Stimulus subsidies in an amount of $1.0 million received from the Federal Governments of Canada under the Canada Emergency Wage Subsidy (“CEWS”) and from the United States under Paycheck Protection Program ("PPP") to help offset the negative impact of the COVID-19 pandemic reduced direct payroll costs in the UGL segment and minimized layoffs for employees that would have been otherwise affected. The UGL segment recorded a $1.9 million increase in gross profit to $13.7 million while the segment’s gross profit margin improved to 19% of revenue from 18% of revenue due to greater economies of scale with the increase in sales. Gross profit of $17.4 million increased by $5.0 million or 40% year over year and improved to 19% of revenue from 16% of revenue in the prior year with the greater absorption of fixed costs on the increase in revenue leading to improved profitability. The Peerless segment’s revenue rose over the prior year with the release of new contracts and the exercise of outstanding options on existing contracts by the Department of National Defence (“DND”), the segment’s largest customer. Offsetting this new uniform rollout revenue was the $6 million decline in revenue experienced with the segment’s largest airline account due to covid-19 pandemic travel restrictions in the second half of the year and revenue to virtually all of our hospitality accounts being negatively affected by the pandemic. Sales volumes during new uniform rollouts are typically three times that of normal steady state replenishment levels of uniform sales. Revenue rose in the UGL segment due to a $15 million increase in revenue from the segment’s second largest airline account on a new uniform rollout that was completed in the first half of the year prior to the onset of the covid-19 pandemic travel restrictions. Revenue for the year ended Septemof $93.1 million increased by $15.1 million or 19% from the prior year on a $7.4 million rise in revenue in the UGL segment to $73.6 million and a $8.9 million revenue increase to $20.7 million in the Peerless segment. Results for Fiscal 2020 versus Fiscal 2019 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.
UGL is a leading customer-focused provider of corporate apparel, serving many leading Canadian and American iconic brands. Unisync operates through two business units: Unisync Group Limited (“UGL”) with operations throughout Canada and the USA and 90% owned Peerless Garments LP (“Peerless”), a domestic manufacturing operation based in Winnipeg, Manitoba.
(the “Company”)(TSX:"UNI") is pleased to announce its audited financial results for the fourth quarter and fiscal year ended September 30, 2020. 30, 2020 (GLOBE NEWSWIRE) - Unisync Corp.
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