UNIFI completes $60M property sale, repays term loan
First-quarter gross profit reached $12.5 million, sales fell 5.7%, and management expects fiscal 2027 sales and profitability to improve.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
UNIFI, Inc. completed the sale of two non-strategic real estate assets in Yadkin County, North Carolina, on October 28, 2026, for $60.0 million in cash. Net proceeds fully repaid the $55.5 million term-loan balance, with remaining proceeds applied to repay a portion of revolving loans. The assets included approximately 120 acres and 500,000 square feet of warehouse space; UNIFI expects no impact on production capacity, minimal operational impact, and no change in serving customers from the Yadkin County campus.
For fiscal Q1 ended September 27, 2026, net sales were $127.9 million, down 5.7% year over year. Gross profit was $12.5 million versus $3.4 million, and gross margin was 9.8% versus 2.5%. UNIFI reported a net loss of $2.0 million versus $11.4 million and Adjusted EBITDA of $6.1 million versus a $2.5 million loss. Operating activities provided $3.7 million, compared with $8.9 million used a year earlier.
Management expects fiscal 2027 sales and profitability to improve year over year. For Q2, UNIFI expects cost savings and stable demand to aid Americas profitability, Brazil sales and profitability to remain generally consistent, and continued pressure in Asia. Shareholders elected all eight director nominees, approved named executive compensation on an advisory basis, and ratified KPMG LLP for fiscal 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Major point$55.5 million term loan repaid with proceeds from the completed asset sale. 53% of market cap
- Moderate pointGross profit rose to $12.5 million from $3.4 million year over year.
- Moderate pointAdjusted EBITDA was $6.1 million, versus a $2.5 million loss.
- Moderate pointOperating activities provided $3.7 million, versus $8.9 million used.
Negative
- Moderate pointNet sales declined 5.7% year over year to $127.9 million.
Insights
Analyzing...
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Net Debt financial
yarn-forward requirements regulatory
REPREVE Fiber technical
Free Cash Flow financial
Earnings Snapshot
Fiscal 2027 sales and profitability are expected to improve year over year. For Q2, UNIFI expects cost savings and stable demand to aid Americas profitability, Brazil sales and profitability to be generally consistent, and the Asia segment to remain pressured by regional softness and geopolitical volatility.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were UFI’s first-quarter fiscal 2027 results?
How did UFI use the proceeds from its real estate sale?
What is UFI’s Q2 fiscal 2027 outlook?
Will UFI’s real estate sale affect production or customer service?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of registrant as specified in its charter)
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(Address of principal executive offices) |
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Registrant’s telephone number, including area code: |
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry into a Material Definitive Agreement.
On October 28, 2026, Unifi, Inc. (the “Company”) entered into a Fourth Amendment (the “Fourth Amendment”) to its Second Amended and Restated Credit Agreement, dated as of October 28, 2022, by and among the Company and Unifi Manufacturing, Inc., a wholly owned subsidiary of the Company (“UMI”), as borrowers, the lenders from time to time party thereto, and Wells Fargo Bank, National Association, as agent (as amended, the “Credit Agreement”).
The Fourth Amendment amends the Credit Agreement to (a) permit UMI to consummate the transaction contemplated by the Purchase Agreement (as defined below) and (b) permit UMI to allocate a portion of the net proceeds from such transaction (including any deferred compensation payable pursuant to the terms of the Purchase Agreement) to repay revolving loans outstanding under the Credit Agreement, after the application of such net proceeds toward the term loans outstanding under the Credit Agreement.
Item 2.01. Completion of Acquisition or Disposition of Assets.
On October 28, 2026, UMI completed the previously announced sale of certain real property consisting of industrial/manufacturing building spaces and certain land underlying and surrounding the same located in Yadkin County, North Carolina pursuant to the Real Estate Purchase and Sale Agreement, dated August 16, 2026 (the “Purchase Agreement”), by and among UMI and Enovum NC-2 Bidco, LLC and Enovum NC-3 Bidco, LLC, as assignees of Enovum Data Centers Corp. (collectively with Enovum NC-2 Bidco, LLC and Enovum NC-3 Bidco, LLC, “Enovum”). The aggregate purchase price was $60.0 million in cash (the “Purchase Price”). The earnest money deposit of $2.25 million that was deposited in escrow pursuant to the terms of the Purchase Agreement was applied toward the Purchase Price.
The net proceeds of the transaction were used to fully repay the outstanding principal balance of term loans outstanding under the Credit Agreement with the balance applied to repay a portion of the revolving loans outstanding under the Credit Agreement.
There were no material relationships between Enovum and the Company or any of its affiliates, or any of its directors or officers, or any associate of any such director or officer, other than with respect to (a) the transactions contemplated by the Purchase Agreement and (b) the outstanding obligations under a Real Estate Purchase and Sale Agreement, dated April 10, 2025, by and between UMI and Enovum Data Centers Corp., as amended on May 19, 2025.
Item 2.02. Results of Operations and Financial Condition.
On October 29, 2026, the Company issued press releases announcing (a) the closing of the sale contemplated by the Purchase Agreement and (b) its operating results for the fiscal first quarter ended September 27, 2026, copies of which are attached hereto as Exhibits 99.1 and 99.2, respectively.
The information contained in this Item 2.02 of this Current Report, and in Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 5.07. Submission of Matters to a Vote of Security Holders.
(a) On October 27, 2026, the Company held its 2026 Annual Meeting of Shareholders (the “Annual Meeting”).
(b) At the Annual Meeting, the Company’s shareholders (i) elected all eight of the Company’s nominees for director to serve until their terms expire at the 2027 Annual Meeting of Shareholders or until their successors are duly elected and qualified; (ii) approved, on an advisory basis, the Company’s named executive officer compensation in fiscal 2026; and (iii) ratified the appointment of KPMG LLP to serve as the Company’s independent registered public accounting firm for fiscal 2027. Each of these proposals is further described in the Company’s definitive proxy statement on Schedule 14A filed with the United States Securities and Exchange Commission on September 11, 2026.
The final voting results of each of the proposals submitted to the Company’s shareholders at the Annual Meeting are as follows:
Nominee |
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Votes For |
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Votes Against |
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Abstentions |
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Broker Non-Votes |
Emma S. Battle |
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7,705,907 |
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388,063 |
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40,944 |
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3,618,390 |
Francis S. Blake |
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7,726,059 |
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367,650 |
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41,205 |
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3,618,390 |
Albert P. Carey |
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7,661,849 |
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431,913 |
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41,152 |
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3,618,390 |
Edmund M. Ingle |
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7,710,880 |
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382,788 |
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41,246 |
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3,618,390 |
Kenneth G. Langone |
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7,980,870 |
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112,992 |
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41,052 |
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3,618,390 |
Suzanne M. Present |
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7,738,658 |
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355,312 |
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40,944 |
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3,618,390 |
Rhonda L. Ramlo |
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6,047,062 |
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2,045,575 |
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42,277 |
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3,618,390 |
Eva T. Zlotnicka |
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7,691,710 |
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400,827 |
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42,377 |
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3,618,390 |
Votes For |
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Votes Against |
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Abstentions |
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Broker Non-Votes |
5,762,943 |
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2,365,861 |
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6,110 |
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3,618,390 |
Votes For |
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Votes Against |
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Abstentions |
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Broker Non-Votes |
11,745,137 |
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7,834 |
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333 |
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0 |
Item 7.01. Regulation FD Disclosure.
On October 30, 2026, the Company will host a conference call to discuss its operating results for the fiscal first quarter ended September 27, 2026. A copy of the materials prepared for use by management during this conference call is attached hereto as Exhibit 99.3.
The information contained in this Item 7.01 of this Current Report, and in Exhibit 99.3 hereto, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filing under the Securities Act, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
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99.1+ |
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Press Release of Unifi, Inc., dated October 29, 2026. |
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99.2+ |
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Press Release of Unifi, Inc., dated October 29, 2026. |
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99.3+ |
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Earnings Call Presentation Materials. |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
+ Furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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UNIFI, INC. |
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Date: |
October 29, 2026 |
By: |
/s/ ANDREW J. EAKER |
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Andrew J. Eaker |
Exhibit 99.1
UNIFI®, Makers of REPREVE®, Completes Sale of Non-Strategic U.S. Real Estate for Gross Proceeds of $60 Million
Transaction advances balance sheet transformation and financial flexibility while preserving current operations and customer service
GREENSBORO, N.C. - UNIFI, Inc. (NYSE: UFI) (together with its consolidated subsidiaries, “UNIFI”), the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, today announced that it has completed the previously disclosed sale of two non-strategic real estate assets in Yadkin County, North Carolina for $60 million in gross proceeds, before fees and expenses.
The assets sold include approximately 120 acres of land and 500,000 square feet of warehouse space across two operating locations in Yadkin County. The transaction is expected to have no impact to UNIFI’s production capacity, minimal operational impact, and no change in serving customers from the Yadkin County campus.
Net proceeds from the transaction were used to fully repay the existing $55.5 million term loan balance, and the closing represents a meaningful transformation of the business to further enable sustainable, long-term shareholder value creation.
“Completing this transaction is a landmark accomplishment for UNIFI and a powerful validation of our transformation strategy,” said Eddie Ingle, Chief Executive Officer of UNIFI, Inc. “We have successfully realized substantial value from assets outside our long-term strategic focus while preserving the production capacity and customer service capabilities that differentiate our business. The transaction strengthens our balance sheet, significantly reduces debt, enhances liquidity, and provides the flexibility to invest in innovation, growth, and operational excellence. We believe UNIFI is now better positioned to deliver sustainable profitable growth and create meaningful long-term value for our shareholders.”
The transaction was originally announced on August 17, 2026. Additional information regarding the transaction will be included in a Current Report on Form 8-K to be filed by UNIFI with the U.S. Securities and Exchange Commission.
About UNIFI
UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use - and reuse. A vertically integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil, and sales offices around the world. UNIFI envisions a future where circular and sustainable solutions are the only choice. For more information about UNIFI, visit www.UNIFI.com.
Cautionary Statement on Forward-Looking Statements
Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements include statements regarding the expected use of transaction proceeds, debt reduction, operating impacts, financial flexibility, future performance, and long-term value creation. These statements are based on management’s current beliefs, assumptions, and expectations and are not guarantees of future performance. Actual results may differ materially due to risks and uncertainties described in UNIFI’s most recent Annual Report on Form 10-K and other reports filed from time to time with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date made, and UNIFI undertakes no obligation to update them except as required by law.
Investor Contact
Josh Carroll or Chris Hodges
Alpha IR Group
312-445-2870
UFI@alpha-ir.com
###
Exhibit 99.2
UNIFI®, Makers of REPREVE®, Reports Strong Gross Margin and Cash Generation in First Quarter Fiscal 2027 Results, and Closing of a $60 Million Non-Strategic Asset Sale to Eliminate an Outstanding $55.5 Million Term Loan
Strategic initiatives drive continued improvement in profitability, cash flow generation and balance sheet strength
GREENSBORO, N.C., October 29, 2026 – Unifi, Inc. (NYSE: UFI), the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, today released operating results for the first fiscal quarter ended September 27, 2026.
Highlights
Eddie Ingle, Chief Executive Officer of Unifi, Inc., stated, “Our results for the first quarter demonstrate the continued benefits of the actions that have been implemented to improve operational efficiency and enhance both our cash generation and profitability performance. This is evident by the significant increase in gross profit year-over-year,
which highlights the improved earnings potential of our business and our progress towards building a more profitable operating platform. Additionally, the recent closing on the sale of two non-strategic assets represents another important milestone in our plan to reduce debt and strengthen the balance sheet, helping create greater financial flexibility as we continue to execute our strategic priorities.”
First Quarter Fiscal 2027 Compared to First Quarter Fiscal 2026
Net sales decreased to $127.9 million from $135.7 million, primarily due to tepid customer ordering patterns in the Americas and Asia Segments stemming from geopolitical, trade, and tariff-related uncertainty, partially offset by higher sales from the Brazil Segment.
Gross profit increased to $12.5 million from $3.4 million. Americas Segment gross profit increased by $6.4 million, primarily as a result of multi-year cost reduction efforts. Brazil Segment gross profit increased by $2.5 million, primarily due to favorable pricing dynamics and sales mix. Accordingly, operating loss, net loss, and Adjusted EBITDA all improved significantly.
Cash provided by operating activities was $3.7 million compared to cash used of $8.9 million, reflecting stronger earnings performance and continued working capital discipline.
Net Debt* was $64.8 million as of September 27, 2026 compared to $67.4 million as of June 28, 2026.
Outlook
During fiscal 2027, the Company continues:
During the second quarter of fiscal 2027, the Company expects the following year-over-year factors:
Ingle concluded, “Looking ahead, we remain focused on sustaining the operational improvements that we have made over the last few years. At the same time, we continue to invest in our platform of sustainable solutions, centered on our many REPREVE offerings, and to advance the adoption of innovative solutions that will help drive future growth. While near-term market and geopolitical headwinds persist, we remain confident that we are on the right path to returning Unifi to sustainable growth and enhanced profitability.”
* Adjusted Net Loss, Adjusted EBITDA, and Net Debt are non-GAAP financial measures. The schedules included in this press release reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure.
First Quarter Fiscal 2027 Earnings Conference Call
UNIFI will provide additional commentary regarding its first quarter fiscal 2027 results and other developments during its earnings conference call on October 30, 2026, at 9:00 a.m., Eastern Time. The call can be accessed via a live audio webcast on UNIFI’s website at http://investor.unifi.com. Additional supporting materials and information related to the call will also be available on UNIFI’s website.
###
About UNIFI
UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use – and reuse. A vertically-integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil, and sales offices all over the world. UNIFI envisions a future where circular and sustainable solutions are the only choice. For more information about UNIFI, visit www.unifi.com.
About REPREVE®
Made by UNIFI, Inc. (NYSE: UFI), REPREVE® is the global leader in recycled performance fibers and resins. Using proprietary recycling technology, REPREVE leverages multiple waste sources, including single-use plastic bottles, ocean-bound plastic, textile waste, and recycled yarn. REPREVE has transformed more than 46 billion plastic bottles and 1 billion T-shirts’ worth of textile waste into recycled fiber, powering globally scalable products for world-leading brands. Made traceable with FiberPrint® technology and certified by U-TRUST®, REPREVE spans apparel, footwear, furnishings, industrial, medical, military, mobility, and packaging. For more information about REPREVE, visit www.repreve.com.
Contact information:
Chris Hodges or Josh Carroll
Alpha IR Group
312-445-2870
UFI@alpha-ir.com
Financial Statements, Business Segment Information and Reconciliations of Reported Results to Adjusted Results to Follow
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
|
|
For the Three Months Ended |
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|
|
September 27, 2026 |
|
|
September 28, 2025 |
|
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Net sales |
|
$ |
127,920 |
|
|
$ |
135,674 |
|
Cost of sales |
|
|
115,439 |
|
|
|
132,287 |
|
Gross profit |
|
|
12,481 |
|
|
|
3,387 |
|
Selling, general and administrative expenses |
|
|
11,462 |
|
|
|
11,948 |
|
Provision (benefit) for bad debts |
|
|
568 |
|
|
|
(69 |
) |
Restructuring costs, net |
|
|
— |
|
|
|
1,068 |
|
Other operating expense, net |
|
|
475 |
|
|
|
70 |
|
Operating loss |
|
|
(24 |
) |
|
|
(9,630 |
) |
Interest income |
|
|
(470 |
) |
|
|
(375 |
) |
Interest expense |
|
|
1,449 |
|
|
|
2,003 |
|
Equity in earnings of unconsolidated affiliate |
|
|
(20 |
) |
|
|
(97 |
) |
Loss before income taxes |
|
|
(983 |
) |
|
|
(11,161 |
) |
Provision for income taxes |
|
|
1,037 |
|
|
|
196 |
|
Net loss |
|
$ |
(2,020 |
) |
|
$ |
(11,357 |
) |
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|
|
|
|
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Net loss per common share: |
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|||||||
Basic |
|
$ |
(0.11 |
) |
|
$ |
(0.62 |
) |
Diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.62 |
) |
|
|
|
|
|
|
|
||
Weighted average common shares outstanding: |
|
|||||||
Basic |
|
|
18,588 |
|
|
|
18,361 |
|
Diluted |
|
|
18,588 |
|
|
|
18,361 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
September 27, 2026 |
|
|
June 28, 2026 |
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
26,091 |
|
|
$ |
25,072 |
|
Receivables, net |
|
|
73,543 |
|
|
|
76,666 |
|
Inventories |
|
|
109,245 |
|
|
|
101,067 |
|
Income taxes receivable |
|
|
753 |
|
|
|
905 |
|
Other current assets |
|
|
9,052 |
|
|
|
7,743 |
|
Total current assets |
|
|
218,684 |
|
|
|
211,453 |
|
Property, plant and equipment, net |
|
|
153,534 |
|
|
|
158,325 |
|
Operating lease assets |
|
|
5,960 |
|
|
|
6,532 |
|
Deferred income taxes |
|
|
5,287 |
|
|
|
5,316 |
|
Other non-current assets |
|
|
4,907 |
|
|
|
4,807 |
|
Total assets |
|
$ |
388,372 |
|
|
$ |
386,433 |
|
|
|
|
|
|
|
|
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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|
|
|
|
|
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Accounts payable |
|
$ |
37,500 |
|
|
$ |
31,151 |
|
Income taxes payable |
|
|
1,295 |
|
|
|
656 |
|
Current operating lease liabilities |
|
|
1,879 |
|
|
|
2,128 |
|
Current portion of long-term debt |
|
|
12,087 |
|
|
|
12,371 |
|
Other current liabilities |
|
|
15,169 |
|
|
|
17,249 |
|
Total current liabilities |
|
|
67,930 |
|
|
|
63,555 |
|
Long-term debt |
|
|
78,756 |
|
|
|
79,998 |
|
Non-current operating lease liabilities |
|
|
4,132 |
|
|
|
4,458 |
|
Deferred income taxes |
|
|
1,004 |
|
|
|
997 |
|
Other long-term liabilities |
|
|
5,333 |
|
|
|
5,203 |
|
Total liabilities |
|
|
157,155 |
|
|
|
154,211 |
|
|
|
|
|
|
|
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Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Common stock |
|
|
1,859 |
|
|
|
1,859 |
|
Capital in excess of par value |
|
|
77,954 |
|
|
|
77,174 |
|
Retained earnings |
|
|
212,467 |
|
|
|
214,487 |
|
Accumulated other comprehensive loss |
|
|
(61,063 |
) |
|
|
(61,298 |
) |
Total shareholders’ equity |
|
|
231,217 |
|
|
|
232,222 |
|
Total liabilities and shareholders’ equity |
|
$ |
388,372 |
|
|
$ |
386,433 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
|
For the Three Months Ended |
|
|||||
|
|
September 27, 2026 |
|
|
September 28, 2025 |
|
||
Cash and cash equivalents at beginning of period |
|
$ |
25,072 |
|
|
$ |
22,664 |
|
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
|
(2,020 |
) |
|
|
(11,357 |
) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: |
|
|
|
|
|
|
||
Equity in earnings of unconsolidated affiliate |
|
|
(20 |
) |
|
|
(97 |
) |
Depreciation and amortization expense |
|
|
5,759 |
|
|
|
5,977 |
|
Non-cash compensation expense |
|
|
780 |
|
|
|
801 |
|
Loss on foreign currency transaction, net |
|
|
91 |
|
|
|
— |
|
Deferred income taxes |
|
|
29 |
|
|
|
(372 |
) |
Other, net |
|
|
2 |
|
|
|
182 |
|
Changes in assets and liabilities |
|
|
(944 |
) |
|
|
(4,054 |
) |
Net cash provided (used) by operating activities |
|
|
3,677 |
|
|
|
(8,920 |
) |
|
|
|
|
|
|
|
||
Investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(1,198 |
) |
|
|
(2,029 |
) |
Proceeds from the sale of assets |
|
|
40 |
|
|
|
23 |
|
Net cash used by investing activities |
|
|
(1,158 |
) |
|
|
(2,006 |
) |
|
|
|
|
|
|
|
||
Financing activities: |
|
|
|
|
|
|
||
Proceeds from long-term debt |
|
|
27,200 |
|
|
|
51,900 |
|
Payments on long-term debt |
|
|
(28,739 |
) |
|
|
(43,268 |
) |
Other, net |
|
|
— |
|
|
|
— |
|
Net cash (used) provided by financing activities |
|
|
(1,539 |
) |
|
|
8,632 |
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
39 |
|
|
|
185 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
1,019 |
|
|
|
(2,109 |
) |
Cash and cash equivalents at end of period |
|
$ |
26,091 |
|
|
$ |
20,555 |
|
BUSINESS SEGMENT INFORMATION
(Unaudited)
(In thousands)
Net sales and gross profit (loss) details for each reportable segment of UNIFI are as follows:
|
|
For the Three Months Ended |
|
|||||
|
|
September 27, 2026 |
|
|
September 28, 2025 |
|
||
Americas |
|
$ |
76,962 |
|
|
$ |
85,196 |
|
Brazil |
|
|
32,912 |
|
|
|
28,761 |
|
Asia |
|
|
18,046 |
|
|
|
21,717 |
|
Consolidated net sales |
|
$ |
127,920 |
|
|
$ |
135,674 |
|
|
|
For the Three Months Ended |
|
|||||
|
|
September 27, 2026 |
|
|
September 28, 2025 |
|
||
Americas |
|
$ |
4,732 |
|
|
$ |
(1,712 |
) |
Brazil |
|
|
5,136 |
|
|
|
2,661 |
|
Asia |
|
|
2,613 |
|
|
|
2,438 |
|
Consolidated gross profit |
|
$ |
12,481 |
|
|
$ |
3,387 |
|
RECONCILIATIONS OF REPORTED RESULTS TO ADJUSTED RESULTS
(Unaudited)
(In thousands)
EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)
The reconciliations of the amounts reported under U.S. generally accepted accounting principles (“GAAP”) for Net loss to EBITDA and Adjusted EBITDA are set forth below.
|
|
For the Three Months Ended |
|
|||||
|
|
September 27, 2026 |
|
|
September 28, 2025 |
|
||
Net loss |
|
$ |
(2,020 |
) |
|
$ |
(11,357 |
) |
Interest expense, net |
|
|
979 |
|
|
|
1,628 |
|
Provision for income taxes |
|
|
1,037 |
|
|
|
196 |
|
Depreciation and amortization expense (1) |
|
|
5,703 |
|
|
|
5,921 |
|
EBITDA |
|
|
5,699 |
|
|
|
(3,612 |
) |
|
|
|
|
|
|
|
||
Loss on foreign currency transaction, net (2) |
|
|
91 |
|
|
|
— |
|
Transition costs (3) |
|
|
265 |
|
|
|
— |
|
Restructuring costs, net (4) |
|
|
— |
|
|
|
1,068 |
|
Adjusted EBITDA |
|
$ |
6,055 |
|
|
$ |
(2,544 |
) |
Adjusted Net Loss and Adjusted EPS (Non-GAAP Financial Measures)
The tables below set forth reconciliations of (i) Loss before income taxes (“Pre-tax Loss”), (ii) Provision for income taxes (“Tax Impact”), (iii) Net loss (“Net Loss”) to Adjusted Net Loss, and (iv) Diluted Earnings Per Share (“Diluted EPS”) to Adjusted EPS. Rounding may impact certain of the below calculations.
|
|
For the Three Months Ended September 27, 2026 |
|
|
For the Three Months Ended September 28, 2025 |
|
||||||||||||||||||||||||||
|
|
Pre-tax Loss |
|
|
Tax Impact |
|
|
Net Loss |
|
|
Diluted EPS |
|
|
Pre-tax Loss |
|
|
Tax Impact |
|
|
Net Loss |
|
|
Diluted EPS |
|
||||||||
GAAP results |
|
$ |
(983 |
) |
|
$ |
(1,037 |
) |
|
$ |
(2,020 |
) |
|
$ |
(0.11 |
) |
|
$ |
(11,161 |
) |
|
$ |
(196 |
) |
|
$ |
(11,357 |
) |
|
$ |
(0.62 |
) |
Loss on foreign currency transaction, net (1) |
|
|
91 |
|
|
|
(16 |
) |
|
|
75 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transition costs (2) |
|
|
265 |
|
|
|
— |
|
|
|
265 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring costs, net (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,068 |
|
|
|
— |
|
|
|
1,068 |
|
|
|
0.06 |
|
Adjusted results |
|
$ |
(627 |
) |
|
$ |
(1,053 |
) |
|
$ |
(1,680 |
) |
|
$ |
(0.09 |
) |
|
$ |
(10,093 |
) |
|
$ |
(196 |
) |
|
$ |
(10,289 |
) |
|
$ |
(0.56 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
18,588 |
|
|
|
|
|
|
|
|
|
|
|
|
18,361 |
|
||||||||||||||
Net Debt (Non-GAAP Financial Measure)
Reconciliations of Net Debt are as follows:
|
|
September 27, 2026 |
|
|
June 28, 2026 |
|
||
Long-term debt |
|
$ |
78,756 |
|
|
$ |
79,998 |
|
Current portion of long-term debt |
|
|
12,087 |
|
|
|
12,371 |
|
Unamortized debt issuance costs |
|
|
57 |
|
|
|
70 |
|
Debt principal |
|
|
90,900 |
|
|
|
92,439 |
|
Less: cash and cash equivalents |
|
|
26,091 |
|
|
|
25,072 |
|
Net Debt |
|
$ |
64,809 |
|
|
$ |
67,367 |
|
Cash and cash equivalents
At September 27, 2026 and June 28, 2026, UNIFI’s foreign operations held nearly all consolidated cash and cash equivalents.
REPREVE Fiber
REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies.
Non-GAAP Financial Measures
Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net (Loss) Income, Adjusted EPS, and Net Debt (together, the “non-GAAP financial measures”).
The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. We may, from time to time, modify the amounts used to determine our non-GAAP financial measures.
We believe that these non-GAAP financial measures better reflect UNIFI’s underlying operations and performance and that their use, as operating performance measures, provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets, among otherwise comparable companies.
This press release also includes certain forward-looking information that is not presented in accordance with GAAP. Management believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require UNIFI to predict the timing and likelihood of potential future events such as restructurings, M&A activity, contract modifications, and other infrequent or unusual gains and losses. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided.
Management uses Adjusted EBITDA (i) as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of (a) items directly related to our asset base (primarily depreciation and amortization) and (b) items that we would not expect to occur as a part of our normal business on a regular basis; (ii) for planning purposes, including the preparation of our annual operating budget; (iii) as a valuation measure for evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures, and expand our business; and (iv) as one measure in determining the value of other acquisitions and dispositions. Adjusted EBITDA is a key performance metric utilized in the determination of variable compensation. We also believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because it serves as a high-level proxy for cash generated from operations.
Management uses Adjusted Net (Loss) Income and Adjusted EPS (i) as measurements of net operating performance because they assist us in comparing such performance on a consistent basis, as they remove the impact of (a) items that we would not expect to occur as a part of our normal business on a regular basis and (b) components of the provision for income taxes that we would not expect to occur as a part of our underlying taxable operations; (ii) for planning purposes, including the preparation of our annual operating budget; and (iii) as measures in determining the value of other acquisitions and dispositions.
Management uses Net Debt as a liquidity and leverage metric to determine how much debt would remain if all cash and cash equivalents were used to pay down debt principal.
In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, these non-GAAP financial measures should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. Investors should compensate for these limitations by relying primarily on our GAAP results and using these measures only as supplemental information.
Cautionary Statement on Forward-Looking Statements
Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of UNIFI that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management. An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. 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, and 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 UNIFI competes, including economic and political factors over which UNIFI has no control; changes in consumer spending, customer preferences, fashion trends, and end-uses for UNIFI's products; the financial condition of UNIFI’s customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages, extreme weather conditions, and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including, but not limited to, epidemics or pandemics; the success of UNIFI’s strategic business initiatives; the volatility of financial and credit markets, including the impacts of counterparty risk (e.g., deposit concentration and recent depositor sentiment and activity); the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest, and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain, and motivate key employees; the impact of climate change or environmental, health, and safety regulations; and the impact of tax laws, the judicial or administrative interpretations of tax laws, and/or changes in such laws or interpretations.
All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on UNIFI. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in UNIFI’s most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by UNIFI with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.
-end-
Exhibit 99.3 October 30, 2026 UNIFI, Inc. First Quarter Fiscal 2027 Earnings Conference Call (Unaudited results) (Amounts and dollars in millions, unless otherwise noted)
Cautionary Statements Forward-Looking Statements Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management’s beliefs, assumptions, and expectations about our future economic performance, considering the information currently available to management. An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. 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, and 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 UNIFI’s products; the financial condition of the Company’s customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages; extreme weather conditions, and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including, but not limited to, epidemics or pandemics; the success of the Company’s strategic business initiatives; the volatility of financial and credit markets, including the impacts of counterparty risk (e.g., deposit concentration and recent depositor sentiment and activity); the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest, and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain, and motivate key employees; the impact of climate change or environmental, health, and safety regulations; and the impact of tax laws, the judicial or administrative interpretations of tax laws, and/or changes in such laws or interpretations. All such factors are difficult to predict, contain uncertainties that may materially affect actual results, and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in the Company’s most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by the Company with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. Non-GAAP Financial Measures Certain non-GAAP financial measures are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net (Loss) Income, Adjusted EPS, Adjusted Working Capital, and Net Debt (collectively, the “non-GAAP financial measures”). The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. The Company may, from time to time, modify the amounts used to determine its non-GAAP financial measures. We believe that these non-GAAP financial measures better reflect the Company’s underlying operations and performance and that their use, as operating performance measures, provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets, among otherwise comparable companies. In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, these non-GAAP financial measures should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. You should compensate for these limitations by relying primarily on our GAAP results and using these measures only as supplemental information.
Today’s Speakers Al Carey Executive Chairman Eddie Ingle CEO and Director A.J. Eaker EVP, CFO, and Treasurer
Q1 FY2027: Big Picture Overview Geopolitical and tariff situations remain fluid and impacted top-line results and global operations Strategic repositioning efforts continue to deliver measurable quarterly results: Significant improvement in gross profit Positive operating cash flow boosts flexibility Momentum continues to build: Completed non-strategic asset sale for debt reduction and forward flexibility Beyond apparel initiatives continue to gain traction across key focus areas Launched new products and new YarnProof system, which will better support compliance with yarn-forward trade requirements in North and Central America Pricing and cost diligence continue through FY27 1Adjusted metrics are non-GAAP financial measures described on Slide 2 and reconciled within the Earnings Release dated October 29, 2026. (In Millions) Q1 FY27 Q1 FY26 YoY Change Net Sales $127.9 $135.7 (5.7%) Gross Profit $12.5 $3.4 268% Gross Margin 9.8% 2.5% 730 bps SG&A $11.5 $11.9 4.1% Net Loss ($2.0) ($11.4) 82% Adj. Net Loss1 ($1.7) ($10.3) 84% Adj. EBITDA1 $6.1 ($2.5) $8.6
Americas Segment Note: Q1 FY27 ended on September 27, 2026; Q1 FY26 ended on September 28, 2025; and each contained 13 weeks. (In Millions) Q1 FY27 Q1 FY26 YoY Change Net Sales $77.0 $85.2 (9.7%) Gross Profit (Loss) $4.7 ($1.7) nm Gross Margin 6.1% (2.0)% 810 bps Highlights/Drivers Gross profit increased vs. prior year, primarily due to the results of a 2026 Profit Improvement Plan that reduced certain fixed and variable costs, along with richer margins in Beyond Apparel programs, partially offset by demand volatility.
Brazil Segment (In Millions) Q1 FY27 Q1 FY26 YoY Change Net Sales $32.9 $28.8 14.4% Gross Profit $5.1 $2.7 93.0% Gross Margin 15.6% 9.3% 630 bps Highlights/Drivers Net sales and gross profit increased vs. prior year, primarily due to favorable pricing dynamics and improved sales mix. Note: Q1 FY27 ended on September 27, 2026; Q1 FY26 ended on September 28, 2025; and each contained 13 weeks.
Asia Segment (In Millions) Q1 FY27 Q1 FY26 YoY Change Net Sales $18.0 $21.7 (16.9%) Gross Profit $2.6 $2.4 7.2% Gross Margin 14.5% 11.2% 330 bps Highlights/Drivers Gross profit increased vs. prior year, primarily due to a richer sales mix, despite lower sales volumes. Note: Q1 FY27 ended on September 27, 2026; Q1 FY26 ended on September 28, 2025; and each contained 13 weeks.
Balance Sheet & Capital Structure 1 Free Cash Flow is a non-GAAP financial measure reconciled on Slide 13. 2 Net Debt is a non-GAAP financial measure described on Slide 2 and reconciled within the Earnings Release dated October 29, 2026. (In Millions) Q1 FY27 Q1 FY26 Q4 FY26 Free Cash Flow1 $2.5 ($10.9) $1.0 Capital Expenditures $1.2 $2.0 $1.1 Q1 FY27 amounts here exclude the significant debt reduction associated with the non-strategic asset sale completed in October 2026. (In Millions) Q1 FY27 YTD Q1 FY26 YTD YoY Change Net Debt2 $64.8 $99.8 ($35.0) Working Capital $151 $168 ($17) Significant improvement in cash flow and capital structure has occurred since Q1 FY26.
Priorities Going Forward 1. Continue to leverage lower revenue breakeven point. 2. Invest in strengthening and scaling our innovative platforms. 3. Prioritize customer adoption and market share growth. 4. Diligently manage trade and geopolitical events that are pressuring the supply chain. Continued Focus on Improved Profitability
Innovation and Marketing Highlights 10 © 2026 Unifi, Inc. - Confidential & Proprietary
Fiscal 2027 & Q2 Outlook Fiscal 2027 results for sales and profitability are expected to improve year-over-year as past strategic actions achieve full year benefits. Q2 Outlook (Year-over-Year) Focused on cash flow generation & balance sheet strength. 1. Cost savings and stable demand will increase profitability in the Americas Segment. 2. Brazil Segment sales and profitability generally consistent with Q2 Fiscal 2026. 3. The Asia Segment will remain pressured due to regional softness and geopolitical volatility.
Contact Investor Relations: UFI@alpha-ir.com
Free Cash Flow Reconciliation The following reconciles Free Cash Flow from net cash from operating activities.