NYSE$UFI

Unifi Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Unifi's Q3 2023 performance increased sequentially with initial apparel production recovery and prudent cost control measures.

Unifi, Inc. reported net sales of $156.7 million for the third quarter of fiscal 2023, a 15.1% increase sequentially. The company experienced a net loss of $5.2 million, or $0.29 per share, but adjusted EBITDA was $5.0 million, showing significant recovery from the previous period.

  • Net sales were $156.7 million, up 15.1% sequentially.
  • REPREVE Fiber products accounted for 32% of net sales, totaling $49.6 million.
  • Gross profit was $9.7 million, with a gross margin of 6.2%, and operating loss was $2.7 million.
  • Net loss was $5.2 million, or $0.29 per share, while adjusted net loss was $4.6 million.

Headline financials

Total Revenue

$157M

Previous: $201M-21.9%
EPS (adj)

-$0.25

Previous: $0.14-278.6%
Adjusted EBITDA

$5M

No prior period
Capital Expenditures

-$32.5M

Previous: -$30.1M-7.9%
Free Cash Flow

-$37.6M

Previous: -$28M-34.3%
Net Income

-$5.18M

Previous: $2.07M-350.9%
Operating Income

-$2.68M

Previous: $5.76M-146.5%
Gross Profit

$9.65M

Previous: $19.1M-49.6%
Cash & Equivalents

$49.7M

Previous: $53M-6.2%
Total Assets

$551M

Previous: $593M-7.0%

Revenue & EPS history

Unifi · Revenue · Quarterly

$157M

Q3 2023-21.9%vs Q3 2022
Beat estimate in 5 of 12 quarters(42%)
ActualEstimate

Forward guidance

UNIFI expects fourth quarter fiscal 2023 results to be generally consistent with third quarter fiscal 2023 results for net sales and Adjusted EBITDA. Capital expenditures are expected to trend downward sequentially, primarily because of the delayed spending for eAFK EvoCooler machinery.

Tailwinds

  • Continued improvement in sales and profitability beginning in fiscal 2024 is expected as textile production recovery continues.
  • Benefit from numerous cost control measures.
  • Teams have performed well through a difficult environment to manage costs.
  • Diligent and responsible management of working capital and the balance sheet.
  • Expectations for continued improvement in sales and profitability beginning in fiscal 2024.

Headwinds

  • Fourth quarter fiscal 2023 results expected to be generally consistent with third quarter fiscal 2023 results for net sales and Adjusted EBITDA.
  • Effective tax rate is expected to demonstrate continued volatility.
  • Volume trends continue to fluctuate due to macro-economic volatility
  • Near-term inventory destocking measures taken by apparel brands and retailers.
  • Lower sales volumes in Asia.

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 2023

Historical avgQ3 2023

-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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