Unifi, Inc. New

Good morning and thank you for attending Unify's third quarter fiscal 2026 earnings conference call. During this call, management will be referencing a webcast presentation that can be found in the investor relations section of unify.com. Please familiarize yourself with page two of that slide deck for cautionary statements and non-gap measures. Today's conference is being recorded and all lines has been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Our speakers are listed on page three of today's presentation and include Al Carey, Executive Chairman, Eddie Ingle, Chief Executive Officer, A.J. Ecker, Chief Financial Officer. I will now turn the call over to Al Carey. Please turn to page four of the presentation.

Thank you. Good morning, everyone, and thanks for joining our call. We're pleased to report that our year-long effort to reduce our cost base and improve cash generation is providing results. As a matter of fact, we're a bit ahead of expectations for Q3. AJ is going to take you through the full story in a few minutes, but here are the three top headlines. The Madison plant closure is complete. Number two, the much improved efficiencies in our current plant, and three, we've optimized our product lines and SKUs so that we don't have products that contribute no profitability to our lineup. These actions set us up for improved profitability, especially as revenue begins to pick up and we're able to see higher levels of capacity utilization. There was one area that did not see a reduction in costs over the last 12 months, and that was the work that we're doing on product innovations. These products will provide revenue growth for the future, so they're very important. We have begun to get traction with our customers on these products, and that'll move us into a very important priority right now, which is to begin to commercialize these innovations. The innovations are, first, textile to textile recycling. Second, products for categories that are outside of apparel and provide higher profitability. And third, profits with performance benefits that customers and consumers are looking for. Now, Eddie is going to take you through the full story on that in just a minute. The textile industry has still plenty of headwinds, especially as our customers navigate around the tariff complexities in the oil prices. We believe those headwinds will diminish and our profits will improve even in the current environment that we're in right now. I'd like to say one last thing and turn it over to Eddie. We are very proud of our team, the executives, the managers, and the frontline employees as well. Over the last 12 to 15 months, it's been a rough road, but the team has worked through the challenges collaboratively There really is a special resiliency about the people from Unify, and their loyalty has been very evident throughout this entire timeframe. So we are grateful for their big efforts over the last several months, and we're looking forward to returning to growth. So now I'd like to turn the speaker, speaking over to Eddie and AJ, who will provide you with the full story. Thank you.

Thanks, Al. And as Al just noted, this really was a stronger quarter for Unifi, and it clearly highlights the benefits of the actions we've taken to realign our cost structure and optimize our operations and improve the conversion margins through portfolio management and, of course, targeted pricing that Al has inferred. We've kept our inventories flat, spend was managed with discipline, and the margin improvement that you see in the numbers in part reflects this strong operational progress. We are a significantly more resilient business today, and despite geopolitical headwinds, we have managed our balance sheet very effectively. Structural changes to our customer contracts, combined with faster commercial decision making, have positioned us well to be able to respond more proactively to today's market conditions. I'm going to turn the call over to AJ now to walk you through the financial details for the quarter, and then I'll come back in shortly to discuss our near-term priorities, our innovation progress, and what lies ahead for Unify.