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Mar 28, 2021
Unifi Q3 2021 Earnings Report
Unifi's third quarter fiscal 2021 results were released, showing better than anticipated performance driven by a dynamic global business model and robust execution.
Key Takeaways
Unifi, Inc. reported net sales of $178.9 million, a 4.6% increase year-over-year. Net income was $4.8 million, or $0.25 of diluted earnings per share. Adjusted EBITDA was up 70.1% to $15.9 million.
Net sales increased by 4.6% year-over-year to $178.9 million.
REPREVE Fiber products accounted for 33% of consolidated net sales, up from 29% in the prior year.
Gross profit increased by 66% year-over-year to $25.6 million, with a gross margin of 14.3%.
Net income was $4.8 million, or $0.25 per share, compared to a net loss of $41.1 million, or $2.23 per share, in the prior year.
Revenue by Geographic Location
Forward Guidance
The Company expects demand levels and trends across the business to remain strong and anticipates current inflationary pressures from raw material fluctuations to be mostly offset by selling price adjustments. The Company’s outlook for the June 2021 quarter includes the following expectations:
Positive Outlook
- Sales volumes to increase, with net sales improving sequentially from the March 2021 quarter by approximately 1.0% to 3.0%
- Adjusted EBITDA to range from approximately $12.0 million to $14.0 million
- Consideration for continued underlying business momentum in spite of pandemic uncertainty
- Lack of incentive compensation expense due to full recognition during the first nine months of fiscal 2021
Challenges Ahead
- Pandemic uncertainty
- Expected reduction from the recent exceptional performance of the Brazil Segment
- Recent global raw material cost increases that will adversely impact gross profit due to the inherent lag in responsive selling price adjustments
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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