Core Viewpoint - UniFirst Corporation is restructuring its reporting organization, transitioning from five segments to three reportable segments to better reflect current business management and performance assessment [1][2][3] Summary of Reporting Changes - The previous five segments included U.S. and Canadian Rental and Cleaning, Manufacturing, Corporate, First Aid, and Specialty Garments Rental and Cleaning. The new structure consolidates these into three segments: Uniform & Facility Service Solutions, First Aid & Safety Solutions, and Other [2][3][6] - The Uniform & Facility Service Solutions segment combines the former U.S. and Canadian Rental and Cleaning, Manufacturing, and Corporate segments, now also including cleanroom solutions [3][6] - The First Aid segment has been renamed to First Aid & Safety Solutions, reflecting a broader scope of services and products [4][6] - The Other segment now consists of nuclear solutions, previously part of Specialty Garments, focusing on specialty garments and non-garment items for nuclear applications [5][6] Financial Performance Metrics - Key performance measures for the segments will continue to be revenues and operating income, with adjusted EBITDA provided for additional insights [7] - Historical financial data for the new segments has been recast to assist investors in understanding the impact of these changes, covering seven quarters of metrics from fiscal 2024 to fiscal 2025 [8][9] Company Overview - UniFirst Corporation is a leader in North America for uniform and workwear programs, facility service products, and first aid and safety supplies, managing specialized garment programs for cleanroom and nuclear industries [10] - The company operates over 270 service locations and serves more than 300,000 customer locations, employing over 16,000 team members [10]

Core Viewpoint - UniFirst Corporation is set to report its Fiscal 2025 fourth quarter results on October 22, 2025, and will hold a conference call to discuss financial results and outlook [1]. Group 1: Financial Reporting - The company will announce its fourth quarter results before the market opens on October 22, 2025 [1]. - A conference call is scheduled for 9:00 a.m. Eastern Time on the same day to discuss quarterly financial results and business highlights [1]. Group 2: Company Overview - UniFirst Corporation is a North American leader in uniform and workwear supply, facility service products, and safety supplies [3]. - The company operates five ISO-9001-certified manufacturing facilities and manages specialized garment programs for cleanroom and nuclear industries [3]. - With over 270 service locations and more than 300,000 customer locations, UniFirst outfits over 2 million workers daily [3].

Core Insights - UniFirst First Aid + Safety and Soundtrace have partnered to provide on-site audiometric testing services to help employers comply with OSHA's hearing conservation requirements and protect workers from preventable hearing loss [1][5]. Industry Context - Millions of American workers are exposed to hazardous noise levels annually, which can lead to irreversible hearing loss. OSHA mandates that employers implement hearing conservation programs, including annual audiometric testing for employees exposed to average noise levels of 85 decibels or more during an 8-hour shift [2]. Challenges in Compliance - Employers with existing hearing conservation programs face challenges such as coordinating testing across multiple shifts, accommodating tight production schedules, and minimizing downtime. Traditional methods like mobile testing vans and inconsistent tablet-based screenings often fail to meet operational demands, leading to missed tests and increased administrative burdens [3][4]. Financial Implications - Failure to detect hearing damage can result in significant financial penalties, with OSHA violations potentially costing up to $165,514 and workers' compensation claims exceeding $100,000 [4]. Partnership Benefits - The partnership will enable UniFirst to offer on-site audiometric testing powered by Soundtrace's AI-driven technology, making compliance easier and reducing employee time away from work [5][6]. Key benefits include: - Convenience of on-site testing during work hours [7] - Automated, OSHA-compliant recordkeeping [7] - Early detection of hearing shifts through AI technology [7] Company Profiles - UniFirst First Aid + Safety is a subsidiary of UniFirst Corporation, headquartered in St. Louis, Missouri, with 260 service locations and over 300,000 customer locations [6]. - Soundtrace specializes in hearing conservation technology, providing digital testing and compliance tools to protect workers from occupational hearing loss [7].

Company Overview - UniFirst Corporation is a North American leader in providing customized business uniform programs, facility service products, and first aid and safety services [1][7] - The company operates over 270 service locations and serves more than 300,000 customer locations, outfitting over 2 million workers daily [7] NASCAR Partnership - UniFirst is excited to announce the return of the UniFirst No. 9 Chevrolet driven by Chase Elliott to the NASCAR Cup Series, with the race scheduled for August 16 at Richmond Raceway [1][2] - This event is part of a decade-long partnership with Hendrick Motorsports, highlighting the company's commitment to performance and service [3][4] Sponsorship and Branding - The UniFirst No. 9 Chevrolet features a bold green and gray design with the iconic "U-Mark," emphasizing the brand's visibility and dedication [3] - This year marks UniFirst's sixth season as the official workwear provider for Hendrick Motorsports, supplying high-quality uniforms and workwear [5] Performance and Events - The Richmond race is one of the final appearances for the UniFirst No. 9 Chevrolet in the 2025 NASCAR Cup Series season, with another appearance scheduled for October 5 at Charlotte Motor Speedway ROVAL [4] - Chase Elliott expressed enthusiasm for the night race atmosphere, aiming to deliver a strong performance for fans [5]

Core Values and Leadership - UniFirst Corporation celebrated its 24th annual Founder's Day with a focus on its founding Core Values: Customer Focus, Commitment to Quality, and Respect for Others, which are central to its people-first strategy [1][3] - The event featured a leadership panel discussion moderated by Catalina Dongo, Senior Vice President of Human Resources, with top executives discussing the importance of these Core Values in the company's success and growth [3] Recognition and Awards - The inaugural Cynthia Croatti Leadership Award was introduced to honor leaders who exemplify vision, passion, and purpose, with Cynthia Croatti being the first recipient for her significant contributions over the past 40 years [4][5] - Founder's Day also included the annual Employee of the Year (EOY) recognition, celebrating outstanding Team Partners who demonstrate commitment to the company's values, with recipients receiving plaques, gifts, and a bonus paid day off [5][6] Educational Support - UniFirst announced the recipients of its higher-education scholarships, including the Aldo Croatti Scholarship for children of Team Partners and the Ronald D. Croatti Scholarship for full-time Team Partners pursuing further education, reflecting the company's commitment to investing in its workforce [6] Company Overview - UniFirst Corporation, headquartered in Wilmington, Massachusetts, is a leader in providing uniform and workwear programs, facility service products, and first aid and safety services across North America, with over 270 service locations and more than 16,000 employees [8]

Core Insights - UniFirst Corporation has been recognized for 22 consecutive years on Selling Power's list of the "60 Best Companies to Sell For in 2025," highlighting its strong sales culture and commitment to customer service [1][4]. Company Overview - UniFirst is a North American leader in providing customized business uniform programs, facility service products, and first aid and safety services [1][6]. - The company serves over two million uniform wearers across North America, including more than half of the Fortune 500 companies [4]. Sales Culture - The company's sales culture is built on its Founding Core Values: Customer Focus, Commitment to Quality, and Respect for Others [3]. - UniFirst empowers its sales teams to understand customers' businesses deeply, enabling them to develop innovative strategies that address unique challenges [3][4]. Recognition and Evaluation - Selling Power evaluates companies based on their supportive and collaborative sales culture, with a focus on professionalism, trust, and empowerment [4]. - The recognition reflects UniFirst's long-term success in sales and customer engagement [4]. Recruitment and Growth - UniFirst is actively recruiting talented individuals to join its award-winning sales team, indicating ongoing growth and expansion [5].

Part I – Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements%20(unaudited)) The unaudited financial statements present the company's performance for the thirteen and thirty-nine weeks ended May 31, 2025, highlighting revenue and net income growth, increased total assets and shareholders' equity, and strong operating cash flow [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) For the third quarter of fiscal 2025, revenues increased by 1.2% to $610.8 million, while net income grew by 4.3% to $39.7 million compared to the same period last year, with year-to-date revenues rising 1.7% to $1.82 billion and net income increasing by 6.4% to $107.2 million Financial Performance Summary | Financial Metric | Thirteen Weeks Ended May 31, 2025 | Thirteen Weeks Ended May 25, 2024 | Thirty-Nine Weeks Ended May 31, 2025 | Thirty-Nine Weeks Ended May 25, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $610.8M | $603.3M | $1,817.9M | $1,787.6M | | **Operating Income** | $48.2M | $48.5M | $134.9M | $129.5M | | **Net Income** | $39.7M | $38.1M | $107.2M | $100.8M | | **Diluted EPS (Common Stock)** | $2.13 | $2.03 | $5.76 | $5.38 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of May 31, 2025, total assets increased to $2.76 billion from $2.70 billion at August 31, 2024, driven by a rise in cash and cash equivalents, while total liabilities remained stable and shareholders' equity grew to $2.17 billion Consolidated Balance Sheet Highlights | Balance Sheet Item | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $937.9M | $915.7M | | **Total Assets** | $2,760.0M | $2,696.4M | | **Total Current Liabilities** | $266.9M | $281.4M | | **Total Liabilities** | $585.2M | $587.9M | | **Total Shareholders' Equity** | $2,174.8M | $2,108.5M | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the thirty-nine weeks ended May 31, 2025, the company generated $196.5 million in cash from operating activities, with cash used in investing activities primarily for capital expenditures and financing activities mainly for share repurchases and dividends, resulting in a net cash increase of $50.3 million Consolidated Cash Flow Summary | Cash Flow Activity (Thirty-Nine Weeks Ended) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $196.5M | $193.0M | | **Net cash used in investing activities** | ($98.5M) | ($124.3M) | | **Net cash used in financing activities** | ($48.3M) | ($36.1M) | | **Net increase in cash and cash equivalents** | $50.3M | $32.8M | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail revenue disaggregation, commitments, debt facilities, and segment performance, highlighting Core Laundry Operations as the largest revenue source, a significant but not probable tax assessment in Mexico, and the company's credit facility and share repurchase program - Core Laundry Operations constituted **87.8% of total revenues** for the thirty-nine weeks ended May 31, 2025, followed by Specialty Garments (**7.6%**) and First Aid (**4.6%**)[35](index=35&type=chunk) - The company is challenging a tax assessment from Mexican authorities totaling over **$84.7 million**, though management believes a loss is neither probable nor remote[93](index=93&type=chunk) - As of May 31, 2025, the company had **no outstanding borrowings** under its credit facility and **$168.3 million available** for borrowing[103](index=103&type=chunk) - A new share repurchase program of up to **$100.0 million** was authorized on April 8, 2025, with **$86.4 million remained available** for repurchases as of May 31, 2025[116](index=116&type=chunk)[117](index=117&type=chunk) [Management's Discussion and Analysis (MD&A)](index=24&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 1.2% quarterly revenue growth primarily to organic growth in Core Laundry Operations, noting a slight decrease in operating margin due to higher healthcare claims and advisory costs, while liquidity remains strong, funding capital expenditures, share repurchases, and dividends [Results of Operations](index=26&type=section&id=Results%20of%20Operations) For Q3 2025, consolidated revenue grew 1.2% to $610.8 million, driven by increases in Core Laundry Operations and First Aid, with operating income nearly flat, while the 39-week period saw revenue growth of 1.7% to $1.82 billion and operating income increase of 4.2% to $134.9 million Quarterly Revenue by Segment | Revenue by Segment (Q3) | May 31, 2025 | May 25, 2024 | % Change | | :--- | :--- | :--- | :--- | | Core Laundry Operations | $533.2M | $528.5M | 0.9% | | Specialty Garments | $47.8M | $47.6M | 0.5% | | First Aid | $29.8M | $27.3M | 9.1% | | **Total** | **$610.8M** | **$603.3M** | **1.2%** | - Cost of revenues as a percentage of revenue decreased from **64.8% to 63.1%** in Q3 2025, primarily due to lower merchandise and production payroll costs[144](index=144&type=chunk) - Selling and administrative expenses increased by **10.5%** in Q3 2025, driven by higher healthcare claims and approximately **$5.7 million** in advisory and legal costs for strategic and employee matters[145](index=145&type=chunk) Year-to-Date Operating Income by Segment | Operating Income by Segment (YTD) | May 31, 2025 | May 25, 2024 | % Change | | :--- | :--- | :--- | :--- | | Core Laundry Operations | $104.0M | $98.1M | 6.1% | | Specialty Garments | $30.5M | $33.4M | (8.6)% | | First Aid | $0.4M | ($1.9M) | 119.7% | | **Total** | **$134.9M** | **$129.5M** | **4.2%** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains strong, with cash and equivalents increasing by $50.3 million to $211.9 million during the first thirty-nine weeks of fiscal 2025, driven by $196.5 million in operating cash flow, while major uses of cash included capital expenditures, share repurchases, and dividends Cash Flow Summary (Thirty-Nine Weeks Ended) | Cash Flow Summary (Thirty-Nine Weeks Ended) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $196.5M | $193.0M | | Net cash used in investing activities | ($98.5M) | ($124.3M) | | Net cash used in financing activities | ($48.3M) | ($36.1M) | - The increase in operating cash flow was primarily due to improved profitability and positive working capital changes, including better management of inventories and receivables[166](index=166&type=chunk)[167](index=167&type=chunk) - The increase in cash used for financing activities was driven by a **$9.6 million increase** in share repurchases compared to the prior year period[171](index=171&type=chunk) [Market Risk Disclosures](index=34&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to foreign currency exchange risk and interest rate risk, with approximately 7.1% of Q3 2025 revenues denominated in foreign currencies, and mitigates some currency risk using forward contracts while interest rate risk exists through potential borrowings under its variable-rate credit facility - Revenues denominated in foreign currencies represented approximately **7.1% of total consolidated revenues** for the thirteen weeks ended May 31, 2025[186](index=186&type=chunk) - The company has forward contracts to sell approximately **14.1 million CAD** through fiscal 2026 to manage exposure from a subsidiary's CAD-denominated sales, with **2.3 million CAD** notional value outstanding as of May 31, 2025[187](index=187&type=chunk)[188](index=188&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of May 31, 2025, solely due to previously identified material weaknesses in IT general controls, with ongoing remediation efforts including redesigning IT processes, enhancing oversight, strengthening policies, and implementing a new Identity and Access Management system - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of the end of the period, solely due to material weaknesses in IT general controls identified in the fiscal 2024 Annual Report[192](index=192&type=chunk) - Ongoing remediation actions include: - Reassessing and redesigning IT 'manage change' and 'manage access' processes - Enhanced oversight from the new Business Processes, Risk and Controls group - Implementing an Identity and Access Management (IAM) system - Oversight from the new Chief Information and Technology Officer hired in Q1 2025[196](index=196&type=chunk) Part II – Other Information [Risk Factors](index=36&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The company highlights a risk related to U.S. and foreign trade policies, where new or increased tariffs on imported goods could materially and adversely impact the business if these costs cannot be mitigated - A key risk is that new or increased tariffs on imported goods by the U.S. and other countries could materially and adversely impact the business if the company is unable to mitigate the increased costs of raw materials or products[202](index=202&type=chunk) [Share Repurchases](index=36&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of fiscal 2025, the company repurchased 75,973 shares of its Common Stock for approximately $13.6 million, and on April 8, 2025, the Board authorized a new $100.0 million share repurchase program, with $86.4 million remaining available as of May 31, 2025 Common Stock Repurchases | Period (2025) | Total Shares Purchased | Average Price Paid per Share | Approx. Value Remaining under Program | | :--- | :--- | :--- | :--- | | Mar 2 - Mar 29 | 0 | $— | $63.7M | | Mar 30 - Apr 26 | 24,000 | $173.65 | $95.8M | | Apr 27 - May 31 | 51,973 | $182.10 | $86.4M | | **Total for Q3** | **75,973** | **N/A** | **$86.4M** | - On April 8, 2025, the Board of Directors authorized a new share repurchase program for up to **$100.0 million** of its outstanding Common Stock, inclusive of amounts remaining under the prior program[116](index=116&type=chunk)[203](index=203&type=chunk)

Group 1 - UniFirst Corporation's shares experienced a significant decline of 10.2% following the announcement of its third-quarter financial results for 2025 [1] - The company is part of a broader investment service and community focused on cash flow generation in the oil and natural gas sector [1][2] Group 2 - The investment service offers subscribers access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions in the next 72 hours [1]. - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2]. - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [2].

Company Performance - UniFirst reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $2.12 per share, but down from $2.19 per share a year ago, representing an earnings surprise of +2.36% [1] - The company posted revenues of $610.78 million for the quarter ended May 2025, missing the Zacks Consensus Estimate by 0.36%, compared to $603.33 million in the same quarter last year [2] - Over the last four quarters, UniFirst has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - UniFirst shares have increased approximately 11.3% since the beginning of the year, outperforming the S&P 500's gain of 5.4% [3] - The current consensus EPS estimate for the upcoming quarter is $2.02 on revenues of $605 million, and for the current fiscal year, it is $7.94 on revenues of $2.43 billion [7] Industry Outlook - The Zacks Industry Rank indicates that the Uniform and Related industry is currently in the bottom 5% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]