Unifi, Inc. (NYSE:UFI) Q3 2023 Results Conference Call May 4, 2023 8:30 AM ET

Company Participants

A.J. Eaker - VP, Finance and Treasurer

Al Carey - Executive Chairman

Eddie Ingle - CEO

Craig Creaturo - CFO

Conference Call Participants

Anthony Lebiedzinski - Sidoti& Company

Operator

Good day, and welcome to Q3 2023 Unifi Earnings Conference Call. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. Thank you.

I’d now like to welcome A.J. Eaker, Vice President of Finance and Treasurer, to begin the conference. A.J., over to you.

A.J. Eaker

Thank you, Connie, and good morning, everyone. On the call today is Al Carey, Executive Chairman; Eddie Ingle, Chief Executive Officer; and Craig Creaturo, Chief Financial Officer.

During this call, management will be referencing a webcast presentation that can be found in the Investor Relations section of our website, unifi.com. Please turn to Page 2 of that slide deck for our cautionary statements. Management advises you that certain statements included in today’s call will be forward-looking statements within the meaning of the federal securities laws. Management cautions that these statements are based on current expectations, estimates and/or projections about the markets in which Unifi operates. These statements are not guarantees of future performance and involve certain risks that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecasted, or implied by these statements. You are directed to the disclosures filed with the SEC on Unifi’s Forms 10-Q and 10-K regarding various factors that may impact these results. Also, please be advised that certain non-GAAP financial measures, such as adjusted EBITDA, adjusted EPS, adjusted working capital and net debt may be discussed on this call.

I will now turn it over to Al Carey.

Al Carey

Thank you, A.J., and thanks to all of you joining the call this morning. I’m going to start with a few comments about the Q3 trends, and then I’ll turn it right over to Eddie Ingle, our CEO. So if you remember back at the end of Q2, we said that we believe that we got the worst behind us at that time, and we believe that’s true. The U.S. sales have improved, and that’s compared to the previous quarter. And additionally, we made some improvements in our cost containment activities such as SG&A and plant labor and raw materials. And this has allowed us to have an improvement in our U.S. gross margins compared to the prior quarter as well.