UNISYNC Reports Q3 Fiscal 2023 Results

TORONTO, Aug. 15, 2023 (GLOBE NEWSWIRE) -- Unisync Corp. ("Unisync") (TSX:"UNI") (OTC:"USYNF") announces its financial results for the third quarter ended June 30, 2023 of its 2023 fiscal year (“Q3 2023”). Unisync operates through two business units: Unisync Group Limited (“UGL”) with operations throughout Canada and the USA and 90% owned Peerless Garments LP (“Peerless”), a domestic manufacturing operation based in Winnipeg, Manitoba. UGL is a leading customer-focused provider of corporate apparel, serving many leading Canadian and American iconic brands. Peerless specializes in the production and distribution of highly technical protective garments, including military operational clothing and accessories for a broad spectrum of Federal, Provincial and Municipal government departments and agencies.

Results for Q3 2023 versus Q3 2022
Revenue for Q3 2023 of $25.4 million rose by $0.7 million or 3% from Q3 2022, due to a $0.9 million revenue improvement in the UGL segment less a $0.4 million revenue decrease in the Peerless segment and less a $0.2 million decrease in intersegment revenue eliminations. UGL segment revenue of $22.7 million increased by 4% over the same period in the prior year on an improvement in sales to the segment’s airline accounts. The increase in sales to the Company’s airline accounts was caused by the continued post-pandemic rebound in the airline industry where staffing levels have surged above pre-pandemic levels. The revenue decrease in the Peerless segment in the current quarter was due to lower uniform product sales to the Department of National Defence (“DND”) on account of delays in the exercise of contract options and the lack of new contract orders.

Gross profit for Q3 2023 of $1.9 million was down $2.6 million from the third quarter of fiscal 2022 and the gross profit margin declined to 7.4% of revenue from 18.1%. The UGL segment experienced a decline in gross profit to $1.3 million or 6% of segment revenue compared to $3.9 million or 18% of segment revenue in the same quarter in the prior year because of a $1.8 million revaluation of the weighted average cost of inventory in the current period to adjust for the sharp drop in offshore container delivery costs since the peak experienced in June 2022, the absorption of higher outbound courier costs to deliver product to customers and costs associated with the startup of the new Guelph satellite 40,000 sq. ft. distribution facility which opened in July. Despite the decrease in Peerless segment revenue, gross profit of $0.6 million in that segment was unchanged from the prior year due to the higher margin mix of product sales.