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TORONTO, May 13, 2021 (GLOBE NEWSWIRE) -- Unisync Corp. (“Unisync" or “Company”) (TSX:"UNI") (OTCQX: “USYNF”) reports consolidated revenue for the three months ended March 31, 2021 of $21.1 million – comparable to the average revenue for the previous three COVID-19 pandemic impacted quarters. Q2 2021 revenues were nevertheless $6.6 million (24%) less than the $27.7 million generated in the comparable pre-pandemic quarter last year when the Company completed the major portion of a new uniform rollout for Alaska Airlines and had yet to experience the significant impact of the pandemic on its transportation and hospitality accounts.
Consolidated after tax net income for the quarter was a loss of $0.78 million ($0.05/share), compared to a profit of $0.36 million ($0.02/share) in the same quarter last year.
Adjusted EBITDA (comprehensive income before interest expense, income taxes, depreciation and amortization, share-based payment, and acquisition related costs) was $0.6 million ($0.03/share) for Q2 2021 compared to $2.5 million ($0.14/share) for the same quarter in fiscal 2020. Adjusted 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.
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 a 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/.
With COVID-19 vaccinations having high efficacy now being broadly administered across North America and worldwide, the Company believes that it will see a gradual improvement in the business conditions of its general customer base as a greater percentage of the population gets vaccinated and businesses begin to return to normal. In particular, UGL’s larger airline accounts have been running at 20% to 30% of previous capacity levels during much of the pandemic and some smaller transportation accounts have temporarily ceased operating. With the greater rate of COVID-19 vaccinations currently in the United States, domestic air travel there has recently climbed to 70% of pre-pandemic levels and it is expected that the rebound in air travel will continue as travel restrictions are lifted worldwide. The Company expects that this will cause a strong increase in uniform sales to its airline accounts as well as other accounts in the transportation and hospitality sectors and when complimented by recent new account additions, will result in an improving revenue and profitability picture as the year progresses. The Company also expects to continue to take advantage of opportunities in the PPE space with bids ongoing for large volume contracts at all levels of government as they seek to be better prepared for future COVID-19 outbreaks.
More detailed information is contained in the Company’s Interim Financial Statements for the three months ended March 31, 2021 and Management Discussion and Analysis dated May 12, 2021 which may be accessed at www.sedar.com.
On Behalf of the Board of Directors
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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.