UNISYNC Reports Q3 Fiscal 2023 Results - Seite 2

At $4.0 million, total general and administrative expenses for Q3 2023 were down $0.4 million or 9% from Q3 2022 on a reduction in senior management and customer service staff levels from the same period in the prior period.

Interest expense of $0.8 million in the current quarter was up $0.4 million from the same quarter of fiscal 2022 due to higher interest costs combined with the need for greater short-term borrowings to finance the growth in inventory and receivable levels.

The Company reported a net loss before tax of $3.0 million in the quarter compared to a net loss of $0.5 million in the same quarter last year. Adjusted EBITDA, before the $1.8 million non-cash inventory revaluation in the quarter, was $1.0 million versus $1.2 million for the corresponding 3 month period last year.

More detailed information is contained in the Company’s Consolidated Financial Statements for the quarter ended June 30, 2023 and Management Discussion and Analysis dated August 10, 2023 which may be accessed at www.sedar.com.

Business Outlook
The Company’s North American airline accounts continue to experience strong demand and, although volumes are down from the unprecedented volumes experienced in the first half of fiscal 2023 due to a massive ramp-up in employee counts, ongoing orders have returned to pre-pandemic levels. The Company expects that this will continue to result in strong uniform sales to its airline accounts throughout the remainder of fiscal 2023 and thereafter. The lead time for offshore ocean shipments continues to improve, and the costs of container shipments have stabilized at pre-pandemic levels following the inflated levels experienced during the pandemic and into early fiscal 2023. New product orders are at an all-time high as evidenced by the increase in deferred revenue to $21.3 million at June 30, 2023 compared to $16.7 million as at September 30, 2022 and $5.0 million as at September 30, 2021. Approximately 60% of the deferred revenue at the end of Q3 2023 represents deposits on custom garment production in process, with the balance representing customer deposits at full selling prices covering slow moving inventory awaiting a disposition decision.