Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Oct. 01, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | UNIFI, INC. | |
Entity Central Index Key | 0000100726 | |
Entity File Number | 1-10542 | |
Entity Tax Identification Number | 11-2165495 | |
Trading Symbol | UFI | |
Entity Incorporation, State or Country Code | NY | |
Current Fiscal Year End Date | --07-02 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 01, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Security Exchange Name | NYSE | |
Entity Address, Address Line One | 7201 West Friendly Avenue | |
Entity Address, City or Town | Greensboro | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27410 | |
City Area Code | 336 | |
Local Phone Number | 294-4410 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding (in shares) | 18,116,605 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 01, 2023 | Jul. 02, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 51,515 | $ 46,960 |
Receivables, net | 78,706 | 83,725 |
Inventories | 136,092 | 150,810 |
Income taxes receivable | 1,592 | 238 |
Other current assets | 9,419 | 12,327 |
Total current assets | 277,324 | 294,060 |
Property, plant and equipment, net | 212,634 | 218,521 |
Operating lease assets | 7,576 | 7,791 |
Deferred income taxes | 4,094 | 3,939 |
Other non-current assets | 14,633 | 14,508 |
Total assets | 516,261 | 538,819 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 37,064 | 44,455 |
Income taxes payable | 996 | 789 |
Current operating lease liabilities | 1,885 | 1,813 |
Current portion of long-term debt | 12,323 | 12,006 |
Other current liabilities | 16,443 | 12,932 |
Total current liabilities | 68,711 | 71,995 |
Long-term debt | 128,890 | 128,604 |
Non-current operating lease liabilities | 5,842 | 6,146 |
Deferred income taxes | 2,999 | 3,364 |
Other long-term liabilities | 4,790 | 5,100 |
Total liabilities | 211,232 | 215,209 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized; 18,084,522 and 18,081,538 shares issued and outstanding as of October 1, 2023 and July 2, 2023, respectively) | 1,808 | 1,808 |
Capital in excess of par value | 69,130 | 68,901 |
Retained earnings | 293,522 | 306,792 |
Accumulated other comprehensive loss | (59,431) | (53,891) |
Total shareholders’ equity | 305,029 | 323,610 |
Total liabilities and shareholders’ equity | $ 516,261 | $ 538,819 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 01, 2023 | Jul. 02, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 18,084,522 | 18,081,538 |
Common stock, shares outstanding (in shares) | 18,084,522 | 18,081,538 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations And Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 138,844 | $ 179,519 |
Cost of sales | 139,419 | 172,956 |
Gross (loss) profit | (575) | 6,563 |
Selling, general and administrative expenses | 11,609 | 11,773 |
(Benefit) provision for bad debts | (209) | 174 |
Other operating expense (income), net | 54 | (689) |
Operating loss | (12,029) | (4,695) |
Interest income | (581) | (547) |
Interest expense | 2,485 | 1,247 |
Equity in earnings of unconsolidated affiliates | (200) | (295) |
Loss before income taxes | (13,733) | (5,100) |
(Benefit) provision for income taxes | (463) | 2,734 |
Net loss | $ (13,270) | $ (7,834) |
Net loss per common share: | ||
Basic | $ (0.73) | $ (0.44) |
Diluted | $ (0.73) | $ (0.44) |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (13,270) | $ (7,834) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (5,540) | (5,908) |
Other comprehensive loss, net | (5,540) | (5,908) |
Comprehensive loss | $ (18,810) | $ (13,742) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Jul. 03, 2022 | $ 361,449 | $ 1,798 | $ 66,120 | $ 353,136 | $ (59,605) |
Balance (in shares) at Jul. 03, 2022 | 17,979,000 | ||||
Options exercised | 17 | 17 | |||
Options exercised (in shares) | 3,000 | ||||
Conversion of equity units | $ 3 | (3) | |||
Conversion of equity units (in shares) | 31,000 | ||||
Stock-based compensation | 591 | 591 | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (16) | (16) | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (1,000) | ||||
Other comprehensive loss, net of tax | (5,908) | (5,908) | |||
Net loss | (7,834) | (7,834) | |||
Balance at Oct. 02, 2022 | 348,299 | $ 1,801 | 66,709 | 345,302 | (65,513) |
Balance (in shares) at Oct. 02, 2022 | 18,012,000 | ||||
Balance at Jul. 02, 2023 | $ 323,610 | $ 1,808 | 68,901 | 306,792 | (53,891) |
Balance (in shares) at Jul. 02, 2023 | 18,081,538 | 18,081,000 | |||
Options exercised | $ 21 | 21 | |||
Options exercised (in shares) | 3,000 | ||||
Conversion of equity units (in shares) | 1,000 | ||||
Stock-based compensation | 209 | 209 | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (1) | (1) | |||
Other comprehensive loss, net of tax | (5,540) | (5,540) | |||
Net loss | (13,270) | (13,270) | |||
Balance at Oct. 01, 2023 | $ 305,029 | $ 1,808 | $ 69,130 | $ 293,522 | $ (59,431) |
Balance (in shares) at Oct. 01, 2023 | 18,084,522 | 18,085,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of period | $ 46,960 | $ 53,290 |
Operating activities: | ||
Net loss | (13,270) | (7,834) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ||
Equity in earnings of unconsolidated affiliates | (200) | (295) |
Depreciation and amortization expense | 7,026 | 6,740 |
Non-cash compensation expense | 212 | 633 |
Deferred income taxes | (679) | (373) |
Other, net | (62) | 324 |
Changes in assets and liabilities: | ||
Receivables, net | 4,111 | 13,800 |
Inventories | 12,608 | 6,475 |
Other current assets | 2,126 | 4,026 |
Income taxes | (1,148) | (789) |
Accounts payable and other current liabilities | (3,432) | (28,615) |
Other, net | (173) | 16 |
Net cash provided (used) by operating activities | 7,119 | (5,892) |
Investing activities: | ||
Capital expenditures | (2,937) | (11,198) |
Other, net | 457 | (222) |
Net cash used by investing activities | (2,480) | (11,420) |
Financing activities: | ||
Proceeds from ABL Revolver | 31,100 | 65,500 |
Payments on ABL Revolver | (27,500) | (52,300) |
Payments on ABL Term Loan | (2,300) | (2,500) |
Proceeds from construction financing | 2,449 | |
Payments on finance lease obligations | (713) | (436) |
Other, net | 17 | |
Net cash provided by financing activities | 604 | 12,713 |
Effect of exchange rate changes on cash and cash equivalents | (688) | (1,491) |
Net increase (decrease) in cash and cash equivalents | 4,555 | (6,090) |
Cash and cash equivalents at end of period | $ 51,515 | $ 47,200 |
Background
Background | 3 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | 1. Background Unifi, Inc., a New York corporation formed in 1969 (together with its subsidiaries, “UNIFI,” the “Company,” “we,” “us,” or “our”), is a multinational company that manufactures and sells innovative recycled and synthetic products, made from polyester and nylon, primarily to other yarn manufacturers and knitters and weavers (UNIFI’s “direct customers”) that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, medical, and other end-use markets (UNIFI’s “indirect customers”). We sometimes refer to these indirect customers as “brand partners.” Polyester products include partially oriented yarn (“POY”) and textured, solution and package dyed, twisted, beamed, and draw wound yarns, and each is available in virgin or recycled varieties. Recycled solutions, made from both pre-consumer and post-consumer waste, include plastic bottle flake (“Flake”), polyester polymer beads (“Chip”), and staple fiber. Nylon products include virgin or recycled textured, solution dyed, and spandex covered yarns. UNIFI maintains one of the textile industry’s most comprehensive product offerings that includes a range of specialized, value-added, and commodity solutions, with principal geographic markets in North America, Central America, South America, Asia, and Europe. UNIFI has direct manufacturing operations in four countries and participates in joint ventures with operations in Israel and the United States (the “U.S.”). |
Basis of Presentation; Condense
Basis of Presentation; Condensed Notes | 3 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation; Condensed Notes | 2. Basis of Presentation; Condensed Notes The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. As contemplated by the instructions of the SEC to Form 10-Q, the following notes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to UNIFI’s year-end audited consolidated financial statements and related notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended July 2, 2023 (the “2023 Form 10-K”). The financial information included in this report has been prepared by UNIFI, without audit. In the opinion of management, all adjustments, which consist of normal, recurring adjustments, considered necessary for a fair statement of the results for interim periods have been included. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the amounts reported and certain financial statement disclosures. Actual results may vary from these estimates. All amounts, except per share amounts, are presented in thousands (000s), except as otherwise noted. The fiscal quarter for each of Unifi, Inc., its primary domestic operating subsidiaries and its subsidiary in El Salvador ended on October 1, 2023. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarter ended on September 30, 2023. There were no significant transactions or events that occurred between Unifi, Inc.’s fiscal quarter end and such wholly owned subsidiaries’ fiscal quarter end. The three-month periods ended October 1, 2023 and October 2, 2022 both consisted of 13 weeks. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Oct. 01, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Based on UNIFI’s review of Accounting Standards Updates issued since the filing of the 2023 Form 10-K, there have been no newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on UNIFI’s consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Oct. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 4. Revenue The following tables present net sales disaggregated by (i) classification of customer type and (ii) REPREVE ® Fiber sales: Third-Party Manufacturer For the Three Months Ended October 1, 2023 October 2, 2022 Third-party manufacturer $ 137,620 $ 178,212 Service 1,224 1,307 Net sales $ 138,844 $ 179,519 For the Three Months Ended October 1, 2023 October 2, 2022 REPREVE ® Fiber $ 42,461 $ 49,179 All other products and services 96,383 130,340 Net sales $ 138,844 $ 179,519 Third-party manufacturer revenue is primarily generated through sales to direct customers. Such sales represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts. Each of UNIFI’s reportable segments derives revenue from sales to third-party manufacturers. Service Revenue Service revenue is primarily generated, as services are rendered, through fulfillment of toll manufacturing of textile products or transportation services governed by written agreements. Such toll manufacturing and transportation services represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts. REPREVE ® Fiber REPREVE ® Fiber represents UNIFI's collection of fiber products on our recycled platform, with or without added technologies. Variable Consideration For all variable consideration, where appropriate, UNIFI estimates the amount using the expected value method, which takes into consideration historical experience, current contractual requirements, specific known market events, and forecasted customer buying and payment patterns. Overall, these reserves reflect UNIFI’s best estimates of the amount of consideration to which the customer is entitled based on the terms of the contracts. Variable consideration has been immaterial to UNIFI’s financial statements for all periods presented. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Oct. 01, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 5. Long-Term Debt Debt Obligations The following table and narrative presents the detail of UNIFI’s debt obl igations. Capitalized terms not otherwise defined within this Note shall have the meanings attributed to them in the Second Amended and Restated Credit Agreement, dated as of October 28, 2022 (the "2022 Credit Agreement"). Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date October 1, 2023 October 1, 2023 July 2, 2023 ABL Revolver October 2027 7.7 % $ 21,700 $ 18,100 ABL Term Loan October 2027 6.9 % 108,100 110,400 Finance lease obligations (1) 5.0 % 11,687 10,767 Construction financing (2) 0.0 % — 1,632 Total debt 141,487 140,899 Current ABL Term Loan ( 9,200 ) ( 9,200 ) Current portion of finance lease obligations ( 3,123 ) ( 2,806 ) Unamortized debt issuance costs ( 274 ) ( 289 ) Total long-term debt $ 128,890 $ 128,604 (1) Scheduled maturity dates for finance lease obligations range from Marc h 2025 to September 2028 . (2) Refer to the discussion below under “ Construction Financing ” for further information. ABL Facility and Amendments There have been no changes to the 2022 Credit Agreement following the filing of the 2023 Form 10-K. Construction Financing In connection with the construction financing arrangement, UNIFI has borrowed a total of $ 9,755 and transitioned $ 9,755 of completed asset costs to finance lease obligations as of October 1, 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The (benefit) provision for income taxes and effective tax rate were as follows: For the Three Months Ended October 1, 2023 October 2, 2022 (Benefit) provision for income taxes $ ( 463 ) $ 2,734 Effective tax rate 3.4 % ( 53.6 )% Income Tax Expense UNIFI’s (benefit) provision for income taxes for the three months ended October 1, 2023 and October 2, 2022 was calculated by applying the estimated annual effective tax rate to year-to-date pre-tax book income and adjusting for discrete items that occurred during the period. The effective tax rate for the three months ended October 1, 2023 varied from the U.S. federal statutory rate primarily due to the U.S.-generated losses for which UNIFI does not expect to realize a future tax benefit. During the three months ended October 1, 2023, the Internal Revenue Service (the “IRS”) audit of fiscal years 2014 through 2019 was concluded with a net refund of $ 1,248 which is yet to be received. The impact from the audit adjustments to the prior periods was insignificant. The effective tax rate for the three months ended October 2, 2022 was lower than the U.S. federal statutory rate primarily due to an increase in the valuation allowance for deferred tax assets and current U.S. tax on global intangible low-tax income (“GILTI”). Unrecognized Tax Benefits UNIFI regularly assesses the outcomes of both completed and ongoing examinations to ensure that its provision for income taxes is sufficient. Certain returns that remain open to examination have utilized carryforward tax attributes generated in prior tax years, including net operating losses, which could potentially be revised upon examination. Following the conclusion of the IRS audit, UNIFI adjusted the uncertain tax positions for fiscal years 2014 through 2019 that were effectively settled. The impact from releasing the netted uncertain tax position liabilities was insignificant. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Oct. 01, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity On October 31, 2018, UNIFI announced that the Company's Board of Directors (the “Board”) approved a share repurchase program (the “2018 SRP”) under which UNIFI is authorized to acquire up to $ 50,000 of its common stock. The share repurchase authorization is discretionary and has no expiration date. No shares have been repurchased in fiscal 2023 and 2024 and $ 38,859 remains available for repurchase. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Oct. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation On October 31, 2023 , UNIFI’s shareholders approved a First Amendment (the "First Amendment") to the Unifi, Inc. Second Amended and Restated 2013 Incentive Compensation Plan (the “2020 Plan”). The 2020 Plan set the initial number of shares available for future issuance ("share reserve") pursuant to awards granted under the 2020 Plan to 850 . The First Amendment increased the remaining share reserve by 1,100 . No additional awards can be granted under prior plans; however, awards outstanding under a respective prior plan remain subject to that plan’s provisions. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 3 Months Ended |
Oct. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 9. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities Financial Instruments For the three months ended October 1, 2023 and October 2, 2022, there were no significant changes to UNIFI’s assets and liabilities measured at fair value, and there were no transfers into or out of the levels of the fair value hierarchy. UNIFI believes that there have been no significant changes to its credit risk profile or the interest rates available to UNIFI for debt issuances with similar terms and average maturities, and UNIFI estimates that the fair values of its debt obligations approximate the carrying amounts. Other financial instruments include cash and cash equivalents, receivables, accounts payable, and accrued expenses. The financial statement carrying amounts of these items approximate the fair values due to their short-term nature. Grantor Trust The UNIFI, Inc. Deferred Compensation Plan (the “DCP”), established in fiscal 2022, is an unfunded non-qualified deferred compensation plan in which certain key emplo yees are eligible to participate. The fair values of the investment assets held by the grantor trust established in connection with the DCP were approximately $ 2,463 and $ 2,496 as of October 1, 2023 and July 2, 2023, respectively, and are classified as trading securities within Other non-current assets. The grantor trust assets have readily-available market values and are classified as Level 1 trading securities in the fair value hierarchy. Trading gains and losses associated with these investments are recorded to Other operating (income) expense, net. The associated DCP liability is recorded within Other long-term liabilities, and any increase or decrease in the liability is also recorded in Other operating expense (income), net. During the three months ended October 1, 2023 and October 2, 2022, we rec orded net losses on investments held by the trust of $ 33 and $ 49 , respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Oct. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended October 1, 2023 October 2, 2022 Net loss $ ( 13,270 ) $ ( 7,834 ) Basic weighted average shares 18,084 18,001 Net potential common share equivalents — — Diluted weighted average shares 18,084 18,001 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 590 618 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Oct. 01, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. 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 October 1, 2023 or July 2, 2023. Related party payables for Salem Leasing Corporation consisted of the following: October 1, 2023 July 2, 2023 Accounts payable $ 516 $ 457 Operating lease obligations 453 502 Finance lease obligations 3,356 3,677 Total related party payables $ 4,325 $ 4,636 The following were the Company’s significant related party transactions: For the Three Months Ended Affiliated Entity Transaction Type October 1, 2023 October 2, 2022 Salem Leasing Corporation Payments for transportation equipment costs and finance lease debt service $ 1,209 $ 1,199 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Oct. 01, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | 13. 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 principal 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 USMCA and CAFTA-DR 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. The Asia Segment includes sales offices in China, Turkey, and Hong Kong. UNIFI evaluates the operating performance of its segments based upon Segment Profit, which represents segment gross profit (loss) 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 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 For the Three Months Ended October 2, 2022 Americas Brazil Asia Total Net sales $ 107,644 $ 38,879 $ 32,996 $ 179,519 Cost of sales 112,513 32,092 28,351 172,956 Gross (loss) profit ( 4,869 ) 6,787 4,645 6,563 Segment depreciation expense 5,480 470 — 5,950 Segment Profit $ 611 $ 7,257 $ 4,645 $ 12,513 The reconciliations of segment gross (loss) profit to consolidated loss before income taxes are as follows: For the Three Months Ended October 1, 2023 October 2, 2022 Americas $ ( 7,380 ) $ ( 4,869 ) Brazil 2,167 6,787 Asia 4,638 4,645 Segment gross (loss) profit ( 575 ) 6,563 Selling, general and administrative expenses 11,609 11,773 (Benefit) provision for bad debts ( 209 ) 174 Other operating expense (income), net 54 ( 689 ) Operating loss ( 12,029 ) ( 4,695 ) Interest income ( 581 ) ( 547 ) Interest expense 2,485 1,247 Equity in earnings of unconsolidated affiliates ( 200 ) ( 295 ) Loss before income taxes $ ( 13,733 ) $ ( 5,100 ) There have been no material changes in segment assets during fiscal 2024. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Oct. 01, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | 14. 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”) (collectively “UNFs”). U.N.F. Industries, Ltd. Raw material and production services for UNF are provided by Nilit Ltd. under separate supply and services agreements. UNF’s fiscal year end is December 31, and it is a registered Israeli private company located in Migdal Ha-Emek, Israel. 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 October 1, 2023, UNIFI’s open purchase orders related to this supply agreement w ere $ 2,265 . UNIFI’s raw material purchases under this supply agreement consisted of the following: For the Three Months Ended October 1, 2023 October 2, 2022 UNFA $ 3,126 $ 7,401 UNF — 37 Total $ 3,126 $ 7,438 As of October 1, 2023 and July 2, 2023, UNIFI had combined accounts payable due to UNF and UNFA of $ 2,238 and $ 3,440 , respectively. UNIFI has determined that UNF and UNFA are variable interest entities and has also determined that UNIFI is 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 from the two entities and all intercompany sales would be eliminated in consolidation, (ii) the two entities’ 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. As of October 1, 2023, UNIFI’s combined investments in UNF and UNFA were $ 3,213 . 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 accountin g 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 either UNF or UNFA. Condensed balance sheet and income statement information for UNIFI’s unconsolidated affiliates (including reciprocal balances) are presented in the tables below. October 1, 2023 July 2, 2023 Current assets $ 9,288 $ 10,608 Non-current assets 480 494 Current liabilities 5,823 7,304 Non-current liabilities — — Shareholders’ equity and capital accounts 3,945 3,798 UNIFI’s portion of undistributed earnings 3,154 2,938 For the Three Months Ended October 1, 2023 October 2, 2022 Net sales $ 4,741 $ 8,811 Gross profit 638 489 Income from operations 196 25 Net income 165 15 Depreciation and amortization 14 28 Distributions received — — |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Oct. 01, 2023 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 15. Supplemental Cash Flow Information Cash payments for interest and taxes consist of the following: For the Three Months Ended October 1, 2023 October 2, 2022 Interest, net of capitalized interest of $ 62 and $ 87 , respectively $ 2,443 $ 767 Income tax payments, net 1,633 2,928 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 October 1, 2023 and Jul y 2, 2023, $ 1,084 and $ 1,137 , r espectively, were included in accounts payable for unpaid capital expenditures. As of October 2, 2022 and July 3, 2022, $ 1,449 and $ 2,456 , respectively, were included in accounts payable for unpaid capital expenditures. During the three months ended October 1, 2023 and October 2, 2022, UNIFI recorded non-cash activity relating to finance leases of $ 1,633 and $ 729 respectively. |
Other Financial Data
Other Financial Data | 3 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Financial Data | 16. Other Financial Data Select balance sheet information is presented in the following table. October 1, 2023 July 2, 2023 Receivables, net: Customer receivables $ 73,147 $ 79,174 Allowance for uncollectible accounts ( 1,132 ) ( 1,362 ) Reserves for quality claims ( 663 ) ( 682 ) Net customer receivables 71,352 77,130 Banker's acceptance notes 6,608 5,870 Other receivables 746 725 Total receivables, net $ 78,706 $ 83,725 Inventories: Raw materials $ 54,538 $ 59,983 Supplies 11,705 11,787 Work in process 7,945 6,633 Finished goods 68,672 78,032 Gross inventories 142,860 156,435 Net realizable value adjustment ( 6,768 ) ( 5,625 ) Total inventories $ 136,092 $ 150,810 Other current assets: Prepaid expenses and other $ 2,592 $ 2,584 Vendor deposits 2,585 3,863 Value-added taxes receivable 2,574 3,398 Recovery of non-income taxes, net 1,467 1,933 Contract assets 201 549 Total other current assets $ 9,419 $ 12,327 Property, plant and equipment, net: Land $ 2,496 $ 2,512 Land improvements 16,445 16,443 Buildings and improvements 167,643 167,589 Assets under finance leases 18,030 16,397 Machinery and equipment 659,027 656,431 Computers, software and office equipment 25,255 26,654 Transportation equipment 10,646 10,710 Construction in progress 2,266 10,003 Gross property, plant and equipment 901,808 906,739 Less: accumulated depreciation ( 683,263 ) ( 682,768 ) Less: accumulated amortization – finance leases ( 5,911 ) ( 5,450 ) Total property, plant and equipment, net $ 212,634 $ 218,521 Other non-current assets: Recovery of taxes $ 5,808 $ 5,957 Investments in unconsolidated affiliates 3,213 2,997 Grantor trust 2,463 2,496 Intangible assets, net 973 1,210 Other 2,176 1,848 Total other non-current assets $ 14,633 $ 14,508 Other current liabilities: Payroll and fringe benefits $ 8,541 $ 6,981 Utilities 2,065 1,634 Deferred revenue 1,346 1,441 Incentive compensation 1,183 298 Property taxes and other 3,308 2,578 Total other current liabilities $ 16,443 $ 12,932 Other long-term liabilities: Nonqualified deferred compensation plan obligation $ 2,469 $ 2,659 Uncertain tax positions 1,871 1,973 Other 450 468 Total other long-term liabilities $ 4,790 $ 5,100 |
Basis of Presentation; Conden_2
Basis of Presentation; Condensed Notes (Policies) | 3 Months Ended |
Oct. 01, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Period | The fiscal quarter for each of Unifi, Inc., its primary domestic operating subsidiaries and its subsidiary in El Salvador ended on October 1, 2023. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarter ended on September 30, 2023. There were no significant transactions or events that occurred between Unifi, Inc.’s fiscal quarter end and such wholly owned subsidiaries’ fiscal quarter end. The three-month periods ended October 1, 2023 and October 2, 2022 both consisted of 13 weeks. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenues and Product Sales for UNIFI | The following tables present net sales disaggregated by (i) classification of customer type and (ii) REPREVE ® Fiber sales: Third-Party Manufacturer For the Three Months Ended October 1, 2023 October 2, 2022 Third-party manufacturer $ 137,620 $ 178,212 Service 1,224 1,307 Net sales $ 138,844 $ 179,519 For the Three Months Ended October 1, 2023 October 2, 2022 REPREVE ® Fiber $ 42,461 $ 49,179 All other products and services 96,383 130,340 Net sales $ 138,844 $ 179,519 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Components | The following table and narrative presents the detail of UNIFI’s debt obl igations. Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date October 1, 2023 October 1, 2023 July 2, 2023 ABL Revolver October 2027 7.7 % $ 21,700 $ 18,100 ABL Term Loan October 2027 6.9 % 108,100 110,400 Finance lease obligations (1) 5.0 % 11,687 10,767 Construction financing (2) 0.0 % — 1,632 Total debt 141,487 140,899 Current ABL Term Loan ( 9,200 ) ( 9,200 ) Current portion of finance lease obligations ( 3,123 ) ( 2,806 ) Unamortized debt issuance costs ( 274 ) ( 289 ) Total long-term debt $ 128,890 $ 128,604 (1) Scheduled maturity dates for finance lease obligations range from Marc h 2025 to September 2028 . (2) Refer to the discussion below under “ Construction Financing ” for further information. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Benefit) Provision for Income Taxes and Effective Tax Rate | The (benefit) provision for income taxes and effective tax rate were as follows: For the Three Months Ended October 1, 2023 October 2, 2022 (Benefit) provision for income taxes $ ( 463 ) $ 2,734 Effective tax rate 3.4 % ( 53.6 )% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Share | The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended October 1, 2023 October 2, 2022 Net loss $ ( 13,270 ) $ ( 7,834 ) Basic weighted average shares 18,084 18,001 Net potential common share equivalents — — Diluted weighted average shares 18,084 18,001 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 590 618 Excluded from the calculation of diluted shares: Unvested stock options that vest upon achievement of certain market conditions 333 333 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Payables | Related party payables for Salem Leasing Corporation consisted of the following: October 1, 2023 July 2, 2023 Accounts payable $ 516 $ 457 Operating lease obligations 453 502 Finance lease obligations 3,356 3,677 Total related party payables $ 4,325 $ 4,636 |
Schedule of Related Party Transactions | The following were the Company’s significant related party transactions: For the Three Months Ended Affiliated Entity Transaction Type October 1, 2023 October 2, 2022 Salem Leasing Corporation Payments for transportation equipment costs and finance lease debt service $ 1,209 $ 1,199 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Americas, Brazil and Asia Segments | Selected financial information is presented below: 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 For the Three Months Ended October 2, 2022 Americas Brazil Asia Total Net sales $ 107,644 $ 38,879 $ 32,996 $ 179,519 Cost of sales 112,513 32,092 28,351 172,956 Gross (loss) profit ( 4,869 ) 6,787 4,645 6,563 Segment depreciation expense 5,480 470 — 5,950 Segment Profit $ 611 $ 7,257 $ 4,645 $ 12,513 |
Reconciliations of Segment Gross Profit to Consolidated (loss) Income Before Income Taxes | The reconciliations of segment gross (loss) profit to consolidated loss before income taxes are as follows: For the Three Months Ended October 1, 2023 October 2, 2022 Americas $ ( 7,380 ) $ ( 4,869 ) Brazil 2,167 6,787 Asia 4,638 4,645 Segment gross (loss) profit ( 575 ) 6,563 Selling, general and administrative expenses 11,609 11,773 (Benefit) provision for bad debts ( 209 ) 174 Other operating expense (income), net 54 ( 689 ) Operating loss ( 12,029 ) ( 4,695 ) Interest income ( 581 ) ( 547 ) Interest expense 2,485 1,247 Equity in earnings of unconsolidated affiliates ( 200 ) ( 295 ) Loss before income taxes $ ( 13,733 ) $ ( 5,100 ) |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Schedule of Raw Material Purchases under Supply Agreement | UNIFI’s raw material purchases under this supply agreement consisted of the following: For the Three Months Ended October 1, 2023 October 2, 2022 UNFA $ 3,126 $ 7,401 UNF — 37 Total $ 3,126 $ 7,438 |
Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates | Condensed balance sheet and income statement information for UNIFI’s unconsolidated affiliates (including reciprocal balances) are presented in the tables below. October 1, 2023 July 2, 2023 Current assets $ 9,288 $ 10,608 Non-current assets 480 494 Current liabilities 5,823 7,304 Non-current liabilities — — Shareholders’ equity and capital accounts 3,945 3,798 UNIFI’s portion of undistributed earnings 3,154 2,938 |
Income Statement Information [Member] | |
Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates | For the Three Months Ended October 1, 2023 October 2, 2022 Net sales $ 4,741 $ 8,811 Gross profit 638 489 Income from operations 196 25 Net income 165 15 Depreciation and amortization 14 28 Distributions received — — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Payments for Interest and Taxes | Cash payments for interest and taxes consist of the following: For the Three Months Ended October 1, 2023 October 2, 2022 Interest, net of capitalized interest of $ 62 and $ 87 , respectively $ 2,443 $ 767 Income tax payments, net 1,633 2,928 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 3 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet Information | Select balance sheet information is presented in the following table. October 1, 2023 July 2, 2023 Receivables, net: Customer receivables $ 73,147 $ 79,174 Allowance for uncollectible accounts ( 1,132 ) ( 1,362 ) Reserves for quality claims ( 663 ) ( 682 ) Net customer receivables 71,352 77,130 Banker's acceptance notes 6,608 5,870 Other receivables 746 725 Total receivables, net $ 78,706 $ 83,725 Inventories: Raw materials $ 54,538 $ 59,983 Supplies 11,705 11,787 Work in process 7,945 6,633 Finished goods 68,672 78,032 Gross inventories 142,860 156,435 Net realizable value adjustment ( 6,768 ) ( 5,625 ) Total inventories $ 136,092 $ 150,810 Other current assets: Prepaid expenses and other $ 2,592 $ 2,584 Vendor deposits 2,585 3,863 Value-added taxes receivable 2,574 3,398 Recovery of non-income taxes, net 1,467 1,933 Contract assets 201 549 Total other current assets $ 9,419 $ 12,327 Property, plant and equipment, net: Land $ 2,496 $ 2,512 Land improvements 16,445 16,443 Buildings and improvements 167,643 167,589 Assets under finance leases 18,030 16,397 Machinery and equipment 659,027 656,431 Computers, software and office equipment 25,255 26,654 Transportation equipment 10,646 10,710 Construction in progress 2,266 10,003 Gross property, plant and equipment 901,808 906,739 Less: accumulated depreciation ( 683,263 ) ( 682,768 ) Less: accumulated amortization – finance leases ( 5,911 ) ( 5,450 ) Total property, plant and equipment, net $ 212,634 $ 218,521 Other non-current assets: Recovery of taxes $ 5,808 $ 5,957 Investments in unconsolidated affiliates 3,213 2,997 Grantor trust 2,463 2,496 Intangible assets, net 973 1,210 Other 2,176 1,848 Total other non-current assets $ 14,633 $ 14,508 Other current liabilities: Payroll and fringe benefits $ 8,541 $ 6,981 Utilities 2,065 1,634 Deferred revenue 1,346 1,441 Incentive compensation 1,183 298 Property taxes and other 3,308 2,578 Total other current liabilities $ 16,443 $ 12,932 Other long-term liabilities: Nonqualified deferred compensation plan obligation $ 2,469 $ 2,659 Uncertain tax positions 1,871 1,973 Other 450 468 Total other long-term liabilities $ 4,790 $ 5,100 |
Background - Additional Informa
Background - Additional Information (Details) | Oct. 01, 2023 Entity |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity operates | 4 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenues and Product Sales for UNIFI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 138,844 | $ 179,519 |
Third-Party Manufacturer [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 137,620 | 178,212 |
Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1,224 | 1,307 |
REPREVE Fiber [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 42,461 | 49,179 |
All Other Products and Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 96,383 | $ 130,340 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Components (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 01, 2023 | Jul. 02, 2023 | ||
Debt Instrument [Line Items] | |||
Finance lease obligations | [1] | $ 11,687 | $ 10,767 |
Construction financing | [2] | 1,632 | |
Total debt | 141,487 | 140,899 | |
Current portion of finance lease obligations | (3,123) | (2,806) | |
Unamortized debt issuance costs | (274) | (289) | |
Total long-term debt | $ 128,890 | 128,604 | |
Finance Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average | [1] | 5% | |
Construction Financing [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average | [2] | 0% | |
ABL Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2027-10 | ||
Weighted Average | 7.70% | ||
Principal amount of revolver | $ 21,700 | 18,100 | |
ABL Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2027-10 | ||
Weighted Average | 6.90% | ||
Current ABL Term Loan | $ (9,200) | (9,200) | |
Principal amount of term loan | $ 108,100 | $ 110,400 | |
[1] Scheduled maturity dates for finance lease obligations range from Marc h 2025 to September 2028 . Refer to the discussion below under “ Construction Financing ” for further information. |
Long-Term Debt - Long-Term De_2
Long-Term Debt - Long-Term Debt Components (Details) (Parenthetical) | 3 Months Ended |
Oct. 01, 2023 | |
Debt Disclosure [Abstract] | |
Finance lease obligations, scheduled maturity start date | 2025-03 |
Finance lease obligations, scheduled maturity end date | 2028-09 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Jul. 02, 2023 |
Construction Financing [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt including transitioned amount | $ 9,755 | |
Completed asset cost transferred to finance lease obligation | 9,755 | |
A B L Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of term loan | $ 108,100 | $ 110,400 |
Income Taxes - Schedule of (Ben
Income Taxes - Schedule of (Benefit) Provision for Income Taxes and Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||
(Benefit) provision for income taxes | $ (463) | $ 2,734 |
Effective tax rate | 3.40% | (53.60%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Income Taxes [Line Items] | ||
Income taxes, net of refunds | $ 1,633 | $ 2,928 |
Internal Revenue Service [Member] | ||
Income Taxes [Line Items] | ||
Income taxes, net of refunds | $ 1,248 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 31, 2018 | |
Fiscal 2023 [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Shares repurchased | 0 | |
Fiscal 2024 [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Shares repurchased | 0 | |
2018 Share Repurchase Program [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Share Repurchase Program, Authorized Amount | $ 50,000 | |
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 38,859 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - 2020 Plan [Member] - shares shares in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Effective date | Oct. 31, 2023 | |
Subsequent Event [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares available for future issuance | 850 | |
Number of shares reserved | 1,100 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Jul. 02, 2023 | |
Fair Value Disclosures [Abstract] | |||
Fair value of the investment assets held by the grantor trust | $ 2,463,000 | $ 2,496,000 | |
Gains on investments held by the trust | (33,000) | $ (49,000) | |
Fair value assets and liabilities amount transfers into or out of the levels | $ 0 | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Earnings Per Share [Abstract] | ||
Net Loss | $ (13,270) | $ (7,834) |
Basic weighted average shares | 18,084 | 18,001 |
Diluted weighted average shares | 18,084 | 18,001 |
Excluded from the calculation of common share equivalents: | ||
Anti-dilutive common share equivalents (in shares) | 590 | 618 |
Unvested stock options that vest upon achievement of certain market conditions (in shares) | 333 | 333 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Oct. 01, 2023 | Jul. 02, 2023 |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 0 | $ 0 |
Related Party Transactions - Re
Related Party Transactions - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Jul. 02, 2023 | |
Related Party Transaction [Line Items] | |||
Finance lease obligations | [1] | $ 11,687 | $ 10,767 |
Salem Leasing Corporation | |||
Related Party Transaction [Line Items] | |||
Accounts Payable | 516 | 457 | |
Operating lease obligations | 453 | 502 | |
Finance lease obligations | 3,356 | 3,677 | |
Total related party payables | $ 4,325 | $ 4,636 | |
[1] Scheduled maturity dates for finance lease obligations range from Marc h 2025 to September 2028 . |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Salem Leasing Corporation | ||
Related Party Transaction [Line Items] | ||
Expenses with related party | $ 1,209 | $ 1,199 |
Business Segment Information -
Business Segment Information - Additional Information (Details) | 3 Months Ended |
Oct. 01, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Business Segment Information _2
Business Segment Information - Selected Financial Information for Polyester, Nylon, International and Other Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 138,844 | $ 179,519 |
Cost of sales | 139,419 | 172,956 |
Gross (loss) profit | (575) | 6,563 |
Segment depreciation expense | 6,337 | 5,950 |
Segment (Loss) Profit | 5,762 | 12,513 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 81,573 | 107,644 |
Cost of sales | 88,953 | 112,513 |
Gross (loss) profit | (7,380) | (4,869) |
Segment depreciation expense | 5,497 | 5,480 |
Segment (Loss) Profit | (1,883) | 611 |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 29,909 | 38,879 |
Cost of sales | 27,742 | 32,092 |
Gross (loss) profit | 2,167 | 6,787 |
Segment depreciation expense | 840 | 470 |
Segment (Loss) Profit | 3,007 | 7,257 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,362 | 32,996 |
Cost of sales | 22,724 | 28,351 |
Gross (loss) profit | 4,638 | 4,645 |
Segment depreciation expense | ||
Segment (Loss) Profit | $ 4,638 | $ 4,645 |
Business Segment Information _3
Business Segment Information - Reconciliations of Segment Gross Profit to Consolidated (Loss) Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | $ (575) | $ 6,563 |
Selling, general and administrative expenses | 11,609 | 11,773 |
(Benefit) provision for bad debts | (209) | 174 |
Other operating expense (income), net | 54 | (689) |
Operating (loss) income | (12,029) | (4,695) |
Interest income | (581) | (547) |
Interest expense | 2,485 | 1,247 |
Equity in earnings of unconsolidated affiliates | (200) | (295) |
(Loss) income before income taxes | (13,733) | (5,100) |
Americas [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | (7,380) | (4,869) |
Brazil [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | 2,167 | 6,787 |
Asia [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | $ 4,638 | $ 4,645 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates - Additional Information (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Jul. 02, 2023 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 3,213 | $ 2,997 |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Purchase commitment, remaining minimum amount committed | $ 2,265 | |
Percentage of current and total assets and total liabilities counted for by equity method investments | 5% | |
UNF and UNF America [Member] | Related Party [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Accounts payable | $ 2,238 | $ 3,440 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Schedule of Raw Material Purchases under Supply Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 3,126 | $ 7,401 |
UNF [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | 37 | |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 3,126 | $ 7,438 |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates - Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Jul. 02, 2023 | Oct. 02, 2022 | Jul. 03, 2022 |
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | $ 277,324 | $ 294,060 | ||
Current liabilities | 68,711 | 71,995 | ||
Shareholders’ equity and capital accounts | 305,029 | 323,610 | $ 348,299 | $ 361,449 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | 9,288 | 10,608 | ||
Non-current assets | 480 | 494 | ||
Current liabilities | 5,823 | 7,304 | ||
Shareholders’ equity and capital accounts | 3,945 | 3,798 | ||
UNIFI’s portion of undistributed earnings | $ 3,154 | $ 2,938 |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliates - Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Schedule Of Equity Method Investments [Line Items] | ||
Gross profit | $ (575) | $ 6,563 |
Net income | (13,270) | (7,834) |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | 4,741 | 8,811 |
Gross profit | 638 | 489 |
Income from operations | 196 | 25 |
Net income | 165 | 15 |
Depreciation and amortization | $ 14 | $ 28 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest, net of capitalized interest of $62 and $87, respectively | $ 2,443 | $ 767 |
Income tax payments, net | $ 1,633 | $ 2,928 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest capitalized | $ 62 | $ 87 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Capital expenditures incurred but not yet paid | $ 1,084 | $ 1,449 | $ 1,137 | $ 2,456 |
Non cash activity relating to finance leases | $ 1,633 | $ 729 |
Other Financial Data - Schedule
Other Financial Data - Schedule of Balance Sheet Information (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Jul. 02, 2023 |
Receivables, net: | ||
Customer receivables | $ 73,147 | $ 79,174 |
Allowance for uncollectible accounts | (1,132) | (1,362) |
Reserves for quality claims | (663) | (682) |
Net customer receivables | 71,352 | 77,130 |
Banker's acceptance notes | 6,608 | 5,870 |
Other receivables | 746 | 725 |
Total receivables, net | 78,706 | 83,725 |
Inventories: | ||
Raw materials | 54,538 | 59,983 |
Supplies | 11,705 | 11,787 |
Work in process | 7,945 | 6,633 |
Finished goods | 68,672 | 78,032 |
Gross inventories | 142,860 | 156,435 |
Net realizable value adjustment | (6,768) | (5,625) |
Total inventories | 136,092 | 150,810 |
Other current assets: | ||
Vendor deposits | 2,585 | 3,863 |
Value-added taxes receivable | 2,574 | 3,398 |
Prepaid expenses and other | 2,592 | 2,584 |
Recovery of non-income taxes, net | 1,467 | 1,933 |
Contract assets | 201 | 549 |
Total other current assets | 9,419 | 12,327 |
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 901,808 | 906,739 |
Less: accumulated depreciation | (683,263) | (682,768) |
Less: accumulated amortization – finance leases | (5,911) | (5,450) |
Total property, plant and equipment, net | 212,634 | 218,521 |
Other non-current assets: | ||
Recovery of taxes | 5,808 | 5,957 |
Grantor trust | 2,463 | 2,496 |
Investments in unconsolidated affiliates | 3,213 | 2,997 |
Intangible assets, net | 973 | 1,210 |
Other | 2,176 | 1,848 |
Total other non-current assets | 14,633 | 14,508 |
Other current liabilities: | ||
Payroll and fringe benefits | 8,541 | 6,981 |
Utilities | 2,065 | 1,634 |
Deferred revenue | 1,346 | 1,441 |
Incentive compensation | 1,183 | 298 |
Property taxes and other | 3,308 | 2,578 |
Total other current liabilities | 16,443 | 12,932 |
Other long-term liabilities: | ||
Nonqualified deferred compensation plan obligation | 2,469 | 2,659 |
Uncertain tax positions | 1,871 | 1,973 |
Other | 450 | 468 |
Total other long-term liabilities | 4,790 | 5,100 |
Land | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 2,496 | 2,512 |
Land Improvements | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 16,445 | 16,443 |
Building and Building Improvements | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 167,643 | 167,589 |
Assets Held Under Finance Leases | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 18,030 | 16,397 |
Machinery and Equipment | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 659,027 | 656,431 |
Computers Software And Office Equipment | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 25,255 | 26,654 |
Transportation Equipment | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 10,646 | 10,710 |
Asset under Construction | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | $ 2,266 | $ 10,003 |