EX-99 3 ufi20130724_8kex99-2.htm EXHIBIT 99.2

Unifi, Inc. For the Fourth Quarter and Fiscal Year Ended June 30, 2013 Conference Call
Slide Presentation
Exhibit 99.2

Cautionary Statement
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about the financial condition and results of operations of Unifi, Inc. (the "Company") that are based on management's current expectations, estimates and projections about the markets in which the Company operates, as well as management's beliefs and assumptions. Words such as "expects," "anticipates," "believes," "estimates," variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. Moreover, such forward-looking statements reflect management's judgment only as of the date hereof, and the Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise. For these and other reasons, readers should use caution in considering forward-looking statements, and should not place undue reliance on any of them. Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, our forward-looking statements include, but are not necessarily limited to, availability, sourcing and pricing of raw materials; the success of our subsidiaries; pressures on sales prices and volumes due to competition and economic conditions; reliance on and financial viability of significant customers; operating performance of joint ventures and other equity investments; technological advancements; employee relations; changes in construction spending, capital expenditures and long-term investments (including those related to unforeseen acquisition opportunities); continued availability of financial resources through financing arrangements and operations; market price of the Company’s stock; restrictions imposed by the Company’s credit facility; outcomes of pending or threatened legal proceedings; negotiation of new or modifications of existing contracts for asset management and for property and equipment construction and acquisition; regulations governing tax laws; other governmental and authoritative bodies' policies and legislation; and proceeds received from the sale of assets held for disposal. In addition to these illustrative factors, forward-looking statements could be impacted by general domestic and international economic and industry conditions in the markets where the Company competes, such as changes in currency exchange rates, interest and inflation rates, recession and other economic and political factors over which the Company has no control. Other risks and uncertainties may be described from time to time in the Company's other reports and filings with the Securities and Exchange Commission.

Net Sales and Gross Profit Highlights
(Amounts in Thousands, Except Percentages)
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
Quarter over Quarter Year Over Year
June 30, 2013 vs. June 24, 2012 June 30, 2013 vs. June 24, 2012
Volume Price Volume Price
Net Sales:
Polyester 6.7% 0.7% 2.5% (1.3%)
Nylon 10.0% (4.6%) 3.9% (3.3%)
International 6.4% 0.6% 8.5% (6.4%)
Consolidated 6.9% (0.1%) 4.2% (2.9%)
For the Three Months Ended For the Fiscal Years Ended
June 30, 2013 June 24, 2012 June 30, 2013 June 24, 2012
Gross Profit:
Polyester $13,485 $7,863 $35,162 $19,673
Nylon 6,284 4,677 18,052 16,956
International 5,943 5,554 19,890 17,767
Consolidated $25,712 $18,094 $73,104 $54,396

Income Statement Highlights (Amounts in Thousands, Except Percentages and Per Share Amounts)
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)

For the Three Months Ended
June 30, 2013 June 24, 2012
Net sales $200,742 100.0% $187,926 100.0%
Gross profit 25,712 12.8% 18,094 9.6%
Selling, general and administrative expenses 13,445 6.7% 10,977 5.8%
Operating income 11,264 5.6% 6,371 3.4%
Interest expense 448 3,282
Income before income taxes 15,616 7.8% 6,130 3.3%
Net income attributable to Unifi, Inc. 10,516 5.2% 11,278 6.0%
Earnings per share (basic) $0.54 $0.56
Weighted average shares outstanding 19,402 20,090

Income Statement Highlights (Amounts in Thousands, Except Percentages and Per Share Amounts)
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
For the Fiscal Years Ended
June 30, 2013 June 24, 2012
Net sales $713,962 100.0% $705,086 100.0%
Gross profit 73,104 10.2% 54,396 7.7%
Selling, general and administrative expenses 47,386 6.6% 43,482 6.2%
Operating income 22,681 3.2% 8,632 1.2%
Interest expense 4,489 16,073
Income before income taxes 29,014 4.1% 8,849 1.3%
Net income attributable to Unifi, Inc. 16,635 2.3% 11,491 1.6%
Earnings per share (basic) $0.84 $0.57
Weighted average shares outstanding 19,909 20,088

Equity Affiliates Highlights
(Amounts in thousands, Except Percentages)
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
For the Three Months Ended For the Fiscal Years Ended
June 30, 2013 June 24, 2012 June 30, 2013 June 24, 2012
Earnings:
Parkdale America (34%) $4,491 $5,146 $9,481 $19,360
Other 241 428 1,963 380
Total $4,732 $5,574 $11,444 $19,740
Distributions:
Parkdale America (34%) $3,409 $5,966 $13,440 $9,616
Other 1,000 500 1,500 1,000
Total $4,409 $6,466 $14,940 $10,616

Reconciliations of Net Income to Adjusted EBITDA (Amounts in Thousands)
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
For the Three Months Ended For the Fiscal Years Ended
June 30, 2013 June 24, 2012 June 30, 2013 June 24, 2012
Net income attributable to Unifi, Inc. $10,516 $11,278 $16,635 $11,491
Provision (benefit) for income taxes 5,385 (4,919) 13,344 (1,979)
Interest expense, net 258 3,074 3,791 14,152
Depreciation and amortization expense 5,142 6,533 23,860 26,225
EBITDA 21,301 15,966 57,630 49,889
Non-cash compensation expense, net 391 378 2,287 2,382
Loss on extinguishment of debt - 2,741 1,102 3,203
Loss on previously held equity interest - - - 3,656
Operating expenses for Repreve Renewables 374 309 1,293 911
Restructuring charges and startup costs 1,135 (84) 1,285 209
Other (170) 334 497 (710)
Adjusted EBITDA Including Equity Affiliates 23,031 19,644 64,094 59,540
Equity in earnings of unconsolidated affiliates (4,732) (5,574) (11,444) (19,740)
Adjusted EBITDA $18,299 $14,070 $52,650 $39,800

Working Capital Highlights (Amounts in Thousands)
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
June 30, March 24, June 24,
2013 2013 2012
Receivables, net $98,392 $97,219 $99,236
Inventory 110,667 108,749 112,750
Accounts payable (45,544) (53,561) (48,541)
Accrued expenses (18,383) (11,640) (13,883)
Adjusted Working Capital $145,132 $140,767 $149,562
Adjusted Working Capital $145,132 $140,767 $149,562
Cash 8,755 15,901 10,886
Other current assets 9,016 10,425 15,125
Accrued interest (102) (205) (398)
Other current liabilities (916) (8,130) (8,569)
Working Capital $161,885 $158,758 $166,606

Capital Structure (Amounts in Thousands)
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
June 30, March 24, June 24,
2013 2013 2012
Cash $8,755 $15,901 $10,886
Revolver Availability, Net 36,105 34,199 37,122
Total Liquidity $44,860 $50,100 $48,008
ABL Revolver $52,500 $51,300 $51,000
ABL Term Loan 42,800 44,600 50,000
Term B Loan - - 20,515
Other 2,453 2,468 37
Total Debt $97,753 $98,368 $121,552
Cash 8,755 15,901 10,886
Net Debt $88,998 $82,467 $110,666

Key Dates
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
Form 10-K for the fiscal year ended June 30, 2013
Filing due on Friday, September 13, 2013

7th Annual Investor Update Meeting
Monday, September 16, 2013
Hilton New York Hotel, NY, NY
Contact: Rebecca Landas
(336) 316-5676
rlandas@unifi.com

Quiet period for the quarter ended September 29, 2013
Begins on Friday, September 27, 2013
Extends through our Earnings Release date
Expected to be Thursday, October 24, 2013

Non-GAAP Financial Measures
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)
Included in this presentation are certain non-GAAP financial measures designed to complement the financial information presented in accordance with generally accepted accounting principles in the United States of America ("GAAP") because management believes such measures are useful to investors. EBITDA, Adjusted EBITDA Including Equity Affiliates and Adjusted EBITDA EBITDA represents net income or loss attributable to Unifi, Inc. before income tax expense, net interest expense, and depreciation and amortization expense (excluding interest portion of amortization). Adjusted EBITDA Including Equity Affiliates represents EBITDA adjusted to exclude non-cash compensation expense net of distributions, gains or losses on extinguishment of debt, loss on previously held equity interest, operating expenses for Repreve Renewables, restructuring charges and startup costs, and certain other adjustments. Such other adjustments include gains or losses on sales or disposals of property, plant and equipment, currency and derivative gains or losses, certain employee healthcare expenses, and other operating or non-operating income or expense items necessary to understand the underlying results of the Company. Adjusted EBITDA represents Adjusted EBITDA Including Equity Affiliates adjusted to exclude equity in earnings and losses of unconsolidated affiliates. We present Adjusted EBITDA as a supplemental measure of our operating performance. We also present Adjusted EBITDA because we believe such measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. EBITDA, Adjusted EBITDA Including Equity Affiliates and Adjusted EBITDA are alternative views of performance used by management, and we believe that investors' understanding of our performance is enhanced by disclosing these performance measures. Our management uses Adjusted EBITDA: (i) as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of (a) items directly related to our asset base (primarily depreciation and amortization) and (b) items that we would not expect to occur as a part of our normal operating business; (ii) for planning purposes, including the preparation of our annual operating budget; (iii) as a valuation measure for evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures and expand our business; and (iv) as one measure in determining the value of other acquisitions and dispositions. Adjusted EBITDA is also a key performance metric utilized in the determination of variable compensation. We believe that the use of EBITDA, Adjusted EBITDA Including Equity Affiliates and Adjusted EBITDA as operating performance measures provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets, among otherwise comparable companies. We also believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because cash expenditures on interest are, by definition, available to pay interest, and tax expense is inversely correlated to interest expense because tax expense decreases as deductible interest expense increases; and depreciation and amortization are non-cash charges. Equity in earnings and losses of unconsolidated affiliates is excluded because such earnings or losses do not reflect our operating performance. The other items excluded from Adjusted EBITDA are excluded in order to better reflect the performance of our continuing operations. In evaluating EBITDA, Adjusted EBITDA Including Equity Affiliates and Adjusted EBITDA, you should be aware that in the future we may incur expenses similar to the adjustments in this presentation. Our presentation of EBITDA, Adjusted EBITDA Including Equity Affiliates and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. EBITDA, Adjusted EBITDA Including Equity Affiliates and Adjusted EBITDA are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income, operating income or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.

Non-GAAP Financial Measures - continued
Unifi, Inc.
Fourth Qtr. Conf. Call
July 25, 2013
(Unaudited)

Each of our Adjusted EBITDA and Adjusted EBITDA Including Equity Affiliates measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
• it does not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments;

• it does not reflect changes in, or cash requirements for, our working capital needs;

• it does not reflect the interest expense or the cash requirements necessary to service interest or to make principal payments on our debt;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future,
and our Adjusted EBITDA (or our Adjusted EBITDA Including Equity Affiliates) measure does not reflect any cash requirements for such replacements;

• it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;

• it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our on-going operations;

• it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and

• other companies in our industry may calculate this measure differently than we do, which may limit its usefulness as a comparative measure.

Because of these limitations, neither Adjusted EBITDA nor Adjusted EBITDA Including Equity Affiliates should be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. You should compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only as supplemental information.