Improved global operations and a lower effective tax rate drove net income growth by 46.87 per cent year on year at value added yarns producer, Unifi Inc in the second quarter ended December 28, 2014.
Unifi said its net income for the December quarter amounted to $9.4 million, or $0.52 per basic share, compared to net income of $6.4 million, or $0.34 per basic share, for the prior year quarter.
Net sales increased $2.5 million or 1.6 per cent to $163.1 million for the second fiscal quarter of 2014 as against $160.6 million for the same quarter of 2013.
“The improvement in net sales is primarily attributable to improved volume in all three reportable segments, partially offset by devaluation of the Brazilian Real, relative to the US dollar,” Unifi explained.
It also attributed higher sales volumes to increased demand for textured polyester yarn in the North and Central American regions and improvements in Brazil and China.
Gross profit in the reporting improved to $23.3 million or 14.3 per cent of net sales from $18.5 million or 11.5 per cent of net sales in the year ago quarter.
Adjusted EBITDA also expanded to $16.2 million for the December 2014 quarter from $12.6 million for the prior year quarter.
"We are very pleased with the improvements, led by continued success of our mix enrichment strategy, rise in demand for textured polyester and volume growth in our global business," CEO Roger Berrier said.
He added, "The consumption of synthetic yarn continues to grow in the CAFTA region, particularly with incremental apparel programs moving into the region from Asia.
“We are addressing this opportunity by adding new texturing capacity in both the U.S. and El Salvador, which will become operational over the course of the second half of the fiscal year."
Cash and cash equivalents of $17.9 million as of December 28, 2014, increased $2.0 million compared to $15.9 million as of June 29, 2014.
Net debt at the end of the December 2014 quarter was $93.4 million, compared to $83.6 million at June 29, 2014.
The Company had $60.9 million available under its revolver as of December 28, 2014, relatively unchanged compared to $61.1 million as of June 29, 2014. (AR)
