- Unisync (UNI) announced its financial results for the third quarter ended June 30, 2022
- Revenue for the three months ended June 30, 2022 of $24.6 million rose by $4.0 million or 19 per cent from the three months ended June 30, 2021
- The company continues to experience an improvement in demand from its customer base
- Unisync is a well-known and respected managed service provider of custom corporate image apparel
- Unisync Corp. (UNI) is up 1.66 per cent, trading at C$2.45 per share at 3:34 pm ET
Unisync (UNI) announced its financial results for the third quarter ended June 30, 2022.
Results for Q3 2022 versus Q3 2021
- Revenue for the three months ended June 30, 2022 of $24.6 million rose 19 per cent from the three months ended June 30, 2021
- Gross profit of $4.5 million was up $1.0 million from the same quarter of fiscal 2021. The gross profit margin improved to 18.1 per cent of revenue from 16.7 per cent
- UGL segment recorded a gross profit of $3.9 million or 18 per cent of segment revenue in Q3 2022 compared to $2.6 million or 16 per cent in Q3 of 2021
- Peerless recorded gross profit revenue of $0.6 million against $0.9 million of revenue in Q3 of the prior fiscal year
- At $4.4 million, total general and administrative expenses for Q3 2022 were up a modest $0.1 million or 3 per cent
- Net loss of $0.5 million before tax in Q3 2022 declined from a net loss before tax of $1.4 million in the same quarter last year
Although a significant improvement over the $0.3 million recorded for Q3 2021, adjusted EBITDA of $1.2 million for Q3 2022 was adversely affected by $0.5 million. This was due to inventory write-downs and one-time employee severance costs associated with the previously announced management restructuring.
Business trends
The company continues to experience an improvement in demand from its customer base. In particular, the company’s North American airline accounts are experiencing increased demand and have returned to pre-pandemic passenger volumes. The company expects this to continue to cause a substantial increase in uniform sales to these accounts and other accounts in the transportation and hospitality sectors.
Delays in the importation of goods to North America from offshore suppliers and delays in hiring sufficient warehouse staff to accommodate the sudden increase in the delivery demands of our clients continue to contribute to an unprecedented backlog in orders and a resulting delay in converting inventory on-hand to sales. The company expects these supply chain and distribution issues and the resulting need for increased inventory levels to be temporary and resolved in the coming months.
Unisync is a well-known and respected managed service provider of custom corporate image apparel. It operates through two business units: Unisync Group Limited, with operations throughout Canada and the USA, and 90 per cent owned Peerless Garments LP, a domestic manufacturing operation based in Winnipeg, Manitoba.
Unisync Corp. (UNI) is up 1.66 per cent, trading at C$2.45 per share at 3:34 pm ET.
