Net sales for the current quarter were
For the March quarter, net loss was
Cash-on-hand at the end of the
As previously announced on
'Retail sales in our primary end-use segments remained soft in the March quarter and the impact on our demand was compounded by the retail supply chain working through its excessive inventory levels,' said
Net sales for the first nine months of fiscal 2009 were
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 Expect Per Share Data)
For the Quarters Ended For the Nine-Months Ended
----------------------- -------------------------
March 29, March 23, March 29, March 23,
2009 2008 2009 2008
Summary of Operations:
Net sales $119,094 $169,836 $413,830 523,741
Cost of sales 118,722 156,404 397,721 490,996
Restructuring
charges
(recoveries) 293 (2,199) 293 4,638
Write down of long-
lived assets - - - 2,780
Goodwill impairment 18,580 - 18,580 -
Selling, general &
administrative
expenses 9,507 10,080 29,356 36,542
Provision for bad
debts 735 87 1,794 152
Other operating
(income) expense,
net (89) (897) (5,862) (4,087)
Non-operating (income)
expense:
Interest income (656) (651) (2,249) (2,231)
Interest expense 5,879 6,308 17,592 19,598
Equity in earnings
of unconsolidated
affiliates (825) (757) (4,469) (914)
Write down of
investment in
unconsolidated
affiliates - - 1,483 4,505
Income (loss)
from continuing
operations before
income taxes (33,052) 1,461 (40,409) (28,238)
Provision (benefit)
from income taxes (101) 1,394 2,398 (11,294)
Income (loss)
from continuing
operations (32,951) 67 (42,807) (16,944)
Income (loss) from
discontinued
operations, net of
tax (45) (55) 67 22
Net
income
(loss) $(32,996) $12 $(42,740) (16,922)
Loss per common
share (basic and
diluted):
Net loss -
continuing
operations $(0.53) $- $(0.69) $(0.28)
Net loss -
discontinued
operations - - - -
Net loss
-basic
and
diluted $(0.53) $- $(0.69) (0.28)
Weighted average
basic and diluted
shares outstanding 62,057 60,589 61,740 60,560
UNIFI, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
March 29, 2009 June 29, 2008
-------------- -------------
(Unaudited)
Assets
Cash and cash equivalents $23,544 $20,248
Receivables, net 71,498 103,272
Inventories 101,583 122,890
Deferred income taxes 1,474 2,357
Assets held for sale 1,700 4,124
Investment in unconsolidated
affiliate 9,000 -
Restricted cash 14,585 9,314
Other current assets 4,946 3,693
Total current assets 228,330 265,898
Property, plant and equipment, net 159,302 177,299
Investments in unconsolidated
affiliates 62,067 70,562
Restricted cash 1,394 26,048
Goodwill - 18,579
Intangible assets, net 18,465 20,386
Other noncurrent assets 13,737 12,759
$483,295 $591,531
Liabilities and Shareholders' Equity
Accounts payable $24,904 $44,553
Accrued expenses 20,361 25,531
Income taxes payable 7 681
Current maturities of long-term debt
and other current liabilities 6,119 9,805
Total current liabilities 51,391 80,570
Long-term debt and other
liabilities 193,389 204,366
Deferred income taxes 413 926
Shareholders' equity 238,102 305,669
$483,295 $591,531
UNIFI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Amounts in Thousands)
For the Nine-Months Ended
-------------------------
March 29, 2009 March 23, 2008
-------------- --------------
Cash and cash equivalents at beginning
of year $20,248 $40,031
Operating activities:
Net loss (42,740) (16,922)
Adjustments to reconcile net loss to
net cash provided by (used in)
continuing operating activities:
Income from discontinued operations (67) (22)
Earnings of unconsolidated equity
affiliates, net of distributions (1,585) 262
Depreciation 21,954 27,568
Amortization 3,289 3,486
Stock-based compensation expense 1,033 724
Deferred compensation recovery, net (50) (425)
Net gain on asset sales (5,865) (1,872)
Non-cash effect of goodwill impairment 18,580 -
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 293 4,638
Deferred income tax benefit (77) (14,951)
Provision for bad debts 1,794 152
Other 306 (263)
Change in assets and liabilities,
excluding effects of acquisitions
and foreign currency adjustments 6,258 (11,083)
Net cash provided by (used in)
continuing operating activities 4,606 (1,423)
Investing activities:
Capital expenditures (10,918) (7,310)
Acquisition (500) -
Change in restricted cash 14,035 (12,338)
Proceeds from sale of capital assets 6,959 15,797
Proceeds from sale of equity affiliate - 8,750
Collection of notes receivable 1 269
Split dollar life insurance premiums (217) (217)
Other - (793)
Net cash provided by investing
activities 9,360 4,158
Financing activities:
Borrowings of long-term debt 14,600 -
Payments of long-term debt (22,199) (16,000)
Proceeds from stock option exercises 3,830 -
Other (343) (2,142)
Net cash used in financing
activities (4,112) (18,142)
Cash flows of discontinued operations:
Operating cash flow (308) (230)
Net cash used in discontinued operations (308) (230)
Effect of exchange rate changes on cash and
cash equivalents (6,250) 1,793
Net increase (decrease) in cash and cash
equivalents 3,296 (13,844)
Cash and cash equivalents at end of period $23,544 $26,187
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, the success of our subsidiaries, 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.
