Unifi Posts Impressive Growth For A Textile Manufacturer
- A shorter fiscal year and weakness in the international segment could not suppress high single-digit EBITDA growth, a 100 bp margin increase and the highest net income in >10 years.
- The growth of its premier value-added yarns helped gross margins increase to a five year high and should continue to be a major driver going forward.
- Even the expected stabilization of the international segment in FY15 could act as a powerful catalyst.
- Six months ago the board approved a $50 million buyback, which followed a completed $50 million buyback; strong EBITDA funds meaningful debt reduction and high payback projects.
- The float is reduced as almost half of the stock is owned by insiders, a core group of well-known value investors and Home Depot co-founder Kenneth Langone.