UFI - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Unifi Third Quarter Fiscal Year 2021 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, A.J. Finance. of President Vice Eaker, Please go sir. ahead,

A.J. Eaker

Thank Christel, and good everyone. morning, you,

call On Executive Carey, Executive Officer; is Chairman; Al Craig the Chief today Creaturo, Eddie Officer. Financial and Ingle, Chief

are a that meaning call, are expressed, call and/or forward-looking webcast cautions at and will implied by laws. will statements and in outcomes the difficult you be based Management clicking forecasted or of involve statements projections about securities which Unifi are call current expectations, is Actual by this Management on estimates of included results that During be and certain unifi.com presentation can the may operates. statements the not be performance that management statements. predict. federal markets that These these these found link. future differ risks advises statements materially certain the conference to within what referencing guarantees in from today's

on disclosures now results. You XX-Q the may Also, are these EBITDA, debt non-GAAP call the advised regarding to please impact on working and discussed Al financial call. directed the this be filed adjusted to as and that capital Unifi's factors may adjusted adjusted will such XX-K Carey. be net certain Forms various that measures I SEC EPS, over with turn

Al Carey

provide our Eddie details. And will Creaturo, about A.J., presentation over you, comments the to want I also get And Ingle you call. performance us and with a then and Craig the third our few quarter. Thank good started turn on morning, joining everyone. for for to the who today I'll call with Unifi's Thanks overall

steady we see a had than three, stronger all pandemic. we a anticipated, the all, continued and So from quarter in solid to recovery we

the so now That's Our Brazil versus three very versus have in last March, regions sales showing year-over-year QX profit had of business trajectory. sales you we solid year performance. strong or quarter. saw and a previous North growth growth at gross look whether it American and Asia all

was performance EBITDA QX. Our very positive in

be financial us as can net so into to balance as overall that strong does really and puts continues growth in future. our move debt, Our we invest sheet the in a we position performance

still QX the us to There's furnishings, Brazil and noting. future their even that a look for bodes in market making momentum plans recycled well from for to they're from this and and Even definite growing also future, in at like year but have worth in and with sales up QX, in the commitments. market regards with uncertainty not we home that's material, those also can a for one automotive. trend also only we our This path consumers improving some and to the with customers. using for products customers the to fiscal Many in about very strong while our our If increasing footwear XXXX. there's that, we and U.S. see actually customers a you sequentially are hear that you apparel action REPREVE's finishing on for commitments way market sets taking and positive products their discussions sustainable that's I'd a tell COVID. the

by X, tags our REPREVE seen with co-branding increase we've This the quarter hang partners XX%.

Now strengthen. to we that is trends number year-to-date continuing that the so see can XX%

across year the a XX very so at climbing on For hang marketplace, brand is expect the awareness year, we the positive the of products million fiscal tags in way. our to end

improved our after place these consider fairly let for has I'm say the Eddie, the turn what thing. instable multiple a and is together and resiliency of to I management previous team, I'd at very years. over call just me driver one to team over to for the quarters The performance. XX grateful that I benefit say now become other and seeing got in starting to Unifi dividends is situation over As pay last now being a months. be their This proud of management I'm clear of working

let our CEO Ingle, turn that, me Unifi. over it to with So Eddie of

Eddie Ingle

morning, Thanks, Al, and good everyone.

Al As our business and quarter results global both initial surpassed the third our and presence mentioned, a expectations are our testament fiscal employees and our of to XXXX our strong resilience model.

allowed Asia up team business dedication XX% strong have we with want selling saw effectively performance gross strongest has availability to business to our three, members the the during the year results as case not the without business thank significant QX to margin sequentially in basis, compliance The the to employees, recovery. to segments year-over-year segment momentum overview safety and and led the we and a Brazil strong of Their across place we navigate performance. on I QX past economic been X% during for region measures in our prices On would year-over-year our possible levels. well a segments. COVID numbers, basis Brazil low customers. ago I'm to in an to revenue very we and while demonstrated in third provided put We solid quarter Brazil's continuing improvement due a happy and were all quarter. have point once improved from their many again contributions recovery quarter, continued especially of exceeded This report and our that strength, and had quarter us to margin and another of maintain our over all the and operate slide revenues product to geographies. a generated pre-pandemic performance XXX

trend QX year-over-year, segment's return volumes growth. up during a meaningful to to also strength demonstrated continued experiencing as Our Asia

material albeit February, Asia weather on we and fortunate with our we exhibited was costs step-up quarter. with in raw Our period improve selected implemented. in the Many adjustments operational, expansion. supply lag the people some closely the March a during but in and team and margin occurs with our We XXXX costs that continued most do product been petrochemical supply now our experienced selling customers successfully higher rising meaningful cost have XXXX price occur appropriate regards that were in business, material has quarter costs surcharges and input inherent ensure working manage conditions are allowing materials a seen we've gross pressure those With Texas expect raw QX March U.S. to for process. to the our that freight. mix, in the to volatile margin quite the into from to years. few In chain remained a businesses prices, Combination during harsh such chain,

acquisitions addressing momentum completed to back responsiveness again, the strong our headwinds. in position in consolidated Stepping in and we remains our and these business fiscal cost XXXX. confident remain do two we However, the business, the supported financial underlying easily bolt-on our

to Year concern typical you am Fiber. virgin Brazil's In And Switching predominantly of pleased and record seasonality see I the globe. remains versus am quarter. QX QX progress of Chinese remains, to of slide in the that year I addition, this was New to comprising we've strong. the the than by platform. not can made is Fiber as ago on -- performance, and Sequentially, proud a across due in for XX% lower four, net this trend REPREVE REPREVE-branded the our XX% outperformance improving momentum the the sheet with balance report QX our sales

to traditional highlights bottle partnerships launched at with new brand exciting several to have iconic accelerate. touch which contained co-branding fishing Walmart, green on their and tag. carry continued have today, hang shirts the which our starting Realtree We REPREVE REPREVE

of a quarter. and programs the Williams, women's Venus In goods launched a These into REPREVE. REPREVE co-brands continue with In new several business tennis win an brand goods to addition, extension this by represent home EleVen, sporting collection that category, categories. launched we broader coat launches

in of the Renew, benefits REPREVE carpets, we eco-friendly and place promote sustainability PVC. various of media Turkish coverings partners perspective, a From in using from Rollease launched and, had to a Acmeda retailer U.S., Marina's few working REPREVE. a launched them And customer, REPREVE's producer new line of Our carpeting, the a for marketing carpeting window remarkable society. and made additionally of for with line course, Ambient months a of

For formerly newly Open by the facility a uniforms made with plastic the in you Management. is Aramark WM caught during feature created Phoenix of REPREVE WM, U.S. Waste tournament, used recycled the February that have as example, staff our customers, REPREVE supplier television may and our known major rebranded bottles in ads announced that their washing via and bottle bailed from be Golf outfitting will Cintas. they

surprise many well-known REPREVE telling for will were We Pepsi's additional working and additional will of partner from on It plastics. through economy circular from our show, believe their bookstores. addition which apparel Unifi these consumer campaigns, social Pac-XX that into resulted and university can Unifi's the how to recycling. rebounding that strategic our Bowl to advertising market. to stories with followers. Pepsi's the we university LX March, t-shirts take manufacturing in that on the air broader a national ESPN, television campuses sponsorship sustainable Super Brands with as recycled In XX-second media branded feature equity television continue and in that with In network continue how brand our provided WM enhance Green transform commercials will bottles U.S.-based a who REPREVE WM of made Team enables awareness and them that customer, feature REPREVE is also stories halftime Pac-XX and sponsorship purchased on explain be partnership mentioned the being transforms

partnerships continues such momentum as REPREVE's propelled to have build growth. Our and these

hit awards and congratulate into customers cap fourth us valued customers billion with well innovation. and the These as as to we a led who Sustainability celebrate in to Awards of quarter, our This March. Champions milestone our recycled of bottles announcement bottle XX achieved point, growth our milestones this annual newcomers This us partners by of REPREVE. drove

the demand a internal another to be previously strong us That allow months, takes the had gross shortfall Similar to achieving X.X% prior third our and the last said, and through provide to volumes region will a beat operating we nine experienced of the unique was that the details. second our specific as during antidumping has XX% year-over-year in came segment business in up market quarter. before attributed and over Asia in net take performance delivered last a drove on the of pull-through high-level to quarter continued The to shown by the ramp-up pandemic quarter, forecast. COVID-XX. first Polyester during period. Now, from I versus quarter turning trends each own Brazil, and position record-setting basis, strength, outperformance competitive utilization significantly Craig the segment market just year's our on held levels. sales little to segment the during you has importers. impact Al Volumes margin more noted, lower can and and Polyester commentary to existing segment in comparable Asia pre-pandemic and sales With surpassed as another continued pre-pandemic prior on strong programs. new conditions the benefited customer improve as were some share

to Brazil in demand. unfulfilled has continues and team Our do been capture even more great to work able

volumes hold in to quarter the into its market work the region, within as but back cases said, anticipate the normal will late new and our the back that from during on With to first Brazil up retail up worked April volumes that COVID-XX we in year. ramp recent are quarter. COVID-XX of coming fiscal that spike knockdowns of expected months, the our We March to gains June note environment XXXX lasted the in that way out levels share opens country's the will impact to

segment Lastly, reflecting quarter, the met sales a the for performance expectations level. our Nylon balanced

next With will yarn before as polyester I petitions, Craig, further anticipate We I the turn be over that, will remind countries: I call Craig? trade Thailand involving imported simply to that months. determinations Indonesia, in Vietnam pass the over published Craig. continue ongoing Malaysia, will textured our call from to everyone and the four expected. Now two

Craig Creaturo

the for a and regional our everyone. the able quarter Like this of to quarterly before our and Thank EBITDA several model. income on do I two maximum to included begin of a Unifi's have of our rest profit is Asia. remaining adjusted of the overall XXXX. Operating expense we navigate quarter XXXX return fiscal you, results past specific Eddie, quick basis, year-over-year our in on and of in to will from EBITDA slide not moving the is results of to completed commentary: adjusted of fiscal these XXXX recovery significantly the The five. and responsive am outperformance by good additional we Because income we first, QX third increase Operating expense to primarily business discussions with bonus with are complexities adjusted to items XXXX and just overview from were outperformance Brazil, the I due QX ability to a morning, been that which something pleased profitability consolidated with attributable the from team, quarters. worthy results, further the that up by aided are fiscal EBITDA strong fiscal recognized robust comparative business. able of gross

additional we cost $X.X year As X/X in such, of of quarter quarter the SG&A anticipated X/X that approximately the XXXX. recorded sales. expense was affected and expense, of for approximately fourth Of just originally affected million this completed fiscal expense the other

book with North in of million continues Second, eAFK EBITDA. statement to as and in our We ramp income not This added was generating Carolina a of was installation remaining loss third noncash of machinery texturing of in adjusted operating in machines included the Yadkinville, up. other to this expense $X.X disposed quarter. our back new older value, calculation some Evo

Now, slide sales. to let's sales to increased million fiscal five up turn X.X% $XXX.X of $XXX.X from for QX XXXX. Consolidated in million, net net

than essentially competition, in a volumes period XX.X%. pricing prior the accommodate The demand months to a position from gross year and maintained revenue to profitability Brazil increase ended mix profit and impact increase China segment prices on year driving underlying an were in The after spite volume underpinned Fiber antidumping million to return Slides gross of exhibiting in gross March and growth basis points April three segment, completed this purchases and point sales XXXX. $XXX,XXX was months call global $XX.X the were slides Asia in India, Gross a dynamics and has for The momentum and in XXX was acquisition, XX.X% overview, due flat market we XXX sales combinations to than positive Slide an anticipation momentum QX gross ago. as petitions segment in of profit exhibited was profit a of of Asia revenue market February global and first revenue with Polyester prior record with real that chain and by profit driving Brazilian by growth $X.X customers position. with segment contributor the finalization much XX.X% weaker to XXXX this XXXX. mix essentially sales from Brazil, profit, segment segment Nylon recently against and model gross $X.X in from million in the a both six pre-pandemic profit adjusting able shift one by net shortfall we Those The offset of elsewhere continued levels respectively, and the the of margin it's seven the QX provides lockdowns. strength, or recovery. higher XXXX XX% for segment. For by our to XXXX trade Yarn movements of eight to sales REPREVE, which achieved improved boosted this and to comparison gross exhibit overview segment The able increase a have overview of accelerating nine in flat pricing of opportunities a Nylon during supply mix. million In basis to to fiscal business include triple two from the strong gross segment was an March Polyester the fiscal business able XXXX. XXXX dynamic from fiscal in increased addressed the for as capture been sales versus improved March QX was sales efficiencies. margin to more

Stability our on our flows allowed months two positions X XX demonstrated the recently to the Great cash XX, during balance of fiscal capital ABL X. around on this have balance debt $XX has to to availability strong Moving our diligence components working March maintaining and by leverage which sheet liquidity net continue us debt slide commitment challenged in an while our generating acquisitions to on progress financial during bolt-on XXXX. pandemic. Unifi's is by XXXX. as sheet on global had completing million and we metric, borrowings of revolver, health

We now take some will balanced to in texturing a Americas. our allocate through strong turn Evo eAFK and the allocation, Eddie continue comments. balance sheet repurchases maintain and share remain the back new I in technology presentation continue opportunities. growth, and organic opportunistic will make to and last the to us will the business to we the approach slides capital final of to M&A call with Under CapEx to invest innovation drive to

Eddie Ingle

you, Thank fiscal the fourth around of presentation the will our and conclude expectations slide XX of provide context Craig. some with I quarter for XXXX.

note more will been visibility information quarters, let past than return You detailed able to me normal have continues to we forecast provide business more of the levels. include to were we say, in able to, our couple as

fiscal expectation progress earlier The will fiscal in strong throughout year performance that supports XXXX. trends incremental third we laid out in sales the we the see quarter's net

by profit increase REPREVE sustained value-added trends for strengths are to sales and other volumes performance of June occurred this the March uncertainty, and material that impact will in expect business the the expectations sales encouraged quarter and raw of and range with gross of to to first nine XXXX to months XXXX offset by fiscal the lack anticipates our is June a by in the March recent inherent Brazil the following: quarter X% of full lag continue. pandemic especially recognition With cost sales selling company our net XXXX to incentive segment; approximately quarter We during due due responsive on XXXX. increases current XXXX price for those XXXX includes to partially the following EBITDA fiscal sequentially momentum, quarter adjustments, to from and million in adversely products for compensation X%. $XX expense a be the fourth $XX record of expected improve Adjusted that in the quarter million quarter the recent impacts the

our the market effective and believe an the fall the under performance tax our rate global of CapEx the $XX from during XX% achieve million quarter business expect million. we XX%. the fourth model between $XX of Lastly, momentum I and third in strong quarter, normal should quarter conditions. of our reflects given to And completed we can what resiliency just range

on capital to to grow using our and we gross effort maintaining strong financial M&A. position prices and strategic portfolio, Going further with our drive selling organic our balance managing our expand forward, to and in diversify focus global sheet continue costs, margin interested brand through partner and in improvement, opportunities growth leaders an sustainable products working innovation and to to strong

will open We questions. up now the for you. line Thank

Operator

with Instructions] & from Sidoti line [Operator comes first of question Your McGinnis Company. Chris the

Chris McGinnis

easy If Unifi bit along? It with the growing talk maybe it through price REPREVE think, a to A was big increases start is volatile raw nice talk in thing I about increases a pass Can bigger material. a we the seen about and sales. bit a that you percentage maybe you the the Can on lot's around change the just little quarter. of thoughts quicker? off how just can relationship pretty Does positioning strength your the think changed customer a the base? time you to raw just little period get last and we've could material. I of since, the

Eddie Ingle

thanks Chris, for Yes, the question.

in significant really what some but supply with of like Texas some of experienced, raw lot suspecting a weren't we of said, we increases the for material that highlighted happened I this, difficulties think people, have chains. the We

of the QX to due competitors. time supply a customers different no lag from been But There to our will think most have the out point everybody with fiscal customers. have -- like have will is our be But material get our we What to environment point raw increases knows that happen residual chain from inflation they I will -- we impacted of during all I that adjust. to of be implemented. doing a material we we believe the beginning some of do are our some give year from don't But weren't our it we it the customers raw going increases. raw time of from due to passing will new indexing is in view, There the of We do on, we we take view. our but are and this and that customers, to of material managing like we're traditionally raw pass it's natural on reach QX, prices up. a that. Fortunately, from albeit materials is don't by that

people REPREVE brands particularly that strength we've on I the able tightness America, recycled the understand of region, U.S. this in products, the Thank full market increased had you. side, because we're because -- demand and there in our that of quarter. because the is think Central the and the during in we increase of the certainly, for get to

Chris McGinnis

obviously, in Great, consumer? it biggest in just from sustainable very about just increase and up. come ramping be you Can the the being to you're thanks I Is successful, kind -- it pushed stay to for the see demand seeing side? having? changes you guess, sounds by the of just you talk that. the conversations And seems Where on on as to guess request I environment of, are this start REPREVE, the

Eddie Ingle

consumers, Well, are the the But the in And recognizing -- think, by consumer. deliver be as point that is we're sweet I said, able that you they in wants the spot brands what, to here driven we're consumer that service in to the and globally, it both is the the Asia. big right this.

they're the that you commitments products. making sustainable So new if sustainability the at around look report Nike's

polyester comfort, can targets. look a retailer, it's big And declaring of due there that a brand, that or the inputs. that and whether to are a so and everybody big the recycled supply to traceability the our is REPREVE because Walmart, has If it and And it a product be brand out you around with is we that go-to lot at sustainability a high brand is sustainability is company very perfect gives rate And needs. at natural transparency world. recycled

Al Carey

just key to I leaders up big September, we they're through these that sometime Al. in significantly. millennials. amount They're Eddie's as of these brands environmental starting precise starting these this for of pretty on August Also, some add to have started When where and their material in the seeing get appeared went that observation products. the in that I recycled it careers wanted can't around XXXX just retailers went just that, is of they this to the get we sustainability answer. to stage be moved to to include And one are is pretty the some Chris, in of but they're momentum taking discussions roles commitments up. close companies the over and their of terms COVID, companies.

think So those any if you I got otherwise, do you don't have miss a to want goal goal that. by to of the XXXX, companies moving you and now; get

Chris McGinnis

much. Sure. very And I that. appreciate Thank you

Operator

from of question Daniel the next Securities. Your Moore comes line with CJS

Daniel Moore

Good thank Yes, morning. you.

really Tom, you so are mark over particularly, the Just excellent been for if work all your you thank years, in your candor at official Unifi, refreshing, does It's and the quickly, straightforward call and thank this the you. with help if approach. and last call and you on just to really capacity

comps? beyond, heard. easier update given progress you North that of to Do to flipped think QX Poly expect touch Just and be into pandemic-related I kind want And continue any America the on growth to first. particularly helpful. would in dispute on trade I maybe further or color the positive March,

Eddie Ingle

will Tom comment. sure that appreciate I'm Dan. Thanks,

Regarding accelerate we beyond related and sometime in and further to preliminary think, in place sometime initiated late America, the May, -- this QX ruling definitely we get will, June, that in growth see the in early be the North volume North America, December. emphasis to beyond. growth in And are U.S. And is we We'll particularly and the took antidumping we of the back that a to do demand. we then continuing continuing in initiatives part see that

Daniel Moore

the to Is in of Very just just sustainable think And competition? bit. the helpful. factor what's gains, into -- two, And longer-term big the level been we about to of that do limiting how kind Brazil margin bust a gross a back is on maybe -- dig how margin boom little basis? number margin number crisis kind Is boom. a big it one? is -- to COVID a It's realistic --

Eddie Ingle

Yes.

two one is the I into April. did And late and yes, retail then think on volume there's questions March and get the side. environment constraints

We business there, quarter, pleased will will this June with. boom something that open we going forward, as we we'll quite we are as seeing the this gross were normal. in that the the because April that to it Margins you profit come boom-ish. the to be and and up, up retail exceptional, and that the us margin be is believe back period, the And confidence volumes pretty -- normal be, was to do through But giving range. will total the volumes expect know return that environment volumes

Daniel Moore

tax a about think the as Okay. expectation for 'XX? an And just fiscal what's normalized we QX? driving last rate housekeeping; And more rate what's in

Craig Creaturo

Yes.

and for I of a we've internationally. U.S. mix think, got QX, earnings, Dan,

tax as catching so more completed. in also that that's credits bit much rate. not We're in we the foreign driving as to as this just rate are tax a periods have We higher tax able use well, bit in on June We're a of a as well. past because GILTI higher the period of here of nine expecting that a high month we

an and bit. that balancing for Unifi, little favorable to has bit that a Going as overall more or forward, we the the will term. push little normalize a in that blending will the key we long the is rate the think U.S., Really, down continue impact in that's profitability to improve that

kind we that large a will for it QX. term, more as out than expecting look we're that So reasonable of longer rate be rate

Daniel Moore

All congrats. surely. Momentum right, forward, more looks

Craig Creaturo

Thank you.

Operator

next Instructions] comes question [Operator line of Your from with Capital. the Stonegate Marco Rodriguez

Marco Rodriguez

color quarter quarter Good -- sort back you have seem I way could a wondering played were was can on of the taking share my this very had of Brazil some some in this good That response on I kind if believe doesn't you competitive was well. maybe also out quarter, about anticipating. Maybe I that sort some call, if expectation in here of to were talking spectacular last have terms up in of going again last to kind that, of market you well, the of performance there in kind what's And obviously, as guess, dynamics sort you sort everybody. on with you once for competitive you the here. and that allowed last we and morning, Brazil. Thank you'd follow I of of guys question. performance mean, this performance, quarter.

Eddie Ingle

Good morning, Marco.

Marco Rodriguez

morning. Good

Eddie Ingle

the Eddie. remarkable thanks Yes, a This was us. it Marco, did question. for it is surprise and quarter

is team think agile in down react market certain just I really how conditions. to very and the know there

imports. opportunity with the so other and currency there. pandemic, down against with in of gain are the we local have imports one competitor biggest that to And the uncertainty the we the volatility competitor did share against market and And the see of these market

our past think June can we do demand. maintain market this is through in current share there where period, going we April So QX, slowing

in starting normal see new So volumes the fiscal year our bounce in recent back we to July. expect to

and for. to we action some their what and really thought. and EBITDA had way time team the that They've of volume beyond quite the take front right a working prepared something in that they've agility both margin come capture is has to ability make on our dent for and growth the So, been been and been big to for time, them to

continue So our and to bottom maintain be line we Thank to to that you. keep position. able market is expect share

Marco Rodriguez

some lot REPREVE, and excellent your customers. very momentum on marketing obviously, a with then And Understood. nice there, co-branding getting been of you've

wondering, of anything could if biggest your you what maybe at might market REPREVE. kind you and the this when better your you you changing or for with maybe have the sort you end of And sort efforts that word, paint to can, picture a kind brands, as Just applications XX for guess, market months, approach of additional with your lack have the learned the look see XX of maybe brands. sort drivers growth if over of co-marketing drive of, are as over share months marketing you as next far then the helping of past I

Eddie Ingle

Thank you. we and Disney, during we learned, efforts marketing last pandemic. the to like example, with unable goes life the on know out do talked put continue Yes, physically that to build I We our in what for call. lot these companies able is guess, were And there. which we've of were WM even a relationships we to

we service. mobile have place that traditionally sustainable to from the tour to REPREVE celebrate our mobile a brands We -- and gone REPREVE of story goes that physically -- place

more and there, months. off useful So in And them driver up, and out social roads. And cause. see in home automotive. transition of we've of we've be And will This well the growth; are High market, coming as apparel, along the is we events will and also furniture we where a did a XX Al do to do see platforms see media had mentioned, lot in that Point growth a being very nice the that growth to is that. the coming utilizing market an sustainable platforms sort to do furnishings, but myself XX but definitely in of area with question we takes but very doing presentation traction see This home. in on global and over year was more months the And a from the focus very We from closely. these course, a generation. received, here sustainability generation in in physical time, we'll the The see to we very, occurring more begun while the automotive. to coming the media-savvy, lot younger products, is the made social furniture around younger was those supply that lot at momentum same we had the as of chain -- be

Marco Rodriguez

Understood. very it. much, I appreciate Thank Eddie. you

Operator

Your of next question comes line Richard from Gus the Northland. with

Gus Richard

Yes, my question. thanks for taking

if demand? for rates the supply I'm in REPREVE, the And pace? to a fulfill make have to recycle wondering can in relatively sure chain low plastic. to that PET rapid grow What at do supply just demand product, you your side you do on need Just you do continues constraints on these

Eddie Ingle

that question, for Gus. Thanks

the globally. are certainly sell Of rates. desired lower U.S., they REPREVE than course, we In recycling

XX% XX% of to think estimate latest bottles is recycled. I the get

the They're recycling that relative in in up and the of business. into value this we in course, Asia, to a lot Of the systems China place collection XX% working have due predominantly XX%, our informal of rates where some are to income.

I grants concerned. are bit think again, on we the -- U.S. a we of power. have lot a that side, brand little are we a But

bottles into Unifi sell end company do like those to bottle companies like bring Management, Waste REPREVE tight, prefer meaningful if a get to back uses. so bottles the that can they'd and And

as think will grows. XX% recycled is as of the the in fact the so demand do we the grow U.S. very in market-driven rates And it years. it grow the so we recycling the an do opportunity. coming expect see collection here environment, It's the I So, to poor rates a U.S., low for that very bottles

So if be probably more there'd wasn't it concerns. XX%,

Gus Richard

to Got to for it? it. other CapEx handle And internally, need capacity just add do manufacturing you or any that product requirements

Eddie Ingle

now, don't. Right we

expand to the obviously, going CapEx years. are We spend, our in coming

meet some Textile on supply. be from for fabric a circular need res, we that will right the our to that REPREVE of to now fabric assets not to do that markets. economy, course, And But Takeback, REPREVE expand based

Gus Richard

Got so it. you much. Thank

Eddie Ingle

Thank you, Gus.

Gus Richard

Thank you.

Operator

now for management We the further call to have no will I remarks. questions. closing turn back

A.J. Eaker

participating Thanks, everyone for today.

close X, the Wednesday, August the earnings follow release Eastern the joining today's call. is Our next at call Thanks, June quarter four tentatively A.M. to ending with X:XX after for of for morning, for next conference fourth fiscal again, XX a August the market, Thursday, scheduled Time.

Operator

call. This today's conference concludes

disconnect. now may You

Unifi (UFI) 1 May 212021 Q3 Earnings call transcript