UniFirst Corporation (NYSE: UNF) (the “Company,” “UniFirst” or
“we”) today reported results for its fourth quarter and full year
ended August 26, 2023, as compared to the corresponding
periods in the prior fiscal year:
Q4 2023 Financial
Highlights
- Consolidated revenues for the fourth quarter increased 10.7% to
$571.9 million.
- Operating income was $36.1 million, an increase of 8.5%.
- The quarterly tax rate increased to 24.3% compared to 21.3% in
the prior year.
- Net income increased to $27.6 million, or 5.5%.
- Diluted earnings per share increased to $1.47 from $1.39 in the
prior year, or 5.8%.
- EBITDA increased to $69.2 million compared to $60.2 million in
the prior year, or 15.0%.
The Company’s financial results for the fourth
quarters of fiscal 2023 and 2022 included $6.1 million and $9.1
million, respectively, of costs directly attributable to its CRM,
ERP and branding initiatives (the “Key Initiatives”). In addition,
the Company incurred costs during the fourth quarter of fiscal 2023
related to its acquisition of Clean Uniform of approximately $0.3
million. The effect of these items on the fourth quarters of fiscal
2023 and 2022 combined to decrease:
- Operating income and EBITDA by $6.4 million and $9.1 million,
respectively, in both quarters.
- Net income by $5.3 million and $7.6 million, respectively.
- Diluted earnings per share by $0.28 and $0.40,
respectively.
Fiscal 2023 Financial
Highlights
- Full year consolidated revenues were $2.233 billion, an
increase of 11.6%.
- Full year operating income was $133.6 million, a decrease of
0.6%.
- Net income for the year increased to $103.7 million, or
0.3%.
- Diluted earnings per share increased to $5.53 from $5.46 in the
prior year, or 1.3%.
- EBITDA increased to $253.3 million compared to $240.3 million
in the prior year, or 5.4%.
The Company’s financial results for the full
years of fiscal 2023 and 2022 included $33.6 million and $33.1
million, respectively, of costs directly attributable to its Key
Initiatives. In addition, the Company incurred costs during the
full year of fiscal 2023 related to the acquisition of Clean
Uniform of approximately $3.0 million. The effect of these items on
the full years of fiscal 2023 and 2022 combined to decrease:
- Operating income and EBITDA by $36.6 million and $33.1 million,
respectively, in both quarters.
- Net income by $28.0 million and $25.5 million,
respectively.
- Diluted earnings per share by $1.49 and $1.35,
respectively.
Steven Sintros, UniFirst President and Chief
Executive Officer, said, “I am pleased to report that we closed the
year with a fourth quarter that modestly exceeded our expectations
in terms of top and bottom-line performance. We accomplished
a lot as a team in fiscal 2023 that will help strengthen our
company as we move forward; growing our business, implementing new
technology and closing on our mid-year acquisition of Clean
Uniform. I want to thank our nearly 16,000 Team Partners who
continue to Always Deliver for each other and our
customers as we strive towards our vision of being universally
recognized as the best service provider in the industry.”
Segment Reporting
Highlights
Core Laundry Operations
- Revenues for the quarter increased 10.1% to $505.0
million.
- Organic growth, which excludes the effect of acquisitions and
fluctuations in the Canadian dollar, was 5.3%.
- Operating margin decreased to 6.0% from 6.3%.
- Core Laundry Operations' EBITDA margin increased to 12.2% from
11.8%.
The costs incurred related to the Key
Initiatives and Clean Uniform acquisition, discussed above, were
recorded to the Core Laundry Operations' segment, and decreased
both the Core Laundry Operations' operating and EBITDA margin for
the fourth quarters of fiscal 2023 and 2022 by 1.3% and 2.0%,
respectively.
The segment's operating and EBITDA margins were
further impacted by higher merchandise, payroll and payroll-related
costs partially offset by lower energy and legal costs as a
percentage of revenues. The purchase accounting for the recent
Clean Uniform acquisition further impacted the segment’s operating
margin, most notably in the form of elevated non-cash
acquisition-related intangibles amortization.
Specialty Garments
- Revenues for the quarter were $41.4 million, an increase of
13.0%, which was driven by growth in the segment's cleanroom
operations and North American nuclear operations.
- Operating margin increased to 16.4% from 11.0% a year ago,
primarily as a result of the strong top line performance.
- Specialty Garments consists of nuclear decontamination and
cleanroom operations, and its results can vary significantly due to
seasonality and the timing of reactor outages and projects.
Balance Sheet and Capital
Allocation
- Cash, cash equivalents and short-term investments totaled $89.6
million as of August 26, 2023.
- The Company had no long-term debt outstanding as of
August 26, 2023.
- The Company paid dividends to shareholders of $22.1 million, an
increase of 6.3% from the prior year.
- The Company did not repurchase any shares of common stock in
the fourth quarter of fiscal 2023. As of August 26, 2023, the
Company had $63.6 million remaining under its currently authorized
stock repurchase program.
- Weighted average shares outstanding – Diluted for the fourth
quarters of fiscal 2023 and fiscal 2022 were each 18.8
million.
Financial Outlook
Mr. Sintros continued, “For fiscal 2024, we
expect our revenues to be between $2.415 billion and $2.435 billion
and fully diluted earnings per share to be between $6.52 and $7.16.
This guidance includes $16.0 million of costs directly attributable
to our Key Initiatives that we anticipate will be expensed in
fiscal 2024. Our guidance for fiscal 2024 also includes one extra
week of operations compared to fiscal 2023 due to the timing of our
fiscal calendar. Please note the following regarding our
guidance:
- Net income, at the midpoint of the
range, is expected to increase to $128.6 million, or 24.0%.
- Consolidated EBITDA, at the
midpoint of the range, is expected to increase to $307.8 million,
or 21.5%.
- Core Laundry Operations’ revenue
growth, at the midpoint of the range, is expected to be 9.4%, and
organic growth, which excludes the estimated effect of
acquisitions, the impact of the extra week and fluctuations in the
Canadian dollar, is expected to be 4.8%.
- At the midpoint of the range, Core
Laundry Operations’ operating and EBITDA margins are expected to be
6.4% and 12.5%, respectively.
- The Key Initiatives are recorded to
our Core Laundry Operations and are expected to decrease operating
and EBITDA margins by 0.7% and EPS by $0.64.
- Net income, operating income and
EBITDA comparisons are expected to benefit from lower Key
Initiative costs in fiscal 2024.
- We assume an effective tax rate of
25.0%.
- Guidance does not include the
impact of any future share buybacks or unexpected events affecting
the economy generally.
Conference Call Information
UniFirst Corporation will hold a conference call
today at 9:00 a.m. (ET) to discuss its quarterly and full year
financial results, business highlights and outlook. A simultaneous
live webcast of the call will be available over the Internet and
can be accessed at www.unifirst.com.
About UniFirst Corporation
Headquartered in Wilmington, Mass., UniFirst
Corporation (NYSE: UNF) is a North American leader in the supply
and servicing of uniform and workwear programs, facility service
products, as well as first aid and safety supplies and services.
Together with its subsidiaries, the Company also manages
specialized garment programs for the cleanroom and nuclear
industries. In addition to partnering with leading brands, UniFirst
manufactures its own branded workwear, protective clothing, and
floorcare products at its five company-owned ISO-9001-certified
manufacturing facilities. With more than 270 service locations,
over 300,000 customer locations, and 16,000-plus employee Team
Partners, the Company outfits more than 2 million workers every
day. For more information, contact UniFirst at 888.296.2740 or
visit UniFirst.com.
Forward-Looking Statements
Disclosure
This public announcement contains
forward-looking statements within the meaning of the federal
securities laws that reflect the Company’s current views with
respect to future events and financial performance, including
projected revenues, operating margin and earnings per share.
Forward-looking statements contained in this public announcement
are subject to the safe harbor created by the Private Securities
Litigation Reform Act of 1995 and may be identified by words such
as “guidance,” “outlook,” “estimates,” “anticipates,” “projects,”
“plans,” “expects,” “intends,” “believes,” “seeks,” “could,”
“should,” “may,” “will,” “strategy,” “objective,” “assume,”
“strive,” “design,” “assumption,” “vision” or the negative
versions thereof, and similar expressions and by the context in
which they are used. Such forward-looking statements are based upon
our current expectations and speak only as of the date made. Such
statements are highly dependent upon a variety of risks,
uncertainties and other important factors that could cause actual
results to differ materially
from those reflected in such forward-looking statements. Such
factors include, but are not limited to, uncertainties caused by an
economic recession or other adverse economic conditions, including,
without limitation, as a result of continued high inflation rates
or further increases in inflation or interest rates or
extraordinary events or circumstances such as geopolitical
conflicts like the conflict between Russia and Ukraine, a
disruption in the Middle East or the COVID-19 pandemic, and their
impact on our customers’ businesses and workforce levels,
disruptions of our business and operations, including limitations
on, or closures of, our facilities, or the business and operations
of our customers or suppliers in connection with extraordinary
events or circumstances such as the COVID-19 pandemic,
uncertainties regarding our ability to consummate acquisitions and
successfully integrate acquired businesses, including Clean
Uniform, and the performance of such businesses, uncertainties
regarding any existing or newly-discovered expenses and liabilities
related to environmental compliance and remediation, any adverse
outcome of pending or future contingencies or claims, our ability
to compete successfully without any significant degradation in our
margin rates, seasonal and quarterly fluctuations in business
levels, our ability to preserve positive labor relationships and
avoid becoming the target of corporate labor unionization campaigns
that could disrupt our business, the effect of currency
fluctuations on our results of operations and financial condition,
our dependence on third parties to supply us with raw materials,
which such supply could be severely disrupted as a result of
extraordinary events or circumstances such as the conflict between
Russia and Ukraine, any loss of key management or other personnel,
increased costs as a result of any changes in federal, state,
international or other laws, rules and regulations or governmental
interpretation of such laws, rules and regulations, uncertainties
regarding, or adverse impacts from continued high price levels of
natural gas, electricity, fuel and labor or increases in such
costs, the negative effect on our business from sharply depressed
oil and natural gas prices, the continuing increase in domestic
healthcare costs, increased workers’ compensation claim costs,
increased healthcare claim costs, our ability to retain and grow
our customer base, demand and prices for our products and services,
fluctuations in our Specialty Garments business, political or other
instability, supply chain disruption or infection among our
employees in Mexico and Nicaragua where our principal garment
manufacturing plants are located, our ability to properly and
efficiently design, construct, implement and operate a new customer
relationship management computer system, interruptions or failures
of our information technology systems, including as a result of
cyber-attacks, additional professional and internal costs necessary
for compliance with any changes in or additional Securities and
Exchange Commission (the “SEC”), New York Stock Exchange and
accounting or other rules, including, without limitation, recent
rules proposed by the SEC regarding climate-related and
cybersecurity-related disclosures, strikes and unemployment levels,
our efforts to evaluate and potentially reduce internal costs,
economic and other developments associated with the war on
terrorism and its impact on the economy, the impact of foreign
trade policies and tariffs or other impositions on imported goods
on our business, results of operations and financial condition,
general economic conditions, our ability to successfully implement
our business strategies and processes, including our capital
allocation strategies, our ability to successfully remediate the
material weakness in internal control over financial reporting
disclosed in our Annual Report on Form 10-K for the year ended
August 27, 2022 and the other factors described under Part I, Item
1A. “Risk Factors” and elsewhere in our Annual Report on Form 10-K
for the year ended August 27, 2022, Part II, Item 1A. “Risk
Factors” and elsewhere in our subsequent Quarterly Reports on Form
10-Q and in our other filings with the SEC. We undertake no
obligation to update any forward-looking statements to reflect
events or circumstances arising after the date on which they are
made.
Consolidated Statements of
Income(Unaudited)
(In thousands, except per share data) |
|
Thirteen weeks ended August 26, 2023 |
|
|
Thirteen weeks ended August 27, 2022 |
|
|
Fifty-two weeks ended August 26, 2023 |
|
|
Fifty-two weeks ended August 27, 2022 |
|
Revenues |
|
$ |
571,890 |
|
|
$ |
516,414 |
|
|
$ |
2,233,047 |
|
|
$ |
2,000,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (1) |
|
|
378,009 |
|
|
|
336,872 |
|
|
|
1,481,296 |
|
|
|
1,306,451 |
|
Selling and administrative expenses (1) |
|
|
124,685 |
|
|
|
118,258 |
|
|
|
496,915 |
|
|
|
451,243 |
|
Depreciation and amortization |
|
|
33,118 |
|
|
|
28,033 |
|
|
|
121,233 |
|
|
|
108,777 |
|
Total operating expenses |
|
|
535,812 |
|
|
|
483,163 |
|
|
|
2,099,444 |
|
|
|
1,866,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
36,078 |
|
|
|
33,251 |
|
|
|
133,603 |
|
|
|
134,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(385 |
) |
|
|
(1,112 |
) |
|
|
(6,738 |
) |
|
|
(2,851 |
) |
Other (income) expense, net |
|
|
(22 |
) |
|
|
1,116 |
|
|
|
1,504 |
|
|
|
2,877 |
|
Total other (income) expense, net |
|
|
(407 |
) |
|
|
4 |
|
|
|
(5,234 |
) |
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
36,485 |
|
|
|
33,247 |
|
|
|
138,837 |
|
|
|
134,325 |
|
Provision for income
taxes |
|
|
8,854 |
|
|
|
7,066 |
|
|
|
35,163 |
|
|
|
30,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
27,631 |
|
|
$ |
26,181 |
|
|
$ |
103,674 |
|
|
$ |
103,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share –
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
1.53 |
|
|
$ |
1.45 |
|
|
$ |
5.77 |
|
|
$ |
5.71 |
|
Class B Common Stock |
|
$ |
1.23 |
|
|
$ |
1.16 |
|
|
$ |
4.62 |
|
|
$ |
4.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share –
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
1.47 |
|
|
$ |
1.39 |
|
|
$ |
5.53 |
|
|
$ |
5.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income allocated to –
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
23,222 |
|
|
$ |
21,978 |
|
|
$ |
87,104 |
|
|
$ |
86,844 |
|
Class B Common Stock |
|
$ |
4,409 |
|
|
$ |
4,203 |
|
|
$ |
16,570 |
|
|
$ |
16,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income allocated to –
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
27,631 |
|
|
$ |
26,181 |
|
|
$ |
103,674 |
|
|
$ |
103,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding – Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
15,133 |
|
|
|
15,135 |
|
|
|
15,098 |
|
|
|
15,203 |
|
Class B Common Stock |
|
|
3,590 |
|
|
|
3,621 |
|
|
|
3,590 |
|
|
|
3,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding – Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
18,790 |
|
|
|
18,846 |
|
|
|
18,762 |
|
|
|
18,933 |
|
(1) Exclusive of depreciation on the
Company’s property, plant and equipment and amortization on its
intangible assets.
Condensed Consolidated Balance
Sheets(Unaudited)
(In thousands) |
|
August 26, 2023 |
|
|
August 27, 2022 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
79,443 |
|
|
$ |
376,399 |
|
Short-term investments |
|
|
10,157 |
|
|
|
— |
|
Receivables, net |
|
|
279,078 |
|
|
|
249,198 |
|
Inventories |
|
|
148,334 |
|
|
|
151,459 |
|
Rental merchandise in service |
|
|
248,323 |
|
|
|
219,392 |
|
Prepaid taxes |
|
|
20,907 |
|
|
|
25,523 |
|
Prepaid expenses and other current assets |
|
|
53,876 |
|
|
|
41,921 |
|
Total current assets |
|
|
840,118 |
|
|
|
1,063,892 |
|
|
|
|
|
|
|
|
Property, plant and equipment,
net |
|
|
756,540 |
|
|
|
665,119 |
|
Goodwill |
|
|
647,900 |
|
|
|
457,259 |
|
Customer contracts and other
intangible assets, net |
|
|
145,618 |
|
|
|
84,973 |
|
Deferred income taxes |
|
|
567 |
|
|
|
498 |
|
Operating lease right-of-use
assets, net |
|
|
62,565 |
|
|
|
50,050 |
|
Other assets |
|
|
116,667 |
|
|
|
106,181 |
|
Total assets |
|
$ |
2,569,975 |
|
|
$ |
2,427,972 |
|
|
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
92,730 |
|
|
$ |
82,131 |
|
Accrued liabilities |
|
|
156,408 |
|
|
|
146,808 |
|
Accrued taxes |
|
|
352 |
|
|
|
1,204 |
|
Operating lease liabilities, current |
|
|
17,739 |
|
|
|
13,602 |
|
Total current liabilities |
|
|
267,229 |
|
|
|
243,745 |
|
Long-term liabilities: |
|
|
|
|
|
|
Accrued liabilities |
|
|
121,682 |
|
|
|
123,979 |
|
Accrued and deferred income taxes |
|
|
130,084 |
|
|
|
106,307 |
|
Operating lease liabilities |
|
|
47,020 |
|
|
|
38,070 |
|
Total long-term liabilities |
|
|
298,786 |
|
|
|
268,356 |
|
Shareholders’ equity: |
|
|
|
|
|
|
Common Stock |
|
|
1,510 |
|
|
|
1,508 |
|
Class B Common Stock |
|
|
359 |
|
|
|
359 |
|
Capital surplus |
|
|
99,303 |
|
|
|
93,131 |
|
Retained earnings |
|
|
1,926,549 |
|
|
|
1,845,163 |
|
Accumulated other comprehensive loss |
|
|
(23,761 |
) |
|
|
(24,290 |
) |
Total shareholders’ equity |
|
|
2,003,960 |
|
|
|
1,915,871 |
|
Total liabilities and shareholders’ equity |
|
$ |
2,569,975 |
|
|
$ |
2,427,972 |
|
Detail of Operating
Results(Unaudited)
|
|
Thirteen weeks ended August 26, 2023 |
|
|
Thirteen weeks ended August 27, 2022 |
|
|
|
Core Laundry |
|
Specialty |
|
First |
|
|
|
|
Core Laundry |
|
Specialty |
|
First |
|
|
|
|
|
Operations |
|
Garments |
|
Aid |
|
Total |
|
|
Operations |
|
Garments |
|
Aid |
|
Total |
|
Revenues |
|
$ |
505,022 |
|
$ |
41,421 |
|
$ |
25,447 |
|
$ |
571,890 |
|
|
$ |
458,561 |
|
$ |
36,665 |
|
$ |
21,188 |
|
$ |
516,414 |
|
Revenue Growth % |
|
|
10.1 |
% |
|
13.0 |
% |
|
20.1 |
% |
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) (1),
(2) |
|
$ |
30,198 |
|
$ |
6,805 |
|
$ |
(925 |
) |
$ |
36,078 |
|
|
$ |
29,027 |
|
$ |
4,018 |
|
$ |
206 |
|
$ |
33,251 |
|
Operating Margin |
|
|
6.0 |
% |
|
16.4 |
% |
|
-3.6 |
% |
|
6.3 |
% |
|
|
6.3 |
% |
|
11.0 |
% |
|
1.0 |
% |
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1), (2) |
|
$ |
61,685 |
|
$ |
7,840 |
|
$ |
(307 |
) |
$ |
69,218 |
|
|
$ |
54,321 |
|
$ |
5,017 |
|
$ |
830 |
|
$ |
60,168 |
|
EBITDA Margin |
|
|
12.2 |
% |
|
18.9 |
% |
|
-1.2 |
% |
|
12.1 |
% |
|
|
11.8 |
% |
|
13.7 |
% |
|
3.9 |
% |
|
11.7 |
% |
(1)
The Company’s financial results for the fourth quarters of
fiscal 2023 and 2022 included approximately $6.1 million and $9.1
million, respectively, of costs directly attributable to its Key
Initiatives. In addition, the Company incurred costs related to the
acquisition of Clean Uniform during the fourth quarter of fiscal
2023 of approximately $0.3 million. These costs were recorded to
the Core Laundry Operations segment.
(2)
The Key Initiative and acquisition-related costs resulted in
a decrease in Core Laundry Operations' operating and EBITDA margin
for the fourth quarters of fiscal 2023 and 2022 of 1.3% and 2.0%,
respectively.
|
|
Fifty-two weeks ended August 26, 2023 |
|
|
Fifty-two weeks ended August 27, 2022 |
|
|
|
Core Laundry |
|
Specialty |
|
First |
|
|
|
|
Core Laundry |
|
Specialty |
|
First |
|
|
|
|
|
Operations |
|
Garments |
|
Aid |
|
Total |
|
|
Operations |
|
Garments |
|
Aid |
|
Total |
|
Revenues |
|
$ |
1,961,189 |
|
$ |
177,034 |
|
$ |
94,824 |
|
$ |
2,233,047 |
|
|
$ |
1,770,502 |
|
$ |
152,885 |
|
$ |
77,435 |
|
$ |
2,000,822 |
|
Revenue Growth % |
|
|
10.8 |
% |
|
15.8 |
% |
|
22.5 |
% |
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) (3),
(4) |
|
$ |
98,666 |
|
$ |
37,488 |
|
$ |
(2,551 |
) |
$ |
133,603 |
|
|
$ |
110,710 |
|
$ |
23,658 |
|
$ |
(17 |
) |
$ |
134,351 |
|
Operating Margin |
|
|
5.0 |
% |
|
21.2 |
% |
|
-2.7 |
% |
|
6.0 |
% |
|
|
6.3 |
% |
|
15.5 |
% |
|
0.0 |
% |
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3), (4) |
|
$ |
211,439 |
|
$ |
41,508 |
|
$ |
385 |
|
$ |
253,332 |
|
|
$ |
210,035 |
|
$ |
27,755 |
|
$ |
2,461 |
|
$ |
240,251 |
|
EBITDA Margin |
|
|
10.8 |
% |
|
23.4 |
% |
|
0.4 |
% |
|
11.3 |
% |
|
|
11.9 |
% |
|
18.2 |
% |
|
3.2 |
% |
|
12.0 |
% |
(3)
The Company's financial results for the full years of fiscal
2023 and 2022 included approximately $33.6 million and $33.1
million, respectively, of costs directly attributable to its Key
Initiatives. In addition, the Company incurred costs related to the
acquisition of Clean Uniform during the full year of fiscal 2023 of
approximately $3.0 million. These costs were recorded to the Core
Laundry Operations segment.
(4)
The Key Initiative and acquisition-related costs resulted in
a decrease in Core Laundry Operations' operating and EBITDA margin
for both the full years of fiscal 2023 and 2022 of 1.9%.
Consolidated Statements of Cash
Flows(Unaudited)
(In thousands) |
|
Fifty-two weeks ended August 26, 2023 |
|
|
Fifty-two weeks ended August 27, 2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
103,674 |
|
|
$ |
103,404 |
|
Adjustments to reconcile net
income to cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization (1) |
|
|
121,233 |
|
|
|
108,777 |
|
Share-based compensation |
|
|
9,063 |
|
|
|
9,103 |
|
Accretion on environmental contingencies |
|
|
1,036 |
|
|
|
596 |
|
Accretion on asset retirement obligations |
|
|
923 |
|
|
|
970 |
|
Deferred income taxes |
|
|
22,143 |
|
|
|
20,008 |
|
Other |
|
|
1,020 |
|
|
|
(993 |
) |
Changes in assets and
liabilities, net of acquisitions: |
|
|
|
|
|
|
Receivables, less reserves |
|
|
(21,714 |
) |
|
|
(40,626 |
) |
Inventories |
|
|
4,001 |
|
|
|
(8,148 |
) |
Rental merchandise in service |
|
|
(20,847 |
) |
|
|
(36,597 |
) |
Prepaid expenses and other current assets and Other assets |
|
|
(7,057 |
) |
|
|
9,250 |
|
Accounts payable |
|
|
10,111 |
|
|
|
(927 |
) |
Accrued liabilities |
|
|
(12,762 |
) |
|
|
(31,517 |
) |
Prepaid and accrued income taxes |
|
|
4,938 |
|
|
|
(10,651 |
) |
Net cash provided by operating
activities |
|
|
215,762 |
|
|
|
122,649 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisition of businesses, net
of cash acquired |
|
|
(306,193 |
) |
|
|
(44,203 |
) |
Capital expenditures,
including capitalization of software costs |
|
|
(171,991 |
) |
|
|
(144,319 |
) |
Purchases of investments |
|
|
(117,012 |
) |
|
|
— |
|
Maturities of investments |
|
|
107,000 |
|
|
|
— |
|
Proceeds from sale of
assets |
|
|
549 |
|
|
|
2,015 |
|
Net cash used in investing
activities |
|
|
(487,647 |
) |
|
|
(186,507 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payment of deferred financing
costs |
|
|
(851 |
) |
|
|
— |
|
Proceeds from exercise of
share-based awards |
|
|
3 |
|
|
|
(167 |
) |
Taxes withheld and paid
related to net share settlement of equity awards |
|
|
(2,891 |
) |
|
|
(4,068 |
) |
Repurchase of Common
Stock |
|
|
— |
|
|
|
(44,412 |
) |
Payment of cash dividends |
|
|
(22,100 |
) |
|
|
(20,791 |
) |
Net cash used in financing
activities |
|
|
(25,839 |
) |
|
|
(69,438 |
) |
|
|
|
|
|
|
|
Effect of exchange rate
changes |
|
|
768 |
|
|
|
(3,173 |
) |
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents |
|
|
(296,956 |
) |
|
|
(136,469 |
) |
Cash and cash equivalents at
beginning of period |
|
|
376,399 |
|
|
|
512,868 |
|
Cash and cash equivalents at
end of period |
|
$ |
79,443 |
|
|
$ |
376,399 |
|
(1) Depreciation and amortization for the
full year of fiscal 2023 and 2022 included approximately $19.3
million and $15.1 million, respectively, of non-cash amortization
expense recognized on acquisition-related intangible assets.
Reconciliation of GAAP to Non-GAAP Financial
Measures
The Company reports its consolidated financial
results in accordance with generally accepted accounting principles
(“GAAP”). To supplement the Company’s consolidated financial
results in this press release, the Company also presents EBITDA and
EBITDA margin, which are non-GAAP financial measures. The Company
defines EBITDA as net income before interest, income taxes,
depreciation and amortization. EBITDA margin is defined as EBITDA
for a period divided by revenue for the same
period.
The Company believes these non-GAAP financial
measures provide useful supplemental information regarding the
performance of the Company and its segments to both management and
investors. These non-GAAP financial measures exclude certain items
that may impact the comparability of the Company’s results. In
addition, by excluding certain items, these non-GAAP financial
measures enable management and investors to further evaluate the
underlying operating performance of the
Company.
Supplemental reconciliations of the Company’s
consolidated net income on a GAAP basis to EBITDA and EBITDA
margin, which are non-GAAP financial measures, are presented in the
following table. Investors are encouraged to review the
reconciliations of the non-GAAP financial measures to their most
directly comparable GAAP financial measures, which are provided
below. EBITDA and EBITDA margin should be considered in addition
to, and not as substitutes for, or in isolation from, measures
prepared in accordance with GAAP.
The Company does not allocate its provision for
income taxes to its business segments and as a result, presents it
in a separate column in the following tables:
|
Thirteen weeks ended August 26, 2023 |
|
|
|
Core Laundry |
|
|
Specialty |
|
|
First |
|
|
|
|
|
|
|
(In thousands, except percentages) |
|
Operations |
|
|
Garments |
|
|
Aid |
|
|
Other |
|
|
Total |
|
Revenue |
|
$ |
505,022 |
|
|
$ |
41,421 |
|
|
$ |
25,447 |
|
|
$ |
— |
|
|
$ |
571,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
30,605 |
|
|
$ |
6,805 |
|
|
$ |
(925 |
) |
|
$ |
(8,854 |
) |
|
$ |
27,631 |
|
Provision for income
taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,854 |
|
|
|
8,854 |
|
Interest income, net |
|
|
(385 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(385 |
) |
Depreciation and
amortization |
|
|
31,465 |
|
|
|
1,035 |
|
|
|
618 |
|
|
|
— |
|
|
|
33,118 |
|
EBITDA |
|
$ |
61,685 |
|
|
$ |
7,840 |
|
|
$ |
(307 |
) |
|
$ |
— |
|
|
$ |
69,218 |
|
EBITDA Margin |
|
|
12.2 |
% |
|
|
18.9 |
% |
|
|
-1.2 |
% |
|
|
|
|
|
12.1 |
% |
|
Thirteen weeks ended August 27, 2022 |
|
|
|
Core Laundry |
|
|
Specialty |
|
|
First |
|
|
|
|
|
|
|
(In thousands, except percentages) |
|
Operations |
|
|
Garments |
|
|
Aid |
|
|
Other |
|
|
Total |
|
Revenue |
|
$ |
458,561 |
|
|
$ |
36,665 |
|
|
$ |
21,188 |
|
|
$ |
— |
|
|
$ |
516,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
29,023 |
|
|
$ |
4,018 |
|
|
$ |
206 |
|
|
$ |
(7,066 |
) |
|
$ |
26,181 |
|
Provision for income
taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,066 |
|
|
|
7,066 |
|
Interest income, net |
|
|
(1,112 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,112 |
) |
Depreciation and
amortization |
|
|
26,410 |
|
|
|
999 |
|
|
|
624 |
|
|
|
— |
|
|
|
28,033 |
|
EBITDA |
|
$ |
54,321 |
|
|
$ |
5,017 |
|
|
$ |
830 |
|
|
$ |
— |
|
|
$ |
60,168 |
|
EBITDA Margin |
|
|
11.8 |
% |
|
|
13.7 |
% |
|
|
3.9 |
% |
|
|
|
|
|
11.7 |
% |
|
Fifty-two weeks ended August 26, 2023 |
|
|
|
Core Laundry |
|
|
Specialty |
|
|
First |
|
|
|
|
|
|
|
(In thousands, except percentages) |
|
Operations |
|
|
Garments |
|
|
Aid |
|
|
Other |
|
|
Total |
|
Revenue |
|
$ |
1,961,189 |
|
|
$ |
177,034 |
|
|
$ |
94,824 |
|
|
$ |
— |
|
|
$ |
2,233,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
103,900 |
|
|
$ |
37,488 |
|
|
$ |
(2,551 |
) |
|
$ |
(35,163 |
) |
|
$ |
103,674 |
|
Provision for income
taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
35,163 |
|
|
|
35,163 |
|
Interest income, net |
|
|
(6,738 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,738 |
) |
Depreciation and
amortization |
|
|
114,277 |
|
|
|
4,020 |
|
|
|
2,936 |
|
|
|
— |
|
|
|
121,233 |
|
EBITDA |
|
$ |
211,439 |
|
|
$ |
41,508 |
|
|
$ |
385 |
|
|
$ |
— |
|
|
$ |
253,332 |
|
EBITDA Margin |
|
|
10.8 |
% |
|
|
23.4 |
% |
|
|
0.4 |
% |
|
|
|
|
|
11.3 |
% |
|
Fifty-two weeks ended August 27, 2022 |
|
|
|
Core Laundry |
|
|
Specialty |
|
|
First |
|
|
|
|
|
|
|
(In thousands, except percentages) |
|
Operations |
|
|
Garments |
|
|
Aid |
|
|
Other |
|
|
Total |
|
Revenue |
|
$ |
1,770,502 |
|
|
$ |
152,885 |
|
|
$ |
77,435 |
|
|
$ |
— |
|
|
$ |
2,000,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
110,684 |
|
|
$ |
23,658 |
|
|
$ |
(17 |
) |
|
$ |
(30,921 |
) |
|
$ |
103,404 |
|
Provision for income
taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,921 |
|
|
|
30,921 |
|
Interest income, net |
|
|
(2,851 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,851 |
) |
Depreciation and
amortization |
|
|
102,202 |
|
|
|
4,097 |
|
|
|
2,478 |
|
|
|
— |
|
|
|
108,777 |
|
EBITDA |
|
$ |
210,035 |
|
|
$ |
27,755 |
|
|
$ |
2,461 |
|
|
$ |
— |
|
|
$ |
240,251 |
|
EBITDA Margin |
|
|
11.9 |
% |
|
|
18.2 |
% |
|
|
3.2 |
% |
|
|
|
|
|
12.0 |
% |
Supplemental reconciliations of the Company’s
fiscal 2024 financial outlook for consolidated net income on a GAAP
basis to EBITDA and EBITDA margin, which are non-GAAP financial
measures, are presented in the following table. In addition,
supplemental reconciliations of the fiscal 2024 financial outlook
for segments’ net income on a GAAP basis to segments’ EBITDA and
EBITDA margin, which are non-GAAP financial measures, are also
presented in the following table.
Investors are encouraged to review the
reconciliations of the outlook for these non-GAAP measures to the
outlook for their most directly comparable GAAP financial measures,
which are provided below. The Company’s outlook contains
forward-looking statements and information. Actual results may
differ materially. See “Forward-Looking Statements Disclosure.”
|
|
Fifty-three weeks ended August 31, 2024 (1) |
|
|
|
|
|
|
|
|
|
Specialty Garments, |
|
|
|
|
|
|
Core Laundry |
|
|
First Aid, and |
|
(In thousands, except percentages) |
|
Consolidated |
|
|
Operations |
|
|
Other |
|
Revenue |
|
$ |
2,425,000 |
|
|
$ |
2,145,000 |
|
|
$ |
280,000 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
128,550 |
|
|
$ |
138,650 |
|
|
$ |
(10,100 |
) |
Provision for income
taxes |
|
|
42,850 |
|
|
|
— |
|
|
|
42,850 |
|
Interest income, net |
|
|
(1,650 |
) |
|
|
(1,650 |
) |
|
|
— |
|
Depreciation and
amortization |
|
|
138,036 |
|
|
|
131,426 |
|
|
|
6,610 |
|
EBITDA |
|
$ |
307,786 |
|
|
$ |
268,426 |
|
|
$ |
39,360 |
|
EBITDA Margin |
|
|
12.7 |
% |
|
|
12.5 |
% |
|
|
14.1 |
% |
(1) Amounts represent the midpoint of the
Company’s guidance.
Investor Relations ContactShane
O’Connor, Executive Vice President & CFOUniFirst
Corporation
978-658-8888shane_oconnor@unifirst.com
UniFirst (NYSE:UNF)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
UniFirst (NYSE:UNF)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024