Unifi, Inc. New · NYSE:UFI
Unifi, Inc. New — Unifi — Non-Deal Roadshow (June 2014)
38 slides from Unifi, Inc. New's roadshow presentation, Jun 3, 2014
Slide 1: Discussion Reference Materials for Private Investor Meetings
Discussion Reference Materials for Private Investor Meetings June 3, 2014
Slide 2: Third Quarter Press Release and Financials
Third Quarter Press Release and Financials April 23, 2014
Slide 3: Third Quarter Conference Call Slide Presentation
Third Quarter Conference Call Slide Presentation April 24, 2014
Slide 4: Cautionary Statement
Cautionary Statement Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about the financial condition and results of operations of Unifi, Inc. (the “Company”) that are based on management’s beliefs, assumptions and expectations about o
Slide 5: Net Sales and Gross Profit Highlights
Net Sales and Gross Profit Highlights (Amounts in Thousands, Except Percentages) Quarter over Quarter Year over Year For the Three Months Ended For the Nine Months Ended March 30, 2014 vs. March 24, 2013 March 30, 2014 vs. March 24, 2013 Volume Price Volume Price Net Sales: Polyester 6.5% 1.3% (1.3%
Slide 6: Income Statement Highlights - Three Months
Income Statement Highlights (Amounts in Thousands, Except Percentages and Per Share Amounts) For the Three Months Ended March 30, 2014 March 24, 2013 Net sales $176,864 100.0% $168,249 100.0% Gross profit 19,759 11.2% 12,681 7.5% Selling, general and administrative expenses 12,290 6.9% 11,262 6.7% O
Slide 7: Income Statement Highlights - Nine Months
Income Statement Highlights (Amounts in Thousands, Except Percentages and Per Share Amounts) For the Nine Months Ended March 30, 2014 March 24, 2013 Net sales $506,150 100.0% $513,220 100.0% Gross profit 58,241 11.5% 47,392 9.2% Selling, general and administrative expenses 33,895 6.7% 33,941 6.6% Op
Slide 8: Equity Affiliates Highlights
Equity Affiliates Highlights (Amounts in thousands, Except Percentages) For the Three Months Ended For the Nine Months Ended March 30, 2014 March 24, 2013 March 30, 2014 March 24, 2013 Earnings: Parkdale America (34%) $3,230 $4,294 $13,949 $4,990 Other 355 489 881 1,722 Total $3,585 $4,783 $14,830 $
Slide 9: Reconciliations of Net Income to Adjusted EBITDA
Reconciliations of Net Income to Adjusted EBITDA (Amounts in Thousands) For the Three Months Ended For the Nine Months Ended March 30, 2014 March 24, 2013 March 30, 2014 March 24, 2013 Net income attributable to Unifi, Inc. $4,743 $1,399 $20,056 $6,119 Provision for income taxes 4,476 2,510 14,151 7
Slide 10: Working Capital Highlights
Working Capital Highlights (Amounts in Thousands) March 30, 2014 December 29, 2013 June 30, 2013 Receivables, net $97,390 $77,536 $98,392 Inventories 110,916 110,765 110,667 Accounts payable (53,276) (35,740) (45,544) Accrued expenses (1) (16,373) (12,399) (18,383) Adjusted working capital $138,657
Slide 11: Capital Structure
Capital Structure (Amounts in Thousands) March 30, 2014 December 29, 2013 June 30, 2013 ABL Revolver $25,400 $50,400 $52,500 ABL Term Loan 68,000 50,000 42,800 Other 5,111 2,424 2,453 Total Debt $98,511 $102,824 $97,753 Cash 13,159 15,522 8,755 Net Debt $85,352 $87,302 $88,998 Cash $13,159 $15,522 $
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with generally accepted accounting principles in the United States of America ("GAAP") because management believes such measures are useful to
Slide 13: Non-GAAP Financial Measures - continued
Non-GAAP Financial Measures - continued In evaluating EBITDA, Adjusted EBITDA including equity affiliates, and Adjusted EBITDA, you should be aware that in the future, we may incur expenses similar to the adjustments included herein. Our presentation of EBITDA, Adjusted EBITDA including equity affil
Slide 14: 7th Annual Meeting September 16, 2013
7th Annual Investor Update Meeting September 16, 2013
Slide 15: Company and Market Overview
2 Company and Market Overview
Slide 16: Unifi Overview
Unifi, Inc. is a diversified manufacturer of multi-filament polyester and nylon yarns The Company’s product offerings include specialty and premier value-added yarns with enhanced performance characteristics The Company sells to other yarn manufacturers, knitters and weavers that produce fabric for
Slide 17: Our Manufacturing Process
4 Our Manufacturing Process PET and rPET* Chip POY Manufacturing Yarn Texturing Value-Added Processes – Dyeing, Covering, Twisting, Beaming, Solution and Package Dyed
Slide 18: Who We Are: Sales by Asset Location
5 Manufacturing & Office Sales Office Joint Venture Consolidated Sales by Asset Location ($714 million FY 2013) Who We Are Our assets are well-positioned to leverage regional and global growth in synthetics
Slide 19: Growing Global Textile Fibers Market
Growing Global Textile Fibers Market 6 ___________________________ Source: PCI Fibers Global consumption of textile fibers grows based on population and affluence Global Textile Markets Approximately 180 billion pounds of textile fibers sold annually 3% to 4% annual growth in global textile fibers p
Slide 20: U.S. Customer & Channel Segmentation – FY 2013
U.S. Customer & Channel Segmentation – FY 2013 ___________________________ 2012/2011 Estimates for combined Apparel and Hosiery segments Note: U.S. figures refers to Unifi operations in USA and El Salvador U.S. Sales by Customer 7 Strong diversity of customer base and distribution channels Distribut
Slide 21: Leading Market Position
Leading Market Position ___________________________ Polyester market position includes Unifi sales of Polyester Textured Yarn, Draw Warp, and POY external sales to other U.S. domestic DTY producers Other domestic competition sales excludes Polyester Textured Yarn and Draw Warp made with Unifi POY Un
Slide 22: U.S. Market Segmentation – FY 2013
U.S. Market Segmentation – FY 2013 Diverse product offering sells into the apparel, hosiery, industrial, furnishings, and automotive markets Compliant yarn sales account for approximately 64% of the Company’s U.S. sales Large majority of U.S. customers are domestic weavers and knitters Most free tra
Slide 23: U.S. Synthetic Apparel Sourcing Trends
U.S. Synthetic Apparel Sourcing Trends Regional: Units grew 7% and 5% in ‘11 and ‘12; expected to grow 5% to 7% in ‘13 ___________________________ Source: Internal Estimates, Federal Reserve, OTEXA, and Census Bureau Supply Share by Region 10
Slide 24: Business Strategy
OINIFT. Business Strategy in
Slide 25: Our Business Strategy
Our Business Strategy 12 Drive financial improvement to our core business through a rigorous and disciplined improvement process Manufacturing excellence (Lean, SPC) Rigorous price analysis and management Enrich our product mix by aggressively growing our Premier Value Added products and increasing
Slide 26: Repreve Renewables
OINIFT. Repreve Renewables 13
Slide 27: Repreve Renewables
14 Repreve Renewables Exclusive License of Proprietary Miscanthuss X Giganteus variety Developed by Mississippi State University as dedicated energy crop for the SE US Desirable Biomass Feedstock High Yields per Acre - up to 20+ tons/ a High Energy Content - 15.5 mm btu / ton Low Moisture Content at
Slide 28: Repreve Renewables Status
Repreve Renewables Status Still a “Start-up” Commercial scale planting process developed 1-4 year yields meeting expectations Viable commercial sales models developed Short Term Plan (next year) Aggressively sell into markets available to us today Bio Bedding Chemtex Bio-fuels Confirm viable sales m
Slide 29: PVA - Premier Value Added Products
PVA - Premier Value Added Products 16
Slide 30: Global PVA Sales Revenue by Fiscal Year
Global PVA Sales Revenue by Fiscal Year PVA portfolio represented approximately 20% of consolidated sales in fiscal 2013 Products utilized in apparel, contract, home furnishings, military, socks and hospitality Steady investment in R&D and commercialization of PVA products remains a strategic priori
Slide 31: Our PVA Brands
Our PVA Brands 18 Touch & Texture Performance Sustainability
Slide 32: Repreve product features
Made from recycled materials; including post-consumer plastic bottles & post-industrial fiber waste Product Transparency & Authenticity SCS Certified for recycled content claims; Oeko-Tex certified Program provides transparency throughout the supply chain with Unifi’s unique & proprietary Fiberprint
Slide 33: Repreve: The Growth of A Brand
Repreve It's what's in it The Growth of A Brand 20
Slide 34: Financial Overview
Financial Overview (as presented during the 7th Annual Investor Update Meeting on September 16, 2013) 21
Slide 35: Liquidity and Debt Highlights
Liquidity and Debt Highlights 22 U.S. $85mm interest rate swap; declines $5mm per qtr.; until reaches $50mm in May 2015 LIBOR is fixed at 1.06%; hedge terminates in May 2017 (Amounts in millions, except percentages) June 2010 June 2011 June 2012 June 2013 Cash $43 $27 $11 $9 Revolver Availability, n
Slide 36: Cash Generation Trends
Cash Generation Trends 4 Year FY 2014 ($ in millions) FY 2010 FY 2011 FY 2012 FY 2013 Average Estimate Adjusted EBITDA $55 $60 $40 $53 $52 $55 Capital expenditures (13) (21) (6) (9) (13) (17) Cash interest payments (21) (19) (17) (4) (15) (3) Cash taxes (9) (7) (4) (8) (7) (18) EBITDA cash generatio
Slide 37: Adjusted EBITDA Reconciliation
Unifi, Inc. - Adjusted EBITDA Reconciliation 24 (Dollars in thousands) FY 2010 FY 2011 FY 2012 FY 2013 Net income attributable to Unifi $10,685 $25,089 $11,491 $16,635 Interest expense, net 18,764 16,679 14,152 3,791 Provision (benefit) for income taxes 7,686 7,333 (1,979) 13,344 Depreciation and am
Slide 38: OINIFT.
OINIFT.