cash-on-hand at the end of March 2010 was $52.5 million, a decrease of $1.9 million from the end of December 2009, as cash generated by operations was reinvested into the working capital required to support the higher volumes that the Company experienced. Total long-term debt declined $2.2 million from the end of December to $181.2 million.
"We are very pleased to be reporting profitability in each of the first three quarters of the fiscal year, especially in a recovering economic environment," said Bill Jasper, President and CEO of Unifi. "Our aggressive cost reductions and disciplined task-based improvement process continue to contribute significantly to our improved cost basis and the strength of our balance sheet. Our domestic business is improving, and Brazil continues to exceed projections. We will continue to focus on cash generation and deleveraging our balance sheet, while funding targeted growth opportunities in our global businesses."