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Jun 28, 2020
Unifi Q4 2020 Earnings Report
Sales results were in-line with expectations, with strong cash generation and significantly improved liquidity.
Key Takeaways
Unifi, Inc. released operating results for the fourth fiscal quarter ended June 28, 2020, which reflect significant market disruptions as a result of the COVID-19 pandemic. The company generated significant cash from operations while reducing inventory levels and operating costs. These actions, combined with a joint venture divestiture, allowed for significant debt reduction and an increase in cash.
Net sales of $86.1 million decreased year-over-year from $179.5 million in fiscal 2019.
Revenues from REPREVE® Fiber products represented 28% of consolidated net sales.
Operating loss was $20.9 million, compared to operating income of $5.3 million in the fourth quarter of fiscal 2019, driven by lower sales and lower fixed cost absorption.
Net loss of $20.2 million, or $1.10 loss per share, compared to net income of $1.0 million, or earnings per share (“EPS”) of $0.05 for the fourth quarter of fiscal 2019.
Forward Guidance
For fiscal 2021, assuming no further significant disruptions to global markets, the Company expects sales for each business segment to grow from fourth quarter fiscal 2020 levels at different rates through the fiscal year and sequential improvement in sales and underlying business performance through each quarter of fiscal 2021.
Positive Outlook
- sales for each business segment to grow from fourth quarter fiscal 2020 levels at different rates through the fiscal year
- sequential improvement in sales and underlying business performance through each quarter of fiscal 2021
- sales of REPREVE® and specialty products to continue recent growth rates and increase as a percentage of consolidated sales
- $22.0 million of capital expenditures, including the previously-announced eAFK Evo texturing machines to begin installation in early calendar 2021 which should generate meaningful financial benefit to fiscal 2022.
Historical Earnings Impact
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