Financial information

UNISYNC publishes its financial results for fiscal year 2021


TORONTO, December 29, 2021 (GLOBE NEWSWIRE) – Unisync Corp. (“Unisync”) (TSX: “UNI”) (OTCQX: “USYNF”) announces its audited financial results for the fourth quarter and fiscal year ended September 30, 2021. Unisync operates through two business units: Unisync Group Limited ( “UGL”) with operations across Canada and the United States and 90% owned by Peerless Garments LP (“Peerless”), a nationally manufactured operation based in Winnipeg, Manitoba. UGL is a leading supplier of apparel to Customer-focused company, serving many leading Canadian and American iconic brands.Peerless specializes in the production and distribution of highly technical protective clothing, military operational clothing and accessories for a wide range of government departments and businesses. federal, provincial and municipal agencies.

Results for fiscal year 2021 compared to fiscal year 2020

Revenue for the fiscal year ended September 30, 2021 of $ 86.3 million decreased $ 6.8 million or 7% from the prior year due to a decrease in revenue of $ 4.6 million in the UGL segment to $ 68.9 million and a revenue reduction of $ 2.2 million to $ 18.5 million in the Peerless segment. UGL segment revenue was down 6% from a year ago due to the segment’s transportation revenue decline of $ 11.1 million from a year ago due to massive layoffs at employees caused by travel restrictions linked to the COVID-19 pandemic. These sales declines, primarily within UGL segment airline accounts, were partially offset by a $ 4.7 million increase in personal protective equipment (“PPE”) sales that Unisync began to generate. distribute for the first time in the third quarter of fiscal 2020. Peerless segment revenue decreased 11% year over year, despite a $ 2.7 million increase in PPE sales, with a decrease in the number of new contracts and the exercise of options on existing contracts by the Department of National Defense (“DND”), the largest customer.

Gross profit of $ 15.8 million slipped to 18.3% of revenue from 18.9% of last year revenue due to lower absorption of fixed costs. The UGL segment recorded gross profit of $ 12.2 million while the segment’s gross profit margin fell to 18% of revenue from 19% of revenue due to declining economies of scale. Incentive grants in the amount of $ 0.3 million (2020 – $ 1.0 million) received from the federal government of Canada under the Emergency Wage Subsidy of Canada (“CUSS”) and the States -United under the Paycheck Protection Program (“PPP”) to help offset the negative impact of the COVID-19 pandemic has reduced direct labor costs in the UGL segment and minimized layoffs of employees who would otherwise have been affected. The gross profit margin of the Peerless segment increased from 20% of sales to 22% of sales due to the product sales mix.

Depreciation charges increased $ 0.6 million from fiscal 2020 to $ 3.8 million for the current fiscal year, primarily due to the full-year amortization of new software from enterprise resource planning (“ERP”) of the company.

General and administrative expenses increased by less than 1% to reach $ 16.5 million for the fiscal year ended September 30, 2021 after receipt of SSUC and PPP amounts of $ 0.1 million (0.8 million dollars in 2020). Total interest expense of $ 2.2 million for the year ended September 30, 2021 decreased $ 0.4 million from the prior year due to lower use of lines of credit from operation of the company and falling interest rates following the onset of the COVID-19 pandemic in March 2020 Expenditure on share-based payments reached $ 0.4 million over the past year current year, compared to $ 0.1 million the previous year with the grant of 1,250,000 (2020 – nil) stock options in October 2020.

The Company reported a net loss attributable to shareholders of Unisync of $ 2.8 million ($ 0.15 per share) for the year ended September 30, 2021, compared to a loss of $ 1.3 million (0 , $ 07 per share) the previous year. Adjusted EBITDA (comprehensive income before interest expense, income taxes, depreciation and amortization, share-based payment and acquisition-related costs) amounted to $ 3.1 million for fiscal 2021, compared to $ 4. $ 5 million for fiscal 2020.

Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers and should not be viewed in isolation or as a substitute for financial information presented in accordance with IFRS. Unisync uses non-IFRS measures, including Adjusted EBITDA, to provide shareholders with additional measures of its operating performance. Unisync believes Adjusted EBITDA is a widely accepted indicator of an entity’s ability to incur and repay debt and is commonly used by the investment community to assess companies.

Q4 2021 results compared to Q4 2020

Revenue for the quarter ended September 30, 2021 of $ 19.4 million was down $ 1.7 million or 8% from the quarter ended September 30, 2020. Excluding PPE revenue, the Fourth quarter 2021 revenue increased 15% from the corresponding quarter last year, while revenue increased from $ 6.7 million in the fourth quarter of 2020 to $ 2.8 million. dollars in the fourth quarter of 2021.

Gross profit for the quarter ended September 30, 2021 of $ 2.7 million or 14% of revenue was down from 19% of revenue for the same period last year due to operating leverage reduced on lower sales volume and a fluctuating exchange rate rate as the Canadian dollar weakened 3% against the US dollar during the current period compared to a 2% strengthening in the 4e quarter of fiscal 2020. The UGL segment recorded a gross margin of $ 1.9 million or 12% of segment revenue, compared to $ 2.5 million or 16% of segment revenue in the same quarter of the year. The prior year as a foreign exchange loss of $ 0.3 million was included in the current period expense compared to a foreign exchange gain of $ 0.2 million in the same period last year. The Peerless segment recorded gross profit of $ 0.8 million or 22% of segment revenue in the fourth quarter of fiscal 2021, compared to $ 1.5 million or 24% of segment revenue in the same quarter of l ‘Previous exercice.

At $ 3.8 million, total general and administrative expenses for the quarter ended September 30, 2021 were up $ 0.1 million from the quarter ended September 30, 2020.

Interest expense of $ 0.7 million for the current quarter increased $ 0.1 million compared to the same period last year due to interest incurred on the extension of long-term lease obligations at the company’s distribution facility in Guelph, Ontario, during the current quarter.

The Company reported a net loss of $ 1.5 million during the quarter ended September 30, 2021, compared to a net loss of $ 0.3 million in the same quarter last year for the reasons mentioned above. . Adjusted EBITDA represents a loss of $ 0.4 million for the quarter ended September 30, 2021, compared to $ 0.8 million for the quarter ended September 30, 2020.

More detailed information is contained in the consolidated financial statements of the Company for the year ended September 30, 2021 and the management report dated December 23, 2021 which can be viewed at www.sedar.com.

Trade trends

The company began to see a build-up of orders in the transportation and hospitality sectors during the latter part of the fourth quarter of 2021 and, despite the recent increase in COVID cases caused by the Omicron variant, continues to experience an increase in the number of COVID cases caused by the Omicron variant. sharp increase in uniform orders from these sectors. at pre-pandemic levels. With a resulting 50% increase in deferred revenue to $ 12.4 million at the end of fiscal 2021, complemented by recent additions of new accounts, management expects improved revenue and performance. profitability during fiscal year 2022.

On behalf of the board of directors

Matthew Graham
CEO

Investor relations contact:
Douglas F Good, Executive Chairman at 778-370-1725 Email: [email protected]

Forward-looking statements
This press release may contain forward-looking statements that involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied in such press release. forward-looking statements. All forward-looking statements contained in this document are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to publicly update or revise these forward-looking statements to reflect any change in its expectations or in the events, conditions or circumstances on which such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those stated in forward-looking statements. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.