UniFirst(UNF) - 2025 Q2 - Quarterly Results

Financial Performance - Consolidated revenues for Q2 2025 increased by 1.9% to $602.2 million compared to$ 590.7 million in Q2 2024[4] - Operating income rose to $31.2 million, reflecting an increase of 11.7% year-over-year[4] - Net income increased by 19.6% to$ 24.5 million from $20.5 million in the prior year[4] - Diluted earnings per share grew by 20.2% to$ 1.31 from $1.09 in the prior year[4] - Adjusted EBITDA for the quarter increased by 6.3% to$ 68.9 million compared to $64.8 million in the prior year[4] - Revenues for the thirteen weeks ended March 1, 2025, were$ 602,210,000, reflecting a revenue growth of 1.5% compared to $590,710,000 for the same period in 2024[15] - The company reported a net income of$ 31,214,000 for the thirteen weeks ended March 1, 2025, compared to $27,943,000 in the prior year[15] - Total revenues for the twenty-six weeks ended March 1, 2025, were$ 1,207,127,000, representing a 1.9% increase compared to $1,184,236,000 for the same period in 2024[17] - Operating income for the twenty-six weeks ended March 1, 2025, was$ 67,290,000, with an operating margin of 6.3%, compared to an operating income of $61,137,000 and an operating margin of 6.8% in the prior year[17] - The company reported a net income of$ 67,564,000 for the twenty-six weeks ended March 1, 2025, compared to $62,782,000 for the same period in 2024[19] Cash Flow and Assets - Cash flow from operating activities for the first half of fiscal 2025 was$ 128.3 million, an increase of 20.2% over the prior year[11] - The company had no long-term debt outstanding as of March 1, 2025, and cash and short-term investments totaled $201.0 million[11] - Cash and cash equivalents increased to$ 192,174,000 from $161,571,000, a rise of 18.9%[14] - The company’s cash and cash equivalents at the end of the period were$ 192,174,000, up from $90,538,000 at the end of the previous year[19] Key Initiatives and Costs - Key Initiative costs for fiscal 2025 are anticipated to approximate$ 12.0 million, revised down from prior estimates[7] - The company incurred approximately $1.9 million in costs related to Key Initiatives, impacting operating margins[16] - The company incurred approximately$ 4.4 million in costs related to Key Initiatives during the first half of fiscal 2025, impacting operating margins[18] Growth Metrics - Organic growth, excluding acquisitions and currency fluctuations, was 1.9%[5] - The company expects fiscal 2025 revenues to be between $2.422 billion and$ 2.432 billion, with diluted earnings per share projected between $7.30 and$ 7.70[7] - The company’s revenue growth for Core Laundry Operations was 1.6% for the twenty-six weeks ended March 1, 2025, compared to the previous year[17] Inventory and Liabilities - Total current assets increased to $936,847,000 from$ 915,676,000, representing a growth of 2.5%[14] - Total liabilities amounted to $589,806,000, showing a slight increase from$ 580,790,000[14] - Inventories increased to $159,067,000 from$ 156,908,000, indicating a growth of 1.4%[14] - The company’s goodwill stood at $653,004,000, reflecting a stable position compared to the previous period[14] Capital Expenditures and Margins - Capital expenditures for the twenty-six weeks ended March 1, 2025, were$ 66,086,000, down from $72,902,000 in the prior year[19] - Adjusted EBITDA for the thirteen weeks ended March 1, 2025, was$ 59,357,000, with an adjusted EBITDA margin of 11.2%[15] - Adjusted EBITDA for the twenty-six weeks ended March 1, 2025, was $162,878,000, with an adjusted EBITDA margin of 13.5%, compared to$ 153,524,000 and a margin of 13.0% in the previous year[25] - The adjusted EBITDA margin for Core Laundry Operations was 13.0% for the twenty-six weeks ended March 1, 2025, compared to 12.4% in the previous year[25]