UNISYNC Reports Continued Improving Financial Performance in Q2 Fiscal 2024

TORONTO, May 16, 2024 (GLOBE NEWSWIRE) -- Unisync Corp. (“Unisync") (TSX:"UNI") (OTC:“USYNF”) announces its unaudited financial results for the second quarter ended March 31, 2024 (“Q2 2024”). 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 Q2 2024 versus Q2 2023

Consolidated Revenues for Q2 2024 were $25.7 million, 10.4% lower than revenues experienced in the corresponding quarter last year as its airline business returned to more normal volumes following the 2023 post pandemic rebound. Peerless generated revenues of $ 2.6 million in the current quarter down marginally from the $2.7 million reported for Q2 2023.

Despite the lower level of revenues, the UGL segment experienced a $0.8 million increase in gross profit to $4.4 million or 18.6% of segment revenue compared to $3.6 million or 13.8% of segment revenue in the same three-month period in the prior year. The improved margins were related to customer price increases combined with the impact of lower offshore container delivery costs on the weighted average cost of product sold. In addition, the consolidation of the Carleton Place, Ontario and the Saint-Laurent, Quebec facilities into the more efficient Guelph and Mississauga, Ontario facilities along with the discontinued use of 3PL locations, reduced fixed overhead costs.

The Peerless segment recorded gross profit of $0.9 million or 35.1% of segment revenue against $0.7 million or 24.3% of segment revenue in the same quarter of the prior fiscal year on a higher margin mix of product sales while discontinuing the cost of using subcontractors to perform a portion of manufacturing output.

At $3.7 million, consolidated general and administrative expenses were down $0.6 million or 14.0% from the three months ended March 31, 2023 due to overhead reductions associated with the aforementioned consolidation of operations at UGL. Second quarter general and administrative expenses included employee severances of $0.2 million related to the consolidation efforts.