UNIFI INC Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>UNIFI INC filed its Q2 FY2024 10-Q report, detailing financial performance and segment data.</b>

AI Summary

UNIFI INC (UFI) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. UNIFI INC filed its 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. Key segments mentioned include America, Asia, and Brazil. The report details financial data related to common stock, retained earnings, and accumulated other comprehensive income. Information on credit agreements, ABL revolver, and ABL term loan is included.

Why It Matters

For investors and stakeholders tracking UNIFI INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance data for UNIFI INC, crucial for assessing the company's health and investment potential. The detailed segment information (America, Asia, Brazil) allows for a granular understanding of where the company is generating revenue and its operational focus.

Risk Assessment

Risk Level: medium — UNIFI INC shows moderate risk based on this filing. The company operates in the textile industry, which can be subject to cyclical demand and global economic fluctuations, as indicated by the segment reporting.

Analyst Insight

Investors should review the detailed financial statements and segment performance in the 10-Q to understand UNIFI INC's current operational and financial standing.

Key Numbers

• 2023-12-31 — Period End Date (Conformed period of report)
• 2024-02-07 — Filing Date (Filed as of date)
• Q2 — Fiscal Quarter (Fiscal quarter for the report)
• 2024 — Fiscal Year (Fiscal year for the report)

Key Players & Entities

• UNIFI INC (company) — Filer
• 2023-12-31 (date) — Period of report
• 2024-02-07 (date) — Filed as of date
• NY (location) — State of incorporation
• Greensboro (location) — Business address city
• NC (location) — Business address state
• AUTOMATED ENVIRONMENTAL SYSTEMS INC (company) — Former company name
• 1972-09-06 (date) — Date of name change

FAQ

Risk Factors

• Market and Economic Conditions [medium — market]: The company's financial results are significantly impacted by global economic conditions, including inflation, interest rates, and consumer demand for its products.
• Supply Chain and Raw Material Costs [medium — operational]: Disruptions in the global supply chain and volatility in raw material costs can affect production and profitability.
• Debt and Financing Arrangements [medium — financial]: The company's ability to manage its debt obligations and access credit facilities is critical for its ongoing operations and strategic initiatives.

Industry Context

UNIFI INC operates within the textile manufacturing industry, which is characterized by global competition, fluctuating raw material costs, and evolving consumer preferences for sustainable and recycled materials.

Regulatory Implications

As a publicly traded company, UNIFI INC is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the timely filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-Q for revenue, net income, and cash flow trends.
2. Examine the segment performance reports to understand the growth drivers and challenges in the America, Asia, and Brazil markets.
3. Review the risk factors section for any new or updated information regarding market, operational, or financial risks.

Year-Over-Year Comparison

This is the initial filing for the period ending December 31, 2023, so no prior period comparison is available within this specific document.

Key Financial Figures

• $0.10 — ch registered Common Stock, par value $0.10 per share UFI New York Stock Exchan

Filing Documents

• ufi-20231231.htm (10-Q) — 2641KB
• ufi-ex10_1.htm (EX-10.1) — 142KB
• ufi-ex10_2.htm (EX-10.2) — 141KB
• ufi-ex31_1.htm (EX-31.1) — 15KB
• ufi-ex31_2.htm (EX-31.2) — 15KB
• ufi-ex32.htm (EX-32) — 17KB
• 0000950170-24-012169.txt (&nbsp;) — 9415KB
• ufi-20231231.xsd (EX-101.SCH) — 1033KB
• ufi-20231231_htm.xml (XML) — 1738KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that relate to our plans, objectives, estimates, and goals. Statements expressing expectations regarding our future, or projections or estimates relating to products, sales, revenues, expenditures, costs, strategies, initiatives, or earnings, are typical of such statements and are made under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's beliefs, assumptions and expectations about our future performance, considering the information currently available to management. The words "believe," "may," "could," "will," "should," "would," "anticipate," "plan," "estimate," "project," "expect," "intend," "seek," "strive," and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements. These statements are not statements of historical fact; they involve risks and uncertainties that may cause our actual results, performance, or financial condition to differ materially from the expectations of future results, performance, or financial condition that we express or imply in any forward-looking statement. Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing, and pricing of raw materials; general domestic and international economic and industry conditions in markets where the Company competes, including economic and political factors over which the Company has no control; changes in consumer spending, customer preferences, fashion trends, and end-uses for the Company's products; the financ

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of December 31, 2023 and July 2, 2023 1 Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months and Six Months Ended December 31, 2023 and January 1, 2023 2 Condensed Consolidated Statements of Shareholders' Equity for the Three Months and Six Months Ended December 31, 2023 and January 1, 2023 3 Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2023 and January 1, 2023 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 27

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 6. Exhibits 28

—FINAN CIAL INFORMATION

PART I—FINAN CIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONDENSED CONSOLIDATED BA LANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) December 31, 2023 July 2, 2023 ASSETS Cash and cash equivalents $ 35,979 $ 46,960 Receivables, net 69,583 83,725 Inventories 135,676 150,810 Income taxes receivable 2,421 238 Other current assets 12,290 12,327 Total current assets 255,949 294,060 Property, plant and equipment, net 209,435 218,521 Operating lease assets 7,094 7,791 Deferred income taxes 4,812 3,939 Other non-current assets 14,839 14,508 Total assets $ 492,129 $ 538,819 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ 34,709 $ 44,455 Income taxes payable 2,263 789 Current operating lease liabilities 1,733 1,813 Current portion of long-term debt 12,357 12,006 Other current liabilities 17,409 12,932 Total current liabilities 68,471 71,995 Long-term debt 120,144 128,604 Non-current operating lease liabilities 5,515 6,146 Deferred income taxes 2,526 3,364 Other long-term liabilities 4,133 5,100 Total liabilities 200,789 215,209 Commitments and contingencies Common stock, $ 0.10 par value ( 500,000,000 shares authorized; 18,150,602 and 18,081,538 shares issued and outstanding as of December 31, 2023 and July 2, 2023, respectively) 1,815 1,808 Capital in excess of par value 70,254 68,901 Retained earnings 273,676 306,792 Accumulated other comprehensive loss ( 54,405 ) ( 53,891 ) Total shareholders' equity 291,340 323,610 Total liabilities and shareholders' equity $ 492,129 $ 538,819 See accompanying notes to condensed consolidated financial statements. 1 CONDENSED CONSOLIDATED STATE MENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (In thousands, except per share amounts) For the Three Months Ended For the Six Months Ended December 31, 2023 January

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