Unifi(US:UFI)2024-08-21 20:22Financial Performance - Net sales for Q4 Fiscal 2024 were $157.5 million, a 6% increase from Q3 Fiscal 2024, driven by higher sales volumes [3]. - Revenues from REPREVE Fiber products reached $53.6 million, accounting for 34% of net sales, up from 31% in the previous quarter [3]. - Gross profit improved to $10.8 million with a gross margin of 6.9%, marking a sequential-quarter improvement across all segments [3]. - The net loss narrowed to $4.0 million, or $0.22 per share, compared to a net loss of $10.3 million, or $0.57 per share, in the previous quarter [3]. - For the fiscal year ended June 30, 2024, the company reported a net loss of $47,395,000 compared to a net loss of $46,344,000 for the previous year, reflecting a year-over-year increase in losses of approximately 2.3% [18]. - Consolidated net sales for the three months ended June 30, 2024, were $157,452,000, an increase of 4.6% from $151,058,000 in the same period last year [19]. - The gross profit for the three months ended June 30, 2024, was $10,791,000, compared to $6,025,000 for the same period last year, indicating a significant improvement in profitability [19]. - Adjusted EBITDA for Q4 Fiscal 2024 was $5.9 million, a significant improvement from a negative $0.8 million in the previous quarter [3]. - Adjusted EBITDA for the three months ended June 30, 2024, was $5,948,000, compared to an adjusted EBITDA of $1,683,000 for the same period last year, showing a substantial increase [21]. - Operating loss decreased to $0.8 million from $13.7 million in the prior year, reflecting improved gross profit performance [6]. Future Outlook - For Fiscal 2025, the company expects net sales to increase by more than 10% compared to Fiscal 2024, driven by portfolio momentum despite macroeconomic uncertainties [8]. - Capital expenditures for Fiscal 2025 are projected to range from $10.0 million to $12.0 million [9]. - The company launched two new innovative REPREVE Fiber products post-quarter end to support future growth [3]. Cash Flow and Debt - Net cash provided by operating activities for the fiscal year ended June 30, 2024, was $2,092,000, down from $4,740,000 in the previous year [18]. - The company’s net debt as of June 30, 2024, was $103,494,000, an increase from $93,939,000 as of July 2, 2023 [25]. - The company’s cash and cash equivalents at the end of the fiscal year were $26,805,000, down from $46,960,000 at the end of the previous fiscal year, reflecting a decrease of 42.9% [18]. - Capital expenditures for the fiscal year ended June 30, 2024, were $11,189,000, significantly lower than $36,434,000 in the previous year, indicating a reduction in investment spending [18]. Risks and Challenges - Forward-looking statements regarding financial outlook are subject to risks and uncertainties, including competitive pressures and changes in consumer preferences [28]. - Factors affecting future performance include sourcing and pricing of raw materials, economic conditions, and the financial health of UNIFI's customers [28]. - The company faces challenges from global competition and regulatory changes that could impact its operations [28]. - Risks related to climate change, employee relations, and the ability to protect intellectual property are also significant considerations for UNIFI [28]. Non-GAAP Financial Measures - UNIFI utilizes non-GAAP financial measures such as Adjusted EBITDA and Adjusted EPS to provide a clearer view of its operating performance, excluding certain non-recurring items [27]. - Adjusted EBITDA is used as a key performance metric for evaluating operating performance and capacity to incur and service debt, fund capital expenditures, and expand the business [27]. - Management believes that Adjusted Net (Loss) Income and Adjusted EPS assist in comparing net operating performance consistently by excluding unusual items [27]. - Net Debt is calculated as debt principal minus cash and cash equivalents, serving as a liquidity and leverage metric [27].