NYSE$UFI

Unifi Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Achieved strong sales and exceeded expectations, setting a multi-year record, while foreign operations maintained overall portfolio strength by counterbalancing domestic headwinds.

Unifi, Inc. reported net sales of $201.4 million, a 23.7% increase year-over-year, driven by strong international performance, but domestic labor and input cost headwinds pressured overall profitability. REPREVE® Fiber product sales reached 40% of consolidated sales. The company expects net sales to increase by 20% or more in fiscal year 2022.

  • Net sales increased 23.7% to $201.4 million compared to the second quarter of fiscal 2021.
  • REPREVE® Fiber products represented 40% of net sales, up from 38% in the second quarter of fiscal 2021.
  • Operating income decreased to $4.6 million, from $13.1 million, primarily due to the decrease in gross profit associated with input cost and efficiency pressures.
  • Net income was $0.9 million, or $0.05 per share, compared to $7.5 million, or $0.40 per share for the second quarter of fiscal 2021.

Headline financials

Total Revenue

$201M

Previous: $163M+23.7%
EPS (adj)

$0.05

Previous: $0.40-87.5%
Capital Expenditures

-$19.2M

Previous: -$6.04M-217.7%
Free Cash Flow

-$18.2M

Previous: $1.43M-1376.6%
Net Income

$929K

Previous: $7.46M-87.6%
Operating Income

$4.59M

Previous: $13.1M-64.9%
Gross Profit

$16.9M

Previous: $25.9M-34.9%
Cash & Equivalents

$47.6M

Previous: $83.3M-42.8%
Total Assets

$543M

Previous: $513M+5.9%

Revenue & EPS history

Unifi · Revenue · Quarterly

$201M

Q2 2022+23.7%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company’s updated expectations for fiscal 2022, assuming there are no further significant disruptions to global markets, supply chains, or the labor market and no further adverse impacts from COVID-19.

Tailwinds

  • Sales volume and REPREVE® Fiber sales growth driving net sales to $800 million or more, which would represent an increase of 20% or more from the level achieved in fiscal 2021.
  • Adjusted EBITDA to range between $60.0 million and $62.0 million, with a larger portion of second half fiscal 2022 profitability being generated in the fourth quarter ending July 3, 2022 rather than the third quarter ending March 27, 2022.
  • An effective tax rate between 40% and 50%, assuming no significant changes in existing tax legislation.
  • Capital expenditures of approximately $40.0 million to $44.0 million, as the Company continues its plan to invest in new yarn texturing machinery within its Americas facilities.
  • Such capital expenditure levels will be funded by cash on-hand and available financing arrangements and are inclusive of approximately $10.0 million to $12.0 million of routine annual maintenance.

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 2022

Historical avgQ2 2022

-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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