Vestis (US:VSTS)2025-05-06 22:01Financial Performance - Revenue for the three months ended March 28, 2025, was $665,249,000, a decrease of 5.7% compared to $705,368,000 for the same period in 2024[16] - Net loss for the three months ended March 28, 2025, was $(27,830,000), compared to a net income of $5,965,000 for the same period in 2024[18] - Operating income for the six months ended March 28, 2025, was $21,829,000, down from $90,655,000 for the same period in 2024, reflecting a decline of 76.1%[16] - Comprehensive loss for the three months ended March 28, 2025, was $(26,592,000), compared to $(484,000) for the same period in 2024[18] - Basic earnings per share for the three months ended March 28, 2025, was $(0.21), compared to $0.05 for the same period in 2024[16] - Net income for the six months ended March 28, 2025, was a loss of $26.998 million, compared to a profit of $18.233 million for the same period in 2024[30] - Total revenue for the three months ended March 28, 2025, was $665.2 million, a decrease of 5.7% compared to $705.4 million for the same period in 2024[99] - For the six months ended March 28, 2025, total revenue was $1.35 billion, a decrease of 5.2% from $1.42 billion in the same period of 2024[99] Assets and Liabilities - Total current assets increased to $817,251,000 as of March 28, 2025, compared to $787,389,000 as of September 27, 2024, representing a growth of 3.9%[21] - Total liabilities decreased slightly to $2,022,733,000 as of March 28, 2025, from $2,029,336,000 as of September 27, 2024[21] - Total equity decreased to $876,274,000 as of March 28, 2025, from $903,051,000 as of September 27, 2024[21] - Long-term borrowings, net, amounted to $1,158.995 million as of March 28, 2025, up from $1,147.733 million as of September 27, 2024[59] - The allowance for credit losses increased to $35.5 million as of March 28, 2025, from $19.8 million as of September 27, 2024, reflecting a $15.0 million adjustment based on updated collectability estimates[46] Cash Flow and Financing Activities - Cash flows from operating activities provided $10.438 million in the six months ended March 28, 2025, a significant decrease from $127.542 million in the prior year[30] - Cash and cash equivalents decreased to $28,806,000 as of March 28, 2025, down from $31,010,000 as of September 27, 2024[21] - The company reported a net cash used in financing activities of $22.439 million for the six months ended March 28, 2025, compared to $103.161 million in the prior year[30] - Cash and cash equivalents at the end of the period were $28.806 million, down from $30.659 million at the end of the previous year[30] Dividends and Shareholder Returns - The company declared dividends of $0.035 per common share during the reporting period[22] - The company declared dividends of $0.035 per common share, totaling $4.599 million for the period[30] - The company declared a quarterly cash dividend of $0.035 per common share, totaling $4.6 million, during the three months ended March 28, 2025[116] Operating Expenses - Share-based compensation expense was $13.157 million for the six months ended March 28, 2025, compared to $9.447 million in the same period of 2024[30] - Operating lease costs for the three months ended March 28, 2025, were $11.1 million, compared to $10.4 million for the same period in 2024[80] - The Company recorded $5.4 million and $10.8 million in expenses related to employee sales commissions for the three and six months ended March 28, 2025, respectively[76] - Share-based compensation expense for the three months ended March 28, 2025, totaled $8.0 million, an increase from $4.7 million in the same period in 2024[82] Segment Performance - Revenue from the United States for the three months ended March 28, 2025, was $606.1 million, down 5.6% from $642.1 million in the prior year[73] - Operating income for the United States segment decreased significantly to $18.6 million for the three months ended March 28, 2025, down from $71.2 million in the same period of 2024, representing a decline of 73.9%[99] - The total operating loss for the company was $8.6 million for the three months ended March 28, 2025, compared to an operating income of $43.1 million for the same period in 2024[99] - The total segment operating income for the six months ended March 28, 2025, was $80.6 million, down from $150.8 million in the same period of 2024, reflecting a decline of 46.5%[99] Legal and Environmental Liabilities - The company has recorded $7.1 million in environmental-related liabilities as of March 28, 2025, compared to $6.6 million as of September 27, 2024[90] - The company has $11.9 million recorded as liabilities for conditional asset retirement obligations as of March 28, 2025, slightly up from $11.8 million as of September 27, 2024[92] - A settlement agreement related to a class action lawsuit was reached for $3.1 million, which was fully provided for in the financial statements as of March 28, 2025[93] Tax and Regulatory Matters - The company's effective tax rate was 18.6% for the three months ended March 28, 2025, down from 28.5% for the same period in 2024[103] - The company has restrictions on dividends and share repurchases until certain financial covenants are met, specifically a net leverage ratio below or equal to 4.50x[117] Risk Exposure - The company is exposed to foreign currency risk due to revenues and profits being denominated in foreign currencies[189] - The company is also exposed to interest rate risk from fluctuations in interest rates on its debt obligations, particularly on its Term Loan Facilities[190]