VANCOUVER, BC--(Marketwired - February 22, 2017) - Unisync Corp. (TSX VENTURE: UNI) ("Unisync"), a leading provider of corporate image apparel, highly technical protective garments, military operational clothing and accessories for a broad spectrum of corporate clients and multiple government agencies today reported first quarter financial results for the three months ended December 31, 2016.
The Company generated revenues of $14.5 million for the quarter, which represented an increase of 8.5% over the last fiscal years' corresponding first quarter revenues of $13.4 million.
Consolidated gross profit for the three months ended December 31, 2016 was $2.3 million or 16% of revenue versus $2.5 million or 18% of revenue during the three months ended December 31, 2015. The decline in gross profit and gross profit margin was due to the trailing effect of the weakening Canadian dollar on US$ offshore product purchases and the lower absorption of fixed costs experienced by the UGL segment in the most recent period.
The Company's reported net income of $89,910 in the quarter ended December 31, 2016 was up from $11,884 in the comparable quarter last year. Cash flow from operations, before non-cash working capital items and distributions to minority partner, was $630,374 for the three months ended December 31, 2016 versus $386,732 for the three months ended December 31, 2015.
Unisync operates through two business segments: Unisync Group Limited ("UGL") of Mississauga, Ontario and Peerless Garments LP ("Peerless") of Winnipeg, Manitoba. UGL is a leading customer-focused provider of corporate apparel, serving a list of leading Canadian iconic brands such as Air Canada, TELUS, Loblaws, G4S and Purolator. Peerless specializes in the production and distribution of highly technical protective garments, military operational clothing and accessories for a broad spectrum of Federal, Provincial and Municipal government departments and agencies.The combined operations of Unisync represent a vertically integrated and proudly Canadian based enterprise with exceptional capabilities in garment design, domestic manufacturing and off-shore outsourcing, including state-of-the-art web based B2B ordering, distribution and program management systems.
More detailed information is contained in the Company's Interim Financial Statements for the three months ended December 31, 2016 and Management Discussion and Analysis dated February 22, 2017 which may be accessed at www.sedar.com.
The recent stabilization of the Canadian dollar against the US dollar together with product sourcing changes are expected to improve UGL's margins as we progress through fiscal 2017. The combination of improved margins and increased absorption of fixed overhead costs associated with an increase in projected revenues from UGL's established and recently acquired accounts, is expected to result in greater profitability for the UGL segment in fiscal 2017.
With $52 million in firm contracts and options on hand as at December 31 2016, up from $38 million as at the end of fiscal 2016, the Peerless business segment is well positioned for an increase in revenues and improved profitability in fiscal 2017.
For more information on our capabilities, products and services please visit our website at www.unisyncgroup.com.
On Behalf of the Board of Directors
Douglas F Good, CEO
Forward Looking Statements
This news release may contain forward-looking statements that involve known and unknown risk and uncertainties that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Any forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
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