Unifi(US:UFI)2025-02-05 21:26Financial Performance - Net sales for Q2 Fiscal 2025 were $138.9 million, a 1.4% increase from $136.9 million in Q2 Fiscal 2024, driven by higher sales volumes[4] - Revenues from REPREVE Fiber products were $43.3 million, representing 31% of net sales, down from $45.7 million or 33% in Q2 Fiscal 2024[4] - Gross profit decreased to $0.5 million with a gross margin of 0.4%, compared to $1.6 million and 1.2% in Q2 Fiscal 2024[4] - The net loss was $11.4 million, or $0.62 per share, an improvement from a net loss of $19.8 million, or $1.10 per share, in Q2 Fiscal 2024[4] - Adjusted EBITDA was $(5.8) million, slightly worse than $(5.5) million in Q2 Fiscal 2024[4] - Consolidated net sales for the three months ended December 29, 2024, were $138.88 million, an increase from $136.92 million for the same period in 2023, representing a growth of 1.4%[25] - The Americas segment reported net sales of $83.10 million for the three months ended December 29, 2024, compared to $80.55 million in the prior year, reflecting a growth of 3.1%[25] - Consolidated gross profit for the three months ended December 29, 2024, was $534,000, a significant decrease from $1.64 million in the same period of 2023[25] - The net loss for the three months ended December 29, 2024, was $11.39 million, compared to a net loss of $19.85 million for the same period in 2023, showing an improvement of 42.5%[28] - Adjusted EBITDA for the three months ended December 29, 2024, was a loss of $5.84 million, compared to a loss of $5.53 million in the same period of 2023[28] Future Outlook - The company expects net sales for Fiscal 2025 to be approximately equal to Fiscal 2024, with sequential improvement in the second half[9] - The outlook for Fiscal 2025 includes expectations for increased gross profit and gross margin, despite potential transition costs[16] - The Americas Segment is expected to drive sequential improvement in net sales and Adjusted EBITDA from Q2 Fiscal 2025[10] Operational Changes - The company is consolidating its U.S. manufacturing footprint to enhance operational efficiency and profitability[3] - Capital expenditures are projected to be between $5.0 million and $6.0 million for the transition of production out of one North Carolina facility[10] Debt and Financial Metrics - Net Debt as of December 29, 2024, was $116.53 million, an increase from $103.49 million as of June 30, 2024[33] - The company recorded a gain of $4.30 million related to the sale of a warehouse in Yadkinville, North Carolina, during the second quarter of fiscal 2025[29] - The weighted average common shares outstanding for the three months ended December 29, 2024, were 18.29 million, compared to 18.11 million for the same period in 2023[31] Adjusted Financial Metrics - Adjusted EBITDA is calculated to exclude certain adjustments necessary to understand and compare the underlying results of UNIFI[45] - Adjusted Net (Loss) Income excludes certain amounts to reflect ongoing operations and performance of UNIFI[45] - Adjusted EPS is derived from Adjusted Net (Loss) Income divided by UNIFI's weighted average common shares outstanding[45] Risks and Forward-Looking Statements - Forward-looking statements include guidance pertaining to financial outlook and involve risks and uncertainties that may cause actual results to differ materially[46] - Factors affecting financial performance include global competition, changes in trade regulations, and consumer preferences[47] - The company does not undertake any obligation to update forward-looking statements after the date they are made[48] - Risks and uncertainties are detailed in UNIFI's most recent Annual Report on Form 10-K[48] - New factors may emerge that are difficult to predict and may materially affect actual results[48]