Unisync Reports 45% Increase in Fiscal Q2 Revenues
TORONTO, May 13, 2020 (GLOBE NEWSWIRE) — Unisync Corp. (TSX: “UNI”) (the “Company”) operates through two business segments: Unisync Group Limited (“UGL”) of Mississauga, Ontario and Peerless Garments LP (“Peerless”) of Winnipeg, Manitoba.
Consolidated revenue for the three months ended March 31, 2020 of $27.7 million increased by $8.7 million or 45% over the three months ended March 31, 2019 on a $6.9 million revenue increase in the UGL segment and a $1.8 million revenue improvement in the Peerless segment. UGL segment revenue of $22.8 million increased by 43% over the second quarter in the prior year due in large part to revenues derived from a continuation of the US launch of new corporate imagewear to the segment’s second largest airline account that began in September 2019. The increase in the Peerless segment in the current quarter compares to a poor second quarter last year when results were negatively effected by delays in the receipt of technical fabrics and production capacity issues at sub-contractors.
The Company’s comprehensive net income of $0.6 million in the quarter ended March 31, 2020 compared to a comprehensive loss of $1.3 million in the same quarter last year. Adjusted EBITDA (comprehensive net income before interest expense, income taxes, depreciation and amortization, share-based payment, and acquisition related costs) was $2.5 million for the quarter ended March 31, 2020 compared to negative $0.4 million for the comparable quarter last year. During the second quarter, net income continued to be adversely impacted by a buildup in our professional sales staff and significant non-recurring costs associated with upgrading our various systems to accommodate the Company’s growth opportunities domestically and in the US.