Unifi reported unaudited consolidated earnings results for the second quarter and six months ended December 28, 2014. Net income rose to $9.4 million, or $0.50 per diluted share, in the three months ended December 28, from $6.4 million, or $0.32 per diluted share, for the year-earlier period. The sales increased 1.6% to $163.1 million year-over-year. The year-over-year improvement in net sales is primarily attributable to improved volume in all three of the company's reportable segments, partially offset by devaluation of the Brazilian Real relative to the U.S. dollar. Adjusted EBITDA of $16.2 million, an improvement from $12.3 million for the prior year quarter. Operating income was $9.934 million against $5.774 million a year ago. Income before income taxes was $12.315 million against $10.135 million a year ago. EBITDA was $17.819 million against $15.2 million a year ago. Pretax income is $2.2 million higher than the $10.1 million of pretax income generated during the prior year second quarter. This increase in quarterly pretax income is primarily attributable to $4.8 million of improved gross profit driven by the factors, partially offset by lower earnings from equity affiliates and slightly higher SG&A expenses primarily due to stock-based compensation, marketing expense and professional fees.

For the six months, the company reported net income was $16.5 million, or $0.90 per basic share, compared to net income of $15.3 million, or $0.80 per basic share, for the prior year six-month period. Net sales increased $8.0 million, or 2.4%, to $337.3 million for the current year six-month period compared to net sales of $329.3 million for the prior year six-month period, primarily due to improved sales volume, partially offset by unfavorable currency translation in Brazil. Operating income was $17.551 million against $14.059 million a year ago. Income before income taxes was $23.151 million against $24.505 million a year ago. Diluted earnings per share was $0.88 against $0.76 per share a year ago. Net cash provided by operating activities was $9.565 million against $24.23 million a year ago. Capital expenditures were $13.442 million against $9.431 million a year ago. EBITDA was $33.9 million against $34.136 million a year ago. Adjusted EBITDA was $30.387 million against $27.048 million a year ago. Net debt at the end of the December 2014 quarter was $93.4 million, compared to $83.6 million at June 29, 2014. The Company had $60.9 million available under its revolver as of December 28, 2014, relatively unchanged compared to $61.1 million as of June 29, 2014. Pretax income is $1.4 million lower than the $24.5 million of pretax income generated during the prior year period. This decrease in pretax income is primarily attributable to: lower earnings from equity affiliates; slightly higher SG&A expenses; higher net interest expense due to a one-time interest income benefit received by Brazilian subsidiary in the prior year period, partially offset by $5.8 million of improved gross profits driven by the favorable factors. The increase in EPS is partially attributable to a lower effective tax rate and decline in average basic shares outstanding from 19.2 million to 18.2 million. The year-to-date increases in adjusted EBITDA are driven by improved gross profits partially offset by higher SG&A expenses and a $500,000 bad debt provision recorded in the previous quarter by Brazilian subsidiary.

The company expect adjusted EBITDA for the coming quarter to be in the $14 million to $15 million range, which compares favorably to the $12.6 million adjusted EBITDA result from the third quarter of the prior year.
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The company reconfirm fiscal year 2015 annual adjusted EBITDA guidance in the low to mid-60s.