Unisync Reports 20% Revenue Increase in Q3 2021
TORONTO, Aug. 16, 2021 (GLOBE NEWSWIRE) — Unisync Corp. (“Unisync” or the “Company”) (TSX:”UNI”) (OTCQX: “USYNF”) reports consolidated revenue for the three months ended June 30, 2021, of $20.7 million up 20% over the same quarter in 2020. This result was well below what could be expected with our key customers at full staffing levels but compares positively to revenues of $17.2 million in the same quarter last year when the Company realized the full impact of shutdowns on its customers need for employee operational clothing and accessories.
Adjusted EBITDA (comprehensive income before interest expense, income taxes, depreciation and amortization, share-based payment, and acquisition related costs) was $0.3 million for Q3 2021, after nominal support of $0.3 million from the Canada Emergency Wage Subsidy program (“CEWS”). This compares to a loss of $0.4 million for the same quarter in fiscal 2020 during which $0.9 million was received from CEWS. The benefit derived from the Q3 2021 subsidy was offset by one-time termination costs associated with rationalization of the Company’s senior management structure. With a $5.1 million or 7% decrease in revenue for the 9 months ended June 30, 2021, associated EBITDA was $3.5 million versus $3.7 million for the same period in fiscal 2020. EBITDA does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation nor as a substitute for financial information reported under IFRS.
Consolidated after tax net income attributable to Unisync shareholders for the quarter was a loss of $1.0 million ($0.06/share), compared to a loss of $1.1 million ($0.06/share) in the same quarter last year. For the nine months ended June 30, 2021, the net loss was $1.3 million ($0.07/share) compared to a loss of $0.8 million ($0.04/share) for the same period in fiscal 2020.
The revenue increase in the current quarter was due to improving business conditions for existing accounts that were severely impacted by COVID-19 pandemic restrictions in the same quarter last year and the addition of new managed services accounts. With Canadian vaccination levels providing renewed confidence, the Company is now seeing our major transportation and hospitality accounts planning for the return of their staffing levels to pre-pandemic levels – some immediately and others on a more gradual basis. Plans for new uniform designs that were put on hold by some of the Company’s larger clients are now back on track, which should result in a build up in deferred revenue by the end of this fiscal year and bode well for increased revenues and a return to profitability in fiscal 2022. The Company also expects to continue to take advantage of opportunities in the PPE space as COVID-19 moves through the fourth wave amid expectations that PPE will still be required well into fiscal 2022. The buildup in business opportunities and the recent addition of new accounts such as BC Ferries, Canadian Coast Guard and LCBO as well as sales from the new Tactical Gear Experts B2C eCommerce platform, should also add to a continued improvement to earnings in fiscal 2022 and beyond.
Unisync is a broad-based vertically integrated North American 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 systems. Unisync operates through two business units: Unisync Group Limited (“UGL”) and 90% owned Peerless Garments LP which has been producing operational uniforms and accessories to Canada’s Armed Forces and others for over 50 years.
UGL is a leading provider of full-service, managed apparel programs for major corporations and government entities with a broad-based geographical footprint across Canada. In early 2019 Unisync expanded this footprint into the US marketplace through the establishment of a distribution and service facility in Henderson, Nevada, and a sales and service facility in Farmingdale, New Jersey. Our core business is comprised of state-of-the-art eCommerce based B2B/C custom online ordering and program management systems for our long-term contracted tactical and imagewear clients and their employees. In addition, we recently launched Tactical Gear Experts, a B2C eCommerce portal which can be accessed at https://tacticalgearexperts.com/.
On Behalf of the Board of Directors
Investor relations contact: 778-370-1725 or Email [email protected]
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 nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.