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Jul 03, 2022
Unifi Q4 2022 Earnings Report
Reported results consistent with expectations, exhibiting strength in regional business model and agile execution. Introduced fiscal year 2023 outlook, including sales growth of 5% or more.
Key Takeaways
UNIFI's fourth quarter fiscal 2022 results were consistent with expectations, generating double-digit top-line growth. Net sales increased by 18% compared to the fourth quarter of fiscal 2021, reaching $217.6 million. Net income was $3.5 million, or $0.19 diluted earnings per share.
Net sales were $217.6 million, an increase of 18% from the fourth quarter of fiscal 2021.
Revenues from REPREVE Fiber products represented 31% of net sales compared to 38% in the fourth quarter of fiscal 2021.
Gross profit was $18.4 million compared to $27.4 million for the fourth quarter of fiscal 2021.
Net income was $3.5 million, or $0.19 diluted earnings per share (“EPS”), compared to net income of $13.4 million, or $0.70 diluted EPS for the fourth quarter of fiscal 2021.
Unifi
Unifi
Unifi Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comBrazil Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
UNIFI expects sales volume and REPREVE Fiber sales growth to drive net sales between $855 million and $885 million. Adjusted EBITDA to be between $48.0 million and $57.0 million. Effective tax rate to be between 55% and 65%. Capital expenditures of approximately $35.0 million to $40.0 million.
Positive Outlook
- Sales volume and REPREVE Fiber sales growth to drive net sales between $855 million and $885 million, which would represent an increase of 5% or more from the level achieved in fiscal 2022.
- Adjusted EBITDA to be between $48.0 million and $57.0 million.
- Effective tax rate to be between 55% and 65%, assuming no significant changes in existing tax legislation.
- Capital expenditures of approximately $35.0 million to $40.0 million, as UNIFI continues investing in new yarn texturing machinery within the U.S., El Salvador and Brazil.
- Such capital expenditure levels will be funded by available financing arrangements, and are inclusive of approximately $10.0 million to $12.0 million of routine annual maintenance.
Challenges Ahead
- There is short-term uncertainty with regard to global demand.
- Inflation concerns that will pressure our first half of fiscal 2023.
- Current headwinds from customer demand patterns will be most pronounced in the Americas segment.
- Input cost dynamics will continue for at least the first half of the fiscal year.
- First quarter will exhibit the most profitability pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income