A.J. Eaker VP, Finance and IR
Albert Carey Executive Chairman
Edmund Ingle CEO & Director
Craig Creaturo EVP & CFO
Thomas Caudle President, COO & Director
Lee Jagoda CJS Securities
Marco Rodriguez Stonegate Capital Markets
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the Q4 2020 Unifi, Inc. Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, A.J. Eaker, Vice President of Finance. you. Thank ahead. go Please

A.J. Eaker

and everyone. operator, good you, morning, Thank

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

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

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

call speakers advised over impacted. in be call the multiple Carey. be are today consideration turn for may measures, -- now that safety utilizing this please lines. of Al Lastly, I'm sorry, I COVID-XX in to the telephone will Efficiency

Albert Carey

a I'm for in Slide going comments. backdrop -- morning, going my and the bit remarks, to for a X thanks good my I'm use us. of everyone, Well, presentation as joining to for

the is on X in the up quarters quarter. beginning we a coincided we shutdowns good began market our share model. on business, cost we finally progress by Those economic made successfully. at anti-dumping -- And we our our little fiscal measures customers focused that big So bit to last a to to have the from and the materialize. and extremely progressing bit Asian North continued you that XXXX I'll well growth asset-light COVID-XX, the identified reduction we continued happened terrific goals, summer. quite the began REPREVE which regulations first prior And they about very telling our to which X that about we feel and in since due were were spoke of their momentum of priorities America start sales fourth from ESG to pick were very

the automotive it at crisis, the So either we into a going operations and at the that's status QX that customers our apparel And and in drop-off negatively significant corresponding the pandemic. sales, And was or income and impacted significantly saw curtailed down was beginning that operating time. shut well. time then the of as

inventory reduced sale share quarter a down cash us significantly joint the The significant down demand, those. a of took allowed Parkdale low of levels. generated during debt. of and job So of control. And the on, going generation. that they we good prioritizing also with a did let's of management team our task decided, what protecting liquidity both with cash think took on And and of I all our our very team and venture our We operating our to control can part we cost we pay our

So ends. stronger a for set COVID us all are the company becoming going up these to moves, once believe, of I

goes the March. hard, top it's have going seen April May the far have to line things was difficult Now weeks was line going as top sequential to low we're get single profit to because come April, another of improvement. forecast first able return while the than better seen and momentum be of But uncertainties to that every sales month were July that pandemic. and we had hit June improved I'll confident since the from we is point, very to we're May, that the improvement accurately good the summer. the strong since very X we've the feel are X thing how The at last back developed say even best the of the about last to August But as XXXX. I momentum first through and Unifi team of fast quarters

And at people. be Craig Unifi, really new And new XX-year through you a today. is has in has Tom experience a he's wisdom exemplary us, to to an and on on, Tom a all change. career a us not of it's And answering but retiring is questions, Unifi, background applauded CEO. next Ingle Caudle And advantage of went on after Eddie June as bit joined at in we and going year. the period handy Unifi like remember, to already. this will had time with which its he's by In XX-year phone September, coming short chance doing XX quite with CEO. excellent of some the us He's all He He been some get may on return of Creaturo has take but job Some an we to for hang we retiring. for a joining his our our of have time. we

we're CEO, for of some over very it And materials. the future. to well you the Ingle, turn believe Eddie So through I'll our I to take now positioned new

Edmund Ingle

leaders for like CEO of and It's friends and coming with Tom and been time back well back very at grateful I'm hello, handover quickly everybody. unusual office, by support and And as that I obviously, have an so the organization Unifi into be and pivotal I'm to Thanks, home. an time Al, that, and of I've already the know company. reins me very the the rejoining colleagues. a for his settled supportive the almost for in my continued a the reconnected such excited I've company. in the short

leading for people, last in because why innovative the by basically, I returned the more Over months, seeking I And return? its innovative, sustainable we the waste Unifi, at and Unifi, in here of core signature today, the of sustainability And was Unifi things, is asked resources, and us growing it their its of than I of solutions. growth. is meet Unifi, cornerstone to around Among global -- future other believe choice Unifi's do brands everything At eliminate to are our introducing performance REPREVE. in tomorrow. ever, we'll goals. belief process And innovative fiber, the my I reach to efforts the makes of our the world sustainability to and to value steadfast in couple wasted culture our did of of heavily our leaving mindset involved who partner for to many own invest I'm expanding in people, take prior and pride good we the continue

much uncertainty, this while created of adapt. core has pandemic one confident I'm Unifi's that ability and Now strengths, in the is to

XX out have the again, company, flexible, I've adjusted I stronger. and are and very that every we people shows in because nimble people our And markets market with time spent is learned, seen after to resiliency the how like proven said, changing rise history their come dynamics. And crisis, our Time to evolving it people adapt. and adjust the I've and difficult Over occasion. to our to years have and every instance circumstances

will which pandemic QX that in XX% the Now you resulted describe a detail Craig in sales. can in from see drop our next, results, COVID-XX

a However, we this are there why. as see and reasons many temporary situation,

A the X% April and ignoring certain and XXXX pandemic but beat back XXXX the First, May, new new in in the end example prime and their is markets the June in are to ticket around normal sales, this consumers sales which down items. are the in U.S. rapidly cash car of reserves adapting were big sales. to utilizing XX% bounce buy June

as then to So during our automobile we will signs of grew a course, And and inventories these to this dropped continue industry, result that the monitor plants. the the developments hope are quickly closure we of stabilization customers. but of levels of period, in these with normal

on automotive thought possible. of markets, market. by new performance for we our X most And renewed experienced new demand the into yarns we've the In to a July or company increase this with note in into this arduous seeing into in deliver automobile surprisingly This crisis, vehicle as industry a innovative made is have REPREVE, that Through a with I'm some anybody much tries can in been pounds differentiate in sold themselves that auto already ever disruption very translating our to performance sustainable market. things and able brands plus benefit. change Unifi addition, to has our is shown pleased requests static electric market, innovation the each than that in faster interest caused driven the REPREVE offerings much yarns, incorporated by new where of in the are an the and


to I'd consumers The products, online that like record brands second buy make wear, ways retailers reporting new the with comfort apparel especially sales. sports point most and in to are is and finding

financial the too, quarter. a sports results brands leading the difficult of from had seen apparel have they, We and June that

El we sentiment However, that our around in sales apparel American reopened the Salvador that from operations facility. volume. and again At there beginning of the branded once is servicing rapid began Central restarted July, a recovery markets of

brands assuming back the that fill to beginning beginning China And and gets the is chains levels. the way the saw their towards also both as demand Brazil We consumer claw business. by to in back we're driven basically this supply to pre-COVID

a in PPE, want by or of point U.S., government. there's PPE. personal a to U.S. protective drive In of which is I the third to build was the make led equipment stockpile of the some The area

private of by the it also was much driven However, sector.

bids were up has of of in a is speak. programs, the Central X% Polyester public While been impacted programs, pre-COVID. some as XX% more the that to there which benefit production the bit many XX% severely to Nylon From customers coming ours of we a of you just form commercial focus in period, are government of April are being of to from And expecting cycle, The market estimated business. end programs these to is offered should, an PPE round than the business estimate revenues our we are to Unifi. point or July private an North our our coming was X% from color, we and give Nylon to additional first that Fourth to America win turn, business. the which

Many see reusable masks bright have we market were the PPE protective supply However, new we using that and Nylon, did made the markets. the been to in in market spots some also. able sold of quickly

in business as disappeared. This by footwear surprise and an in considerably offset during down that markets. quarter weddings benefit reduced, hosiery July, covered our the ladies some gatherings slowed the the Nylon apparel And medical our some as hosiery for markets go comes business wear yarns of was in canceled have into. were and saw many that also It our textured We no sells Nylon sock increase Nylon ladies opportunities seen to we of increase and into. in part slight a social markets the

say as would has Now apparel starved some Nylon looking the declined, back years, Nylon and the innovation. several market of market been

a that and growing skin REPREVE point in the next there's an consumer is make both I Asia. last And to remembering Nylon indication brands U.S. our in ideal the that experience. interest softness The consumer an want However, cover of Nylon and is product. in around and offering, strength to yarns of this the I the them believe

X of most their of the health that For stood a employees our when were months, environments publicly how getting not companies, April letting impact team near by different customers. to I'm customers June the that like remains And And delivered fearful beyond most our restricted. of the I'd we business, them. visibility to and distracted term, X none. our the them. treated people being was next the through for experience for own Like customer period, and we that, second equally customers, their our proud our our thank their to

published liquidity fiscal as we be on Visibility by ability. out, strong have possible, it see months, volumes the on to QX a do reason as profitability naturally, ensuring recent rate uncertainties. the could with costs has to uptick have return the event. the of but already for of the uphill to turn and next through run We some that from this And are for pointed and we well Al available these demand we revenue I'll X the our XXXX. X weather through But be QX sheet as in period is Craig. with controlling And reduced what call year, a our some we within normal sheet reason to not in ample balance vaccine we the the to steady as our is volumes protect focused brands, narrow. a belief where that and us, the balance based have seeing of why should expect reports our you. we're pre-COVID to that, no terrible climb move the end slip fiscal right Thank should for We levels over along

Craig Creaturo

Thank I the excited Eddie Like together. team, rest you, to the of have the Eddie, and good and everyone. growing forward to at morning, business Unifi look am

apparel. for Eddie through As cost provided Al environment fixed globe X, forecasted this XXXX, overview a add impact especially fiscal of pandemic its in stifle In strong few our had COVID-XX of noted, U.S. our like and to in we great May proved absorption, textile around the I a has to challenged significant demand, as but would our just operations on and lower the demand and a call industry Asia XXXX, Eddie thoughts. agility. model and by are and the

year up in of which lower income material activity efforts and a included XXXX signs even recent an generated our quickly quarter to significant net cost America our the XXXX. debt headwinds, actions. first from drove pandemic. XXXX a on divestiture both further the fourth was down be success demand better year dropped Despite in the with fiscal cash improvements XXXX, perspective shaping we fiscal We run a Parkdale trade environment were flows and the and SG&A rate, economic the operating then great until raw of Our COVID-XX due statement Fiscal over fiscal from business. the focused to pandemic of full

our reflected described earnings and the call, last this this during financial is in results. quarter's in Although it fourth we conference transaction closed quarter

approximately revolver. our transaction debt paydown. directly of debt this synthetic in from briefly we received liquidity the through to fibers, our Nylon additional this X. by proceeds The us million and With can transaction net our amount while and borrowings applied in efforts half and walk $XX improving in the that QX, on ABL opportunities recycled proceeds Slide same full Let's providing position needs pandemic. expanding and our both We completed, on Polyester all on cash, we allowed during transaction short-term to flexibility and eliminate leadership for this long-term focus

$XX held our pandemic. the of in operations. XXXX, of Parkdale fiscal we ceased XX, on flow weathering Parkdale relationship continue million has million, venture approximately This other business joint X, On of our Slide many our June strong years, Incorporated While After with the position. of have to our Incorporated. Parkdale will of equivalents to position below liquidity substantially, were position XX% surrounding revolver reduced to to have after end from fiscal end XXXX. an a XX I total to with interactions uncertainty liquidity or was of revolver excess in debt concessions Compared $XXX any level years, This or availability following: on and cash XXXX, provides $XX operating provide has improved a $XX at $XXX and million. changes cash in the results fell update our liquidity by debt rest This balance million; and our noted X% principal million; domestic generation us below debt the and zero; all repayment covenants was by improved the rose million; net divestiture requested economic terms. the the unseen for cash $XX as reserves we cash not the ABL

decline Consolidated to sales XX.X% a costs. The QX fourth Slide decline and mix segment sales net of volume, fiscal million the material of performance result which X $XXX.X of related Polyester decline Polyester from price to follows segment lower of a Now sales experienced including products the year-over-year The to the for raw XX.X%, review pandemic. entirely textile XX%. fiscal sales average Asia declined and decrease, million selling quarter. for the QX a primarily stifle in experienced XX.X%, attributable decline a XX.X% primarily almost for in of $XX.X I'll attributable lower revenue demand to XXXX to was net presentation volume. price turn decline a XXXX, of of revenue

a fourth with on strong had XXXX it mix the generating exchange XX.X%. raw Brazil pressures, heavy along driving benefit Polyester segment programs activity pull-through decline foreign economic However, settlement during of sales during quarter, in experienced stark June despite an the a lower revenue overall costs. The material decline quarter,

We and segment the many decline. experienced from revenue and mask fabric the Polyester the XX.X% benefited production customers. segment Nylon segment Lastly, Nylon note from both that a gown face

this weak The the the demonstrated a fixed for the and to of $X.X took to that segment Polyester showed we though to demand million. Therefore, discuss U.S. longer contributing gross actions quickly during can a in apparel. XXXX $X.X The and Even be loss of unit decline compared not agility in strength The segment fourth the largest Consolidated performance. COVID-XX to in loss Polyester just from inventory. Asia significant quarter. the and capital-intensive volume quarter, cost X, PPE operations a in rate strength profit. offset permanent On allocated accordingly as cost as of Brazil normal reported segment. volume region, of production well million period. in segment the Asia including human curtailments the was the production power quarter segment at However, not full asset-intensive and rolling Conversely, was to When numerous gross Brazil. increased QX, of could Slide the demand, in our most temporary led per a absorption overcome higher experienced it sales gross declined profit most in financial levels which U.S. global we in impacted costs completed positive these enough some gross to overall was impact as and reductions, will fiscal the actions decline production no due is we reductions.

a Although segment experienced sales $X.X sales reduced, segment significantly pull-through. the with gross million. filament of achieved richer volumes were Asia profit mix The greater

local decreased profit fell demand with For segment, margins the gross Brazil the was and million. as $X.X economy,

absorption to volumes million. resulting transition fiber for the sales discuss Nylon back loss for similarly gross low Polyester to impacted X, allow I a assumptions was Slide cost adequate segment the sales segment REPREVE did in as fixed on Lastly, $X.X of the in QX the with on our to call XXXX will Eddie XX. reporting fiscal pass to now along our not Slide

Edmund Ingle

the Thanks, on REPREVE a with of so it great deal spend Craig. and how sustainability educating today. everyone value goals We time present of aligns many

transitioning of supply was integral REPREVE more our REPREVE, better and the for as to brand, reporting proportion establishing I Unifi sales premium sales team a effort the But earlier, align a reporting and value-added a a of revenue. than at ago the consolidated to spent growth of PVA the percentage its the or stated As much as prior with proportion chain in reporting life to revenue time an in sales we growth. of pre-fiber my of of from consolidated decade bringing are percentage

sales using a and a end apparel textile of REPREVE pre-fiber current long As provides our against PVA a percentages. historical view goal fibers you of better markets. of tracking know, sales and growing Slide X Unifi other allows global leader. share And the the for pre-fiber has been and reporting

turning Slide Now of the presentation. to XX

in hold. the rate following. the pressure in driven XXXX to Barring business As immediate that takes place. increase the for be in have of core it anticipate Certainly, profitability results underlying longer-term important pandemic we most our to to near term working end exhibit in line on a given that do is sales rise significant recovery with improvement naturally and sequential Quarterly our we medium fiscal of markets. believe should the the and fundamentals as resurge will slow shutdowns capital in no We remain by we government markets. drive that activities, look recovery quarter-over-quarter our to growth end our or ahead, understand

the sustainability trends current is as accountability. will past demands believe more and here Looking term, the long we generation stay and pandemic accelerate these environment a to younger

new globally REPREVE. the and that the have grow goals. to brands, conversations daily and companies We new benefits world's expect the already work progressive existing of we REPREVE customers and We the immediacy to meet with to support recognize of continue situation leading as sustainability potential

our these I'm Craig and growth As this mentioned, in an and should incredibly growth provide a the to period cost for sum place look at volumes trade recent of the achieving forward of and should to in by absorption fuel end concepts leading benefits extended time. proud towards total its currently the are of believe sales We U.S. actions to fiscal be return company back XXXX. Unifi potential. to

team, the looking questions. right the the and that advantage now taking and we all to of us. place Thank shareholder right you. long-term open lie in have lineup to drive for forward will growth I'm focus footprint the for value. opportunities right We ahead And the of Randy,


[Operator from Securities. Instructions]. Dan your CJS question the Moore And first of line comes with

Lee Jagoda

It's Dan. actually for Jagoda Lee

So May cadence the in now How and a through pre-pandemic again, June just Asia April, And July walk on side the Polyester just July? of we standpoint on in just you levels maybe declines that. then and and volume us saw can versus, are far on following improvement maybe starting, volume you and into the the side, below from up both prior?

Edmund Ingle

Lee. you. I'll take Thank question, Yes, that

did seen of May, in as in improved. In it we shortfall we course, was Al it month. significant see And improved. script, we've And said an in in That our As his July. into April. improvement worst revenue June, went

able expected. business And board. can out. to X much down we the as XX%, and a normal April, but to, So levels, reason pointed than Craig we'd wouldn't And back I I'll say start simple We're been with regions the the for bounce because that that seeing closer exchange every environment I supply some of the the to traders, most, back being opened levels and was scared pandemic, to normal in there any sell into. point returned Brazil when And profit that demand month significant region. the in that than a volatility since we're it's other volumes. that off past it's the improvement. back locally gross across seen the business were we've and to that's retail why Asia, you increase In saw the much seeing there we occurred And the in particularly rates stronger China, has our normal. up.

they Of to parts we in And they but better course, of are that June region coming U.S., significantly that down, July than business. is also back. X are turn also. When the I have

We have we the America. U.S. and Central have

my in out of increase said facility huge America shut July I of Central And there. it's period. saw May, down April, Central Central throughout much As -- revenues a driven in in we statement, our been America. America And was from our June the

there, supply filled to We chain our yarn to as Central up the opening needed brands a the the But again saw big demand from up America be been have shipping plant and back. the down opening some down for with U.S. you El Salvador bounce back power

say, slightly August So much September, into we that I and to your exact don't but than yet would an certainly, give going number. I you. August, visibility positive. hard if it's really question. -- have we Thank in expect But better July to you answers hope be

Lee Jagoda

helpful. very It's

that. on and following -- up just Just

or stay to breakeven need that of back EBITDA than you Assuming is around the does August let's to ease that guess, better fixed in incrementally July shape September above? get for Or to enough assume and volume volumes those costs? I level, more absorb improvement of August do still you up that discussion,

Craig Creaturo

Craig. is this Lee,

Eddie up probably well. think framed I it pretty

for I weeks. next think we see ahead few us what's the of

We all wildcard continuing a but is inventory. obviously, the and them and combination put will or both being of those we like them some the the strides But to which, also was September, as release absorb completed, feel significant signs that able point the quarter costs into make additional today, the positively. think we the relative I we again, mentioned, in in not to again, in forward just taking on lower sales. to of, script definitely

least it these progress. So the lower through we of make how last improvement will we where year. will figuring calendar at really through come will we And is. and good that think But end we this out of think I the FY month an shake 'XX -- down quarter, believe, out at over the quarter continue of to rates, definitely of that QX the

Lee Jagoda

and enough. Fair I'll back in here. One for more Okay. hop me,

from a than strategic perspective. sense pandemic of us get Just to kind things to what gets high-level better some the Once Eddie, differently better more list do that back this to a of on and of of business? or the are plan you past your we things normalcy, predecessors make thing

Edmund Ingle

that question. for Thanks

at the answer that. a a in describe a do first does to like I different by, fantastic numbers. of am me X a Let I about talk but that I brought I mindset. points. the who telling you job numbers back I'm am. I'd about growth on guy, all, maintain business. bit not here Craig have wasn't to this call to

to or the down the find. may going company And road. see opportunities coming M&A will over will of you opportunities grow. to we're first of stress, grow, all, certainly, we take those to I'd that's be some there organic, the look So opportunity the going a we are years any like to as much But be we to future,

core The Unifi. that is second innovation of the at point is

value giving it investing people be we're We And in in I'd is And technical to all make like going to X not and to of be our but that all give commodities, me for will sure difference. we're solutions make profitable tomorrow, true. say a X technical our want in is business. people want we the and we're in grow, company, full mindset thing, going coming with our point it company. to growth, at personally because And on our do my fits certainly focused they a and to last to people We're things, for are those this to We we customers. development. is And to years Thank development, that to a creation grow the the team our people And like the good Unifi. is way, their have. customers, you. growing as business Companies potential. that. seen through and We make reach We've solutions growing curious do company. innovation, say value that we in the


Instructions]. [Operator

Capital. question next line from Rodriguez the of Marco comes Stonegate with Your

Marco Rodriguez

I quarter. here out was about that can last taken the of wondering in if reduced bit cost maybe you talk a this little some you strategically guys have

you be If out would can helpful. segment talk costs kind came maybe through where by of those

Craig Creaturo

Sure. Good question, Marco.

really I of think things. was combination several a it

I both out. needed be think some that there to costs were temporary taken

able we to were outages about, As talked some dictated rolling do various customer at sites. demand as we

We that at. the permanent down pull just need able level to protect by of that feel line spending. of flexible group, shut group sites be for We to things really, to to and regard. by to to have that to well, we A balance reduce doing line as well. we and some off to more sheet it's -- discretionary in able And take we did headcount obviously, strategically, reductions completely being reductions like needed a piece, not as have benefit the here that discretionary workforce our that management but make department, was we We business by were necessary our the lot were piece do And think in of that about any the the that to it for way. U.S. credit department really only not did by

naturally people traveling as happened of weren't Some much. those because

going a an spending I we to a ask the and bring discretionary during capital for finally, the 'XX, also FY capital having to we the -- $XX item. we for ended Some us of comments would than year know And Tom really not from that had lot help focused expense answer, only of in is around. FY safety expense and -- them definitely But that first took us we second effort And some a this press the add I in quarter. say, I'm needed kept then direct we It -- Caudle took more We up our better we Marco. just half million. also -- for things XXXX as that some in items. more but of projected areas more release to did did we to, rather that that to invest approach those maintenance half. on the conservative not completed nicely the sets it's noted not

So go ahead, Tom.

Thomas Caudle

will as areas and running and our be pandemic needs. were through U.S. proud meet able careful regard. feel were we did the in to we in this company we to that our across did our significant of our we customer fortunate throughout in costs here took our efforts. But Marco, service that customers customers ability We very -- were able well not maintain here all of the to service that impair we to out the situation all fourth our very And we facilities fact quarter. of these

Marco Rodriguez

you the for is having extract pricing Are your more wondering, looking? a given just the to was the customers. Got that is they obviously, it starting just pressures Presumably, very trying it. between of Very clothing fact But kind retailers, wondering a on of helpful. conversation everybody of guys. you're discuss based And with the the pricing maybe would helpful. lot can how if pausing retail kind you that situation Or a around little for are come spending. pricing I places sounds guys? important their the dynamics brick-and-mortar some are Just it Obviously, any work obviously quarter -- back with your like to were people the you some was be you're maybe willing shut. were of them because And from color sort to bit of they difficult dynamics clients? you then involved, of

Edmund Ingle

you of down that the up up It in the is of question. And I'll It the Much U.S. the Thank coming -- China opened in interesting. of April, June started shut retail was in open course, opening to states environment before Yes, many during back call. July. for take much started that. Brazil period May. And

opened time, said same in did, and script, also. the to sort of on question the So back shop more to as the the the consume opportunities But that at pricing. we up us of as I -- of going some all online,

happen. been this of each a really to environment. had now. have really, pressure not going sure other right actually lot pricing it's supportive I'm have People We in And of

everybody's Tom they else. has the there get been than focused now, pricing that pressure issue they right But need we on -- right to more they Just anything it, And as them. need, said, making sure the when an product we've been support Thank not now. you.

Marco Rodriguez

if of REPREVE? you've marketing prior things of your and do there a looking -- maybe of when mean, sales I that But terms in And something heard little any sort I you Eddie, it. been bit understand outlook. just answer differently your for -- at question then there time, to talk marketing to and your that a the from maybe, background, about can I your Got you might be are position maybe

Edmund Ingle

for take Yes. add if And And to the Textile and for needed up We've in can a solution more had one that and on it the and some layer so with a over can they the actually further, that their in expect on the and of much circular come Thanks into defensibility the another I quite the product for up the Program last developing provide solutions back the will We've question. things will now. the brands. it develop couple time. another of REPREVE of system. is also it's brand economy. that circular we brands, Takeback been put invest more solutions, you journey And for see veracity REPREVE months, keeps coming for us decade around of

I that So you'll that. but hear into detail, much down more your that answers I hope expect question. go the road. about too won't

Marco Rodriguez

question. And last helpful. quick That's Yes.

walk cash through from Just for then from cash can flow? kind a us flow for maybe and you your ops 'XX, flow cash expectation fiscal perspective free of assumptions and maybe

Craig Creaturo


-- Marco, the are especially we out business, the we think I XXXX. we take of half second in FY of of realize a lot that did cost

customers in working investment capital the accounts will specifically our recovery in We our receivable. to fund need by of and increasing

that sales grow the to expect as we So growth returns.

We keeping our into to lot, 'XX. enter are at And continuing to some think FY yet inventory and keep up our focus level. levels room a we achieved we as and improve around we better a we've have vigor

position quarters, to period. period have. for it's of need overall, FY like the we to nothing 'XX, flow be with careful early I next like working take It's borrowed I continue advantage investments, that be to that that that. able to we us at least, it looks least horizon, as capital few We should think, see we think and bumps -- don't where any period are at that revolver. least are we out a have. having going we credit broadly view, sea the be liquidity we would it or cash a least at near-term a good the we're speaking, expecting into on We look at the our additional And to on in like keep we

reasonable can think very working expect I capital [Technical 'XX to FY the operations, $XX capital. at keeping very, We're generate So to a you continue generating from cash good of in level. flow Difficulty] us with million spending

that of the And all FY 'XX. things 'XX, FY those good looking -- we're some factors FY into in should 'XX good of have the and FY after trajectory go expecting should at did we 'XX 'XX. should some we think should I -- we we we So as exited continue we that that continue


further turn over for back [Operator to remarks. management call time, questions. Instructions]. are there And this I would At the no now to like closing

A.J. Eaker

like With further today. thank for Randy. no everyone to you, participating we Thank questions, would

ends for follow earnings that of Eastern close, next is conference morning, joining Tuesday, XX, you quarter XX, next fiscal at XXXX, -- XXXX, September for to release XX, Monday, tentatively October XXXX, October a with for call scheduled call. after Thank the Our the the Time. September first X:XX market today's


call. conference today's concludes This

You may disconnect. now