10-Q

美國

證券交易委員會

華盛頓特區 20549

表格 10-Q


(標記一個)
☒	根據1934年證券交易法第13或15(d)條款的季度報告。

截至季度結束九月二十九日 2024

或



☐	根據1934年證券交易法第13或15(d)條款的過渡報告

到到_____

委員會檔案編號： 1-10542

聯合纖維股份有限公司。

（依憑章程所載的完整登記名稱）


紐約		11-2165495
（國家或其他管轄區的		（IRS僱主
公司成立或組織）		唯一識別號碼）

7201 West Friendly Avenue
Greensboro, 北卡羅來納州		27410
(主要行政辦公室地址)		(郵政編碼)

(336) 294-4410

(註冊人電話號碼，包括區號)

根據本法第 12 (b) 條註冊的證券：

     
每種類別的名稱

    交易標的（s）

    每個註冊交易所的名稱

    每股普通股的面額為0.10美元

    UFI

    紐約證券交易所

以勾號註明註冊人 (1) 是否在過去 12 個月內提交了 1934 年證券交易法第 13 條或第 15 (d) 條所要求提交的所有報告（或在較短的時間內，註冊人需要提交該等報告），以及 (2) 過去 90 天內已遵守該等申報要求。是 ☒ 否 ☐

請打勾號表明註冊人是否根據《S-t條例405條規定（本章節232.405號）的規定，在過去12個月內（或註冊人需要提交此類文件的更短期限內），已提交每個交互數據文件。是的 ☒ 否 ☐

請勾選是否註冊人是大型加速報告人、加速報告人、非加速報告人、小型報告公司或新興成長公司。請參考交易所法案120億.2中「大型加速報告人」、「加速報告人」、「小型報告公司」和「新興成長公司」的定義。


大型加速歸檔人	☐	加速歸檔人	☒

非加速歸檔人	☐	小型報告公司	☐

		新興成長型企業	☐

如果一家新興成長型公司，請用勾選標記表示該申報人已選擇不使用根據證交所法案13(a)條款提供的任何新的或修訂過的財務會計準則的延長過渡期。 ☐

請勾選是否屬於外殼公司（根據交易所法案第120億2條的定義）。是 ☐ 否 ☒

截至2024年11月1日，共有 18,267,203 公司A類普通股股份註冊人的普通股，面值每股0.10美元，已發行的股份數。

前瞻性聲明

本季度第 10-Q 表格中包含根據 1933 年證券法修正案第 27A 條和 1934 年證券交易法修正案第 21E 條的「前瞻性聲明」，這些聲明涉及我們的計劃、目標、估計和目標。表達關於我們未來的期望、或涉及產品、銷售、收入、支出、成本、戰略、舉措或收益的預期或預測的聲明，屬於這類聲明的典型表現，並根據 1995 年《私人證券訴訟改革法》進行。前瞻性聲明基於管理層對我們未來表現的信念、假設和期望，考慮到目前管理層掌握的信息。詞語「相信」、「可能」、「可以」、「將」、「應該」、「願意」、「預期」、「計劃」、「估計」、「項目」、「期望」、「打算」、「尋找」、「努力」以及類似意義的詞語，或這些詞語的否定形式，識別或暗示了前瞻性聲明的存在。這些聲明不是歷史事實陳述；它們涉及可能導致我們的實際結果、表現或財務狀況與我們在任何前瞻性聲明中表達或暗示的未來結果、表現或財務狀況預期不符的風險和不確定因素。可能導致這種差異的因素包括但不限於：

•

紡織行業的競爭性質以及全球貨幣競爭的影響;

•

貿易監管環境和政府政策及立法的變化；

•

原材料的可獲得性、採購和定價；

•

公司競爭市場中的一般國內和國際經濟及行業板塊條件，包括公司無法控制的經濟和政治因素；

•

消費支出、客戶偏好、時尚趨勢和公司產品的最終用途的變化；

•

公司客戶的財務控制項;

•

重要客戶或品牌合作夥伴的損失；

•

自然災害、工業事故、電力或供水短缺、極端天氣條件等公司設施的其他干擾;

•

運營中斷、全球貨幣需求或由於災難性或特殊事件造成的財務表現，包括但不限於流行病或大流行;

•

公司戰略業務舉措的成功；

•

金融和信貸市場的波動性，包括交易對手風險的影響（例如，存入資金集中和最近的存戶情緒及活動）；

•

償還債務及資助資本支出和戰略業務計劃的能力；

•

可獲得及按合理條件使用信貸的可用性；

•

外匯兌換、利息和通貨膨脹率的變動；

•

生產成本波動；

•

保護智慧財產權的能力；

•

公司品牌的實力和聲譽；

•

員工關係;

•

吸引、留住和激勵關鍵員工的能力；

•

氣候變化或環保母基、健康和安全法規的影響；

•

稅法的影響，稅法的司法或行政解讀，以及/或這些法律或解讀的變化；並

•

在截至2024年6月30日的財政年度公司《10-K表格》年報的“項目1A. 風險因素”中，或在公司其他定期報告和提交給證券交易委員會（“SEC”）的信息中討論的其他因素。

所有板塊都很難預測，包含可能嚴重影響實際結果的不確定性因素，且可能超出我們的控制範圍。新因素不時出現，管理層無法預測所有這些因素，或評估每個因素對公司的影響。任何對未來有前瞻性看法的陳述僅代表該陳述所做之日，我們沒有責任更新任何前瞻性陳述以反映該陳述所做之日後的事件或情況，除非根據聯邦證券法的要求。

基於上述所有板塊考慮，我們重申，前瞻性聲明並不能保證未來的表現，我們提醒您不要如此依賴它們。

聯合纖維股份有限公司。

第10-Q表格季報告

2024年9月29日結束的三個月


第一部分——財務信息
		頁面

項目1。	基本報表	1

	2024年9月29日和2024年6月30日的簡明綜合資產負債表	1

	2024年9月29日及2023年10月1日三個月內的簡明綜合收支表	2

	2024年9月29日及2023年10月1日三個月內的簡明綜合股東權益表	3

	2024年9月29日及2023年10月1日三個月內的簡明綜合現金流量表	4

	附註至簡明合併財務報表	5

項目2。	分銷計劃	13

項目3。	有關市場風險的定量和定性披露	21

項目4。	控制和程序	22

第二部分-其他信息

項目1。	法律訴訟	23

項目1A。	風險因素	24

項目5。	其他信息	24

項目6。	展示資料	24

	簽名	25

部分 I—財務金融信息

項目1。基本報表

壓縮的合併資產負債表蘭斯表格

(未經審計)

(以千爲單位，除每股及每價外)


	2024年9月29日			2024年6月30日
資產
現金及現金等價物	$	13,703		$	26,805
應收款項，淨額		77,885			79,165
存貨		145,350			131,181
應收所得稅款項		1,355			164
其他流動資產		12,923			11,618
總流動資產		251,216			248,933
物業、廠房和設備，淨值		189,744			193,723
營業租賃資產		8,411			8,245
遞延所得稅		5,156			5,392
其他非流動資產		12,452			12,951
總資產	$	466,979		$	469,244

負債及股東權益
應付賬款	$	41,250		$	43,622
應付所得稅		1,510			754
當前經營租賃負債		2,434			2,251
長期債務的流動部分		12,153			12,277
其他流動負債		18,923			17,662
總流動負債		76,270			76,566
長期債務		119,324			117,793
非流動經營租賃負債		6,092			6,124
遞延所得稅		1,869			1,869
其他長期負債		3,715			3,507
總負債		207,270			205,859

承諾和 contingencies

普通股，每股面值爲 $0.0001；0.10每股面值(500,000,000授權股份； 18,257,103及 18,251,545 截至2024年9月29日和2024年6月30日，已發行和流通的股份分別爲		1,826			1,825
超過面值的資本		71,419			70,952
留存收益		251,765			259,397
累計其他綜合損失		(65,301	)		(68,789	)
股東權益合計		259,709			263,385
負債和股東權益總計	$	466,979		$	469,244

請參閱簡明綜合財務報表附註。

簡明綜合陳述經營和綜合損失的聲明

(未經審計)

（以千爲單位，每股金額除外）


	在結束的三個月中
	2024年9月29日			2023 年 10 月 1 日
淨銷售額	$	147,372		$	138,844
銷售成本		137,914			139,419
毛利（虧損）		9,458			(575	)
銷售、一般和管理費用		11,842			11,609
壞賬準備金（福利）		312			(209	)
其他運營費用，淨額		520			54
營業損失		(3,216	)		(12,029	)
利息收入		(257	)		(581	)
利息支出		2,507			2,485
未合併關聯公司的收益權益		(11	)		(200	)
所得稅前虧損		(5,455	)		(13,733	)
所得稅準備金（福利）		2,177			(463	)
淨虧損	$	(7,632	)	$	(13,270	)

每股普通股淨虧損：
基本	$	(0.42	)	$	(0.73	)
稀釋	$	(0.42	)	$	(0.73	)

綜合虧損：


	在結束的三個月中
	2024年9月29日			2023 年 10 月 1 日
淨虧損	$	(7,632	)	$	(13,270	)
其他綜合收益（虧損）：
外幣折算調整		3,488			(5,540	)
其他綜合收益（虧損），淨額		3,488			(5,540	)
綜合虧損	$	(4,144	)	$	(18,810	)

請參閱簡明綜合財務報表附註。

綜合收益的壓縮綜合財務狀況表股東權益變動表

(未經審計)

（以千計）


	股票		普通股		超過面值的資本		留存收益			累計其他綜合虧損			股東權益總額
截至 2024 年 6 月 30 日的餘額		18,252	$	1,825	$	70,952	$	259,397		$	(68,789	)	$	263,385
行使的期權		5		1		32		—			—			33
基於股票的薪酬		—		—		435		—			—			435
扣除稅款的其他綜合收益		—		—		—		—			3,488			3,488
淨虧損		—		—		—		(7,632	)		—			(7,632	)
2024 年 9 月 29 日的餘額		18,257	$	1,826	$	71,419	$	251,765		$	(65,301	)	$	259,709


	股份		普通股		超額股本			留存收益			累計其他全面收益虧損			股東權益合計
2023年7月2日的結餘		18,081	$	1,808	$	68,901		$	306,792		$	(53,891	)	$	323,610
期權行使		3		—		21			—			—			21
權益單位的轉換		1		—		—			—			—			—
基於股票的補償		—		—		209			—			—			209
在淨股份結算交易中滿足稅收扣減義務的普通股被扣除		—		—		(1	)		—			—			(1	)
其他綜合損失，稅後淨額		—		—		—			—			(5,540	)		(5,540	)
淨虧損		—		—		—			(13,270	)		—			(13,270	)
2023年10月1日的餘額		18,085	$	1,808	$	69,130		$	293,522		$	(59,431	)	$	305,029

請參閱簡明綜合財務報表附註。

綜合損益及業績表的壓縮合並報表現金流量表

（未經審計）

(以千爲單位)


	截至三個月結束
	2024年9月29日			2023年10月1日
期初現金及現金等價物餘額	$	26,805		$	46,960
經營活動：
淨虧損		(7,632	)		(13,270	)
調整以調節淨虧損爲經營活動提供的現金（使用）
合營企業及聯營企業的權益持有份額收益		(11	)		(200	)
折舊和攤銷費用		6,547			7,026
非現金補償支出		435			212
遞延所得稅		344			(679	)
其他，淨數		80			(62	)
資產和負債變動：
應收款項，淨額		2,221			4,111
存貨		(12,851	)		12,608
其他流動資產		(1,091	)		2,126
所得稅		(462	)		(1,148	)
應付賬款及其他流動負債		(460	)		(3,432	)
其他，淨數		46			(173	)
經營活動產生的淨現金流量		(12,834	)		7,119

投資活動：
資本支出		(2,018	)		(2,937	)
其他，淨數		—			457
投資活動產生的淨現金流出		(2,018	)		(2,480	)

籌資活動：
來自ABL循環貸款的收益		47,500			31,100
對ABL循環貸款的支付		(43,000	)		(27,500	)
對ABL定期貸款的支付		(2,300	)		(2,300	)
融資租賃義務支付		(808	)		(713	)
其他，淨數		(162	)		17
融資活動提供的淨現金		1,230			604

匯率變動對現金及現金等價物的影響		520			(688	)
現金及現金等價物淨增加額（減少額）		(13,102	)		4,555
期末現金及現金等價物	$	13,703		$	51,515

請參閱簡明綜合財務報表附註。

Unifi公司。

簡明說明合併基本報表

(未經審計)

1. 背景

儀化宇輝公司是一家成立於1969年的紐約公司（連同其子公司統稱爲「儀化宇輝」、「公司」、「我們」、「我們的」），是一個跨國公司，製造和銷售創新的回收和合成產品，這些產品主要由聚酯和尼龍製成，主要銷售給其他紗線製造商和編織廠（儀化宇輝的「直接客戶」），這些客戶生產用於服裝、襪子、家居用品、汽車、工業、醫療和其他終端市場（儀化宇輝的「間接客戶」的紗線和/或面料）。我們有時將這些間接客戶稱爲「品牌合作伙伴」。聚酯產品包括部分取向紗線（「POY」）和紋理、溶液染色和包裝染色、扭曲、梁式和拉伸纏繞紗線，每種產品都有原料或回收的品種。回收解決方案由預消費和後消費廢料製成，包括塑料瓶片（「片」）、聚酯聚合物顆粒（「顆粒」）和短纖****龍產品包括原料或回收的紋理、溶液染色和氨綸覆蓋的紗線。

儀化宇輝保持着紡織行業最全面的產品系列之一，包括一系列專業、增值和商品解決方案，主要地理市場包括北美、中美、南美、亞洲和歐洲。儀化宇輝在四個國家直接進行製造業務，並參與在美國（「美國」）的合資企業。

2. 呈現基礎；簡要說明

附帶的簡要合併基本報表未經審計，並且已按照美國公認會計原則（「GAAP」）爲中期財務信息編制。根據SEC對錶格10-Q的指示，以下說明已被簡化，因此不包含與年度基本報表相關的所有必要披露。應參考儀化宇輝截至2024年6月30日的年度審計合併基本報表及其年報表格10-K中的相關說明（「2024年表格10-K」）。

本報告中包含的財務信息由儀化宇輝編制，未經審計。在管理層看來，所有調整（包括認爲必要的正常、經常性調整）已被包含，以公正表述中期結果。然而，中期結果不一定代表對全年結果的預期。按照GAAP的規定編制基本報表要求管理層使用影響報告金額和某些基本報表披露的估計和假設。實際結果可能與這些估計有所不同。

除每股金額外，所有金額均以千（000s）爲單位呈現，除非另有說明。

儀化宇輝及其主要國內運營子公司以及其在薩爾瓦多的子公司的財務季度截至2024年9月29日結束。儀化宇輝其餘重要運營子公司的財務季度截至2024年9月30日結束。在儀化宇輝的財務季度結束與其全資子公司的財務季度結束之間沒有發生重大交易或事件。截止2024年9月29日和2023年10月1日的三個月期間均爲13周。

3. 最近的會計準則

已發佈和即將採納

2023年12月，財務會計準則委員會（「FASB」）發佈了會計準則更新（「ASU」）2023-09，所得稅（主題740）：改進所得稅披露。該標準要求上市的業務實體在每年披露稅率調節表的特定類別，併爲滿足數量門限的調節項目提供其他信息（如果這些調節項目的影響相當於或大於將稅前收入（或損失）與適用的法定所得稅率相乘所得金額的5%）。它還要求所有實體每年披露按聯邦、州和外國稅種分解的所支付的所得稅（扣除退款），以及按所支付的所得稅（扣除退款）在個別司法管轄區分解的金額，當所支付的所得稅（扣除退款）相當於或大於所支付的總所得稅（扣除退款）的5%時。最後，該標準取消了要求所有實體披露未識別稅務負債餘額在未來12個月內合理可能變動範圍的性質和估計，或聲明無法估算範圍的要求。該標準對公司自2026年1月1日開始的年度適用。可以提前採納該標準。該標準應以前瞻性基礎應用。允許追溯適用。公司目前正在評估該標準可能對其財務報表產生的影響。. 儀化宇輝2023-09號公告修改了有關所得稅披露的規定，要求實體披露：(i)稅率協調中的具體類別，(ii)繼續運營前所得稅費用或利潤（在國內和國外之間分開），以及(iii)繼續運營的所得稅費用或利益（按聯邦、州和國外分開）。該ASU還要求實體披露其對國際、聯邦、州和地方管轄區的所得稅支付情況，以及其他變更。該ASU自儀化宇輝的2026財年生效，允許提前採納，並應在前瞻性的基礎上應用，但允許追溯性應用。目前，儀化宇輝正在評估該標準對公司披露的影響，但預計該標準不會對其合併財務狀況、經營業績或現金流量產生實質性影響。

2023年11月，FASB發佈了ASU 2023-07，該更新通過增強重要板塊支出的披露，改進了可報告板塊的披露要求。這個更新中的修正應在合併財務報表中呈現的所有之前期間中進行追溯，適用於2023年12月31日後開始的財政年度和2024年12月31日後的財政年度內的中期期間。早期實施是允許的。公司目前正在評估該指引對其簡明合併財務報表的潛在影響。分部報告（主題 280）：報告服務部門（主題 280）變更披露方式，通過升級對意義重大的分部費用的披露來改進分部報告披露要求。該準則適用於 2023 年 12 月 15 日之後的財年和 2024 年 12 月 15 日之後的財年間隔期。該準則必須適用於財務報表中呈現的所有期間的追溯。該公司目前正在評估該標準對合並財務報表的影響。. 儀化宇輝2023-07號公告通過增加有關可報告部門的年度和中期披露要求，主要是通過加強對重要部門費用的披露。該ASU對年度報告的有效性是本財年，並在2026財年第一季度對中期報告有效，允許提前採納。儀化宇輝尚未採納該標準。目前，儀化宇輝正在評估該標準對公司披露的影響，但預計該標準不會對其合併財務狀況、經營業績或現金流量產生實質性影響。

根據儀化宇輝自2024年10-k表提交以來發布的ASU的審查，沒有其他新發布或新適用的會計準則對儀化宇輝的合併基本報表產生或預期產生重大影響。

Unifi公司。

簡明合併財務報表註解（續）

(未經審計)

4. 營業收入

以下表格按客戶類型分類和REPREVE進行了淨銷售額細分。® 纖維銷售：

第三方製造商


	截至三個月結束
	2024年9月29日		2023年10月1日
第三方製造商	$	146,219	$	137,620
服務		1,153		1,224
淨銷售額	$	147,372	$	138,844


	截至三個月結束
	2024年9月29日		2023年10月1日
REPREVE®光纖	$	44,742	$	42,461
所有其他產品和服務		102,630		96,383
淨銷售額	$	147,372	$	138,844

第三方製造商的營業收入主要通過銷售給直接客戶而產生。這些銷售代表着UNIFI履行與相關營收合同所要求的績效義務。UNIFI的每個報告板塊均來自對第三方製造商的銷售。

服務收入

服務收入主要通過提供服務，通過履行有關書面協議管理的紡織品託管製造或運輸服務而產生。這些託管製造和運輸服務代表了UNIFI履行與相關營收合同所要求的績效義務。

REPREVE® 纖維

再生REPREVE® 纖維代表儀化宇輝在我們的回收平台上的纖維產品，無論是否添加了技術。

可變的考慮因素

對於所有的變量考量，如適用，儀化宇輝使用預期價值法估計金額，該方法考慮了歷史經驗、當前合同要求、特定已知市場事件以及預測客戶購買和支付方式。總的來說，這些儲備體現了儀化宇輝根據合同條款認爲客戶有權獲得的考量金額的最佳估計。變量考量對儀化宇輝的所有報表期間的基本報表影響不大。

5. 長期債務

債務方面的義務2024年6月28日和2023年12月29日分別如下:

下表和敘述呈現了儀化宇輝的債務義務的詳細信息。在本附註中未另行定義的資本化術語應具有其在2022年10月28日的《第二次修訂和再確認信貸協議》（"2022年信貸協議"）中賦予它們的含義。


		加權平均
	已安排	截至目前的利率			截至的本金金額
	到期日	2024年9月29日			2024年9月29日			2024年6月30日
ABL循環貸款	2027年10月		7.4	%	$	24,200		$	19,700
ABL定期貸款	2027年10月		8.1	%		98,900			101,200
融資租賃義務	(1)		5.2	%		8,591			9,399
總債務						131,691			130,299
當前的ABL定期貸款						(9,200	)		(9,200	)
融資租賃負債的流動部分						(2,953	)		(3,077	)
尚未攤銷的債務發行費用						(214	)		(229	)
所有長期債務					$	119,324		$	117,793

(1)

融資租賃義務的到期日區間從馬克h 2025 to 2028年9月.

ABL信貸協議及修訂

2024年9月5日，儀化宇輝公司及其某些子公司與一組貸款方簽署了第二次修訂和重述信貸協議的第一次修訂（簡稱「第一次修訂」）。第一次修訂主要 (i) 允許出售位於北卡羅來納州雅德金維爾的一項公司擁有的房地產業資產（包括一個工業倉庫建築和土地產權），將淨收益用於減少未償還的ABL循環借款餘額，以替代對ABL定期貸款的強制性預付款; (ii) 將最大循環借款金額從 $115,000 至$80,000; (iii) 修改觸發水平的定義，定義爲在任何確定日期的較大者 (a) $16,500 和 (b) 10% 在確定日期的（i）最大循環信貸金額加上（ii）當日ABL定期貸款的未償本金總額的總和；（iv）增加該區間的

Unifi公司。

簡明合併財務報表註解（續）

(未經審計)

適用於儀化宇輝基於SOFR的貸款利差調整至新的區間 1.50% 到 2.00%和基於基準利率的貸款利差調整至新的區間 0.50% 到 1.00%，這些適用利差利率的新範圍立即生效，並持續至公司實現固定費用覆蓋比率達到 1.05 to 1.00 或更好；(v)對於一筆貸款重新設置，設立額外要求以獲得貸款人批准；和(vi)修改信貸協議的某些條款和條件，包括但不限於，搖擺貸款，信用證子限額，以及與ABL設施正常流程抵押品估值相關的成本。

後續事件

2024年10月25日，儀化宇輝與富國銀行國家協會簽署了一項新的信貸協議，金額爲$25,000 循環信貸額度（"2024年信貸額度"）。2024年信貸額度的到期日期爲2022年信貸協議的" 2027年10月28日終止或再融資的較早日期爲(i) 和(ii)。2024年信貸額度被視爲儀化宇輝的無擔保融資，但由董事會成員之一肯尼思·G·蘭岡抵押的特定資產提供擔保。2024年信貸額度的借款利率爲SOFR加 0.90%。2024年信貸額度不包含除已生效的2022年信貸協議中已有的金融契約以外的額外金融契約，並且需支付一個 0.25%的月度未使用信用額度費用。截至報告日期，尚未對2024年信貸額度借款。

6. 所得稅

所得稅的準備金（收益）和實際稅率如下所示：


	截至三個月結束
	2024年9月29日			2023年10月1日
所得稅準備（收益）	$	2,177		$	(463	)
有效稅率		(39.9	)%		3.4	%

所得稅費用

儀化宇輝截至2024年9月29日和2023年10月1日的三個月的所得稅準備（收益）是通過將估計的年度有效稅率應用於年初至今的稅前賬面收入，並對期間發生的離散項目進行調整來計算的。

截至2024年9月29日和2023年10月1日的三個月的有效稅率與美國聯邦法定稅率有所不同，主要是由於美國產生的損失，儀化宇輝預計不會實現未來的稅收收益。

在截至2023年10月1日的三個月內，國稅局（「IRS」）對2014至2019財政年度的審計已結束，淨退款爲$1,248。來自審計調整對以前期間的影響微不足道。

未確認稅務費用

儀化宇輝定期評估已完成和正在進行的檢查的結果，以確保其所得稅準備充足。某些仍待審查的申報表利用了先前稅年產生的遞延稅屬性，包括淨營業虧損，這些在審查時可能會被修訂。

在截至2023年10月1日的期間結束時，儀化宇輝調整了2014至2019財政年度有效結算的不確定稅務立場。釋放淨化的不確定稅務負債的影響微不足道。

7. 股東權益

2018年10月31日，儀化宇輝宣佈公司的董事會批准了一項股票回購計劃（「2018年SRP」），該計劃授權儀化宇輝最多收購$50,000 的普通股。股票回購授權是自願的，沒有到期日。 No 在2023和2024財年已經回購了38,859 $仍可用於回購。

8. 股份-based補償

在截至2023年10月31日，儀化宇輝的股東批准了對Unifi，Inc.第二次修訂並重訂的2013激勵補償計劃（「2020計劃」）的第一修正案（「第一修正案」）。2020計劃確定了未來授予的獎勵所用的可供發行的股份數目（「股份準備」）。 850。第一修正案增加了剩餘的股份準備 1,100。不會在先前計劃下授予額外獎勵；但是，在相應先前計劃下獲得的獎勵仍受該計劃條款約束。

以下表格提供了截至2024年9月29日的相關信息，關於經修訂的2020計劃下用於未來發行的證券數量情況：


在2020計劃下獲得授權的	850
加：自第一修正案開始的股份儲備增加	1,100
加：獎勵到期、沒生效或其他未行使	220
減：授予員工的獎勵	(1,106	)
減：授予非僱員董事的獎勵	(204	)
2020計劃下可發行	860

Unifi, Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

9. Earnings Per Share

The components of the calculation of earnings per share (“EPS”) are as follows:


	For the Three Months Ended
	September 29, 2024			October 1, 2023
Net loss	$	(7,632	)	$	(13,270	)
Basic weighted average shares		18,255			18,084
Net potential common share equivalents		—			—
Diluted weighted average shares		18,255			18,084
Excluded from the calculation of common share equivalents:
Anti-dilutive common share equivalents		478			590
Excluded from the calculation of diluted shares:
Unvested stock options that vest upon achievement of certain market conditions		333			333

The calculation of EPS is based on the weighted average number of Unifi, Inc.’s common shares outstanding for the applicable period. The calculation of diluted EPS presents the effect of all potential dilutive common shares that were outstanding during the respective period, unless the effect of doing so is anti-dilutive.

10. Commitments and Contingencies

Collective Bargaining Agreements

While employees of UNIFI’s Brazilian operations are unionized, none of the labor force employed by UNIFI’s domestic or other foreign subsidiaries is currently covered by a collective bargaining agreement.

11. Related Party Transactions

Related party balances and transactions are not material to the condensed consolidated financial statements and, accordingly, are not presented separately from other financial statement captions.

There were no related party receivables as of September 29, 2024 and June 30, 2024.

Related party payables for Salem Leasing Corporation consisted of the following:


	September 29, 2024		June 30, 2024
Accounts payable	$	403	$	464
Operating lease obligations		251		301
Finance lease obligations		2,043		2,374
Total related party payables	$	2,697	$	3,139

The following were the Company’s significant related party transactions:


		For the Three Months Ended
Affiliated Entity	Transaction Type	September 29, 2024		October 1, 2023
Salem Leasing Corporation	Payments for transportation equipment costs and finance lease debt service	$	1,161	$	1,209

Unifi, Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

12. Business Segment Information

UNIFI defines operating segments as components of the organization for which discrete financial information is available and operating results are evaluated on a regular basis by UNIFI’s chief executive officer, who is the chief operating decision maker (the “CODM”), in order to assess performance and allocate resources. Characteristics of UNIFI which were relied upon in making the determination of reportable segments include the nature of the products sold, the internal organizational structure, the trade policies in the geographic regions in which UNIFI operates, and the information that is regularly reviewed by the CODM for the purpose of assessing performance and allocating resources.

UNIFI's three reportable segments are organized as follows:

•

The operations within the Americas Segment exhibit similar long-term economic characteristics and primarily sell into an economic trading zone covered by the United States-Mexico-Canada Agreement and the Dominican Republic-Central America Free Trade Agreement to similar customers utilizing similar methods of distribution. These operations derive revenues primarily from manufacturing synthetic and recycled textile products with sales primarily to yarn manufacturers, knitters, and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets principally in North and Central America. The Americas Segment consists of sales and manufacturing operations in the U.S., El Salvador, and Colombia.

•

The Brazil Segment primarily manufactures and sells polyester-based products to knitters and weavers that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets principally in Brazil. The Brazil Segment includes a manufacturing location and sales offices in Brazil.

•

The operations within the Asia Segment exhibit similar long-term economic characteristics and sell to similar customers utilizing similar methods of distribution primarily in Asia and Europe. The Asia Segment primarily sources synthetic and recycled textile products from third-party suppliers and sells to yarn manufacturers, knitters, and weavers that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets principally in Asia and Europe. The Asia Segment includes sales offices in China, Turkey, and Hong Kong.

UNIFI evaluates the operating performance of its segments based upon Segment (Loss) Profit, which represents segment gross (loss) profit plus segment depreciation expense. This measurement of segment profit or loss best aligns segment reporting with the current assessments and evaluations performed by, and information provided to, the CODM.

The accounting policies for the segments are consistent with UNIFI’s accounting policies. Intersegment sales are omitted from segment disclosures, as they are (i) insignificant to UNIFI’s segments and eliminated from consolidated reporting and (ii) excluded from segment evaluations performed by the CODM.

Selected financial information is presented below:


	For the Three Months Ended September 29, 2024
	Americas			Brazil		Asia		Total
Net sales	$	86,283		$	34,310	$	26,779	$	147,372
Cost of sales		87,661			26,373		23,880		137,914
Gross (loss) profit		(1,378	)		7,937		2,899		9,458
Segment depreciation expense		5,410			741		17		6,168
Segment Profit	$	4,032		$	8,678	$	2,916	$	15,626


	For the Three Months Ended October 1, 2023
	Americas			Brazil		Asia		Total
Net sales	$	81,573		$	29,909	$	27,362	$	138,844
Cost of sales		88,953			27,742		22,724		139,419
Gross (loss) profit		(7,380	)		2,167		4,638		(575	)
Segment depreciation expense		5,497			840		—		6,337
Segment (Loss) Profit	$	(1,883	)	$	3,007	$	4,638	$	5,762

The reconciliations of segment gross profit (loss) to consolidated loss before income taxes are as follows:


	For the Three Months Ended
	September 29, 2024			October 1, 2023
Americas	$	(1,378	)	$	(7,380	)
Brazil		7,937			2,167
Asia		2,899			4,638
Segment gross profit (loss)		9,458			(575	)
Selling, general and administrative expenses		11,842			11,609
Provision (benefit) for bad debts		312			(209	)
Other operating expense, net		520			54
Operating loss		(3,216	)		(12,029	)
Interest income		(257	)		(581	)
Interest expense		2,507			2,485
Equity in earnings of unconsolidated affiliates		(11	)		(200	)
Loss before income taxes	$	(5,455	)	$	(13,733	)

There have been no material changes in segment assets during fiscal 2025.

Unifi, Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

13. Investments in Unconsolidated Affiliates

Included within Other non-current assets are UNIFI’s investments in unconsolidated affiliates: U.N.F. Industries, Ltd. (“UNF”) and UNF America LLC (“UNFA”).

U.N.F. Industries, Ltd.

In December 2023, UNIFI dissolved its interest in UNF under an agreement whereby UNIFI agreed to pay the former joint venture partner $2,750 and recorded it as an associated contract termination cost within Restructuring costs on the Condensed Consolidated Statements of Operations and Comprehensive Loss. UNIFI made a payment to the former joint venture partner of $1,200 in the second quarter of fiscal 2024 and the remaining $1,550 was paid in the third quarter of fiscal 2024. Accordingly, the balance sheet information presented below as of September 29, 2024 does not include any amounts related to UNF.

UNF America LLC

Raw material and production services for UNFA are provided by Nilit America Inc. under separate supply and services agreements. UNFA’s fiscal year end is December 31, and it is a limited liability company located in Ridgeway, Virginia. UNFA is treated as a partnership for its income tax reporting.

In conjunction with the formation of UNFA, UNIFI entered into a supply agreement with UNF and UNFA whereby UNIFI agreed to purchase all of its first quality nylon POY requirements for texturing (subject to certain exceptions) from either UNF or UNFA. The supply agreement has no stated minimum purchase quantities and pricing is typically negotiated every six months, based on market rates. As of September 29, 2024, UNIFI’s open purchase orders related to this supply agreement, all with UNFA, were $1,465.

UNIFI’s raw material purchases under this supply agreement consisted of the following:


	For the Three Months Ended
	September 29, 2024		October 1, 2023
UNFA	$	3,689	$	3,126
UNF		—		—
Total	$	3,689	$	3,126

As of September 29, 2024 and June 30, 2024, UNIFI had accounts payable due to UNFA of $1,403 and $2,197.

UNIFI has determined that UNF was, and UNFA is, a variable interest entity and has also determined that UNIFI has been the primary beneficiary of these entities, based on the terms of the supply agreement. As a result, these entities should be consolidated with UNIFI’s financial results. As (i) UNIFI purchases substantially all of the output and all intercompany sales would be eliminated in consolidation, (ii) the entity balance sheets constitute 5% or less of UNIFI’s current assets and total assets, and (iii) such balances are not expected to comprise a larger portion in the future, UNIFI has not included the accounts of UNF and UNFA in its consolidated financial statements and instead is accounting for these entities as equity investments. The financial results of UNF and UNFA are included in UNIFI’s consolidated financial statements with a one-month lag, using the equity method of accounting and with intercompany profits eliminated in accordance with UNIFI’s accounting policy. Other than the supply agreement discussed above, UNIFI does not provide any other commitments or guarantees related to UNFA. As of September 29, 2024 and June 30, 2024, UNIFI’s investment in UNFA was $1,599 and $1,603, respectively.

Condensed balance sheet and income statement information for UNIFI’s unconsolidated affiliates (including reciprocal balances) are presented in the tables below.


	September 29, 2024		June 30, 2024
Current assets	$	5,954	$	5,758
Non-current assets		453		458
Current liabilities		3,208		3,009
Non-current liabilities		—		—
Shareholders’ equity and capital accounts		3,199		3,207

UNIFI’s portion of undistributed earnings		1,540		1,544


	For the Three Months Ended
	September 29, 2024			October 1, 2023
Net sales	$	4,210		$	4,741
Gross profit		515			638
(Loss) income from operations		(8	)		196
Net (loss) income		(8	)		165
Depreciation and amortization		7			14

Distribution received		—			—

Unifi, Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

14. Supplemental Cash Flow Information

Cash payments for interest and taxes consist of the following:


	For the Three Months Ended
	September 29, 2024		October 1, 2023
Interest, net of capitalized interest of $38 and $62, respectively	$	2,368	$	2,443
Income tax payments, net		2,558		1,633

Cash payments for taxes shown above consist primarily of income and withholding tax payments made by UNIFI in both U.S. and foreign jurisdictions, net of refunds.

Non-Cash Investing and Financing Activities

As of September 29, 2024 and June 30, 2024, $772 and $879, respectively, were included in accounts payable for unpaid capital expenditures. As of October 1, 2023 and July 2, 2023, $1,084 and $1,137, respectively, were included in accounts payable for unpaid capital expenditures.

During the three months ended September 29, 2024 and October 1, 2023, UNIFI recorded non-cash activity relating to finance leases of $0 and $1,633, respectively.

Unifi, Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

15. Other Financial Data

Select balance sheet information is presented in the following table.


	September 29, 2024			June 30, 2024
Receivables, net:
Customer receivables	$	79,089		$	80,050
Allowance for uncollectible accounts		(3,036	)		(2,713	)
Reserves for quality claims		(835	)		(745	)
Net customer receivables		75,218			76,592
Banker's acceptance notes		1,632			1,326
Other receivables		1,035			1,247
Total receivables, net	$	77,885		$	79,165

Inventories:
Raw materials	$	57,696		$	49,391
Supplies		12,206			12,160
Work in process		8,696			8,994
Finished goods		70,122			64,449
Gross inventories		148,720			134,994
Net realizable value adjustment		(3,370	)		(3,813	)
Total inventories	$	145,350		$	131,181

Other current assets:
Assets held for sale (1)	$	3,798		$	3,781
Vendor deposits		3,579			2,633
Prepaid expenses and other		2,554			2,133
Value-added taxes receivable		2,454			2,510
Contract assets		538			561
Total other current assets	$	12,923		$	11,618

Property, plant and equipment, net:
Land	$	1,904		$	1,897
Land improvements		16,409			16,409
Buildings and improvements		162,840			162,414
Assets under finance leases		18,030			18,030
Machinery and equipment		653,378			650,901
Computers, software and office equipment		25,744			25,464
Transportation equipment		10,755			10,710
Construction in progress		3,350			3,319
Gross property, plant and equipment		892,410			889,144
Less: accumulated depreciation		(694,857	)		(688,086	)
Less: accumulated amortization – finance leases		(7,809	)		(7,335	)
Total property, plant and equipment, net	$	189,744		$	193,723

Other non-current assets:
Recovery of taxes	$	5,794		$	5,543
Grantor trust		2,147			2,942
Investments in unconsolidated affiliates		1,599			1,603
Intangible assets, net		655			682
Other		2,257			2,181
Total other non-current assets	$	12,452		$	12,951

Other current liabilities:
Payroll and fringe benefits	$	8,978		$	7,140
Utilities		2,612			2,861
Incentive compensation		1,798			1,450
Deferred revenue		1,500			1,504
Property taxes, interest and other		4,035			4,707
Total other current liabilities	$	18,923		$	17,662

Other long-term liabilities:
Nonqualified deferred compensation plan obligation	$	2,175		$	2,008
Uncertain tax positions		1,161			1,109
Other		379			390
Total other long-term liabilities	$	3,715		$	3,507

(1) Assets held for sale as of September 29, 2024 relates to a warehouse located in Yadkinville, North Carolina. On October 30, 2024, this property was sold for $8,100 resulting in a net gain of approximately $4,300.

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 September 29, 2024, while a reference to the “prior period” refers to the three-month period ended October 1, 2023. Such references may be accompanied by certain phrases for added clarity. The current period and the prior period each consisted of 13 weeks.

Our discussions in this Item 2 focus on our results during, or as of, the three months ended September 29, 2024 and October 1, 2023, 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
	September 29, 2024		October 1, 2023
BRL to USD		5.55		4.89
RMB to USD		7.17		7.25

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: (i) the impact of inflation on consumer spending and (ii) elevated interest rates for consumers and customers, including the impact on the carrying costs of customer inventories. UNIFI will continue to monitor these and other aspects of the current environment and work closely with stakeholders to ensure business continuity and liquidity.

While we recognize the disruption to global markets and supply chains caused by the conflicts in Ukraine and the Middle East, we have not been directly 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 lowered 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.

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.

Review of Results of Operations

Three Months Ended September 29, 2024 Compared to Three Months Ended October 1, 2023

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
	September 29, 2024						October 1, 2023
				% of Net Sales						% of Net Sales			% Change
Net sales	$	147,372			100.0		$	138,844			100.0			6.1
Cost of sales		137,914			93.6			139,419			100.4			(1.1	)
Gross profit (loss)		9,458			6.4			(575	)		(0.4	)	nm
SG&A		11,842			8.0			11,609			8.4			2.0
Provision (benefit) for bad debts		312			0.2			(209	)		(0.2	)	nm
Other operating expense, net		520			0.4			54			—		nm
Operating loss		(3,216	)		(2.2	)		(12,029	)		(8.6	)		(73.3	)
Interest expense, net		2,250			1.5			1,904			1.4			18.2
Equity in earnings of unconsolidated affiliates		(11	)		—			(200	)		(0.1	)		(94.5	)
Loss before income taxes		(5,455	)		(3.7	)		(13,733	)		(9.9	)		(60.3	)
Provision (benefit) for income taxes		2,177			1.5			(463	)		(0.3	)	nm
Net loss	$	(7,632	)		(5.2	)	$	(13,270	)		(9.6	)		(42.5	)

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 Three Months Ended
	September 29, 2024			October 1, 2023
Net loss	$	(7,632	)	$	(13,270	)
Interest expense, net		2,250			1,904
Provision (benefit) for income taxes		2,177			(463	)
Depreciation and amortization expense (1)		6,504			6,988
EBITDA		3,299			(4,841	)

Other adjustments (2)		—			—
Adjusted EBITDA	$	3,299		$	(4,841	)

(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)

For the periods presented, there were no other adjustments necessary to reconcile Net loss to Adjusted EBITDA.

Adjusted Net Loss and Adjusted EPS (Non-GAAP Financial Measures)

For the current period and the prior period, there were no adjustments necessary to reconcile Net loss to Adjusted Net Loss or Adjusted EPS.

Net Sales

Consolidated net sales for the current period increased by $8,528, or 6.1%, while consolidated sales volumes increased 7.7%, compared to the prior period. Net sales in the current period were higher primarily due to improved sales volumes in each of the reportable segments, along with favorable pricing 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 1.6% which partially offset the volume increase. The decrease in sales prices was primarily attributable to sales mix and lower average selling prices in Asia and the Americas 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 30%, or $44,742, of consolidated net sales, compared to 31%, or $42,461, for the prior period.

Gross Profit (Loss)

Gross profit for the current period increased to $9,458 from a gross loss of $(575) in the prior period. Gross profit increased primarily due to (i) increased sales volumes, (ii) variable cost saving initiatives, (iii) improved productivity, and (iv) higher conversion margins. 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 due to depressed demand.

•

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) improved selling prices, (ii) higher sales volumes from market share gains, and (iii) lower material input costs due to lower costed inventories at the beginning of the quarter.

•

For the Asia Segment, gross profit decreased primarily due to lower conversion margins 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.

Provision (Benefit) for Bad Debts

The current period and prior period provision reflect no material activity.

Other Operating Expense, Net

The current period and the prior period include foreign currency transaction losses (gains) of $489 and $(33), respectively, with no other meaningful activity.

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 Earnings of Unconsolidated Affiliates

There was no material activity for the current period or the prior period.

Income Taxes

Provision (benefit) for income taxes and the effective tax rate were as follows:


	For the Three Months Ended
	September 29, 2024			October 1, 2023
Provision (benefit) for income taxes	$	2,177		$	(463	)
Effective tax rate		(39.9	)%		3.4	%

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 is primarily attributable to a decrease in the valuation allowance on deferred tax asset balances adjusted by the IRS audit of tax years 2014 through 2019, which was concluded during the prior period. The impact of this on comparative results is heightened by a smaller loss before income taxes in the current period.

Net Loss

The improvement in net loss was primarily attributable to increased gross profit, partially offset by foreign currency transaction losses, higher interest expense, net, and higher income tax expense.

Adjusted EBITDA (Non-GAAP Financial Measure)

Adjusted EBITDA increased primarily attributable to increased gross profit, partially offset by foreign currency transaction losses.

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 Profit (Loss), 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
	September 29, 2024						October 1, 2023
				% of Net Sales						% of Net Sales			% Change
Net sales	$	86,283			100.0		$	81,573			100.0			5.8
Cost of sales		87,661			101.6			88,953			109.0			(1.5	)
Gross loss		(1,378	)		(1.6	)		(7,380	)		(9.0	)		(81.3	)
Depreciation expense		5,410		6.3				5,497			6.7			(1.6	)
Segment Profit (Loss)	$	4,032			4.7		$	(1,883	)		(2.3	)	nm

Segment net sales as a percentage of consolidated amounts		58.5	%					58.8	%
Segment Profit (Loss) as a percentage of consolidated amounts		25.8	%					(32.7	)%

The change in net sales for the Americas Segment was as follows:


Net sales for the prior period	$	81,573
Increase in sales volumes		6,692
Change in average selling price and sales mix		(1,982	)
Net sales for the current period	$	86,283

The increase in net sales for the Americas Segment from the prior period to the current 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 period	$	(1,883	)
Change in underlying unit margins and sales mix		6,069
Change in sales volumes		(154	)
Segment Profit for the current period	$	4,032

The increase in Segment Profit for the Americas Segment from the prior period to the current period was primarily attributable to higher conversion margins primarily due to improved variable cost management efforts. Segment Profit for the Americas Segment continues to be negatively impacted by a lower proportion of fiber sales volumes. 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 period amounts for the Brazil Segment, were as follows:


	For the Three Months Ended
	September 29, 2024					October 1, 2023
				% of Net Sales					% of Net Sales		% Change
Net sales	$	34,310			100.0	$	29,909			100.0		14.7
Cost of sales		26,373			76.9		27,742			92.7		(4.9	)
Gross profit		7,937			23.1		2,167			7.3	nm
Depreciation expense		741			2.2		840			2.8		(11.8	)
Segment Profit	$	8,678			25.3	$	3,007			10.1		188.6

Segment net sales as a percentage of consolidated amounts		23.3	%				21.5	%
Segment Profit as a percentage of consolidated amounts		55.5	%				52.2	%

The change in net sales for the Brazil Segment was as follows:


Net sales for the prior period	$	29,909
Increase in average selling price and change in sales mix		4,952
Increase in sales volumes		3,007
Unfavorable foreign currency translation effects		(3,558	)
Net sales for the current period	$	34,310

The increase in net sales for the Brazil Segment from the prior period to the current 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 period	$	3,007
Increase in underlying unit margins		5,722
Increase in sales volumes		303
Unfavorable foreign currency translation effects		(354	)
Segment Profit for the current period	$	8,678

The increase in Segment Profit for the Brazil Segment from the prior period to the current 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 period amounts for the Asia Segment, were as follows:


	For the Three Months Ended
	September 29, 2024					October 1, 2023
				% of Net Sales					% of Net Sales		% Change
Net sales	$	26,779			100.0	$	27,362			100.0		(2.1	)
Cost of sales		23,880			89.2		22,724			83.0		5.1
Gross profit		2,899			10.8		4,638			17.0		(37.5	)
Depreciation expense		17			0.1		—			—	nm
Segment Profit	$	2,916			10.9	$	4,638			17.0		(37.1	)

Segment net sales as a percentage of consolidated amounts		18.2	%				19.7	%
Segment Profit as a percentage of consolidated amounts		18.7	%				80.5	%

The change in net sales for the Asia Segment was as follows:


Net sales for the prior period	$	27,362
Change in average selling price and sales mix		(1,704	)
Increase in sales volumes		819
Favorable foreign currency translation effects		302
Net sales for the current period	$	26,779

The decrease in net sales for the Asia Segment from the prior period to the current period was primarily attributable to changes in sales mix, partially offset by (a) an improvement in sales volumes compared to the prior period despite continued weak global demand, particularly for apparel and (b) 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 period	$	4,638
Change in underlying unit margins and sales mix		(1,920	)
Increase in sales volumes		139
Favorable foreign currency translation effects		59
Segment Profit for the current period	$	2,916

The decrease in Segment Profit for the Asia Segment from the prior period to the current period was attributable to a decline in gross margin rate associated with a change in sales mix of REPREVE products, partially offset by (a) the increase in sales volumes and (b) the favorable foreign currency translation effects.

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.

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 2024 Facility. For the current three-month period, cash used by operations was $12,834 and, at September 29, 2024, availability under the ABL Revolver was $38,645.

As of September 29, 2024, all of UNIFI’s $131,691 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 September 29, 2024 for domestic operations compared to foreign operations:


	Domestic		Foreign		Total
Cash and cash equivalents	$	479	$	13,224	$	13,703
Borrowings available under financing arrangements		38,645		—		38,645
Liquidity	$	39,124	$	13,224	$	52,348

Working capital	$	73,177	$	101,769	$	174,946
Total debt obligations	$	131,691	$	—	$	131,691

Borrowings available under financing arrangements are generally collateralized by receivables and inventory owned in the U.S. and generally constrained by the fixed charge coverage ratio and trigger level prescribed in the 2022 Credit Agreement. Accordingly, not all of such funds are immediately available for use in UNIFI's operations. 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.

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 facility as of September 29, 2024:

•

UNIFI was in compliance with all applicable financial covenants in the 2022 Credit Agreement;

•

excess availability before the Trigger Level (as defined in the 2022 Credit Agreement) under the ABL Revolver was $20,755;

•

the Trigger Level was $17,890; and

•

$0 of standby letters of credit were outstanding.

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. As of the report date, no amounts had been borrowed against the 2024 Facility.

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 and 2024 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 facility 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:


	September 29, 2024		June 30, 2024
Long-term debt	$	119,324	$	117,793
Current portion of long-term debt		12,153		12,277
Unamortized debt issuance costs		214		229
Debt principal		131,691		130,299
Less: cash and cash equivalents		13,703		26,805
Net Debt	$	117,988	$	103,494

The increase in Net Debt primarily reflects the increase in inventories and capital expenditures during the current period.

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:


	September 29, 2024			June 30, 2024
Cash and cash equivalents	$	13,703		$	26,805
Receivables, net		77,885			79,165
Inventories		145,350			131,181
Income taxes receivable		1,355			164
Other current assets		12,923			11,618
Accounts payable		(41,250	)		(43,622	)
Other current liabilities		(18,923	)		(17,662	)
Income taxes payable		(1,510	)		(754	)
Current operating lease liabilities		(2,434	)		(2,251	)
Current portion of long-term debt		(12,153	)		(12,277	)
Working capital	$	174,946		$	172,367

Less: Cash and cash equivalents		(13,703	)		(26,805	)
Less: Income taxes receivable		(1,355	)		(164	)
Less: Income taxes payable		1,510			754
Less: Current operating lease liabilities		2,434			2,251
Less: Current portion of long-term debt		12,153			12,277
Adjusted Working Capital	$	175,985		$	160,680

Adjusted Working Capital increased $15,305 from June 30, 2024 to September 29, 2024.

The increase in Adjusted Working Capital was primarily attributable to an increase in inventories, partially impacted by insignificant changes in other balance sheet accounts. The increase in inventories was primarily a result of weaker-than-expected sales levels in the U.S. and Asia, causing a decrease in inventory turnover.

Operating Cash Flows

The significant components of net cash (used) provided by operating activities are summarized below.


	For the Three Months Ended
	September 29, 2024			October 1, 2023
Net loss	$	(7,632	)	$	(13,270	)
Equity in earnings of unconsolidated affiliates		(11	)		(200	)
Depreciation and amortization expense		6,547			7,026
Non-cash compensation expense		435			212
Deferred income taxes		344			(679	)
Subtotal		(317	)		(6,911	)

Receivables, net		2,221			4,111
Inventories		(12,851	)		12,608
Accounts payable and other current liabilities		(460	)		(3,432	)
Other changes		(1,427	)		743
Net cash (used) provided by operating activities	$	(12,834	)	$	7,119

The decrease in operating cash flows was due to increased working capital primarily from an increase in inventories (as described above), partially offset by an improvement in earnings in the current period compared to the prior period.

Investing Cash Flows

Investing activities primarily include $2,018 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 for 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.

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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

UNIFI is exposed to market risks associated with changes in interest rates, fluctuations in foreign currency exchange rates, and raw material and commodity costs, which may adversely affect its financial position, results of operations, or cash flows. UNIFI does not enter into derivative financial instruments for trading purposes, nor is it a party to any leveraged financial instruments.

Interest Rate Risk

UNIFI is exposed to interest rate risk through its borrowing activities. As of September 29, 2024, UNIFI had borrowings under its ABL Facility that totaled $123,100. UNIFI’s sensitivity analysis indicates that a 50-basis point interest rate increase as of September 29, 2024 would result in an increase in annual interest expense of approximately $700.

Foreign Currency Exchange Rate Risk

A complete discussion of foreign currency exchange rate risk is included in the 2024 Form 10-K and is supplemented by the following disclosures.

As of September 29, 2024, UNIFI had no outstanding foreign currency forward contracts. As of September 29, 2024, foreign currency exchange rate risk positions included the following:


	Approximate Amount or Percentage
Percentage of total consolidated assets held by UNIFI's subsidiaries outside the U.S. whose functional currency is not the USD		29.5	%

Cash and cash equivalents held outside the U.S.:
Denominated in USD	$	9,794
Denominated in RMB		732
Denominated in BRL		1,768
Denominated in other foreign currencies		220
Total cash and cash equivalents held outside the U.S.	$	12,514
Percentage of total cash and cash equivalents held outside the U.S.		91.3	%

Cash and cash equivalents held inside the U.S. in USD by foreign subsidiaries	$	710

Raw Material and Commodity Cost Risks

A complete discussion of raw material and commodity cost risks is included in the 2024 Form 10-K.

Other Risks

UNIFI is also exposed to geopolitical risk, including changing laws and regulations governing international trade, such as quotas, tariffs, and tax laws. The degree of impact and the frequency of these events cannot be predicted.

Item 4. Controls and Procedures

As of September 29, 2024, an evaluation of the effectiveness of UNIFI’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) was performed under the supervision and with the participation of UNIFI’s management, including the principal executive officer and the principal financial officer. Based on that evaluation, UNIFI’s principal executive officer and principal financial officer concluded that UNIFI’s disclosure controls and procedures are effective to ensure that information required to be disclosed by UNIFI in its reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms, and that information required to be disclosed by UNIFI in the reports UNIFI files or submits under the Exchange Act is accumulated and communicated to UNIFI’s management, including its principal executive officer and its principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in UNIFI’s internal control over financial reporting during the three months ended September 29, 2024 that have materially affected, or are reasonably likely to materially affect, UNIFI’s internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

We are from time to time a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business. With respect to all such lawsuits, claims, and proceedings, we record reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. We do not believe that any of these proceedings, individually or in the aggregate, would be expected to have a material adverse effect on our results of operations, financial position, or cash flows. We maintain liability insurance for certain risks that is subject to certain self-insurance limits.

Item 1A. Risk Factors

There have been no material changes in UNIFI’s risk factors from those included in “Item 1A. Risk Factors” in the 2024 Form 10-K.

Item 5. Other Information

Insider Trading Arrangements

During the quarter ended September 29, 2024, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (as such terms are defined in Item 408 of Regulation S-K).

Item 6. Exhibits


Exhibit No.		Description

3.1		Restated Certificate of Incorporation of Unifi, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed October 31, 2016 (File No. 001-10542)).

3.2		Amended and Restated By-laws of Unifi, Inc., as of October 26, 2016 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed October 31, 2016 (File No. 001-10542)).

3.3		Declaration of Amendment to the Amended and Restated By-laws of Unifi, Inc. effective April 30, 2019 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed May 1, 2019 (File No. 001-10542)).

4.1		First Amendment to Second Amended and Restated Credit Agreement (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed September 6, 2024 (File No. 001-10542)).

4.2		Credit Agreement, dated as of October 25, 2024, by and among Unifi Manufacturing, Inc. and certain of its domestic affiliates (including, without limitation, Unifi, Inc.), as borrowers, Wells Fargo Bank, National Association, as administrative agent, sole lead arranger and sole book runner, and the lenders party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed October 30, 2024 (File No. 001-10542)).

10.1+		Form of Restricted Stock Unit Agreement for Employees for use in connection with the Unifi, Inc. Second Amended and Restated 2013 Incentive Compensation Plan (File No. 001-10542).

10.2+		Form of Cash-Settled Restricted Stock Unit Agreement for Employees for use in connection with the Unifi, Inc. Second Amended and Restated 2013 Incentive Compensation Plan (File No. 001-10542).

10.3+		Form of Performance Share Unit Agreement for Employees for use in connection with the Unifi, Inc. Second Amended and Restated 2013 Incentive Compensation Plan (File No. 001-10542).

10.4+		Form of Cash-Settled Performance Share Unit Agreement for Employees for use in connection with the Unifi, Inc. Second Amended and Restated 2013 Incentive Compensation Plan (File No. 001-10542).

31.1+		Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2+		Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32++		Certifications of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

+ Filed herewith.

++ 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 thereunto duly authorized.


	UNIFI, INC.
	(Registrant)

Date: November 6, 2024	By:	/s/ ANDREW J. EAKER
		Andrew J. Eaker
		Executive Vice President & Chief Financial Officer Treasurer
		(Principal Financial Officer and Principal Accounting Officer)