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Dec 29, 2019
Unifi Q2 2020 Earnings Report
Unifi's financial performance improved with increased net sales and operating income.
Key Takeaways
Unifi reported a slight increase in net sales and a significant improvement in operating income compared to the same quarter last year. The company's performance was driven by increased sales volumes, particularly in Asia, and a more favorable raw material cost environment.
Net sales increased by 1.1% to $169.5 million.
Operating income improved to $2.6 million, compared to an operating loss of $0.8 million in the second quarter of fiscal 2019.
Net income was $0.4 million, with diluted EPS of $0.02.
Cash and cash equivalents increased to $37.2 million.
Unifi
Unifi
Unifi Revenue by Geographic Location
Revenue by Geographic Location
Brazil Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
For fiscal year 2020, the company expects sales volumes to grow between 10% and 13% from fiscal 2019 levels, net sales between $700.0 million and $715.0 million, operating income between $20.0 million and $23.0 million, Adjusted EBITDA between $44.0 million and $47.0 million, capital expenditures of approximately $23.0 million, and an effective tax rate not to exceed 23%.
Positive Outlook
- Sales volumes to grow between 10% and 13% from fiscal 2019 levels.
- Net sales between $700.0 million and $715.0 million.
- Operating income between $20.0 million and $23.0 million.
- Adjusted EBITDA between $44.0 million and $47.0 million.
- Capital expenditures of approximately $23.0 million.
Challenges Ahead
- Global competition remains aggressive.
- International operations have faced some significant pricing pressures in fiscal 2020.
- Lower revenue expectations for Nylon.
- Softer-than-expected recovery.
- Guidance has been updated to reflect global competitive pricing pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income