UniFirst(UNF)2025-04-10 19:01Financial Performance - Revenues for the thirteen weeks ended March 1, 2025, increased to $602,219,000, up 1% from $590,711,000 for the same period in 2024[11] - Net income for the twenty-six weeks ended March 1, 2025, rose to $67,564,000, representing an 8.9% increase compared to $62,782,000 for the same period in 2024[11] - Operating income for the thirteen weeks ended March 1, 2025, was $31,214,000, a 12.8% increase from $27,943,000 in the prior year[11] - Basic income per share for common stock increased to $1.37 for the thirteen weeks ended March 1, 2025, compared to $1.14 for the same period in 2024, reflecting a 20.2% growth[11] - Net income for the twenty-six weeks ended March 1, 2025, was $67,564,000, an increase from $62,782,000 for the same period in the previous year, representing an increase of approximately 12.6%[25] - Cash provided by operating activities for the same period was $128,304,000, compared to $106,725,000 in the prior year, reflecting a growth of about 20.1%[25] - The net income available to shareholders for the thirteen weeks ended March 1, 2025, was $24.459 million, up from $20.457 million for the same period in 2024, indicating a year-over-year increase of 14.6%[66] - Diluted income per share for Common Stock was reported at $1.31 for the thirteen weeks ended March 1, 2025, compared to $1.09 for the same period in 2024, reflecting an increase of approximately 20.2%[68] Assets and Liabilities - Total assets as of March 1, 2025, amounted to $2,733,362,000, an increase from $2,696,413,000 as of August 31, 2024[17] - Cash and cash equivalents increased to $192,174,000 as of March 1, 2025, compared to $161,571,000 as of August 31, 2024[17] - Total current liabilities decreased to $277,560,000 as of March 1, 2025, from $281,437,000 as of August 31, 2024[17] - Shareholders' equity increased to $2,143,556,000 as of March 1, 2025, compared to $2,108,511,000 as of August 31, 2024[17] - Total current assets increased to $936.8 million as of March 1, 2025, compared to $915.7 million as of August 31, 2024[17] - Total liabilities stood at $589.8 million as of March 1, 2025, slightly up from $587.9 million as of August 31, 2024[17] Cash Flow and Investments - Total cash and cash equivalents at the end of the period increased to $192,174,000 from $90,538,000, marking a significant increase of approximately 112%[25] - The net cash used in investing activities was $67,225,000, compared to $73,447,000 in the previous year, indicating a decrease of approximately 8.5%[25] - Capital expenditures, including capitalization of software costs, were $66,086,000 for the current period, down from $72,902,000 in the previous year[25] - The Company completed four business acquisitions during the twenty-six weeks ended March 1, 2025, with an aggregate purchase price of approximately $6.5 million, primarily assigned to goodwill and intangible assets[45] Dividends and Share Repurchase - The company declared dividends of $0.350 per share for common stock and $0.280 per share for Class B common stock, totaling $5,260,000 and $996,000 respectively[25] - The Company authorized a new share repurchase program to repurchase up to $100.0 million of its outstanding shares of Common Stock, which may be executed in the open market or through privately negotiated transactions[116] - The Company repurchased $12,528,000 worth of common stock during the period, compared to $8,119,000 in the previous year, indicating an increase of approximately 54.5%[25] Revenue Segmentation - Core Laundry Operations accounted for 88.0% of total revenues in the thirteen weeks ended March 1, 2025, with revenues of $530,351 thousand, compared to 88.4% and $522,420 thousand in the same period of 2024[35] - Approximately 83.4% of the Company's revenues for the thirteen weeks ended March 1, 2025, were derived from fees for route servicing, consistent with 84.0% in the same period of 2024[36] - The Specialty Garments segment generated revenues of $44.4 million for the thirteen weeks ended March 1, 2025, compared to $43.5 million for the same period in 2024, showing a growth of 2.1%[113] - The First Aid segment reported revenues of $27.5 million for the thirteen weeks ended March 1, 2025, an increase from $24.8 million in the same period last year, representing a growth of 10.5%[113] Expenses and Costs - Selling and administrative expenses related to deferred commissions for the thirteen weeks ended March 1, 2025, were $4,855 thousand, compared to $4,443 thousand for the same period in 2024[43] - Contributions charged to expense under the defined contribution retirement savings plan for the thirteen weeks ended March 1, 2025, were $3.7 million, compared to $4.8 million for the same period in 2024, representing a decrease of 23.1%[59] - The Company reported a depreciation and amortization expense of $69,754,000 for the current period, slightly up from $68,893,000 in the previous year[25] Tax and Environmental Liabilities - The Company's effective tax rate for the thirteen weeks ended March 1, 2025, was 25.0%, a decrease from 26.2% in the prior year, primarily due to excess tax benefits related to stock-based compensation[97] - The Company has accrued environmental liabilities totaling $30.878 million, down from $31.255 million as of August 31, 2024[89] - Anticipated net costs for environmental remediation liabilities over the next five fiscal years total $34.005 million, after accounting for estimated insurance proceeds[90] - The Company has received a tax assessment from the Mexican federal tax authority totaling over $84.7 million, which is currently under appeal[93] Miscellaneous - The company continues to focus on market expansion and new product development strategies to drive future growth[11] - The Company recognized a gain of $0.1 million from derivative financial instruments during the twenty-six weeks ended March 1, 2025, which was reclassified from accumulated other comprehensive loss to revenue[58] - The balance of accumulated other comprehensive loss as of March 1, 2025, was $(32.95) million, compared to $(23.04) million as of February 24, 2024, indicating a deterioration in comprehensive loss[106]