Unifi, Inc. (UFI) has reported a 5.28 percent fall in profit for the quarter ended Mar. 26, 2017. The company has earned $9.18 million, or $0.50 a share in the quarter, compared with $9.69 million, or $0.53 a share for the same period last year. On an adjusted basis, net profit for the quarter was $9.18 million, when compared with $9.96 million in the last year period.

Revenue during the quarter went down marginally by 0.24 percent to $160.90 million from $161.28 million in the previous year period. Gross margin for the quarter contracted 135 basis points over the previous year period to 13.13 percent. Total expenses were 94.34 percent of quarterly revenues, up from 93.80 percent for the same period last year. That has resulted in a contraction of 54 basis points in operating margin to 5.66 percent.

Operating income for the quarter was $9.11 million, compared with $9.99 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $14.43 million compared with $15.36 million in the prior year period. At the same time, adjusted EBITDA margin contracted 56 basis points in the quarter to 8.97 percent from 9.53 percent in the last year period.

"Our international strategy has not only enhanced our ability to serve our customers but also provided us with valuable diversification throughout fiscal 2017. During this fiscal year, strength in the international PVA business has counterbalanced headwinds in the domestic market driven by weak retail sales, elevated inventory levels, and pressure from higher raw material costs. For fiscal 2017, we continue to expect results to be broadly in-line with fiscal 2016," said Tom Caudle, president of Unifi.

The company has spent $28.05 million cash to meet investing activities during the nine month period as against cash outgo of $36.68 million in the last year period.

Cash flow from financing activities was $12.29 million for the nine month period, up 176.51 percent or $7.84 million, when compared with the last year period.

Cash and cash equivalents stood at $30.23 million as on Mar. 26, 2017, up 97.76 percent or $14.94 million from $15.29 million on Mar. 27, 2016.

Working capital increases

Unifi, Inc. has recorded an increase in the working capital over the last year. It stood at $166.91 million as at Mar. 26, 2017, up 21.93 percent or $30.02 million from $136.89 million on Mar. 27, 2016. Current ratio was at 3.13 as on Mar. 26, 2017, up from 2.86 on Mar. 27, 2016.

Cash conversion cycle (CCC) has decreased to 52 days for the quarter from 92 days for the last year period. Days sales outstanding were almost stable at 48 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 36 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding went up to 32 days for the quarter from 26 for the same period last year.