Wed, May 7, 12:32 PM (4 days ago)
**Unifi, Inc. (UFI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $146.6 million (down 1.6% YoY) - Americas: $93.5 million (up 2.6% YoY) - Brazil: $28.1 million (down 4.9% YoY) - Asia: $24.9 million (down 12.0% YoY) - **Gross Profit:** -$445,000 (down 109.3% YoY) - **Operating Loss:** -$13.9 million (up 100.1% YoY) - **Net Loss:** -$16.8 million (up 63.1% YoY) - **EPS (Basic & Diluted):** -$0.92 (down 60.7% YoY) - **Cash Flow from Operations:** -$19.9 million (down 2,090.3% YoY) **Profit Margins:** - **Gross Margin:** -0.3% (down 3.5% YoY) - **Operating Margin:** -9.4% (down 4.8% YoY) - **Net Margin:** -11.5% (down 4.6% YoY) **Cash Flow & Earnings Changes:** - **Cash Flow from Operations:** -$19.9 million (down 2,090.3% YoY) - **Capital Expenditures:** $7.9 million (down 7.6% YoY) - **Free Cash Flow:** -$27.8 million (down 1,142.9% YoY) **Quarterly Performance Discussion:** - **Revenue** declined due to lower sales volumes and a weaker sales mix in Asia, partially offset by improved sales volumes in the Americas and favorable pricing in Brazil. - **Gross Profit** decreased primarily due to lower conversion margins in the Americas and softer sales and profitability in Asia. - **Operating Loss** increased due to higher restructuring costs and lower gross profit. - **Net Loss** improved due to lower bad debt expense and income tax expense, partially offset by higher restructuring costs. **Trends & Uncertainties:** - **Input Costs & Global Production Volatility:** Despite lower input and freight costs, global demand volatility and uncertainty continued into fiscal 2025. - **Economic Environment:** The challenging environment for textile production and demand has adversely impacted UNIFI's consolidated sales and profitability. - **Geopolitical Risks:** UNIFI recognizes the disruption to global markets and supply chains caused by conflicts in Ukraine and the Middle East. **Future Operations Impact:** - UNIFI expects to incur between $6,000 and $8,000 of additional restructuring costs over the next 3 to 6 months related to the closure of the Madison, North Carolina facility. - UNIFI believes its global cash and liquidity positions are sufficient to sustain its operations and to meet its growth needs for the foreseeable future. - UNIFI maintains the ability to seek additional credit or financing arrangements and/or re-implement cost reduction initiatives to preserve cash and secure the longevity of the business and operations.