Sales growth in the fourth quarter of fiscal 2017 was led by operations in Asia and Brazil, partially offset by challenging domestic market conditions. Net income was $9.7 million for the fourth quarter of fiscal 2017, compared to net income of $10.2 million for the fourth quarter of fiscal 2016. Net income of the company for the fiscal 2017 quarter benefitted from a lower effective tax rate, but was unfavourably impacted by higher administrative expenses.
Basic EPS of Unifi was $0.53 for the fourth quarter of fiscal 2017, compared to $0.57 for the fourth quarter of fiscal 2016, while Adjusted EPS was $0.53 for the fourth quarter of fiscal 2017, compared to $0.62 for the fourth quarter of fiscal 2016. Adjusted EBITDA was $18.8 million for the period, compared to $20.6 million for the same period in 2016.
Foreign currency translation in the fourth quarter of fiscal 2017 resulted in an increase to net sales of $1.9 million and gross profit of $0.5 million compared to the prior fiscal year’s fourth quarter, said Unifi in a press release.
Net debt (debt principal less cash and cash equivalents) was $94 million at June 25, 2017, compared to $106.4 million at June 26, 2016.
As for the fiscal ended June 25, 2017, Unifi’s net sales were $647.3 million, compared to net sales of $643.6 million for the fiscal year ended June 26, 2016. PVA portfolio performance in Asia and Brazil provided growth against difficult domestic market conditions. Operating income increased to $43.8 million in fiscal 2017 compared to $42.2 million in fiscal 2016. Lower bad debt and other operating expenses were partially offset by higher administrative expenses, which reflect investments aimed at increasing top-line growth, specifically through strategic planning, talent acquisition and commercial expansion.
Net income of Unifi was $32.9 million for fiscal 2017, compared to $34.4 million for fiscal 2016. Net income for fiscal 2017 was favourably impacted by a lower effective tax rate, but adversely impacted by a loss of approximately $1.7 million associated with a non-core divestiture and an approximately $2.2 million decline in earnings from Parkdale America, LLC (PAL). After-tax earnings from PAL declined from approximately $4 million in fiscal 2016 to approximately $1.8 million in fiscal 2017. Basic EPS was $1.81 for fiscal 2017, compared to $1.93 for fiscal 2016.
The company’s adjusted net income and adjusted EPS, both excluding the loss from a non-core divestiture, were $34.5 million and $1.90, respectively, for fiscal 2017, compared to $35.9 million and $2.01, respectively, for fiscal 2016. Adjusted net income and adjusted EPS in fiscal 2017 and fiscal 2016 were impacted by weaker results from PAL. Adjusted EBITDA, which excludes changes in earnings from PAL, was $65.6 million for fiscal 2017, compared to $65.4 million for fiscal 2016.
Foreign currency translation in fiscal 2017 resulted in an increase to net sales of $9.8 million and gross profit of $1.8 million compared to the prior fiscal year.
Unifi named Kevin Hall as CEO and he was elected as a member of the board of directors, effective May 19, 2017.
"The fourth quarter of fiscal 2017 continued to demonstrate the global opportunity of our growing portfolio of PVA products. We are pleased that the strength of our international operations allowed us to overcome ongoing headwinds in the domestic retail and apparel markets," said Hall.
"In my first two months at Unifi, I've had the opportunity to better understand the breadth and talent of our organization. As a result, I've grown even more confident in Unifi's long-term potential and the growth opportunities for Repreve and our other PVA products, which will be driven by our strong technological and operational expertise, as well as by our exciting partnerships with many of the world's leading brands and retailers," he added.
Hall continued, "As we look to the future, I believe that we will become an even stronger partner for our customers and that we will build new and more expansive relationships with like-minded global brands. In doing so, we will remain committed to innovation by building around our recent successes in the use of earth-friendly materials in combination with the technologies that improve the performance and aesthetic characteristics of high-demand products." (KD)
Fibre2Fashion News Desk – India
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