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TORONTO, May 13, 2025 (GLOBE NEWSWIRE) — Unisync Corp. (“Unisync”) (TSX:”UNI”) (OTC:“USYNF”) is pleased to report a net income before tax of $1.0 million($0.05/share) and an Adjusted EBITDA of $3.1 million($0.16/share) on revenues of $24.5 million for the three months ended March 31, 2025. Unisync operates through two business units: Unisync Group Limited (“UGL”) with operations throughout Canada and the USA and 92% owned Peerless Garments LP (“Peerless”), a domestic manufacturing operation based in Winnipeg, Manitoba. UGL is a leading customer-focused provider of corporate apparel, serving many leading Canadian and American iconic brands. Peerless specializes in the production and distribution of highly technical protective garments, military operational clothing, and accessories for a broad spectrum of Federal, Provincial and Municipal government departments and agencies.
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Consolidated revenue for the quarter came in at $24.5 million versus $25.7 million for same period in the prior year. UGL revenues experienced a decrease of $3.4 million due mainly to a decrease in airline account revenue, resulting in a decrease in gross profit from $4.4 million in the same period last year to $4.0 million. While gross profit decreased, gross margins improved to 20.1% of segment revenues from 18.6% in the same period last year. The improvement in gross margin was mainly attributed to customer price increases, lower product costs from the relocation of offshore vendors and the realized savings from the previously announced consolidation of operations. The Peerless segment revenues increased by $1.9 million over the same quarter last year due to timing of the shipments on government contracts.
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At $3.1 million, consolidated general and administrative expenses were lower by $0.6 million or 19% from the same quarter last year due to overhead reductions associated with the aforenoted consolidation of operations that began in September 2023.
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Interest expense of $0.9 million was slightly higher than the same quarter last year due to higher USD denominated borrowings combined with a depreciation in the Canadian Dollar.
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Income tax expense during the quarter was $0.9 million, which was mainly attributable to the conclusion of a CRA audit that resulted in a reduction of the company’s non-capital losses by $2.6 million and a $0.7 million non-cash adjustment to deferred tax expense.
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The Company reported a net income before tax of $1.0 million for the three months ended March 31, 2025, compared to a net income before tax of $0.6 million in the same quarter last year. Adjusted EBITDA for the quarter was $3.1 million versus $2.8 million for the same quarter last year.
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Because of the effect of the unprecedented drop in the value of the Canadian dollar versus the US dollar from 1.34 as of Sept 30, 2024 to 1.43 as of March 31, 2025, net income for the six months ending March 31, 2025 was negatively affected by unrealized foreign exchange losses totaling $1.4 million on US domiciled liabilities of UGL’s Canadian operations. As a result, the Company reported a small net loss before tax of $0.02 million compared to a loss of $0.5 million for the same six-month period in the prior year. Adjusting for unrealized foreign exchange losses, net Income before tax was $1.4 million and EBITDA was $5.8 million.
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