UNISYNC Reports Q3 Fiscal 2025 Operating Results Showing Continued Improvement in Profitability

Globe and Mail

4 days ago

TORONTO, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Unisync Corp. ('Unisync") (TSX:"UNI") (OTC:'USYNF ') today announced strong operating results for the three months ended June 30, 2025, highlighted by continued profitability, significant gross margin gains, and disciplined cost management.
For the quarter, Unisync delivered net income before tax of $1.8 million ($0.10 per share) and Adjusted EBITDA of $3.5 million ($0.18 per share) on revenues of $21.9 million. This marks a substantial improvement from the prior year's net loss before tax of $1.2 million and Adjusted EBITDA of $1.1 million.
Key Highlights:
Revenue Growth: Consolidated revenue of $21.9 million, up from $21.2 million in Q3 FY2024.
UGL Segment Strength: UGL revenues rose by $0.6 million, driven by higher airline account volumes, pushing gross profit in the segment from $2.3 million to $5.4 million.
Margin Expansion: Excluding unrealized FX gains, segment margins surged to 23.5% from 12.6% a year ago, reflecting a stronger sales mix, lower offshore product costs, and operational efficiencies from the 2023 consolidation.
Cost Discipline: General & administrative expenses reduced to $3.2 million, down $0.1 million from last year.
Lower Financing Costs: Interest expense declined by $0.2 million to $0.8 million due to reduced borrowings and a weaker U.S. dollar.
Peerless Garments revenues held steady at $3.2 million, contributing stable profitability.
Excluding unrealized foreign exchange gains of $1.0 million, net income before tax was $0.8 million and Adjusted EBITDA was $2.5 million — both a strong turnaround from last year's loss position.
'Our Q3 results reflect the ongoing transformation of our business — with sharper execution, stronger margins, and disciplined cost control,' said Tim Gu, Executive Chairman of Unisync. 'We're building sustainable profitability while positioning the company for future growth.'
Business Outlook
During the three months ended June 30, 2025, the UGL segment continued to benefit from positive contract pricing adjustments and relocating offshore production from a number of factories with higher labour costs and/or who were import duty subject, to those that offer lower labour costs and/or duty-free status. These initiatives have yielded improved margins and are expected to continue to positively impact future margins for UGL as these reduced input costs get reflected in the weighted average cost of inventory. We also continue to aggressively pursue opportunities to reduce our facility costs to further improve operating margins.
While the recent upward momentum in the value of the Canadian dollar resulted in unrealized foreign exchange gains and a recovery from the first half of the fiscal year, the Company is still facing a lack of visibility on the outcome of the trade war with the US and its ultimate effect on the relative value of the Canadian dollar and our clients' business activities, especially in the airline sector.
UGL segment management continue to actively pursue several material business opportunities that are coming to market in both the Canadian and US marketplace during the 2025 calendar year. With $28.9 million in firm contracts and options on hand as at June 30, 2025, the Peerless business segment is positioned to maintain its current level of revenues and profitability in fiscal 2025.
More detailed information is contained in the Company's Consolidated Financial statements for the quarter ended June 30, 2025 and Management Discussion and Analysis dated August 11, 2025, which may be accessed at www.sedarplus.ca.
Investor relations contact:
Manish Arora, CFO at Email: [e-mail]
Adjusted EBITDA
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 uses non-IFRS measures, including Adjusted EBITDA, to provide shareholders with supplemental measures of its operating performance. Unisync believes adjusted EBITDA is a widely accepted indicator of an entity's ability to incur and service debt and commonly used by the investing community to value businesses.
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.
About Unisync Corp.
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.