Among many measures, a mix enrichment improvement, helped NYSE-listed and a producer of recycled yarns – Unifi Inc post a 3.3% hike in sales in first fiscal quarter ended September 28, 2014.
In its preliminary operating results for the first fiscal quarter of 2014, Unifi said net sales increased $5.5 million or 3.3% to $174.2 million versus $168.7 million for the prior year quarter.
"The year-over-year improvement in net sales is attributable to improved volume in its nylon and global segments, along with mix enrichment improvements in the polyester segment,” the yarn producer explained.
Net income for the September 2014 quarter amounted $7.1 million, or $0.39 per basic share, which fell from net income of $8.9 million, or $0.46 per basic share, for the same quarter of 2013.
Improved operating results for Unifi’s Central American operations were offset primarily by a $2.5 million decrease in earnings from its affiliate, Parkdale America, LLC.
Despite larger than anticipated manufacturing variances related to the July 4th shutdown, gross margin increased by 20 basis points in the first quarter of 2014.
However, first quarter of 2014 adjusted EBITDA registered a slight decline to touch $14.2 million from $14.5 million for the first fiscal quarter of 2014.
In the reporting quarter, Unifi repurchased 148,500 shares of common stock under a previously announced stock repurchase program.
It also completed a new long-term yarn supply agreement with Hanesbrands, Inc., which will be in effect through June 30, 2018 in the quarter under review.
Unifi was also able to increase its borrowing capacity by $22 million under the Fifth Amendment to its credit agreement in the first quarter of 2014.
"We are very pleased with the growth for our textured polyester business within the CAFTA region and the continued strength of our REPREVE recycled fiber," said COO - Roger Berrier.
"Our marketing programs have attracted the attention of many brands and retailers, and have led to the development and adoption of new programs featuring REPREVE and other value-added products," he added.
Cash and cash equivalents of $15.8 million as of September 28, 2014 remained relatively unchanged compared to $15.9 million as of June 29, 2014.
Net debt at the end of the September 2014 quarter stood at $95.8 million, compared to $83.6 million at June 29, 2014.
Unifi had $72.5 million available under its revolver as of September 28, 2014, compared to $61.1 million as of June 29, 2014.
Bill Jasper, CEO said, "We are planning to increase texturing capacity in the US and Central America to better serve the growing demand for synthetic yarns in the CAFTA region and to support our mix enrichment strategies.” (AR)
