Unifi, Inc. New (UFI) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ingle, Chief Executive Officer. A.J. Ecker, Chief Financial Officer. During this call, management will be referencing a webcast presentation that can be found in the Investor Relations section of Unify.com. Please familiarize yourself with page two of that slide deck for cautionary statements and non-GAAP measures. I will now turn the call over to Al Carey. Thank you. Good morning, everybody, and thank you for joining our call today. There's been a lot going on at Unified throughout quarter four. In fact, some of those activities that I'll mention are spilling into the early part of Q1. So it may be difficult to see the impact of those activities in our Q4 metrics. So what I'd like to do right now is just give you a list of four key developments that took place in Q4 which will explain more clearly why we're confident about the improvement in our business for the fiscal 2026. So here's the first one. We have ceased operations in our Madison, North Carolina facility. It's been sold, and it has been the biggest cause of profit misses in our past performance, so we were happy to get that behind us. The real estate was sold for a premium, and the proceeds have helped us pay down a significant portion of our debt. A large part of the volume that was in Madison has now moved to Yadkinville, North Carolina facility and some to our El Salvador plant where we expect future growth from the demand in Central America. Number two, our Yadkinville, North Carolina plant is our largest and assumed new volumes from Madison that equates to 40% increase in the Yadkinville production capability. This is beneficial for our capacity utilization for the company in North America, and it helps with the economics for our North America business. The transition has required us hiring 100 new em...