NYSE$UFI

Unifi Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported results consistent with expectations, exhibiting strength in regional business model and agile execution. Introduced fiscal year 2023 outlook, including sales growth of 5% or more.

UNIFI's fourth quarter fiscal 2022 results were consistent with expectations, generating double-digit top-line growth. Net sales increased by 18% compared to the fourth quarter of fiscal 2021, reaching $217.6 million. Net income was $3.5 million, or $0.19 diluted earnings per share.

  • Net sales were $217.6 million, an increase of 18% from the fourth quarter of fiscal 2021.
  • Revenues from REPREVE Fiber products represented 31% of net sales compared to 38% in the fourth quarter of fiscal 2021.
  • Gross profit was $18.4 million compared to $27.4 million for the fourth quarter of fiscal 2021.
  • Net income was $3.5 million, or $0.19 diluted earnings per share (“EPS”), compared to net income of $13.4 million, or $0.70 diluted EPS for the fourth quarter of fiscal 2021.

Headline financials

Total Revenue

$218M

Previous: $184M+18.0%
EPS (adj)

$0.11

Previous: $0.37-70.3%
Capital Expenditures

$9.54M

Previous: $9.11M+4.7%
Free Cash Flow

-$7.09M

Previous: $1.86M-480.6%
Net Income

$3.5M

Previous: $13.4M-73.9%
Operating Income

$5M

Previous: $14M-64.3%
Gross Profit

$18.4M

Previous: $27.4M-32.9%
Cash & Equivalents

$53.3M

Previous: $78.3M-31.9%
Total Assets

$589M

Previous: $555M+6.0%

Revenue & EPS history

Unifi · Revenue · Quarterly

$218M

Q4 2022+18%vs Q4 2021
Beat estimate in 5 of 12 quarters(42%)
ActualEstimate

Forward guidance

UNIFI expects sales volume and REPREVE Fiber sales growth to drive net sales between $855 million and $885 million. Adjusted EBITDA to be between $48.0 million and $57.0 million. Effective tax rate to be between 55% and 65%. Capital expenditures of approximately $35.0 million to $40.0 million.

Tailwinds

  • Sales volume and REPREVE Fiber sales growth to drive net sales between $855 million and $885 million, which would represent an increase of 5% or more from the level achieved in fiscal 2022.
  • Adjusted EBITDA to be between $48.0 million and $57.0 million.
  • Effective tax rate to be between 55% and 65%, assuming no significant changes in existing tax legislation.
  • Capital expenditures of approximately $35.0 million to $40.0 million, as UNIFI continues investing in new yarn texturing machinery within the U.S., El Salvador and Brazil.
  • Such capital expenditure levels will be funded by available financing arrangements, and are inclusive of approximately $10.0 million to $12.0 million of routine annual maintenance.

Headwinds

  • There is short-term uncertainty with regard to global demand.
  • Inflation concerns that will pressure our first half of fiscal 2023.
  • Current headwinds from customer demand patterns will be most pronounced in the Americas segment.
  • Input cost dynamics will continue for at least the first half of the fiscal year.
  • First quarter will exhibit the most profitability 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 Q4 2022

Historical avgQ4 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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