8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 26, 2017

UNIFI, INC.

(Exact name of registrant as specified in its charter)

New York	1-10542	11-2165495
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
	7201 West Friendly Avenue Greensboro, North Carolina 27410
	(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (336) 294-4410

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b‑2 of this chapter).  

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02.Results of Operations and Financial Condition.

On April 26, 2017, Unifi, Inc. (the “Company”) issued a press release announcing its operating results for its fiscal third quarter ended March 26, 2017, a copy of which is attached hereto as Exhibit 99.1.  

Item 7.01.Regulation FD Disclosure.

On April 26, 2017, the Company will host a conference call to discuss its operating results for its fiscal third quarter ended March 26, 2017.  A copy of the materials prepared for use by management during this conference call is attached hereto as Exhibit 99.2.  

Item 9.01.Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished herewith:

Exhibit No.	Description
99.1	Press release of Unifi, Inc., dated April 26, 2017.
99.2	Earnings call presentation materials.

The information in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	UNIFI, INC.
Date:  April 26, 2017	By:	/s/ SEAN D. GOODMAN
		Sean D. Goodman
		Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release of Unifi, Inc., dated April 26, 2017.
99.2	Earnings call presentation materials.

EX-99.1

Exhibit 99.1

Unifi Announces Third Quarter Fiscal 2017 Results

Ongoing success of international strategy to grow sales of premium value-added products including REPREVE^®.

GREENSBORO, N.C., April 26, 2017 – Unifi, Inc. (NYSE: UFI), one of the world’s leading innovators in synthetic and recycled yarns, today released operating results for the third quarter ended March 26, 2017.

Third Quarter and Year-to-Date Fiscal 2017 Highlights

• Volume, measured by pounds sold, increased by more than 8% for the third quarter and by more than 10% for the first nine months of fiscal 2017 compared to the third quarter and first nine months of fiscal 2016, respectively, driven by the strength of the global premium value-added (“PVA”) portfolio;

• Gross margin was 13.1% for the third quarter of fiscal 2017, compared to 14.5% for the prior fiscal year third quarter, while gross margin was 14.0% compared to 13.8% for the year-to-date periods of fiscal 2017 and 2016, respectively;

• Operating income was $9.1 million for the third quarter of fiscal 2017 compared to $10.0 million for the prior fiscal year third quarter, and operating income was $30.7 million compared to $28.3 million for the year-to-date periods of fiscal 2017 and 2016, respectively;

• Net income for the third quarter of fiscal 2017 was $9.2 million compared to $9.7 million in the prior fiscal year third quarter.  Fiscal 2017 third quarter net income includes a year-over-year decline in earnings from Parkdale America, LLC (“PAL”) of $1.5 million.   Net income for the first nine months of fiscal 2017 was $23.2 million compared to $24.2 million in the prior year-to-date period.  Net income for the fiscal 2017 year-to-date period includes a year-over-year decline in earnings from PAL of $2.8 million and a $1.7 million loss on a non-core divestiture;

• Basic EPS was $0.50 for the third quarter of fiscal 2017, compared to $0.54 for the third quarter of fiscal 2016, while Basic EPS was $1.28 for the first nine months of fiscal 2017 compared to $1.35 for the first nine months of fiscal 2016; and

• REPREVE^® Bottle Processing Center expanded potential revenue streams, receiving Letter of No Objection from the Food and Drug Administration to sell recycled bottle flake for food-grade packaging.

Note: The estimate of earnings for Parkdale America, LLC on an after-tax basis utilizes the 35% U.S. federal tax rate.

“Our international strategy has not only enhanced our ability to serve our customers but also provided us with valuable diversification throughout fiscal 2017. During this fiscal year, strength in the international PVA business has counterbalanced headwinds in the domestic market driven by weak retail sales, elevated inventory levels, and pressure from higher raw material costs. For fiscal 2017, we continue to expect results to be broadly in-line with fiscal 2016,” said Tom Caudle, President of Unifi.

Third Quarter Fiscal 2017 Operational Review

Net sales were $160.9 million for the third quarter of fiscal 2017, compared to net sales of $161.3 million for the third quarter of fiscal 2016.  Operating income was $9.1 million in the third quarter of fiscal 2017, compared to $10.0 million in the third quarter of fiscal 2016.  Continued strong PVA performance in Asia and Brazil was offset by challenging domestic market conditions and pressures from comparatively higher raw material costs.  

Net income was $9.2 million for the third quarter of fiscal 2017, compared to net income of $9.7 million for the third quarter of fiscal 2016.  Net income for the fiscal 2017 quarter benefitted from foreign exchange favorability associated with the strengthening of the Brazilian currency, lower bad debts, and a lower effective tax rate, but was unfavorably impacted by a $1.5 million decline in earnings from PAL. After-tax earnings from PAL declined from approximately $2.4 million in the third quarter of fiscal 2016 to approximately $0.9 million in the third quarter of fiscal 2017. Basic EPS was $0.50 for the third quarter of fiscal 2017, compared to $0.54 for the third quarter of fiscal 2016.

Adjusted EBITDA was $14.4 million for the third quarter of fiscal 2017, compared to $15.4 million for the third quarter of fiscal 2016.

Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. The schedules included in this press release calculate Adjusted EPS and reconcile Adjusted EBITDA and Adjusted Net Income to Net income attributable to Unifi, Inc.

Foreign currency translation in the third quarter resulted in an increase to net sales of $4.6 million and gross profit of $0.9 million compared to the prior fiscal year third quarter.

Net debt was $104.2 million at March 26, 2017, compared to $106.4 million at June 26, 2016.

Unifi Announces Third Quarter Fiscal 2017 Results 2

First Nine Months of Fiscal 2017 Operational Review

Net sales were $476.0 million for the nine months ended March 26, 2017, compared to net sales of $479.8 million for the nine months ended March 27, 2016.  Operating income grew year-over-year to $30.7 million in the first nine months of fiscal 2017 compared to $28.3 million in the first nine months of fiscal 2016. Strong operating results in Asia and Brazil, driven by the global PVA portfolio, was partially offset by weaker performance in the domestic market.

Net income was $23.2 million for the first nine months of fiscal 2017, compared to $24.2 million for the first nine months of fiscal 2016.  Net income for the first nine months of fiscal 2017 was favorably impacted by a benefit for bad debts and a lower effective tax rate, but adversely impacted by a loss of $1.7 million associated with a non-core divestiture and a $2.8 million decline in earnings from PAL.  After-tax earnings from PAL declined from approximately $3.4 million in the first nine months of fiscal 2016 to approximately $0.6 million in the first nine months of fiscal 2017. Basic EPS was $1.28 for the first nine months of fiscal 2017 compared to $1.35 for the first nine months of fiscal 2016.

Adjusted Net Income and Adjusted EPS, both excluding the loss from a non-core divestiture, were $24.8 million and $1.37, respectively, for the first nine months of fiscal 2017 compared to $24.9 million and $1.39, respectively, for the first nine months of fiscal 2016.  Of note, both Adjusted Net Income and Adjusted EPS were impacted by $2.8 million of weaker results from PAL.  Adjusted EBITDA, which excludes changes in earnings from PAL, increased to $46.8 million for the first nine months of fiscal 2017, compared to $44.8 million for the first nine months of fiscal 2016.

Foreign currency translation resulted in an increase to net sales of $7.9 million and gross profit of $1.3 million compared to the prior fiscal year period.

Third Quarter Fiscal 2017 Earnings Conference Call

The Company will provide additional commentary regarding its third quarter fiscal 2017 results and other developments during its earnings conference call on April 26, 2017, at 8:30 a.m. Eastern Time.  The call can be accessed via a live audio webcast on the Company's website at http://investor.unifi.com.  For those investors that cannot access the webcast, conference call lines will be available by dialing (877) 359-9508 (Domestic) or (224) 357-2393 (International) and, when prompted, providing conference ID number 1801784. Additional supporting materials and information related to the call will also be available on the Company’s website.

###

Unifi Announces Third Quarter Fiscal 2017 Results 3

About Unifi

Unifi, Inc. (NYSE: UFI) is a multi-national manufacturing company that produces and sells recycled and other processed yarns designed to meet customer specifications, and premium value-added (“PVA”) yarns with enhanced performance characteristics.  Unifi maintains one of the textile industry’s most comprehensive polyester and nylon product offerings.  Unifi enhances demand for its products, and helps others in creating a more effective textile industry supply chain, through the development and introduction of branded yarns that provide unique performance, comfort and aesthetic advantages.  In addition to its flagship REPREVE^® products – a family of eco-friendly yarns made from recycled materials – key Unifi brands include: SORBTEK^®, REFLEXX^®, aio^® - all-in-one performance yarns, SATURA^®, AUGUSTA^® A.M.Y.^®, MYNX^® UV, and MICROVISTA^®.  Unifi's yarns are readily found in the products of major brands in the apparel, hosiery, automotive, home furnishings, industrial and other end-use markets.  For more information about Unifi, visit www.unifi.com; to learn more about REPREVE^®, visit www.repreve.com.

For more information, contact:

Chris Donovan or Chris Hodges

Alpha IR Group

312-445-2870

UFI@alpha-ir.com

Financial Statements and Reconciliations to Adjusted Results to Follow

Unifi Announces Third Quarter Fiscal 2017 Results 4

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

	March 26, 2017		June 26, 2016
ASSETS
Cash and cash equivalents	$	30,231	$	16,646
Receivables, net		87,249		83,422
Inventories		109,647		103,532
Other current assets		18,321		8,292
Total current assets		245,448		211,892
Property, plant and equipment, net		201,516		185,101
Investments in unconsolidated affiliates		117,910		117,412
Other non-current assets		5,381		11,037
Total assets	$	570,255	$	525,442
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable and other current liabilities	$	61,713	$	61,522
Current portion of long-term debt		16,823		13,786
Total current liabilities		78,536		75,308
Long-term debt		116,474		107,805
Other long-term liabilities		21,383		15,384
Total liabilities		216,393		198,497
Total Unifi, Inc. shareholders’ equity		353,862		325,031
Non-controlling interest		—		1,914
Total shareholders’ equity		353,862		326,945
Total liabilities and shareholders’ equity	$	570,255	$	525,442

Unifi Announces Third Quarter Fiscal 2017 Results 5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

	For the Three Months Ended						For the Nine Months Ended
	March 26, 2017			March 27, 2016			March 26, 2017			March 27, 2016
Net sales	$	160,896		$	161,278		$	476,020		$	479,779
Cost of sales		139,766			137,914			409,213			413,618
Gross profit		21,130			23,364			66,807			66,161
Selling, general and administrative expenses		13,000			12,142			37,278			35,391
(Benefit) provision for bad debts		(92	)		411			(554	)		1,583
Other operating (income) expense, net		(885	)		819			(636	)		879
Operating income		9,107			9,992			30,719			28,308
Interest income		(126	)		(190	)		(455	)		(519	)
Interest expense		825			908			2,431			2,708
Loss on sale of business		—			—			1,662			—
Equity in earnings of unconsolidated affiliates		(1,600	)		(4,167	)		(2,073	)		(7,330	)
Income before income taxes		10,008			13,441			29,154			33,449
Provision for income taxes		831			4,166			6,481			10,194
Net income including non-controlling interest		9,177			9,275			22,673			23,255
Less: net loss attributable to non-controlling interest		—			(414	)		(498	)		(923	)
Net income attributable to Unifi, Inc.	$	9,177		$	9,689		$	23,171		$	24,178
Net income attributable to Unifi, Inc. per common share:
Basic	$	0.50		$	0.54		$	1.28		$	1.35
Diluted	$	0.50		$	0.53		$	1.26		$	1.31
Weighted average common shares outstanding:
Basic		18,210			17,838			18,105			17,861
Diluted		18,493			18,417			18,420			18,482

Unifi Announces Third Quarter Fiscal 2017 Results 6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	For the Nine Months Ended
	March 26, 2017			March 27, 2016
Cash and cash equivalents at beginning of year	$	16,646		$	10,013
Operating activities:
Net income including non-controlling interest		22,673			23,255
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:
Equity in earnings of unconsolidated affiliates		(2,073	)		(7,330	)
Distributions received from unconsolidated affiliates		1,500			2,947
Depreciation and amortization expense		14,887			13,040
Loss on sale of business		1,662			—
Deferred income taxes		6,305			7,015
Other, net		325			1,899
Changes in assets and liabilities		(15,993	)		(2,583	)
Net cash provided by operating activities		29,286			38,243
Investing activities:
Capital expenditures		(27,875	)		(36,769	)
Other, net		(179	)		93
Net cash used in investing activities		(28,054	)		(36,676	)
Financing activities:
Proceeds from long-term debt		107,500			138,265
Payments on long-term debt		(98,568	)		(128,001	)
Common stock repurchased and retired under publicly announced programs		—			(6,211	)
Other, net		3,356			391
Net cash provided by financing activities		12,288			4,444
Effect of exchange rate changes on cash and cash equivalents		65			(737	)
Net increase in cash and cash equivalents		13,585			5,274
Cash and cash equivalents at end of period	$	30,231		$	15,287

Unifi Announces Third Quarter Fiscal 2017 Results 7

RECONCILIATIONS OF REPORTED RESULTS TO ADJUSTED RESULTS

(Unaudited)

(In thousands)

EBITDA and Adjusted EBITDA

The reconciliations of the amounts reported under U.S. generally accepted accounting principles (“GAAP”) for Net income attributable to Unifi, Inc. to EBITDA and Adjusted EBITDA are as follows:

	For the Three Months Ended						For the Nine Months Ended
	March 26, 2017			March 27, 2016			March 26, 2017			March 27, 2016
Net income attributable to Unifi, Inc.	$	9,177		$	9,689		$	23,171		$	24,178
Interest expense, net		699			709			1,945			2,171
Provision for income taxes		831			4,166			6,481			10,194
Depreciation and amortization expense		5,067			4,192			14,463			12,584
EBITDA		15,774			18,756			46,060			49,127
Equity in earnings of PAL		(1,345	)		(3,630	)		(914	)		(5,214	)
EBITDA excluding PAL		14,429			15,126			45,146			43,913
Loss on sale of business		—			—			1,662			—
Key employee transition costs		—			236			—			873
Adjusted EBITDA	$	14,429		$	15,362		$	46,808		$	44,786

Note: Amounts presented in the reconciliations above may not be consistent with amounts included in the Company’s condensed consolidated financial statements due to the impact of the non-controlling interest in Repreve Renewables, LLC (“Renewables”). Any such inconsistencies are insignificant and are integral to the reconciliations.

Unifi Announces Third Quarter Fiscal 2017 Results 8

Adjusted Net Income and Adjusted EPS

The tables below set forth reconciliations of (i) Income before income taxes (“Pre-tax Income”), Provision for income taxes (“Tax Impact”) and Net income attributable to Unifi, Inc. (“Net Income”) to Adjusted Net Income and (ii) Basic Earnings Per Share (“Basic EPS”) to Adjusted EPS.

	For the Three Months Ended March 26, 2017										For the Three Months Ended March 27, 2016
	Pre-tax Income		Tax Impact			Net Income		Basic EPS			Pre-tax Income		Tax Impact			Net Income		Basic EPS
GAAP results	$	10,008	$	(831	)	$	9,177	$		0.50	$	13,441	$	(4,166	)	$	9,689	$		0.54
Key employee transition costs (1)		—		—			—			—		400		(132	)		268			0.02
Adjusted results	$	10,008	$	(831	)	$	9,177	$		0.50	$	13,841	$	(4,298	)	$	9,957	$		0.56
Weighted average common shares									18,210										17,838
	For the Nine Months Ended March 26, 2017										For the Nine Months Ended March 27, 2016
	Pre-tax Income		Tax Impact			Net Income		Basic EPS			Pre-tax Income		Tax Impact			Net Income		Basic EPS
GAAP results	$	29,154	$	(6,481	)	$	23,171	$		1.28	$	33,449	$	(10,194	)	$	24,178	$		1.35
Loss on sale of business (2)		1,662		—			1,662			0.09		—		—			—			—
Key employee transition costs (1)		—		—			—			—		1,037		(355	)		682			0.04
Adjusted results	$	30,816	$	(6,481	)	$	24,833	$		1.37	$	34,486	$	(10,549	)	$	24,860	$		1.39
Weighted average common shares									18,105										17,861

(1)

For the three and nine months ended March 27, 2016, the Company incurred key employee transition costs of $400 and $1,037, respectively, before tax, for transactions in the United States.  The Company estimates the tax benefit of these costs was $132 and $355, respectively, using a 35% tax rate, with no significant deferred tax components. This includes transactions for Renewables, therefore, the amounts reflected here consider impacts to the valuation allowance and non-controlling interest.

(2)

For the nine months ended March 26, 2017, the Company incurred a loss on the sale of its investment in Renewables of $1,662. There is no tax impact for this transaction as the loss is non-deductible.

Unifi Announces Third Quarter Fiscal 2017 Results 9

Non-GAAP Financial Measures

Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include, Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Adjusted Working Capital (collectively, the “non-GAAP financial measures”).

• EBITDA represents Net income attributable to Unifi, Inc. before net interest expense, income tax expense, and depreciation and amortization expense.

• Adjusted EBITDA represents EBITDA adjusted to exclude equity in earnings of Parkdale America, LLC, key employee transition costs, loss on sale of business and certain other adjustments necessary to understand and compare the underlying results of the Company.

• Adjusted Net Income represents Net income attributable to Unifi, Inc. calculated under GAAP, adjusted to exclude the approximate after-tax impact of certain income or expense items (as well as specific impacts to the provision for income taxes) necessary to understand and compare the underlying results of the Company. Adjusted Net Income excludes certain amounts which management believes do not reflect the ongoing operations and performance of the Company, such as key employee transition costs and loss on sale of business.

• Adjusted EPS represents Adjusted Net Income divided by the Company’s basic weighted average common shares outstanding.

• Adjusted Working Capital represents receivables plus inventory, less accounts payable and accrued expenses, which is an indicator of the Company’s production efficiency and ability to manage its inventory and receivables.

The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. The Company may, from time to time, modify the amounts used to determine its non-GAAP financial measures.

We believe that these non-GAAP financial measures better reflect the Company’s underlying operations and performance and that their use, 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.

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 business on a regular basis; (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 a key performance metric utilized in the determination of variable compensation. 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 of Parkdale America, LLC is excluded from Adjusted EBITDA because such earnings do not reflect our operating performance.

Management uses Adjusted Net Income and Adjusted EPS (i) as measurements of net operating performance because they assist us in comparing such performance on a consistent basis, as they remove the impact of (a) items that we would not expect to occur as a part of our normal business on a regular basis and (b) components of the provision for income taxes that we would not expect to occur as a part of our underlying taxable operations; (ii) for planning purposes, including the preparation of our annual operating budget; and (iii) as measures in determining the value of other acquisitions and dispositions.

Historically, EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS aimed to exclude the impact of the non-controlling interest in Renewables, while the consolidated amounts for Renewables were required to be included in the Company’s financial amounts reported under GAAP.

In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, these non-GAAP financial measures should not 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 these measures only as supplemental information.

Cautionary Statement on Forward-Looking Statements

Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management.  The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “seek,” “strive” and words of similar import, or the negative of such words, identify or signal the presence of forward-

Unifi Announces Third Quarter Fiscal 2017 Results 10

looking statements.  These statements are not statements of historical fact; they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement.

Factors that could contribute to such differences include, but are not limited to:  the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing and pricing of raw materials; general domestic and international economic and industry conditions in markets where the Company competes, including economic and political factors over which the Company has no control; changes in consumer spending, customer preferences, fashion trends and end-uses for products; the financial condition of the Company’s customers; the loss of a significant customer; the success of the Company’s strategic business initiatives; volatility of financial and credit markets; the ability to service indebtedness and fund capital expenditures and strategic initiatives; availability of and access to credit on reasonable terms; changes in currency exchange, interest and inflation rates; fluctuations in production costs; the ability to protect intellectual property; employee relations; the impact of environmental, health and safety regulations; the operating performance of joint ventures and other equity investments; and the accurate financial reporting of information from equity method investees.

All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control.  New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company.  Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in the Company’s most recent annual report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by the Company with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.

-end-

Unifi Announces Third Quarter Fiscal 2017 Results 11

EX-99.2

Third Quarter Ended March 26, 2017 (Unaudited Results) Conference Call Presentation Exhibit 99.2

  Cautionary Statement on Forward-Looking Statements Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “seek,” “strive” and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements. These statements are not statements of historical fact; they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement. Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing and pricing of raw materials; general domestic and international economic and industry conditions in markets where the Company competes, including economic and political factors over which the Company has no control; changes in consumer spending, customer preferences, fashion trends and end-uses for products; the financial condition of the Company’s customers; the loss of a significant customer; the success of the Company’s strategic business initiatives; volatility of financial and credit markets; the ability to service indebtedness and fund capital expenditures and strategic initiatives; availability of and access to credit on reasonable terms; changes in currency exchange, interest and inflation rates; fluctuations in production costs; the ability to protect intellectual property; employee relations; the impact of environmental, health and safety regulations; the operating performance of joint ventures and other equity investments; and the accurate financial reporting of information from equity method investees. All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in the Company’s most recent annual report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by the Company with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. Non-GAAP Financial Measures Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include, Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Adjusted Working Capital (collectively, the “non-GAAP financial measures”). • EBITDA represents Net income attributable to Unifi, Inc. before net interest expense, income tax expense, and depreciation and amortization expense. • Adjusted EBITDA represents EBITDA adjusted to exclude equity in earnings of Parkdale America, LLC, key employee transition costs, loss on sale of business and certain other adjustments necessary to understand and compare the underlying results of the Company. • Adjusted Net Income represents Net income attributable to Unifi, Inc. calculated under GAAP, adjusted to exclude the approximate after-tax impact of certain income or expense items (as well as specific impacts to the provision for income taxes) necessary to understand and compare the underlying results of the Company. Adjusted Net Income excludes certain amounts which management believes do not reflect the ongoing operations and performance of the Company, such as key employee transition costs and loss on sale of business. • Adjusted EPS represents Adjusted Net Income divided by the Company’s basic weighted average common shares outstanding. • Adjusted Working Capital represents receivables plus inventory, less accounts payable and accrued expenses, which is an indicator of the Company’s production efficiency and ability to manage its inventory and receivables. The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. The Company may, from time to time, modify the amounts used to determine its non-GAAP financial measures. We believe that these non-GAAP financial measures better reflect the Company’s underlying operations and performance and that their use, 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. 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 business on a regular basis; (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 a key performance metric utilized in the determination of variable compensation. 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 of Parkdale America, LLC is excluded from Adjusted EBITDA because such earnings do not reflect our operating performance. Management uses Adjusted Net Income and Adjusted EPS (i) as measurements of net operating performance because they assist us in comparing such performance on a consistent basis, as they remove the impact of (a) items that we would not expect to occur as a part of our normal business on a regular basis and (b) components of the provision for income taxes that we would not expect to occur as a part of our underlying taxable operations; (ii) for planning purposes, including the preparation of our annual operating budget; and (iii) as measures in determining the value of other acquisitions and dispositions. Historically, EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS aimed to exclude the impact of the non-controlling interest in Repreve Renewables, LLC, while the consolidated amounts for Repreve Renewables, LLC were required to be included in the Company’s financial amounts reported under GAAP. In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, these non-GAAP financial measures should not 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 these measures only as supplemental information. Non-GAAP reconciliations are included in the Appendix of this presentation.

Consolidated Net Income – Q3 FY16 to Q3 FY17 1 2 3 When comparing Net income attributable to Unifi, Inc. from Q3 FY16 to Q3 FY17 on an after-tax basis: 1 Approximates normalizing for key employee transition costs incurred in Q3 FY16. 2 Approximates the change in the Company’s share of earnings from Parkdale America, LLC using the 35% U.S. federal tax rate. 3 Approximates the impact of certain tax benefits that are not ongoing or underlying to the Company’s effective tax rate. 4 Approximates the impact of comparably net favorable foreign currency rates. 5 Includes a benefit for bad debts. Note: The above graphic is intended to depict the approximate impact on Net income attributable to Unifi, Inc. of certain items identified by management. This representation is not intended to depict amounts calculated under GAAP. (dollars in millions) 4 5

Consolidated Net Income – YTD FY16 to YTD FY17 1 2 3 When comparing Net income attributable to Unifi, Inc. from YTD FY16 to YTD FY17 on an after-tax basis: 1 Approximates normalizing for key employee transition costs incurred in Q2 and Q3 FY16. 2 Approximates the loss on the sale of the investment in Repreve Renewables, LLC. 3 Approximates the change in the Company’s share of earnings from Parkdale America, LLC using the 35% U.S. federal tax rate. 4 Approximates the impact of the REPREVE® Bottle Processing Center operations in Reidsville, North Carolina. 5 Approximates the impact of certain tax benefits that are not ongoing or underlying to the Company’s effective tax rate. 6 Approximates the impact of comparably net favorable foreign currency rates. 7 Includes a benefit for bad debts. Note: The above graphic is intended to depict the approximate impact on Net income attributable to Unifi, Inc. of certain items identified by management. This representation is not intended to depict amounts calculated under GAAP. (dollars in millions) 4 5 6 7

Net Sales and Gross Profit Highlights 1, 2 1 Excluding the “All Other” category; see reconciliations on slide 12. 2 As of the fourth quarter of fiscal 2016, the Company updated the composition of its Polyester and Nylon Segments for both the current and comparative prior periods, intending to better reflect downstream sales for the respective product lines. Note: The “Prior Period” ended on March 27, 2016. The “Current Period” ended on March 26, 2017. (dollars in thousands) Three-Month Comparison (Q3 2016 vs. Q3 2017) * The Polyester Segment includes operations in the United States and El Salvador. The Nylon Segment includes operations in the United States and Colombia. The International Segment includes operations in Asia and Brazil.

Net Sales and Gross Profit Highlights 1, 2 1 Excluding the “All Other” category; see reconciliations on slide 12. 2 As of the fourth quarter of fiscal 2016, the Company updated the composition of its Polyester and Nylon Segments for both the current and comparative prior periods, intending to better reflect downstream sales for the respective product lines. Note: The “Prior Period” ended on March 27, 2016. The “Current Period” ended on March 26, 2017. (dollars in thousands) Nine-Month Comparison (YTD 2016 vs. YTD 2017) * The Polyester Segment includes operations in the United States and El Salvador. The Nylon Segment includes operations in the United States and Colombia. The International Segment includes operations in Asia and Brazil.

Equity Affiliates Highlights (dollars in thousands)

Balance Sheet Highlights Net Debt and Total Liquidity (dollars in thousands) Working Capital and Adjusted Working Capital

APPENDIX

Non-GAAP Reconciliations (dollars in thousands) Adjusted EBITDA

Non-GAAP Reconciliations (Continued) (dollars in thousands) Adjusted Net Income and Adjusted EPS

Other Reconciliations (dollars in thousands) Consolidated Net Sales Consolidated Gross Profit 1 As presented on slides 5 and 6.

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