NYSE$UFI

Unifi Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Unifi's third quarter fiscal 2021 results were released, showing better than anticipated performance driven by a dynamic global business model and robust execution.

Unifi, Inc. reported net sales of $178.9 million, a 4.6% increase year-over-year. Net income was $4.8 million, or $0.25 of diluted earnings per share. Adjusted EBITDA was up 70.1% to $15.9 million.

  • Net sales increased by 4.6% year-over-year to $178.9 million.
  • REPREVE Fiber products accounted for 33% of consolidated net sales, up from 29% in the prior year.
  • Gross profit increased by 66% year-over-year to $25.6 million, with a gross margin of 14.3%.
  • Net income was $4.8 million, or $0.25 per share, compared to a net loss of $41.1 million, or $2.23 per share, in the prior year.

Headline financials

Total Revenue

$179M

Previous: $171M+4.6%
EPS (adj)

$0.25

Previous: $0.22+13.6%
Gross margin

14.3%

Previous: 9.0%+59.1%
Adjusted EBITDA

$15.9M

Previous: $9.3M+71.0%
Net Debt

$13.8M

No prior period
Capital Expenditures

-$12.1M

Previous: -$15M+19.4%
Free Cash Flow

-$7.31M

Previous: -$56.1M+87.0%
Net Income

$4.76M

Previous: -$41.1M+111.6%
Operating Income

$8.62M

Previous: $3.15M+174.0%
Gross Profit

$25.6M

Previous: $15.4M+66.4%
Cash & Equivalents

$75.6M

Previous: $33.4M+126.4%
Total Assets

$528M

Previous: $543M-2.7%

Revenue & EPS history

Unifi · Revenue · Quarterly

$179M

Q3 2021+4.6%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The Company expects demand levels and trends across the business to remain strong and anticipates current inflationary pressures from raw material fluctuations to be mostly offset by selling price adjustments. The Company’s outlook for the June 2021 quarter includes the following expectations:

Tailwinds

  • Sales volumes to increase, with net sales improving sequentially from the March 2021 quarter by approximately 1.0% to 3.0%
  • Adjusted EBITDA to range from approximately $12.0 million to $14.0 million
  • Consideration for continued underlying business momentum in spite of pandemic uncertainty
  • Lack of incentive compensation expense due to full recognition during the first nine months of fiscal 2021

Headwinds

  • Pandemic uncertainty
  • Expected reduction from the recent exceptional performance of the Brazil Segment
  • Recent global raw material cost increases that will adversely impact gross profit due to the inherent lag in responsive selling price adjustments
  • An effective tax rate between 45% and 55%
  • Capital expenditures of approximately $10.0 million to $12.0 million.

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 Q3 2021

Historical avgQ3 2021

-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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