GREENSBORO - UNIFI, Inc. (NYSE: UFI) (together with its consolidated subsidiaries, 'UNIFI'), leading innovator in recycled and synthetic yarn, today released operating results for the fourth fiscal quarter and fiscal year ended June 30, 2024.
Fourth Quarter Fiscal 2024 Overview
Net sales were $157.5 million, an increase of 6% from the third quarter of fiscal 2024, primarily driven by higher sales volumes.
Revenues from REPREVE Fiber products were $53.6 million and represented 34% of net sales, compared to $46.8 million or 31% of net sales for the previous quarter.
Gross profit was $10.8 million and gross margin was 6.9%, representing a sequential-quarter improvement for all three reporting segments.
Net loss was $4.0 million, or $0.22 per share, compared to a net loss of $10.3 million, or $0.57 per share, for the previous quarter.
Adjusted EBITDA was $5.9 million, compared to ($0.8) million for the previous quarter and Adjusted Net Loss was $4.0 million, compared to $10.3 million.
Subsequent to quarter end, the Company launched two new innovative REPREVE Fiber products that will help support future growth.
Eddie Ingle, Chief Executive Officer of UNIFI, Inc., stated, 'We are pleased to close our fiscal 2024 with growing momentum and believe the proactive, strategic initiatives we took throughout the year have positioned UNIFI to pivot to growth and stronger profitability as we move forward. Our financial performance over the last few quarters has shown consistent top-line growth, and we reported our third consecutive quarter of gross profit improvement. To maintain this progress, we have been reinvesting our cost savings and increased profits into areas of our business that we believe will drive additional revenue and margin-enhancing opportunities over the long-term. Some of these reinvestment efforts have already begun to take shape, evident by our recent innovation announcements, including our new ThermaLoop Insulation solution and the broadening of our Textile Takeback program across filament and staple fiber. We are excited about the global opportunities that lie ahead of us, and we believe that we remain on the right path toward increasing shareholder value.'
Fourth Quarter Fiscal 2024 Compared to Fourth Quarter Fiscal 2023
Net sales increased to $157.5 million from $151.1 million, primarily due to higher sales volumes for each segment, partially offset by lower average selling prices associated with sales mix changes and lower raw material costs, particularly in the Americas Segment. Competitive market share gains helped secure additional sales volumes in both the Americas Segment and the Brazil Segment.
Gross profit increased to $10.8 million from $6.0 million. Brazil Segment gross profit improved by $3.9 million, primarily due to pricing and market share gains. Asia Segment gross profit improved by $1.0 million, primarily due to higher sales volumes.
Operating loss was $0.8 million compared to $13.7 million. The underlying improvement was primarily due to the increase in gross profit, while the prior year's operating loss included an $8.2 million impairment charge for abandonment of specialized machinery constructed in the Americas. Net loss was $4.0 million compared to $15.3 million. Adjusted EPS was ($0.22) and Adjusted EBITDA was $5.9 million, compared to ($0.39) and $1.7 million, respectively.
Fiscal 2025 Outlook
First Quarter Fiscal 2025
UNIFI expects the following first quarter fiscal 2025 results: Net sales between $147.0 million and $153.0 million; Adjusted EBITDA between $1.0 million and $3.0 million; Capital expenditures between $3.0 million and $4.0 million and Continued volatility in the effective tax rate.
Full Year Fiscal 2025
UNIFI expects the following for fiscal 2025
Net sales to increase more than 10% over fiscal 2024, as underlying portfolio and REPREVE Fiber momentum continues while macroeconomic and inflationary uncertainties remain pronounced in the second half of calendar 2024.
Gross profit, gross margin, and Adjusted EBITDA expected to increase significantly from fiscal 2024 to fiscal 2025, benefiting from higher sales volumes, initiatives from the previously announced Profitability Improvement Plan, and portfolio strength.
Capital expenditures to range from $10.0 million to $12.0 million.
Ingle concluded, 'As we look towards fiscal 2025 and beyond, our proactive innovation and cost initiatives we've taken over the last several quarters have positioned us to pivot to growth in both our REPREVE Fiber business and our beyond apparel initiatives. We continue to remain focused on diligently managing our balance sheet and operations to ensure that we are well-positioned to not only support our customers' needs with innovative products, but also deliver value for our stakeholders through improved financial performance.'
Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS are non-GAAP financial measures. The schedules included in this press release reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure.
About UNIFI
UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world's leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use and reuse. A vertically-integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil, and sales offices all over the world. UNIFI envisions a future where circular and sustainable solutions are the only choice.
Cautionary Statement on Forward-Looking Statements
Certain statements included herein contain 'forward-looking statements' within the meaning of federal securities laws about the financial condition and results of operations of UNIFI that are based on management's beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management. An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. The words 'believe,' 'may,' 'could,' 'will,' 'should,' 'would,' 'anticipate,' 'plan,' 'estimate,' 'project,' 'expect,' 'intend,' 'seek,' 'strive' and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements. These statements are not statements of historical fact, and they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement.
Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing, and pricing of raw materials; general domestic and international economic and industry conditions in markets where UNIFI competes, including economic and political factors over which UNIFI has no control; changes in consumer spending, customer preferences, fashion trends, and end-uses for UNIFI's products; the financial condition of UNIFI's customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages, extreme weather conditions, and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including, but not limited to, epidemics or pandemics; the success of UNIFI's strategic business initiatives; the volatility of financial and credit markets, including the impacts of counterparty risk (e.g., deposit concentration and recent depositor sentiment and activity); the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest, and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain, and motivate key employees; the impact of climate change or environmental, health, and safety regulations and the impact of tax laws, the judicial or administrative interpretations of tax laws, and/or changes in such laws or interpretations.
All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on UNIFI. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in UNIFI's most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by UNIFI with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.
Contact:
Josh Carroll
Tel: 312-445-2870
Email: UFI@alpha-ir.com
UNIFI, INC. 
