Unifi, Inc. (UFI) Tops Q4 EPS by 15c, Revenues Beat

Unifi, Inc. (NYSE: UFI) reported Q4 EPS of $0.39, $0.15 better than the analyst estimate of $0.24. Revenue for the quarter came in at $181.3 million versus the consensus estimate of $179.41 million.

Fourth Quarter 2018 Highlights

• Net sales increased $10.0 million, or 5.9%, to $181.3 million, compared to $171.3 million for the fourth quarter of fiscal 2017, and increased $12.1 million, or 7.1%, when excluding the impact of foreign currency translation.
• Revenues from premium value-added (\"PVA\") products grew 16% compared to the fourth quarter of fiscal 2017, and represented approximately 45% of consolidated net sales.
• Gross margin was 13.2%, compared to 16.0% for the fourth quarter of fiscal 2017.
• Operating income was $9.3 million, compared to $13.0 million for the fourth quarter of fiscal 2017.
• Diluted EPS was $0.58, compared to $0.52 for the fourth quarter of fiscal 2017. Excluding a $0.19 benefit from the reversal of an uncertain tax position, Adjusted EPS was $0.39 for the quarter, compared to $0.52 for the fourth quarter of fiscal 2017.
• Fiscal 2019 outlook of mid-single-digit percentage growth in revenue and mid- to high-single-digit growth in operating income.

"Our teams across the globe delivered strong performance during the fourth quarter and finished fiscal 2018 with 5% top-line growth,\" said Kevin Hall, Chairman and CEO of Unifi. "While navigating ongoing pressure from higher raw material costs, we capitalized on increased demand from brands and retailers for our innovative PVA offerings, including REPREVE®. We also are encouraged that gross profit and operating income for the fourth quarter improved compared to the third quarter."

Hall continued, "With our core strategy focused on innovation and sustainability, we are excited about the opportunities that remain ahead of us. Building strategic partnerships and deploying our resources efficiently for commercial expansion remain critical to achieving our long-term goals."

GUIDANCE

Fiscal 2019 will contain 53 fiscal weeks, with the first quarter ending September 30, 2018 containing 14 fiscal weeks. For fiscal 2019, the Company anticipates:

• Mid-single-digit percentage growth for net sales;
• Mid- to high-single-digit percentage growth for operating income and Adjusted EBITDA;
• Capital expenditures of approximately $25.0 million; and
• An effective tax rate in the low 30% range, subject to adjustment in light of pending interpretations of the December 2017 federal tax reform legislation.

"Fiscal 2018 marked a challenging, but promising year, as the strategic investments that we made across the business materialized into accelerated top-line performance, which we believe will be sustainable into fiscal 2019," said Kevin Hall, Chairman and CEO of Unifi. "While higher raw material costs significantly pressured our margins and profitability in fiscal 2018, we began to see a positive impact in the fourth quarter from recent pricing adjustments. As we look to fiscal 2019, we plan for improvement in all our major performance metrics and continued progress against our strategic initiatives and long-term profitability."

For earnings history and earnings-related data on Unifi, Inc. (UFI) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Pro Diversity Network (IPDN) Reports Q2 Loss of $0.15
• Movano (MOVE) Misses Q2 EPS by 195c