VANCOUVER, British Columbia, Feb. 26, 2019 (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.
Revenue for the three months ended December 31, 2018 of $16.9 million increased by $3.3 million or 24% over the three months ended December 31, 2017. Revenue increased in the UGL segment by $5.3 million due in most part to the inclusion of $5.2 million in revenue generated by Quebec based Utility Garments Inc. (“Utility”) from the October 1, 2018 acquisition date. Utility revenue includes sales to such national brands as Sobeys and Tim Hortons as well as Quebec based accounts such as Jean Coutu and Familiprix. Offsetting this increase was a decline of $2 million in the Peerless segment’s revenue caused by delays in the receipt of technical fabrics and production capacity issues at sub-contractors.
A net loss and total comprehensive loss of $0.9 million was reported for the quarter compared to a loss of $0.03 million for the same quarter last year. Adjusted EBITDA (earnings before interest expense, income taxes, depreciation and amortization, share-based payment and acquisition related costs) was $0.3 million for the three months ended December 31, 2018 against $0.6 million for the three month period ended December 31, 2017.
More detailed information is contained in the Company’s Interim Financial Statements for the three months ended December 31, 2018 and Management Discussion and Analysis dated February 26, 2019 which may be accessed at www.sedar.com.
Business Outlook
The UGL segment is seeing rationalization of its competition and opportunities to expand its market share both in Canada and the United States. In Canada, UGL was recently selected by WestJet to test, manufacture and distribute its new uniform rollout to its 10,000 uniformed employees starting in early fiscal 2021.
The Company’s first major US based airline account recently approved production of its new custom uniform collection which is scheduled to officially rollout to the 19,000 uniformed employees of Alaska Airlines, Horizon and Virgin America starting in early fiscal 2020. In support of this initiative, the Company has leased a new 45,000 square foot distribution facility in Henderson, Nevada, which it also intends to use to expand its marketing efforts and support new US customers in industry sectors where UGL has built a strong knowledge base, such as in food service, hospitality, private security, retail and transportation. This facility is also expected to support the sales initiatives of New Jersey based Red the Uniform Tailor’s hospitality division which was acquired in January of 2019. Building upon these initial initiatives, the Company sees significant opportunities for growth in the US market.
The Peerless business segment is also well positioned to return to more normal levels of revenues and profitability during the balance of fiscal 2019 due to the large build-up in production back-log being carried over into the balance of Fiscal 2019. As at December 31, 2018, Peerless had $39 million in firm contracts and options with the Department of National Defence.
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.