Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Oct. 02, 2022 | Nov. 07, 2022 | |
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 | --07-03 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 02, 2022 | |
Document Fiscal Year Focus | 2022 | |
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 $0.10 per share | |
Security Exchange Name | NYSE | |
Entity Address, Address Line One | 7201 West Friendly Avenue | |
Entity Address, City or Town | Greensboro | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27410 | |
City Area Code | 336 | |
Local Phone Number | 294-4410 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding (in shares) | 18,035,684 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 47,200 | $ 53,290 |
Receivables, net | 90,755 | 106,565 |
Inventories | 165,063 | 173,295 |
Income taxes receivable | 1,432 | 160 |
Other current assets | 14,336 | 18,956 |
Total current assets | 318,786 | 352,266 |
Property, plant and equipment, net | 219,430 | 216,338 |
Operating lease assets | 8,247 | 8,829 |
Deferred income taxes | 2,422 | 2,497 |
Other non-current assets | 8,940 | 8,788 |
Total assets | 557,825 | 588,718 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 44,428 | 73,544 |
Income taxes payable | 1,925 | 1,526 |
Current operating lease liabilities | 2,075 | 2,190 |
Current portion of long-term debt | 11,875 | 11,726 |
Other current liabilities | 18,421 | 19,806 |
Total current liabilities | 78,724 | 108,792 |
Long-term debt | 114,919 | 102,309 |
Non-current operating lease liabilities | 6,263 | 6,736 |
Deferred income taxes | 4,935 | 4,983 |
Other long-term liabilities | 4,685 | 4,449 |
Total liabilities | 209,526 | 227,269 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized; 18,011,873 and 17,979,362 shares issued and outstanding as of October 2, 2022 and July 3, 2022, respectively) | 1,801 | 1,798 |
Capital in excess of par value | 66,709 | 66,120 |
Retained earnings | 345,302 | 353,136 |
Accumulated other comprehensive loss | (65,513) | (59,605) |
Total shareholders’ equity | 348,299 | 361,449 |
Total liabilities and shareholders’ equity | $ 557,825 | $ 588,718 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 02, 2022 | Jul. 03, 2022 |
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) | 18,011,873 | 17,979,362 |
Common stock, shares outstanding (in shares) | 18,011,873 | 17,979,362 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 179,519 | $ 195,992 |
Cost of sales | 172,956 | 169,895 |
Gross profit | 6,563 | 26,097 |
Selling, general and administrative expenses | 11,773 | 12,670 |
Provision (benefit) for bad debts | 174 | (80) |
Other operating (income) expense, net | (689) | 256 |
Operating (loss) income | (4,695) | 13,251 |
Interest income | (547) | (258) |
Interest expense | 1,247 | 696 |
Equity in earnings of unconsolidated affiliates | (295) | (280) |
(Loss) income before income taxes | (5,100) | 13,093 |
Provision for income taxes | 2,734 | 4,413 |
Net (loss) income | $ (7,834) | $ 8,680 |
Net (loss) income per common share: | ||
Basic | $ (0.44) | $ 0.47 |
Diluted | $ (0.44) | $ 0.46 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net (loss) income | $ (7,834) | $ 8,680 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (5,908) | (6,926) |
Changes in interest rate swaps, net of tax of nil and $77, respectively | 256 | |
Other comprehensive loss, net | (5,908) | (6,670) |
Comprehensive (loss) income | $ (13,742) | $ 2,010 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Sep. 26, 2021 USD ($) | |
Statement Of Income And Comprehensive Income [Abstract] | |
Changes in interest rate swaps, tax | $ 77 |
Condensed Consolidated Statem_4
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 Jun. 27, 2021 | $ 358,419 | $ 1,849 | $ 65,205 | $ 344,797 | $ (53,432) |
Balance (in shares) at Jun. 27, 2021 | 18,490,000 | ||||
Options exercised | $ 1 | (1) | |||
Options exercised (in shares) | 9,000 | ||||
Conversion of equity units | $ 4 | (4) | |||
Conversion of equity units (in shares) | 38,000 | ||||
Stock-based compensation | 582 | 582 | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (14) | $ (2) | (12) | ||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (13,000) | ||||
Other comprehensive loss, net of tax | (6,670) | (6,670) | |||
Net income (loss) | 8,680 | 8,680 | |||
Balance at Sep. 26, 2021 | 360,997 | $ 1,852 | 65,770 | 353,477 | (60,102) |
Balance (in shares) at Sep. 26, 2021 | 18,524,000 | ||||
Balance at Jul. 03, 2022 | $ 361,449 | $ 1,798 | 66,120 | 353,136 | (59,605) |
Balance (in shares) at Jul. 03, 2022 | 17,979,362 | 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 income (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 | 18,011,873 | 18,012,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Statement Of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of period | $ 53,290 | $ 78,253 |
Operating activities: | ||
Net (loss) income | (7,834) | 8,680 |
Adjustments to reconcile net (loss) income to net cash used by operating activities: | ||
Equity in earnings of unconsolidated affiliates | (295) | (280) |
Depreciation and amortization expense | 6,740 | 6,365 |
Non-cash compensation expense | 633 | 660 |
Deferred income taxes | (373) | (3,463) |
Other, net | 324 | (100) |
Changes in assets and liabilities: | ||
Receivables, net | 13,800 | (9,462) |
Inventories | 6,475 | (12,190) |
Other current assets | 4,026 | (1,056) |
Income taxes | (789) | 2,606 |
Accounts payable and other current liabilities | (28,615) | (7,393) |
Other, net | 16 | (175) |
Net cash used by operating activities | (5,892) | (15,808) |
Investing activities: | ||
Capital expenditures | (11,198) | (9,300) |
Other, net | (222) | 31 |
Net cash used by investing activities | (11,420) | (9,269) |
Financing activities: | ||
Proceeds from ABL Revolver | 65,500 | |
Payments on ABL Revolver | (52,300) | |
Payments on ABL Term Loan | (2,500) | (2,500) |
Proceeds from construction financing | 2,449 | 882 |
Payments on finance lease obligations | (436) | (927) |
Other, net | (222) | |
Net cash provided (used) by financing activities | 12,713 | (2,767) |
Effect of exchange rate changes on cash and cash equivalents | (1,491) | (853) |
Net decrease in cash and cash equivalents | (6,090) | (28,697) |
Cash and cash equivalents at end of period | $ 47,200 | $ 49,556 |
Background
Background | 3 Months Ended |
Oct. 02, 2022 | |
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, 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”), 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 include 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 (“U.S.”). |
Basis of Presentation; Condense
Basis of Presentation; Condensed Notes | 3 Months Ended |
Oct. 02, 2022 | |
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 3, 2022 (the “2022 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 2, 2022. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarter ended on September 30, 2022. 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 2, 2022 and September 26, 2021 both consisted of 13 weeks. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Oct. 02, 2022 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Based on UNIFI’s review of Accounting Standards Updates issued since the filing of the 2022 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. 02, 2022 | |
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 ® For the Three Months Ended October 2, 2022 September 26, 2021 Third-party manufacturer $ 178,212 $ 193,297 Service 1,307 2,695 Net sales $ 179,519 $ 195,992 For the Three Months Ended October 2, 2022 September 26, 2021 REPREVE ® $ 49,179 $ 71,906 All other products and services 130,340 124,086 Net sales $ 179,519 $ 195,992 Third-Party Manufacturer 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 our 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. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 5. Long-Term Debt Debt Obligations The following table and narrative presents the detail of UNIFI’s debt obligations. Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date October 2, 2022 October 2, 2022 July 3, 2022 ABL Revolver December 2023 4.5 % $ 54,500 $ 41,300 ABL Term Loan December 2023 4.1 % 62,500 65,000 Finance lease obligations (1) 3.6 % 7,554 7,261 Construction financing (2) 1.8 % 2,450 729 Total debt 127,004 114,290 Current ABL Term Loan (10,000 ) (10,000 ) Current portion of finance lease obligations (1,875 ) (1,726 ) Unamortized debt issuance costs (210 ) (255 ) Total long-term debt $ 114,919 $ 102,309 ( 1 ) Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027. ( 2 ) Refer to the discussion below under the subheading “ Construction Financing ABL Facility Since the filing of the 2022 Form 10-K, Unifi, Inc. entered into the Sixth Amendment to Amended and Restated Credit Agreement (the “Sixth Amendment”) on September 2, 2022. The Sixth Amendment modified the Trigger Level (as defined in the Prior Credit Agreement and which relates to, among other things, the requirement to maintain a Fixed Charge Coverage Ratio (as defined in the Prior Credit Agreement)) such that it occurs when Excess Availability (as defined in the Prior Credit Agreement) falls below (a) for the period beginning on September 2, 2022 through and including the date that is 60 days after such date, $16,500 and (b) at all other times, the greatest of (i) $10.0 million, (ii) 20% of the Maximum Revolver Amount (as defined in the Prior Credit Agreement), and (iii) 12.5% of the sum of the Maximum Revolver Amount plus the outstanding principal amount of the Term Loan (as defined in the Prior Credit Agreement). On October 28, 2022, Unifi, Inc. and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2022 Credit Agreement”) with a syndicate of lenders. The 2022 Credit Agreement provides for a $230,000 senior secured credit facility (the “2022 ABL Facility”), including a $115,000 revolving credit facility and a term loan that can be reset up to a maximum amount of $115,000, once per fiscal year, if certain conditions are met. The 2022 ABL Facility has a maturity date of October 28, 2027. Prior to entering the 2022 Credit Agreement, Unifi, Inc. and certain of its subsidiaries maintained a similar credit agreement that established a $200,000 senior secured credit facility (the “Prior ABL Facility”), including a $100,000 revolving credit facility (the “Prior ABL Revolver”) and a term loan that could be reset up to a maximum amount of $100,000, once per fiscal year, if certain conditions were met (the “Prior ABL Term Loan”). The Prior ABL Facility had a maturity date of December 18, 2023. Borrowings under the Construction Financing In May 2021, UNIFI entered into an agreement with a third party lender that provides for construction-period financing for certain texturing machinery included in our capital allocation plans. UNIFI records project costs to construction in progress and the corresponding liability to construction financing (within long-term debt). The agreement provides for monthly, interest-only payments during the construction period, at a rate of SOFR plus 1.25%, and contains terms customary for a financing of this type. Each borrowing under the agreement provides for 60 monthly payments, which will commence upon the completion of the construction period with an interest rate of approximately 4.4%. In connection with this construction financing arrangement, UNIFI has borrowed a total of $5,672 and transitioned $3,222 of completed asset costs to finance lease obligations as of October 2, 2022. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations: Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter ABL Revolver $ — $ 54,500 $ — $ — $ — $ — ABL Term Loan 7,500 55,000 — — — — Finance lease obligations 1,400 1,926 1,843 1,406 890 89 Total (1) $ 8,900 $ 111,426 $ 1,843 $ 1,406 $ 890 $ 89 (1) Total reported excludes $2,450 of construction financing, described above |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The provision for income taxes and effective tax rate were as follows: For the Three Months Ended October 2, 2022 September 26, 2021 Provision for income taxes $ 2,734 $ 4,413 Effective tax rate (53.6 )% 33.7 % Income Tax Expense UNIFI’s provision for income taxes for the three months ended October 2, 2022 and September 26, 2021 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 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”). The effective tax rate for the three months ended September 26, 2021 was higher than the U.S. federal statutory rate primarily due to earnings taxed at higher rates in foreign jurisdictions, deferred tax on unremitted earnings, and foreign withholding taxes. 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. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Oct. 02, 2022 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity On October 31, 2018, UNIFI announced that its 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. Under the 2018 SRP, purchases may be made from time to time in the open market at prevailing market prices, through private transactions or block trades. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The share repurchase authorization is discretionary and has no expiration date. Repurchases, if any, are expected to be financed through cash generated from operations and borrowings under the ABL Revolver, and are subject to applicable limitations and restrictions as set forth in the ABL Facility. UNIFI may discontinue repurchases at any time that management determines additional purchases are not beneficial or advisable. The following table summarizes UNIFI’s repurchases and retirements of its common stock under the 2018 SRP for the fiscal periods noted: Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal 2019 — $ — $ 50,000 Fiscal 2020 84 $ 23.72 $ 48,008 Fiscal 2021 — $ — $ 48,008 Fiscal 2022 617 $ 14.84 $ 38,859 Fiscal 2023 (through October 2, 2022) — $ — $ 38,859 Total 701 $ 15.90 $ 38,859 Repurchased shares are retired and have the status of authorized and unissued shares. The cost of the repurchased shares is recorded as a reduction to common stock to the extent of the par value of the shares acquired and the remainder is allocated between capital in excess of par value and retained earnings, on a pro rata basis. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Oct. 02, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation On October 29, 2020, UNIFI’s shareholders approved the Unifi, Inc. Second Amended and Restated 2013 Incentive Compensation Plan (the “2020 Plan”). The 2020 Plan set the number of shares available for future issuance pursuant to awards granted under the 2020 Plan to 850. No additional awards can be granted under prior plans; however, awards outstanding under a respective prior plan remain subject to that plan’s provisions. The following table provides the number of awards remaining available for future issuance under the 2020 Plan as of October 2, 2022: Authorized under the 2020 Plan 850 Plus: Awards expired, forfeited or otherwise terminated unexercised 1 Less: Awards granted to employees (209 ) Less: Awards granted to non-employee directors (42 ) Available for issuance under the 2020 Plan 600 On October 27, 2021, UNIFI’s shareholders approved the Unifi, Inc. Employee Stock Purchase Plan (the “ESPP”) as described in Unifi, Inc.’s Definitive Proxy Statement on Schedule 14A filed with the SEC on September 2, 2021. The ESPP reserved 100 Company shares, is intended to be a qualified plan under applicable tax law, and allows eligible employees to purchase Company shares at a 15% discount from market value. ESPP activity is reflected as options exercised in the condensed consolidated statements of shareholders’ equity. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 3 Months Ended |
Oct. 02, 2022 | |
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 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 employees are eligible to participate. The fair value of the investment assets held by the grantor trust established in connection with the DCP were approximately $2,523 and $2,196 as of October 2, 2022 and July 3, 2022, 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 (income) expense, net. During fiscal 2023, we recorded losses on investments held by the trust of $49. Derivative Instruments UNIFI uses derivative financial instruments such as foreign currency forward contracts or interest rate swaps to reduce its ongoing business exposures to fluctuations in foreign currency exchange rates or interest rates. UNIFI does not enter into derivative contracts for speculative purposes. As of October 2, 2022, there were no outstanding derivative instruments. For the three months ended October 2, 2022 and September 26, 2021, 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Oct. 02, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss The components of and the changes in accumulated other comprehensive loss, net of tax, as applicable, consist of the following: Foreign Currency Translation Adjustments Changes in Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at July 3, 2022 $ (59,605 ) $ — $ (59,605 ) Other comprehensive loss (5,908 ) — (5,908 ) Balance at October 2, 2022 $ (65,513 ) $ — $ (65,513 ) A summary of the after-tax effects of the components of other comprehensive loss, net for the three-month period ended October 2, 2022 and September 26, 2021 is included in the accompanying condensed consolidated statements of comprehensive (loss) income. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended October 2, 2022 September 26, 2021 Net (loss) income $ (7,834 ) $ 8,680 Basic weighted average shares 18,001 18,515 Net potential common share equivalents — 482 Diluted weighted average shares 18,001 18,997 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 618 287 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. 02, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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. Environmental On September 30, 2004, Unifi Kinston, LLC (“UK”), a subsidiary of Unifi, Inc., completed its acquisition of polyester filament manufacturing assets located in Kinston, North Carolina (“Kinston”) from Invista S.a.r.l. (“INVISTA”). The land for the Kinston site was leased pursuant to a 99-year ground lease (the “Ground Lease”) with E.I. DuPont de Nemours (“DuPont”). Since 1993, DuPont has been investigating and cleaning up the Kinston site under the supervision of the U.S. Environmental Protection Agency and the North Carolina Department of Environmental Quality (“DEQ”) pursuant to the Resource Conservation and Recovery Act Corrective Action program. The program requires DuPont to identify all potential areas of environmental concern (“AOCs”), assess the extent of containment at the identified AOCs and remediate the AOCs to comply with applicable regulatory standards. Effective March 20, 2008, UK entered into a lease termination agreement associated with conveyance of certain assets at the Kinston site to DuPont. This agreement terminated the Ground Lease and relieved UK of any future responsibility for environmental remediation, other than participation with DuPont, if so called upon, with regard to UK’s period of operation of the Kinston site, which was from 2004 to 2008. At this time, UNIFI has no basis to determine if or when it will have any responsibility or obligation with respect to the AOCs or the extent of any potential liability for the same. UK continues to own property (the “Kentec site”) acquired in the 2004 transaction with INVISTA that has contamination from DuPont’s prior operations and is monitored by DEQ. The Kentec site has been remediated by DuPont, and DuPont has received authority from DEQ to discontinue further remediation, other than natural attenuation. Prior to transfer of responsibility to UK, DuPont and UK had a duty to monitor and report the environmental status of the Kentec site to DEQ. Effective April 10, 2019, UK assumed sole remediator responsibility of the Kentec site pursuant to its contractual obligations with INVISTA and received $180 of net monitoring and reporting costs due from DuPont. In connection with monitoring, UK expects to sample and report to DEQ annually. At this time, UNIFI does not expect any active site remediation will be required but expects that any costs associated with active site remediation, if ever required, would likely be immaterial. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Oct. 02, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions There were no related party receivables as of October 2, 2022 or July 3, 2022. Related party payables for Salem Leasing Corporation consisted of the following: October 2, 2022 July 3, 2022 Accounts payable $ 396 $ 432 Operating lease obligations 732 811 Finance lease obligations 4,624 4,933 Total related party payables $ 5,752 $ 6,176 The following were the Company’s significant r elated party transactions: For the Three Months Ended Affiliated Entity Transaction Type October 2, 2022 September 26, 2021 Salem Leasing Corporation Payments for transportation equipment costs and finance lease debt service $ 1,199 $ 1,028 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | 14. 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. In the fourth quarter of fiscal 2022, UNIFI realigned its operating and reportable segments to correspond with changes to its operating model, management structure, and organizational responsibilities, reflecting the manner in which business performance is evaluated, resources are allocated, and financial statement users can best understand the results of operations. Accordingly, UNIFI is now reporting the Americas Segment, Brazil Segment, and Asia Segment. The Americas Segment represents the combination of the previously reported Polyester Segment, Nylon Segment, and All Other category. There are no changes to the composition of the historical Brazil Segment and Asia Segment. Comparative prior period disclosures have been updated to conform to the new presentation. UNIFI has three reportable segments. • 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 other 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 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 For the Three Months Ended September 26, 2021 Americas Brazil Asia Total Net sales $ 110,826 $ 33,738 $ 51,428 $ 195,992 Cost of sales 101,640 23,798 44,457 169,895 Gross profit 9,186 9,940 6,971 26,097 Segment depreciation expense 5,075 383 — 5,458 Segment Profit $ 14,261 $ 10,323 $ 6,971 $ 31,555 The reconciliations of segment gross profit to consolidated (loss) income before income taxes are as follows: For the Three Months Ended October 2, 2022 September 26, 2021 Americas $ (4,869 ) $ 9,186 Brazil 6,787 9,940 Asia 4,645 6,971 Segment gross profit 6,563 26,097 Selling, general and administrative expenses 11,773 12,670 Provision (benefit) for bad debts 174 (80 ) Other operating (income) expense, net (689 ) 256 Operating (loss) income (4,695 ) 13,251 Interest income (547 ) (258 ) Interest expense 1,247 696 Equity in earnings of unconsolidated affiliates (295 ) (280 ) (Loss) income before income taxes $ (5,100 ) $ 13,093 There have been no material changes in segment assets during fiscal 2023. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Oct. 02, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | 15. 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 2, 2022, UNIFI’s open purchase orders related to this supply agreement were $1,180. UNIFI’s raw material purchases under this supply agreement consisted of the following: For the Three Months Ended October 2, 2022 September 26, 2021 UNFA $ 7,401 $ 5,830 UNF 37 71 Total $ 7,438 $ 5,901 As of October 2, 2022 and July 3, 2022, UNIFI had combined accounts payable due to UNF and UNFA of $5,190 and $5,565, respectively. UNIFI has determined that UNF and UNFA are variable interest entities and that UNIFI is the primary beneficiary of these entities, based on the terms of the supply agreement discussed above. 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, (ii) the two entities’ balance sheets constitute 3% 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 2, 2022, UNIFI’s combined investments in UNF and UNFA were $2,246. 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 accounting 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 2, 2022 July 3, 2022 Current assets $ 10,243 $ 10,705 Non-current assets 576 605 Current liabilities 7,550 8,056 Non-current liabilities — — Shareholders’ equity and capital accounts 3,269 3,254 UNIFI’s portion of undistributed earnings 2,187 2,013 For the Three Months Ended October 2, 2022 September 26, 2021 Net sales $ 8,811 $ 6,150 Gross profit 489 544 Income from operations 25 127 Net income 15 127 Depreciation and amortization 28 33 Distributions received — — |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Oct. 02, 2022 | |
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 16. Supplemental Cash Flow Information Cash payments for interest and taxes consist of the following: For the Three Months Ended October 2, 2022 September 26, 2021 Interest, net of capitalized interest of $87 and $106, respectively $ 767 $ 644 Income tax payments, net 2,928 5,091 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. The three months ended September 26, 2021 includes an income tax payment of $2,125 related to the recovery of non-income taxes in Brazil. Non-Cash Investing and Financing Activities As of October 2, 2022 and July 3, 2022, $1,449 and $2,456, respectively, were included in accounts payable for unpaid capital expenditures. As of September 26, 2021 and June 27, 2021, $1,524 and $2,080, respectively, were included in accounts payable for unpaid capital expenditures. During the three months ended October 2, 2022 and September 26, 2021, UNIFI recorded non-cash activity relating to finance leases of $729 and $0, respectively. |
Other Financial Data
Other Financial Data | 3 Months Ended |
Oct. 02, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Other Financial Data | 17. Other Financial Data Select balance sheet information is presented in the following table. October 2, 2022 July 3, 2022 Receivables, net: Customer receivables $ 86,183 $ 99,963 Allowance for uncollectible accounts (1,632 ) (1,498 ) Reserves for quality claims (746 ) (860 ) Net customer receivables 83,805 97,605 Banker's acceptance notes 5,792 7,849 Other receivables 1,158 1,111 Total receivables, net $ 90,755 $ 106,565 Inventories: Raw materials $ 65,609 $ 69,994 Supplies 11,963 11,953 Work in process 9,702 10,358 Finished goods 81,500 84,477 Gross inventories 168,774 176,782 Net realizable value adjustment (3,711 ) (3,487 ) Total inventories $ 165,063 $ 173,295 Other current assets: Recovery of non-income taxes, net $ 4,762 $ 6,770 Vendor deposits 4,508 6,910 Prepaid expenses and other 2,615 3,004 Value-added taxes receivable 1,963 1,987 Contract assets 488 285 Total other current assets $ 14,336 $ 18,956 Property, plant and equipment, net: Land $ 3,145 $ 3,160 Land improvements 16,443 16,443 Buildings and improvements 165,565 164,252 Assets under finance leases 11,498 10,921 Machinery and equipment 638,747 635,699 Computers, software and office equipment 25,630 25,348 Transportation equipment 10,447 10,591 Construction in progress 18,556 20,397 Gross property, plant and equipment 890,031 886,811 Less: accumulated depreciation (666,337 ) (666,569 ) Less: accumulated amortization – finance leases (4,264 ) (3,904 ) Total property, plant and equipment, net $ 219,430 $ 216,338 Other non-current assets: Grantor trust $ 2,523 $ 2,196 Investments in unconsolidated affiliates 2,246 2,072 Intangible assets, net 2,154 2,500 Other 2,017 2,020 Total other non-current assets $ 8,940 $ 8,788 Other current liabilities: Payroll and fringe benefits $ 10,830 $ 9,414 Utilities 2,010 2,287 Deferred revenue 1,716 1,694 Incentive compensation 559 3,916 Property taxes and other 3,306 2,495 Total other current liabilities $ 18,421 $ 19,806 Other long-term liabilities: Nonqualified deferred compensation plan obligation $ 2,395 $ 1,982 Uncertain tax positions 1,751 1,575 Other 539 892 Total other long-term liabilities $ 4,685 $ 4,449 |
Basis of Presentation; Conden_2
Basis of Presentation; Condensed Notes (Policies) | 3 Months Ended |
Oct. 02, 2022 | |
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 2, 2022. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarter ended on September 30, 2022. 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 2, 2022 and September 26, 2021 both consisted of 13 weeks. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 ® For the Three Months Ended October 2, 2022 September 26, 2021 Third-party manufacturer $ 178,212 $ 193,297 Service 1,307 2,695 Net sales $ 179,519 $ 195,992 For the Three Months Ended October 2, 2022 September 26, 2021 REPREVE ® $ 49,179 $ 71,906 All other products and services 130,340 124,086 Net sales $ 179,519 $ 195,992 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Components | The following table and narrative presents the detail of UNIFI’s debt obligations. Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date October 2, 2022 October 2, 2022 July 3, 2022 ABL Revolver December 2023 4.5 % $ 54,500 $ 41,300 ABL Term Loan December 2023 4.1 % 62,500 65,000 Finance lease obligations (1) 3.6 % 7,554 7,261 Construction financing (2) 1.8 % 2,450 729 Total debt 127,004 114,290 Current ABL Term Loan (10,000 ) (10,000 ) Current portion of finance lease obligations (1,875 ) (1,726 ) Unamortized debt issuance costs (210 ) (255 ) Total long-term debt $ 114,919 $ 102,309 ( 1 ) Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027. ( 2 ) Refer to the discussion below under the subheading “ Construction Financing |
Scheduled Maturities of Outstanding Debt Obligations | The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations: Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter ABL Revolver $ — $ 54,500 $ — $ — $ — $ — ABL Term Loan 7,500 55,000 — — — — Finance lease obligations 1,400 1,926 1,843 1,406 890 89 Total (1) $ 8,900 $ 111,426 $ 1,843 $ 1,406 $ 890 $ 89 (1) Total reported excludes $2,450 of construction financing, described above |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes and Effective Tax Rate | The provision for income taxes and effective tax rate were as follows: For the Three Months Ended October 2, 2022 September 26, 2021 Provision for income taxes $ 2,734 $ 4,413 Effective tax rate (53.6 )% 33.7 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Stockholders Equity Note [Abstract] | |
Repurchases and Retirements of Common Stock | The following table summarizes UNIFI’s repurchases and retirements of its common stock under the 2018 SRP for the fiscal periods noted: Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal 2019 — $ — $ 50,000 Fiscal 2020 84 $ 23.72 $ 48,008 Fiscal 2021 — $ — $ 48,008 Fiscal 2022 617 $ 14.84 $ 38,859 Fiscal 2023 (through October 2, 2022) — $ — $ 38,859 Total 701 $ 15.90 $ 38,859 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Number of Securities Remaining Available for Future Issuance | The following table provides the number of awards remaining available for future issuance under the 2020 Plan as of October 2, 2022: Authorized under the 2020 Plan 850 Plus: Awards expired, forfeited or otherwise terminated unexercised 1 Less: Awards granted to employees (209 ) Less: Awards granted to non-employee directors (42 ) Available for issuance under the 2020 Plan 600 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax | The components of and the changes in accumulated other comprehensive loss, net of tax, as applicable, consist of the following: Foreign Currency Translation Adjustments Changes in Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at July 3, 2022 $ (59,605 ) $ — $ (59,605 ) Other comprehensive loss (5,908 ) — (5,908 ) Balance at October 2, 2022 $ (65,513 ) $ — $ (65,513 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 2, 2022 September 26, 2021 Net (loss) income $ (7,834 ) $ 8,680 Basic weighted average shares 18,001 18,515 Net potential common share equivalents — 482 Diluted weighted average shares 18,001 18,997 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 618 287 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. 02, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Payables | Related party payables for Salem Leasing Corporation consisted of the following: October 2, 2022 July 3, 2022 Accounts payable $ 396 $ 432 Operating lease obligations 732 811 Finance lease obligations 4,624 4,933 Total related party payables $ 5,752 $ 6,176 |
Schedule of Related Party Transactions | The following were the Company’s significant r elated party transactions: For the Three Months Ended Affiliated Entity Transaction Type October 2, 2022 September 26, 2021 Salem Leasing Corporation Payments for transportation equipment costs and finance lease debt service $ 1,199 $ 1,028 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Polyester, Nylon, International and Other Segments | Selected financial information is presented below: 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 For the Three Months Ended September 26, 2021 Americas Brazil Asia Total Net sales $ 110,826 $ 33,738 $ 51,428 $ 195,992 Cost of sales 101,640 23,798 44,457 169,895 Gross profit 9,186 9,940 6,971 26,097 Segment depreciation expense 5,075 383 — 5,458 Segment Profit $ 14,261 $ 10,323 $ 6,971 $ 31,555 |
Reconciliations of Segment Gross Profit to Consolidated (loss) Income Before Income Taxes | The reconciliations of segment gross profit to consolidated (loss) income before income taxes are as follows: For the Three Months Ended October 2, 2022 September 26, 2021 Americas $ (4,869 ) $ 9,186 Brazil 6,787 9,940 Asia 4,645 6,971 Segment gross profit 6,563 26,097 Selling, general and administrative expenses 11,773 12,670 Provision (benefit) for bad debts 174 (80 ) Other operating (income) expense, net (689 ) 256 Operating (loss) income (4,695 ) 13,251 Interest income (547 ) (258 ) Interest expense 1,247 696 Equity in earnings of unconsolidated affiliates (295 ) (280 ) (Loss) income before income taxes $ (5,100 ) $ 13,093 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 2, 2022 September 26, 2021 UNFA $ 7,401 $ 5,830 UNF 37 71 Total $ 7,438 $ 5,901 |
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 2, 2022 July 3, 2022 Current assets $ 10,243 $ 10,705 Non-current assets 576 605 Current liabilities 7,550 8,056 Non-current liabilities — — Shareholders’ equity and capital accounts 3,269 3,254 UNIFI’s portion of undistributed earnings 2,187 2,013 |
Income Statement Information [Member] | |
Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates | For the Three Months Ended October 2, 2022 September 26, 2021 Net sales $ 8,811 $ 6,150 Gross profit 489 544 Income from operations 25 127 Net income 15 127 Depreciation and amortization 28 33 Distributions received — — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 2, 2022 September 26, 2021 Interest, net of capitalized interest of $87 and $106, respectively $ 767 $ 644 Income tax payments, net 2,928 5,091 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Balance Sheet Information | Select balance sheet information is presented in the following table. October 2, 2022 July 3, 2022 Receivables, net: Customer receivables $ 86,183 $ 99,963 Allowance for uncollectible accounts (1,632 ) (1,498 ) Reserves for quality claims (746 ) (860 ) Net customer receivables 83,805 97,605 Banker's acceptance notes 5,792 7,849 Other receivables 1,158 1,111 Total receivables, net $ 90,755 $ 106,565 Inventories: Raw materials $ 65,609 $ 69,994 Supplies 11,963 11,953 Work in process 9,702 10,358 Finished goods 81,500 84,477 Gross inventories 168,774 176,782 Net realizable value adjustment (3,711 ) (3,487 ) Total inventories $ 165,063 $ 173,295 Other current assets: Recovery of non-income taxes, net $ 4,762 $ 6,770 Vendor deposits 4,508 6,910 Prepaid expenses and other 2,615 3,004 Value-added taxes receivable 1,963 1,987 Contract assets 488 285 Total other current assets $ 14,336 $ 18,956 Property, plant and equipment, net: Land $ 3,145 $ 3,160 Land improvements 16,443 16,443 Buildings and improvements 165,565 164,252 Assets under finance leases 11,498 10,921 Machinery and equipment 638,747 635,699 Computers, software and office equipment 25,630 25,348 Transportation equipment 10,447 10,591 Construction in progress 18,556 20,397 Gross property, plant and equipment 890,031 886,811 Less: accumulated depreciation (666,337 ) (666,569 ) Less: accumulated amortization – finance leases (4,264 ) (3,904 ) Total property, plant and equipment, net $ 219,430 $ 216,338 Other non-current assets: Grantor trust $ 2,523 $ 2,196 Investments in unconsolidated affiliates 2,246 2,072 Intangible assets, net 2,154 2,500 Other 2,017 2,020 Total other non-current assets $ 8,940 $ 8,788 Other current liabilities: Payroll and fringe benefits $ 10,830 $ 9,414 Utilities 2,010 2,287 Deferred revenue 1,716 1,694 Incentive compensation 559 3,916 Property taxes and other 3,306 2,495 Total other current liabilities $ 18,421 $ 19,806 Other long-term liabilities: Nonqualified deferred compensation plan obligation $ 2,395 $ 1,982 Uncertain tax positions 1,751 1,575 Other 539 892 Total other long-term liabilities $ 4,685 $ 4,449 |
Background - Additional Informa
Background - Additional Information (Details) | Oct. 02, 2022 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. 02, 2022 | Sep. 26, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 179,519 | $ 195,992 |
Third-Party Manufacturer [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 178,212 | 193,297 |
Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1,307 | 2,695 |
REPREVE Fiber [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 49,179 | 71,906 |
All Other Products and Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 130,340 | $ 124,086 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Components (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 02, 2022 | Jul. 03, 2022 | ||
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 7,554 | $ 7,261 | |
Construction financing | 2,450 | 729 | |
Total debt | 127,004 | 114,290 | |
Current portion of finance lease obligations | (1,875) | (1,726) | |
Unamortized debt issuance costs | (210) | (255) | |
Total long-term debt | $ 114,919 | 102,309 | |
Finance Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average | [1] | 3.60% | |
Construction Financing [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average | [2] | 1.80% | |
Construction financing | $ 2,450 | ||
ABL Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2023-12 | ||
Weighted Average | 4.50% | ||
Principal amount of revolver | $ 54,500 | 41,300 | |
ABL Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2023-12 | ||
Weighted Average | 4.10% | ||
Current ABL Term Loan | $ (10,000) | (10,000) | |
Principal amount of term loan | $ 62,500 | $ 65,000 | |
[1]Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027[2]Refer to the discussion below under the subheading “ Construction Financing |
Long-Term Debt - Long-Term De_2
Long-Term Debt - Long-Term Debt Components (Details) (Parenthetical) | 3 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Finance lease obligations, scheduled maturity start date | 2025-03 |
Finance lease obligations, scheduled maturity end date | 2027-11 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2022 USD ($) | Oct. 30, 2022 USD ($) | Sep. 02, 2022 USD ($) | May 31, 2021 Payment | Oct. 02, 2022 USD ($) | |
Construction Financing [Member] | |||||
Debt Instrument [Line Items] | |||||
Monthly payment | Payment | 60 | ||||
Interest rate during period | 4.40% | ||||
Long term debt including transitioned amount | $ 5,672,000 | ||||
Completed asset cost transferred to finance lease obligation | $ 3,222,000 | ||||
SOFR [Member] | Construction Financing [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
ABL Facility [Member] | Amended And Restated Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Credit agreement period | 60 days | ||||
Debt agreement maximum borrowing capacity | $ 16,500,000 | ||||
Principal amount of term loan | $ 10,000,000 | ||||
ABL Facility [Member] | Amended And Restated Credit Agreement | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum revolving percentage of credit agreement | 20% | ||||
Revolving percentage of outstanding principal amount | 12.50% | ||||
ABL Facility [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt agreement maximum borrowing capacity | $ 230,000,000 | $ 200,000,000 | |||
Principal amount of term loan | $ 115,000,000 | $ 100,000,000 | |||
Debt instrument maturity date | Oct. 28, 2027 | Dec. 18, 2023 | |||
ABL Facility [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 115,000,000 | $ 100,000,000 | |||
ABL Revolver [Member] | Maximum [Member] | SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
ABL Revolver [Member] | Maximum [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.25% | ||||
ABL Revolver [Member] | Maximum [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
ABL Revolver [Member] | Minimum [Member] | SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.75% | ||||
ABL Revolver [Member] | Minimum [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.75% | ||||
ABL Revolver [Member] | Minimum [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.75% |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) $ in Thousands | Oct. 02, 2022 USD ($) | |
Debt Instrument Redemption [Line Items] | ||
Fiscal 2023 | $ 8,900 | [1] |
Fiscal 2024 | 111,426 | [1] |
Fiscal 2025 | 1,843 | [1] |
Fiscal 2026 | 1,406 | [1] |
Fiscal 2027 | 890 | [1] |
Thereafter | 89 | [1] |
Finance Lease Obligations [Member] | ||
Debt Instrument Redemption [Line Items] | ||
Fiscal 2023 | 1,400 | |
Fiscal 2024 | 1,926 | |
Fiscal 2025 | 1,843 | |
Fiscal 2026 | 1,406 | |
Fiscal 2027 | 890 | |
Thereafter | 89 | |
ABL Revolver [Member] | ||
Debt Instrument Redemption [Line Items] | ||
Fiscal 2024 | 54,500 | |
ABL Term Loan [Member] | ||
Debt Instrument Redemption [Line Items] | ||
Fiscal 2023 | 7,500 | |
Fiscal 2024 | $ 55,000 | |
[1] Total reported excludes $2,450 of construction financing, described above |
Long-Term Debt - Scheduled Ma_2
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Debt Instrument Redemption [Line Items] | ||
Construction financing | $ 2,450 | $ 729 |
Construction Financing [Member] | ||
Debt Instrument Redemption [Line Items] | ||
Construction financing | $ 2,450 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes and Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 2,734 | $ 4,413 |
Effective tax rate | (53.60%) | 33.70% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | Oct. 31, 2018 USD ($) |
2018 Share Repurchase Program [Member] | |
Equity Class Of Treasury Stock [Line Items] | |
Share Repurchase Program, Authorized Amount | $ 50,000,000 |
Shareholders' Equity - Repurcha
Shareholders' Equity - Repurchases and Retirements of Common Stock (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Oct. 02, 2022 USD ($) $ / shares shares | |
Stockholders Equity [Line Items] | |
Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | shares | 701 |
Average Price Paid per Share | $ / shares | $ 15.90 |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 38,859 |
Fiscal 2019 [Member] | |
Stockholders Equity [Line Items] | |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 50,000 |
Fiscal 2020 [Member] | |
Stockholders Equity [Line Items] | |
Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | shares | 84 |
Average Price Paid per Share | $ / shares | $ 23.72 |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 48,008 |
Fiscal 2021 [Member] | |
Stockholders Equity [Line Items] | |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 48,008 |
Fiscal 2022 [Member] | |
Stockholders Equity [Line Items] | |
Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | shares | 617 |
Average Price Paid per Share | $ / shares | $ 14.84 |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 38,859 |
Fiscal 2023 [Member] | |
Stockholders Equity [Line Items] | |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 38,859 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | ||
Oct. 27, 2021 | Oct. 02, 2022 | Oct. 29, 2020 | |
2020 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Effective date | Oct. 29, 2020 | ||
Number of shares available for future issuance | 600 | 850 | |
Employee Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares reserved | 100 | ||
Percentage of discount from market value | 15% |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Number of Awards Remaining Available for Future Issuance (Details) - 2020 Plan [Member] - shares shares in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Oct. 29, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Authorized under the 2020 Plan | 850 | |
Available for issuance under the 2020 Plan | 600 | 850 |
Awards Expired, Forfeited or Otherwise Terminated Unexercised [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Plus: Awards expired, forfeited or otherwise terminated unexercised | 1 | |
Awards Granted to Employees [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Less: Awards granted to employees | (209) | |
Awards Granted to Non-Employee Directors [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Less: Awards granted to non-employee directors | (42) |
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. 02, 2022 | Sep. 26, 2021 | Jul. 03, 2022 | |
Fair Value Disclosures [Abstract] | |||
Fair value of the investment assets held by the grantor trust | $ 2,523,000 | $ 2,196,000 | |
Losses on investments held by the trust | 49,000 | ||
Outstanding derivative instruments | 0 | ||
Fair value assets and liabilities amount transfers into or out of the levels | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ (59,605) | |
Other comprehensive loss | (5,908) | $ (6,670) |
Ending balance | (65,513) | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (59,605) | |
Other comprehensive loss | (5,908) | |
Ending balance | $ (65,513) |
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. 02, 2022 | Sep. 26, 2021 | |
Earnings Per Share [Abstract] | ||
Net (loss) income | $ (7,834) | $ 8,680 |
Basic weighted average shares | 18,001 | 18,515 |
Net potential common share equivalents | 482 | |
Diluted weighted average shares | 18,001 | 18,997 |
Excluded from the calculation of common share equivalents: | ||
Anti-dilutive common share equivalents (in shares) | 618 | 287 |
Unvested stock options that vest upon achievement of certain market conditions (in shares) | 333 | 333 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Apr. 10, 2019 | Sep. 30, 2004 |
Commitments And Contingencies Disclosure [Abstract] | ||
The term of a former ground lease | 99 years | |
Net monitoring and reporting costs received | $ 180 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Oct. 02, 2022 | Jul. 03, 2022 |
Related Party Transactions [Abstract] | ||
Related party receivables | $ 0 | $ 0 |
Related Party Transactions - Re
Related Party Transactions - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Related Party Transaction [Line Items] | ||
Finance lease obligations | $ 7,554 | $ 7,261 |
Salem Leasing Corporation | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 396 | 432 |
Operating lease obligations | 732 | 811 |
Finance lease obligations | 4,624 | 4,933 |
Total related party payables | $ 5,752 | $ 6,176 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Salem Leasing Corporation | ||
Related Party Transaction [Line Items] | ||
Expenses with related party | $ 1,199 | $ 1,028 |
Business Segment Information -
Business Segment Information - Additional Information (Details) | 3 Months Ended |
Oct. 02, 2022 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. 02, 2022 | Sep. 26, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 179,519 | $ 195,992 |
Cost of sales | 172,956 | 169,895 |
Gross profit | 6,563 | 26,097 |
Segment depreciation expense | 5,950 | 5,458 |
Segment Profit | 12,513 | 31,555 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 107,644 | 110,826 |
Cost of sales | 112,513 | 101,640 |
Gross profit | (4,869) | 9,186 |
Segment depreciation expense | 5,480 | 5,075 |
Segment Profit | 611 | 14,261 |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 38,879 | 33,738 |
Cost of sales | 32,092 | 23,798 |
Gross profit | 6,787 | 9,940 |
Segment depreciation expense | 470 | 383 |
Segment Profit | 7,257 | 10,323 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 32,996 | 51,428 |
Cost of sales | 28,351 | 44,457 |
Gross profit | 4,645 | 6,971 |
Segment Profit | $ 4,645 | $ 6,971 |
Business Segment Information _3
Business Segment Information - Reconciliations of Segment Gross Profit to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | $ 6,563 | $ 26,097 |
Selling, general and administrative expenses | 11,773 | 12,670 |
Provision (benefit) for bad debts | 174 | (80) |
Other operating (income) expense, net | (689) | 256 |
Operating (loss) income | (4,695) | 13,251 |
Interest income | (547) | (258) |
Interest expense | 1,247 | 696 |
Equity in earnings of unconsolidated affiliates | (295) | (280) |
(Loss) income before income taxes | (5,100) | 13,093 |
Americas [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | (4,869) | 9,186 |
Brazil [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | 6,787 | 9,940 |
Asia [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | $ 4,645 | $ 6,971 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates - Additional Information (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 2,246 | $ 2,072 |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Purchase commitment, remaining minimum amount committed | 1,180 | |
Accounts payable | $ 5,190 | $ 5,565 |
Percentage of current and total assets and total liabilities counted for by equity method investments | 3% | |
Equity method investments | $ 2,246 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Schedule of Raw Material Purchases under Supply Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 7,401 | $ 5,830 |
UNF [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | 37 | 71 |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 7,438 | $ 5,901 |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates - Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 | Sep. 26, 2021 | Jun. 27, 2021 |
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | $ 318,786 | $ 352,266 | ||
Current liabilities | 78,724 | 108,792 | ||
Shareholders’ equity and capital accounts | 348,299 | 361,449 | $ 360,997 | $ 358,419 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | 10,243 | 10,705 | ||
Non-current assets | 576 | 605 | ||
Current liabilities | 7,550 | 8,056 | ||
Shareholders’ equity and capital accounts | 3,269 | 3,254 | ||
UNIFI’s portion of undistributed earnings | $ 2,187 | $ 2,013 |
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. 02, 2022 | Sep. 26, 2021 | |
Schedule Of Equity Method Investments [Line Items] | ||
Gross profit | $ 6,563 | $ 26,097 |
Net income (loss) | (7,834) | 8,680 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | 8,811 | 6,150 |
Gross profit | 489 | 544 |
Income from operations | 25 | 127 |
Net income (loss) | 15 | 127 |
Depreciation and amortization | $ 28 | $ 33 |
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. 02, 2022 | Sep. 26, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest, net of capitalized interest of $87 and $106, respectively | $ 767 | $ 644 |
Income tax payments, net | $ 2,928 | $ 5,091 |
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. 02, 2022 | Sep. 26, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest capitalized | $ 87 | $ 106 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 02, 2022 | Sep. 26, 2021 | Jul. 03, 2022 | Jun. 27, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||||
Income tax payment related to recovery of non-income taxes | $ 2,125 | |||
Capital expenditures incurred but not yet paid | $ 1,449 | 1,524 | $ 2,456 | $ 2,080 |
Non cash activity relating to finance leases | $ 729 | $ 0 |
Other Financial Data - Schedule
Other Financial Data - Schedule of Balance Sheet Information (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Receivables, net: | ||
Customer receivables | $ 86,183 | $ 99,963 |
Allowance for uncollectible accounts | (1,632) | (1,498) |
Reserves for quality claims | (746) | (860) |
Net customer receivables | 83,805 | 97,605 |
Banker's acceptance notes | 5,792 | 7,849 |
Other receivables | 1,158 | 1,111 |
Total receivables, net | 90,755 | 106,565 |
Inventories: | ||
Raw materials | 65,609 | 69,994 |
Supplies | 11,963 | 11,953 |
Work in process | 9,702 | 10,358 |
Finished goods | 81,500 | 84,477 |
Gross inventories | 168,774 | 176,782 |
Net realizable value adjustment | (3,711) | (3,487) |
Total inventories | 165,063 | 173,295 |
Other current assets: | ||
Recovery of non-income taxes, net | 4,762 | 6,770 |
Vendor deposits | 4,508 | 6,910 |
Prepaid expenses and other | 2,615 | 3,004 |
Value-added taxes receivable | 1,963 | 1,987 |
Contract assets | 488 | 285 |
Total other current assets | 14,336 | 18,956 |
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 890,031 | 886,811 |
Less: accumulated depreciation | (666,337) | (666,569) |
Less: accumulated amortization – finance leases | (4,264) | (3,904) |
Total property, plant and equipment, net | 219,430 | 216,338 |
Other non-current assets: | ||
Grantor trust | 2,523 | 2,196 |
Investments in unconsolidated affiliates | 2,246 | 2,072 |
Intangible assets, net | 2,154 | 2,500 |
Other | 2,017 | 2,020 |
Total other non-current assets | 8,940 | 8,788 |
Other current liabilities: | ||
Payroll and fringe benefits | 10,830 | 9,414 |
Utilities | 2,010 | 2,287 |
Deferred revenue | 1,716 | 1,694 |
Incentive compensation | 559 | 3,916 |
Property taxes and other | 3,306 | 2,495 |
Total other current liabilities | 18,421 | 19,806 |
Other long-term liabilities: | ||
Nonqualified deferred compensation plan obligation | 2,395 | 1,982 |
Uncertain tax positions | 1,751 | 1,575 |
Other | 539 | 892 |
Total other long-term liabilities | 4,685 | 4,449 |
Land | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 3,145 | 3,160 |
Land Improvements | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 16,443 | 16,443 |
Building and Building Improvements | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 165,565 | 164,252 |
Assets Held Under Finance Leases | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 11,498 | 10,921 |
Machinery and Equipment | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 638,747 | 635,699 |
Computers Software And Office Equipment | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 25,630 | 25,348 |
Transportation Equipment | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | 10,447 | 10,591 |
Asset under Construction | ||
Property, plant and equipment, net: | ||
Gross property, plant and equipment | $ 18,556 | $ 20,397 |