Xesai/E+ via Getty Images There's been little to celebrate at Unifi (NYSE:UFI) since my last update on this U.S.-based polyester yarn company. Retail spending has remained lackluster and while retailers are done with their large inventory restructurings, they've been cautious as a group when it comes to restocking/reordering. Couple that with ongoing volume growth from Asian producers, and it's a tough set up for Unifi that has led to ongoing weakness in revenue and margins. Unifi's shares have dropped anot ...

Financial Data and Key Metrics Changes - For Q3 fiscal 2024, consolidated net sales were $149 million, up approximately 9% compared to Q2 fiscal 2024, driven by market improvements and market share gains [27][33] - EBITDA improved by $5 million compared to Q2 fiscal 2024, indicating a positive trend in profitability [25] - The company expects to reduce expenses by approximately $2.5 million per quarter starting in fiscal 2025 [12][27] Business Line Data and Key Metrics Changes - In the Americas segment, net sales improved by 13% sequentially, attributed to higher sales volumes and market share gains [13][28] - The Brazil segment saw an increase in market share from 12% to 18% over recent quarters, despite competitive pricing pressures [28] - REPREVE products represented 31% of sales, a 6% decrease from Q2, but sales increased by $1.1 million sequentially [29] Market Data and Key Metrics Changes - The company is experiencing a recovery in Asia, although results were impacted by the Chinese New Year [8][14] - The Americas and Brazil segments are showing improved customer morale and increased engagement, particularly in non-apparel sectors [41][54] Company Strategy and Development Direction - The company is focused on a sales transformation initiative aimed at improving efficiencies and inventory management, with expectations of a $6 million annual improvement in gross profit [7][12] - Sustainability efforts are highlighted, including ambitious recycling targets and the launch of the REPREVE Champions of Sustainability Awards [9][10][30] - The management team is optimistic about growth opportunities and plans to reinvest cost savings into revenue-enhancing areas [12][16] Management's Comments on Operating Environment and Future Outlook - Management is cautiously optimistic about moving out of the inventory destocking period, expecting improved demand in the apparel industry [6][16] - The company anticipates net sales for Q4 fiscal 2024 to be between $160 million and $165 million, indicating continued growth [36] - Management acknowledges conservative ordering from customers due to cash management concerns but sees positive signs of recovery [54] Other Important Information - The company has implemented a Profitability Improvement Plan that is progressing as anticipated, focusing on maintaining low variable operating expenses [12][27] - The company is actively managing working capital and has seen improvements in free cash flow [35] Q&A Session Summary Question: Impact of Chinese New Year on Asia sales - Management noted that while there was a sequential decline due to the Chinese New Year, year-over-year comparisons showed improvement [38][39] Question: Details on pricing and volumes in each region - Management indicated that pricing strategies are slightly upward and volumes are increasing across all regions, contributing to revenue growth [45] Question: Future CapEx plans - Management expects to maintain capital expenditures at modest levels, focusing on maintenance and inventory turns [48][49]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (Exact name of registrant as specified in its charter) New York 11-2165495 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 7201 West Friendly Avenue Greensboro, North Carolina 27410 (Address of principal executive offices) (Zip Cod ...

Exhibit 99.1 UNIFI®, Makers of REPREVE®, Announces Third Quarter Fiscal 2024 Results Recently implemented Profitability Improvement Plan enhances financial performance during the third quarter Business remains well positioned for apparel demand recovery GREENSBORO, N.C., May 8, 2024 – Unifi, Inc. (NYSE: UFI) (together with its consolidated subsidiaries, "UNIFI"), makers of REPREVE and one of the world's leading innovators in recycled and synthetic yarns, today released operating results for the third fiscal ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-10542 UNIFI, INC. (Exact name of registrant as specified in its charter) New York 11-2165495 (State or other jurisdiction of ( ...

(1) Net Debt is a non-GAAP measure described on Slide 2 and reconciled within the Earnings Release dated January 31, 2024. • Scrutinizing working capital expenditures to reduce interest expense and improve cash flows • Increasing customer engagement in all business segments to increase global market share | --- | --- | --- | |------------------------|-------------------------------------------------------------|----------------------| | Key Financial Metrics | Q2 FY24 Results | Q3 FY24 Outlook | | Net Sales ...

Unifi, Inc. (NYSE:UFI) Q2 2024 Earnings Conference Call February 1, 2024 10:30 AM ET Company Participants Albert Carey - Executive Chairman Edmund Ingle - CEO Andrew Eaker - Treasurer Conference Call Participants Anthony Lebiedzinski - Sidoti Operator Good morning, and thank you for attending Unifi's Second Quarter Fiscal 2024 Earnings Conference Call. Today's conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a que ...

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended October 1, 2023, including balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$516,261 thousand** as of October 1, 2023, primarily due to reduced inventories and receivables, while total shareholders' equity declined Balance Sheet Highlights (in thousands) | Account | October 1, 2023 | July 2, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $51,515 | $46,960 | | Inventories | $136,092 | $150,810 | | Total current assets | $277,324 | $294,060 | | Total assets | $516,261 | $538,819 | | Total current liabilities | $68,711 | $71,995 | | Long-term debt | $128,890 | $128,604 | | Total liabilities | $211,232 | $215,209 | | Total shareholders' equity | $305,029 | $323,610 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The company reported a net loss of **$13,270 thousand** for the three months ended October 1, 2023, driven by a 22.7% decrease in net sales and a shift to a gross loss Quarterly Statement of Operations (in thousands, except per share amounts) | Metric | For the Three Months Ended Oct 1, 2023 | For the Three Months Ended Oct 2, 2022 | | :--- | :--- | :--- | | Net sales | $138,844 | $179,519 | | Gross (loss) profit | $(575) | $6,563 | | Operating loss | $(12,029) | $(4,695) | | Net loss | $(13,270) | $(7,834) | | Diluted net loss per share | $(0.73) | $(0.44) | - Comprehensive loss for the quarter was **$18,800 thousand**, compared to **$13,700 thousand** in the prior-year period, exacerbated by foreign currency translation adjustments[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated **$7,119 thousand** in cash, a significant improvement from the prior-year period, primarily due to favorable working capital changes despite a higher net loss Cash Flow Summary (in thousands) | Activity | For the Three Months Ended Oct 1, 2023 | For the Three Months Ended Oct 2, 2022 | | :--- | :--- | :--- | | Net cash provided (used) by operating activities | $7,119 | $(5,892) | | Net cash used by investing activities | $(2,480) | $(11,420) | | Net cash provided by financing activities | $604 | $12,713 | | Net increase (decrease) in cash | $4,555 | $(6,090) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies and financial data, including revenue disaggregation, long-term debt, and segment performance Net Sales by Product Type (in thousands) | Product/Service | For the Three Months Ended Oct 1, 2023 | For the Three Months Ended Oct 2, 2022 | | :--- | :--- | :--- | | REPREVE® Fiber | $42,461 | $49,179 | | All other products and services | $96,383 | $130,340 | | **Total Net Sales** | **$138,844** | **$179,519** | Segment Financials for Q1 FY2024 (in thousands) | Segment | Net Sales | Gross (Loss) Profit | | :--- | :--- | :--- | | Americas | $81,573 | $(7,380) | | Brazil | $29,909 | $2,167 | | Asia | $27,362 | $4,638 | - Total debt principal stood at **$141,487 thousand** as of October 1, 2023, primarily composed of an ABL Term Loan and ABL Revolver[40](index=40&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the adverse impact of the current economic environment and decreased textile demand on financial results, covering sales decline, gross loss, segment challenges, and liquidity management [Overview and Significant General Matters](index=16&type=section&id=Overview%20and%20Significant%20General%20Matters) The company's Q1 FY2024 performance was adversely impacted by decreased textile demand and inventory destocking, leading to strategic focus on non-apparel markets and innovation - The current economic environment, including inflation and inventory destocking, significantly decreased textile product demand, adversely impacting sales and profitability[88](index=88&type=chunk) - Strategic initiatives include expanding into non-apparel markets, advancing innovative solutions, and increasing REPREVE® brand awareness to drive revenue and profitability[87](index=87&type=chunk) [Review of Results of Operations](index=18&type=section&id=Review%20of%20Results%20of%20Operations) Consolidated net sales fell **22.7%** to **$138,844 thousand**, resulting in a gross loss due to lower volumes and average selling prices, with the Americas segment most impacted Consolidated Operations Overview (in thousands) | Metric | Q1 FY2024 | Q1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $138,844 | $179,519 | (22.7)% | | Gross (loss) profit | $(575) | $6,563 | (108.8)% | | Operating loss | $(12,029) | $(4,695) | 156.2% | | Net loss | $(13,270) | $(7,834) | 69.4% | - The decrease in net sales was attributed to lower volumes in the Americas and Asia segments due to weak global apparel demand and inventory destocking, along with a **17.5%** decrease in consolidated weighted average sales prices[102](index=102&type=chunk)[103](index=103&type=chunk) - Adjusted EBITDA turned negative to **$(4,800) thousand** from **$2,300 thousand** in the prior-year quarter, primarily due to the significant decline in gross profit[99](index=99&type=chunk)[113](index=113&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with **$95,679 thousand** in total liquidity as of October 1, 2023, while net debt decreased and operating cash flow improved significantly Liquidity Summary (in thousands) | Component | October 1, 2023 | | :--- | :--- | | Cash and cash equivalents | $51,515 | | Borrowings available under financing arrangements | $44,164 | | **Total Liquidity** | **$95,679** | Net Debt Reconciliation (in thousands) | Component | October 1, 2023 | July 2, 2023 | | :--- | :--- | :--- | | Debt principal | $141,487 | $140,899 | | Less: cash and cash equivalents | $(51,515) | $(46,960) | | **Net Debt** | **$89,972** | **$93,939** | - Net cash provided by operating activities increased to **$7,119 thousand** from a use of **$5,892 thousand** in the prior year, primarily due to reduced working capital needs associated with declining business activity[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) UNIFI is exposed to market risks from interest rates, foreign currency exchange rates, and raw material costs, with significant foreign currency exposure from its international operations - The company is exposed to interest rate risk on its **$129,800 thousand** ABL Facility borrowings, where a **50-basis point** increase would raise annual interest expense by approximately **$700 thousand**[145](index=145&type=chunk) - Significant foreign currency exchange rate risk exists, as **31.0%** of consolidated assets and **99.1%** of cash are held by non-U.S. subsidiaries[146](index=146&type=chunk) - The company is also exposed to geopolitical risks, including changes in international trade laws and raw material cost fluctuations[147](index=147&type=chunk)[148](index=148&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of October 1, 2023, with no material changes in internal control over financial reporting during the quarter - The principal executive officer and interim principal financial officer concluded that the company's disclosure controls and procedures are effective as of October 1, 2023[149](index=149&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[150](index=150&type=chunk) [PART II—OTHER INFORMATION](index=26&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, none of which are expected to have a material adverse effect on its financial position or results - The company is party to various lawsuits and claims arising in the ordinary course of business, none of which are expected to have a material adverse effect[152](index=152&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not applicable[153](index=153&type=chunk) [Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents - Exhibits filed include the Director Compensation Policy, CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and Inline XBRL data files[154](index=154&type=chunk)

Unifi, Inc. (NYSE:UFI) Q1 2024 Earnings Conference Call November 2, 2023 ET Company Participants Albert Carey - Executive Chairman Edmund Ingle - CEO A.J. Eaker - Treasurer Conference Call Participants Anthony Lebiedzinski - Sidoti A.J. Eaker Good morning, everyone. Thank you for attending Unifi's First Quarter Fiscal 2024 Earnings Conference Call. We do apologize for the technical difficulties and the late start, but we will be quick and I hope to answer your questions as quickly as possible. Today's confe ...

Exhibit 99.2 1 CONFERENCE CALL PRESENTATION First Quarter Ended October 1, 2023 (Unaudited Results) CAUTIONARY STATEMENTS Forward-Looking Statements Certain statements included herein contain "forward-looking statements" within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management's beliefs, assumptions, and expectations about our future economic performance, considering the information currently available to management. An ...