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Dec 26, 2021
Unifi Q2 2022 Earnings Report
Achieved strong sales and exceeded expectations, setting a multi-year record, while foreign operations maintained overall portfolio strength by counterbalancing domestic headwinds.
Key Takeaways
Unifi, Inc. reported net sales of $201.4 million, a 23.7% increase year-over-year, driven by strong international performance, but domestic labor and input cost headwinds pressured overall profitability. REPREVE® Fiber product sales reached 40% of consolidated sales. The company expects net sales to increase by 20% or more in fiscal year 2022.
Net sales increased 23.7% to $201.4 million compared to the second quarter of fiscal 2021.
REPREVE® Fiber products represented 40% of net sales, up from 38% in the second quarter of fiscal 2021.
Operating income decreased to $4.6 million, from $13.1 million, primarily due to the decrease in gross profit associated with input cost and efficiency pressures.
Net income was $0.9 million, or $0.05 per share, compared to $7.5 million, or $0.40 per share for the second quarter of fiscal 2021.
Revenue by Geographic Location
Forward Guidance
The Company’s updated expectations for fiscal 2022, assuming there are no further significant disruptions to global markets, supply chains, or the labor market and no further adverse impacts from COVID-19.
Positive Outlook
- Sales volume and REPREVE® Fiber sales growth driving net sales to $800 million or more, which would represent an increase of 20% or more from the level achieved in fiscal 2021.
- Adjusted EBITDA to range between $60.0 million and $62.0 million, with a larger portion of second half fiscal 2022 profitability being generated in the fourth quarter ending July 3, 2022 rather than the third quarter ending March 27, 2022.
- An effective tax rate between 40% and 50%, assuming no significant changes in existing tax legislation.
- Capital expenditures of approximately $40.0 million to $44.0 million, as the Company continues its plan to invest in new yarn texturing machinery within its Americas facilities.
- Such capital expenditure levels will be funded by cash on-hand and available financing arrangements and are inclusive of approximately $10.0 million to $12.0 million of routine annual maintenance.
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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