Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $146.6 million, down 2% year-over-year, primarily due to lower sales volumes in the Asia segment and unfavorable foreign currency impacts [16][24]. - Gross margin in the Americas segment declined by 350 basis points, driven by inflationary pressures and transition costs related to the manufacturing footprint reduction [25]. - The sale of the Madison facility for $53.2 million is expected to significantly improve the balance sheet and reduce outstanding debt [12][27]. Business Line Data and Key Metrics Changes - In the Americas segment, net sales increased by 3% compared to the prior year, driven by the Beyond Apparel initiatives and positive momentum in Central America [24][17]. - The Asia segment experienced a 12% decline in net sales, attributed to macroeconomic pressures and a weaker sales mix [26][18]. - REPREVE represented 31% of sales during the quarter, remaining stable compared to the previous year despite macroeconomic challenges in China [18]. Market Data and Key Metrics Changes - Demand in North America is improving, particularly in Central America, where over 50% of business has been REPREVE [6][7]. - The Brazil segment continues to perform well due to a stable market for textured polyester, despite pricing pressures from imports [17]. - The impact of tariffs remains uncertain, but the company anticipates potential benefits in the Americas segment if tariffs on imports remain in place [14]. Company Strategy and Development Direction - The company is focused on rationalizing assets and improving profitability, including the closure of the Madison facility and consolidation of operations [3][4]. - Innovation efforts are being prioritized, particularly in military wear and carpet, which are expected to yield better margins than the base business [8][10]. - The company aims to leverage its asset-light model in Asia while exploring opportunities in new markets such as automotive and packaging [49][78]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth and solid economics in the new fiscal year, driven by ongoing initiatives and improved capacity utilization [10][30]. - The company is closely monitoring the tariff situation and believes it could lead to a net neutral to positive impact over the next few years [16][14]. - Management expects to see significant savings from the consolidation of manufacturing activities, with a projected $20 million reduction in cost of sales [27]. Other Important Information - The company has received several accolades for its sustainability efforts, including recognition from Fast Company and Newsweek [21]. - The Madison facility's sale is anticipated to close on May 15, with no significant contingencies expected [56]. Q&A Session Summary Question: What was the FX impact in Brazil? - The FX impact in Brazil was approximately $4 million for the quarter and $11 million for the nine months [44]. Question: What are the margins for the carpet and military markets? - Margins for these markets are at least twice as good as the base business [36]. Question: How will the de minimis rule exemption impact the business? - The overall impact could lead to a downturn in the Asia business by 10% to 15% [40][43]. Question: When will cost savings from facility consolidation be realized? - Some cost savings are expected in the first quarter of fiscal 2026, but full realization will take longer [45]. Question: What percentage of Asia revenue comes from China? - The company does not disclose the specific percentage of Asia revenue from China [72]. Question: Will there be additional disclosures on the profitability of REPREVE? - Current reporting structure will remain for the foreseeable future, but the Asia segment's margin is influenced significantly by REPREVE [62][63].