Fiscal Year 2024 Results - Revenue for Fiscal Year 2024 reached $2.81 billion, a decrease of 0.7% year-over-year[6] - Adjusted EBITDA for Fiscal Year 2024 was $353 million, with a margin of 12.6%[7] - Free Cash Flow for Fiscal Year 2024 amounted to $165 million, representing a 47% Free Cash Flow conversion rate[7] - Customer retention improved by 150 basis points in Fiscal Year 2024 compared to Fiscal Year 2023[8] - Net Debt to Adjusted EBITDA ratio stood at 3.6x, reflecting strong cash generation and debt reduction efforts[8] Q4 2024 Results - Revenue for Q4 2024 was $684 million, a decrease of 4.4% year-over-year[5] - Adjusted EBITDA for Q4 2024 was $81 million, resulting in an 11.8% margin[6] - Free Cash Flow for Q4 2024 was $40 million, with a 49% Free Cash Flow conversion rate[7] Fiscal Year 2025 Outlook - The company anticipates revenue between $2.8 billion and $2.83 billion, representing a growth of -0.2% to +0.9%[45] - Adjusted EBITDA is projected to be between $345 million and $360 million, with a margin of 12.3% to 12.7%[45] - The company targets a Free Cash Flow conversion rate of approximately 50% of Adjusted EBITDA[46]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $698 million, a decrease of 1.6% year-over-year, with a sequential revenue decline of approximately 1% [6][17] - Adjusted EBITDA was $87 million, flat sequentially compared to Q2, and down approximately $20 million from Q3 2023, with an adjusted EBITDA margin of 12.4%, a decline of 260 basis points year-over-year [6][20][21] - Customer retention rates improved year-to-date by 210 basis points compared to fiscal 2023, indicating progress in stabilizing the business [8][17] Business Line Data and Key Metrics Changes - New business contributed approximately 800 basis points of growth in Q3, with 700 basis points from new customers and 100 basis points from route sales to existing customers [7][17] - Direct sales were down $3 million year-over-year, primarily due to lost revenue from a large national account [19] - The uniform business experienced a decline of 3.5% year-over-year, while workplace supplies remained flat [19] Market Data and Key Metrics Changes - The company faced approximately 900 basis points of revenue loss year-over-year due to customer losses, with 5% from known losses exiting fiscal 2023 and 4% from losses during the current fiscal year [18] - Pricing contributed 60 basis points to top-line growth, reflecting annual price increases and moderated off-cycle pricing [19] Company Strategy and Development Direction - The company is focused on improving operations and enhancing service levels to drive customer retention and growth [5][11] - A new Chief Operating Officer and Head of Sales have been appointed to streamline operations and accelerate growth [10][12] - The company aims to end fiscal 2024 with strength and is not providing guidance for fiscal 2025 until November [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the business and the improvement of retention metrics, indicating a positive outlook for future growth [5][16] - The company is prioritizing deleveraging and has entered into an accounts receivable securitization facility to reduce net debt [15][24][26] - Management expects the underlying operating trends from Q3 to continue into Q4, despite some one-time benefits in Q3 that will not repeat [27][28] Other Important Information - The company has implemented a new customer delivery notification system to enhance customer experience [13][14] - A restructuring initiative is expected to generate approximately $8 million in annualized gross cost savings [11][12] Q&A Session Summary Question: Customer losses and their impact on future revenue - The management confirmed that the known customer losses in 2024 are less severe than in 2023, indicating a smaller revenue impact moving forward [30][31] Question: Pricing strategy and its effects - Management clarified that while there is positive pricing year-over-year, there is a sequential decline in realized pricing due to moderated pricing actions [34][35][36] Question: Recurring revenue customer retention - Management acknowledged some volatility in quarterly retention metrics but emphasized the year-to-date improvement as a positive trend [38][39] Question: Accounts receivable securitization facility - The facility is non-recourse to the company, allowing for early access to cash from receivables without impacting operating cash flow [40][41] Question: Operational improvements and service levels - Management is optimistic about ongoing efforts to enhance service levels, including on-time delivery and inventory management [64][67]

Financial Performance - Revenue for the three months ended June 28, 2024, was $698,248, a decrease of 1.6% from $709,384 for the same period in 2023[12]. - Operating income for the nine months ended June 28, 2024, was $128,175, down 20% from $160,134 for the same period in 2023[12]. - Net income for the nine months ended June 28, 2024, was $23,268, a decline of 80.5% compared to $119,186 for the same period in 2023[15]. - Net income for the quarter ending June 28, 2024, was $5.037 million, reflecting a decrease from the previous quarter[19]. - Net income for the three months ended June 28, 2024, was $5.0 million, representing a decrease of $43.8 million or 89.7% compared to $48.9 million for the same period in 2023[117]. - For the nine months ended June 28, 2024, revenue increased by $12.2 million or 0.6% to $2.12 billion, compared to $2.11 billion for the same period in 2023[119]. - The total revenue for the Company for the nine months ended June 28, 2024, was $2.12 billion, slightly up from $2.11 billion for the same period in 2023, an increase of 0.1%[79]. Assets and Liabilities - Total current assets remained stable at $1,019,957 as of June 28, 2024, compared to $1,019,965 on September 29, 2023[11]. - Total liabilities decreased to $2,244,453 as of June 28, 2024, from $2,279,764 on September 29, 2023[11]. - Cash and cash equivalents decreased to $29,098 as of June 28, 2024, from $36,051 at the beginning of the period[18]. - The Company’s total equity increased to $901,177 as of June 28, 2024, from $877,360 on September 29, 2023[11]. - The total principal debt issued by the Company as of June 28, 2024, was $1.42 billion, a decrease from $1.5 billion as of September 29, 2023[45]. - As of June 28, 2024, the company had approximately $29.1 million in cash and cash equivalents and $294.7 million available for borrowing under its Revolving Credit Facility[142]. Operating Expenses - Operating expenses for the three months ended June 28, 2024, totaled $660,725, an increase of 2.8% from $643,017 for the same period in 2023[12]. - The company incurred interest expenses of $29,386 for the three months ended June 28, 2024, compared to $83 for the same period in 2023[12]. - The Company recorded severance charges of $1.0 million and $1.4 million for the three and nine months ended June 28, 2024, respectively[42]. - Selling, general and administrative expenses rose by $17.9 million or 4.9% for the nine months ended June 28, 2024, largely due to incremental public company costs[121]. Segment Performance - Total revenue for the United States segment was $636.8 million for the three months ended June 28, 2024, compared to $646.4 million for the same period in 2023, reflecting a decrease of 1.8%[79]. - Total revenue for the Canada segment was $61.4 million for the three months ended June 28, 2024, down from $63.0 million in the same period of 2023, a decrease of 2.5%[79]. - United States segment operating income for the three months ended June 28, 2024, was $64.5 million, down $19.6 million or 23.3% compared to the same period in 2023[126]. - Canada segment operating income for the three months ended June 28, 2024, was $1.3 million, down $2.0 million or 60.6% compared to the same period in 2023[134]. Cash Flow - Net cash provided by operating activities increased to $176.2 million for the nine months ended June 28, 2024, compared to $143.9 million for the same period in 2023, driven by a change in cash from operating assets and liabilities of $135.1 million[145]. - Cash used in financing activities included payments of long-term borrowings totaling $879.5 million and proceeds from long-term borrowings of $798.0 million during the nine months ended June 28, 2024[147]. Dividends and Shareholder Returns - The company declared dividends of $0.035 per common share, totaling $4.603 million for the quarter ending June 28, 2024[19]. - The company declared a quarterly cash dividend of $0.035 per common share, amounting to $4.6 million, payable on July 2, 2024[97]. Legal and Compliance - The Company has provided for a settlement of $3.1 million related to a class action lawsuit, which has been fully accounted for in the financial statements[72]. - A putative class action lawsuit was filed against the company alleging false or misleading statements related to its business and operations, seeking unspecified damages[167]. Accounting and Standards - The Company adopted new accounting standards effective in the first quarter of fiscal 2024, which did not impact the Consolidated Financial Statements[30][31]. - The Company is currently evaluating the impact of new accounting standards issued in December 2023 and November 2023 on its disclosures[32][33]. Miscellaneous - The company completed a spin-off from Aramark on September 30, 2023, issuing approximately 131.2 million shares of common stock[24]. - The company began trading as an independent, publicly traded company under the stock symbol "VSTS" on October 2, 2023, following its separation from Aramark[89]. - The company received three federal trademark registrations for its "Vestis" trademarks and associated logos on April 30, 2024[165].

Based in Roswell, Georgia, Vestis is a provider of uniforms and workplace supplies in the United States and Canada. The Company was created as the result of its September 30, 2023 spinoff from food services and facilities management provider Aramark. Vestis began trading on the New York Stock Exchange on October 2, 2023, the first day of the Class Period, under the ticker symbol "VSTS." If you are a long-term stockholder of Vestis, have information, would like to learn more about these claims, or have any q ...

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Vestis Corporation (NYSE: VSTS) regarding a class action lawsuit due to alleged misleading statements and operational deficiencies during the class period from October 2, 2023, to May 1, 2024 [1][2]. Summary by Relevant Sections Allegations - The complaint alleges that during the class period, Vestis Corporation's management made materially false and misleading statements, failing to disclose critical issues such as: - Aramark's historical underinvestment in the business that became Vestis [2] - Vestis operating with outdated facilities and an underperforming sales force [2] - These operational deficiencies led to "service gaps," hindering growth and resulting in customer attrition [2] - Consequently, the defendants' statements regarding Vestis's business, operations, and prospects were materially false and lacked a reasonable basis [2] Class Action Details - The class period for the lawsuit is defined as October 2, 2023, to May 1, 2024 [2] - The deadline for shareholders to register for the class action is July 16, 2024 [3][4] - Shareholders are encouraged to register to potentially become lead plaintiffs, although this is not a requirement for recovery [1][4] Next Steps for Shareholders - Registered shareholders will be enrolled in a portfolio monitoring software to receive updates throughout the case [4] - Participation in the case incurs no cost or obligation for shareholders [4]

WHY LEVI & KORSINSKY: Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United ...

NEW YORK, July 09, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Vestis Corporation (NYSE: VSTS). CLASS PERIOD: October 2, 2023 to May 1, 2024 NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of VSTS during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is July 16, 2024. There ...

Investors can contact the law firm at no cost to learn more about recovering their losses. Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors' options for pursuing claims to recover their losses. Please visit our website to review more information and submit your transac ...

NEW YORK, July 8, 2024 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Vestis Corporation ("Vestis " or the "Company") (NYSE: VSTS) of a class action securities lawsuit. https://zlk.com/pslra-1/vestis-lawsuit-submission-form?prid=88951&wire=4 CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed that: (1) Aramark, a company providing food service and facilities management, had historically underinvested in the business that became Vestis; (2) Vestis ope ...

NEW YORK, July 02, 2024 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Vestis Corporation ("Vestis " or the "Company") (NYSE: VSTS) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Vestis investors who were adversely affected by alleged securities fraud between October 2, 2023 and May 1, 2024. Follow the link below to get more information and be contacted by a member of our team: WHAT'S NEXT? If you suffered a loss in Vestis during the ...