VANCOUVER, British Columbia, Aug. 01, 2018 (GLOBE NEWSWIRE) -- Unisync Corp. (TSXV: "UNI") (the “Company")
operates through two business segments: Unisync Group Limited (“UGL”) of Mississauga, Ontario and Peerless Garments LP (“Peerless”)
of Winnipeg, Manitoba. The Company generated consolidated revenues of $15.0 million for the third quarter ended June 30, 2018,
bringing cumulative revenues for the first nine months of Fiscal 2018 to $65.0 million (2017: $45.5 million). The UGL segment
experienced a $4.8 million increase in revenue in Q3 over the corresponding quarter last year. This was offset by a sharp drop in
contract deliverables in the Peerless segment caused by a delay in the release of new contracts and in the exercise of outstanding
options on existing contracts by the Department of National Defence (“DND”), the segment’s largest customer
Gross profit for the three months ended June 30, 2018 was $2.9 million or 19% of revenue versus $3.0 million or
17% of revenue during the three months ended June 30, 2017. The UGL segment recorded gross profit of $2.5 million or 19% of
segment revenue up from a gross profit of $1.0 million or 12% of segment revenue in the same quarter of the prior fiscal
year. The improvement in gross profit and gross profit margin in the third quarter of fiscal 2018 compared to the same
quarter last year was due to a greater absorption of fixed costs on the higher volume of sales. Due to the delay in the
exercise of contract options by the DND, the Peerless segment’s gross profit decreased to $0.4 million from $2.0 million in the
same period in the prior year. Gross profit margin improved to 25% of revenue from 23% in this segment due to the mix of
higher margin product sales.
Net income and total comprehensive income was $2.0 million for the third quarter ended June 30, 2018 bringing
the cumulative total for the first nine months of Fiscal 2018 to $8.5 million or $0.63 per share. In the third quarter of fiscal
2018 the Company recorded the benefit of $4.7 million of income tax losses not previously recognized which resulted in a net income
tax recovery of $1.5 million. Cash flow from operations, before non-cash working capital items and distributions to minority
partner, improved to $11.1 million or $0.83 per share for the first nine months of Fiscal 2018 versus $1.8 million or $0.15 per
share for the same period last year.
Business Outlook
The Company’s second largest airline account recently unveiled its new custom uniforms collection and is
scheduled to officially rollout its new uniforms to its employees in the last quarter of Fiscal 2019. UGL will be responsible
for all aspects of the program including manufacturing, quality, safety, inventory planning, online ordering, customer service, and
warehouse and distribution. This and other successes in the sector have led to interest from other companies in the North
American airline sector and the Company is presently pursuing these new opportunities.
During the past two months the Peerless segment has been awarded additional contracts totaling $19 million,
including options, and had $12 million in existing contract options exercised. With $15.3 million in firm contracts and $37.2
million in contract options on hand as at July 30 2018, the Peerless business segment is well positioned for continued
profitability over the balance of fiscal 2018 and into the fiscal 2019 to 2020 period.
More detailed information is contained in the Company’s Interim Financial Statements for the period ended June
30, 2018 and Management Discussion and Analysis dated July 30, 2018 which may be accessed at www.sedar.com.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
