Net sales for the current quarter were
For the December quarter, loss from continuing operations before taxes was
'Retail sales in our primary end-use segments: apparel, home furnishings and automotive, were all down dramatically in the quarter, resulting in a significant buildup of inventory throughout the supply chain,' said
Net loss for the first half of fiscal 2009 was
Cash-on-hand at the end of the
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 www.repreve.com.
Financial Statements to Follow
UNIFI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In Thousands Except Per Share Data)
For the Quarters For Year To Date
Ended Periods Ended
----------------- -----------------
December December December December
28, 2008 23, 2007 28, 2008 23, 2007
-------- -------- -------- --------
Net sales $125,727 $183,369 $294,736 $353,905
Cost of sales 123,415 175,049 278,999 334,592
Selling, general &
administrative expenses 9,304 12,008 19,849 26,462
Provision (recovery) for bad
debts 501 (189) 1,059 65
Interest expense 5,748 6,578 11,713 13,290
Interest income (680) (746) (1,593) (1,580)
Other (income) expense, net (5,212) (2,192) (5,773) (3,190)
Equity in (earnings) losses of
unconsolidated affiliates (162) 21 (3,644) (157)
Write down of long-lived
assets - 2,247 - 2,780
Write down of investment in
unconsolidated affiliates 1,483 - 1,483 4,505
Restructuring charges - 4,205 - 6,837
- ----- - -----
Loss from continuing
operations before income taxes (8,670) (13,612) (7,357) (29,699)
Provision (benefit) from income
taxes 614 (5,757) 2,499 (12,688)
--- ------ ----- -------
Loss from continuing
operations (9,284) (7,855) (9,856) (17,011)
Income from discontinued
operations, net of tax 216 109 112 77
--- --- --- --
Net loss $(9,068) $(7,746) $(9,744) $(16,934)
======= ======= ======= ========
Income (loss) per common share
(basic and diluted):
Net loss - continuing
operations $(0.15) $(0.13) $(0.16) $(0.28)
Net income - discontinued
operations - - - -
--- --- --- ---
Net loss - basic and
diluted $(0.15) $(0.13) $(0.16) $(0.28)
====== ====== ====== ======
Weighted average basic and
diluted shares outstanding 62,030 60,553 61,582 60,545
UNIFI, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
December 28, 2008 June 29, 2008
----------------- -------------
(Unaudited)
Assets
Cash and cash equivalents $12,619 $20,248
Receivables, net 68,611 103,272
Inventories 127,107 122,890
Deferred income taxes 1,417 2,357
Assets held for sale 1,700 4,124
Restricted cash 5,970 9,314
Other current assets 5,330 3,693
----- -----
Total current assets 222,754 265,898
Property, plant and equipment, net 162,295 177,299
Investments in unconsolidated affiliates 71,094 70,562
Restricted cash 13,817 26,048
Goodwill 18,579 18,579
Intangible assets, net 19,328 20,386
Other noncurrent assets 10,841 12,759
------ ------
$518,708 $591,531
======== ========
Liabilities and Shareholders' Equity
Accounts payable $28,505 $44,553
Accrued expenses 17,475 25,531
Income taxes payable 41 681
Current maturities of long-term debt
and other current liabilities 6,313 9,805
----- -----
Total current liabilities 52,334 80,570
Long-term debt and other liabilities 195,502 204,366
Deferred income taxes 477 926
Shareholders' equity 270,395 305,669
------- -------
$518,708 $591,531
======== ========
UNIFI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Amounts in Thousands)
For the Six-Months
Ended
-------------------
December December
28, 2008 23, 2007
-------- --------
Cash and cash equivalents at beginning of year $20,248 $40,031
Operating activities:
Net loss (9,744) (16,934)
Adjustments to reconcile net loss to net cash
used in continuing operating activities:
Income from discontinued operations (112) (77)
(Earnings) losses of unconsolidated equity
affiliates, net of distributions (1,579) 303
Depreciation 15,832 18,850
Amortization 2,137 2,324
Stock-based compensation expense 622 392
Deferred compensation expense (recovery), net (69) 173
Net gain on asset sales (5,910) (1,413)
Non-cash write down of long-lived assets - 2,780
Non-cash write down of investment in
unconsolidated affiliate 1,483 4,505
Non-cash portion of restructuring charges - 6,837
Deferred income tax expense (benefit) 35 (14,699)
Provision for bad debts 1,059 65
Other 256 (568)
Change in assets and liabilities, excluding
effects of acquisitions and foreign currency
adjustments (11,962) (8,124)
------- ------
Net cash used in continuing operating
activities (7,952) (5,586)
------ ------
Investing activities:
Capital expenditures (7,829) (3,827)
Acquisition (500) -
Change in restricted cash 10,118 (14,810)
Proceeds from sale of capital assets 6,950 10,560
Proceeds from sale of equity affiliate - 8,750
Collection of notes receivable - 267
Return of capital from equity affiliate - 234
- ---
Net cash provided by investing activities 8,739 1,174
----- -----
Financing activities:
Borrowings of long-term debt 14,600 -
Payments of long-term debt (20,578) (11,000)
Proceeds from stock option exercises 3,830 -
Other 37 (708)
-- ----
Net cash used in financing activities (2,111) (11,708)
------ -------
Cash flows of discontinued operations:
Operating cash flow (162) (201)
---- ----
Net cash used in discontinued operations (162) (201)
---- ----
Effect of exchange rate changes on cash and cash
equivalents (6,143) 2,065
------ -----
Net decrease in cash and cash equivalents (7,629) (14,256)
------ -------
Cash and cash equivalents at end of period $12,619 $25,775
======= =======
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.
