VANCOUVER, British Columbia, Feb. 20, 2018 (GLOBE NEWSWIRE) -- Unisync Corp. (TSX-V:UNI) (the “Company") operates through two business segments: Unisync Group Limited (“UGL”) of Mississauga, Ontario and Peerless Garments LP (“Peerless”) of Winnipeg, Manitoba.
The Company today reported revenues of $13.6 million for the three months ended December 31, 2017, down from the $14.5 million in revenues reported for the comparable quarter last year due to a large build-up in deliverable product being carried over into the second quarter. Gross profit for the three months ended December 31, 2017 was $2.5 million or 18% of revenue versus $2.3 million or 16% of revenue during the three months ended December 31, 2016. With a $2.5 million decrease in revenue in the Peerless segment experienced in the current quarter, gross profit decreased to $0.7 million from $1.1 million in the same period in the prior year. However, due to a better mix of higher margin product sales the Peerless segment’s gross profit margin improved to 22% of revenue from 19%. The UGL segment recorded gross profit of $1.7 million or 17% of segment revenue up from a gross profit of $1.2 million or 15% of segment revenue in the same quarter of the prior fiscal year. The improvement in gross profit and gross profit margin in the UGL segment was due to the higher absorption of fixed costs with the increase in revenue experienced.
A small net loss and total comprehensive loss of $34,479 was reported for the quarter compared to net income and total comprehensive income of $89,910 for the same quarter last year. Cash flow from operations, before non-cash working capital items and distributions to minority partner, was $584,334 for the three months ended December 31, 2017 versus $630,374 for the three month period ended December 31, 2016.
Business Outlook
From August 2017 through to December 31, 2017, the UGL segment received orders from approximately 23,000 uniformed employees of the Company’s largest airline account for shipment of new uniform kits in the second quarter of fiscal 2018. Fitting sessions, kitting and packaging of these uniform orders took place throughout the first quarter of fiscal 2018 to ensure that the Company was in a position to successfully complete the largest new uniform rollout in its history. The sale of these uniform products with profit margins that have been substantially hedged against fluctuations in the value of the Canadian dollar, combined with the increased absorption of fixed overhead costs associated with the higher level of revenue, are expected to result in significantly greater profitability for the UGL segment in fiscal 2018.
With $38 million in firm contracts and options on hand as at December 31 2017, the Peerless business segment is also well positioned to increase revenues and profitability over the balance of fiscal 2018.
More detailed information is contained in the Company’s Interim Financial Statements for the three months ended December 31, 2017 and Management Discussion and Analysis dated February 19, 2018 which may be accessed at www.sedar.com .
On Behalf of the Board of Directors
Douglas F Good
CEO
Investor relations contact:
Douglas F Good CEO at 778-370-1725 Email dgood@unisyncgroup.com
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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