SOURCE: Unisync Corp.

Unisync Corp.

August 23, 2017 09:00 ET

Unisync Reports Improved Third Quarter Earnings

VANCOUVER, BC--(Marketwired - August 23, 2017) - Unisync Corp. (TSX VENTURE: UNI) (the "Company"), 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 significantly improved financial results for the third quarter of Fiscal 2017.

The Company operates through two business segments: Unisync Group Limited ("UGL") of Mississauga, Ontario and Peerless Garments LP ("Peerless") of Winnipeg, Manitoba. The Company generated consolidated revenues of $17.3 million for the third quarter ended June 30, 2017, as compared to $13.0 million for the corresponding quarter last fiscal year.

Consolidated gross profit for the three months ended June 30, 2017 was $3.0 million or 17% of revenue versus $1.5 million or 12% of revenue during the three months ended June 30, 2016. Although the Company is continuing to feel the trailing effect of the sharp drop in the value of the Canadian dollar during the past couple of years , margins are improving due to the recent reversal of the downward slide combined with greater absorption of fixed overhead from increased revenues.

The Company reported net income of $404,463 in the quarter ended June 30, 2017 compared to a net loss of $529,879 in the comparable quarter last year. Cash flow from operations, before non-cash working capital items and distributions to minority partner, was $985,514 for the three months ended June 30, 2017 versus a loss of $250,969 for the three month period ended June 30, 2016.

Business Outlook

With $25.6 million in deferred revenue in the UGL segment and $40 million in firm contracts and options on hand in the Peerless segment, the Company is expecting a significant further improvement in revenues and profitability in the fourth quarter of Fiscal 2017 and through the first half of Fiscal 2018. The combination of better margins and greater leverage of fixed overhead costs associated with an increase in projected revenues from established and recently acquired accounts, is expected to result in continued improvement in future earnings per share.

More detailed information is contained in the Company's Interim Financial Statements for the three months ended June 30, 2017 and Management Discussion and Analysis dated August 23, 2017 which may be accessed at www.sedar.com.

Unisync's UGL subsidiary serves a list of leading Canadian iconic brands such as Air Canada, TELUS, Loblaws, and Purolator. The combined operations of UGL and Peerless 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.

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
President and 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.

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.

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