Unifi Q2 2025 Earnings Report

Unifi EPS Results

• Actual EPS: -$0.86
• Consensus EPS: -$0.55
• Beat/Miss: Missed by -$0.31
• One Year Ago EPS: N/A

Unifi Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $138.33 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Unifi Announcement Details

• Quarter: Q2 2025
• Date: 2/5/2025
• Time: After Market Closes
• Conference Call Date: Thursday, February 6, 2025
• Conference Call Time: 8:00AM ET

Unifi (NYSE:UFI), together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in North America, Central America, South America, Asia, and Europe. Its polyester products include partially oriented yarn, textured, solution and package dyed, twisted, beamed, and draw wound yarns in virgin or recycled varieties; and nylon products comprise virgin or recycled textured, solution dyed, and spandex covered yarns. The company also provides recycled solutions made from pre-consumer and post-consumer waste, such as plastic bottle flakes, polyester polymer beads, and staple fiber. It offers recycled and synthetic products primarily to yarn manufacturers, knitters, and weavers that produces yarn and fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE brand. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.

Unifi Q2 2025 Earnings Call Transcript

Presentation

[Operator]

Good morning, and thank you for attending Unifi's Second Quarter Fiscal twenty twenty five Earnings Conference Call. Today's conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

[Operator]

Speakers for today's call include Al Carey, Executive Chairman Eddie Engel, Chief Executive Officer A. J. Eker, Chief Financial Officer. During this call, management will be referencing a webcast presentation that can be found in the Investor Relations section of unify.com. Please familiarize yourself with page two of the slide deck for cautionary statements and non GAAP measures.

[Operator]

I will now turn the call over to Al Carey. Please go ahead.

[Albert Carey, Executive Chairman at Unifi]

Thank you very much. Thanks for joining everyone for our call today on the second quarter of fiscal twenty twenty five. I'm going to provide a few of the key headlines regarding our quarter and our second half of fiscal year outlook. And then as usual, Eddie Engle and A. J.

[Albert Carey, Executive Chairman at Unifi]

Eker will provide the actual performance in more detail and talk about the actions that we're taking at Unify. So let me start by telling you that the Q2 revenues were very similar to the previous few quarters and a little less than we had projected. And this continuation of sluggish sales has been with us and the entire textile industry for some time in both North America and in Asia. But I will tell you that we are finally seeing some green shoots. Beginning in January, I'd say for the last six weeks, we have seen an improvement in our revenue trends and our customers are more optimistic about demand and improved inventories coming out of the holiday season.

[Albert Carey, Executive Chairman at Unifi]

I think they would describe the holiday season as solid. This should allow us to show up with a stronger half two performance in our overall numbers versus half one, which is what we had talked about a while back. During this quarter, we made a decision, a very important decision to close one of our three plants in The U. S. However, we will lose no sales.

[Albert Carey, Executive Chairman at Unifi]

The production will transition to other facilities that we have that have capacity in North America. Now this move is going to improve our fixed cost utilization, which has been a challenge. And it's also going to improve our profitability for North America. We will then sell the plant and allow us to reduce our debt. Now we're encouraged with the momentum on two top line revenue ideas.

[Albert Carey, Executive Chairman at Unifi]

One we've talked about for quite some time, which is the beyond apparel efforts that we've been after for about a year. They're beginning those efforts are beginning to pay off as we're starting to enter two new areas for UNIFY with sales of carpet and the military segment. And both of these sales are being made possible by, I'd call it our Made in America approach. These sales are beginning right now in this month. And another positive is our circularity and our textile take back innovation that we talked about on the last two calls are now beginning to gain some traction with our customers.

[Albert Carey, Executive Chairman at Unifi]

We are likely to see some sales in Q4 of this fiscal and more of a thrust in twenty twenty six fiscal. We're going to be very busy over the next five to six months with closing a plant, moving equipment, getting our whole organization focused, and these activities will show up as a stronger performance in half two and then into the next fiscal year. So with that overview, let me now turn it over to Eddie Engel, our CEO, to give you the big details of what's going on in the quarter and in the future. Eddie?

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Thanks, Al. And as Al just mentioned, our results for the quarter were slightly below our outlook due to a lower than expected sales that impacted our business in both The Americas and Asia. Despite this short term setback, we continue to remain optimistic about the remainder of calendar year 2025 and beyond as we already are beginning to see an increase in customer orders and interest for some of our recently announced Beyond the Power initiatives and REPREVE fiber products, which I'm going to touch on in greater detail shortly. Before I go into the details of our results for the quarter, I would first like to discuss our recent efforts to optimize our Americas business. As many of you are aware, we announced earlier this week that we have taken steps to consolidate our manufacturing operations with the closing and future sale of our Madison, North Carolina manufacturing facility.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

The closing of the Madison facility is an important strategic decision that will allow Unify to become stronger and a more efficient company as we exit the current calendar year. By consolidating this facility, we will be able to improve our cost structure and operational performance without any customer disruption or loss of current production capacity. AJ will provide greater details on the financial implications of the sale of the facility later on in the call, but this proactive step will optimize our business and make Unify a leaner and more profitable organization that will ultimately enable us to better serve our customers. This decision to close Madison was a particularly difficult decision for me personally as it was a place where I gained a lot of valuable experience as a General Manager early on in my career. And I'd like to acknowledge the work that the employees put into making this facility a valuable contributor

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

to the

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

profitability of unified business over the years, and I thank them for their contribution. Before I go over the results of the business segments, I'd like to briefly discuss the recent tariff announcements that were put in place last weekend on Canada, Mexico and China. Given that the situation is still very fluid and that Mexico and Canada have already delayed the tariffs by thirty days and opened a dialogue with the U. S. Government, the impact of these tariffs on our business remains uncertain as our customers are still assessing how it may affect their businesses.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

We'll continue to keep you updated in the coming quarters on the situation as the potential impact of the tariffs becomes more clear. Transitioning now to an overview of the quarter on Slide four. During the second quarter of fiscal twenty twenty five, we reported $138,900,000 in consolidated net sales, which was slightly up compared to the prior year due to an improvement in The Americas business and the consistently robust sales volumes in Brazil. Now to dive a little bit deeper into each of the business segments. In the Americas segment, we did a slight did see a slight increase in net sales during the quarter compared to the previous year due to the increased activity in Central America.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

However, our financial results were impacted by the two September hurricanes in the Southeast at U. S, which dampened some demand and continued inflationary pressures. With that said, we do anticipate that we will see an improvement in our Americas segment during the second half of the fiscal year as a result of the traction we are seeing for our Beyond the Power initiatives in the corporate markets and military applications. In addition, we are continuing to see growth in our business in Central America, which is very encouraging. Even with the normal slowdown from the Christmas holiday, our Brazil segment continued to perform well, thanks to the increased demand for textured polyester and favorable pricing dynamics.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Brazil has been our best performing segment for the past year now and we expect that this trend will continue for the remainder of the fiscal year. In our Asia segment, we've continued to experience headwinds due to the unfavorable economic conditions and pricing pressures in China. Given the seasonal impact from the Chinese New Year, we do anticipate that we'll see similar results in our third quarter for the region, but these should improve as we move into the fourth quarter of fiscal twenty twenty five. Turning now to Slide five for an update on Reprieve. During the second quarter, Reprieve represented 31% of sales, a slight decrease when compared to the previous year.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

This decrease in reprieve sales was largely driven by the macroeconomic pressures in China. But with that said, we do anticipate that we will begin to see an improvement in our reprieve fiber business during the second half of this year and in fiscal twenty twenty six, as our recently announced Free Take Back Filament yarn and Thermolue products begin to gain traction with our customers. Moving next to Slide six to highlight some of our recent marketing efforts. We witnessed the versatility of our Free through exciting co branding initiatives this quarter. For example, Malibu C, a haircare brand using Reprieve regen in its EcoBlue bottle, received the prestigious 2024 Global Green Beauty Award.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Sabaton Mastresses, Antiva, which is footwear, also continued to promote their use of Reprieve on product pages and Costco highlighted Reprieve branding in store across several brands, including Puma and Kenneth Cole in both The U. S. And Canada. Additionally, during the quarter, we forged key partnerships with Guess Europe, The North Face and New Balance. Guess Europe featured our marketing and communications director in their Guess EcoVideo series, showcasing their long standing commitment to using Reprieve.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

The North Face launched their A68A collection with an event in London emphasizing its end of life recyclability through Unifys textile take back process. And finally, New Balance partnered with us to recycle unused race shirts into Reprieve recycled polyester, which was used to produce this year's New Year's Cities TCS marathon T shirts. Could say that was circularity in motion. And on Slide seven, as a highlight of our leadership in product innovation, Unify was recently announced the winner of the 2024 Just Style Excellence Award for product launches in the area of circularity. Unifi received this award in recognition for the successful launch of Thermoloop, one of our latest innovative for pre products that provides customers with an insulation material made from textile waste using our proprietary textile take back process.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

And before I wrap up, I'd like to provide some additional updates on the beyond apparel initiatives, both carpet market and military and protective apparel applications that we discussed during our first quarter call. Both initiatives have been performing well and we have already begun to see the initial sales revenue from these two programs and we will see additional revenue benefits from these two initiatives beyond apparel during the second half of this fiscal year. We look forward to providing additional updates on these growing segments of our business over the coming quarters. With that, I'd like to pass the call over to A. J.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

To discuss our financial results for the quarter.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Thank you, Eddie. Despite a difficult environment during the quarter, we continue to make great progress towards positioning our business for future growth and profitability. Ensure we track to our goals, our focus remains on keeping our variable expenses across both production and administrative functions low, which will help create both cost savings and increase profits that we will reinvest in the key areas of our business that will enhance our revenue performance and drive margin expansion, including the Beyond Apparel initiatives and innovation. Transitioning to our financial results on Slide eight, you'll see our consolidated financial highlights for the quarter. Consolidated net sales for the quarter were $138,900,000 up 1.4% year over year.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

The increase in net sales on a year over year basis was primarily driven by continued improvement efforts in The Americas and growth in Brazil, but was offset by lower sales in Asia. Turning to Slide nine. In the Americas segment, net sales were up 3% compared to the prior year due to the traction from our recent sales growth initiatives despite the unfavorable weather impacts to the Southeast U. S. Causing a miss of a couple million sales dollars.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Slide 10 displays our Brazil segment highlights, which demonstrates our continued strength in that region with robust sales levels. Brazil's margin rate reflects both the positivity of improved value added mix, but the normalization of raw material costs and pricing dynamics. On Slide 11, our Asia segment saw net sales decline by approximately 7% year over year as the sales mix and pricing dynamics in the region remain difficult, particularly in China. I'll now briefly discuss our balance sheet on Slide 12. We're pleased to have reduced cash burn in the second quarter with improvement on both a year over year and sequential basis.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

This is aided by our strict cost control measures and limited CapEx spending. Finally, I'll discuss our efforts to consolidate our U. S. Manufacturing footprint. As Eddie mentioned, the Madison facility provided decades of profit generation and cash flow, and we're grateful to all of the Madison community and employees who have been a part of its historical success.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

The facility remains in excellent condition and will be operational for the next several months as we screen for an appropriate buyer of the real estate. The proceeds that we receive from the sale of the Madison facility will be prioritized against existing debt and will improve our financial position. During calendar 2025, we will incur expenses related to wind down, relocation and separation. Our expectations around these transitional restructuring charges range from $5,000,000 to $7,500,000 As a result of this transition, we expect to achieve overall organizational savings by increasing the utilization of our Yakinville facility and leveraging a more efficient operating footprint that would require fewer man hours per square foot and yarn pounds produced. We will provide additional details on the progress of this transition and the savings benefits as we move through this process.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Looking ahead, we'll consider additional steps to improve both the strength of our balance sheet and our financial performance to ensure that we remain well positioned to pivot to growth. With that, I'll pass the call back to Eddie to take us through the last few slides of the presentation and make final comments.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Thank you, A. J. Let's now turn to Slide 13 to discuss our forecast for the third quarter of fiscal twenty twenty five. For the third quarter, we are expecting net sales and adjusted EBITDA to increase sequentially as we see a more robust order book and sales levels for the Americas segment. And we expect capital expenditures to be around $5,000,000 to $6,000,000 due to the transition of the production out of the Madison facility.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Transitioning to Slide 14, we will discuss our guidance for fiscal twenty twenty five. We are updating our outlook for fiscal twenty twenty five, which now includes net sales to be in line with fiscal twenty twenty four as we expect our second half fiscal twenty twenty five to improve over the corresponding first half. Profitability metrics are expected to improve year over year, while second half fiscal twenty twenty five underlying profit generation will be partially offset by U. S. Manufacturing transition costs.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

And we expect capital expenditures to range between $14,000,000 and $16,000,000 which includes the costs related to the transition activities. Moving on to Slide 15, you will see our updated key strategic priorities that we are focused on for the remainder of fiscal twenty twenty five. We are always exploring opportunities to optimize our business, which is highlighted by the proactive manufacturing consolidation measures we discussed today that will enhance our operating efficiency, lower fixed costs, improve profitability and further strengthen our balance sheet. As we look ahead to the second half of fiscal twenty twenty five, our focus will continue to remain on investing in innovation products in both our pre fiber platform and beyond apparel products that will help improve our product mix and grow our customer base. We believe that our commitment to implementing cost saving initiatives and making strategic investments in innovation and high growth opportunities has positioned us well to drive value for all of our stakeholders.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

With that, we would now like to open the line for questions. Thank you.

[Operator]

Your next question comes from the line of Anthony Lebiedzinski from Sidoti and Company. Please go ahead.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Good morning, everyone, and thank you for taking the questions. I guess, first for the quarter, it's certainly nice to see the sales and gross margin improvements in The Americas and Brazil segments. I know you guys talked about higher sales volumes in both of these and had good pricing in Brazil. So just wondering, is the higher sales coming mostly from existing clients or did you were you already able to pick up some new clients? Or maybe it was just a combination of both?

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Just wanted to get a better sense as to the sales volume drivers in those two key segments.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Yes. In the Brazil segment, thanks for the question, Anthony. In the Brazil segment, we are seeing it across the board with existing clients. The market for textured polyester continues to grow over the quarter outside the normal holiday period. We ran our plants pretty full and we saw an increase in demand across all segments.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

I would say maybe in particular there was the apparel segment did perform exceptionally strong, including the denim section, which is very, very big part of our business down there. As it relates to The U. S, I think the way I would describe that is Central America really was the star performer as far as growth as we went through the year and through the quarter. And we started at calendar 2024. It was very challenging, but we ended on a high spot.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

And again, we're seeing some activity with brands continuing to support Central America. And I think perhaps maybe it was in light of the pending tariffs that were taking place, we're not exactly sure yet how the brands are reacting, but that seems to be the indicator for us in that area.

[Albert Carey, Executive Chairman at Unifi]

One other comment, Anthony, this is Al. Some of these beyond the parallel items like military and the carpet, they're just hitting now, but those are a problem.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

That's great to hear. Yes. So that sounds like you guys are seeing some green shoots, which is definitely reassuring. So as far as the opportunity for carpet and the military and I'm sure you guys are working on others as well. But as far as maybe talk to us maybe about like what you see as that potential from those markets.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

And as far as timing, it sounds like you should pick up some business in the second half of this fiscal year, but maybe just if you could provide some additional color as far as how you see that maybe in fiscal twenty twenty six?

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Yes. So I'd really like to sort of turn it to calendar 2025. We did see at the tail end of our of calendar 2024 in our Q2 fiscal twenty twenty five, we saw some activity. As we go through this next twelve months, we are expecting to see growth in both of these market segments on a sequential basis. We're actually installing some capacity, additional capacity in our fiscal Q4 to meet the growth that goes beyond the existing capacity in this some of the technologies that we have.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

So as we go through this calendar 2025, you can expect us to give more details around revenues from these two businesses. But more importantly, it's the excitement we're seeing in these two product lines comes from the fact we're able to make products that are performing better than the incumbents. And that gives us comfort that the investments we're making from time and capital are going to pay out. We're quite confident that we're very confident about that as we move through this calendar year. Thank you.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Thanks for that. And just switching to Asia, so I know you said that you expect a similar performance in Q3 versus what you've seen here recently. But historically that business has performed better both sales and gross margin. So when would be when do you think it's reasonable to assume that that piece of your business gets back to more or less historical trends?

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Yes. As we said on the call, this quarter is impacted by the Chinese New Year. But as we go into Q4, we are expecting to see a meaningful improvement in the revenues out of that business. And the forecast still for calendar twenty twenty five is to see growth as we move throughout the year. It's again talking about tariffs in that section, that's still the U.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

S. Government and China have not really resolved their differences in that space, but the increased tariff of 10% is not as impactful as it would have been for Mexico and Canada. So we're not expecting right now to see demand drop off. In fact, we're expecting demand to still increase as we get the benefit of our reprieve take back innovation and our Thermoloop products.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Got you. Okay. All right. So as it relates to tariffs, certainly realize it still remains a dynamic situation. But assuming that Canada and Mexico get resolved and there is a sort of less long term pause or permanent pause and then China has a 10% tariff.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Would tariffs overall, given that you are a largely U. S. Manufacturing company, would tariffs be a net positive you think for the company or any sort of way to frame that certainly would be helpful?

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

It's really uncertain because it depends on the level of tariffs and what products they're put on. There's a lot of dialogue around and we hear this from our involvement with the textile organization, but in Mexico they are trying to defend their textile market. And maybe textiles would get carved out between Mexico and The U. S. As being something to protect for both sides.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

There's a lot of fabrics are made here shipped to Mexico. I do think Central America is an area that will pick up because of this threat of the tariffs because it hasn't as yet been mentioned. And none of the three countries in Northern Central America have been described as being prone to getting tariffs at least for now. So I think that's going to help us. And the other part of the tariffs was the de minimis ruling, which is a loophole for that, it allows goods to come into The U.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

S. That are worth less than $800 There is still a lot of energy around fixing that loophole by the governments and we'll see how that plays out. That could be a big positive for us.

[Albert Carey, Executive Chairman at Unifi]

Interesting, Anthony, is that we have a number from the government that approximately $1,500,000,000 in sales have come in through this de minimis in the last calendar year. So if that were to move in any positive direction, it would be very positive for us.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Understood. Okay. Yes. So certainly it does seem like there is some potential movement, I guess. So I guess we'll see what happens there.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Now as far as the Madison, North Carolina facility closure, I'm not sure if you're prepared yet to give a specific number, but maybe just ballpark estimate, once this transition is completed, how much could we talk about as far as annual cost savings with now Unify running fewer facilities in The U. S?

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Thanks, Anthony. It's A. J.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Good question.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Good morning.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Like I said, a lot of good years out of the Madison facility and we saw the utilization there fall significantly recently. So this decision was tough, but important for the future for us. Bringing that facility offline will obviously improve a lot of the fixed cost base that we have as well as overall labor man hours. We'll be able to move a lot of production into our Yaggenville facility where we have more automation and really a better facility to handle the overall volume and some more efficiency there.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Not looking to disclose the actual number that we're targeting at this point, but we'll certainly provide that as we've gathered all the details and complete that consolidation. But we are expecting some material savings from reducing the operations in that facility. Quick update on the overall facility itself as well. The tax value there right around $29,000,000 or so and the book value on that facility for us is right around $9,000,000 So we do expect that to be a favorable move for us from a balance sheet perspective.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

That's very helpful. Okay. All right. Well, and then as far as other facilities, I know you guys also sold a warehouse. So as you look at your properties, do you think there could be some additional opportunities perhaps to optimize the overall structure or you think you're kind of more or less kind of tapped out as far as opportunities in terms of just as overall your facilities and properties?

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Thanks, Anthony. A. J. Again, this is certainly going to be a big move for us that will be very important over the next several months and take a lot of detailed time. So we're focused very heavily on this move right now.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

As I mentioned in the prepared remarks, we'll continue to look at opportunities. There's nothing to highlight at this point, but I'll remind the audience also that when we did sell that warehouse, that was about 250,000 square feet with a decent amount of land and achieved greater than $30 a square foot on that sale. So we were quite pleased with that and hoping to have a very positive sale as well for the Madison facility. But specific to your question, we'll continue to looking at what makes sense, see how all of the consolidation efforts play out, look forward to those savings and then continue to find opportunities.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Got you. Okay. And my last question, I guess, so as far as just to follow-up on the Madison facility, what's the square footage of that property?

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Sure. The building itself is in excellent condition, high ceilings and right around 950,000 square feet. It also has significant land buffer and the land and surrounding areas in great condition as well.

[Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC]

Got it. All right. Well, that all sounds good. Well, thank you very much and best of luck.

[Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer at Unifi]

Great. Thanks so much, Anthony.

[Edmund Ingle, Chief Executive Officer & Director at Unifi]

Thank you, Anthony.

Participants

Executives

• Albert Carey, Executive Chairman
• Edmund Ingle, Chief Executive Officer & Director
• Andrew Eaker, Executive Vice President, Chief Financial Officer, and Treasurer

Analysts

• Anthony Lebiedzinski, Senior Equity Research Analyst at Sidoti & Company, LLC