11:15 AM EDT, 05/16/2024 (MT Newswires) -- Unisync Corp. ( USYNF ) said Thursday a it posted a fiscal second-quarter profit before tax, compared with a loss the prior year, even though revenue fell.

The apparel company, which operates through two business units -- Unisync Group and 90%-owned Peerless Garments -- reported income before tax of $0.6 million in the quarter ended March 31, compared with a loss of $1.1 million last year. Net results were not disclosed.

Consolidated revenue fell 10.4% to $25.7 million, as its airline business returned to more normal volumes following the 2023 post pandemic rebound.

The company noted a large number of managed uniform programs totaling over $35 million in annual recurring business scheduled to come to market in Canada during the remainder of 2024 which UGL is actively pursuing. UGL is experiencing a slow start to Q3 orders in hand which will likely get reflected in lower revenues during the first two months of the quarter. However, the company expect the effects on net income to be offset to a great extent by improved margins, reduced headcount and operational efficiencies. UGL's North American airline accounts continue to experience steady demand.

With $38.5 million in firm contracts and options on hand as at March 31, 2024, the Peerless business segment has sufficient firm orders on hand to maintain its current level of revenues and profitability into fiscal 2025. However, some fabric delays are having an effect on Peerless' current production levels in the first half of the current quarter pushing forecasted revenues to later in the fiscal year, the company noted.

Unisync ( USYNF ) shares were last seen up $0.01 to $1.46 on the Toronto Stock Exchange.

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