Unisync Corp. Announces Closing of Utility Garments Acquisition, Additional Board Appointment and Issuance of Common Shares to Subscription Receipt Holders

Unisync close on Utility Garment Acquisition Octobe 1 2018

Unisync Agrees to Acquire Montreal Based Utility Garments Inc. and Announces $8,000,000 Bought Deal Private Placement

Air Canada’s New Uniforms Recognized Internationally for Best Corporate Design

Air Canada is the first North American company to receive the award from Europe’s Professional Clothing Awards. This is Air Canada’s third award for Air Canada’s new uniform program in 2018. 

Unisync Reports Improved Financial Results for the Six Month Period Ended March 31, 2018

VANCOUVER, British Columbia, May 03, 2018 – Unisync Corp. (TSXV:UNI) (the “Company”) reported revenue for the six months ended March 31, 2018 of $50.0 million as compared to $28.2 million for the same period ended March 31, 2017.

The Company realized net income and total comprehensive income of $6.5 million in the six month period ended March 31, 2018 compared to a net loss and total comprehensive loss of $0.1 million in the same period last year. Cash flow from operations, before non-cash working capital items and distributions to minority partner, was $10.0 million for the first half of Fiscal 2018 versus $0.8 million for the same period last year. The improvement in net income reflects a return to more normal gross profit margins following a significant and sustained period of reduced margins caused by the precipitous drop in the value of the Canadian dollar and its consequent effect on our cost of goods purchased offshore. The proven effect of economies of scale associated with greater absorption of fixed costs with the increase in revenue also played a large role in the improved
profitability.

The Company operates through two business segments: Unisync Group Limited (“UGL”) of Mississauga, Ontario and Peerless Garments LP (“Peerless”) of Winnipeg, Manitoba. The large increase in revenue year-over-year was the result of the UGL segment’s shipment of new uniform kits to approximately 23,000 uniformed employees of the Company’s largest airline account, Air Canada. The UGL segment demonstrated the capabilities of its distribution team and the handling capacity of its Guelph distribution facility to execute the large airline account’s new uniform rollout by delivering record revenue of $33.3 million in the second quarter of fiscal 2018 compared to $8.1 million in the same period last year. The Peerless segment’s second quarter revenue of $4.0 million declined by 27% over the same period in the prior year due to a delay in the release of new contracts and in the exercise of outstanding options on existing contracts by the Department of National Defence (“DND”), that segment’s largest customer.

Business Outlook

The launch of a re-designed uniform program for a large new or existing client is a major undertaking both for the client and our Company. Extensive involvement and pre-staging of resources is required from early in the design process to the actual launch and changeover to the new uniforms by a team of people responsible for the implementation process at both the client and Company organizations. This re-design process can span up to a two year period before the actual launch takes place largely due to the extensive selection and quality control process that these clients go through. It also explains why it is often 10 years or more before these companies undertake another re-design of their existing program. A launch involves the delivery of kits that may include two or more pieces of each uniform item per employee. As a result, lower replenishment deliveries are expected during the first couple of quarters following a rollout but volumes then return to normal “steady state” maintenance and replacement levels during the following years of these typically long-term engagements.

As announced on April 3, 2018, UGL was selected by the North American Association of Uniform Manufacturers and Distributors to receive the Image of the Year Award in the “Transportation – People” category for its involvement in the design and production of this new airline uniform. In addition, the Air Canada new uniform program was also awarded the highly prestigious “Best of the Best” Award presented to the highest scoring entry in recognition of overall excellence.

The Company’s second largest airline account, Alaska Airlines, recently unveiled its new custom uniforms collection and is scheduled to officially rollout its new uniforms to its employees starting in late 2019. UGL will be responsible for all aspects of the program including manufacturing, quality, safety, inventory planning, online ordering, customer service, and warehouse and distribution. These successes have led to interest from other companies in the North American airline sector and the Company is presently pursuing these new opportunities.

The Peerless business segment is well positioned to increase revenues and profitability over the balance of fiscal 2018 with $29 million in firm contracts and options on hand as at March 31 2018.

More detailed information is contained in the Company’s Interim Financial Statements for the period ended March 31, 2018 and Management Discussion and Analysis dated May 3, 2018 which may be accessed at www.sedar.com.

On Behalf of the Board of Directors

Douglas F. Good
CEO

Investor relations contact:

Douglas F. Good, CEO at 778-370-1725

Email: dgood@unisyncgroup.com

Forward Looking Statements: This news release may contain forward-looking statements that involve known and unknown risk and uncertainties that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Any forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

UNISYNC RECEIVES “BEST OF THE BEST” OVERALL DESIGN AWARD

 Toronto ON, MARCH 28 2018: Unisync Corp. (TSXV: “UNI”) is pleased to announce that its wholly owned subsidiary Unisync Group Limited (“Unisync Group”) has been selected by the North American Association of Uniform Manufacturers and Distributors (“NAUMD”) to receive the Image of the Year Awards in the “Transportation – People” category for the recent new designs of the entire Image Apparel Program for Air Canada. In addition, the new Air Canada Image Apparel Program has also been awarded the highly prestigious “Best of the Best” Award. This award is presented to the highest scoring entry in recognition of overall excellence.

In 2017 Air Canada introduced their fresh, proud, new brand identity which included a new comprehensive uniform program for Air Canada’s 25,000 domestic and international employees. Unisync worked closely with Canadian designer Christopher Bates, who was selected by Air Canada to align the new program with its brand, vision, and corporate culture. Ultimately, a two-year extensive research and development phase led to the final program which balances compelling visual aesthetics with functionality, safety, comfort, and longevity. A key element in the program is the unifying Air Canada signature red accents throughout the various designs. The uniforms are best described as: contemporary-classic, fresh, premium quality, tasteful and stylish.

“I am pleased that the extensive effort on the part of Air Canada’s management, their designer and our Unisync team has resulted in these prestigious awards. We would like to thank the NAUMD for their recognition,” commented James Bottoms, President, Unisync Group.

“The new uniforms our employees now proudly wear powerfully express Air Canada’s transformation into a leading global carrier. Along with projecting the professionalism of our employees, they also reflect our airline’s Canadian values as captured by designer Christopher Bates. We thank Unisync, our employees, who participated enthusiastically in the process, and everyone else involved in the program and we are delighted these efforts have been recognized by NAUMD,” said Andrew Yiu, Vice President, Product at Air Canada.

NAUMD has been recognizing the best workplace apparel programs with its Image of the Year Awards since 1978. Independent judges evaluate the programs on 1) originality of design, 2) projection of branding, 3) functionality for the job, and 4) use of technology and innovation. This most recent Image of the Year Award is the 19th received by Unisync Group and its subsidiaries since joining the organization. This is the first time Unisync Group has been awarded the “Best of the Best” award.

ABOUT UNISYNC

Unisync Corp. operates through two business units: Unisync Group of Mississauga, Ontario, and Peerless Garments LP (“Peerless”) of Winnipeg, Manitoba. Unisync Group is a leading customer-focused provider of corporate apparel, serving a list of Canadian iconic brands through operations in Vancouver, Calgary, Mississauga, Guelph, Carleton (Ottawa Region), Montreal and the Maritimes.  Peerless specializes in the production and distribution of highly technical protective garments, military operational clothing, and accessories for a broad spectrum of Federal, Provincial and Municipal government departments and agencies. The Unisync Group is a vertically integrated Canadian enterprise with exceptional capabilities in garment design, domestic manufacturing, and off-shore outsourcing, including state-of-the-art web based B2B ordering, distribution, and program management.

For more information on our capabilities, products and services please visit our website at www.unisyncgroup.com.

 

On Behalf of the Board of Directors

Douglas F. Good, CEO

Investor relations contact: 

Douglas F Good at 778-370-1725

Email dgood@unisyncgroup.com

 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NAUMD Announces 2018 Image of the Year Award Winners

 Annual competition honors best apparel programs in North America;

Air Canada named “Best of the Best”

 

2018 Best of the Best Winner: Air Canada, Designed by Christopher Bates and Manufactured by Unisync

 

March 28, 2018 04:10 PM Eastern Daylight Time

 

  1. LOUIS–(BUSINESS WIRE)–The North American Association of Uniform Manufacturers and Distributors (NAUMD) announces the Image of the Year (IOY) Award winners for the best apparel programs in North America. The industry’s highest achievement, the awards recognize the most fashionable, forward-thinking and innovative commercial apparel designs.

“Apparel designs have a significant impact on how a customer views a business, and can make a substantial difference in customer retention, which is why so many companies are investing in programs that enhance their brand”

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Ten companies received the best dressed nod, with Air Canada also winning the prestigious “Best of the Best” award, which spans across all categories. The award-winning look, designed by Christopher Bates and developed and manufactured by Unisync, brings the brand to life through a fully coordinated clothing collection. Standout items include tailored suiting and dresses colored in black and charcoal, signature dress shirts, custom designed 100% silk print ties and scarves, and signature Air Canada red belts and handbags.

The winners by category are:

  • Entertainment Venues: Universal Orlando, created by Universal Orlando
  • Gaming: Gateway Casinos & Entertainment, created by Unisync Group Limited
  • Healthcare: Fresenius Kidney Care, created by Fashion Seal Healthcare
  • Hotels – Single Location: InterContinental Washington, DC, The Wharf, created by Cintas/Fourmy
  • Hotels – Multiple Locations: Moxy Hotel, created by Cintas/Fourmy
  • Restaurants – Single Location: Robert Irvine’s Public House, created by Cintas/Fourmy
  • Restaurants – Multiple Locations: McDonald’s, created by Twin Hill & Way to Be
  • Service/Industrial: Mercedes-Benz, created by Aramark Uniform Service
  • Transportation – People, and Best of the Best: Air Canada, created by Unisync Group Limited
  • Transportation – Products: Coca-Cola Bottling Company United, Inc., created by Cintas

Since 1978, the IOY Awards have honored the image apparel programs and the organizations, manufacturers and distributors that have created them. Winning this award shows that these organizations have mastered the concept of fashion and function using the best image and brand projection planning. Specifically designed to assist in identifying staff professionals, image apparel can also extend a company’s brand, increase safety, enhance interior décor and improve employee morale.

“Apparel designs have a significant impact on how a customer views a business, and can make a substantial difference in customer retention, which is why so many companies are investing in programs that enhance their brand,” said Steve Zalkin, NAUMD president. “The IOY awards recognize the businesses that have made employee appearance and guest satisfaction a priority to create a competitive edge in their markets.”

NAUMD honored its award recipients last night during the association’s 2018 Annual Convention, held in St. Louis, MO, at the Marriott Grand. For more information about the NAUMD or the IOY Awards, visit www.naumd.com, or email Steve Zalkin, steve@naumd.com.

About NAUMD

The North American Association of Uniform Manufacturers & Distributors (NAUMD) has served as the voice of the uniform and image apparel industries since 1933. Its 500+ members include manufacturers, designers, producers, and retailers of uniforms, as well as those who produce products and services for the industry at large.

The NAUMD works to protect the interests of its members through a series of advocacy, education, and public relations campaigns intended to arm them with the tools needed to retain and capture business in a global economy. The association has authored a number of position papers and has an extensive library of information from which members can further their understanding of the uniform marketplace. NAUMD also hosts an annual convention and trade show where attendees can source products, learn about trends, and gain practical, take-home knowledge to better run their business.

Contacts

NAUMD
Steve Zalkin, 402-639-0498