Net income at US based value-added and recycled fibres producer Unifi, Inc climbed 46.52 per cent year over year for fiscal ended June 28, 2015.
A Unifi press release informed that net income for fiscal 2015 totaled to $42.2 million or $2.32 per basic share compared to net income of $28.8 million or $1.52 per basic share for the prior fiscal.
It reported an adjusted net income of $34.3 million or $1.88 of adjusted EPS for the reporting fiscal as against adjusted net income of $31.2 million or $1.65 of adjusted EPS.
“These earnings reflect improved operating results from our global operations, along with a lower effective tax rate, and were achieved despite impact of devaluation of the Brazilian Real,” it said.
In the fiscal under review, the recycled fibre producer clocked net sales of $687.1 million, essentially flat compared to fiscal 2014.
For fiscal 2015, Unifi posted higher sales volumes as compared to the previous fiscal from increased regional demand for textured polyester and nylon yarns in North and Central America, Brazil and China.
“Devaluation of the Brazilian Real and lower sales prices due to lower raw material costs offset sales volume improvements,” Unifi added.
“However, higher margins for all of the Company's reportable segments, as well as higher consolidated sales volumes, drove the improvement in operating results for the year,” it explained.
Gross profit expanded to $90.7 million or 13.2 per cent of net sales from $83.3 million or 12.1 per cent of net sales in the last fiscal.
Cash and cash equivalents as of June 28, 2015 were $10.0 million, down $5.9 million compared to $15.9 million as of June 29, 2014.
Net debt at June 28, 2015 was $94.1 million as against $83.6 million at June 29, 2014 and it had $75.9 million of available borrowing capacity under its revolver compared to $61.1 million as of June 29, 2014.
"Increased demand for our premier value-added yarns, strong operating results from our global business and higher earnings from our equity affiliates helped drive our strong performance," COO Roger Berrier said.
"We expect that our domestic business will begin to see the benefits of the strategic capital projects that were completed in the 2015 fiscal year,” he too added.
Unifi is adding texturing machines to support the growth in demand for synthetic yarns from the CAFTA region, as well expanding air jet texturing capacity.
“We also expect to start seeing the benefits of the recently announced expansion of our Repreve Recycling Center and the backward integration into bottle processing in fiscal 2017,” Berrier informed.
CEO Bill Jasper also added, “The Company's $34.3 million adjusted net income for fiscal 2015 fiscal makes this our most profitable year since fiscal 2000.”
He stated, “This is attributable to our strict adherence to our mix enrichment efforts, our focus on recycling and sustainability initiatives, and our commitment to driving operational excellence.”
