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Unifi Inc., a Greensboro, N.C.-based manufacturer of polyester and nylon yarns, saw net income more than triple to $8.9 million, or 46 cents a share, from $2.3 million, or 11 cents a share, for the first quarter ended Sept. 29.
“Improving year-over-year net income by $6.6 million during a quarter in which we experienced a decline in net sales demonstrates the results of our focus on driving financial improvement to our core business through lean manufacturing initiatives, enriching our product mix and deriving value from sustainability-based initiatives,” said Bill Jasper, chairman and chief executive officer of Unifi. “The positive operating results…provide us with a strong start to our 2014 fiscal year and have enabled us to fund the company’s strategic growth opportunities and continue our share repurchases.”
Although net sales decreased 2.4 percent to $168.7 million compared with $172.9 million in the September 2012 quarter, the company said domestic volumes were stronger, but were offset by weaker sales in its international business and the negative effects of the weakened currency in Brazil.
The company reported that adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, improved to $14.5 million in the period from $13.8 million for the September 2012 quarter, and that domestic gross margins improved significantly as a result of higher sales, increased selling margins and lower expenses. Earnings from the company’s unconsolidated equity affiliates increased $5.5 million in the quarter from the prior year, primarily attributable to Parkdale America.
Roger Berrier, president and chief operating officer of Unifi, added: “The success of Repreve continues to drive our global mix enrichment strategy as we provide recycled product solutions to brands and retailers. Our overall business fundamentals remain positive and we feel confident in the continued strength of our underlying domestic performance, even against the backdrop of an economy that remains uncertain and a sluggish retail environment. We expect operating conditions in Brazil and China to improve and become more favorable as we move through the 2014 fiscal year, which will help yield better results from our international businesses.”