UniFirst(UNF) - 2025 Q4 - Annual Report

Customer Base and Revenue - The company serves over 300,000 customer locations across the U.S., Canada, and Europe, with no individual customer accounting for more than 10% of total revenue in the last three years [24]. - The company has experienced fluctuations in revenues and operating results due to various factors, including economic conditions and seasonal patterns [22]. Manufacturing and Sourcing - Approximately 62% of garments placed in service during fiscal 2025 were manufactured in-house, primarily work pants and shirts, with the remainder sourced from various suppliers [29]. - The company manufactured approximately 99% of the mats placed in service at its plant in Cave City, Arkansas [29]. Employment and Talent Management - As of August 30, 2025, the company employed approximately 16,000 team partners, emphasizing recruitment, development, and retention of talent [30]. Financial Obligations and Borrowing Capacity - The company has total contractual cash obligations of $259.8 million as of August 30, 2025, with significant commitments in operating leases and purchase commitments [185]. - The company had total borrowing capacity of $300 million under its Credit Agreement, with no outstanding borrowings as of August 30, 2025, and $193.3 million available for borrowing [187]. Acquisitions - The company regularly evaluates acquisition opportunities and typically pays for acquisitions with cash, cash generated from operations, or borrowings [184]. Customer Service Commitment - The company maintains a commitment to service excellence, with a system in place to respond to customer inquiries within 24 hours [27]. Environmental Regulations - The company is subject to various environmental regulations and has taken measures to address environmental concerns related to its operations [32]. Financial Instruments and Energy Costs - As of August 30, 2025, the company had forward contracts with a notional value of approximately 1.8 million CAD, with a fair value recorded at $0.1 million in prepaid expenses and other current assets [188]. - During fiscal 2025, energy costs, including fuel, natural gas, and electricity, represented approximately 3.9% of total revenue [189]. - The company reclassified $0.1 million from accumulated other comprehensive loss to revenue related to derivative financial instruments during fiscal 2025 [188].