Unifi, Inc. recently released its operating results for its fourth quarter and fiscal year showing a net income of $11.3 million or $0.56 per share.
This is a decrease from the June 2011 net income of $13.5 million, or $0.67 per share. The company notes that this decrease is due to the early extinguishment of the 11.5 percent Senior Secured Notes, which led to a $2.7 million charge.
The company was also negatively impacted by a $6.9 million reduction in earnings from the company’s equity investments in unconsolidated affiliates.
“We continued to see recovery in volume across all of our operating segments through the second half of the 2012 fiscal year, and margins improved due to the strength of our premier value-added products and polyester raw material cost subsiding from their historically high levels,” said Bill Jasper, chairman and CEO of Unifi.
“We also realized converting cost benefits during the March and June quarters as higher utilization rates in our plants and our ongoing focus on cost improvement initiatives resulted in lower per unit manufacturing costs. Looking forward, we are optimistic the improved performance will continue into our new fiscal year.”
As of August 6 Unifi stock was trading at $11.20 a share.
Other highlights of the quarter include:
-Adjusted earnings before interest, taxes, depreciation and amortization of $14.1 million for the June 2012 quarter, which continues the improving trend.
-Operating results and working capital improvements, resulting in $16.1 million of net cash generated by operating activities.
-Strong growth continued in domestic, premier value-added yarn portfolio.
-The successful completion of the refinancing of the company’s 2014 Senior Secured Notes, which is expected to result in approximately $9 million of annual interest savings.
Reach Lindsay Craven at 679-2341 or at lcraven@heartlandpublications.com.
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