NYSE$UFI

Unifi Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Unifi's financial performance improved with increased net sales and operating income.

Unifi reported a slight increase in net sales and a significant improvement in operating income compared to the same quarter last year. The company's performance was driven by increased sales volumes, particularly in Asia, and a more favorable raw material cost environment.

  • Net sales increased by 1.1% to $169.5 million.
  • Operating income improved to $2.6 million, compared to an operating loss of $0.8 million in the second quarter of fiscal 2019.
  • Net income was $0.4 million, with diluted EPS of $0.02.
  • Cash and cash equivalents increased to $37.2 million.

Headline financials

Total Revenue

$170M

Previous: $168M+1.1%
EPS (adj)

$0.15

Previous: $0.06+150.0%
Adjusted EBITDA

$8.89M

Previous: $4.86M+83.0%
Capital Expenditures

-$8.34M

Previous: -$12.3M+32.5%
Free Cash Flow

-$7.93M

Previous: -$11.2M+29.0%
Net Income

$409K

Previous: $1.17M-65.1%
Operating Income

$2.56M

Previous: -$797K+421.3%
Gross Profit

$15.7M

Previous: $14.2M+10.7%
Cash & Equivalents

$37.2M

Previous: $26.7M+39.6%
Total Assets

$595M

Previous: $594M+0.1%

Revenue & EPS history

Unifi · Revenue · Quarterly

$170M

Q2 2020+1.1%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

For fiscal year 2020, the company expects sales volumes to grow between 10% and 13% from fiscal 2019 levels, net sales between $700.0 million and $715.0 million, operating income between $20.0 million and $23.0 million, Adjusted EBITDA between $44.0 million and $47.0 million, capital expenditures of approximately $23.0 million, and an effective tax rate not to exceed 23%.

Tailwinds

  • Sales volumes to grow between 10% and 13% from fiscal 2019 levels.
  • Net sales between $700.0 million and $715.0 million.
  • Operating income between $20.0 million and $23.0 million.
  • Adjusted EBITDA between $44.0 million and $47.0 million.
  • Capital expenditures of approximately $23.0 million.

Headwinds

  • Global competition remains aggressive.
  • International operations have faced some significant pricing pressures in fiscal 2020.
  • Lower revenue expectations for Nylon.
  • Softer-than-expected recovery.
  • Guidance has been updated to reflect global competitive pricing pressures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.4%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+24.1%

Q4 2024

Best reaction

-24.1%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.4%+15.0%+12.6%
Q2 2026+10.9%-1.0%-3.2%
Q1 2026-5.8%-17.3%-28.7%
Q3 2025-1.0%-7.1%-1.4%
Q2 2025-9.5%-10.3%-11.8%
Q1 2025-10.5%-6.3%-18.7%
Q4 2024+24.1%+40.4%+39.5%
Q3 2024+16.1%+7.2%+10.5%
Q2 2024-5.9%-5.3%-8.9%
Q1 2024-10.4%-3.4%-3.0%
Q4 2023-17.8%-11.7%-6.4%
Q3 2023-2.6%+0.6%-8.4%
Q2 2023+15.8%+2.6%+22.5%
Q1 2023-24.1%+12.2%+15.6%
Q4 2022-8.8%-7.0%-21.5%
Q3 2022-8.8%-5.2%-3.6%
Q2 2022-16.9%-14.6%-14.7%
Q1 2022+4.0%+9.6%-0.8%
Q4 2021+9.2%+8.8%+13.4%
Q3 2021-4.7%+1.6%-1.4%
Q2 2021+11.6%+22.3%+29.2%
Q1 2021+18.3%+12.7%+19.6%
Q4 2020-4.3%+4.8%+0.2%
Q3 2020+8.0%-1.2%+28.4%
Q2 2020-23.1%-20.1%-21.8%
Q1 2020+14.3%+12.2%+1.3%
Q4 2019+5.7%+10.1%+17.3%
Q3 2019-3.3%+3.0%-6.7%
Q2 2019-5.2%+0.3%-0.3%
Q1 2019-4.5%+10.1%+16.1%
Q4 2018+6.9%+6.0%+6.5%
Q3 2018-9.7%-14.6%-8.0%
Q2 2018+1.7%-1.1%-1.4%
Q1 2018-0.2%+6.4%-0.1%
Q4 2017+4.0%+8.1%+3.8%
Q3 2017+5.3%-0.1%-0.6%
Q2 2017-7.7%-13.6%-10.7%
Q1 2017+0.5%-2.2%+11.4%
Q4 2016-7.3%-7.2%-13.1%
Q3 2016+22.8%
Q2 2016-9.9%
Q1 2016-7.5%
Q4 2015-0.3%
Q3 2015-4.9%
Q2 2015+2.9%
Q1 2015-11.9%
Q4 2014+10.5%
Q3 2014+2.6%
Q2 2014-6.0%
Q1 2014+2.2%
Q4 2013+5.8%
Q3 2013+1.9%
Q2 2013+1.1%
Q1 2013+3.3%
Q4 2012+0.3%
Q4 2010+0.3%
Q3 2012-5.5%
Q3 2011-5.5%
Q2 2011+1.8%
Q2 2012+1.8%
Q4 2011+4.3%
Q1 2011+4.3%
Q1 2012+4.3%
Q3 2010-5.3%

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