VANCOUVER, BC--(Marketwired - January 13, 2017) - Unisync Corp. (TSX VENTURE: UNI) ("Unisync") today reported revenues of $52.7 million for the 12 month period ended September 30, 2016, representing an increase of 18% over the last fiscal years' revenues of $44.8 million. Fourth quarter Fiscal 2016 revenues were $13.0 million versus $12.0 million for the corresponding quarter in Fiscal 2015.
Unisync operates through two business segments: Unisync Group Limited ("UGL") of Mississauga, Ontario and Peerless Garments LP ("Peerless") of Winnipeg, Manitoba. Peerless specializes in the production and distribution of highly technical protective garments, military operational clothing and accessories for a broad spectrum of Federal, Provincial and Municipal government departments and agencies. UGL is a leading customer-focused provider of corporate apparel, serving a list of leading Canadian iconic brands such as Air Canada, TELUS, Loblaws and Purolator. In 2015 UGL acquired Vancouver based Omega Uniform Systems Ltd. and Ottawa area Carleton Uniforms Inc. The combined operations of Unisync represent a vertically integrated and proudly Canadian enterprise with exceptional capabilities in garment design, domestic manufacturing and off-shore outsourcing, including state-of-the-art web based B2B ordering, distribution and program management systems.
Consolidated gross profit for fiscal 2016 declined to 15% of revenue from 16% in the prior year mainly due to the impact of the weakening in the average rate of exchange on the purchase of US$ denominated product. Cash flow from operations, before non-cash working capital items and distributions to a minority partner, was $0.6 million for the year ended September 30, 2016 down from $0.9 million in fiscal 2015. In comparison, cash flow from operations for the three months ended September 30, 2016 was $0.4 million versus negative $0.4 million for the same quarter in fiscal 2015.
More detailed information is contained in the Company's audited consolidated financial statements for the year ended September 30, 2016 and in its Management Discussion and Analysis dated January 13, 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 enhance UGL's margins in fiscal 2017. The combination of improved margins along 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 $38 million in firm contracts and options on hand as at the end of fiscal 2016 and the award of a further $18 million contract announced last month, the Peerless segment is also expecting 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
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.