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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.
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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