Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following is management’s discussion and analysis of certain significant factors that have affected UNIFI’s operations, along with material changes in financial condition, during the periods included in the accompanying condensed consolidated financial statements. A reference to a “note” in this section refers to the accompanying notes to condensed consolidated financial statements. A reference to the “current period” refers to the three-month period ended March 30, 2025, while a reference to the “prior period” refers to the three-month period ended March 31, 2024. A reference to the “current nine-month period” refers to the nine-month period ended March 30, 2025, while a reference to the “prior nine-month period” refers to the nine-month period ended March 31, 2024. Such references may be accompanied by certain phrases for added clarity. The current period and the prior period each consisted of 13 weeks. The current nine-month period and the prior nine-month period each consisted of 39 weeks.
Our discussions in this Item 2 focus on our results during, or as of, the three months ended March 30, 2025 and March 31, 2024, and, to the extent applicable, any material changes from the information discussed in the 2024 Form 10-K or other important intervening developments or information. These discussions should be read in conjunction with the 2024 Form 10-K for more detailed and background information about our business, operations, and financial condition.
Discussion of foreign currency translation is primarily associated with changes in the Brazilian Real (“BRL”) and changes in the Chinese Renminbi (“RMB”) versus the U.S. Dollar (“USD”). Weighted average exchange rates were as follows:
For the Three Months Ended
For the Nine Months Ended
March 30, 2025
March 31, 2024
March 30, 2025
March 31, 2024
BRL to USD
5.84
4.95
5.72
4.93
RMB to USD
7.27
7.19
7.21
7.21
All amounts, except per share amounts, are presented in thousands (000s), except as otherwise noted.
Overview and Significant General Matters
UNIFI focuses on delivering products and solutions to direct customers and brand partners throughout the world, leveraging our internal manufacturing capabilities and an enhanced global supply chain that delivers a diverse range of synthetic and recycled fibers and polymers. Our strategic initiatives include (i) leveraging our competitive advantages to grow market share in each of the major geographies we serve, (ii) expanding our presence in non-apparel markets with additional REPREVE ® products, (iii) advancing the development and commercialization of innovative and sustainable solutions, and (iv) increasing brand awareness for REPREVE ® . We have increased our focus on sales opportunities beyond traditional apparel customers and continue to drive innovation throughout our portfolio to further diversify the business and enhance gross profit. We believe our strategic initiatives will increase revenue and profitability and generate improved cash flows from operations.
Current Economic Environment
The challenging environment for textile production and demand has adversely impacted our consolidated sales and profitability. In addition, the following pressures have been present or recently introduced: (i) the impact of inflation on consumer spending, (ii) elevated interest rates for consumers and customers, including the impact on the carrying costs of customer inventories, (iii) the volatility of trade and regulatory matters in light of recent executive and legislative branch changes and (iv) the uncertainty over global trade policies and the financial impact of related tariffs and retaliatory tariffs.
A tariff structure that disproportionately impacts one country or region over another may result in a shift in manufacturing or flow of goods particularly as it relates to textile production across Asia and Central America. Such lower tariff countries or regions may be situated outside of UNIFI’s existing global supply chain. If UNIFI is unable to move production based on these shifts in regional demand, we may lose sales and experience an adverse effect on our financial condition, results of operations, or cash flows. UNIFI will continue to monitor these and other aspects of the current environment, leverage our global business model as necessary, and work closely with stakeholders to ensure business continuity and liquidity.
Fortunately, UNIFI has been expanding its supply chain and business model across multiple geographies over the last several years. Particularly, (i) our feedstock supply spans multiple markets, (ii) our commercial position in the Central American market remains key to servicing compliant business for USMCA and CAFTA-DR programs, and (iii) we have expanded our asset light model beyond China. Each of these concepts affords us diversity in this dynamic trade environment and greater flexibility in servicing our customer base.
Specific to other ongoing geopolitical tensions, we recognize the disruption to global markets and supply chains caused by the conflicts in Ukraine and the Middle East, and we have not been impacted. Indirectly, we recognize that additional or prolonged impacts to the petroleum or other global markets could cause further inflationary pressures to our global raw material costs or additional unforeseen adverse impacts.
Input Costs and Global Production Volatility
Despite lower input and freight costs and a marginally more stable labor pool recently, global demand volatility and uncertainty continued into fiscal 2025. The threat of recession and global tensions continue to create uncertainty. Such existing challenges and future uncertainty, particularly for rising input costs, labor productivity, and global demand, could worsen and/or continue for prolonged periods, materially impacting our consolidated sales, gross profit, and operating cash flows. Also, the need for future selling price adjustments in connection with inflationary costs could impact our ability to retain current customer programs and compete successfully for new programs in certain regions.
13
Key Performance Indicators and Non-GAAP Financial Measures
UNIFI continuously reviews performance indicators to measure its success. These performance indicators form the basis of management’s discussion and analysis included below:
• sales volume and revenue for UNIFI and for each reportable segment;
• gross (loss) profit and gross margin for UNIFI and for each reportable segment;
• net loss and diluted EPS;
• Segment (Loss) Profit, which equals segment gross (loss) profit plus segment depreciation expense;
• unit conversion margin, which represents unit net sales price less unit raw material costs, for UNIFI and for each reportable segment;
• working capital, which represents current assets less current liabilities;
• Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), which represents net loss before net interest expense, income tax expense, and depreciation and amortization expense;
• Adjusted EBITDA, which represents EBITDA adjusted to exclude, from time to time, certain other adjustments necessary to understand and compare the underlying results of UNIFI;
• Adjusted Net Loss, which represents net loss calculated under GAAP, adjusted to exclude certain amounts which management believes do not reflect the ongoing operations and performance of UNIFI and/or for which exclusion may be necessary to understand and compare the underlying results of UNIFI;
• Adjusted EPS, which represents Adjusted Net Loss divided by UNIFI’s diluted weighted average common shares outstanding;
• Adjusted Working Capital, which equals receivables plus inventories and other current assets, less accounts payable and other current liabilities; and
• Net Debt, which represents debt principal less cash and cash equivalents.
EBITDA, Adjusted EBITDA, Adjusted Net Loss, Adjusted EPS, Adjusted Working Capital, and Net Debt (collectively, 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. When applicable, management’s discussion and analysis includes specific consideration for items that comprise the reconciliations of its 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.
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 items (a) directly related to our asset base (primarily depreciation and amortization) and/or (b) 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 and is relevant to our fixed charge coverage ratio.
Management uses Adjusted Net Loss 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 Adjusted Working Capital as an indicator of UNIFI’s production efficiency and ability to manage inventories and receivables.
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.
14
Review of Results of Operations
Three Months Ended March 30, 2025 Compared to Three Months Ended March 31, 2024
Consolidated Overview
The below tables provide:
• the components of net loss and the percentage increase or decrease over the prior period amounts, and
• a reconciliation from net loss to EBITDA and Adjusted EBITDA, and
following the tables is a discussion and analysis of the significant components of net loss.
Net Loss
For the Three Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
146,557
100.0
$
148,996
100.0
(1.6
)
Cost of sales
147,002
100.3
144,232
96.8
1.9
Gross (loss) profit
(445
)
(0.3
)
4,764
3.2
(109.3
)
SG&A
12,295
8.4
11,372
7.6
8.1
(Benefit) provision for bad debts
(255
)
(0.2
)
179
0.1
nm
Restructuring costs
1,320
0.9
—
—
nm
Other operating expense, net
55
—
139
0.1
(60.4
)
Operating loss
(13,860
)
(9.4
)
(6,926
)
(4.6
)
100.1
Interest expense, net
2,219
1.5
1,975
1.4
12.4
Equity in loss of unconsolidated affiliates
216
0.2
604
0.4
(64.2
)
Loss before income taxes
(16,295
)
(11.1
)
(9,505
)
(6.4
)
71.4
Provision for income taxes
499
0.4
790
0.5
(36.8
)
Net loss
$
(16,794
)
(11.5
)
$
(10,295
)
(6.9
)
63.1
nm = not meaningful
EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)
The reconciliations of the amounts reported under GAAP for Net loss to EBITDA and Adjusted EBITDA were as follows:
For the Three Months Ended
March 30, 2025
March 31, 2024
Net loss
$
(16,794
)
$
(10,295
)
Interest expense, net
2,219
1,975
Provision for income taxes
499
790
Depreciation and amortization expense (1)
6,259
6,753
EBITDA
(7,817
)
(777
)
Transition costs (2)
2,900
—
Adjusted EBITDA
$
(4,917
)
$
(777
)
(1) Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net. However, within the accompanying Condensed Consolidated Statements of Cash Flows, amortization of debt issuance costs is reflected in depreciation and amortization expense.
(2) In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations, including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations.
15
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 to Adjusted Net Loss, and (iv) Diluted EPS to Adjusted EPS.
For the Three Months Ended March 30, 2025
For the Three Months Ended March 31, 2024
Pre-tax Loss
Tax Impact
Net Loss
Diluted EPS
Pre-tax Loss
Tax Impact
Net Loss
Diluted EPS
GAAP results
$
(16,295
)
$
(499
)
$
(16,794
)
$
(0.92
)
$
(9,505
)
$
(790
)
$
(10,295
)
$
(0.57
)
Transition costs (1)
2,900
—
2,900
0.16
—
—
—
—
Adjusted results
$
(13,395
)
$
(499
)
$
(13,894
)
$
(0.76
)
$
(9,505
)
$
(790
)
$
(10,295
)
$
(0.57
)
Weighted average common shares outstanding
18,352
18,169
(1) In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.
Net Sales
Consolidated net sales for the current period decreased by $2,439, or 1.6%, and consolidated sales volumes decreased by 0.9%, compared to the prior period. Net sales in the current period were lower primarily due to lower sales volumes and a weaker sales mix in Asia, partially offset by improved sales volumes in the Americas Segment, along with favorable pricing and market share gains in Brazil. Despite these sales volume improvements, volumes remain depressed, particularly in the Americas and Asia Segments as a result of continued weak global demand.
Consolidated weighted average sales prices decreased 0.7%. The decrease in sales prices was primarily attributable to a weaker sales mix in the Asia Segment, together with unfavorable foreign currency translation effects from the weakening of the BRL versus the USD within our Brazil Segment.
REPREVE ® Fiber products for the current period comprised 31%, or $44,699, of consolidated net sales, compared to 31%, or $46,754, for the prior period.
Gross (Loss) Profit
Gross profit for the current period decreased by $5,209 compared to the prior period. Gross profit decreased primarily due to (i) lower conversion margins in the Americas Segment and (ii) softer sales and profitability in the Asia Segment. These were partially offset by (a) increased sales volumes and (b) improved productivity. However, gross profit continues to be unfavorably impacted by weak fixed cost absorption in the Americas Segment, where utilization and productivity remain below historical averages. Ongoing cost savings measures led to UNIFI announcing the consolidation of yarn manufacturing operations in the Americas Segment with the planned closure of the Madison, North Carolina facility. UNIFI incurred $1,580 of transition costs during the period, recorded in Cost of sales, related to (i) inventory write-downs of $1,000 and (ii) excess manufacturing costs of $580.
• For the Americas Segment, gross profit decreased primarily due to decreased productivity related to the consolidation of yarn manufacturing operations.
• For the Brazil Segment, gross profit decreased primarily due to (i) an unfavorable foreign currency translation impact and (ii) lower conversion margins.
• For the Asia Segment, gross profit decreased primarily due to unfavorable changes in customer-specific programs from a weak demand environment.
SG&A
SG&A did not change meaningfully from the prior period to the current period, nor did the change include any significant offsetting impacts.
(Benefit) Provision for Bad Debts
The current period and the prior period reflect no material activity.
Restructuring Costs
On February 3, 2025, UNIFI announced the closing of its Madison, North Carolina facility and the transition of those manufacturing operations to other UNIFI production facilities in North and Central America. As a result, UNIFI incurred restructuring costs of $1,320 in the current period which consisted of (i) equipment relocation and facility closure costs of $1,088 and (ii) employee separation or retention costs of $232.
Other Operating Expense, Net
There was no material activity for the current period or the prior period.
16
Interest Expense, Net
Interest expense, net increased primarily due to lower interest income in the current period, associated with lower global cash balances.
Equity in Loss of Unconsolidated Affiliates
There was no material activity for the current period or the prior period.
Income Taxes
Provision for income taxes and the effective tax rate were as follows:
For the Three Months Ended
March 30, 2025
March 31, 2024
Provision for income taxes
$
499
$
790
Effective tax rate
(3.1
)%
(8.3
)%
The effective tax rate is subject to variation due to a number of factors, including variability in pre-tax book income; the mix of income by jurisdiction; changes in deferred tax valuation allowances; and changes in statutes, audit settlement, regulations, and case law. Additionally, the impacts of discrete and other rate impacting items are more pronounced when loss before income taxes is lower.
The increase in the effective tax rate from the prior period to the current period is primarily attributable to lower foreign earnings and higher losses in the U.S.
Net Loss
The decrease in net loss was primarily attributable to (i) lower gross profit and (ii) restructuring costs in the current period, partially offset by (a) lower bad debt expense and (b) lower income tax expense.
Adjusted EBITDA and Adjusted EPS (Non-GAAP Financial Measures)
Adjusted EBITDA and Adjusted EPS were lower compared to the prior period primarily due to lower gross profit, partially offset by lower bad debt expense.
Segment Overview
Following is a discussion and analysis of the revenue and profitability performance of UNIFI’s reportable segments for the current period.
Americas Segment
The components of Segment (Loss) Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior period amounts for the Americas Segment, were as follows:
For the Three Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
93,544
100.0
$
91,130
100.0
2.6
Cost of sales
100,501
107.4
94,644
103.9
6.2
Gross loss
(6,957
)
(7.4
)
(3,514
)
(3.9
)
98.0
Depreciation expense
5,251
5.6
5,473
6.0
(4.1
)
Segment (Loss) Profit
$
(1,706
)
(1.8
)
$
1,959
2.1
(187.1
)
Segment net sales as a percentage of
consolidated amounts
63.8
%
61.2
%
Segment (Loss) Profit as a percentage of
consolidated amounts
(30.9
)%
17.7
%
The change in net sales for the Americas Segment was as follows:
Net sales for the prior period
$
91,130
Increase in sales volumes
2,579
Change in average selling price and sales mix
(165
)
Net sales for the current period
$
93,544
The increase in net sales for the Americas Segment from the prior period to the current period was primarily attributable to higher sales volumes and ongoing growth in the Central America business. Both periods were unfavorably impacted by the continued weak global textile demand environment.
17
The change in Segment Loss for the Americas Segment was as follows:
Segment Profit for the prior period
$
1,959
Decrease in underlying unit margins
(3,665
)
Segment Loss for the current period
$
(1,706
)
The decrease in Segment (Loss) Profit for the Americas Segment from the prior period to the current period was primarily attributable to decreased productivity related to the consolidation of yarn manufacturing operations.
Brazil Segment
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior period amounts for the Brazil Segment, were as follows:
For the Three Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
28,124
100.0
$
29,573
100.0
(4.9
)
Cost of sales
25,136
89.4
25,736
87.0
(2.3
)
Gross profit
2,988
10.6
3,837
13.0
(22.1
)
Depreciation expense
701
2.5
841
2.8
(16.6
)
Segment Profit
$
3,689
13.1
$
4,678
15.8
(21.1
)
Segment net sales as a percentage of
consolidated amounts
19.2
%
19.8
%
Segment Profit as a percentage of
consolidated amounts
66.8
%
42.2
%
The change in net sales for the Brazil Segment was as follows:
Net sales for the prior period
$
29,573
Unfavorable foreign currency translation effects
(4,509
)
Increase in average selling price and change in sales mix
3,060
Net sales for the current period
$
28,124
The decrease in net sales for the Brazil Segment from the prior period to the current period was primarily attributable to unfavorable foreign currency translation effects from the weakening of the BRL versus the USD, partially offset by higher average selling prices due to increasing raw material costs.
The change in Segment Profit for the Brazil Segment was as follows:
Segment Profit for the prior period
$
4,678
Unfavorable foreign currency translation effects
(712
)
Decrease in underlying unit margins
(277
)
Segment Profit for the current period
$
3,689
The decrease in Segment Profit for the Brazil Segment from the prior period to the current period was primarily attributable to (i) unfavorable foreign currency translation effects and (ii) lower conversion margins. We continue to prioritize innovation and differentiation to improve our portfolio and competitive position in Brazil.
Asia Segment
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior period amounts for the Asia Segment, were as follows:
For the Three Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
24,889
100.0
$
28,293
100.0
(12.0
)
Cost of sales
21,365
85.9
23,852
84.3
(10.4
)
Gross profit
3,524
14.1
4,441
15.7
(20.6
)
Depreciation expense
13
0.1
—
—
—
Segment Profit
$
3,537
14.2
$
4,441
15.7
(20.4
)
Segment net sales as a percentage of
consolidated amounts
17.0
%
19.0
%
Segment Profit as a percentage of
consolidated amounts
64.1
%
40.1
%
18
The change in net sales for the Asia Segment was as follows:
Net sales for the prior period
$
28,293
Decrease in sales volumes
(2,305
)
Change in average selling price and sales mix
(761
)
Unfavorable foreign currency translation effects
(338
)
Net sales for the current period
$
24,889
The decrease in net sales for the Asia Segment from the prior period to the current period was primarily attributable to the changes in sales volumes related to customer-specific programs due to continued weak global demand, particularly for apparel.
The change in Segment Profit for the Asia Segment was as follows:
Segment Profit for the prior period
$
4,441
Change in underlying unit margins and sales mix
(490
)
Decrease in sales volumes
(362
)
Unfavorable foreign currency translation effects
(52
)
Segment Profit for the current period
$
3,537
The decrease in Segment Profit for the Asia Segment from the prior period to the current period was primarily attributable to (i) a lower gross margin rate associated with a change in sales mix of REPREVE products and (ii) a decline in sales volumes.
19
Nine Months Ended March 30, 2025 Compared to Nine Months Ended March 31, 2024
Consolidated Overview
The below tables provide:
• the components of net loss and the percentage increase or decrease over the prior nine-month period amounts, and
• a reconciliation from net loss to EBITDA and Adjusted EBITDA, and
following the tables is a discussion and analysis of the significant components of net loss.
Net Loss
For the Nine Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
432,809
100.0
$
424,757
100.0
1.9
Cost of sales
423,262
97.8
418,932
98.6
1.0
Gross profit
9,547
2.2
5,825
1.4
63.9
SG&A
37,058
8.6
35,389
8.3
4.7
(Benefit) provision for bad debts
(39
)
—
1,259
0.3
(103.1
)
Gain on sale of assets
(4,296
)
(1.0
)
—
—
nm
Restructuring costs
1,320
0.3
5,101
1.2
(74.1
)
Other operating expense, net
144
—
674
0.2
(78.6
)
Operating loss
(24,640
)
(5.7
)
(36,598
)
(8.6
)
(32.7
)
Interest expense, net
6,690
1.6
5,795
1.3
15.4
Equity in loss of unconsolidated affiliates
467
0.1
311
0.1
50.2
Loss before income taxes
(31,797
)
(7.4
)
(42,704
)
(10.0
)
(25.5
)
Provision for income taxes
4,021
0.9
707
0.2
nm
Net loss
$
(35,818
)
(8.3
)
$
(43,411
)
(10.2
)
(17.5
)
nm = not meaningful
EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)
The reconciliations of the amounts reported under GAAP for Net loss to EBITDA and Adjusted EBITDA were as follows:
For the Nine Months Ended
March 30, 2025
March 31, 2024
Net loss
$
(35,818
)
$
(43,411
)
Interest expense, net
6,690
5,795
Provision for income taxes
4,021
707
Depreciation and amortization expense (1)
19,046
20,663
EBITDA
(6,061
)
(16,246
)
Transition costs (2)
2,900
—
Gain on sale of assets (3)
(4,296
)
—
Restructuring costs (4)
—
5,101
Adjusted EBITDA
$
(7,457
)
$
(11,145
)
(1) Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net. However, within the accompanying Condensed Consolidated Statements of Cash Flows, amortization of debt issuance costs is reflected in depreciation and amortization expense.
(2) In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations.
(3) In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina.
(4) In the second quarter of fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.
20
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 to Adjusted Net Loss, and (iv) Diluted EPS to Adjusted EPS.
For the Nine Months Ended March 30, 2025
For the Nine Months Ended March 31, 2024
Pre-tax Loss
Tax Impact
Net Loss
Diluted EPS
Pre-tax Loss
Tax Impact
Net Loss
Diluted EPS
GAAP results
$
(31,797
)
$
(4,021
)
$
(35,818
)
$
(1.96
)
$
(42,704
)
$
(707
)
$
(43,411
)
$
(2.40
)
Transition costs (1)
2,900
—
2,900
0.16
—
—
—
—
Gain on sale of assets (2)
(4,296
)
—
(4,296
)
(0.23
)
—
—
—
—
Restructuring costs (3)
—
—
—
—
5,101
—
5,101
0.29
Adjusted results
$
(33,193
)
$
(4,021
)
$
(37,214
)
$
(2.03
)
$
(37,603
)
$
(707
)
$
(38,310
)
$
(2.11
)
Weighted average common shares outstanding
18,299
18,121
(1) In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.
(2) In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses and capital losses in the U.S.
(3) In the second quarter of fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.
Net Sales
Consolidated net sales for the current nine-month period increased by $8,052, or 1.9%, and consolidated sales volumes increased 4.2%, compared to the prior nine-month period. Net sales in the current nine-month period were higher primarily due to improved sales volumes in each of the reportable segments, along with favorable pricing in Brazil. Despite some volume improvements, overall sales remain depressed, particularly in the Americas and Asia Segments as a result of continued weak global demand.
Consolidated weighted average sales prices decreased 2.3% which partially offset the volume increase. The decrease in sales prices was primarily attributable to sales mix and lower average selling prices in the Asia and Americas Segments, together with unfavorable foreign currency translation effects from the weakening of the BRL versus the USD within our Brazil Segment.
REPREVE ® Fiber products for the current nine-month period comprised 31%, or $132,713, of consolidated net sales, compared to 32%, or $134,940, for the prior nine-month period.
Gross Profit
Gross profit for the current nine-month period increased to $9,547 from $5,825 in the prior nine-month period. Gross profit increased primarily due to (i) increased sales volumes, (ii) variable cost saving initiatives, (iii) improved productivity in certain manufacturing areas, and (iv) higher conversion margins. However, gross profit continues to be unfavorably impacted by weak manufacturing fixed cost absorption in the Americas Segment, where utilization and productivity remain below historical averages. Ongoing cost savings measures led to UNIFI announcing the consolidation of yarn manufacturing operations in the Americas Segment with the planned closure of the Madison, North Carolina facility. UNIFI incurred $1,580 of transition costs during the period, recorded in Cost of sales, related to (i) inventory write-downs of $1,000, and (ii) excess manufacturing costs of $580.
• For the Americas Segment, gross profit increased primarily due to (i) higher sales volumes, (ii) higher conversion margins, and (iii) variable cost management efforts.
• For the Brazil Segment, gross profit increased primarily due to (i) higher selling prices, (ii) higher sales volumes from market share gains, and (iii) higher conversion margins, which were partially offset by an unfavorable foreign currency translation impact.
• For the Asia Segment, gross profit decreased primarily due to lower conversion margins from an unfavorable change in sales mix in a weak demand environment.
SG&A
SG&A did not change meaningfully from the prior nine-month period to the current nine-month period, nor did the change include any significant offsetting impacts.
(Benefit) Provision for Bad Debts
The current nine-month period benefit reflects no material activity, while the prior nine-month period provision reflected an increase for a specifically identified customer balance originating in the U.S. fiber market.
21
Gain on Sale of Assets
In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina.
Restructuring Costs
On February 3, 2025, UNIFI announced the closing of its Madison, North Carolina facility and the transition of those manufacturing operations to other UNIFI production facilities in North and Central America. As a result, UNIFI incurred restructuring costs of $1,320 in the current period which consisted of (i) equipment relocation and facility closure costs of $1,088 and (ii) employee separation or retention costs of $232. Restructuring costs for the prior nine-month period consisted of (i) a loss of $2,750 for the dissolution of a nylon joint venture and (ii) severance charges of $2,351 in connection with the Profitability Improvement Plan in the U.S.
Other Operating Expense, Net
Other operating expense, net for the current nine-month period and the prior nine-month period include foreign currency transaction losses of $218 and $395, respectively, with no other meaningful activity.
Interest Expense, Net
Interest expense, net increased primarily due to lower interest income in the current nine-month period, associated with lower global cash balances.
Equity in Loss of Unconsolidated Affiliates
There was no material activity for the current nine-month period or the prior nine-month period.
Income Taxes
Provision for income taxes and the effective tax rate were as follows:
For the Nine Months Ended
March 30, 2025
March 31, 2024
Provision for income taxes
$
4,021
$
707
Effective tax rate
(12.6
)%
(1.7
)%
The effective tax rate is subject to variation due to a number of factors, including variability in pre-tax book income; the mix of income by jurisdiction; changes in deferred tax valuation allowances; and changes in statutes, audit settlement, regulations, and case law. Additionally, the impacts of discrete and other rate impacting items are more pronounced when loss before income taxes is lower.
The decrease in the effective tax rate from the prior nine-month period to the current nine-month period is primarily attributable to (i) lower losses in the U.S. and lower foreign earnings in the current nine-month period, as well as (ii) a decrease in valuation allowances and release of interest and penalty reserves for uncertain tax benefits as a result of concluding an IRS audit during the prior nine-month period.
Net Loss
The improvement in net loss was primarily attributable to (i) increased gross profit, (ii) lower bad debt expense, (iii) a gain on sale of assets, and (iv) lower restructuring costs in the current nine-month period compared to the prior nine-month period, partially offset by (a) higher interest expense, net, and (b) higher income tax expense.
Adjusted EBITDA and Adjusted EPS (Non-GAAP Financial Measures)
Adjusted EBITDA and Adjusted EPS increased primarily due to (i) higher gross profit and (ii) lower bad debt expense.
22
Segment Overview
Following is a discussion and analysis of the revenue and profitability performance of UNIFI’s reportable segments for the current nine-month period.
Americas Segment
The components of Segment Profit (Loss), each component as a percentage of net sales, and the percentage increase or decrease over the prior nine-month period amounts for the Americas Segment, were as follows:
For the Nine Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
262,922
100.0
$
253,252
100.0
3.8
Cost of sales
277,797
105.7
270,884
107.0
2.6
Gross loss
(14,875
)
(5.7
)
(17,632
)
(7.0
)
(15.6
)
Depreciation expense
15,995
6.1
16,478
6.5
(2.9
)
Segment Profit (Loss)
$
1,120
0.4
$
(1,154
)
(0.5
)
(197.1
)
Segment net sales as a percentage of
consolidated amounts
60.7
%
59.6
%
Segment Profit (Loss) as a percentage of
consolidated amounts
4.1
%
(4.7
)%
The change in net sales for the Americas Segment was as follows:
Net sales for the prior nine-month period
$
253,252
Increase in sales volumes
11,547
Change in average selling price and sales mix
(1,877
)
Net sales for the current nine-month period
$
262,922
The increase in net sales for the Americas Segment from the prior nine-month period to the current nine-month period was primarily attributable to higher sales volumes, partially offset by a lower-priced sales mix. Both periods were unfavorably impacted by the continued weak global textile demand environment.
The change in Segment Profit (Loss) for the Americas Segment was as follows:
Segment Loss for the prior nine-month period
$
(1,154
)
Change in underlying unit margins and sales mix
2,345
Change in sales volumes
(71
)
Segment Profit for the current nine-month period
$
1,120
The increase in Segment Profit for the Americas Segment from the prior nine-month period to the current nine-month period was primarily attributable to higher margins due to improved variable cost management efforts, partially offset by weak manufacturing fixed cost absorption and decreased productivity related to the consolidation of yarn manufacturing operations. Ongoing cost savings measures led to UNIFI announcing the consolidation of yarn manufacturing operations in the Americas Segment with the planned closure of the Madison, North Carolina facility. UNIFI incurred $1,580 of transition costs during the period, recorded in Cost of sales, related to (i) inventory write-downs of $1,000 and (ii) excess manufacturing costs of $580. Additionally, Segment Profit for the Americas Segment continues to be negatively impacted by a lower proportion of fiber sales volumes which are below historical averages due to depressed demand. As fiber products carry a higher selling price and allocation of production costs versus Chip and Flake, lower fiber production drives weaker fixed cost absorption and adversely impacts gross profit and gross margin.
Brazil Segment
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior nine-month period amounts for the Brazil Segment, were as follows:
For the Nine Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
89,916
100.0
$
85,543
100.0
5.1
Cost of sales
75,205
83.6
76,400
89.3
(1.6
)
Gross profit
14,711
16.4
9,143
10.7
60.9
Depreciation expense
2,044
2.2
2,447
2.8
(16.5
)
Segment Profit
$
16,755
18.6
$
11,590
13.5
44.6
Segment net sales as a percentage of
consolidated amounts
20.8
%
20.1
%
Segment Profit as a percentage of
consolidated amounts
60.6
%
46.8
%
23
The change in net sales for the Brazil Segment was as follows:
Net sales for the prior nine-month period
$
85,543
Increase in average selling price and change in sales mix
11,024
Increase in sales volumes
5,130
Unfavorable foreign currency translation effects
(11,781
)
Net sales for the current nine-month period
$
89,916
The increase in net sales for the Brazil Segment from the prior nine-month period to the current nine-month period was primarily attributable to (i) higher average selling prices due to increasing raw material costs and (ii) an improvement in sales volumes from market share gains, partially offset by unfavorable foreign currency translation effects from the weakening of the BRL versus the USD.
The change in Segment Profit for the Brazil Segment was as follows:
Segment Profit for the prior nine-month period
$
11,590
Increase in underlying unit margins
6,088
Increase in sales volumes
694
Unfavorable foreign currency translation effects
(1,617
)
Segment Profit for the current nine-month period
$
16,755
The increase in Segment Profit for the Brazil Segment from the prior nine-month period to the current nine-month period was primarily attributable to (i) higher conversion margins and (ii) an increase in sales volumes discussed above, partially offset by unfavorable foreign currency translation effects. We continue to prioritize innovation and differentiation to improve our portfolio and competitive position in Brazil.
Asia Segment
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior nine-month period amounts for the Asia Segment, were as follows:
For the Nine Months Ended
March 30, 2025
March 31, 2024
% of
Net Sales
% of
Net Sales
%
Change
Net sales
$
79,971
100.0
$
85,962
100.0
(7.0
)
Cost of sales
70,260
87.9
71,648
83.3
(1.9
)
Gross profit
9,711
12.1
14,314
16.7
(32.2
)
Depreciation expense
44
0.1
—
—
nm
Segment Profit
$
9,755
12.2
$
14,314
16.7
(31.8
)
Segment net sales as a percentage of
consolidated amounts
18.5
%
20.2
%
Segment Profit as a percentage of
consolidated amounts
35.3
%
57.8
%
The change in net sales for the Asia Segment was as follows:
Net sales for the prior nine-month period
$
85,962
Change in average selling price and sales mix
(6,742
)
Increase in sales volumes
730
Favorable foreign currency translation effects
21
Net sales for the current nine-month period
$
79,971
The decrease in net sales for the Asia Segment from the prior nine-month period to the current nine-month period was primarily attributable to a change in sales mix of REPREVE products, partially offset by (i) an overall increase in sales volumes despite continued weak global demand, particularly for apparel and (ii) favorable foreign currency translation effects due to the strengthening of the RMB versus the USD.
The change in Segment Profit for the Asia Segment was as follows:
Segment Profit for the prior nine-month period
$
14,314
Change in underlying unit margins and sales mix
(4,701
)
Increase in sales volumes
122
Favorable foreign currency translation effects
20
Segment Profit for the current nine-month period
$
9,755
The decrease in Segment Profit for the Asia Segment from the prior nine-month period to the current nine-month period was attributable to a decline in gross margin rate associated with a change in sales mix of REPREVE products.
24
Liquidity and Capital Resources
Note 5, “Long-Term Debt” to the condensed consolidated financial statements includes the detail of UNIFI’s debt obligations and terms and conditions thereof. Further discussion and analysis of liquidity and capital resources follow.
On October 25, 2024, UNIFI entered into a new credit agreement with Wells Fargo Bank, National Association for a $25,000 revolving credit facility (the "2024 Facility"). The maturity date of the 2024 Facility is the earlier of (i) October 28, 2027 and (ii) the termination or refinancing of the 2022 Credit Agreement. The 2024 Facility is deemed unsecured financing for UNIFI, but is collateralized by certain assets pledged by related party Kenneth G. Langone, one of the members of UNIFI's Board of Directors. Borrowings under the 2024 Facility bear interest at a rate of SOFR plus 0.90%. The 2024 Facility contains no additional financial covenants beyond those already in effect for the 2022 Credit Agreement and is subject to a monthly unused line fee of 0.25% on available borrowing capacity. In the third quarter of fiscal 2025, UNIFI borrowed $22,000 against the 2024 Facility and used the proceeds to reduce the outstanding ABL Revolver balance. There was no impact to debt principal from these transactions.
UNIFI’s primary capital requirements are for working capital, capital expenditures, and debt service. UNIFI’s primary sources of capital are cash generated from operations, borrowings available under the 2022 Credit Agreement and the 2024 Facility. For the current nine-month period, cash used by operations was $19,994 and, at March 30, 2025, availability under the ABL Revolver and 2024 Facility was $45,114 and $597, respectively.
As of March 30, 2025, all of UNIFI’s $140,002 of debt obligations were guaranteed by certain of its domestic operating subsidiaries, while nearly all of UNIFI’s cash and cash equivalents were held by its foreign subsidiaries. Cash and cash equivalents held by foreign subsidiaries may not be presently available to fund UNIFI’s domestic capital requirements, including its domestic debt obligations. UNIFI employs a variety of strategies to ensure that its worldwide cash is available in the locations where it is needed.
The following table presents a summary of cash and cash equivalents, borrowings available under financing arrangements, liquidity, working capital, and total debt obligations as of March 30, 2025 for domestic operations compared to foreign operations:
Domestic
Foreign
Total
Cash and cash equivalents
$
25
$
16,230
$
16,255
Potential borrowings available under financing arrangements
45,711
—
45,711
Trigger level under ABL Revolver
(17,430
)
—
(17,430
)
Available Liquidity
$
28,306
$
16,230
$
44,536
Working capital
$
58,400
$
108,525
$
166,925
Total debt obligations
$
140,002
$
—
$
140,002
Borrowings available under financing arrangements are generally collateralized by receivables and inventory owned in the U.S., plus cash equivalents pledged by Mr. Langone, and generally constrained by the fixed charge coverage ratio and trigger level prescribed in the 2022 Credit Agreement. Accordingly, “Available Liquidity” includes consideration for the trigger level that currently constrains our borrowing ability until a fixed charge coverage ratio of 1.05 to 1.00 is achieved. UNIFI’s primary cash requirements, in addition to normal course operating activities (e.g., working capital and payroll), primarily include (i) capital expenditures that generally have commitments of up to 12 months, (ii) contractual obligations that support normal course ongoing operations and production, (iii) operating leases and finance leases, (iv) debt service, and (v) share repurchases.
Subsequent to quarter-end, on April 10, 2025, UNIFI entered into a Real Estate Purchase and Sale Agreement ("the Purchase Agreement") related to the sale of its Madison, North Carolina facility, as well as certain machinery and equipment located thereon, for a cash purchase price of $53,200. The closing of the transaction is expected to occur on May 15, 2025, unless accelerated by Buyer pursuant to the terms of the Purchase Agreement. The net proceeds of the transaction will be used to repay a portion of the principal balance of term loans and revolving loans outstanding under the 2022 Credit Agreement.
Liquidity Considerations
Following the establishment of the 2024 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. Additionally, UNIFI considers opportunities to repatriate existing cash to reduce debt and preserve or enhance liquidity. However, further degradation in the macroeconomic environment could introduce additional liquidity risk and require UNIFI to limit cash outflows for discretionary activities while further utilizing available and additional forms of credit.
We do not currently anticipate that any adverse events or circumstances will place critical pressure on our liquidity position or our ability to fund our operations and expected business growth. Should global demand, economic activity, or input availability decline considerably for an even longer period of time, UNIFI maintains the ability to (i) seek additional credit or financing arrangements and/or (ii) re-implement cost reduction initiatives to preserve cash and secure the longevity of the business and operations. Management continues to (i) explore cost savings opportunities and (ii) prioritize repayment of debt in the current operating environment.
When business levels increase, we expect to use cash in support of working capital needs.
The following outlines the attributes relating to our credit facilities as of March 30, 2025:
• UNIFI was in compliance with all applicable financial covenants in the 2022 Credit Agreement and 2024 Facility;
• availability under the 2024 Facility was $597 as of March 30, 2025;
• availability exceeding the Trigger Level (as defined in the 2022 Credit Agreement) under the ABL Revolver was $27,684;
• the Trigger Level under the ABL Revolver was $17,430; and
• $0 of standby letters of credit were outstanding.
25
In addition to making payments in accordance with the scheduled maturities of debt required under its existing debt obligations, UNIFI may, from time to time, elect to repay additional amounts borrowed under the ABL Facility. Funds to make such repayments may come from the operating cash flows of the business or other sources and will depend upon UNIFI’s strategy, prevailing market conditions, liquidity requirements, contractual restrictions within the 2022 Credit Agreement, and other factors.
Liquidity Summary
UNIFI has met its historical liquidity requirements for working capital, capital expenditures, debt service requirements, and other operating needs from its cash flows from operations and available borrowings. UNIFI believes that its existing cash balances, cash provided by operating activities, and credit facilities will enable UNIFI to meet its foreseeable liquidity requirements. For its foreign operations, UNIFI expects its existing cash balances, cash provided by operating activities, and available financing arrangements will provide the needed liquidity to fund the associated operating activities and investing activities, such as future capital expenditures. UNIFI believes its operations in Asia and Brazil are in a position to obtain local country financing arrangements due to the operating results of each subsidiary.
Net Debt (Non-GAAP Financial Measure)
The reconciliations for Net Debt are as follows:
March 30, 2025
June 30, 2024
Long-term debt
$
127,894
$
117,793
Current portion of long-term debt
11,924
12,277
Unamortized debt issuance costs
184
229
Debt principal
140,002
130,299
Less: cash and cash equivalents
16,255
26,805
Net Debt
$
123,747
$
103,494
The increase in Net Debt primarily reflects the use of operating cash during fiscal 2025 and capital expenditures during the current nine-month period. The increase was partially offset by the application of proceeds to the ABL Revolver for the warehouse sale in October 2024.
Working Capital and Adjusted Working Capital (Non-GAAP Financial Measure)
The following table presents the components of working capital and the reconciliation of working capital to Adjusted Working Capital:
March 30, 2025
June 30, 2024
Cash and cash equivalents
$
16,255
$
26,805
Receivables, net
80,551
79,165
Inventories
131,501
131,181
Income taxes receivable
7,402
164
Other current assets
9,821
11,618
Accounts payable
(43,564
)
(43,622
)
Other current liabilities
(19,851
)
(17,662
)
Income taxes payable
(885
)
(754
)
Current operating lease liabilities
(2,381
)
(2,251
)
Current portion of long-term debt
(11,924
)
(12,277
)
Working capital
$
166,925
$
172,367
Less: Cash and cash equivalents
(16,255
)
(26,805
)
Less: Income taxes receivable
(7,402
)
(164
)
Less: Income taxes payable
885
754
Less: Current operating lease liabilities
2,381
2,251
Less: Current portion of long-term debt
11,924
12,277
Adjusted Working Capital
$
158,458
$
160,680
Adjusted Working Capital decreased $2,222 from June 30, 2024 to March 30, 2025.
The decrease in Adjusted Working Capital was primarily attributable to (i) a decrease in other current assets following an asset sale and (ii) an increase in employee compensation accruals within other current liabilities, which was partially offset by an increase in receivables, net primarily due to an increase in sales and the timing of cash receipts.
26
Operating Cash Flows
The significant components of net cash (used) provided by operating activities are summarized below.
For the Nine Months Ended
March 30, 2025
March 31, 2024
Net loss
$
(35,818
)
$
(43,411
)
Equity in loss of unconsolidated affiliates
467
311
Distribution received from unconsolidated affiliate
—
1,000
Depreciation and amortization expense
19,200
20,780
Non-cash compensation expense
2,442
1,798
Gain on sale of assets
(4,296
)
—
Deferred income taxes
563
(2,403
)
Subtotal
(17,442
)
(21,925
)
Receivables, net
(1,757
)
4,225
Inventories
(753
)
15,174
Accounts payable and other current liabilities
2,020
3,577
Other changes
(2,062
)
109
Net cash (used) provided by operating activities
$
(19,994
)
$
1,160
The decrease in operating cash flows was due to the relative changes in working capital including receivables, net, inventories, and accounts payable and other current liabilities, partially offset by an improvement in earnings in the current nine-month period compared to the prior nine-month period.
For the current nine-month period, the increases in accounts receivable and inventories were largely driven by the improvement in sales and timing of cash receipts. The increase in accounts payable and other current liabilities was largely due to increased accruals for employee compensation.
For the prior nine-month period, the decrease in inventories was primarily due to lower weighted average costs. The decrease in accounts receivable was largely driven by the decrease in sales and timing of cash receipts. The increase in accounts payable and other current liabilities was largely due to the liabilities recorded for severance and employee compensation.
Investing Cash Flows
Investing activities primarily include $7,915 for capital expenditures. UNIFI expects recent and future capital projects to provide benefits to future profitability. The additional assets from these capital projects consist primarily of machinery and equipment. In March 2023, UNIFI amended certain existing contracts related to future purchases of texturing machinery by delaying the scheduled receipt and installation of such equipment in the U.S. and El Salvador by 18 months. In December 2023, UNIFI extended this delay by an additional 12 months at no cost to the Company.
Financing Cash Flows
Financing activities primarily include net proceeds from the ABL Revolver and payments on the ABL Term Loan.
Share Repurchase Program
As described in Note 7, “Shareholders’ Equity,” no share repurchases have been completed in fiscal 2025.
Contractual Obligations
UNIFI incurs various financial obligations and commitments in the ordinary course of business. Financial obligations are considered to represent known future cash payments that UNIFI is required to make under existing contractual arrangements, such as debt and lease agreements.
There have been no material changes in the scheduled maturities of UNIFI’s contractual obligations as disclosed under the heading “Contractual Obligations” in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the 2024 Form 10-K except for the $22,000 of borrowings on the 2024 Facility, which matures October 28, 2027.
Off-Balance Sheet Arrangements
UNIFI is not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on UNIFI’s financial condition, results of operations, liquidity, or capital expenditures.
Critical Accounting Policies
UNIFI’s critical accounting policies are discussed in the 2024 Form 10-K. There have been no changes to UNIFI’s critical accounting policies in fiscal 2025.
27
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.