For the September quarter, income from continuing operations before taxes
was
Net sales for the current quarter were
'During the quarter, volume started out ahead of plan but softened in
September as the economy weakened,' said
Cash-on-hand at the end of September was
Unifi, Inc. (NYSE: UFI) is a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials. The Company adds value to the supply chain and enhances consumer demand for its products through the development and introduction of branded yarns that provide unique performance, comfort and aesthetic advantages. Key Unifi brands include, but are not limited to: AIO(R) - all-in-one performance yarns, SORBTEK(R), A.M.Y.(R), MYNX(R) UV, REPREVE(R), REFLEXX(R), MICROVISTA(R) and SATURA(R). Unifi's yarns and brands are readily found in home furnishings, apparel, legwear, and sewing thread, as well as industrial, automotive, military, and medical applications. For more information about Unifi, visit www.unifi.com, or to learn more about REPREVE(R), visit the new website www.repreve.com.
Financial Statements to Follow
UNIFI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In Thousands Except Per Share Data)
For the Quarters Ended
September 28, September 23,
2008 2007
Net sales $169,009 $170,536
Cost of sales 155,584 159,543
Selling, general & administrative
expenses 10,545 14,454
Provision for bad debts 558 254
Interest expense 5,965 6,712
Interest income (913) (826)
Other (income) expense, net (561) (1,006)
Equity in earnings of
unconsolidated affiliates (3,482) (178)
Write down of long-lived assets - 533
Write down of investment in
unconsolidated affiliate - 4,505
Restructuring charges - 2,632
Income (loss) from continuing
operations before income taxes 1,313 (16,087)
Provision (benefit) for income taxes 1,885 (6,931)
Loss from continuing operations (572) (9,156)
Loss from discontinued operations, net of tax (104) (32)
Net loss $(676) $(9,188)
Loss per common share (basic and diluted):
Net loss - continuing operations $(0.01) $(0.15)
Net loss - discontinued operations - -
Net loss - basic and diluted $(0.01) $(0.15)
Weighted average basic and diluted shares
outstanding 61,134 60,537
UNIFI, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
September 28, June 29,
2008 2008
(Unaudited)
Assets
Cash and cash equivalents $20,396 $20,248
Receivables, net 95,247 103,272
Inventories 127,994 122,890
Deferred income taxes 1,962 2,357
Assets held for sale 3,808 4,124
Restricted cash 7,308 9,314
Other current assets 4,290 3,693
Total current assets 261,005 265,898
Property, plant and equipment, net 167,845 177,299
Investments in unconsolidated
affiliates 71,950 70,562
Restricted cash 19,989 26,048
Goodwill 18,579 18,579
Intangible assets, net 19,607 20,386
Other noncurrent assets 11,698 12,759
$570,673 $591,531
Liabilities and Shareholders'
Equity
Accounts payable $43,897 $44,553
Accrued expenses 26,061 25,531
Income taxes payable 832 681
Current maturities of long-term
debt and other current liabilities 7,729 9,805
Total current liabilities 78,519 80,570
Long-term debt and other
liabilities 198,518 204,366
Deferred income taxes 657 926
Shareholders' equity 292,979 305,669
$570,673 $591,531
UNIFI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Amounts in Thousands)
For the Quarters Ended
September 28, September 23,
2008 2007
Cash and cash equivalents at
beginning of year $20,248 $40,031
Operating activities:
Net loss (676) (9,188)
Adjustments to reconcile net loss
to net cash provided by (used in)
continuing operating activities:
Loss from discontinued operations 104 32
Earnings of unconsolidated equity
affiliates, net of distributions (1,417) 282
Depreciation 8,980 9,599
Amortization 1,069 1,162
Stock-based compensation expense 282 107
Deferred compensation expense, net (81) 30
Net gain on asset sales (316) (142)
Non-cash write down of long-lived assets - 533
Non-cash write down of investment in
equity affiliate - 4,505
Non-cash portion of restructuring charges - 2,632
Deferred income tax benefit (115) (7,524)
Provision for bad debts 558 254
Other 296 (473)
Change in assets and liabilities,
excluding effects of acquisitions
and foreign currency adjustments (6,082) (3,016)
Net cash provided by (used in)
continuing operating activities 2,602 (1,207)
Investing activities:
Capital expenditures (3,569) (1,064)
Change in restricted cash 5,183 (915)
Proceeds from sale of capital assets 101 2,216
Return of capital from equity affiliate - 234
Other (94) 264
Net cash provided by investing
activities 1,621 735
Financing activities:
Borrowings of long-term debt 4,600 157
Payments of long-term debt (9,080) (6,705)
Proceeds from stock option exercises 3,551 -
Other 37 33
Net cash used in financing
activities (892) (6,515)
Cash flows of discontinued operations:
Operating cash flow (114) (78)
Net cash used in discontinued operations (114) (78)
Effect of exchange rate changes on cash
and cash equivalents (3,069) 893
Net increase (decrease) in cash and
cash equivalents 148 (6,172)
Cash and cash equivalents at end of
period $20,396 $33,859
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements included herein contain forward-looking statements within the meaning of federal security laws about Unifi, Inc.'s (the 'Company') financial condition and results of operations that are based on management's current expectations, estimates and projections about the markets in which the Company operates, as well as management's beliefs and assumptions. Words such as 'expects,' 'anticipates,' 'believes,' 'estimates,' variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.
Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to, availability, sourcing and pricing of raw materials, pressures on sales prices and volumes due to competition and economic conditions, reliance on and financial viability of significant customers, operating performance of joint ventures, alliances and other equity investments, technological advancements, employee relations, changes in construction spending, capital expenditures and long-term investments (including those related to unforeseen acquisition opportunities), continued availability of financial resources through financing arrangements and operations, outcomes of pending or threatened legal proceedings, negotiation of new or modifications of existing contracts for asset management and for property and equipment construction and acquisition, regulations governing tax laws, other governmental and authoritative bodies' policies and legislation, and proceeds received from the sale of assets held for disposal. In addition to these representative factors, forward-looking statements could be impacted by general domestic and international economic and industry conditions in the markets where the Company competes, such as changes in currency exchange rates, interest and inflation rates, recession and other economic and political factors over which the Company has no control. Other risks and uncertainties may be described from time to time in the Company's other reports and filings with the Securities and Exchange Commission.
SOURCE Unifi, Inc.
